HomeMy WebLinkAbout08-25-2026 Executive Session & Regular Meeting Packet
AGENDA
City Council Executive Session
Tuesday, August 25, 2026 @ 5:30 PM
Anna Municipal Complex - Council Chambers
120 W. 7th Street, Anna, Texas 75409
The City Council of the City of Anna will meet in an Executive Session on Tuesday, August 25,
2026, at 5:30 PM, in the Anna Municipal Complex – Council Chambers, located at 120 W. 7th
Street, to consider the following items.
1. Call to Order, Roll Call, and Establishment of Quorum.
2. Executive Session (Exceptions).
Under Tex. Gov't Code Chapter 551, the City Council may enter into Executive Session to
discuss any items listed or referenced on this Agenda under the following exceptions:
a. Consult with legal counsel regarding pending or contemplated litigation and/or
on matters in which the duty of the attorney to the governmental body under the
Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas
clearly conflicts with Chapter 551 of the Government Code (Tex. Gov’t Code
§551.071).
b. Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov’t Code §551.072).
c. Discuss or deliberate Economic Development Negotiations: (1) To discuss or
deliberate regarding commercial or financial information that the City has
received from a business prospect that the City seeks to have locate, stay, or
expand in or near the territory of the City of Anna and with which the City is
conducting economic development negotiations; or (2) To deliberate the offer of
a financial or other incentive to a business prospect described by subdivision
(1). (Tex. Gov’t Code §551.087).
d. Discuss or deliberate personnel matters (Tex. Gov’t Code §551.074). City
Secretary
The Council further reserves the right to enter into Closed Session at any time
throughout any duly noticed meeting under any applicable exception to the Open
Meetings Act.
3. Consider/Discuss/Action on any items listed on any agenda - executive session, regular
meeting, or closed session - that is duly posted by the City of Anna for any City Council
meeting occurring on the same date as the meeting noticed in this agenda.
4. Adjourn.
This is to certify that I, Carrie L. Land, City Secretary, posted this Agenda on the City’s Website
(www.annatexas.gov) and at the Anna Municipal Complex bulletin board at or before 5:00 p.m.
on 08/19/2026.
Carrie L. Land, City Secretary
1. The Council may vote and/or act upon each of the items listed on this Agenda.
2. The Council reserves the right to retire into executive session concerning any of the items listed on this Agenda,
whenever it is considered necessary and legally justified under the Open Meetings Act.
3. In accordance with the Americans with Disabilities Act, it is the policy of the City of Anna to offer its public programs,
services, and meetings in a manner that is readily accessible to everyone, including individuals with disabilities. If you
are a person with a disability and require information or materials in an appropriate alternative format, or if you
require any other accommodation, please contact the ADA Coordinator at least 48 working hours in advance of the
event by emailing adacompliance@annatexas.gov. Advance notification within this guideline will enable the City to
make reasonable arrangements to ensure accessibility.
AGENDA
City Council Meeting
Tuesday, August 25, 2026 @ 6:00 PM
Anna Municipal Complex - Council Chambers
120 W. 7th Street, Anna, Texas 75409
The City Council of the City of Anna will meet on Tuesday, August 25, 2026, at 6:00 PM, in the
Anna Municipal Complex – Council Chambers, located at 120 W. 7th Street, to consider the
following items.
Welcome to the City Council meeting. If you wish to speak on an Open Session agenda item, please
fill out the Opinion/Speaker Registration Form and turn it in to the City Secretary before the meeting
starts.
1. Call to Order, Roll Call, and Establishment of Quorum.
2. Invocation and Pledge of Allegiance.
American Pledge: I pledge allegiance to the flag of the United States of America, and to
the Republic for which it stands, one nation under God, indivisible, with liberty and justice for
all.
Texas Pledge: Honor the Texas flag; I pledge allegiance to thee, Texas, one state under
God, one and indivisible.
3. Neighbor Comments.
At this time, any person may address the City Council regarding an item on this meeting
Agenda that is not scheduled for public hearing. Also, at this time, any person may address
the City Council regarding an item that is not on this meeting Agenda. Each person will be
allowed up to three (3) minutes to speak. No discussion or action may be taken at this
meeting on items not listed on this Agenda, other than to make statements of specific
information in response to a citizen's inquiry or to recite existing policy in response to the
inquiry.
4. Presentations.
Receive reports from Staff or the City Council about items of community interest.
Items of community interest include: expression of thanks, congratulations, or condolence;
information regarding holiday schedules; an honorary or salutary recognition of a public
official, public employee, or other citizen (but not including a change in status of a person's
public office or public employment); a reminder about an upcoming event organized or
sponsored by the governing body; information regarding a social, ceremonial, or community
event organized or sponsored by an entity other than the governing body that was attended
or is scheduled to be attended by a member of the governing body or an official or
employee of the municipality; and announcements involving an imminent threat to the public
health and safety of people in the municipality that has arisen after the posting of the
Agenda.
a. Present a Meritorious Conduct Award to Sergeant Amanda Weatherford.
(Police Chief Eoff)
b. Introduction of the new Librarians and Library Services Manager and update on
revised library hours starting October 1. (Director of Community Development
Jeff Freeth)
5. Work Session.
a. Discuss the City's use of Flock Safety technology, including the types of
cameras currently deployed, their capabilities, data retention practices, and how
they support public safety operations. (Police Chief Eoff)
6. Consent Items.
These items consist of non-controversial or "housekeeping" items required by law.
Items may be considered individually by any Council Member making such request prior to
a motion and vote on the Consent Items.
a. Approve the City Council Meeting Minutes for August 11, 2026. (City Secretary
Carrie Land)
b. Review the Joint Community Development Corporation and Economic
Development Corporation Board Meeting Minutes for July 2, 2026. (Director of
Economic Development Natasha Roach)
c. Review Monthly Financial Report for the Month Ending July 31, 2026. (Director
of Finance Terri Doby)
d. Approve the Quarterly Investment Report for the Period Ending June 30, 2026.
(Director of Finance Terri Doby)
e. Approve a Resolution approving a Chapter 380 Development Agreement and
Water Line Improvement Agreement with Next Horizon Development, LLC.
(Director of Public Works Joseph Cotton)
7. Items For Individual Consideration and Public Hearings.
At the time and place of any public hearing held during this meeting, all persons who desire
will have an opportunity to be heard in opposition to or in favor of the ordinance, application,
or other proposed item.
a. Consider/Discuss/Action on the Official Ballot for the Texas Municipal League
Intergovernmental Risk Pool Board of Trustees Election. (City Secretary Carrie
Land)
b. Conduct a Public Hearing/Consider/Discuss/Action on an Ordinance, approving
a negotiated settlement between the Atmos Cities Steering Committee
(“ACSC”) and Atmos Energy Corp., Mid-tex Division regarding the company’s
2026 rate review mechanism filing; declaring existing rates to be unreasonable;
adopting tariffs that reflect rate adjustments consistent with the negotiated
settlement; finding the rates to be set by the attached settlement tariffs to be
just and reasonable and in the public interest; approving an attachment
establishing a benchmark for pensions and retiree medical benefits; requiring
the company to reimburse ACSC’s reasonable ratemaking expenses;
determining that this ordinance was passed in accordance with the
requirements of the Texas Open Meetings Act; adopting a savings clause;
declaring an effective date; and requiring delivery of this ordinance to the
company and the ACSC’s legal counsel. (City Attorney Clark McCoy)
c. Consider/Discuss/Action on a Resolution, concurring with the finding that
conditions in the City warrant the declaration of Stage 1 of the 2026 Water
Resource and Emergency Management Plan, and directing staff to take
appropriate action. (Director of Public Works Joseph Cotton)
8. Future Agenda Items.
Requests from the City Council for items to be placed on upcoming agendas by a vote of
three or more.
9. Closed Session (Exceptions).
Under Tex. Gov't Code Chapter 551, the City Council may enter into Closed Session to
discuss any items listed or referenced on this Agenda under the following exceptions:
a. Consult with legal counsel regarding pending or contemplated litigation and/or
on matters in which the duty of the attorney to the governmental body under the
Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas
clearly conflicts with Chapter 551 of the Government Code (Tex. Gov’t Code
§551.071).
b. Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov’t Code §551.072).
c. Discuss or deliberate Economic Development Negotiations: (1) To discuss or
deliberate regarding commercial or financial information that the City has
received from a business prospect that the City seeks to have locate, stay, or
expand in or near the territory of the City of Anna and with which the City is
conducting economic development negotiations; or (2) To deliberate the offer of
a financial or other incentive to a business prospect described by subdivision
(1). (Tex. Gov’t Code §551.087).
d. Discuss or deliberate personnel matters (Tex. Gov’t Code §551.074). City
Secretary
The Council further reserves the right to enter into Closed Session at any time
throughout any duly noticed meeting under any applicable exception to the Open
Meetings Act.
10. Consider/Discuss/Action on any items listed on any agenda - executive session, regular
meeting, or closed session - that is duly posted by the City of Anna for any City Council
meeting occurring on the same date as the meeting noticed in this agenda.
11. Adjourn.
This is to certify that I, Carrie L Land, City Secretary, posted this Agenda on the City’s website
(www.annatexas.gov) and at the Anna Municipal Complex bulletin board at or before 5:00 p.m.
on 08/19/2026.
Carrie L. Land, City Secretary
1. The Council may vote and/or act upon each of the items listed in this Agenda. Notwithstanding the foregoing
or any other statement in this Agenda, the Council shall not take action on any item until after providing an
opportunity for public testimony under the "Neighbor Comments" item or after any public hearing held under
applicable law.
2. The Council reserves the right to retire into closed executive session concerning any of the items listed on
this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act.
3. In accordance with the Americans with Disabilities Act, it is the policy of the City of Anna to offer its public
programs, services, and meetings in a manner that is readily accessible to everyone, including individuals
with disabilities. If you are a person with a disability and require information or materials in an appropriate
alternative format, or if you require any other accommodation, please contact the ADA Coordinator at least
48 working hours in advance of the event by emailing adacompliance@annatexas.gov. Advance notification
within this guideline will enable the City to make reasonable arrangements to ensure accessibility.
Item No. 4.a.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Terry Eoff
AGENDA ITEM:
Present a Meritorious Conduct Award to Sergeant Amanda Weatherford. (Police Chief
Eoff)
SUMMARY:
Recognition of outstanding performance, decisive leadership and personal courage
during an incident on December 9, 2025.
FINANCIAL IMPACT:
This item has no financial impact.
BACKGROUND:
On the evening of December 9, 2025, Sgt. Weatherford and A-Night shift responded to
a reported aggravated assault in progress. A male suspect had entered the home,
pistol-whipped a male victim, and threatened to kill a female victim while holding a
firearm to her head. Sgt. Weatherford and her officers entered the residence, safely
rescued the victim, and arrested the suspect.
STRATEGIC CONNECTIONS:
This item supports the City of Anna Strategic Plan, specifically advancing the strategic
outcome area: Safe.
Anna is a community where neighbors feel safe due to the City's commitment to:
• Staffing public safety operations to meet the needs of a growing community
• Preparing for emergencies and ensuring excellent response times
ATTACHMENTS:
Item No. 4.b.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Jeff Freeth
AGENDA ITEM:
Introduction of the new Librarians and Library Services Manager and update on revised
library hours starting October 1. (Director of Community Development Jeff Freeth)
SUMMARY:
The City Council will be introduced to the Anna Community Library's newly hired Librarians and
Library Services Manager. These positions strengthen the library's ability to deliver high-quality
programs, customer service, collections management, and community engagement.
Council will also receive an update on revised library operating hours that will take effect on October
1, 2026. The adjusted schedule is designed to improve service accessibility, better align staffing
resources with community needs, and enhance the overall customer experience. The new hours
support operational efficiency while maintaining the library's commitment to providing convenient
access to programs, materials, technology, and other library services.
FINANCIAL IMPACT:
As the additional Library staff are encompassed within the current allocated Community
Services general fund budget, the additional hours do not have direct costs associated
with the change.
BACKGROUND:
Staff Introductions
Dr. Rose Lerma, the City’s new Library Services Manager, begins her 17th year in library service. Dr.
Lerma holds a doctorate in Executive Strategic Leadership and earned her Master of Library Science
degree from the University of North Texas through an American Library Association (ALA) accredited
program. She also holds degrees in anthropology and education. In addition to her professional
experience, she currently serves on two state library boards, participates on the Scholarships and
Grants Committee for the Texas Library Association, and is Chair-Elect for the Texas Council of
Academic Libraries. As a mother of six children and an adult son with special needs, Dr. Lerma is a
strong advocate for ensuring library services and resources are inclusive and accessible to residents
of all abilities.
Lauren Cannon, MLS, joins the library with more than ten years of experience serving in public,
academic, and special collections libraries. She earned her undergraduate degree from Southern
Methodist University and her Master of Library Science degree from the University of North Texas.
Ms. Cannon is an ALA-accredited librarian and has completed specialized coursework in cataloging
through the University of Wisconsin-Madison. Her professional achievements include presenting on
library programming at the Texas Library Association Conference and leading innovative projects
such as implementing a new SharePoint system and a Makerspace at Sherman Public Library. She is
also certified in Mental Health First Aid and is dedicated to creating welcoming, positive experiences
for all library patrons.
Michelle Mitchell, M.Ed., Ed.C., M.L.I.S., brings more than 40 years of experience inspiring
creativity, learning, and community engagement. A licensed and certified educator for 26 years, she
holds master's degrees in both Education and Library Information Science. Her professional
background includes ten years of experience providing curriculum development, literacy
programming, instruction, and support for diverse populations, along with certification in Music
Together, an early literacy program that promotes learning through music and movement. As an
ALA-certified librarian, Ms. Mitchell has additional expertise in professional storytelling, archives, and
preservation. Her passion for performance, creativity, and public engagement makes her a valuable
addition to the library team and its programming efforts.
Library Hours
In addition to introducing these new team members, Council will receive an update regarding revised
library operating hours scheduled to take effect on October 1, 2026. The library hours will be as
follows:
Monday: Open Hours: 8:00 a.m. - 8:00 p.m. (Staffed Service Hours: 10:00 a.m. - 8:00 p.m.)
Tuesday: Open Hours: 8:00 a.m. - 8:00 p.m. (Staffed Service Hours: 10:00 a.m. - 8:00 p.m.)
Wednesday: Open Hours: 8:00 a.m. - 8:00 p.m. (Staffed Service Hours: 10:00 a.m. - 8:00 p.m.)
Thursday: Open Hours: 8:00 a.m. - 8:00 p.m. (Staffed Service Hours: 10:00 a.m. - 8:00 p.m.)
Friday: Open Hours: 8:00 a.m. - 6:00 p.m. (Staffed Service Hours: 10:00 a.m. - 6:00 p.m.)
Saturday: Open Hours: 10:00 a.m. - 6:00 p.m. (Staffed Service Hours: 10:00 a.m. - 6:00 p.m.)
Sunday: Closed
Makerspace Hours
In addition, Council will receive an update regarding revised Makerspace/studio hours scheduled to
take effect on October 1, 2026. The Makerspace/Studio hours will be as follows:
• Monday: 10:00 a.m. - 7:00 p.m.
• Tuesday: 10:00 a.m. - 7:00 p.m.
• Wednesday: 10:00 a.m. - 7:00 p.m.
• Thursday: 10:00 a.m. - 7:00 p.m.
• Friday: 10:00 a.m. - 5:00 p.m.
• Saturday: 10:00 a.m. - 5:00 p.m.
• Sunday: Closed
STRATEGIC CONNECTIONS:
Active: Promotes parks, recreation, wellness opportunities, community events, and quality-of-life
amenities.
ATTACHMENTS:
Item No. 5.a.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Terry Eoff
AGENDA ITEM:
Discuss the City's use of Flock Safety technology, including the types of cameras
currently deployed, their capabilities, data retention practices, and how they support
public safety operations. (Police Chief Eoff)
SUMMARY:
This report provides an overview of the City's use of Flock Safety technology, including
the types of cameras currently deployed, their capabilities, data retention practices, and
their role in supporting public safety operations. The City utilizes Flock automated
license plate reader (ALPR) cameras at strategic locations to capture objective vehicle
information, including license plate numbers, vehicle make, model, color, and other
identifying characteristics. This technology helps officers locate stolen vehicles, identify
vehicles associated with criminal activity, and generate investigative leads during
criminal investigations.
The report will also address the City's use of Flock video surveillance cameras,
including eight cameras installed at various locations throughout City parks. Unlike the
ALPR cameras, these surveillance cameras do not utilize artificial intelligence (AI)
analytics or vehicle identification capabilities. Instead, they provide recorded video
footage that can assist with investigating criminal activity, vandalism, property damage,
and other incidents occurring within park facilities. Additionally, the report will discuss
the retention of data collected by these systems, the safeguards in place to ensure
appropriate access and use, and how the technology supports the City's commitment to
public safety, crime prevention, and the protection of City assets and residents.
FINANCIAL IMPACT:
$53,500
BACKGROUND:
Residents have questions about privacy, data retention, and the capabilities of Flock
Safety technology. This report will provide an overview of how the City uses the system,
explain its limitations, and clarify that the technology is used for legitimate public safety
purposes to assist with crime prevention and investigations while maintaining
appropriate safeguards and restricted access to data.
STRATEGIC CONNECTIONS:
SafeThis item supports the City of Anna Strategic Plan, specifically advancing the
strategic outcome area: Safe.
Anna is a community where neighbors feel safe due to the City's commitment to:
• Staffing public safety operations to meet the needs of a growing community
• Preparing for emergencies and ensuring excellent response times
ATTACHMENTS:
Item No. 6.a.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Carrie Land
AGENDA ITEM:
Approve the City Council Meeting Minutes for August 11, 2026. (City Secretary Carrie
Land)
SUMMARY:
Staff recommends approval of the Executive Meeting and Regular Meeting minutes for
the August 11th City Council meeting.
FINANCIAL IMPACT:
This item has no financial impact.
