HomeMy WebLinkAboutRES 200808-SORIGINAL L
RESOLUTION NO. v T$
C4 Y" r
A RESOLUTION MAKING FINDINGS AS TO THE FEASIBILITY AND
DESIRABILITY OF AN IMPROVEMENT DISTRICT TO BE KNOWN AS
THE CIMARRON HILLS PUBLIC IMPROVEMENT DISTRICT; MAKING
FINDINGS AS TO THE ADVISABILITY, NATURE, AND ESTIMATED
COSTS OF THE PROPOSED IMPROVEMENTS AND THE METHOD OF
ASSESSMENT WITHIN THE BOUNDARIES OF THE DISTRICT;
AUTHORIZING THE DISTRICT AS A PUBLIC IMPROVEMENT
DISTRICT PURSUANT TO CHAPTER 372, SUBCHAPTER B, OF THE
LOCAL GOVERNMENT CODE; ACCEPTING A FEASIBILITY REPORT;
MAKING PROVISIONS RELATED THERETO AND DECLARING AN
EFFECTIVE DATE; AND PROVIDING FOR A SAVINGS CLAUSE
WHEREAS, Chapter 372 of the Texas Local Government Code, as amended (the "Act ")
authorizes the City of Georgetown, Texas (the "City ") to create one or more public improvement
districts to undertake improvement projects that confer a special benefit on a definable part of the
City or its extraterritorial jurisdiction; and
WHEREAS, on May 23, 2000, the City Council approved "A Resolution Receiving a
Petition to Establish the Cimarron Hills Public Improvement District, Authorizing Publication of
Notice and a Public Hearing, Authorizing a Feasibility Report and Providing a Severability Clause"
and set a public hearing regarding creation of such district for 7:00 p.m. June 13, 2000; and
WHEREAS, on June 8, 2000, owners of certain real property located within the City's
extraterritorial jurisdiction delivered to the City an Amended Petition (the "Petition ") to create
Cimarron Hills Public Improvement District (the "District ") the boundaries of which are shown on
the map attached hereto and made a part hereof and marked Exhibit "A ", and
WHEREAS, on June 13, 2000, the City Council approved "A Resolution Receiving An
Amended Petition to Establish the Cimarron Hills Public Improvement District Authorizing
Publication of Notice and a Public Hearing, Authorizing a Feasibility Report and Providing a
Severability Clause" and postponed holding the public hearing until July 11, 2000; and
WHEREAS, the City Secretary of the City has received the Petition and it has been
determined that the owners of more than 50% of the appraised value of the taxable real property and
more than 50% of the area of all taxable real property within the District have executed the Petition
and that the Petition complies with the Act and authorizes the City Council to consider the creation
of the District; and
WHEREAS, after providing notice on May 28, 2000, May 31, 2000, June 18, 2000, and
June 21, 2000, as required by the Act, the City Council on July 11, 2000, and August 8, 2000
conducted a public hearing on the advisability of the improvements and the creation of the District;
and
Cimarron Hills PID Resolution No.
Page 1 of 4
WHEREAS, the financing feasibility report of First Southwest Company was presented to,
and considered by, the City Council on July 11, 2000 during the public hearing and such public
hearing was continued until 7:00 p.m. on August 8, 2000; and
WHEREAS, the City Council adjourned such public hearing on August 8, 2000, Now
Therefore;
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GEORGETOWN, TEXAS:
Section 1. The City hereby finds that the creation of the District implements the
following policy of the Century Plan -- Policy Plan element:
Growth and Physical Development Policy End 3.00: "Citizens, business owners and
organizations enjoy the benefits of well - planned land usage in which conflicting needs are
balanced."
and further finds that the enactment of this Resolution is not inconsistent or in conflict with any other
Century Plan Policies.
Section 2. The following findings are made and declared regarding the proposed District:
A. The Financing Feasibility Report of First Southwest Company, attached
hereto and incorporated herein as Exhibit "B ", is received and accepted;
B. The Petition to establish the District is sufficient and is accepted as being in
compliance with the provisions of the Act;
C. It is advisable to make the improvements set forth in the Petition and the same
will benefit the land described therein, enhance the value thereof and be of
benefit and use to the City and the residents of the District;
D. The nature of the improvements is to provide the water, wastewater, drainage,
streets landscaping and land detention and water quality ponds
improvements, necessary to serve the land within the District in accordance
with the requirements therefor by the City and are generally described in
Exhibit "C" attached hereto and made a part hereof for all purposes;
E. The estimated costs of acquiring all the proposed improvements, together
with bond issuance costs, legal and financial fees, credit enhancement
expenses, if any, capitalization of bond interest, if any, the creation of a
reserve fund, if any, and expenses incurred in the establishment,
administration and operation of the District is estimated not to exceed
$17,500,000 and such cost is a reasonable cost for said improvements;
Cimarron Hills PID Resolution No. g 0 '
Page 2 of 4
F. The estimated improvement costs shall be paid from the proceeds of the sale
of revenue bonds to be solely secured by and payable from special
assessments on all property within the District's boundaries.
