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09-11-2001 (City Council) Agenda Packet NOTICE OF MEETING WYLIE CITY COUNCIL & PARKS & RECREATION FACILITIES DEVELOPMENT COPORATION Tuesday, September 11, 2001 6:00 p.m. (Please note separate Library Event* at 5:15 p.m.) Wylie Municipal Complex—Council Chambers/Council Conference Room 2000 State Highway 78 North Wylie, Texas 75098 Action Taken PROCLAMATIONS& R 81nI ' ..... ... ....... .. ......... .......... EEBEEEE HOSTS(Helping One Student To Succeed)Week Proclamation. AO mEatEe�. t#?tasr�ar�i�.�;a�sen�. ex�da td�r Yo 6�raui�e b�the Cs��o�ae�€araI €I� Ee[c1.#.� z�: A. Approval of the Minutes from the August 7, Special Meeting and August 28, 2001 Regular Meeting. 1. Consider and act upon approval of an ordinance authorizing the issuance of S4,500,000 General Obligation Bonds, Series 2001, dated September 1, 2001 and all other matters related thereto. 2. Consider and act upon approval of an Ordinance authorizing the issuance of $500,000 Tax Notes,Series 2001,dated September 1,2001 and all other matters related thereto. YCOt CI .:. ....... la. Consider and act upon approval of the FY2002 4B Budget, authorizing expenditures for the Community Services Facility Capital Improvement Plan. rARMARECREMOSTACILITIESMIEMMENECORPOMMIGNiimmmo Budget 3. Consider and act upon approval of the FY2002 4B Budget and Community Service Facilities Capital Improvement Plan. 4. Consider and act upon approval of an Ordinance amending the budget for Fiscal Year 2001,beginning October 1,2000 and ending September 30,2001; repealing all conflicting ordinances;containing a severability clause; and providing for an effective date. 5. Hold a public hearing and consider and act upon approval of an Ordinance of the City of Wylie,adopting a budget and appropriating resources for the fiscal year 2002,beginning October 1,2001 and ending September 30,2002. 6. Consider and act upon approval of an Ordinance fixing the tax rate/levy for 2001 and for the Fiscal Year 2001-2002 budget. ACTIONMmg `''':'``: > >: > Appointments 7. Consider and act upon appointing the "Task Force Advisory Committee" for the Parks and Recreation Open Space and Master Plan. Planning Items 8. Consider and act upon a Preliminary Plat for the Wylie United Methodist Church Addition, being that 15.00 acre tract described in deed to the Wylie United Methodist Church recorded in Volume 7386, Page 2560 of the Real Property Records of Collin County, Texas, and being situated in the William Patterson Survey, Abstract No. 716, City of Wylie,Collin County,Texas. Public Hearing 9. Hold a Public Hearing to consider and act upon approval of a change in zoning from Single Family Residential — 2 (SF-2) to Townhouse (TH/15), for Lots 1 and 2A of the Russell No. 1 Addition and Lots 39A and 39D,Block 8 of the Brown and Burns Addition, being situated in the S.B. Shelby Survey,Abstract No. 820, City of Wylie, Collin County, Texas. (Zoning Case No. 2001-09 Approval of Ordinances 10. Consider and act upon an ordinance annexing all of a certain 49.277 acre tract of land out of the Allen Atterbury Survey,Abstract No. 23 and the Aaron West Survey,Abstract No. 979, and a certain 1.041 acre tract of alnd out of the Aaron West Survey, Abstract No. 979,located east of F.M. 544 and north of Wheelis Road. 11. Consider and act upon approval of an ordinance imposing interim Impact Fees, establishing a collection date, establishing a date to call a public hearing to amend the Impact Fees,and providing for an expiration date. 12. Hold a public hearing to consider and act upon an ordinance modifying the participation policies in the Subdivision Regulations. iike*DINWOrORIMANCESi-iVintAiiVAPTICOMPROVIdkititti*OltiVitS :i :::+:.::.:... :::. ::. : :: ::.i'::::::'::::: }... ...:. �' ..'y[�}�:' ':.�yy::isy.�+{�{'{:�:.I:.1IE::::tiv3 �:'C'1:i��1.Y�.r�.i1��:.� tr� ;Lli:Ol...........................................::::::v...:.:::::::::...... Page 2of3 Update by City Engineer,Chris Hoisted,regarding the Kirby/Stone Alignment. In addition to any specifically identified Executive Sessions, Council may convene into Executive Session at any point during the open meeting to discuss any item posted on this agenda. The Open Meetings Act provides specific exceptions that require that a meeting be open. Should Council elect to convene into Executive Session, the sections of the act authorizing the closed session will be identified and announced. Any subsequent action,as a result of this Executive Session,will be taken and recorded in open session. I certify that this Notice of Meeting was posted on this day of ,2001 at 5:00 p.m. as required by law in accordance with Section 551.042 of the Texas Government Code and that the appropriate news media contacted. As a courtesy,this agenda is also posted to the City of Wylie Website at wt s.ci.wNvlic.tx.us City Secretary Date Notice Removed The Wylie Municipal Complex is Wheelchair accessible. Sign interpretation or other special assistance for disabled attendees must be requested 48 hours in advance by contacting the City Secretary's office at 972/442-8100 or TD 972/442-8170. Page 3 of 3 MINUTES Wylie City Council Tuesday, August 7, 2001 Wylie Municipal Complex—Council Chambers 2000 State Highway 78 North Council Present:Mayor John Mondy, Councilman Joel Scott, Councilwoman Reta Allen, Councilman Eric Hogue, Councilman J.C. Worley, and Councilman Chris Trout. Councilman Merrill Young was absent. Staff Present: Anthony Johnson, City Manager; Mindy Manson, Assistant City Manager; Brady Snellgrove, Finance Director and Barbara Salinas,City Secretary. 1. Consider and Act Upon Accepting the proposed Ad Valorem Tax Rate and Calculation of an Effective Tax Rate for Fiscal Year 2001-2002. Councilman Scott made a motion to accept the proposed Ad Valorem Tax Rate and Calculation of an Effective Tax Rate for Fiscal Year 2001-2002 of$0.72 per$100 and to set the Public Hearing for August 28, 2001 at 7:00 p.m. at the Wylie Municipal Complex, 2000 State Highway 78 North, Wylie, Texas, in order to receive pubic comment regarding the proposed tax rate. Councilman Worley seconded the motion. A vote was taken and the motion was approved, 6-0. Councilman Young absent. There was no participation. ice + .. With no further business to come before Council,the meeting was adjourned at 6:04 p.m. John Mondy,Mayor ATTEST: Barbara A Salinas,City Secretary Minutes of August 7,2001 Wylie City Council Page 1 MINUTES Wylie City Council Tuesday, August 28, 2001 Wylie Municipal Complex— Council Chambers 2000 State Highway 78 North .:::::..... Council Present: Mayor John Mondy, Councilman Joel Scott, Councilwoman Reta Allen, Councilman Merrill Young, Councilman J.C. Worley and Councilman Chris Trout. Councilman Eric Hogue had an excused absence. Staff Present: Anthony Johnson, City Manager;Mindy Manson, Assistant City Manager; Brady Snellgrove, Finance Director,Claude Thompson.Planner and Barbara Salinas, City Secretary. Mr. Chuck Trimble, representing the Shiloh Baptist Church was present to provide the invocation and Councilman Trout was asked to lead the Pledge of Allegiance. !agent XGXROA.iii!nil:i:iiiiiiiiiiiiiiiiMdiiiMMNBEN:MiggigiMiNNMMMMEEEM!.MMEM:::.WEMMza!:::m. A. Approval of the Minutes from the Meetings of August 13 and August 14,2001. Councilman Trout made a motion to approve the Minutes from the August 13 and August 14, 2001 City Council Meetings. Councilman Worley seconded the motion. A vote was taken and the motion was approved, 6-0. Councilman Hogue was absent. 1`- # . , CE a. 4 AND ACTW N 1. Consider and act upon approval of a Replat of Lot 1, Block A, Century Business Park Addition, being an 8.618 acre tract according to the plat recorded in Volume K,Page 777 of the Map Records of Collin County,Texas,and being also a part of that tract described in a deed to Heatley-Moist,Inc. recorded in Clerk's File No. 96-0000740 of the Deed Records of Collin County, Texas, being situated in the Duke Strickland Survey,Abstract No.841,City of Wylie,Collin County,Texas. Mr. Claude Thompson,Planner,addressed this item providing Council with a brief background on this request. Mr. Thomson stated that at the August 7, 2001 meeting of the Planning and Zoning Commission, they voted 7-0 to approve the replat of Lot 1,Block A of the Century Business Park and that staff also recommends approval. There was some discussion regarding the future use of the property fronting State Highway 78. Mr. Thompson explained that any future use would be addressed during the site plan process. Councilman Worley made a motion to approve the Replat of Lot 1,Block A, Century Business Park Addition,being an 8.618 acre tract according to the plat recorded in Volume K, Page 777 of the Map Records of Collin County, Texas, and being also a part of that tract described in a deed to Heatley-Moist, Inc. recorded in Clerk's File No. 96- 0000740 of the Deed Records of Collin County. Texas,being situated in the Duke Strickland Survey, Abstract No. 841, City of Wylie, Collin County, Texas. Councilman Trout seconded the motion. A vote was taken and the motion was approved, 6-0. Councilman Hogue was absent. 2. Conduct a public hearing on the proposed tax rate for fiscal year 2001-2002 and provide taxpayers an opportunity to express their views on the tax rate. At the end of the hearing, the City Council must set and announce the date, time and place of the meeting at which it will vote on the final proposed tax rate. Minutes of August 28,2001 Wylie City Council Page 1 Mr. Brady Snellgrove, Finance Director, provided Council with a brief background of this item. He stated that the purpose of the public hearing is to provide taxpayers an opportunity to express their views on the proposed tax rate. The proposed budget is based on the tax rate of$0.72 per$100 valuation,which is down.5 from the current rate. The Mayor then opened the Public Hearing and asked that anyone wishing to speak either in favor or opposition of the proposed tax rate, to please come forward and state their name and address for the record, and limit their comments to three minutes. With no response the Mayor then closed the public hearing. Councilman Young made a motion to set the date, time and place of the meeting for Tuesday, September 11, 2001 at 6:00 p.m. to be held in the Council Chambers of the Wylie Municipal Complex, 2000 State Highway 78, Wylie, Texas,at which time the Council will vote on the final proposed tax rate. Councilman Worley seconded the motion. A vote was taken and the motion was approved. 6-0, Councilman Hogue was absent. 3. Consider and act upon an ordinance to increase water utility rates sufficient to pass through the wholesale price increase from the North Texas Municipal Water District. Mr. Anthony Johnson, City Manager addressed this item, providing Council a brief background on the proposed ordinance. Mr. Johnson stated that the ordinance to increase water utility rates was necessary due to the increase from the city's provider, the North Texas Municipal Water District. He stated that current rates have remained unchanged for nine years. He stated that based on an average usage of 8,000 gallons per month, residents would see an increase of approximately $.48 and commercial customers an estimated $.63 per month based on 15,000 gallons of consumption. Rates would become effective October 1, 2001 and first appear on the November 2001 customer billing cycle. He concluded that staff is recommending approval of the increase. Councilman Trout made a motion to approve the ordinance to increase water utility rates sufficient to pass through the wholesale price increase from the North Texas Municipal Water District. Councilman Worley seconded the motion. A vote was taken and the motion was approved, 6-0. Councilman Hogue was absent. The City Secretary read the Ordinance caption for Ordinance No. 2001-36 into the record. ORDINANCE NO.2001-36. AN ORDINANCE OF THE CITY OF WYLIE,TEXAS,ESTABLISHING WATER RATES FOR THE CITY OF WYLIE, AMENDING SECTION 1.02 OF APPENDIX A OF THE WYLIE CITY CODE (THEREBY AMENDING ORDINANCE 98-16) REPEALING PORTIONS OF ALL CONFLICTING ORDINANCES;CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. There was no participation At 6:15 the Mayor called for a five-minute recess before the scheduled Work Session. .................................................................................................................................................................................................................................................. Discuss proposed revisions to the Official Zoning Map. Mr. Claude Thompson, Planner, provided a brief introduction of the work session subject then introduced Mr. Ray Stanland, consultant. Mr. Stanland briefly outlined the process of the Planning and Zoning Commission and stated that they are prepared to schedule public hearings, after input from the Council. Mr. Stanland then presented the proposed zoning map and detailed the proposed zoning transition policies. He stated the intent and purpose of the transition policies, stating that said polices are to provide guidance in recommending new districts. Minutes of August 28,2001 Wylie City Council Page 2 Mr. Stanland detailed the transition of the Existing Zoning Districts to the New Zoning Districts, describing the transition and intent for each of the following districts. •Planned Development(PD) Remains the same with exceptions to architectural design standards depending on status of building permit approval prior to the adoption of the ordinance and map. •Agric ltural Zoning(AG) Remains the same,Mobile Home District nt.;chaxlge . •Multifamily(MF) Remains the same. •Two Family(2F)an€l Sung le Famil Attached(SFA) ansiTrtion to To ouse.(THJ!S) g y •Single Family 1 (SF I) Transition to Single Family 10 (SF10-19) •Single Fa�rnly 2(SF 2)and Single Fa y 3(S ) 'ransit oa to She F fitly 8 5(SF&5/l7) Mr. Stanland stated that all existing Public Districts would be changed to the most appropriate new district to accommodate its existing use and the character of the surrounding development or in the case of vacant land, zoning. Existing nonresidential districts will be transitioned based on the comprehensive plan as follows: •Retail(R);Businessl (B1)and Business 2 (B2) Neighborhood Service (NS) where Comp Plan indicates Village Centers. Retail(R),Fl i irtess (B1)andBusiness(B2) Corridi r Commercial(CC)along$fpl and FM 44; pt:.at their intersections •Retails(R);Business 1 (B1)and Business 2 (B2) Community Retail (CR) where the major node of retail development is occurring at the US78 and FM544 intersection. • lndttsl (I).qr to Bttslne�s �irrrter (�C) tinder'the next/ ordinance where called r m tl Comp Plan. Where industrial toning within neighborht ; areas and is underdevelopment,the+Comp Plan would d erm the new zoning; district Mere the industrial z mg ;is already developed consideration would be given too transit onmg to the n..ew induslnal district or another nonresidential districts depending on the nature and extent the existing industrial uses, Mr. Stanland then described and pointed out on the zoning map the areas where these policies cannot be applied because of existing lane use, existing zoning and Comp Plan. Transition recommendations were made with consideration of the best fit with the Comp Plan, taking into account the existing development and the desire to minimize negative impacts on the property owners. There was considerable discussion regarding these specific areas and recommendations and suggestions for the transition process. Mr. Claude Thompson concluded by stating that a timeline, including the scheduling of Public Hearings, could allow adoption by the Council by December 2001, provided there are no issues. Mr. Thompson stated that staff would schedule the public hearings in order to move forward with the adoption process. Minutes of August 28,2001 Wylie City Council Page 3 With no further business,the meeting was then adjourned at 7:40 p.m. John Mondy,Mayor ATTEST: Barbara A Salinas,City Secretary Minutes of August 28,2001 Wylie City Council Page 4 WYLIE CITY COUNCIL AGENDA ITEM NO. I- September 11, 2001 Issue Consider and act upon approval of an Ordinance authorizing the issuance of $4,500,000 General Obligation Bonds, Series 2001, dated September 1, 2001 and all other matters related thereto. Background The City is issuing $4,500,000 of the $17,940,000 in general obligation bonds authorized by the election held May 8, 1999. The bonds will be utilized for street improvements. The bids for Bonds will be publicly opened and read at the offices of the Financial Advisor, at 11:30 a.m. CDT, Tuesday, September 11, 2001. The bonds are being sold in one block on an "All or None" basis. The sale of the Bonds will be awarded to the bidder making a bid that conforms to the Bidding Instructions and which produces the lowest True Interest Cost rate to the City. The bidders on municipal bonds are typically financial institutions or groups that intend to retail the bond to institutions or individual investors. The City's Financial Advisor, First Southwest Company, will present the results of the bidding at the Council meeting on September 11, 2001. Other Considerations The City Council can take action to award the Bonds or reject all bids at this meeting. If the bonds are awarded, the Council will need to adopt an ordinance authorizing the Bonds and approving the Official Statement (the Ordinance). A Good Faith Deposit of $90,000 will be required from the successful bidder. Financial Consideration The debt service requirements for the new bonds will be funded from property taxes. The average annual debt service payment of the twenty year amortization of the $4,500,000 in new bonds is estimated to be $370,170. Board/Commission Recommendations N/A Staff Recommendations Staff recommends that the City Council adopt the proposed ordinance authorizing the issuance of $4,500,000 General Obligation Bonds, Series 2001, per the recommendation of the First Southwest Company. Attachments Ordinance Pre ed by Review by finance City Mana e proval ORDINANCE NO. AN ORDINANCE authorizing the issuance of "CITY OF WYLIE, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2001"; specifying the terms and features of said bonds; levying a continuing direct annual ad valorem tax for the payment of said bonds; and resolving other matters incident and related to the issuance, sale, payment and delivery of said bonds, including the approval and execution of a Paying Agent/Registrar Agreement and the approval and distribution of an Official Statement; and providing an effective date. WHEREAS, the City Council of the City of Wylie, Texas hereby finds and determines that $4,500,000 in principal amount of general obligation bonds approved and authorized to be issued at an election held May 1, 1999 should be issued and sold at this time; a summary of the general obligation bonds authorized at said election, the principal amounts authorized, amounts heretofore issued, amounts being issued pursuant to this ordinance and amounts remaining to be issued subsequent hereto being as follows: Amounts Amounts Heretofore Amounts Unissued Purpose Authorized Issued Being Issued Balance Streets $15,910,000 $3,600,000 $4,500,000 $7,810,000 Drainage 1,280,000 850,000 -0- 430,000 AND WHEREAS, the Council hereby reserves and retains the right to issue the balance of unissued bonds approved at said election in one or more installments when, in the judgment of the Council, funds are needed to accomplish the purposes for which such bonds were voted; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. Authorization- Designation- Principal Amount- Purpose. General obligation bonds of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $4,500,000 to be designated and bear the title "CITY OF WYLIE, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2001" (hereinafter referred to as the "Bonds"), for permanent public improvements and public purposes, to wit: street improvements, including drainage, curb, gutters, sidewalks, landscaping, traffic signalization and utility line relocation and the acquisition of land and right-of-way therefor, in accordance with authority conferred at the aforesaid election and in conformity with the Constitution and laws of the State of Texas, including V.T.C.A., Government Code, Section 1331.052. SECTION 2. Fully Registered Obligations — Bond Date — Authorized Denominations-Stated Maturities-Interest Rates. The Bonds shall be issued as fully registered obligations only, shall be dated September 1, 2001 (the "Bond Date"), shall be in denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and shall become due and payable on February 15 in each of the years and in principal amounts (the "Stated Maturities") in accordance with the following schedule: 45077343.1 -1- Year of Principal Interest Stated Maturity Amount Rate(s) 2002 $ 135,000 % 2003 135,000 % 2004 140,000 % 2005 150,000 % 2006 160,000 % 2007 165,000 % 2008 175,000 2009 185,000 % 2010 195,000 % 2011 210,000 % 2012 220,000 % 2013 230,000 2014 245,000 % 2015 260,000 % 2016 275,000 cyo 2017 290,000 % 2018 305,000 % 2019 325,000 % 2020 340,000 % 2021 360,000 % The Bonds shall bear interest on the unpaid principal amounts from the Bond Date at the rate(s) per annum shown above in this Section (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Bonds shall be payable on February 15 and August 15 in each year, commencing February 15, 2002. SECTION 3. Terms of Payment-Paying Agent/Registrar. The principal of, premium, if any, and the interest on the Bonds, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter called the "Holders") appearing on the registration and transfer books maintained by the Paying Agent/Registrar, and such payment shall be in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of The Chase Manhattan Bank to serve as Paying Agent/Registrar for the Bonds is hereby approved and confirmed. Books and records relating to the registration, payment, transfer and exchange of the Bonds (the "Security Register") shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, as provided herein and in accordance with the terms and provisions of a "Paying Agent/ Registrar Agreement", substantially in the form attached hereto as Exhibit A, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor and City Secretary are authorized to execute and deliver such Agreement in connection with the delivery of the Bonds. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Bonds are paid and discharged, and any successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice 45077343.1 -2- thereof to be sent to each Holder by United States Mail, first class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Bonds shall be payable at the Stated Maturities or the redemption thereof, only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its designated offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest on the Bonds shall be paid to the Holders whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the City where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. In the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/ Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4. Redemption. (a) Optional Redemption. The Bonds having Stated Maturities on and after February 15, 2012, shall be subject to redemption prior to maturity, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2011 or on any date thereafter at the redemption price of par plus accrued interest to the date of redemption. At least forty-five (45) days prior to a redemption date for the Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of the decision to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date of redemption therefor. The decision of the City to exercise the right to redeem Bonds shall be entered in the minutes of the governing body of the City. (b) Mandatory Redemption. The Bonds having Stated Maturities of February 15„ 20 , February 15, 20_ and February 15, 20 (the "Term Bonds") shall be subject to mandatory redemption in part prior to maturity at the redemption price of par and accrued interest to the date of redemption on the respective dates and in principal amounts as follows: 45077343.1 -3- Term Bonds due February 15, 20 Term Bonds due February 15, 20 Redemption Date Principal Amount Redemption Date Principal Amount February 15, 20 $ ,000 February 15, 20 $ ,000 February 15, 20 $ ,000 February 15, 20 $ ,000 Term Bonds due February 15, 20 Redemption Date Principal Amount February 15, 20 $ ,000 February 15, 20 $ ,000 August 1, 20 $ ,000 Approximately forty-five (45) days prior to each redemption date specified above the Term Bonds are to be mandatorily redeemed, the Paying Agent/Registrar shall select by lot the numbers of the Term Bonds within the applicable Stated Maturity to be redeemed on the next following February 15 from moneys set aside for that purpose in the Interest and Sinking Fund (as hereinafter defined). Any Term Bond not selected for prior redemption shall be paid on the date of their Stated Maturity. The principal amount of the Term Bonds for a Stated Maturity required to be redeemed pursuant to the operation of such mandatory redemption provisions may be reduced, at the option of the City, by the principal amount of Term Bonds of like Stated Maturity which, at least 50 days prior to a mandatory redemption date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions set forth in paragraph(a) of this Section and not theretofore credited against a mandatory redemption requirement. (c) Selection of Bonds for Redemption. If less than all Outstanding Bonds of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall treat such Bonds as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bonds by $5,000 and shall select the Bonds, or principal amount thereof, to be redeemed within such Stated Maturity by lot. (d) Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by United States Mail, first class postage prepaid, in the name of the City and at the City's expense, to each Holder of a Bond to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the 45077343.1 -4- redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer Office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to prior redemption, and has been called for redemption, and notice of redemption thereof has been duly given as hereinabove provided, such Bond (or the principal amount thereof to be redeemed) shall become due and payable and interest thereon shall cease to accrue from and after the redemption date therefor; provided moneys sufficient for the payment of such Bond (or of the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar. SECTION 5. Registration - Transfer - Exchange of Bonds-Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each and every owner of the Bonds issued under and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Bond may be transferred or exchanged for Bonds of other authorized denominations by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender of any Bond (other than the single Initial Bond hereinafter referenced) for transfer at the Designated Payment/Transfer Office of the Paying Agent/Registrar, the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Bonds of authorized denominations and having the same Stated Maturity and of a like aggregate principal amount as the Bond or Bonds surrendered for transfer. At the option of the Holder, Bonds (other than the single Initial Bond hereinafter referenced) may be exchanged for other Bonds of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the Designated Payment/Transfer Office of the Paying Agent/Registrar. Whenever any Bonds are surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Bonds to the Holder requesting the exchange. All Bonds issued in any transfer or exchange of Bonds shall be delivered to the Holders at the Designated Payment/Transfer Office of the Paying Agent/Registrar or sent by United States Mail, first class, postage prepaid to the Holders, and, upon the registration and delivery thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Bonds surrendered in such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Bonds cancelled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Bonds," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Bond or Bonds registered and delivered in 45077343.1 -5- the exchange or transfer therefor. Additionally, the term "Predecessor Bonds" shall include any mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued, registered, and delivered in lieu thereof pursuant to the provisions of Section 11 hereof and such new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. Neither the City nor the Paying Agent/Registrar shall be required to issue or transfer to an assignee of a Holder any Bond called for redemption, in whole or in part, within 45 days of the date fixed for the redemption of such Bond; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond called for redemption in part. SECTION 6. Book-Entry Only Transfers and Transactions. Notwithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange of the Bonds, the City hereby approves and authorizes the use of "Book-Entry Only" securities clearance, settlement and transfer system provided by The Depository Trust Company (DTC), a limited purpose trust company organized under the laws of the State of New York, in accordance with the operational arrangements referenced in the Blanket Issuer Letter of Representations, by and between the City and DTC (the "Depository Agreement"). Pursuant to the Depository Agreement and the rules of DTC, the Bonds shall be deposited with DTC who shall hold said Bonds for its participants (the "DTC Participants"). While the Bonds are held by DTC under the Depository Agreement, the Holder of the Bonds on the Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Bond (the "Beneficial Owners") being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Bonds or otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the City determines that DTC is incapable of properly discharging its duties as securities depository for the Bonds, the City covenants and agrees with the Holders of the Bonds to cause Bonds to be printed in definitive form and provide for the Bond certificates to be issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Bonds in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying Agent/Registrar and payment of such Bonds shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. SECTION 7. Execution - Registration. The Bonds shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who are or were the proper officers of the City on the Bond Date shall be deemed to be duly executed on behalf of the City, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Bonds to the initial purchaser(s) and with respect to Bonds delivered in subsequent exchanges and transfers, all as authorized and provided in V.T.C.A., Government Code, Chapter 1201. No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 9C, manually executed by the Comptroller of Public 45077343.1 -6- Accounts of the State of Texas, or his duly authorized agent, or a certificate of registration substantially in the form provided in Section 9D, manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such certificate duly signed upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly certified, registered, and delivered. SECTION 8. Initial Bond(s). The Bonds herein authorized shall be initially issued either (i) as a single fully registered bond in the total principal amount of $4,500,000 with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1, or (ii) as multiple fully registered bonds, being one bondfor each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the "Initial Bond(s)") and, in either case, the Initial Bond(s) shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Bond(s) shall be the Bonds submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the Initial Bond(s), the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Bond(s) delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 9. Forms. A. Forms Generally. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends in the event the Bonds, or any maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the City or determined by the officers executing such Bonds as evidenced by their execution. Any portion of the text of any Bonds may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The definitive Bonds and the Initial Bond(s) shall be printed, lithographed, or engraved, typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined by the officers executing such Bonds as evidenced by their execution thereof. 45077343.1 -7- B. Form of Definitive Bond. REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF WYLIE, TEXAS GENERAL OBLIGATION BOND, SERIES 2001 Bond Date: Interest Rate: Stated Maturity: CUSIP NO: September 1, 2001 Registered Owner: Principal Amount: DOLLARS The City of Wylie (hereinafter referred to as the "City"), a body corporate and political subdivision in the County of Collin, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above the Principal Amount hereinabove stated (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from the Bond Date at the per annum rate of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 15 and August 15 in each year, commencing February 15, 2002. Principal of this Bond is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the Designated Payment/Transfer Office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor; provided, however, while this Bond is registered to Cede & Co., the payment of principal upon a partial redemption of the principal amount hereof may be accomplished without presentation and surrender of this Bond. Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. This Bond is one of the series specified in its title issued in the aggregate principal amount of $4,500,000 (herein referred to as the "Bonds") for permanent public improvements and public purposes, to wit: street improvements, including drainage, curb, gutters, sidewalks, landscaping, traffic signalization and utility line relocation and the acquisition of land and right- of-way therefor, under and in strict conformity with the Constitution and laws of the State of Texas and pursuant to an Ordinance adopted by the City Council of the City (herein referred to as the "Ordinance"). 45077343.1 -8- The Bonds maturing on the date hereinafter identified (the "Term Bonds") are subject to mandatory redemption prior to maturity with funds on deposit in the Interest and Sinking Fund established and maintained for the payment thereof in the Ordinance, and shall be redeemed in part prior to maturity at the price of par and accrued interest thereon to the date of redemption, and without premium, on the date and in the principal amount as follows: Term Bonds due February 15, 20 Term Bonds due February 15, 20 Redemption Date Principal Amount Redemption Date Principal Amount February 15, 20 $ ,000 February 15, 20 $ ,000 February 15, 20 $ ,000 February 15, 20 $ ,000 Term Bonds due February 15, 20 Redemption Date Principal Amount February 15, 20 $ ,000 February 15, 20 $ ,000 August 1, 20 $ ,000 The particular Term Bonds of a stated maturity to be redeemed on each redemption date shall be chosen by lot by the Paying Agent/Registrar; provided, however, that the principal amount of Term Bonds for a stated maturity required to be redeemed pursuant to the operation of such mandatory redemption provisions may be reduced, at the option of the City, by the principal amount of Term Bonds of like stated maturity which, at least 50 days prior to a mandatory redemption date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions appearing below and not theretofore credited against a mandatory redemption requirement. The Bonds maturing on and after February 15, 2012, may be redeemed prior to their Stated Maturities, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2011, or on any date thereafter, at the redemption price of par, together with accrued interest to the date of redemption. At least thirty days prior to the date fixed for any redemption of Bonds, the City shall cause a written notice of such redemption to be sent by United States Mail, first class postage prepaid, to the registered owners of each Bond to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Ordinance. If a Bond (or any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption date such Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date therefor, provided moneys for the payment of the redemption price and the interest on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar. 45077343.1 -9- In the event a portion of the principal amount of a Bond is to be redeemed and the registered owner is someone other than Cede & Co., payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided by the Ordinance for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. If a Bond is selected for redemption, in whole or in part, the City and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of the registered owner within 45 days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the registered owner of the unredeemed balance of a Bond redeemed in part. The Bonds are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City. Reference is hereby made to the Ordinance, a copy of which is on file in the Designated Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the owner or holder of this Bond by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be discharged at or prior to its maturity or redemption, and deemed to be no longer Outstanding thereunder; and for other terms and provisions contained therein. Capitalized terms used herein have the meanings assigned in the Ordinance. This Bond, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the Designated Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered owner whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Bond as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. 45077343.1 -10- It is hereby certified, recited, represented and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Bonds is duly authorized by law; that all acts, conditions and things required to exist and be done precedent to and in the issuance of the Bonds to render the same lawful and valid obligations of the City have been properly done, have happened and have been performed in regular and due time, form and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Bonds do not exceed any Constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Bonds by the levy of a tax as aforestated. In case any provision in this Bond shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the City has caused this Bond to be duly executed under the official seal of the City as of the Bond Date. CITY OF WYLIE, TEXAS Mayor COUNTERSIGNED: City Secretary (SEAL) 45077343.1 -11- C. Form of Registration Certificate of Comptroller of Public Accounts to appear on Initial Bond(s) only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER ) OF PUBLIC ACCOUNTS ) REGISTER NO. THE STATE OF TEXAS ) I HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this Comptroller of Public Accounts of the State of Texas (SEAL) *NOTE TO PRINTER: Do Not Print on Definitive Bonds D. Form of Certificate of Paying Agent/Registrar to appear on Definitive Bonds only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued and registered under the provisions of the within-mentioned Ordinance; the bond or bonds of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. The designated offices of the Paying Agent/Registrar in Dallas, Texas is the "Designated Payment/Transfer Office"for this Bond. THE CHASE MANHATTAN BANK, as Paying Agent/Registrar Registration date: By: Authorized Signature 45077343.1 -12- E. Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) (Social Security or other identifying number: ) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints afomey to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the Signature guaranteed: name of the registered owner as it appears on the face of the within Bond in every particular. The Initial Bond(s) shall be in the form set forth in paragraph B of this Section, except that the form of the single fully registered Initial Bond shall be modified as follows: (i) immediately under the name of the bond the headings "Interest Rate " and "Stated Maturity " shall both be omitted. (ii) Paragraph one shall read as follows: Registered Owner: Principal Amount: DOLLARS The City of Wylie (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Collin, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount hereinabove stated on February 15 in each of the years and in principal installments in accordance with the following schedule: YEAR OF PRINCIPAL INTEREST MATURITY INSTALLMENTS RATE (Information to be inserted from schedule in Section 2 hereof). (or so much principal thereof as shall not have been prepaid prior to maturity) and to pay interest on the unpaid Principal Amount hereof from the Bond Date at the per annum rates of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 15 and August 15 in each year, commencing February 15, 2002. Principal installments of this Bond are payable in the year of maturity or on a prepayment date to the registered owner hereof by The Chase Manhattan Bank (the "Paying Agent/Registrar"), upon its presentation and surrender, at its designated offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest is payable to the registered owner of this Bond whose name appears on the "Security Register" maintained by the Paying Agent/Registrar 45077343.1 -13- at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SECTION 10. Levy of Taxes. To provide for the payment of the "Debt Service Requirements" of the Bonds, being (i) the interest on the Bonds and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount is the greater), there is hereby levied, and there shall be annually assessed and collected in due time, form, and manner, a tax on all taxable property in the City, within the limitations prescribed by law, and such tax hereby levied on each one hundred dollars' valuation of taxable property in the City for the Debt Service Requirements of the Bonds shall be at a rate from year to year as will be ample and sufficient to provide funds each year to pay the principal of and interest on said Bonds while Outstanding; full allowance being made for delinquencies and costs of collection; separate books and records relating to the receipt and disbursement of taxes levied, assessed and collected for and on account of the Bonds shall be kept and maintained by the City at all times while the Bonds are Outstanding, and the taxes collected for the payment of the Debt Service Requirements on the Bonds shall be deposited to the credit of a "Special 2001 Bond Account" (the "Interest and Sinking Fund") maintained on the records of the City and deposited in a special fund maintained at an official depository of the City's funds; and such tax hereby levied, and to be assessed and collected annually, is hereby pledged to the payment of the Bonds. Proper officers of the City are hereby authorized and directed to cause to be transferred to the Paying Agent/ Registrar for the Bonds, from funds on deposit in the Interest and Sinking Fund, amounts sufficient to fully pay and discharge promptly each installment of interest and principal of the Bonds as the same accrues or matures or comes due by reason of redemption prior to maturity; such transfers of funds to be made in such manner as will cause collected funds to be deposited with the Paying Agent/Registrar on or before each principal and interest payment date for the Bonds. SECTION 11. Mutilated-Destroyed-Lost and Stolen Bonds. In case any Bond shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Bond of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such Bond, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Bond shall be borne by the Holder of the Bond mutilated, or destroyed, lost or stolen. Every replacement Bond issued pursuant to this Section shall be a valid and binding obligation, and shall be entitled to all the benefits of this Ordinance equally and ratably with all 45077343.1 -14- other Outstanding Bonds; notwithstanding the enforceability of payment by anyone of the destroyed, lost, or stolen Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost or stolen Bonds. SECTION 12. Satisfaction of Obligation of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Bonds or any principal amount(s) thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Bonds or the principal amount(s) thereof at maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/ Registrar, or an authorized escrow agent, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such moneys were deposited and are held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. The term "Government Securities", as used herein, means (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and on the date of their acquisition or purchase by the City are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (iii) noncallable obligations of a 45077343.1 -15- state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. SECTION 13. Ordinance a Contract- Amendments - Outstanding Bonds. This Ordinance shall constitute a contract with the Holders from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Holders holding a majority in aggregate principal amount of the Bonds then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds required to be held by Holders for consent to any such amendment, addition, or rescission. The term "Outstanding" when used in this Ordinance with respect to Bonds means, as of the date of determination, all Bonds theretofore issued and delivered under this Ordinance, except: (1) those Bonds cancelled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Bonds deemed to be duly paid by the City in accordance with the provisions of Section 12 hereof; and (3) those mutilated, destroyed, lost, or stolen Bonds which have been replaced with Bonds registered and delivered in lieu thereof as provided in Section 11 hereof. SECTION 14. Covenants to Maintain Tax-Exempt Status. (a) Definitions. When used in this Section 14, the following terms have the following meanings: "Closing Date" means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date"has the meaning set forth in Section 1.148-1(b) of the Regulations. "Gross Proceeds" means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Bonds. investment"has the meaning set forth in Section 1.148-1(b) of the Regulations. 