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HomeMy WebLinkAboutORD 2012-66 - Cimarron Hills PID LevyingREGARDINGAN ORDINANCE AMENDING ORDINANCE NO 200131 ASSESSMENTS CERTAIN PUBLIC IMPROVEMENTS IN THE CIMARRON HILLS PUBLIC DISTRICTa APPROVING UPDATED SERVICE ♦ .,'' ASSESSMENT ... g,,. THE REVISED ASSESSMENT ROLL;ASSESSMENTS AND FIXING CHARGES AND LIENS AGAINST THE PROPERTY IN THE DISTRICT N ACCORDANCE THEREWIP PROVIDING FOR THE COLLECTION OF THE ASSESSMENT;AN EFFECTIVE WHEREAS, on April 24, 2001, after the required notices and public hearings, the City Council of the City of Georgetown, Texas ("City Council") passed and approved Ordinance No. 2001-31 (the "Original.evy' g Ordinance") approving a Service and Assessment Plan (the "Original SAP") and levying assessments on land within the Cimarron Hills 'Public Improvement 'District (the "District") in accordance with Resolution No. 200808-S and the Public Improvement District Assessment Act, Tex. Local Gov. Code ch. 372 (the "Act"). WHEREAS, the District was originally established to finance the construction and/or acquisition of no more than $17,500,000 in public improvements plus related administrative and financing costs associated with the construction ,of the public improvements necessary to provide water, wastewater, drainage, and streets (the "'Improvements") to a total of 606 residential units, a golf course, and a clubhouse facility (the "Original Project") in the Cimarron Hills Subdivision ("Subdivision through the issuance by the City of District Special Assessment Revenue Bonds ("Bonds") secured by assessment liens placed upon the approximately 813 acres of land within the boundaries of the District that were anticipated to benefit from the Improvements, and the collection of annual assessment payments from the owners of land within the District to be used to finance the Bonds. WHEREAS, since the adoption of the Original Levying Ordinance and the approval of the Original SAP, there have been several changes, including the following: First, the District has not issued any Bonds and the City has confirmed, based on market conditions and other factors, that no Bonds will be issued by the City for the District to reimburse the Developer for construction of the Improvements. However, as of August 15, 2012, the City has levied $3,618,021.88 in annual assessments in accordance with the Act under the Original OrdinanceNo. Description7 AMpndin• PID LtTdingg Ordinance•2001-31 Levying Ordinance, of which $3,614,621.88 has been paid and $3,400.00 in assessment payments remain delinquent. ® Second, the Original Levying Ordinance authorized the assessment of bond financing costs and service costs related to the billing, collection, fund management, auditing, reimbursement, and other administrative costs associated with the assessments, those additional assessments for financing costs and administrative/service costs have never been charged to the landowners in the District. Instead , those charges have been deducted by the City from any assessments remitted to the Developer as reimbursement for Developer's (or Developer's predecessor in interest's) construction of the Improvements. a Third, the build -out of the Subdivision did not occur as originally anticipated and currently only the land in Benefit Area I (as defined in Attachment 1) has been platted. The land in Benefit Area II (as defined in Attachment 1t has not been platted and remains unimproved. i Fourth, the Improvements for the developed portion of the District (Benefit Area I) are complete and final costs can be determined for the completed Improvements. ® Fifth, the Developer:. has proposed several changes. to the Original Project, including the following (which are set forth in more detail in the Amended and Restated Development Agreement and the Consent Agreement dated to be effective contemporaneously with this updated SAP): (i) the addition of 155 acres of land to the Subdivision; (ii) the addition of 294 residential lots to the Subdivision; (iii) the replat of Phase Three, Section Two of the Original Project from 54 lots into 104 lots; and (iv) the creation of a municipal utility district over the 155 acres of newly added land plus the land included in Benefit Area II (as defined in Attackq ent 1), except for Phase Three, Section 'Three and that portion of the golf course located in Benefit Area II (as defined in Attachment 1). ® Sixth, certain additional public improvements remain to be constructed to complete the development within Benefit Area 11. However, only $3,291,952 of the costs for Improvements benefitting Benefit Area II will be financed by the levying of assessments with the District under the Act. The remaining costs related to the improvements necessary to serve Benefit Area II and the additional 155 acres to be added to the Subdivision will be financed through the creation of a new municipal utility district (and not through the District). s Seventh, the City has been advised by several property owners within the District that the Original Levying Ordinance did not clearly state the lump sum amount of the assessment for the purposes of allowing a property owner to pay all of the assessment at one time as required by the Act, and the City now wishes to adopt a new form of assessment roll that makes both the annual amount and total amount of the assessment more clear. WHEREAS, in light of the above-described circumstances, the City desires to update the Original SAP and amend the Original Levying Ordinance to address the changed circumstances. WHEREAS, the proposed Revised Assessment Roll (the "Revised Assessment Roll") has been filed with the City Secretary and made available for public inspection, Ordinance No. 1 Description: Amending Cimarron Hills PID Levying Ordinance No. 2001-31 Date Approved: Page 2 hearingand the City has provided the published and mailed notices of a public consider ' proposed ..