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HomeMy WebLinkAboutRes 2026-02-1882 Approving a Preliminary Service Plan and Assessment for the Sherley Farms PID Improvement Area No.1 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 0 Sherley Farms Public Improvement District PRELIMINARY SERVICE AND ASSESSMENT PLAN SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 1 TABLE OF CONTENTS Table of Contents ............................................................................................................................ 1 Introduction .................................................................................................................................... 3 Section I: Definitions ....................................................................................................................... 4 Section II: The District ................................................................................................................... 11 Section III: Authorized Improvements .......................................................................................... 11 Section IV: Service Plan ................................................................................................................. 13 Section V: Assessment Plan .......................................................................................................... 13 Section VI: Terms of the Assessments .......................................................................................... 17 Section VII: Assessment Roll ......................................................................................................... 23 Section VIII: Additional Provisions ................................................................................................ 24 Exhibits .......................................................................................................................................... 26 Appendices .................................................................................................................................... 27 Exhibit A-1 – Map of the District ................................................................................................... 28 Exhibit A-2 – Map of Improvement Area #1 ................................................................................. 29 Exhibit A-3 - Improvement Area #1 Lot Type Classification Map ................................................. 30 Exhibit B – Project Costs ............................................................................................................... 31 Exhibit C – Service Plan ................................................................................................................. 32 Exhibit D – Sources and Uses of Funds ......................................................................................... 33 Exhibit E – Maximum Assessment and Tax Rate Equivalant ........................................................ 34 Exhibit F-1 – Improvement Area #1 Assessment Roll ................................................................... 35 Exhibit F-2 – Improvement Area #1 Annual Installments ............................................................. 36 Exhibit G-1 – Maps of Major Improvements ................................................................................ 37 Exhibit G-2 – Maps of Improvement Area #1 Improvements ...................................................... 39 Exhibit H – TIRZ No. 9 Annual Credit Amount by Lot Type ........................................................... 43 Exhibit I – Form of Notice of Assessment Termination ................................................................ 44 Exhibit J – Debt Service Schedule for Improvement Area #1 Bonds ............................................ 47 Exhibit K-1 – District Legal Description ......................................................................................... 48 Exhibit K-2 – Improvement Area #1 Legal Description ................................................................. 53 Appendix A – Engineer’s Report ................................................................................................... 57 Appendix B – Buyer Disclosures .................................................................................................... 74 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 2 Sherley Farms Public Improvement District - Improvement Area #1 Initial Parcel Buyer Disclosure ...................................................................................................................................... 75 Sherley Farms Public Improvement District - Improvement Area #1 Lot Type 1 Buyer Disclosure ....................................................................................................................................................... 81 Sherley Farms Public Improvement District - Improvement Area #1 Lot Type 2 Buyer Disclosure ....................................................................................................................................................... 87 Sherley Farms Public Improvement District Improvement Area #1 Lot Type 3 Buyer Disclosure 93 Sherley Farms Public Improvement District - Improvement Area #1 Lot Type 4 Buyer Disclosure ....................................................................................................................................................... 99 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 3 INTRODUCTION Capitalized terms used in this Service and Assessment Plan shall have the meanings given to them in Section I unless otherwise defined in this Service and Assessment Plan or unless the context in which a term is used clearly requires a different meaning. Unless otherwise defined, a reference to a “Section,” an “Exhibit,” or an “Appendix” shall be a reference to a Section of this Service and Assessment Plan or an Exhibit or Appendix attached to and made a part of this Service and Assessment Plan for all purposes. On March 25, 2025, the City Council passed and approved Resolution No. 2025-03-1753 authorizing the establishment of the District in accordance with the PID Act, which authorization was effective upon approval in accordance with the PID Act. The purpose of the District is to finance the Actual Costs of Authorized Improvements that confer a special benefit on approximately 1,123.592 acres located within the corporate limits of the City, as described by the legal description on Exhibit K-1 and depicted on Exhibit A-1. The PID Act requires a service plan must (i) cover a period of at least five years; (ii) define the annual indebtedness and projected cost of the Authorized Improvements; and (iii) include a copy of the notice form required by Section 5.014 of the Texas Property Code, as amended. The Service Plan is contained in Section IV and the notice form is attached as Appendix B. The PID Act requires that the Service Plan include an Assessment Plan that assesses the Actual Costs of the Authorized Improvements against the Assessed Property within the District based on the special benefits conferred on such property by the Authorized Improvements. The Assessment Plan is contained in Section V. The PID Act requires an Assessment Roll that states the Assessment against each Parcel determined by the method chosen by the City Council. The Assessment against each Parcel of Assessed Property must be sufficient to pay the share of the Actual Costs of the Authorized Improvements apportioned to such Parcel and cannot exceed the special benefit conferred on the Parcel by such Authorized Improvements. The Improvement Area #1 Assessment Roll is included as Exhibit F-1. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 4 SECTION I: DEFINITIONS “2026 Assessment Ordinance” means an Assessment Ordinance approved and adopted by the City Council on February 24, 2026, which levied the Improvement Area #1 Assessment against Improvement Area #1 Assessed Property, and approved this Service and Assessment Plan. “Actual Costs” mean, with respect to Authorized Improvements, the actual costs paid or incurred by or on behalf of the Developer, (either directly or through affiliates), including: (1) the costs for the design, planning, financing, administration/management, acquisition, installation, construction and/or implementation of such Authorized Improvements; (2) the fees paid for obtaining permits, licenses, or other governmental approvals for such Authorized Improvements; (3) the costs for external professional services, such as engineering, geotechnical, surveying, land planning, architectural landscapers, appraisals, legal, accounting, and similar professional services; (4) the costs for all labor, bonds, and materials, including equipment and fixtures, owing to contractors, builders, and materialmen engaged in connection with the acquisition, construction, or implementation of the Authorized Improvements; (5) all related permitting and public approval expenses, and architectural, engineering, consulting, and other governmental fees and charges; and (6) costs to implement, administer, and manage the above-described activities including, but not limited to, a construction management fee equal to four percent (4%) of construction costs if managed by or on behalf of the Developer. “Additional Interest” means the amount collected by the application of the Additional Interest Rate. “Additional Interest Rate” means the up to 0.50% additional interest rate that may be charged on Assessments securing PID Bonds pursuant to Section 372.018 of the PID Act “Administrator” means the City or independent firm designated by the City who shall have the responsibilities provided in this Service and Assessment Plan, any Indenture, or any other agreement or document approved by the City related to the duties and responsibilities of the administration of the District. The initial Administrator is P3Works, LLC. “Annual Collection Costs” mean the actual or budgeted costs and expenses related to the operation of the District, including, but not limited to, costs and expenses for: (1) the Administrator; (2) City staff; (3) legal counsel, engineers, accountants, financial advisors, and other consultants engaged by the City; (4) calculating, collecting, and maintaining records with respect to Assessments and Annual Installments; (5) preparing and maintaining records with respect to Assessment Rolls and Annual Service Plan Updates; (6) paying and redeeming PID Bonds; (7) investing or depositing Assessments and Annual Installments; (8) complying with this SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 5 Service and Assessment Plan, the PID Act, and any Indenture, with respect to the PID Bonds, including the City’s continuing disclosure requirements; and (9) the paying agent/registrar and Trustee in connection with PID Bonds, including their respective legal counsel. Annual Collection Costs collected but not expended in any year shall be carried forward and applied to reduce Annual Collection Costs for subsequent years. “Annual Installment” means the annual installment payment of an Assessment as calculated by the Administrator and approved by the City Council, that includes: (1) principal; (2) interest; (3) Annual Collection Costs; and (4) Additional Interest related to the PID Bonds, if applicable. “Annual Service Plan Update” means an update to this Service and Assessment Plan prepared no less frequently than annually by the Administrator and approved by the City Council. “Assessed Property” means any Parcel within the District against which an Assessment is levied. “Assessment” means an assessment levied against Assessed Property to pay the costs of certain Authorized Improvements as specified herein, which Assessment is imposed pursuant to an Assessment Ordinance and the provisions herein, as shown on an Assessment Roll, subject to reallocation upon the subdivision of such Assessed Property or reduction according to the provisions herein and in the PID Act. “Assessment Ordinance” means an ordinance adopted by the City Council in accordance with the PID Act that levies an Assessment on the Assessed Property, as shown on any Assessment Roll. “Assessment Plan” means the methodology employed to assess the Actual Costs of the Authorized Improvements against the Assessed Property based on the special benefits conferred on such property by the Authorized Improvements, more specifically set forth and described in Section V. “Assessment Roll” means any assessment roll for the Assessed Property, including the Improvement Area #1 Assessment Roll, as updated, modified or amended from time to time in accordance with the procedures set forth herein and in the PID Act, including in any Annual Service Plan Updates. The Assessment Roll is included in this Service and Assessment Plan as Exhibit F-1. “Authorized Improvements” means the improvements authorized by Section 372.003 of the PID Act, as further depicted on Exhibit G-1 and Exhibit G-2. “Bond Issuance Costs” means the costs associated with issuing PID Bonds, including, but not limited to, attorney fees, financial advisory fees, consultant fees, appraisal fees, printing costs, publication costs, capitalized interest, reserve fund requirements, underwriter’s discount, fees SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 6 charged by the Texas Attorney General, and any other cost or expense incurred by the City directly associated with the issuance of any series of PID Bonds. “City” means the City of Anna, Texas. “City Council” means the governing body of the City. “County” means Collin County, Texas. “Delinquent Collection Costs” mean costs related to the foreclosure on Assessed Property and the costs of collection of delinquent Assessments, delinquent Annual Installments, or any other delinquent amounts due under this Service and Assessment Plan, including penalties and reasonable attorney’s fees actually paid, but excluding amounts representing interest and penalty interest. “Developer” means Tellus Texas III, LLC and Sherley Partners, LTD. and any successors or assigns that intend to develop property in the District for the ultimate purpose of transferring title to end users. “District” means the Sherley Farms Public Improvement District containing approximately 1,123.592 acres located within corporate limits of the City, and more specifically described in Exhibit K-1 and depicted on Exhibit A-1. “District Formation Costs” means the costs associated with forming the District, including, but not limited to, attorney fees, and any other cost or expense incurred by the City directly associated with the establishment of the District. “Engineer’s Report” means the report provided by a licensed professional engineer that describes the Authorized Improvements, including their costs, location, and benefit, and is attached hereto as Appendix A. “Estimated Buildout Value” means the estimated value of an Assessed Property with fully constructed buildings, as provided by the Developer and confirmed by the City Council, by considering such factors as density, lot size, proximity to amenities, view premiums, location, market conditions, historical sales, builder contracts, discussions with homebuilders, reports from third party consultants, or any other factors that, in the judgment of the City, may impact value. The Estimated Buildout Value for each Lot Type is shown on Exhibit E. “Improvement Area #1” means approximately 135.00 acres located within the District, more specifically described in Exhibit K-2 and depicted on Exhibit A-2. “Improvement Area #1 Annual Installment” means the Annual Installment of the Improvement Area #1 Assessment as calculated by the Administrator and approved by the City Council, that SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 7 includes: (1) principal; (2) interest; (3) Annual Collection Costs related to Improvement Area #1; and (4) Additional Interest related to the Improvement Area #1 Bonds, as shown on Exhibit F-2, which amount may be reduced by the TIRZ No. 9 Annual Credit Amount. “Improvement Area #1 Assessed Property” means any Parcel within Improvement Area #1 against which an Improvement Area #1 Assessment is levied. “Improvement Area #1 Assessment” means an Assessment to be levied against Improvement Area #1 Assessed Property to pay for a portion of the Improvement Area #1 Authorized Improvements, and imposed pursuant to the 2026 Assessment Ordinance and the provisions herein, as shown on the Improvement Area #1 Assessment Roll, subject to reallocation or reduction pursuant to the provisions set forth in Section VI herein and in the PID Act. “Improvement Area #1 Assessment Roll” means the Assessment Roll for the Improvement Area #1 Assessed Property, as updated, modified, or amended from time to time in accordance with the procedures set forth herein and in the PID Act, including any updates prepared in connection with the issuance of PID Bonds or any Annual Service Plan Updates. The Improvement Area #1 Assessment Roll is included in this Service and Assessment Plan as Exhibit F-1. “Improvement Area #1 Authorized Improvements” means collectively, (1) the Improvement Area #1 Improvements; (2) the first year’s Annual Collection Costs related to the Improvement Area #1 Bonds; and (3) Bond Issuance Costs incurred in connection with the issuance of Improvement Area #1 Bonds. “Improvement Area #1 Bonds” means those certain “City of Anna, Texas, Special Assessment Revenue Bonds, Series 2026 (Sherley Farms Public Improvement District Improvement Area #1 Project)” that shall be secured primarily by Improvement Area #1 Assessments. “Improvement Area #1 Improvements” means the Authorized Improvements which only benefit the Improvement Area #1 Assessed Property, as further described in Section III and depicted on Exhibit G-2. “Improvement Area #1 Initial Parcel” means all of the Improvement Area #1 Assessed Property against which the entire Improvement Area #1 Assessment is levied, as shown on the Improvement Area #1 Assessment Roll as shown on Exhibit F-1. “Improvement Area #1 Major Improvements” means the portion of the Major Improvements to be completed concurrently with the completion of Lots in Improvement Area #1. “Indenture” means an Indenture of Trust entered into between the City and the Trustee in connection with the issuance of each series of PID Bonds, as amended from time to time, setting forth the terms and conditions related to a series of PID Bonds. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 8 “Lot” means (1) for any portion of the District for which a final subdivision plat has been recorded in the Plat or Official Public Records of the County, a tract of land described by “lot” in such subdivision plat; and (2) for any portion of the District for which a subdivision plat has not been recorded in the Plat or Official Public Records of the County, a tract of land anticipated to be described as a “lot” in a final recorded subdivision plat as shown on a concept plan or a preliminary plat. A “Lot” shall not include real property owned by a government entity, even if such property is designated as a separate described tract or lot on a recorded subdivision plat. “Lot Type” means a classification of final building Lots with similar characteristics (e.g. lot size, home product, Estimated Buildout Value, etc.), as determined at the time of levying the applicable Assessment and confirmed by the City Council. In the case of single-family residential Lots, the Lot Type shall be further defined by classifying the residential Lots by the Estimated Buildout Value of the Lot as provided by the Developer, and confirmed by the City Council, as shown on Exhibit E. “Lot Type 1” means a Lot Type within Improvement Area #1 marketed to homebuilders as a 45’ lot. The buyer disclosure for Lot Type 1 is attached as Appendix B. “Lot Type 2” means a Lot Type within Improvement Area #1 marketed to homebuilders as a 50’ lot. The buyer disclosure for Lot Type 2 is attached as Appendix B. “Lot Type 3” means a Lot Type within Improvement Area #1 marketed to homebuilders as a 60’ lot. The buyer disclosure for Lot Type 3 is attached as Appendix B. “Lot Type 4” means a Lot Type within Improvement Area #1 marketed to homebuilders as a 70’ lot. The buyer disclosure for Lot Type 4 is attached as Appendix B. “Major Improvements” means those Authorized Improvements that confer a special benefit to all of the Assessed Property and Remainder Area within the District, as depicted on Exhibit G-1. “Maximum Assessment” means, for each Lot, an Assessment equal to the lesser of (1) the amount calculated pursuant to Section VI.A, or (2) for each Lot Type, the amount shown on Exhibit E. “Non-Assessed Property” means Parcels within the boundaries of the District that accrue special benefit from the Authorized Improvements as determined by the City Council but are not assessed. “Notice of Assessment Termination” means a document that shall be recorded in the Official Public Records of the County evidencing the termination of an Assessment, a form of which is attached as Exhibit I. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 9 “Parcel” or “Parcels” means a specific property within the District identified by either a tax parcel identification number assigned by the Collin Central Appraisal District for real property tax purposes, by legal description, or by lot and block number in a final subdivision plat recorded in the Official Public Records of the County, or by any other means determined by the City. “PID Act” means Chapter 372, Texas Local Government Code, as amended. “PID Bonds” means any bonds issued by the City in one or more series and secured in whole or in part by Assessments. “Prepayment” means the payment of all or a portion of an Assessment before the due date of the final Annual Installment thereof. Amounts received at the time of a Prepayment which represent a payment of principal, interest, or penalties on a delinquent installment of an Assessment are not to be considered a Prepayment, but rather are to be treated as the payment of the regularly scheduled Annual Installment. “Prepayment Costs” means interest, including Additional Interest and Annual Collection Costs, to the date of Prepayment. “Private Improvements” means those certain improvements benefitting the District, constructed and paid for by the Developer and not reimbursable from Assessments or PID Bonds, as further described on Exhibit B. “Remainder Area” means approximately 988.592 acres located within the District and entirely outside of Improvement Area #1, to be developed as one or more future improvement areas. “Service and Assessment Plan” means this Sherley Farms Public Improvement District Service and Assessment Plan as updated, amended, or supplemented from time to time. “Service Plan” means the plan described in Section IV which covers a period of at least five years and defines the annual indebtedness and projected costs of the Authorized Improvements. "TIRZ No. 9” means Reinvestment Zone Number Nine, City of Anna, Texas. "TIRZ No. 9 Agreement" means that future TIRZ reimbursement agreement to be entered into by the Developer and the City. "TIRZ No. 9 Annual Credit Amount" means, for each lot type, the amount calculated pursuant to Section V.F, which amount shall not annually exceed the TIRZ No. 9 Maximum Annual Credit Amount, and which shall be transferred from the TIRZ No. 9 Fund to the applicable pledged revenue fund pursuant to the TIRZ No. 9 Agreement and used to pay a portion of principal and interest related to the PID Bonds, but which shall not be pledged to secure the PID Bonds. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 10 "TIRZ No. 9 Plan" means the Reinvestment Zone Number Nine, City of Anna, Texas Final Project and Financing Plan, to be approved by City Council prior to the issuance of PID Bonds. "TIRZ No. 9 Fund" means the tax increment fund created pursuant to the TIRZ No. 9 Ordinance where TIRZ No. 9 Revenues are deposited annually. “TIRZ No. 9 Maximum Annual Credit Amount” means for each Lot Type, the amount of TIRZ No. 9 Revenues that results in an equivalent tax rate equal to $1.35 per $100 of assessed value for such Lot Type taking into consideration the equivalent tax rate of the applicable Annual Installment, based on Estimated Buildout Value of such Lot Type at the time the City Council approves the applicable Assessment Ordinance levying the applicable Assessment, as further described in Section V.F and shown on Exhibit H. The Estimated Buildout Values for each Lot Type are shown on Exhibit E. "TIRZ No. 9 Ordinance" means Ordinance No. __________ adopted by the City Council on February 24, 2025, approving the TIRZ No. 9 Plan and authorizing the use of TIRZ No. 9 Revenues for project costs under the Chapter 311, Texas Tax Code as amended, and related to certain public improvements as provided for in the TIRZ No. 9 Plan. "TIRZ No. 9 Revenues" mean, for each year, the amounts which are deposited in the TIRZ No. 9 Fund pursuant to the TIRZ No. 9 Ordinance, the TIRZ No. 9 Plan, and the TIRZ No. 9 Agreement. “Trustee” means the trustee or successor trustee under an Indenture. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 11 SECTION II: THE DISTRICT The District includes approximately 1,123.592 contiguous acres located within the corporate limits of the City, the boundaries of which are more particularly described on Exhibit K-1 and depicted on Exhibit A-1. Development of the District is anticipated to include approximately (i) 2,578 residential units (including 120 townhomes) to be developed by Tellus Texas III, LLC and 7 single-family units, 55 cottage homes, 400 multifamily units, and 260,000 square feet of commercial space to be developed by Sherley Partners, Ltd.. Improvement Area #1 includes approximately 135 contiguous acres located within the corporate limits of the City, the boundaries of which are more particularly described on Exhibit K-2 and depicted on Exhibit A-2. Development of Improvement Area #1 is anticipated to include approximately 418 Lots developed with single-family homes (76 single-family homes that are on Lots classified as Lot Type 1, 166 single-family homes that are on Lots classified as Lot Type 2, 143 single-family homes that are on Lots classified as Lot Type 3, and 33 single-family homes that are on Lots classified as Lot Type 4.) SECTION III: AUTHORIZED IMPROVEMENTS Based on information provided by the Developer and their engineers and reviewed by the City staff and by third-party consultants retained by the City, the City has determined that the Authorized Improvements confer a special benefit on the Assessed Property. Authorized Improvements will be designed and constructed in accordance with the City’s standards and specifications and will be owned and operated by the City. The budget for the Authorized Improvements is shown on Exhibit B. A. Improvement Area #1 Improvements  Streets Improvements including subgrade stabilization, concrete and reinforcing steel for roadways, asphalt pavement for roadways, turn lanes, pavers, stamping and staining of concrete, sidewalks, testing, handicap ramps, and streetlights. All related earthwork, excavation, erosion control, intersections, signage, traffic control, maintenance bonds, lighting and re-vegetation/landscaping of all disturbed areas are included. The street improvements will provide benefit to each Lot within Improvement Area #1.  Water SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 12 Improvements including trench excavation and embedment, trench safety, PVC piping, valves, fire hydrants, service connections, meter boxes, testing, related earthwork, excavation, erosion control and all necessary appurtenances required to provide water service to all Lots within Improvement Area #1.  Sewer Improvements including trench excavation and embedment, trench safety, PVC piping, encasement pipe, boring, manholes, service connections, testing, related earthwork, excavation, erosion control and all necessary appurtenances required to provide wastewater service to all Lots within Improvement Area #1.  Storm Drainage Improvements including earthen channels, swales, ponds curb and inlets, RCP piping and boxes, headwalls, concrete flumes, manholes, junction boxes, rock rip rap, concrete outfalls, and testing as well as all related earthwork, excavation, erosion control and all necessary appurtenances required to provide storm drainage for all Lots within Improvement Area #1.  Right of Way Includes right-of-way required to provide street improvements for all Lots within Improvement Area #1.  Soft Costs Costs related to designing, constructing, and installing the Improvement Area #1 Improvements including land planning and design, City fees, engineering, landscape design, soil testing, environmental testing, survey, construction management, contingency, legal fees, and consultant fees. B. Bond Issuance Costs  Debt Service Reserve Fund Equals the amount to be deposited in a debt service reserve fund under an applicable Indenture in connection with the issuance of PID Bonds.  Capitalized Interest Equals the amount required to be deposited for the purpose of paying capitalized interest on a series of PID Bonds under an applicable Indenture in connection with the issuance of such PID Bonds. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 13  Underwriter’s Discount Equals a percentage of the par amount of a particular series of PID Bonds related to the costs of underwriting such PID Bonds, including the fee of counsel to the Underwriter.  Cost of Issuance Includes costs of issuing a particular series of PID Bonds, including but not limited to issuer fees, attorney’s fees, financial advisory fees, consultant fees, appraisal fees, printing costs, publication costs, City’s costs, fees charged by the Texas Attorney General, and any other cost or expense directly associated with the issuance of PID Bonds. C. Other Costs  Deposit to Administrative Fund Equals the amount necessary to fund the first year’s Annual Collection Costs for a particular series of PID Bonds. SECTION IV: SERVICE PLAN The PID Act requires the Service Plan to cover a period of at least five years. The Service Plan is required to define the annual projected costs and indebtedness for the Authorized Improvements undertaken within the District during the five-year period. The Service Plan is also required to include a copy of the buyer disclosure notice form required by Section 5.014 of the Texas Property Code, as amended. The Service Plan must be reviewed and updated in each Annual Service Plan Update. Exhibit C summarizes the initial Service Plan for Improvement Area #1. Per the PID Act and Section 5.014 of the Texas Property Code, as amended, this Service and Assessment Plan, and any future Annual Service Plan Updates, shall include a form of the buyer disclosure for the District. The buyer disclosures are attached hereto as Appendix B. Exhibit D summarizes the sources and uses of funds required to construct the Authorized Improvements and Private Improvements. The sources and uses of funds shown on Exhibit D shall be updated in an Annual Service Plan Update SECTION V: ASSESSMENT PLAN The PID Act allows the City Council to apportion the costs of the Authorized Improvements to the Assessed Property based on the special benefit received from the Authorized Improvements. The PID Act provides that such costs may be apportioned: (1) equally per front foot or square foot; (2) according to the value of property as determined by the City Council, with or without regard SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 14 to improvements constructed on the property; or (3) in any other manner approved by the City Council that results in imposing equal shares of such costs on property similarly benefited. The PID Act further provides that the City Council may establish by ordinance or order reasonable classifications and formulas for the apportionment of the cost between the City and the area to be assessed and the methods of assessing the special benefits for various classes of improvements. This section of this Service and Assessment Plan describes the special benefit received by each Parcel within the District as a result of the Authorized Improvements and provides the basis and justification for the determination that this special benefit equals or exceeds the amount of the Assessments to be levied on the Assessed Property for such Authorized Improvements. The determination by the City Council of the assessment methodologies set forth below is the result of the discretionary exercise by the City Council of its legislative authority and governmental powers and is conclusive and binding on the Owners, Developer, and all future owners and developers of the Assessed Property. A. Assessment Methodology Acting in its legislative capacity and based on information provided by the Developer and its engineers and reviewed by the City staff and by third-party consultants retained by the City, the City Council has determined that the costs of the Authorized Improvements shall be allocated as follows:  At the time of adoption of the 2026 Assessment Ordinance, the costs of the Improvement Area #1 Major Improvements were determined to be funded from other sources such as impact fees and private funding. The portion of Major Improvements to be constructed in the future and benefiting the Remainder Area (or individual distinct portions thereof to be developed) are expected to be funded from impacts fees and private funding but may be assessed at a later date as provided in an amendment to this Service and Assessment Plan.  