BACKGROUND:
In accordance with the provisions of Charter Section 3.12, action minutes of City
Council meetings will be kept. Action minutes include final motions with votes; they are
not required to include discussion points or summaries. The minutes will also reflect the
names of public speakers.
STRATEGIC CONNECTIONS:
This item supports the City of Anna Strategic Plan, specifically advancing the strategic
outcome area: Excellent.
Anna is a high-performing City that implements best practices and pursues
accreditation, demonstrating its commitment to:
• Ethical and collaborative decision-making
• Continuous improvement and achieving measurable outcomes
• Ensuring a positive work environment for Council, staff, and neighbors
ATTACHMENTS:
1. 08-11-2026 Executive Session Minutes
2. 08-11-2026 Regular Meeting Minutes
City Council Executive Session
Meeting Minutes
Tuesday, August 11, 2026 @ 5:30 PM
Anna Municipal Complex - Council Chambers
120 W. 7th Street, Anna, Texas 75409
The City Council of the City of Anna met in an Executive Session on Tuesday, August 11, 2026,
at 5:30 PM, in the Anna Municipal Complex – Council Chambers, located at 120 W. 7th Street, to
consider the following items.
1. Call to Order, Roll Call, and Establishment of Quorum.
Mayor Cain called the meeting to order at 5:30 PM.
Members Present:
Mayor Pete Cain
Mayor Pro Tem Elden Baker
Deputy Mayor Pro Tem Jessica Walden
Council Member Kevin Toten
Council Member Nathan Bryan
Council Member Kelly Herndon
Council Member Manny Singh
Members Absent:
None
2. Executive Session (Exceptions).
a. Consult with legal counsel regarding pending or contemplated litigation and/or
on matters in which the duty of the attorney to the governmental body under the
Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas
clearly conflicts with Chapter 551 of the Government Code (Tex. Gov’t Code
§551.071). Development, administrative, and financial matters; meeting
procedures.
b. Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov’t Code §551.072).
c. Discuss or deliberate Economic Development Negotiations: (1) To discuss or
deliberate regarding commercial or financial information that the City has
received from a business prospect that the City seeks to have locate, stay, or
expand in or near the territory of the City of Anna and with which the City is
conducting economic development negotiations; or (2) To deliberate the offer of
a financial or other incentive to a business prospect described by subdivision (1).
(Tex. Gov’t Code §551.087).
d. Discuss or deliberate personnel matters (Tex. Gov’t Code §551.074). City
Secretary, City Council.
MOTION: Council Member Herndon moved to enter into Executive Session.
Mayor Pro Tem Baker seconded. Motion carried 4 - 0.
Mayor Cain recessed the meeting at 5:31 PM.
Mayor Cain reconvened the meeting at 6:04 PM.
3. Consider/Discuss/Action on any items listed on any agenda - executive session, regular
meeting, or closed session - that is duly posted by the City of Anna for any City Council
meeting occurring on the same date as the meeting noticed in this agenda.
No action was taken.
4. Adjourn.
Mayor Cain adjourned the meeting at 6:04 PM.
APPROVED this 25th day of August 2026.
____________________________________
Mayor Pete Cain
ATTEST:
_______________________________
City Secretary Carrie L. Land
Regular City Council Meeting
TIRZ Board Number Seven
Minutes
Tuesday, August 11, 2026 @ 6:00 PM
Anna Municipal Complex - Council Chambers
120 W. 7th Street, Anna, Texas 75409
The City Council of the City of Anna met on Tuesday, August 11, 2026, at 6:00 PM, in the Anna
Municipal Complex – Council Chambers, located at 120 W. 7th Street, to consider the following
items.
1. Call to Order, Roll Call, and Establishment of Quorum.
Mayor Cain called the meeting to order at 6:07 PM.
Members Present:
Mayor Pete Cain
Mayor Pro Tem Elden Baker
Deputy Mayor Pro Tem Jessica Walden
Council Member Kevin Toten
Council Member Nathan Bryan
Council Member Kelly Herndon
Council Member Manny Singh
Members Absent:
None
2. Invocation and Pledge of Allegiance.
Mayor Cain led the Invocation and Pledge of Allegiance.
3. Neighbor Comments.
Chris Brooke spoke about the location of the Flock Cameras at Slayter Creek
Park.
4. Presentations.
a. Recognition of the Public Works Department for receiving the National
Association of Clean Water Agencies (NACWA) 2025 Gold Peak Performance
Award for the John Geren (Slayter Creek) Wastewater Treatment Plant.
Mayor Cain recognized the Wastewater team for earning the National
Association of Clean Water Agencies' 2025 Gold Peak Performance Award for
the John Geren (Slayter Creek) Wastewater Treatment Plant.
5. Work Session.
a. Presentation of the Proposed FY2026-2027 Budget. (City Manager Ronda
Perez)
Finance Director Terri Doby provided a brief presentation on the proposed
FY2026-2027 Budget.
6. Consent Items.
MOTION: Council Member Herndon moved to approve Consent Items 6a - 6c.
Council Member Toten seconded. Motion carried 7 - 0.
a. Approve City Council Meeting Minutes for June 23, 2026. (City Secretary Carrie
Land)
b. Approve City Council Meeting Minutes for July 28, 2026. (City Secretary Carrie
Land)
c. Approve a Resolution updating the City Secretary job description.
A RESOLUTION OF THE CITY OF ANNA, TEXAS, APPROVING THE JOB
DESCRIPTION FOR THE CITY SECRETARY.
7. Items For Individual Consideration and Public Hearings.
a. Consider/Discuss/Action on a Resolution naming the date and place of a public
hearing on the FY2026-2027 Budget. (Director of Finance Terri Doby)
Section 7.02 of the City Charter states that on or before the 15th day of August
of the fiscal year, the City Manager must submit to the City Council a budget for
the ensuing fiscal year; and at the Council meeting when the budget is submitted,
the City Council must name the date and place of the public hearing on the
budget.
The public hearing for the FY2026-2027 Budget will be held on September 1,
2026, at 6:00 PM in the City of Anna Municipal Complex, 120 W. 7th St., Anna,
TX 75409.
MOTION: Council Member Singh moved to approve. Council Member Herndon
seconded. Motion carried 7 - 0.
A RESOLUTION OF THE CITY OF ANNA, TEXAS NAMING THE DATE AND
PLACE OF A PUBLIC HEARING ON THE FY2026-2027 BUDGET.
b. Consider/Discuss/Action on a Resolution to propose a property tax rate of
0.548282 per $100 of property valuation for the City that the Council may adopt
for the 2026 tax year and setting a date and time for a public hearing on the tax
rate. (Director of Finance Terri Doby)
Texas Property Tax Code 26.04 requires that by August 7th or as soon thereafter
as practicable, the designated officer shall submit the tax rates to the governing
body. Texas Property Tax Code 26.05 requires that the governing body of a
taxing unit may not adopt a tax rate that exceeds the lower of the voter-approval
rate or the no-new-revenue rate until the governing body has held a public
hearing on the proposed tax rate. Texas Property Tax Code 26.06 requires that
the notice of public hearing contain the names of all members of the governing
body, showing how each voted on the proposed tax rate, or if one or more
members were absent, indicating the absences.
The public hearing on the tax rate will be held on September 1, 2026, at 6:00 PM
in the City of Anna Municipal Complex, 120 W. 7th St., Anna, TX 75409.
MOTION: Council Member Singh moved to approve. Deputy Mayor Pro Tem
Walden seconded. Motion carried 6 - 1. Council Member Toten opposed.
A RESOLUTION OF THE CITY OF ANNA, TEXAS, NAMING THE PROPOSED
TAX RATE THE COUNCIL MAY ADOPT FOR THE 2026 TAX YEAR AND
SETTING THE DATES AND TIMES FOR PUBLIC HEARINGS ON THE TAX
RATE.
c. Consider/Discuss/Action on the adoption of an Ordinance authorizing the
issuance and sale of up to $54,000,000 City of Anna, Texas Combination Tax
and Revenue Certificates of Obligation, Series 2026 to fund water and sewer
system improvements; levying an annual ad valorem tax and providing for the
security for and payment of said Certificates of Obligation; approving an official
statement; and enacting other provisions relating to the subject. (Director of
Finance Terri Doby)
The focus of this bond issuance is to help design and fund the expansion of the
Hurricane Creek Wastewater Treatment Plant and upstream wastewater
infrastructure from the 2 Million Gallons Per Day (MGD) rate to a 4 MGD plant.
The bond will also help fund the expansion of the water system for an additional
well at the Collin Pump Station site along the Collin County Outer Loop.
MOTION: Council Member Herndon moved to approve. Mayor Pro Tem Baker
seconded. Motion carried 7 - 0.
ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF UP TO
$54,000,000 CITY OF ANNA, TEXAS COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION, SERIES 2026 TO FUND WATER AND
SEWER SYSTEM IMPROVEMENTS; LEVYING AN ANNUAL AD VALOREM
TAX AND PROVIDING FOR THE SECURITY FOR AND PAYMENT OF SAID
CERTIFICATES OF OBLIGATION; APPROVING AN OFFICIAL STATEMENT;
AND ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT.
d. Consider/Discuss/Action on a Resolution of the City of Anna, Texas, approving
a Chapter 380 Impact Fee Payment Deferral Agreement with GTP Food Group
and a Second Amendment to the Ground Lease Purchase Agreement and
Performance Agreement, and authorizing related actions. (Director of Economic
Development Natasha Roach)
The developer has requested that the City allow payment of the required impact
fees at the time the final Certificate of Occupancy is issued, rather than at the
time of building permit issuance.
The requested deferral would postpone the collection of development impact
fees until project completion and prior to occupancy. This change would provide
the developer with additional flexibility in project financing and cash flow during
construction while ensuring that all required impact fees are paid before the
building is occupied.
MOTION: Council Member Herndon moved to approve. Council Member Singh
seconded. Motion carried 7 - 0.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS,
APPROVING A CHAPTER 380 IMPACT FEE PAYMENT DEFERRAL
AGREEMENT WITH GTP FOOD GROUP, LLC; ESTABLISHING AND
ADMINISTERING AN ECONOMIC DEVELOPMENT PROGRAM UNDER
ARTICLE III, SECTION 52-A OF THE TEXAS CONSTITUTION AND TEXAS
LOCAL GOVERNMENT CODE CHAPTER 380; APPROVING, UNDER TEXAS
LOCAL GOVERNMENT CODE SECTION 501.073, THE ANNA COMMUNITY
DEVELOPMENT CORPORATION’S CONTINUED PROGRAM AND A
SECOND AMENDMENT TO GROUND LEASE PURCHASE AGREEMENT
AND PERFORMANCE AGREEMENT; AUTHORIZING THE MAYOR OR CITY
MANAGER TO EXECUTE THE CHAPTER 380 AGREEMENT; APPROVING
THE CORPORATION’S EXECUTION OF ITS LIMITED ACKNOWLEDGMENT
AND THE SECOND AMENDMENT; MAKING PUBLIC-PURPOSE FINDINGS;
AUTHORIZING RELATED ACTIONS; AND PROVIDING AN EFFECTIVE
DATE.
e. Consider/Discuss/Action on the first reading of a Resolution approving and
authorizing an Anna Community Development Corporation project consisting of
the purchase of approximately 5.115 acres under a Real Estate Sales Contract
and Leaseback Agreement and authorizing closing and related actions. (Director
of Economic Development Natasha Roach)
Two readings of the Resolution are required prior to authorizing a project by the
City and the Anna Community Development Corporation.
This was the first reading of the Resolution.
f. Consider/Discuss/Action on the second reading and adoption of a Resolution
approving and authorizing an Anna Community Development Corporation
project consisting of the purchase of approximately 5.115 acres under a Real
Estate Sales Contract and Leaseback Agreement and authorizing closing and
related actions. (Director of Economic Development Natasha Roach)
Two readings of the Resolution are required prior to authorizing a project by the
City and the Anna Community Development Corporation.
This was the second reading of the Resolution.
The CDC has negotiated a Real Estate Sales Contract and Leaseback
Agreement with William Bentley Powell for the purchase of approximately 5.115
acres at a purchase price of $2,339,498.70. The acquisition supports the City's
long-term planning efforts by securing property in an area anticipated for
continued growth and future public investment.
MOTION: Council Member Singh moved to approve. Council Member Toten
seconded. Motion carried 7 - 0.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS,
APPROVING AND AUTHORIZING AN ANNA COMMUNITY DEVELOPMENT
CORPORATION PROJECT CONSISTING OF THE ACQUISITION OF
APPROXIMATELY 5.115 ACRES UNDER A REAL ESTATE SALES
CONTRACT AND LEASEBACK AGREEMENT; APPROVING AND, TO THE
EXTENT PREVIOUSLY EXECUTED, RATIFYING THE CONTRACT;
APPROVING THE EXPENDITURE OF CORPORATION FUNDS;
AUTHORIZING CLOSING AND RELATED ACTIONS; AND PROVIDING AN
EFFECTIVE DATE.
Mayor Cain called for a 10-minute recess at 7:17 PM.
Council Member Singh requested to go into Closed Session.
MOTION: Mayor Pro Tem Baker moved to enter closed session. Council Member
Singh seconded. Motion carried 6 - 0. Council Member Herndon was not at the
Dais during voting.
Mayor Cain recessed the meeting at 7:18 PM.
Mayor Cain reconvened the meeting at 7:59 PM.
g. Consider/Discuss/Action on an Ordinance calling a Bond Election to be held in
the City of Anna, Texas; making provision for the conduct of the election; and
resolving other matters related to that election. (City Manager Ronda Perez)
The proposed Ordinance calls for a bond election to submit one proposition to
the qualified voters of the City of Anna seeking authorization to issue up to
$60,000,000 in General Obligation Bonds for roadway improvements and related
infrastructure.
MOTION: Deputy Mayor Pro Tem Walden moved to approve. Council Member
Singh seconded. Motion carried 7 - 0.
AN ORDINANCE CALLING A BOND ELECTION TO BE HELD IN THE CITY OF
ANNA, TEXAS; MAKING PROVISION FOR THE CONDUCT OF THE
ELECTION; AND RESOLVING OTHER MATTERS RELATED TO THAT
ELECTION.
h. Consider/Discuss/Action on a Resolution authorizing the execution of Joint
Election Contracts. (City Secretary Carrie Land).
The Collin County Elections Administration conducts the City's elections. City
Council approved calling a Special Election for November 3, 2026, in the
preceding item; therefore, approval of the election services contract with Collin
County is required.
MOTION: Council Member Herndon moved to approve the contract provided that
the dates are corrected to reflect the November 3rd date and are reflected
throughout the contract. Deputy Mayor Pro Tem Walden seconded. Motion
carried 7 - 0.
A RESOLUTION AUTHORIZING EXECUTION OF JOINT ELECTION
CONTRACTS; PROVIDING SAVINGS, SEVERABILITY, AND REPEALING
CLAUSES; AND PROVIDING AN EFFECTIVE DATE.
i. Conduct a public hearing and take testimony on the proposed levy of
assessments on property located within Improvement Area #1 of the Liberty Hills
Public Improvement District No. 1 pursuant to Chapter 372, Texas Local
Government Code. (Director of Public Works Joseph Cotton)
Mayor Cain opened the public hearing at 8:10 PM.
There were no comments.
Mayor Cain closed the public hearing at 8:11 PM.
j. Consider/Discuss/Action on an Ordinance accepting and approving a Service
and Assessment Plan and Assessment Roll for Improvement Area #1 of the
Liberty Hills Public Improvement District No. 1, making a finding of special benefit
to such property; Levying special assessments against property within
Improvement Area #1 of the District and establishing a Lien on such property;
providing for the method of assessment and the payment of the assessments in
accordance with Chapter 372, Texas Local Government Code. (Director of
Public Works Joseph Cotton)
Per the development agreement, this is the next step in the PID formation
process for Liberty Hills PID No. 1.
MOTION: Mayor Pro Tem Baker moved to approve. Council Member Toten
seconded. Motion carried 7 - 0.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS
ACCEPTING AND APPROVING A SERVICE AND ASSESSMENT PLAN AND
ASSESSMENT ROLL FOR IMPROVEMENT AREA #1 OF THE LIBERTY HILLS
PUBLIC IMPROVEMENT DISTRICT NO. 1; MAKING A FINDING OF SPECIAL
BENEFIT TO THE PROPERTY IN THE DISTRICT; LEVYING SPECIAL
ASSESSMENTS AGAINST PROPERTY WITHIN IMPROVEMENT AREA #1 OF
THE DISTRICT AND ESTABLISHING A LIEN ON SUCH PROPERTY;
PROVIDING FOR THE METHOD OF ASSESSMENT AND THE PAYMENT OF
THE ASSESSMENTS IN ACCORDANCE WITH CHAPTER 372, TEXAS LOCAL
GOVERNMENT CODE, AS AMENDED, PROVIDING PENALTIES AND
INTEREST ON DELINQUENT ASSESSMENTS, PROVIDING FOR
SEVERABILITY, AND PROVIDING AN EFFECTIVE DATE.
k. Consider/Discuss/Action on an Ordinance authorizing the issuance of the "City
of Anna, Texas, Special Assessment Revenue Bonds, Series 2026 (Liberty Hills
Public Improvement District No. 1 Improvement Area #1 Project)" in a principal
amount of up to $26,000,000; and approving various documents related to such
Bonds. (Director of Public Works Joseph Cotton)
This action is the final step in the PID bond authorization for sale per the
development agreement.
MOTION: Council Member Herndon moved to approve. Deputy Mayor Pro Tem
Walden seconded. Motion carried 7 - 0.