•;. Assessment r anthe updatedServices1. Assessment Plan (the "Updated Service and Assessment Plan") required by Secti • • ,. hearingWHEREAS, the City Council held a on October 9, 2012 to consider t a [�iroposed Revised Assessment Roll and the proposed Updated Service and A In Plan, heard and passed on any objections,• ! closed the hearing. Section 1. The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. The City Council hereby finds that this ordinance implements provisions of the 2030 Comprehensive Plan. Section 2. The City Council hereby approves the Updated Service and Assessment Plan attached hereto as Attachment 1 and made a part hereof in all respects and for all purposes with all exhibits, and finds that the assessments as set forth in the Revised Assessment Roll attached as Exhibit E to Attachment I should be made and levied against the respective parcels of property within the District and against the owners thereof. The City Council further finds that the assessments set forth in the Revised Assessment Roll are substantially in proportion to the benefits to the respective parcels of property within each class by means of improvements in the District for which such assessments are levied, and the assessments establish substantial justice and equality and uniformity between the respective owners to the respective properties within each class and between all parties concerned considering the benefits received and burdens imposed. The City Council further finds that in each case the property assessed is specially benefitted by means of the improvements in the District described in the Updated Service and Assessment Plan, and further finds that the apportionment of the cost of the services is in accordance with the law in force in this City and this State and the proceedings of the City heretofore had with reference to the formation of the District and the imposition of the assessments for said improvements are in all respects valid and regular. Section 3. There shall be and is hereby levied and assessed against the parcels of property within the District, and against the real and true owners thereof (whether such owners be correctly named or not), the sums of money set forth on the Revised Ordinance No. IA i® Description: Amending Cimarron Hills PID Levying Ordinance No. 2001-31 Date Approved: i Page 3 Assessment Roll (attached hereto as Exhibit E to Attachment 1) shown opposite the respective description of each parcel of property within the District, and the several amounts assessed against same, and the owners thereof. Section 4. The assessment amounts set forth in the Assessment Roll attached as Exhibit E to Attachment 1 and assessed against each of the said parcels of property and the owners thereof, together with reasonable attorney's fees and costs of collection, if incurred, and any penalties or interest on delinquent amounts, are a first and prior lien against the property assessed; superior to all other liens and claims except liens or claims for state, county, school district, or municipality ad valorem taxes, and a personal liability of and charge against the owners of the property regardless of whether the owners are named. The lien is effective from the date of the original ordinance levying the assessment until the entire assessment is paid and may be enforced by the City Council in the same manner as an ad valorem tax lien against real property may be enforced. The lien runs with the land and that portion of an assessment payment that has not yet become due is not eliminated by foreclosure of an ad valorem tax lien. Foreclosure of accrued installments does not eliminate the outstanding principal balance of the assessment.. Any purchaser of the property in foreclosure takes the property subject to the I assessment lien and any associated obligations. Delinquent installments of the assessment shall incur interest, penalties, and attorney's fees in the same manner as delinquent ad valorem taxes. The owner of assess property may pay at any time all or any part of the assessment, with any penalties or interest that accrued on any delinquent assessment, on any lot or parcel. Section 5. The annual assessment amounts shown on the Revised Assessment Roll attached hereto as Exhibit E to Attachment 1 shall be due and payable by January 31 of each year beginning January 1, 2013 and continuing regularly until the maximum assessment amount per lot or acre (as applicable) related to the total allowable cost of the Improvements is paid in full, plus any accrued interest and penalties on delinquent payments. Assessments may be paid in full and a complete release of lien executed by the City as stated in the Updated Service and Assessment Plan attached hereto as Attachment 1. All assessments and assessment payments shall be made in accordance with the Updated Service and Assessment Plan attached hereto as Attachment 2. Section 6. All assessments levied are a personal liability and charge against the real and true owners of the property described, notwithstanding such owners may not be named or may be named incorrectly on the Revised Assessment Roll attached hereto as Exhibit E to .Attachment 1. Ordinance No. a' V i c) ® 6 to Description: Amending Cimarron Hills PID Levying Ordinance No. 2001-31 Date Approved: QC a 31 Page 4 This Ordinance shall take effective immediately from and after its passage and it is accordingly so ordained. Section 8. All ordinances parts of ordinances or resolutions in conflict herewith are expressly repealed. Section 9. The invalidity of any section or provision of this Ordinance shall not invalidate other sections or provisions thereof. Section 10. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Ordinance was adopted was posted and that such meeting was open to the public as required by law at all times during which this Ordinance and the subject matter hereof were discussed, considered, and formally acted upon all as required by the Texas Open Meetings Act, Chapter 551, Texas Government Code, and the Act. PASSED AND APPROVED on -.• on - s, of PASSEDat a regular meeting of the City Council of the City of Georgetown, Texas. AND APPROVED on • • Reading on day • ..' 0 at regular .. • •.the CouncilCity of .City •. . •. • . •.. .. -. ATTEST: M Bretfle, City Secretary . • . Acting City Attorney By: George Garver, Mayor. Ordinance No. 6101a-W Description: Amending Cimarron Hills PID Levying Ordinance No. 2001-31 Date Approved: () J Page 5 SERVICE 2012 UPDATE Introduction Sections 372.013 — 372.014 of Chapter 372 of the Local Government Code, known as the "Public Improvement District Assessment Act" (the "Act"), require that an ongoing service plan for a public improvement district cover a period of at least five (5) years and define the annual indebtedness and projected costs of improvements. The service plan must be reviewed and updated annually for the purpose of determining the annual budget for improvements. An assessment plan must be included in the annual service plan. The following represents the updated Service and Assessment Plan ("SAI'') related to the Cimarron Hills Public Improvement District ("District") as required by the Act. The boundaries of the District are described by metes and bounds on Exhibit A. attached hereto (the "District Boundary'). By action taken by the City Council, on August 8, 20007 the City of Georgetown ("City") passed Resolution No. 200808-S which authorized the establishment of the District. By action taken on April 24, 20017 the City Council passed Ordinance No. 2001-31, which approved the original SAP and levied assessments on the property located in the District for certain public improvements. The developer within the District has changed since the commencement of development in 2000. The current developer is Cimarron Hills Development, LLC, an Arizona