45077343.1 -16- "Nonpurpose Investment"means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. "Rebate Amount"has the meaning set forth in Section 1.148-1(b) of the Regulations. "Regulations"means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of (1) any Investment has the meaning set forth in Section 1.148-5 of the Regulations and (2) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City shall comply with each of the specific covenants in this Section. (c) No Private Use or Private Payments. Except as permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Bonds: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For 45077343.1 -17- purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Higher Yield. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds. (f) Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. (g) Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. (h) No Rebate Required. The City warrants and represents that it satisfies the requirements of paragraph (2) and (3) of section 148(f) of the code with respect to the Certificates without making the payments for the United States described in such section. Specifically, the City warrants and represents that: (1) the City is a governmental unit with general taxing powers; (2) at least 95% of the net proceeds of the Bonds will be used for the local governmental activities of the City; (3) the aggregate face amount of all tax-exempt obligations issued or expected to be issued by the City (and all subordinate entities thereof) in the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000. Provided, however, should additional tax exempt obligations be issued or incurred, including lease purchase financings, in the 2001 calendar year which would cause the total face amount of tax exempt obligations issued and incurred in such calendar year to exceed $5,000,000, the City agrees and covenants that it will maintain complete records regarding the investments of the proceeds of sale of the Bonds and rebate any "arbitrage profits" to the United States as required by Section 148(f) of the Code. (i) Elections. The City hereby directs and authorizes the City Manager and Director of Finance, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection 45077343.1 -18- with the Bonds, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. (j) Qualified Tax Exempt Obligations. In accordance with the provisions of paragraph (3) of subsection (b) of Section 265 of the Code, the City hereby designates the Bonds to be "qualified tax exempt obligations" in that the Bonds are not "private activity bonds" as defined in the Code and the reasonably anticipated amount of "qualified tax exempt obligations" to be issued by the City (including all subordinate entities of the City) for the calendar year in which the Bonds are issued will not exceed $10,000,000. SECTION 15. Sale of Bonds. Pursuant to a public sale for the Bonds, the bid submitted by (herein referred to as the "Purchasers") is declared to be the best bid received producing the lowest true interest cost rate to the City; such bid is hereby accepted and incorporated herein by reference as a part of this Ordinance for all purposes and the sale of the Bonds to said Purchasers at the price of par and accrued interest to the date of delivery, plus a premium of $ , is hereby approved and confirmed. Delivery of the Bonds to the Purchasers shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. SECTION 16. Official Statement. The use of the Preliminary Official Statement, dated August 31, 2001, in the offering and sale of the Bonds is hereby ratified, confirmed and approved in all respects, and the City Council hereby finds that the information and data contained in said Preliminary Official Statement pertaining to the City and its financial affairs is true and correct in all material respects and no material facts have been omitted therefrom which are necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The final Official Statement, which reflects the terms of sale (together with such changes approved by the Mayor, City Secretary, City Manager of Director of Finance, one or more of said officials), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute said final Official Statement, dated September 11, 2001, in the reoffering, sale and delivery of the Bonds to the public. SECTION 17. Control and Custody of Bonds. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, including the printing and supply of definitive Bonds, and shall take and have charge and control of the Initial Bond(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the initial purchasers. Furthermore, the Mayor, Mayor Pro Tem, City Secretary, City Manager and Director of Finance, any one or more of said officials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the City and the issuance of the Bonds, including certifications as to facts, estimates, circumstances and reasonable expectations pertaining to the use, expenditure, and investment of the proceeds of the Bonds, as may be necessary for the approval of the Attorney General, the registration by the Comptroller of Public Accounts and the delivery of the Bonds to the purchasers, and, together with the City's financial advisor, bond counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Bond(s) to the purchasers and the initial exchange thereof for definitive Bonds. SECTION 18. Proceeds of Sale. The proceeds of sale of the Bonds, excluding the accrued interest and premium, if any, received from the purchasers, shall be deposited in a 45077343.1 -19- construction fund maintained at the City's depository bank. Pending expenditure for authorized projects and purposes, such proceeds of sale may be invested in authorized investments in accordance with the provisions of V.T.C.A., Government Code, Chapter 2256, including guaranteed investment contracts permitted by V.T.C.A., Section 2256.015 et seq., and the City's investment policies and guidelines,. and any investment earnings realized shall be expended for such authorized projects and purposes or deposited in the Interest and Sinking Fund as shall be determined by the City Council. Accrued interest and premium, if any, received from the Purchasers as well as surplus proceeds of sale of the Bonds, including investment earnings, remaining after completion of all authorized projects or purposes shall be deposited to the credit of the Interest and Sinking Fund. SECTION 19. Notices to Holders-Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder appearing in the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Bonds. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 20. Cancellation. All Bonds surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already cancelled, shall be promptly cancelled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled Bonds held by the Paying Agent/Registrar shall be returned to the City. SECTION 21. Legal Opinion. The obligation of the Purchasers to accept delivery of the Bonds is subject to being furnished a final opinion of Fulbright & Jaworski L.L.P., Attorneys, Dallas, Texas, approving such Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Bonds. A true and correct reproduction of said opinion is hereby authorized to be printed on the definitive Bonds or an executed counterpart thereof shall accompany the global Bonds deposited with the Depository Trust Company. SECTION 22. CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof and neither the City nor attorneys approving the Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 23. Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, the Paying 45077343.1 _20_ Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar and the Holders. SECTION 24. Inconsistent Provisions. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. SECTION 25. Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 26. Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 27. Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 28. Severability. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 29. Continuing Disclosure Undertaking. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "NRMSIR" means each person whom the SEC or its staff has determined to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. "SID" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. (b) Annual Reports. The City shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year (beginning with the fiscal year ending September 30, 2001) financial information and operating data with respect to the City of the general type included in the final Official Statement approved by Section 16 of this Ordinance, being the information described in Exhibit B hereto. Financial statements to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit B hereto and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not 45077343.1 -21- available at the time the financial information and operating data must be provided, then the City shall provide unaudited financial statements for the applicable fiscal year to each NRMSIR and any SID with the financial information and operating data and will file the annual audit report when and if the same becomes available. If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. (c) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the Bonds; 7. Modifications to rights of holders of the Bonds; 8. Bond calls; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds; and 11. Rating changes. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (d) Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section while, but only while, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give the notice required by subsection (c) hereof of any Bond calls and defeasance that cause the City to be no longer such an "obligated person." The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update 45077343.1 _22_ any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances resulting from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Bonds consent to such amendment or (b) a Person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Bonds. The provisions of this Section may also be amended from time to time or repealed by the City if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to the extent that reservation of the City's right to do so would not prevent underwriters of the initial public offering of the Bonds from lawfully purchasing or selling Bonds in such offering. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data filed with each NRMSIR and SID pursuant to subsection (b) of this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. SECTION 30. Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. 45077343.1 -23- SECTION 31. Effective Date. This Ordinance shall be in force and effect from and after its passage on the date shown below and it is so ordained. PASSED AND ADOPTED, this September.2001. CITY OF WYLIE, TEXAS Mayor ATTEST: City Secretary (City Seal) 45077343.1 _24_ IAHIB11 A PAYING AGENT/REGISTRAR AGREEMENT THIS AGREEMENT entered into as of September11, 2001 (this "Agreement"), by and between the City of Wylie, Texas (the "Issuer"), and The Chase Manhattan Bank, a New York banking corporation organized and existing under the laws of the State of New York and authorized to do business in the State of Texas, RECITALS WHEREAS, the Issuer has duly authorized and provided for the execution and delivery of its "City of Wylie, Texas, General Obligation Bonds, Series 2001" (the "Securities"), dated September 1, 2001, such Securities scheduled to be delivered to the initial purchasers thereof on or about October 16, 2001; and WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, if any, and interest on said Securities and with respect to the registration, transfer and exchange thereof by the registered owners thereof; and WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power and authority to perform and serve as Paying Agent/Registrar for the Securities; NOW, THEREFORE, it is mutually agreed as follows: ARTICLE ONE APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01 Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities, and, as Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered owners thereof; all in accordance with this Agreement and the "Bond Resolution" (hereinafter defined). The Issuer hereby appoints the Bank as Registrar with respect to the Securities and, as Registrar for the Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and in the "Bond Resolution". The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the Securities. Section 1.02 Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts set forth in Annex A attached hereto for the first year of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal Year. 45077476.1 In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses, disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof (including the reasonable compensation and the expenses and disbursements of its agents and counsel). ARTICLE TWO DEFINITIONS Section 2.01 Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: "Acceleration Date" on any Security means the date on and after which the principal or any or all installments of interest, or both, are due and payable on any Security which has become accelerated pursuant to the terms of the Security. "Bank Office" means the designated office of the Bank in Dallas, Texas at the address shown in Section 3.01 hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office. "Bond Resolution" means the resolution, order, or ordinance of the governing body of the Issuer pursuant to which the Securities are issued, certified by the Secretary or any other officer of the Issuer and delivered to the Bank. "Fiscal Year" means the fiscal year of the Issuer, ending September 30th. "Holder" and "Security Holder" each means the Person in whose name a Security is registered in the Security Register. "Issuer Request" and "Issuer Order" means a written request or order signed in the name of the Issuer by the Mayor, City Secretary, City Manager, Assistant City Manager, or Director of Finance, any one or more of said officials, and delivered to the Bank. "Legal Holiday" means a day on which the Bank is required or authorized to be closed. "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision of a government. "Predecessor Securities" of any particular Security means every previous Security evidencing all or a portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition, any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Resolution). 45077476.1 -2- EXHIBIT A "Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such redemption pursuant to the terms of the Bond Resolution. "Responsible Officer" when used with respect to the Bank means the Chairman or Vice-Chairman of the Board of Directors, the Chairman or Vice-Chairman of the Executive Committee of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. "Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfers of Securities. "Stated Maturity" means the date specified in the Bond Resolution the principal of a Security is scheduled to be due and payable. Section 2.02 Other Definitions. The terms "Bank," "Issuer," and "Securities (Security)" have the meanings assigned to them in the recital paragraphs of this Agreement. The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this Agreement. ARTICLE THREE PAYING AGENT Section 3.01 Duties of Paying Agent. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Security to the Bank at the following address: P. O. Box 2320, Dallas, Texas 75221-2320 or 2001 Bryan Street, 9th Floor, Dallas, Texas 75201, Attention: Operations. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by computing the amount of interest to be paid each Holder and making payment thereof to the Holders of the Securities (or their Predecessor Securities) on the Record Date. All payments of principal and/or interest on the Securities to the registered owners shall be accomplished (1) by the issuance of checks, payable to the registered owners, drawn on the paying agent account provided in Section 5.05 hereof, sent by United States mail, first class, postage prepaid, to the address appearing on the Security Register or (2) by such other method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense. Section 3.02 Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on the Securities at the dates specified in the Bond Resolution. 45077476.1 -3- EXHIBIT A ARTICLE FOUR REGISTRAR Section 4.01 Security Register- Transfers and Exchanges. The Bank agrees to keep and maintain for and on behalf of the Issuer at the Bank Office books and records (herein sometimes referred to as the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer, exchange and replacement of the Securities and the payment of the principal of and interest on the Securities to the Holders and containing such other information as may be reasonably required by the Issuer and subject to such reasonable regulations as the Issuer and Bank may prescribe. All transfers, exchanges and replacement of Securities shall be noted in the Security Register. Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing. The Bank may request any supporting documentation it feels necessary to effect a re-registration, transfer or exchange of the Securities. To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities delivered to the Holder or the assignee of the Holder in not more than three (3) business days after the receipt of the Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying Agent/Registrar. Section 4.02 Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use and reasonable care will be exercised by the Bank in maintaining such Securities in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other governments or corporations for which it serves as registrar, or that is maintained for its own securities. Section 4.03 Form of Security Register. The Bank, as Registrar, will maintain the Security Register relating to the registration, payment, transfer and exchange of the Securities in accordance with the Bank's general practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security Register in any form other than those which the Bank has currently available and currently utilizes at the time. The Security Register may be maintained in written form or in any other form capable of being converted into written form within a reasonable time. Section 4.04 List of Security Holders. The Bank will provide the Issuer at any time requested by the Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer may also inspect the information contained in the Security Register at any time the Bank is customarily open for business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the information into written form. 45077476.1 -4- EXHIBIT A The Bank will not release or disclose the contents of the Security Register to any person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of the contents of the Security Register. Section 4.05 Return of Cancelled Certificates. The Bank will, at such reasonable intervals as it determines, surrender to the Issuer, Securities in lieu of which or in exchange for which other Securities have been issued, or which have been paid. Section 4.06 Mutilated, Destroyed, Lost or Stolen Securities. The Issuer hereby instructs the Bank, subject to the provisions of Section 11 of the Bond Resolution, to deliver and issue Securities in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an overissuance. In case any Security shall be mutilated, or destroyed, lost or stolen, the Bank may execute and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in substitution for such destroyed lost or stolen Security, only upon the approval of the Issuer and after (i) the filing by the Holder thereof with the Bank of evidence satisfactory to the Bank of the destruction, loss or theft of such Security, and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or destroyed, lost or stolen. Section 4.07 Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section 3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to Section 4.06. ARTICLE FIVE THE BANK • Section 5.01 Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to use reasonable care in the performance thereof. Section 5.02 Reliance on Documents, Etc.(a) The Bank may conclusively rely, as to the truth of the statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank. (b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts. (c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise incur any financial liability for performance of any of its duties hereunder, or 45077476.1 _5_ EXHIBIT A in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity satisfactory to it against such risks or liability is not assured to it. (d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document supplied by Issuer. (e) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon. (f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank. Section 5.03 Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness. The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other Person for any amount due on any Security from its own funds. Section 5.04 May Hold Securities. The Bank, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were not the Paying Agent/Registrar, or any other agent. Section 5.05 Moneys Held by Bank - Paying Agent Account/Collateralization. Money deposited by the Issuer with the Bank of the principal (or Redemption Price, if applicable) of or interest on any Securities shall be segregated from other funds of the Bank and the Issuer and shall be held in trust for the benefit of the Holders of such Securities. All money deposited with the Bank hereunder shall be secured in the manner and to the fullest extent required by law for the security of funds of the Issuer. Amounts held by the Bank which represent principal of and interest on the Securities remaining unclaimed by the owner after the expiration of three years from the date such amounts have become due and payable shall be reported and disposed of by the Bank in accordance with the provisions of Texas law including, to the extent applicable, Title 6 of the Texas Property Code, as amended. The Bank shall have no liability by virtue of actions taken in compliance with this provision. The Bank is not obligated to pay interest on any money received by it hereunder. 