By the adoption of the 2026 Assessment Ordinance, the costs of the reimbursable Improvement Area #1 Authorized Improvements are allocated to each Parcel within Improvement Area #1 based on the ratio of the Estimated Buildout Value of each Parcel designated as Improvement Area #1 Assessed Property to the Estimated Buildout Value of all Improvement Area #1 Assessed Property. Currently, the Improvement Area #1 Initial Parcel is the only Parcel within Improvement Area #1, and as such, the Improvement Area #1 Initial Parcel is allocated 100% of the Improvement Area #1 Authorized Improvements. B. Assessments SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 15 By the adoption of the 2026 Assessment Ordinance, the Improvement Area #1 Assessment shall be levied on the Improvement Area #1 Initial Parcel are in the amount shown on the Improvement Area #1 Assessment Roll, attached hereto as Exhibit F-1. The projected Improvement Area #1 Annual Installments are shown on Exhibit F-2. Upon division or subdivision of the Improvement Area #1 Initial Parcel, the Improvement Area #1 Assessment will be reallocated pursuant to Section VI. The Maximum Assessment for each Lot Type is shown on Exhibit E. In no case will the Assessment for Lots classified as Lot Type 1, Lot Type 2, Lot Type 3 or Lot Type 4, respectively, exceed the corresponding Maximum Assessment for each Lot classification. C. Findings of Special Benefit Acting in its legislative capacity and based on information provided by the Developer and tis Engineers and reviewed by the City staff and by third-party consultants retained by the City, the City Council has found and determined the following:  Improvement Area #1  The costs of the Improvement Area #1 Authorized Improvements equal $34,055,146 as shown on Exhibit B;  The Improvement Area #1 Assessed Property receives special benefit from the Improvement Area #1 Authorized Improvements equal to or greater than the Actual Cost of the Improvement Area #1 Authorized Improvements;  By the adoption of the 2026 Assessment Ordinance, the Improvement Area #1 Initial Parcel is allocated 100% of the Improvement Area #1 Assessment levied for the Improvement Area #1 Authorized Improvements, which equals $33,950,000 as shown on the Improvement Area #1 Assessment Roll attached hereto as Exhibit F-1;  The special benefit ($34,055,146) received by the Improvement Area #1 Initial Parcel from the Improvement Area #1 Authorized Improvements is equal to or greater than the amount of the Improvement Area #1 Assessment ($33,950,000) levied on the Improvement Area #1 Initial Parcel for the Improvement Area #1 Authorized Improvements; and  At the time the City Council approved this Service and Assessment Plan, the Developer owned 100% of the Improvement Area #1 Initial Parcel. The Developer acknowledged that the Improvement Area #1 Authorized Improvements confer a special benefit on the Improvement Area #1 Initial Parcel and consents to the SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 16 imposition of the Improvement Area #1 Assessment to pay for the Actual Costs associated therewith. The Developer ratified, confirmed, accepted, agreed to, and approved: (1) the determinations and findings by the City Council as to the special benefits described herein and the 2026 Assessment Ordinance; (2) the Service and Assessment Plan and the 2026 Assessment Ordinance; and (3) the levying of the Improvement Area #1 Assessment on the Improvement Area #1 Initial Parcel. D. Annual Collection Costs The Annual Collection Costs shall be paid for annually by the owner of each Parcel pro rata based on the ratio of the amount of outstanding Assessment remaining on the Parcel to the total outstanding Assessment. The Annual Collection Costs shall be collected as part of and in the same manner as Annual Installments in the amounts shown on the Assessment Roll, which may be revised based on Actual Costs incurred in Annual Service Plan Updates. E. Additional Interest The interest rate on Assessments securing each respective series of PID Bonds may exceed the interest rate on each respective series of PID Bonds by the Additional Interest Rate. To the extent required by any Indenture, Additional Interest shall be collected as part of each Annual Installment and shall be deposited pursuant to the applicable Indenture. F. TIRZ No. 9 Annual Credit Amount The City Council, in accordance with the TIRZ No. 9 Agreement, has agreed to use a portion of TIRZ No. 9 Revenues generated on a parcel-by-parcel basis from each Assessed Property to offset a portion of the principal and interest of such property’s Assessment, as applicable. 1. The principal and interest portion of the Improvement Area #1 Annual Installment for an Assessed Property shall receive a TIRZ No. 9 Annual Credit Amount equal to the TIRZ No. 9 Revenue generated by the Assessed Property for the previous Tax Year (e.g. TIRZ No. 9 Revenue collected from the Assessed Property for Tax Year 2026 shall be applied as the TIRZ No. 9 Annual Credit Amount applicable to the Assessed Property’s Improvement Area #1 Annual Installment to be collected in Tax Year 2027), but in no event shall the TIRZ No. 9 Annual Credit Amount exceed the TIRZ No. 9 Maximum Annual Credit Amount shown in Section V.F.2 as calculated on Exhibit H for each Assessed Property. 2. The TIRZ No. 9 Maximum Annual Credit Amount available to reduce the principal and interest portion of the Improvement Area #1 Annual Installment for an Assessed Property is calculated for each Lot Type, as shown on Exhibit H. The TIRZ No. 9 Maximum Annual Credit Amount is calculated so that the average Improvement Area #1 Annual Installment minus the SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 17 TIRZ No. 9 Maximum Annual Credit Amount for each Lot Type does not produce an equivalent tax rate for such Lot Type which exceeds the competitive, composite equivalent ad valorem tax rate ($1.35 per $100 of assessed value) taking into consideration the equivalent tax rate of the Improvement Area #1 Annual Installments based on Estimated Buildout Value at the time the 2026 Assessment Ordinance is approved. The resulting maximum TIRZ No. 9 Annual Credit Amount for each Lot Type is shown on Exhibit H. 3. After the TIRZ No. 9 Annual Credit Amount is applied to provide credit towards the principal and interest portion of the Improvement Area #1 Annual Installment for the Assessed Property, any excess TIRZ No. 9 Revenues available from the TIRZ No. 9 Fund shall be used in accordance with the TIRZ No. 9 Plan and the TIRZ No. 9 Agreement. SECTION VI: TERMS OF THE ASSESSMENTS Any reallocation of Assessments as described in this Section VI shall be considered an administrative action of the City and will not be subject to the notice or public hearing requirements under the PID Act. A. Reallocation of Assessment s 1. Upon Division Prior to Recording of Subdivision Plat Upon the division of any Assessed Property (without the recording of a subdivision plat), the Administrator shall reallocate the Assessment for the Assessed Property prior to the division among the newly divided Assessed Properties according to the following formula: A = B x (C ÷ D) Where the terms have the following meanings: A = the Assessment for the newly divided Assessed Property B = the Assessment for the Assessed Property prior to division C = the Estimated Buildout Value of the newly divided Assessed Property D = the sum of the Estimated Buildout Value for all of the newly divided Assessed Properties The calculation of the Assessment of an Assessed Property shall be performed by the Administrator and shall be based on the Estimated Buildout Value of that Assessed Property, as provided by the Developer, relying on information from homebuilders, market studies, appraisals, Official Public Records of the County, and any other relevant information regarding the Assessed Property, and such calculation shall be approved by SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 18 the City Council in the immediately following Annual Service Plan Update. The calculation as confirmed by the City Council shall be conclusive and binding. The Estimated Buildout Values for Lot Type 1, Lot Type 2, Lot Type 3 and Lot Type 4 are shown on Exhibit E and will not change in future Annual Service Plan Updates but Exhibit E may be updated in future Annual Service Plan Updates to account for additional Lot Types. The sum of the Assessments for all newly divided Assessed Properties shall equal the Assessment for the Assessed Property prior to subdivision. The calculation shall be made separately for each newly divided Assessed Property. The reallocation of an Assessment for an Assessed Property that is a homestead under Texas law may not exceed the Assessment prior to the reallocation. Any reallocation pursuant to this section shall be reflected in the Annual Service Plan Update immediately following such reallocation. 2. Upon Subdivision by a Recorded Subdivision Plat Upon the subdivision of any Assessed Property based on a recorded subdivision plat, the Administrator shall reallocate the Assessment for the Assessed Property prior to the subdivision among the new subdivided Lots based on Estimated Buildout Value according to the following formula: A = [B x (C ÷ D)]/E Where the terms have the following meanings: A = the Assessment for the newly subdivided Lot B = the Assessment for the Parcel prior to subdivision C = the sum of the Estimated Buildout Value of all newly subdivided Lots with the same Lot Type D = the sum of the Estimated Buildout Value for all of the newly subdivided Lots excluding Non-Benefitted Property E= the number of newly subdivided Lots with the same Lot Type Prior to the recording of a subdivision plat, the Developer shall provide the City an Estimated Buildout Value as of the date of the recorded subdivision plat for each Lot created by the recorded subdivision plat. The calculation of the Assessment for a Lot shall be performed by the Administrator based on Estimated Buildout Value information provided by the Developer, homebuilders, third party consultants, and/or the Official Public Records of the County regarding the Lot, and such calculation shall be approved by the City Council in the immediately following Annual Service Plan Update. The calculation as confirmed by the City Council shall be conclusive and binding. The Estimated Buildout SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 19 Values for Lot Type 1, Lot Type 2, Lot Type 3, and Lot Type 4 are shown on Exhibit E and will not change in future Annual Service Plan Updates. The sum of the Assessments for all newly subdivided Lots shall not exceed the Assessment for the portion of the Assessed Property subdivided prior to subdivision. The calculation shall be made separately for each newly subdivided Assessed Property. The reallocation of an Assessment for an Assessed Property that is a homestead under Texas law may not exceed the Assessment prior to the reallocation. Any reallocation pursuant to this section shall be reflected in the Annual Service Plan Update immediately following such reallocation. 3. Upon Consolidation If two or more Lots or Parcels are consolidated into a single Lot or Parcel, the Administrator shall allocate the Assessments against the Lots or Parcels before the consolidation to the consolidated Lot or Parcel, which allocation shall be approved by the City Council in the next Annual Service Plan Update immediately following such consolidation. The calculation as confirmed by the City Council shall be conclusive and binding. The Assessment for any resulting Lot may not exceed the Maximum Assessment for the applicable Lot Type and compliance may require a mandatory Prepayment of Assessments pursuant to Section VI.C. B. Mandatory Prepayment of Assessments If an Assessed Property or a portion thereof is conveyed to a party that is exempt from payment of the Assessment under applicable law, or the owner causes a Lot, Parcel or portion thereof to become Non-Benefitted Property, the owner of such Lot, Parcel or portion thereof shall pay to the City, or cause to be paid to the City, the full amount of the Assessment, plus all Prepayment Costs and Delinquent Collection Costs for such Assessed Property, prior to any such conveyance or act, and no such conveyance shall be effective until the City receives such payment. Following payment of the foregoing costs in full, the City shall provide the owner with a recordable “Notice of Assessment Termination,” a form of which is attached hereto as Exhibit I. C. True-Up of Assessments if Maximum Assessment Exceeded at Plat Prior to the City approving a final subdivision plat, the Administrator will certify that such plat will not result in the Assessment per Lot for any Lot Type to exceed the Maximum Assessment. If the Administrator determines that the resulting Assessment per Lot for any Lot Type will exceed the Maximum Assessment for that Lot Type, then (1) the Assessment applicable to each Lot Type shall each be reduced to the Maximum Assessment, and (2) the person or entity filing the plat shall pay to the City, or cause to be paid to the City, the amount the Assessment was reduced, SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 20 plus Prepayment Costs and Delinquent Collection Costs, if any, prior to the City approving the final plat. The City’s approval of a plat without payment of such amounts does not eliminate the obligation of the person or entity filing the plat to pay such amounts. At no time shall the aggregate Assessments for any Lot exceed the Maximum Assessment. D. Reduction of Assessment s If as a result of cost savings or the failure to construct all or a portion of an Authorized Improvement the Actual Costs of any Authorized Improvements are less than the Assessments, then (i) in the event PID Bonds have not been issued for the purpose of financing Authorized Improvements affected by such reduction in Actual Costs, the City Council shall reduce each Assessment on a pro rata basis such that the sum of the resulting reduced Assessments for all Assessed Property equals the reduced Actual Costs that were expended, or (ii) in the event that PID Bonds have been issued for the purpose of financing Authorized Improvements affected by such reduction in Actual Costs, the Trustee shall apply amounts on deposit in the applicable account of the project fund created under the Indenture relating to such series of PID Bonds that are not expected to be used for the purposes of the project fund as directed by the City pursuant to the terms of such Indenture, and the TIRZ No. 9 Annual Credit Amount will be reduced in the same proportion as the Assessments. Such excess PID Bond proceeds may be used for any purpose authorized by such Indenture. The Assessments shall never be reduced to an amount less than the amount required to pay all outstanding debt service requirements on all outstanding PID Bonds. The Administrator shall update (and submit to the City Council for review and approval as part of the next Annual Service Plan Update) the Assessment Roll and corresponding Annual Installments to reflect the reduced Assessments. E. Prep ayment of Assessment s The owner of any Assessed Property may, at any time, pay all or any part of an Assessment in accordance with the PID Act. Prepayment Costs, if any, may be paid from a reserve established under the applicable Indenture. If an Annual Installment has been billed, or the Annual Service Plan Update has been approved by the City Council prior to the Prepayment, the Annual Installment shall be due and payable and shall be credited against the Prepayment. If an Assessment on an Assessed Property is prepaid in full, with Prepayment Costs, (1) the Administrator shall cause the Assessment to be reduced to zero on said Assessed Property and the Assessment Roll to be revised accordingly; (2) the Administrator shall prepare the revised Assessment Roll and submit such revised Assessment Roll to the City Council for review and approval as part of the next Annual Service Plan Update; (3) the obligation to pay the Assessment SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 21 and corresponding Annual Installments shall terminate with respect to said Assessed Property; and (4) the City shall provide the owner with a recordable "Notice of Assessment Termination.” If an Assessment on an Assessed Property is prepaid in part with Prepayment Costs: (1) the Administrator shall cause the