AN ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF ANNA,
TEXAS, SPECIAL ASSESSMENT REVENUE BONDS, SERIES 2026 (LIBERTY
HILLS PUBLIC IMPROVEMENT DISTRICT NO. 1 IMPROVEMENT AREA #1
PROJECT)” IN A PRINCIPAL AMOUNT NOT TO EXCEED $26,000,000
PAYABLE FROM SPECIAL ASSESSMENTS LEVIED UPON IMPROVEMENT
AREA #1 OF SAID DISTRICT TO FUND PUBLIC IMPROVEMENTS IN SAID
DISTRICT; APPROVING AND AUTHORIZING AN INDENTURE OF TRUST, A
BOND PURCHASE AGREEMENT, A LIMITED OFFERING MEMORANDUM, A
CONTINUING DISCLOSURE AGREEMENT, AND OTHER AGREEMENTS
AND DOCUMENTS IN CONNECTION THEREWITH; MAKING FINDINGS
WITH RESPECT TO THE ISSUANCE OF SUCH BONDS; AND PROVIDING AN
EFFECTIVE DATE.
l. Conduct a Public Hearing and take testimony on the proposed levy of
assessments on property located within Improvement Area #1 of The Landing
Public Improvement District pursuant to Chapter 372, Texas Local Government
Code. (Director of Public Works Joseph Cotton)
Mayor Cain opened the public hearing at 8:17 PM.
There were no comments.
Mayor Cain closed the public hearing at 8:17 PM.
m. Consider/Discuss/Action on an Ordinance accepting and approving a Service
and Assessment Plan and Assessment Roll for Improvement Area #1 of The
Landing Public Improvement District, making a finding of special benefit to such
property; Levying special assessments against property within Improvement
Area #1 of the District and establishing a Lien on such property; providing for the
method of assessment and the payment of the assessments in accordance with
Chapter 372, Texas Local Government Code. (Director of Public Works Joseph
Cotton)
Per the development agreement, this is the next step in the PID formation
process for Improvement Area #1 of The Landing.
MOTION: Mayor Pro Tem Baker moved to approve. Council Member Toten
seconded. Motion carried 7 - 0.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS
ACCEPTING AND APPROVING A SERVICE AND ASSESSMENT PLAN AND
ASSESSMENT ROLL FOR IMPROVEMENT AREA #1 OF THE LANDING
PUBLIC IMPROVEMENT DISTRICT; MAKING A FINDING OF SPECIAL
BENEFIT TO THE PROPERTY IN THE DISTRICT; LEVYING SPECIAL
ASSESSMENTS AGAINST PROPERTY WITHIN IMPROVEMENT AREA #1 OF
THE DISTRICT AND ESTABLISHING A LIEN ON SUCH PROPERTY;
PROVIDING FOR THE METHOD OF ASSESSMENT AND THE PAYMENT OF
THE ASSESSMENTS IN ACCORDANCE WITH CHAPTER 372, TEXAS LOCAL
GOVERNMENT CODE, AS AMENDED, PROVIDING PENALTIES AND
INTEREST ON DELINQUENT ASSESSMENTS, PROVIDING FOR
SEVERABILITY, AND PROVIDING AN EFFECTIVE DATE.
n. Consider/Discuss/Action on an Ordinance authorizing the issuance of the "City
of Anna, Texas, Special Assessment Revenue Bonds, Series 2026 (The Landing
Public Improvement District Improvement Area #1 Project)" in a principal amount
of up to $12,000,000; and approving various documents related to such Bonds.
(Director of Public Works Joseph Cotton)
This approval is the final step in the PID bond authorization for sale per the
development agreement.
MOTION: Council Member Herndon moved to approve. Council Member Bryan
seconded. Motion carried 7 - 0.
AN ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF ANNA,
TEXAS, SPECIAL ASSESSMENT REVENUE BONDS, SERIES 2026 (THE
LANDING PUBLIC IMPROVEMENT DISTRICT IMPROVEMENT AREA #1
PROJECT)” IN A PRINCIPAL AMOUNT NOT TO EXCEED $12,000,000
PAYABLE FROM SPECIAL ASSESSMENTS LEVIED UPON IMPROVEMENT
AREA #1 OF SAID DISTRICT TO FUND PUBLIC IMPROVEMENTS IN SAID
DISTRICT; APPROVING AND AUTHORIZING AN INDENTURE OF TRUST, A
BOND PURCHASE AGREEMENT, A LIMITED OFFERING MEMORANDUM, A
CONTINUING DISCLOSURE AGREEMENT, AND OTHER AGREEMENTS
AND DOCUMENTS IN CONNECTION THEREWITH; MAKING FINDINGS
WITH RESPECT TO THE ISSUANCE OF SUCH BONDS; AND PROVIDING AN
EFFECTIVE DATE.
o. Acting as the Board of Directors for the Tax Increment Reinvestment Zone
Number Seven. Consider/Discuss/Action on a Resolution of the Board of
Directors for Tax Increment Reinvestment Zone Number Seven, City of Anna,
Texas, recommending approval of the Amended and Restated Project and
Finance Plan to the City Council. (Director of Public Works Joseph Cotton)
The City Council, acting as the Board of Directors for Tax Increment
Reinvestment Zone No. 7 (TIRZ), on a Resolution of the Board of Directors for
Tax Increment Reinvestment Zone No. 7, City of Anna, Texas, recommended
approval of the Amended and Restated Project and Finance Plan to the City
Council.
MOTION: Deputy Mayor Pro Tem Walden moved to approve. Council Member
Herndon seconded. Motion carried 7 - 0.
A RESOLUTION OF THE BOARD OF DIRECTORS FOR REINVESTMENT
ZONE NUMBER SEVEN, CITY OF ANNA, TEXAS, RECOMMENDING
APPROVAL OF THE AMENDED AND RESTATED FINAL PROJECT AND
FINANCE PLAN TO THE CITY COUNCIL.
p. Consider/Discuss/Action on an Ordinance of the City Council of the City of Anna,
Texas, approving an Amended and Restated Project and Finance Plan for
Reinvestment Zone Number Seven, City of Anna, Texas; making certain
findings; providing a severability clause; and providing for an immediate effective
date. (Director of Public Works Joseph Cotton)
This agenda item is required as bonds are being authorized for sale in Liberty
Hills PID #1.
MOTION: Council Member Herndon moved to approve. Council Member Bryan
seconded. Motion carried 7 - 0.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS,
APPROVING AN AMENDED AND RESTATED FINAL PROJECT AND
FINANCE PLAN FOR REINVESTMENT ZONE NUMBER SEVEN, CITY OF
ANNA, TEXAS; MAKING CERTAIN FINDINGS; PROVIDING A SEVERABILITY
CLAUSE; AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE.
8. Future Agenda Items.
Flock cameras discussion.
9. Closed Session (Exceptions).
a. Consult with legal counsel regarding pending or contemplated litigation and/or
on matters in which the duty of the attorney to the governmental body under the
Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas
clearly conflicts with Chapter 551 of the Government Code (Tex. Gov’t Code
§551.071). Development, administrative, and financial matters; meeting
procedures.
b. Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov’t Code §551.072).
c. Discuss or deliberate Economic Development Negotiations: (1) To discuss or
deliberate regarding commercial or financial information that the City has
received from a business prospect that the City seeks to have locate, stay, or
expand in or near the territory of the City of Anna and with which the City is
conducting economic development negotiations; or (2) To deliberate the offer of
a financial or other incentive to a business prospect described by subdivision (1).
(Tex. Gov’t Code §551.087).
d. Discuss or deliberate personnel matters (Tex. Gov’t Code §551.074). City
Secretary, City Council.
MOTION: Council Member Bryan moved to enter closed session. Council
Member Herndon seconded. Motion carried 6 - 1. Council Member Toten
opposed.
Mayor Cain recessed the meeting at 8:29 PM.
Council Member Toten left the meeting at 8:29 PM.
Council Member Herndon left the meeting at 9:06 PM.
Mayor Cain reconvened the meeting at 9:48 PM.
10. Consider/Discuss/Action on any items listed on any agenda - executive session, regular
meeting, or closed session - that is duly posted by the City of Anna for any City Council
meeting occurring on the same date as the meeting noticed in this agenda.
No action was taken.
11. Adjourn.
Mayor Cain adjourned the meeting at 9:48 PM.
APPROVED this 25th day of August 2026.
____________________________________
Mayor Pete Cain
ATTEST:
_______________________________
City Secretary Carrie L. Land
Item No. 6.b.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Natasha Roach
AGENDA ITEM:
Review the Joint Community Development Corporation and Economic Development
Corporation Board Meeting Minutes for July 2, 2026. (Director of Economic
Development Natasha Roach)
SUMMARY:
The item is for Council to review meeting minutes from the July 2, 2026, CDC/EDC Joint
Board Meeting.
FINANCIAL IMPACT:
This item has no financial impact.
BACKGROUND:
The CDC/EDC Board met on July 2, 2026, for their monthly Joint Board Meeting.
STRATEGIC CONNECTIONS:
This item supports the City of Anna Strategic Plan, specifically advancing the strategic
outcome area: Excellent.
Anna is a high-performing City that implements best practices and pursues
accreditation, demonstrating its commitment to:
• Ethical and collaborative decision-making
• Continuous improvement and achieving measurable outcomes
• Ensuring a positive work environment for Council, staff, and neighbors
ATTACHMENTS:
1. July 2_2026 CDC EDC Joint Meeting Minutes (Signed)
Item No. 6.c.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Terri Doby
AGENDA ITEM:
Review Monthly Financial Report for the Month Ending July 31, 2026. (Director of
Finance Terri Doby)
SUMMARY:
This report covers the financial performance for Fiscal Year 2026 through July 31, 2026.
FINANCIAL IMPACT:
Information only.
BACKGROUND:
The City of Anna's financial policies require the publication of a monthly financial report.
Enclosed in the report is an executive dashboard that provides a high-level look at
major funds along with detailed reporting of sales tax collections. The City's financial
condition remains strong, and the reported funds adhere to fund balance requirements.
The City adopted the FY2026 Budget on September 9, 2025.
STRATEGIC CONNECTIONS:
This item supports the City of Anna Strategic Plan, specifically advancing the strategic
outcome area: Excellent.
Anna is a high-performing City that implements best practices and pursues
accreditation, demonstrating its commitment to:
• Ethical and collaborative decision-making
• Continuous improvement and achieving measurable outcomes
• Ensuring a positive work environment for Council, staff, and neighbors
ATTACHMENTS:
1. FY2026 City Council Monthly Financial Report July
Positive Positive variance compared to historical trends
Warning Negative variance of 3%-5% compared to historical trends
Negative Negative variance of >5% compared to historical trends
FY2026 FY2026 %
Budget TD
REVENUES
General Fund
Property Taxes 14,606,393$ 15,582,827$ 107%Property taxes are collected in Jan. & Feb.
Sales Tax 6,030,000 5,105,606 85%Reflects nine months of remittances.
Franchise and Local Taxes 1,250,000 1,004,488 80%Franchise fees are collected yearly and quarterly.
Charges for Services 1,310,086 1,697,363 130%
Fines 400,000 340,627 85%
Permits, Licenses and Fees 5,470,000 4,179,803 76%
Intergovernmental - 57,201 100%
Investment Income 800,000 311,348 39%Interest rates are unpredictable.
Other Revenues - 1,077,119 100%
Revenue Total 29,866,479$ 29,356,382$ 98%With 83% of the year expired, revenues recorded in the General
Ledger are at 98% of budget.
EXPENDITURES
General Fund
Expense Total 29,858,950$ 25,520,809$ 85%With 83% of the year expired, expenses are 85% of budget.
Utility Fund
REVENUES
Water Sales 14,112,700$ 10,536,073$ 75%Water revenues are highly variable with the weather (ex. rainy
sprin .
Sewer Charges 10,700,000 8,758,345 82%
Sanitation Revenue 3,744,000 3,346,495 89%
Other Charges for Services 890,000 560,315 63%Lower than expected tap fees and meter install fees.
Permits, Licenses and Fees 900,000 2,594,935 288%
Investment Income 702,000 972,968 139%
Other Revenues - 87,217 100%
Utility Fund Total 31,048,700$ 26,856,348$ 86%With 83% of the year expired, revenues recorded in the General
Ledger are at 86% of budget.
EXPENDITURES
Administration 1,127,420$ 1,131,484$ 100% Includes expense for rate model consultant. Property and liability
insurance costs were higher than projected.
Water 9,238,543 9,887,451 107%Higher than expected water purchase cost due to restructuring of
debt payments.
Sewer 14,111,136 11,813,157 84%
Sanitation 3,738,000 3,180,373 85%
Utility Billing 1,653,539 1,206,849 73%
Engineering 1,111,373 792,793 71%
Utility Fund Total 30,980,011$ 28,012,107$ 90%With 83% of the year expired, expenses are 90% of budget.
CITY OF ANN
GENERAL & UTILITY FUNDS DASHBOARD
Through July 31, 2026
Favorable / Unfavorable
% Change
2024-26 Collections from 2024-25 Collections
Monthly Prior Year Monthly
October 820,089$ 5% 780,090$
November 855,966 14% 753,401
December 1,085,565 9% 995,930
January 749,307 10% 682,766
February 764,084 13% 675,214
March 1,059,013 -43% 1,873,725
April 884,322 13% 779,340
May 886,072 13% 780,970
June 1,064,551 23% 867,435
July 817,173
August 761,329
September 844,898
8,168,969$ 10,612,271$
Budget: 9,650,000 85% 8,220,000
CITY OF ANNA
Schedule of Sales Tax Collections
June 30, 2026
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Monthly Sales Tax Collections:
3 Year Comparison
FY2023-24 FY2024-25 FY2025-26
Item No. 6.d.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Terri Doby
AGENDA ITEM:
Approve the Quarterly Investment Report for the Period Ending June 30, 2026. (Director
of Finance Terri Doby)
SUMMARY:
In accordance with the Public Funds Investment Act (PFIA), the City of Anna is required
to submit a quarterly report on the investments of public funds held by the City. The
report includes:
• Summary of Investments by category
• Economic overview with charts showing historical data
• Total of investment holdings, including portfolio composition and maturity range
• Book and market comparison
The fiscal year-to-date average yield for the portfolio equaled 3.75%. Total cash and
investments decreased by $18.4 million for the quarter. The decrease is attributed to the
drawdown of funds for capital project payments.
FINANCIAL IMPACT:
Interest income for the quarter ending June 30, 2026, equaled $2.27 million. Overall,
interest income for the fiscal year-to-date was $6.58 million.
BACKGROUND:
According to the City of Anna's Investment Policy, funds will be administered and
invested in a manner that will preserve the principal, maintain liquidity, and optimize
earnings while meeting the daily cash flow requirements of the City and the guidelines
to be followed in achieving its objectives. The City of Anna invests funds in several
types of instruments, including Checking and Money Market accounts, Certificates of
Deposit, and Government Pool funds. Investment funds are currently held in SouthState
Bank, American National Bank, Cornerstone Capital Bank, and TexPool. The city works
with Valley View Consulting, LLC to maximize current interest rates while maintaining a
high degree of safety and sufficient liquidity to fund ongoing operations.
STRATEGIC CONNECTIONS:
This item supports the City of Anna Strategic Plan, specifically advancing the strategic
outcome area: Excellent.
Anna is a high-performing City that implements best practices and pursues
accreditation, demonstrating its commitment to:
• Ethical and collaborative decision-making
• Continuous improvement and achieving measurable outcomes
• Ensuring a positive work environment for Council, staff, and neighbors
ATTACHMENTS:
1. 2026 06 Anna
Quarter End Results by Investment Category:
Asset Type Ave. Yield Book Value Market Value Ave. Yield Book Value Market Value
Bank DDA/MMA 3.81%91,704,744$ 91,704,744$ 3.56%72,168,133$ 72,168,133$
LGIPs 3.67%79,200,328 79,200,328 3.65%79,921,846 79,921,846
Securities/CDs 3.74%40,348,427 40,348,427 3.74%40,719,420 40,719,420
Totals 3.75%211,253,498$ 211,253,498$ 3.63%192,809,399$ 192,809,399$
Average Yield - Current Quarter (1) Fiscal Year-to-Date Average Yield (2)
Total Portfolio 3.63%Total Portfolio 3.75%
Rolling Three Month Treasury 3.73%Rolling Three Month Treasury 3.74%
Rolling Six Month Treasury 3.71%Rolling Six Month Treasury 3.75%
Quarterly TexPool Yield 3.65%Quarterly TexPool Yield 3.72%
Interest Income (Approximate)
Year-to-date Interest Income 6,575,685$
Summary
(2) Fiscal Year-to-Date Average Yields - calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account
for advisory fees.
(1) Averge Yield - Current Quarter - based on adjusted book value, realized and unrealized gains/losses and investment advisory fees are not considered. The
yield for the reporting month is used for bank, pool and money market balances.
June 30, 2026March 31, 2026
City of Anna Valley View Consulting, L.L.C.1
Economic Overview 6/30/2026
The Federal Open Market Committee's (FOMC) on June 16th and 17th, hosted by new Chairman Kevin Warsh, resulted in no change to the Fed Funds 3.50% - 3.75% target (Effective Fed Funds
trade +/-3.62%). First Quarter GDP expanded by 2.1%. June Non-Farm Payroll added 57k (below the +110k expectation). The three month average decreased to +111k. The S&P 500 Stock
Index rretreated from 7,600 but remained +/-7,500. The positively sloped yield curve increased slighlty. Crude Oil declined to +/-$70. Inflation continues above the FOMC 2% target (Core CPI 2.9%
and Core PCE +/-3.4%). The uncertain world events still influence volatility.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
S&P 500
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
6.00 US Treasury Historical Yields -Since Nov 2018
Six Month T-Bill Two Year T-Note Ten Year T-Note
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00 Treasury Yield Curves
June 30, 2025 March 31, 2026 June 30, 2026
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
6.00 US Treasury Historical Yields -Since 2006
Six Month T-Bill Two Year T-Note Ten Year T-Note
All numbers estimated and subject to change.Valley View Consulting, L.L.C.2
Investment Holdings
June 30, 2026
SouthState MMA 3.56%07/01/26 06/30/26 72,168,133$ 72,168,133$ 1.00 72,168,133$ 1 3.56%
TexPool LGIP AAAm 3.65%07/01/26 06/30/26 79,921,846 79,921,846 1.00 79,921,846 1 3.65%
SouthState Bank CD 3.65%07/16/26 12/09/25 25,459,143 25,459,143 100.00 25,459,143 16 3.71%
SouthState Bank CD 4.00%09/29/26 09/29/25 5,151,086 5,151,086 100.00 5,151,086 91 4.07%
American Nat'l Bank of Texas CD 3.59%11/19/26 02/18/26 5,043,768 5,043,768 100.00 5,043,768 142 3.64%
Cornerstone Capital Bank CD 3.60%02/18/27 02/19/26 5,065,423 5,065,423 100.00 5,065,423 233 3.66%
192,809,399$ 192,809,399$ 192,809,399$ 15 3.63%
(1)(2)
(2) Weighted average yield to maturity - The weighted average yield to maturity is based on adjusted book value, realized and unrealized gains/losses and investment advisory fees are not
considered. The yield for the reporting month is used for pool and bank account investments.