G. The land described in the Petition will all be benefitted by the proposed
improvements and therefore the boundaries of the District shall be as
described in Exhibit "A" attached hereto and made a part hereof for all
purposes;
H. The method of assessment shall be based upon the special benefits which
accrue to the classes of property within the District as set forth in "Exhibit
"D "; and
I. The costs of the improvements shall be borne entirely by the land within the
boundaries of the District and no apportionment between the City and the
District is necessary.
Section 3. The District is hereby created as provided by the Act and in accordance with
the findings made in Section 2 hereof; provided, however, such authorization does not authorize the
petitioners to take any action that would obligate the City in any way or cause the City to incur any
risk or cost.
Section 4. This Resolution shall be published one time in the Williamson County Sun,
the official newspaper of the City, and upon such publication, authorization of the District shall
become effective.
Section 5. City staff is hereby authorized to take all action necessary to prepare a
preliminary assessment roll, publish any necessary notices, and take all other action necessary to
effectuate the purposes of this Resolution.
Section 6. If any article, paragraph, clause or provision of this Resolution shall be
adjudged invalid or held unconstitutional, the same shall not affect the validity of this Resolution as
a whole or any part or provision thereof, other than the part so decided to be invalid or
unconstitutional.
RESOLVED this day of Cy(.i - _, 2000.
THE CITY OF GEORGETOWN, TEXAS
By:n A k, �, < � 7,,,, � �,?,,ld d
aryEllen Kersch, Mayor
Cimarron Hills PID Resolution No.
Page 3 of 4
Approved as to form:
Approved
Marianne Landers Banks
City Attorney
OA00
Cimarron Hills PID Resolution No.
Page 4 of 4
41
812.99 ACRES
C|K8ARRC3N HILLS BOUNDARY
FN. 014O
APRIL O.2OOO
PBS&J JOB NO. 44O10O.0025O1
DESCRIPTION OF A 812.99 ACRE TRACT OF LAND SITUATED IN THE A. H. PORTER SURVEY,
AB8TRACT, BEING ALL OF THAT CERTAIN CALLED 813.09 ACRE TRACT DF LAND AS
DESCRIBED IN A DEED TO RESORT PROPERTIES, INC. OF RECORD IN VOLUME 2148, PAGE
318DF THE OFFICIAL RECORDS [JFVV|LLLAMSON COUNTY, TEXAS, SAID 812.S0 ACRES BEING
DESCRIBED BY METES AND BOUNDS ASFOLLOWS;
BEGIN N{0Gat an iron rod found for the southeast comer of said called 813�acre tract, being also in
the north line of State Highway No. 2S.o1OO foot wide ' being also the southwest comer of
that certain 3T.SS5acre tract of land oa described ina deed toH.H.RotheUof record in Volume O48.
Page 607 of the Deed Records of Williamson Counb/. Tarom and being the southeast corner of the
herein described tract;
THENCE, with the south line qf called 813I0acre tract, the north line ofsaid State Highway No. 2S
right-of-way and the south line of the herein described tract, the following two (2) courses:
1. N82"3O'24^VV for n distance nf5282.81 feet bzo1/2 inch iron rod with cap set sdthe beginning
of a curve to the left, and
2. along said curve to the left, an arc distance of 130.02 feet said curve having a radius of 5779.65
feet, a central angle of 01 0 17' 17' and a chord bearing of N 830 02'42" W, for a chord distance
of 130.02 feet to an iron rod found being the southwest comer of called 813.09 acre tract, being
also the southwest comer nf the herein described tract and being the southeast comer ofthat
certain 8.881 acre tract of land au described ino deed toGC &E Services of record inVolume
2621, Page 136of the deed records ofWiUiornson County, Texas; .