45077476.1 -6- EXHIBIT A This Agreement relates solely to money deposited for the purposes described herein, and the parties agree that the Bank may serve as depository for other funds of the Issuer, act as trustee under indentures authorizing other bond transactions of the Issuer, or act in any other capacity not in conflict with its duties hereunder. Section 5.06 Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part, arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and expense against any claim or liability in connection with the exercise or performance of any of its powers or duties under this Agreement. Section 5.07 Interpleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State District Court located in the State and County where either the Bank Office or the administrative offices of the Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to determine the rights of any Person claiming any interest herein. Section 5.08 DT Services. It is hereby represented and warranted that, in the event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with the "Operational Arrangements", which establishes requirements for securities to be eligible for such type depository trust services, including, but not limited to, requirements for the timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls. ARTICLE SIX MISCELLANEOUS PROVISIONS Section 6.01 Amendment. This Agreement may be amended only by an agreement in writing signed by both of the parties hereto. Section 6.02 Assignment. This Agreement may not be assigned by either party without the prior written consent of the other. Section 6.03 Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the Issuer or the Bank, respectively, at the addresses shown on page 9. Section 6.04 Effect of Headings. The Article and Section headings herein are for convenience only and shall not affect the construction hereof. Section 6.05 Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. 45077476.1 _7_ D(H1BIT A Section 6.06 Severability. In case any provision herein shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 6.07 Benefits of Agreement Nothing herein, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim hereunder. Section 6.08 Entire Agreement. This Agreement and the Bond Resolution constitute the entire agreement between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between this Agreement and the Bond Resolution, the Bond Resolution shall govern. Section 6.09 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Section 6.10 Termination. This Agreement will terminate (i) on the date of final payment of the principal of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written notice; provided, however, an early termination of this Agreement by either party shall not be effective until (a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b) notice given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar. Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement shall not occur at any time which would disrupt, delay or otherwise adversely affect the payment of the Securities. Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security Register (or a copy thereof), together with other pertinent books and records relating to the Securities, to the successor Paying Agent/Registrar designated and appointed by the Issuer. The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect following the termination of this Agreement. Section 6.11 Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas. 45077476.1 -8- EXHIBIT A IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. THE CHASE MANHATTAN BANK BY: Title: [SEAL] Address: 600 Travis, Suite 1150 Houston, Texas 77002 Attest: Title: CITY OF WYLIE, TEXAS BY: Mayor Address: 2000 Highway 78 North Wylie, Texas 75098 (CITY SEAL) Attest: City Secretary 45077476.1 _9_ EXHIBIT A Exhibit B to Ordinance DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 29 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: 1. The financial statements of the City appended to the Official Statement as Appendix D, but for the most recently concluded fiscal year. 2. The information contained in Tables 1 through 6 and 8 through 13 in the Official Statement. Accounting Principles The accounting principles referred to in such Section are the generally accepted accounting principles as applicable to governmental units as prescribed by The Government Accounting Standards Board. 45077343.1 WYLIE CITY COUNCIL AGENDA ITEM NO. Z Z. September 11, 2001 Issue Consider and act upon approval of an Ordinance authorizing the issuance of$500,000 in Tax Notes, Series 2001, dated September 1, 2001 and all other matters related thereto. Background The City is proposing to issue $500,000 in Tax Notes in order to fund the purchase of equipment and software for various departments including Police, Fire, Public Works, Finance, Utility Billing and Personnel, and to pay costs associated with the issuance of the Notes. The City's Financial Advisors, First Southwest Company, will present the results of the bidding at the Council meeting on September 11, 2001. Other Considerations The Council can take action to issue the Tax Notes or to reject the bids at this meeting. If the bids are awarded, the Council will need to adopt the Ordinance authorizing the tax notes. A Good Faith Deposit of$10,000 will be required from the successful bidder. Financial Consideration The debt service requirements for the Tax Note will be funded from property taxes. The average annual debt service payment over the five year amortization period of the $500,000 is estimated to be $111,500. Board/Commission Recommendations N/A Staff Recommendations Staff recommends that the City Council adopt the proposed ordinance authorizing the issue of $500,000 in Tax Notes, Series 2001, per the recommendation of the First Southwest Company. Attachments Ordinance Prepare by evi d by Financ City Man pproval ORDINANCE NO. AN ORDINANCE authorizing the issuance of "CITY OF WYLIE, TEXAS, TAX NOTES, SERIES 2001"; specifying the terms and features of said notes; levying a continuing direct annual ad valorem tax for the payment of said notes; and resolving other matters incident and related to the issuance, sale, payment and delivery of said notes, including the approval and execution of a Paying Agent/Registrar Agreement and the approval and distribution of an Official Statement pertaining thereto; and providing an effective date. WHEREAS, pursuant to V.T.C.A., Government Code, Chapter 1431 (hereinafter called the "Act"), the City Council is authorized and empowered to issue anticipation notes to pay contractual obligations to be incurred (i) for the construction of any public work and (ii) for the purchase of materials, supplies, equipment, machinery, buildings, lands and rights-of-way for the City's authorized needs and purposes; and WHEREAS, in accordance with the provisions of the Act, the City Council hereby finds and determines that anticipation notes should be issued and sold at this time to finance the costs of paying contractual obligations to be incurred for (i) the purchase of materials, supplies and equipment and machinery for various city departments including police, fire, public works, finance, utility billing and personnel, and (ii) professional services rendered in relation to such projects and purposes and the financing thereof; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: Authorization- Designation- Principal Amount-Purpose. Notes of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $500,000, to be designated and bear the title "CITY OF WYLIE, TEXAS, TAX NOTES, SERIES 2001" (hereinafter referred to as the "Notes"), for the purpose of paying contractual obligations to be incurred for (i) the purchase of materials, supplies, equipment and machinery for various city departments, including the police, fire, public works, finance, utility billing and personnel, and (ii) professional services rendered in relation to such projects and purposes and the financing thereof, in conformity with the Constitution and laws of the State of Texas, including V.T.C.A., Government Code, Chapter 1431. SECTION 2: Fully Registered Obligations - Note Date-Authorized Denominations - Stated Maturities-Interest Rates. The Notes shall be issued as fully registered obligations only, shall be dated September 1, 2001 (the "Note Date"), shall be in denominations of $5,000 or any integral multiple thereof, and shall become due and payable on February 15 in each of the years and in principal amounts (the "Stated Maturities") and bear interest at the per annum rate(s) in accordance with the following schedule: 45077513.1 -1- Year of Principal Interest Stated Maturity Amount Rate 2002 $90,000 2003 95,000 2004 100,000 2005 105,000 2006 110,000 The Notes shall bear interest on the unpaid principal amounts from the Note Date at the rates per annum shown above in this Section (calculated on the basis of a 360-day year of twelve 30-day months), and such interest shall be payable on February 15 and August 15 of each year, commencing February 15, 1999. SECTION 3: Terms of Payment-Paying Agent/Registrar. The principal of, premium, if any, and the interest on the Notes, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Notes (hereinafter called the "Holders") appearing on the registration and transfer books maintained by the Paying Agent/Registrar and the payment thereof shall be in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of The Chase Manhattan Bank to serve as Paying Agent/Registrar for the Notes is hereby approved and confirmed. Books and records relating to the registration, payment, transfer and exchange of the Notes (the "Security Register") shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, as provided herein and in accordance with the terms and provisions of a "Paying Agent/ Registrar Agreement", substantially in the form attached hereto as Exhibit A, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor and City Secretary are authorized to execute and deliver such Agreement in connection with the delivery of the Notes. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Notes are paid and discharged, and any successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Notes, the City agrees to promptly cause a written notice thereof to be sent to each Holder by United States Mail, first class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Notes shall be payable at the Stated Maturity, only upon presentation and surrender of the Notes to the Paying Agent/Registrar at its designated offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest on the Notes shall be paid to the Holders whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding the interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the 45077513.1 -2- principal of or interest on the Notes shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. In the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/ Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4: Non-Redeemable. The Notes shall not be subject to redemption prior to maturity. SECTION 5: Registration - Transfer - Exchange of Notes-Predecessor Notes. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each and every owner of the Notes issued under and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Note may be transferred or exchanged for Notes of other authorized denominations by the Holder, in person or by his duly authorized agent, upon surrender of such Note to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender of any Note (other than the Initial Notes authorized in Section 8 hereof) for transfer at the Designated Payment/Transfer Office of the Paying Agent/Registrar, the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Notes of authorized denominations and having the same Stated Maturity and of a like aggregate principal amount as the Note or Notes surrendered for transfer. At the option of the Holder, Notes (other than the Initial Notes authorized in Section 8 hereof) may be exchanged for other Notes of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Notes surrendered for exchange, upon surrender of the Notes to be exchanged at the Designated Payment/Transfer Office of the Paying Agent/Registrar. Whenever any Notes are surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Notes to the Holder requesting the exchange. All Notes issued in any transfer or exchange of Notes shall be delivered to the Holders at the Designated Payment/Transfer Office of the Paying Agent/Registrar or sent by United States Mail, first class, postage prepaid to the Holders, and, upon the registration and delivery 45077513.1 -3- thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Notes surrendered in such transfer or exchange. All transfers or exchanges of Notes pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Notes canceled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Notes," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Note or Notes registered and delivered in the exchange or transfer therefor. Additionally, the term "Predecessor Notes" shall include any mutilated, lost, destroyed, or stolen Note for which a replacement Note has been issued, registered, and delivered in lieu thereof pursuant to the provisions of Section 11 hereof and such new replacement Note shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Note. SECTION 6: Book-Entry Only Transfers and Transactions. Notwithstanding the provisions contained in Sections 3 and 5 hereof relating to the payment, and transfer/exchange of the Notes, the City hereby approves and authorizes the use of "Book-Entry Only" securities clearance, settlement and transfer system provided by The Depository Trust Company (DTC), a limited purpose trust company organized under the laws of the State of New York, in accordance with the requirements and procedures identified in the Blanket Issuer Letter of Representations, by and between the City and DTC (the "Depository Agreement"). Pursuant to the Depository Agreement and the rules of DTC, the Notes shall be deposited with DTC who shall hold said Notes for its participants (the "DTC Participants"). While the Notes are held by DTC under the Depository Agreement, the Holder of the Notes on the Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Note (the "Beneficial Owners") being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Notes or otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the City determines that DTC is incapable of properly discharging its duties as securities depository for the Notes, the City covenants and agrees with the Holders of the Notes to cause Notes to be printed in definitive form and provide for the Note certificates to be issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Notes in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying Agent/Registrar and payment of such Notes shall be made in accordance with the provisions of Sections 3 and 5 hereof. 45077513.1 -4- SECTION 7: Execution - Registration. The Notes shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Notes may be manual or facsimile. Notes bearing the manual or facsimile signatures of individuals who are or were the proper officers of the City on the Note Date shall be deemed to be duly executed on behalf of the City, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Notes to the initial purchaser(s) and with respect to Notes delivered in subsequent exchanges and transfers, all as authorized and provided in V.T.C.A., Government Code, Chapter 1201. No Note shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Note either a certificate of registration substantially in the form provided in Section 9C, manually executed by the Comptroller of Public Accounts of the State of Texas, or his duly authorized agent, or a certificate of registration substantially in the form provided in Section 9D, manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such certificate duly signed upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly certified, registered, and delivered. SECTION 8: Initial Note. The Notes herein authorized shall be initially issued either (i) as a single fully registered note in the total principal amount of $500,000 with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1, or (ii) as multiple fully registered Notes, being one note for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the "Initial Note(s)") and, in either case, the Initial Note shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Note(s) shall be the Notes submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the Initial Note(s), the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Note(s) delivered hereunder and exchange therefor definitive Notes of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 9: Forms. A. Forms Generally. The Notes, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Notes, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends in the event the Notes, or any maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the City or determined by the officers executing such Notes as evidenced by their execution. Any portion 45077513.1 -5- of the text of any Notes may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Note. The definitive Notes and the Initial Note(s) shall be printed, lithographed, or engraved, typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined by the officers executing such Notes as evidenced by their execution thereof. B. Form of Note. REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF WYLIE, TEXAS TAX NOTE, SERIES 2001 Note Date: Interest Rate: Stated Maturity: CUSIP NO: September 1, 2001 Registered Owner: Principal Amount: DOLLARS The City of Wylie (hereinafter referred to as the "City"), a body corporate and political subdivision in the County of Collin, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above, without right of prior redemption, the Principal Amount stated above and to pay interest on the unpaid principal amount hereof from the Note Date at the per annum rate of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 15 and August 15 in each year, commencing February 15, 2002. Principal of this Note is payable at its Stated Maturity to the registered owner hereof, upon presentation and surrender, at the Designated Payment/Transfer Office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest is payable to the registered owner of this Note (or one or more Predecessor Notes, as defined in the Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, All payments of principal of, premium, if any, and interest on this Note shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. 45077513.1 -6- This Note is one of the series specified in its title issued in the aggregate principal amount of $500,000 (herein referred to as the "Notes") for the purpose of paying contractual obligations to be incurred for (i) the purchase of materials, supplies, equipment and machinery for various city departments, including the police, fire, public works, finance, utility billing and personnel, and (ii) professional services rendered in relation to such projects and purposes and the financing thereof, under and in strict conformity with the Constitution and laws of the State of Texas and pursuant to an Ordinance adopted by the City Council of the City (herein referred to as the "Ordinance"). The Notes are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City. Reference is hereby made to the Ordinance, a copy of which is on file in the Designated Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the owner or holder of this Note by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Notes; the terms and conditions relating to the transfer or exchange of this Note; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Note may be discharged at or prior to its maturity, and deemed to be no longer Outstanding thereunder; and for other terms and provisions contained therein. Capitalized terms used herein have the meanings assigned in the Ordinance. This Note, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the Designated Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Notes of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered owner whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Note as the owner entitled to payment of principal hereof at its Stated Maturity and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. 45077513.1 -7- It is hereby certified, recited, represented and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Notes is duly authorized by law; that all acts, conditions and things required to exist and be done precedent to and in the issuance of the Notes to render the same lawful and valid obligations of the City have been properly done, have happened and have been performed in regular and due time, form and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Notes do not exceed any Constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Notes by the levy of a tax as aforestated. In case any provision in this Note shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The terms and provisions of this Note and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the City has caused this Note to be duly executed under the official seal of the City as of the Note Date. CITY OF WYLIE, TEXAS Mayor ATTEST: City Secretary (Seal) 45077513.1 -8- C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Note only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER ( OF PUBLIC ACCOUNTS ( REGISTER NO. THE STATE OF TEXAS I HEREBY CERTIFY that this Note has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this . Comptroller of Public Accounts of the State of Texas (SEAL) D. Form of Certificate of Paying Agent/Registrar to appear on Definitive Notes only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Note has been duly issued and registered under the provisions of the within- mentioned Ordinance; the note or notes of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. The designated offices of the Paying Agent/Registrar located in Dallas, Texas, is the "Designated Payment/Transfer Office" for this Note. Registration Date: THE CHASE MANHATTAN BANK, as Paying Agent/Registrar By: Authorized Signature *NOTE TO PRINTER:Do Not Print on Definitive Notes 45077513.1 -9- E. Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) (Social Security or other identifying number:) the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints a ttorney to transfer the within Note on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this Signature guaranteed: assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular. F. The Initial Note(s) shall be in the form set forth in paragraph B of this Section, except that the form of a single fully registered Initial Note shall be modified as follows: (i) immediately under the name of the headings "Interest Rate " and "Stated Maturity " shall both be omitted; (ii) paragraph one shall read as follows: Registered Owner: Principal Amount: Dollars The City of Wylie (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Collin, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount hereinabove stated on February 15 in each of the years and in principal installments in accordance with the following schedule: YEAR OF PRINCIPAL INTEREST MATURITY INSTALLMENTS RATE (Information to be inserted from schedule in Section 2 hereof). (or so much thereof as shall not have been prepaid prior to maturity) and to pay interest on the unpaid principal amounts hereof from the Note Date at the per annum rate(s) of interest 45077513.1 -10- specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 15 and August 15 of each year, commencing February 15, 2002. Principal installments of this Certificate are payable at its Stated Maturity or on a prepayment date to the registered owner hereof by The Chase Manhattan Bank (the "Paying Agent/Registrar"), upon presentation and surrender, at its designated offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest is payable to the registered owner of this Certificate whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date hereof and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/ Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Note shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SECTION 10: Levy of Taxes. To provide for the payment of the "Debt Service Requirements" of the Notes, being (i) the interest on the Notes and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount is the greater), there is hereby levied, and there shall be annually assessed and collected in due time, form, and manner, a tax on all taxable property in the City, within the limitations prescribed by law, and such tax hereby levied on each one hundred dollars' valuation of taxable property in the City for the Debt Service Requirements of the Notes shall be at a rate from year to year as will be ample and sufficient to provide funds each year to pay the principal of and interest on said Notes while Outstanding; full allowance being made for delinquencies and costs of collection; separate books and records relating to the receipt and disbursement of taxes levied, assessed and collected for and on account of the Notes shall be kept and maintained by the City at all times while the Notes are Outstanding, and the taxes collected for the payment of the Debt Service Requirements on the Notes shall be deposited to the credit of a "Special 2001 Note Account" (the "Interest and Sinking Fund") maintained on the records of the City and deposited in a special fund maintained at an official depository of the City's funds; and such tax hereby levied, and to be assessed and collected annually, is hereby pledged to the payment of the Notes. Proper officers of the City are hereby authorized and directed to cause to be transferred to the Paying Agent/Registrar for the Notes, from funds on deposit in the Interest and Sinking Fund, amounts sufficient to fully pay and discharge promptly each installment of interest and principal of the Notes as the same accrues or matures; such transfers of funds to be made in such manner as will cause collected funds to be deposited with the Paying Agent/Registrar on or before each principal and interest payment date for the Notes. SECTION 11: Mutilated-Destroyed-Lost and Stolen Notes. In case any Note shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Note of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Note, or in lieu of and in substitution for such destroyed, lost or stolen Note, only upon the approval of the City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of 45077513.1 -11- evidence satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such Note, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Note shall be borne by the Holder of the Note mutilated, or destroyed, lost or stolen. Every replacement Note issued pursuant to this Section shall be a valid and binding obligation, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Notes; notwithstanding the enforceability of payment by anyone of the destroyed, lost, or stolen Notes. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost or stolen Notes. SECTION 12: Satisfaction of Obligation of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Notes, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Notes or any principal amount(s) thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Notes or the principal amount(s) thereof at maturity or the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Notes, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/ Registrar have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Notes to be treated as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/ Registrar, or an authorized escrow agent, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Notes, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Notes and remaining unclaimed for a period of three (3) years 45077513.1 -12- after the Stated Maturity, or applicable redemption date, of the Notes such moneys were deposited and are held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. The term "Government Securities", as used herein, means (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and on the date of their acquisition or purchase by the City are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. SECTION 13: Ordinance a Contract- Amendments - Outstanding Notes. This Ordinance shall constitute a contract with the Holders from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Note remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Holders holding a majority in aggregate principal amount of the Notes then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Notes, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Notes, reduce the principal amount thereof, or the rate of interest thereon, or the redemption price, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Notes, (2) give any preference to any Note over any other Note, or (3) reduce the aggregate principal amount of Notes required to be held by Holders for consent to any such amendment, addition, or rescission. The term "Outstanding" when used in this Ordinance with respect to Notes means, as of the date of determination, all Notes theretofore issued and delivered under this Ordinance, except: (1) those Notes cancelled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Notes deemed to be duly paid by the City in accordance with the provisions of Section 12 hereof; and (3) those mutilated, destroyed, lost, or stolen Notes which have been replaced with Notes registered and delivered in lieu thereof as provided in Section 11 hereof. 45077513.1 -13- SECTION 14: Covenants to Maintain Tax-Exempt Status. (a) Definitions. When used in this Section 14, the following terms have the following meanings: "Closing Date" means the date on which the Notes are first authenticated and delivered to the initial purchasers against payment therefor. "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Gross Proceeds" means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Notes. "Investment" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Notes are invested and which is not acquired to carry out the governmental purposes of the Notes. "Rebate Amount" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Notes. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of (1) any Investment has the meaning set forth in Section 1.148-5 of the Regulations and (2) the Notes has the meaning set forth in Section 1.148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Note to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Note, the City shall comply with each of the specific covenants in this Section. (c) No Private Use or Private Payments. Except as permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Notes: 45077513.1 -14- (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Notes, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Notes or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Notes to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Higher Yield. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Notes directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Notes. (f) Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Notes to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. (g) Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. 45077513.1 -15- (h) No Rebate Required. The City warrants and represents that it satisfies the requirements of paragraph (2) and (3) of section 148(f) of the code with respect to the Notes without making the payments for the United States described in such section. Specifically, the City warrants and represents that: (1) the City is a governmental unit with general taxing powers; (2) at least 95% of the net proceeds of the Notes will be used for the local governmental activities of the City; (3) the aggregate face amount of all tax-exempt obligations issued or expected to be issued by the City (and all subordinate entities thereof) in the calendar year in which the Notes are issued is not reasonably expected to exceed $5,000,000. (i) Qualified Tax Exempt Obligations. In accordance with the provisions of paragraph (3) of subsection (b) of Section 265 of the Code, the City hereby designates the Notes to be "qualified tax exempt obligations" in that the Notes are not "private activity bonds" as defined in the Code and the reasonably anticipated amount of "qualified tax exempt obligations" to be issued by the City (including all subordinate entities of the City) for the calendar year 2001 will not exceed $10,000,000. a) Elections. The City hereby directs and authorizes the Mayor, City Secretary, City Manager and Director of Finance, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Notes, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. SECTION 15: Sale of the Notes. Pursuant to a public sale for the Notes, the bid submitted by (herein referred to as the "Purchasers") is declared to be the best bid received producing the lowest true interest cost rate to the City, and the sale of the Notes to said Purchasers at the price of par and accrued interest to the date of delivery, plus a premium of $ , is hereby approved and confirmed. Delivery of the Notes to the Purchasers shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. SECTION 16: Official Statement The use of the Preliminary Official Statement, dated August 31, 2001, in the offering and sale of the Notes is hereby ratified, confirmed and approved in all respects, and the City Council hereby finds that the information and data contained in said Preliminary Official Statement pertaining to the City and its financial affairs is true and correct in all material respects and no material facts have been omitted therefrom which are necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The final Official Statement, which reflects the terms of sale (together with such changes approved by the Mayor, City Secretary, City Manager of Director of Finance, one or more of said officials), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute said final Official Statement, dated September,, 2001, in the reoffering, sale and delivery of the Notes to the public. 45077513.1 -16- SECTION 17: Control and Custody of Notes. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, including the printing and supply of definitive Notes, and shall take and have charge and control of the Initial Note pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the initial purchasers. Furthermore, the Mayor, City Manager, Director of Finance and City Secretary, any one or more of said officials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the City and the issuance of the Notes, including certifications as to facts, estimates, circumstances and reasonable expectations pertaining to the use, expenditure, and investment of the proceeds of the Notes, as may be necessary for the approval of the Attorney General, the registration by the Comptroller of Public Accounts and the delivery of the Notes to the purchasers, and, together with the City's financial advisor, bond counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Note to the purchasers and the initial exchange thereof for definitive Notes. SECTION 18: Proceeds of Sale. The proceeds of sale of the Notes, excluding the accrued interest received from the purchasers, shall be deposited in a construction fund maintained at the City's depository bank. Pending expenditure for authorized projects and purposes, such proceeds of sale may be invested in authorized investments in accordance with the provisions of V.T.C.A., Government Code, Chapter 2256, including guaranteed investment contracts permitted by V.T.C.A., Section 2256.015 et seq., and the City's investment policies and guidelines, and any investment earnings realized shall be expended for such authorized projects and purposes or deposited in the Interest and Sinking Fund as shall be determined by the City Council. Accrued interest and premium, if any, received from the sale of the Notes and any excess note proceeds, including investment earnings, remaining after completion of all authorized projects or purposes shall be deposited to the credit of the Interest and Sinking Fund. SECTION 19: Notices to Holders-Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder appearing in the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Notes. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 20: Cancellation. All Notes surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly 45077513.1 -17- canceled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Notes previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Notes held by the Paying Agent/Registrar shall be returned to the City. SECTION 21: Legal Opinion. The obligation of the Purchasers to accept delivery of the Notes is subject to being furnished a final opinion of Fulbright & Jaworski L.L.P., Attorneys, Dallas, Texas, approving such Notes as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Notes. A true and correct reproduction of said opinion is hereby authorized to be printed on definitive printed obligations. SECTION 22: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Notes. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Notes shall be of no significance or effect as regards the legality thereof and neither the City nor attorneys approving the Notes as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Notes. SECTION 23: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, the Paying Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar and the Holders. SECTION 24: Inconsistent Provisions. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. SECTION 25: Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 26: Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 27: Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 28: Severability. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. 45077513.1 -18- SECTION 29: Continuing Disclosure Undertaking. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "NRMSIR" means each person whom the SEC or its staff has determined to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. "SID" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. (b) Annual Reports. The City shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year (beginning with the fiscal year ending September 30, 2001) financial information and operating data with respect to the City of the general type included in the final Official Statement approved by Section 16 of this Ordinance, being the information described in Exhibit B hereto. Financial statements to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit B hereto and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not available at the time the financial information and operating data must be provided, then the City shall provide unaudited financial statements for the applicable fiscal year to each NRMSIR and any SID with the financial information and operating data and will file the annual audit report, when and if the same becomes available. If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. (c) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Notes, if such event is material within the meaning of the federal securities laws: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 45077513.1 -19- 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the Notes; 7. Modifications to rights of holders of the Notes; 8. Note calls; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Notes; and 11. Rating changes. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (d) Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section while, but only while, the City remains an "obligated person" with respect to the Notes within the meaning of the Rule, except that the City in any event will give the notice required by subsection (c) hereof of any defeasance that cause the City to be no longer such an "obligated person." The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Notes, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Notes at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY NOTE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances resulting from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted underwriters to purchase or 45077513.1 -20- sell Notes in the primary offering of the Notes in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Notes consent to such amendment or (b) a Person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Notes. The provisions of this Section may also be amended from time to time or repealed by the City if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to the extent that reservation of the City's right to do so would not prevent underwriters of the initial public offering of the Notes from lawfully purchasing or selling Notes in such offering. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with subsection (b) an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. SECTION 30: Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551. SECTION 31: Effective Date. This Ordinance shall take effect and be in full force immediately from and after its date of adoption shown below. PASSED AND ADOPTED, this September112001. CITY OF WYLIE, TEXAS Mayor ATTEST: City Secretary (City Seal) 45077513.1 -21- EXHIBIT A PAYING AGENT/REGISTRAR AGREEMENT THIS AGREEMENT entered into as of September', 2001 (this "Agreement"), by and between the City of Wylie, Texas (the "Issuer"), and The Chase Manhattan Bank, a New York banking corporation organized and existing under the laws of the State of New York and authorized to do business in the State of Texas, RECITALS WHEREAS, the Issuer has duly authorized and provided for the issuance of its "City of Wylie, Texas, Tax Notes, Series 2001" (the "Notes") in the aggregate principal amount of $500,000, such Notes to be issued in fully registered form only as to the payment of principal and interest thereon; and WHEREAS, the Notes are scheduled to be delivered to the initial purchasers on or about October 16, 2001; and WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, if any, and interest on said Notes and with respect to the registration, transfer and exchange thereof by the registered owners thereof; and WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power and authority to perform and serve as Paying Agent/Registrar for the Notes; NOW, THEREFORE, it is mutually agreed as follows: ARTICLE ONE APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Notes, and, as Paying Agent for the Notes, the Bank shall be responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the Notes as the same become due and payable to the registered owners thereof; all in accordance with this Agreement and the "Note Resolution" (hereinafter defined). The Issuer hereby appoints the Bank as Registrar with respect to the Notes and, as Registrar for the Notes, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Notes and with respect to the transfer and exchange thereof as provided herein and in the "Note Resolution". The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the Notes. Section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts set forth in Annex A attached hereto for the first year of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days 45077676.1 prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal Year. In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses, disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof (including the reasonable compensation and the expenses and disbursements of its agents and counsel). ARTICLE TWO DEFINITIONS Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: "Acceleration Date" on any Note means the date on and after which the principal or any or all installments of interest, or both, are due and payable on any Note which has become accelerated pursuant to the terms of the Note. "Bank Office" means the offices of the Bank located in New York, New York at the address appearing in Section 3.01 hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office. "Fiscal Year" means the fiscal year of the Issuer, ending September 30th. "Holder" and "Note Holder" each means the Person in whose name a Note is registered in the Note Register. "Issuer Request" and "Issuer Order" means a written request or order signed in the name of the Issuer by the Mayor, City Secretary, City Manager and Director of Finance, any one or more of said officials, and delivered to the Bank. "Legal Holiday" means a day on which the Bank is required or authorized to be closed. "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision of a government. "Predecessor Notes" of any particular Note means every previous Note evidencing all or a portion of the same obligation as that evidenced by such particular Note (and, for the purposes of this definition, any mutilated, lost, destroyed, or stolen Note for which a replacement Note has been registered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Resolution). "Note Resolution" means the resolution, order, or ordinance of the governing body of the Issuer pursuant to which the Notes are issued, certified by the Secretary or any other officer of the Issuer and delivered to the Bank. "Note Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfers of Notes. -2- EXHIBIT A "Redemption Date" when used with respect to any Note to be redeemed means the date fixed for such redemption pursuant to the terms of the Note Resolution. "Responsible Officer" when used with respect to the Bank means the Chairman or Vice-Chairman of the Board of Directors, the Chairman or Vice-Chairman of the Executive Committee of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. "Stated Maturity" means the date specified in the Note Resolution the principal of a Note is scheduled to be due and payable. Section 2.02. Other Definitions. The terms "Bank," "Issuer," and "Notes (Note)" have the meanings assigned to them in the recital paragraphs of this Agreement. The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this Agreement. ARTICLE THREE PAYING AGENT Section 3.01. Duties of Paying Agent As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Note at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Note to the Bank at the following address: P. O. Box 2320, Dallas, Texas 75221-2320 or 2001 Bryan Street, 9th Floor, Dallas, Texas 75201, Attention: Operations. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Note when due, by computing the amount of interest to be paid each Holder and making payment thereof to the Holders of the Notes (or their Predecessor Notes) on the Record Date. All payments of principal and/or interest on the Notes to the registered owners shall be accomplished (1) by the issuance of checks, payable to the registered owners, drawn on the fiduciary account provided in Section 5.05 hereof, sent by United States mail, first class, postage prepaid, to the address appearing on the Note Register or (2) by such other method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense. Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on the Notes at the dates specified in the Note Resolution. ARTICLE FOUR REGISTRAR Section 4.01. Note Register-Transfers and Exchanges. The Bank agrees to keep and maintain for and on behalf of the Issuer at the Bank Office books and records (herein sometimes referred to as the "Note Register") for recording the names and addresses of the -3- EXNIBIT A Holders of the Notes, the transfer, exchange and replacement of the Notes and the payment of the principal of and interest on the Notes to the Holders and containing such other information as may be reasonably required by the Issuer and subject to such reasonable regulations as the Issuer and Bank may prescribe. All transfers, exchanges and replacement of Securities shall be noted in the Note Register. The Bank represents and warrants its office in Dallas, Texas will at all times have immediate access to the Note Register by electronic or other means and will be capable at all times of producing a hard copy of the Note Register at its Dallas office for use by the Issuer. Every Note surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a member of the National Association of Notes Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing. The Bank may request any supporting documentation it feels necessary to effect a re-registration, transfer or exchange of the Notes. To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Notes, the exchange or transfer by the Holders thereof will be completed and new Notes delivered to the Holder or the assignee of the Holder in not more than three (3) business days after the receipt of the Notes to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying Agent/Registrar. Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Notes to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of printed Notes will be kept in safekeeping pending their use and reasonable care will be exercised by the Bank in maintaining such Notes in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other governments or corporations for which it serves as registrar, or that is maintained for its own securities. Section 4.03. Form of Note Register. The Bank, as Registrar, will maintain the Note Register relating to the registration, payment, transfer and exchange of the Notes in accordance with the Bank's general practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Note Register in any form other than those which the Bank has currently available and currently utilizes at the time. The Note Register may be maintained in written form or in any other form capable of being converted into written form within a reasonable time. Section 4.04. List of Note Holders. The Bank will provide the Issuer at any time requested by the Issuer, upon payment of the required fee, a copy of the information contained in the Note Register. The Issuer may also inspect the information contained in the Note Register at any time the Bank is customarily open for business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the information into written form. The Bank will not release or disclose the contents of the Note Register to any person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and -4- EXHIBIT A prior to the release or disclosure of the contents of the Note Register, the Bank will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of the contents of the Note Register. Section 4.05. Return of Cancelled Certificates. The Bank will, at such reasonable intervals as it determines, surrender to the Issuer, Notes in lieu of which or in exchange for which other Notes have been issued, or which have been paid. Section 4.06. Mutilated, Destroyed, Lost or Stolen Securities. The Issuer hereby instructs the Bank, subject to the provisions of Section 11 of the Note Resolution, to deliver and issue Notes in exchange for or in lieu of mutilated, destroyed, lost, or stolen Notes as long as the same does not result in an overissuance. In case any Note shall be mutilated, or destroyed, lost or stolen, the Bank may execute and deliver a replacement Note of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Note, or in lieu of and in substitution for such destroyed lost or stolen Note, only upon the approval of the Issuer and after (i) the filing by the Holder thereof with the Bank of evidence satisfactory to the Bank of the destruction, loss or theft of such Note, and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Note shall be borne by the Holder of the Note mutilated, or destroyed, lost or stolen. Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to the Notes it has paid pursuant to Section 3.01, Notes it has delivered upon the transfer or exchange of any Notes pursuant to Section 4.01, and Notes it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Notes pursuant to Section 4.06. ARTICLE FIVE THE BANK Section 5.01. Duties of Bank The Bank undertakes to perform the duties set forth herein and agrees to use reasonable care in the performance thereof. Section 5.02. Reliance on Documents, Etc. (a) The Bank may conclusively rely, as to the truth of the statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank. (b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts. (c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity satisfactory to it against such risks or liability is not assured to it. -5- EXHIBIT A (d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any Notes, but is protected in acting upon receipt of Notes containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document supplied by Issuer. (e) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon. (f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank. Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the Notes shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness. The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Note, or any other Person for any amount due on any Note from its own funds. Section 5.04. May Hold Notes. The Bank, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Issuer with the same rights it would have if it were not the Paying Agent/Registrar, or any other agent. Section 5.05. Moneys Held by Bank - Fiduciary Account/Collateralization. A fiduciary account shall at all times be kept and maintained by the Bank for the receipt, safekeeping and disbursement of moneys received from the Issuer hereunder for the payment of the Notes, and money deposited to the credit of such account until paid to the Holders of the Notes shall be continuously collateralized by securities or obligations which qualify and are eligible under both the laws of the State of Texas and the laws of the United States of America to secure and be pledged as collateral for fiduciary accounts to the extent such money is not insured by the Federal Deposit Insurance Corporation. Payments made from such fiduciary account shall be made by check drawn on such fiduciary account unless the owner of such Notes shall, at its own expense and risk, request such other medium of payment. The Bank shall be under no liability for interest on any money received by it hereunder. Subject to the applicable unclaimed property laws of the State of Texas, any money deposited with the Bank for the payment of the principal, premium (if any), or interest on any Note and remaining unclaimed for three years after final maturity of the Note has become due and payable will be paid by the Bank to the Issuer, and the Holder of such Note shall thereafter look only to the Issuer for payment thereof, and all liability of the Bank with respect to such moneys shall thereupon cease. Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank for, and hold it harmless against, any loss, liability, or expense incurred -6- without negligence or bad faith on its part, arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and expense against any claim or liability in connection with the exercise or performance of any of its powers or duties under this Agreement. Section 5.07. Interpleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State District Court located in the State and County where either the Bank Office or the administrative offices of the Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to determine the rights of any Person claiming any interest herein. Section 5.08. DT Services. It is hereby represented and warranted that, in the event the Notes are otherwise qualified and accepted for "Depository Trust Company" services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with the "Operational Arrangements", which establishes requirements for securities to be eligible for such type depository trust services, including, but not limited to, requirements for the timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls. ARTICLE SIX MISCELLANEOUS PROVISIONS Section 6.01. Amendment This Agreement may be amended only by an agreement in writing signed by both of the parties hereto. Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written consent of the other. Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the Issuer or the Bank, respectively, at the addresses shown on page 9. Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience only and shall not affect the construction hereof. Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. Section 6.06. Severability. In case any provision herein shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 6.07. Benefits of Agreement Nothing herein, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim hereunder. -7- EXHIBIT A Section 6.08. Entire Agreement. This Agreement and the Note Resolution constitute the entire agreement between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between this Agreement and the Note Resolution, the Note Resolution shall govern. Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal of and interest on the Notes to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written notice; provided, however, an early termination of this Agreement by either party shall not be effective until (a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b) notice given to the Holders of the Notes of the appointment of a successor Paying Agent/Registrar. Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement shall not occur at any time which would disrupt, delay or otherwise adversely affect the payment of the Notes. Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Note Register (or a copy thereof), together with other pertinent books and records relating to the Notes, to the successor Paying Agent/Registrar designated and appointed by the • Issuer. The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect following the termination of this Agreement. Section 6.11. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas. j titB1T IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. THE CHASE MANHATTAN BANK BY: Title: [SEAL] Address: 600 Travis, Suite 1150 Houston, Texas 77002 Attest: Title: CITY OF WYLIE, TEXAS BY: Mayor Address: 2000 Highway 78 North Wylie, Texas 75098 (CITY SEAL) Attest: City Secretary -9 EXHIBIT A. Exhibit B to Ordinance DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 29 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: 1. The financial statements of the City appended to the Official Statement as Appendix B, but for the most recently concluded fiscal year. 2. The information under Tables 1 through 6 and 8 through 13. Accounting Principles The accounting principles referred to in such Section are the generally accepted accounting principles as applicable to governmental units as prescribed by The Government Accounting Standards Board. 45077513.1 WYLIE CITY COUNCIL AGENDA ITEM NO. September 11, 2001 Issue Consider and act upon approval of an Ordinance authorizing the issuance of$500,000 in Tax Notes, Series 2001, dated September 1, 2001 and all other matters related thereto. Background The City is proposing to issue $500,000 in Tax Notes in order to fund the purchase of equipment and software for various departments including Police, Fire, Public Works, Finance, Utility Billing and Personnel, and to pay costs associated with the issuance of the Notes. The City's Financial Advisors, First Southwest Company, will present the results of theent 6,(61c1 lttete at the Council meeting on September 11, 2001. Other Considerations The Council can take action to issue the Tax Notes or to reject the bids at this meeting. If the bids are awarded, the Council will need to adopt the Ordinance authorizing the tax notes. A Good Faith Deposit of$10,000 will be required from the successful bidder. Financial Consideration The debt service requirements for the Tax Note will be funded from property taxes. The average annual debt service payment over the five year amortization period of the $500,000 is estimated to be $111,500. Board/Commission Recommendations N/A Staff Recommendations Staff recommends that the City Council adopt the proposed ordinance authorizing the issue of $500,000 in Tax Notes, Series 2001, per the recommendation of the First Southwest Company. Attachments Ordinance repared Reviewed by Finance City Manager Approval PARKS & RECREATION FACILITIES DEVELOPMENT CORPORATION AGENDA ITEM NO. t a. . September 11, 2001 Issue Consider and Act Upon Approval of the FY02 4B Budget, authorizing expenditures for the FY02 Community Services Facilities Capital Improvement Plan. Background The Parks and Recreation Facilities Development Corporation was established in accordance with State law as a result of the January 15, 1994 election approving the 1/2 cent sales tax for parks, recreation, and library projects. The Board of Directors of the Corporation are: Mayor John Mondy Councilmember J.C. Worley Councilmember Chris Trout Shirley Burnett—Library Board Member Dan Chesnut-Parks Board Member Jules Farmer—Parks Board Member As set out in the Articles of Incorporation, the Board has the power to authorize the expenditure of Sales Tax Funds for projects approved by the City Council. Further, the Bylaws state that "It shall be the duty and obligation of the Board to finance and implement the Community Services Facilities Capital Improvement Plan as adopted by the Wylie City Council." The consistent increase in the 4B revenue has made it possible to transition from being simply project oriented to the ongoing funding of staff for the Parks & Recreation and Library Departments, while still allowing projects to be funded as well as maintaining a fund balance to apply as the match for County and State funding No new positions are proposed to be funded through the 4B Budget this year; existing personnel funded through the 4B include the Assistant Parks Superintendent, two Parks Maintenance Workers, a professional Librarian, the Community Center Coordinator and Building Monitor. Proposed expenditures include a 16' mower, trailer, and tree spade for the Park Department, the installation of irrigation in the new 5 acre park on FM 1378, and new holiday decorations for Olde City Park. In addition, the funding for the summer concerts has been expanded to provide for additional concerts, and partitions and a sound system are proposed for the Community Center. For the Library, the 4B will fund books, computer upgrades, and the Summer Reading Club. The combined Park, Recreation and Library projects constitute the Community Services Capital Facilities Improvement Plan for FY02. Financial Considerations Attached is a draft summary of the 4B Revenue Fund from the FY02 Budget. The beginning fund balance, coupled with the anticipated Sales Tax revenue for the coming budget year yields a total available resource of $948,660. The proposed expenditures for FY02 include the $77,070 for Library staffing and equipment, $269,700 for Park staffing, capital and equipment, $92,130 for Recreation staffing and equipment, and a transfer of$139,300 to the 4B Debt Service Fund yielding a fund balance of$370,460. Other Considerations The authority to levy the 1/2 sales tax is established in the Development Corporation Act of 1979, Article 5190.6, Section 4B, Vernon's Annotated Civil Statutes, as amended. The Act required the creation of the Parks and Recreation Facilities Development Corporation which receives and manages the sales tax receipts. Board/Commission Recommendation The Library Board recommends approval of the proposed FY02 4B Budget. The Park and Recreation Advisory Board recommends approval of the proposed FY02 4B Budget, with the exception of the tree spade and the holiday decorations. Staff Recommendation N/A Attachment Proposed 4B Sales Tax Revenue Fund • re ared y Revie b Financ City Man pproval PARKS & RECREATION FACILITIES DEVELOPMENT CORPORATION AGENDA ITEM NO. September 11, 2001 Issue Consider and Act Upon Approval of the FY02 4B Budget, authorizing expenditures for the FY02 Community Services Facilities Capital Improvement Plan. Background The Parks and Recreation Facilities Development Corporation was established in accordance with State • law as a result of the January 15, 1994 election approving the 1/2 cent sales tax for parks, recreation, and library projects. The Board of Directors of the Corporation are: Mayor John Mondy Councilmember J.C.Worley Councilmember Chris Trout Shirley Burnett—Library Board Member Dan Chesnut-Parks Board Member Jules Farmer—Parks Board Member As set out in the Articles of Incorporation, the Board has the power to authorize the expenditure of Sales Tax Funds for projects approved by the City Council. Further, the Bylaws state that "It shall be the duty and obligation of the Board to finance and implement the Community Services Facilities Capital Improvement Plan as adopted by the Wylie City Council." The consistent increase in the 4B revenue has made it possible to transition from being simply project oriented to the ongoing funding of staff for the Parks & Recreation and Library Departments, while still allowing projects to be funded as well as maintaining a fund balance to apply as the match for County and State funding No new positions are proposed to be funded through the 4B Budget this year; existing personnel funded through the 4B include the Assistant Parks Superintendent, two Parks Maintenance Workers, a professional Librarian, the Community Center Coordinator and Building Monitor. Proposed expenditures include a 16' mower, trailer, and tree spade for the Park Department, the installation of irrigation in the new 5 acre park on FM 1378, and new holiday decorations for Olde City Park. In addition, the funding for the summer concerts has been expanded to provide for additional concerts, and partitions and a sound system are proposed for the Community Center. For the Library, the 4B will fund books, computer upgrades, and the Summer Reading Club. The combined Park, Recreation and Library projects constitute the Community Services Capital Facilities Improvement Plan for FY02. 110 Financial Considerations 91 Attached is a draft summa of the 4B Revenue Fund from the FY02 Budget. The beginning fund balance, coupled with the ticipated Sales Tax revenue for the coming budget year yields a total available resource of $949,860. The proposed expenditures for FY02 include the $77,070 for Library staffing and equipment, $269,700 for Park staffing, capital and equipment, $92,130 for Recreation staffing and equipment, and a transfer of$139,300 to the 4B Debt Service Fund yielding a fund balance of$3.11-660. 