(1) Weighted average life - For purposes of calculating weighted average life, pool and bank account investments are assumed to have a one day maturity.
City of Anna Valley View Consulting, L.L.C.3
Bank DDA/MMA
37%
Pools
42%
Securities/CDs
21%
Portfolio Composition
$0
$50
$100
$150
$200
$250
Total Portfolio (Millions)
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Pe
r
c
e
n
t
a
g
e
Total Portfolio Performance
TexPool Weighted Average Yield
$0
$25
$50
$75
$100
$125
$150
$175
$200
Distribution by Maturity Range (Millions)
City of Anna Valley View Consulting, L.L.C.4
Maturity Cash Flow - Next 12 Months
Month Face Amount Interest Total
Jul-26 25,459,143$ 107,256$ 25,566,398$
Aug-26 – 61,128 61,128
Sep-26 5,151,086 66,922 5,218,008
Oct-26 – 15,488 15,488
Nov-26 5,043,768 61,124 5,104,892
Dec-26 – 15,488 15,488
Jan-27 – 15,488 15,488
Feb-27 5,065,423 8,488 5,073,911
Mar-27 – – –
Apr-27 – – –
May-27 – – –
Jun-27 – – –
$–
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Face Amount Interest
City of Anna Valley View Consulting, L.L.C.5
Issuer/Description Yield Maturity
Date
Book Value
03/31/26 Increases Decreases Book Value
06/30/26
Market Value
03/31/26
Change in
Market Value
Market Value
06/30/26
SouthState MMA 3.56%07/01/26 91,704,744$ –$ (19,536,611)$ 72,168,133$ 91,704,744$ (19,536,611)$ 72,168,133$
TexPool LGIP 3.65%07/01/26 79,200,328 721,518 – 79,921,846 79,200,328 721,518 79,921,846
SouthState Bank CD 3.71%07/16/26 25,228,527 230,616 – 25,459,143 25,228,527 230,616 25,459,143
SouthState Bank CD 4.07%09/29/26 5,099,670 51,416 – 5,151,086 5,099,670 51,416 5,151,086
American Nat'l Bank of Texas CD 3.64%11/19/26 5,000,000 43,768 – 5,043,768 5,000,000 43,768 5,043,768
Cornerstone Capital Bank CD 3.66%02/18/27 5,020,230 45,193 – 5,065,423 5,020,230 45,193 5,065,423
TOTAL / AVERAGE 3.63%211,253,498$ 1,092,512$ (19,536,611)$ 192,809,399$ 211,253,498$ (18,444,100)$ 192,809,399$
Book & Market Value Comparison
City of Anna Valley View Consulting, L.L.C.6
Allocation
June 30, 2026
Book & Market Value Total General Fund
Debt Service
Fund - General
General Bond
Funds
Water/Sewer
Bond Funds APFC PFC/HFC EDC CDC
SouthState MMA 72,168,133$ 21,286,705$ 3,017,687$ –$ 25,542,200$ 95,704$ 5,057,527$ 5,663,690$ 11,504,619$
TexPool LGIP 79,921,846 33,010,754 – 40,974,846 – – – – 5,936,246
–
07/16/26–SouthState Bank CD 25,459,143 – – 25,459,143 – – – – –
09/29/26–SouthState Bank CD 5,151,086 – – – 5,151,086 – – – –
11/19/26–American Nat'l Bank of Texas CD 5,043,768 5,043,768 – – – – – – –
02/18/27–Cornerstone Capital Bank CD 5,065,423 5,065,423 – – – – – – –
Totals 192,809,399$ 64,406,651$ 3,017,687$ 66,433,989$ 30,693,286$ 95,704$ 5,057,527$ 5,663,690$ 17,440,865$
Allocation
March 31, 2026
Book & Market Value Total General Fund
Debt Service General Bond Water/Sewer
SouthState MMA 91,704,744$ 17,681,032$ 7,917,916$ –$ 44,380,366$ 94,836$ 5,011,630$ 5,592,410$ 11,026,554$
TexPool LGIP 79,200,328 32,712,739 – 40,604,933 – – – – 5,882,655
–
07/16/26–SouthState Bank CD 25,228,527 – – 25,228,527 – – – – –
09/29/26–SouthState Bank CD 5,099,670 – – – 5,099,670 – – – –
11/19/26–American Nat'l Bank of Texas CD 5,000,000 5,000,000 – – – – – – –
02/18/27–Cornerstone Capital Bank CD 5,020,230 5,020,230 – – – – – – –
Totals 211,253,498$ 60,414,001$ 7,917,916$ 65,833,460$ 49,480,036$ 94,836$ 5,011,630$ 5,592,410$ 16,909,209$
City of Anna Valley View Consulting, L.L.C.7
Item No. 6.e.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Joseph Cotton
AGENDA ITEM:
Approve a Resolution approving a Chapter 380 Development Agreement and Water
Line Improvement Agreement with Next Horizon Development, LLC. (Director of Public
Works Joseph Cotton)
SUMMARY:
New Horizon Development LLC (NHD) has agreed to construct approximately 4,100 LF
of 12" water main from the frontage of Anna Christian Fellowship to the northern edge of
the proposed development. The developer has agreed to create and obtain all the
required easements at their cost.
FINANCIAL IMPACT:
There is no financial impact to the city.
BACKGROUND:
New Horizon Development LLC has agreed to design and construct approximately
4,100 LF of 12-inch water main to serve its site in exchange for not constructing the
proposed two-lane roadway section along its frontage.
The development is located along CR 376 in the north-east section of the ETJ. City staff
initially requested that the developer construct two lanes of roadway along the full
frontage to support the future Leonard Avenue alignment.
The developer asked staff to consider an alternative because the required roadway
section would be located outside the city limits on an existing county road. After
reviewing the request, staff determined that the water-system extension would provide
greater public benefit to this portion of the ETJ than approximately 1,000 LF of isolated
roadway improvements within the existing asphalt county road.
STRATEGIC CONNECTIONS:
This item supports the City of Anna Strategic Plan, specifically advancing the strategic
outcome area: Resilient.
Anna's mobility and utility infrastructure consistently meets community needs
by:
• Focusing on resiliency and the City's ability to recover from upsets
• Having a robust multi-modal transportation network
• Dependably delivering utility services to the City's neighbors and businesses
ATTACHMENTS:
1. Resolution Ch. 380 Water Line
CITY OF ANNA, TEXAS RESOLUTION NO. __________ PAGE 1 OF 3
CITY OF ANNA, TEXAS
Section 380.001 of the Texas Local Government Code authorizes the
governing body of a municipality to establish and provide for the administration of
programs to promote state or local economic development and stimulate business and
commercial activity in the municipality, including within its extraterritorial jurisdiction; and
Next Horizon Development LLC, a Delaware limited liability company
(“Developer”), proposes to develop an approximately 42-acre tract located in the City of
Anna’s extraterritorial jurisdiction adjacent to County Road 376 and generally identified
as Collin County Appraisal District Property ID No. 1023617 (the “Property”); and
the City of Anna, Texas (the “City”), and Developer have negotiated a
Chapter 380 Development Agreement and Water Line Improvement Agreement (the
“Agreement”) under which Developer will, subject to the Agreement, design, fund,
construct, dedicate, and warrant certain public water line improvements and fund
authorized easement-acquisition costs through escrow in exchange for the conditional
roadway alternative-compliance approval described in the Agreement; and
the City Council finds that the Agreement and the performance required of
Developer will promote local economic development, stimulate business and
commercial activity, expand public utility infrastructure, support orderly development,
and advance the public health, safety, and welfare; and
the City Council further finds that the Agreement imposes measurable
performance standards, provides adequate consideration to the City, and contains
sufficient contractual controls to ensure that its public purposes are carried out and that
the City receives a return benefit; and
the City Council finds that the approval of the Agreement is in the best
interests of the City and its residents;
CITY OF ANNA, TEXAS RESOLUTION NO. __________ PAGE 2 OF 3
SECTION 1. Findings.
The findings set forth above are incorporated herein for all purposes as if set forth in full
and are adopted as findings of the City Council.
The City Council hereby approves the Chapter 380 economic development program
described in the Agreement and approves the Agreement in substantially the form
attached hereto as Exhibit A and incorporated herein for all purposes. The Mayor is
authorized to execute the Agreement on behalf of the City. Before execution, the
Agreement shall be completed in final form, including all exhibits, and approved as to
form by the City Attorney. Non-material, conforming, or administrative revisions may be
approved by the City Manager and City Attorney; any material modification requires
further City Council approval.
The City Manager, or the City Manager’s designee, is authorized to administer the
Agreement and take actions expressly contemplated by and consistent with its terms.
Nothing in this Resolution independently approves any Reserved Capacity, authorizes
the exercise of eminent domain, commits City funds not lawfully appropriated, or
authorizes a material amendment to the Agreement. Each such matter remains subject
to the Agreement, applicable law, and further City Council action when required.
This Resolution shall be cumulative of all provisions of state or federal law and other
resolutions of the City of Anna, Texas, except where the provisions of this Resolution
are in direct conflict with such other resolutions, in which event the conflicting provisions
are hereby repealed to the extent of the conflict.
If any provision, section, subsection, sentence, clause, or phrase of this Resolution, or
the application of the same to any person or set of circumstances, is for any reason held
to be unconstitutional, void, invalid, or unenforceable, the validity of the remaining
portions of this Resolution and their application shall not be affected, it being the intent
of the City Council that no portion of this Resolution shall become inoperative because
of the invalidity of another portion.
Any provision of a prior resolution or ordinance of the City, whether codified or
uncodified, that conflicts with this Resolution is hereby repealed to the extent of the
conflict. All other provisions of the resolutions and ordinances of the City that are not in
conflict with this Resolution shall remain in full force and effect.
CITY OF ANNA, TEXAS RESOLUTION NO. __________ PAGE 3 OF 3
SECTION 7. Open Meetings.
It is hereby officially found and determined that all notices required by law were given,
that notice of this Resolution was posted, and that this Resolution was considered and
passed in accordance with the Texas Open Meetings Act.
This Resolution shall take effect immediately upon its passage.
by the City Council of the City of Anna, Texas,
on this 25th day of August, 2026.
City Secretary, Carrie L. Land Mayor, Pete Cain
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 1
EXHIBIT A
This Chapter 380 Development Agreement and Water Line Improvement Agreement (this
“Agreement”) is entered into effective as of ____________, 2026 (the “Effective Date”), by and between the
City of Anna, Texas, a Texas home-rule municipality (the “City”), and NEXT HORIZON DEVELOPMENT
LLC, a Delaware limited liability company (“Developer”). The City and Developer are sometimes referred to
collectively as the “Parties” and individually as a “Party.”
Developer is the owner, contract purchaser, or developer of an approximately 42-acre tract in
the City’s extraterritorial jurisdiction (“ETJ”) adjacent to County Road 376 (“CR 376”), generally identified
as Collin County Appraisal District Property ID No. 1023617 and more particularly described on Exhibit A
(the “Property”). The Property will be located in the ETJ for development and use purposes.
The Property has approximately 1,170 linear feet of frontage along CR 376, and Developer
has advised the City that it intends to initially develop approximately 5 to 10 acres of the Property, with
approximately 330 linear feet of frontage, for commercial or industrial use, with potential future phases on
the balance of the Property.
City staff advised Developer that development of the Property could require construction of
roadway improvements along the CR 376 frontage and the future Leonard roadway alignment, including
concrete pavement improvements within a 120-foot arterial right-of-way section (the “Roadway Construction
Requirement”).
The Parties have discussed an alternative arrangement under which Developer would design
and construct a water line extension serving the Property and the City utility system instead of constructing
the Roadway Construction Requirement. The Property is located in the City’s certificate of convenience and
necessity for water.
Based on the discussions between the Parties, the water line extension is expected to consist
of a water line, 12 inches in diameter unless otherwise approved or required by the City Engineer, extending
from the existing water line near Lindsey Road and Nectar Road, east along Lindsey Road to CR 376, and
then north along or near CR 376 to the northern boundary of the Developer tract, together with
appurtenances, easements, and related improvements approved by the City (collectively, the “Water Line
Improvements”).
Developer has proposed to simplify the transaction by paying for the Water Line
Improvements and all related easement acquisition costs, including all appraisals and appraisal-related
services necessary for negotiation and any potential condemnation of the Easements.
The City is willing to consider and approve the simplified arrangement because the Water
Line Improvements will provide a public utility benefit, support orderly development, advance public health
and safety, and promote local economic development and commercial activity in the City and its service
area.
The City is willing, subject to Developer’s performance under this Agreement, to waive the
Roadway Construction Requirement for the Property in exchange for Developer’s timely design, funding,
construction, dedication, and warranty of the Water Line Improvements and Developer’s funding of all
easement acquisition and condemnation costs through the escrow provisions in this Agreement.
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 2
I. The Parties intend for this Agreement to function, to the extent applicable, as a Chapter 380
economic development agreement, a development agreement, and a service-extension agreement or
alternative compliance agreement under the City’s subdivision and development regulations.
J. The City Council has determined, by approving this Agreement, that the obligations and
performance standards imposed on Developer are sufficient consideration for the Roadway Waiver and that
the Agreement serves a public purpose.
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained in
this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are
acknowledged, the Parties agree as follows:
ARTICLE 1
DEFINITIONS; INTERPRETATION
Agreement means this Chapter 380 Development Agreement and Water Line Improvement Agreement,
including all exhibits and any written amendments approved by the Parties.
Appraisal Costs means all costs, expenses, fees, charges, and payments for appraisals and appraisal-related
services the City determines are necessary or appropriate for voluntary negotiation, bona fide offers,
administrative settlement, condemnation, special commissioners’ proceedings, trial, appeal, or settlement of
the Easements, including initial appraisals, appraisal updates, supplemental appraisals, appraisal reviews,
market studies, comparable-sales research, valuation reports, expert consultation, expert reports, expert
testimony, and related consultant costs.
Authorized City Costs means all reasonable costs, expenses, fees, charges, and payments incurred or to be
incurred by the City in connection with the Easement Acquisition Work, including landowner compensation,
option payments, administrative title charges, title commitments and policies, recording costs, Appraisal
Costs, survey review, engineering review, outside counsel fees, court costs, special commissioners’ fees and
awards, expert witness fees, mediation costs, appeal costs, and other costs directly related to voluntary
acquisition or condemnation of the Easements. Authorized City Costs do not include costs, expenses, fees,
charges, and payments incurred or to be incurred by the City solely in connection with obtaining Required
External Utility Approvals.
City Engineer means the City Engineer or the City official, consultant, or designee responsible for review
and approval of public infrastructure plans.
City Prerequisite Obligations means the City-controlled prerequisite work necessary for Developer to
begin or complete the Water Line Improvements, consisting of the City’s reasonable and timely efforts to
acquire all Easements or other legally sufficient rights of possession and access required for the Water Line
Improvements and to pursue Required External Utility Approvals.
Commencement of Construction means, with respect to the Water Line Improvements, the date on which
Developer has satisfied all conditions required to begin work and has caused its contractor to begin physical
construction in the field on the approved water line route, including excavation, trenching, pipe installation,
or other physical work approved by the City Engineer. Commencement of Construction does not include
mobilization, surveying, staking, potholing, utility locates, material ordering, traffic-control staging, or other
preliminary activities that do not begin physical construction of the Water Line Improvements.
Completion of Construction means, with respect to the Water Line Improvements, the date on which the
Water Line Improvements have been physically installed, connected, or made ready for connection as
approved by the City Engineer, tested, disinfected, flushed, restored, and otherwise made ready for final
inspection and acceptance under Section 3.04, as confirmed in writing by the City Engineer. Completion of
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 3
Construction does not include the City’s administrative final acceptance, conveyance of ownership, or review
of final close-out documents under Section 3.04.
Easement Acquisition Work means the City’s work to obtain, in the City’s name, the permanent and
temporary easements required for the Water Line Improvements, whether by voluntary purchase, dedication,
donation, administrative settlement, or condemnation, including appraisal and valuation work necessary or
appropriate for those efforts.
Easements means all permanent water line easements, temporary construction easements, access easements,
and related property interests necessary or desirable for the design, construction, operation, maintenance,
repair, replacement, and access to the Water Line Improvements.
Escrow means the funds deposited by Developer with the City under Article 4 to pay Authorized City Costs.
Plans means the plans, profiles, specifications, reports, studies, calculations, easement documents, easement
exhibits, field notes, construction details, and related submittals prepared by or for Developer and approved
by the City for the Water Line Improvements.
Property means the land described in Exhibit A, together with any replats or subdivisions of such land.
PUC means the Public Utility Commission of Texas.
Required External Utility Approvals means, to the extent the City determines such action is required or
prudent, any consent, agreement, release, crossing or encroachment approval, easement release or
subordination, utility-service-area agreement, contract under Texas Water Code Section 13.248, CCN
amendment, PUC approval or order, non-objection, permit or other third-party or regulatory action from
South Grayson SUD, the PUC, or another retail public utility or governmental authority that is necessary or
prudent to allow the Water Line Improvements to cross, occupy, be located within, be constructed through,
or be used to provide service notwithstanding South Grayson SUD’s water CCN No. 10182 or any other
applicable water CCN, service-area, easement, or utility-regulatory issue.