THENCEN21"O1'00" W, with the west line of called 813.09 acre tract, the east line of said 8.881 acre
tract and the west line of the herein described tract, for a distance of 517.58 feet to a 40d nail found for
the northeast comer of said 8.881 acre tract, being also a southeast comer of that certain 0.725 acre
tract of land as described in a deed to William D. Richards, et ux of record in Document No. 9630009
of the Official Records of Williamson County, Texas;
THENCE, N21"1�06'W, continuing with the west line of called O13�acre tract, the west line of the
herein described tract, and with the east line of said 8.726 acre tract, for e distance of1123.O7 feet to
a 40d nail found for an angle point in the east line of that certain 12.564 acre tract of land aadescribed
in a deed to Jewel Moye McWhorter of record in Volume 1893. Page 193 of the Dead Records of
Williamson County, Texas;
THENCE, N20"41'21~W, continuing with the west line of called 813.09 acre tract, the west line of the
herein described tract and the east line of said 13.5O4 acre tract, for o distance of2OOIX3 feet too1/2kxzh
iron rod with cap set for the northeast comer of said 12.5O4 acre tract, being also o southeast comer of
that certain 20.0 acre tract of land as described in a deed to Mrs. Sam Goldenberg of record in Volume
17O5. Page 7S3of the Deed Records of Williamson County, Texas;
THENCE, N21"1227~VV continuing with the west line of called 813.OQacre tract, the west line ofthe
herein described tract and with the east line of said 2O.Oacre tract, for o distance of8OS.82 feet toon
iron rod found for the most westedy northwest comer of called 813.09 acre tract, being also the most
westerly northwest comer of the herein described tract, being also the northeast comer of said 20.0 acre
woolEXHIBIT
812.99 ACRES
CIMARRON HILLS BOUNDARY
FN.O14O
APRIL O.2DOO
PBS8J JOB NO. 44O19O.0025O1
tract and being the southwest comer of that certain 98.30 acre tract of land as described in a deed to
JUton Lao fL Judy Marie {}vvo[ Jr. of record in \/o\urnn 2208. Page 603 of the {JfDoia| Records of
Williamson County, Texas;
THENCE, with a north line of called 813.09 acre tract, the north line of the herein described tract and the
south line of said 98.30 acre tract, the following five (5) courses:
1. NGS"5G'O1"E for a distance of41O18 feet toa 1/2 inch iron rod with cap set for mn angle point,
2. N 690 08' 31' E for a distance of 191.07 feet to a "/2inch iron rod with cap set for an angle point,
3. N 64' 16' 01' E for a distance of 77.21 feet to a Y7 inch iron rod with cap set for an angle point,
4. NGQ"54'31^E for a distance of843]6G feet hoaY2 inch iron rod with cap set for on angle point,
and
5. NO8"5T31^E for a distance ofO6O.36 feet 0za1/2hloh iron rod with cap set for eA ell comer
in the west line of called 813.09 acre tract being also an ell comer in the west line of the herein
described tract and being the southeast comer of said SO'3O acre tract;
THENCE. N 210 12' 1O^VV. with the west line of called O13'O9acre tract, the west line of the herein
described tract and the east line of said 98.30 acre tract, for a distance of 2360.75 feet toun iron rod
found for the northeast comer of said 98.30 acre tract and being the southeast comer of that certain
121.21 acre tract of land as described in a deed to John F. & Jeanette L. Griffin, III of record in Volume
2489. Page 851 of the Official Records of Williamson County, Texas; '
THENCE, N21"11'1G"VV. with the west line of called 813l9 acre tract, the west line of the herein
described tract and the east line of said 121.21 acre tract, for a distance of 2340.54 feet to an iron rod
found for the northwest comer of called 813'D9 acre tract, being also the northeast comer of said 121.21
acre tract and being in the south line of that certain 170.00 acre tract of land as described in a deed to
Stanley K8.& Carol R. Jensen of record in Volume 2178. Page 51Qof the Official Records ofWiUiannoon
County, Texas;
THENCENOO~46' 56'Ewith the north line of called O13�acre tract, the north line of the herein
described tract and the south line of said 170.00 acre tract, for a distance of 3303.09 feet to an iron rod
found for the northeast comer of called 813.09 acre tract, being also the northeast comer of the herein
described tract, being also the southeast comer ofsaid 170.00 gore tract, being also the southwest
comer of that certain 221.58 acre tract as described in a deed to The Culp Family Loving Trust of record
in Volume 2179, Page 554 of the Official Records of Williamson County, Texas and being the northwest
comer ofthat certain 312.08 acre tract of land known as the D 8. N Builders Tract on unrecorded
subdivision in Williamson County, Texas;