Assessment to be reduced on said Assessed Property and the Assessment Roll revised accordingly; (2) the Administrator shall prepare the revised Assessment Roll and submit such revised Assessment Roll to the City Council for review and approval as part of the next Annual Service Plan Update; and (3) the obligation to pay the Assessment will be reduced to the extent of the Prepayment made. F. Payment of Assessment in Annual Installments Assessments that are not paid in full shall be due and payable in Annual Installments. Exhibit F-2 shows the estimated Improvement Area #1 Annual Installments. Annual Installments are subject to adjustment in each Annual Service Plan Update. Prior to the recording of a final subdivision plat, if any Parcel shown on the Assessment Roll is assigned multiple tax parcel identification numbers for billing and collection purposes, the Annual Installment shall be allocated pro rata based on the acreage of the Parcel not including any Non- Benefitted Property or Non-Assessed Property, as shown by the Collin Central Appraisal District for each tax parcel identification number. The Administrator shall prepare and submit to the City Council for its review and approval an Annual Service Plan Update to allow for the billing and collection of Annual Installments. Each Annual Service Plan Update shall include updated Assessment Rolls and updated calculations of Annual Installments. The Annual Collection Costs for a given Assessment shall be paid by the owner of each Parcel pro rata based on the ratio of the amount of outstanding Assessment remaining on the Parcel to the total outstanding Assessment. Annual Installments shall be reduced by any credits applied under an applicable Indenture, such as capitalized interest, interest earnings on account balances, and any other funds available to the Trustee for such purposes. Annual Installments shall be collected by the City in the same manner and at the same time as ad valorem taxes. Annual Installments shall be subject to the penalties, procedures, and foreclosure sale in case of delinquencies as set forth in the PID Act and in the same manner as ad valorem taxes due and owing to the City. To the extent permitted by the PID Act or other applicable law, the City Council may provide for other means of collecting Annual Installments, but in no case shall the City take any action, or fail to take any action, that would cause it to be in default under any Indenture. Assessments shall have the lien priority specified in the PID Act. Sales of the Assessed Property for nonpayment of Annual Installments shall be subject to the lien for the remaining unpaid Annual Installments against the Assessed Property, and the Assessed SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 22 Property may again be sold at a judicial foreclosure sale if the purchaser fails to timely pay any of the remaining unpaid Annual Installments as they become due and payable. The City reserves the right to refund PID Bonds in accordance with applicable law, including the PID Act. In the event of a refunding, the Administrator shall recalculate the Annual Installments so that total Annual Installments will be sufficient to pay the refunding bonds, and the refunding bonds shall constitute “PID Bonds.” Each Annual Installment of an Assessment, including interest on the unpaid principal of the Assessment, shall be updated annually. Each Annual Installment shall be due when billed and shall be delinquent if not paid prior to February 1 of the following year. Failure of an owner of an Assessed Property to receive an invoice for an Annual Installment shall not relieve said owner of the responsibility for payment of the Assessment. Assessments, or Annual Installments thereof, that are delinquent shall incur Delinquent Collection Costs. G. Prepayment as a Result of an Eminent Domain Proceeding or Taking Subject to applicable law, if any portion of any Parcel of Assessed Property is taken from an owner as a result of eminent domain proceedings or if a transfer of any portion of any Parcel of Assessed Property is made to an entity with the authority to condemn all or a portion of the Assessed Property in lieu of or as a part of an eminent domain proceeding (a “Taking”), the portion of the Assessed Property that was taken or transferred (the “Taken Property”) shall be reclassified as Non-Benefitted Property. For the Assessed Property that is subject to the Taking as described in the preceding paragraph, the Assessment that was levied against the Assessed Property (when it was included in the Taken Property) prior to the Taking shall remain in force against the remaining Assessed Property (the Assessed Property less the Taken Property) (the “Remaining Property”), following the reclassification of the Taken Property as Non-Benefitted Property, subject to an adjustment of the Assessment applicable to the Remaining Property after any required Prepayment as set forth below. The owner of the Remaining Property will remain liable to pay, pursuant to the terms of this Service and Assessment Plan, as updated, and the PID Act, the Assessment that remains due on the Remaining Property, subject to an adjustment in the Assessment applicable to the Remaining Property after any required Prepayment as set forth below. Notwithstanding the foregoing, if the Assessment that remains due on the Remaining Property exceeds the applicable Maximum Assessment, the owner of the Remaining Property will be required to make a Prepayment in an amount necessary to ensure that the Assessment against the Remaining Property does not exceed such Maximum Assessment, in which case the Assessment applicable to the Remaining Property will be reduced by the amount of the partial Prepayment. If the City SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 23 receives all or a portion of the eminent domain proceeds (or payment made in an agreed sale in lieu of condemnation), such amount shall be credited against the amount of Prepayment, with any remainder credited against the Assessment on the Remaining Property. In all instances the Assessment remaining on the Remaining Property shall not exceed the applicable Maximum Assessment. By way of illustration, if an owner owns 100 acres of Assessed Property subject to a $100 Assessment and 10 acres is taken through a Taking, the 10 acres of Taken Property shall be reclassified as Non-Benefitted Property and the remaining 90 acres constituting the Remaining Property shall be subject to the $100 Assessment (provided that this $100 Assessment does not exceed the Maximum Assessment on the Remaining Property). If the Administrator determines that the $100 Assessment reallocated to the Remaining Property would exceed the Maximum Assessment, as applicable, on the Remaining Property by $10, then the owner shall be required to pay $10 as a Prepayment of the Assessment against the Remaining Property and the Assessment on the Remaining Property shall be adjusted to $90. Notwithstanding the previous paragraphs in this subsection, if the owner of the Remaining Property notifies the City and the Administrator that the Taking prevents the Remaining Property from being developed for any use which could support the Estimated Buildout Value requirement, the owner shall, upon receipt of the compensation for the Taken Property, be required to prepay the amount of the Assessment required to buy down the outstanding Assessment to the applicable Maximum Assessment on the Remaining Property to support the Estimated Buildout Value requirement. The owner will remain liable to pay the Assessment on both the Taken Property and the Remaining Property until such time that such Assessment has been prepaid in full. Notwithstanding the previous paragraphs in this subsection, the Assessments shall never be reduced to an amount less than the amount required to pay all outstanding debt service requirements on all outstanding PID Bonds. SECTION VII: ASSESSMENT ROLL The Improvement Area #1 Assessment Roll is attached as Exhibit F-1. The Administrator shall prepare and submit to the City Council for review and approval proposed revisions to the Improvement Area #1 Assessment Roll and Improvement Area #1 Annual Installments for each Parcel as part of each Annual Service Plan Update. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 24 SECTION VIII: ADDITIONAL PROVISIONS A. Calculation Errors If the owner of a Parcel claims that an error has been made in any calculation required by this Service and Assessment Plan, including, but not limited to, any calculation made as part of any Annual Service Plan Update, the owner’s sole and exclusive remedy shall be to submit a written notice of error to the Administrator by December 1st of each year following City Council’s approval of the calculation. Otherwise, the owner shall be deemed to have unconditionally approved and accepted the calculation. The Administrator shall provide a written response to the City Council and the owner not later than 30 days after receipt of such written notice of error by the Administrator. The City Council shall consider the owner’s notice of error and the Administrator’s response at a public meeting, and, not later than 30 days after closing such meeting, the City Council shall make a final determination as to whether an error has been made. If the City Council determines that an error has been made, the City Council shall take such corrective action as is authorized by the PID Act, this Service and Assessment Plan, the applicable Assessment Ordinance, the applicable Indenture, or as otherwise authorized by the discretionary power of the City Council. The determination by the City Council as to whether an error has been made, and any corrective action taken by the City Council, shall be final and binding on the owner and the Administrator. B. Amendments Amendments to this Service and Assessment Plan must be made by the City Council in accordance with the PID Act. To the extent permitted by the PID Act, this Service and Assessment Plan may be amended without notice to owners of the Assessed Property: (1) to correct mistakes and clerical errors; (2) to clarify ambiguities; and (3) to provide procedures to collect Assessments, Annual Installments, and other charges imposed by this Service and Assessment Plan. C. Administration and Interpretation The Administrator shall: (1) perform the obligations of the Administrator as set forth in this Service and Assessment Plan; (2) administer the District for and on behalf of and at the direction of the City Council; and (3) interpret the provisions of this Service and Assessment Plan. Interpretations of this Service and Assessment Plan by the Administrator shall be in writing and shall be appealable to the City Council by owners of Assessed Property adversely affected by the interpretation. Appeals shall be decided by the City Council after holding a public meeting at which all interested parties have an opportunity to be heard. Decisions by the City Council shall SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 25 be final and binding on the owners of Assessed Property and developers and their successors and assigns. D. Form of Buyer Disclosure/Filing Requirements Per Section 5.014 of the Texas Property Code, as amended, this Service and Assessment Plan, and any future Annual Service Plan Updates, shall include a form of the buyer disclosures for the District. The buyer disclosures are attached hereto as Appendix B. Within seven days of approval by the City Council, the City shall file and record in the real property records of the County the executed ordinance of this Service and Assessment Plan, or any future Annual Service Plan Updates. The executed ordinance, including any attachments, approving this Service an Assessment Plan or any future Annual Service Plan Updates shall be filed and recorded in their entirety. E. Severability If any provision of this Service and Assessment Plan is determined by a governmental agency or court to be unenforceable, the unenforceable provision shall be deleted and, to the maximum extent possible, shall be rewritten to be enforceable. Every effort shall be made to enforce the remaining provisions. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 26 EXHIBITS The following Exhibits are attached to and made a part of this Service and Assessment Plan for all purposes: Exhibit A-1 Map of the District Exhibit A-2 Map of Improvement Area #1 Exhibit A-3 Improvement Area #1 Lot Type Classification Map Exhibit B Project Costs Exhibit C Service Plan Exhibit D Sources and Uses of Funds Exhibit E Maximum Assessment and Tax Rate Equivalent Exhibit F-1 Improvement Area #1 Assessment Roll Exhibit F-2 Improvement Area # 1 Annual Installments Exhibit G-1 Maps of Major Improvements Exhibit G-2 Maps of Improvement Area #1 Improvements Exhibit H TIRZ No. 9 Annual Credit Amount by Lot Type Exhibit I Form of Notice of Assessment Termination Exhibit J Debt Service Schedule for Improvement Area #1 Bonds Exhibit K-1 District Legal Description Exhibit K-2 Improvement Area #1 Legal Description SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 27 APPENDICES The following Appendices are attached to and made a part of this Service and Assessment Plan for all purposes: Appendix A Engineer’s Report Appendix B Buyer Disclosures SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 28 EXHIBIT A-1 – MAP OF THE DISTRICT SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 29 EXHIBIT A-2 – MAP OF IMPROVEMENT AREA #1 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 30 EXHIBIT A-3 - IMPROVEMENT AREA #1 LOT TYPE CLASSIFICATION MAP SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 31 EXHIBIT B – PROJECT COSTS Improvement Area #1 Improvements Streets[e]9,627,483$ -$ -$ 9,627,483$ 100% 9,627,483$ Water 2,285,898 - - 2,285,898 100% 2,285,898 Sewer 2,797,636 - - 2,797,636 100% 2,797,636 Storm Drainage 3,583,566 - - 3,583,566 100% 3,583,566 Right of Way[j]3,696,000 - - 3,696,000 100% 3,696,000 Soft Costs[i]5,588,068 - - 5,588,068 100% 5,588,068 27,578,651$ -$ -$ 27,578,651$ 27,578,651$ Major Improvements Improvement Area #1 Major Improvements[h] Water 2,218,535$ -$ 2,218,535$ -$ 0.0%-$ Sewer 6,100,420 - 6,100,420 - 0.0%- Soft Costs 3,078,013 - 3,078,013 - 0.0%- 11,396,968$ -$ 11,396,968$ -$ -$ Private Improvements [b] Parkland Infrastructure/Hardscape/Trails[c][d]3,701,922$ 3,701,922$ -$ -$ 0.0%-$ Private Improvements 3,237,511 3,237,511 - - 0.0%- 6,939,433$ 6,939,433$ -$ -$ -$ Bond Issuance Costs [f] Debt Service Reserve Fund 2,482,455$ -$ -$ 2,482,455$ 2,482,455$ Capitalized Interest 1,131,667 - - 1,131,667 1,131,667 Underwriter Discount[g]1,018,500 - - 1,018,500 1,018,500 Cost of Issuance 1,763,873 - - 1,763,873 1,763,873 6,396,495$ -$ -$ 6,396,495$ 6,396,495$ Other Costs [f] Deposit to Administrative Fund 80,000$ -$ -$ 80,000$ 80,000$ 80,000$ -$ -$ 80,000$ 80,000$ Footnotes: [a] Per Engineer's Report attached hereto as Appendix A. [b] Not reimbursable to the Developer through Assessments or the issuance of PID Bonds. [c] Unless otherwise approved by the City Council, in the event PID Bonds are not issued, right-of-way acquisition, as defined in Section III.A, shall not be a reimbursable Authorized Improvement, but instead will be replaced by the Actual Costs of Parkland Infrastructure/Hardscape/Trails. [d] Unless otherwise approved by the City Council, in the event PID Bonds are issued, the Parkland Infrastructure/Hardscape/Trails, will be replaced by right-of-way acquisition, which right-of-way acquisition cost shall not exceed (i) the Actual Costs of Parkland Infrastructure/Hardscape/Trails, and (ii) the fair market value supported by an independent appraisal as required by Section 252.051 of the Texas Local Government Code. [e] Includes Mass Grading and Final Stabilization Methods. [f] Preliminary estimates only and subject to change upon the issuance of PID Bonds. [g] Includes the fee of counsel to the Underwriter. [h] Improvement Area #1 Major Improvements are improvements that benefit the entire District and shall be completed concurrently with the Improvement Area #1 Improvements, but are not anticipated to be reimbursed from Assessments or PID Bonds. Future Major Improvements shall be included in this Service and Assessment Plan as they are constructed with future Improvement Areas. [i] Soft Costs include bonds fees, contingency, engineering, testing, survey, and inspection fees. [j] Based on Right of Way Appraisal dated January 8, 2026. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 32 EXHIBIT C – SERVICE PLAN Annual Installment Due 1/61/2026[b]1/31/2027 1/31/2028 1/31/2029 1/31/2030 1/31/2031 Principal -$ 403,000.00$ 428,000.00$ 455,000.00$ 484,000.00$ 514,000.00$ Interest 1,131,667.00 2,037,000.00 2,012,820.00 1,987,140.00 1,959,840.00 1,930,800.00 TIRZ No. 9 Annual Credit Amount[a]- - - - - - Capitalized Interest (1,131,667.00) - - - - - (1)-$ 2,440,000.00$ 2,440,820.00$ 2,442,140.00$ 2,443,840.00$ 2,444,800.00$ Additional Interest (2)-$ 169,750.00$ 167,735.00$ 165,595.00$ 163,320.00$ 160,900.00$ Annual Collection Costs (3)-$ 40,800.00$ 41,616.00$ 42,448.00$ 43,297.00$ 44,163.00$ Total Annual Installment Due (4) = (1) + (2) + (3)-$ 2,650,550.00$ 2,650,171.00$ 2,650,183.00$ 2,650,457.00$ 2,649,863.00$ Footnotes: [a] Each year, the TIRZ No. 9 Revenue generated by each Lot shall be applied to the principal and interest portion of the Annual Installment, up to the Maximum TIRZ No. 9 Annual Credit Amount. The TIRZ No. 9 Annual Credit Amount shall be updated each year in the Annual Service Plan Update as TIRZ No. 9 Revenue is generated. [b] No Assessment collected in 2026 and capitalized interest is contemplated from bond issuance to the 9/15/2026 debt service payment. Improvement Area #1 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 33 EXHIBIT D – SOURCES AND USES OF FUNDS Privately Funded Impact Fee Eligible Improvement Area #1 Total Improvement Area #1 Bonds -$ -$ 33,950,000$ 33,950,000$ Developer Contribution - Improvement Area #1[a]- - 105,146 105,146 Eligible Infrastructure Grant[f]- 11,396,968 - 11,396,968 Developer Contribution - Parkland Infrastructure/Hardscape/Trails[a][b][c]3,701,922 - - 3,701,922 Developer Contribution - Private Improvements[a]3,237,511 - - 3,237,511 Total Sources of Funds 6,939,433$ 11,396,968$ 34,055,146$ 52,391,548$ Improvement Area #1 Major Improvements[f]-$ 11,396,968$ -$ 11,396,968 Improvement Area #1 Improvements - - 27,578,651 27,578,651 Parkland Infrastructure/Hardscape/Trails[a][b][c]3,701,922 - - 3,701,922 Private Improvements[a]3,237,511 - - 3,237,511 6,939,433$ 11,396,968$ 27,578,651$ 45,915,053$ Bond Issuance Costs [d] Debt Service Reserve Fund -$ -$ 2,482,455$ 2,482,455$ Capitalized Interest - - 1,131,667 1,131,667 Underwriter Discount[e]- - 1,018,500 1,018,500 Cost of Issuance - - 1,763,873 1,763,873 -$ -$ 6,396,495.00$ 6,396,495$ Other Costs [d] Deposit to Administrative Fund -$ -$ 80,000$ 80,000$ -$ -$ 80,000.00$ 80,000$ Total Uses of Funds 6,939,433$ 11,396,968$ 34,055,146$ 52,391,548$ Footnotes: [a] Not reimbursable to the Developer through Assessments or the issuance of PID Bonds. [b] Unless otherwise approved by the City Council, in the event PID Bonds are not issued, right-of-way acquisition, as defined in Section III.A, shall not be a reimbursable Authorized Improvement, but instead will be replaced by the Actual Costs of Parkland Infrastructure/Hardscape/Trail improvements. [c] Unless otherwise approved by the City Council, in the event PID Bonds are issued, the Parkland Infrastructure/Hardscape/Trail improvements, will be replaced by right-of-way acquisition, which right-of-way acquisition cost shall not exceed (i) the Actual Costs of Parkland Infrastructure/Hardscape/Trail improvements, and (ii) the fair market value supported by an independent appraisal as required by Section 252.051 of the Texas Local Government Code. [d] Preliminary estimates only and subject to change upon the issuance of PID Bonds. [e] Includes the fee of counsel to the Underwriter. [f] Improvement Area #1 Major Improvements are improvements that benefit the entire District and shall be completed concurrently with the Improvement Area #1 Improvements, but are not anticipated to be reimbursed from Assessments or PID Bonds. Future Major Improvements shall be included in this Service and Assessment Plan as they are constructed with future Improvement Areas. Sources of Funds Uses of Funds SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 34 EXHIBIT E – MAXIMUM ASSESSMENT AND TAX RATE EQUIVALANT Per Unit Total Per Unit Total Per Unit Total Improvement Area #1 Lot Type 1 76 477,000$ 36,252,000$ 67,570$ 5,135,294$ 5,275$ 400,872$ 1.105792$ Lot Type 2 166 530,000 87,980,000 75,077 12,462,848 5,861 972,876 1.105792 Lot Type 3 143 636,000 90,948,000 90,093 12,883,282 7,033 1,005,696 1.105792 Lot Type 4 33 742,000 24,486,000 105,108 3,468,576 8,205 270,764 1.105792 Improvement Area #1 Subtotal 418 239,666,000$ 33,950,000$ 2,650,208$ 1.105792 Footnotes: [a] As provided by the Developer. [b] Subject to change based on the final Appraisal. [c] Does not include TIRZ No. 9 Annual Credit Amount. Lot Type Units[a]Gross PID TRE[c] Estimated Buildout Value[a]Assessment[b]Average Annual Installment SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 35 EXHIBIT F-1 – IMPROVEMENT AREA #1 ASSESSMENT ROLL Property ID[a]Lot Type Outstanding Assessment Annual Installment Due 1/31/2027 2937949 Improvement Area #1 Initial Parcel 33,950,000.00$ 2,650,550.00$ 33,950,000.00$ 2,650,550.00$ Footnotes: Total [a] The entire Improvement Area #1 is contained within Property ID 2937949. For billing purposes, the Annual Installment due 1/31/2027 shall be allocated pro rata based on acreage. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 36 EXHIBIT F-2 – IMPROVEMENT AREA #1 ANNUAL INSTALLMENTS Installment Due 1/31 Principal Interest[a]Capitalized Interest[c] Reserve Fund[d] Additional Interest Annual Collection Costs Total Annual Installment Due[b] 2026 $ -1,131,667$ (1,131,667)$ -$ $ - $ --$ 2027 403,000$ 2,037,000$ -$ -$ 169,750$ 40,800$ 2,650,550$ 2028 428,000$ 2,012,820$ -$ -$ 167,735$ 41,616$ 2,650,171$ 2029 455,000$ 1,987,140$ -$ -$ 165,595$ 42,448$ 2,650,183$ 2030 484,000$ 1,959,840$ -$ -$ 163,320$ 43,297$ 2,650,457$ 2031 514,000$ 1,930,800$ -$ -$ 160,900$ 44,163$ 2,649,863$ 2032 547,000$ 1,899,960$ -$ -$ 158,330$ 45,046$ 2,650,336$ 2033 582,000$ 1,867,140$ -$ -$ 155,595$ 45,947$ 2,650,682$ 2034 618,000$ 1,832,220$ -$ -$ 152,685$ 46,866$ 2,649,771$ 2035 658,000$ 1,795,140$ -$ -$ 149,595$ 47,804$ 2,650,539$ 2036 699,000$ 1,755,660$ -$ -$ 146,305$ 48,760$ 2,649,725$ 2037 744,000$ 1,713,720$ -$ -$ 142,810$ 49,735$ 2,650,265$ 2038 791,000$ 1,669,080$ -$ -$ 139,090$ 50,730$ 2,649,900$ 2039 842,000$ 1,621,620$ -$ -$ 135,135$ 51,744$ 2,650,499$ 2040 895,000$ 1,571,100$ -$ -$ 130,925$ 52,779$ 2,649,804$ 2041 953,000$ 1,517,400$ -$ -$ 126,450$ 53,835$ 2,650,685$ 2042 1,013,000$ 1,460,220$ -$ -$ 121,685$ 54,911$ 2,649,816$ 2043 1,078,000$ 1,399,440$ -$ -$ 116,620$ 56,010$ 2,650,070$ 2044 1,147,000$ 1,334,760$ -$ -$ 111,230$ 57,130$ 2,650,120$ 2045 1,221,000$ 1,265,940$ -$ -$ 105,495$ 58,272$ 2,650,707$ 2046 1,299,000$ 1,192,680$ -$ -$ 99,390$ 59,438$ 2,650,508$ 2047 1,382,000$ 1,114,740$ -$ -$ 92,895$ 60,627$ 2,650,262$ 2048 1,471,000$ 1,031,820$ -$ -$ 85,985$ 61,839$ 2,650,644$ 2049 1,565,000$ 943,560$ -$ -$ 78,630$ 63,076$ 2,650,266$ 2050 1,665,000$ 849,660$ -$ -$ 70,805$ 64,337$ 2,649,802$ 2051 1,772,000$ 749,760$ -$ -$ 62,480$ 65,624$ 2,649,864$ 2052 1,886,000$ 643,440$ -$ -$ 53,620$ 66,937$ 2,649,997$ 2053 2,007,000$ 530,280$ -$ -$ 44,190$ 68,275$ 2,649,745$ 2054 2,137,000$ 409,860$ -$ -$ 34,155$ 69,641$ 2,650,656$ 2055 2,274,000$ 281,640$ -$ -$ 23,470$ 71,034$ 2,650,144$ 2056 2,420,000$ 145,200$ -$ (2,482,455)$ 12,100$ 72,454$ 2,649,754$ Total 33,950,000$ 40,523,640$ -$ (2,482,455)$ 3,376,970$ 1,655,175$ 79,505,785$ Footnotes: [b] The figures shown above are estimates only and subject to change in Annual Service Plan Updates. Changes in Annual Collection Costs, reserve fund requirements, interest earnings, or other available offsets could increase or decrease the amounts shown. [c] No Annual Installment shall be collected and capitalized interest is expected to fund the 9/15/2026 debt service payment. [d] Assumes Reserve Fund is fully funded and available to reduce Annual Installments in the final year. [a] Interest is calculated at a 6.00% rate for illustrative purposes and is subject to change upon PID Bond issuance. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 37 EXHIBIT G-1 – MAPS OF MAJOR IMPROVEMENTS SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 38 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 39 EXHIBIT G-2 – MAPS OF IMPROVEMENT AREA #1 IMPROVEMENTS SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 40 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 41 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 42 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 43 EXHIBIT H – TIRZ NO. 9 ANNUAL CREDIT AMOUNT BY LOT TYPE Improvement Area #1 Lot Type 1 (45')76 1.105792 (1,252.30)$ 0.843256$ 2.838792$ Lot Type 2 (50')166 1.105792 (1,391.44)$ 0.843256$ 2.838792$ Lot Type 3 (60')143 1.105792 (1,669.73)$ 0.843256$ 2.838792$ Lot Type 4 (70')33 1.105792 (1,948.02)$ 0.843256$ 2.838792$ [a] Per information provided by the Developer. [b] To be determined at the time of PID Bond issuance; based on information provided by the Developer as to Estimated Buildout Value. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 44 EXHIBIT I – FORM OF NOTICE OF ASSESSMENT TERMINATION P3Works, LLC 9284 Huntington Square, Suite 100 North Richland Hills, TX 76182 ______________________________________________________________________________ [Date] Collin County Clerk’s Office Honorable [County Clerk] Collin County Administration Building 2300 Bloomdale Rd, Suite 2106 McKinney, TX 75071 Re: City of Anna Lien Release documents for filing Dear Ms./Mr. [County Clerk] Enclosed is a lien release that the City of Anna is requesting to be filed in your office. Lien release for [insert legal description]. Recording Numbers: [Plat]. Please forward copies of the filed documents to my attention: City of Anna Attn: City Secretary 120 W. 7th Street Anna, TX 75409 Please contact me if you have any questions or need additional information. Sincerely, [Signature] P3Works, LLC (817) 393-0353 Admin@P3-Works.com www.P3-Works.com SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 45 AFTER RECORDING RETURN TO: [City Secretary Name] 120 W. 7th Street Anna, TX 75409 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. FULL RELEASE OF PUBLIC IMPROVEMENT DISTRICT LIEN STATE OF TEXAS § § KNOWN ALL MEN BY THESE PRESENTS: COUNTY OF COLLIN § THIS FULL RELEASE OF PUBLIC IMPROVEMENT DISTRICT LIEN (this "Full Release") is executed and delivered as of the Effective Date by the City of Anna, Texas, a Texas home rule municipality (the “City”). RECITALS WHEREAS, the governing body (hereinafter referred to as the "City Council” of Anna, Texas is authorized by Chapter 372, Texas Local Government Code, as amended (hereinafter referred to as the "Act"), to create public improvement districts within the corporate limits of the City; and WHEREAS, on March 25, 2025 the City Council of the City approved Resolution No. 2025- 03-1753 creating the Sherley Farms Public Improvement District (the “District”); and WHEREAS, the District consists of approximately 1,123.592 contiguous acres within the corporate limits of the City; and WHEREAS, on ____________, the City Council, approved Ordinance No. __________, (hereinafter referred to as the "Assessment Ordinance") approving a service and assessment plan and assessment roll for the real property located with the District, the Assessment Ordinance being recorded on _____________, as Instrument No. ________ in the Official Public Records of Collin County, Texas; and WHEREAS, the Assessment Ordinance imposed an assessment in the amount of [amount] (hereinafter referred to as the "Lien Amount") and further imposed a lien to secure the payment of the Lien Amount (the “Lien”) against the following property located within the District, to wit: SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 46 [legal description], an addition to the City of Anna, Collin County, Texas, according to the map or plat thereof recorded as Instrument No. ________ in the Map Records of Collin County, Texas (the "Property"); and WHEREAS, the Lien Amount has been paid in full. RELEASE NOW THEREFORE, for and in consideration of the full payment of the Lien Amount, the City hereby releases and discharges, and by these presents does hereby release and discharge, the Lien to the extent that is affects and encumbers the Property. EXECUTED to be EFFECTIVE this the _____ day of _________, 20__. CITY OF ANNA, TEXAS, A Texas home rule municipality, By: _______________________________ [Manager Name], City Manager ATTEST: _______________________________ [Secretary Name], City Secretary STATE OF TEXAS § § COUNTY OF COLLIN § This instrument was acknowledged before me on the ____ day of ________, 20__, by the City Manager for the City of Anna, Texas, a Texas home rule municipality, on behalf of said municipality. _______________________________ Notary Public, State of Texas SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 47 EXHIBIT J – DEBT SERVICE SCHEDULE FOR IMPROVEMENT AREA #1 BONDS [To be provided at PID Bond pricing.] SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 48 EXHIBIT K-1 – DISTRICT LEGAL DESCRIPTION SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 49 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 50 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 51 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 52 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 53 EXHIBIT K-2 – IMPROVEMENT AREA #1 LEGAL DESCRIPTION PHASE 1 METES AND BOUNDS DESCRIPTION BEING a tract of land situated in the G. Morrison Survey, Abstract No. 559, and the S. Moore Survey, Abstract No. 625, in Collin County, Texas, being part of Tracts 1.1, 1.3, and 1.4, recorded in Volume 4466, Page 153, Deed Records, Collin County, Texas (DRCCT), and part of Tract 1.1, recorded in Volume 4466, Page 183 DRCCT, and all of Tract 1.2, recorded in Volume 4466, Page 201, DRCCT, with the subject tract being more particularly described as follows: BEGINNING at a 1/2" iron rod with plastic cap stamped "SPIARSENG" set along the south line of Farm to Market Road 2862, a 90-foot-wide right-of-way, from which a 1/2" iron rod found bears N 84°54'26" W, 1658.47 feet for the southeast corner of the "Second Tract" conveyed to Daniel W. Koen and Sue Ann Burleson-Koen, recorded in Document No. 93-0107055 DRCCT; THENCE S 87°35'00" E, 3.15 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE S 87°54'00" E, 852.06 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE S 88°23'00" E, 1005.18 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a tangent curve to the left having a central angle of 61°39'58", a radius of 363.31 feet, a chord of N 60°47'01" E - 372.42 feet, an arc length of 391.02 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set on the west line of a tract conveyed to Larry Kropman Bennett and Jill Rae Bennett, recorded in Volume 1718, Page 193 DRCCT; THENCE S 02°42'15" W, 147.06 feet along the west line thereof to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE S 88°34'52" E, along the south line of said Bennett tract, passing at 317.47 feet a 3/8" iron rod found for the southeast corner thereof, being the southwest corner of a tract described in deed recorded in Document No. 20160209000150410 OPRCCT, and continuing along the south line thereof a total distance of 673.49 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE S 19°13'14" E, 988.05 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 54 THENCE around a non-tangent curve to the right having a central angle of 31°18'08", a radius of 1355.00 feet, a chord of S 38°55'42" W - 731.10 feet, an arc length of 740.27 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE S 54°34'46" W, 675.31 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a tangent curve to the left having a central angle of 8°25'51", a radius of 2545.00 feet, a chord of S 50°21'50" W - 374.15 feet, an arc length of 374.49 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a compound curve to the left having a central angle of 1°21'02", a radius of 1545.00 feet, a chord of S 45°28'23" W - 36.42 feet, an arc length of 36.42 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 47°52'56" W, 117.77 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 63°22'52" W, 674.62 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE S 26°37'08" W, 490.25 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 63°19'59" W, 296.01 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE S 26°37'08" W, 130.00 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 63°22'52" W, 268.53 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a tangent curve to the left having a central angle of 36°00'21", a radius of 95.00 feet, a chord of N 81°23'03" W - 58.72 feet, an arc length of 59.70 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE S 80°36'47" W, 80.83 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a tangent curve to the left having a central angle of 7°19'45", a radius of 345.00 feet, a chord of S 76°56'54" W - 44.10 feet, an arc length