Reserved Capacity means the water service capacity, if any, to be reserved for the Property under Section
7.01 and Exhibit C, as approved in writing by the City Engineer or City Manager.
Roadway Construction Requirement means any City requirement imposed on Developer, solely by reason
of development of the Property, to construct off-site or frontage roadway pavement improvements along CR
376 or the future Leonard alignment adjacent to the Property, including concrete travel lanes or median
improvements in the arterial roadway section. The term does not include the Excluded Roadway Matters
described in Section 5.03.
Roadway Waiver means the City’s waiver and alternative compliance approval described in Article 5.
South Grayson SUD means South Grayson Special Utility District and any successor, assign, or affiliated
retail public utility holding or claiming rights under water CCN No. 10182 or any easement, facility, or other
utility interest affected by the Water Line Improvements.
Water Line Costs means all costs to plan, survey, design, permit, bid, construct, inspect, test, dedicate,
convey, warrant, and close out the Water Line Improvements, including Developer’s consultants, contractors,
subcontractors, materials, traffic control, permits, bonds, insurance, record drawings, testing, and other costs.
Water Line Improvements means the public water line and appurtenant improvements described in Exhibit
B and approved in the Plans, including valves, fire hydrants, fittings, connections, meters or meter vaults if
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 4
required, casing, surface restoration, erosion control, traffic control, trench safety, temporary improvements,
and all appurtenances necessary for a complete and operable public water line extension.
Section 1.02. Interpretation
(a) The words “include,” “includes,” and “including” are terms of enlargement and not limitation.
(b) References to City approval, City standards, City specifications, or City requirements mean the
requirements lawfully applicable at the time of the relevant submittal or approval, except to the extent
expressly modified by this Agreement.
ARTICLE 2
PUBLIC PURPOSE; CONSIDERATION; PERFORMANCE STANDARDS
Section 2.01. Public Purpose and Economic Development Findings
Section 2.02. Developer Performance Standards
Section 2.03. No Cash Incentive
ARTICLE 3
DEVELOPER WATER LINE OBLIGATIONS
Section 3.01. Design and Engineering
(a) Developer shall retain, at its sole cost, Texas-licensed engineers, surveyors, and other professionals
necessary to design the Water Line Improvements and prepare the Plans. Developer’s engineer shall
coordinate with the City Engineer regarding the final route, sizing, capacity, connection points,
phasing, easement widths, and construction sequencing.
(b) Unless the City Engineer approves a different size in writing, the Water Line Improvements shall
include a water line 12 inches in diameter. If the City requests an enlargement above the size necessary
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 5
to serve the Property and above the scope described in Exhibit B, the Parties shall address the
additional scope by written amendment before Developer is obligated to construct the enlarged
improvement.
(c) Developer shall submit the Plans to the City for review and approval. Developer shall revise the Plans
to address City comments and shall not commence construction until the City issues all required
written approvals and permits. The City will charge, and Developer shall pay, all generally applicable
engineering review, inspection, and permit fees.
Section 3.02. Construction
(a) Developer shall construct the Water Line Improvements in strict accordance with the approved Plans,
City standards, applicable laws, and all permits. Developer shall be solely responsible for contractor
selection, contracting, scheduling, construction administration, site safety, utility locates, traffic
control, SWPPP and environmental compliance, trench safety, and coordination with affected
landowners and utilities.
(b) Developer shall cause its contractor to provide performance bonds, payment bonds, maintenance
bonds, insurance certificates, and additional insured endorsements in forms and amounts reasonably
required by the City for public infrastructure to be accepted by the City.
(c) The City’s review, inspection, or approval of the Plans or Water Line Improvements does not make the
City responsible for design errors, construction means and methods, contractor performance, site
safety, or compliance with laws by Developer or its contractors.
(d) Developer shall achieve Commencement of Construction no later than 30 days after the latest of: (i)
City approval of the Plans; (ii) acquisition of all Easements or other legally sufficient rights of
possession and access necessary to construct the Water Line Improvements; (iii) issuance of all permits
required to begin construction; and (iv) Developer’s satisfaction of all City preconstruction meeting,
bond, insurance, and security requirements. Developer shall achieve Completion of Construction no
later than 180 days after Commencement of Construction. The deadlines in this Section are subject to
extensions approved under Section 8.02 and force majeure delays under Section 12.10. Failure to meet
either deadline is a Developer default under Article 9.
(e) Without limiting Section 3.02(d), Developer shall not be required to achieve Commencement of
Construction until the City has completed the City Prerequisite Obligations necessary for
commencement, including acquisition of all Easements or other legally sufficient rights of possession
and access and receipt, effectiveness, or written City determination of non-necessity of all Required
External Utility Approvals required for the applicable segment. If, after Commencement of
Construction, a City Prerequisite Obligation or Required External Utility Approval is not complete and
materially prevents or delays Developer’s construction, testing, connection, or close-out work, the
Completion of Construction deadline is tolled as provided in Section 8.04.
Section 3.03. Fees; Permits
Except for the Roadway Waiver, this Agreement does not waive any generally applicable application fees,
meter fees, tap fees, impact fees, permit fees, or other charges applicable to development of the Property or
construction of the Water Line Improvements. Developer shall pay such fees when due unless the City
Council separately approves a written waiver.
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 6
Section 3.04. Acceptance; Dedication; Warranty
(a) After Developer achieves Completion of Construction and submits all required close-out documents,
the City shall accept the Water Line Improvements in writing if they comply with this Agreement, the
approved Plans, City standards, and applicable laws. The City shall own and operate the Water Line
Improvements at its sole expense.
(b) Upon acceptance, Developer shall convey and dedicate the Water Line Improvements to the City free
and clear of all liens, claims, and encumbrances other than the Easements and other encumbrances
approved by the City, and City shall operate and maintain the Water Line Improvements at its sole cost
and expense. Developer shall provide bills of sale, assignments, lien waivers, record drawings, test
reports, warranties, maintenance bonds, and other close-out documents reasonably required by the
City.
(c) Developer shall warrant the Water Line Improvements for the period required by City standards, but not
more than two years after City acceptance, and shall promptly repair defects at Developer’s cost. The
warranty obligation survives acceptance and conveyance.
Section 3.05. No Agency
Developer is an independent party and is not the agent, employee, contractor, partner, or joint venturer of the
City. Developer has no authority to bind the City, represent that Developer is acting on behalf of the City, or
make commitments to third parties on behalf of the City, except as expressly authorized in writing by the
City.
ARTICLE 4
EASEMENTS AND ESCROW AGREEMENT
Section 4.01. Developer Preparation of Easement Materials
(a) Developer shall prepare, at its sole cost, all surveys, metes-and-bounds descriptions, field notes,
easement exhibits, title sketches, and related materials required for the Easements. Developer shall use
licensed surveyors and shall coordinate the form and content of the easement materials with the City
Engineer, the City Attorney, and the City’s acquisition counsel, if any.
(b) The City shall provide its standard water line easement form or other easement form approved by the
City Attorney. Developer may prepare initial drafts using the City’s form, but the City retains final
approval authority, in the City Attorney’s discretion, over the easement form, legal description, and
exhibits before any owner is asked to sign.
Section 4.02. City Acquisition Role
(a) After the City approves the easement materials and Developer has deposited the initial Escrow as
described in Section 4.04, the City shall use reasonable and timely efforts to obtain the Easements by
voluntary negotiation with affected landowners. The City may use the City’s staff, City Attorney,
outside counsel, consultants, appraisers, appraisal reviewers, title company, or acquisition agents as the
City determines appropriate, and all related Authorized City Costs, including Appraisal Costs, shall be
funded by Developer through the Escrow.
(b) If the City determines that one or more required Easements cannot be acquired voluntarily on terms
acceptable to the City, the City shall, subject to City Council authorization and all legally required
findings and procedures, consider and, if authorized, pursue acquisition by eminent domain in the
City’s name. Nothing in this Agreement predetermines or delegates the City Council’s governmental
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 7
discretion to determine public use, necessity, route, scope, settlement authority, or whether to initiate,
settle, appeal, or abandon a condemnation proceeding.
(c) Developer shall cooperate with the City in the Easement Acquisition Work, including by providing
engineering support, revised exhibits, route information, utility information, construction access needs,
and testimony or declarations from Developer’s consultants as reasonably requested by the City.
Developer shall not contact affected landowners regarding acquisition terms unless authorized by the
City. The City will use reasonable efforts to pursue the Easement Acquisition Work in accordance with
the target milestones in Article 8, but the City does not guarantee that all Easements will be acquired
by any specified date or that condemnation, if authorized, will be completed within any specified
period.
Section 4.03. Appraisals and Valuation Support
(a) Developer shall fund, through the Escrow and as Authorized City Costs, all Appraisal Costs the City
determines are necessary or appropriate to negotiate for, acquire, or, if authorized, condemn the
Easements. This obligation includes initial appraisals, appraisal updates, supplemental appraisals,
appraisal reviews, valuation studies, comparable-sales research, expert reports, appraisal testimony,
and valuation work required for bona fide offers, administrative settlements, special commissioners’
hearings, objections, trial, appeal, or settlement.
(b) The City shall select, retain, direct, and communicate with any appraiser, appraisal reviewer, or
valuation expert engaged for the Easement Acquisition Work, unless the City authorizes Developer in
writing to do so. Developer shall not direct appraisal conclusions, communicate settlement values to
landowners, or condition funding on any appraised value, settlement position, litigation position, or
outcome.
(c) Developer shall deposit or replenish Escrow funds as necessary to allow the City to order appraisals
and appraisal-related services before negotiations and, if condemnation is authorized, before filing or
continuing condemnation proceedings. The City may suspend negotiation, filing, or prosecution of any
condemnation action until sufficient Escrow funds are available for all Appraisal Costs and other
Authorized City Costs the City reasonably anticipates.
Section 4.04. Escrow Created
This Article 4 constitutes the Parties’ embedded escrow agreement. Within five business days after the
Effective Date, Developer shall deposit with the City an initial amount of $25,000 (the “Initial Escrow
Deposit”). The City shall hold and administer the Escrow in a project account or other City-controlled
account for payment of Authorized City Costs, including all Appraisal Costs. The City is not acting as a
third-party escrow agent or fiduciary, but shall account to Developer for deposits, expenditures, and
remaining balances as provided in this Article.
Section 4.05. Authorized Uses of Escrow
The City may use the Escrow to pay Authorized City Costs without additional consent from Developer.
Authorized City Costs include amounts payable before, during, and after voluntary acquisition or
condemnation, including all Appraisal Costs, deposits required by a court, special commissioners’ awards,
settlements, judgments, appeal bonds or deposits, recording costs, outside legal fees, appraisal and expert
fees, and other acquisition-related costs. The Escrow may not be used to pay Water Line Costs or unrelated
City costs unless Developer consents in writing.
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 8
Section 4.06. Replenishment
If the City determines that the Escrow balance is or may become insufficient, or if the balance falls below
$5,000 (the “Minimum Balance”), the City may deliver a written replenishment notice to Developer.
Developer shall deposit the requested replenishment amount within ten business days after receipt of the
notice. The City may suspend the Easement Acquisition Work, appraisal work, negotiation activities, and
any condemnation activities until the replenishment is received.
Section 4.07. Accounting; Refund
The City shall provide Developer with a periodic accounting of Escrow deposits and expenditures, not less
often than quarterly while Easement Acquisition Work is active. After all Easements are acquired or the
Easement Acquisition Work is terminated, all Authorized City Costs have been paid or reserved, and the
Water Line Improvements have been accepted or this Agreement has terminated, the City shall refund any
unused Escrow balance to Developer within 45 days, less any amounts reasonably retained for unresolved
invoices, appraisal work, claims, or costs.
Section 4.08. Developer Responsible for All Costs
Developer is responsible for all Authorized City Costs, including all appraisal costs, whether or not the Initial
Escrow Deposit or other deposits are sufficient and whether or not the Easements are ultimately acquired
voluntarily or by condemnation. Developer’s obligation to pay Authorized City Costs survives termination of
this Agreement as to costs incurred or committed before termination, including costs incurred in winding
down acquisition, appraisal, negotiation, or condemnation proceedings.
Section 4.09. Offsite Owner Connections
The City may discuss the availability of the Water Line Improvements with affected landowners during
acquisition negotiations. However, this Agreement does not grant any offsite landowner a free tap, meter,
service connection, impact fee waiver, capacity allocation, or right to utility service. Any such arrangement
must be separately approved in writing by the City.
Section 4.10. South Grayson SUD/PUC Coordination; Required External Utility Approvals
(a) To the extent the City determines that the Water Line Improvements may cross, occupy, or be located
within territory certificated to South Grayson SUD, may require a release, consent, crossing
agreement, service-area agreement, contract approval, CCN amendment, PUC approval, or other
action, or otherwise may implicate South Grayson SUD’s water CCN No. 10182, the City shall use
reasonable and timely efforts to pursue the Required External Utility Approvals. The City may control
communications, negotiations, filings, and agreements with South Grayson SUD, the PUC, or any
other affected retail public utility or governmental authority, and may determine whether a specific
approval is required, prudent, or unnecessary.
(b) Developer shall cooperate with the City in pursuing Required External Utility Approvals, including by
providing route information, engineering support, maps, metes-and-bounds descriptions, exhibits,
capacity and service-demand information, testimony, and other materials reasonably requested by the
City. All costs incurred or committed by the City for the sole purpose of obtaining the Required
External Utility Approvals, including legal fees, engineering and surveying costs, mapping costs, PUC
filing fees, notice costs, consultant costs, settlement costs, and related expenses, shall be at the sole
cost of the City.
(c) The City does not guarantee that South Grayson SUD, the PUC, or any third party will grant, approve,
execute, or refrain from opposing any Required External Utility Approval or that any such approval
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 9
will be obtained by a particular date. The construction deadlines are tolled only as provided in Section
8.04, and nothing in this Section waives the City Council’s governmental discretion regarding any
agreement, filing, route, condemnation decision, settlement, or regulatory position.
ARTICLE 5
ROADWAY WAIVER AND ALTERNATIVE COMPLIANCE
Section 5.01. Roadway Waiver
Subject to Developer’s timely performance under this Agreement, the City approves an alternative
compliance arrangement for the Property under which Developer’s design, funding, construction, dedication,
and warranty of the Water Line Improvements, together with Developer’s funding of the Easement
Acquisition Work, including all Appraisal Costs, satisfy and replace the Roadway Construction Requirement.
The City shall not require Developer, as a condition of plat approval, development plat approval, site plan
approval, engineering plan approval, building permit, certificate of occupancy, utility connection, or other
development approval for the Property, to fund or construct the Roadway Construction Requirement.
Nothing in this Agreement constitutes an admission by either Party regarding whether the Roadway
Construction Requirement would be enforceable absent this Agreement, and the City reserves its position
that such requirement may be imposed under applicable law and City regulations outside the express
Roadway Waiver.
Section 5.02. Timing and Vesting of Waiver
(a) From and after the Effective Date, the City shall process Developer’s development applications
consistent with the Roadway Waiver, provided Developer is not in default and is diligently performing
its obligations. The City may require performance security to ensure completion of the Water Line
Improvements before final acceptance or utility service.
(b) Upon the City’s final written acceptance of the Water Line Improvements and Developer’s payment of
all Authorized City Costs then due, the Roadway Waiver becomes permanent for the Property and runs
with the Property for current and future phases of development solely with respect to the Roadway
Construction Requirement as defined in this Agreement, subject to Section 5.03 and the other
limitations in this Agreement.
(c) Notwithstanding any other provision of this Agreement, Developer may commence duly approved
development of the Property but may not be issued any certificate(s) of occupancy until the Water Line
Improvements are complete and in operation.
Section 5.03. Excluded Roadway Matters
The Roadway Waiver does not waive or modify: (i) dedication or reservation of right-of-way, including
right-of-way needed to build the full width of Leonard Road along the CR 376 alignment in the future; (ii)
driveway approaches, access points, fire lanes, internal circulation, emergency access, private drives, parking
areas, or on-site paving; (iii) on-site traffic-control devices, driveway spacing, sight-visibility, drainage,
grading, stormwater, or erosion-control requirements; (iv) utility relocations, franchise utility coordination,
or restoration of disturbed surfaces; or (v) improvements required by Collin County or another governmental
entity not acting through the City.
Section 5.04. No Waiver of Police Power
Except for the Roadway Waiver expressly approved by this Agreement, the City does not waive its police
power, regulatory authority, platting authority, utility authority, permitting authority, or enforcement
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 10
authority. The City retains all rights to enforce applicable laws and development regulations that are not
expressly modified by this Agreement.
Developer knowingly and voluntarily waives, releases, and disclaims any right, claim, request, application,
or expectation to receive from the City or any third party, with respect to the Water Line Improvements,
Easement Acquisition Work, or Appraisal Costs, any: (i) impact fee credit, offset, reduction, refund, or
reimbursement; (ii) oversizing reimbursement or cost participation unless expressly provided in a future
written amendment approved by the City Council; (iii) pro-rata fee, pro-rata agreement, service-extension
reimbursement, or future reimbursement payment; (iv) City collection, tracking, accounting, or disbursement
of amounts from future users or developers; or (v) cash payment, grant, rebate, or other reimbursement of
Water Line Costs or Authorized City Costs.
The City has no obligation to establish, track, charge, collect, escrow, administer, distribute, or enforce any
pro-rata fee or other reimbursement mechanism for Developer’s benefit. The City may allow other properties
to connect to or use the Water Line Improvements in accordance with applicable City regulations, capacity
limitations, and the Reserved Capacity provisions of this Agreement without payment to Developer.
