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HomeMy WebLinkAboutCCpkt2023-04-25AGENDA City Council Meeting Tuesday, April 25, 2023 at 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 04/25/2023 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. 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.Reports. Receive reports from Staff or the City Council about items of community interest. Items of community interest include: expressions 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.Recognition of Anna Police Explorer Post #8200 (Police Lieutenant Josh Devore) 5.Work Session. a.Discuss Property Tax Exemptions. (Budget Manager Terri Doby) 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 April 11, 2023. (City Secretary Carrie Land) b.Review Minutes of the March 8, 2023, Joint Community Development Corporation and Economic Development Corporation Board Meetings. (Director of Economic Development Joey Grisham) c.Review Minutes for the March 20, 2023 Parks Advisory Board Meeting. (Assistant Director of Neighborhood Services Jeff Freeth) d.Review Monthly Financial Report for the Month Ending March 31, 2023. (Budget Manager Terri Doby) 7.Items For Individual Consideration. a.Conduct a Public Hearing/Consider/Discuss/Action on an amendment to uphold, amend, supplement, change, modify or repeal a Specific Use Permit granted under Ord. No. 1014-2022 to allow a Metering Station on one lot on 0.6± acre located on the north side of future Rosamond Parkway, 995± feet west of County Road 368. Zoned: Planned Development (Ord. No. 932-2021). (Director of Development Services Ross Altobelli) b.Acting as the Anna Public Facility Corporation Board of Directors, Consider/Discuss/Act on approving: (a) Memorandum of Understanding with Liberty Multifamily, Inc. for a Senior Living Multifamily Project; and, (b) Resolutions approving the formation of entities--along with corresponding LLC Agreements--to serve in the following capacities in connection with the project: (i) APFC Reserve at Anna GP, LLC, to serve as general partner of a to-be formed partnership that will own and develop the Project; (ii) APFC Reserve at Anna Holdings, LLC, to acquire and hold fee title to the land upon which the Project will be constructed and to enter into a ground lease with the Partnership; and (iii) APFC Reserve at Anna Development, LLC, to serve as co-developer on the Project. (Director of Economic Development Joey Grisham) c.Consider/Discuss/Action on a Resolution authorizing the City Manager to execute Purchase Orders not to exceed $345,000 to Wopac Construction under the Collin County Purchasing Cooperative contract. (Interim Director of Public Works Steven Smith) d.Finley Boulevard (Interim City Manager Ryan Henderson) I. Consider/Discuss/Action on an Ordinance Amending the FY2023 Roadway Impact Fees Fund Budget. II. Consider/Discuss/Action a Resolution authorizing the City Manager to execute a project-specific Purchase Order with HALFF Associates in an amount not exceeding $90,000 for the Design of Finley Blvd. from Sharp Street to the DART Rail line. e.Consider/Discuss/Action on a Resolution accepting the FY 2022 Audit Report. (Finance Director Alan Guard) f.Consider/Discuss/Action on an Ordinance Permitting and Regulating the use of Golf Carts within the City of Anna. (Police Chief Dean Habel) 8.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). Boards and Commissions The Council further reserves the right to enter into Executive Session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 9.Consider/Discuss/Action on any items listed on any agenda - work 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. 10.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 04/21/2023. Carrie L. Land, City Secretary Item No. 4.a. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Dean Habel AGENDA ITEM: Recognition of Anna Police Explorer Post #8200 (Police Lieutenant Josh Devore) SUMMARY: The report is to recognize the achievements of the Anna Police Explorer Post #8200. FINANCIAL IMPACT: This item has no financial impact. BACKGROUND: On Saturday, March 25, the Anna Police Explorers traveled to Houston to compete in the 3rd Annual Houston Police Department Space City Explorer Competition. Anna Explorer Post #8200 took two teams of Explorers to the competition. STRATEGIC CONNECTIONS: This item supports the City of Anna Strategic Plan, specifically advancing the strategic outcome area: Excellent. ATTACHMENTS: 1. Memorandum 23-127 Anna Police Explorer Post #8200 Item No. 5.a. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Terri Doby AGENDA ITEM: Discuss Property Tax Exemptions. (Budget Manager Terri Doby) SUMMARY: All real and tangible personal property located in the state is taxable unless an exemption is required or permitted by the Texas Constitution. Local taxing units can offer a variety of partial or total exemptions from property appraised values. Local option exemptions are one way for cities to lower the property tax bill of their residents. Attached is a presentation on the impacts of property tax exemptions on both Anna neighbors and City revenues and what choices the City of Anna has regarding the structure of our property taxes. FINANCIAL IMPACT: The property tax exemptions offered by the City of Anna will lower the amount of property tax revenues collected. The choice of what exemptions to offer will determine the impact on revenues. BACKGROUND: Prior to FY2023, the City of Anna offered a $30,000 exemption in the Over 65 category. In June of 2022, a 1% ($5,000 minimum) Homestead Exemption was added. STRATEGIC CONNECTIONS: This item supports the City of Anna Strategic Plan, specifically advancing the strategic outcome area: Excellent. ATTACHMENTS: 1. Property Tax Exemption presentation Property Tax Exemptions Taxable Assessed Value10‐year History$0.43$0.51$0.61$0.73$0.89$1.12$1.30$1.47$1.77$2.44 - 0.5 1.0 1.5 2.0 2.5 3.02014 2015 2016 2017 2018 2019 2020 2021 2022 2023Billions Property Tax Exemptions•All real and tangible personal property located in the state is taxable unless an exemption is required or permitted by the Texas Constitution.•Local taxing units can offer a variety of partial or total exemptions from property appraised values.•Local option exemptions are one way for cities to lower the property tax bill of their residents. Property Tax Exemption Types•Residence Homestead (Tax Code Section 11.13)•Cities have option of offering up to 20% but not less that $5,000•Owner must have ownership interest in property and occupy as principal residence•Age 65 or Older or Disabled•Cities have option of offering in an amount not less that $3,000•Disabled person must meet definition of disabled under Federal Old-Age, Survivors and Disability Insurance Act (Social Security)•Eligible disabled person age 65 or older may receive both but not from the same taxing unit City of Anna FY2023 Tax StructureHomestead Exemption Over Age 65 ExemptionDisabled Person ExemptionTotal Tax Rate1%, $5,000 min 30,000 - 0.539750 Property Tax ReductionsFY2023 Total Revenue ReductionNumber of propertiesAverage Savings Per HomeHomestead Exemptions $103,725 3,835 $27.05Over 65 Exemptions $117,558 726 $161.93TOTAL $221,283 4,561 FY2024 Potential ChangesFY2024 Potential ChangeTotal Revenue ReductionChange in Dollars FY23 to FY24Number of properties (FY2023)Average reductionHomestead ExemptionsIncrease to 2% $122,028 $18,303 3,835 $31.83Over 65 ExemptionsRemain same $117,558 - 726 $161.93DisabledAdd at level of Over 65 ($30,000)$45,825 $45,825 283 $161.93TOTAL $285,411 $64,128 4,844 July 1 Adoption Deadline•Section 11.13 (n). Residence Homestead•In addition to any other exemptions provided by this section, an individual is entitled to an exemption from taxation by a taxing unit of a percentage of the appraised value of his residence homestead if the exemption is adopted by the governing body of the taxing unit before July 1 in the manner provided by law for official action by the body. Questions? Item No. 6.a. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Carrie Land AGENDA ITEM: Approve the City Council Meeting Minutes for April 11, 2023. (City Secretary Carrie Land) SUMMARY: Approve the City Council Meeting Minutes for April 11, 2023. FINANCIAL IMPACT: This item has no financial impact. BACKGROUND: Approve the City Council Meeting Minutes for April 11, 2023. STRATEGIC CONNECTIONS: This item has no strategic connection. ATTACHMENTS: 1. CCmin2023-04-11 2. CCmin2023-04-11 Exhibit Regular City Council Meeting Meeting Minutes Tuesday, April 11, 2023 @ 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 04/11/2023 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 Pike called the meeting to order at 6:00 PM. Members Present: Mayor Nate Pike Mayor Pro Tem Lee Miller Deputy Mayor Pro Tem Randy Atchley Council Member Kevin Toten Council Member Stan Carver Council Member Danny Ussery Council Member Pete Cain Members Absent: None 2. Invocation and Pledge of Allegiance. Mayor Pike led the Invocation and Pledge of Allegiance. 3. Neighbor Comments. Jim Luscombe spoke in opposition to the Ferguson Parkway realignment. Martha McDowl noted her opposition to the Ferguson Parkway realignment. 4. Reports. a. Proclamation for Non-Profit Appreciation Day on April 22, 2023. (Mayor Nate Pike) To celebrate and appreciate the work of the nonprofits in our community. 5. Work Session. a. Discuss proposed multiple-family residence zoning and future Ferguson Parkway realignment (Pecan Grove). (Director of Development Services Ross Altobelli) Discussed rezoning a portion of the land area that is part of the original Pecan Grove zoning (Ord. No. 2002-27A) from single-family residential (6,000 s.f. and 7,200 s.f. lots) to MF-1 Multiple-Family Residential - Medium Density. The proposed zoning would allow for one- and two-unit buildings consisting of one-, two-, and three-bedroom unit types on a single lot. The proposed development layout would also include a modification to the future alignment of Ferguson Parkway, shifting the proposed right-of-way to the east as it traverses through the property and ultimately creating a new intersection at W. Foster Crossing Road. Anthony Davidson gave a presentation. b. Discuss Golf Cart Usage and the Prospect of a Future City Ordinance (Police Chief Dean Habel & City Attorney Clark McCoy) Chief Habel Discussed golf cart usage and the prospect of a future City Ordinance. 6. Consent Items. MOTION: Mayor Pro Tem Miller moved to approve items 6.a.-m. Council Member Atchley seconded. Motion carried 7-0. a. Approve City Council Meeting Minutes for March 28, 2023. (City Secretary Carrie Land) b. Review minutes of the March 6, 2023 Planning & Zoning Commission Meeting. (Director of Development Services Ross Altobelli) c. Approve a Resolution regarding the Burnco Addition, Block A, Lot 1, Final Plat. (Director of Development Services Ross Altobelli) The Final Plat is in conformance with the city’s Subdivision Regulations and Zoning Ordinances. The Planning and Zoning Commission recommended approval subject to additions and/or alterations to the engineering plans as required by the Public Works Department. Permanent concrete batch plant on one lot on 26.3± acres, located on the east side of County Road 419, 350± feet north of E. Foster Crossing Road. Zoned I-2 Heavy Industrial District with Specific Use Permit for a permanent concrete batching plant (Ord. No. 995-2022). The purpose for the Final Plat is to dedicate right-of-way, lot and block boundaries, and easements necessary for the permanent concrete batch plant development. The Final Plat is in conformance with the city’s Subdivision Regulations and Zoning Ordinances. The Planning and Zoning Commission recommended approval subject to additions and/or alterations to the engineering plans as required by the Public Works Department A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING BURNCO ADDITION, BLOCK A, LOT 1, FINAL PLAT. d. Approve a Resolution regarding the Cedar Ridge Estates, Phase 1, Final Plat. (Director of Development Services Ross Altobelli) The Final Plat is in conformance with the city’s Subdivision Regulations and Zoning Ordinances. The Planning and Zoning Commission recommended approval subject to additions and/or alterations to the engineering plans as required by the Public Works Department. 121 single-family dwelling, detached lots, six common area lots, and lift station lot on 39.7± acres located at the southwest corner of County Road 427 and County Road 425 (Future Leonard Avenue). Zoned SF-72 Single- Family Residential District. The purpose for the Final Plat is to dedicate right-of-way, lot and block boundaries, and easements necessary for the single-family residence development. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING CEDAR RIDGE ESTATES PHASE 1, FINAL PLAT. e. Approve a Resolution regarding the Church Street Addition, Block A, Lots 1-6, Final Plat. (Director of Development Services Ross Altobelli) The Final Plat is in conformance with the city’s Subdivision Regulations. The Planning and Zoning Commission recommended approval subject to additions and/or alterations following Collin County’s On-Site Sewage Facility (OSSF) review and approval. Six lots on 7.0± acres located at the southeast corner of Sterling Street and N. Church Street. Located in the Extraterritorial Jurisdiction (ETJ). The purpose for the Final Plat is to dedicate right-of-way, lot and block boundaries, and easements necessary for future development. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING CHURCH STREET ADDITION, BLOCK A, LOTS 1-6, FINAL PLAT f. Approve a Resolution regarding the Gateway at Buddy Hayes, Block A, Lots 1 & 2, Block B, Lot 1, and Block C, Lot 1, Final Plat. (Director of Development Services Ross Altobelli) The Final Plat is in conformance with the adopted Planned Development standards and with the city’s Subdivision Regulations and Zoning Ordinances. The Planning and Zoning Commission recommended approval subject to additions and/or alterations to the engineering plans as required by the Public Works Department. Four vacant lots on 64.8± acres located on the east side of S. Central Expressway, 1,250± feet south of W. White Street. Zoned Planned Development (Ord. No. 1024- 2022). The purpose for the Final Plat is to dedicate right-of-way, lot and block boundaries, and easements necessary for the commercial and multiple- family residence development. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING GATEWAY AT BUDDY HAYES, BLOCK A LOTS 1 & 2, BLOCK B, LOT 1, AND BLOCK C, LOT 1, FINAL PLAT. g. Approve a Resolution regarding the Gateway at Buddy Hayes, Block A, Lot 2, Revised Concept Plan. (Director of Development Services Ross Altobelli) The Revised Concept Plan is in conformance with the adopted Planned Development standards and with the city’s Subdivision Regulations and Zoning Ordinances. The Planning and Zoning Commission recommended approval subject to additions and/or alterations to the engineering plans as required by the Public Works Department. Multiple-family residences on one lot on 13.2± acres located on the west side of Buddy Hayes Boulevard, 1,175± feet south of W. White Street. Zoned: Planned Development (Ord. No. 1024-2022). The purpose of the revised concept plan is to show the revised conceptual layout and related site improvements associated with the future MF-2 multiple-family residential development. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING GATEWAY AT BUDDY HAYES, BLOCK A, LOT 2, REVISED CONCEPT PLAN. h. Approve a Resolution regarding the E. White Street/Leonard Trails Commercial, Block A, Lots 1, 2, 3, & 4, Minor Plat. (Director of Development Services Ross Altobelli) The Minor Plat is in conformance with the adopted Planned Development standards and with the city’s Subdivision Regulations and Zoning Ordinances. The Planning and Zoning Commission recommended approval subject to additions and/or alterations to the engineering plans as required by the Public Works Department. Four vacant lots on 8.5± acres located on the south side of E. White Street, 500± feet east of S. Interurban Street. Zoned Planned Development (Ord. No. 1027-2023-01). The purpose for the Minor Plat is to dedicate right of way and lot and block boundaries necessary to plat the property. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING E. WHITE STREET/LEONARD TRAILS COMMERCIAL, BLOCK A, LOTS 1, 2, 3, & 4, MINOR PLAT i. Approve a Resolution regarding the Waldrip Switchyard Addition, Block A, Lot 1, Final Plat. (Director of Development Services Ross Altobelli) The Final Plat is in conformance with the city’s Subdivision Regulations. The Planning and Zoning Commission recommended approval subject to additions and/or alterations following Collin County’s On-Site Sewage Facility (OSSF) review and approval. One lot on 4.2± acres located on the south side of County Road 429, 1,920± feet east of County Road 376. Zoned: Extraterritorial Jurisdiction (ETJ). The purpose for the Final Plat is to dedicate right-of-way, lot and block boundaries, and easements necessary for future development. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING WALDRIP SWITCHYARD ADDITION, BLOCK A, LOT 1, FINAL PLAT j. Approve a Resolution regarding the Slayter Creek Park (Anna ISD Park Addition, Lot 2), Site Plan. (Director of Development Services Ross Altobelli) The Site Plan is in conformance with the city’s Subdivision Regulations and Zoning Ordinances. The Planning and Zoning Commission recommended approval subject to additions and/or alterations to the engineering plans as required by the Public Works Department. Public Park on one lot on 46.7± acres located on the south side of Rosamond Parkway, 1,190± feet west of N. Powell Parkway. Zoned Agricultural District (AG). The purpose of the Site Plan is to show the proposed parking lot expansion, sports court additions, and related site improvements. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING SLAYTER CREEK PARK (ANNA ISD PARK ADDITION, LOT 2), SITE PLAN. k. Approve a Resolution regarding the Natural Springs Park (Autozone Addition, Block A, Lot 2), Site Plan. (Director of Development Services Ross Altobelli) The Site Plan is in conformance with the city’s Subdivision Regulations and Zoning Ordinances. The Planning and Zoning Commission recommended approval subject to additions and/or alterations to the engineering plans as required by the Public Works Department. Public Park on one lot on 19.3± acres located on the south side of W. White Street, 1,255± feet east of S. Ferguson Parkway. Zoned C-1 Restricted Commercial District and SF-E Single-Family Residential - Large Lot. The purpose of the Site Plan is to show the proposed parking lot expansion and related site improvements. The parking lot expansion includes 47 new parking spaces for the park. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING NATURAL SPRINGS PARK (AUTOZONE ADDITION, BLOCK A, LOT 2), SITE PLAN. l. Approve a Resolution authorizing the submission of the City’s application for the Texas Community Development Block Grant – Downtown Revitalization Program (Economic Development Coordinator Kimberly Garduno) The Revitalization of Downtown Anna is considered a top priority as outlined by City Council. City staff received notification of two (2) grants that provide infrastructure funding from the Texas Department of Agriculture (TDA). After a preliminary review, the City of Anna has potential to rank high in the selection process and therefore has a solid chance to receive funding for the Downtown Revitalization Program grant. A RESOLUTION OF THE CITY OF ANNA, TEXAS, AUTHORIZING THE SUBMISSION OF A TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION TO THE TEXAS DEPARTMENT OF AGRICULTURE FOR THE DOWNTOWN REVITALIZATION PROGRAM FUND. m. Approve a Resolution authorizing the submission of the City’s application for the Texas Community Development Block Grant – Community Development Fund (Economic Development Coordinator Kimberly Garduno) The Revitalization of Downtown Anna is considered a top priority as outlined by City Council. City staff received notification of two (2) grants that provide infrastructure funding from the Texas Department of Agriculture (TDA). After a preliminary review, the City of Anna has potential to rank high in the selection process and therefore has a solid chance to receive funding for TDA’s 2023/2024 Texas Community Development Block Grant (TxCDBG) Community Development Fund (CD). A RESOLUTION OF THE CITY OF ANNA, TEXAS, AUTHORIZING THE SUBMISSION OF A TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION TO THE TEXAS DEPARTMENT OF AGRICULTURE FOR THE COMMUNITY DEVELOPMENT FUND. 7. Items For Individual Consideration. a. Consider/Discussion/Action on a Resolution approving a Development Agreement with Think Big Investments, LLC regarding the development of Woodland Estates, a multiple-family residence development, subject to approval as to legal form of said development agreement by the City's legal counsel. (Director of Development Services Ross Altobelli) The applicant withdrew a proposed annexation and zoning amendment request which was recommended for denial by the Planning & Zoning Commission on February 6, 2023 due to the proposed zoning not being in conformance with the Future Land Use Plan of the Anna2050 Comprehensive Plan. The proposed Development Agreement allows for the property owner to establish land use entitlements and restrictions as part of an annexation request. The applicant requested to enter into a Pre-annexation agreement with the city in order to adopt development regulations and development standards for 16.1 acres of land generally located on the south side of County Road 427, 530± east of County Road 425. The property shall be developed as generally depicted on the Concept Plan, and includes medium-density, multiple-family residences referred to as Woodland Estates. The two-family dwelling units consisting of one-bedroom, two-bedroom, and three-bedroom units are to be developed in accordance with the MF-1 Multiple-Family Residential - Medium Density District of the Zoning Ordinance and applicable City Regulations, except as amended and modified in the Development Regulations and in the Development Agreement. The overall multiple-family development will have a maximum of 180 units. City staff worked with the development team on the proposed land use entitlements and Concept Plan which are listed within the Development Regulations. MOTION: Mayor Pike moved to approve. Mayor Pro Tem Miller seconded. Motion carried 7-0. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING THE WOODLAND ESTATES DEVELOPMENT AGREEMENT WITH THINKK BIG INVESTMENTS, LLC. RELATING TO DEVELOPMENT OF PROPERTY FOR A MULTIPLE-FAMILY RESIDENCE PLANNED DEVELOPMENT b. Consider/Discuss/Action on a Resolution approving an Impact Fee Reimbursement Agreement for sanitary sewer infrastructure by and between the City of Anna, Texas, Ashton Woods, and Lackland Holdings. (Interim Assistant City Manager Greg Peters, P.E.) Ashton Woods is the developer of the Coyote Meadows Development, located southeast of the intersection of State Highway 5 and Rosamond Parkway. Lackland Holdings is the developer of the Cedar Ridge Development located at the southeast corner of County Road 427 and County Road 425. Both developers are looking to partner with the City of Anna to construct a regional sanitary sewer lift station which will provide sanitary sewer service to properties east of State Highway 5 which are currently without sewer access. The existing Sweetwater Crossing lift station will be taken off-line and removed as a part of this project, as the new regional solution will be able to serve the existing homes in Sweetwater. MOTION: Mayor Pro Tem Miller moved to approve. Council Member Toten seconded. Motion carried 7-0. A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE MAYOR TO EXECUTE A WASTEWATER IMPACT FEE REIMBURSEMENT AGREEMENT WITH STARLIGHT HOMES, L.L.C., AND SAGINAW 106, LTD., FOR THE CONSTRUCTION OF PUBLIC SANITARY SEWER IMPROVEMENTS, IN A FORM APPROVED BY THE CITY ATTORNEY; AND PROVIDING FOR AN EFFECTIVE DATE. c. Consider/Discuss/Action adopting a Resolution determining an area of the City that contains conditions which are detrimental to the community and constitutes a slum and blighted area. (Economic Development Coordinator Kimberly Garduno) The Revitalization of Downtown Anna is considered a top priority as outlined by the City Council. City staff received notification of two (2) grants that provide infrastructure funding from the Texas Department of Agriculture (TDA). After a preliminary review, the City of Anna has the potential to rank high in the selection process and therefore has a solid chance to receive funding for the Downtown Revitalization Program grant. MOTION: Council Member Toten moved to approve. Mayor Pro Tem Miller seconded. Motion carried 7-0. A RESOLUTION OF THE CITY OF ANNA, TEXAS, DETERMINING THAT AN AREA OF THE CITY CONTAINS CONDITIONS WHICH ARE DETRIMENTAL TO THE PUBLIC HEALTH, SAFETY, AND WELFARE OF THE COMMUNITY AND CONSTITUTES A SLUM AND BLIGHTED AREA d. First Reading of a Resolution approving a project of the Anna Community Development Corporation to provide for matching funds for a Community Development Block Grant Program, Downtown Revitalization Program, for various improvements. (Economic Development Coordinator Kimberly Garduno) e. Second Reading of a Resolution approving a project of the Anna Community Development Corporation to provide for matching funds for a Community Development Block Grant Program, Downtown Revitalization Program, for various improvements. (Economic Development Coordinator Kimberly Garduno) Two readings of the Resolution are required prior to approving a project of the Anna Community Development Corporation. The resolution is included in the proceeding item approving the CDC providing matching funds for the Downtown Revitalization Project. The CDC Board approved the expenditure of funds on April 6, 2023. f. Consider/Discuss/Action on a Resolution approving a project of the Anna Community Development Corporation to provide matching funds for a Community Development Block Grant Program, Downtown Revitalization Program, for various improvements. (Economic Development Coordinator Kimberly Garduno) Members of the EDC/CDC Board approved the expenditure of $75,000 in connection with the City of Anna's application for a grant from the Texas Department of Agriculture's Texas Community Development Block Grant Program - Downtown Revitalization Fund. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS APPROVING AN ANNA COMMUNITY DEVELOPMENT CORPORATION PROJECT TO PROVIDE MATCHING FUNDS FOR A TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION TO THE TEXAS DEPARTMENT OF AGRICULTURE FOR THE DOWNTOWN REVITALIZATION PROGRAM FUND g. First Reading of a Resolution approving a project of the Anna Community Development Corporation to provide for matching funds for a Community Development Block Grant Program, Community Development Fund, for street improvements. (Economic Development Coordinator Kimberly Garduno) h. Second Reading of a Resolution approving a project of the Anna Community Development Corporation to provide for matching funds for a Community Development Block Grant Program, Community Development Fund, for street improvements. (Economic Development Coordinator Kimberly Garduno) Two readings of the Resolution are required prior to approving a project of the Anna Community Development Corporation. The resolution is included in the proceeding item approving the CDC providing matching funds for the Downtown Revitalization Project. The CDC Board approved the expenditure of funds on April 6, 2023. i. Consider/Discuss/Action on a Resolution approving a project of the Anna Community Development Corporation to provide for matching funds for a Texas Community Development Block Grant Program, Community Development Fund, for street improvements. (Economic Development Coordinator Kimberly Garduno) Members of the EDC/CDC Board approved the expenditure of $75,000 in connection with the City of Anna's application for a grant from the Texas Department of Agriculture's Texas Community Development Block Grant Program - Community Development Fund. MOTION: Mayor Pro Tem Miller moved to approve. Council Member Cain seconded. Motion carried 7-0. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS APPROVING AN ANNA COMMUNITY DEVELOPMENT CORPORATION PROJECT TO PROVIDE MATCHING FUNDS FOR A TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION TO THE TEXAS DEPARTMENT OF AGRICULTURE FOR THE COMMUNITY DEVELOPMENT FUND j. Consider/Discuss/Action on a Resolution approving and authorizing the City Manager to execute a quote from Musco for the installation of sports lighting on the practice fields at Slayter Creek Park. (Parks Planning and Development Manager Dalan Walker) The City received a quote from Musco Lighting under BuyBoard contract number 677- 22 for the installation of sports lighting on two practice fields at the south end of Slayter Creek Park. The quote is in the amount of $684,511. MOTION: Council Member Toten moved to approve. Mayor Pike seconded. Motion carried 7-0. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A CONSTRUCTION AGREEMENT WITH MUSCO SPORTS LIGHTING, LLC TO INSTALL ATHLETIC FIELD LIGHTING FOR TWO PRACTICE FIELDS AT SLAYTER CREEK PARK. k. Consider/Discuss/Action on a Resolution approving and authorizing the Mayor Pro Tem to execute the AnaCapri Public Improvement District Improvement Area #1 Reimbursement Agreement, and resolving other matters related thereto. (Director of Economic Development Joey Grisham) Mayor Pike recused himself at 7:36 PM. Staff recommended that the City Council approve this item that includes a Resolution approving a Reimbursement Agreement with Megatel for the AnaCapri Public Improvement District to develop the Improvement Area #1 Assessed Property and be reimbursed for a specified portion of the public improvement projects using the Bond Proceeds. MOTION: Council Member Toten moved to approve. Council Member Carver seconded. Motion carried 6-0. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A RESOLUTION ADOPTING THE IMPROVEMENT AREA #1 REIMBURSEMENT AGREEMENT FOR ANACAPRI PUBLIC IMPROVEMENT DISTRICT 8. 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). Utilities Facilities 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). Boards and Commissions MOTION: Council Member Carver moved to enter closed session. Council Member Cain seconded. Motion carried 6-0. Mayor Pro Tem Miller recessed the meeting at 7:40 PM. Mayor Pike returned to the meeting. Mayor Pike reconvened the meeting at 8:40 PM. 9. Consider/Discuss/Action on any items listed on any agenda - work 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. 10. Adjourn. Mayor Pike adjourned the meeting at 8:40 PM. Approved on the 25th day of April 2023 ______________________________ ATTEST: Mayor Nate Pike ______________________________ City Secretary Carrie L. Land Item No. 6.b. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Joey Grisham AGENDA ITEM: Review Minutes of the March 8, 2023, Joint Community Development Corporation and Economic Development Corporation Board Meetings. (Director of Economic Development Joey Grisham) SUMMARY: Approve FINANCIAL IMPACT: This item has no financial impact. BACKGROUND: Approve STRATEGIC CONNECTIONS: This item has no strategic connection. ATTACHMENTS: 1. March 8 2023 CDC EDC Joint Meeting Minutes_Signed Item No. 6.c. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Jeff Freeth AGENDA ITEM: Review Minutes for the March 20, 2023 Parks Advisory Board Meeting. (Assistant Director of Neighborhood Services Jeff Freeth) SUMMARY: Review Minutes for the March 20, 2023 Parks Advisory Board Meeting. FINANCIAL IMPACT: Not applicable BACKGROUND: Review Minutes for the March 20, 2023 Parks Advisory Board Meeting. STRATEGIC CONNECTIONS: This item supports the City of Anna Strategic Plan, specifically advancing: Goal 4 High Performing Professional City Objective: Have open and transparent City government that is trusted by the neighbors (3). Value to Neighbors: Opportunities to become involved in the City’s governance process (6). ATTACHMENTS: 1. 3-20-2023 Park Advisory Board Meeting Minutes (signed) Item No. 6.d. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Terri Doby AGENDA ITEM: Review Monthly Financial Report for the Month Ending March 31, 2023. (Budget Manager Terri Doby) SUMMARY: The City of Anna's financial policies require the publication of a financial report monthly. This report covers the financial performance for Fiscal Year 2023 through March 31, 2023. 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 financial condition of the City remains strong and the reported funds adhere to fund balance requirements. FINANCIAL IMPACT: Information only. BACKGROUND: The FY2023 Budget was adopted on September 13, 2022. STRATEGIC CONNECTIONS: This item supports the City of Anna Strategic Plan, specifically advancing the strategic outcome area: Excellent. ATTACHMENTS: 1. FY2023 City Council Monthly Financial Report March 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 FY2023 FY2023 % Budget YTD REVENUES General Fund Property Taxes 9,418,264$ 9,643,781$ 102.4%Property taxes are collected in January and February. Sales Tax 4,293,100 1,628,138 37.9%Remitted from the Comptroller with lag time of 30 - 60 days; Includes five months of remittances. Franchise and Local Taxes 825,000 - 0.0%Payments are generally quarterly. Charges for Services 273,000 378,240 138.5% Fines 300,000 156,229 52.1% Permits, Licenses and Fees 4,305,000 1,988,739 46.2% Investment Income 50,000 62,475 125.0% Other Revenues 16,300 83,683 513.4% Revenue Total 19,480,664$ 13,941,285$ 71.6%With 50.0% of the year expired, revenues recorded are at 71.6% of budget. EXPENDITURES General Fund Expense Total 20,206,379$ 8,746,795$ 43.3%With 50.0% of the year expired, expenses are 43.3% of budget. . Utility Fund REVENUES Water Sales 6,510,000$ 3,617,501$ 55.6% Wastewater Charges 5,640,263 2,632,583 46.7% Sanitation Revenue 1,760,000 1,122,961 63.8% Other Charges for Services 802,000 397,975 49.6% Permits, Licenses and Fees 461,000 602,017 130.6% Investment Income 20,000 27,882 139.4% Other Revenues 7,200 1,092 15.2% Utility Fund Total 15,200,463$ 8,402,011$ 55.3%With 50.0% of the year expired, revenues recorded in the General Ledger are at 55.3% of budget. EXPENDITURES Administration 1,801,749$ 912,420$ 50.6% Water 5,522,940 3,590,558 65.0%Includes twice yearly debt service payments; Increases in revenues results in increased expenses Wastewater 4,772,345 3,609,093 75.6%Includes twice yearly debt service payments including debt service for wastewater treatment plant Sanitation 1,760,000 1,024,644 58.2%Increases in revenues results in increased expenses Utility Billing 568,445 216,215 38.0% Utility Fund Total 14,425,479$ 9,352,930$ 64.8%With 50.0% of the year expired, expenses are 55.3% of budget but within historical norms. CITY OF ANNA GENERAL & UTILITY FUNDS DASHBOARD Through March 31, 2023 Favorable / Unfavorable % Change 2022-23 Collections from 2021-22 Collections Monthly Prior Year Monthly October 522,386$ 25.2% 417,343$ November 542,873 12.3% 483,556 December 622,388 12.7% 552,138 January 454,358 4.4% 435,037 February 463,016 11.3% 416,044 March 583,700 April 494,472 May 511,309 June 583,874 July 570,950 August 533,224 September 575,011 2,605,021$ 6,156,658$ Budget: 6,753,000 38.6% 4,300,000 CITY OF ANNA Schedule of Sales Tax Collections For the month February 28, 2023 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 Monthly Sales Tax Collections: 3 Year Comparison FY2020-21 FY2021-22 FY2022-23 Fiscal Year 2022-23 Fiscal Year 2021-22 Monthly Monthly October 1 85 November 39 81 December 17 52 January 16 105 February 32 57 March 129 285 April 101 May 43 June 81 July 19 August 131 September 31 234 1,071 % Budget FY2023 Budget: 1,100 21.3% CITY OF ANNA Building Permits Issued Thru the month March 31, 2023 0 50 100 150 200 250 300 Monthly Building Permits Received: 2 Year Comparison FY2022-23 FY2021-22 Item No. 7.a. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Ross Altobelli AGENDA ITEM: Conduct a Public Hearing/Consider/Discuss/Action on an amendment to uphold, amend, supplement, change, modify or repeal a Specific Use Permit granted under Ord. No. 1014-2022 to allow a Metering Station on one lot on 0.6± acre located on the north side of future Rosamond Parkway, 995± feet west of County Road 368. Zoned: Planned Development (Ord. No. 932-2021). (Director of Development Services Ross Altobelli) SUMMARY: At their March 14, 2023 meeting, City Council voted to call a public hearing to consider an amendment to either uphold, amend, supplement, change, modify or repeal a Specific Use Permit granted under Ord. No. 1014-2022 to allow a Metering Station. Zoned: Planned Development (Ord. No. 932-2021). The purpose of the metering station is a facility at which natural gas flows are regulated and recorded and/or modified. This location is along an existing Atmos-owned gas line/facilities easement. FINANCIAL IMPACT: This item has no financial impact. BACKGROUND: At the April 3, 2023 Planning and Zoning Commission meeting the Commission voted unanimously (6-0) to recommend repeal of the Specific Use Permit. STRATEGIC CONNECTIONS: This item has no strategic connection. ATTACHMENTS: 1. Locator Map 2. PZ - STAFF REPORT (Zoning) - Zoning Amendment 3. Ord 1014-2022 Gas Metering Station Specific Use Permit (SUP) (3) (1) TIMBERSHADEDRWILLOW TERRACE LN W COUNTY ROAD 370 SANDPEBBLECIRLAZYGROVE D RGL A D E S P RIN G LN CROSSING DRURBAN WAYCopyright nearmap 2015 Subject Property 200' Notice Boundary City Limits ETJ ¯ 0 200 400100 Feet March 2023 H:\Notification Maps\Notification Maps\ Zoning Amendment CITY OF ANNA PLANNING & ZONING COMMISSION April 3, 2023 Public Hearing: Review Specific Use Permit for Gas Metering Station Applicant: City of Anna DESCRIPTION: Conduct a Public Hearing/Consider/Discuss/Action on an amendment to uphold, amend, supplement, change, modify or repeal a Specific Use Permit granted under Ord. No. 1014-2022 to allow a Metering Station on one lot on 0.6± acre located on the north side of future Rosamond Parkway, 995± feet west of County Road 368. Zoned: Planned Development (Ord. No. 932-2021). HISTORY: The specific use permit request and accompanying site plan were submitted to Development Services September 7, 2022. The Planning and Zoning Commission held a public hearing for the specific use permit at their October 3, 2022 meeting. After questioning the applicant’s representative, the Commission tabled the item to give the applicant more time to provide information. The Commission held a second public hearing at their November 7, 2022 meeting and voted 6-0 to deny the request and take no action on the site plan. Factors discussed during the public hearing include the proximity to the existing single-family residential neighborhood (Urban Crossing), impact of noise to the adjacent residential homes, and stating the location of the land use would be better situated in less populated areas. City Council opened the public hearing at their October 11, 2022 meeting and tabled the item to the November 8, 2022 meeting to receive the Planning & Zoning Commission’s recommendation. After the public hearing was held, City Council voted 6-0 to approve both the specific use permit and site plan. REMARKS: At their March 14, 2023 meeting, City Council voted to call a public hearing to consider an amendment to either uphold, amend, supplement, change, modify or repeal a Specific Use Permit granted under Ord. No. 1014-2022 which allow a Metering Station. The purpose of the metering station is a facility at which natural gas flows are regulated and recorded and/or modified. This location is along an existing 50’ wide Atmos-owned gas line/facilities easement. AGENDA ITEM – SUP FOR GAS METERING STATION PAGE 2 OF 3 10/03/2022 The metering station is currently proposed on a common area lot within the Villages of Hurricane Creek – North. The city’s Zoning Ordinance requires mechanical equipment in nonresidential uses to be screened from rights-of-way and from adjacent residential properties. The approved site plan for the metering station illustrated a eight-foot max. high brick masonry screening wall set back 44± feet from the W. Rosamond Parkway pavement and surround the gas metering station facility. Additionally, per the city’s Landscape Regulations, the common area lot is required to have one tree per 40 linear feet along W Rosamond Parkway. Surrounding Land Use and Zoning North Urban Crossing Subdivision zoned SF-E East Undeveloped remainder of common area lot. Villages of Hurricane Creek – North, Phase 1 zoned Planned Development (Ord. No. 932-2021) South Undeveloped land. Villages of Hurricane Creek – North, Phase 2 zoned Planned Development (Ord. No. 932-2021) West Under construction, single-family dwellings, detached. Villages of Hurricane Creek – North, Phase 1 zoned Planned Development (Ord. No. 932-2021) Specific Use Permit The Zoning Ordinance designates certain uses as requiring a SUP to allow the Planning & Zoning Commission and City Council to review requests on a case-by-case basis as to its probable effect on the adjacent property and the community welfare. The request may be approved, approved with conditions, or denied as the findings indicate appropriate with regard to the health, safety and welfare of the general public. ISSUES: Questions have been raised about the safety of a gas metering station based on the location and the storage and injection of chemicals. As part of an SUP, the Commission may want to consider recommending stipulations to; a. Increase the safety of the location along a major road such as requiring an enhanced wall or bollards within the lease area. AGENDA ITEM – SUP FOR GAS METERING STATION PAGE 3 OF 3 10/03/2022 b. Enhance safety through prohibiting the storage of mercaptan at this site. RECOMMENDATION: The Planning & Zoning Commission shall provide City Council a recommendation to: 1. Uphold the SUP as adopted by Ord. No. 1014-2022 2. Supplement, change, or modify the SUP 3. Repeal Ord. No. 1014-2022 CITY OF ANNA, TEXAS Villages of Hurricane Creek, North, Block N, Lot 1X) ORDINANCE NO. 1014 - ,2(3P-2 AN ORDINANCE OF THE CITY OF ANNA, TEXAS AMENDING THE CITY'S COMPREHENSIVE PLAN, ZONING MAP, AND ZONING ORDINANCE AND APPROVING A SPECIFIC USE PERMIT ON CERTAIN PROPERTY AS DESCRIBED HEREIN; PROVIDING FOR SAVINGS, REPEALING AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; PROVIDING FOR A PENALTY CLAUSE NOT TO EXCEED $2,000 OR THE HIGHEST PENALTY AMOUNT ALLOWED BY LAW, WHICHEVER IS LESS; AND, PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the City of Anna, Texas ("City") has previously adopted ordinances, rules and regulations governing the zoning in the City; and WHEREAS, the City has received a requested specific use permit from MM Anna 325 LLC on Property identified as Aboveground Facilitates Easement as shown on Exhibit A ("Property") attached hereto and incorporated herein for all purposes as if set forth in full; and WHEREAS, said Property was zoned Planned Development (Ordinance No. 932-2021); and WHEREAS, the Planning and Zoning Commission of the City and the City Council of the City of Anna ("City Council") have given the requisite notices by publication and otherwise and have held the public hearings as required by law and afforded a full and fair hearing to all property owners and generally to all persons interested in and situated in the affected area and in the vicinity thereof, the City Council has concluded that the Zoning Ordinance of the City should be amended as set forth below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS THAT: Section 1. Recitals Incorporated The above recitals are incorporated herein by reference for all purposes. Section 2. Zoning Change The Comprehensive Zoning Ordinance of the City of Anna, Texas, is amended by approving a Specific Use Permit on the tract described in Exhibit A, attached hereto and made an integral part of this ordinance, and approving the Specific Use Permit in the Planned Development zoning district to allow the use of gas metering station as depicted in the Site Plan on the attached Exhibit B. Section 3. Official Zoning Map The official Zoning Map of the City shall be corrected to reflect the change in zoning described herein. Section 4. Savings, Repealing and Severability Clauses It is hereby declared to be the intention of the City Council that the words, sentences, paragraphs, subdivisions, clauses, phrases, and provisions of this ordinance are severable and, if any phrase, sentence, paragraph, subdivision, clause, or provision of this ordinance shall be declared unconstitutional or otherwise invalid or inapplicable by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality, invalidity or inapplicability shall not affect any of the remaining words, sentences, paragraphs, subdivisions, clauses, phrases, or provisions of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional, invalid or inapplicable words, sentences, paragraphs, subdivisions, clauses, phrases, or provisions. Further, all ordinances or parts of ordinances in force when the provisions of this ordinance become effective that are consistent and do not conflict with the terms and provisions of this ordinance are hereby ratified to the extent of such consistency and lack of conflict, and all ordinances or parts of ordinances in force when the provisions of this ordinance become effective that are inconsistent or in conflict with the terms and provisions contained in this ordinance are hereby repealed only to the extent of any such conflict. Notwithstanding any provision of this ordinance or the Anna Code, it is intended that this ordinance fully comply with Chapter 3000 of the Texas Government Code Chapter 3000") and this ordinance shall and the City Code shall be interpreted in a manner to comply with Chapter 3000. For the purposes of this ordinance, any provision of the City Code that does not comply with Chapter 3000 shall be deemed to have been excluded and not a part of this ordinance. Section 5. Penalty Any violation of any of the terms of this ordinance, whether denominated in this ordinance as unlawful or not, shall be deemed a misdemeanor. Any person convicted of any such violation shall be fined in an amount not to exceed $2,000 for each incidence of violation. Each day a violation exists is considered a separate offense and will be punished separately. Section 6. Publication of the Caption and Effective Date This ordinance shall be effective upon its passage by the City Council, approval by the Mayor, and posting and/or publication, if required by law, of its caption. The City Secretary is hereby authorized and directed to implement such posting and/or publication. PASSED by the City Council of the City of Anna, Texas this 8th day of November 2022. ATTESTED: o iu„PPROVE D: Carrie L. Land, City Secretary ~ate^- e, Mayor SpecificGasMeteringStation m) 4.- ; -=t3QROSSING UR ter...-. ...A.s _.