limited liability company authorized to do business in Texas whose address is 103 Cimarron Hills Trail West, Georgetown, Texas 78628 and whose principal Arizona business address is 17207 North Perimeter Drive, Scottsdale, Arizona 85255 C'Developer'). As originally envisioned, the Cimarron Hills Subdivision ("Subdivision') was conceived as a residential and golf course community located on 812.99 acres (the "Original Project"). The District was originally established to finance the construction and/or acquisition of no more than $17,500,000 in public improvements plus related administrative and financing costs associated with the construction of the public improvements necessary to provide water, wastewater, drainage, erosion control, bridge(s) and roadways (the "Improvements'`} to the residential lots and golf course acreage included in the Original Project through the issuance by the City of District Special Assessment Revenue Bonds ("Bonds") secured by assessment liens placed upon the land within the District Boundary that were anticipated to benefit from the Improvements, and the collection of annual assessment payments from the owners of land within the District. Assessment payments were allocated to four classes of lots with two primary goals in mind: (i) to ensure minimal administrative burden to the City: and (ii) to offer a marketing advantage relative to the successful build out of the District owing to the relative discount owners of land within the District would receive on lots without completed homes. In addition, it was determined that the assessment would impose equal shares of the cost on property similarly benefitted by the Improvements. (See City Council Resolution No. 200808-S and Ordinance No. 2001-31). Annual assessment payments related to each class of lot within the District were established as follows: Class A - $3,400.00/lot/year (Platted Lots with Certificate of Occupancy) Class B - S 680.00/lot/year (Platted Lots without Certificate of Occupancy) Class C - S 49.73/acre/year (Unplatted Acreage) Class D - $ 44.58/acre/year (Golf Course and Club Facilities) 1 Since the time of the initial creation of the District and the City's approval of the original SAP, there have been several changes: First, the District has not issued any Bonds and the City has confirmed, based on market conditions and other factors, that no Bonds will be issued by the City for the District to reimburse the Developer for construction of the Improvements. However, as of August 15, 2012, the City had levied $3,618,021.88 in annual assessments in accordance with the Act under City Ordinance No. 2001-31 (April 24, 2001), of which $3,614,621.88 has been paid and $3,400.00 in assessment payments remain delinquent. Second, although City Ordinance No. 2001-31 authorized the assessment of bond financing costs and service costs related to the billing, collection, fund management, auditing, reimbursement, and other administrative costs associated with the assessments, those additional assessments for financing costs and administrative/service costs have never been charged to the landowners in the District. instead those charges have been deducted by the City from any assessments remitted to the Developer as reimbursement for Developer's (or Developer's predecessors in interest's) construction of the Improvements. Third, the buildout of the Subdivision did not occur as originally anticipated and currently only the land in Benefit Area I (defined below and shown on Exhibit -I) has been platted. The land in Benefit Area 11 (defined below and shown on Exhibit B-2) has not been platted and remains substantially unimproved. Fourth, the improvements for the developed portion of the District (Benefit Area 1) are now - complete and final costs can be determined for the completed Improvements. m Fifth, the Developer has proposed several changes to the Original Project, including the following (which are set forth in more detail in the Amended and Restated Development Agreement and the Consent Agreement dated to be effective contemporaneously with this updated SAP): (i) the addition of 155 acres of land to the Subdivision; (ii) the addition of 292 residential lots to the Subdivision; (iii) the replat of Phase Three, Section Two of the Original Project from 54 lots into 104 lots; and (iv) the creation of a municipal utility district over the 155 acres of newly added land plus the land included in Benefit Area II (defined below), except for Phase Three, Section Three and that portion of the golf course located in Benefit Area H. The new City -approved Master Plan for the Subdivision showing the Developer's new plan for the Subdivision is attached hereto as Exhibit C. Sixth, certain additional public improvements remain to be constructed to complete the development within Benefit Area II. However, only $32291,952 of the costs for Improvements benefitting Benefit Area II will be financed by the levying of assessments with the District under the Act_ The remaining costs related to the improvements necessary to serve Benefit Area H (excluding Phase 'three, Section Three) and the additional 155 acres to be added to the Subdivision will be financed through the creation of the new municipal utility district (and not through the District). In light of all of the foregoing circumstances, the City desires to update the SAP to provide final costs for Improvements in the District that are subject to assessment, and a mechanism for property owners to determine their outstanding assessment for purposes of prepaying the assessment should property owners so desire. The City and the Developer have reached an agreement on the terms of an Amended and Restated Development Agreement (pertaining to the development by Developer of the 2 expanded Subdivision) and a Consent Agreement (pertaining to the creation of a municipal utility district over the land included in Benefit Area II (excluding Phase Three, Section Three and the golf course) plus the 155 acres of additional land to be included in the Subdivision), which are intended to be made effective contemporaneously with this updated SAP. Therefore, in compliance with requirements outlined in various sections of the Act, the SAP for the District is hereby updated as follows: Section 1: Improvements and Services to be Provided to the District The final cost of the improvements constructed in the District that are to be financed by assessments under the Act is $14,248,914 (the "Improvement Costs"), as summarized in Exhibit D. The Improvements have been accepted by the entity having jurisdiction over those public improvements (i.e., the City, Williamson County ("County") and/or the Chisholm Trail Special Utility District ("CTSUD)) for on-going operations and maintenance purposes. It has been determined by qualified engineering professionals licensed to practice in the State of Texas