Developer remains responsible for all impact fees, tap fees, meter fees, review fees, inspection fees, and
other generally applicable fees due for development of the Property or connection to the City’s utility system
except as set forth in this Agreement. The Parties agree that the Roadway Waiver is not an impact fee credit
and shall not reduce or offset applicable impact fees unless the City Council approves a separate written
impact fee credit agreement, which is not contemplated by this Agreement.
This Article 6 survives acceptance of the Water Line Improvements, expiration or termination of this
Agreement, conveyance of the Property, and assignment of this Agreement.
Developer shall submit to the City Engineer a water demand and capacity memorandum for the current and
reasonably anticipated future development of the Property. The memorandum shall identify requested
reserved capacity in gallons per day, living unit equivalents, equivalent meters, fire-flow requirements, or
other metrics required by the City (“Reserved Capacity”). The City Engineer shall review the memorandum
and may recommend a Reserved Capacity amount for insertion in Exhibit C, subject to available capacity,
applicable law, City utility policies, and approval by the City Manager or City Council as the City determines
is required.
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 11
Section 7.02. Protection of Reserved Capacity
During the term of any Reserved Capacity expressly approved in Exhibit C, and so long as Developer is not
in default, the City shall use the Reserved Capacity in administering service requests for the Property, subject
to applicable law, system conditions, regulatory requirements, drought or emergency restrictions, actual
constructed capacity, the City’s certificate obligations, and the City’s generally applicable utility policies.
The City may permit other connections to the Water Line Improvements and the City utility system without
Developer’s consent, provided that the City does not intentionally allocate capacity in a manner that
eliminates any Reserved Capacity expressly approved in Exhibit C during its stated term.
Section 7.03. No Guarantee Beyond Approved Capacity
The Reserved Capacity, if approved, is limited to the amount and duration stated in Exhibit C. This
Agreement does not guarantee utility service for demands exceeding the Reserved Capacity, does not exempt
Developer from impact fees or connection requirements, and does not prevent the City from enforcing
generally applicable utility ordinances, drought restrictions, or emergency measures.
ARTICLE 8
SCHEDULE; PHASING; CONDITIONS
Section 8.01. Target Milestones
All milestones in this Section are target administrative deadlines only and are subject to the City’s receipt of
complete submittals, final route approval, sufficient Escrow funds, City Council action if required, and third-
party, court, appraisal, title, and landowner scheduling. Notwithstanding the foregoing or any other provision
of this Agreement, the construction deadlines in Section 3.02(d) are contractual deadlines and not merely
target administrative milestones. The milestones and construction deadlines are also subject to South
Grayson SUD, PUC, and other external utility-approval processes and to the tolling provisions in Section
8.04.
Milestone Target date / period Responsible party
City provides standard
easement form and initial route
comments
Within 25 business days after Effective
Date
City
Initial Escrow Deposit Within 5 business days after Effective
Date
Developer
Preliminary alignment,
easement exhibits, and
acquisition package
Within 30 days after receipt of City
form/comments
Developer
Commence voluntary easement
negotiations with offsite
property owners
Within 15 business days after complete
package, City approval of acquisition
materials, and receipt of Initial Escrow
Deposit
City
Submit Water Line Plans Within 60 days after route confirmation
or as otherwise approved
Developer
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 12
Milestone Target date / period Responsible party
Commencement of
Construction
Not later than 30 days after all
Easements or rights of possession, plan
approvals, permits, and required
preconstruction/bond/insurance/security
conditions are in place (Required
External Utility Approvals must also be
obtained, effective, or determined
unnecessary by the City before the
Commencement of Construction
deadline begins).
Developer
Completion of Construction Not later than 180 days after
Commencement of Construction
Developer
Final acceptance and dedication Within 90 days after Completion of
Construction and complete close-out
submittal
City/Developer
Section 8.02. Extensions
The City Manager may approve reasonable administrative extensions of the milestones in Section 8.01 and
the construction deadlines in Section 3.02(d) if Developer is diligently pursuing performance. Any extension
of more than 180 days or any material change to the Roadway Waiver, Reserved Capacity, or Water Line
Improvements must be approved by the City Council unless the City Council delegates such authority in the
resolution approving this Agreement. Automatic tolling under Section 8.04 is not an administrative extension
and may be memorialized by the City Manager in writing without a formal amendment, subject to City
Council approval if the City Manager determines the duration or business terms materially change the
Roadway Waiver, Reserved Capacity, or Water Line Improvements.
Section 8.03. Conditions to City Obligations
The City’s obligations to proceed with Easement Acquisition Work, order or complete appraisals, continue
processing development applications under the Roadway Waiver, and accept the Water Line Improvements
are conditioned on Developer’s timely performance, including without limitation commencement of
construction and construction deadlines, maintaining the Escrow, paying fees, providing complete submittals,
obtaining approvals, and curing defaults. Developer’s failure to satisfy a deadline is not a default to the
extent the deadline is tolled under Section 8.04.
Section 8.04. Tolling for City Prerequisite Obligations and Required External Utility Approvals
(a) The deadlines for Commencement of Construction and Completion of Construction, and any other
Developer deadline that depends on the availability of required easements, rights of possession, access
rights, or Required External Utility Approvals, are tolled day-for-day during any period in which
Developer is actually prevented or materially delayed from performing the affected obligation because
the City Prerequisite Obligations have not been completed.
(b) Tolling under this Section applies only to the extent the delay is caused by or results from the City’s
acquisition of all required water line Easements or legally sufficient rights of possession and access, the
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 13
City’s pursuit of Required External Utility Approvals from or involving South Grayson SUD, the PUC,
or another affected retail public utility or governmental authority, or the pendency of any related
condemnation, court, administrative, PUC, South Grayson SUD, or third-party approval process that
prevents lawful construction, connection, testing, operation, or acceptance of the affected portion of the
Water Line Improvements.
(c) Tolling applies only while Developer is otherwise diligently performing all non-delayed obligations
under this Agreement, maintaining the Escrow, paying Authorized City Costs, submitting complete and
accurate plans, surveys, exhibits, and other materials, responding to City comments, and maintaining
required bonds, insurance, permits, and security. Tolling does not apply to delays caused by Developer,
Developer’s contractors or consultants, incomplete or inaccurate submittals, design revisions not
required by the City, failure to deposit or replenish the Escrow, failure to obtain Developer-controlled
permits, force majeure events separately governed by Section 12.10, or any other matter within
Developer’s reasonable control.
(d) Developer shall provide written notice to the City when Developer believes a tolling event under this
Section is delaying performance, describing the affected obligation, the cause of delay, the date the
delay began, and the expected impact on the schedule. Tolling begins on the date the delay actually
prevents or materially delays performance if the City has actual knowledge of the delay, or otherwise on
the date the City receives Developer’s written notice. The City Manager may confirm the revised
deadlines in writing after consultation with the City Engineer and City Attorney.
(e) Tolling under this Section is an extension of time only. It does not waive Developer’s obligations, make
the Roadway Waiver permanent before Section 5.02(b) is satisfied, require the City to approve any
agreement or regulatory filing on terms unacceptable to the City, or make the City liable for the action,
inaction, objection, condition, ruling, or delay of South Grayson SUD, the PUC, a court, a landowner, or
any other third party. If a tolling event continues for more than 365 consecutive days, either Party may
request termination under Section 9.06 unless the Parties agree in writing, and the City Council
approves if required, to continue the Agreement.
ARTICLE 9
DEFAULT; REMEDIES; TERMINATION
Section 9.01. Developer Default
Developer is in default if Developer: (i) fails to deposit or replenish the Escrow when due; (ii) fails to pay
Water Line Costs, Appraisal Costs, Authorized City Costs, fees, or other amounts due; (iii) fails to timely
submit required easement materials or Plans; (iv) fails to timely achieve Commencement of Construction or
Completion of Construction or fails to diligently construct or complete the Water Line Improvements; (v)
constructs material nonconforming improvements and fails to correct them; (vi) fails to convey the Water
Line Improvements free and clear of liens; (vii) files or pursues a claim for reimbursement waived by Article
6; (viii) makes a material misrepresentation; or (ix) otherwise materially breaches this Agreement. An
alleged failure to achieve Commencement of Construction or Completion of Construction is not a Developer
default to the extent the applicable deadline is tolled under Section 8.04.
Section 9.02. City Default
The City is in default only if the City materially breaches an express, ministerial obligation under this
Agreement and fails to cure the breach within the applicable cure period. Nothing in this Agreement waives
governmental, sovereign, or official immunity except to the limited extent such immunity is expressly
waived by applicable law. The City’s inability to acquire all Easements or obtain all Required External
Utility Approvals by a particular date is not a City default if the City is using reasonable and timely efforts
and Developer is receiving the tolling provided by Section 8.04.
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 14
Section 9.03. Notice and Cure
Before declaring a default, the non-defaulting Party shall provide written notice describing the default.
Monetary defaults must be cured within ten business days after notice. Non-monetary defaults must be cured
within 30 days after notice, or, if cure reasonably requires more than 30 days, the defaulting Party must begin
cure within 30 days and diligently pursue cure to completion.
Section 9.04. City Remedies for Developer Default
If Developer defaults and fails to cure, the City may exercise any remedy available at law or in equity,
including: (i) suspending the Easement Acquisition Work; (ii) suspending review or approval of development
applications to the extent related to the default; (iii) refusing utility connection or acceptance of
improvements related to the default; (iv) drawing on or retaining Escrow funds and other security; (v)
requiring Developer to remove or correct material nonconforming work; (vi) terminating the conditional
Roadway Waiver before it becomes permanent; (vii) enforcing Developer’s payment obligations; and (viii)
pursuing specific performance or injunctive relief as permitted by law.
Section 9.05. Developer Remedies for City Default
If the City defaults and fails to cure, Developer may pursue specific performance or declaratory relief only to
the extent available under applicable law and not barred by governmental immunity. Developer is not
entitled to consequential, punitive, speculative, lost-profit, or special damages against the City.
Section 9.06. Termination
Either Party may request termination if the Easements cannot be acquired after diligent efforts and all
authorized condemnation proceedings are exhausted, abandoned, or denied, or if a force majeure event
prevents Completion of Construction for more than 120 days or as said time period may be extended by the
City Manager. If Developer or its permitted assignee has not acquired the Property by October 31, 2026, or
as said date as may be extended by the City Manager, Developer may terminate this Agreement by written
notice to the City, provided that termination is prospective only and does not release Developer from any
obligation to pay Authorized City Costs, Appraisal Costs, Water Line Costs, or other costs incurred,
committed, or reasonably necessary to wind down the Easement Acquisition Work before or as a result of
termination. Either Party may also request termination if Required External Utility Approvals cannot be
obtained after diligent efforts, if South Grayson SUD, the PUC, a court, or another authority finally denies or
refuses a Required External Utility Approval necessary for the Water Line Improvements, or if tolling under
Section 8.04 continues for more than 365 consecutive days and the Parties do not agree to continue the
Agreement.
Upon termination before the Roadway Waiver becomes permanent as provided in this Section 9.06,
Developer remains liable for Authorized City Costs and Water Line Costs incurred before termination, and
the City may apply then-current legally valid development regulations to future development applications,
except as otherwise required by law.
ARTICLE 10
INSURANCE; BONDS; INDEMNITY; STATUS
Section 10.01. Insurance
Before construction begins, Developer shall provide, and shall require its contractors and consultants to
provide, insurance coverages, limits, deductibles, endorsements, and certificates required by the City for
comparable public infrastructure projects, including commercial general liability, automobile liability,
workers’ compensation, employer’s liability, professional liability for design professionals, and builder’s risk
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 15
or installation coverage if required by the City. Coverage must be on a “per occurrence” basis. All such
insurance shall: (i) be issued by a carrier which is rated “A-1” or better by A.M. Best’s Key Rating Guide
and licensed to do business in the State of Texas; and (ii) name the City as an additional insured and contain
a waiver of subrogation endorsement in favor of the City. Upon the execution of Public Infrastructure
construction contracts, Developer shall provide to the City certificates of insurance evidencing such
insurance coverage together with the declaration of such policies, along with the endorsement naming the
City as an additional insured. Each such policy shall provide that, at least 30 days prior to the cancellation,
non-renewal or modification of the same, the City shall receive written notice of such cancellation, non-
renewal or modification.
Section 10.02. Bonds and Security
Section 10.03. Indemnification and Hold Harmless
THIRD- PARTY CLAIMS, SUITS, JUDGMENTS, DAMAGES, AND DEMANDS AGAINST THE CITY
OR ANY OF THE RELEASED PARTIES, INCLUDING WITHOUT LIMITATION REASONABLE
ATTORNEY’S FEES, RELATED EXPENSES, EXPERT WITNESS FEES, CONSULTANT FEES, AND
OTHER COSTS ACTUALLY INCURRED (TOGETHER, “CLAIMS”), ARISING OUT OF THE
NEGLIGENCE OR OTHER WRONGFUL CONDUCT OF DEVELOPER, INCLUDING THE
NEGLIGENCE OF ITS RESPECTIVE EMPLOYEES, CONTRACTORS, SUBCONTRACTORS,
MATERIALMEN, AND/OR AGENTS, IN CONNECTION WITH THE DESIGN OR
CONSTRUCTION OF THE WATER LINE IMPROVEMENTS OR ANY PORTION THEREOF,
STRUCTURES, OR OTHER FACILITIES OR IMPROVEMENTS. DEVELOPER SHALL NOT,
HOWEVER, BE REQUIRED TO INDEMNIFY THE CITY AGAINST CLAIMS CAUSED BY THE
CITY’S NEGLIGENCE OR OTHER WRONGFUL CONDUCT, WHETHER SOLE, CONTRIBUTORY,
OR COMPARATIVE. IF THE CITY INCURS CLAIMS THAT ARE CAUSED BY THE CONCURRENT
NEGLIGENCE OF DEVELOPER AND THE CITY, DEVELOPER’S INDEMNITY OBLIGATION
WILL BE LIMITED TO A FRACTION OF THE TOTAL CLAIMS EQUIVALENT TO DEVELOPER’S
OWN PERCENTAGE OF RESPONSIBILITY. DEVELOPER, INCLUDING ITS RESPECTIVE
SUCCESSORS AND ASSIGNS, FURTHER COVENANTS AND AGREES TO RELEASE, DEFEND,
HOLD HARMLESS, AND INDEMNIFY, THE RELEASED PARTIES AGAINST ANY AND ALL
CLAIMS BY ANY PERSON CURRENTLY CLAIMING AN OWNERSHIP INTEREST IN THE
PROPERTY WHO HAS NOT SIGNED THIS AGREEMENT IF SUCH CLAIMS RELATE IN ANY
MANNER OR ARISE IN CONNECTION WITH: (1) THE CITY’S RELIANCE UPON DEVELOPER’S
REPRESENTATIONS IN THIS AGREEMENT; (2) THIS AGREEMENT OR OWNERSHIP OF THE
PROPERTY; OR (3) THE CITY’S APPROVAL OF ANY TYPE OF DEVELOPMENT APPLICATION
OR SUBMISSION WITH RESPECT TO THE PROPERTY. DEVELOPER, INCLUDING ITS
RESPECTIVE SUCCESSORS AND ASSIGNS, FURTHER COVENANTS AND AGREES TO
RELEASE, DEFEND, HOLD HARMLESS, AND INDEMNIFY, THE RELEASED PARTIES AGAINST
ANY AND ALL CLAIMS BY ANY PERSON CLAIMING THAT ANY PROVISION OR STATEMENT
IN THIS AGREEMENT CONFERS OR POTENTIALLY CONFERS ANY BENEFIT OR THING OF
VALUE TO DEVELOPER THAT IS INVALID, ILLEGAL, UNLAWFUL OR THAT THE CITY IS NOT
LEGALLY PERMITTED TO CONFER TO DEVELOPER UNDER THIS AGREEMENT.
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 16
Section 10.04. Status of Parties
This Agreement does not create a joint enterprise or venture or employment relationship between the City
and Developer.
ARTICLE 11
TERM; ASSIGNMENT; RECORDATION
Section 11.01. Term
This Agreement begins on the Effective Date and continues until the Water Line Improvements have been
accepted, all Escrow obligations have been satisfied, and all warranties have expired, unless earlier
terminated under applicable provisions of this Agreement. Articles 4, 5, 6, 9, 10, 11, and 12, and any other
provisions that by their nature should survive, survive expiration or termination.
Section 11.02. Assignment
Developer may not assign this Agreement without the City’s prior written consent’; provided, however, that
Developer may assign this Agreement to an affiliate or subsidiary that owns or controls the Property only
after providing prior written notice to the City and delivering an executed assumption agreement, evidence of
financial capacity reasonably acceptable to the City, and replacement security required by the City. No
assignment releases Developer from obligations accrued before the effective date of the assignment unless
the City expressly agrees in writing. Any assignment that does not comply with this Section is void.
Section 11.03. Runs with the Property
After execution, the Parties may record this Agreement or a memorandum of this Agreement in the Official
Public Records of Collin County, Texas. The Roadway Waiver, once permanent under Section 5.02(b), and
Developer’s obligations and waivers in Articles 5 and 6 run with the Property and bind successors and
assigns. The remaining obligations that by their nature run with the Property bind successors and assigns to
the extent permitted by law.
Section 11.04. Mortgagee Rights
A lender holding a lien against the Property may receive notices and cure Developer defaults if the lender
provides written notice information to the City. No lender is obligated to perform Developer’s obligations
unless the lender assumes this Agreement in writing or takes title to the Property and elects to proceed with
development relying on the Roadway Waiver.
ARTICLE 12
MISCELLANEOUS
Section 12.01. Authority
Each Party represents that it has authority to enter into this Agreement and that the person signing on behalf
of the Party is authorized to bind the Party. The City’s obligations are not effective unless and until this
Agreement is approved by the City Council and executed by the City Manager or other authorized City
representative.
Section 12.02. No Debt; No Pledge of Taxes
This Agreement does not create a debt or obligation payable from ad valorem taxes and does not require the
City to appropriate or expend funds for Developer. Developer’s Escrow deposits and payments, including
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 17
deposits for Appraisal Costs, are not City funds until applied to Authorized City Costs, and no City official
or employee is authorized to pledge City funds except as expressly approved by the City Council and
allowed by law.