THENCE, with the east line ofthe called 813.09 acre tract, the east line of the herein described tract and
the west line of said 312.08 acre tract, the following eleven (11) courses:
S 21 ' 17' 37" E for a distance of 780.43 feet to an iron rod found for an angle point,
2. G21°13'2["E for a distance Df3S4.53 feet bJB4Od nail found for 8O angle point,
812.99 ACRES F.N.814O
C|K8/\RFl{}N HILLS BOUNDARY APRIL G.2O80
PBS&J JOB NO. 44O19O-OO25O1
3. S 21 0 10'49' E for a distance of 197.91 feet to a "/2inch iron rod with cap set for an angle point,
4. S 21 ' 15' 30" E for a distance of 187.17 feet to an iron rod for an angle point,
G21"�50'E for odistance of 563.78 feet too40d nail found for an angle point
G. B2O"42 5 V E for a distance of 834.39 feet to a Yz inch iron rod with cap set for an angle point,
7. S21"1711^E for a distance of1O86.90 feet toen iron rod found for on angle point,
S 40° 19` 57^ E for odistance ofS4.5Ofeedtu an iron rod found for on angle point,
G4O°3S 28~Eforadiatenoeof200.57feattoanironrodfoundhzronong|epoint,
10. S 42' 12' 30' E for a distance of 225.05 feet to a Y2inch iron rod with cap set for an angle point,
and
11. 823"33'O3'E for o distance ofiS4.67 feet toaY2inoh iron rod with cap set for the most
northerly southeast comer of called 813.09 acre tract, being also the most northedy northeast
comer of the herein described tract, being also the southwest comer of said 312.O8acre tract
and being in the north line of that certain 274.53 acre tract of land as described in a deed to The
Rothell Family Limited Partnership of record in Volume 2527, Page 28 of the Official Records
of Williamson County, Texas;
THENCE, with o south line of called 813I9 acre tract, a south line of the herein described tract and the
north line of said 274.53 acre tract, the following seven (7) courses:
G50"D5 27^VVhoredistanoeof15.42foettooYzhnohinonrodwiUhoopmetforonong|epoint,
2. 88G" 01' 57" W for a distance of 19.36 feet to a % inch iron rod with cap set for an angle point,
3. S54"3O^57=VV for a distance of127-2D feet too1/2hnoh iron rod with cap set for on angle point,
4. 8O6" 10' 57^VV for adistance ofOO.1O feet to an iron rod found for on oOg|a point,
5. S 680 39' 14" W for a distance of 602.93 feet to a 40d nail found in a tree for an angle point,
5. S 630 07' 34n W for a distance of 79.90 feet to a % inch iron rod with cap set for an angle point,
and
7. S 67' 11'04' W for a distance of 170.98 feet to an iron rod found for an ell comer in the east line
of called 8 13.09 acre tract, being also an ell comer in the east line of the herein described tract
and being the northwest comer of said 274.53 acre tract;
THENCE, with the east line of called 813.09 tract, the east line of the herein described tract and the west
line of said 274.53 acre tract, the following four (4) courses:
S1O°57 43~E for a distance of138J6 feet toaO iron rod found for an angle point,
»/ ���8/)0���
yvU~ ��/V�vD ~J
`L 6
812.99 ACRES FN. 614O
'
CI�RRDNH�LUSBOUNO/\RY APRIL y�
PBS&J JOB NO. 44O1SO.0O25O1
2. S 190 50' 45' E for a distance of 167.37 feet to an iron rod found for an angle point,
3. G21"O3 34^E for o distance of447O.O4 feet toa4Od nail found for an angle point, and
4. G22"O3'11^E for a distance of003.4S feet to the POINT {}F BEGINNING and containing
812.SS acres ofland.
Bearings are based on the Texas State Plane Coordinate Gvstern, Central Zone, NAD 1983
Convergence = 01 021'27'.
THE STATE OFTEXAS J
V KNOW ALL MEN BY THESE PRESENTS:
COUNTY {}FTRAVIS I
That |. William D.NarTicko Registered Professional Land Surveyor, do hereby certify that the
above description is true and correct to the beat of my knowledge and belief and that the property
described herein was determined by survey made on the ground during March, 2000 under '
diraobonand supervision.
'
WITNESS MY HAND AND SEAL ad Austin, Travis County, Texas this the Gmdamof April, 2OOO
A.D.
PBS&J
P.O. Box 162890 VVi|Uorn D. Warrick �
Austin, Texas 78716-2890 Registered Professional Land Surveyor
No. 4420- State ofTexas
'J" , o• � � 1. � �. _ 4 r-t :��"- s-..:'.-"� � '�''. � ►'�' � • -�... • � } = L-1
•\ \, ...J , ✓ � � .• /L� t r�,, '; � � ! Rti � -1r' =:fir. ���` ` _ �-
�'�7` \ ✓ `
ry
t n
T
� J
i � i• � t \ �\ t
_ c LAJ ice.
- J QD
Kel
i `-• r
m
N
r ♦ ! �... t I . \
oF
July 6, 2000
Mr. George Russell
City Manager
City Of Georgetown
133 East 8th Street
Georgetown, Texas 78627
Subject- Cimarron Hills PID Financing Feasibility Study
Dear George:
The Georgetown City Council has requested that we study and report on the financing feasibility of
a proposed Public improvement District ("PID") to be created within the City's extraterritorial
jurisdiction ("ETF). The results of our review and our financing recommendations are presented
below.