that $10,956,962 in Improvement Costs specifically benefit the area containing the currently -developed portion of the District consisting of 319 finished lots as well as 145.02 acres of the golf course and club house facilities ("Benefit Area r) as illustrated in Exhibit B-1. It has also been determined by qualified engineering professionals licensed to practice in the State of Texas that $3,291,952 in Improvement Costs benefit the District as a whole and specifically benefit the undeveloped residential area of the District along with 128.87 acres of the golf course ("Benefit Area II") as illustrated in Exhibit B-2. The Benefit Area 11 Improvement Costs relate to the construction of drainage improvements, water lines, a bridge, roadways, as well as the wastewater treatment plant, and effluent pond sufficient to provide wastewater treatment capacity for the 287 single family dwelling units contained within Benefit Area 11. The District shall not levy any assessments to finance the costs of any improvements other than those Improvement Costs specifically set forth in Exhibit D, and the Developer shall not be entitled to any reimbursement from the District for any such other costs. By way of example and without limitation, the infrastructure costs incurred or to be incurred by the Developer necessitated by the replatting of Phase Three, Section Two of the Original Project from 54 lots to 104 lots shall not qualify as `Improvement Costs," and the District shall not finance or reimburse any such costs. After analyzing the types of improvements authorized by the Act, the City determined that the construction of the Improvements set forth in Exhibit D are allowed by the Act and are of special benefit to the classes of property described herein as Benefit Areas I and Il and are fully contained within the District Boundary. The City has also determined that the improvements have been accepted for maintenance as public improvements by the entity having jurisdiction of the respective Improvement (i.e., the City, the County or CTSUD). The City, County and/or CTSUD will operate and maintain the Improvements at their expense. Section 2: assessment Plan As of the date of this updated SAP, the public improvements to be financed through the District are complete. After analyzing the assessment methods allowed by the Act, the City has determined that allocating costs between the four property classes (Class A — Platted Lots with Certificates of Occupancy, Class B — Platted Lots without Certificates of Occupancy, Class C — Unplatted Acreage and Class D — Golf Course and Club Facilities) based on the benefits of the Improvements received by each property class within Benefit Areas I and 11 remains a fair and equitable means of allocating the costs of the Improvements. The process for determining the total assessment lien related to each property type is outlined below: 3 Sten I — Determine Improvement Costs to be Financed by District Assessments For purposes of this Plan and as determined by licensed and qualified engineering professionals, the Improvement Costs which are of specific benefit to the residential lot classes (Class A, Class B and Class C) located within Benefit Area I are $10,820,364. Costs of $136,598 are of specific benefit to the 145.02 acres of Class D (golf course and club house facilities) property contained within Benefit Area 1. The Improvement Costs that are of specific benefit to the residential lot classes (Class A. Class B and Class C) located within Benefit Area II as determined by licensed and qualified engineering professionals are $3,170,566. Costs of $121,386 are of specific benefit to the 128.87 acres of golf course acreage included within Benefit Area II. The Benefit Area II costs relate to wastewater treatment plant, effluent pond capacity, water, drainage, roadway and bridge improvements.I Accordingly, the total Improvement Costs allocated to Benefit Area I and Benefit Area II, and allocated between golf course and residential lands within each such benefit area, are set forth below: Benefit Area I Residential Improvement Costs - Benefit Area I Golf Course Improvement Costs - Total Benefit Area I Improvement Costs - Benefit Area 11 Residential Improvement Costs - Benefit Area Il Golf Course Improvement Costs - Total Benefit Area 11 Improvement Costs - Total District Improvement Costs $10,820,364 5136.598 $10956.962 $3,170,566 $121.386 $3 291.952 Step 2 — Determine SAI' Update Costs to be Financed by District Assessments As of August 15, 2012, approximately $274,041.52 in costs have been incurred for financial, legal and administrative costs in connection with the preparation of the update to this updated SAP (the "SAP Update Costs'), excluding legal and staff costs incurred by the City for which the Developer will be solely responsible for payment. A general description of services and costs included in the SAP Update Costs are set forth below: i. Approximately $48,383.75 in engineering costs have been incurred to evaluate the capacity of all such Improvements, allocate costs of Improvements to benefitted parcels, prepare District maps, and to otherwise provide engineering services necessary to update the Service and Assessment Plan; ii. Approximately $207,157.77 in costs have been incurred for financial consultant services in order to determine the assessment lien associated with each lotlparcel contained within IThe original SAP allows total improvement costs of S17,50t},00p to be funded through the PID. However, since the public improvements to be assessed by the District are complete, no additional improvements will he funded through the PH) related to Benefit Area I or Benefit Area II. Certain public improvements remain to be constructed for Benefit Area 11. All lands within Benefit Area iI other than Phase Three Section Three and the golf course will be included within the boundaries of a municipal utility district; therefore, additional taxes and/or fees are anticipated to be assessed against such lands within Benefit Area H by the municipal utility district for construction of the public improvements necessary to complete development of Benefit Area IL The municipal utility district may impose taxes and/or fees to finance the public improvements for those lands within Benefit Area II that are also within the municipal utility district, but those taxes and/or fees are separate from the assessments imposed pursuant. to the Act. 0 the boundary of the District; determine the assessment payments made to date associated with each lot/parcel; determine the current assessment amount outstanding for each lot/parcel; determine the property class .and related assessment payment required of each lot/parcel; and (determine time required to pay off the remaining assessment lien for each lot/parcel; and iii. Approximately $15,500.00 in legal costs have been incurred in connection