Section 12.03. Governmental Immunity
Section 12.04. Applicable Law; Venue
Section 12.05. Public Information
Section 12.06. Notices
th Street
Anna, Texas 75409
With copy to:
Section 12.07. Entire Agreement; Amendments
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 18
Section 12.08. Severability
If any provision of this Agreement is held invalid or unenforceable, the remaining provisions remain in effect
if the essential terms and public purposes of the Agreement can still be achieved. The Parties shall negotiate
in good faith to replace an invalid provision with a valid provision that most closely reflects the original
intent.
Section 12.09. No Third-Party Beneficiaries
This Agreement is for the sole benefit of the Parties and their permitted successors and assigns. No
landowner, contractor, future developer, utility customer, or other third party is an intended beneficiary of
this Agreement.
Section 12.10. Force Majeure
A Party is not liable for delay caused by events beyond its reasonable control, including acts of God,
weather, declared disasters, strikes, unusual material shortages, court orders, war, terrorism, epidemics,
regulatory moratoria, or acts or omissions of third parties that could not reasonably be avoided. Force
majeure does not excuse payment obligations, Escrow deposits, or Developer’s obligation to replenish the
Escrow. Delays addressed by Section 8.04 are governed by that Section and are not treated as force majeure
delays unless they independently satisfy this Section 12.10.
Section 12.11. Time is of the Essence
Time is of the essence regarding every obligation of Developer under this Agreement. Each obligation is
deemed material, and a breach of any such obligation (including a breach resulting from untimely
performance) is a material breach. Developer’s time obligations are subject to the tolling rights expressly
provided in Section 8.04.
Section 12.12. Counterparts
This Agreement may be executed in counterparts, each of which is deemed an original and all of which
constitute one instrument.
Section 12.13. Employment of Undocumented Workers
During the term of this Agreement, Developer agrees not to knowingly employ any undocumented workers
and if convicted of a violation under 8 U.S.C. Section 1324a (f), Developer shall repay the amount of any
Reimbursement Payment or other funds received by Developer from City from the date of this Agreement to
the date of such violation within 120 days after the date Developer is notified by City of such violation, plus
interest at the rate of 4% compounded annually from the date of violation until paid. Developer is not liable
for a violation of this section by a subsidiary, affiliate, or franchisee of Developer or by a person with whom
Developer contracts.
Section 12.14. No Boycott of Israel.
Developer verifies that Developer (including any wholly owned subsidiary, majority-owned subsidiary,
parent company, or affiliate of Developer) does not Boycott Israel and agrees that during the term of this
Agreement (Contract as applicable) will not Boycott Israel as that term is defined in Texas Government Code
Section 808.001, as amended. As used in the foregoing verification, “boycott Israel,” means refusing to deal
with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict
economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 19
business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary
business purposes.
Section 12.15. Verification Pursuant to Chapters 2252 and 2270 of the Texas Government Code
Section 12.16. Verifications Pursuant to Chapters 2274 and 2276, Texas Government Code
(a) Developer hereby verifies that it and its parent company, wholly- or majority-owned subsidiaries, and
other affiliates, if any, do not boycott energy companies and will not boycott energy companies during
the term of this Agreement. The foregoing verification is made solely to enable Developer to comply
with Section 2276.002, Texas Government Code, as amended. As used in the foregoing verification,
“boycott energy companies,” a term defined in Section 2276.001(1), Texas Government Code (as
enacted by such Senate Bill) by reference to Section 809.001, Texas Government Code (also as enacted
by such Senate Bill), shall mean, without an ordinary business purpose, refusing to deal with,
terminating business activities with, or otherwise taking any action that is intended to penalize, inflict
economic harm on, or limit commercial relations with a company because the company (A) engages in
the exploration, production, utilization, transportation, sale, or manufacturing of fossil fuel-based energy
and does not commit or pledge to meet environmental standards beyond applicable federal and state
law; or (B) does business with a company described by (A) above.
(b) Developer hereby verifies that it and its parent company, wholly- or majority-owned subsidiaries, and
other affiliates, if any, do not have a practice, policy, guidance, or directive that discriminates against a
firearm entity or firearm trade association and will not discriminate against a firearm entity or firearm
trade association during the term of this Agreement. The foregoing verification is made solely to enable
Developer to comply with Section 2274.002, Texas Government Code, as amended. As used in the
foregoing verification and the following definitions, ‘discriminate against a firearm entity or firearm
trade association,’ a term defined in Section 2274.001(3), Texas Government Code (as enacted by such
Senate Bill), (A) means, with respect to the firearm entity or firearm trade association, to (i) refuse to
engage in the trade of any goods or services with the firearm entity or firearm trade association based
solely on its status as a firearm entity or firearm trade association, (ii) refrain from continuing an
existing business relationship with the firearm entity or firearm trade association based solely on its
status as a firearm entity or firearm trade association, or (iii) terminate an existing business relationship
with the firearm entity or firearm trade association based solely on its status as a firearm entity or
firearm trade association and (B) does not include (i) the established policies of a merchant, retail seller,
or platform that restrict or prohibit the listing or selling of ammunition, firearms, or firearm accessories
and (ii) a company’s refusal to engage in the trade of any goods or services, decision to refrain from
continuing an existing business relationship, or decision to terminate an existing business relationship
(aa) to comply with federal, state, or local law, policy, or regulations or a directive by a regulatory
agency or (bb) for any traditional business reason that is specific to the customer or potential customer
and not based solely on an entity’s or association’s status as a firearm entity or firearm trade association,
(b) ‘firearm entity,’ a term defined in Section 2274.001(6), Texas Government Code (as enacted by such
Senate Bill), means a manufacturer, distributor, wholesaler, supplier, or retailer of firearms (defined in
Section 2274.001(4), Texas Government Code, as enacted by such Senate Bill, as weapons that expel
projectiles by the action of explosive or expanding gases), firearm accessories (defined in Section
2274.001(5), Texas Government Code, as enacted by such Senate Bill, as devices specifically designed
or adapted to enable an individual to wear, carry, store, or mount a firearm on the individual or on a
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 20
conveyance and items used in conjunction with or mounted on a firearm that are not essential to the
basic function of the firearm, including detachable firearm magazines), or ammunition (defined in
Section 2274.001(1), Texas Government Code, as enacted by such Senate Bill, as a loaded cartridge
case, primer, bullet, or propellant powder with or without a projectile) or a sport shooting range (defined
in Section 250.001, Texas Local Government Code, as a business establishment, private club, or
association that operates an area for the discharge or other use of firearms for silhouette, skeet, trap,
black powder, target, self-defense, or similar recreational shooting), and (c) ‘firearm trade association,’
a term defined in Section 2274.001(7), Texas Government Code (as enacted by such Senate
Bill), means any person, corporation, unincorporated association, federation, business league, or
business organization that (i) is not organized or operated for profit (and none of the net earnings of
which inures to the benefit of any private shareholder or individual), (ii) has two or more firearm entities
as members, and (iii) is exempt from federal income taxation under Section 501(a), Internal Revenue
Code of 1986, as an organization described by Section 501(c) of that code.
Section 12.17. Survival of State Law Verifications
Liability for breach of any of Developer’s agreements and verifications contained in Sections 12.13, 12.14,
12.15, and 12.16 above during the term of this Agreement shall survive until barred by the applicable statute
of limitations, and shall not be liquidated or otherwise limited by any provision of this Agreement,
notwithstanding anything in this Agreement to the contrary.
Section 12.18. Form 1295
Developer represents that it has complied with Texas Government Code, Section 2252.908 and in connection
therewith, Developer has completed a Texas Ethics Commission Form 1295 Certificate generated by the
Texas Ethics Commission’s electronic filing system in accordance with the rules promulgated by the Texas
Ethics Commission. Developer further agrees to print the completed certificate and execute the completed
certificate in such form as is required by Texas Government Code, Section 2252.908 and the rules of the
Texas Ethics Commission and provide to the City at the time of delivery of an executed counterpart of this
Agreement, a duly executed completed Form 1295 Certificate. The Parties agree that, except for the
information identifying the City and the contract identification number, the City is not responsible for the
information contained in the Form 1295 completed by Developer. The information contained in the Form
1295 completed by Developer has been provided solely by Developer and the City has not verified such
information.
[SIGNATURE PAGES FOLLOW]
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 21
CITY:
CITY OF ANNA, TEXAS
By: ________________________________
Pete Cain, Mayor
Developer:
NEXT HORIZON DEVELOPMENT LLC
CHAPTER 380 DEVELOPMENT AGREEMENT AND WATER LINE IMPROVEMENT AGREEMENT Page 22
ACKNOWLEDGMENTS
EXHIBIT A
PROPERTY DESCRIPTION
EXHIBIT B
WATER LINE IMPROVEMENTS
• Minimum line size: 12-inch water line unless otherwise approved or required by the City Engineer for
service to the Property.
• Preliminary connection point: existing 8-inch water line at or near Lindsey Road and Nectar Road.
• Preliminary route: east along Lindsey Road to CR 376, then north along or near CR 376 to the northern
edge of the Developer tract.
• Appurtenances: valves, fittings, fire hydrants, service stubs, casing, air release assemblies, blowoffs,
meters or meter vaults if required, pavement/ditch restoration, and other appurtenances required by the
City Engineer.
• Easements: all permanent and temporary easements required for construction, operation, maintenance,
repair, replacement, and access.
• Ownership after acceptance: City of Anna, free and clear of liens, subject to warranty obligations.
EXHIBIT C
RESERVED CAPACITY AND DEVELOPMENT ASSUMPTIONS
Item No. 7.a.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Carrie Land
AGENDA ITEM:
Consider/Discuss/Action on the Official Ballot for the Texas Municipal League
Intergovernmental Risk Pool Board of Trustees Election. (City Secretary Carrie Land)
SUMMARY:
This item is to vote on the Texas Municipal League Intergovernmental Risk Pool Board
of Trustees Election Ballot. Council may vote for one nominee in Places 1, 2, 3, and 4.
City Manager Ronda Perez has been nominated for Place 3.
FINANCIAL IMPACT:
This item has no financial impact.
BACKGROUND:
At the July 14, 2026, City Council meeting, City Council voted unanimously to nominate
City Manager Ronda Perez to serve on the Board of Trustees.
STRATEGIC CONNECTIONS:
This item has no strategic connection.
ATTACHMENTS:
1. Official TMLIRP Ballot
Item No. 7.b.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Clark McCoy
AGENDA ITEM:
Conduct a Public Hearing/Consider/Discuss/Action on an Ordinance, approving a
negotiated settlement between the Atmos Cities Steering Committee (“ACSC”) and
Atmos Energy Corp., Mid-tex Division regarding the company’s 2026 rate review
mechanism filing; declaring existing rates to be unreasonable; adopting tariffs that
reflect rate adjustments consistent with the negotiated settlement; finding the rates to be
set by the attached settlement tariffs to be just and reasonable and in the public interest;
approving an attachment establishing a benchmark for pensions and retiree medical
benefits; requiring the company to reimburse ACSC’s reasonable ratemaking expenses;
determining that this ordinance was passed in accordance with the requirements of the
Texas Open Meetings Act; adopting a savings clause; declaring an effective date; and
requiring delivery of this ordinance to the company and the ACSC’s legal counsel. (City
Attorney Clark McCoy)
SUMMARY:
Council is being asked to approve the negotiated Atmos Mid-Tex rate settlement,
resulting in a $260.5 million system-wide annual revenue increase for Atmos, with the
new rates taking effect October 1, 2026.
Key points:
• Rate increase: The settlement authorizes Atmos Mid-Tex to increase annual
revenues by $260.5 million system-wide.
• Effective date: The new rates are to apply to bills rendered on or after October 1,
2026.
• City's role: Anna is a member of the Atmos Cities Steering Committee, which
coordinated the review of Atmos's 2026 RRM filing with attorneys and
consultants.
• Existing rates: The Ordinance declares the existing Atmos Mid-Tex rates
unreasonable and adopts the attached settlement tariffs as just and reasonable
and in the public interest.
• Plant and leak costs: ACSC agrees that Atmos's plant-in-service is reasonable,
but the City/ACSC retains the ability to evaluate the reasonableness of costs
related to future natural-gas leak incidents.
• Pensions and retiree medical benefits: A new benchmark for these costs will
apply in Atmos Mid-Tex's next RRM filing.
• ACSC expenses: Atmos must reimburse the ACSC for its reasonable ratemaking
expenses associated with processing the 2026 RRM filing.
• Prior Ordinances: Any prior City Council Ordinance that conflicts with this
Ordinance is repealed to the extent of the conflict.
• Open Meetings Act: The Ordinance confirms that the meeting was conducted in
compliance with the Texas Open Meetings Act.
• Final approval: The Ordinance will take effect upon passage, with the new tariffs
effective October 1, 2026
FINANCIAL IMPACT:
This item has no financial impact.
BACKGROUND:
The City, along with 181 other Mid-Texas cities served by Atmos Energy Corporation,
Mid-Tex Division (“Atmos Mid-Tex” or “Company”), is a member of the Atmos Cities
Steering Committee (“ACSC”). After several settlement meetings, the parties have
agreed to settle the case for $260.5 million. This is a reduction of over $30 million from
the Company’s initial request. This includes payment of ACSC’s expenses. The
Effective Date for new rates is October 1, 2026.
STRATEGIC CONNECTIONS:
This item has no strategic connection.
ATTACHMENTS:
1. Atmos Mid-Tex 2026 RRM Model Staff Report
2. Atmos Mid-Tex 2026 RRM Ordinance
3. Attachment 1_CY25 MTX RRM - Tariffs
4. Attachment 2_ CY25 MTX RRM - Pension Benchmark
5. CY25 MTX RRM - Average Bill
1
July 24, 2026
MODEL STAFF REPORT FOR RESOLUTION OR ORDINANCE
BACKGROUND AND SUMMARY
2
RATE TARIFFS
Atmos generated rate tariffs attached to the Resolution/Ordinance that will generate $260.5
million in additional revenues. Atmos also prepared a Proof of Revenues supporting the settlement
figures. ACSC consultants have agreed that Atmos’ Proof of Revenues is accurate.
The impact of the settlement on average residential rates is an increase of $13.37 on a monthly
basis, or 14.15%. The increase for average commercial usage will be $44.82 or 9.90%. Atmos
provided bill impact comparisons containing these figures.
ACSC strongly opposed the GRIP process because it constitutes piecemeal ratemaking by
ignoring declining expenses and increasing revenues while rewarding the Company for increasing
capital investment on an annual basis. The GRIP process does not allow any review of the
reasonableness of capital investment and does not allow cities to participate in the Railroad
Commission’s review of annual GRIP filings or allow recovery of Cities’ rate case expenses. The
Railroad Commission undertakes a mere administrative review of GRIP filings (instead of a full
hearing) and rate increases go into effect without any material adjustments. In ACSC’s view, the
GRIP process unfairly raises customers’ rates without any regulatory oversight. In contrast, the RRM
process has allowed for a more comprehensive rate review and annual evaluation of expenses and
revenues, as well as capital investment.
While residents outside municipal limits must pay rates governed by GRIP, there are some
cities served by Atmos Mid-Tex that chose to remain under GRIP rather than adopt RRM.
Additionally, the City of Dallas adopted a variation of RRM which is referred to as DARR. When
3
new rates become effective on October 1, 2026, ACSC residents will maintain an economic monthly
advantage over GRIP and will be comparable to DARR rates.
Comparison to Other Mid-Tex Rates (Residential)
RRM Cities: $66.18 -
DARR: $66.07 $0.11
ATM Cities: $67.02 ($0.84)
Environs: $66.07 $0.11
EXPLANATION OF “BE IT RESOLVED” PARAGRAPHS:
2557/40/9262990 4
8. This section finds that the meeting was conducted in compliance with the Texas Open
Meetings Act, Texas Government Code, Chapter 551.
CONCLUSION
1
ORDINANCE NO. ___________
WHEREAS, the City of Anna, Texas (“City”) is a gas utility customer of Atmos Energy
Corp., Mid-Tex Division (“Atmos Mid-Tex” or “Company”), and a regulatory authority with an
interest in the rates, charges, and services of Atmos Mid-Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee (“ACSC”), a
coalition of similarly-situated cities served by Atmos Mid-Tex (“ACSC Cities”) that have joined
together to facilitate the review of, and response to, natural gas issues affecting rates charged in
the Atmos Mid-Tex service area; and
WHEREAS, ACSC and the Company worked collaboratively to develop a Rate Review
Mechanism (“RRM”) tariff that allows for an expedited rate review process by ACSC Cities as a
substitute to the Gas Reliability Infrastructure Program (“GRIP”) process instituted by the
2
Legislature, and that will establish rates for the ACSC Cities based on the system-wide cost of
serving the Atmos Mid-Tex Division; and
3
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS:
Section 1. That the findings set forth in this Ordinance are hereby in all things approved.
Section 2. That, without prejudice to future litigation of any issue identified by ACSC,
the City Council finds that the settled amount of an increase in revenues of $260.5 million on a
system-wide basis represents a comprehensive settlement of gas utility rate issues affecting the
rates, operations, and services offered by Atmos Mid-Tex within the municipal limits arising from
Atmos Mid-Tex’s 2026 RRM filing, is in the public interest, and is consistent with the City’s
authority under Section 103.001 of the Texas Utilities Code.
Section 3. That despite finding Atmos Mid-Tex’s plant-in-service to be reasonable, ACSC
is not foreclosed in future cases from evaluating the reasonableness of costs associated with
incidents involving leaks of natural gas.
Section 4. That the existing rates for natural gas service provided by Atmos Mid-Tex are
unreasonable. The new tariffs attached hereto and incorporated herein as Attachment 1, are just
and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $260.5
million on a system-wide basis, over the amount allowed under currently approved rates. Such
tariffs are hereby adopted.