General;
PID's are defined areas within a City or its ETJ created by a City Council in response to property-
owner petition to provide additional services or infrastructure to that Particular area (pursuant to
Chapter 372, Local Government Code, as amended). While a PID is not a separate political
subdivision, it does allow for the provision of specific services or improvements without financial
obligation to the community as a whole,
ALse_ssments'.
Assessments can be imposed by a PID for two —general categories of benefits to property owners: (1)
On-going services (i.e. additional security or property maintenance), and (2) For the acquisition
and/or construction of certain infrastructure improvements. It is recommended that assessments be
billed simultaneously with an individual property's tax statement. Just as the PID would contract
with the entity responsible for preparing and mailing local tax bills, lenders would also be advised to
incorporate PID assessments into regularly escrowed funds for taxes and insurance. All future
property owners within the PID would be required to acknowledge their assumption of an
assessment liability simultaneous with the closing of any property within the PID.
PED Bonds- Infrastructure improvements eligible to be financed through a PID include: (1)
Landscaping; (2) Erection of fountains, distinctive lighting, and signs; (3) Acquiring, constructing,
improving, widening, narrowing, closing, or rerouting of sidewalks or of streets, any other roadways,
or their rights-of-way; (4) Construction or improvement of pedestrian malls; (5) Acquisition and
installation of pieces of art; (6) Acquisition, construction, or improvement of libraries; (7)
Acquisition, construction or improvement of off -street parking facilities; (8) Acquisition,
INVESTMENT BANKERS SiivcE 1946"
98 San Ja.inrP Blvd. -Suirf370*AuiYin, Teyai78701-40391,512-481-20OOo Fax 512-481-2010
LR
PAGE 2/8
AUG-03-00 10:SO FROM:McCALL PARKHURST & HORTON ID:SI2 472 0871 PAGE
construction, improvement or rerouting of mass transportation facilities; (9) Acquisition,
construction, or improvement of water, wastewater, or drainage facilities or improvements; (10)
Establishment or improvement of parks; (11) Acquisition, by purchase and otherwise, of Teal
property in connection with any authorized improvement; (12) Special supplemental services for
improvement and promotion of the PID, including services relating to advertising, promotion, health
and sanitation, water and wastewater, public safety, security, business recruitment, development,
recreation and cultural enhancement; and (13) Payment of expenses incurred in the establishment,
administration, and operation of the PID.
Such improvements may be financed either through the issuance of City Combination Tax and PID
Assessment Certificates of Obligation or through the issuance of PID Assessment Revenue Bonds.
Certificates of Obligation are the less costly and swifter means of financing PID improvements.
However, such financing is only advised for situations where the development itself offers
significant supplemental community benefits or where the developer has the ability to post an
irrevocable letter of credit or some other means of security to protect the City's own ability to
borrow. Since Certificates of Obligation involve a pledge of the City's full taxing authority,
appropriate steps should be taken to safeguard the City's financial exposure. Notwithstanding such
exposure, the goal in structuring this type of financing would be to ensure that assessment revenues
equal or exceed the related debt service so that the pledge of City taxing power would not have to be
triggered. This type of financing is not recommended far the proposed PIP.
PID Assessment Revenue Bonds would be the preferred method of financing for most PID
infrastructure projects, including Cimarron Hills. Such Bonds would be payable only from the
collection of assessments established within the boundaries of the PID and would nor pledge City tax
revenues as security in the event of a PID Revenue Bond default. As a result, the issuance of PED
Revenue Bonds would not in any way limit the City's ability or capacity to borrow for its own
purposes. While there can be no guarantee that the bond rating agencies would not imply a City
moral obligation in the event of a PID Revenue Bond default, such risk can be effectively mitigated
by imposing prudent restrictions on PID Revenue Bond issuance and through conservative PID
Bond structure.
Popksed Cimarron Hills PID.
Our review of the proposed Cimarron Hills development assumes that all related infrastructure
reimbursements are financed with PID Revenue Bonds, as described above. Based upon discussions
with potential underwriters and the primary bond rating agencies, the following safeguards are
recommended to ensure such Bonds are both marketable and structured conservatively.
Maximum Debt to Assessed Valuation 10%
Minimum Debt Service Reserve Fund At least I Times Maximum Annual Debt Service
Target Debt Service Coverage Ratio 1.5 Times
Additional Bonds Test 1.5 Times
Prior to the first issuance of the proposed PID's Bonds, we would recommend a Development and
Financing Agreement be devised which lays out the specific requirements for PID Bond issuance
and developer infrastructure reimbursement, including a requirement that such PID Bond issuance
should be sized by the City's Financial Advisor and that all amounts to be reimbursed should be
I
d0090 9 -S
3/8
AUG-03-00 10:S0 FROM:McCALL PARKHURST & HORTON ID:6I2 472 0871 PAGE
evidenced by an Engineer's certificate relating to the actual cost of reimbursable improvements. The
above requirements will secure the following goals: (1) Bonds will not be issued until development
hers occurred which adequately supports such Bonds; and (2) The developer essentially assumes the
financial risk of the project stalling in mid-development.