of 44.13 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 55 THENCE S 52°52'29" W, 50.00 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a non-tangent curve to the right having a central angle of 33°46'17", a radius of 850.00 feet, a chord of N 20°14'22" W - 493.79 feet, an arc length of 501.01 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 03°21'14" W, 51.20 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 87°03'38" W, 802.11 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a non-tangent curve to the right having a central angle of 09°05'47", a radius of 1,245 feet, a chord of N 63°23'05" E - 197.45 feet, an arc length of 197.66 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a reverse curve to the left having a central angle of 05°45'11", a radius of 1245.00 feet, a chord of N 65°03'23" E - 124.96 feet, an arc length of 125.01 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 62°10'47" E, 501.95 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a tangent curve to the left having a central angle of 24°42'42", a radius of 780.00 feet, a chord of N 49°49'26" E - 333.81 feet, an arc length of 336.41 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a compound curve to the left having a central angle of 43°38'06", a radius of 365.00 feet, a chord of N 15°33'38" E - 271.31 feet, an arc length of 277.98 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a non-tangent curve to the right having a central angle of 98°57'03", a radius of 71.50 feet, a chord of N 80°15'05" W - 108.70 feet, an arc length of 123.48 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 30°46'33" W, 84.43 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 25°05'59" W, 115.10 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE around a tangent curve to the right having a central angle of 62°31'41", a radius of 379.50 feet, a chord of N 06°09'52" E - 393.91 feet, an arc length of 414.16 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 56 THENCE around a reverse curve to the left having a central angle of 04°49'49", a radius of 220.50 feet, a chord of N 35°00'48" E - 18.58 feet, an arc length of 18.59 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 87°54'00" W, 104.75 feet to a 1/2" iron rod with plastic cap stamped "SPIARSENG" set; THENCE N 02°06'00" E 150.02 feet to the POINT OF BEGINNING, with the subject tract containing 5,880,591 square feet or 135.00 acres of land. SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 57 APPENDIX A – ENGINEER’S REPORT [Remainder of page left intentionally blank.] # of Lots: 418 Total Cost Per Lot % of Cost CONSTRUCTION COST - PHASE 1 PID SWPPP/Inspection 15,000.00$ 35.89$ 0.03% Street Construction Materials Testing 229,900.00$ 550.00$ 0.50% Street Turn Lanes (TXDOT) 400,000.00$ 956.94$ 0.87% Street Signage (Includes CBUs) 233,490.00$ 558.59$ 0.51% Street Erosion Control 278,744.50$ 666.85$ 0.61% Street Public Excavation 292,884.50$ 700.68$ 0.64% Street Paving 5,414,872.63$ 12,954.24$ 11.79% Street Water 2,285,898.20$ 5,468.66$ 4.98% Water Sanitary Sewer 2,797,635.50$ 6,692.91$ 6.09% Sewer Storm Drainage 3,583,566.20$ 8,573.12$ 7.80% Storm Drainage Final Stabilization 2,762,590.99$ 6,609.07$ 6.02% Final Stabilization CONSTRUCTION CONTINGENCY (15%)2,744,187.38$ 6,565.04$ 5.98% Soft Costs TOTAL HARD COST - PHASE 1 PID 21,038,769.90$ 50,331.99$ 45.82% PID SOFT COSTS Construction Management (4% of Phase 1 PID Hard Costs)731,783.30$ 1,750.68$ 1.59% Soft Costs Developer PID Cost 75,000.00$ 179.43$ 0.16% Soft Costs Utility Maintenance Bond 132,900.00$ 317.94$ 0.29% Soft Costs Preliminary Engineering 64,650.00$ 154.67$ 0.14% Soft Costs Public Engineering, Construction Staking, Administrative 816,200.00$ 1,952.63$ 1.78% Soft Costs Survey (topo, tree, boundary, easement, etc.)52,500.00$ 125.60$ 0.11% Soft Costs Soil Testing - Final Geotech 55,380.00$ 132.49$ 0.12% Soft Costs Restaking 20,900.00$ 50.00$ 0.05% Soft Costs Preliminary Plat/Final Plat 127,700.00$ 305.50$ 0.28% Soft Costs Plat Filing Fees & Review Fees 19,941.40$ 47.71$ 0.04%Soft Costs Flood Study 13,700.00$ 32.78$ 0.03%Soft Costs Final Stabilization Design 144,607.79$ 345.95$ 0.31% Soft Costs Right of Way 3,696,000.00$ 8,842.11$ 8.05% Soft Costs Inspection Fees (4.0%)588,618.50$ 1,408.18$ 1.28%Soft Costs TOTAL PID SOFT COST 6,539,880.99$ 15,645.65$ 14.24% Soft Costs PHASE 1 PRIVATE CIVIL ITEMS Construction Management (4% of Private Civil Items Hard Cost)101,798.70$ 243.54$ 0.22% Private Civil Private Engineering, Construction Staking, Administrative 209,000.00$ 500.00$ 0.46% Private Civil Private Excavation 643,950.50$ 1,540.55$ 1.40% Private Civil Retaining Walls 606,699.00$ 1,451.43$ 1.32% Private Civil Street Lights 326,886.00$ 782.02$ 0.71% Private Civil Electric Service 418,000.00$ 1,000.00$ 0.91% Private Civil Gas Service -$ -$ 0.00% Private Civil Duct Bank 129,150.00$ 308.97$ 0.28% Private Civil Telephone / Fiber Optics -$ -$ 0.00% Private Civil Irrigation Crossings 70,047.00$ 167.58$ 0.15% Private Civil Franchise Crossings 350,235.00$ 837.88$ 0.76% Private Civil HARD COST CONSTRUCTION CONTINGENCY (15%)381,745.13$ 913.27$ 0.83% Private Civil TOTAL PHASE 1 PRIVATE CIVIL ITEMS COST 3,237,511.33$ 7,745.24$ 7.05% Private Civil PHASE 1 PRIVATE HARDSCAPE ITEMS Construction Management (4% of Private Hard Cost)85,009.06$ 203.37$ 0.19% Private HS Hardscape Design 177,142.21$ 423.79$ 0.39% Private HS Hardscape Trails 570,128.00$ 1,363.94$ 1.24% Private HS Central Green - Hardscape 1,032,900.00$ 2,471.05$ 2.25% Private HS Pocket Park - Hardscape 942,336.50$ 2,254.39$ 2.05% Private HS Attached Green 1 - Hardscape 67,127.50$ 160.59$ 0.15% Private HS Attached Green 2 - Hardscape 82,862.50$ 198.24$ 0.18% Private HS GENERAL CONDITIONS (10%)295,750.58$ 707.54$ 0.64% Private HS HARD COST CONSTRUCTION CONTINGENCY (15%)448,665.76$ 1,073.36$ 0.98% Private HS TOTAL PHASE 1 PRIVATE HARDSCAPE ITEMS COST 3,701,922.11$ 8,856.27$ 8.06% Private HS PHASE 1 380 AGREEMENT ITEMS Construction Management (4% of 380 Agreement Hard Cost)332,758.20$ 796.07$ 0.72% 380 Engineering, Construction Staking, Administrative 998,274.60$ 500.00$ 2.17% 380 Water 2,218,535.00$ 5,307.50$ 4.83% 380 Sanitary Sewer 6,100,420.00$ 14,594.31$ 13.29% 380 Maintenance Bond 166,379.10$ 398.04$ 0.36% 380 Inspection Fees (4.0%)332,758.20$ 796.07$ 0.72% 380 HARD COST CONSTRUCTION CONTINGENCY (15%)1,247,843.25$ 2,985.27$ 2.72% 380 TOTAL PHASE 1 380 AGREEMENT COST 11,396,968.35$ 27,265.47$ 24.82% 380 TOTAL DIRECT PID COST 27,578,650.89$ 65,977.63$ 60.06% TOTAL PROJECT COST 45,915,052.67$ 109,844.62$ 100.00% PID HARD COST PID SOFT COST PRIVATE COST Allocation 380 AGREEMENT COST Sherley Farms Phase 1 Phase 1 Summary Description Unit Quantity Unit Price Total Cost Erosion Control Wire-reinforced Silt Fence Metal Posts LF 16670 $ 2.05 34,173.50$ 8' Curlex Behind BOC LF 43500 $ 1.50 65,250.00$ 8' Curlex (Slope Protection)SF 526400 $ 0.19 100,016.00$ Seed and Harrow AC 124 $ 350.00 43,400.00$ Z-panel Inlet Protection EA 102 $ 165.00 16,830.00$ Stone Overflow EA 11 $ 375.00 4,125.00$ Rock Check Dam - 30" max length EA 13 1,150.00$ 14,950.00$ Total Erosion Control Cost 278,744.50$ Final Stabilization Fine Grading LS 1 $ 125,000.00 125,000.00$ Bioswale LS 1 $ 50,000.00 50,000.00$ Ornamental Trees EA 188 $ 600.00 112,800.00$ Canopy Trees EA 4 $ 1,200.00 4,800.00$ Canopy Trees EA 408 $ 800.00 326,400.00$ Specimen Trees EA 2 $ 2,500.00 5,000.00$ Reforested Trees EA 70 $ 350.00 24,500.00$ Planting Beds SF 124,178 $ 7.00 869,246.00$ Planting Bed Irrigation SF 124,178 $ 1.50 186,267.00$ Lawn SF 168,731 $ 1.00 168,731.00$ Lawn Irrigation SF 562,059 $ 0.65 365,338.35$ Hydroseed SF 544,328 $ 0.50 272,164.00$ Irrigation Sleeves LF 200 $ 6.00 1,200.00$ General Conditions LS 1 $ 251,144.64 251,144.64$ Total Final Stabilization Cost 2,762,590.99$ Public Excavation Clearing & Grubbing AC 144 650.00$ 93,600.00$ Unclassified Excavation - ROW CY 55958 2.75$ 153,884.50$ Rock Surcharge - ROW CY 3280 2.50$ 8,200.00$ Over-Exc & Process Rock Roads (8") CY 1480 2.50$ 3,700.00$ Strip, Stockpile & Spread Topsoil LS 1 30,000.00$ 30,000.00$ Fine Grade Open Spaces LS 1 3,500.00$ 3,500.00$ Total Excavation Cost 292,884.50$ Paving Asphalt Transition Pavement, 2" Type C or D HMAC With PG 76-22 Binder, 8" Type A or B HMAC SY 598 $ 106.55 63,716.90$ 6" Reinforced Concrete Pavement, Curb & Gutter (4000 psi, #4 Bars @ 18" OCEW) 31' B-B Residential Section SY 76,885 $ 46.85 3,602,070.99$ 6" Reinforced Concrete Pavement, (4000 psi, #4 Bars @ 24" OCEW) 24' E-E Alley Section(s) SY 2,642 $ 54.49 143,971.56$ 6" Reinforced Concrete Pavement, (4000 psi, #4 Bars @ 18" OCEW) 12' E-E Alley Section SY 426 $ 54.43 23,187.58$ 8" Reinforced Concrete Pavement, (4000 psi, #4 Bars @ 18" OCEW) Roundabout Paving including Mountable Curb SY 1,516 $ 66.19 100,346.33$ Roundabout Truck Apron Including Concrete, Vehicular Pavers, and 6" Curb SY 227 $ 165.20 37,500.40$ 8” Reinforced Concrete Pavement, Curb & Gutter (4000 psi, #4 Bars @ 18" OCEW), Residential Entrance Section(s) 18' B-B SY 2,459 $ 64.85 159,471.44$ Roundabout Median Median Pavers With Mountable Curb SY 81 $ 179.71 14,556.18$ 6" Lime Stabilized Subgrade (1' outside BOC) SY 86,613 $ 2.80 242,515.01$ 8" Lime Stabilized Subgrade (1' outside BOC) SY 4,268 $ 3.00 12,803.21$ 6% Hydrated Lime (27#/SY) TONS 1,170 $ 319.80 374,166.02$ 6% Hydrated Lime (36#/SY) TONS 77 $ 319.25 24,582.17$ Directional Barrier Free Ramps EA 19 $ 2,850.00 54,150.00$ Bi-Directional Barrier Free Ramps EA 48 $ 2,954.58 141,820.00$ Mid Block Barrier Free Ramp EA 20 $ 1,950.00 39,000.00$ Sherley Farms Phase 1 Phase 1 PID Hard Cost Detail Description Unit Quantity Unit Price Total Cost Construct Street Header LF 483 $ 15.00 7,245.00$ Furnish and Install Type IIl Barricade LF 291 $ 65.21 18,975.00$ 5' Sidewalk (4" thick) SY 3,070 $ 64.95 199,402.27$ 6-12" Dry Rock Rip Rap SY 190 $ 100.00 19,000.00$ Traffic Control EA 1 $ 25,000.00 25,000.00$ Maintenance Bond 2 Year 100% LS 3 $ 21,500.00 64,500.00$ 5" Reinforced Concrete Pavement, (4000 psi, #4 Bars @ 18" OCEW), Parallel Parking Stalls SY 677 $ 61.52 41,646.57$ Connect to Street Header LF 116 $ 15.00 1,740.00$ Remove and Dispose of Type III Barricade LF 117 $ 29.97 3,506.00$ Total Paving Cost 5,414,872.63$ Water 8" DR-18 LF 21748 52.56$ 1,143,120.90$ 6" Gate Valve EA 49 $ 1,570.00 76,930.00$ 8" Gate Valve EA 87 $ 2,160.00 187,920.00$ 1" Single Water Service EA 422 $ 945.00 398,790.00$ 2" Air Release Valve EA 2 $ 6,700.00 13,400.00$ 2" Irrigation Service EA 1 $ 3,000.00 3,000.00$ 2" Auto Flush Device EA 11 $ 8,905.45 97,960.00$ Fire Hydrant Assembly W/ 6" Lead EA 47 $ 5,041.06 236,930.00$ Cast Iron Fittings TONS 7.7 $ 8,397.73 64,662.50$ Trench Safety LF 21748 $ 0.10 2,174.80$ Chlorination & Testing LF 21748 $ 2.50 54,370.00$ 8" Plug EA 12 $ 291.67 3,500.00$ Remove Ex. 8" Plug & Connect 8" EA 3 $ 1,046.67 3,140.00$ Total Water Cost 2,285,898.20$ Sanitary Sewer 8" SDR-35 LF 12,031 78.61$ 945,732.20$ 8" SDR-26 LF 6,956 $ 89.70 623,976.80$ 4' Dia. Manhole EA 61 $ 7,307.54 445,760.00$ 4' Dia. Drop Manhole EA 1 11,410.00$ 11,410.00$ 5' Dia. Drop Manhole EA 1 13,975.00$ 13,975.00$ Remove Ex. 8" Plug & Connect 8" EA 4 638.75$ 2,555.00$ 8" Plug EA 6 276.67$ 1,660.00$ 4" Sewer Service EA 422 1,400.13$ 590,855.00$ 16" SDR-35 Encasement Pipe LF 580 110.86$ 64,300.00$ Trench Safety LF 18,987 $ 0.10 1,898.70$ T.V. & Testing LF 18,987 $ 4.86 92,332.80$ Concrete Encasement LF 30 $ 60.00 1,800.00$ Connect To Ex. Manhole EA 1 $ 1,380.00 1,380.00$ Total Sanitary Sewer Cost 2,797,635.50$ Storm Drainage 18" RCP LF 3,675 $ 80.00 294,000.00$ 21" RCP LF 1,901 $ 89.00 169,189.00$ 24" RCP LF 1,789 $ 97.00 173,533.00$ 27" RCP LF 1,003 $ 120.00 120,360.00$ 30" RCP LF 1,062 $ 127.00 134,874.00$ 33" RCP LF 934 $ 138.00 128,892.00$ 36" RCP LF 1,138 $ 149.00 169,562.00$ 42" RCP LF 1,374 $ 181.00 248,694.00$ 48" RCP LF 897 $ 207.00 185,679.00$ 54" RCP LF 811 $ 243.00 197,073.00$ 60" RCP LF 673 $ 273.00 183,729.00$ 4' Junction Box EA 12 $ 7,360.00 88,320.00$ 5' Junction Box EA 9 $ 8,165.00 73,485.00$ 6' Junction Box EA 1 $ 9,085.00 9,085.00$ 21" Type "C" Headwall EA 1 $ 4,900.00 4,900.00$ 27" Type "B" Headwall EA 1 $ 4,830.00 4,830.00$ 30" Type "B" Headwall EA 1 $ 5,060.00 5,060.00$ Description Unit Quantity Unit Price Total Cost 36" Type "C" Headwall EA 1 $ 5,865.00 5,865.00$ 42" Type "B" Headwall EA 2 $ 5,980.00 11,960.00$ 42" Type "C" Headwall EA 1 $ 6,615.00 6,615.00$ 54" Type "C" Headwall EA 2 $ 7,935.00 15,870.00$ 60" Type "C" Headwall EA 1 $ 8,740.00 8,740.00$ 2' X 2' Wye Inlet W/ 4' Concrete Apron EA 1 $ 5,520.00 5,520.00$ 5' Curb Inlet EA 1 $ 7,420.00 7,420.00$ 10' Curb Inlet EA 92 $ 8,165.00 751,180.00$ Non Standard Curb Inlet (2-5',2-8'&1-12') EA 5 $ 8,050.00 40,250.00$ Grate Combo Inlet EA 3 $ 9,430.00 28,290.00$ Remove Ex. 42" Headwall & Connect EA 2 $ 1,785.00 3,570.00$ 6"-12" Dry Rock Rip Rap SY 412 $ 104.00 42,848.00$ Trench Safety LF 15,257 $ 0.10 1,525.70$ T.V. Inspection LF 15,257 $ 5.00 76,285.00$ 18" Type Il Precast Safety End Treatment EA 4 $ 1,430.00 5,720.00$ Unclassified Excavation - Ponds & Drainage CY 58470 2.75$ 160,792.50$ Rock Surcharge - Ponds & Drainage CY 39260 2.50$ 98,150.00$ Aeration EA 4 25,000.00$ 100,000.00$ 18" Pond Clay Liner CY 8680 2.50$ 21,700.00$ Total Storm Drainage Cost 3,583,566.20$ 17,416,192.52$ Total Phase 1 PID Hard Cost Detail Cost Private Excavation Unclassified Excavation - Private CY 134282 2.75$ 369,275.50$ Rock Surcharge - Private CY 7160 2.50$ 17,900.00$ Over-Exc & Process Rock Pads (6") CY 2390 2.50$ 5,975.00$ Rough Lot Benching EA 418 400.00$ 167,200.00$ Final Lot Benching EA 418 200.00$ 83,600.00$ Total Private Excavation Cost 643,950.50$ Retaining Walls Retaining Walls LS 1 606,699.00$ 606,699.00$ Total Retaining Walls Cost 606,699.00$ 1,250,649.50$ Sherley Farms Phase 1 Phase 1 Private Civil Detail Total Phase 1 Private Civil Detail Costs Description Unit Quantity Unit Price Total Cost Hardscape Trails 6' Wide Trail SF 17,688 8.00$ 141,504.00$ 10' Wide Trail SF 26,230 8.00$ 209,840.00$ 12' Wide Trail SF 27,348 8.00$ 218,784.00$ Total Hardscape Trails Cost 570,128.00$ Central Green - Hardscape Metal Grate at Bioswale EA 1 $ 10,000.00 10,000.00$ Pond Terrace Steps LS 1 $ 150,000.00 150,000.00$ Misc. Site Walls / Steps / Rails / Handrails LS 1 $ 650,000.00 650,000.00$ SF Entry Signage LS 1 $ 100,000.00 100,000.00$ Lighting / Electrical LS 1 $ 50,000.00 50,000.00$ Split Rail Fence LF 1,620 $ 45.00 72,900.00$ Central Green - Hardscape Cost 1,032,900.00$ Pocket Park - Hardscape Decomposed Granite or Aggregate SF 8,743 $ 5.50 48,086.50$ Stone Slabs EA 11 $ 1,000.00 11,000.00$ Play Fall Surfacing SF 13,875 $ 5.00 69,375.00$ Play Equipment LS 1 $ 500,000.00 500,000.00$ Barrier Free Ramps EA 6 $ 1,500.00 9,000.00$ Site Furnishings EA 34 $ 2,000.00 68,000.00$ Lighting & Electrical LS 1 $ 75,000.00 75,000.00$ Fence LF 475 $ 25.00 11,875.00$ Trellis EA 2 $ 75,000.00 150,000.00$ Pocket Park - Hardscape Cost 942,336.50$ Attached Green 1 - Hardscape Decomposed Granite or Aggregate SF 2,205 $ 5.50 12,127.50$ Stone Slabs EA 42 $ 1,000.00 42,000.00$ Barrier Free Ramps EA 2 $ 1,500.00 3,000.00$ Lighting and Electrical LS 1 $ 10,000.00 10,000.00$ Attached Green 1 - Hardscape Cost 67,127.50$ Attached Green 2 - Hardscape Decomposed Granite or Aggregate SF 3,975 $ 5.50 21,862.50$ Stone Slabs EA 51 $ 1,000.00 51,000.00$ Lighting and Electrical LS 1 $ 10,000.00 10,000.00$ Attached Green 2 - Hardscape Cost 82,862.50$ 2,695,354.50$ 269,535.45$ Total Phase 1 Private Landscape/Hardscape Detail Cost with General Conditions 2,964,889.95$ Sherley Farms Phase 1 Phase 1 Private Landscape/Hardscape Detail Total Phase 1 Private Landscape/Hardscape Detail Cost General Conditions (10%) Water 12" DR-18 LF 13410 95.00$ 1,273,950.00$ 16" DR-18 LF 1775 125.00$ 221,875.00$ 24" Steel Casing Pipe LF 40 1,000.00$ 40,000.00$ 6" Gate Valve EA 30 2,000.00$ 60,000.00$ 12" Gate Valve EA 31 4,400.00$ 136,400.00$ 16" Butterfly Valve EA 3 10,000.00$ 30,000.00$ Fire Hydrant & Assembly EA 30 7,400.00$ 222,000.00$ Air Release Valve EA 3 20,000.00$ 60,000.00$ Connect To Existing EA 2 5,000.00$ 10,000.00$ Trench Safety LF 15185 1.00$ 15,185.00$ Concrete Blocking LS 1 20,000.00$ 20,000.00$ Ductile Iron Fittings TON 15.2 3,500.00$ 53,200.00$ Water Line Testing LF 15185 5.00$ 75,925.00$ Total Water Cost 2,218,535.00$ Sanitary Sewer 10" PVC LF 1485 102.00$ 151,470.00$ 12" PVC LF 750 110.00$ 82,500.00$ 21" PVC LF 2130 162.00$ 345,060.00$ 24" PVC LF 2500 180.00$ 450,000.00$ 20" Fused HDPE LF 8000 175.00$ 1,400,000.00$ 4' Manhole EA 4 8,000.00$ 32,000.00$ 5' Manhole EA 28 10,000.00$ 280,000.00$ Air Release Valve EA 1 20,000.00$ 20,000.00$ Remove & Replace Driveway EA 11 3,000.00$ 33,000.00$ 24" Steel Encasement By Bore LF 280 1,060.00$ 296,800.00$ 24" Steel Encasement