with drafting and consulting services relating to the update of the SAP. The Developer and the City have agreed to limit the total SAP Update Costs to be financed by the District assessments to $250,000.00. These SAP Update Costs have been allocated to lot classes in Benefit Area I and Benefit Area II based on the pro -rata share of the improvement Costs allocated to each Benefit Area. Accordingly, the $250,000 in SAP Update Costs allocated to Benefit Area I and Benefit Area 1I , and allocated between_ golf course and residential lands within each such benefit area, are set forth below: Benefit Area I Residential SAP Update Costs- $1597545 Benefit Area I Golf Course SAP Update Costs- $2,397 Total Benefit Area I SAP Update Costs - $192 242 Benefit Area II Residential SAP Update Costs- $55,628 Benefit Area I1 Golf Course SAP Update Costs- $2.130 Total Benefit Area 11 SAP Update Costs - $57 7?8 Total District SAP Update Costs MOAN As of September 15, 2012 the City has incurred additional SAP Update Costs in the approximate amount of $45,000.00 ("City SAP Update Costs'D. The Developer shall be solely responsible for payment of the City SAP Update Costs. The District shall not levy assessments for the City SAP Update Costs, and the Developer shall not receive reimbursement for the City SAP Update Costs. Step 3 — Determine Total District Costs to be Financed by District Assessments The total costs to be financed by the District consist of the Improvement Costs plus the SAP Update Costs (collectively, the "District Costs'). Accordingly, the total District Costs allocated to Benefit Area I and Benefit Area 11, and allocated between residential and golf course lands within each such benefit area, are as follows: Benefit Area I Residential District Costs - Benefit Area I Golf Course District Costs - Total Benefit Area I District Costs - Benefit Area 11 Residential District Costs" Benefit Area 11 Golf Course District Costs - Total Benefit Area II District Costs - Total District Costs $111010,209 $138.994 $11.149.204 $3,226,194 $123.516 $13499710 0 Step 4 — Allocate Total District Costs to Individual Properties within the District Benefit Area I Allocating $11,010,210 in residential lot categories (Class A, B and C) to 319 lots provides a total per lot assessment amount of $34,514.77 ($11,010,210/319 lots). The remaining costs of $138,994 are allocable to the golf course property (Class D) amounting to $958.45 per acre ($138,994/145.02 acres). As of the date of this SAP update, the City has approved a replat of Phase Three, Section Two of the Original Project from 54residential lots to 104 residential lots, but the Developer has not yet recorded such replat. Since the Improvements were constructed to serve the original 54 residential lots, only the costs associated therewith qualify as "Improvement Costs' to be financed by the District through the levy of assessments. No assessments will be levied for the infrastructure costs incurred or to be incurred by the Developer associated with replatting the lands within Phase 3, Section 2, and the District shall not reimburse the Developer for any such costs. Benefit Area II Allocating $3,226,194 to the remaining Benefit Area H residential lot categories (Class A, B, and C) to 287 lots provides a total per lot assessment amount of $11,241.09 ($3,226,194/287 lots). The remaining costs of $123,516 are allocable to the golf course property (Class D) amounting to $958.45 per acre ($123,516/128.87 acres). Step 5 — Offset Total Assessment Amount Due by Assessments Previously Paid As property owners have paid annual assessment payments in amounts which reflect the classification of their property type (Class A, B. C and D) since 2002 totaling $3,614,621.88, the amount paid by each property owner as represented by the William Central Appraisal District's assessor parcel number needs to be deducted from the per lot assessment amount determined in Step 4 above to reflect payments made to date and to determine the current outstanding balance related to each individual property. Accordingly, assessment payment histories were prepared by the Williamson County Tax Assessor's office and the amounts paid to date by assessor parcel number were deducted from the per lot / per acre assessment in Step 4 above to arrive at the outstanding assessment amount as of August 15, 2012. Current outstanding assessment amounts by parcel number are reflected in the revised Assessment Roll included hereto as Exhibit E. Ste 6 — Determination of Pavoff Date Aurtual assessment payments related to each class of property will remain as originally established as follows: Class A - $3,400.00/lot/year (Platted Lot with Certificate of Occupancy) Class B - $ 680.00/lot/year (Platted Lot without Certificate of Occupancy) Class C - $ 99.73/acre/year (Unplatted Acreage) Class D - $ 49.58/acre/year (Golf Course and Club Facilities) The annual assessment payments shown above represent the payments necessary to repay the District Costs, as herein defined, and do not include interest on the outstanding assessment balance. Other than fines, penalties and/or other related interest charges associated with the non-payment or late payment of assessments pursuant to Section 33.01 of Texas Tal Code, interest charges will not be applied to the outstanding assessment balances. 0 As individual Iot categories have different annual assessment payment amounts, the time over which each individual property owner will have to pay-off their outstanding assessment amount will vary with the property classification. For example, if the outstanding assessment balance for a Class A property owner is $13,500. then the time required to pay off the outstanding assessment is approximately 3.97 ($13,5041$3,400) years. If the property is currently a Class B property, the estimated pay -off time is approximately 19.85 ($13,500/$680) years. As property will change classifications as it moves through the development cycle (i.e. unplatted acreage to platted lot to finished home with Certificate of Occupancy), the assessment payment amounts will be revised on an annual basis as further discussed in Section 3. As such, the estimated payoff date will be revised as individual property types change their property classification. Section 3: Assessment Roll The District consists of those properties contained within Benefit Areas I and II contained within the District Boundary as described and Exhibit A. The revised Assessment Roll as of August 15, 2012 for properties within the District is attached hereto as Exhibit E. The revised Assessment Roll shows the name and address of each property owner in the District, the description of the parcel being assessed, the Benefit Area in which the parcel is located, the total amount of the assessment, and (as of August 15, 2012) the current classification of the property (Class A, B, C or D), the