A Trustee is recommended to administer the receipt and investment of assessment receipts and to
manage the various funds established in connection with any financing. Any assessment
prepayments would be proposed to be field by the Trustee (escrowed) until outstanding PID Bonds
become callable — estimated to be 7 -10 years from the original date of sale.
We have attached as Schedule "I" a proposed PTD Revenue Bond issuance and developer
reimbursement timetable. The developer currently estimates platting 30 lots per quarter beginning in
4Q 2000. Home construction is expected to begin at the same Tate (30 per quarter) beginning in 4Q
2003, Final build-out, according to this Schedule, would occur sometime in 2008. Based upon this
rate of development, and using a full assessment of $3,400 per certificated lot, we believe the PID
could conservatively support the issuance of at least $10.735 million in PID Revenue Bonds by
2008. Please note that by 2008 it is projected that the PID would also have accumulated $1,425,654
in cash, over and above the required Debt Service Reserve amount. This projected cash balance
would result from the 1.5 times Debt Service Coverage ratio noted previously. In other words, the
assessments have been calculated to produce annual revenue which is 150% of the maximum PID
Bond debt service in any given year. This "excess" revenue will initially be transferred into a Debt
Service Reserve Fund for the protection of PID Bondholders, but should ultimately grow to levels
which permit the use of this cash to'buy-down'the overall amount of PID Bonds issued over time.
Schedule "I" was developed using local appraiser and appraisal district information on the relative
value of unplatted lots, platted lots, lots which have been platted and issued a Certificate of
Occupancy and, finally, golf course property. These relative values are important because it is
proposed that the Cimarron Hills PID have 14) separate classes of assessment. These classes have
been devised with two primary goals in mind: (1) To ensure minimal administrative burden to the
City, and (2) To offer a marketing advantage relative to the successful build-out of the PID. In that
the City is already involved in the lot platting and occupancy certification processes, no new
administrative reporting systems should be required to properly administer the different classes of
property within the PID. We have nevertheless included $30,000 per year in administrative costs
(billed by the City to the PID quarterly) in the cash flow model developed for Schedule "I". This
$30,000 per year is expected to be available to pay for such items as assessment collection, record
keeping and routine audits. The 'marketing advantage' mentioned above would owe to the relative
discount owners of land within the PID would receive on lots without completed homes.
As an indication of how the proposed Cimarron Hills PID would compare to similarly amenitzed
residential developments in the greater Austin area, we have provided below a list of comparable
total overlapping tax rates. Using a $3,400 maxii-num assessment, the Cimarron Hills PID would
have an equivalent total overlapping tax rate of $2.4912. Please note that in calculating the proposed
PID's total equivalent overlapping tax rate, it is assurned that an average home (including land
value) will be $600,000,
It
. 6—S
AJO x0go L7)
P111A 10, 0
4/6
AUG-03-00 10:S1 FROM:McCALL PARKHURST & HORTON ID:S12 472 0871
Group Average: $2,5719/$100 Valuation
PAGE S/S
As illustrated above, the proposed PID would have a total overlapping equivalent tax rate below the
group average and well-below the newer, master-planned developments listed above (shown in
bold). And while we consider this relative competitiveness to be important, our experience tells us
that other factors such as local quality of life, schools, utility rates, commuting distance and the
specific level of amenities and features offered with the development itself will tend to be more
important factors in the decision of where to build a home. We have not compared the proposed
development to competing projects with respect to the more qualitative factors listed above and are
not prepared to express any opinions on such matters.
Conclusion: PID's, as described above, can be a useful tool in a City's efforts to promote specific
types of construction in desired development corridors. PID's are also useful as a means of
encouraging new development to not only pay for its own infrastructure, but also as a tool to
promote higher development standards. Since PID's are simply extensions of an existing City
Council, potential control issues like those which often emerge with MUD's can be avoided.
Mindful of the above advantages, it should be understood that a PD) will require additional
administrative time and PID assessments should be established accordingly. In addition, we
reiterate that care should be taken to establish strict rules related to any proposed fiiture PID
financing because rating agencies expect an appropriate amount of due diligence to be exercised
even where City financial resources have not been pledged.
In our opinion, the proposed Cimarron Hills PID is structured in a manner which protects the City's
financial interests. as outlined above, and which should allow for prudent reimbursement of
infrastructure required for the responsible development of the project.
A C,
- . /V 0.