-a-.r.SMl i_ A`! _ ice.. NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY DOCUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. Line: NT201 R/W#: NT201 179-1 Collin County Jack McFarland 02/08/2022 PIPELINE AND ABOVEGROUND FACILITIES EASEMENT WITH ACCESS EASEMENT) THE STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF COLLIN § That for and in consideration of the sum of TEN DOLLARS ($10.00), and other good and valuable consideration paid by Atmos Energy Corporation, a Texas and Virginia corporation with its principal office at 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, together with its successors and assigns (said entity and its successors and assigns are herein collectively called Grantee"), the receipt of which is hereby acknowledged, the undersigned (herein called "Grantor" whether one or more), hereby grants, sells and conveys unto Grantee, a free and unobstructed right of way and exclusive easement for the purpose of: Pipeline Easement i) laying, constructing, operating, maintaining, inspecting, repairing, replacing, changing the size of, relocating and changing the route or routes of, abandoning in place and removing at will, in whole or in part, a pipeline, which shall not exceed twelve inches (12") in nominal diameter excluding any protective coating or wrapping at the time of initial installation (with the right to increase or decrease the diameter during any subsequent replacement), and up to two (2) additional pipelines which shall not exceed forty-two inches (42") in nominal diameter each, excluding any protective coating or wrapping, following the installation of the initial pipeline (collectively, the "Pipelines"), and the appurtenances thereto, for the transportation of oil, natural gas (including renewable/biogas), carbon dioxide, synthetic liquid or gaseous fuels, and any refined or blended products of the same including the constituent elements thereof), together with water, cleansers, and other products necessary for the testing, inspection, maintenance, and operation of the pipeline(s), and with such above or below ground drips, valves, fittings, taps, saddles, meters, pressure relief facilities, communication devices, odorization equipment, aerial and pipeline markers, electrical service, anodes, rectifier poles, and other devices for the control of pipeline corrosion, and bull guards or similar Page 1 IOL Aboveground Easement w pipeline and access (version 12.15.21) physical protection, as may be necessary or desirable in the operation of said lines, over, across, under and upon the area described as "Pipeline Easement" on Exhibit A" attached hereto and made a part hereof (collectively, the "Pipeline Easement Area") All Pipelines within the Pipeline Easement Area shall be initially installed at a minimum depth of thirty-two inches (32"); and Aboveground Facilities Easement ii) laying, constructing, operating, maintaining, inspecting, repairing, replacing, changing the size of, relocating and changing the route or routes of, abandoning in place and removing at will, in whole or in part, aboveground and underground Pipelines, and the appurtenances thereto, for the transportation of oil, natural gas including renewable/biogas), carbon dioxide, synthetic liquid or gaseous fuels, and any refined or blended products of the same (including the constituent elements thereon, together with water, cleansers, and other products necessary for the testing, inspection, maintenance, and operation of the pipeline(s), and with such above or below ground Facilities Piping (defined below), drips, valves, fittings, metering facilities, taps, saddles, pressure relief facilities, pigging facilities, pressure regulating facilities, electrical service, anodes, rectifier poles, and other devices for the control of corrosion, communication facilities, odorization equipment, barricades and fencing, the right to construct and install gravel, asphalt or concrete upon the surface of the Facilities Easement Area (as defined herein), aerial and pipeline markers, and other appurtenance as may be necessary or desirable in the operation of said facilities (collectively, the "Aboveground Facilities"), over, across, under and upon the lands more particularly described on, and depicted as the "Surface Site" in Exhibit "A" attached hereto and made a part hereof for all purposes (the "Facilities Easement Area"). "Facilities Piping 'refers to additional segments of above or below ground piping which may be required for the safe and/or convenient operation of said Facilities within the Facilities Easement Area and to effectuate the purposes permitted herein. All pipes and/or Pipelines (including the Facilities Piping) may be initially installed at any depth or above -ground.; and Access Easement iii) vehicular and pedestrian ingress to and egress from the Facilities Easement Area along and upon the land more particularly described as the "Access Easement" on Exhibit "A" attached hereto and made a part hereof (the "Access Easement Area"). Grantee's Aboveground Facilities, Pipelines and any improvements to the Access Easement Area are collectively referred to as Grantee's "Easement Facilities." The areas comprising the Pipeline Easement Area, Facilities Easement Area, and the Access Easement Area are collectively referred to as the "Easement Area." Grantor grants Grantee the right to temporarily use temporary workspace as described in Exhibit "A" (the "Temporary Workspace") for the sole purpose of carrying out the initial construction of the Easement Facilities, which rights shall include, but not be limited to, boring Page 2 IOL Aboveground Easement w pipeline and access (version 12.15.21) activities, clearing, leveling, temporary storage, and staging equipment and materials. Grantee's right to utilize this Temporary Workspace will terminate and cease on earlier to occur of (i) the date on which initial construction of the Easement Facilities has been completed and the same are placed into service; or (ii) one and one-half (1.5) years from the effective date of this instrument as shown below. It is further agreed as follows: 1. Grantee shall have the right to select the location of said Easement Facilities within their respective portions of the Easement Area (e.g., the Aboveground Facilities within the Facilities Easement Area), and to do whatever may be requisite for the use and enjoyment of the rights herein granted, including the right of ingress and egress over Grantor's adjacent or additional lands to or from said Easement Area in the event Grantee cannot reasonably access the Easement Area by staying within the boundaries of the Access Easement Area, but in no event shall Grantee enter Grantor's adjacent or additional lands if access to the Easement Area is reasonably available over, though, or across a dedicated public right-of-way, and if no such access over a public right-of-way exists, then without the prior written consent of Grantor, which consent may not be unreasonably withheld. 2. Grantor shall have no access rights on, under, or over the Facilities Easement Area. Further, Grantor shall not obstruct Grantee's use of the Access Easement Area. 3. The aforesaid consideration includes any and all damages that may be sustained by the construction and installation of the Easement Facilities and appurtenance permitted under this Pipeline and Aboveground Facilities Easement, as well as damages arising from the repair, maintenance, inspection, replacement, operation, or removal of the Easement Facilities to be installed under the instrument, including without limitation, cutting trees and damages to land, trees, buildings, growing crops and grasses. Grantee shall repair or replace any damage caused to gates and fences by Grantee's removal, cutting, or use thereof. Grantee agrees that after it completes the original installation of the Easement Facilities permitted under this Pipeline and Aboveground Facilities Easement, it will restore the original contour of the surface of the Pipeline Easement Area and Temporary Workspace and any remaining property used for construction that is not part of the Easement Area, as nearly as practicable, to its pre -construction condition within a reasonable period of time reflective of and dependent upon the construction and property's characteristics, including but not limited to seasonal growing periods and weather patterns, but in no event longer than six (6) months after the completion of construction. 4. Grantee will also maintain the Easement Area in a manner consistent with the purposes stated herein. Grantee will install, erect and construct, at its sole cos and expense, a six (6) foot wall surrounding the perimeter of the Facilities Easement Area; provided, further, Grantee shall have the right to remove, cut, and use any gates or fences crossing the Easement Area. Grantor shall have the right to install and maintain fences provided that such use does not interfere with Grantee's permitted use of the Easement Area, the Easement Facilities, or the Temporary Workspace and Grantee shall at all times have access through any such fence by means of a gate. Page 3 IOL Aboveground Easement w pipeline and access (version 12.15.21) 5. Grantor shall not construct, and Grantee shall have the right to prevent and/or remove, any improvements, structures, buildings, reservoirs, or obstructions within the Easement Area and the Temporary Workspace while in effect). Further, Grantee has the right to trim, cut down, or eliminate trees or shrubbery, and to prevent or remove possible present or future hazards and/or activities, any of which, in the sole judgment of the Grantee may presently or in the future endanger or interfere with the efficient, safe, and/or convenient exercise of Grantee's rights hereunder within the Easement Area (and the Temporary Workspace while in effect). Further, in addition to the rights stated herein, Grantor specifically acknowledges and agrees that pursuant to this paragraph Grantee has the right to remove any type of tree, including pecan, olive, or other crop -bearing tree, from, and to prevent any future encumbrance over, said Easement Area (and the Temporary Workspace while in effect) by any tree or any other crop interfering with the construction, maintenance, and/or operation of the pipelines permitted under this Pipeline and Aboveground Facilities Easement without any compensation whatsoever to Grantor or its successors and assigns, which rights are included in the aforesaid consideration. . 6. With respect to the Pipeline Easement Area only, Grantee intends to employ a "double ditch" method where practical and permitted during installation of each Pipeline where other installation methods such as boring or horizontal directional drilling are not employed. Such double ditch method shall involve the removal and storage of the top soil to a depth determined by Grantee) and separation of same from the sub -soil so as to return the soil to as near as reasonably practicable its pre -installation condition after the excavation. It is acknowledged that the decision to use a bore -method or horizontal -drilling method will be in Grantee's sole discretion. 7. If a complete assignment of this Pipeline and Aboveground Facilities Easement occurs outside of an assignment to an affiliate or to a successor thorough merger, consolidation, or other sale or transfer of all or substantially all of its assets and businesses, Grantee shall provide written notice to the property owner at the last known address of the person in whose name the property is listed on the most recent tax roll of any taxing unit authorized to levy property taxes against the property. Provided however that such notice shall not have any effect on the validity or legal effect on the assignment. 8. Grantee shall only grant third -party access to the Easement Area for: (a) a purpose that is related to the construction, safety, repair, maintenance, inspection, replacement, operation, or removal of each pipeline or appurtenances installed under this Pipeline and Aboveground Facilities Easement, or (b) another natural gas corporation or natural gas utility as defined by Texas law. 9. If Grantee should abandon the rights granted herein and if such abandonment should continue for a continuous period of ten years, all rights of Grantee herein shall ipso facto terminate and revert to Grantor, his heirs, legal representatives, and assigns. 10. Grantor and Grantee agree that the failure to assert any right under this Pipeline and Aboveground Facilities Easement shall not constitute a waiver of any other right hereunder. Further, it is hereby agreed that any delay by Grantee in asserting any right granted in this Pipeline and Aboveground Facilities Easement, regardless of the length of any such delay, Page 4 IOL Aboveground Easement w pipeline and access (version 12.15.21) shall not prevent Grantee from later asserting or otherwise enforcing that same right, including but not limited to the right to prevent or remove any encroachments within the Easement Area as provided in paragraph 4 above. 11. This Pipeline and Aboveground Facilities Easement shall not be construed as a written agreement between Grantor and Grantee for purposes of Section 756.123 of the Texas Health and Safety Code (or any successor statute). Further, as used within this easement agreement, the word "structure" is intended to be interpreted broadly so as to include all manner of man-made items of any type, including but not limited to paving, parking lots, and terracing. 12. Except for the rights conveyed by this instrument, Grantee may not exercise any right over Grantor's property without express written consent from Grantor. However, the preceding sentence is not intended to and does not alter, modify, restrict, amend, or otherwise diminish any right Grantee has to use Grantor's property independent of this agreement, whether through a separate agreement, by law, or otherwise. 13. Both Grantor and Grantee hereby represent and warrant that they have read and have fully understood the terms of this Pipeline and Aboveground Facilities Easement, that they have had the opportunity to have same reviewed by an attorney, and that in entering into this Pipeline and Aboveground Facilities Easement they are relying solely upon their independent review and the advice of their respective counsel. Further, Grantor and Grantee acknowledge that this Pipeline and Aboveground Facilities Easement has been negotiated by the parties, and this Pipeline and Aboveground Facilities Easement shall be construed as one prepared by the joint efforts of Grantor and Grantee and shall not be construed against either party as the drafter. TO HAVE AND TO HOLD the above -described easements and rights unto the said Grantee, and Grantee's successors and assigns, until abandoned as provided for herein. This instrument and covenants and agreements herein contained shall constitute covenants running with the land, binding upon Grantor, his heirs, legal representatives, successors and assigns, for the benefit of Grantee, and Grantee's successors and assigns. Grantor hereby binds himself, his heirs, legal representatives and assigns to warrant and forever defend all and singular the above -described easements and rights, unto the said Grantee, and Grantee's successors and assigns, against every person whomsoever lawfully claiming or to claim the same, or any part thereof. It is hereby understood that the party securing this grant on behalf of Grantee is without authority to make any covenant or agreement not herein expressed. Signature page to follow> Page 5 IOL Aboveground Easement w pipeline and access (version 12.15.21) Page 6 POL Aboveground Eatdrk tw;access (version 12.15.2I r 2 EXECUTED this LJr day of &I , 2022. GRANTOR: MM Anna 325, LLC, a Texas limited liability company By: MMM Ventures, LLC, a Texas limited liability company Its Manager By: 2M Ventures, LLC, a Delaware limited liability company Its Manager By: Name: Mehrdad Moayedi Title: Manager Address: 1800 Valley View Lane, Suite 300 Farmers Branch, Texas 75234 STATE OF TEXAS COUNTY OF O^U#0 BEF R ME, the undersigned authority on this day personally appeared V1eArt)u K J; the A nayl7 of 2M Ventures, LLC a Delaware limited liability company, Manager of MMM Ventures, LLC, a Texas limited liability company, Manager of MM Anna 325, LLC, a Texas limited liability company known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she/they executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 23 day of M •t 2022. ( . 4 Not Public in and for the State of TexasMATTHEWKOLLINGERNotary g=Notary Public, State of Texas Comm. Expires 03-14-2026 Notary 10 133642806 Page 7 IOL Abovegmund Easement w access (version 12.15.21) Page_ 8 IOLAiovground Easements access (version..12.15.21) EXHIBIT "A" SURFACE SITE EASEMENT All that certain 0.315 acre Surface Site Easement In the John Ellet Survey, Abstract No. 296, Collin County, Texas and being in a called 290.877 acre tract of land described in a Special Warranty Deed to MM Anna 325, LLC, recorded in Document Number 20190411000386110 of the Official Public Records of said county, and said 0.315 acre tract being more particularly described by metes and bounds as follows: BEGINNING at a 1/2 inch iron rebar with a cap stamped "RPLS 6484" set for the southwest corner of the herein described tract THENCE North 01*00'20" West, a distance of 167.09 feet to a 1/2 inch iron rebar with a cap stamped "RPLS 6484" set for the northwest corner of the herein described tract, from which a 1/2 inch iron rebar with a red illegible cap found for the most northern northeast corner of said 290.877 acre tract bears North 42'3947" East, a distance of 2,108.59 feet; THENCE North 88'54'02" East, a distance of 100.00 feet to a 1/2 inch iron rebar with a cap stamped "RPLS 6484" set for the northeast corner herein described; THENCE South 01"00'20" East, a distance of 107.61 feet to a 1/2 inch iron rebar with a cap stamped "RPLS 6484" set for the southeast corner herein described, from which a 1/2 inch iron rebar found in County Road 368 bears South 58"30'14" East, a distance of 1,026.37 feet; THENCE South 58"12'04" West, a distance of 103.61 feet to a 1/2 inch iron rebar with a cap stamped "RPLS 6484" set at the beginning of a curve to the left, with a radius of 1,874.72 feet and a chord which bears South 58'00'18" West, a distance of 12.83 feet; THENCE along said curve to the left, with a central angle of 00"23'32" and an arc distance of 12.83 feet to the POINT OF BEGINNING and containing 0.315 acres or 13,732 square feet of land. Bearings and distances are based on the U.S. State Plane North American Datum of 1983 (NAD83), Texas North Central Zone (4202). STATE OF TEXAS COUNTY OF COLLIN I hereby certify that this survey substantially complies with the OF current Texas Society of Professional Surveyors Manual of Practice E . s r E Requirements for a Category 1B, Condition 3, TSPS Standard Land A.P. e' gFfy NOTE: Survey and was conducted on the ground in December of 2021 and 0+ a .tp Bearings, coordinates and distances are based Is We and correct to the best of my knowledge. ANTHONY R. C•RO•WL•• on U.S. State Plane NAD 1983 Coordinates. EY Texas North Central Zone ( 983 Original signed and stamped in green Ink.`r, 6484 This survey was without the benefit9AA•'•%..IV.. E S 5,0,.' -lO prepared 1 February 18, 2022 S R`I of a title commitment. There may be A THON Y C WLEY R.P.L. O. 6484 DATE U easements of record that are not shown. PROJECT: NT-201 -HURRICANE CREEK DESCRIPTION OF A 0.315 ACRE SURFACE SITE EASEMENT IN THE JOHN ELLET SURVEY, ABSTRACT NO. 296, COLLIN COUNTY, TEXAS CROWLEY FFCROWLEYSURVEYING SURVEYING f FRN:10046500 4251 FM 2181, #230484 ATMOSCORINTH, TX. 76210 -- 469) 850-CPLS(2757) PYI PY(S[T PROJECT AFE: 18OA9297 TRACT NO.: LOCATION: COLLIN COUNTY, TX DRAWN BY: LJG REVISION: CDM, 02-10.2022, 02-17-2022 EXHIBIT "A" VARIABLE WIDTH ACCESS EASEMENT All that certain 0.012 acre Access Easement in the John Ellet Survey, Abstract No. 296, Collin County, Texas and being in a called 290.877 acre tract of land described in a Special Warranty Deed to MM Anna 325, LLC, recorded in Document Number 20190411000386110 of the Official Public Records of said county, and said 0.012 acre Access Easement being more particularly described by metes and bounds as follows: BEGINNING at a 1/2 inch iron rebar with a cap stamped "RPIS 6484" set for the northwest corner of the herein described easement and the beginning of a curve to the right, with a radius of 1,874.72 feet and a chord which bears North 58'00'18" East, a distance of 12.83 feet; THENCE along said curve to the right, though a central angle of 00'23'32" and an arc length of 12.83 feet to a 1/2 inch iron rebar with a cap stamped "RPLS 6484" set at the point of tangency; THENCE North 58'12'04" East, a distance of 22.12 feet to the northeast comer herein described; THENCE South 01'00'20" East, a distance of 11.64 feet to an exterior comer herein described; THENCE South 62'29'00" East, a distance of 5.81 feet to a point in the north right-of-way line of the future Rosamond Parkway (a 120 foot wide right-of-way) for the southeast corner herein described; THENCE South 58'12'04" West, with said right-of-way line, a distance of 19.13 feet to a south exterior corner herein described; and the beginning of a curve to the right, with a radius of 1,859.72 feet and a chord which bears South 57'51'54" West, a distance of 21.82 feet; THENCE along said curve to the right, and with the said north right-of-way line, though a central angle of 00'40'20" and an arc length of 21.82 feet to the point of tangency at the southwest corner herein described; THENCE North 00"00'20" West, departing said north right-of-way line, a distance of 17.56 feet to the POINT OF BEGINNING and containing 0.012 acres or 539 square feet of land. Bearings and distances are based on the U.S. State Plane North American Datum of 1983 (NAD83), Texas North Central Zone (4202). STATE OF TEXAS COUNTY OF COLLIN I hereby certify that this survey substantially complies with the OF current Texas Society of Professional Surveyors Manual of Practice P"C• o•'s •; . Requirements for a Category 18, Condition 3, TSPS Standard Land Survey and was conducted on the ground in December of 2021 and +•" G ANTHONY R. Cistrueancorrecttothebestofmyknowledge. signed and stamped in green ink. zl&ZITE r' • p 6484 19A.7`ess DESCRIPTION OF A VARIABLE WIDTH ACCESS EASEMENT IN THE JOHN ELLET SURVEY, ABSTRACT NO. 296, COLLIN COU TEXAS NOTE: Bearings, coordinates and distances are based on U.S. State Plane NAD 1983 Coordinates, Texas North Central Zone (4202). This survey was prepared without the benefit of a title commitment. There may be easements of record that are not shown. CROWLEY CROWLEY SURVEYING •M.PW SURVEYING 4251 FM 2181, #230-484 CORINTH, TX. 76210 469) 850-CPLS(2757) EXHIBIT "A" PIPELINE EASEMENT All that certain 0.008 acre Pipeline Easement in the John Eilet Survey, Abstract No. 296, Collin County, Texas and being in a called 290.877 acre tract of land described in a Special Warranty Deed to MM Anna 325, LLC, recorded in Document Number 20190411000386110 of the Official Public Records of said county, and said 0.008 acre tract being more particularly described by metes and bounds as follows: BEGINNING at a 1/2 inch Iron rebar with a cap stamped "RPLS 64W set for the northeast comer of the herein described easement; THENCE South 01°00'20" East, a distance of 17.46 feet to the southeast corner herein described, from which a 1/2 inch iron rebar found In County Road 368 bears South 58'30'14" East, a distance of 1,026.37 feet; THENCE South 58'12'04" West, a distance of 23.32 feet to the southwest corner herein described; THENCE North 01"00'20" West, a distance of 17.46 feet to the northwest corner herein described; THENCE North 58'12'04" East, a distance of 23.32 feet to the POINT OF BEGINNING and containing 0.008 acres or 350 square feet of land. Bearings and distances are based on the U.S. State Plane North American Datum of 1983 (NAD83), Texas North Central Zone (4202). STATE OF TEXAS COUNTY OF COLLIN i I hereby certify that this survey substantially complies with the i OF tE•••s • current Texas Society of Professional Surveyors Manual of Practice Requirements for a Category 18, Condition 3, TSPS Standard Land Aty.E"aF fy NOTE: i Survey and was conducted on the ground in December of 2021 and hr'` ° :N Bearings, coordinates and distances are based is We and correct to the best of my knowledge. ANTHO" T.HOR. .....R..C.ROWLEY ••••••••-- on U.S. State Plane NAD 1983 Coordinates, NY C 1 Texas North Central Zone (4202). S Original signed and stamped in green ink. s 6484 L It 9 • °.... 5 5.... O This survey was prepared without the benefit February 18, 2022 S U RJR of a title commitment. There may be r A THON Y C EY R.P.L. O. 6484 DATE easements of record that are not shown. PROJECT: NT-201 -HURRICANE CREEK PROJECT AFE: 180.49297 DESCRIPTION OF A 29 x 5' WIDE PIPELINE EASEMENT IN THE JOHN ELLET SURVEY, Z' CROWLEY SURVEYING TRACT NO.: ABSTRACT NO.296, COLLIN COUNTY, TEXAS CROWLEY SURVEYING 1 LOCATION: COWN COUNTY, TX FRN:10046500 4251 FM 2181, 7ATM4X DRAWN BY: LJG REVISION: CDM, 02-10-2022, 02-17-2022 CORINTH, TX. 76210 6210 469)850- CPLS(2757) energy 0.,.,.ne.,a,...,..,re,.,,,.,o.n,,,..,.,.. PAGE NO.: 3 OF 5 TEMPORARY WORKSPACE EASEMENTS EXHIBIT "A" TEMPORARY WORKSPACE EASEMENT NO.1 All that certain 0.115 acre Temporary Workspace Easement in the John Ellet Survey, Abstract No. 296, Collin County, Texas and being in a called 290.877 acre tract of land described in a Special Warranty Deed to MM Anna 325, L-C, recorded in Document Number 20190411000386110 of the Official Public Records of said county, and said 0.115 acre easement being more particularly described by metes and bounds as follows: BEGINNING at a point In the south line of a 50 foot wide permanent easement to Crosstex North Texas Pipeline, LP, NT-201/180, recorded in Document Number 20061108001699970 of said Official Public Records, for the northeast corner herein described; THENCE South 01*00'20" East, a distance of 134.65 feet to the southeast corner herein described at the beginning of a curve to the right, with a radius of 1,859.72 feet and a chord which bears South 56°34'31" West, a distance of 40.27 feet; THENCE along said curve to the right, with a central angle of 01°14'26" and an arc distance of 40.27 feet to a point of non -tangency for the southwest corner herein described; THENCE North 01"10'22" West, a distance of 255.98 feet to a point for comer in said south line of Crosstex Easement, for the northwest corner herein described THENCE North 88'54'02" East, with said south line of Crosstex Easement, a distance of 34.57 feet to the POINT OF BEGINNING and containing 0.115 acres or 4,990 square feet of land. TEMPORARY WORKSPACE EASEMENT NO.2 All that certain 0.120 acre Temporary Workspace Easement in the John Ellet Survey, Abstract No. 296, Collin County, Texas and being in a called 290.877 acre tract of land described in a Special Warranty Deed to MM Anna 325, LLC, recorded in Document Number 20190411000386110 of the Official Public Records of said county, and said 0.110 acre easement being more particularly described by metes and bounds as follows: BEGINNING at a point in the south line of a 50 foot wide permanent easement to Crosstex North Texas Pipeline, LP, NT-201/180, recorded in Document Number 20061108001699970 of said Official Public Records, for the northwest corner herein described; THENCE North 88"54'02" East, with said south line of Crosstex Easement, a distance of 105.93 feet to a point for corner; THENCE North 79"07'22" East, continuing with said south line of Crosstex Easement, a distance of 29.15 feet to the northeast corner herein described; THENCE South 58'12'D4" West, a distance of 156.75 feet to the southwest corner herein described; THENCE North 01'00'20" West, a distance of 75.08 feet POINT OF BEGINNING and containing 0.110 acres or 4,792 square feet of land. TEMPORARY WORKSPACE EASEMENT NO.3 All that certain 0.020 acre Temporary Workspace Easement in the John Ellet Survey, Abstract No. 296, Collin County, Texas and being in a called 290.877 acre tract of land described in a Special Warranty Deed to MM Anna 325, LLC, recorded in Document Number 20190421000386110 of the Official Public Records of said county, and said 0.020 acre easement being more particularly described by metes and bounds as follows: BEGINNING at the northeast comer of said 0.020 acre easement, from which a 1/2 inch iron rebar with a cap stamped "RPLS 6484" set bears North 58'12'04" East, a distance of 23.32 feet; THENCE South 01"00'20" West, a distance of 17.46 feet to the southeast corner herein described; THENCE South 58"12'04" West, a distance of 52.22 feet to the southwest corner herein described; THENCE North 62'29'00" East, a distance of 5.81 feet to a point for corner; THENCE North 01"00'20" East, a distance of 11.64 feet to the northwest corner herein described; THENCE North 58"12'04" East, a distance of 58.17 feet to the POINT OF BEGINNING and containing 0.020 acres or 858 square feet of land. Bearings and distances are based on the U.S. State Plane North American Datum of 1983 (NAD83), Texas North Central Zone (4202). STATE OF TEXAS COUNTY OF COLLIN 1 hereby certify that this survey substantially complies with the current Texas Society of Professional Surveyors Manual of Practice Requirements for a Category 113, Condition 3. TSPS Standard Land Survey and was conducted on the ground in December of 2021 and is true and correct to the best of my knowledge. r qc•.-.-......rF NOTE: Q-,° s r e 9'': f Bearings, coordinates and distances aree •.9 y : a ;tP based on U.S. State Plane NAD 1983 j" bjj "—F. "" - Coordinates, Texas North Central ZoneANTHONYR. CROWLEY ( 4202). Original signed and stamped in green ink. V' i 6484 9 •• °^ E s s ° 1 This survey was prepared without the February 18, Q'`•• ljyLUsrj La 2022 ••^'JfL benefit of a title commitment. There may beSR NTHO Y Cil R.P.LS40.6484 DATE U easements of record that are not shown. PROJECT: NT-201 - HURRICANE CREEK DESCRIPTION OF THREE TEMPORARY PROJECTAFE: 180.49297 WORKSPACE EASEMENTS IN THE JOHN CROWLEY TRACT NO.: ELLET SURVEY, ABSTRACT NO. 296, COLUN CROWLEY SURVEYING V,% PF SURVEYING LOCATION: COLLIN COUNTY, TX COUNTY, TEXAS. FRN:10046500 4251 FM 2181, #230.484DRAWNBY: LJG REVISION: CDM, 02_70.2022, 02-17-2022 CORINTH, TX. 76210 469) 850.CPLS(2757) p•n PYl1[T 1/2" RED CIRF H. SMITH SURVEY ABSTRACT NO.622 JOHN ELLET SURVEY ABSTRACT NO.296 CALLED 290.877 ACRES MM ANNA 325, LLC DOC. NO 2019041 10GO3861 10 O.P.R.C.C.T. FUTURE VILLAGES OF 1RRICANE CREEK SUBDIVISION O m N 8 > 7 Poe r. EXHIBIT "A" CR 3)0 E S iE n zU y1 DEED INSET-1"=4000' pg L2 3 34.57' IN88"54'02" E 7 -- - POB T1N51 0 WORKSPACE, J SURFACE SITE EASEMENT 13,732 SO. FT. 0.315 ACRES a E ee10a 2X O<F'~,ISQPC DQ G3 RE ROW UNE OF ROSAMONO PKNH (12a w1DE1 LEGEND POINT NOT SET OR FOUND 1/2• IRON ROD W/ CAP STAMPED RPLS SAW SET EXISTING NT-201 EASEMENT BOUNDARY EASEMENT LINE SURFACE SITE STATE OF TEXAS ` TEMPORARY WORKSPACE(TWS) COUNTY OF COLLIN OP.R.C.C.T. - OFFICIAL PUBLIC RECORDS. COLLIN COUNTY, TEXAS I hereby certify that this survey substantially compi with the ZEcurrentTexasSocietyofProfessionalSurveyorsManualofPracticeVr" • 1 8 CROSSTEX NORTH TEXAS PIPEUNE, LP. Nr.2011180 +_GAS - 60 WIDE PERMANENT EASEMENT DOC. NO. 20061108(016MM O.P.R.C.C.T. 105.93' T T N 79`07'22" E 29.15' fs0/E2RES / TEMPORARY 6 3) 1 W IRF IN CR 368 N dS LOIETASE LHETABLE Llt E/ BPMIN6 018rOHCE IWE/ BEAWNG OISTfwCE L1 NOI'00201V nrl9 u Noraoa9w nsr L2 NH,`Vr6 1".W L19 sal•991OE TAr L) B iwO tear Ln ese'Raw Mu' N LN•I)Mw IE)dl' L12 O1W?(w IT.W Ls 35e•,3Ww air w HWIMT 23M L/ wl-W M"- LI4 Sss'I2M'W 523 LT W/Y SEI' LIS NY•1704•E S9.,r LA SSe'1)Ww 19.13' CURVETABLE CMVEI MCUMGTM MGNG GELTAMGLE CMO BEMING CHORGIENGTH CI ZN'99'taw 1 1183' C3 2,EY jim.rrj C40i0' I ssrsiuw NEY C3 103 I 1M.rr I 1-14W' I sE-U11w I 402r Requirements for a Category 18, Condition 3, TSPS Standard Land y e. c Survey and was conducted on the ground in December of 2021 and ....:..................... UP. is true and correct to the best of my knowledge. ANTHONY R. CROWLEY 6484 •:` a 0:' Original signed and stamped in green ink. 9 •'•. G A i, /y • .A E S 5' J G February 18, 2022 Z - .-j ANTHONYY C EY R.P.L.. NO.. 6484 DATE PROJECT: -201 - URRICANE CREEK PLAT SHOWING A 0.315 ACRE SURFACE PROJECT AFE: 180.49297 SITE EASEMENT, A VARIABLE WIDTH TRACT NO.: ACCESS EASEMENT, A SX20 PIPELINE LOCATION: COLLIN COUNTY, TX EASEMENT, & TEMPORARY WORKSPACE DRAWN BY: LJG SCALE: 1" = 50' REVISION: CDM, 02-10-2022, 02-18-2022 0 50 too NOTE: Bearings, coordinates and distances are based on U.S. State Plane NAD 1983 Coordinates, Texas North Central Zone (4202). This survey was prepared without the benefit of a title commitment. There may be easements of record that are not shown. CROWLEY CROWLEY SURVEYING r SURVEYING It FRN:10046500 4251 FM 2181, 84 TMOSCORINTH, TX. 76210 76210 469) 850-CPLS(2757) en"n,dnv/AlnuWnem,mn,rinn nn,n energy EXHIBIT A 6 5 Anna P&Z November 7, 2022 Atmos Energy Measuring Station Site .FTMOS energy, Wall Height. 8 feet Walls to match Hurricane Creek's neighborhood = — - facade BY. NNri• n YbNYL< wi{ I ' yl/ - IlnMf Ip 4NIiiO Y1.. _ C6 Y Iwi An Footprint - 167' x 100' x 107' x 104' \ .4W • u an \ INYYM Y/MY y w.c mwvYvne Site Proposed Anna measuring station site within Hurricane Creek subdivision TMOS energy. Site Example site: MITMOS energy® Similar measuring station located in the Willow Wood subdivision — Telephone Rd and Hwy 5, McKinney, TX Footprint: 121' x 102' Site Example site: ATMOS energy® Similar measuring station located in the Willow Wood subdivision — Telephone Rd and Hwy 5, McKinney, TX Footprint: 121' x 102' Sound Decibel readings at existing Willow Wood subdivision measuring station Current decibel level at proposed site in Anna: 45 AFTMOS energy, Decibel Sound Chart 20 Leaves rustling 30 Whisper 40 Quiet library 50 Moderate rainfall 60 Dishwashers, normal conversation 90 Lawnmowers, hair dryers, blenders 100 MP3 players at full volume Smell WTMOS energy, Odorizer , container d Odorizer injection There should be no odor during normal operation of equipment. Potential of some smell only during the filling of the odorizer. Filling of odorizer: First 6 years: - 1 time every 18 months By year 10: - twice a year RECEIVED 10/04/2022 DEVELOPMENT SERVICES In favor of request Comments: T JY C zt% ey %D gl NDusE5 , -?74 R.E iFR MAAIY eTtt,EK OG4T 15 f e=U laP/r sNT 7NAr /IRS s/2 By signing this letter, I declare I am the owner or authorized agent of the property at the addresswrittenbelow. Name (Please Print) Sign re y0- Address Date USPS Mail: City of Anna Planning and Development Department P.O. Box 776 Anna,TX 75409 Hand Delivery: Planning and Development Department Public Works Building 3223 N. Powell Parkway Anna, TX 75409 Or by e-mail to LMECKE(@annatexas aov Subject: Zoning Response VH--A A --a SU? 10/03/2022 RECEIVED 10/04/2022 DEVELOPMENT SERVICES TF-iv>k rrry niz In favor of request Neutral to request Opposed to request S oc'/,G f)A(rz<Yl us G I'7vl c¢-C.S GGosC To ov,Q floi7 3 iS / yfe977/ P(S /4J0 C,6167AT5 44 A) 77115 day signing "this letter, t declare I am the owner or authorized agent of the preperty:at the addresswrittenbelow. Signature 501:,>3 C-A0Ss1.) (,- DQ _ AJn/% 'j_X 7S21'01 Address Date USPS Mau. Cityof.Anna Planningandi7eroelopmen2 Depsrlmerrt _ .___ ._ P.O. Boa 776 _... Anna, TX 75409 Hand D#WeT. Ptanning,and DevelopmentDepartmerrt PubIQ'Wwks Bimift, 3223 N. Powell ParkvmV Anna,TX 75409 Or by e-mail to LMECI(ECo7annatexas aov oagecu Zoning Response- I ']fit SC ICAVU22 RECEIVED 10/04/2022 DEVELOPMENT SERVICES THE = OF In favor of request Neutral to request <pposed to r rtkI MoI.(_--"gt5 Me%t',r e LA40 4E +x, So 5 i a4-k o 7,2 O u h Wc rMd 6 (L" ci,i;-)6 '//7, By signing this letter, I declare I am the owner or authorized agent of the property at the addressorn b Swrittenbelow. PJ iKSJle.e, Name (Please Print) 3DI to U 16,,, k vl a Address rDIgIZz Date Please return form to: USPS Mail: Ci of Anna Planning and Development Department P.O. Box 776 Anna, TX 75409 Hand Delivery. Planning and Development Department Public Works Building 3223 N. Powell Parkway Anna, TX 75409 Or by e-mail to LMECKECpbannatexas gov Subject: Zoning Response C_V A[ SUP 10/03/2022 RECEIVED 10/04/2022 DEVELOPMENT SERVICES THE CITY OF Rek[ tc : (flay 1`Ieaer. SfkYo on ht- A4,1 S.Ac dF Conc «n.l t,; 11 Skrasc- oP- fZf`c CAe...:.-IS tom* So C(OSE 'fa 0 r /ie"544--) a.,.l All-- tam o' 4—It By signing this letter, I declare I am the owner or authorized agent of the property at tho addresswrittenbelow. billy I4Pgc1,,< Name lease Print)) Signature 3000 e^ a3s%45 Qr, Address ' a /:I/ t Dale 311 111— USPS Malt: City of Anna Planning and bevelopment Department - P.O. Box 776 Anna, TX 75409 Hand Delivery: Planning and Development Department Public Works Building 3223 N. Powell Parkway Anna,TX 75409 Or by e-mail to LMECKE0annatexas eov Subject: Zoning Response SNC•N ht-- a0 ,0/03/Z0Z: RECEIVED 10/04/2022 DEVELOPMENT SERVICES THE CITY OF,r In favor of request Neutral to request Opposed to requ By signing this letter, I declare I am if owner or authorized anent of the property at the address Cam© 9 Date ! 0 G q/ a USPS Mail: City of Anna Iaririing and Development Department P.O. Box 776 Anna,TX 75409 Hand Delivery. Planning and Development Department Public Works Building 3223 N. Powell Parkway Anna, TX 75409 Or by e-mail to LMECKEO annatexas cov Subject: Zoning Response V4C-N AGQs SUP 10/03/2022 RECEIVED 10/04/2022 DEVELOPMENT SERVICES TRP C rf'V nP In favor of request Neutral to request Opposed to request FRV;- LIVE - #,e- / TLL6 X42TH oj:tq WAE1 U T PcAf, i 5 o - m FLu-y k 4,-r DF 7hL" xm P/i-e. i 7-D Dw toMM aDD No 11ji, Ml ,2c` iR 114E trf 7Z E THE 7WE METeA1JJr- S-1;4T/o•U, - By signing this letter, I declare I am the owner or authorized agent of the property at the address writtenbelow. if K 4 6 e ( Please Print) t. Sioature 3d3S 4Rt?'+.J (Ry A4JAg,Tle Address D le 4- Date USPS Mail: City of Anna Planning and Development Department P. O. Box 776 Anna, TX 75409 Hand Delivery: Planning and Development Department Public Works Building 3223 N. Powell Parkway Anna, TX 75409 Or by e-mail to LMECKEannatexas aov Subject: Zoning Response V-C- v Amos SUP 10113/2012 RECEIVED 10/04/2022 DEVELOPMENT SERVICES THE CITY OF In favor of request Neutral to request (, Opposed to request rr{-1 5 LoC/7lorJ (S /.,4r e 7JP21/k / GgUu 7+A7 w/L-.. Cz. 3-rA1r-", TZ3x1c C!i--- /I<,4L4 tocz->3cr Orr- DEi c-JS/E oD1)/__S ,¢Jib CyCL,,3(> X)o/Se J S772L+ L sic 7 l+/s LoC 1 r aJ T<h4T 4S nr/r7N,J 7a ov/[. I+bm c-T, By signing this letter, I declare I am the owner or authorized agent of the property at the address written below. Nd,Wgs Lo v(--ttiu Name IPlease Print i nature 363z CIzoSS Address / 03/31 ZO Z Z Date Please return form to: USPS Mail: City of Anna Planning and Development Department P.O. Box 776 Anna,TX 75409 Hand Delivery: Planning and Development Department Public Works Building 3223 N. Powell Parkway Anna,TX 75409 Or by e-mail to LMECKE(&annatexas.00v Subject: Zoning Response VHC-N Atmon SOP/0103/2022 RECEIVED 10/05/2022 DEVELOPMENT SERVICES THE My of In favor of request Neutral to request By signing this letter. I derlaru I , #k- authorized agent of the properly at the address E7 Address Date of Anna Manning an3 Development DepartmentP.O. Box 776 Anna, TX 75409 Nand Delivery: Planning and Development Department Public Works Building 3223 N, Powell ParkwayAnna, TX 75409 Or by e-mail to 119EP! Etr annatexas oovSubject: Zoning Response VVC-N Arnica SUP 10/03!2022 EF RECEIVED 10/05/2022 DEVELOPMENT SERVICES THE CITY OF Purposed gas meter station is a potential risk to the adjacent neighborhood — Urban Crossings. Thistypeofstationshavethreatofexplosions, ordorless and colorless gas leaks including lead poisoning tothnaturalenviroment. Radan 222 Is a natural radioactive gas that is produce buy these kind of gasmeteredstations. This type of exposure to our families and children can have a lifetime of horriblehealthissues. And NO amount of OSHA safety guidelines can gaurantee our children health and safety. By signing this letter, I declare I am the owner or authorized agent of the property at the address written below, l n2 0 1'X0'& 4 Name Please Pt L Signature 31 D) CrZo,%Lh6 bg- "T-44 —1?e ?5j o Address ifl u / oa'a- Date City of Anna Planning and development Department P. O. Box 776 Anne, TX 75409 Hand Delivery: Planning and Dev ent Depart _ bllcftordingellParkway409 Or by e-mail to LM CKE(CPannatexas oov Subject: Zoning Response VW- N At.M SUP 10/03/2022 THE CITY OF In favor of request RECEIVED 10/05/2022 DEVELOPMENT SERVICES Neutral to request Opposed to request Purposed gas meter station is a potential risk to the adjacent neighborhood — Urban Crossings. This type of stations have threat of explosions, ordorless and colorless gas leaks including lead poisoning to th natural enviroment. Radan 222 Is a natural radioactive gas that is produce buy these kind of gas metered stations. This type of exposure to our families and children can have a lifetime of horrible health issues. And NO amount of OSHA safety guidelines can gaurantee our children health and safety. By signing this letter, I declare I am the owner or authorized agent of the property at the address written below. i LlaOZtt n ease Print) Signature _ Address Date' City of Anna g" """ Planrinand """ development Department P. O. Box 776 Anna, TX 75409 Hand Delivery: Planning and Development Department Public Works Building 3223 N. Powell Parkway Anne, TX 75409 Or by e-mail to LMECKEftnnatexas.cov Subject: Zoning Response VIIC- N ltnnc SUP 00/00/2022 M,-a o J THE CITY OF Anna In favor of request Neutral to request 8y signing I declare I ne written below. ktkE-- A—P_CL_Tc_ Name (Please Print) Signature 3tl c- CJoss,w bQ Address I2) /3 / z2— Date USPS Mail: City of Anna Planning and Development Department P.O. Box 776 Anna, TX 75409 Hand Delivery: Planning and Development Department Public Works Building 3223 N. Powell Parkway Anna, TX 75409 Or by e-mail to LMECKE(a)annatexas.gov Subject: Zoning Response VNC-N At s SUP 10/03/2022 to RECEIVED 10/10/2022 DEVELOPMENT SERVICES 1 _44i_t authorized agent of the property at the address RECEIVED 10/12/2022 DEVELOPMENT SERVICES THE CITY OF 0 UY" t,t.on,ob . By signing this letter, I declare I am the owner or authorized agent of the property at the address written below. ( Name (Ple§se Print) Signature r ( 3fl A, l cb v-l\ i.7 a \ MCC L' Address k O a l - ?.o zZ Date USPS Mail: City of Anna tievelopmenf beparfinent P.O. Box 776 Anna,TX 75409 Hand Delivery. Planning and Development Department Public Works Building 3223 N. Powell Parkway Anna, TX 75409 Or by e-mail to LMECKEAannatexas.gov Subject Zoning Response v9C-4 Atmos SOP 10/03/2022 Item No. 7.b. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Joey Grisham AGENDA ITEM: Acting as the Anna Public Facility Corporation Board of Directors, Consider/Discuss/Act on approving: (a) Memorandum of Understanding with Liberty Multifamily, Inc. for a Senior Living Multifamily Project; and, (b) Resolutions approving the formation of entities--along with corresponding LLC Agreements--to serve in the following capacities in connection with the project: (i) APFC Reserve at Anna GP, LLC, to serve as general partner of a to-be formed partnership that will own and develop the Project; (ii) APFC Reserve at Anna Holdings, LLC, to acquire and hold fee title to the land upon which the Project will be constructed and to enter into a ground lease with the Partnership; and (iii) APFC Reserve at Anna Development, LLC, to serve as co-developer on the Project. (Director of Economic Development Joey Grisham) SUMMARY: Staff recommends approval of the MOU and corresponding Resolutions. The Anna PFC Board approved a Resolution in October 2022 to declare the intent to issue Multifamily Mortgage Revenue Bonds or Notes with respect to The Reserve Senior Living in an amount not to exceed $32,000,000. The next step in the process is approval of the attached MOU and other resolutions for the formation of entities. These are very similar to those approved for the Palladium East Foster Crossing and Parmore Anna Senior Living projects. LIberty will also be seeking to annex the property located at the intersection of SH 121 and FM 2862 into the city and zone accordingly. FINANCIAL IMPACT: The Anna PFC is estimated to receive over $1,700,000 over the next several years, with the city receiving all related impact, building, and other applicable permit fees. BACKGROUND: Liberty Multifamily approached staff in 2022 to discuss the development of a 200-unit Senior Living project and the PFC Board approved a Resolution declaring the intent to issue bonds for the project. Liberty has secured their bond allocation and is ready to move forward on the project. STRATEGIC CONNECTIONS: This item supports the City of Anna Strategic Plan, specifically advancing the strategic outcome area: Unique. ATTACHMENTS: 1. Anna PFC MOU and Resolutions 2. Res 2022-10-1279 Multifamily Mortgage Revenue Bonds 3. Anna Survey 25-001 acres North 1. MEMORANDUM OF UNDERSTANDING CHAPMAN AND CUTLER LLP DRAFT OF APRIL 19, 2023 Memorandum of Understanding - The Reserve at Anna 4873-0281-1989 v4.docx 2310605 MEMORANDUM OF UNDERSTANDING BETWEEN ANNA PUBLIC FACILITY CORPORATION AND LIBERTY MULTIFAMILY, LLC “THE RESERVE AT ANNA” THIS MEMORANDUM OF UNDERSTANDING (this “MOU”) is between the ANNA PUBLIC FACILITY CORPORATION (the “Anna PFC”), a nonprofit public facility corporation organized under Chapter 303 of the Texas Local Government Code, and LIBERTY MULTIFAMILY, LLC (the “Developer”), a Texas limited liability company and is dated and effective as of [April 25], 2023. The Developer is a developer of affordable housing in the State of Texas. The Anna PFC is a nonprofit public facility corporation whose mission is to assist in the financing of public facilities. The Developer and the Anna PFC hereby agree to work cooperatively to develop affordable housing at the following location, in accordance with the terms of this MOU: The Reserve at Anna being a 200-unit development to be located in the extraterritorial jurisdiction of the City of Anna, Collin County, Texas, financed with private activity bonds issued by the Anna PFC and 4% Low Income Housing Tax Credits allocated by the Texas Department of Housing and Community Affairs (the “Project”). In order to accomplish this purpose, the parties agree as follows: AGREEMENTS A. OWNERSHIP STRUCTURE 1. The Developer will form a limited partnership named Anna Reserve TC I, LP (the “Partnership”) for the purpose of owning the Project. A single-purpose entity that is wholly- owned by the Anna PFC will be admitted into the Partnership as the sole General Partner (the “General Partner”). 2. The Developer may designate an affiliate to serve as a special limited partner of the Partnership (the “Special LP”), with certain oversight and approval rights including to protect the Developer or an affiliate of the Developer from any liability under any of the guaranties referred to in paragraph C.5 hereof. Any such rights must be agreed to by the Anna PFC and may not, in the opinion of the Anna PFC’s counsel, result in the Special LP being deemed a General Partner for exercising its rights under the Partnership Agreement (as hereinafter defined). Memorandum of Understanding The Reserve at Anna [April ___], 2023 Page 2 of 14 3. Certain terms contained in this MOU and not contained in the Partnership Agreement or other transaction documents may be outlined in a Master Agreement, which shall be executed at Closing (as hereinafter defined). 4. The duties of the General Partner and the Special LP shall be set forth in a partnership agreement (the “Partnership Agreement”) to be entered into among the General Partner, the Special LP, and an equity investor as the limited partner (the “Investor LP”). The parties will cooperate in good faith to cause the Partnership Agreement to contain terms consistent with those set forth in Exhibit A hereto, it being recognized that approval of the Anna PFC’s Board of Directors is contingent upon the Partnership Agreement containing terms consistent with Exhibit A. The General Partner’s execution of the Partnership Agreement shall be subject to the following terms: (i) The General Partner’s representations shall be limited to those within the General Partner’s actual knowledge and in no case shall due inquiry be required, it being understood and agreed that the General Partner will not be looked upon by the Special LP or the Investor LP to conduct Project-related diligence; (ii) The General Partner shall be indemnified by the Developer and the Partnership for any liabilities incurred under the Partnership Agreement, except for liabilities incurred as a result of the General Partner’s gross negligence or willful misconduct and in no event shall such indemnification be contingent upon a ruling of a court of law; (iii) The General Partner shall not be required to covenant to undertake actions or obligations that the Special LP will be required to take under the Partnership Agreement; and (iv) The Partnership Agreement shall contain a provision wherein the Special LP and Investor LP acknowledge that the obligations of the General Partner under the Partnership Agreement are obligations solely of the General Partner and not the owner of the General Partner. 