total amount of assessment paid to date, the amount of the total assessment remaining to be paid as of August 15, 2012, and the annual amount of the assessment for the property within the District. The classification of the properties within the four assessment classes may change from time -to- j, time depending upon the stage of development of the property. As a result, the Assessment Roll will be is revised annually by the City or by Williamson County Tax Assessor Office, as necessary, to reflect the applicable assessment classes for the respective property as of January I of each year. Section 4: Collection and Disiiosition of Assessments In accordance with Sections 372.023 and 372.024 of the Act, the City, will continue to collect assessments for the District Costs. The Total District Costs to be assessed are as follows: A) Total District Costs — Benefit Area I Final Costs: $11,149,204 B) Total District Costs — Benefit Area H Not to exceed: $ 3,349,720 The District Costs shown on Exhibit D (up to a maximum of $14,498,914 and less the Service Costs, defined below) shall be reimbursed to the Developer by the City solely from the collection of assessment payments received from landowners within the District; and from no other source. Other costs incurred for the administration and operation of the District, including those costs of the City, third party administrators (if any), and County in annually billing and collecting assessments, managing and auditing the assessment fund, paying bank charges and fees, and making payments to the Appropriate Party (defined below) related to the construction of the Improvements, and similar administrative costs ("Service. Costs'). The Service Costs (up to an annual maximum of $15,000 for each year that Services are performed) shall be deducted from any assessments collected and retained by the City prior to remittance of any assessments to the Developer. The Developer's or City's (each an "Appropriate Party') portion of the assessment payments received by the City shall be remitted to the Appropriate Party or its successors and assigns upon request of the Appropriate Party until their respective costs are paid in full; provided, however, that the City shall not be required to remit payment to an Appropriate Party more than four times per year. Each assessment 7 payment to an Appropriate Party will include a written accounting identifying the assessments collected during the preceding period, assessment payments outstanding (i.e. delinquent) and penalties and interest levied, as well as the amount of any Service Costs funded through the assessment collections. Penalty and interest charges on delinquent assessments, if any, shall be retained and used by the City to defray the Service Costs. The Developer shall have no right to receive any penalty or interest payments on delinquent assessments. Section S: Ownership and Maintenance of Improvements As of the date of this updated SAP, all of the Improvements for Benefit Area I have been constructed and accepted for ownership and maintenance by the entity having jurisdiction over the Improvements (i.e., by the City, the County, or Chisholm Trail Special Utility District). Maintenance costs and other fees related to the Improvements in Benefit Area i will not be assessed under the Act, but will be charged by the City, County, or CTSUD (as the case may be) under their respective laws, ordinances, rules, policies, and regulations. As improvements are constructed in Benefit Area 11, it is anticipated that those Improvements will also be owned and maintained by the entity having jurisdiction over the Improvements in Benefit Area Ii. No fees or expenses related to the maintenance or repairs of the Improvements shall be due from or collected from property within the District other than those currently provided for under City laws and regulations for any municipally owned improvements. Section 6: Levv of Assessments As authorized by Section 372.003(14) of the Act, there is hereby levied against the property in the District by the City the assessments for the District Costs as set forth on the revised Assessment Roil in Exhibit E attached hereto, which shall remain in effect from year-to-year until all applicable amounts are finally paid or until the City adjusts the levy after a hearing and determination of benefits in any year pursuant to Section 372.015(d) of the Act. The City has contracted with the Williamson County Tax Assessor's Office to perform the duties of the City relating to collection of the assessments levied under the Act. The Assessment Roll will be revised annually to reflect the individual properties' payments, applicable assessment class, and total remaining assessment due, in accordance with this updated SAP. Any real property conveyed to the City, County or CTSUD in connection with the Improvements shall not be assessed. Except as otherwise provided by Section 31.04 of the Texas Tax Code, assessment payments are due on receipt of the assessment bill and are delinquent if not paid before February I of the year following the year in which imposed. The first annual assessments under this updated SAP shall be due and payable on or before January 31, 2013, and thereafter each aiuival assessment for shall be payable on or before each January 31, thereafter until the Improvement Costs, including accrued penalties and interest on delinquent assessments (as provided in and allowed by the Texas Tax Code), are paid in full_ No further assessment shall be made for Iots that have been replatted after the total assessment amount has already been paid. By way of example and without limitation, after Developer has paid the assessment amounts associated with Phase 3, Section Two, Phase Three, Section Three as required by Section 7, and the land in Benefit Area lI (excluding the golf course) in the amounts shown on the revised Assessment Roll attached hereto as Exhibit E. no new assessments shall be assessed by the District against those lands upon subsequent platting or replatting. 