111\6�1
Tax Rate
Tax Rate
Subdivision
— $J$100
Subdivision
$/$100
Barton Creek
23252
River Place
2.8913
Buttercup Creek - Westside
2,4290
Rob Roy
2.7440
Canyon Creek
3,2360
Scofield Farms — Ridge
2.5885
Circle C
2.5104
Senna ffills
2.9690
Costa Bella
2.5388
Shepherds Mountain
2,5104
Courtyard
2,5104
Somerset at Westview
2.7282
Davenport Ranch
11640
Steiner Ranch
2.9026
Davis Springs
2.6207
Stone Canyon
2.8185
Forest Ridge
2,4915
Travis Country
2.5104
Grandview Hills
2.4902
Uplands
2.4595
Grew Hills
2,5104
Villages of Spicewood Enclave
2.2957
Jester Point 2
2,5104
Villages of Spicewood Forest
2.2957
LakePointe
3.5170
Western Oaks
2.5104
Lakeway
2.9810
Westminister Glen Estates
2.2892
Long Canyon
1.9653
Westview on Lake Austin
2.2140
River Oaks
2.2850
Wood Glen
2.4885
Group Average: $2,5719/$100 Valuation
PAGE S/S
As illustrated above, the proposed PID would have a total overlapping equivalent tax rate below the
group average and well-below the newer, master-planned developments listed above (shown in
bold). And while we consider this relative competitiveness to be important, our experience tells us
that other factors such as local quality of life, schools, utility rates, commuting distance and the
specific level of amenities and features offered with the development itself will tend to be more
important factors in the decision of where to build a home. We have not compared the proposed
development to competing projects with respect to the more qualitative factors listed above and are
not prepared to express any opinions on such matters.
Conclusion: PID's, as described above, can be a useful tool in a City's efforts to promote specific
types of construction in desired development corridors. PID's are also useful as a means of
encouraging new development to not only pay for its own infrastructure, but also as a tool to
promote higher development standards. Since PID's are simply extensions of an existing City
Council, potential control issues like those which often emerge with MUD's can be avoided.
Mindful of the above advantages, it should be understood that a PD) will require additional
administrative time and PID assessments should be established accordingly. In addition, we
reiterate that care should be taken to establish strict rules related to any proposed fiiture PID
financing because rating agencies expect an appropriate amount of due diligence to be exercised
even where City financial resources have not been pledged.
In our opinion, the proposed Cimarron Hills PID is structured in a manner which protects the City's
financial interests. as outlined above, and which should allow for prudent reimbursement of
infrastructure required for the responsible development of the project.
A C,
- . /V 0.
111\6�1
AUG-03-00 10:52 FROM:McCALL PARKHURST & HORTON ID:SI2 472 0871
C3 OX) r
In
in
00
cfl
n
C, (D
co
C
V3
1*0
U",
01
vy
to 61
10)
Q
<
�s
C't to t
- (-) 75
0 tZ
:r -U
0 cn
C,41
M
co
r-
m
o .0
< 0
'T 0
10 Z
V@1
,
Uj
w
D C, 'T
0 "
V4 a-'
Co
a)
a`)
00
C(i
Ln
r-
M
'CCcu
u; E
r hl
6V
to E
m c O
(11 V- cn
X
2 E cr ca
°° °S
M
ci 6
c
va Lfji
m =
.C4 Cn
8
Cq
4LY
C-
0 a)
fA
16 <
cr
m
B
;4.
C
C"
is 0
"= cn
ri
CL iL
0
zm
CC
n-
D
o
(D
m
as
E
CL
c: -
v,
16
10 0
CiLG fl. 0 03 (n 0 •fir
L'u
a
PAGE S/S
Go
CI4
I
1 * '_ ai
Estimated Cost Summary*
Water Quality /Detention Ponds $ 675,000
Street and Bridge Improvements and Related Drainage 9,440,000
Landscaping 5,440,000
Water and Wastewater Improvements /Capacity 11,890,000
TOTAL ESTIMATED COST SUMMARY $27,445,000
*Does not include costs of issuance and reserve funds which will be funded, as necessary, as a part
of each bond issue. All costs are estimates only and may be reallocated as determined by the PID,
as necessary. Costs represent estimated total improvement costs. The amount of such total
improvement costs to be financed by the PID will not exceed $17,500,000.