5. Title to the land for the Project shall be taken in the name of the Anna PFC, or a subsidiary of the Anna PFC (the “Ground Lessor”), and the Ground Lessor shall then enter into a long-term ground lease (the “Ground Lease”) with the Partnership, as tenant, holding an interest in the improvements that constitute the Project. Funding for the acquisition of the land will come from the financing of the Project, and may be paid to the Ground Lessor in the form of an up-front Ground Lease payment. Upon termination of the Ground Lease, ownership of the improvements constituting the Project shall revert to the Anna PFC. In the event that the Project is sold, the Ground Lease shall provide for a transfer of title to the land to a purchaser upon payment of One Hundred Dollars ($100). Memorandum of Understanding The Reserve at Anna [April ___], 2023 Page 3 of 14 B. DUE DILIGENCE As a condition to the Anna PFC’s participation in the Project, the Anna PFC requires the Developer to provide due diligence information on the Project and its proposed financing and operations pursuant to the due diligence required by the Anna PFC. The Developer shall deliver the due diligence items before the Closing. Failure of the Developer to deliver to the Anna PFC due diligence items reasonably acceptable to the Anna PFC shall be grounds for the Anna PFC to terminate this MOU in its discretion. C. FINANCING 1. On behalf of the Partnership, the Developer has applied for a reservation of up to $32,000,000 in private activity bond volume cap in connection with multifamily housing bonds to be issued by the Anna PFC (the “Bonds”). The Developer shall be responsible for selecting the manner in which the Bonds will be sold to facilitate debt financing for the Project and negotiating the financing terms of the Bonds on behalf of the Partnership; provided, that the Anna PFC shall have the right to review and approve the financing arrangements and the terms and conditions of any Bond or loan documents. 2. On behalf of the Partnership, the Developer will apply for a commitment of low- income housing Tax Credits (the “Tax Credits”) from the Texas Department of Housing and Community Affairs (the “TDHCA”). If the Partnership receives a commitment of Tax Credits, the Developer shall be responsible for selecting the manner in which the Tax Credits will be sold to facilitate equity financing (the “Equity”) for the Project, and negotiating the equity financing terms on behalf of the Partnership; provided, that the Anna PFC shall have the right to review and approve (which approval shall not be unreasonably withheld, delayed or conditioned) the identity of the Investor LP, the financing arrangements and the terms and conditions of any Equity financing documents. The Equity financing documents are expected to include the Partnership Agreement. 3. If the Project receives a commitment of Tax Credits, the Developer will apply for construction and permanent financing (the “Loan”) on behalf of the Partnership. The Developer shall be responsible for selecting the lender and negotiating the loan terms on behalf of the Partnership; provided, that the Anna PFC shall have the right to review and approve the financing arrangements and the terms and conditions of any Loan documents. 4. The Developer shall pay all costs and fees associated with applying for the Bonds, the Loan and the Tax Credits, which costs, along with all other pre-development costs incurred by the Developer (to the extent included within the approved budget), shall be reimbursed at Closing (as defined herein) from the proceeds of the Bonds and Equity. In the event this MOU is terminated or the transaction fails to close as contemplated herein, the Developer shall be solely responsible for all costs described above and the Anna PFC and its affiliates shall have no responsibility for payment or reimbursement of such costs. Memorandum of Understanding The Reserve at Anna [April ___], 2023 Page 4 of 14 5. THE DEVELOPER SHALL PROVIDE ANY GUARANTEES OF CONSTRUCTION COMPLETION, OPERATING EXPENSES, TAX CREDIT DELIVERY, AND THE LIKE THAT MAY BE REQUIRED IN CONJUNCTION WITH THE BOND FINANCING OR THE EQUITY FINANCING AND SUCH GUARANTEES SHALL BE SUBJECT TO APPROVAL IN FORM AND AMOUNT BY THE GUARANTORS IN THEIR SOLE DISCRETION. NEITHER THE ANNA PFC, THE GENERAL PARTNER NOR ANY OF THEIR AFFILIATES WILL PROVIDE ANY GUARANTEES OR INDEMNITIES IN CONNECTION WITH THE FINANCING OF THE PROJECT AND SHALL NOT BE LISTED AS A SECTION 50 GUARANTOR SHOULD THE PROJECT BE FINANCED WITH A HUD-INSURED LOAN. D. DESIGN AND CONSTRUCTION 1. The Developer shall provide comprehensive development services to the Partnership pursuant to a Development Agreement to be entered into by the Partnership and Developer. 2. The Developer shall prepare and promptly provide the Anna PFC a detailed development budget for the Project. 3. The Developer shall be responsible for obtaining the services of design professionals for the design of the site plan and design of the project. The Anna PFC will be provided copies of the final plans and specifications for the Project, including all construction contracts. 4. Reserved. 5. The Developer shall be responsible for obtaining all governmental approvals and permits needed in order to construct and operate the Project. 6. The Developer shall guarantee to the Partnership, the Investor LP and any lender, delivery of the Project on time and within the approved budget (as it may be amended or revised from time to time with appropriate approvals). The Developer shall provide, upon approval by the Investor LP and any lender, any approved and final material changes in the scope of work or plans and specifications (costing over $100,000 for a single change or $500,000 in the aggregate) during construction. 7. The Project shall be constructed so as to comply with ADA and Section 504 requirements, as applicable under federal and state law. E. MANAGEMENT AND OPERATION A manager designated by the Developer, and acceptable to the Anna PFC in its reasonable discretion, shall serve as the property manager (the “Manager”) for the Project, which will be memorialized in a management agreement (the “Management Agreement”). The amount of the management fee under the Management Agreement shall be a minimum of $35.00 per unit per month. Memorandum of Understanding The Reserve at Anna [April ___], 2023 Page 5 of 14 F. SOCIAL SERVICES The Developer will be responsible for initiating and arranging for social services to be provided (as required by the TDHCA) for the residents of the Project. The General Partner shall have the right to monitor the provision of such social services during the Compliance Period (as hereinafter defined). G. COMMUNITY SUPPORT The Developer shall be primarily responsible for interfacing with the local governmental officials in connection with support for the Project, and the Anna PFC shall provide reasonable cooperation in connection with such matters. H. TAX EXEMPTION The ownership structure contemplated herein is expected to generate ad valorem tax exemption for the Project. The Anna PFC, on behalf of the Partnership, shall work with the Developer and the applicable appraisal district to obtain confirmation of the availability of such exemption. If at any time the Project is determined to be subject to ad valorem taxation, the Anna PFC and the General Partner shall forfeit its right to any residual value or net cash flow as defined in the Partnership Agreement, so long as the Property remains subject to ad valorem taxation. The Anna PFC, in coordination with the Developer, shall use good faith efforts to cure the loss of the ad valorem tax exemption, and the forfeiture of residual value or net cash flow shall be pro-rated (if applicable) during any period of loss of the ad valorem tax exemption. In the event the 100% ad valorem tax exemption is lost for any reason and not restored, then the fee estate in the land shall (at the Partnership’s option) be conveyed to the Partnership at a nominal cost to the Partnership, and the Ground Lease shall be terminated to allow the Partnership to establish an exempt structure in the future; provided, however, that if the fee estate is conveyed to the Partnership and the General Partner is removed after the 15-year tax credit compliance period (the “Compliance Period”) other than for (i) a loss of the tax exemption due to the actions of the General Partner or its affiliates, (ii) a sale of the Project or (iii) cause, then the Partnership shall pay to the General Partner the original acquisition price of the land. I. FEES AND EXPENSES 1. The Developer shall be entitled to receive a development fee (the “Development Fee”) for its services in developing the Project. The amount of the Development Fee shall be equal to 15% of the Project’s total development costs, as calculated pursuant to applicable TDHCA guidelines. All payments of Development Fee shall be made pro-rata with 75% going to Developer and 25% going to the Anna PFC or its subsidiary (the “Anna PFC Share”). The Anna PFC Share shall be paid by the Partnership pro rata with the Developer’s share of the Development Fee. Memorandum of Understanding The Reserve at Anna [April ___], 2023 Page 6 of 14 2. The Ground Lessor shall be entitled to receive an annual lease payment under the Ground Lease on each January 1, commencing January 1, 2024, in the initial amount of $20,000 and increasing by 3% annually. The annual lease payment shall be payable as the first item in the cash flow waterfall under the Partnership Agreement and shall accrue without interest in the event net cash flow is insufficient to pay such lease payment in any year. 3. The General Partner shall be entitled to a distribution in the amount of 1.5% of the gross sales price pursuant to a sale or refinance of the Project. Such distribution shall be payable to the General Partner, subject to the availability of gross sales proceeds (or gross refinance proceeds, as the case may be) and shall be retained by the General Partner, with no requirement under any circumstances for the General Partner to share such distribution with the Developer. 4. For its services in connection with the management of the Partnership, the General Partner and Special LP shall each be entitled to receive a Partnership Management Fee in the initial amount of $10,000 per year and increasing by 3% annually, with the first payment starting in the year both stabilization and cash flow distributions commence; provided, however, that such fee shall accrue without interest in the event net cash flow is insufficient to pay such fee in any year. 5. Neither party shall enter into any contractual relationship or agreement relating to the Project that would cause either financial or legal liability to the other, without the other party’s prior written consent. 6. All reasonable expenses actually incurred by the Anna PFC in connection with this MOU, including but not limited to costs for staff time to review the proposed Project, the Anna PFC’s legal counsel, counsel to the General Partner and the Partnership, special real estate counsel, financial advisor and other expenses incurred by the Anna PFC in connection with the proposed Project (the “Costs”), shall be included in the Project’s development budget and reimbursed by the Partnership to the Anna PFC concurrently with the closing on the Bonds and the Loan (the “Closing”). 7. If, upon termination of this MOU or the Project, the Anna PFC has unreimbursed Costs, the Anna PFC shall invoice the Developer for these Costs and the Developer shall reimburse the Anna PFC for these Costs within 30 days of receipt of such invoice. Notwithstanding any language in this paragraph, the Anna PFC shall not be entitled to retain any of its Costs, if the Anna PFC breaches any term in this MOU or terminates pursuant to Paragraph K.11(f), (h) or (i) of this MOU. 8. For the avoidance of doubt, all fees payable to the Anna PFC described herein shall be in addition to any fees and costs of counsel or financial advisor to the Anna PFC payable in connection with the issuance of the Bonds. Memorandum of Understanding The Reserve at Anna [April ___], 2023 Page 7 of 14 J. LONG TERM OWNERSHIP At the end of the Compliance Period, the General Partner, the Anna PFC, or the Anna PFC’s designated affiliate shall have a right of first refusal to acquire the Project on the same terms as any third-party offer received by the Partnership that it intends to accept. In addition, as of the date of the Closing, the General Partner, or other Anna PFC affiliate shall have an option to acquire the interests of the Investor LP and the Special LP and an option to acquire the Project. Notwithstanding the Anna PFC’s purchase option and right of first refusal, should the Project be sold to a third-party, the Anna PFC will agree to transfer the Land to such third-party upon payment of $100. In the event the Special LP desires to sell or refinance the Project (any such sale may take the form of a sale of all, but not less than all, of the ownership interest in both the general and limited partner(s)), the Anna PFC and the General Partner shall cooperate with the Special LP in connection with such efforts. Nothing contained in this paragraph shall affect, limit or impair any purchase option or right of first refusal that either the Anna PFC or the General Partner may be entitled to exercise. The Developer (or an affiliate of the Developer) shall have an option to purchase the Investor LP interests. K. GUARANTORS’ REPURCHASE OPTION IF (I) THE GENERAL PARTNER TAKES ANY ACTION (OR OMITS TO TAKE AN ACTION THAT IS EXPLICITLY REQUIRED BY THE PARTNERSHIP AGREEMENT) WITHIN ITS SOLE AND EXCLUSIVE CONTROL AND SUCH ACTION OR INACTION RESULTS IN AN EVENT OF DEFAULT UNDER ANY OF THE BOND FINANCING DOCUMENTATION, THE LOAN DOCUMENTS, THE EQUITY FINANCING DOCUMENTATION, THE PROJECT OBLIGATIONS, OR THE PARTNERSHIP AGREEMENT; OR (II) THE GENERAL PARTNER TAKES ANY ACTION (OR OMITS TO TAKE AN ACTION THAT IS EXPLICITLY REQUIRED BY THE PARTNERSHIP AGREEMENT) WITHIN ITS SOLE AND EXCLUSIVE CONTROL AND SUCH ACTION OR ACTION CAUSES ANY GUARANTORS ANY QUANTIFIABLE LIABILITY WHICH SUCH GUARANTOR ACTUALLY PAYS UNDER ITS GUARANTY AGREEMENT(S), OR (III) THE PROJECT’S LOSS OF ITS AD VALOREM TAX EXEMPTION FOR ANY REASON OTHER THAN A CHANGE IN THE TEXAS CONSTITUTION OR OTHER APPLICABLE STATE LAW OR THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE ANNA PFC OR THE GENERAL PARTNER, WHICH LOSS REMAINS UNCURED FOR A PERIOD OF SIXTY (60) DAYS ((I), (II) AND (III) ARE REFERRED TO AS “REPURCHASE EVENTS”), THEN THE GUARANTOR, AND/OR ITS RESPECTIVE SUCCESSORS AND ASSIGNS OR DESIGNEES, SHALL HAVE THE SOLE AND EXCLUSIVE OPTION (WITH THE CONSENT OF THE INVESTOR LP) TO PURCHASE EITHER FROM THE ANNA PFC ITS OWNERSHIP INTEREST IN THE GENERAL PARTNER (THE “PFC OWNERSHIP INTEREST”) OR FROM THE GENERAL PARTNER ITS GENERAL PARTNER INTEREST IN THE PARTNERSHIP (THE “GP OWNERSHIP INTEREST”) FOR THE SUM OF $100.00; PLUS ALL UNPAID FEES AND UNREIMBURSED EXPENSES EARNED BY THE GENERAL PARTNER TO THE DATE OF THE REPURCHASE EVENT, WHICH SHALL BE EXERCISABLE BY ANY ONE OR MORE OF THE GUARANTORS, THEIR Memorandum of Understanding The Reserve at Anna [April ___], 2023 Page 8 of 14 SUCCESSORS AND ASSIGNS OR DESIGNEES, UPON FIFTEEN (15) BUSINESS DAYS WRITTEN NOTICE BY GUARANTORS TO THE ANNA PFC AND THE GENERAL PARTNER (THE “REPURCHASE OPTION”) AND THE OTHER GUARANTORS. IT SHALL NOT BE A REPURCHASE EVENT AND THIS REPURCHASE OPTION WILL NOT APPLY IF THE EVENT OF DEFAULT OR THE CAUSE OF GUARANTOR’S LIABILITY OR THE REPAYMENT OF THE BONDS, LOAN, OR EQUITY IS CAUSED IN WHOLE OR IN PART BY A MATTER OR ITEM OVER WHICH GUARANTORS OR AN AFFILIATE HAS FULL CONTROL OR FOR WHICH IT IS OTHERWISE RESPONSIBLE. THE REPURCHASE OPTION GRANTED BY THIS PARAGRAPH K. APPLY ONLY TO THE ACQUISITION OF THE PFC OWNERSHIP INTEREST AND THE GP OWNERSHIP INTEREST AND ARE GRANTED FOR $100.00 AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF IS HEREBY CONFIRMED AND ACKNOWLEDGED. THE REPURCHASE OPTION IN NO WAY REFERS TO, NOR APPLIES TO, ANY OTHER REAL OR PERSONAL PROPERTY OWNED BY THE ANNA PFC IN THE PROJECT, NOW OR IN THE FUTURE, OTHER THAN THE PFC OWNERSHIP INTEREST AND THE GP OWNERSHIP INTEREST. THE REPURCHASE OPTION IS SOLELY RELATED TO THE EXERCISE OF CONTROL OF THE AFFAIRS OF THE PARTNERSHIP TO ENSURE COMPLIANCE AND PERFORMANCE OF THE PROJECT OBJECTIVES, AND TO ENSURE PROTECTION OF THE GUARANTORS WITH RESPECT TO THE GUARANTEED OBLIGATIONS. L. MISCELLANEOUS 1. This MOU reflects the entire understanding between the parties and may only be amended in writing, signed by both parties. This MOU is a contract and not merely an “agreement to agree.” 2. Each party hereto is prohibited from assigning any of its interests, benefits or responsibilities hereunder to any unrelated third party, without the prior written consent of the other party, such consent not to be unreasonably withheld, conditioned, or delayed. 3. The parties agree to execute such documents and do other such reasonable things as may be necessary or appropriate to facilitate the development of the Project and the consummation of the agreements set forth herein. 4. The Anna PFC’s execution of this MOU is subject to approval by the Anna PFC’s Board of Directors. 5. This MOU may be executed in several counterparts, each of which shall be deemed to be an original and all of which together shall constitute one contract binding on all parties hereto, notwithstanding that all the parties shall not have signed the same counterpart 6. THIS MOU SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, EXCLUSIVE OF CONFLICT OF LAWS PRINCIPLES. Memorandum of Understanding The Reserve at Anna [April ___], 2023 Page 9 of 14 7. In case any one or more of the provisions contained in this MOU for any reason is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision hereof, and this MOU will be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 8. The parties hereto submit exclusively to the jurisdiction of the state and federal courts of Collin County, Texas, and venue for any cause of action arising hereunder shall lie exclusively in the state and federal courts of Collin County, Texas. 9. Should any party employ an attorney or attorneys to enforce any of the provisions hereof, to protect its interest in any manner arising under this MOU, or to recover damages for the breach of this MOU, the non-prevailing party in any action pursued in courts of competent jurisdiction (the finality of which is not legally contested) agrees to pay to the prevailing party all reasonable costs, damages and expenses, including specifically, but without implied limitation, attorneys’ fees, expended or incurred by the prevailing party in connection therewith. 10. The subject headings contained in this MOU are for reference purposes only and do not affect in any way the meaning or interpretation hereof. 11. This MOU shall continue until terminated upon the occurrence of any one of the following conditions: (a) The Anna PFC and the Developer sign a mutual consent to terminate this MOU; (b) The Project has not received a commitment for Tax Credits by December 31, 2023; (c) The Project has not received a commitment for Bond financing by December 15, 2023; (d) Loan and Equity financing for the Project are not closed by June 30, 2024; (e) The terms of the Loan and Equity financing documentation for the Project are unacceptable to the Anna PFC, in its sole discretion, and the Anna PFC provides the Developer notice of such fact and a 30-day opportunity to provide financing terms that are acceptable to the Anna PFC and the Developer, but the Developer does not do so; (f) The Anna PFC’s Board of Directors takes action to disapprove of the participation of the Anna PFC in the financing of the Project as described in this MOU at any time prior to the Closing; (g) Reserved; Memorandum of Understanding The Reserve at Anna [April ___], 2023 Page 10 of 14 (h) Either party breaches its obligations under this MOU, the non-breaching party provides the breaching party notice of such fact and a 15-day opportunity to cure, and the breaching party fails to do so; or (i) Either party files for bankruptcy protection, makes an assignment for the benefit of creditors, has a receiver appointed as to its assets, or generally becomes insolvent. 12. Upon termination of this MOU for any of the reasons cited above, neither party shall have any ongoing obligation to the other with respect to this MOU nor the Project, except for the obligation of the Developer to reimburse the Anna PFC for Costs as provided herein. 13. In addition, the provisions of this MOU with respect to the Project will be terminated when the General Partner is admitted to the Partnership and the Anna PFC and the Developer and their affiliates, as applicable, enter into definitive agreements with respect to the governance of the Partnership and the development, construction, financing, and operation of the Project as contemplated herein. 14. The parties acknowledge that the General Partner, the Anna PFC and its affiliates will be represented in this transaction by Chapman and Cutler LLP (“GP Counsel”). All costs of GP Counsel will be considered Costs hereunder and paid as provided herein. The Partnership, the Developer, the Special LP and their affiliates will be represented by separate counsel and will not be entitled to rely on GP Counsel for representation in this matter. [Signature Page to “Reserve at Anna” MOU] EXECUTED to be effective as of the date above shown. ANNA PUBLIC FACILITY CORPORATION By ____________________________________ Stan Carver II President LIBERTY MULTIFAMILY, LLC By ____________________________________ Name: ______________________________ Title: _______________________________ EXHIBIT A PARTNERSHIP AGREEMENT TERMS The following is a summary of terms that the Anna PFC will require in the Partnership Agreement. The following list is not intended to be exhaustive and is intended to supplement and not limit the terms of the MOU. REPRESENTATIONS • The General Partner will make representations only as to its existence and due authorization and execution of Partnership documents. • The General Partner will become a partner in the Partnership at Closing, therefore pre- closing items must be addressed by the Special LP or other Developer affiliate. Under no circumstances will the General Partner execute documents on behalf of the Partnership that are effective prior to the General Partner’s admission to the Partnership. • The General Partner is not performing due diligence on the Project. Therefore, any representations regarding the Project must be provided by the Special LP. • The General Partner’s representations are generally as to its own knowledge. The knowledge of the General Partner may not be qualified by phrases such as “after due inquiry.” The General Partner will make no inquiry. COVENANTS • The General Partner may covenant not to take affirmative actions, but the General Partner cannot covenant not to permit or allow others to do things. • The General Partner cannot covenant to maintain the property tax exemption, but the General Partner shall agree to cooperate with the Special LP in making any required filings. • Any covenants relating to the operation of the Partnership or the construction or operation of the Project should be made by the Special LP (including, but not limited to, qualification for tax credits). • The General Partner will not covenant to maintain adequate capital. INDEMNITIES AND GUARANTEES • The General Partner should be indemnified for all losses other than those caused by its gross negligence or willful misconduct. • The General Partner’s indemnification should not be conditioned on a court determination. • The General Partner will indemnify only for its own gross negligence or willful misconduct. The General Partner will not indemnify for actions or inactions of the Special LP. • The General Partner will not provide completion guarantees, environmental guarantees, credit guarantees, or covenant to make up for cash flow short falls. • The General Partner will not be required to make loans to the Partnership. • If the Partnership is required to provide a guarantee, the guarantee should either be limited to the assets of the Partnership or should explicitly state that the guarantee is not intended to be recourse to the General Partner. DUTIES AND OBLIGATIONS FOR ADMINISTRATION OF PARTNERSHIP • The General Partner will make a broad delegation to the Special LP with respect to the administration of the Partnership and the operation of the Project, which shall include, but not be limited to, the right of Special LP to execute any documents related to construction draws, trust requisitions, and capital contributions. • The Special LP will be responsible for obtaining any insurance required by the Partnership Agreement or other Partnership documents and will name the General Partner as additional insured parties where applicable. • The Special LP will be responsible for ensuring any requirements for maintaining the ad valorem tax exemption are met, including any ongoing correspondence with the applicable appraisal district. The Special LP shall cause its counsel, at the expense of the Partnership, to deliver an opinion regarding the ad valorem exemption, which opinion must be addressed to and in form and substance acceptable to the Anna PFC and the Ground Lessor. The General Partner will agree to provide reasonable cooperation at the direction of the Special LP with respect to the ad valorem tax exemption. • All reports that are required by the Investor LP shall be made by the Special LP, and any penalties imposed for late reports shall be imposed only on the Special LP. • Notices required by the Investor LP shall be made by the Special LP. OPTIONS/RIGHTS OF FIRST REFUSAL • The Anna PFC will be granted the option and right of first refusal described in the MOU. • The Special LP may be granted an option to acquire the Investor LP’s Partnership interests and the guarantor may be granted the Repurchase Option described in the MOU. TAXES AND ALLOCATIONS • The Special LP will be responsible for the preparation of the tax return and tax filings. The General Partner will cooperate with the Special LP to the extent its signature is required. • Losses in excess of capital accounts are allocated to the Special LP rather than the General Partner. • The General Partner will not have a deficit restoration obligation either annually or on liquidation. • The Special LP will be the “partnership representative” for the purposes of tax audits. • If the Partnership has an adjustment on audit, the GP will pay its allocated share but will not put additional funds into the Partnership. REMOVAL • Unless a removal is caused by its own gross negligence or willful misconduct, the General Partner’s and/or the Anna PFC’s causing of the loss of the tax exemption, or the General Partner’s and/or the Anna PFC’s causing of an event of default as set forth in the Memorandum of Understanding and/or the Partnership Agreement, the General Partner will not be liable for the costs related to removal or replacement. • The General Partner will not be liable for events after removal. MISCELLANEOUS • The governing law, jurisdiction and venue will be Texas. 2. FORMATION OF TRANSACTION ENTITIES (i). APFC RESERVE AT ANNA GP, LLC, AS GENERAL PARTNER (a) GENERAL PARTNER FORMATION RESOLUTION general partner formation resolution 4860-9517-6285 v2.docx 2310605 ANNA PUBLIC FACILITY CORPORATION RESOLUTION AUTHORIZING THE FORMATION OF APFC RESERVE AT ANNA GP, LLC, AS GENERAL PARTNER (THE “COMPANY”) TO [_____], IN CONNECTION WITH THE ANNA PUBLIC FACILITY CORPORATION MULTIFAMILY HOUSING REVENUE BONDS (THE RESERVE AT ANNA), SERIES 2023; AUTHORIZING THE DESIGNATION OF THE CORPORATION AS THE SOLE MEMBER OF THE COMPANY; APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF; RATIFYING CERTAIN ACTIONS HERETOFORE TAKEN IN CONNECTION WITH THE COMPANY; AUTHORIZING THE EXECUTION OF DOCUMENTS AND INSTRUMENTS NECESSARY OR CONVENIENT TO CARRY OUT THE PURPOSES OF THIS RESOLUTION; AND CONTAINING OTHER PROVISIONS RELATING THERETO WHEREAS, the Anna Public Facility Corporation (the “Corporation”) has been duly created and organized pursuant to and in accordance with the provisions of the Texas Public Facility Corporation Act, Chapter 303, Local Government Code, as amended (the “Act”) for the purpose of providing a means of financing the costs of the acquisition, construction, rehabilitation, renovation, repair, equipping furnishing and placement in service of public facilities; and WHEREAS, the Member intends to issue, sell and deliver its Multifamily Housing Revenue Bonds (The Reserve at Anna), Series 2023, in an aggregate principal amount not to exceed $32,000,000 (the “Bonds”) to provide for the financing by [_____], a Texas limited partnership (the “Borrower”), of the acquisition, construction and equipping of a multifamily residential rental development to be known as The Reserve at Anna located in the City of Anna, Collin County, Texas (the “Development”), and the payment of certain costs of issuance of the Bonds in accordance with the Constitution and laws of the State of Texas; and WHEREAS, the Board of Directors of the Corporation has determined that it is in the best interest of the Corporation to act as the sole member of APFC Reserve at Anna GP, LLC (the “Company”), which will be the general partner of the Borrower; and WHEREAS, as the sole member of the Company, the Corporation desires to appoint officers of the Company and authorize the officers to enter into agreements on behalf of and for the benefit of the Borrower; to approve of the Company’s formation and the form and substance of its Limited Liability Company Agreement (the “Company Agreement”); and to ratify all actions previously taken on behalf of the Company in connection with the issuance of the Bonds and operation of the Development; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ANNA PUBLIC FACILITY CORPORATION: Section 1. Formation of Company. The formation of APFC Reserve at Anna GP, LLC is hereby approved and ratified. Section 2. Designation of Sole Member. The designation of the Corporation as the sole member of the Company is hereby approved and ratified. Section 3. Approval and Execution of the Company Agreement. The form and substance of the Company Agreement are hereby approved, and the officers of the Corporation, as sole member of the Company, are each hereby authorized to execute the Company Agreement. Section 4. Appointment of Officers of the Company. Stan Carver II is appointed President, Danny Ussery is appointed Vice President and Pete Cain is appointed Secretary of the Company. Section 5. Execution and Delivery of Financing Documents. The officers of the Company are each hereby authorized to negotiate the terms of, execute and attest to any such agreements, assignments, bonds, certificates, contracts, documents, instruments, releases, financing statements, letters of instruction, written requests and other papers, whether or not mentioned herein, as may be necessary or convenient to carry out or assist in carrying out the purposes of this Resolution. Section 6. Ratification of Previous Actions. The Corporation hereby ratifies, confirms and adopts all actions previously taken on behalf of the Company or the Borrower to carry into effect the transactions contemplated by this Resolution. Section 7. Effective Date. This Resolution shall be in full force and effect from and upon its adoption. Section 8. Severability. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] [Signature Page to Formation Resolution of APFC Reserve at Anna GP, LLC] PASSED AND APPROVED the 25th day of April, 2023. ANNA PUBLIC FACILITY CORPORATION By ____________________________________ Stan Carver II President (b) GENERAL PARTNER LLC AGREEMENT general partner - llc agreement 4862-8083-9773 v2.docx 2310605 LIMITED LIABILITY COMPANY AGREEMENT OF APFC RESERVE AT ANNA GP, LLC This Limited Liability Company Agreement (this “Agreement”) of APFC Reserve at Anna GP, LLC (the “Company”) is entered into and effective [_____], 2023 (the “Effective Date”) by the Anna Public Facility Corporation as the sole member of the Company (the “Member”). The Member hereby forms a limited liability company pursuant to and in accordance with the Texas Limited Liability Company Act, as amended from time to time (currently Chapter 101 of the Texas Business Organizations Code), (the “Act”) by filing a Certificate of Formation with the Texas Secretary of State and hereby agrees as follows: 1. Name The name of the limited liability company formed hereby is APFC Reserve at Anna GP, LLC. 2. Purpose The sole purposes of the Company are to be admitted as a partner to and to serve as the general partner of [_____], a Texas limited partnership (the “Owner”), and in connection therewith, to own, hold, sell, dispose of or otherwise deal with its partnership interest in the Owner. 3. Registered Office The address of the registered office of the Company in the State of Texas is c/o Anna Public Facility Corporation, 120 West 7th Street, Anna, Texas 75409. 4. Registered Agent The name and address of the registered agent of the Company for service of process on the Company in the State of Texas is Anna Public Facility Corporation, 120 West 7th Street, Anna, Texas 75409. 5. Member The names and the business, residence or mailing addresses of the Member is as follows: Anna Public Facility Corporation 120 West 7th Street Anna, Texas 75409. 6. Powers The business and affairs of the Company shall be managed by the Member. The Member shall have the power to do any and all acts necessary or convenient to or for the furtherance of the purposes described herein, including all powers, statutory or otherwise, possessed by members under the laws of the State of Texas. The Member shall have the authority to bind the Company. 7. Dissolution The term of the Company commenced on the filing of the Certificate of Formation Limited Liability Company with the Texas Secretary of State and shall be perpetual unless dissolved as provided in this Agreement. 8. Capital Contributions The Member has contributed $10,000, in cash, and no other property, to the Company. 9. Additional Contributions No Member is required to make any additional capital contribution to the Company. 10. Allocation of Profits and Losses The Company’s profits and losses shall be allocated in proportion to the capital contributions of the Members. 11. Distributions Distributions shall be made to the Members at the times and in the aggregate amounts determined by the Members. Such distributions shall be allocated among the Member in the same proportion as their capital account balances. 12. Assignments A Member may assign his limited liability company interest in whole or in part only with the consent of the other Member. 13. Resignation Without the consent of the remaining Members, a Member may not resign from the Company. 14. Admission of Additional Members One (1) or more additional members of the Company may be admitted to the Company with the consent of the Members and upon being so admitted shall become bound by all of the terms of this Agreement and shall execute a written joinder to this Agreement. 15. Liability of Members The Members shall not have any liability for the obligations or liabilities of the Company except to the extent provided in the Act. The Company shall indemnify, in accordance with and to the full extent now or hereafter permitted by law, the Members and any officer or employee of the Company, and may so indemnify any agent of the Company, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administration or investigative (including, without limitation, an action by or in the right of the Company) by reason of any action or omission in their respective capacities against any liabilities, expenses (including, without limitation, attorneys’ fees and expenses and any other costs and expenses incurred in connection with defending such action, suit or proceeding), judgments, fines and amounts paid in settlement actually and reasonably incurred by the Person in connection with such action, suit or proceeding, if the Person acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe its, his or her conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption (i) that the Person did not act in good faith and in a manner which it, he or she reasonably believed to be in or not opposed to the best interests of the Company, and (ii) with respect to any criminal action or proceeding, that the Person had reasonable cause to believe its, his or her conduct was unlawful. Expenses (including, without limitation, attorneys’ fees and expenses) incurred by a Person seeking indemnification hereunder shall be paid in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking from the Person to repay such amount if it shall ultimately be determined that the Person is not entitled to indemnification. For purposes of the preceding paragraph, the word “Person” shall include each Member and any officer, employee or agent of the Company. 16. Officers The officers of the Company shall be a President, a Vice President and a Secretary. Such offices shall be assumed by the persons serving in the respective office on the Board of Directors of the Member. The President shall be the chief executive officer of the Company and shall be in general charge of the properties and affairs of the Company; shall preside at all meetings; and in furtherance of the purposes of the Company, may sign and execute all contracts, conveyances, franchises, bonds, deeds, assignments, mortgages, notes and other instruments in the name of the Company. The Vice President shall carry out the powers and responsibilities of the President when the President is absent or unable to act. The Secretary shall attend to the giving and serving of all notices; in furtherance of the purposes of the Company, may sign with the President or Vice President in the name of the Company, and/or attest the signature thereto, all contracts, conveyances, franchises, bonds, deeds, assignments, mortgages, notes and other instruments of the Company; and shall have charge of the corporate books, records, documents and instruments, and such other books and papers as may be necessary, all of which shall at all reasonable times be open to inspection upon application at the office of the Company during business hours. 17. Governing Law This Agreement shall be governed by, and construed under, the laws of the State of Texas, all rights and remedies being governed by said laws. 18. Amendment This Agreement may be amended in writing by the Members. [Signature Page Follows] [Signature Page to the LLC Agreement of APFC Reserve at Anna GP, LLC] IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, has duly executed this Limited Liability Company Agreement as of the Effective Date. ANNA PUBLIC FACILITY CORPORATION, as sole member By ____________________________________ Stan Carver II President (ii). APFC RESERVE AT ANNA HOLDINGS, LLC, AS GROUND LESSOR (a) GROUND LESSOR FORMATION RESOLUTION ground lessor formation resolution 4862-7638-3325 v2.docx 2310605 ANNA PUBLIC FACILITY CORPORATION RESOLUTION AUTHORIZING THE FORMATION OF APFC RESERVE AT ANNA HOLDINGS, LLC (THE “GROUND LESSOR”) IN CONNECTION WITH THE ANNA PUBLIC FACILITY CORPORATION MULTIFAMILY HOUSING REVENUE BONDS (THE RESERVE AT ANNA), SERIES 2023; AUTHORIZING THE DESIGNATION OF THE ANNA PUBLIC FACILITY CORPORATION (THE “CORPORATION”) AS THE SOLE MEMBER OF THE GROUND LESSOR; APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF; RATIFYING CERTAIN ACTIONS HERETOFORE TAKEN IN CONNECTION WITH THE GROUND LESSOR; AUTHORIZING THE EXECUTION OF DOCUMENTS AND INSTRUMENTS NECESSARY OR CONVENIENT TO CARRY OUT THE PURPOSES OF THIS RESOLUTION; AND CONTAINING OTHER PROVISIONS RELATING THERETO WHEREAS, the Anna Public Facility Corporation (the “Corporation”) has been duly created and organized pursuant to and in accordance with the provisions of the Texas Public Facility Corporation Act, Chapter 303, Local Government Code, as amended (the “Act”), for the purpose of providing a means of financing the costs of the acquisition, construction, rehabilitation, renovation, repair, equipping furnishing and placement in service of public facilities; and WHEREAS, pursuant to the Act, the Corporation intends to issue, sell and deliver its Multifamily Housing Revenue Bonds (The Reserve at Anna), Series 2023, in an aggregate principal amount not to exceed $32,000,000 (the “Bonds”) to provide for (i) the financing by [_____], a Texas limited partnership (the “Borrower”), of the acquisition, construction and equipping of a public facility consisting of a multifamily residential rental development for low and moderate income tenants to be known as The Reserve at Anna, and located in the City of Anna, Collin County, Texas; and (ii) the payment of certain costs of issuance of the Bonds in accordance with the Constitution and laws of the State of Texas; and WHEREAS, APFC Reserve at Anna Holdings, LLC (the “Ground Lessor”), a Texas limited liability company whose sole member is the Corporation will enter into a ground lease (the “Ground Lease”) with the Borrower; and WHEREAS, as the sole member of the Ground Lessor, the Corporation desires to authorize all action necessary and appropriate to enter into and carry out all actions under the Ground Lease, to appoint officers of the Ground Lessor; to approve of the Ground Lessor’s formation and the form and substance of its Limited Liability Company Agreement (the “Company Agreement”); and to ratify all actions previously taken on behalf of the Ground Lessor; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ANNA PUBLIC FACILITY CORPORATION THAT: Section 1. Formation of Ground Lessor. The formation of APFC Reserve at Anna Holdings, LLC is hereby approved and ratified. Section 2. Designation of Sole Member. The designation of the Corporation as the sole member of the Ground Lessor is hereby approved and ratified. Section 3. Approval and Execution of the Company Agreement. The form and substance of the Company Agreement are hereby approved, and the officers of the Corporation, as sole member of the Ground Lessor, are each hereby authorized to execute the Company Agreement. Section 4. Appointment of Officers of the Ground Lessor. Stan Carver II is appointed President, Danny Ussery is appointed Vice President and Pete Cain is appointed Secretary of the Ground Lessor. Section 5. Execution and Delivery of Financing Documents. The officers of the Ground Lessor are each hereby authorized to negotiate the terms of, execute and attest to the Ground Lease and any other such agreements, assignments, notes, certificates, contracts, documents, instruments, releases, financing statements, letters of instruction, written requests and other papers, whether or not mentioned herein, as may be necessary or convenient to carry out or assist in carrying out the purposes of this Resolution. Section 6. Ratification of Previous Actions. The Corporation hereby ratifies, confirms and adopts all actions previously taken on behalf of the Ground Lessor to carry into effect the transactions contemplated by this Resolution. Section 7. Effective Date. This Resolution shall be in full force and effect from and upon its adoption. Section 8. Severability. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. [Remainder of Page Intentionally Left Blank] [Signature Page to APFC Reserve at Anna Holdings, LLC Formation Resolution] PASSED AND APPROVED the 25th day of April, 2023. ANNA PUBLIC FACILITY CORPORATION By ____________________________________ Stan Carver II President (b) GROUND LESSOR LLC AGREEMENT ground lessor - llc agreement 4874-0111-2157 v2.doc 2310605 LIMITED LIABILITY COMPANY AGREEMENT OF APFC RESERVE AT ANNA HOLDINGS, LLC This Limited Liability Company Agreement (this “Agreement”) of APFC Reserve at Anna Holdings, LLC (the “Company”) is entered into and effective [_____], 2023 (the “Effective Date”) by the Anna Public Facility Corporation, as the sole member of the Company (the “Member”). The Member hereby forms a limited liability company pursuant to and in accordance with the Texas Limited Liability Company Act, as amended from time to time (currently Chapter 101 of the Texas Business Organizations Code), (the “Act”) by filing a Certificate of Formation with the Texas Secretary of State and hereby agrees as follows: 1. Name The name of the limited liability company formed hereby is APFC Reserve at Anna Holdings, LLC. 2. Purpose The general purpose of the Company is to assist the Member in financing public facilities in the jurisdiction of the Anna Public Facility Corporation. The specific purpose of the Company is to acquire, own and lease a tract of real property in City of Anna, Collin County, Texas, on which a multifamily residence will be constructed. 3. Registered Office The address of the registered office of the Company in the State of Texas is c/o Anna Public Facility Corporation, 120 West 7th Street, Anna, Texas 75409. 4. Registered Agent The name and address of the registered agent of the Company for service of process on the Company in the State of Texas is Anna Public Facility Corporation, 120 West 7th Street, Anna, Texas 75409. 5. Members The names and the business, residence or mailing addresses of the Member is as follows: Anna Public Facility Corporation 120 West 7th Street Anna, Texas 75409. 6. Powers The business and affairs of the Company shall be managed by the Member. The Member shall have the power to do any and all acts necessary or convenient to or for the furtherance of the purposes described herein, including all powers, statutory or otherwise, possessed by members under the laws of the State of Texas. The Member shall have the authority to bind the Company. 7. Dissolution The term of the Company commenced on the filing of the Certificate of Formation Limited Liability Company with the Texas Secretary of State and shall be perpetual unless dissolved as provided in this Agreement. 8. Capital Contributions The Member has contributed $10,000, in cash, and no other property, to the Company. 9. Additional Contributions No Member is required to make any additional capital contribution to the Company. 10. Allocation of Profits and Losses The Company’s profits and losses shall be allocated in proportion to the capital contributions of the Members. 11. Distributions Distributions shall be made to the Members at the times and in the aggregate amounts determined by the Members. Such distributions shall be allocated among the Member in the same proportion as their capital account balances. 12. Assignments A Member may assign its limited liability company interest in whole or in part only with the consent of the other Members. 13. Resignation Without the consent of the remaining Members, a Member may not resign from the Company. 14. Admission of Additional Members One (1) or more additional members of the Company may be admitted to the Company with the consent of the Members and upon being so admitted shall become bound by all of the terms of this Agreement and shall execute a written joinder to this Agreement. 15. Liability of Members The Members shall not have any liability for the obligations or liabilities of the Company except to the extent provided in the Act. The Company shall indemnify, in accordance with and to the full extent now or hereafter permitted by law, the Members and any officer or employee of the Company, and may so indemnify any agent of the Company, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administration or investigative (including, without limitation, an action by or in the right of the Company) by reason of any action or omission in their respective capacities against any liabilities, expenses (including, without limitation, attorneys’ fees and expenses and any other costs and expenses incurred in connection with defending such action, suit or proceeding), judgments, fines and amounts paid in settlement actually and reasonably incurred by the Person in connection with such action, suit or proceeding, if the Person acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe its, his or her conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption (i) that the Person did not act in good faith and in a manner which it, he or she reasonably believed to be in or not opposed to the best interests of the Company, and (ii) with respect to any criminal action or proceeding, that the Person had reasonable cause to believe its, his or her conduct was unlawful. Expenses (including, without limitation, attorneys’ fees and expenses) incurred by a Person seeking indemnification hereunder shall be paid in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking from the Person to repay such amount if it shall ultimately be determined that the Person is not entitled to indemnification. For purposes of the preceding paragraph, the word “Person” shall include each Member and any officer, employee or agent of the Company. 