9 Section 7: Prepayment of Assessments Pursuant to the provision of Section 372.018(f) of the Act, an assessment may be paid in whole or in part at any time by paying the unpaid amount of the assessment plus the penalties and interest on delinquent assessments accrued (if applicable) that have been imposed prior to the date of payment of the assessment. Notwithstanding the foregoing, the Developer shall pre -pay certain assessments as follows: (i) The Developer shall prc-pay all remaining assessments levied on Phase Three, Section Two of the Original Project (approximately $1,686,072.00) prior to recordation of the replat for such lands and in no event later than the date on which an election is held for confirming the creation of a municipal utility district; (ii) The Developer shall pre -pay all remaining assessments levied on Phase Three, Section Three of the Original Project (approximately ($468,499.00) prior to recordation of a final plat for such lands and in no event later than the date on which an election is held for confirming the creation of a municipal utility district; and (iii) The Developer shall pre -pay all remaining assessments for all Iands in Benefit Area Il (excluding the golf course) (approximately $2,567,140.00) on or before the date that an election is held for confirming the creation of a municipal utility district. Section 8: Interest and Penalties on Delinquent Assessments A delinquent assessment shall incur a penalty of six percent (6%) of the amount of the assessment for the first calendar month it is delinquent plus one percent (1%) for each additional month or portion of a month the assessment remains unpaid prior to July 1 of the year in which it becomes delinquent_ However, an assessment delinquent on July I shall incur a total penalty of twelve percent of the amount of the delinquent assessment without regard to the number of months the assessment has been delinquent. A delinquent assessment continues to incur the penalty as long as the assessment remains unpaid, regardless of whether a judgment for the delinquent assessment has been rendered. Penalties shall not exceed the amounts permitted by Section 33.07 and 33.08 of the Tax Code. In addition, a delinquent assessment accrues interest at a rate of one percent (1%) for each month or portion of a month the assessment remains unpaid_ A delinquent assessment continues to accrue interest as long as the assessment remains unpaid, regardless of whether a judgment for the delinquent assessment has been rendered. Interest shall not exceed the amounts permitted by Section 33.01 of the Tax. Code. Section 9: Attornevs Fees If an assessment remains delinquent on July 1 in the year in which the assessment became delinquent, there shall be imposed an additional penalty to defray costs of collection if it is necessary for the City to use an attorney to collect the delinquent assessment. Tile attorney's fees shall be either an amount equal to 15 percent (15%) of the total amount of delinquent taxes, penalties, and interest that the property owner owes the City or such other percentage as may be specified in Section 33.22(e) of the Tax Code) or the amount of attorneys fees allowed by Tax Code § 3322(d). E Section 10: No Miscounts or Split Payments There will be no split payments of an assessment and no discount related to the early payment of an assessment. Section 11: Lien for Collection of Assessments Assessments together with interest on delinquent accounts, penalties, and expenses of collection and reasonable attorney's fees, as permitted by the Tax Code shall be a first and prior lien against the property assessed, superior to all other liens and claims, except liens or claims for state, county school district, or municipal ad valorem taxes, and shall be a personal liability of and charge against the owner of the property regardless of whether the owners are named. The lien for assessments and penalties and interest on delinquent accounts is effective from the date of the Ordinance levying the Assessments (the "Assessment Ordinance") until the assessment is paid. Section 12: Collection of Delinquent Assessments If default is made in payment of any of the sums assessed against a property owner and their property, collection shall be enforced by suit in any Court having jurisdiction or by lien foreclosure or both, in the same manner that an ad valorem tax lien against real property may be enforced by a governing body, pursuant to Section 33.01 et seq. of the Texas Tax Code. Section 13: Applicability of Tai Code To the extent not inconsistent with the Assessment Ordinance, and not inconsistent with Chapter 372 of the Code or the other laws governing public improvement districts, the provisions of the Texas Tax Code shall be applicable to the imposition and collection of Assessments. Section 14: No Acceleration of InstaIIments Failure to pay an assessment when due shall not accelerate the payment of the remaining installments of the assessment and such remaining installments (together with penalties and interest on delinquent accounts thereon) shall continue to be due and payable at the same time and in the same amount and manner as if such default had not occurred. Section 15: Lien Survives Foreclosure Any sale of property for nonpayment of an assessment per annum shall be subject to the lien established for the remaining unpaid assessment against such property and such property may again be sold at a judicial foreclosure sale if the purchaser thereof fails to make timely payment of the non - delinquent assessment against such property as they become due and payable pursuant to the terms of the Assessment Ordinance. Section lb: Reassessments Pursuant to Section 372.020, Texas Local Government Code, the City Council of Georgetown, Texas may make a reassessment of a parcel of land if: (1) a court of competent jurisdiction sets aside an assessment against the parcel; (2) the City determines the original assessment was excessive; or (3) on the written advice of counsel, the City determines that the original assessment is invalid. 10 EXHIBIT "rV" 813.033 ACRES WILLIAMSON COUNTY, TEXAS LLIAThSGFV-COLJ1IT"JFj- TEXAS AND BEING ALL OF iT CERTAIN CALLED 812.99 ACRE TRACTAS DESCRIBED t. FORECLOSURE i O PIVOTAL CIMARRON HILLS, L.P. RECORDED IN i 2004042517 OF OFFICIAL PUBLIC RECORDS OF a i i TEXAS; SAID TRACT OF LAND BEING MORE PARTICULARLY DESCRIBED USING AVAILABLE PUBLIC RECORDS BY METES AND i i AS # i BEGINNING at the southeast corner of said called 812.99 acre tract, same being the southwest corner of a called 40.08 acre tract described In a deed to Oaks at San Gabriel, LLC, recorded in Document No. 2007835434 of said official Public Records, same being the southeast corner of Lot 2, Block B, Cimarron Hill P.U.D., Phase One, Section Four recorded in Document No. 2001013105 of said Official Public Records and being on the northerly right of way line of Texas State Highway No. 29; THENCE, with said northerly right of way line the following two (2) courses and distance: L N82'26'24"W, at 2350.14 feet passing the southwest corner of said Lot 2, Block R, same being the southeast corner of Lot S. Block B of said Phase One, Section four and at 2630,13 feet passing the southwest corner of said Lot 5, Block B. same being the southeast corner of Lot 4, Block B, Cimarron Hill P.U.D., Phase One, Section Four Amended of record In Document No. 200202 13 86 of said Official Pu blit Record for a total distance of 5292.81 feet to the beginning of a curve to the left; 1 With the arc of said curve to the left at 47.21 feet passing the most southerly southwest corner of said Lot 4, Block B and continuing for a total distance of 130.02 feet having a radius of 5779.65 