EXHIBIT "D"
METHOD OF ASSESSMENT
In accordance with Section 372.015, Local Government Code, as amended, the City
Council shall apportion the cost of an improvement to be assessed against property in an
improvement district. The apportionment shall be made on the basis of the special benefits
accruing to the property because of the improvement and the City has determined that
apportioning costs between classes of property determined by benefit and usage is the most fair
and reasonable method of "imposing equal shares of the costs on the property similarly
benefitted." The assessments shall be as follows:
Class A
Assessment
Platted lots with certificates of occupancy
Issued by the City $3,400.00 per lot
Class B
Assessment
Platted lots
$ 680.00 per lot
Class C
Assessment
Unplatted acreage
$ 99.73 per acre
Class D
Assessment
Golf Course and club facilities
$ 49.58 per acre
IOCA� / of
WILLIAM SON
COUNTY OLEIR.K
P. 0.
BOX is
TEXAS 786277
GEORGETOWN,
(512)
943-1513
----------------------------------
ISSUED TO:CITY
OF GEORGETOWN
--------------------------------
RECEIPT 4 027262
DATE 08/22/2000 TIME 02:06 PM
-------------------------------
''N'3T # )EC
TYPEPOS FEE
------------------------------
200s,00559-33-4 RESOLUT 16 39-00
iOfJi
j §, \§
ON ACCT 196 39.00
Total Payments: 39.00
Balance for 4 196
08/22/200i.-D -f--D2't-J6 PM 15276,00
THANK YOU
NANCY E. /ice ER C-2UNTY CLERK
Deputy: MILLER
CERTIFICATE FOR RESOLUTION 4 ?-Cc S
THE STATE OF TEXAS §
COUNTY OF WILLLAAISON §
CITY OF GEORGETOWN
The undersigned City Secretary of the City of Georgetown, Texas (the "City"), hereby certify
as follows:
1. The City Council of the City convened in REGULAR MEETRTG ON THE 8TH DAY
OF AUGUST, 2000, at the City Hall (the "Meeting"), and the roll was called of the duly constituted
officers and members of the City, to-wit:
MaryEllen Kersch, Mayor
Lee Bain - Mayor Pro Tem and Councilmember District 4
Llorente Navarrette - Councilmember District I
Clark Lyda - Councilmember District 2
Susan Hoyt - Councilmember District 3
Sam Pfiester - Councilmember District 5
Charles "Hoss" Burson - Councilmember District 6
Ferd Torn - Councilmember District 7
George Russell - City Manager
5 k '.,-\ P- t !Se r-re
Marianne Landers Banks - City Attorney
5k; 5coi 14,1
and all of the persons were present, except the following absentees: Lee -y13e,-., , thus constituting
a quorum. Whereupon, among other business, the following was transacted at the Meeting: a written
RESOLUTION MAKING FINDINGS AS TO THE FEASIBILITY AND DESIRABILITY OF
AN IMPROV'ETNIENT DISTRICT TO BE KNOWN AS THE CRVIARRON HILLS PUBLIC
L-VIPROVEIVIENT DISTRICT; INIAKING FINDINGS AS TO THE ADVISABILITY,
NATURE, AND ESTLNIATED COSTS OF THE PROPOSED INIPROVE-NIENTS AND THE
METHOD OF ASSESSNTIENT WITHIN THE BOUNDARIES OF THE DISTRICT;
AUTHORIZING THE DISTRICT AS A PUBLIC EVIPROVENIENT DISTRICT PURSUANT
TO CHAPTER 372, SUBCHAPTER B, OF THE LOCAL GOVERNMENT CODE;
ACCEPTING A FEASIBILITY REPORT; TNIAEINTG PROVISIONS RELATED THERETO
AND DECLARING AN EFFECTIVE DATE; AND PROVIDING FOR A SAVINGS
CLAUSE
was duly introduced for the consideration of the City Council. It was then duly moved and seconded
that the Resolution be passed on first reading; and, after due discussion, said motion carrying with it
the passage of the Resolution, prevailed and carried by the following vote:
following
C- -R.
AYES: S7
NOES: 0
2. A true, full and correct copy of the Resolution passed at the Meetings described in the
above and foregoing paragraphs is attached to and follows this Certificate; that the Resolution has
been duly recorded in the City Council's minutes of the Meetings; that the above and foregoing
paragraphs are a true, full and correct excerpt from the City Council's minutes of the Meeting
pertaining to the passage of the Resolution; that the persons named in the above and foregoing
paragraphs are the duly chosen, qualified and acting officers and members of the City Council as
indicated therein; that each of the officers and members of the City Council was duly and sufficiently
notified officially and personally, in advance, of the time, place and purpose of the Meetings, and that
the Resolution would be introduced and considered for passage at the Meetings, and each of the
officers and members consented, in advance, to the holding of the Meetings for such purpose, and that
the Meetings were open to the public and public notice of the time, place and purpose of the meeting
was given, all as required by Chapter 551, Texas Government Code.
CNARRONMLLSPIa. C—d..R. 2
SIGNED AND SEALED
CIMARRONMLLSPID: C-ti..R.
3
MaryEllen Kersch
Mayor