By Open Cut LF 40 260.00$ 10,400.00$ Lift Station LS 1 2,700,000.00$ 2,700,000.00$ Trench Safety LF 14865 1.00$ 14,865.00$ Sewer Line Testing LF 14865 5.00$ 74,325.00$ Traffic Control LS 1 50,000.00$ 50,000.00$ Easement Acquisition SF 160000 1.00$ 160,000.00$ Total Sanitary Sewer Cost 6,100,420.00$ 8,318,955.00$ Sherley Farms Phase 1 Phase 1 380 Agreement Improvements Detail Total Phase 1 380 Agreement Improvement Detail Cost 1 2 3 4 5 6 7 Phase 1 retaining wall costs are based on a bid received by Wallco Retaining Walls, Inc. on 09/09/2025. Phase 1 landscape, hardscape, and amenity costs are based on an estimate received by Garrison/Jones Landscape Architects received on 1/9/2025. ROW Value is based on appraisal report File No. A25-1217-06 by Peyo Southwest Realty, Inc. Assumptions Sherley Farms Phase 1 Phase 1 residential water, sanitary sewer, storm, and utility maintenance bond costs are based on a bid received by KCK Utility Construction on 10/21/2025. Phase 1 erosion control costs are based on a bid received by Southwest Erosion Control, prepared on 10/28/2025. Phase 1 excavation costs are based on a bid received by Sinacola on 10/24/2025. Phase 1 residential paving costs are based on a bid received by Chris Harp Construction on 10/14/2025. Scale: 1" = 120' June, 2025 SEI Job No. 23-288 S N W E                BOUNDARY EXHIBIT                 SHERLEY FARMS PHASE 1 CITY OF ANNA, COLLIN COUNTY, TEXAS Scale: 1" = 120' June, 2025 SEI Job No. 23-288 S N W E         DIRECT WATER IMPROVEMENTS         SHERLEY FARMS PHASE 1 CITY OF ANNA, COLLIN COUNTY, TEXAS Scale: 1" = 120' June, 2025 SEI Job No. 23-288 S N W E         DIRECT SANITARY SEWER IMPROVEMENTS         SHERLEY FARMS PHASE 1 CITY OF ANNA, COLLIN COUNTY, TEXAS Scale: 1" = 120' June, 2025 SEI Job No. 23-288 S N W E         DIRECT STORM SEWER IMPROVEMENTS         SHERLEY FARMS PHASE 1 CITY OF ANNA, COLLIN COUNTY, TEXAS Scale: 1" = 120' June, 2025 SEI Job No. 23-288 S N W E         DIRECT PAVING IMPROVEMENTS         SHERLEY FARMS PHASE 1 CITY OF ANNA, COLLIN COUNTY, TEXAS S N W E Scale: 1" = 400' June, 2025 SEI Job No. 23-288         MAJOR WATER IMPROVEMENTS         SHERLEY FARMS PHASE 1 CITY OF ANNA, COLLIN COUNTY, TEXAS Scale: 1" = 400' June, 2025 SEI Job No. 23-288 S N W E         MAJOR SANITARY SEWER IMPROVEMENTS         SHERLEY FARMS PHASE 1 CITY OF ANNA, COLLIN COUNTY, TEXAS SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN 74 APPENDIX B – BUYER DISCLOSURES Forms of the buyer disclosures for the following Lot Types are found in this appendix: Improvement Area #1  Initial Parcel  Lot Type 1  Lot Type 2  Lot Type 3  Lot Type 4 [Remainder of page left intentionally blank.] SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT - IMPROVEMENT AREA #1 INITIAL PARCEL BUYER DISCLOSURE NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.005), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice, signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This notice requirement does not apply to a transfer: 1) under a court order or foreclosure sale; 2) by a trustee in bankruptcy; 3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; 6) from one co-owner to another co-owner of an undivided interest in the real property; 7) to a spouse or a person in the lineal line of consanguinity of the seller; 8) to or from a governmental entity; or 9) of only a mineral interest, leasehold interest, or security interest The following notice shall be given to a prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchaser, subject to certain exceptions, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchaser and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. AFTER RECORDING1 RETURN TO: ____________________ ____________________ ____________________ ____________________ ____________________ NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF ANNA, TEXAS CONCERNING THE FOLLOWING PROPERTY __________________________________________ STREET ADDRESS IMPROVEMENT AREA #1 INITIAL PARCEL PRINCIPAL ASSESSMENT: $33,950,000.00 As the purchaser of the real property described above, you are obligated to pay assessments to City of Anna, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Sherley Farms Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of Anna. The exact amount of each annual installment will be approved each year by the Anna City Council in the annual service plan update for the District. More information about the assessments, including the amounts and due dates, may be obtained from City of Anna. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. _________________ 1 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County when updating for the Current Information of Obligation to Pay Improvement District Assessment. Signature Page to Initial Notice of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. ______________ 2 To be included in copy of the notice required by Section 5.014, Tex. Prop. Code, to be executed by seller in accordance with Section 5.014(a-1), Tex. Prop. Code. Purchaser Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. STATE OF TEXAS § § COUNTY OF _______ § The foregoing instrument was acknowledged before me by ____________________ and _________________ , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________ , 20__. Notary Public, State of Texas]3 ______________ 3 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County. Seller Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. STATE OF TEXAS § § COUNTY OF ________ § The foregoing instrument was acknowledged before me by ______________________ and ____________________ , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________, 20__. Notary Public, State of Texas]4 ______________ 4 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County. Annual Installment Schedule to Notice of Obligation to Pay Improvement District Assessment Installment Due 1/31 Principal Interest[a]Additional Interest Annual Collection Costs Total Annual Installment Due[b] 2027 403,000$ 2,037,000$ 169,750$ 40,800$ 2,650,550$ 2028 428,000$ 2,012,820$ 167,735$ 41,616$ 2,650,171$ 2029 455,000$ 1,987,140$ 165,595$ 42,448$ 2,650,183$ 2030 484,000$ 1,959,840$ 163,320$ 43,297$ 2,650,457$ 2031 514,000$ 1,930,800$ 160,900$ 44,163$ 2,649,863$ 2032 547,000$ 1,899,960$ 158,330$ 45,046$ 2,650,336$ 2033 582,000$ 1,867,140$ 155,595$ 45,947$ 2,650,682$ 2034 618,000$ 1,832,220$ 152,685$ 46,866$ 2,649,771$ 2035 658,000$ 1,795,140$ 149,595$ 47,804$ 2,650,539$ 2036 699,000$ 1,755,660$ 146,305$ 48,760$ 2,649,725$ 2037 744,000$ 1,713,720$ 142,810$ 49,735$ 2,650,265$ 2038 791,000$ 1,669,080$ 139,090$ 50,730$ 2,649,900$ 2039 842,000$ 1,621,620$ 135,135$ 51,744$ 2,650,499$ 2040 895,000$ 1,571,100$ 130,925$ 52,779$ 2,649,804$ 2041 953,000$ 1,517,400$ 126,450$ 53,835$ 2,650,685$ 2042 1,013,000$ 1,460,220$ 121,685$ 54,911$ 2,649,816$ 2043 1,078,000$ 1,399,440$ 116,620$ 56,010$ 2,650,070$ 2044 1,147,000$ 1,334,760$ 111,230$ 57,130$ 2,650,120$ 2045 1,221,000$ 1,265,940$ 105,495$ 58,272$ 2,650,707$ 2046 1,299,000$ 1,192,680$ 99,390$ 59,438$ 2,650,508$ 2047 1,382,000$ 1,114,740$ 92,895$ 60,627$ 2,650,262$ 2048 1,471,000$ 1,031,820$ 85,985$ 61,839$ 2,650,644$ 2049 1,565,000$ 943,560$ 78,630$ 63,076$ 2,650,266$ 2050 1,665,000$ 849,660$ 70,805$ 64,337$ 2,649,802$ 2051 1,772,000$ 749,760$ 62,480$ 65,624$ 2,649,864$ 2052 1,886,000$ 643,440$ 53,620$ 66,937$ 2,649,997$ 2053 2,007,000$ 530,280$ 44,190$ 68,275$ 2,649,745$ 2054 2,137,000$ 409,860$ 34,155$ 69,641$ 2,650,656$ 2055 2,274,000$ 281,640$ 23,470$ 71,034$ 2,650,144$ 2056 2,420,000$ 145,200$ 12,100$ 72,454$ 2,649,754$ Total 33,950,000$ 40,523,640$ 3,376,970$ 1,655,175$ 79,505,785$ Footnotes: [b] The figures shown above are estimates only and subject to change in Annual Service Plan Updates. Changes in Annual Collection Costs, reserve fund requirements, interest earnings, or other available offsets could increase or decrease the amounts shown. [a] Interest is calculated at a 6.00% rate for illustrative purposes and is subject to change upon ANNUAL INSTALLMENTS - IMPROVEMENT AREA #1 INITIAL PARCEL SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT - IMPROVEMENT AREA #1 LOT TYPE 1 BUYER DISCLOSURE NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.005), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice, signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This notice requirement does not apply to a transfer: 1) under a court order or foreclosure sale; 2) by a trustee in bankruptcy; 3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; 6) from one co-owner to another co-owner of an undivided interest in the real property; 7) to a spouse or a person in the lineal line of consanguinity of the seller; 8) to or from a governmental entity; or 9) of only a mineral interest, leasehold interest, or security interest The following notice shall be given to a prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchaser, subject to certain exceptions, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchaser and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. AFTER RECORDING1 RETURN TO: ____________________ ____________________ ____________________ ____________________ ____________________ NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF ANNA, TEXAS CONCERNING THE FOLLOWING PROPERTY __________________________________________ STREET ADDRESS IMPROVEMENT AREA #1 LOT TYPE 1 PRINCIPAL ASSESSMENT: $67,569.66 As the purchaser of the real property described above, you are obligated to pay assessments to City of Anna, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Sherley Farms Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of Anna. The exact amount of each annual installment will be approved each year by the Anna City Council in the annual service plan update for the District. More information about the assessments, including the amounts and due dates, may be obtained from City of Anna. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. _________________ 1 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County when updating for the Current Information of Obligation to Pay Improvement District Assessment. Signature Page to Initial Notice of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. ______________ 2 To be included in copy of the notice required by Section 5.014, Tex. Prop. Code, to be executed by seller in accordance with Section 5.014(a-1), Tex. Prop. Code. Purchaser Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. STATE OF TEXAS § § COUNTY OF _______ § The foregoing instrument was acknowledged before me by ____________________ and _________________ , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________ , 20__. Notary Public, State of Texas]3 ______________ 3 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County. Seller Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. STATE OF TEXAS § § COUNTY OF ________ § The foregoing instrument was acknowledged before me by ____________________ and _________________ , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________ , 20__. Notary Public, State of Texas]4 ______________ 4 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County. Annual Installment Schedule to Notice of Obligation to Pay Improvement District Assessment Annual Installment Due 1/31 Principal Interest[a]Additional Interest Annual Collection Costs Total Annual Installment Due[b] 2027 802.08$ 4,054.18$ 337.85$ 81.20$ 5,275.31$ 2028 851.84$ 4,006.05$ 333.84$ 82.83$ 5,274.56$ 2029 905.57$ 3,954.94$ 329.58$ 84.48$ 5,274.58$ 2030 963.29$ 3,900.61$ 325.05$ 86.17$ 5,275.12$ 2031 1,023.00$ 3,842.81$ 320.23$ 87.90$ 5,273.94$ 2032 1,088.68$ 3,781.43$ 315.12$ 89.65$ 5,274.88$ 2033 1,158.34$ 3,716.11$ 309.68$ 91.45$ 5,275.57$ 2034 1,229.99$ 3,646.61$ 303.88$ 93.28$ 5,273.76$ 2035 1,309.60$ 3,572.81$ 297.73$ 95.14$ 5,275.29$ 2036 1,391.20$ 3,494.24$ 291.19$ 97.05$ 5,273.67$ 2037 1,480.76$ 3,410.77$ 284.23$ 98.99$ 5,274.74$ 2038 1,574.30$ 3,321.92$ 276.83$ 100.97$ 5,274.02$ 2039 1,675.81$ 3,227.46$ 268.96$ 102.98$ 5,275.21$ 2040 1,781.29$ 3,126.91$ 260.58$ 105.04$ 5,273.82$ 2041 1,896.73$ 3,020.04$ 251.67$ 107.15$ 5,275.58$ 2042 2,016.14$ 2,906.23$ 242.19$ 109.29$ 5,273.85$ 2043 2,145.51$ 2,785.26$ 232.11$ 111.48$ 5,274.35$ 2044 2,282.84$ 2,656.53$ 221.38$ 113.70$ 5,274.45$ 2045 2,430.12$ 2,519.56$ 209.96$ 115.98$ 5,275.62$ 2046 2,585.36$ 2,373.75$ 197.81$ 118.30$ 5,275.23$ 2047 2,750.55$ 2,218.63$ 184.89$ 120.66$ 5,274.74$ 2048 2,927.69$ 2,053.60$ 171.13$ 123.08$ 5,275.50$ 2049 3,114.77$ 1,877.94$ 156.49$ 125.54$ 5,274.74$ 2050 3,313.80$ 1,691.05$ 140.92$ 128.05$ 5,273.82$ 2051 3,526.76$ 1,492.22$ 124.35$ 130.61$ 5,273.94$ 2052 3,753.65$ 1,280.62$ 106.72$ 133.22$ 5,274.21$ 2053 3,994.47$ 1,055.40$ 87.95$ 135.89$ 5,273.71$ 2054 4,253.21$ 815.73$ 67.98$ 138.60$ 5,275.52$ 2055 4,525.87$ 560.54$ 46.71$ 141.38$ 5,274.50$ 2056 4,816.45$ 288.99$ 24.08$ 144.20$ 5,273.73$ Total 67,569.66$ 80,652.98$ 6,721.08$ 3,294.24$ 158,237.96$ Footnotes: [a] Interest is calculated at a 6.00% rate for illustrative purposes and is subject to change upon PID Bond issuance. [b] The figures shown above are estimates only and subject to change in Annual Service Plan Updates. Changes in Annual Collection Costs, reserve fund requirements, interest earnings, or other available offsets could increase or decrease the amounts shown. ANNUAL INSTALLMENTS - IMPROVEMENT AREA #1 LOT TYPE 1 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT - IMPROVEMENT AREA #1 LOT TYPE 2 BUYER DISCLOSURE NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.005), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice, signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This notice requirement does not apply to a transfer: 1) under a court order or foreclosure sale; 2) by a trustee in bankruptcy; 3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; 6) from one co-owner to another co-owner of an undivided interest in the real property; 7) to a spouse or a person in the lineal line of consanguinity of the seller; 8) to or from a governmental entity; or 9) of only a mineral interest, leasehold interest, or security interest The following notice shall be given to a prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchaser, subject to certain exceptions, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchaser and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. AFTER RECORDING1 RETURN TO: ____________________ ____________________ ____________________ ____________________ ____________________ NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF ANNA, TEXAS CONCERNING THE FOLLOWING PROPERTY __________________________________________ STREET ADDRESS IMPROVEMENT AREA #1 LOT TYPE 2 PRINCIPAL ASSESSMENT: $75,077.40 As the purchaser of the real property described above, you are obligated to pay assessments to City of Anna, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Sherley Farms Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of Anna. The exact amount of each annual installment will be approved each year by the Anna City Council in the annual service plan update for the District. More information about the assessments, including the amounts and due dates, may be obtained from City of Anna. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. _________________ 1 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County when updating for the Current Information of Obligation to Pay Improvement District Assessment. Signature Page to Initial Notice of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. ______________ 2 To be included in copy of the notice required by Section 5.014, Tex. Prop. Code, to be executed by seller in accordance with Section 5.014(a-1), Tex. Prop. Code. Purchaser Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. STATE OF TEXAS § § COUNTY OF _______ § The foregoing instrument was acknowledged before me by ____________________ and _________________ , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________ , 20__. Notary Public, State of Texas]3 ______________ 3 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County. Seller Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. STATE OF TEXAS § § COUNTY OF ________ § The foregoing instrument was acknowledged before me by ____________________ and _________________ , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________ , 20__. Notary Public, State of Texas]4 ______________ 4 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County. Annual Installment Schedule to Notice of Obligation to Pay Improvement District Assessment Annual Installment Due 1/31 Principal Interest[a]Additional Interest Annual Collection Costs Total Annual Installment Due[b] 2027 891.20$ 4,504.64$ 375.39$ 90.23$ 5,861.46$ 2028 946.48$ 4,451.17$ 370.93$ 92.03$ 5,860.62$ 2029 1,006.19$ 4,394.38$ 366.20$ 93.87$ 5,860.64$ 2030 1,070.32$ 4,334.01$ 361.17$ 95.75$ 5,861.25$ 2031 1,136.67$ 4,269.79$ 355.82$ 97.66$ 5,859.94$ 2032 1,209.64$ 4,201.59$ 350.13$ 99.62$ 5,860.98$ 2033 1,287.04$ 4,129.01$ 344.08$ 101.61$ 5,861.75$ 2034 1,366.65$ 4,051.79$ 337.65$ 103.64$ 5,859.73$ 2035 1,455.11$ 3,969.79$ 330.82$ 105.71$ 5,861.43$ 2036 1,545.78$ 3,882.49$ 323.54$ 107.83$ 5,859.63$ 2037 1,645.29$ 3,789.74$ 315.81$ 109.98$ 5,860.82$ 2038 1,749.23$ 3,691.02$ 307.59$ 112.18$ 5,860.02$ 2039 1,862.01$ 3,586.07$ 298.84$ 114.43$ 5,861.34$ 2040 1,979.21$ 3,474.35$ 289.53$ 116.72$ 5,859.81$ 2041 2,107.47$ 3,355.59$ 279.63$ 119.05$ 5,861.75$ 2042 2,240.16$ 3,229.15$ 269.10$ 121.43$ 5,859.83$ 2043 2,383.90$ 3,094.74$ 257.89$ 123.86$ 5,860.39$ 2044 2,536.49$ 2,951.70$ 245.98$ 126.34$ 5,860.50$ 2045 2,700.13$ 2,799.51$ 233.29$ 128.86$ 5,861.80$ 2046 2,872.62$ 2,637.51$ 219.79$ 131.44$ 5,861.36$ 2047 3,056.17$ 2,465.15$ 205.43$ 134.07$ 5,860.82$ 2048 3,252.99$ 2,281.78$ 190.15$ 136.75$ 5,861.66$ 2049 3,460.86$ 2,086.60$ 173.88$ 139.49$ 5,860.83$ 2050 3,682.00$ 1,878.95$ 156.58$ 142.28$ 5,859.80$ 2051 3,918.62$ 1,658.03$ 138.17$ 145.12$ 5,859.94$ 2052 4,170.72$ 1,422.91$ 118.58$ 148.03$ 5,860.23$ 2053 4,438.30$ 1,172.67$ 97.72$ 150.98$ 5,859.67$ 2054 4,725.79$ 906.37$ 75.53$ 154.00$ 5,861.69$ 2055 5,028.75$ 622.82$ 51.90$ 157.09$ 5,860.56$ 2056 5,351.61$ 321.10$ 26.76$ 160.23$ 5,859.69$ Total 75,077.40$ 89,614.42$ 7,467.87$ 3,660.27$ 175,819.96$ Footnotes: [a] Interest is calculated at a 6.00% rate for illustrative purposes and is subject to change upon PID Bond issuance. [b] The figures shown above are estimates only and subject to change in Annual Service Plan Updates. Changes in Annual Collection Costs, reserve fund requirements, interest earnings, or other available offsets could increase or decrease the amounts shown. ANNUAL INSTALLMENTS - IMPROVEMENT AREA #1 LOT TYPE 2 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT IMPROVEMENT AREA #1 LOT TYPE 3 BUYER DISCLOSURE NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.005), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice, signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This notice requirement does not apply to a transfer: 1) under a court order or foreclosure sale; 2) by a trustee in bankruptcy; 3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; 6) from one co-owner to another co-owner of an undivided interest in the real property; 7) to a spouse or a person in the lineal line of consanguinity of the seller; 8) to or from a governmental entity; or 9) of only a mineral interest, leasehold interest, or security interest The following notice shall be given to a prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchaser, subject to certain exceptions, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchaser and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. AFTER RECORDING1 RETURN TO: ____________________ ____________________ ____________________ ____________________ ____________________ NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF ANNA, TEXAS CONCERNING THE FOLLOWING PROPERTY __________________________________________ STREET ADDRESS IMPROVEMENT AREA #1 LOT TYPE 3 PRINCIPAL ASSESSMENT: $90,092.88 As the purchaser of the real property described above, you are obligated to pay assessments to City of Anna, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Sherley Farms Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of Anna. The exact amount of each annual installment will be approved each year by the Anna City Council in the annual service plan update for the District. More information about the assessments, including the amounts and due dates, may be obtained from City of Anna. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. _________________ 1 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County when updating for the Current Information of Obligation to Pay Improvement District Assessment. Signature Page to Initial Notice of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. ______________ 2 To be included in copy of the notice required by Section 5.014, Tex. Prop. Code, to be executed by seller in accordance with Section 5.014(a-1), Tex. Prop. Code. Purchaser Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. STATE OF TEXAS § § COUNTY OF _______ § The foregoing instrument was acknowledged before me by ____________________ and _________________ , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________ , 20__. Notary Public, State of Texas]3 ______________ 3 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County. Seller Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. STATE OF TEXAS § § COUNTY OF ________ § The foregoing instrument was acknowledged before me by ____________________ and _________________ , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________ , 20__. Notary Public, State of Texas]4 ______________ 4 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County. Annual Installment Schedule to Notice of Obligation to Pay Improvement District Assessment Annual Installment Due 1/31 Principal Interest[a]Additional Interest Annual Collection Costs Total Annual Installment Due[b] 2027 1,069.44$ 5,405.57$ 450.46$ 108.27$ 7,033.75$ 2028 1,135.78$ 5,341.41$ 445.12$ 110.44$ 7,032.74$ 2029 1,207.43$ 5,273.26$ 439.44$ 112.64$ 7,032.77$ 2030 1,284.39$ 5,200.81$ 433.40$ 114.90$ 7,033.50$ 2031 1,364.00$ 5,123.75$ 426.98$ 117.20$ 7,031.92$ 2032 1,451.57$ 5,041.91$ 420.16$ 119.54$ 7,033.18$ 2033 1,544.45$ 4,954.82$ 412.90$ 121.93$ 7,034.10$ 2034 1,639.98$ 4,862.15$ 405.18$ 124.37$ 7,031.68$ 2035 1,746.13$ 4,763.75$ 396.98$ 126.86$ 7,033.72$ 2036 1,854.93$ 4,658.98$ 388.25$ 129.39$ 7,031.56$ 2037 1,974.35$ 4,547.69$ 378.97$ 131.98$ 7,032.99$ 2038 2,099.07$ 4,429.23$ 369.10$ 134.62$ 7,032.02$ 2039 2,234.41$ 4,303.28$ 358.61$ 137.31$ 7,033.61$ 2040 2,375.06$ 4,169.22$ 347.43$ 140.06$ 7,031.77$ 2041 2,528.97$ 4,026.71$ 335.56$ 142.86$ 7,034.10$ 2042 2,688.19$ 3,874.98$ 322.91$ 145.72$ 7,031.80$ 2043 2,860.68$ 3,713.68$ 309.47$ 148.63$ 7,032.47$ 2044 3,043.79$ 3,542.04$ 295.17$ 151.61$ 7,032.61$ 2045 3,240.16$ 3,359.42$ 279.95$ 154.64$ 7,034.16$ 2046 3,447.15$ 3,165.01$ 263.75$ 157.73$ 7,033.63$ 2047 3,667.40$ 2,958.18$ 246.51$ 160.89$ 7,032.98$ 2048 3,903.58$ 2,738.13$ 228.18$ 164.10$ 7,034.00$ 2049 4,153.03$ 2,503.92$ 208.66$ 167.38$ 7,032.99$ 2050 4,418.40$ 2,254.74$ 187.89$ 170.73$ 7,031.76$ 2051 4,702.34$ 1,989.63$ 165.80$ 174.15$ 7,031.93$ 2052 5,004.87$ 1,707.49$ 142.29$ 177.63$ 7,032.28$ 2053 5,325.96$ 1,407.20$ 117.27$ 181.18$ 7,031.61$ 2054 5,670.94$ 1,087.64$ 90.64$ 184.81$ 7,034.03$ 2055 6,034.50$ 747.39$ 62.28$ 188.50$ 7,032.67$ 2056 6,421.94$ 385.32$ 32.11$ 192.27$ 7,031.63$ Total 90,092.88$ 107,537.30$ 8,961.44$ 4,392.33$ 210,983.95$ Footnotes: [a] Interest is calculated at a 6.00% rate for illustrative purposes and is subject to change upon PID Bond issuance. [b] The figures shown above are estimates only and subject to change in Annual Service Plan Updates. Changes in Annual Collection Costs, reserve fund requirements, interest earnings, or other available offsets could increase or decrease the amounts shown. ANNUAL INSTALLMENTS - IMPROVEMENT AREA #1 LOT TYPE 3 SHERLEY FARMS PUBLIC IMPROVEMENT DISTRICT - IMPROVEMENT AREA #1 LOT TYPE 4 BUYER DISCLOSURE NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.005), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice, signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This notice requirement does not apply to a transfer: 1) under a court order or foreclosure sale; 2) by a trustee in bankruptcy; 3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; 6) from one co-owner to another co-owner of an undivided interest in the real property; 7) to a spouse or a person in the lineal line of consanguinity of the seller; 8) to or from a governmental entity; or 9) of only a mineral interest, leasehold interest, or security interest The following notice shall be given to a prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchaser, subject to certain exceptions, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchaser and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. AFTER RECORDING1 RETURN TO: ____________________ ____________________ ____________________ ____________________ ____________________ NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF ANNA, TEXAS CONCERNING THE FOLLOWING PROPERTY __________________________________________ STREET ADDRESS IMPROVEMENT AREA #1 LOT TYPE 4 PRINCIPAL ASSESSMENT: $105,108.36 As the purchaser of the real property described above, you are obligated to pay assessments to City of Anna, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Sherley Farms Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of Anna. The exact amount of each annual installment will be approved each year by the Anna City Council in the annual service plan update for the District. More information about the assessments, including the amounts and due dates, may be obtained from City of Anna. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. _________________ 1 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County when updating for the Current Information of Obligation to Pay Improvement District Assessment. Signature Page to Initial Notice of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. ______________ 2 To be included in copy of the notice required by Section 5.014, Tex. Prop. Code, to be executed by seller in accordance with Section 5.014(a-1), Tex. Prop. Code. Purchaser Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. STATE OF TEXAS § § COUNTY OF _______ § The foregoing instrument was acknowledged before me by ____________________ and _________________ , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________ , 20__. Notary Public, State of Texas]3 ______________ 3 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County. Seller Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. STATE OF TEXAS § § COUNTY OF ________ § The foregoing instrument was acknowledged before me by ____________________ and _________________ , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________ , 20__. Notary Public, State of Texas]4 ______________ 4 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Collin County. Annual Installment Schedule to Notice of Obligation to Pay Improvement District Assessment Annual Installment Due 1/31 Principal Interest[a]Additional Interest Annual Collection Costs Total Annual Installment Due[b] 2027 1,247.68$ 6,306.50$ 525.54$ 126.32$ 8,206.04$ 2028 1,325.08$ 6,231.64$ 519.30$ 128.84$ 8,204.86$ 2029 1,408.67$ 6,152.14$ 512.68$ 131.42$ 8,204.90$ 2030 1,498.45$ 6,067.62$ 505.63$ 134.05$ 8,205.75$ 2031 1,591.33$ 5,977.71$ 498.14$ 136.73$ 8,203.91$ 2032 1,693.50$ 5,882.23$ 490.19$ 139.46$ 8,205.37$ 2033 1,801.86$ 5,780.62$ 481.72$ 142.25$ 8,206.45$ 2034 1,913.31$ 5,672.51$ 472.71$ 145.10$ 8,203.63$ 2035 2,037.15$ 5,557.71$ 463.14$ 148.00$ 8,206.00$ 2036 2,164.09$ 5,435.48$ 452.96$ 150.96$ 8,203.48$ 2037 2,303.41$ 5,305.63$ 442.14$ 153.98$ 8,205.15$ 2038 2,448.92$ 5,167.43$ 430.62$ 157.06$ 8,204.02$ 2039 2,606.81$ 5,020.50$ 418.37$ 160.20$ 8,205.88$ 2040 2,770.90$ 4,864.09$ 405.34$ 163.40$ 8,203.73$ 2041 2,950.46$ 4,697.83$ 391.49$ 166.67$ 8,206.46$ 2042 3,136.22$ 4,520.80$ 376.73$ 170.00$ 8,203.76$ 2043 3,337.46$ 4,332.63$ 361.05$ 173.41$ 8,204.55$ 2044 3,551.08$ 4,132.38$ 344.37$ 176.87$ 8,204.71$ 2045 3,780.19$ 3,919.32$ 326.61$ 180.41$ 8,206.52$ 2046 4,021.67$ 3,692.51$ 307.71$ 184.02$ 8,205.91$ 2047 4,278.64$ 3,451.21$ 287.60$ 187.70$ 8,205.15$ 2048 4,554.18$ 3,194.49$ 266.21$ 191.45$ 8,206.33$ 2049 4,845.20$ 2,921.24$ 243.44$ 195.28$ 8,205.16$ 2050 5,154.80$ 2,630.53$ 219.21$ 199.19$ 8,203.72$ 2051 5,486.07$ 2,321.24$ 193.44$ 203.17$ 8,203.91$ 2052 5,839.01$ 1,992.07$ 166.01$ 207.24$ 8,204.33$ 2053 6,213.62$ 1,641.73$ 136.81$ 211.38$ 8,203.54$ 2054 6,616.10$ 1,268.92$ 105.74$ 215.61$ 8,206.37$ 2055 7,040.25$ 871.95$ 72.66$ 219.92$ 8,204.78$ 2056 7,492.26$ 449.54$ 37.46$ 224.32$ 8,203.57$ Total 105,108.36$ 125,460.19$ 10,455.02$ 5,124.38$ 246,147.94$ Footnotes: [a] Interest is calculated at a 6.00% rate for illustrative purposes and is subject to change upon PID Bond issuance. [b] The figures shown above are estimates only and subject to change in Annual Service Plan Updates. Changes in Annual Collection Costs, reserve fund requirements, interest earnings, or other available offsets could increase or decrease the amounts shown. ANNUAL INSTALLMENTS - IMPROVEMENT AREA #1 LOT TYPE 4 EXHIBIT B CITY OF ANNA, TEXAS NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN THAT a public hearing will be conducted by the City Council of Anna, Texas on February 24, 2026 at 6:00 p.m.at the City of Anna Municipal Complex, City Council Chambers, 120 W. 7th Street, Anna, Texas 75409. The public hearing will be held to consider proposed assessments to be levied against the assessable property within Sherley Farms Public Improvement District (the “District”) pursuant to the provisions of Chapter 372 of the Texas Local Government Code, as amended (the “Act”). The general nature of the proposed public improvements (collectively, the "Authorized Improvements") may include: (i) street and roadway improvements, including related sidewalks, drainage, utility relocation, signalization, landscaping, lighting, signage, off-street parking and right-of-way; (ii) establishment or improvement of parks and open space, together with the design, construction of any ancillary structures, features or amenities such as trails, playgrounds, walkways, lighting and any similar items located therein; (iii) sidewalks and landscaping, including entry monuments and features, fountains, lighting and signage; (iv) acquisition, construction, and improvement of water, wastewater and drainage improvements and facilities and facilities related thereto; (v) acquisition of real property, interests in real property, or contract rights in connection with the Authorized Improvements (as defined below); (vi) payment of costs, including, without limitation, design, engineering, permitting, legal, required payment, performance and maintenance bonds, bidding, support, construction, construction management, administrative and inspection costs, associated with developing and financing the public improvements listed in (i) through (v) above; (vii) projects similar to those listed in subsections (i) - (v) above or authorized by the Act, including similar off-site projects that provide a benefit to the property within the District; (viii) any additional improvement projects authorized in the Act; (ix) payment of costs associated with special supplemental services for improvement and promotion of the District as approved by the City including services related to advertising, promotion, health and sanitation, water and wastewater, public safety, security, business recruitment, development, recreation, and cultural enhancement; and (x) payment of costs associated with developing and financing the public improvements listed in (i) - (ix) above, as well as the interest, costs of issuance, reserve funds, or credit enhancement of bonds issued for the purposes described in (i) through (ix) above, and costs of establishing, administering and operating the District (collectively, the “Authorized Improvements”); and (b) the payment of expenses incurred in the establishment, administration, and operation of the District, including maintenance costs, costs of issuance, funding debt service and capitalized interest reserves and credit enhancement fees of any bonds issued by or on behalf of the District, if necessary. These Authorized Improvements shall promote the interests of the City and confer a special benefit upon the property in the District. The total costs of the Improvement Area #1 Projects, including the costs of creating the District and issuing the bonds, is approximately $33,950,000. The boundaries of the District include approximately 1,123.592 acres of land located within the city limits of the City and as more particularly described by a metes and bounds description available for public inspection at the office of the City Secretary, 120 W. 7th Street, Anna, Texas 75409. All written or oral objections on the proposed assessment within the District will be considered at the public hearing. A copy of the Improvement Area #1 Assessment Roll (the "Assessment Roll"), which Assessment Roll includes the assessments to be levied against each parcel of assessable property in Improvement Area #1 of the District for the Authorized Improvements within Improvement Area #1, is available for public inspection at the office of the City Secretary, 120 W.7th Street, Anna, Texas 75409.