feet, a central angle of 01017'20" and a chord bearing and distance of N83002'40"W, 130.02 feet to the southwest corner of the said 528.18 acre tract being on the westerly right of way line of a 60 foot wide right of way dedicated by plat of Cimarron Hills P.U,D,, Phase One, Section Four recorded in Document No. 2001013105 of said Official Public Records; THENCE, leaving said northerly right of way line and with the westerly line of said called 812.99 acre tract same being the westerly right of way line of said dedicated roadway the following four (4) courses and distances: 1. N22601'0011W, 517.58 feet to an angle point; 2. N21°141136" W, 1123.07 feet to an angle point; 3. N20041121"W, 266.08 feet to an angle point and; 4. N21°12'27"W, 969.82 feet to the most westerly southwest corner of said called 812.99 acre tract; THENCE, leaving said westerly right of way line and continuing In a northeasterly direction along the westerly line of said called 812.99 acre tract the following seven (7) course and distances: 1. N69056'01"E, at 60.02 feet passing the northwest corner of Cimarron Hill P.U.D., Phase One, Section Five of record In Document No. 2001067819 of said official Public Records, for a total distance of 410t68 feet the northeast corner of said Phase One, Section Five; 2. N69008'31"E, 191.07 feet to an angle point; Page ! 1 3. N64°16'82" Et 77.21 feet to an angle point; 4. N69°54'31"E, at 588.34 feet passing the most westerly corner of Lot 1, block S, Cimarron Hills, P.II.D., Phase Two, Section One, of record In Document No. 2002060240 of said off lcial Public Records and continuing for a total distance of 843.66 feet to an angle point; S. N69057131"E, 860.36 feet to an angle point; 6. N21812'16"W, at 1801.56 feet passing the northwest corner of Lot 1, Block W of said Phase Two, Section One for a total distance of 23601.75 feet to an angle point and; 7. N21011'16"W, 2341.19 feet to northwest corner of said called 812.99 acre tract; THENCE, with said northerly line, N68°46'56"E, 330230 feet to the northeast comer of said called 812.99 acre tract; THENCE, with the easterly line of said called 812.99 tract, the following twenty two (22) courses and distances: 1. S21019119"E, 781.08 feet to an angle point; 2. S21013'201"E, 394.53 feet to an angle point; 3, 521010149"E, 197.91 feet to an angle point; 4. S21015'30"E, 187.1.7 feet to an angle point; 5. 5210091513"E, 563.78 feet to an angle point; 6. S20°421SVE, 834.39 feet to an angle point; 7. S21'17111"E, 1086.90 feet to an angle point; 8. S40019157"E, 94.58 feet to an angle point, 9. S46°39'27"E, at 182.75 feet passing the most northerly corner of Cimarron Hills P.U.D., Phase One, Section Six of record in Document No. 2001028392 of said Official Pubic Records and continuing for a total distance of 200.57 feet to an angle point; 10. S42°12130"E, 225.05 feet to an angle point, 11. S23033103"E, 194.67 feet to an angle point; 12. S5900512711W, 15.42 feet to an angle point; 13. 586°01'57"W, 19.36 feet to an angle point, 14. S54°30157"W, 127.28 feet to an angle point; 15. S66010157"W, 86.10 feet to an angle point; 16. S68°39114"W, 602.93 feet to an angle point; 17. S63°03411W, 79.90 feet to an angle point; 28. S67'11104"W, 170.98 feet to an angle point; 19. S10°57'43"E, 138.76 feet to an angle point; 20. 519°50195"i , 1.67.37 feet to an angle polnt; 21. S21°03'35"E, at 987.34 feet passing the most southerly southeast corner of said Phase One, Section Six and continuing for a total distance of 4476.04 feet to an angle point and; 22. S22"03111"E, 503.46 feet to the POINT OF BEGINNING and containing 813.033 acres of land, more or less. Page 12 c N �_;;;;•Y,o-?; ?•51 egg ltl 'W:zEfw:^ O g J Q m w u w Q p Uty oz CJ 4 22 aZ rt ® O N wp fm2 (fJ T. �F Y ww o �.. of 4t 444 71 w Jq a : a Y V D U `Q � � w 444 ��.•?� y Q L,TVIN AItl33jI' Q l !MO } .. ........ ....... an=rnw 42 t_ � s- 4.s3ram. Z Ll u r r ate N x u, .v acsv-r O 64 �T' �f" : 2 m rY Ul C n i-� OLD :: p OYOV NPIIYC ON{[II.^.C. ]t C3 c LiLu zf �. w aac wn m c w waa Ftp uo z a¢ c d uI u < c0 Z c n t -w w Z Wza F VI X -71 OA9-✓ 4 "PUN PaV70I1C 4Z3 UUs,vYt.*\VW111d\=j v0' aD Lu .1O Cfl �i/L yv. 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So Pager I 5],.26,194 XaTFroeBchi(lersa Tmtl9tCtmaaant510zLGAP Axlazzmarrl 16nancMStn M1ntlyslSlSAP 9-7.72 Drece4 tim Of Twit Dr btA t Wadex.trr Wattr Pradew CewtrW 3rrld r Pane B:ar I Carter C) 0.'W'rP 1715641 SO S71 f.644 IO s0 SO SO Motor Powd 1515991 10 551199! SO IO to SO Fhett 1. SttEw 11,7,4 W atewittr 2227,047 SO 2727,061 SO So IO t0 Phrss 1. Sfclml essta,vaffnsta, strnu. da@lils &200!1.03 540:,068 5359,053 1259,000 $51,460 10 1915.611 Place l Snew 2 alta wultvita seem drain. a 2391.499 IZl0]90 1I64,819 1107.410 319 300 So 137[,479 PLssrl SvEvlwaFv van:vata. strcab Jvaha t ti 07125 1464758 1678.011 5201171 539100 SO 2576918 Plasrl S«6m4 lZeerT4Wdrras Center SO SO SO 30 SO ISd So P7nsz1 Setliese 37Oa1fCFahfimarlCanmmity Cereal SO SO IO SO SO So to Phial 5446M6 TPIESEmszS Istroll to 20 t0 So SO 20 Io 137uet t Stx4aw 7 Oti -ntl Rind: l)rlt 10 SO SO in IO W S0 Phrse2 Srstim Zvsla vatsMv ztraU dainR a 37.521683 5254025 470 dst SO SO 5291!92 5601.6 7 Phttt' Satins 7 testa sees )nre tar ttraitt Jain Stre 5767.939 30 10 M2 S)* t0 IO SO Plast 2 Seed" I assn vafrmta f4ttim drrirs r Mt361 S128,027 2103.973 193..670 so s0 5134.001 Mea3 Srttimt iIit- 12 R reMen 6 21 Inter 10 So So 10 0 50 52 Me st3 Srrtinn2 via vas tzasln tosser drvin%Xt ItS17377 "11,345 1410.592 1331.653 521.936 Sa 350`711 olives} Sxtieal 11 oif)ets 10 SO SO SO 30 Sa to SLAW if IIA i Casts- Psi or to Mob Urstim Costs .1:6)040 49a ':::22: 5751P E:EI 741 ( ::3F 60441 :':iStll' 25 #0S 92 ^51 59 a4- Fa6strd shirr of\Sa6i4vtim Coot 5169.730 IU,957 132,117 537-532 SI 541 U,771 14.Wa Test DmrEl Area I - LdemdS rei6e Cott* FaS10 1(4961 ::IX39630 9419 9- 8ewefk Arra ler Casv (.) WWTP 1643.635 Sa 5613333 SO SO s0 Elanmt Pend $464221 SO 5464::3 So so IO Srttianl'1a 3'haeTWeretmstn 1104190 30 5:0450 IO S0 SO Srztian i Phar 1 vsla w:sbvafrr strsm.dame s 2148.741 S44AIA 30 IO $0 so 5301068 S+crian2 Phsssittsta va.ftuxa tr+xs dn)ms 5134631 Si 57527 397807 f46(D3 Stn I So SA1271 S+rtine3 Platt weltsatflmottr ttrtes dnins s 1117764 151641 10 10 so SO 364 $01 Seaien2 Phetri o,rix wafrssteer rtrtez dninse 25048 W9 $196Q17 2230193 SO SO 5604775 6!621 Ssrtisn 2. Phrxr2vafa. a.ntsysta so-+Rr dnwa s S1t2b41 s0 SO 5112344 10 SO $0 Stttieat first mta vatsvazv. mrrtr chinas 1&7234 12.297 So So s0 SO 139131 Sstinn2 Phass3 mita wtaievaht strtrx. china c 1114164 555705 SO SD SO to 1112% Svs,twil BAn Cnas Pderte3fekir, crow Cnstz %'�i573, 519:' -'::5525'451':'-.�:S 1:!56: :0':%%27 SE;6"7 -=<:I0-fE93.'-XS' :: 51?I'.^.30 Estimwed Siaa afh4eh{Gnfi® Casts 343413 S7211 321331 12SE7 So 58112 33,[17 Twil Cases . pmrst Am II .::"..; ;•.� .' :S]-91912" """': J>S:::I3]2dT3'. 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