Section 5. That the ratemaking treatment for pensions and retiree medical benefits in
Atmos Mid-Tex’s next RRM filing shall be as set forth on Attachment 2, attached hereto and
incorporated herein.
Section 6. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of
ACSC in processing the Company’s 2026 RRM filing.
4
Section 7. That to the extent any resolution or ordinance previously adopted by the Council
is inconsistent with this Ordinance, it is hereby repealed.
Section 8. That the meeting at which this Ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
Section 9. That if any one or more sections or clauses of this Ordinance is adjudged to be
unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining
provisions of this Ordinance, and the remaining provisions of the Ordinance shall be interpreted
as if the offending section or clause never existed.
Section 10. That consistent with the City Ordinance that established the RRM process,
this Ordinance shall become effective from and after its passage with rates authorized by attached
tariffs to be effective for bills rendered on or after October 1, 2026.
Section 11. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris
Felan, Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy
Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Thomas Brocato,
General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
2557/40/9262988 5
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS, BY A VOTE OF ____ TO ____, ON THIS THE DAY OF
, 2026.
Mayor
ATTEST:
City Secretary
APPROVED AS TO FORM:
______________________________
City Attorney
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R – RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2026
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $ 24.35 per month
Rider CEE Surcharge $ 0.05 per month 1
Total Customer Charge $ 24.40 per month
Commodity Charge – All Ccf $ 1.03839 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company’s Tariff for Gas Service.
1Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 19196. Surcharge billing effective July 1, 2026.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C – COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2026
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished. Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $ 115.50 per month
Rider CEE Surcharge $ 0.00 per month 1
Total Customer Charge $ 115.50 per month
Commodity Charge – All Ccf $ 0.27784 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company’s Tariff for Gas Service.
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at mdtx-div-plantprotection@atmosenergy.com.
1 Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 19196. Surcharge billing effective July 1, 2026.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I – INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2026
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 200 MMBtu per day
for all natural gas provided at one Point of Delivery and measured through one meter. Service for
Industrial Customers with an MDU equal to or greater than 200 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 2,304.50 per month
First 0 MMBtu to 1,500 MMBtu $ 0.9582 per MMBtu
Next 3,500 MMBtu $ 0.7018 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.1505 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer’s deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled “Daily Price Survey.”
Replacement Index
In the event the “midpoint” or “common” price for the Katy point listed in Platts Gas Daily in the table
entitled “Daily Price Survey” is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I – INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2026
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company’s Tariff for Gas Service.
Special Conditions
In order to receive service under Rate I, Customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at mdtx-div-plantprotection@atmosenergy.com.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T – TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2026
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer’s agent at one Point of Delivery for
use in Customer's facility.
This tariff is not available to customers with a maximum daily demand of 1,000 MMBtu or greater and a
daily/annual load factor of 10% or less. Load factor is calculated as follows: annual usage / (maximum
daily connected demand X 365). Load factors will be recalculated once each year to determine
appropriate eligibility for Rate T.
Type of Service
Company’s receipt and delivery of all gas quantities under the applicable Transportation Agreement will be
on a wholly interruptible basis subject to the Terms and Conditions incorporated in the Transportation
Agreement. If Customer is an Industrial Customer, then Customer may elect, at the reasonable discretion
of Company, to contract for Plant Protection transportation quantities defined as the minimum natural gas
required to prevent physical harm and/or protect critical safety to the plant facilities, plant personnel, or the
public when such protection cannot be achieved through the use of an alternate fuel. Where service of the
type desired by Customer is not already available at the Point of Delivery, additional charges and special
contract arrangements between Company and Customer may be required prior to service being
furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 2,304.50 per month
First 0 MMBtu to 1,500 MMBtu $ 0.9582 per MMBtu
Next 3,500 MMBtu $ 0.7018 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.1505 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T – TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2026
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest “midpoint” price for the Katy point listed in Platts Gas Daily in the table
entitled “Daily Price Survey” during such month, for the MMBtu of Customer’s monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer’s receipt quantities for the month.
Overpull Fee
Upon notification by Company of an event of interruption of Customer’s deliveries, Customer will, for each
MMBtu delivered in excess of the stated level of interruption, pay Company 200% of the midpoint price for
the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled “Daily
Price Survey.”
Replacement Index
In the event the “midpoint” or “common” price for the Katy point listed in Platts Gas Daily in the table
entitled “Daily Price Survey” is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A transportation agreement is required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company’s Tariff for Gas Service.
Special Conditions
In order to receive service under Rate T, customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: SUR – SURCHARGES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2026
Application
This Rider is applicable to customer classes in the incorporated areas under the RRM tariff as authorized
by the state or any governmental entity, a municipality, or a regulatory authority pursuant to any statute,
ordinance, order, rule, contract, or agreement.
Monthly Calculation
Surcharges will be calculated in accordance with the applicable statute, ordinance, order, rule, contract,
or agreement.
FASB ASC 740-10 (Fin48) Refund
Applicable to Customers taking service under Rate Schedules R – Residential, C – Commercial, I –
Industrial and T – Transportation.
To ensure that gas utility customers receive the benefit associated with the changes in the Company’s
Uncertain Tax Positions (“UTPs”) arising from recognition of Texas Margin Tax returns.
The decrease shall be calculated as follows:
Beginning with implementation of rates from the negotiated RRM Tariff, and annually thereafter, the
portion of UTP liabilities identified in Schedule FIN48-1.1 for the prior fiscal year shall be allocated based
on the final class allocations of GUD No. 10170 as per the RRM Tariff, divided by the annual bill count to
derive rates to be refunded through Rider SUR in the subsequent fiscal year. Each year’s calculation will
include a true-up (+ or - ) due to account for over/under collections. Amounts identified in Schedule
FIN48-1 shall be adjusted to reflect any audit adjustments received from the Texas Comptroller of Public
Accounts.
No action on the part of the Regulatory Authority is required to give effect to the amount to be refunded to
customers. However, any amount refunded to customers shall be fully subject to review for
reasonableness and accuracy in the gas utility’s next statement of intent proceeding with the Railroad
Commission of Texas, and if applicable, the gas utility shall be required to reconcile any discrepancies.
The following refund as authorized in the most recent negotiated RRM Tariff shall be refunded to each
Rate Schedules R – Residential, C – Commercial, I – Industrial and T – Transportation customer’s
monthly bill in each month for a 12-month period. The refund amount by month by Rate Schedule is
shown in the table below:
Rate Schedules Rate
Rate R – Residential Sales $ (0.14)
Rate C – Commercial Sales $ (0.49)
Rate I – Industrial Sales $ (10.47)
Rate T – Transportation $ (10.47)
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: SUR – SURCHARGES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2026
Unprotected Excess Deferred Income Tax Amortization
The allocated RRM Cities balance of the Unprotected portion of the Excess Deferred Income Taxes
(“EDIT”) remaining after implementation of rates at October 1, 2026 shall be applied to each Rate
Schedules R – Residential, C – Commercial, I – Industrial and T – Transportation customer’s monthly bill
for a one-month period. The refund amount by Rate Schedule is shown in the table below:
Rate Schedules Rate
Rate R – Residential Sales $ (4.45)
Rate C – Commercial Sales $ (14.80)
Rate I – Industrial Sales $ (319.02)
Rate T – Transportation $ (319.02)
Maximum Allowable Operating Pressure (“MAOP”) Hydrostatic Testing Cost Recovery
The allocated RRM Cities balance of the MAOP Hydrostatic Testing Cost as of December 31, 2025 is to
be recovered through a monthly rate. This monthly rate shall be applied to each Rate Schedules R –
Residential, C – Commercial, I – Industrial and T – Transportation customer’s monthly bill for
approximately twelve (12) months or until all approved costs are recovered from the applicable customer
classes. The monthly recovery rate by Rate Schedule is shown in the table below:
Rate Schedules Rate
Rate R – Residential Sales $ 0.30
Rate C – Commercial Sales $ 0.98
Rate I – Industrial Sales $ 21.17
Rate T – Transportation $ 21.17
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA – WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2026
Provisions for Adjustment
The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized
by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall
be adjusted by an amount hereinafter described, which amount is referred to as the "Weather
Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature
sensitive residential and commercial bills based on meters read during the revenue months of November
through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls.
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula:
(HSFi x (NDD-ADD) )
WNAFi = Ri
(BLi + (HSFi x ADD) )
Where
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification.
HSFi = heat sensitive factor for the ith schedule or classification divided by the
average bill count in that class
NDD = billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
ADD = billing cycle actual heating degree days.
Bli = base load sales for the ith schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA i = WNAF i x q ij
Where q ij is the relevant sales quantity for the jth customer in ith rate schedule.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA – WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2026
Base Use/Heat Use Factors
Residential Commercial
Base use Heat use Base use Heat use
Weather Station Ccf Ccf/HDD Ccf Ccf/HDD
Weather Normalization Adjustment (WNA) Report
On or before June 1 of each year, the company posts on its website at
www.atmosenergy.com/MTXtariffs, in Excel format, a Weather Normalization Adjustment (WNA) Report
to show how the company calculated its WNAs factor during the preceding winter season. Additionally,
on or before June 1 of each year, the company files one hard copy and an Excel version of the WNA
Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that
Division.
Line Pension Employment Pension Employment Adjustment
(a)(b)(c)(d)(e)(f)(g)
1
200,382$ (490,197)$ 951,536$ (3,288,240)$ 72,926$
2 Allocation Factor 46.66%46.66%87.00%87.00%100.00%
3
4 O&M and Capital Allocation Factor 100.00%100.00%100.00%100.00%100.00%
6
7 O&M Expense Factor (WP_F-2.3, Ln 2)80.27%80.27%36.19%36.19%8.73%
8
9
10
11
12
ATMOS ENERGY CORP., MID-TEX DIVISION
MID-TEX RATE REVIEW MECHANISM
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31, 2025
Shared Services Mid-Tex Direct
Line No.Description
Average
Volumes
Current
Rates
Proposed
Rates
Current
Average Bill
Proposed
Average Bill
Amount
Change
Percent
Change
(a)(b)(c)(d)(e)(f)(g)(h)
1 Rate R @ 40.7 Ccf
2 Base Rates:
3 Customer Charge 23.65$ 24.35$ 23.65$ 24.35$ 0.70$
4 Consumption Charge (Ccf)40.7 0.74748$ 1.03839$ 30.44 42.29 11.85
5 Total Base Rates 54.09$ 66.64$ 12.55$ 23.20%
6
7 Gas Cost:
8 Rider GCR Part A (Ccf)40.7 0.26375$ 0.26375$ 10.74$ 10.74$ -$
9 Rider GCR Part B (Ccf)40.7 0.58642$ 0.58642$ 23.88 23.88 -
10 Total Gas Cost 34.62$ 34.62$ -$ 0.00%
11
12 Total Base with Gas Cost 88.71$ 101.26$ 12.55$
13 Rider FF & Rider TAX 0.06509 0.06509 5.77 6.59 0.82 14.15%
14
15 Total Residential Average Bill 94.48$ 107.85$ 13.37$ 14.15%
16
Rate C @ 372.6 Ccf
Total Commercial Average Bill 452.93$ 497.75$ 44.82$ 9.90%
ATMOS ENERGY CORP., MID-TEX DIVISION
MID-TEX RATE REVIEW MECHANISM
AVERAGE BILL COMPARISON - BASE RATES
TEST YEAR ENDING DECEMBER 31, 2025
Line No.Description
Average
Volumes
Current
Rates
Proposed
Rates
Current
Average Bill
Proposed
Average Bill
Amount
Change
Percent
Change
(a)(b)(c)(d)(e)(f)(g)(h)
ATMOS ENERGY CORP., MID-TEX DIVISION
MID-TEX RATE REVIEW MECHANISM
AVERAGE BILL COMPARISON - BASE RATES
TEST YEAR ENDING DECEMBER 31, 2025
33 Rate I at 1263 MMBTU
34 Base Rates:
35 Customer Charge $1,848.75 2,304.50$ 1,848.75$ 2,304.50$ 455.75$
36 Block 1 - Consumption Charge (MMBtu)1,263 0.7678$ 0.9582$ 969.87 1,210.38 240.51
37 Block 2 - Consumption Charge (MMBtu)- 0.5623$ 0.7018$ - - -
38 Block 3 - Consumption Charge (MMBtu)- 0.1206$ 0.1505$ - - -
Total Industrial Average Bill 7,772.42$ 8,514.00$ 741.58$ 9.54%
50
Rate T at 4935 MMBTU
54 Block 1 - Consumption Charge (MMBtu)1,500 0.7678$ 0.9582$ 1,151.70 1,437.30 285.60
55 Block 2 - Consumption Charge (MMBtu)3,435 0.5623$ 0.7018$ 1,931.41 2,410.57 479.16
56 Block 3 - Consumption Charge (MMBtu)- 0.1206$ 0.1505$ - - -
Total Transportation Average Bill 10,026.07$ 11,326.02$ 1,299.96$ 12.97%
Item No. 7.c.
City Council Agenda
Staff Report
Meeting Date: 8/25/2026
Staff Contact: Joseph Cotton
AGENDA ITEM:
Consider/Discuss/Action on a Resolution, concurring with the finding that conditions in
the City warrant the declaration of Stage 1 of the 2026 Water Resource and Emergency
Management Plan, and directing staff to take appropriate action. (Director of Public
Works Joseph Cotton)
SUMMARY:
Discussion and potential action on a Resolution, concurring with the finding that
conditions in the City warrant the declaration of Stage 1 of the 2026 Water Resource
and Emergency Management Plan and directing staff to take appropriate action.
FINANCIAL IMPACT:
There is no financial impact on the city.
BACKGROUND:
During the summer months, the City of Anna has experienced an increase in water
usage by our neighbors and the development community. Until now, the city has never
implemented a water schedule for residential lawns or water use hours for the
development community. Staff has identified the need to implement Stage 1 restrictions
from the city's water conservation plan to help the system better handle the increased
water usage during the summer months.
STRATEGIC CONNECTIONS:
This item supports the City of Anna Strategic Plan, specifically advancing the strategic
outcome area: Resilient.
Anna's mobility and utility infrastructure consistently meets community needs
by:
• Focusing on resiliency and the City's ability to recover from upsets
• Having a robust multi-modal transportation network
• Dependably delivering utility services to the City's neighbors and businesses
ATTACHMENTS:
1. Res - Activate Stage 1 WREMP
RES NO. __________________ - Page 1 of 3
CITY OF ANNA, TEXAS
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS FINDING
CONDITIONS EXIST WARRANTING ENTRY TO STAGE 1 OF THE WATER
RESOURCE AND EMERGENCY MANAGEMENT PLAN AND DIRECTING STAFF TO
TAKE APPROPRIATE ACTION.
WHEREAS, the North Texas Municipal Water District (“NTMWD” or “District”) supplies
the majority of the drinking water to the City of Anna (“City”) utility for distribution to local
inhabitants and businesses; and
WHEREAS, under Texas law, such as Chapter 54 of the Local Government Code and
rules promulgated by the Texas Commission on Environmental Quality (“TCEQ”),
NTMWD and the City have previously adopted a Water Conservation Plan (the “City
Plan”), most recently approved under Ordinance 1203-2026-06, a copy of which is on file
with TCEQ; and
WHEREAS, under the City Plan that includes a “2026 Water Resource and Emergency
Management Plan”, when certain conditions manifest it will automatically activate various
conservation measures such as watering restrictions that are imposed incrementally,
beginning with “Stage 1,” which must be initiated by City staff when imposed by action of
Greater Texas Utility Authority (“GTUA”) action, and also allow for the Mayor, City
Manager, or their official designee to find conditions warrant entry to Stage 1 with the
concurrence of the City Council; and
WHEREAS, the City staff has determined that current conditions of the water supply,
NTMWD operational limitations, storage limitations, flow restrictions, repairs or upgrades
to facilities, or a combination of such factors have created conditions that warrant a
declaration of entry to Stage 1 of the City Plan, to continue until such time as negative
factors abate and allow deactivation, or worsen and trigger escalation into Stage 2
restrictions; and
WHEREAS, under the City Plan, when Stage 1 is activated, staff is required to distribute
and publish public notifications and take other actions to encourage implementation of
conservation measures such as watering restrictions/schedules and other drought
response measures;
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS:
SECTION 1. Findings.
RES NO. __________________ - Page 2 of 3
The findings set forth above are incorporated herein for all purposes as if set forth in full.
• On three days in a single service week in the month of August, 2026, the pumping
demands for the City’s system were in excess of 85% of its rated pumping capacity.
If those three days had been consecutive, then automatic Stage 1 restrictions
would be activated.
• There is substantial probability that the City of Anna’s water demand for all or part
of its delivery system will exceed its delivery capacity if current conditions persist,
as said delivery capacity has potential to be inadequate during extended periods
of low rainfall combined with high summertime demand.
• In consideration of the current state of the overall system, it is reasonable and
prudent to initiate Stage 1 restrictions before a crisis manifests, which could arise
unpredictably from unforeseen need for maintenance, construction, or repair of
major system components create additional infrastructure burdens or disrupt
delivery of essential residential services.
SECTION 2. Staff Direction.
SECTION 3. Savings, Severability, Conflicts.
RES NO. __________________ - Page 3 of 3
All resolutions of the City in conflict with the provisions of this Resolution are repealed to
the extent of that conflict, as are all lesser enactments which would obstruct the
implementation of Stage 1 of the City Plan. In any section, subsection, sentence, clause,
phrase of this Resolution, or its application to a particular set of persons or circumstances,
declared invalid or adjudged unconstitutional by a court of competent jurisdiction, does
not affect the remaining portions of this ordinance, as the various portions and provisions
of this ordinance are severable. The City Council declares that it would have passed each
and every part of this Resolution, notwithstanding the omission of any part that is declared
invalid or unconstitutional.
SECTION 4. Effective Date.
.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Anna, Texas,
on this the 25th day of August 2026.
ATTESTED: APPROVED:
_______________________ _______________________