16. Officers The officers of the Company shall be a President, a Vice President and a Secretary. The President shall be the chief executive officer of the Company and shall be in general charge of the properties and affairs of the Company; shall preside at all meetings; in furtherance of the purposes of the Company, may sign and execute all contracts, conveyances, franchises, bonds, deeds, assignments, mortgages, notes and other instruments in the name of the Company. The Vice President shall carry out the powers and responsibilities of the President when the President is absent or unable to act. The Secretary shall attend to the giving and serving of all notices; in furtherance of the purposes of the Company, may sign with the President or Vice President in the name of the Company, and/or attest the signature thereto, all contracts, conveyances, franchises, bonds, deeds, assignments, mortgages, notes and other instruments of the Company; shall have charge of the corporate books, records, documents and instruments, and such other books and papers as may be necessary, all of which shall at all reasonable times be open to inspection upon application at the office of the Company during business hours. Such offices shall be assumed by the persons serving in the respective office on the Board of Directors of the Member. 17. Governing Law This Agreement shall be governed by, and construed under, the laws of the State of Texas, all rights and remedies being governed by said laws. 18. Amendment This Agreement may be amended in writing by the Members. [Signature Page Follows] [Signature Page to the LLC Agreement of APFC Reserve at Anna Holdings, LLC] IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this Limited Liability Company Agreement as of the Effective Date. ANNA PUBLIC FACILITY CORPORATION, as sole member By ____________________________________ Stan Carver II President (iii). APFC RESERVE AT ANNA DEVELOPMENT, LLC, AS CO-DEVELOPER (a) CO-DEVELOPER FORMATION RESOLUTION co-developer formation resolution 4867-1036-2717 v2.docx 2310605 ANNA PUBLIC FACILITY CORPORATION RESOLUTION AUTHORIZING THE FORMATION OF APFC RESERVE AT ANNA DEVELOPMENT, LLC (THE “CO-DEVELOPER”) IN CONNECTION WITH THE ANNA PUBLIC FACILITY CORPORATION MULTIFAMILY HOUSING REVENUE BONDS (THE RESERVE AT ANNA), SERIES 2023; AUTHORIZING THE DESIGNATION OF THE ANNA PUBLIC FACILITY CORPORATION AS THE SOLE MEMBER OF THE CO-DEVELOPER; APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF; RATIFYING CERTAIN ACTIONS HERETOFORE TAKEN IN CONNECTION WITH THE CO-DEVELOPER; AUTHORIZING THE EXECUTION OF DOCUMENTS AND INSTRUMENTS NECESSARY OR CONVENIENT TO CARRY OUT THE PURPOSES OF THIS RESOLUTION; AND CONTAINING OTHER PROVISIONS RELATING THERETO WHEREAS, the Anna Public Facility Corporation (the “Corporation”) has been duly created and organized pursuant to and in accordance with the provisions of the Texas Public Facility Corporation Act, Chapter 303, Local Government Code, as amended (the “Act”), for the purpose of providing a means of financing the costs of the acquisition, construction, rehabilitation, renovation, repair, equipping furnishing and placement in service of public facilities; and WHEREAS, pursuant to the Act, the Corporation intends to issue, sell and deliver its Multifamily Housing Revenue Bonds (The Reserve at Anna), Series 2023, in an aggregate principal amount not to exceed $32,000,000 (the “Bonds”) to provide for (i) the financing by [_____], a Texas limited partnership (the “Borrower”), of the acquisition, construction and equipping of a public facility consisting of a multifamily residential rental development for low and moderate income tenants to be known as The Reserve at Anna, and located in the City of Anna, Collin County, Texas; and (ii) the payment of certain costs of issuance of the Bonds in accordance with the Constitution and laws of the State of Texas; and WHEREAS, APFC Reserve at Anna Development, LLC (the “Co-Developer”), a Texas limited liability company whose sole member is the Corporation, will serve as co-developer to the Borrower in connection with the acquisition, owning, leasing and managing of the Development pursuant to a Development Agreement (the “Development Agreement”) between the Co- Developer and an affiliate or designee the Borrower; and WHEREAS, as the sole member of the Co-Developer, the Corporation desires to authorize all action necessary and appropriate to enter into and carry out all actions for the benefit of the Borrower in connection with the Development, to appoint officers of the Co-Developer; to approve of the Co-Developer’s formation and the form and substance of its Limited Liability Company Agreement (the “Company Agreement”); and to ratify all actions previously taken on behalf of the Co-Developer; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ANNA PUBLIC FACILITY CORPORATION THAT: Section 1. Formation of Co-Developer. The formation of APFC Reserve at Anna Development, LLC is hereby approved and ratified. Section 2. Designation of Sole Member. The designation of the Corporation as the sole member of the Co-Developer is hereby approved and ratified. Section 3. Approval and Execution of the Company Agreement. The form and substance of the Company Agreement are hereby approved, and the officers of the Corporation, as sole member of the Co-Developer, are each hereby authorized to execute the Company Agreement. Section 4. Appointment of Officers of the Co-Developer. Stan Carver II is appointed President, Danny Ussery is appointed Vice President and Pete Cain is appointed Secretary of the Co-Developer. Section 5. Execution and Delivery of Financing Documents. The officers of the Co- Developer are each hereby authorized to negotiate the terms of, execute and attest to the Development Agreement and any other such agreements, assignments, notes, certificates, contracts, documents, instruments, releases, financing statements, letters of instruction, written requests and other papers, whether or not mentioned herein, as may be necessary or convenient to carry out or assist in carrying out the purposes of this Resolution. Section 6. Ratification of Previous Actions. The Corporation hereby ratifies, confirms and adopts all actions previously taken on behalf of the Co-Developer to carry into effect the transactions contemplated by this Resolution. Section 7. Effective Date. This Resolution shall be in full force and effect from and upon its adoption. Section 8. Severability. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. [Remainder of Page Intentionally Left Blank] [Signature Page to APFC Reserve at Anna Development, LLC Formation Resolution] PASSED AND APPROVED the 25th day of April, 2023. ANNA PUBLIC FACILITY CORPORATION By ____________________________________ Stan Carver II President (b) CO-DEVELOPER LLC AGREEMENT co-developer - llc agreement 4892-1128-2013 v2.doc 2310605 LIMITED LIABILITY COMPANY AGREEMENT OF APFC RESERVE AT ANNA DEVELOPMENT, LLC This Limited Liability Company Agreement (this “Agreement”) of APFC Reserve at Anna Development, LLC (the “Company”) is entered into and effective [_____], 2023 (the “Effective Date”) by the Anna Public Facility Corporation, as the sole member of the Company (the “Member”). The Member hereby forms a limited liability company pursuant to and in accordance with the Texas Limited Liability Company Act, as amended from time to time (currently Chapter 101 of the Texas Business Organizations Code), (the “Act”) by filing a Certificate of Formation with the Texas Secretary of State and hereby agrees as follows: 1. Name The name of the limited liability company formed hereby is APFC Reserve at Anna Development, LLC. 2. Purpose The general purpose of the Company is to assist the Member in providing public facilities in the jurisdiction of the Anna Public Facility Corporation. The specific purpose of the Company is to serve as co-developer in connection with the development of a multifamily housing development in City of Anna, Collin County, Texas. 3. Registered Office The address of the registered office of the Company in the State of Texas is c/o Anna Public Facility Corporation, 120 West 7th Street, Anna, Texas 75409. 4. Registered Agent The name and address of the registered agent of the Company for service of process on the Company in the State of Texas is Anna Public Facility Corporation, 120 West 7th Street, Anna, Texas 75409. 5. Members The names and the business, residence or mailing addresses of the Member is as follows: Anna Public Facility Corporation 120 West 7th Street Anna, Texas 75409 6. Powers The business and affairs of the Company shall be managed by the Member. The Member shall have the power to do any and all acts necessary or convenient to or for the furtherance of the purposes described herein, including all powers, statutory or otherwise, possessed by members under the laws of the State of Texas. The Member shall have the authority to bind the Company. 7. Dissolution The term of the Company commenced on the filing of the Certificate of Formation Limited Liability Company with the Texas Secretary of State and shall be perpetual unless dissolved as provided in this Agreement. 8. Capital Contributions The Member has contributed $10,000, in cash, and no other property, to the Company. 9. Additional Contributions No Member is required to make any additional capital contribution to the Company. 10. Allocation of Profits and Losses The Company’s profits and losses shall be allocated in proportion to the capital contributions of the Members. 11. Distributions Distributions shall be made to the Members at the times and in the aggregate amounts determined by the Members. Such distributions shall be allocated among the Member in the same proportion as their capital account balances. 12. Assignments A Member may assign its limited liability company interest in whole or in part only with the consent of the other Members. 13. Resignation Without the consent of the remaining Members, a Member may not resign from the Company. 14. Admission of Additional Members One (1) or more additional members of the Company may be admitted to the Company with the consent of the Members and upon being so admitted shall become bound by all of the terms of this Agreement and shall execute a written joinder to this Agreement. 15. Liability of Members The Members shall not have any liability for the obligations or liabilities of the Company except to the extent provided in the Act. The Company shall indemnify, in accordance with and to the full extent now or hereafter permitted by law, the Members and any officer or employee of the Company, and may so indemnify any agent of the Company, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administration or investigative (including, without limitation, an action by or in the right of the Company) by reason of any action or omission in their respective capacities against any liabilities, expenses (including, without limitation, attorneys’ fees and expenses and any other costs and expenses incurred in connection with defending such action, suit or proceeding), judgments, fines and amounts paid in settlement actually and reasonably incurred by the Person in connection with such action, suit or proceeding, if the Person acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe its, his or her conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption (i) that the Person did not act in good faith and in a manner which it, he or she reasonably believed to be in or not opposed to the best interests of the Company, and (ii) with respect to any criminal action or proceeding, that the Person had reasonable cause to believe its, his or her conduct was unlawful. Expenses (including, without limitation, attorneys’ fees and expenses) incurred by a Person seeking indemnification hereunder shall be paid in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking from the Person to repay such amount if it shall ultimately be determined that the Person is not entitled to indemnification. For purposes of the preceding paragraph, the word “Person” shall include each Member and any officer, employee or agent of the Company. 16. Officers The officers of the Company shall be a President, a Vice President and a Secretary. The President shall be the chief executive officer of the Company and shall be in general charge of the properties and affairs of the Company; shall preside at all meetings; in furtherance of the purposes of the Company, he may sign and execute all contracts, conveyances, franchises, bonds, deeds, assignments, mortgages, notes and other instruments in the name of the Company. The Vice President shall carry out the powers and responsibilities of the President when the President is absent or unable to act. The Secretary shall attend to the giving and serving of all notices; in furtherance of the purposes of the Company, may sign with the President or Vice President in the name of the Company, and/or attest the signature thereto, all contracts, conveyances, franchises, bonds, deeds, assignments, mortgages, notes and other instruments of the Company; shall have charge of the corporate books, records, documents and instruments, and such other books and papers as may be necessary, all of which shall at all reasonable times be open to inspection upon application at the office of the Company during business hours. Such offices shall be assumed by the persons serving in the respective office on the Board of Directors of the Member. 17. Governing Law This Agreement shall be governed by, and construed under, the laws of the State of Texas, all rights and remedies being governed by said laws. 18. Amendment This Agreement may be amended in writing by the Members. [Signature Page Follows] [Signature Page to the LLC Agreement of APFC Reserve at Anna Development, LLC] IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this Limited Liability Company Agreement as of the Effective Date. ANNA PUBLIC FACILITY CORPORATION, as sole member By ____________________________________ Stan Carver II President STA TE H IGHWAY 1 2 1 ( A V AR IA B L E W ID TH R IGH T -O F -WA Y )PORTION OFANNA/121 LAND HOLDINGS, LLCDOC. NO. 20160128000104440O.P.R.C.C.T.1,089,043 SQ. FTOR 25.001 ACRESS 4 8 ° 1 6 ' 0 8 "W 1 3 4 1 . 7 5 'L1LOU GIGLIOTTIDOC. NO. 20140703000688450O.P.R.C.C.T.XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXAPPOXIMATE LOCATION ABSTRACT LINE LOU GIGLIOTTIDOC. NO. 20150512000550420O.P.R.C.C.T.VICTOR A. WOODLING, JR.DOC. NO. 20100108000023560O.P.R.C.C.T.CARLOS SERENOSDOC. NO. 20200601000803020O.P.R.C.C.T.JESUS FRANCODOC. NO. 20140401000305400O.P.R.C.C.T.FIDENCIO SALAZAR JR.INST. NO. 20171027001434640O.P.R.C.C.T.RICKY FOX &TARA FOXDOC. NO. 20130729001058470O.P.R.C.C.T.APPOXIMATE LOCATIONABSTRACT LINEWOODMARKERFOUND1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFC1/2" IRFCFARM ROAD NO. 28621/2" IRFCCOUNTY ROAD NO. 526P.O.B.DRAINAGE EASEMENTVOLUME 567, PAGE 526R.P.R.C.C.T.ITEM MDRAINAGE EASEMENTVOLUME 570, PAGE 460D.R.C.C.T.ITEM GVARIABLE WIDTH ROAD EASEMENTCLERKS FILE NO. 20150409000395530R.P.R.C.C.T.ITEM OVARIABLE WIDTH ROAD EASEMENTCLERKS FILE NO. 20150409000395530R.P.R.C.C.T.ITEM OVARIABLE WIDTH ROAD EASEMENTCLERKS FILE NO. 20150409000395530R.P.R.C.C.T.ITEM OS 90°00'00" W 2053.06'P.O.C.S 88°56'54" W238.83'S 88°56'54" W 1115.52'N 12°34'14" W358.32'S 77°27'26" W19.34'N 12°33'33" W2.44'N 15°51'27" E118.82'N 90°00'00" E 2873.84'1/2" IRS1/2" IRS1/2" IRS1/2" IRSNOTICE OF LIS PENDENSCLERKS FILE NO. 20180710000858770O.P.R.C.C.T.211,359 SQ. FT. OR4.85 ACRESPARCEL 24EINST. NO. 20180710000858770O.P.R.C.C.T.NOTICE OF LIS PENDENSCLERKS FILE NO. 20180710000858770O.P.R.C.C.T.211,359 SQ. FT. OR4.85 ACRESREMAINDER OFANNA/121 LAND HOLDINGS, LLCDOC. NO. 20160128000104440O.P.R.C.C.T.REMAINDER OFANNA/121 LAND HOLDINGS, LLCDOC. NO. 20160128000104440O.P.R.C.C.T.1/2" IRS1/2" IRSREMAINDER OFANNA/121 LAND HOLDINGS, LLCDOC. NO. 20160128000104440O.P.R.C.C.T.S 90°00'00" W 2501.55'5/8" IRFC STAMPED"TEXAS DEPARTMENTOF TRANSPORTATIONROW MONUMENT"5/8" IRFC STAMPED"TEXAS DEPARTMENTOF TRANSPORTATIONROW MONUMENT"5/8" IRFC STAMPED"TEXAS DEPARTMENTOF TRANSPORTATIONROW MONUMENT"5/8" IRFC STAMPED"TEXAS DEPARTMENTOF TRANSPORTATIONROW MONUMENT"1/2" IRFCR=1387.50L=688.15CB=N1°38'57"ELC=681.12Δ=28°25'00"N 15°51'27" E169.38'R=995.95L=247.21CB=N8°46'30"ELC=246.58Δ=14°13'19"S 4 8 ° 1 7 ' 1 6 " W 6 1 1 . 1 0 'TELEPHONE MANHOLETRAFFIC SIGNAL POLETRAFFIC SIGNAL BOXSWB MAN HOLEGAS MAN HOLEVAULTTREEEDP-O-WVMPTHGVGAS METERGAS VALVETELEPHONE PEDESTALPOWER POLEDOWN GUYS.S. MAN HOLECLEAN OUTSIGNLIGHT POLESCFIRE HYDRANTWATER METERFUEL PORTWATER VALVETRANSFORMER PADELECTRIC METERSTORM DRAIN MAN HOLEIRON PIPE FENCEHYDFSGSURVEYING * CONSULTING * MANAGEMENT SURVEY GROUPR.M.1.REVISIONNO.DATE2.3.COPYRIGHT SURVEY GROUP, LLC ALL RIGHTS RESERVED. NO PART OF THIS DRAWING MAY BEREPRODUCED BY PHOTOCOPYING, RECORDING OR BY ANY OTHER MEANS, OR STORED, PROCESSED ORTRANSMITTED IN OR BY ANY COMPUTER OR OTHER SYSTEMS WITHOUT THE PRIOR WRITTEN PERMISSION OFTHE SURVEYOR. COPIES OF THIS SURVEY WITHOUT THE ORIGINAL SIGNATURE ARE NOT VALID.TBPS No. 101733-00MONITORING WELLW-OHE-OVER HEAD ELECTRICPAGE 1 OF 21" = 150'11/22/201616-134(817) 354-14451475 HERITAGE PARKWAY, STE 217MANSFIELD, TEXAS 76063surveygroup@att.netWilliam P. PriceRegistered Professional Land Surveyor No. 3047Dated: November 22, 2016FLOOD CERTIFICATEAs determined by the FLOOD INSURANCE RATE MAPS for Collin County, Texas, the subject property is located in Zone "X" andDoes Not lie within a Special Flood Hazard Area (100 Year Flood), Community Panel No. 48085C180J, dated June 2, 2009.If this site is not within an identified flood hazard area, this Flood Statement does not imply that the property and/or structuresthereon will be free from flooding or flood damage. On rare occasions, greater floods can and will occur and flood heights may beincreased by man-made or natural causes. This Flood Statement shall not create liability on the part of the Surveyor.The plat hereon is a true, correct and accurate representation of the property as determined by an on the ground survey, subject to anyand all easements, reservations and restrictions that may be of record, the lines and dimensions of said property being indicated by theplat, the size, location and type of buildings and improvements are as shown, all improvements being within the boundaries of theproperty set back from property lines the distance indicated, and the distance from the nearest intersection as indicated is as shown onsaid plat. There are no visible encroachments, conflicts, or protrusions except as shown.NOTES:1. IRF - Iron Rod Found2. IRS - Iron Rod Set3. C.M. - Controlling Monument4. Basis of Bearing - Bearings based on the Texas Coordinate System of the North AmericanDatum of 1983 (2011), North Central Zone 4202 from GPS observations using the RTKCooperative Network.REVISED 01/05/2018This survey is made for the benefit of: Anna/121 Land Holdings, LLC, Southwest Guaranty Mortgage Corporation, FidelityNational Title Insurance Company, and to their successors and assigns, that:REVISED January 05, 2018 LAND TITLE SURVEYOFBEING A 25.001 ACRE TRACTAND A PORTIONOFTHAT CERTAIN 200.10 ACRE TRACTDESCRIBED INDOCUMENT NO. 20160128000104440OFFICIAL RECORDS, COLLIN COUNTY, TEXASOFFICIAL PUBLIC RECORDS, DALLAS COUNTY, TEXASSITUATED INJOHN CHAMBERS SURVEY, ABSTRACT NO 233AND SAMUEL CRAFT SURVEY, ABSTRACT NO. 165CITY OF ANNA, COLLIN COUNTY, TEXAS TELEPHONE MANHOLETRAFFIC SIGNAL POLETRAFFIC SIGNAL BOXSWB MAN HOLEGAS MAN HOLEVAULTTREEEDP-O-WVMPTHGVGAS METERGAS VALVETELEPHONE PEDESTALPOWER POLEDOWN GUYS.S. MAN HOLECLEAN OUTSIGNLIGHT POLESCFIRE HYDRANTWATER METERFUEL PORTWATER VALVETRANSFORMER PADELECTRIC METERSTORM DRAIN MAN HOLEIRON PIPE FENCEHYDFSGSURVEYING * CONSULTING * MANAGEMENT SURVEY GROUPR.M.1" = 150'11/22/201616-134 - 50.00 ACRES(817) 354-14451475 HERITAGE PARKWAY, STE 217MANSFIELD, TEXAS 76063 LAND TITLE SURVEYOFBEING A 25.001 ACRE TRACTAND A PORTIONOFTHAT CERTAIN 200.10 ACRE TRACTDESCRIBED INDOCUMENT NO. 20160128000104440OFFICIAL RECORDS, COLLIN COUNTY, TEXASOFFICIAL PUBLIC RECORDS, DALLAS COUNTY, TEXASSITUATED INJOHN CHAMBERS SURVEY, ABSTRACT NO 233AND SAMUEL CRAFT SURVEY, ABSTRACT NO. 165CITY OF ANNA, COLLIN COUNTY, TEXASsurveygroup@att.net1.REVISIONNO.DATE2.3.COPYRIGHT SURVEY GROUP, LLC ALL RIGHTS RESERVED. NO PART OF THIS DRAWING MAY BEREPRODUCED BY PHOTOCOPYING, RECORDING OR BY ANY OTHER MEANS, OR STORED, PROCESSED ORTRANSMITTED IN OR BY ANY COMPUTER OR OTHER SYSTEMS WITHOUT THE PRIOR WRITTEN PERMISSION OFTHE SURVEYOR. COPIES OF THIS SURVEY WITHOUT THE ORIGINAL SIGNATURE ARE NOT VALID.TBPS No. 101733-00MONITORING WELLW-OHE-OVER HEAD ELECTRICWilliam P. PriceRegistered Professional Land Surveyor No. 3047Dated: November 22, 2016PAGE 2 OF 2This is to certify that I have, this date, made an on the ground survey of the property located on State Highway 121 in the City of Ann, Collin County,Texas described as follows:STATE OF TEXASCOUNTY OF CollinBeing a 25.001 acre tract of land situated in the John Chambers Survey, Abstract No. 233 and the Samuel Craft Survey, Abstract No. 165, in the City of Anna, Collin County, Texas, being a portion of that certain 124.13 acre tract of land conveyed to Anna/121 Land Holdings, LLC by deed as recorded in Document No. 20160128000104440, Official Public Records, Collin county, Texas and being more particularly described by metes and bounds as follows:COMMENCING at a 1/2 inch iron rod found for corner, said point being the southeast corner of said Anna/121 Land Holdings, LLC tract, same point being the northeast corner of that certain tract of land conveyed to Carlos Seranos by deed as recorded in Document No. 20200601000803020, Official Public Records, Collin County, Texas, said point being in the west right-of-way line of State Highway 121 (a variable width right-of-way), said point alos being the southeast corner of that certain tract of land conveyed to the State of Texas by Notice of Lis Pendens (Parcel 24 Part 2) as recorded in Instrument No. 20180710000858770, Official Public Records, Collin County, Texas;THENCE South 88 degrees 56 minutes 54 seconds West, continuing along the common line of said Anna/121 Land Holdings, LLC tract, and said Seranos tract, a distance of 238.83 feet to a 5/8 inch iron rod found for corner with cap stamped "Texas Department of Transportation ROW Monument", said point being in the southwest corner of said State of Texas (Parcel 24 Part 2);THENCE South 88 degrees 56 minutes 54 seconds West, along the common line of said Anna/121 Land Holdings, LLC tract, and said Seranos tract, a distance of 1115.52 feet to a 5/8 inch iron rod found for corner with cap stamped "Texas Department of Transportation ROW Monument", said point being the southwest corner of said Anna/121 Land Holdings, LLC tract, same point being in the north line of that certain tract of land conveyed to Fidencio Salazar, Jr. by deed as recorded in Document No. 20171027001434640, Official Public Records, Collin County, Texas, said point also being the southeast corner of that certain tract of land conveyed to the State of Texas by Notice of Lis Pendens (Parcel 24 Part 1) as recorded in Instrument No. 20180710000858770, Official Public Records, Collin County, Texas;THENCE North 12 degrees 34 minutes 14 seconds West, along the east line of said State of Texas (Parcel 24 Part 1), a distance 358.32 feet to a 5/8 inch iron rod found for corner with cap stamped "Texas Department of Transportation ROW Monument", said point being the northeast corner of said State of Texas (Parcel 24 Part 1);THENCE South 77 degrees 27 minutes 26 seconds West, along the north line of said State of Texas (Parcel 24 Part 1), a distance 19.34 feet to a 5/8 inch iron rod found for corner with cap stamped "Texas Department of Transportation ROW Monument", said point being the northwest corner of said State of Texas (Parcel 24 Part 1), same point being in the east line of Farm Road No. 2862;THENCE along the west line of said Anna/121 Land Holdings, LLC tract, and along the east right-of-way line of said Farm Road No. 2862 the following calls:North 12 degrees 33 minutes 33 seconds West, a distance 2.44 feet to a 1/2 inch iron rod found for corner, said point being the beginning of a curve to the right having a radius of 1387.50 feet, a delta angle of 28 degrees 25 minutes 00 seconds, and a chord bearing and distance of North 05 degrees 54 minutes 46 seconds East, 681.12 feet;Northeasterly along said curve to the right, an arc distance of 688.15 feet to a 1/2 inch iron rod found for corner;North 15 degrees 51 minutes 27 seconds East, a distance 118.82 feet to a 1/2 inch iron rod set for corner, said point being the southwest corner of said 25.001 acre tract of land being described, same point being the POINT of BEGINNING;North 15 degrees 51 minutes 27 seconds East, a distance 169.38 feet to a 1/2 inch iron rod found for corner, said point being the beginning of a curve to the left having a radius of 1387.50 feet, a delta angle of 14 degrees 13 minutes 19 seconds, and a chord bearing and distance of North 08 degrees 46 minutes 30 seconds East, 246.58 feet;Northeasterly along said curve to the left, an arc distance of 247.21 feet to a 1/2 inch iron rod set for corner, said point being the northwest corner of said 25.001 acre tract of land being described;THENCE North 90 degrees 00 minutes 00 seconds East, departing the east right-of-way line of said Farm Road No. 2862 and through interior of said Anna/121 Land Holdings, LLC tract, a distance 2873.84 feet to a 1/2 inch iron rod set for corner, said point being the northeast corner of said 25.001 acre tract of land being described, said point being in the west right-of-way line of State Highway 121;THENCE South 48 degrees 17 minutes 16 seconds West, along the east line of said Anna/121 Land Holdings, LLC tract, and along the new west right-of-way line of said State Highway 121, a distance 611.10 feet to a 1/2 inch iron rod set for corner, said point being the southeast corner of said 25.001 acre tract of land being described;THENCE South 90 degrees 00 minutes 00 seconds West, departing the new west line of said right-of-way line of said State Highway 121, a distance 2501.55 feet to the POINT OF BEGINNING and containing 1,089,043 square feet or 25.001 acres of computed land.FLOOD CERTIFICATEAs determined by the FLOOD INSURANCE RATE MAPS for Collin County, Texas, the subject property is located in Zone "X" andDoes Not lie within a Special Flood Hazard Area (100 Year Flood), Community Panel No. 48085C180J, dated June 2, 2009.If this site is not within an identified flood hazard area, this Flood Statement does not imply that the property and/or structuresthereon will be free from flooding or flood damage. On rare occasions, greater floods can and will occur and flood heights may beincreased by man-made or natural causes. This Flood Statement shall not create liability on the part of the Surveyor.The plat hereon is a true, correct and accurate representation of the property as determined by an on the ground survey, subject to anyand all easements, reservations and restrictions that may be of record, the lines and dimensions of said property being indicated by theplat, the size, location and type of buildings and improvements are as shown, all improvements being within the boundaries of theproperty set back from property lines the distance indicated, and the distance from the nearest intersection as indicated is as shown onsaid plat. There are no visible encroachments, conflicts, or protrusions except as shown.NOTES:1. IRF - Iron Rod Found2. IRS - Iron Rod Set3. C.M. - Controlling Monument4. Basis of Bearing - Bearings based on the Texas Coordinate System of the North AmericanDatum of 1983 (2011), North Central Zone 4202 from GPS observations using the RTKCooperative Network.This survey was performed in connection with the transaction described in GF No. 4403402170 and with an effective date of December 19, 2017 and an issue date ofJanuary 3, 2018 of FIDELITY NATIONAL TITLE INSURANCE COMPANY. USE OF THIS SURVEY FOR ANY OTHER PURPOSE OR BY OTHER PARTIESSHALL BE AT THEIR OWN RISK AND UNDERSIGNED IS NOT RESPONSIBLE TO OTHERS FOR ANY LOSS RESULTING THEREFROM.f. Easement(s) and rights incidental thereto, as granted in a document:Granted to: State of TexasPurpose: As provided in said documentRecording Date: August 25, 1960Recording No: Volume 570, Page 456, Deed Records, Collin County, TexasAffects: Tracts 1 and 2. Does not affect subject property.g. Easement(s) and rights incidental thereto, as granted in a document:Granted to: State of TexasPurpose: As provided in said documentRecording Date: August 25, 1960Recording No: Volume 570, Page 460, Deed Records, Collin County, TexasAffects: Tracts 1 and 2. Plotted and shown on survey.h. Easement(s) and rights incidental thereto, as granted in a document:Granted to: Texas-New Mexico Power CompanyPurpose:As provided in said documentRecording Date: January 16, 2004Recording No:Volume 5586, Page 944, Real Property Records, Dallas County, TexasAffects: Tract 1. Affects subject property, blanket in nature.i. Easement(s) and rights incidental thereto, as granted in a document:Granted to: Texas-New Mexico Power CompanyPurpose: As provided in said documentRecording Date: January 16, 2004Recording No: Volume 5586, Page 947, Real Property Records, Collin County, TexasAffects: Tract 1. Affects subject property, blanket in nature.j. Easement(s) and rights incidental thereto, as granted in a document:Granted to: Texas-New Mexico Power CompanyPurpose: As provided in said documentRecording Date: January 16, 2004Recording No: Volume 5586, Page 950, Real Property Records, Collin County, TexasAffects: Tract 1. Affects subject property, blanket in nature.k. Easement(s) and rights incidental thereto, as granted in a document:Granted to: Westminster Water Supply Corp.Purpose: As provided in said documentRecording Date: May3, 2004Recording No: Volume 5660, Page 4660, Real Property Records, Collin County, Texas; as affected by the Assignment of Easements filedDecember 20, 2011, recorded under Clerk's File No. 20111220001372910, Real Property Records, Collin County, TexasAffects: Tract 1. 15 foot strip of land as waterline is installed, however, no attempt was made to locate water line.m. Easement(s) and rights incidental thereto, as granted in a document:Granted to: State of TexasPurpose: As provided in said documentDated: January 20, 1960Recording No: Volume 567, Page 526, Deed Records,Collin County, TexasAlso recorded in Volume 568, Page 25, Real Property Records, Collin County, Texas per Survey.Affects: Tract 2. Plotted and shown on survey.n. Easement(s) and rights incidental thereto, as granted in a document:Granted to: Westminster Water Supply CorporationPurpose: As provided in said documentRecording Date: September 11, 2007Recording No: under Clerk's File No. 20070911001266130, Real Property Records, Collin County,Texas; as affected by the Assignment of Easements filed December 20, 2011, recorded under Clerk's FileNo. 20111220001372910, Real Property Records, Collin County, TexasAffects: Tract 2. Does not affect subject property.o. Easement(s) and rights incidental thereto, as granted in a document:Granted to: County of CollinPurpose: As provided in said documentRecording Date: April 9, 2015Recording No: under Clerk's File No. 20150409000395530, Real Property Records, Collin County, TexasAffects: Tract 2. Plotted and shown on survey.p. Rights of the public to any portion of the Land lying within the area commonly known as CR 526.Affects Tract 2This survey is made for the benefit of: Anna/121 Land Holdings, LLC, Southwest Guaranty Mortgage Corporation, FidelityNational Title Insurance Company, and to their successors and assigns, that:REVISED January 05, 2018 Item No. 7.c. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Steven Smith AGENDA ITEM: Consider/Discuss/Action on a Resolution authorizing the City Manager to execute Purchase Orders not to exceed $345,000 to Wopac Construction under the Collin County Purchasing Cooperative contract. (Interim Director of Public Works Steven Smith) SUMMARY: This item is for the City of Anna's annual Street Maintenance Sales Tax projects. This fiscal year project list includes the following streets: - Easton (Full Depth Reclamation) - West 5th Street (Full Depth Reclamation) - East 6th Street (Full Depth Reclamation ) As a member of the Collin County Purchasing Cooperative, the City of Anna is able to receive contract pricing through the existing County contract, resulting in better unit prices and cost savings. The City is utilizing the existing contract by and between Wopac Construction, Incorporated and Collin County for General Road Maintenance. Staff included $24,000 in contingency funds in the proposed project budget, for a total project budget of $345,000. Remaining funds will be allocated to future Street Maintenance Tax projects. FINANCIAL IMPACT: Funding for this item was appropriated in the FY2023 Department budget in the amount of $400,000. The estimated total cost of these three projects is $321,000. Staff is recommending a contingency of $24,000 for driveway connections and additional subgrade work which may be required during construction. Remaining funds will be allocated towards future Street Maintenance Tax projects. BACKGROUND: Anna Neighbors approved the implementation of a Street Maintenance Sales Tax, which makes up a quarter percent of the sales tax rate. These funds are dedicated to street maintenance projects. Projects are completed annually based on street conditions and available funding. The majority of the funding is used to rehabilitate aging asphalt roadways in downtown Anna and on County Roads which become the responsibility of the City to maintain. STRATEGIC CONNECTIONS: Goal 3: Sustainable Anna Community Through Planned Managed Growth ATTACHMENTS: 1. Street Maintenance Projects - Location Map and Conditions 2. Resolution and Quote - Wopac Construction - Reconstruct Easton, W. 5th St., & E. 6th St Street Maintenance Tax Project Location Map W Fifth Street E Sixth Street Easton Drive Current Street Conditions Fifth Street Easton Drive Sixth Street CITY OF ANNA, TEXAS RESOLUTION NO. _______________ A RESOLUTION OF THE CITY OF ANNA, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE PURCHASE ORDERS FOR THE RECONSTRUCTION OF EASTON, W. FIFTH STREET, AND E. SIXTH STREET TO WOPAC CONSTRUCTION, INCORPORATED IN THE AMOUNT NOT TO EXCEED THREE HUNDRED FOURTY- FIVE THOUSAND DOLLARS ($345,000); AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Easton, W. 5th Street, and 6th Street are located within city limits of the City of Anna, Texas; and WHEREAS, Easton, W. 5th Street, and E. 6th Street are in disrepair and require full- depth reconstruction; and WHEREAS, Wopac Construction, Incorporated has a current contract with Collin County for road paving improvements; and, WHEREAS, the City of Anna is utilizing the Collin County contract with Wopac Construction, Incorporated in accordance with the Collin County Purchasing Program and, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS THAT: Section 1.Recitals Incorporated The recitals above are incorporated herein as if set forth in full for all purposes. Section 2.Authorization of Payment and Funding. That the City Council of the City of Anna hereby authorizes the City Manager to execute purchase orders in an amount not to exceed $345,000 to Wopac Construction, Incorporated for the reconstruction of Easton, W. 5th Street, and E. 6th Street. That funding for the project shall come from the Street Maintenance Sales Tax funds. PASSED AND APPROVED by the City Council of the City of Anna, Texas on this ___ day of April 2023. ATTEST: APPROVED: __________________________ __________________________ City Secretary, Carrie Land Mayor, Nate Pike Exhibit A Exhibit B Exhibit C Item No. 7.d. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Ryan Henderson AGENDA ITEM: Finley Boulevard (Interim City Manager Ryan Henderson) I. Consider/Discuss/Action on an Ordinance Amending the FY2023 Roadway Impact Fees Fund Budget. II. Consider/Discuss/Action a Resolution authorizing the City Manager to execute a project-specific Purchase Order with HALFF Associates in an amount not exceeding $90,000 for the Design of Finley Blvd. from Sharp Street to the DART Rail line. SUMMARY: Halff & Associates have put together a proposal for the design of East Finley Blvd. The design includes two extra lanes approximately 250 feet east of Powell Pkwy to the intersection of Sharp St. Improvements include roadway paving, drainage, sidewalks, pedestrian ramps, signage in pavement markings. A budget amendment would need to be approved to fund the design work for the following purposes: Finley Blvd (Design) ($90,000): This amendment will provide funding for the design of Finley Blvd. Construction costs will be budgeted in the FY2024 Community Investment Program budget. FINANCIAL IMPACT: Funding for the Finley Blvd Engineering Design project is being appropriated through an amendment to the FY2023 Community Investment Program budget in the amount of $90,000 thousand from the Roadway Impact Fees Fund. BACKGROUND: The item for this roadway improvement comes from a recommendation from staff to help alleviate the backup and constraints experienced by the neighbors in Anna Town Square. With regards to the budget amendment, the FY2023 Budget was adopted by the City Council on September 13, 2022. According to the City Charter, the City Council may, by the affirmative vote of a majority of the full membership of the City Council, amend or change the budget to provide for any additional expense in which the general welfare of the citizenry is involved. STRATEGIC CONNECTIONS: This item supports the City of Anna Strategic Plan, specifically advancing the strategic outcome area: Excellent. ATTACHMENTS: 1. Finley Boulevard Improvements 2. April 25 Finley Budget Amendment Exhibit 3. April 25 Finley Budget Amendment Ordinance 4. Resolution Contract for Halff FINLEY BLVD Construct the Two Southern Lanes of East Finley BLVD from the Dart Tracks to Sharp Street. EXHIBIT A ROADWAY IMPACT FEES Expense: Project No. Budget Change Revised Budget TBD -$ 90,000$ 90,000$ Justification: CITY OF ANNA DETAIL OF RECOMMENDED FY2022-23 BUDGET AMENDMENTS Project Name Finley Blvd - Design This amendment will provide funding for the design of Finley Blvd. Construction costs will be budgeted in the FY2024 Community Investment Program budget. This roadway improvement comes from the neighbors who live in Anna Town Square who have voiced their opinion about their traffic concerns within their sub-division. PAGE 1 OF 2 CITY OF ANNA ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 1002-2022 ADOPTING THE BUDGET FOR THE 2022-2023 FISCAL YEAR; PROVIDING FOR SAVINGS, SEVERABILITY, AND REPEALING CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, on September 13, 2022, the City Council of the City of Anna, Texas (“City Council”), after a duly noticed public hearing as required under Texas Local Gov’t Code §102.106, and in accordance with applicable provisions of the City of Anna, Texas Home- Rule Charter (“Charter”), adopted a budget of all municipal appropriations and expenditures for the 2022-2023 fiscal year; and WHEREAS, the City is authorized to make this budget amendment by majority vote of the City Council under Section 7.09 of the Charter; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS THAT: SECTION 1. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this ordinance for all purposes and are adopted as a part of the judgment and findings of the City Council with respect to the budget amendments described herein. SECTION 2. The City Council of the City officially finds, determines, and declares that the City of Anna 2022-2023 fiscal year budget is hereby amended with respect to its Roadway Impact Fees Funds as set forth in the original budget adopted under Ordinance No. 1002-2022 by replacing the information regarding said funds with the information relating to said funds set forth in the attached Exhibit A, incorporated herein for all purposes. SECTION 4. Upon adoption and execution of this ordinance, the City Secretary is directed to attach same and its exhibits to the original City of Anna 2022-2023 fiscal year budget in all places where said budget is filed as of public record or posted for public inspection. SECTION 5. If any provision of this ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this ordinance would have been enacted without such invalid provision. SECTION 6. It is officially found, determined, and declared that the meeting at which this ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this PAGE 2 OF 2 ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. PASSED, APPROVED, AND ADOPTED on first and final reading on this 25th day of April, 2023. ATTESTED: _________________________ City Secretary, Carrie Land APPROVED: _________________________ Mayor, Nate Pike CITY OF ANNA, TEXAS RESOLUTION NO. _______________ A RESOLUTION OF THE CITY OF ANNA, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT FOR PROFESSIONAL SERVICES, IN A FORM APPROVED BY THE CITY ATTORNEY WITH HALFF & ASSOCIATES INCORPORATED, FOR THE ENGINEERING DESIGN OF FINLEY BLVD IN THE AMOUNT NOT TO EXCEED NINETY THOUSAND DOLLARS AND ZERO CENT ($90,000.00); AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, Finley Blvd is identified as a capital roadway improvement project in the City of Anna, Texas; and, WHEREAS, Halff & Associates were selected as part of the multi-discipline RFQ; and WHEREAS, the growth of Anna Town Square has increased traffic volume on Finley Blvd, between State Highway 5 and Sharp Street. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated The recitals above are incorporated herein as if set forth in full for all purposes. Section 2. Authorization of Payment and Funding. That the City Council of the City of Anna hereby authorizes the City Manager to execute a contract in an amount not to exceed $90,000.00 to Halff & Associates, incorporated for the Engineering Design of Finley Boulevard, between the Dart tracks (East of State Highway 5) and Sharp Street. That funding for the project shall come from the Capital Non-bond fund. PASSED AND APPROVED by the City Council of the City of Anna, Texas on this ___ day of April 2023. ATTEST: APPROVED: __________________________ __________________________ City Secretary, Carrie Land Mayor, Nate Pike 1 EXHIBIT “B” PAYMENT SCHEDULE (All fees not to exceed without prior approval) For and in consideration of Basic and Special Services to be rendered by CONSULTANT, CITY agrees to pay, based on the fees indicated below, with the total fee not to exceed Eighty Nine Thousand Seventy-Two Dollars ($89,072). Partial payments to CONSULTANT will be made on the basis of monthly statements rendered to and approved by the CITY; however, under no circumstances shall any monthly statement for services exceed the value of work performed at the time a statement is rendered. Payment for the services shall be due and payable within one month of submission of a statement for services. A summary of the fee is as shown below: BASIC SERVICES I. PROJECT MANAGEMENT/COORDINATION (xx% of Total Basic Service Fee) = $ 5,040 II. PRELIMINARY ENGINEERING SERVICES (xx% of Total Basic Service Fee) = $ 18,762 III. PRE-FINAL ENGINEERING SERVICES (xx% of Total Basic Service Fee) = $ 29,256 IV. FINAL DESIGN SERVICES (xx% of Total Basic Service Fee) = $ 12,645 V. BID PHASE SERVICES (x% of Total Basic Service Fee) = $ 5,523 TOTAL BASIC SERVICES FEE = $ 71,226 Special services shown below will be paid on a cost-plus basis. CONSULTANT will submit to CITY supporting documentation for the percentage complete for which payment is sought. SPECIAL SERVICES VI.A. CONSTRUCTION ADMINISTRATION = $ 5,690 VI.B. SURVEY FOR DESIGN = $ 12,156 TOTAL SPECIAL SERVICES FEE = $ 17,846 TOTAL SERVICES FEE = $ 89,072 It is specifically understood and agreed that CONSULTANT shall not be authorized to undertake any work pursuant to this Contract which would require payment by the CITY for any charge, expense, or reimbursement above the fee as stated herein without obtaining prior written authorization from the CITY. Item No. 7.e. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Alan Guard AGENDA ITEM: Consider/Discuss/Action on a Resolution accepting the FY 2022 Audit Report. (Finance Director Alan Guard) SUMMARY: The item before the Council is a resolution to take action to accept the audit report completed by the accounting firm Weaver and Tidwell, LLP. The City is currently in the fourth year of a contract with Weaver and Tidwell to prepare the audit and Annual Comprehensive Financial Report (the Annual Report). A final copy of the Annual Report will be provided at the Council meeting. Weaver has provided a draft report attached to this item. FINANCIAL IMPACT: This item has no financial impact. BACKGROUND: The City is required by the Charter to complete an annual independent audit of all accounts by an outside certified public accountant. The City Council has retained Weaver and Tidwell, LLP for that purpose. STRATEGIC CONNECTIONS: This item supports the City of Anna Strategic Plan, specifically advancing the strategic outcome area: Excellent. ATTACHMENTS: 1. Resolution Accepting the FY2023 Audit 2. City of Anna draft ACFR FY22 4.19.23 CITY OF ANNA, TEXAS RESOLUTION NO. ____________ A RESOLUTION ACCEPTING THE FISCAL YEAR 2022 FINANCIAL AUDIT OF THE CITY OF ANNA. WHEREAS, the City of Anna, Texas (“the City”) is committed to principles and practices of open and fair government that honors the public trust; and WHEREAS, Article 7 Section 7.18 of the City’s Home-Rule Charter (“the Charter”) requires an annual independent audit of all accounts of the City by a certified public accountant. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The above-referenced recitals are incorporated herein as if set forth in full for all purposes. Section 2. Audit Accepted The City Council has hereby accepted the FY 2022 audit attached hereto as Exhibit 1. PASSED by the City Council of the City of Anna, Texas, on this the 25th day of April, 2023. ATTEST: ________________________________ Carrie L. Land, City Secretary APPROVED: ________________________________ Nate Pike, Mayor DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2022 Prepared by The Finance Department DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2022 Table of Contents i Page Introductory Section Letter of Transmittal v GFOA Certificate of Achievement x Organizational Chart xi List of Elected Officials and Management xii Financial Section Independent Auditor’s Report 3 Management's Discussion and Analysis 7 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position 19 Statement of Activities 20 Fund Financial Statements: Balance Sheet - Governmental Funds 22 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 23 Statement of Revenues, Expenditures, and Changes in Fund Balances 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Proprietary Fund Financial Statements Statement of Net Position - Proprietary Fund 26 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund 28 Statement of Cash Flows - Proprietary Fund 29 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position - Custodial Fund 31 Statement of Fiduciary Revenues, Expenses, and Changes in Net Position - Custodial Fund 30 Notes to the Financial Statements 33 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual - General Fund 73 Schedule of Changes in Net Pension Liability and Related Ratios - Texas Municipal Retirement System (TMRS)74 Schedule of Employer Contributions to Pension Plan - TMRS 75 Schedule of Changes in Total OPEB Liability and Related Ratios – TMRS 76 Schedule of OPEB Contributions – TMRS 77 Combining and Individual Fund Financial Statements and Schedules Combining Balance Sheet - Nonmajor Governmental Funds 81 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 83 Balance Sheet - Community Development Corporation 85 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position - Community Development Corporation 86 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2022 Table of Contents – Continued ii Page Combining and Individual Fund Financial Statements and Schedules - Continued Statement of Revenues, Expenditures, and Changes in Fund Balance - Community Development Corporation 87 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities – Comm. Development Corporation 88 Balance Sheet – Economic Development Corporation 89 Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position - Economic Development Corporation 90 Statement of Revenues, Expenditures, and Changes in Fund Balance - Economic Development Corporation 91 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of the Governmental Fund to the Statement of Activities – Economic Development Corporation 92 Balance Sheet - Housing Finance Corporation 93 Statement of Revenues, Expenditures, and Changes in Fund Balance - Housing Finance Corporation 94 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Community Development Corporation 95 Economic Development Corporation 96 Debt Service Fund 97 Grant Fund 98 Statistical Section (Unaudited) Financial Trends Net Position by Component 103 Changes in Net Position 104 Fund Balances of Governmental Funds 106 Changes in Fund Balances of Governmental Funds 107 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 108 Direct and Overlapping Property Tax Rates 109 Principal Property Taxpayers 110 Property Tax Levies and Collections 111 Debt Capacity Ratios of Outstanding Debt by Type 112 Ratios of General Bonded Debt Outstanding 113 Direct and Overlapping Governmental Activities Debt 114 Pledged-Revenue Coverage 115 Demographic and Economic Information Demographic and Economic Statistics 116 Principal Employers 117 Operating Information Full-Time Equivalent City Government Employees by Function/Program 118 Operating Indicators by Function/Program 119 Capital Asset Statistics by Function/Program 120 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed iii Introductory Section DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed iv DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed v     April XX, 2023    To the Honorable Mayor and City Council, City Manager,  Citizens of the City of Anna:    The Comprehensive Annual Financial Report (CAFR) of the City of Anna, Texas, for the fiscal  year ended September 30, 2022 including the independent auditor’s report, is hereby submitted in  accordance with the provisions of Section 10.3 of the City Charter. Also, state law requires that all  general‐purpose local governments publish within six months of the close of each fiscal year a  complete set of financial statements presented in conformity with the generally accepted  accounting principles (GAAP) and audited in accordance with generally accepted audited  standards by an independent firm of licensed public accountants.  This report is published to  fulfill those requirements for the fiscal year ended September 30, 2022.    This report is published to provide the Mayor and City Council, city staff, our citizens,  representatives of financial institutions, our bondholders and other interested parties with  detailed information concerning the financial condition and activities of the City.  Responsibility  for the accuracy of the data and the completeness and fairness of the presentation, including all  disclosures, rests with the City.  To the best of our knowledge and belief, the enclosed data is  accurate in all material respects and is reported in a manner designed to present fairly the  financial position and results of operations of the various funds of the City.  Because the cost of  internal controls should not outweigh their benefits, the City of Anna’s comprehensive framework  of internal controls has been designed to provide reasonable, rather than absolute assurance, that  the financial statements will be free from material misstatement.      The City of Anna’s financial statements have been audited by Weaver and Tidwell, L.L.P., a firm  of licensed certified public accountants. The goal of the independent audit was to provide  reasonable assurance that the financial statements of the City for the fiscal year ended September  30, 20222, are free of material misstatement. The independent audit involved examining, on a test  basis, evidence supporting the amounts and disclosures in the financial statements; assessing the  accounting principles used and significant estimates made by management; and evaluating the  overall financial statement presentation.  The independent auditor’s report is presented as the first  component of the financial section of this report.    Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s  report and provides a narrative introduction, overview, and analysis to accompany the basic  financial statements.  This letter of transmittal is designed to complement the MD&A and should  be read in conjunction with it.            DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed vi Profile of the Government    The City of Anna, incorporated in 1913, is located in north central Collin County on U.S. 75, State  Highway 5, and State Highway 121, about 40 miles north of Dallas, and is one of the fastest  growing cities in the Dallas/Fort Worth Metroplex. The City currently occupies a land area of  approximately 15.6 square miles and services approximately 20, 243residents.  The City of Anna is  empowered to levy a property tax on both real and personal properties located within its  boundaries.  It also is empowered by state statue to extend its corporate limits by annexation,  which occurs periodically when deemed appropriate by the governing body.    The City of Anna operates under a home rule charter adopted in 2005, with a Council‐Manager  form of government.  Policy‐making and legislative authority are vested in the City Council  consisting of the Mayor and six Council members.  The City Council is responsible for, among  other things, passing ordinances, resolutions, and regulations governing the City as well as  adopting the budget which serves as the foundation for financial planning and control.  The City  Council appoints the City Manager, who has full responsibility for carrying out the policies and  ordinances of the City Council, for overseeing the day‐to‐day operations of the government and  appointing the heads of the various departments.  The City Council also appoints the City  Attorney, City Secretary, and Municipal Judge.  The Council is elected on a non‐partisan basis.   Council members serve three‐year staggered terms.      The City of Anna provides a full range of services, including police and fire protection; municipal  court; parks and recreation; water and sewer services; solid waste collection/disposal; and the  construction and maintenance of streets and other infrastructure.  In addition, the City of Anna is  also financially accountable for a legally separate economic development corporation and  community development corporation, which are reported separately with the City of Anna’s  financial statements.  Additional information on these legally separate entities can be found in the  Notes to the Financial Statements.  The City currently has 147.0 budgeted full‐time equivalent  positions.     The annual budget serves as the foundation for the City of Anna’s financial planning and control.   All departments of the City of Anna are required to submit a budget that would maintain current  services and new requests for appropriations separately to the City Manager.  The City Manager  and Finance Director then use these requests as the starting point for developing a proposed  budget.  The City Manager and Finance Director then presents a proposed budget to Council for  review no later than August 15th.  The Council is required to hold public hearings on the  proposed budget and to adopt the final budget no later than September 20th.      The appropriated budget is prepared by fund and department (e.g., police).  The City Manager  may authorize transfers of appropriations within a department and between departments within a  fund and within major line‐item categories.  Increases or decreases of appropriations to a fund,  however, require special approval of the City Council in the form of an Ordinance formally  amending the adopted budget.       DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed vii Budget‐to‐actual comparisons are provided in this report for each individual governmental fund  for which an appropriated annual budget has been adopted. For the General Fund, this  comparison is presented as part of the basic financial statement for the governmental funds.  For  other governmental funds with appropriated annual budgets, this comparison is presented in the  governmental fund subsection of the report.    Factors Affecting Financial Condition    The information presented in the financial statements is perhaps best understood when it is  considered from the broader perspective of the specific environment within which the City of  Anna operates.    Local Economy    The City of Anna’s economic outlook continues to improve due to the overall improvement in the  economy and continued residential and commercial growth. This is evidenced by local economic  indicators such as a significant increase in tax appraisal values, the increase in residential building  permits, and continued sales tax growth.  Residential construction activity remains strong in the  City of Anna.  In FY 2022, the City received 1,059 residential building permit applications.  In  addition, Starbucks, Whataburger, Chick‐fil‐a, Salsa Tex Mex, Sunview Café, a surgery center, and  a free‐standing emergency room opened in FY 2020.      The Anna Economic Development Corporation (EDC) works in cooperation with the Community  Development Corporation to coordinate efforts that expand the cityʹs business tax base with a  focus on creating primary jobs within the City of Anna. The corporations have provided  incentives that resulted in much of the retail development that has occurred in Anna since 2008.  The EDC was instrumental in recruiting Brookshires Grocery Company, CVS pharmacy,  McDonalds, and Walmart. The EDC owns and operates Inc‐Cube, a small business incubator  located in our downtown.  The corporations cooperatively purchased an 85‐acre tract of land at  the northeast corner of State Highway 5 and the Collin County Outer Loop with the intent of  developing a business park.  This property was sold in FY 2022 for the development of a proposed  Caterpillar dealership and complementary businesses.    Anticipated growth is expected to continue for the north Collin County region. This has improved  the overall connectivity and mobility to and within Anna, but also will bring continued growth  and new development.     Long –Term Financial Planning    The City’s fund balance/operating position concept continues to be an important factor in policy  decisions. The City’s Financial Policy states that the City’s target unassigned fund balance is an  amount equal or greater than 40% of annual general fund operating expenditures. The City’s  ending unassigned fund balance for fiscal year 2022 reflected a fund balance of 57.0% of total  expenditures, well above the stated goal.  These resources allow the City to avoid disruptions in  services during economic downturns and to ensure that there will adequate liquid resources to  serve as a financial cushion against the potential shock of unanticipated events.   DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed viii Major Initiatives  At the end of the 2021‐22 fiscal year, the City of Anna had a number of major projects in progress.  The City  Council and City staff continue to work to ensure completion of ongoing projects that will provide  infrastructure improvements to the City of Anna.  During 2021‐22, the City met with governmental partners  including Collin County, TxDOT and the North Central Texas Council of Governments (NCTCOG) to  review the City’s transportation priorities and to discuss opportunities to partner on future projects.  City  staff has been holding quarterly meetings with TXDOT to discuss transportation needs throughout the City.   The City also continues to use developer incentives/agreements to improve other critical roadways within  the City.    In FY 2022, the City issued $34.0 million in general obligation bonds and $65.0 million in Certificates of  Obligation to construct new City facilities and a new wastewater treatment facility.  Additional City  facilities are needed in order to continue to expand, provide quality services to the citizens, as approved by  the voters in a May 2021 bond referendum. Fire station No. 2 will be built on the west side of US‐75 to serve  new residential and commercial growth on that side of the freeway. A new library/community center will  be constructed as part of the municipal campus adjacent to City Hall and Fire Station #1 to help anchor the  new downtown. This was accomplished while decreasing the overall tax rate for FY 2023. The debt service  portion of the tax rate was set at 0.143217 and the operations and maintenance portion of the tax rates was  reduced from 0.452631 down to 0.396533.  This reduction in the property tax rate was accomplished through  planning, a sound financial plan, and growth in the overall property tax base.  The City continues to be less  reliant on residential property taxes as sales tax revenues continue to increase and the City broadens its  commercial tax base.    Additional information related to the capital improvement projects and funding for those  improvements is located in the Five‐Year Capital Improvements Plan located in the City’s annual  budget book.   Other Information  Fund Accounting:  The Cityʹs accounting system is organized and operated on a ʺfund basis.ʺ  Each fund is a distinct, self‐balancing entity. A description of the various major funds and fund  types is contained in the Notes of the financial statements. A description of each individual non‐ major fund is contained at the beginning of its related combined financial statement.  Basis of Accounting:  The Cityʹs accounting records for all governmental funds are maintained on  the modified accrual basis of accounting. This method recognizes revenue when it is measurable  and available and expenditures when goods or services are received. All proprietary funds are  accounted for using the accrual basis of accounting; revenue is recognized when it is earned, and  expenses are recognized when they are incurred.  Internal Control:  Management of the City is responsible for establishing and maintaining an  internal control structure. This structure is designed to provide reasonable, but not absolute,  assurance that: (1) City assets are protected from loss, theft or misuse; and (2) City financial  records and data are accurate and reliable. The concept of reasonable assurance recognizes that  the cost of a control should not exceed the benefits likely to be derived from it, and that the  evaluation of cost and benefits requires estimates and judgments by management.  DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed ix Budgetary Control:  Each year, on or before September 20th, the City Council adopts an annual  operating budget for the ensuing fiscal year. The operating budget includes anticipated revenues  and  expenditures  for  the  General  Fund,  Special  Revenue  Funds,  the  Debt  Service  Fund,  and  Proprietary Funds. The budget is a planning device that defines the type, quality, and quantity of  City goods and services that will be provided to our citizens.  The budget is also a control device  that  serves  as  a  system  of ʺchecks  and  balancesʺ  between  levels  of  City  government.  The  budgetary  system  ensures  that  individual  departments  contain  their  expenditures  within  limitations set by the City management, and that City management contains expenditures for the  entire  City  within  limitations  set  by  the  City  Council.  After  adoption,  the  City  Manager  may  authorize  transfers  of  appropriations  within  a  department  and  between  departments  within  a  fund and within major line‐item categories.  Increases or decreases of appropriations to a fund;  however,  require  special  approval  of  the  City  Council  in  the  form  of  an  Ordinance  formally  amending the adopted budget.   Acknowledgements  The  presentation  of  this  report  could  not  have  been  accomplished  without  the  efficient  and  dedicated services of the entire staff of the Finance Department and all department head directors.   We would like to express our appreciation to all members of the departments who assisted and  contributed to the preparation of this report.  We would also like to thank the Mayor and the City  Council  for  their  continued  interest  and  support  for  maintaining  the  highest  standards  of  professionalism in the management of the City of Anna financial operations.   Respectfully submitted,  Alan Guard   Finance Director    DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed x DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed xi DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed xii City of Anna, Texas Elected Officials and Management September 30, 2022 City Council Nate Pike Mayor Kevin Toten Place 1 Pete Cain Place 2 Stan Carver II Place 3 Randy Atchley Place 4 – Deputy Mayor Pro-Tem Danny Ussery Place 5 Lee Miller Place 6 - Mayor Pro-Tem Management Jim Proce, ICMA-CM City Manager Ryan Henderson Assistant City Manager Clark McCoy City Attorney Carrie Land City Secretary Alan Guard Finance Director Terri Doby Budget Manager Dean Habel Chief of Police Ray Isom Fire Chief Greg Peters, PE Director of Public Works Ross Altobelli Director of Development Services Stephanie Beitelschies Director of Human Resources Joey Grisham Economic Development Director Marc Marchand Director of Neighborhood Services   DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 1 Financial Section DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 2 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed Independent Auditor’s Report The Honorable Mayor and Members of the City Council of the City of Anna, Texas Report on the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Anna, Texas (the City), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1 to the basic financial statements, during the year ended September 30, 2022, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed The Honorable Mayor and Members of the City Council of the City of Anna, Texas 4 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed The Honorable Mayor and Members of the City Council of the City of Anna, Texas 5 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying combining and individual fund financial statements and schedules are fairly stated in all material respects, in relation to the basic financial statements as a whole. Other Information Included in the Annual Comprehensive Financial Report (ACFR) Management is responsible for the other information included in the ACFR. The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April XX, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. (Firm Name) Dallas, Texas April XX, 2023 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 6 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 7 Management’s Discussion and Analysis As management of the City of Anna, Texas (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2022. We encourage readers to consider the information presented here in conjunction with additional information contained in this report. Financial Highlights  The City's total combined net position was $198,470,627 at September 30, 2022. Of this, $10,546,664 (unrestricted net position) may be used to meet the City’s ongoing obligations to its citizens and creditors.  The City had an overall increase in net position of $29,392,124. The increase is primarily a result of an increase of Charges for Services of $10,890,250.  On a government-wide basis, the City's total liabilities increased by $8,383,472. The increase in liabilities is primarily a result of increased payables due to contractors for PID capital projects.  At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $37,285,741 a decrease of $7,140,202. This decrease is largely due to an increase in capital outlay.  As of the end of the year, the unassigned fund balance of the General Fund was $9,949,599 or 57% of total General Fund expenditures. Overview of the Financial Statements The discussion and analysis provided here is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves. Government-Wide Statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets, deferred inflows of resources, deferred outflows of resources, liabilities, and net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. Other non-financial factors, such as the City’s property tax base and the condition of the City’s infrastructure, need to be considered in order to assess the overall health of the City. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 8 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, culture and recreation, and economic development. The business-type activities of the City include water, sewer, and sanitation operations. FUND FINANCIAL STATEMENTS A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and a fiduciary fund. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains thirteen individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Capital Projects Fund, Debt Service Fund, PID Capital Projects Fund, and Grant Fund, which are all considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in a separate section of the report. The City adopts an annual appropriated budget for its General Fund and Debt Service Fund. General Fund budget amendments increased revenue by $571,330 and expenditures by $191,030. The increase in revenues was related to re-estimates for sales taxes and license and permit fees due greater than expected performance during the pandemic. The increase in expenditures was primarily due to increased public safety costs associated with the response to the pandemic. Proprietary Funds The City’s proprietary fund is an enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for its water, sewer, and sanitation operations. All activities associated with providing such services are accounted for in this fund, including administration, operation, maintenance, debt service, capital improvements, meter maintenance, billing and collection. The City's intent is that costs of providing the services to the general public on a continuing basis is financed through user charges in a manner similar to a private enterprise. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 9 Proprietary financial statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Utility Fund, which is considered to be a major fund of the City. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is like that used for proprietary funds. The City has one fiduciary fund, the PID Custodial Fund. Component Units The City maintains the accounting and financial statements for two component units. The Anna Economic Development Corporation and Anna Community Development Corporation are discretely presented component units. Notes to Financial Statements The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements, MD&A, and accompanying notes, this report also presents certain Required Supplementary Information (RSI). The required RSI includes a budgetary comparison schedule for the General Fund, schedule of changes in the net pension liability and related ratios, schedule of employer contributions for the Texas Municipal Retirement System (TMRS), schedule of changes in the Total OPEB liability and related ratios, and schedule of OPEB contributions for TMRS. Because the City did not budget for the major special revenue fund, Grant Fund, there is not a budget in RSI related to it. RSI can be found after the basic financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted previously, net position may serve over time as a useful indicator of the City’s financial position. For the City of Anna, net position was $198,470,627 as of September 30, 2022, in the primary government. The largest portion of the City’s net position, $131,724,339, reflects its investments in capital assets (e.g., land, park improvements, buildings, furniture and fixtures, streets, drainage, machinery and equipment, etc.), less any debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the assets themselves cannot be used to liquidate these liabilities. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 10 The following table reflects the condensed Statement of Net Position: 2022 2021 2022 2021 2022 2021 Current and other assets 31,387,255$ 22,367,483$ 7,513,945$ 8,101,636$ 38,901,200$ 30,469,119$ Restricted assets 18,648,412 31,159,401 36,531,071 23,680,099 55,179,483 54,839,500 Capital assets, net 119,111,148 96,862,712 70,145,270 63,059,041 189,256,418 159,921,753 Total assets 169,146,815 150,389,596 114,190,286 94,840,776 283,337,101 245,230,372 Deferred outflows of resources 1,252,567 923,867 317,366 325,312 1,569,933 1,249,179 Current liabilities 12,328,122 7,334,140 6,470,969 2,533,418 18,799,091 9,867,558 Noncurrent liabilities 44,741,231 44,094,467 20,105,036 21,299,860 64,846,267 65,394,327 Total liabilities 57,069,353 51,428,607 26,576,005 23,833,278 83,645,358 75,261,885 Deferred inflows of resources 2,681,233 2,079,606 109,816 59,557 2,791,049 2,139,163 Net position: Net investment in capital assets 81,252,418 65,539,991 50,471,921 41,835,760 131,724,339 107,375,751 Restricted 19,668,553 18,360,546 36,531,071 23,680,099 56,199,624 42,040,645 Unrestricted 9,727,825 13,904,713 818,839 5,757,394 10,546,664 19,662,107 Total net position 110,648,796$ 97,805,250$ 87,821,831$ 71,273,253$ 198,470,627$ 169,078,503$ Activities Activities Primary Government Governmental Business-Type Total Statement of Activities: The following table provides a summary of the City’s changes in net position: 2022 2021 2022 2021 2022 2021 Revenues: Program revenues: Charges for services 13,506,981$ 7,799,632$ 28,539,413$ 23,356,512$ 42,046,394$ 31,156,144$ Operating grants and contributions 75,963 527,376 - - 75,963 527,376 Capital grants and contributions 8,977,439 30,267,739 4,125,890 7,732,066 13,103,329 37,999,805 General revenues: Property taxes 10,239,322 8,714,860 - - 10,239,322 8,714,860 Sales taxes 3,847,911 2,929,876 - - 3,847,911 2,929,876 Franchise and local taxes 888,723 726,006 - - 888,723 726,006 Investment income 244,855 123,643 236,664 93,145 481,519 216,788 Other revenue 189,079 62,859 - - 189,079 62,859 Gain on sale of assets - - - - - - Total revenues 37,970,273 51,151,991 32,901,967 31,181,723 70,872,240 82,333,714 Expenses: General government 5,226,176 3,538,746 - - 5,226,176 3,538,746 Public safety 9,915,219 6,221,473 - - 9,915,219 6,221,473 Culture and recreation 2,550,873 2,053,933 - - 2,550,873 2,053,933 Public works 4,739,386 4,169,132 - - 4,739,386 4,169,132 Community services 1,211,897 1,198,530 - - 1,211,897 1,198,530 Interest and fiscal charges 1,483,176 2,212,316 - - 1,483,176 2,212,316 Water, sewer, & sanitation - - 16,353,389 13,462,054 16,353,389 13,462,054 Total expenses 25,126,727 19,394,130 16,353,389 13,462,054 41,480,116 32,856,184 Change in net position 12,843,546 31,757,861 16,548,578 17,719,669 29,392,124 49,477,530 Net position, beginning 97,805,250 66,047,389 71,273,253 53,553,584 169,078,503 119,600,973 Net position, ending 110,648,796$ 97,805,250$ 87,821,831$ 71,273,253$ 198,470,627$ 169,078,503$ Activities Activities Primary Government Governmental Business-type Total DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 11 Graphic presentations of selected data from the summary tables are displayed below to assist in the analysis of the City’s activities. Grants and Contributions 23.84% Sales taxes 10.13% Franchise and local taxes 2.34% Charges for services 35.57% Property taxes 26.97% Other income categories0.50% Investment income 0.64% Governmental Activities - Revenues For the year ended September 30, 2022, revenues from governmental activities totaled $37,970,273. Capital grants and contributions, property taxes, and charges for services are the City’s largest revenue sources. Capital grants and contributions decreased by $24,896,476 or 66% when compared to prior year mainly due to a decrease in contributed capital relating to streets and drainage. Property taxes increased by $1,524,462 or 17% due to an increase in overall assessed property values. Charges for services increased by $10,890,250 or 34% mainly due to an increase in building permit activity, and water and sewer sales. The following graph shows the governmental function expenses of the City: For the year ended September 30, 2022, expenses for governmental activities totaled $25,126,727. This represents an increase of $5,932,597 or 31% from the prior year. The City’s largest increase was in general government of $6,164,344 or 174%, due to add in explanation here. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 12 Public safety expenses increased $3,205,224 or 52%, due to costs associated with increased staffing in Police and Fire to address increased calls for service and ramping up to become the primary ambulance provider in the city. Business-type activities are shown comparing operating costs to revenues generated by related services. - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Business-Type Activities - Revenues and Expenses Charges for Services For the year ended September 30, 2022, charges for services by business-type activities totaled $28,539,413. This is an increase of $5,182,901 or 22% from the previous year. This increase in revenues is directly related to an increase in water (2.36%) and sewer rates (25.77%) and an increase of more than 1000 new customers. Expenses totaled $16,353,389, which was an increase of $2,891,335, or 21% due to increase purchases of sewer service from the North Texas Municipal Water District (NTMWD), and water purchases from the Greater Texoma Utility Authority (GTUA). In addition, the Public Works Department continued to make progress on several I&I projects during FY 2021 to aid in resolving that issue. The City will continue to complete I&I projects in FY 2022 in order to minimize the amount of rainfall the City is treating through the City's sewer system. FINANCIAL ANALYSIS OF THE CITY’S FUNDS As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance- related legal requirements. Governmental Funds - The focus of the City’s governmental funds is to provide information of near- term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the City’s net resources available for spending at the end of the year. As of September 30, 2022, the General Fund reflected a total fund balance of $9,963,033. Of this, $13,354 is considered restricted for parks. Unassigned fund balance totaled $9,949,599 as of year-end. The General Fund saw a significant increase in property taxes when compared to the prior year. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 13 This directly relates to the addition of new properties to the tax roll, as well as an increase in property values. The Capital Projects Fund had an ending fund balance of $7,581,206 at year-end or a decrease of $11,855,195 due to an increase in payments for current capital projects, primarily the new fire station and City Hall. The Debt Service Fund had an ending fund balance of $82,294 at year-end for an increase of $12,189 due primarily to an increase in property assessed valuation. The PID Capital Projects Fund had an ending fund balance of $7,971,782 at year-end, a decrease of $4,706,101 from the previous year. The increase in fund balance was primarily due to increase in the PID fees paid in the current year. The Grant Fund had an ending fund balance of $13,299 at year-end, an increase of 12,850 from the previous year. The Park Development Fund, previously a nonmajor governmental fund, had a fund balance of $5,245,454, or an increase of $2,530,982, due to charges for services during the year that exceeded expenditures, leading to this increase in fund balance. The Road Capital Development Agreement Fund, also previously a nonmajor governmental fund, had a fund balance of $217,093, which was a decrease of $103,759. Proprietary Funds - The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. CAPITAL ASSETS As of the end of the year, the City’s governmental activities had invested $119,111,148 in a variety of capital assets and infrastructure, net of accumulated depreciation and amortization. The City’s business-type activities had invested $70,145,270 in a variety of capital assets and infrastructure, net of accumulated depreciation and amortization. Major capital asset events during the current year include the following:  Construction in progress for the Municipal Complex and Fire Station totaling $6,368,363. More detailed information about the City’s capital assets is presented in Note 5 to the financial statements. LONG-TERM DEBT At September 30, 2022, the City had total bonds, contractual obligations, right-to-use lease liability, and financed purchases outstanding of $62,706,249. During the year, the City made payments on long-term debt totaling $2,568,709. More detailed information about the City’s long-term liabilities is presented in Note 6 to the financial statements. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET The economy remains strong for the City of Anna and the North Texas region. The City continues to focus on economic development and working toward providing a balanced community. The City is taking a more proactive and aggressive approach to economic development with its business recruitment efforts, as well as continued development of residential housing options. In addition, the City continues to conservatively manage its budget. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 14 The fiscal year 2022-2023 budget reflects the commitment of the City Council and staff to focus on enhancing the quality of existing services to our neighbors and respond to our city’s continuing growth and development, while maintaining a strong financial position. Since property values stabilized in 2013 following the 2008-2011 housing recession, the City has continued to see healthy increases in the value of existing properties. For the tax year 2021, the City saw existing property values increase just over 10.4% and $169,100,661 in new value was added to the tax roll. Again, for the 2022 tax year, the City saw existing property values increase just over 16% and $301,947,063 in value was added to the tax roll. We remain cautiously optimistic that we will experience modest, but slowing, appreciation in the value of existing properties and additional value will continue to be added to the tax roll, as a result of new residential and commercial construction in the near term. There are currently eight multifamily developments under construction in Anna representing over 2,000 units and over $400 million in capital investment, and a new 30,000 square foot medical office building housing over ten medical specialists will be completed in the summer of 2023. Megatel is also under construction on a 2.3-acre crystal lagoon project that will include over 2,000 single-family homes, 600 multifamily units, and over 50,000 square feet of entertainment/commercial space. The City Council decreased the FY 2022 tax rate from the FY 2021 rate of $.591288 per $100 in valuation to $.5830 per $100 in valuation, above the “no-new-revenue-rate” ($.569415) but below the “voter- approval-rate” ($.58656). Senate Bill 2 compresses the capability of a local government to generate revenue and provide services by lowering the tax rate a city can adopt without a mandatory election. SB 2 also changes the way property tax rates are calculated, make changes to the appraisal process, and reduce the previously called “rollback rate” of 8% to a new rate of 3.5% or “the voter-approval rate”. This tax rate is the maximum a City can set the tax rate above the “effective tax rate”, now known as the “no-new-revenue rate”, without voter approval. This bill will tremendously impact growing cities such as Anna into the future. As the City begins to see the impact of the reduction of the amount of property tax a city can levy, sales tax will become increasingly important for growing communities. Sales tax was up approximately 22% in FY 2022 largely due to the continued growth of retail commercial property and population in the City. A 15.0% increase over the FY 2022 estimated total of $5.72 million is budgeted for sales tax for FY 2023. In FY 2020, Starbucks, Chick-fil-A, Whataburger, Salsa TexMex, and Sunview Cafe opened. Along with Walmart and people staying close to home during the pandemic, the City has seen the full impact of the sales tax from these retail establishments since FY 2021. In addition to these, a total of 53 new businesses have opened in Anna including other recognized retail establishments such as Panda Express, Dairy Queen, Pizza Hut, Jersey Mike’s, Popeye’s Chicken, Fuzzy’s Tacos, and opening in April 2023, Chili’s. The growth in both sales tax and taxable value of real property corresponds to a significant increase in residential growth and population over the past 36 months. According to the most recent population estimates published by the North Central Texas Council of Governments, the City of Anna population as of January 1, 2021 was 17,814. However, the population is believed to be well above this estimate due to the number of new utility accounts established and single-family permits which have been issued. The City made a significant effort to reach out to its neighbors to encourage them to complete the 2020 Census to receive a more accurate population count. As a result, Anna had a response rate in excess of 60%, higher than the DFW rate and overall Texas response rate. Reflecting the City’s continued high growth in population will be key to attracting additional commercial and retail businesses the City lacks and needs in order to sustain the City into the future to provide the funding for expenditures needed in a rapidly growing community. Furthermore, with the growth in population comes a proportional increase in demand for municipal services that are funded primarily by property taxes. As stated previously, in order to fund the FY 2021 budget, the City adopted a tax rate of $0.583 per $100 valuation which is lower than the tax rate adopted in FY 2020. When compared with other cities in our area, the City of Anna has one of lowest per-capita property tax levies. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 15 Rapid population growth has also resulted in significant investment over the past 10 to 15 years in the City’s water and sewer system. Currently the Water and Sewer Fund holds just over $19.7 million in outstanding debt. The City has worked closely with our financial advisors, Hilltop Securities, to develop a sound debt management plan for the Water and Sewer Fund. Over the past several years, in order to appropriately manage this debt, the City and Hilltop Securities developed a plan to take advantage of call dates and pursue advance refunding of the City’s outstanding debt. Every effort has been made to minimize the present value costs to the City. The City of Anna, along with the cities of Melissa, Van Alstyne, and Howe, belongs to a strategic alliance called the Collin Grayson Municipal Alliance (CGMA). The alliance (CGMA) purchases treated surface water from the North Texas Municipal Water District (NTMWD) through a contract with the Greater Texoma Utility Authority (GTUA). The CMGA purchases a minimum take or pay (MT/P) allocation of water through GTUA from NTMWD. Currently, each city is responsible for the percentage of the total MT/P amount that corresponds to the total amount of water each city uses. This treated surface water supplements the City’s water supply especially during the summer months when water consumption is highest. As our population has grown and water demand has increased, we have been required to increasingly supplement our well water with treated surface water. As we have forecasted consumption and production of our wells, it appears that the CGMA as a group will likely exceed the MT/P allocation in FY 2023. When this happens, MT/P amount will reset at the new consumption level, and the City of Anna will be responsible for the cost of all the water we consume above the current MT/P amount. Due to this continued increase in water cost, treatment and transportation cost, the growing needs for infrastructure improvements and additions, as well as staffing needs for a growing community, the City worked with a water rate consultant in FY 2020. As a result, the City Council has adopted the rate model and approved a rate increase for FY 2021, FY 2022, and FY 2023 as well as a long-range rate plan and capital improvement model. Actual increases will have to be approved each year by City Council as part of the annual budget process. The City of Anna’s budget continues to be impacted by both moderately strong growth and conservative fiscal management. The 2022-2023 budget reflects the efforts of the governing body and city staff to address the need to provide services to support our growing community. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide a general overview of the City of Anna’s finances for all those with an interest in the City’s finances. Questions concerning this report or requests for additional financial information should be directed to the City Finance Director, 120 W. 7th Street, Anna, Texas 75409. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 16 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 17 Basic Financial Statements DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 18 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Net Position September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 19 Community Economic Housing Governmental Business-type Development Development Finance Activities Activities Total Corporation Corporation Corporation ASSETS Cash and cash equivalents 27,781,508$ 2,965,588$ 30,747,096$ 7,796,303$ 982,909$ 634,607$ Investments 2,000,000 2,000,000 4,000,000 - 5,000,000 - Receivables, net 1,564,351 2,426,942 3,991,293 415,588 16,580 Due from other governments 41,396 - 41,396 - - - Internal balances - - - - - - Prepaids - - - - - - Inventories - 121,415 121,415 - - - Restricted assets: Restricted cash and cash equivalents 16,542,112 35,705,558 52,247,670 - - - Restricted investments 2,106,300 - 2,106,300 - - - GTUA prepaid reserves - 825,513 825,513 - - - Capital assets: Non-depreciable 57,474,917 7,973,195 65,448,112 - 40,346 1,443,404 Net depreciable capital assets 61,636,231 62,172,075 123,808,306 - 187,422 - Total assets 169,146,815 114,190,286 283,337,101 8,211,891 6,227,257 2,078,011 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on bond refunding - 69,488 69,488 - - - Deferred outflows - pension 1,213,475 240,142 1,453,617 43,878 - - Deferred outflows - OPEB 39,092 7,736 46,828 1,413 - - Total deferred outflows of resources 1,252,567 317,366 1,569,933 45,291 - - LIABILITIES Accounts payable and other liabilities 6,269,009 4,848,605 11,117,614 17,080 7,302 60 Accrued liabilities 1,329,163 - 1,329,163 3,944 - - Accrued salaries 309,227 68,368 377,595 12,547 - - Customer deposits - 1,450,286 1,450,286 - - - Unearned revenue 4,227,138 - 4,227,138 - - 93,750 Due to other governments - - - - - - Accrued interest payable 193,585 103,710 297,295 11,939 - - Noncurrent liabilities: Due within one year 567,700 1,247,783 1,815,483 100,000 - - Due in more than one year 44,173,531 18,857,253 63,030,784 2,433,299 - - Total liabilities 57,069,353 26,576,005 83,645,358 2,578,809 7,302 93,810 DEFERRED INFLOWS OF RESOURCES Deferred inflows - leases 511,279 - 511,279 - - - Deferred inflows - land lease 1,615,036 1,615,036 1,433,684 Deferred inflows - pension 542,764 107,411 650,175 19,625 - - Deferred inflows - OPEB 12,154 2,405 14,559 439 - - Total deferred inflows of resources 2,681,233 109,816 2,791,049 20,064 - 1,433,684 NET POSITION Net investment in capital assets 81,252,418 50,471,921 131,724,339 - 227,768 1,443,404 Restricted for: Water and sewer improvements - 35,705,558 35,705,558 - - - Capital projects 19,215,321 - 19,215,321 - - - GTUA deposits - 825,513 825,513 - - - Culture and recreation 13,434 - 13,434 - - - Public safety 426,499 - 426,499 - - - Federal grants 13,299 - 13,299 - - - Community and economic development - - - 5,658,309 5,992,187 (892,887) Unrestricted 9,727,825 818,839 10,546,664 - - - TOTAL NET POSITION 110,648,796$ 87,821,831$ 198,470,627$ 5,658,309$ 6,219,955$ 550,517$ Primary Government Component Units DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Activities For the Fiscal Year Ended September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 20 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions PRIMARY GOVERNMENT Governmental activities: General government 5,226,176$ 6,708,288$ -$ 8,977,439$ Culture and recreation 2,550,873 2,835,400 - - Community services 1,211,897 674,627 - - Public safety 9,915,219 14,473 75,963 - Public works 4,739,386 3,274,193 - - Interest and fiscal charges 1,483,176 - - - Total governmental activities 25,126,727 13,506,981 75,963 8,977,439 Business-type activities: Water and sewer 16,353,389 28,539,413 - 4,125,890 Total business-type activities 16,353,389 28,539,413 - 4,125,890 TOTAL PRIMARY GOVERNMENT 41,480,116$ 42,046,394$ 75,963$ 13,103,329$ Component units Governmental activities: Community Development Corporation 1,398,398$ -$ -$ -$ Economic Development Corporation 85,329 - - - 1,483,727 - - - Business-type activities: Housing Finance Corporation 17,705 565,970 - - Total component units 1,501,432$ 565,970$ -$ -$ General revenues: Property taxes Sales taxes Franchise and local taxes Investment income Miscellaneous revenue Gain on sale of capital assets Total general revenues Change in net position Net position, beginning NET POSITION, ENDING Program Revenues DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 21 Community Economic Housing Governmental Business-type Development Development Finance Activities Activities Total Corporation Corporation Corporation 10,459,551$ -$ 10,459,551$ 284,527 - 284,527 (537,270) - (537,270) (9,824,783) - (9,824,783) (1,465,193) - (1,465,193) (1,483,176) - (1,483,176) (2,566,344) - (2,566,344) - 16,311,914 16,311,914 - 16,311,914 16,311,914 (2,566,344) 16,311,914 13,745,570 (1,398,398)$ -$ -$ - (85,329) - (1,398,398) (85,329) - - - 548,265 (1,398,398) (85,329) 548,265 10,239,322 - 10,239,322 - - - 3,847,911 - 3,847,911 2,308,746 - - 888,723 - 888,723 - - - 244,855 236,664 481,519 15,109 25,620 2,252 189,079 - 189,079 - 8,166 - - - - 2,857,748 5,565,652 - 15,409,890 236,664 15,646,554 5,181,603 5,599,438 2,252 12,843,546 16,548,578 29,392,124 3,783,205 5,514,109 550,517 97,805,250 71,273,253 169,078,503 1,875,104 705,846 110,648,796$ 87,821,831$ 198,470,627$ 5,658,309$ 6,219,955$ 550,517$ Net (Expense) Revenue and Changes in Net Position Primary Government Component Units DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Balance Sheet - Governmental Funds September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 22 ASSETS Cash and cash equivalents 7,777,357$ 1,862,177$ 82,294$ -$ Investments 2,000,000 - - - Receivables, net 1,529,594 - 22,204 10,941 Due from other governments - 41,396 - - Prepaids - - - - Restricted cash 522,043 8,004,504 - 7,960,841 Restricted investments - - - 2,106,300 TOTAL ASSETS 11,828,994$ 9,908,077$ 104,498$ 10,078,082$ LIABILITIES Accounts payable and other liabilities 968,345$ 997,708$ -$ 2,106,300$ Accrued liabilities - 1,329,163 - - Accrued salaries 300,342 - - - Unearned revenue - - - - Total liabilities 1,268,687 2,326,871 - 2,106,300 DEFERRED INFLOWS OF RESOURCES: Unavailable revenue - property taxes 85,995 - 22,204 - Deferred inflow - leases 511,279 - - - Total deferred inflows of resources 597,274 - 22,204 - FUND BALANCES Restricted for: Culture and recreation 13,434 - - - Debt service - - 82,294 - Public safety - - - - Federal grants - - - - Capital projects - 6,278,129 - 7,971,782 Assigned for: Capital projects - 1,303,077 - - Unassigned 9,949,599 - - - Total fund balances 9,963,033 7,581,206 82,294 7,971,782 TOTAL LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES 11,828,994$ 9,908,077$ 104,498$ 10,078,082$ General Fund Capital Projects PID Capital Projects Debt Service Fund DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 23 Park Road Capital Total Development Development Governmental Grant Fund Fund Agreement Fund Funds 3,736,221$ 5,377,315$ 2,290,328$ 6,655,816$ 27,781,508$ - - - - 2,000,000 1,612 - - - 1,564,351 - - - - 41,396 - - - - - - - - 54,724 16,542,112 - - - - 2,106,300 3,737,833$ 5,377,315$ 2,290,328$ 6,710,540$ 50,035,667$ 399$ 122,976$ 2,073,235$ 46$ 6,269,009$ - - - - 1,329,163 - 8,885 - - 309,227 3,724,135 - - 503,003 4,227,138 3,724,534 131,861 2,073,235 503,049 12,134,537 - - - - 108,199 - - - - 511,279 - - - - 619,478 - - - - 13,434 - - - - 82,294 - - - 426,499 426,499 13,299 - - - 13,299 - 5,245,454 217,093 5,780,992 25,493,450 - - - - 1,303,077 - - - - 9,949,599 13,299 5,245,454 217,093 6,207,491 37,281,652 3,737,833$ 5,377,315$ 2,290,328$ 6,710,540$ 50,035,667$ Nonmajor Governmental DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 24 FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 37,281,652$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and, therefore not reported in the governmental funds. Capital assets - non-depreciable 57,474,917 Capital assets - net depreciable 61,636,231 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the governmental funds.108,199 Deferred outflows of resources, represent a consumption of net position that applies to a future period(s) and is not recognized as an outflow of resources (expenditure) until that time. Deferred outflows - pension 1,213,475 Deferred outflows - OPEB 39,092 Deferred inflows of resources, represent an acquisition of net position that applies to a future period(s) and is not recognized as an inflow of resources (revenue) until that time. Deferred inflows - land lease (1,615,036) Deferred inflows - pension (542,764) Deferred inflows - OPEB (12,154) Some liabilities, including bonds payable and accrued interest, are not reported as liabilities in the governmental funds. Accrued interest payable (193,585) General obligation bonds (9,243,000) Certificates of Obligation (30,210,000) Combination tax and revenue refunding bonds (335,000) Unamortized premiums (1,980,979) Financed purchases (302,059) Right-to-use lease liability (895,262) Net pension liability (569,758) Total OPEB liability (130,442) Compensated absences (1,074,731) NET POSITION OF GOVERNMENTAL ACTIVITIES 110,648,796$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 25 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 26 REVENUES Property taxes 8,004,989$ -$ 2,079,794$ -$ Sales taxes 3,847,911 - - - Char ges for services 285,779 - - - License and permits 5,752,179 - - - Fines and forfeitures 241,274 - - - Franchise and local taxes 888,723 - - - Investment income 90,387 29,779 4,344 44,711 Other revenues 151,464 - - 250 Intergovernmental 47,640 - - - Contributions and donations 3,050 - - - Total revenues 19,313,396 29,779 2,084,138 44,961 EXPENDITURES Current: General government 5,040,143 57,014 - - Culture and recreation 1,345,005 - - - Community services 1,145,841 - - - Public safety 7,432,334 14,432 - - Public works 777,565 3,318 - - Debt service: Principal 44,001 - 506,000 - Interest and fiscal charges 13,358 - 1,565,949 - Capital outlay 1,666,327 12,102,617 - 4,751,062 Total expenditures 17,464,574 12,177,381 2,071,949 4,751,062 Excess (deficiency) of revenues over (under) expenditures 1,848,822 (12,147,602) 12,189 (4,706,101) OTHER FINANCING SOURCES (USES) Transfers in - 292,407 - - Transfers out - - - - Right-to-use lease proceeds 1,541,966 - - - Total other financing sources (uses)1,541,966 292,407 - - Net change in fund balances 3,390,788 (11,855,195) 12,189 (4,706,101) FUND BALANCES, BEGINNING OF YEAR 6,572,245 19,436,401 70,105 12,677,883 FUND BALANCES, END OF YEAR 9,963,033$ 7,581,206$ 82,294$ 7,971,782$ General Capital Projects PID Capital Projects Debt Service Fund DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 27 Park Road Capital Total Development Development Governmental Fund Agreement Fund Funds -$ -$ -$ 46,340$ 10,131,123$ - - - - 3,847,911 - 3,473,645 87,860 3,657,590 7,504,874 - - - - 5,752,179 - - - 8,654 249,928 - - - - 888,723 10,949 24,535 8,381 31,769 244,855 - 1,094 - 36,271 189,079 25,273 - - - 72,913 - - - - 3,050 36,222 3,499,274 96,241 3,780,624 28,884,635 - - - 3,172 5,100,329 - 687,330 - 226 2,032,561 - - - - 1,145,841 23,372 - - 28,213 7,498,351 - - - 3,600 784,483 - - - - 550,001 - - - - 1,579,307 - 280,962 - 74,962 18,875,930 23,372 968,292 - 110,173 37,566,803 12,850 2,530,982 96,241 3,670,451 (8,682,168) - - - 3,021 295,428 - - (200,000) (95,428) (295,428) - - - - 1,541,966 - - (200,000) (92,407) 1,541,966 12,850 2,530,982 (103,759) 3,578,044 (7,140,202) 449 2,714,472 320,852 2,633,536 44,425,943 13,299$ 5,245,454$ 217,093$ 6,211,580$ 37,285,741$ Nonmajor Governmental Funds Grant Fund DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 28 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (7,140,202)$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation and amortization expense. Capital contributions are only recognized on the statement of activities. Capital outlay 16,846,083 Depreciation expense (4,523,193) Amortization expense (671,018) Capital contributions 8,977,439 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Increase in compensated absences (665,333) Increase in accrued interest 2,739 Changes to net pension liability and pension related deferred outflows and inflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.272,312 Changes to other postemployment benefits liability and related deferred outflows and inflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.(31,195) Various other reclassification and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. This includes the change in unavailable revenues from the prior year.3,469 The issuance of long-term debt (e.g., bonds, leases, certificates of obligation) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas the amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Right-to-use lease proceeds (1,541,966) Amortization of debt premium 117,706 Gengeral, certificate of obligation, and revenue bond principal payments 506,000 Lease principal payments 646,704 Financed purchase payments 44,001 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 12,843,546$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Net Position Proprietary Fund September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 29 Utility Fund ASSETS Current assets Cash and cash equivalents 2,965,588$ Certificates of deposit 2,000,000 Receivables, net 2,426,942 Inventories 121,415 Total current assets 7,513,945 Noncurrent assets Restricted cash and pooled investments 35,705,558 GTUA prepaid reserves 825,513 Capital assets Non-depreciable 7,973,195 Net depreciable capital assets 62,172,075 Total noncurrent assets 106,676,341 Total assets 114,190,286 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on bond refunding 69,488 Deferred outflows - pension 240,142 Deferred outflows - OPEB 7,736 Total deferred outflows of resources 317,366 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Net Position – Continued Proprietary Fund September 30, 2022 30 Utility Fund LIABILITIES Current liabilities Accounts payable 4,771,121$ Salaries payable 68,368 Other liabilities 77,484 Bond interest payable 103,710 Customer deposits 1,450,286 Revenue bonds payable - current 1,074,000 Financed purchases - current 173,783 Compensated absences - current - Total current liabilities 7,718,752 Noncurrent liabilities Revenue bonds payable 17,479,676 Financed purchases 882,848 Compensated absences 226,520 Right-to-use lease liability 129,642 Net pension liability 112,753 Total OPEB liability 25,814 Total noncurrent liabilities 18,857,253 Total liabilities 26,576,005 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension 107,411 Deferred inflows - OPEB 2,405 Total deferred inflows of resources 109,816 NET POSITION Net investment in capital assets 50,471,921 Restricted for: GTUA deposits 825,513 Water and sewer improvements 35,705,558 Unrestricted 818,839 TOTAL NET POSITION 87,821,831$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Fund For the Fiscal Year Ended September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 31 Utility Fund OPERATING REVENUES Water 8,195,633$ Sewer 5,225,164 Sanitation 2,041,254 Stormwater 6,443 Service charges 1,872,187 Connection fees 564,190 Developer and impact fees 10,289,594 Miscellaneous 344,948 Total operating revenues 28,539,413 OPERATING EXPENSES Personnel services 2,400,565 Contracted services 8,556,811 Repairs and maintenance 1,081,779 Supplies 240,897 Utilities 432,930 Depreciation 2,680,565 Other expenses 155,418 Total operating expenses 15,548,965 Operating income 12,990,448 NONOPERATING REVENUES (EXPENSES) Investment income 236,664 Interest expense (804,424) Total nonoperating revenues (expenses) (567,760) Income before capital contributions 12,422,688 Contributed capital 4,125,890 Change in net position 16,548,578 Net position, beginning of year 71,273,253 NET POSITION, END OF YEAR $ 87,821,831 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Cash Flows - Proprietary Fund For the Fiscal Year Ended September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 32 Utility Fund OPERATING ACTIVITIES Receipts from customers and users 28,204,236$ Payments to suppliers (6,694,596) Payments to employees (2,326,619) Net cash provided by operating activities 19,183,021 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (5,640,904) Interest and fees paid on long-term debt (788,136) Principal payments on debt, financed purchases, and right-to-use lease liability (1,334,336) Net cash used in capital and related financing activities (7,633,734) INVESTING ACTIVITIES Sale of investment securities (2,000,000) Interest received 236,664 Net cash provided by investing activities (1,763,336) Net increase in cash and cash equivalents 9,785,951 Cash and cash equivalents, beginning of year 28,885,195 Cash and cash equivalents, end of year 38,671,146$ RECONCILIATION TO STATEMENT OF NET POSITION Cash and cash equivalents 2,965,588$ Restricted cash and cash equivalents 35,705,558 38,671,146$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Cash Flows - Proprietary Fund – Continued For the Fiscal Year Ended September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 33 Utility Fund RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income 12,990,448$ Adjustments to reconcile operating income to cash provided by operating activities: Depreciation expense 2,680,565 Changes in assets and liabilities Accounts receivable (497,420) Inventories 20,090 Deferred outflows - pension and OPEB 855 Deferred inflows - pension and OPEB 50,259 Net pension and total OPEB liability (116,212) Accounts payable 3,753,149 Salaries payable 12,962 Customer deposits 162,243 Accrued compensated absences 126,082 NET CASH PROVIDED BY OPERATING ACTIVITIES 19,183,021$ NON-CASH CAPITAL ACTIVITIES Contributions of capital assets 4,125,890$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Fiduciary Net Position Custodial Fund September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 34 PID Custodial Fund ASSETS Cash and cash equivalents - restricted 2,183,378$ Receivables, net 8,030 Total assets 2,191,408 LIABILITIES Accounts Payable 11,600 Total liabilities 11,600 NET POSITION Restricted for PID debt service 2,179,808 Total net position 2,179,808 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Fiduciary Revenues, Expenses, and Changes in Net Position - Custodial Fund September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 35 PID Custodial Fund ADDITIONS Contributions 1,178,068$ Investment earnings 11,575 Other income 8,030 Total additions 1,197,673 DEDUCTIONS Contract services 145,289 Principal 165,000 Interest and fiscal charges 1,281,314 Total deductions 1,591,603 CHANGE IN NET POSITION (393,930) NET POSITION - beginning 2,573,738 NET POSITION - ending 2,179,808$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 36 Note 1. Summary of Significant Accounting Policies A. Reporting Entity The City of Anna, Texas (the "City") is a home rule charter city that operates under a Council-Manager form of government. The City Council is the principal legislative body of the City. The City Manager is appointed by a majority vote of the City Council and is responsible to the Council for the administration of all the affairs of the City. The City Manager is responsible for the appointment and removal of department directors and employees, supervision and control of all City departments, and preparation of the annual budget. The City provides the following services: public safety, ambulance, streets, sanitation, planning and zoning, and general administrative services. Other services include water, sewer, and sanitation operations. The City is an independent political subdivision of the State of Texas governed by an elected council and a mayor and is considered a primary government. As required by generally accepted accounting principles, these basic financial statements have been prepared based on considerations regarding the potential for inclusion of other entities, organizations, or functions as part of the City's financial reporting entity. The component units listed below, although legally separate, are considered part of the reporting entity. No other entities have been included in the City's reporting entity. Additionally, as the City is considered a primary government for financial reporting purposes, its activities are not considered a part of any other governmental or other type of reporting entity. Considerations regarding the potential for inclusion of other entities, organizations, or functions in the City's financial reporting entity are based on criteria prescribed by generally accepted accounting principles. These same criteria are evaluated in considering whether the City is a part of any other governmental or other type of reporting entity. The overriding elements associated with prescribed criteria considered in determining that the City's financial reporting entity status is that of a primary government are that it has a separately elected governing body, it is legally separate, and it is fiscally independent of other state and local governments. Additionally, prescribed criteria under generally accepted accounting principles include considerations pertaining to organizations for which the primary government is financially accountable and considerations pertaining to organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Blended Component Units The Anna Public Facility Corporation (PFC) is a blended component unit presented as a nonmajor special revenue fund of the City. The members of the PFC’s board of seven directors comprised of members of the City Council. The purpose of the PFC is to provide for the acquisition, construction, rehabilitation, renovation, repair, and furnishings of public facilities in the City. Discretely Presented Component Units Some organizations are included as component units because of their fiscal dependency on the primary government. An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without the approval by the primary government. The following entities were found to be component units of the City and are included in the basic financial statements: Anna Economic Development Corporation The Anna Economic Development Corporation (EDC) fund was incorporated in the state of Texas as a nonprofit industrial development corporation under Section 4B of the Development Corporation Act of 1979. The purpose of the EDC is to promote economic development within the City of Anna. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 37 Anna Community Development Corporation The Anna Community Development Corporation (CDC) fund was incorporated in the state of Texas as a nonprofit industrial development corporation under Section 4A of the Development Corporation Act of 1979. The purpose of the CDC is to promote community development within the City of Anna. Anna Housing Finance Corporation The Anna Housing Finance Corporation (HFC) fund was created in 2021 pursuant to Chapter 394, Local Government Code, as amended. The purpose of the HFC is to issue single-family and multi-family bonds for the financing of reasonably priced housing. The members of both the EDC and CDC’s board of seven directors are appointed by the City Council. Both the EDC and CDC are fiscally dependent upon the City as the City Council approves their budgets and must approve any debt issuance. The HFC is managed by a board of seven directors comprised of members of the City Council. Adding the creation of the EDC, CDC, and HFC to the resources currently available significantly increases the City's ability to assist community development and financing development projects beneficial to the City. All of the EDC and CDC funding can be used for direct assistance to prospects and continued development of infrastructure. The nature and significance of the relationship between the primary government and the organization is such that exclusion would cause the City's financial statements to be misleading or incomplete. Separate financial statements are not issued for the EDC or the CDC. B. Government-wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. C. Basis of Presentation – Government-wide Financial Statements While government-wide and fund financial statements are presented separately, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business-type activities incorporate data from the City’s enterprise funds. Separate financial statements are provided for governmental funds and proprietary funds. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the City's water and wastewater functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. D. Basis of Presentation – Fund Financial Statements The fund financial statements provide information about the City’s funds. Separate statements for each fund category - governmental and proprietary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 38 The City reports the following major governmental funds: The general fund is used to account for and report all financial resources not accounted for and reported in other funds. The principal sources of revenues include local property taxes, sales and franchise taxes, licenses and permits, fines and forfeitures, and charges for services. Expenditures include general government, public safety, public works, and culture and recreation. The general fund is always considered a major fund for reporting purposes. The capital projects fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. The capital projects fund is considered a major fund for reporting purposes. The debt service fund is used to account for the accumulation of resources that are restricted, committed, or assigned for the payment of principal and interest on long-term obligations of governmental funds. The primary source of revenue for debt service is local property taxes. The debt service fund is considered a major fund for reporting purposes. The PID capital projects fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets relating to the Hurricane Creeks PID. The grant fund is used to account for proceeds and expenditures relating to all grants. The park development fund is used to account for park development fees from developer agreements or the subdivision ordinance in support of the City’s parks master plan. The road capital development agreement Fund is used to account for negotiated developer agreements for road and street impact fees. Additionally, the City reports the following nonmajor governmental funds: The City accounts for resources restricted to, or designated for, specific purposes in Special Revenue Funds. These funds consist of the roadway impact fee service area one and two, state police seizure fund, federal police seizure fund, public facility corporation, Tax Increment Zone Number 2 (TIRZ #2) and other special revenue fund. The City reports the following enterprise fund: The Utility Fund is used to account for the provision of water, sewer, and solid waste collection services and wastewater treatment operations. Activities of the fund include administration, operations and maintenance of the water system, and billing and collection activities. The fund also accounts for the accumulation of resources for, and the payment of, long-term debt principal and interest. All costs are financed through charges to utility customers with rates reviewed regularly and adjusted if necessary to ensure integrity of the fund. The City reports the following fiduciary fund: The Public Improvement District (PID) Custodial Fund accounts for bond proceeds, assessments, and related debt associated with the issuance of bonds issued by the City as an agent for the Public Improvement District. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 39 During the course of operations the City has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column. E. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under financed purchases and right-to-use lease liabilities are reported as other financing sources. The City considers revenues available if they are collected within 60 days of the end of the current period. Property taxes, sales taxes, franchise taxes, and interest associated with the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current period. Other receipts and other taxes become measurable and available when cash is received by the government and are recognized as revenue at that time. Generally, the effect of interfund activity has been eliminated from the government- wide financial statements. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 40 F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance 1. Cash and Cash Equivalents The City's cash and cash equivalents are considered to be cash on hand, demand deposits, balances in local government investment pools, and short-term investments with original maturities of three months or less from the date of acquisition. For the purpose of the statement of cash flows, the proprietary fund types consider temporary investments with maturity of three months or less when purchased to be cash equivalents. The City maintains pooled cash and investment accounts. Each fund whose monies are deposited in the pooled cash and investment accounts has equity therein, and interest earned on the investment of these monies is allocated based upon relative equity at the previous month end. 2. Investments Investments, with certain exceptions, are reported at fair value. The exceptions are investments in external investment pools and nonparticipating interest earning contracts, such as certificates of deposit, which are reported at amortized cost and a cost-based measure, respectively. The City has adopted a written investment policy regarding the investment of its funds as defined in the Public Funds Investment Act, Chapter 2256, Texas Government Code. In summary, the City is authorized to invest in the following: Direct obligations of the U.S. government, its agencies and instrumentalities Certificates of deposit that meet certain criteria Money market mutual funds that meet certain criteria Local government investment pools 3. Receivables and Interfund Transactions Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as either “interfund receivables/payables” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds” in the fund financial statements. If the transactions are between the primary government and its component unit, these receivables and payables are classified as “due to/from component unit/primary government.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” 4. Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method. The cost of such inventories is recorded as expenditures/expenses when the related liability is incurred, (i.e., the purchase method). Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. 5. Capital Assets Capital assets, which include land and improvements, construction in progress, buildings and improvements, machinery and equipment, infrastructure (e.g. roads, bridges, sidewalks, and similar items), and water and sewer systems are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000, and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 41 Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Interest costs incurred during the construction phase of capital assets of business-type activities acquired with tax-exempt debt is included as part of the capitalized value of the assets constructed. Land and improvements and construction in progress are not depreciated. Buildings and improvements, machinery and equipment, infrastructure, and water and sewer systems of the primary government are depreciated using the straight-line method over the following estimated useful lives: Asset Description Estimated Useful Life Buildings 20 years Water and sewer system 35 years Equipment 3-20 years Streets 20 years Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has the following items that qualify for reporting in this category: In the government-wide and proprietary fund statements of net position:  A deferred charge on refunding bonds results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.  Deferred outflows related to net pension and other postemployment benefit liabilities result from differences in projected and actual earnings on plan investments, expected and actual economic experience, changes in actuarial assumptions and other inputs, and contributions made subsequent to the measurement date of each plan. These activities are amortized over the weighted average remaining service life of all participants in the respective qualified pension and OPEB plan, except for projected and actual earnings differences on investments, which are amortized on a closed basis over a 5-year period, and contributions made subsequent to the measurement date of each plan, which are recognized in the subsequent fiscal year. In addition to liabilities, the statement of financial position (or balance sheet) will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position (or fund balance) that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category: In the governmental funds balance sheet:  Unavailable revenues from property taxes and grants are deferred and recognized as an inflow of resources in the period that the amounts become available.  Related to lessor arrangements, lease revenue is deferred and recognized as revenue over the life of the lease term. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 42 In the government-wide and proprietary fund statements of net position:  Deferred inflows related to net pension and other postemployment benefit liabilities results from differences in projected and actual earnings on plan investments, expected and actual economic experience, changes in actuarial assumptions and other inputs. These activities are amortized over the weighted average remaining service life of all participants in the respective qualified pension plan, except for projected and actual earnings differences on investments, which are amortized on a closed basis over a 5-year period. 6. Compensated Absences The City maintains formal programs for vacation and sick leave. Eligible employees are granted vacation pay benefits in varying amounts to specified maximums depending on tenure with the City. The City’s personnel policy permits its eligible employees to accumulate earned but unused vacation pay benefits. Compensation for accrued sick leave is paid upon separation up to maximum benefits in varying amounts, depending on tenure with the City. The estimated amount of accrued vacation and sick pay benefits that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it upon maturity. Amounts of accrued vacation pay benefits that are not expected to be liquidated with expendable available financial resources are maintained separately and represent a reconciling item between the fund and government-wide presentations. 7. Leases Lessee The City is a lessee for noncancellable leases of property and equipment. The City recognizes a lease liability, reported with long-term debt, and a right-to-use lease asset (lease asset), reported with other capital assets, in the government-wide and proprietary fund financial statements. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequent, the lease asset is amortized on a straight-line basis over the shorted of the lease term or its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate if uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease.  Lease payments included in the measurement of the lease liability are composed of fixed payments, variable payments fixed in substance or that depend on an index or a rate, purchase option price that the City is reasonably certain to exercise, lease incentives receivable from the lessor, and any other payments that are reasonably certain of being required based on an assessment of all relevant factors The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 43 Lessor The City is a lessor for noncancellable leases of property and equipment. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease.  Lease payments included in the measurement of the lease receivable are composed of fixed payments from the lessee, variable payments from the lessee that are fixed in substance or that depend on an index or a rate, residual value guarantee payments from the lessee that are fixed in substance, and any lease incentives that are payable to the lessee. The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 8. Long-Term Obligations The government-wide financial statements and proprietary fund type fund financial statements report long-term debt and other long-term liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the effective interest method, if material. Bonds payable are reported net of the applicable bond premiums or discounts. The fund financial statements report bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Long-term debt is recognized as a liability of a governmental fund when due, or when resources have been accumulated in the debt service fund for payment early in the following year. For other long-term obligations, only that portion expected to be paid from expendable available financial resources is reported as a fund liability of a governmental fund. Long-term liabilities expected to be paid from proprietary fund operations are accounted for in those funds. Assets acquired under the terms of a finance purchase or lease obligation are recorded as liabilities and capitalized in the government-wide financial statements at the present value of net minimum lease payments at inception of the lease. In the year of acquisition, finance purchase and lease obligation transactions are recorded as other financing sources and as capital outlay expenditures in the applicable fund. Lease payments representing both principal and interest are recorded as expenditures in the general fund upon payment with an appropriate reduction of principal recorded in the government-wide financial statements. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 44 9. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS’s Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 10. Other Postemployment Benefits (OPEB) The City offers one OPEB plan, a defined benefit group-term life insurance plan known as the Supplemental Death Benefits Fund (“SDBF”) administered by TMRS. Total OPEB liability, deferred outflows of resources and deferred inflows of resources related to total OPEB liability, and total OPEB expense have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 11. Net Position Flow Assumptions Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. 12. Fund Balance Flow Assumptions Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 13. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The City itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The City reports the following classifications of fund balance: Nonspendable fund balance – includes amounts that are not in spendable form or are legally or contractually required to be maintained intact. Restricted fund balance – includes amounts that have external constraints imposed upon the use of the resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 45 Committed fund balance - includes amounts that can be used only for the specific purposes pursuant to constraints imposed by a formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by approval of a resolution prior to the end of the fiscal year, commit fund balance. Once approved, the limitation imposed by the resolution remains in place until a similar action is taken (the approval of another resolution) to remove or revise the limitation. Assigned fund balance – includes amounts that are intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. The City Council has, by resolution, authorized the City’s Finance Director to assign fund balance to a specific purpose as approved by the City’s fund balance policy. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. Unassigned fund balance – the residual classification for the government’s General Fund and includes all spendable amounts not contained in the other classifications, and other funds that have total negative fund balances. 14. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and deferred outflows and inflows of resources, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. G. Revenues and Expenditures/Expenses 1. Program Revenues Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. 2. Property Taxes Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real and business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed. Penalties are calculated after February 1 up to the date collected by the government at the rate of 6% for the first month and increased 1% per month up to a total of 12%. Interest is calculated after February 1 at the rate of 1% per month up to the date collected by the government. Under state law, property taxes levied on real property constitute a lien on the real property which cannot be forgiven without specific approval of the State Legislature. The lien expires at the end of twenty years. Taxes levied on personal property can be deemed uncollectible by the City. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 46 Proprietary Funds Operating and Nonoperating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the utility fund is charges to customers for sales and services. The utility fund also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for the utility fund includes the operating cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. H. GASB Pronouncements implemented by the City GASB Statement No. 87, Leases. This Statement was issued in June 2017 and increases the usefulness of governmental financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. The requirements of this Statement were effective for reporting periods beginning after June 15, 2021. The City has implemented this Statement in fiscal year 2022. Note 2. Stewardship, Compliance and Accountability Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for the General, Debt Service, Grant and Utility Funds. The original budget is adopted by the City Council prior to the beginning of the year. The legal level of control is defined at the fund level. No funds can be transferred or added to a budgeted fund without Council approval. Appropriations lapse at the end of the year. Budgetary Variances Expenditures exceeded appropriations during fiscal year 2022 in the following funds/functions:  General Fund o General government ($957,365)  Grant Fund o Public safety ($13,497)  Park Development Fund o Culture and recreation ($164,601) Note 3. Deposits and Investments Deposits – State statutes require that all deposits be fully collateralized by U.S. Government obligations or obligations of Texas and its agencies that have a market value of not less than the principal amount of the deposits. The City’s demand deposits and certificates of deposit were fully insured or collateralized at September 30, 2022, with collateral required by state statutes. At year-end, the carrying amount of the City’s deposits (including component units and fiduciary funds) was $71,828,907 and the bank balance was $71,989,833. Of the bank balance, federal depository insurance covered $250,000 and the remainder was covered by collateral held by the pledging financial institution’s agent in the City’s name. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 47 Cash and cash equivalents as of September 30, 2022 consist of and are classified in the accompanying financial statements as follows: Statement of net position: Primary government: Cash and cash equivalents 35,600,951$ Restricted cash and cash equivalents 47,393,815 Total primary government 82,994,766 Fiduciary Fund: Cash and cash equivalents 2,183,378 Component units: Cash and cash equivalents 9,413,819 Total cash and investments 94,591,963$ Cash on hand 2,000$ Deposits with financial institution 71,828,907 Investment pools / money market 22,761,056 Total cash and investments 94,591,963$ As of September 30, 2022, the City had the following investments: Value Weighted Average Maturity (Years) Texas CLASS 1,869,287$ 0.0849 TexPool 19,662,818 0.0658 Money market accounts 1,228,951 Total 22,761,056$ Interest rate risk Interest rate risk is the risk that changes in interest rates may adversely affect the value of an investment. The City structures its investment portfolio so that securities mature to meet cash requirements for ongoing operations, and monitors interest rate risk using weighted average maturity analysis. In accordance with its investment policy, the City manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio as a whole to no more than 365 days. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 48 Credit risk The City's policy requires that investments are limited to only certain instruments that are authorized by the Public Funds Investment Act. Further specifications are that external investment pools must be rated no lower than "AAA" or an equivalent rating by at least one nationally recognized rating service, United States Treasury and agency investments are guaranteed (either express or implied) and backed by the full faith and credit of the United States or its respective agencies, and certificates of deposit are guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or fully collateralized under an approved pledge agreement. As of September 30, 2022, the City's investment in TexPool was rated "AAAm" by Standard & Poor’s. The certificates of deposit are unrated but were fully collateralized. Custodial credit risk – deposits In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned. The City's investment policy requires funds on deposit at the depository bank to be collateralized by securities, to the extent the deposits exceed FDIC coverage. As of September 30, 2022, the combined values of pledged securities and FDIC coverage exceeded bank balances for the City. Custodial credit risk – investments For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policy requires that custody of securities is maintained at financial institutions, avoiding physical possession, and that securities owned by the City shall be held in the City’s account. Concentration of credit risk The risk is the risk of loss attributed to the magnitude of a City’s investment in a single issuer. The City’s investment policy specifies undue concentrations of assets in a specific maturity sector shall be avoided. The City’s investments are stated at fair value, with certain exceptions described below. The City categorizes its fair value measurements within the fair value hierarchy established by GASB Statement No. 72, Fair Value Measurement and Application, which provides a framework for measuring fair value and establishes a three-level fair value hierarchy that describes the inputs that are used to measure assets and liabilities. • Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date. • Level 2 inputs are inputs, other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly. • Level 3 inputs are unobservable inputs for an asset or liability. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. If a price for an identical asset or liability is not observable, a government should measure fair value using another valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. Certain investments are not required to be measured at fair value; these include its investment in the TexPool external investment pool, which is measured at amortized cost and is included in cash equivalents, and its investments in certificates of deposit, which are measured based on cost. These instruments are exempt from categorization within the fair value hierarchy. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 49 TexPool TexPool is a local government investment pool, duly chartered and overseen by the State Comptroller’s Office, and administered and managed by Federated Investors, Inc. State Street Bank serves as the custodial bank. TexPool’s investment portfolio consists of U.S. Government securities; collateralized repurchase and reverse repurchase agreements; and AAA-rated money market mutual funds. The pool’s investments are highly rated by nationally recognized statistical rating organizations, have no more than five percent concentrated in one issuer (excluding U.S. government securities), and are sufficiently liquid to meet reasonably foreseeable redemptions. TexPool transacts at a net asset value of $1.00 per share, and maintains a weighted average maturity of 60 days or less and a weighted average life of 120 days or less. TexPool has a redemption notice period of one day and investors may redeem daily. TexPool's authority may only impose restrictions on redemptions in the event of a general suspension of trading on major securities markets, general banking moratorium, or national state of emergency that affects TexPool's liquidity. Note 4. Receivables The following comprise receivable balances of the primary government as of September 30, 2022: General Capital Projects Debt Service Fund PID Capital Projects Grant Fund Utility Fund Total Property taxes 85,995$ -$ 22,204$ -$ -$ -$ 108,199$ Sales taxes 692,646 - - - - - 692,646 Accounts 233,174 - - - 1,612 2,790,497 3,025,283 Interest 6,500 - - 10,941 - 20,879 38,320 Intergovernmental - 41,396 - - - - 41,396 Lease receivable 511,279 - - - - - 511,279 Less: Allowance - - - - - (384,434) (384,434) Totals 1,529,594$ 41,396$ 22,204$ 10,941$ 1,612$ 2,426,942$ 4,032,689$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 50 Note 5. Capital Assets The following is a summary of changes in capital assets for governmental activities for the year ended September 30, 2022: Beginning Ending Balance Additions Dispositions Balance Governmental activities: Capital assets, not being depreciated/amortized: Land 3,978,343$ -$ -$ -$ 3,978,343$ Construction in progress 36,812,195 15,065,254 - - 51,877,449 Total capital assets, not being depreciated/amortized 40,790,538 15,065,254 - - 55,855,792 Capital assets, being depreciated/amortized: Park improvements 6,185,471 - - - 6,185,471 Buildings 1,542,758 - - - 1,542,758 Furniture and fixtures 33,911 - - - 33,911 Streets and drainage 67,358,810 8,977,439 - - 76,336,249 Machinery and equipment 4,570,077 238,863 - - 4,808,940 Right-to-use leased assets - vehicles - 1,541,966 - - 1,541,966 Total capital assets being depreciated/amortized 79,691,027 10,758,268 - - 90,449,295 Less accumulated depreciation/amortization for: Park improvements 2,946,005 319,724 - - 3,265,729 Buildings 741,430 79,411 - - 820,841 Furniture and fixtures 28,500 714 - - 29,214 Streets and drainage 17,039,095 3,607,912 - - 20,647,007 Machinery and equipment 2,863,823 515,433 - - 3,379,256 Right-to-use leased assets - vehicles - 671,018 - - 671,018 Total accumulated depreciation/amortization 23,618,853 5,194,212 - - 28,813,065 Total capital assets being depreciated/amortized, net 56,072,174 5,564,056 - - 61,636,230 Governmental activities capital assets, net 96,862,712$ 20,629,310$ -$ -$ 117,492,022$ Adjustments / Transfers Depreciation expense was charged to governmental functions as follows: Governmental activities: General government 717,297$ Culture and recreation 461,204 Community services 9,939 Public safety 488,522 Public works 3,517,250 Total depreciation/amortization expense - governmental activities 5,194,212$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 51 The following is a summary of changes in capital assets for business-type activities for the year ended September 30, 2022: Beginning Ending Balance Additions Dispositions Balance Business-type activities: Capital assets, not being depreciated/amortized: Land 1,260,143$ 100,000$ -$ -$ 1,360,143$ Construction in progress 1,559,197 5,053,855 - - 6,613,052 Total capital assets, not being depreciated/amortized 2,819,340 5,153,855 - - 7,973,195 Capital assets, being depreciated/amortized: Furniture and fixtures 5,620 - - - 5,620 Buildings and improvements 486,244 - - - 486,244 Machinery and equipment 2,370,368 362,064 - - 2,732,432 Right-to-use leased assets - vehicles - 305,573 - - 305,573 Water treatment system 23,178,054 1,918,345 - - 25,096,399 GTUA water improvements 17,189,179 - - - 17,189,179 GTUA sewer improvements 939,796 - - - 939,796 Water and sewer system 38,437,907 2,207,545 - - 40,645,452 Total capital assets being depreciated/amortized 82,607,168 4,793,527 - - 87,400,695 Less accumulated depreciation/amortization for: Furniture and fixtures 5,620 - - - 5,620 Buildings and improvements 267,423 25,533 - - 292,956 Machinery and equipment 1,847,203 109,343 - - 1,956,546 Right-to-use leased assets - vehicles - 180,587 - - 180,587 Water treatment system 5,022,965 711,073 - - 5,734,038 GTUA water improvements 5,610,690 509,895 - - 6,120,585 GTUA sewer improvements 800,786 27,966 - - 828,752 Water and sewer system 8,812,780 1,296,755 - - 10,109,535 Total accumulated depreciation/amortization 22,367,467 2,861,152 - - 25,228,619 Total capital assets being depreciated/amortized, net 60,239,701 1,932,375 - - 62,172,076 Business-type activities capital assets, net 63,059,041$ 7,086,230$ -$ -$ 70,145,271$ Adjustments / Transfers Depreciation expense was charged to business-type functions as follows: Water and sewer 2,861,152$ Total depreciation/amortization expense - business-type activities 2,861,152$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 52 The following is a summary of changes in capital assets for component units for the year ended September 30, 2022: Beginning Ending Balance Additions Dispositions Balance Community Development Corporation: Capital assets, not being depreciated: Land 2,757,904$ (2,757,904)$ -$ -$ Total capital assets, not being depreciated 2,757,904 (2,757,904) - - Community Development Corporation capital assets, net 2,757,904$ (2,757,904)$ -$ -$ Beginning Ending Balance Additions Dispositions Balance Economic Development Corporation: Capital assets, not being depreciated: Land 90,346$ (50,000)$ -$ 40,346$ Total capital assets, not being depreciated 90,346 (50,000) - 40,346 Depreciable assets: Buildings and improvements 366,589 - - 366,589 Furniture and fixtures 13,871 - - 13,871 Total depreciable assets 380,460 - - 380,460 Less accumulated depreciation for: Buildings and improvements 166,621 18,459 - 185,080 Furniture and fixtures 6,566 1,391 - 7,957 Total accumulated depreciation 173,187 19,850 - 193,037 Total depreciable assets, net 207,273 (19,850) - 187,423 Economic Development Corporation capital assets, net 297,619$ (69,850)$ -$ 227,769$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 53 Remaining commitments under related construction contracts for general government and utility construction projects at year end were as follows: Approved Stored and Opinion Construction Completed Remaining Projects Unit Budget To Date Commitment Sherley Park Improvements General government 787,838$ 432,625$ 355,213$ Johnson Park Improvements General government 625,000 489,314 135,686 City Hall/Municipal Complex General government 30,910,000 30,772,558 137,442 Ferguson Parkway General government 2,092,188 380,083 1,712,105 Rosamond Parkway Extension General government 7,771,929 1,797,782 5,974,147 Hackberry Drive Reconstruction General government 1,460,000 197,625 1,262,375 Aerial/Ladder Fire Truck General government 1,660,000 1,619,969 40,031 Community Library General government 22,010,000 416,883 21,593,117 Fire Station No. 2 General government 11,000,000 11,645 10,988,355 Skate Park General government 1,982,125 - 1,982,125 Foster Crossing Road General government 989,065 989,065 - Taylor Boulevard General government 1,229,860 181,359 1,048,501 Hurricane Creek PID - MIA General government 2,408,234 2,082,377 325,857 Hurricane Creek PID - IA #1 General government 6,474,557 6,432,227 42,330 Sherley Tract - MIA General government 2,259,650 1,009,812 1,249,838 Sherley Tract - IA #1 General government 11,664,656 5,060,020 6,604,636 US 75 Utility Relocation - Phase 2 General government 128,058 107,064 20,994 East Fork Regions Sewer Utility 954,857 764,648 190,209 Oak Ridge Sewer Utility 63,730 35,273 28,457 Throckmortion Creek Trunk Sewer Expansion Utility 335,732 210,041 125,691 State Highway 5 Utility Relocation Utility 338,692 163,107 175,585 Collin Pump Station Upgrade Utility 3,616,213 729,955 2,886,258 Slayter Creek Park Improvements General government 5,804,567 74,934 5,729,633 Bryant Park Improvements General government 864,000 113,857 750,143 Community Recreation Center General government 15,580,000 - 15,580,000 Hurricane Creek Regional WWTP Utility 85,000,000 2,451,542 82,548,458 Total 218,010,951$ 56,523,764$ 161,487,187$ The remaining commitments above will be primarily financed through completion of construction with the resources of the capital projects funds, supplemented by the general fund and issuance of debt, as needed. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 54 Note 6. Long-term Liabilities The following is a summary of changes in the City's total long-term liabilities for the year ended September 30, 2022. In general, the City uses the general and debt service funds to liquidate governmental long-term liabilities. Amounts Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds, notes and other payables: General obligation bonds 9,494,000$ -$ (251,000)$ 9,243,000$ 272,000$ Certificates of obligation 30,425,000 - (215,000) 30,210,000 215,000 Combination tax and revenue refunding bonds 375,000 - (40,000) 335,000 35,000 Financed purchases 346,060 - (44,001) 302,059 45,700 Right-to-use lease liability - 1,541,966 (646,704) 895,262 - Unamortized premiums 2,098,685 - (117,706) 1,980,979 - Total bonds, notes and other payables, net 42,738,745 1,541,966 (1,314,411) 42,966,300 567,700 Other liabilities: Compensated absences 409,398 941,673 (276,340) 1,074,731 - Net pension liability 837,502 - (267,744) 569,758 - Total other postemployment benefit liability 108,822 21,620 - 130,442 - Total governmental activities 44,094,467$ 2,505,259$ (1,858,495)$ 44,741,231$ 567,700$ Amounts Beginning Ending Due Within Balance Additions Reductions Balance One Year Business-type activities: Bonds, notes and other payables: Contract revenue bonds 2,858,333$ -$ (299,583)$ 2,558,750$ 320,000$ TWDB participation agreement 2,168,750 - - 2,168,750 - Combination tax and revenue certificates of obligation 6,605,000 - (90,000) 6,515,000 100,000 Combination tax and revenue refunding bonds 6,925,000 - (635,000) 6,290,000 654,000 Financed purchases 1,228,121 - (171,490) 1,056,631 173,783 Right-to-use lease liability - 305,573 (175,931) 129,642 - Unamortized premiums (discounts)1,159,439 - (138,263) 1,021,176 - Total bonds, notes and other payables, net 20,944,643 305,573 (1,510,267) 19,739,949 1,247,783 Other liabilities: Compensated absences 100,438 169,875 (43,793) 226,520 - Net pension liability 225,481 - (112,728) 112,753 - Total other postemployment benefit liability 29,298 - (3,484) 25,814 - Total business-type activities 21,299,860$ 475,448$ (1,670,272)$ 20,105,036$ 1,247,783$ Amounts Beginning Ending Due Within Balance Additions Reductions Balance One Year Component Units - CDC: Bonds, notes and other payables: Sales tax revenue bonds 2,645,000$ -$ (160,000)$ 2,485,000$ 160,000$ Other liabilities: Compensated absences 13,958 18,204 (9,183) 22,979 - Net pension liability 10,737 9,865 20,602 - Total other postemployment benefit liability 1,395 3,322 - 4,717 - DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 55 Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities in the governmental funds. The governmental activities compensated absences, OPEB liability, and net pension liability are generally liquidated by the general fund. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. Long-term debt at year end was comprised of the following debt issues: Interest Description Rates Balance Governmental activities: General obligation refunding bonds Series 2014B 0.30 - 2.40 %833,000$ Series 2021 2.00-5.00 %8,410,000 Total general obligation bonds 9,243,000 Certificates of obligation Series 2018 3.00 - 4.00 %30,210,000 Total certificates of obligation 30,210,000 Combination tax and revenue refunding bonds Series 2017 2.00 - 4.00 %335,000 Total certificates of obligation 335,000 Financed purchases 2018 Pierce Enforcer 3.86%302,059 Total financed purchases 302,059 Total governmental activities long-term debt 40,090,059$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 56 Interest Description Rates Balance Business-type activities: Contract revenue and revenue refunding bonds Series 2006 GTUA Contract Revenue Bonds (12 &15)2.95 - 3.75 %555,000$ 2007 GTUA Contract 2.95 - 4.10 %900,000 CGMA Pipeline Project Phase I 2.29 - 5.74 %270,000 CGMA Pipeline Project Phase III 2.67 - 5.62 %833,750 Total contract revenue and revenue refunding bonds 2,558,750 TWDB state participation agreement CGMA Pipeline Project Phase II 5.68 - 5.83 %2,168,750 Total TWDB state participation agreement 2,168,750 Combination tax & revenue certificates of obligation Series 2014 2.00 - 2.65 %3,655,000 Series 2021 2.00-5.00 %2,860,000 Total combination tax & revenue certificates of obligation 6,515,000 Combination tax and revenue refunding bonds Series 2014A 2.11%1,260,000 Series 2017 2.00 - 4.00 %5,030,000 Total combination tax and revenue refunding bonds 6,290,000 Financed purchases 2017 AMI Meters 2.00%1,056,631 Total financed purchases 1,056,631 Total business-type activities long-term debt 18,589,131$ Component units: Sales Tax Revenue Bonds CDC - Sales Tax Revenue Bonds - Series 2012B 3.30%1,185,000$ CDC - Sales Tax Revenue Bonds - Series 2016 1.9% - 4.5%1,300,000 Total CDC long-term debt 2,485,000$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 57 The annual requirements to amortize general obligation bonds, certificates of obligation outstanding, and sales tax revenue bonds at year end were as follows: Year Ending September 30, Principal Interest Principal Interest Principal Interest 2023 272,000$ 284,159$ 215,000$ 1,242,950$ 35,000$ 12,700$ 2024 493,000 270,817 235,000 1,233,950 35,000 11,300 2025 529,000 250,886 240,000 1,224,450 25,000 10,100 2026 549,000 229,488 250,000 1,214,650 25,000 9,100 2027 1,500,000 902,750 3,885,000 5,662,875 215,000 12,500 2028-2032 1,755,000 555,750 6,605,000 4,438,100 - - 2033-2037 1,965,000 345,200 7,110,000 3,032,000 - - 2038-2042 2,180,000 124,650 7,995,000 1,559,900 - - 2043-2047 3,675,000 148,500 - - 2048 - - - - - - Totals 9,243,000$ 2,963,700$ 30,210,000$ 19,757,375$ 335,000$ 55,700$ Governmental Activities GO Bonds CO Bonds Combination Tax and Revenue Year Ending September 30, Principal Interest Principal Interest Principal Interest 2023 320,000$ 118,496$ -$ 125,206$ 100,000$ 265,838$ 2024 332,500 105,503 - 125,206 135,000 261,913 2025 355,000 91,820 - 125,206 165,000 257,013 2026 378,750 76,879 95,000 125,206 340,000 248,200 2027 708,750 227,781 562,500 538,167 3,640,000 835,456 2028-2032 463,750 68,107 745,000 356,734 2,135,000 107,338 2033-2037 - - 766,250 114,690 - - Totals 2,558,750$ 688,586$ 2,168,750$ 1,510,415$ 6,515,000$ 1,975,756$ Year Endin g September 30,Principal Interest 2023 654,000$ 232,313$ 2024 649,000 208,528 2025 645,000 184,452 2026 492,000 163,176 2027 2,550,000 544,800 2028-2032 1,300,000 52,000 Totals 6,290,000$ 1,385,269$ Business-type Activities TWDB State Participation Combination Tax and Revenue Certificates of ObligationAgreementContract Revenue Bonds Combination Tax and Revenue DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 58 Year Endin g September 30,Principal Interest 2023 100,000$ 93,865$ 2024 115,000 90,278 2025 135,000 86,013 2026 150,000 81,050 2027 1,065,000 303,908 2028-2032 780,000 105,203 2033-2037 140,000 3,150 Totals 2,485,000$ 763,467$ Combination Tax and Revenue Total matured and unmatured bonds outstanding related to special assessment and special tax districts are $23,101,000 at September 30, 2022. The City acts as an agent for the property owners in collecting special assessments, forwarding the collections to bondholders and initiating foreclosure proceedings, when appropriate. The City is not liable for repayment of the special district bonds, and accordingly, they are not reflected in accompanying basic financial statements. Cash held on deposit and corresponding amounts payable for the districts are reported in the Public Improvement District Custodial Fund. Contractual Obligations with Greater Texoma Utility Authority Under the terms of long term water supply and sewer service contracts between the City and Greater Texoma Utility Authority (GTUA), the City recognizes that GTUA has an undivided ownership interest in the City's water system and sewer collection and treatment facility equivalent to the percentage of the total cost of the facility provided by GTUA through the issuance of GTUA bonds. The City has a contractual obligation to make payments specified by the contract to GTUA to pay the principal and interest on the bonds, maintain a Reserve Fund for the security and payment of bonds similarly secured, pay the administrative and overhead expenses of GTUA directly attributable to the bonds, and pay any extraordinary expenses incurred by GTUA in connection with the bonds. Under terms of the contracts the City's obligation to make payments to GTUA, as well as GTUA's ownership interest in the facilities terminates, when all of GTUA's bonds issued in connection with construction of the facilities have been paid in full, are retired, and are no longer outstanding. Collin Grayson Municipal Alliance Transmission Water Pipeline In 2004, the City, along with the City of Van Alstyne, Howe, and Melissa, formed a group called the Collin Grayson Municipal Alliance ("CGMA"). CGMA entered into a long-term contractual obligation with GTUA for the purpose of providing funds for the construction of a transmission water pipeline that will provide water to CGMA cities. The cost of the pipeline is being funded in four phases. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 59 Each CMGA city was required to make payments to GTUA in an amount equivalent to 25% of the total obligation to cover their portion of the cost of the obligation until the pipeline project was completed. As water continues to flow to each CGMA city, the City shall be charged it's percentage or fraction share of debt service on the obligation based upon the amount of water to be paid by the City under its water contract (i.e. the greater of its minimum take-or-pay amount or the actual amount of water taken) divided by the total amount of water to be paid by all CGMA cities. The sum of the four (4) fractional amounts shall always equal 100% of the debt service on the contractual obligation with GTUA. The billing rates for each City will be calculated to provide funds necessary to cover the contractual obligation, interest, repairs, maintenance, and production costs. At the end of the contractual obligation with GTUA, the City will own an undivided interest in the transmission water pipeline based on the percentage of water it utilized and paid for during the contract term. The contract will expire and the transfer of ownership will occur during the fiscal year ended September 30, 2040, as long as no new debt is issued. Financed Purchases On October 9, 2018, the City entered into a lease agreement as lessee for financing the acquisition of a fire apparatus which is payable from the general fund. This lease agreement qualifies as a financed purchase for accounting purposes and, therefore, has been recorded at the present value of their future minimum lease payments as of the inception date. On November 28, 2016, the City entered into a financed purchase to finance the acquisition of water meters which is payable from the utility fund. The assets acquired through financed purchases as of September 30, 2022 are as follows: Governmental Business-type Activities Activities Assets: Fire apparatus 485,068$ -$ Water meters - 1,340,010 Sewer cleaner truck 441,360 Less: Accumulated depreciation (184,421) (666,252) To tal 300,647$ 1,115,118$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 60 The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2022 are as follows: Year Ending Governmental Business-type September 30,Activities Activities 2023 57,349$ 201,214$ 2024 57,349 201,214 2025 57,349 201,214 2026 57,349 201,214 2027-2028 114,698 355,913 Total minimum future lease payments 344,094 1,160,769 Less: amount representing interest (42,035) (104,138) Present value of minimum lease payments 302,059$ 1,056,631$ Right-to-Use Lease Liability The City has entered into multiple lease agreements as lessee. The leases allow the right-to-use vehicles over the term of the lease. The City is required to make monthly payments at its incremental borrowing rate or the interest rate stated or implied within the leases. The lease rate, term and ending lease liability are as follows: Interest Liability at Lease Term Ending Rate Commencement in Years Balance Governmental activities Vehicles Various 1,541,966$ 5 895,262$ Total governmental activities 895,262$ Business-type activities Vehicles Various 305,573 5 129,641$ Total business-type activities 129,641$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 61 The future principal and interest lease payments as of fiscal year end are as follows: Fiscal Year Governmental Business-Type Ending Activities Activities 2023 363,560$ 64,027$ 2024 270,927 38,862 2025 212,309 23,861 2026 154,867 17,108 2027 86,881 11,442 Total minimum lease payments 1,088,544 155,300 Less: amount representing interest (193,282) (25,658) Present value of minimum lease payments 895,262$ 129,642$ The value of the right-to-use leased assets as of the end of the current fiscal year was $1,541,966 with accumulated amortization $671,018 for the governmental activities, and $305,573 with accumulated depreciation of $180,587 for the business-type activities. Note 7. Interfund Balances and Activity 1.Interfund Receivables and Payables Interfund balances consist of short-term lending/borrowing arrangements that have resulted primarily from expenditures that are paid by one fund and then charged back to the appropriate other fund. Additionally, some lending/borrowing may occur between two or more governmental funds due to earned revenues not being received from outside agencies until the subsequent year. There were no interfund balances as of September 30, 2022. 2.Interfund Transfers Transfers between funds during the year were as follows: Transfers Out Transfers In Amounts Nonmajor Funds Capital Projects Fund 292,407$ Nonmajor Funds Nonmajor Funds 3,021 To tals 295,428$ Transfers to the capital project fund were for the road project. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 62 Note 8. Other Information A.Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City participates along with approximately 2,800 other entities in the Texas Municipal League's Intergovernmental Risk Pools (the "Pool"). The Pool purchases commercial insurance at group rates for participants in the Pool. The City has no additional risk or responsibility to the Pool, outside of the payment of insurance premiums. The City has not significantly reduced insurance coverage or had settlements that exceeded coverage amounts for the past three years. Note 9. Defined Benefit Pension Plan Plan Description The City and three of its component units participate as one of 901 plans in the nontraditional, joint contributory, hybrid defined benefit agent multiple-employer pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS, an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (TMRS Act) is an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available annual comprehensive financial report (ACFR) that can be obtained at www.tmrs.com. All eligible employees of the City are required to participate in TMRS. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. At retirement, the member’s benefit is calculated based on the sum of the member’s contributions with interest, the city-financed monetary credits with interest, and their age at retirement and other actuarial factors. The retiring member may select one of seven monthly benefit payment options. Members may also choose to receive a portion of their benefit as a lump sum distribution in an amount equal to 12, 24 or 36 monthly payments, which cannot exceed 75% of the total member contributions and interest. The plan provisions are adopted by City were as follows: 2021 2020 Employee deposit rate 7.00%7.00% Matching ratio (City to employee)2 to 1 2 to 1 Years required for vesting 5 5 Service requirement eligibility (expresed as age/years of service) 60/5, 0/20 60/5, 0/20 Updated service credit 75% Repeating, 75% Repeating, Transfers Transfers Annuity increase (to retirees)70% of CPI Repeating 70% of CPI Repeating DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 63 Employees Covered by Benefit Terms At the December 31, 2021 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 18 Inactive employees entitled to but not yet receiving benefits 64 Active employees 129 Total 211 Contributions Member contribution rates in TMRS are either 5%, 6% or 7% of the member’s total compensation, and the city matching ratios are either 1:1(1 to 1), 1.5:1 (1 ½ to 1) or 2:1 (2 to 1), both as adopted by the governing body of the city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The city’s contribution rate is based on the liabilities created from the benefit plan options selected by the city and any changes in benefits or actual experience over time. Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the City were 14.09% and 13.57% in calendar years 2021 and 2022, respectively. The City’s contributions to TMRS for the year ended September 30, 2022, were $1,240,283, and were equal to the required contributions. Net Pension Liability The City’s Net Pension Liability (NPL) was measured as of December 31, 2021, and the Total Pension Liability (TPL) used to calculate the NPL was determined by an actuarial valuation as of that date. Actuarial Assumptions The total pension liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Overall payroll growth 2.75% per year, adjusted down for population declines, if any Investment rate of return 6.75%, net of pension plan investment expense, including inflation Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees is used with a 4- year set-forward for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and females respectively, to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 64 The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were adopted in 2019 and first used in the December 31, 2019 actuarial valuation. The post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study covering 2019 through 2011 and dated December 31, 2013. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target allocation and best estimates of real rates of return for each major asset class in fiscal year 2022 are summarized in the following table: Long-term Expected Real Target Rate of Return Asset Class Allocation (Arithmetic) Global Equity 35.0% 7.55% Core Fixed Income 6.0% 2.00% Non-Core Fixed Income 20.0% 5.68% Other public and private markets 12.0% 7.22% Real Estate 12.0% 6.85% Hedge funds 5.0% 5.35% Private Equity 10.0% 10.00% Total 100.0% Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that member and employee contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 65 Changes in Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a)(b)(a) - (b) Balance at December 31, 2019 11,006,117$ 9,932,397$ 1,073,720$ Changes for the year: Service cost 1,689,215 - 1,689,215 Interest 789,622 - 789,622 Change of benefit terms - - - Difference between expected and actual experience 301,846 - 301,846 Changes of assumptions - - - Contributions - employer - 1,240,283 (1,240,283) Contributions - employee - 616,181 (616,181) Net investment income - 1,300,777 (1,300,777) Benefit payments, including refunds of employee contributions (305,245) (305,245) - Administrative expense - (5,991) 5,991 Other changes - 41 (41) Net changes 2,475,438 2,846,046 (370,608) Balance at December 31, 2020 13,481,555$ 12,778,443$ 703,112$ Increase (Decrease) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City and its component units, calculated using the discount rate of 6.75%, as well as what the City and its component unit’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate: 1% Decrease in 1% Increase in Discount Rate (5.75%) Discount Rate (6.75%) Discount Rate (7.75%) Net pension liability (asset)3,201,058$ 703,112$ (1,278,774)$ Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in a separately-issued TMRS financial report. That report may be obtained on the Internet at www.tmrs.com. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2022, the City recognized pension expense of $1,080,502. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 66 At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experience 423,102$ 12,167$ Changes in actuarial assumptions 24,256 - Difference between projected and actual investment earnings - 657,633 Contributions subsequent to the measurement date 1,050,136 - Totals 1,497,494$ 669,800$ $1,050,136 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year ending September 30, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending December 31, 2022 (31,304)$ 2023 (137,802) 2024 (25,684) 2025 (63,788) 2026 36,136 Thereafter - Totals (222,442)$ Note 10. Other Postemployment Benefits Plan Plan Description The City contributes to a single-employer defined benefit OPEB plan, the group-term life insurance plan known as the SDBF. This is a voluntary program administered by the Texas Municipal Retirement System (TMRS) in which the City elected, by ordinance, to provide group term life insurance coverage to active and retired members. The City may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1. Benefits Provided The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period preceding the month of death). The death benefit for retirees is considered another postemployment benefit (OPEB) and is a fixed amount of $7,500. As the SDBF covers both active and retiree participants, with no segregation of assets, the SDBF is considered to be an unfunded OPEB plan (i.e. no assets are accumulated). DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 67 Contributions The member city contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. The intent is not to pre-fund retiree term life insurance during employees’ entire careers. At the December 31, 2021 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees currently receiving benefits 13 Inactive employees entitled to but not yet receiving benefit 9 Active employees 129 Total 151 Accounting Policy An irrevocable trust has not been established that meets the criteria in paragraph 4 of GASB Statement No. 75. Therefore, the plan is not accounted for as a trust fund. The plan does not issue a separate financial report. Actuarial Assumptions Significant methods and assumptions used in the December 31, 2021 actuarial valuation are as follows: Inflation 2.5% per year Salary increases 3.5% to 11.5% including inflation Discount rate 1.84% as of December 31, 2021 Source: Fidelity Index's "20-Year Municipal GO AA Index" Retirees' share of benefit related costs $0 Administrative expenses All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements under GASB Statement No. 6 Mortality rates - service retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with Scale UMP Mortality rates - disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4 year set-forwar d for males and a 3 year set-forward for females. In addition, a 3.5% and 3% minimum mortality rate will be applied to reflect the impairment for young members who become disabled for males and females, respectively. Th e rates are projected on a fully generational basis by Scale UMP to accoun for future mortality improvements subject to the floor. Note: The actuarial assumptions used in the December 31, 2021 valuation were based on the results of an actuarial experience study for the period December 31, 2014 to December 31, 2018. Total OPEB Liability The City’s total OPEB liability of $160,972 was measured as of December 31, 2021, and was determined by an actuarial valuation as of that date. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 68 The total OPEB liability and related information are as follows for the City at September 30, 2022:. Total OPEB Liability Balance at December 31, 2020 139,516$ Changes for the year: Service cost 24,647 Interest on Total OPEB Liability 3,019 Change of benefit terms - Difference between expected and actual experience (10,814) Changes of assumptions or other inputs 6,365 Benefit payments (1,761) Net changes 21,456 Balance at December 31, 2021 160,972$ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2022, the City recognized OPEB expense of $32,803. At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience 8,544$ 12,090$ Changes in actuarial assumptions and other inputs 38,151 2,908 Contributions made subsequent to the measurement date 1,546 - Totals 48,241$ 14,998$ Benefit payments subsequent to the measurement date and before fiscal year-end of $1,546 will be recognized as a reduction of the total OPEB liability in the year ending September 30, 2023. Other amounts reported as deferred outflows related to OPEBs will be recognized in OPEB expense as follows: Year Ending September 30 2023 5,137$ 2024 5,137 2025 5,137 2026 5,008 2027 4,747 Thereafter 6,531 Totals 31,697$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 69 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate of 1.84%, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1- percentage-point lower (0.84%) or 1-percentage-point higher (2.84%) than the current discount rate: 1% Decrease in 1% Increase in Discount Rate (1.00%) Discount Rate (2.00%) Discount Rate (3.00%) 206,799$ 160,972$ 126,475$ Note 11. Villages of Hurricane Creek Public Improvement District On November 13, 2018, the City of Anna City Council approved Ordinance No. 2018-01-506 authorizing the creation of a Public Improvement District. The Hurricane Creek Public Improvement District consists of approximately 368.20 acres within the jurisdictions of the City. This district was created in accordance with Chapter 372.003 of the Texas Local Government Code, as amended. On March 28, 2019 the City of Anna City Council approved the issuance and sale of two Special Assessment Revenue Bonds in the amounts of $7,735,000 and $3,535,000 known as Hurricane Creek Public Improvement District Improvement Area #1 Project and Hurricane Creeks Public Improvement District Improvement Major Improvement Area Project, respectively. These bonds were authorized in order to finance the projects benefiting the entire Hurricane Creek Public Improvement District including certain roadway, water, sewer, and drainage improvements. Note 12. Sherley Tract Public Improvement District On December 8, 2020, the City of Anna City Council approved Ordinance No. 2020-12-839 authorizing the creation of a Public Improvement District. The Sherley Tract Public Improvement District consists of approximately 289.751 acres located in the extraterritorial jurisdiction of the City. This district was created in accordance with Chapter 372.003 of the Texas Local Government Code, as amended. On July 13, 2022, the City of Anna City Council approved the issuance and sale of two Special Assessment Revenue Bonds in the amounts of $9,400,000 and $2,896,000 known as Sherley Tract Public Improvement District No. 2 Improvement Area #1 Project and Sherley Tract Public Improvement District No. 2 Major Improvement Area Project, respectively. These bonds were authorized in order to finance the projects benefiting the entire Sherley Tract Public Improvement District No. 2 including certain roadway, water, sewer, and drainage improvements. Note 13. Anna Capri Public Improvement District On April 12, 2022, the City of Anna City Council approved Resolution No. 2022-04-1140 authorizing the creation of a Public Improvement District. The Anna Capri Public Improvement District consists of approximately 279.554 acres located within the corporate city limits of the City. This district was created in accordance with Chapter 372.003 of the Texas Local Government Code, as amended. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Notes to Financial Statements 70 Note 14. Subsequent Events On September 1, 2022, the City issued $64,845,000 in Combination Tax and Revenue Certificates of Obligations, Series 2022. Proceeds from the sale of the Certificates will be used for acquiring, constructing, installing, and equipping additions, improvements, extensions, and equipment for the City’s sewer system, including wastewater treatment plant and related infrastructure improvements and the acquisition of land and interests in land as necessary therefor. As of September 30, 2022 no sales had been made or proceeds received. On October 11, 2022, the City closed on $32,465,000 in General Obligation Bonds, Series 2022. On December 13, 2022, the City issued $10,550,000 of Special Assessment Revenue Bonds, Series 2022 known as Hurricane Creek Public Improvement District Improvement Area #2 Project. Proceeds of these bonds will be used to finance the projects benefiting Improvement Area #2 of the Hurrican Creek Public Improvement District. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 71 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 72 Required Supplementary Information DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund For the Year Ended September 30, 2022 73 Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Property taxes 8,015,000$ 8,015,000$ 8,004,989$ (10,011)$ Sales taxes 2,760,000 3,296,370 3,847,911 551,541 Charges for services 154,700 154,700 285,779 131,079 License and permits 3,625,000 3,659,960 5,752,179 2,092,219 Franchise and local taxes 485,000 485,000 888,723 403,723 Investment income 30,000 30,000 90,387 60,387 Other revenues 16,300 16,300 151,464 135,164 Intergovernmental 48,395 48,395 47,640 (755) Fines and forfeitures 90,000 90,000 241,274 151,274 Contributions and donations - - 3,050 3,050 Total revenues 15,224,395 15,795,725 19,313,396 3,517,671 EXPENDITURES Current: General government 4,082,778 4,082,778 5,040,143 (957,365) Culture and recreation 1,382,826 1,382,826 1,345,005 37,821 Community services 1,241,433 1,276,393 1,145,841 130,552 Public safety 7,579,707 7,623,277 7,432,334 190,943 Public works 864,651 864,651 777,565 87,086 Debt service Principal 44,001 44,001 44,001 - I nterest and fiscal charges 13,358 13,358 13,358 - Capital outlay - 22,500 1,666,327 (1,643,827) Total expenditures 15,208,754 15,309,784 17,464,574 (2,154,790) Excess (deficiency) of revenues over (under) expenditures 15,641 485,941 1,848,822 1,362,881 OTHER FINANCING SOURCES (USES) Transfers out (400,000) (900,000) - 900,000 Total other financing sources (uses (400,000) (900,000) - 900,000 Net change in fund balance (384,359) (414,059) 1,848,822 2,262,881 Beginning fund balance 6,572,245 6,572,245 6,572,245 - ENDING FUND BALANCE 6,187,886$ 6,158,186$ 8,421,067$ 2,262,881$ Notes to Schedule 1.Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Schedule of Changes in the Net Pension Liability and Related Ratios – TMRS Last Eight Measurement Periods 74 2021 2020 2019 2018 2017 2016 2015 2014 TOTAL PENSION LIABILITY Service cost 1,689,215$ 1,282,488$ 1,008,055$ 860,365$ 698,771$ 608,067$ 527,867$ 429,268$ Interest 789,622 665,239 546,834 464,692 398,225 343,924 309,015 277,884 Changes of benefit terms - - - - - - - - Differences between expected and actual experience 301,846 31,578 294,521 13,331 (9,109) (60,518) (110,141) (173,824) Change of assumptions - - 47,825 - - - 19,349 - Benefit payments, including refunds of employee contributions (305,245) (374,666) (185,961) (204,657) (163,326) (101,394) (109,637) (166,160) Net change in total pension liability 2,475,438 1,604,639 1,711,274 1,133,731 924,561 790,079 636,453 367,168 Total pension liability - beginning 11,006,117 9,401,478 7,690,204 6,556,473 5,631,912 4,841,833 4,205,380 3,838,212 TOTAL PENSION LIABILITY - ENDING (a)13,481,555$ 11,006,117$ 9,401,478$ 7,690,204$ 6,556,473$ 5,631,912$ 4,841,833$ 4,205,380$ PLAN FIDUCIARY NET POSITION Contributions - employer 1,240,283$ 927,155$ 747,632$ 618,080$ 516,066$ 442,230$ 386,733$ 270,279$ Contributions - employee 616,181 460,616 356,743 298,589 249,306 217,388 194,478 170,293 Net investment income (loss)1,300,777 631,955 991,697 (175,951) 641,130 257,535 4,915 165,488 Benefit payments, including refunds of employee contributions (305,245) (374,666) (185,961) (204,657) (163,326) (101,394) (109,637) (166,160) Administrative expense (5,991) (4,073) (5,580) (3,389) (3,315) (2,902) (2,992) (1,727) Other 41 (158) (168) (176) (169) (156) (148) (142) Net change in plan fiduciary net position 2,846,046 1,640,829 1,904,363 532,496 1,239,692 812,701 473,349 438,031 Plan fiduciary net position - beginning 9,932,397 8,291,568 6,387,205 5,854,709 4,615,017 3,802,316 3,328,967 2,890,936 PLAN FIDUCIARY NET POSITION - ENDING (b)12,778,443$ 9,932,397$ 8,291,568$ 6,387,205$ 5,854,709$ 4,615,017$ 3,802,316$ 3,328,967$ NET PENSION LIABILITY - ENDING (a)-(b)703,112$ 1,073,720$ 1,109,910$ 1,302,999$ 701,764$ 1,016,895$ 1,039,517$ 876,413$ Plan fiduciary net position as a percentage of total pension liability 95% 90% 88% 83% 89% 82% 79% 79% Covered payroll 8,802,581$ 6,580,234$ 5,096,334$ 4,265,561$ 3,561,515$ 1,194,348$ 2,778,260$ 2,432,756$ Net pension liability as a percentage of covered payroll 8% 16% 22% 31% 20% 85% 37% 36% Notes to Schedule 1. This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, only available information is shown. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Schedule of Employer Contributions to Pension Plan - TMRS Last Eight Years 75 2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution 1,434,265$ 1,094,001$ 906,255$ 701,932$ 592,188$ 490,248$ 444,631$ 353,170$ Contributions in relation to the actuarially determined contribution 1,434,265 1,094,001 906,255 701,932 592,188 490,248 444,631 353,170 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ Covered payroll 10,388,515$ 7,764,378$ 6,373,692$ 4,798,511$ 4,086,822$ 3,396,686$ 3,140,567$ 2,881,090$ Contributions as a percentage of covered payroll 13.81% 14.09% 14.22% 14.63% 14.49% 14.43% 14.16% 12.26% Notes to Schedule 1. This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, only available information is shown. 2. GASB 68, paragraph 81.2.b requires that the data in this schedule be presented as of the City's fiscal year as opposed to the time period covered by the measurement date. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Schedule of Changes in Total OPEB Liability and Related Ratios – TMRS Last Five Measurement Periods 76 2021 2020 2019 2018 2017 TOTAL OPEB LIABILITY Service cost 24,647$ 16,451$ 9,173$ 8,958$ 6,767$ Interest (on the Total OPEB Liability)3,019 2,584 2,306 1,996 1,716 Change of benefit terms - - - - - Differences between expected and actual experience (10,814) 11,180 (964) (3,622) - Changes in assumptions or other imputs 6,365 23,878 18,247 (5,341) 5,334 Benefit payments (1,761) (658) (510) - - Net change in total OPEB liability 21,456 53,435 28,252 1,991 13,817 Total OPEB liability - beginning 139,516 86,081 57,829 55,838 42,021 TOTAL OPEB LIABILITY - ENDING (a)160,972$ 139,516$ 86,081$ 57,829$ 55,838$ Covered-employee payroll 8,802,581$ 6,580,234$ 5,096,334$ 4,265,563$ 3,561,515$ Total OPEB liability as a percentage of covered-employee payroll 1.83%2.12%1.69%1.36%1.57% Notes to Schedule 1. This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not reported in accordance with the standards of GASB 74/75 and should not be shown here. Therefore, only years for which the new GASB statements have been implemented have been shown and ultimately ten years will be presented. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Schedule of OPEB Contributions - TMRS Last Five Fiscal Years 77 2022 2021 2020 2019 2018 Actuarially determined contribution 2,078$ 7,636$ 8,286$ 6,238$ 4,496$ Contributions in relation to the actuarially determined contribution 2,078 7,636 8,286 6,238 4,496 Contribution deficiency (excess)-$ -$ -$ -$ -$ Covered-emplyee payroll 10,388,515 7,764,378 6,373,692 4,798,511 4,086,822 Contributions as a percentage of covered-employee payroll 0.02% 0.10% 0.13% 0.13% 0.11% Notes to Schedule 1. This schedule is presented to illustrate the requirement to show for 10 years. However, recalculations of prior years are not reported in accordance with the standards of GASB 74/75 and should not be shown here. Therefore, only years for which the new GASB statements have been implemented will be shown and ultimately ten years will be presented. 2. GASB 75 paragraph 57 requires that the data in this schedule be presented as of the City's fiscal year as opposed to the time period covered by the measurement date. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 78 Combining and Individual Fund Financial Statements and Schedule DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 79 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 80 Nonmajor Governmental Funds Special Revenue Funds Roadway Impact Fee Service Area 1 Accounts for revenue and expenditures from developer impact fees for future strategic roadway improvements for service area 1. Roadway Impact Fee Service Area 2 Accounts for revenue and expenditures from developer impact fees for future strategic roadway improvements for service area 2. State Police Seizure Fund Accounts for state revenues generated from property seized in connection with illegal activity once the property is forfeited after prosecution that can only be used in accordance with applicable state laws. Federal Police Seizure Fund Accounts for federal revenues generated from property seized in connection with illegal activity once the property is forfeited after prosecution that can only be used in accordance with applicable federal laws. Public Facility Corporation Fund Created for the purpose of assisting the City in financing, refinancing, or providing public facilities. The APFC provides for the acquisition, construction, rehabilitation, renovation, repair, and furnishings of public facilities in the City. Fire Department Capital Improvement Fund Accounts for voluntary fees negotiated with developers in support of the Anna Fire Department for fire capital projects. Tax Increment Reinvestment Zone Number 2 (TIRZ #2) Fund Accounts for financing resources to pay for infrastructure costs to facilitate the mixed-use development project. Other Special Revenue Fund Accounts for all other miscellaneous restricted funds not described in other special revenue funds. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Combining Balance Sheet Nonmajor Governmental Funds September 30, 20222 81 ASSETS Cash and cash equivalents 3,353,936$ 1,995,328$ 9,673$ 3,039$ 880,053$ Receivables, net - - - - - Restricted cash - - - - - Total assets 3,353,936$ 1,995,328$ 9,673$ 3,039$ 880,053$ LIABILITIES Accounts payable and other liabilities -$ -$ -$ -$ -$ Retainage payable - - - - - Accrued liabilities - - - - Accrued salaries - - - - - Unearned revenue - - - - 503,003 Due to other funds - - - - - Total liabilities - - - - 503,003 FUND BALANCES Restricted for: Public safety - - 9,673 3,039 - Capital projects 3,353,936 1,995,328 - - 377,050 Unassigned - - - - - Total fund balances 3,353,936 1,995,328 9,673 3,039 377,050 TOTAL LIABILITIES AND FUND BALANCES 3,353,936$ 1,995,328$ 9,673$ 3,039$ 880,053$ Roadway Impact Fee SVC Area 1 Roadway Impact Fee SVC Area 2 State Police Seizure Fund Public Facility Corporation Federal Police Seizure Fund DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 82 TIRZ #2 268,538$ -$ 145,249$ 6,655,816$ - - - - 54,724 - 54,724 268,538$ 54,724$ 145,249$ 6,710,540$ -$ 46$ -$ 46$ - - - - - - - - - - - - - - - 503,003 - - - - - 46 - 503,049 268,538 - 145,249 426,499 - 54,678 - 5,780,992 - -- - 268,538 54,678 145,249 6,207,491 268,538$ 54,724$ 145,249$ 6,710,540$ Total Nonmajor Governmental Funds Other Special Revenue Fund Fire Dept. Capital Impr. Fund DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 20222 83 REVENUES Property taxes -$ -$ -$ -$ -$ Charges for services 2,457,453 695,840 - - 383,397 Fines and forfeitures - - - - - Investment income 16,865 10,942 57 18 1,342 Other revenue - - 146 - - Total revenues 2,474,318 706,782 203 18 384,739 EXPENDITURES Current: General government - - - - - Culture and recreation - - - - - Community Services - - - - 3,600 Public safety - - - - - Capital outlay - - - - - Total expenditures - - - - 3,600 Excess (deficiency) of revenues over (under) expenditures 2,474,318 706,782 203 18 381,139 OTHER FINANCING SOURCES (USES) Transfers in - - - 3,021 - Transfers out (81,514) (10,893) (3,021) - - Proceeds from sale of capital assets - - - - - Total other financing (uses)(81,514) (10,893) (3,021) 3,021 - Net change in fund balances 2,392,804 695,889 (2,818) 3,039 381,139 Fund balances, beginning of year 961,132 1,299,439 12,491 - - FUND BALANCES, END OF YEAR 3,353,936$ 1,995,328$ 9,673$ 3,039$ 381,139$ Roadway Impact Fee SVC Area 1 Roadway Impact Fee SVC Area 2 State Police Seizure Fund Public Facility Corporation Federal Police Seizure Fund DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 84 TIRZ #2 -$ 46,340$ -$ 46,340$ 120,900 - - 3,657,590 - - 8,654 8,654 1,395 - 1,150 31,769 120 - 36,005 36,271 122,415 46,340 45,809 3,780,624 - - 3,172 3,172 - 226 - 226 - - - 3,600 28,213 - - 28,213 11,998 - 62,964 74,962 40,211 226 66,136 110,173 82,204 46,114 (20,327) 3,670,451 - - - 3,021 - - - (95,428) - - - - - - - (92,407) 82,204 46,114 (20,327) 3,578,044 186,334 8,564 165,576 2,633,536 268,538$ 54,678$ 145,249$ 6,211,580$ Other Special Revenue Fund Fire Dept. Capital Impr. Fund Total Nonmajor Governmental Funds DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Balance Sheet Community Development Corporation September 30, 20222 85 Anna Community Development Corporation ASSETS Cash and cash equivalents 7,796,303$ Receivables, net 415,588 Restricted cash - TOTAL ASSETS 8,211,891$ LIABILITIES Accounts payable 17,080$ Accrued liabilities 3,944 Accrued salaries 12,547 Total liabilities 33,571 FUND BALANCES Restricted for: Community Development 8,178,320 Total fund balances 8,178,320 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 8,211,891$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position Community Development Corporation September 30, 20222 86 FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 8,178,320$ Amounts reported for governmental activities in the statement of net position are different because: The following deferred outflows of resources and deferred inflows of resources are not reported in governmental funds: Deferred outflows of resources - OPEB 1,413 Deferred outflows of resources - pension 43,878 Deferred inflows of resources - OPEB (439) Deferred inflows of resources - pension (19,625) Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the fund financial statements. Long-term liabilities consist of: Sales tax revenue bonds (2,485,000) Compensated absences (22,980) Accrued interest (11,939) Total OPEB liability (4,717) Net pension liability (20,602) NET POSITION OF GOVERNMENTAL ACTIVITIES 5,658,309$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Revenues, Expenditures, and Changes in Fund Balances Community Development Corporation For the Year Ended September 30, 20222 87 Anna Community Development Corporation REVENUES Sales taxes 2,308,746$ Contributions 156 Investment income 14,953 Total rev enues 2,323,855 EXPENDITURES Current: Community and economic development 1,296,229 Debt service: Principal retirement 160,000 Interest and fiscal charges 96,837 Total expenditures 1,553,066 Excess (deficiency) of revenues over (under) expenditures 770,789 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets 5,615,652 Total other financing (uses)5,615,652 Net change in fund balances 6,386,441 Fund balance, beginning of year 1,791,879 Fund balance, end of year 8,178,320$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Community Development Corporation For the Year Ended September 30, 20222 88 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 6,386,441$ Amounts reported for governmental activities in the statement of activities are different because: Net effect of proceeds from the sale of capital assets and gain on disposal (2,757,904) Current year long-term debt principal payments on tax notes payable are expenditures in the fund financial statements but are shown as reductions in long-term debt in the government-wide financial statements.160,000 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Decrease in accrued interest 657 Increase in accrued compensated absences (9,022) Increase in net pension liability and related deferred inflows and outflows 5,315 Increase in total OPEB liability and related deferred inflows and outflows (2,282) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 3,783,205$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Balance Sheet Economic Development Corporation September 30, 20222 89 Anna Economic Development Corporation ASSETS Cash and cash equivalents 982,908$ Investments 5,000,000 Receivables, net 16,580 TOTAL ASSETS 5,999,488$ LIABILITIES Accounts payable 7,302$ Total liabilities 7,302 FUND BALANCES Restricted for: Economic Development 5,992,186 Total fund balances 5,992,186 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 5,999,488$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Reconciliation of Governmental Fund Balance Sheet to the Statement of Net Position Economic Development Corporation September 30, 20222 90 FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 5,992,186$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.227,769 Unavailable revenues are recognized as revenue in the statement of net position.- NET POSITION OF GOVERNMENTAL ACTIVITIES 6,219,955$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Revenues, Expenditures, and Changes in Fund Balance Economic Development Corporation For the Year Ended September 30, 20222 91 Anna Economic Development Corporation REVENUES Charges for services 8,166$ Investment income 25,620 Total rev enues 33,786 EXPENDITURES Current: Community and economic development 65,479 Total expenditures 65,479 Excess of revenues over expenditures (31,693) OTHER FINANCING SOURCES (USES) Proceeds from the sale of capital assets 5,615,652 Total other financing sources (uses)5,615,652 Net change in fund balances 5,583,959 Fund balance, beginning of year 408,227 Fund balance, end of year 5,992,186$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of the Governmental Fund to the Statement of Activities Economic Development Corporation For the Year Ended September 30, 20222 92 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 5,583,959$ Amounts reported for governmental activities in the statement of activities are different because: Current year capital outlays are expenditures in the fund financial statements, but these are shown as an increase in capital assets in the government-wide financial statements. The effect of removing the current year capital outlays is to increase net position. Net effect of proceeds from the sale of capital assets and gain on disposal (50,000) Depreciation is not recognized as an expense in governmental funds since it does not require the use of current financial resources (19,850) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 5,514,109$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Balance Sheet Economic Development Corporation September 30, 20222 93 Anna Housing Finance Corporation ASSETS Cash and cash equivalents 634,607$ Receivables, net - Capital assets: Non-depreciable 1,443,404 TOTAL ASSETS 2,078,011$ LIABILITIES Accounts payable 60$ Unearned revenue 93,750 Total liabilities 93,810 DEFERRED INFLOWS OF RESOURCES Deferred inflows - land lease 1,433,684 Total deferred inflows of resources 1,433,684 FUND BALANCES Restricted for: Economic Development 550,517 Total fund balances 550,517 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 2,078,011$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Revenues, Expenditures, and Changes in Fund Balance Housing Finance Corporation For the Year Ended September 30, 20222 94 Anna Housing Finance Corporation REVENUES Charges for services 565,970$ Investment income 2,252 Total rev enues 568,222 EXPENDITURES Current: Community and economic development 17,705 Total expenditures 17,705 Excess of revenues over expenditures 550,517 Net change in fund balances 550,517 Fund balance, beginning of year - Fund balance, end of year 550,517$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Schedule of Revenues, Expenditures, and Changes In Fund Balances – Budget and Actual Community Development Corporation For the Year Ended September 30, 2022 95 Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Sales and use tax 1,630,000$ 1,630,000$ 2,308,746$ 678,746$ Contributions - - 156 156 I nvestment income 5,000 5,000 14,953 9,953 Total revenues 1,635,000 1,635,000 2,323,855 688,855 EXPENDITURES Current: Community and economic development 1,470,275 1,470,275 1,296,229 174,046 Debt Service: Principal retirement 160,000 160,000 160,000 - I nterest and fiscal charges 167,463 167,463 96,837 70,626 Total expenditures 1,797,738 1,797,738 1,553,066 244,672 Excess (deficiency) of revenues over (under) expenditures (162,738) (162,738) 770,789 933,527 Other Financing Sources (Uses) Proceeds on the sale of capital assets - - 5,615,652 5,615,652 Total other financing sources (uses)- - 5,615,652 5,615,652 Net change in fund balance (162,738) (162,738) 6,386,441 6,549,179 Fund balances, beginning of year 1,791,879 1,791,879 1,791,879 - FUND BALANCES, END OF YEAR 1,629,141$ 1,629,141$ 8,178,320$ 6,549,179$ Notes to Required Supplementary Information 1.Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Revenues, Expenditures, and Changes In Fund Balances – Budget and Actual Economic Development Corporation For the Year Ended September 30, 2022 96 Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Char ges for services - rentals 10,000$ 10,000$ 8,166$ (1,834)$ Investment income 2,000 2,000 25,620 23,620 Other income 1,500 1,500 - (1,500) To tal rev enues 13,500 13,500 33,786 20,286 EXPENDITURES Current: Community and economic development 85,800 114,155 65,479 48,676 Total expenditures 85,800 114,155 65,479 48,676 Excess (deficiency) of revenues over (under) expenditures (72,300) (100,655) (31,693) 68,962 Other Financing Sources (Uses) Proceeds on the sale of capital assets - - 5,615,652 5,615,652 Total other financing sources (uses)- - 5,615,652 5,615,652 Net change in fund balance (72,300) (100,655) 5,583,959 5,684,614 Fund balances, be ginning of year 408,227 408,227 408,227 - FUND BALANCES, END OF YEAR 335,927$ 307,572$ 5,992,186$ 5,684,614$ Notes to Required Supplementary Information 1.Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Revenues, Expenditures, and Changes In Fund Balances – Budget and Actual Debt Service Fund For the Year Ended September 30, 2022 97 Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Property taxes 2,107,113$ 2,107,113$ 2,079,794$ (27,319)$ Investment income 2,500 2,500 4,344 1,844 Total revenues 2,109,613 2,109,613 2,084,138 (25,475) EXPENDITURES Principal retirement 520,000 520,000 506,000 14,000 Interest and fiscal charges 1,552,613 1,552,613 1,565,949 (13,336) Total expenditures 2,072,613 2,072,613 2,071,949 664 Excess (deficiency) of revenues over (under) expenditures 37,000 37,000 12,189 (24,811) Net change in fund balances 37,000 37,000 12,189 (24,811) Fund balances, beginning of year 70,105 70,105 70,105 - FUND BALANCES, END OF YEAR 107,105$ 107,105$ 82,294$ (24,811)$ DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Statement of Revenues, Expenditures, and Changes In Fund Balances – Budget and Actual Grant Fund For the Year Ended September 30, 2022 98 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Investment income -$ -$ 10,949$ 10,949$ Intergovernmental 9,375 9,375 25,273 15,898 Total revenues 9,375 9,375 36,222 26,847 EXPENDITURES Current: General government - - - - Public safety 9,875 9,875 23,372 (13,497) Capital outlay - - - - Total expenditures 9,875 9,875 23,372 (13,497) Excess (deficiency) of revenues over (under ) expenditures (500) (500) 12,850 13,350 Net change in fund balance (500) (500) 12,850 13,350 Beginning fund balance 449 449 449 - ENDING FUND BALANCE (51)$ (51)$ 13,299$ 13,350$ Notes to Schedule 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 99 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 100 Statistical Section DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 101 DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed 102 Statistical Section (Unaudited) This part of the City's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and Required Supplementary Information says about the City's overall financial health. Tables Financial Trends 1, 2, 3 & 4 These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity 5, 6, 7 & 8 These schedules contain information to help the reader assess the City’s most significant local revenue source, property tax. Debt Capacity 9, 10, 11 & 12 These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Demographic and Economic Information 13 & 14 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information 15, 16 & 17 These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 1 Net Position by Component Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) 103 2022202120202019201820172016201520142013GOVERNMENTAL ACTIVITIESNet investment in capital assets81,252,418$ 65,539,991$ 49,605,921$ 33,525,898$ 29,892,142$ 20,398,968$ 13,466,866$ 13,288,789$ 12,463,939$ 11,698,639$ Restricted19,668,553 18,360,546 7,417,666 10,681,098 469,607 1,489,057 1,550,067 1,781,301 1,265,399 983,464 Unrestricted9,727,825 13,904,713 9,023,802 6,211,056 5,793,809 3,844,285 3,052,331 2,073,139 2,272,911 2,427,826 TOTAL GOVERNMENTAL ACTIVITIES NET POSITION110,648,796$ 97,805,250$ 66,047,389$ 50,418,052$ 36,155,558$ 25,732,310$ 18,069,264$ 17,143,229$ 16,002,249$ 15,109,929$ BUSINESS-TYPE ACTIVITIESNet investment in capital assets50,471,921$ 41,835,760$ 35,210,562$ 28,632,597$ 25,064,065$ 17,356,378$ 12,878,858$ 9,150,846$ 7,161,432$ 9,228,796$ Restricted36,531,071 23,680,099 13,578,283 9,638,637 6,761,991 6,407,402 7,349,941 10,029,856 11,632,410 8,358,837 Unrestricted818,839 5,757,394 4,764,739 3,364,464 2,855,207 2,930,232 762,189 595,738 642,688 1,470,698 TOTAL BUSINESS-TYPE ACTIVITIES NET POSITION87,821,831$ 71,273,253$ 53,553,584$ 41,635,698$ 34,681,263$ 26,694,012$ 20,990,988$ 19,776,440$ 19,436,530$ 19,058,331$ PRIMARY GOVERNMENTNet investment in capital assets131,724,339$ 107,375,751$ 84,816,483$ 62,158,495$ 54,956,207$ 37,755,346$ 26,345,724$ 22,439,635$ 19,625,371$ 20,927,435$ Restricted56,199,624 42,040,645 20,995,949 20,319,735 7,231,598 7,896,459 8,900,008 11,811,157 12,897,809 9,342,301 Unrestricted10,546,664 19,662,107 13,788,541 9,575,520 8,649,016 6,774,517 3,814,520 2,668,877 2,915,599 3,898,524 TOTAL PRIMARY GOVERNMENT NET POSITION198,470,627$ 169,078,503$ 119,600,973$ 92,053,750$ 70,836,821$ 52,426,322$ 39,060,252$ 36,919,669$ 35,438,779$ 34,168,260$ Source: Annual Comprehensive Financial ReportDRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 2 Changes in Net Position Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) 104 2022202120202019201820172016201520142013EXPENSESGovernmental activities:General government5,226,176$ 3,538,746$ 2,669,302$ 1,954,083$ 1,758,159$ 1,405,085$ 1,393,256$ 1,058,719$ 963,243$ 885,833$ Culture and recreation2,550,873 2,053,933 1,172,862 877,455 799,378 665,430 584,676 573,249 432,133 303,607 Community services1,211,897 1,198,530 1,280,415 1,289,798 810,369 904,227 690,842 558,541 619,465 560,983 Public safety9,915,219 6,221,473 5,074,735 3,972,445 3,730,871 3,062,333 2,727,997 2,511,931 2,272,660 2,278,515 Public works4,739,386 4,169,132 3,176,361 4,113,592 2,013,096 1,502,775 1,261,514 1,053,123 954,932 940,941 Interest on long-term debt1,483,176 2,212,316 1,258,204 2,420,375 670,789 132,433 174,446 316,079 258,663 270,057 Total governmental activities expenses25,126,727 19,394,130 14,631,879 14,627,748 9,782,662 7,672,283 6,832,731 6,071,642 5,501,096 5,239,936 Business-type activities:Water and sewer16,353,389 13,462,054 11,152,513 11,664,343 8,893,526 7,443,593 7,371,352 6,487,099 5,453,831 5,307,272 Total business-type activities expenses16,353,389 13,462,054 11,152,513 11,664,343 8,893,526 7,443,593 7,371,352 6,487,099 5,453,831 5,307,272 TOTAL PRIMARY GOVERNMENT EXPENSES41,480,116$ 32,856,184$ 25,784,392$ 26,292,091$ 18,676,188$ 15,115,876$ 14,204,083$ 12,558,741$ 10,954,927$ 10,547,208$ PROGRAM REVENUESGovernmental activities:Charges for services:General government6,708,288$ 4,281,147$ 304,993$ 236,673$ 90,890$ 136,465$ 48,181$ 30,000$ 30,000$ 20,839$ Culture and recreation2,835,400 1,689,000 1,404,600 900,150 315,933 553,511 117,990 63,265 71,905 63,421 Community services674,627 182,859 2,644,933 1,314,178 873,397 1,173,516 236,694 748,212 772,501 839,349 Public safety14,473 5,353 21,648 16,995 94,244 49,950 768,988 218,973 183,533 194,379 Public works3,274,193 1,641,273 895,585 666,873 641,119 382,390 129,914 - - - Operating grants and contributions75,963 527,376 616,207 182,943 4,225 351,482 333,948 15,053 11,525 10,531 Capital grants and contributions8,977,439 30,267,739 13,181,867 15,179,885 9,338,204 6,489,958 - 1,417,514 783,182 2,665,841 Total governmental activities program revenues22,560,383 38,594,747 19,069,833 18,497,697 11,358,012 9,137,272 1,635,715 2,493,017 1,852,646 3,794,360 Business-type activities:Charges for services:Water and sewer28,539,413 23,356,512 15,852,302 14,947,376 11,416,192 9,805,662 7,523,193 6,194,327 5,980,176 5,573,401 Capital grants and contributions4,125,890 7,732,066 6,716,462 3,346,660 5,348,481 3,298,737 776,416 755,508 486,155 484,704 Total business-type activities program revenues32,665,303 31,088,578 22,568,764 18,294,036 16,764,673 13,104,399 8,299,609 6,949,835 6,466,331 6,058,105 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES55,225,686$ 69,683,325$ 41,638,597$ 36,791,733$ 28,122,685$ 22,241,671$ 9,935,324$ 9,442,852$ 8,318,977$ 9,852,465$ Source: Annual Comprehensive Financial ReportDRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 2 Changes in Net Position – Continued Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) 105 2022202120202019201820172016201520142013NET (EXPENSE) REVENUEGovernmental activities(2,566,344)$ 19,200,617$ 4,437,954$ 3,869,949$ 1,575,350$ 1,464,989$ (5,197,016)$ (3,578,625)$ (3,648,450)$ (1,445,576)$ Business-type activities16,311,914 17,626,524 11,416,251 6,629,693 7,871,147 5,660,806 928,257 462,736 1,012,500 750,833 TOTAL PRIMARY GOVERNMENT NET EXPENSE13,745,570$ 36,827,141$ 15,854,205$ 10,499,642$ 9,446,497$ 7,125,795$ (4,268,759)$ (3,115,889)$ (2,635,950)$ (694,743)$ GENERAL REVENUES AND OTHER CHANGES IN NET POSITIONGovernmental activities:Taxes:Property taxes10,239,322$ 8,714,860$ 7,929,530$ 6,728,848$ 5,579,490$ 4,619,461$ 3,973,028$ 3,322,054$ 2,807,140$ 2,483,857$ Sales taxes3,847,911 2,929,876 2,271,318 1,835,421 1,502,079 1,203,749 1,542,309 1,473,097 1,350,896 1,149,297 Franchise taxes888,723 726,006 657,331 612,332 573,517 505,571 447,498 450,799 416,175 353,482 Investment earnings244,855 123,643 568,920 1,044,444 327,200 26,199 31,816 23,685 22,295 39,256 Gain on sale of capital assets- - 20,111 135,910 276,970 - - 39,160 11,960 - Miscellaneous189,079 62,859 70,560 84,132 314,750 241,719 166,773 316,688 140,596 39,399 Intergovernmental- - - - 142,273 - - - - - Transfers- - (326,387) (48,542) 159,500 - 108,556 (649) 279,707 (1,489,156) Total governmental activities 15,409,890 12,557,244 11,191,383 10,392,545 8,875,779 6,596,699 6,269,980 5,624,834 5,028,769 2,576,135 Business-type activities:Investment earnings236,664 93,145 175,248 276,200 136,261 63,607 69,608 77,064 73,451 34,636 Miscellaneous- - - - 148,148 69,610 29,193 - - 156,127 Transfers- - 326,387 48,542 (159,500) - (108,556) 649 (279,707) 1,489,156 Total business-type activities236,664 93,145 501,635 324,742 124,909 133,217 (9,755) 77,713 (206,256) 1,679,919 TOTAL PRIMARY GOVERNMENT15,646,554$ 12,650,389$ 11,693,018$ 10,717,287$ 9,000,688$ 6,729,916$ 6,260,225$ 5,702,547$ 4,822,513$ 4,256,054$ CHANGE IN NET POSITIONGovernmental activities12,843,546$ 31,757,861$ 15,629,337$ 14,262,494$ 10,451,129$ 8,061,688$ 1,072,964$ 2,046,209$ 1,380,319$ 1,130,559$ Business-type activities16,548,578 17,719,669 11,917,886 6,954,435 7,996,056 5,794,023 918,502 540,449 806,244 2,430,752 TOTAL PRIMARY GOVERNMENT29,392,124$ 49,477,530$ 27,547,223$ 21,216,929$ 18,447,185$ 13,855,711$ 1,991,466$ 2,586,658$ 2,186,563$ 3,561,311$ Source: Annual Comprehensive Financial ReportDRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 3 Fund Balances of Governmental Funds Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) 106 2022202120202019201820172016201520142013GENERAL FUNDNonspendable-$ 12,961$ 10,630$ 7,242$ -$ -$ -$ -$ -$ -$ Restricted13,434 13,354 13,279 13,133 12,891 12,768 19,580 523,192 394,002 232,160 Committed- - - 215,932 215,932 740,768 185,788 157,476 161,510 558,127 Assigned- - - - - - - - 144,175 - Unassigned9,949,599 6,545,930 6,421,607 5,705,117 4,484,943 3,741,504 3,114,627 2,617,940 2,351,029 1,830,457 TOTAL GENERAL FUND9,963,033$ 6,572,245$ 6,445,516$ 5,941,424$ 4,713,766$ 4,495,040$ 3,319,995$ 3,298,608$ 3,050,716$ 2,620,744$ ALL OTHER GOVERNMENTAL FUNDSNonspendable-$ 559,947$ 3,000$ 1,000$ -$ -$ -$ -$ 35,642$ 88,353$ Restricted26,015,542 31,756,237 32,669,975 40,214,505 35,295,317 1,476,290 2,284,212 1,100,633 871,397 662,951 Assigned1,103,077 5,537,514 - - - - - - - - Unassigned- - (3,000) (112,518) - (7,694) (574,937) (203,139) (371,273) (87,717) TOTAL ALL OTHER GOVERNMENTAL FUNDS27,118,619$ 37,853,698$ 32,669,975$ 40,102,987$ 35,295,317$ 1,468,596$ 1,709,275$ 897,494$ 535,766$ 663,587$ Source: Annual Comprehensive Financial Report DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 4 Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) 107 2022202120202019201820172016201520142013REVENUESTaxes14,867,757$ 12,363,699$ 10,898,111$ 9,166,995$ 7,592,708$ 6,338,940$ 5,965,724$ 5,241,413$ 4,571,535$ 3,999,758$ Licenses, permits, and fees5,752,179 4,159,517 2,683,906 1,331,173 824,186 1,115,294 711,462 748,212 772,501 839,349 Charges for services7,504,874 3,514,109 2,488,443 1,716,265 1,113,856 1,106,620 - 158,491 166,242 139,646 Fines and forfeitures249,928 129,265 97,374 87,431 77,541 73,918 84,360 115,027 100,055 133,018 Intergovernmental72,913 526,766 123,195 93,190 142,273 185,392 287,614 114,200 106,600 1,463,430 Investment earnings244,855 123,643 568,920 1,044,444 327,200 26,199 31,816 23,685 22,295 39,256 Other revenues189,079 10,458,492 1,436,755 166,460 314,750 117,932 1,164,183 126,393 122,579 74,738 Contributions3,050 4,330,711 475 9,823,637 4,225 351,482 135,949 29,085 674,398 Total revenues28,884,635 35,606,202 18,297,179 23,429,595 10,396,739 9,315,777 8,245,159 6,663,370 5,890,892 7,363,593 EXPENDITURESCurrent:General government5,100,329 3,388,774 2,759,964 1,918,254 1,553,102 1,339,668 1,507,324 1,181,679 1,048,004 967,299 Culture and recreation2,032,561 1,677,459 815,030 518,696 473,477 332,249 268,538 246,808 196,502 120,030 Community services1,145,841 1,198,963 1,113,095 1,286,794 809,682 902,552 689,308 896,419 1,001,631 737,119 Public safety7,498,351 5,875,398 4,827,758 3,721,752 3,649,049 2,842,470 2,509,795 2,182,617 1,951,681 1,964,502 Public works784,483 1,239,676 857,730 2,166,360 541,968 463,780 539,049 200,188 170,830 201,294 Debt service:Principal retirement550,001 546,366 537,791 426,851 342,000 328,000 779,842 466,776 415,662 430,877 Interest and fiscal changes1,579,307 1,327,404 1,344,730 2,589,974 71,273 97,376 182,942 200,331 259,080 271,485 Bond issuance costs- 739,177 - - 443,009 - - 38,350 - - Capital outlay18,875,930 22,938,256 12,994,384 5,414,720 1,771,045 565,974 1,094,445 755,535 837,018 2,917,945 Total expenditures37,566,803 38,931,473 25,250,482 18,043,401 9,654,605 6,872,069 7,571,243 6,168,703 5,880,408 7,610,551 Excess of revenues over (under) expenditures(8,682,168) (3,325,271) (6,953,303) 5,386,194 742,134 2,443,708 673,916 494,667 10,484 (246,958) OTHER FINANCING SOURCES (USES)Transfers in295,428 3,316,912 1,979,606 121,637 1,455,713 585,209 298,419 335,134 316,507 1,755,532 Transfers (out)(295,428) (3,316,912) (1,976,401) (170,179) (1,296,213) (585,209) (189,863) (335,783) (36,800) (3,244,688) Sale of capital assets- 61,619 21,178 212,608 700,082 34,974 17,054 65,000 11,960 - Bond Proceeds- 8,460,000 - - 31,795,000 (23,350) - 1,462,000 - - Debt Issuance Cost- (197,353) - - - - - - - - Premium on debt issuance- 834,153 - - 1,601,891 850,000 - - - - Lease issuance1,541,966 - - 485,068 - - - - - - Payments to escrow agent- (522,696) - - (953,160) (820,899) - (1,411,398) - - Total other financing sources (uses)1,541,966 8,635,723 24,383 649,134 33,303,313 40,725 125,610 114,953 291,667 (1,489,156) NET CHANGE IN FUND BALANCE(7,140,202)$ 5,310,452$ (6,928,920)$ 6,035,328$ 34,045,447$ 2,484,433$ 799,526$ 609,620$ 302,151$ (1,736,114)$ DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES10.3%5.6%9.5%23.9%5.2%6.7%14.9%12.3%13.4%15.0%Source: Annual Comprehensive Financial Report DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 5 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) 108 FiscalRealPersonalLess: Tax ExemptTotal TaxableTotal Direct YearPropertyPropertyPropertyAssessed ValueTax Rate2013457,390,078 16,753,543 97,610,313 376,533,308 0.65033 2014514,337,648 21,674,172 105,177,246 430,834,574 0.65033 2015649,209,461 22,743,852 161,376,609 510,576,704 0.64900 2016817,578,552 27,290,010 236,173,968 608,694,594 0.63900 2017941,525,839 32,134,958 247,017,901 726,642,896 0.62900 20181,173,598,307 40,865,863 303,651,595 910,812,575 0.60129 20191,440,753,873 51,949,576 352,310,696 1,140,392,753 0.59129 20201,630,573,659 61,071,756 381,187,399 1,310,458,016 0.59129 20211,799,674,320 62,835,654 383,180,540 1,479,329,434 0.58300 20222,101,621,383 70,991,511 397,019,088 1,775,593,806 0.56950 Source: Collin County Appraisal DistrictEstimated Market Value DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 6 Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Unaudited) 109 AnnaCollin CountyFiscalDebtTotalIndependentCollinCommunityTotalYearOperating Service Direct Rate School DistrictCountyCollege DistrictRate20130.55937 0.09097 0.650332 1.540000 0.240000 0.086299 1.86630 20140.55937 0.09097 0.650332 1.540000 0.237500 0.083643 1.86114 20150.54583 0.10317 0.649000 1.540000 0.235000 0.081960 1.85696 20160.53234 0.10666 0.639000 1.670000 0.225000 0.081960 1.97696 20170.50658 0.12242 0.629000 1.670000 0.208395 0.081222 1.95962 20180.47887 0.12242 0.601288 1.670000 0.192246 0.079810 1.94206 20190.42812 0.16317 0.591288 1.670000 0.180785 0.081222 1.93201 20200.45154 0.13975 0.591288 1.568350 0.174951 0.081222 1.82452 20210.46705 0.11595 0.583000 1.474600 0.172531 0.081222 1.72835 20220.45263 0.11687 0.569500 1.460300 0.168087 0.081222 1.70961 Source: Collin County Central Appraisal DistrictNote: The entire City was located in Collin County and within the Anna Independent School District.City Direct RatesOverlapping Rates DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 7 Principal Property Tax Payers Current and Nine Years Ago (Unaudited) 110 Taxable Percentage ofTaxable Percentage ofAssessedTotal CityAssessedTotal CityTaxpayerValuation Assessed ValuationTaxpayerValue Assessed ValuationWal-Mart Real Estate Business Trust 17,000,156$ 0.96% Brookshire Grocery Company 3,839,224$ 1.02%Bloomfield Homes LP 14,532,761 0.82% PTCAA Texas LP 3,675,844 0.98%DR Horton - Texas LTD 13,568,423 0.76% Anna Eagle Retail LP 3,420,000 0.91%Q Seminole Anna Towne Center LP 10,736,136 0.60% UDF Northpointe II LP 2,757,258 0.73%Oncor Electric Delivery Co. LLC 9,537,465 0.54% Brookshire Grocery Company 2,689,404 0.71%LGI Homes - Texas LLC 8,990,694 0.51% Hwy 75/Anna Property LP 2,400,945 0.64%North Texas Surgery Real Estate LLC 8,400,000 0.47% Windmill Self Storage LP 2,339,414 0.62%Anna Commercial Partners LLC7,951,127 0.45% Nicholas Ross Properties LLC2,192,8130.58%Wal-Mart Stores Texas LLC7,832,630 0.44% Pilot Flying J Travel Center2,144,445 0.57%MM Anna 325 LLC7,761,680 0.44% Love's Country Stores Inc.2,268,848 0.60%Total106,311,072 5.99%27,728,195 7.36%Source: Collin County Tax CollectorNotes: aTaxpayers are assessed on January 1, 2021 (2021 tax year) for the 2022 fiscal year.20132022 bTaxpayers are assessed on January 1, 2012 (2012 tax year) for the 2013 fiscal year. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 8 Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) 111 Taxes LeviedCollectionsFiscalfor thePercentagein SubsequentPercentageYearFiscal YearAmountof Tax LevyYearsAmountof Tax Levy20132,483,972 2,420,674 97.5%58,076 2,478,750 99.8%20142,851,672 2,771,670 97.2%67,311 2,838,981 99.6%20153,373,239 3,290,905 97.6%67,134 3,358,039 99.5%20163,966,064 3,881,905 97.9%68,059 3,949,964 99.6%20174,606,565 4,541,224 98.6%45,590 4,586,814 99.6%20185,495,607 5,348,790 97.3%14,529 5,363,319 97.6%20196,475,495 6,354,521 98.1%106,414 6,460,935 99.8%20207,543,539 7,452,202 98.8%48,673 7,500,875 99.4%20218,450,578 8,580,733 101.5%92,676 8,673,409 102.6%202210,026,841 10,051,645 100.2%- 10,051,645 100.2%Source: Collin County Tax AssessorCollected within theFiscal Year of the LevyTotal Collections to Date DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 9 Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) 112 General Certificates Combination Capital Waterworks & Combination Contract General CapitalTotal Percentage Fiscal Obligation ofTax & Revenue Lease Sewer System Tax & Revenue Revenue Obligation LeasePrimary of PersonalPerYear Bonds Obligation Bonds & Certificates Payable Revenue Bonds Bonds & Certificates BondsBondsPayable Government Income Capita2013 250,000 3,985,000 - 2,513,847 5,000 8,275,000 14,698,750 15,000 9,747 29,752,344 13.30%3,179 2014 230,000 3,755,000 - 2,354,618 - 12,430,000 14,201,250 10,000 - 32,980,868 12.58%3,187 2015 1,615,000 2,525,000 - 2,204,882 - 12,561,000 13,675,000 5,000 - 32,585,882 11.90%2,968 2016 1,563,000 2,270,000 - 1,732,000 - 12,359,000 13,140,000 - - 31,064,000 10.99%2,744 2017 2,145,000 1,045,000 - - - 12,212,619 12,503,750 - 1,340,010 29,246,379 8.63%2,360 2018 2,018,000 32,351,142 876,409 - - 17,195,354 5,892,500 - 1,217,631 59,551,036 16.54%4,350 2019 1,922,000 32,253,211 615,000 429,217 - 16,388,023 5,618,750 - 1,092,805 58,319,006 14.97%3,885 2020 1,922,000 30,820,000 615,000 398,154 - 15,817,000 5,662,500 - 940,007 56,174,661 11.27%3,360 2021 9,753,000 30,620,000 425,000 346,060 - 11,437,000 5,378,750 - 837,379 58,797,189 10.74%3,462 2022 9,494,000 30,425,000 375,000 387,504 - 10,660,000 5,082,500 - 637,399 57,061,403 9.24%2,961 Governmental ActivitiesBusiness-type Activities DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 10 Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited) 113 Percentage ofActualCombinationTaxableFiscal General Obligation Certificates ofTax & RevenueValue¹ ofPerYearBondsObligationBonds & Certificates3TotalPropertyCapita22013250,000 3,985,000 12,561,000 16,796,000 0.0033%1,530 2014230,000 3,755,000 12,359,000 16,344,000 0.0027%1,444 20151,615,000 2,525,000 12,212,619 16,352,619 0.0023%1,320 20161,563,000 2,270,000 18,071,763 21,904,763 0.0024%1,600 20172,145,000 1,045,000 17,003,023 20,193,023 0.0018%1,345 20182,018,000 32,351,142 16,432,000 50,801,142 0.0039%3,038 20191,922,000 32,253,311 11,862,000 46,037,311 0.0031%2,584 20201,922,000 30,820,000 16,432,000 49,174,000 0.0028%2,429 20219,753,000 30,620,000 11,862,000 52,235,000 0.0035%2,932 202212,364,000 30,425,000 11,035,000 53,824,000 0.0030%2,659 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.¹See the Schedule of Assessed and Estimated Actual Value of Taxable Property for property value data.2Population data can be found in the Schedule of Demographic and Economic Statistics.3Bonds are payable from levy and collecton of a direct and continuing ad valorem tax and from a pledge of surplus revenues from water and sewer. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 11 Direct and Overlapping Governmental Activities Debt As of September 30, 2022 (Unaudited) 114 EstimatedEstimated Share ofDebt Percentage OverlappingOutstandingApplicable1DebtGOVERNMENTAL UNITDebt repaid with property taxes:Collin County543,645,000$ 1.23% 6,686,834$ Collin College498,565,000 1.23% 6,132,350 Anna ISD224,477,991 96.49% 216,598,814 229,417,997 Subtotal, overlapping debtCity of Anna53,824,000 TOTAL DIRECT AND OVERLAPPING DEBT283,241,997$ Source: Net bonded debt and percentage of debt provided by Municipal Advisory of TexasNotes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion ofthe outstanding debt of those overlapping by the residents and businesses of Statistical. This process recognizes that, when considering the City'sabilitygovernments that is borne to issue and repay long-teim debt, the entire debt burden borne by the residents and businesses should be taken into account.However, this does not imply that every taxpayer is a resident--and therefore responsible for repaying the debt--of each overlapping government.1For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicablepercentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries anddividing it by each unit's total taxable assessed value. DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 12 Pledged-Revenue Coverage Last Ten Fiscal Years (Unaudited) 115 Less:NetFiscalTotalOperatingAvailableTimesYearRevenuesaExpensesbRevenuePrincipalInterestCoverage20135,764,164 3,161,627 2,602,537 446,279 955,154 1.86 20146,053,627 3,151,655 2,901,972 542,247 1,054,947 1.82 20156,271,391 3,987,255 2,284,136 663,250 1,125,983 1.28 20168,371,878 5,137,343 3,234,535 742,000 1,056,647 1.80 20179,938,880 6,490,261 3,448,619 772,500 1,028,814 1.91 201811,700,601 6,146,505 5,554,096 1,015,628 912,272 2.88 201915,822,376 8,582,049 7,240,327 1,131,810 1,903,394 2.39 202016,236,344 8,243,509 7,992,835 1,162,323 929,562 3.82 202121,201,248 13,091,569 8,109,679 1,203,119 759,885 4.13 202227,975,337 15,440,362 12,534,975 1,028,750 783,309 6.92 Note: aIncludes both operating and non-operating revenues. bIncludes operating expenses minus depreciation. Details regarding the City's outstanding debt can be found in the notes to the financial statements.Debt ServiceWater Revenue BondsDRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 13 Demographic and Economic Statistics Last Ten Fiscal Years (Unaudited) 116 FiscalPersonalPer Capita4SchoolUnemploymentYearPopulation1IncomePersonal IncomeEnrollment3Rate220139,360 223,657,200 23,895 2,579 5.4%201410,350 262,082,700 25,322 2,855 4.4%201510,980 273,808,260 24,937 3,051 3.6%201611,320 282,705,680 24,974 3,214 3.8%201712,390 338,916,060 27,354 3,438 3.8%201813,690 359,992,240 26,296 3,602 3.0%201915,010 389,614,570 25,957 3,808 2.9%202016,721 498,252,358 29,798 3,837 6.9%202117,814 573,953,192 29,656 4,485 5.6%202220,243 617,736,078 30,516 5,172 3.2%Sources:1North Central Texas Council of Governements (NCTCOG)2State Department of Labor and homefacts.com3Anna Independent School District4U. S. Census Bureau American Fact Finder & North Central Texas Council of Governments(NCTCOG)Note:The requirement is for 10 years worth of data. The City will present a full 10 year schedule as theinformation becomes available. Areas where information could not be obtained are listed as N/A.DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 14 Principal Employers Current and Nine Years Ago (Unaudited) 117 Percentage ofPercentage ofNo.Total CityNo.Total CityEmployerEmployees EmploymentEmployerEmployees EmploymentAnna ISD713 41.79% Anna ISDN/AN/AWalmart412 24.15% Pate RehabN/AN/APate Rehab162 9.50% Brookshire's N/AN/ACity of Anna152 8.91% BroncoN/AN/ABrookshire's84 4.92% Hurricane Creek Country ClubN/AN/ABronco Manufacturing33 1.93% City of AnnaN/AN/AHurricane Creek County Club51 2.99% KFC/Taco BellN/AN/ALoves Travel Stop47 2.75% Crow's Country CaféN/AN/AMcDonalds40 2.34% Mudpies and LullabiesN/AN/ATri-County Vet12 0.70% Highland Fire ProtectionN/AN/ATotal1,706 - Source: 1Top ten employers and employee count provided by Anna Econcomic Deveopment Corporation.Note: Data not available for 2013 at the time of this publication. The City will present this information for future years' as theinformation becomes available.20222013DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 15 Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years (Unaudited) 118 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013FUNCTION/PROGRAMGeneral Government andAdministration 23.0 21.0 23.5 23.515.512.5 13.5 13.5 12.5 12.5 Public Safety59.0 51.0 37.0 33.028.024.0 22.0 21.0 18.0 18.0 Public Works11.0 6.0 6.0 6.08.07.0 7.0 4.0 1.0 1.0 Culture and Recreation17.5 17.9 8.4 7.010.04.0 4.0 2.0 3.0 1.0 Water and Sewer27.0 24.0 16.0 16.013.011.0 8.0 10.0 12.0 10.0 Community Development11.0 10.0 9.0 8.04.04.0 3.0 3.0 3.0 2.0 Economic Development3.0 2.5 2.0 2.01.00.5 0.5 0.5 0.5 0.5 TOTAL ALL GOVERNMENT FUNDS151.5 132.4 101.9 95.5 79.5 63.0 58.0 54.0 50.0 45.0 Source: Finance and Human Resouces DepartmentDRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 16 Operating Indicators by Function/Program Last Ten Fiscal Years (Unaudited) 119 2022202120202019201820172016201520142013FUNCTION/PROGRAMGeneral governmentBuilding permits issued-residential1,059 1,125 833 579 342 440 273 216 290 305 Building permits issued-commercial16 12 11 12 11 11 4 1 5 - Building inspections conducted (1)21,294 16,917 5,020 15,416 14,718 16,046 9,474 7,493 12,584 10,566 Public SafetyPolice:Physical arrests428 325 253 357 428 337 311 309 208 197 Accidents305 363 265 323 336 265 261 231 182 155 Traffic violations9,946 4,739 2,824 2,421 3,153 2,404 3,962 4,235 3,491 2,539 Fire:Emergency responses2,284 2,286 1,851 1,783 1,703 1,502 1,234 1,256 1,065 1,070 Fires extinguished120 100 74 81 59 19 79 62 43 41 Inspections158 212 160 186 284 132 115 107 79 77 Highways and streetsStreet resurfacing (miles)8.5 4.2 2.5 2 1.0 0 1 - - - Potholes repaired942 1,947 2,000 1,100 1,250 940 3,900 1,600 - - RecreationReservations issued111 162 376 156 164 92 53 59 17 - Water and SewerNumber of Active Accounts9,274 8,043 7,300 5,979 5,470 5,102 4,935 4,596 4,423 4,166 Average daily consumption (gallons) wells789,054 1,029,423 1,009,523 1,122,943 1,097,062 1,018,025 1,007,258 1,115,682 1,061,013 772,487 Average daily consumption (gallons) NTMWD 1,983,782 2,428,800 1,169,030 1,025,503 679,857 679,857 355,970 - - - Source: City departmentsNote: Some data not available for 10 years at the time of this publication. The City will present thisinformation for future years' as the information becomes available.DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed City of Anna, Texas Table 17 Capital Asset Statistics by Function/Program Last Ten Fiscal Years (Unaudited) 120 2022202120202019201820172016201520142013FUNCTIONPublic SafetyNumber of police stations1111111111Number of patrol units12 12 8 8 8 11 9 9 7 7 Number of fire stations1111111111Streets and GroundsStreets (miles)130.0 130.0 100.0 74686550- - - Streetlights1,200 1,200 1,090 908 800 625 570 - - - Traffic signals6654431- - - RecreationAcreage206.0 206.0 201.0 201 201 197 197 180 177 177 Playgrounds5543222222Baseball/softball diamonds6666667777Water and SewerWater mains (miles)163 828275695555- - - Fire hydrants1,175 925 925 862 804 570 570 - - - Sanitary Sewer (miles)115 757568625050Storage capacity (millions of gallons)3333333- - - WastewaterTreatment capacity9999999- - - Sanitary sewer (miles)115 757568626050- - - Storm sewers (miles)85656560575550- - - Source: City DepartmentsNote: Some data not available for 10 years at the time of this publication. The City will present this information for future years' as the information becomes available.DRAFT FOR DISCUSSION PURPOSES ONLY - Subject to final review and possible revision and should not be relied upon or distributed Item No. 7.f. City Council Agenda Staff Report Meeting Date: 4/25/2023 Staff Contact: Dean Habel AGENDA ITEM: Consider/Discuss/Action on an Ordinance Permitting and Regulating the use of Golf Carts within the City of Anna. (Police Chief Dean Habel) SUMMARY: The proposed ordinance outlines driver, operation, and equipment requirements for golf cart usage within the city. It requires the owner of the golf cart to apply for a one-time, non-transferable, registration through the police department and display an issued set of decals to be in compliance. There is no associated fee in the current draft of the ordinance. FINANCIAL IMPACT: This item has no financial impact. BACKGROUND: Council expressed their desire to have an ordinance brought before them allowing for the operation, registration, and permitting of golf carts within the City of Anna. STRATEGIC CONNECTIONS: This item supports the City of Anna Strategic Plan, specifically advancing the strategic outcome area: Safe. ATTACHMENTS: 1. Golf Cart Ord C03029D20230420C1R City of Anna Ordinance No. _____________ Page 1 CITY OF ANNA, TEXAS ORDINANCE NO. ________________ AN ORDINANCE OF THE CITY OF ANNA, TEXAS, AMENDING THE CODE OF ORDINANCES, CITY OF ANNA, TEXAS BY AMENDING CHAPTER 11 “TRAFFIC AND VEHICLES,” ARTICLE 11.02 BY ADDING A NEW ARTICLE 11.04, “GOLF CARTS”; ALLOWING GOLF CART USE ON CERTAIN PUBLIC STREETS, ESTABLISHING PERMITTING AND SAFETY REQUIREMENTS FOR GOLF CARTS, PROVIDING FOR CERTAIN EXCEPTIONS APPLICABLE TO PUBLIC SAFETY PERSONNEL, PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR A SAVINGS CLAUSE; PROVIDING FOR A PENALTY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the City of Anna, Texas (the “City”) is a home-rule municipality duly incorporated under the laws of the State of Texas; and WHEREAS, Chapter 551 of the Texas Transportation Code allows for the operation of golf carts in certain areas within a municipality’s corporate borders subject to certain conditions; and WHEREAS, the Texas Transportation Code also permits municipalities to allow and to prohibit the operation of golf carts on certain public highways; and WHEREAS, golf carts are not often equipped with many of the traditional safety features that are customarily required or found on traditional passenger vehicles; and WHEREAS, passenger ejection and injuries from operating golf carts in urban settings can be reduced by requiring additional safety equipment and providing rules of operation; and WHEREAS, unlike traditional passenger vehicles, golf cart vehicle identification numbering can be easily removed or altered; and WHEREAS, establishing a golf cart registration and permitting program will help promote the recovery and return of golf carts to their rightful owners in the event of loss or theft; and WHEREAS, the City Council of the City of Anna has determined that the adoption of this ordinance establishing regulations for the operation of golf carts on public streets and related safety, registration and permitting requirements best serves the general welfare, health and safety of the City and its residents and all of the prohibitions contained herein are in the interest of safety. City of Anna Ordinance No. _____________ Page 2 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Findings Incorporated. The findings set forth above are incorporated into the body of this ordinance as if fully set forth herein. Section 2. Amendment to Code. Amendment to Chapter 11 (Traffic and Vehicles) to the Anna City Code of Ordinances by adopting a new Article 11.04, entitled “Golf Carts” to read as follows: “Chapter 11 – Traffic and Vehicles. ARTICLE 11.04. GOLF CARTS. § 11.04.001 Definitions Definitions. The following words, terms, and phrases, when used in this article shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Driver means the person driving and/or having physical control over the golf cart. Driver's License means an authorization issued by a state agency for the operation of a motor vehicle. The term includes: (1) a temporary license or instructional permit; and (2) an occupational license. Golf Cart means a motor vehicle designed by the manufacturer primarily for transporting persons on a golf course as defined by Texas Transportation Code § 551.401. A golf cart does not include a Neighborhood Electrical Vehicle (a vehicle that complies with Federal Motor Vehicle Safety Standard 500 (49 C.F.R 571.500)). Owner means the person holding title to the golf cart. Parking Area means those areas accessible to the public by motor vehicular traffic and which are designated for temporary parking of motor vehicles, usually in places referred to as parking lots. Permit means a certificate/decal of authorization issued to the applicant by the City of Anna Police Department authorizing the operation of the golf cart for which the permit was issued. The decal will display the month and year of expiration. Permit Holder means the person to whom a golf cart permit has been issued. Public Safety Personnel means any employee or officer of a governmental law enforcement agency or the Anna Fire Department. City of Anna Ordinance No. _____________ Page 3 Sidewalk means the portion of a street that is between a curb or lateral line of a roadway and the adjacent property line and intended for pedestrian use. Slow-Moving-Vehicle-Emblem means a triangular emblem that conforms to standards and specifications adopted by the Director of the Texas Department of Transportation under Section 547.104 of the Texas Transportation Code and is displayed in accordance with Section 547.703 of the Texas Transportation Code. Texas Transportation Code means said code as it currently exists or may be amended. Traffic way means any land way open to the public as a matter of right or custom for moving persons or property from one place to another. The traffic way includes all property, both improved and unimproved, between the property or right-of-way lines of a roadway system. Working Days means Monday through Friday, excluding City holidays. § 11.04.002 Golf carts permitted and restricted. A person may operate a golf cart on a public street, parking area and/or traffic way if the person obtains a permit and the following requirements are met: (1)Golf carts may only be operated on a public street if the maximum speed limit on the public street is thirty-five (35) miles per hour or less. Regardless of the posted speed limit, the maximum speed for any golf cart within the City limits is thirty (30) miles per hour. (2)The person has a valid driver's license. (3)The person maintains or is covered by current financial responsibility for the golf cart, as required of other passenger vehicles in Section 601.051 of the Texas Transportation Code. Proof of financial responsibility for the golf cart must be either: (a) vehicle-specific coverage similar to that for other motor vehicles in the State of Texas, or (b) if insured by homeowner’s policy or a general liability policy, the golf cart must be specifically covered by the policy. (4)The person complies with all applicable federal, state, and local laws and ordinances, including but not limited to the Texas Transportation Code. (5)The golf cart has the following equipment, which must continuously remain in good working and operational order: (a) Two (2) headlamps; (b) Two (2) tail lamps; City of Anna Ordinance No. _____________ Page 4 (c) Side reflectors (two (2) front, amber in color and two (2) rear, red in color); (d) Parking brake; (e) Rearview mirror(s), capable of a clear, unobstructed view of at least two hundred feet (200') to the rear; and (f) Slow-moving vehicle emblem. (6)The equipment described herein must meet the Texas and Federal Motor Vehicle Safety Standards, as they exist or may be amended. (7)While the golf cart is in motion, the driver and every passenger in a golf cart is seated in a seat designed to hold passengers. No person may stand or ride in the lap of the driver and/or other passenger of a golf cart while it is moving. § 11.04.003 Additional operational regulations for all golf carts. (a)A golf cart shall not be operated on any sidewalk, pedestrian walkway, jogging path, park trail or any location normally used for pedestrian traffic. (b)All golf carts are entitled to the full use of a lane on an authorized public street, parking areas and traffic ways, and no motor vehicle shall be driven in such a manner as to deprive any golf cart of the full use of a lane. (c)The driver of a golf cart shall not overtake and pass in the same lane occupied by the vehicle being overtaken. (d)No driver shall operate a golf cart between lanes of traffic or between adjacent lines or rows of vehicles. (e)The driver of a golf cart operating the golf cart on an authorized public street may only cross a multi-lane federal, county or state route at an intersection controlled by an official traffic control device which stops traffic from all directions. The driver of a golf cart may cross a multi-lane road, other than a federal, state, or county route, if it is required to cross from one portion of a golf course to another portion of the same golf course. If a golf cart crossing path is provided for transition between one section of a golf course to another section of the same golf course across a multi-lane road, the operator shall cross at and within the golf cart crossing path. (f)The number of occupants in a golf cart shall be limited to the number of persons for whom factory seating is installed and provided on the golf cart. City of Anna Ordinance No. _____________ Page 5 (g)Children must be properly seated while a golf cart is in motion and may not be transported in a reckless or negligent manner. No person younger than six (6) years of age may be transported in a golf cart unless restrained by a safety belt restraint. (h)A golf cart may not be used for the purpose of towing another golf cart, trailer or vehicle of any kind including, but not limited to, a person on roller skates, skateboard, or bicycle. A person employed by a golf course may tow a golf cart(s) for the purpose relocating the cart(s) from one portion of a golf course to another portion of the same golf course. (i)A golf cart shall not be operated at night, during inclement weather or when visibility is impaired by weather, smoke, fog, or other condition, or at any time when there is insufficient light to clearly see persons or vehicles on the roadway at a distance of five hundred feet (500'). § 11.04.004 Liability. (a)Nothing in this Article shall be construed as an assumption of liability by the City of Anna for any injuries (including but not limited to death) to persons, pets or property which may result from the operation of a golf cart by an authorized driver. (b)The Owner of a golf cart is fully liable and accountable for the action of any individual that they provide permission to operate and drive said golf cart, both on personal and/or any authorized public streets, parking areas and traffic ways. This described liability responsibility especially applies to personal injuries (including death) or property damage resulting from golf cart drivers who are under the age of twenty-one (21) years old. § 11.04.005 Permit required. (a)Effective the ______ day of __________________ 20____, no person shall operate, cause to be operated or allow the operation of a golf cart on any authorized public streets, parking areas and traffic ways unless a valid permit has been issued for the golf cart or otherwise allowed by law. A permit is not required for any golf cart owned or leased by a golf course and used exclusively on the golf course or crossing from one section of the course to another section of the course. A permit is not required for a privately-owned golf cart used exclusively on a golf course or crossing from one section of a golf course to another section of the same course. Any golf cart exempted from permitting under this section shall not be operated outside of a golf course, except as permitted herein. (b)Application for a permit authorizing the operation of a golf cart shall be made by a person who owns, leases or otherwise uses a golf cart. Such application shall be made in writing to the City's Police Department on a form designated for that purpose. On such application shall be set forth the following: (1)The name, address, telephone number and state driver's license number of the permit holder; City of Anna Ordinance No. _____________ Page 6 (2)The street address where the golf cart shall be kept, including the particular suite or apartment number, if applicable; (3)The business name used for the premises where the golf cart shall be kept, if applicable; and (4)The year, make, model, color, vehicle identification number or serial number if no vehicle identification number has been issued to the golf cart; and (5)a statement that the golf cart fully complies with the requirements of Section 11.04.002(5) of this article before the issuance of a permit, including without limitation, the requirement. (c)Upon issuance of a permit, the holder will be issued two (2) decals, one of which shall be permanently affixed to the driver’s side front, and one of which shall be permanently affixed to the driver’s side back of the golf cart in such a manner that it is clearly visible from fifty feet (50'). The permit must not be damaged, altered, obstructed, or otherwise made illegible. The permit holder shall apply for a replacement permit for any permit that has been damaged, altered, obstructed or otherwise made illegible. (d)The permit shall only be placed upon the golf cart for which it was issued. (e)A permit issued to a golf cart shall become invalid if the golf cart is altered in a manner that fails to comply with any requirement of this article. (f)Permits/Stickers are valid until there is a change in ownership of the golf cart. (g)The permit holder shall notify the City's Police Department within ten (10) working days if the golf cart transfers ownership or the address of the normal storage location has changed. The information shall be submitted on a form designated by the City's Police Department. (h)Lost or stolen Permit/Stickers are the responsibility of the owner. A police report must be filed in the event of a lost or stolen Permit/Sticker. If no record can be found of a previous application, or the receipt of a Permit/Sticker, the City's Police Department may direct the owner to reapply. (i)Any person who operates a golf cart and fails to receive and/or properly display a permit/sticker will be subject to all applicable state laws, in addition to being in violation of this article. (j)A permit may be revoked at any time by the City's Police Department, for conviction(s) for violating any federal, state or local law related to the operation of a golf cart, including but not limited to this article. City of Anna Ordinance No. _____________ Page 7 § 11.04.006 Public safety personnel exempted. Public Safety Personnel are exempt from this article when using a golf cart in the performance of his/her duties.” Section 3. Severability. Should any section, subsection, sentence, clause or phrase of this ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this ordinance shall remain in full force and effect. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional or invalid. Section 4. Savings/Repealing Clause. All provisions of any ordinance in conflict with this ordinance are hereby repealed to the extent they are in conflict; but such repeal shall not abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal prevent a prosecution from being commenced for any violation if occurring prior to the repeal of the ordinance. Any remaining portions of said ordinances shall remain in full force and effect. Section 5. Penalty. Any person, firm or corporation violating any of the provisions of this ordinance shall be subject to the penalty provisions set forth in the Anna City Code of Ordinances, Section 1.01.009, and each and every day such violation shall continue shall be deemed to constitute a separate offense. Section 6. Caption Publication. The caption of this ordinance shall be published one time in a newspaper having general circulation in the City of Anna following the City Council’s adoption hereof as provided by law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS ON THE 25TH DAY OF APRIL 2023. CITY OF ANNA, TEXAS Nate Pike, Mayor ATTESTED: Carrie Land, City Secretary