4B SALES TAX REVENUE FUND BUDGET BUDGET BUDGET PROPOSED STAFFING LEVEL 1998-1999 1999-2000 2000-2001 2001-2002 Asst. Parks Superintendent 28-E 0.0 0.0 1.0 1.0 Maintenance Worker 7-N 0.0 1.0 2.0 2.0 Comm Center Coordinator 23-E 0.0 1.0 1.0 1.0 Building Monitor- Part-time 0.0 0.5 0.5 0.5 Librarian 26-E 0.0 1.0 1.0 1.0 ' TOTAL 0.0 3.5 5.5 5.5 STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $527,633 $652,700 $648,810 $522,310 REVENUES: 394 35-c) Sales Tax 393,323 420,000 384,800 Interest Income 32,150 30,000 30,000 30,000 TOTAL REVENUES 425,473 450,000 414,800 427,550 TOTAL AVAILABLE RESOURCES 953,106 1,102,700 1,063,610 949,860 EXPENDITURES Park 57,178 248,450 248,460 269,700 Community Center 40,618 87,580 87,610 92,130 Library 55,417 67,250 67,230 77,070 Combined Services 0 1,570 0 0 TIF Grant Match 0 40,000 0 0 Transfer to 4B Debt Svc Fund 141,075 138,000 138,000 139,300 Transfer to General Fund 10,000 0 0 0 TOTAL EXPENDITURES 304,288 582,850 541,300 578,200 ENDING FUND BALANCE $648,818 $519,850 $522,310 $371,660 51 4B SALES TAX REVENUE FUND BUDGET BUDGET BUDGET PROPOSED STAFFING LEVEL 1998-1999 1999-2000 2000-2001 2001-2002 Asst. Parks Superintendent 28-E 0.0 0.0 1.0 1.0 Maintenance Worker 7-N 0.0 1.0 2.0 2.0 Comm Center Coordinator 23-E 0.0 1.0 1.0 1.0 Building Monitor-Part-time 0.0 0.5 0.5 0.5 Librarian 26-E 0.0 1.0 1.0 1.0 TOTAL 0.0 3.5 5.5 5.5 STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $527,633 $652,700 $648,810 $522,310 REVENUES: Sales Tax 393,323 420,000 384,800 396,350 Interest Income 32,150 30,000 30,000 30,000 TOTAL REVENUES 425,473 450,000 414,800 426,350 TOTAL AVAILABLE RESOURCES 953,106 1,102,700 1,063,610 948,660 EXPENDITURES Park 57,178 248,450 248,460 269,700 Community Center 40,618 87,580 87,610 92,130 Library 55,417 67,250 67,230 77,070 Combined Services 0 1,570 0 0 TIF Grant Match 0 40,000 0 0 Transfer to 4B Debt Svc Fund 141,075 138,000 138,000 139,300 Transfer to General Fund 10,000 0 0 0 TOTAL EXPENDITURES 304,288 582,850 541,300 578,200 ENDING FUND BALANCE $648,818 $519,850 $522,310 $370,460 51 WYLIE CITY COUNCIL AGENDA ITEM NO. September 11, 2001 Issue Consider and Act Upon Approval of the FY02 4B Budget and the Community Services Facilities Capital Improvement Plan Background The Parks and Recreation Facilities Development Corporation was established in accordance with State law as a result of the January 15, 1994 election approving the 1/2 cent sales tax for parks, recreation, and library projects. The Board of Directors of the Corporation are: Mayor John Mondy Councilmember J.C. Worley Councilmember Chris Trout Shirley Burnett—Library Board Member Dan Chesnut-Parks Board Member Jules Fanner—Parks Board Member As set out in the Articles of Incorporation, the Board has the power to authorize the expenditure of Sales Tax Funds for projects approved by the City Council. Further, the Bylaws state that "It shall be the duty and obligation of the Board to finance and implement the Community Services Facilities Capital Improvement Plan as adopted by the Wylie City Council." The consistent increase in the 4B revenue has made it possible to transition from being simply project oriented to the ongoing funding of staff for the Parks & Recreation and Library Departments, while still allowing projects to be funded as well as maintaining a fund balance to apply as the match for County and State funding No new positions are proposed to be funded through the 4B Budget this year; existing personnel funded through the 4B include the Assistant Parks Superintendent, two Parks Maintenance Workers, a professional Librarian, the Community Center Coordinator and Building Monitor. Proposed expenditures include a 16' mower, trailer, and tree spade for the Park Department, the installation of irrigation in the new 5 acre park on FM 1378, and new holiday decorations for Olde City Park. In addition, the funding for the summer concerts has been expanded to provide for additional concerts, and partitions and a sound system are proposed for the Community Center. For the Library, the 4B will fund books, computer upgrades, and the Summer Reading Club. The combined Park, Recreation and Library projects constitute the Community Services Capital Facilities Improvement Plan for FY02. Financial Considerations Attached is a draft summary of the 4B Revenue Fund from the FY02 Budget. The beginning fund balance, coupled with the anticipated Sales Tax revenue for the coming budget year yields a total available resource of $948,660. The proposed expenditures for FY02 include the $77,070 for Library staffing and equipment, $269,700 for Park staffing, capital and equipment, $92,130 for Recreation staffing and equipment, and a transfer of$139,300 to the 4B Debt Service Fund yielding a fund balance of$370,460. Other Considerations The authority to levy the '/z sales tax is established in the Development Corporation Act of 1979, Article 5190.6, Section 4B, Vernon's Annotated Civil Statutes, as amended. The Act required the creation of the Parks and Recreation Facilities Development Corporation which receives and manages the sales tax receipts. Board/Commission Recommendation The Library Board recommends approval of the proposed FY02 4B Budget. The Park and Recreation Advisory Board recommends approval of the proposed FY02 4B Budget, with the exception of the tree spade and the holiday decorations. Staff Recommendation N/A Attachment Proposed 4B Sales Tax Revenue Fund repare y Reviewl.y finance City Manage pproval WYLIE CITY COUNCIL AGENDA ITEM NO. September 11, 2001 Issue Consider and Act Upon Approval of the FY02 4B Budget and the Community Services Facilities Capital Improvement Plan Background The Parks and Recreation Facilities Development Corporation was established in accordance with State law as a result of the January 15, 1994 election approving the 1/2 cent sales tax for parks, recreation, and library projects. The Board of Directors of the Corporation are: Mayor John Mondy Councilmember J.C. Worley Councilmember Chris Trout Shirley Burnett—Library Board Member Dan Chesnut-Parks Board Member Jules Farmer—Parks Board Member As set out in the Articles of Incorporation, the Board has the power to authorize the expenditure of Sales Tax Funds for projects approved by the City Council. Further, the Bylaws state that "It shall be the duty and obligation of the Board to finance and implement the Community Services Facilities Capital Improvement Plan as adopted by the Wylie City Council." The consistent increase in the 4B revenue has made it possible to transition from being simply project oriented to the ongoing funding of staff for the Parks & Recreation and Library Departments, while still allowing projects to be funded as well as maintaining a fund balance to apply as the match for County and State funding No new positions are proposed to be funded through the 4B Budget this year; existing personnel funded through the 4B include the Assistant Parks Superintendent, two Parks Maintenance Workers, a professional Librarian, the Community Center Coordinator and Building Monitor. Proposed expenditures include a 16' mower, trailer, and tree spade for the Park Department, the installation of irrigation in the new 5 acre park on FM 1378, and new holiday decorations for Olde City Park. In addition, the funding for the summer concerts has been expanded to provide for additional concerts, and partitions and a sound system are proposed for the Community Center. For the Library, the 4B will fund books, computer upgrades, and the Summer Reading Club. The combined Park, Recreation and Library projects constitute the Community Services Capital Facilities Improvement Plan for FY02. ffv Financial Considerations' Attached is a draft summary of the 4B Revenue Fund from the FY02 Budget. The beginning fund balance, coupled with the icipated Sales Tax revenue for the coming budget year yields a total available resource of. . The proposed expenditures for FY02 include the $77,070 for Library staffing and equipment, $269,700 for Park staffing, capital and equipment, $92,130 for Recreation staffing and equipment, and a transfer of$139,300 to the 4B Debt Service Fund yielding a fund balance of$3- 60. 3 1`f6C) 4B SALES TAX REVENUE FUND BUDGET BUDGET BUDGET PROPOSED STAFFING LEVEL 1998-1999 1999-2000 2000-2001 2001-2002 Asst. Parks Superintendent 28-E 0.0 0.0 1.0 1.0 Maintenance Worker 7-N 0.0 1.0 2.0 2.0 Comm Center Coordinator 23-E 0.0 1.0 1.0 1.0 Building Monitor- Part-time 0.0 0.5 0.5 0.5 Librarian 26-E 0.0 1.0 1.0 1.0 ` TOTAL 0.0 3.5 5.5 5.5 STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $527,633 $652,700 $648,810 $522,310 REVENUES: 3 ) 35: Sales Tax 393,323 420,000 384,800 50 Interest Income 32,150 30,000 30,000 30,000 TOTAL REVENUES 425,473 450,000 414,800 427,550 TOTAL AVAILABLE RESOURCES 953,106 1,102,700 1,063,610 949,860 EXPENDITURES Park 57,178 248,450 248,460 269,700 Community Center 40,618 87,580 87,610 92,130 Library 55,417 67,250 67,230 77,070 Combined Services 0 1,570 0 0 TIF Grant Match 0 40,000 0 0 Transfer to 4B Debt Svc Fund 141,075 138,000 138,000 139,300 Transfer to General Fund 10,000 0 0 0 TOTAL EXPENDITURES 304,288 582,850 541,300 578,200 ENDING FUND BALANCE $648,818 $519,850 $522,310 $371,660 51 4B SALES TAX REVENUE FUND BUDGET BUDGET BUDGET PROPOSED STAFFING LEVEL 1998-1999 1999-2000 2000-2001 2001-2002 Asst. Parks Superintendent 28-E 0.0 0.0 1.0 1.0 Maintenance Worker 7-N 0.0 1.0 2.0 2.0 Comm Center Coordinator 23-E 0.0 1.0 1.0 1.0 Building Monitor-Part-time 0.0 0.5 0.5 0.5 Librarian 26-E 0.0 1.0 1.0 1.0 TOTAL 0.0 3.5 5.5 5.5 STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $527,633 $652,700 $648,810 $522,310 REVENUES: Sales Tax 393,323 420,000 384,800 396,350 Interest Income 32,150 30,000 30,000 30,000 TOTAL REVENUES 425,473 450,000 414,800 426,350 TOTAL AVAILABLE RESOURCES 953,106 1,102,700 1,063,610 948,660 EXPENDITURES Park 57,178 248,450 248,460 269,700 Community Center 40,618 87,580 87,610 92,130 Library 55,417 67,250 67,230 77,070 Combined Services 0 1,570 0 0 TIF Grant Match 0 40,000 0 0 Transfer to 4B Debt Svc Fund 141,075 138,000 138,000 139,300 Transfer to General Fund 10,000 0 0 0 TOTAL EXPENDITURES 304,288 582,850 541,300 578,200 ENDING FUND BALANCE $648,818 $519,850 $522,310 $370,460 51 WYLIE CITY COUNCIL AGENDA ITEM NO. 4. September 11, 2001 Issue Consider and act upon approval of an Ordinance of the City of Wylie,Texas, amending the budget for Fiscal Year 2001,beginning October 1,2000, and ending September 30,2001;repealing all conflicting ordinances;containing a severability clause; and providing for an effective date. Background Assumptions that form the basis of revenue and expenditure projections are made in August preceding adoption of the budget in September. The mid-year and final review processes enable the City to determine the validity or accuracy of the assumptions. The processes also contemplate that the City operates in a dynamic environment and that actions are required to appropriately respond to the change in conditions. This agenda item is reflective of dynamic changes that are occurring late in this fiscal year. The revenue changes are to recognize the issuance of general obligation debt for street construction of $4,500,000 and $500,000 for computer systems for public safety and finance in the General Fund. Expenditure budget increases include appropriations for the purchase of land for$23,340 and$25,870 for a new computer system in Municipal Court. Funding for the Municipal Court Technology improvements have been accumulating since September 1, 1999 when an Ordinance was adopted establishing the Municipal Court Technology Fee. The ordinance and associated state law have a "sunset" date September 1, 2005. The Council budgeted $7,200.00 for a five year Lease Purchase in FY2001.Revenues have since increased to a point($25,800.00)where a Lease Purchase is unnecessary. The proposed budget amendments consist of re-estimates of revenue in the General Fund and Street CIP and amended appropriations in the General Funds. Financial Considerations General Fund Street CIP Mid-Year Ending Fund Balance 1,038,370 2,196,630 Net Increases to Fund Balance 450,690 4,500,000 Estimated Ending Fund Balance 1,489,060 6,696,630 Mid-year Amended Final Amended Budget Budget Total Expenditures 20,555,230 20,604,540 Total Revenues 18,114,680 23,114,680 Net Increases in Expenditures 49,310 Net Increases in Revenues 5,000,000 Other Considerations In the City Charter under Article 7,Municipal Finance, Section 4:Amendments After Adoption,it states "If during the fiscal year, the City Manager certifies that there are revenues available for appropriation in excess of those estimated in the budget, the City Council may make supplemental appropriations to fund other appropriations as desired." Staff Recommendation It is recommended that the City Council approve the amendments as proposed and adopt the ordinance amending the Fiscal Year 2000-2001 Budget. Attachments Ordinance Attachment 1 — Combined Summary Attachment 2—Year End Budget Amendments for FY 2000 Prepared by Revi by Finance City Mana Approval ORDINANCE NO. AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING THE BUDGET FOR THE FISCAL YEAR 2001 BEGINNING OCTOBER 1, 2000, AND ENDING SEPTEMBER 30, 2001, BY AMENDING ORDINANCE NO. 2001-20; REPEALING ALL CONFLICTING ORDINANCES; CONTAINING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City Council has heretofore adopted Ordinance No. 2001-20 adopting a Budget and appropriating resources for Fiscal Year 2001 (FY2001) beginning October 1, 2000, and ending September 30, 2001; and, WHEREAS, the Staff has presented information to the Council concerning the actual income and expenses for the first half of FY2001 and made comparisons of such information to the heretofore budgeted projections; and, WHEREAS,based upon such review the Staff has recommended to the Council that certain amendments to the Budget, as hereinafter set forth, be made to facilitate operation and administration of the operations of the City for the balance of FY2001; and, WHEREAS, the Council has the authority to make amendments to the City Budget under Article VII, Section 4 of the City Charter, as well as State law; and, WHEREAS, the Council has determined that the proposed amendments to the FY2001 Budget, with the revenues and expenditures therein contained, is in the best interest of the City and therefore desires to adopt the same by formal action; NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF WYLIE, TEXAS, as follows: SECTION I The proposed amendments to the FY2001 Budget of the City of Wylie, as heretofore adopted by Ordinance No. 2001-20, as summarized in Attachment 1 which is attached hereto and fully incorporated herein by reference, be, and the same hereby are, completely adopted and approved as amendments to the said FY2001 Budget. SECTION II All portions of the existing FY2001 Budget and Ordinance No. 2001-20, except as specifically herein amended, shall remain in full force and effect, and not be otherwise affected by the adoption of the amendatory ordinance. SECTION III Should any paragraph, sentence, sub-division, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part or parts as declared to be invalid, illegal, or unconstitutional. SECTION IV This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. SECTION V That all other ordinances and code provisions in conflict herewith are hereby repealed to the extent of any such conflict or inconsistency and all other provisions of the Wylie City Code not in conflict herewith shall remain in full force and effect. SECTION VI The repeal of any ordinance, or parts thereof, by the enactment of the Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as affecting any rights of the municipality under any section or provision of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 1 lth day of September, 2001. John Mondy, Mayor ATTEST: Barbara Salinas, City Secretary ATTACHMENT 1 CITY OF WYLIE PROPOSED FY2001 YEAR-END BUDGET AMENDMENTS September 11,2001 COMBINED SUMMARY 2000-2001 ALL FUNDS ALL FUNDS FINAL NET CHANGE AMENDED GENERAL STREET AMENDED (for purposes of AMENDED BUDGET FUND FUND BUDGET(1) comparison) AUDITED FUND BALANCE 9-30-00 11,305,108 N/A N/A N/A 11,305,108 N/A REVENUES: Ad Valorem Taxes 4,534,020 - 4,534,020 - Non-Property Taxes 1,682,400 1,682,400 - Franchise Fees 730,000 730,000 - Licenses and Permits 328,000 328,000 - Intergovernmental Revenue 190,740 - 190,740 - Service Fees 5,017,670 5,017,670 - Court Fees and Fines 513,000 513,000 - Interest&Miscellaneous Income 790,450 790,450 - Bond Proceeds 3,720,000 500,000 4,500,000 8,720,000 5,000,000 Transfers from Other Funds 608,400 - 608,400 - TOTAL REVENUES 18,114,680 500,000 4,500,000 - 23,114,680 5,000,000 EXPENDITURES: General Government 2,648,350 49,310 2,697,660 49,310 Public Safety 2,909,830 - 2,909,830 - Urban Development 534,310 - 534,310 - Streets 635,610 635,610 - Community Services 1,230,620 - - 1,230,620 - Utilities 5,223,250 - 5,223,250 - Debt Service 2,622,790 2,622,790 - Capital Projects 3,042,720 3,042,720 - Economic Development 1,107,350 1,107,350 - Transfers to Other Funds 600,400 600,400 - TOTAL EXPENDITURES 20,555,230 49,310 - - 20,604,540 49,310 ENDING BALANCES 8,864,558 13,815,248 NET CHANGE TO ENDING FUND BALANCE 450,690 4,500,000 - 4,950,690 4,950,690 TOTAL REVENUES 23,114,680 NET DECREASE(INCREASE)IN FUND BALANCES(Mid-Year Budget) 2,440,550 Amendments to Budget (4,950,690) TOTAL APPROPRIABLE FUNDS 20,604,540 (1) All funds are included in the Original Budget and Amended Budget columns. However, individual fund columns include only the funds that are affected by proposed budget amendments. ATTACHMENT 2 YEAR-END BUDGET AMENDMENTS FOR FY 2001 September 11,2001 GENERAL FUND ACCOUNT NO. ACCOUNT DESC. EXP/(REV) AMOUNT DESCRIPTION 10-000-49325-0000 Tax Note Proceeds Rev (500,000) Equipment&Software for Police, Fire, Finance, Personnel and Utility Billing 10-122-58810-0000 Computer Hard/Software Exp 25,870 New Systen Financed by Municipal Court Technology Fees 10-181-58110-0000 Land Purchase Exp 23,440 Purchase of Lot at 110 West Jackson Net(Increase)/Decrease to Fund Balance (450,690) STREETS CIP FUND ACCOUNT NO. ACCOUNT DESC. EXP/(REV) AMOUNT DESCRIPTION 411-000-49320-0000 Bond Proceeds Rev (4,500,000) Proceeds from sale of G.O. Bonds Series 2001 Net(Increase)/Decrease to Fund Balance (4,500,000) 09/07/2001 9:49 AM C:\1JUDY\BUDGET\FY2000\FY2001YEARENDAMEND.xls WYLIE CITY COUNCIL AGENDA ITEM NO. September 11, 2001 Issue Consider and act upon approval of an Ordinance of the City of Wylie, Texas, amending the budget for Fiscal Year 2001, beginning October 1, 2000, and ending September 30, 2001; repealing all conflicting ordinances; containing a severability clause; and providing for an effective date. Background Assumptions that form the basis of revenue and expenditure projections are made in August preceding adoption of the budget in September. The mid-year and final review processes enable the City to determine the validity or accuracy of the assumptions. The processes also contemplate that the City operates in a dynamic environment and that actions are required to appropriately respond to the change in conditions. This agenda item is reflective of dynamic changes that are occurring late in this fiscal year. The revenue changes are to recognize the issuance of general obligation debt for street construction of $4,500,000 and $500,000 for computer systems for public safety and finance in the General Fund. Expenditure budget increases include appropriations for the purchase of land for $23,340 and $25,870 for a new computer system in Municipal Court. The proposed budget amendments consist of re-estimates of revenue in the General Fund and Street CIP and amended appropriations in the General Funds. Financial Considerations General Fund Street CIP Mid-Year Ending Fund Balance 1,038,370 2,196,630 Net Increases to Fund Balance 450,690 4,500,000 Estimated Ending Fund Balance 1,489,060 6,696,630 Mid-year Amended Final Amended Budget Budget Total Expenditures 20,555,230 20,604,540 Total Revenues 18,114,680 23,114,680 Net Increases in Expenditures 49,310 Net Increases in Revenues 5,000,000 Other Considerations In the City Charter under Article 7, Municipal Finance, Section 4: Amendments After Adoption, it states "If during the fiscal year, the City Manager certifies that there are revenues available for appropriation in excess of those estimated in the budget, the City Council may make supplemental appropriations to fund other appropriations as desired." Staff Recommendation It is recommended that the City Council approve the amendments as proposed and adopt the ordinance amending the Fiscal Year 2000-2001 Budget. Attachments Ordinance Attachment 1 —Combined Summary Attachment 2—Year End Budget Amendments for FY 2000 Prepared by Reviewed by Finance City Manager Approval )/ 2c>5?) /i /70 Q) Si7 & 2ck / //, y.3a ZS606 8ad SST Icy 200 2 12,600 Zvt, 3 /2,d' av 2,40y /2,6 oo -kt\ - (104 ‘3(ASI &b(•uv+- LA) ti3revv---N*-5 °415 LAIr-t•2 C`- tkvY\ -C(-ct-cLk_ re14- , (qq61° C.A CL ha- t) 4 .Q_s4-a.L(,ts LCe...3 wow; c�•,, — �'I�-�,�c� Q . 4\r-IL et.01J V e•-c-i- f ,o atkk.it b e b o ck s ((fvA o_v (Awvc.C55L o \ . ins VVYLIE CITY COUNCIL AGENDA ITEM NO. �. September 11, 2001 Issue Hold a public hearing and consider and act upon an ordinance of the City of Wylie, Texas, adopting a budget and appropriating resources for Fiscal Year 2002, beginning October 1, 2001, and ending September 30, 2002. Backzround The proposed tax rate for fiscal year 2001-2002 will decrease$0.005 per$100 assessed valuation from $0.725 to $0.72. In May 1999,the voters approved the issuance of$17,940,000 in general obligation bonds to be used for street,drainage and park improvements,the debt service on which would require an increase in the tax rate of$0.05. The tax rate was increased two and one-half cents in FY2000 and another two and one-half cents in FY2001. In fiscal year 2000-2001,the total assessed value oftaxable property increased$81,536,860 from the tax base in fiscal year 1999-2000. In fiscal year 2001-2002,the total assessed value has increased another $130,784,482. This increase has allowed for the $0.005 decrease in the tax rate. The increase in assessed valuation in FY2002 and the decrease in the tax rate will generate an additional $889,371 in ad valorem tax revenues. The General Fund portion of this increase is $426,162, while the General Obligation Debt Service Fund will receive an additional $463,209 in ad valorem taxes in fiscal year 2002. The original estimate of the General Fund Balance at the end of fiscal year 2001 was$955,110. After Staff review, revenues at the end of fiscal year 2001 are now estimated to increase$381,610 over the original estimate to $7,202,900. Significant increases in fiscal year 2000-2001 revenues over the amended budget are estimated in Licenses and Permits ($272,000), Service Fees ($77,990) and Intergovernmental Revenues($71,160). Receipts from Sales Tax are estimated to fall short of budget numbers by$70,400. In addition,the City will issue$500,000 in general obligation debt at the end of fiscal year 2001 for the purchase of computer and related equipment in FY2002. Expenditures at year end are estimated at$142,680 more than amended budget figures. Most of the increased expenditures are the result of the rapid growth of the City and increased costs for trash service and costs associated with inspections and permitting of new construction. As a result, the fiscal year 2001 ending fund balance in the General Fund is now estimated to be$1,726,300. The FY2002 budget was constructed to retain at least the same number of days of operating expenses available in the fund balance at the end of FY2002 as at the end of FY2001. The budget was developed using a zero-based budget approach for all departments. Staff determined how many dollars it would take to maintain the same level of service as the prior year and set that as the baseline. There are a few increases in equipment and new personnel budgeted over the baseline that was determined in the General Fund. In the Utility Fund,fund balance(working capital)is estimated to increase$1,112,080 over the budgeted fund balance. About $175,000 of this increase is attributable to an actual beginning fund balance of $2,268,290, as compared to an estimated beginning fund balance of$2,092,790. Increased operating revenues accounts for another $465,400. The remainder of the increase is the result of lower than budgeted expenses, particularly capital projects. These budgeted projects are incomplete and will be finished in FY2002. The funds needed for their completion have been re-budgeted in FY2002. The North Texas Municipal Water District has increased the retail price of the water it sells to the City by $0.08 per 1,000 gallons in FY2002. Water rates will be increased to recover the increased cost of the purchase of water and will generate approximately$70,000 in additional revenue. The attached summary of all operating and capital funds includes the budget for the Wylie Economic Development Corporation. Financial Considerations For all budgeted funds, the projected totals for revenues and expenditures are $17,617,360 and $25,506,730 respectively. Projected expenditures will be$7,889,370 greater than budgeted revenues for all funds. The net$7,889,370 spending in excess of revenues is due to expenditures of$8,492,860 for capital projects(streets,utility construction and new wastewater treatment plant)and hardware/software systems for public safety and finance. The budgeted ending find balance for the General Fund in FY2001 is$1,302,340. This amount equates to a reserve of 14.3% of budgeted expenditures or approximately 52 days of operating expenses. The budgeted ending fund balance (working capital)in the Utility Fund in FY 2002 is$1,633,500. This amount equates to about 90 days of operating expenses or 25%of budgeted expenditures on hand. Other Considerations Article 7, Section 3(D)of the City's Home Rule Charter states that if the City fails to adopt the budget by the twenty-seventh day of September, the amounts appropriated for operation during the current fiscal year shall be deemed adopted for the ensuing fiscal year on a month-to-month basis. A tax rate ordinance for Fiscal Year 2001-2002 must be adopted to support this budget. Staff Recommendation It is recommended that the City Council adopt the Fiscal Year 2002 budget as presented. Attachments Ordinance Exhibit A— Summary of Revenues,Expenditures and Changes in Fund Balance Exhibit B—Fiscal 2002 Proposed Budget(Condensed) tadare/4--- epared by Revi d by Finance City Manag pproval ORDINANCE NO. AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, ADOPTING A BUDGET AND APPROPRIATING RESOURCES FOR FISCAL YEAR 2002, BEGINNING OCTOBER 1, 2001, AND ENDING SEPTEMBER 30, 2002; REPEALING ALL CONFLICTING ORDINANCES; CONTAINING A SEVERABILTIY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City Manager and staff have prepared and filed with the City Secretary a proposed budget for operation of the City during Fiscal Year 2002; and WHEREAS, the proposed budget appears to be in form and substance which fully complies with all applicable provisions of the City Charter and State law; and WHEREAS, the proposed budget has been available for public inspection and review; and WHEREAS, the City Council has this date conducted a public hearing to receive input from the citizens of the City concerning the content of the budget; and WHEREAS, the Council having considered the proposed budget at length, and having provided input into its preparation, has determined that the proposed budget and the revenues and expenditures therein contained is in the best interest of the City and therefore desires to adopt the same by formal action; NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Wylie, Texas, as follows: Section 1. That the proposed budget of the revenue of the City and the expenses of conducting the affairs thereof, as summarized in the attached Exhibit A and fully incorporated herein by reference, be, and the same hereby is, completely adopted and approved as the Budget for the City for Fiscal Year 2002. Section 2. That the sum of is hereby appropriated out to the General, Wylie Economic Development Corporation, 4B Sales Tax Revenue, Emergency Communications, Fire Training Center, General Obligation Debt Service, 4B Debt Service, Street Capital Project, Park Capital Project, Utility, Utility Construction and Fleet Replacement Funds for payment of Operating Expenses and Capital Outlay of the operation and administration of the City according to the various purposes and intents therein described. Section 3. The specific authority is hereby given to the City Manager to transfer appropriations budgeted from an account classification or activity to another within any individual department or activity; and to transfer appropriations from designated appropriations to any individual department or activity as provided in the City Charter. Section 4. Should any paragraph, sentence, sub-division, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part or parts as declared to be invalid, illegal, or unconstitutional. Section 5. This ordinance shall be in full force and effect from and after its adoption by the City Council pursuant to the law and the City Charter. Section 6. That all other ordinances and code provisions in conflict herewith are hereby repealed to the extent of any such conflict or inconsistency. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, on this the 11th day of September, 2001. John Mondy, Mayor ATTEST Barbara Salinas, City Secretary NOTICE OF PUBLIC HEARING AND BUDGET SUMMARY FOR FY 2002 CITY OF WYLIE NOTICE IS HEREBY GIVEN,pursuant of Article VII,Section 3 of the Wylie City Charter,that the Wylie City Council will conduct a public hearing on the proposed City Budget for Fiscal Year 2002 on the 11th day of September,2001 at 6:00p.m.n the Council Chambers of the Wylie Municipal Complex,2000 SH 78 N.,Wylie,Texas. Copies of the proposed tudget Ere available for inspection by the public at the Rita and Truett Smith Library,the City Secretary's Office and the City Manager's Office during regula business hours. The following is a General Summary of the budget which has been proposed. DEBT SERVICE FUNDS PROPRIETARY FUNDS SPECIAL CAPITAL REVENUE G O DEBT 4B DEBT PROJECTS UTILITY FLEET TOTAL ALL GENERAL FUND FUNDS SERVICE SERVICE FUNDS UTILITY FUND CONSTR. REPLACE. FUNDS BEGINNING BALANCES $ 1,726,300 $ 2,695,550 $ 268,980 $ 180,610 $ 6,298,730 $ 3,019,520 $ 2,507,080 $ 596,090 $ 17,292,860 REVENUES: Ad Valorem Taxes 3,683,600 - 1,739,770 - - - - - 5,423,370 Non-Property Taxes 795,090 792,700 - - - - - - 1,587,790 Franchise Fees 776,490 - - - - - - - 776,490 Licenses&Permits 630,000 - - - - - - 630,000 Intergovernmental 235,730 30,000 - - - - - - 265,730 Service Fees 1,454,700 253,000 - - - 5,079,000 - 221,680 7,008,380 Court Fees 540,000 - - - - - - 540,000 Interest&Misc.Income 132,100 50,000 22,000 9,000 120,000 133,670 110,000 25,000 601,770 TOTAL REVENUES 8,247,710 1,125,700 1,761,770 9,000 120,000 5,212,670 110,000 246,680 16,833,530 Transfers from Other Funds 420,000 182,130 - 139,300 - 42,400 - - 783,830 TOTAL AVAILABLE RESOURCES 10,394,010 4,003,380 2,030,750 328,910 6,418,730 8,274,590 2,617,080 842,770 34,910,220 EXPENDITURES: General Government 3,132,060 - - - - - - 20,000 3,152,060 Public Safety 3,438,900 397,130 - - - - - - 3,836,030 Development Services 764,030 - - - - - - - 764,030 Streets 694,470 - - - - - - - 694,470 Community Services 880,080 438,900 - - - - - - 1,318,980 Utilities - - - - - 5,026,960 - 34,000 5,060,960 Debt Service - - 1,744,050 140,490 - 1,194,130 - - 3,078,670 Capital Projects - - - - 4,530,000 - 1,500,000 - 6,030,000 Economic Development - 787,700 - - - - - - 787,700 TOTAL EXPENDITURES 8,909,540 1,623,730 1,744,050 140,490 4,530,000 6,221,090 1,500,000 54,000 24,722,900 Transfers to Other Funds 182,130 139,300 - 420,000 42,400 - 783,830 ENDING FUND BALANCE $ 1,302,340 $ 2,240,350 $ 286,700 $ 188,420 $ 1,888,730 $ 1,633,500 $ 1,074,680 $ 788,770 $ 9,403,490 m x 3 v D TOTAL REVENUES $ 17,617,360 NET DECREASE(INCREASE)IN FUND BALANCE 7,889,370 TOTAL APPROPRIABLE FUNDS $ 25,506,730 1 Exhibit B FISCAL 2002 PROPOSED BUDGET City of Wylie, Texas Tuesday, Sept. 11 ,2001 FY 2002 DEPARTMENTAL STAFFING SUMMARY (ALL POSITIONS SHOWN AS FULL-TIME EQUIVALENTS) BUDGET BUDGET BUDGET BUDGET 1998-1999 1999-2000 2000-2001 2001-2002 General Fund City Manager 3.50 2.50 3.50 4.50 City Secretary 1.50 2.00 2.00 2.00 Municipal Court 2.00 2.00 2.00 2.00 Finance 6.00 6.00 6.00 4.50 Facilities & Fleet Services 1.00 1.00 1.00 1.00 Police 28.10 30.10 31.10 26.10 Fire 13.50 18.00 19.00 27.00 Animal Control 1.00 1.00 1.40 1.50 Development Services 7.50 8.50 - - Planning - - 2.50 3.00 Building Inspections - - 4.50 7.00 Code Enforcement - - 1.50 1.00 Streets 5.25 5.25 6.25 5.75 Parks 6.00 6.00 7.00 7.00 Recreation 0.50 1.85 1.35 1.80 Library 4.75 4.50 4.50 4.75 Total General Fund 80.60 88.70 93.60 98.90 Utility Fund Utilities Administration 4.00 6.50 3.50 3.50 Utilities-Water& Sewer 8.00 8.00 8.00 9.00 Engineernig - - 4.00 3.00 Utility Billing 3.50 4.50 5.50 7.00 Total Utility Fund 15.50 19.00 21.00 22.50 Wylie Economic Development 2.00 2.00 2.00 1.00 4B Sales Tax Fund Parks - 1.00 3.00 3.00 Community Center - 1.50 1.50 1.50 Library - 1.00 1.00 1.00 Total 48 Sales Tax Fund - 3.50 5.50 5.50 Emergency Communications Fund Dispatch Services - - - 6.75 Total Emergency Comm Fund - - - 6.75 TOTAL ALL FUNDS 98.10 113.20 122.10 134.65 2 ALL OPERATING AND CAPITAL FUNDS ALL OPERATING AND CAPITAL FUNDS FISCAL YEAR 2001-2002 BUDGET FISCAL YEAR 2001-2002 BUDGET DEBT SERVICE FUNDS PROPRIETARY FUNDS SPECIAL CAPITAL REVENUE G O DEBT 4B DEBT PROJECTS UTILITY FLEET TOTAL ALL GENERAL FUND FUNDS SERVICE SERVICE FUNDS UTILITY FUND CONSTR. REPLACE. FUNDS BEGINNING BALANCES $ 1,726,300 $ 2,695,550 $ 268,980 $ 180,610 BEGINNING BALANCES $ 6,298,730 $ 3,019,520 $ 2,507,080 $ 596,090 $ 17,292,860 REVENUES: REVENUES: Ad Valorem Taxes 3,683,600 - 1,739,770 - Ad Valorem Taxes - - - - 5,423,370 Non-Property Taxes 795,090 792,700 - - Non-Property Taxes - - - - 1,587,790 Franchise Fees 776,490 - - - Franchise Fees - - - - 776,490 Licenses&Permits 630,000 - - - Licenses&Permits - - - 630,000 Intergovernmental 235,730 30,000 - - Intergovernmental - - - - 265,730 Service Fees 1,454,700 253,000 - - Service Fees - 5,079,000 - 221,680 7,008,380 Court Fees 540,000 - - - Court Fees - - - 540,000 Interest&Misc.Income 132,100 50,000 22,000 9,000 Interest&Misc.Income 120,000 133,670 110,000 25,000 601,770 TOTAL REVENUES 8,247,710 1,125,700 1,761,770 9,000 TOTAL REVENUES 120,000 5,212,670 110,000 246,680 16,833,530 Transfers from Othor Funds 420,000 182,130 - 139,300 Transfers from Other Funds - 42,400 - - 783,830 TOTAL AVAILABLE RESOURCES 10,394,010 4,003,380 2,030,750 328,910 TOTAL AVAILABLE RESOURCES 6,418,730 8,274,590 2,617,080 842,770 34,910,220 EXPENDITURES: EXPENDITURES: General Government 3,132,060 - - - General Government - - - 20,000 3,152,060 Public Safety 3,438,900 397,130 - - Public Safety - - - - 3,836,030 Development Services 764,030 - - - Development Services - - - - 764,030 Streets 694,470 - - - Streets - - - - 694,470 Community Services 880,080 438,900 - - Community Services - - - - 1,318,980 Utilities - - - - Utilities - 5,026,960 - 34,000 5,060,960 Debt Service - - 1,744,050 140,490 Debt Service - 1,194,130 - - 3,078,670 Capital Projects - - - - Capital Projects 4,530,000 - 1,500,000 - 6,030,000 Economic Development - 787,700 - - Economic Development - - - - 787,700 TOTAL EXPENDITURES 8,909,540 1,623,730 1,744,050 140,490 TOTAL EXPENDITURES 4,530,000 6,221,090 1,500,000 54,000 24,722,900 Transfers to Other Funds 182,130 139,300 - Transfers to Other Funds 420,000 42,400 - 783,830 ENDING FUND BALANCE $ 1,302,340 $ 2,240,350 $ 286,700 $ 188,420 ENDING FUND BALANCE $ 1,888,730 $ 1,633,500 $ 1,074,680 $ 788,770 $ 9,403,490 TOTAL REVENUES $ 17,617,360 NET DECREASE(INCREASE)IN FUND BALANCE 7,889,370 TOTAL APPROPRIABLE FUNDS $ 25,506,730 4 PROPERTY TAX DISTRIBUTION CALCULATIONS FY2002 FY2001 Tax Year 2001 Tax Year 2000 TAX ROLL: Assessed Valuation (100%) $ 754,444,639 $ 624,066,157 Rate per$100 0.720 0.725 Total Tax Levy 5,432,001.40 4,524,479.64 Percent of Collection 98% 98% Estimated Current Tax Collections $ 5,323,361 $ 4,433,990 SUMMARY OF TAX COLLECTIONS: Current Tax $ 5,323,361 $ 4,433,990 Delinquent Tax 70,000 70,000 Penalty and Interest 30,000 30,000 TOTAL TAX COLLECTIONS $ 5,423,361 $ 4,533,990 DISTRIBUTION: FY2002 FY2002 PERCENT FY2002 FY2001 TAX RATE OF TOTAL AMOUNT AMOUNT GENERAL FUND: Current Tax $ 3,615,671 $ 3,185,586 Delinquent Tax 47,545 50,291 Penalty and Interest 20,376 21,553 Total General Fund $ 0.489030 67.921% $ 3,683,592 $ 3,257,430 DEBT SERVICE FUND: Current Tax $ 1,707,690 $ 1,248,404 Delinquent Tax 22,455 19,709 Penalty and Interest 9,624 8,447 Total Debt Service $ 0.230970 32.079% $ 1,739,769 $ 1,276,560 DISTRIBUTION $ 0.720000 100.000% $ 5,423,361 $ 4,533,990 ASSESSED VALUATION OF TAXABLE PROPERTY LAST NINE YEARS AND FY2002 7 800 - 54.4 Z 624.1 pit 600 542.5 — - J 463.4 402.1 426.9 0 365.5 — — 0 400 31b.2 315.5 324.9 — a2 yo 200 — — — — — — — — — w co Q 0 r FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY2000 FY2001 FY2002 FISCAL YEAR 6 GENERAL FUND STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING BALANCE $ 1,096,910 $ 1,120,690 $ 1,152,950 $ 1,726,300 REVENUES: Ad Valorem Taxes 2,757,590 3,257,450 3,257,450 3,683,600 Sales Taxes 789,441 842,400 772,000 795,090 Franchise Fees 705,545 730,000 758,860 776,490 Licenses&Permits 380,124 328,000 600,000 630,000 Intergovernmental Revenues 305,156 146,740 217,900 235,730 Service Fees 809,339 847,500 925,490 1,454,700 Court Fees 520,297 513,000 530,000 540,000 Interest&Miscellaneous 189,447 156,200 141,200 132,100 Total Revenues 6,456,939 6,821,290 7,202,900 8,247,710 OTHER FINANCING SOURCES: Bond Proceeds - - 500,000 - Transfers from Other Funds 338,780 420,000 420,000 420,000 Total Other Financing Sources 338,780 420,000 920,000 420,000 Total Revenues&Other Financing Sources 6,795,719 7,241,290 8,122,900 8,667,710 TOTAL AVAILABLE RESOURCES 7,892,629 8,361,980 9,275,850 10,394,010 EXPENDITURES: General Government: City Council 42,523 57,800 57,800 78,020 City Manager 267,712 284,700 282,770 426,390 City Secretary 107,068 123,590 113,600 133,630 Municipal Court 115,089 139,150 160,090 152,000 Finance 405,358 450,470 449,100 434,940 Facilities&Fleet Services 142,417 159,620 174,220 155,940 Combined Services 1,163,680 1,193,900 1,269,840 1,684,450 Animal Control 45,663 60,620 65,790 66,690 Public Safety: Police 1,670,262 1,837,810 1,837,760 1,840,580 Fire 1,047,779 1,103,020 1,124,170 1,598,320 Development Services: Planning 418,151 167,530 170,860 212,470 Building Inspection - 303,320 323,920 487,720 Code Enforcement - 72,460 63,800 63,840 Streets 561,432 643,110 640,300 694,470 Community Services: Parks 289,059 437,590 429,910 461,470 Recreation 68,469 78,400 80,670 85,790 Library 342,146 293,780 304,950 332,820 Transfers to Other Funds 52,869 - - 182,130 Total Expenditures 6,739,677 7,406,870 7,549,550 9,091,670 ENDING FUND BALANCE $ 1,152,952 $ 955,110 $ 1,726,300 $ 1,302,340 7 GENERAL FUND SCHEDULE OF REVENUES BY SOURCE ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 Ad Valorem Taxes: Current Taxes $ 2,689,763 $ 3,185,590 $ 3,185,590 $ 3,615,670 Delinquent Taxes 34,415 50,300 50,300 47,550 Penalty& Interest 33,412 21,560 21,560 20,380 Sales Taxes: General 786,646 840,000 769,600 792,690 Alcoholic Beverage 2,795 2,400 2,400 2,400 Franchise Fees: Electric 461,850 470,000 504,360 519,490 Gas 29,901 31,000 31,000 31,000 Telephone 67,752 70,000 70,000 70,000 Cable 53,147 56,000 56,000 56,000 Sanitation 92,895 103,000 97,500 100,000 Licenses & Permits 380,124 328,000 600,000 630,000 Intergovernmental Revenue: Lake Patrol 33,500 30,000 30,000 30,000 COPS Grant 117,904 50,840 107,000 38,600 State Grant 88,711 - - - WISD/COPS 13,080 25,900 25,900 80,360 County Library Grant 10,458 11,000 11,000 10,000 Warrant Collections 3,720 4,000 4,000 3,000 WISD/Crossing Guards 12,178 10,000 10,000 14,000 Fire/Dispatch Service 25,605 15,000 30,000 59,770 Service Fees: 911 Fees 153,174 145,000 159,490 - Alarm Permits 3,020 5,000 5,000 5,000 Animal Control 2,383 2,500 2,500 2,500 Development 75,761 61,000 90,000 722,700 Sanitation 562,046 579,500 614,000 673,000 Concessions - 12,500 12,500 12,500 Lighting - 6,000 6,000 6,000 League/Athletic - 11,000 11,000 11,000 Wylie Wave Program 5,938 16,000 16,000 16,000 Wylie Wave Activity 1,156 3,000 3,000 3,000 Library 5,861 6,000 6,000 3,000 Court Fees 520,297 513,000 530,000 540,000 Interest Income 110,352 105,000 90,000 90,000 Miscellaneous: Rental Income 47,978 33,100 33,100 33,100 Dare Donations 12,000 8,100 8,100 5,000 Miscellaneous Income 19,117 10,000 10,000 4,000 Other Financing Sources: Bond Proceeds - - 500,000 - Transfers from Other Funds 338,780 420,000 420,000 420,000 TOTAL REVENUES $ 6,795,719 $ 7,241,290 $ 8,122,900 $ 8,667,710 8 WYLIE ECONOMIC DEVELOPMENT CORPORATION FUND DESCRIPTION the WEDC. A full-time executive director is employed The Wylie Economic Development Corporation by WEDC. This individual reports to a five-member (WEDC)accounts for the use of 4A sales tax revenue Board of Directors appointed by the City Council. which is restricted by State legislation for directly enhancing and promoting economic development. Sales tax levied in Wylie is 8.25%of goods and services Accomplishments for FY2001 sold within the City's boundaries. Of this 8.25%tax, .5% of the City's share goes to WEDC. Objectives for FY2002 FUND NARRATIVE The goal of WEDC is to increase the employment opportunities and tax base of the Wylie community. Major Budget Items The WEDC establishes specific goals and develops an annual Action Plan to accomplish these goals. The 4A sales tax funds the daily operations and programs of STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE BUDGET 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $1,275,844 $2,318,790 $2,349,440 $2,143,490 REVENUES: Sales Tax 393,323 420,000 384,800 396,350 Loan Proceeds 1,234,409 0 0 0 Interest, Rental&Misc 219,279 181,250 169,020 20,000 TOTAL REVENUES 1,847,011 601,250 553,820 416,350 TOTAL AVAILABLE RESOURCE 3,122,855 2,920,040 2,903,260 2,559,840 EXPENDITURES: Administrative Expenses 215,393 228,420 194,810 279,780 Economic Incentives: General 484,400 388,470 444,100 353,020 Extruders 0 380,000 0 0 Debt Service 73,624 110,460 120,860 154,900 TOTAL Expenditures 773,417 1,107,350 759,770 787,700 Fund Balance-Unreserved 890,789 354,041 684,841 $313,491 Fund Balance-Reserved for Inventories 1,458,649 1,458,649 1,458,649 $1,458,649 ENDING FUND BALANCE $2,349,438 $1,812,690 $2,143,490 $1,772,140 BUDGET BUDGET BUDGET BUDGET STAFFING LEVEL 1998-1999 1999-2000 2000-2001 2001-2002 Executive Director 1.0 1.0 1.0 1.0 Secretary 1 18-N 1 0 1 0 0 0 n 0 2.0 2.0 1.0 1.0 70 4B SALES TAX REVENUE FUND FUND DESCRIPTION • • The Wylie Park and Recreation Facilities • Development Corporation (the 4B Corporation)was _ established to promote economic development within Objectives for FY2002 the City of Wylie. The activities of the 4B Corporation are accounted for in three fund types. The three funds • are titled the 4B Sales Tax Revenue Fund,the 4B Debt • Service Fund, and the 4B Capital Projects Fund. This special revenue fund accounts for the use of the 4B Major Budget Items Corporation sales tax revenue which is restricted by State legislation to improving the appeal of the City as • a place to live,work, and visit and promoting economic • development. Sales taxes are levied in Wylie at 8.25% • of goods and services sold within the City's boundaries. • Of this 8.25%tax, 0.5%of the City's share goes to the • 4B Sales Tax Revenue Fund. • FUND NARRATIVE The fund ended fiscal year 2000-2001 with an estimated fund balance at September 30, 2001, of $522,310. The estimated FY2001 year-end revenues and expenditures are $$414,800 and $541,300, respectively,resulting in a decrease to the fund balance of$126,500. This surplus(Fund Balance)will be used in FY2002 to continue the funding of the positions begun in FY2000 and for purchases of capital equipment and and other services. Accomplishments for FY2001 ACTUAL BUDGET ESTIMATE PROPOSED EXPENDITURES 1999-2000 2000-2001 2000-2001 2001-2002 Personal Services $98,395 $209,370 $207,800 $239,300 Supplies 1,999 10,000 13,250 11,000 Maintenance 0 6,000 4,260 5,500 Contractual Services 16,727 76,280 76,280 43,200 Capital Outlay 36,092 103,200 101,710 139,900 TIF Grant Match 0 40,000 0 0 Transfer to 4B Debt Service Fund 141,075 138,000 138,000 139,300 Transfer to General Fund 10,000 0 0 0 TOTAL $304,288 $582,850 $541,300 $578,200 50 4B SALES TAX REVENUE FUND BUDGET BUDGET BUDGET PROPOSED STAFFING LEVEL 1998-1999 1999-2000 2000-2001 2001-2002 Asst. Parks Superintendent 28-E 0.0 0.0 1.0 1.0 Maintenance Worker 7-N 0.0 1.0 2.0 2.0 Comm Center Coordinator 23-E 0.0 1.0 1.0 1.0 Building Monitor- Part-time 0.0 0.5 0.5 0.5 Librarian 26-E 0.0 1.0 1.0 1.0 TOTAL 0.0 3.5 5.5 5.5 STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $527,633 $652,700 $648,810 $522,310 REVENUES: Sales Tax 393,323 420,000 384,800 396,350 Interest Income 32,150 30,000 30,000 30,000 TOTAL REVENUES 425,473 450,000 414,800 426,350 TOTAL AVAILABLE RESOURCES 953,106 1,102,700 1,063,610 948,660 EXPENDITURES Park 57,178 248,450 248,460 269,700 Community Center 40,618 87,580 87,610 92,130 Library 55,417 67,250 67,230 77,070 Combined Services 0 1,570 0 0 TIF Grant Match 0 40,000 0 0 Transfer to 4B Debt Svc Fund 141,075 138,000 138,000 139,300 Transfer to General Fund 10,000 0 0 0 TOTAL EXPENDITURES 304,288 582,850 541,300 578,200 ENDING FUND BALANCE $648,818 $519,850 $522,310 $370,460 51 EMERGENCY COMMUNICATIONS FUND STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING BALANCE $ - $ - $ - $ - REVENUES: 911 Fees - - - 173,000 Intergovernmental Revenues - - - 30,000 Total Revenues - - - 203,000 OTHER FINANCING SOURCES: Transfers from General Fund - - - 182,130 Total Other Financing Sources - - - 182,130 Total Revenues&Other Financing Sources - - - 385,130 TOTAL AVAILABLE RESOURCES - - - 385,130 EXPENDITURES: Public Safety Dispatch Services - - - 385,130 Total Expenditures - - - 385,130 ENDING FUND BALANCE $ - $ - $ - $ - 55 FIRE TRAINING CENTER STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING BALANCE $ - $ - $ - $ 29,750 REVENUES: First Responder Fees - - 35,000 80,000 Total Revenues - - 35,000 80,000 TOTAL AVAILABLE RESOURCES - - 35,000 109,750 EXPENDITURES: Public Safety Contractual Services - - 5,250 12,000 Total Expenditures - - 5,250 12,000 ENDING FUND BALANCE $ - $ - $ 29,750 $ 97,750 58 GENERAL OBLIGATION DEBT SERVICE FUND STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $ 191,970 $ 236,500 $ 243,500 $ 268,980 REVENUES: Ad Valorem Taxes: Current Taxes 1,049,639 1,248,410 1,248,410 1,707,690 Delinquent Taxes 10,173 19,710 19,710 22,460 Penalty and Interest 11,861 8,450 8,450 9,620 Total Ad Valorem Taxes 1,071,673 1,276,570 1,276,570 1,739,770 Interest Income 24,706 25,000 25,000 22,000 TOTAL REVENUES 1,096,379 1,301,570 1,301,570 1,761,770 TOTAL AVAILABLE RESOURCES $ 1,288,349 $ 1,538,070 $ 1,545,070 $ 2,030,750 EXPENDITURES: Principal Retirement $ 578,399 $ 694,040 $ 694,040 $ 951,750 Interest 461,064 577,050 577,050 787,300 Fiscal Agent Fees 5,390 5,000 5,000 5,000 TOTAL EXPENDITURES 1,044,853 1,276,090 1,276,090 1,744,050 ENDING FUND BALANCE $ 243,496 $ 261,980 $ 268,980 $ 286,700 ANNUAL REQUIREMENTS TO AMORTIZE GENERAL OBLIGATION DEBT Net of Self-Suppoted Debt Paid by Utility Fund October 1,2001,to Maturity 2,000,000 1,600,000 - 1,200,000 - - 800,000 400,000N.10 � I . El Principal O Interest 60 4B DEBT SERVICE FUND FUND DESCRIPTION FUND NARRATIVE The debt service funds, also know as interest and The financial statement for this particular fund is fairly sinking unds, are established by ordinance authorizing straight forward. Transfers are made from the 4B the issuance of bonds and providing for the payment of Sales Tax Revenue Fund sufficient for supporting bond principal and interest as they come due. The 4B annual debt service requirements. The estimated Debt Service fund receives sales tax as a transfer from ending fund balance at September 30, 2001, is the 4B Sales Tax fund to meet the debt service $180,610. This ending fund balance is primarly made requirements associated with the issuance of up of the required Reserve Fund of $149,150. The $1,710,000 of bonds in April 1996. The revenue bonds reserved monies can only be used if the current year's were issued by the Wylie Park and Recreation sales tax revenue stream is insufficient to support the Facilities Development Corporation and received debt. At the beginning of FY2002 outstanding revenue ratings of"Baa" from Moody's Investor's Service and debt is $2,160,536. a"BBB"from Standard & Poor's Ratings Service. STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $159,646 $169,980 $170,310 $170,610 REVENUES Interest Income 11,190 11,000 10,000 9,000 Transfer from 4B Operating Fund 141,075 139,000 139,000 139,300 TOTAL REVENUES 152,265 150,000 149,000 148,300 TOTAL AVAILABLE RESOURCES 311,911 319,980 319,310 318,910 EXPENDITURES Debt Service- Principal 55,000 55,000 55,000 60,000 Debt Service- Interest 85,470 82,500 82,500 79,290 Debt Service-Agent Fees 1,132 1,200 1,200 1,200 Transfer to 4B Revenue Fund 0 0 10,000 0 TOTAL EXPENDITURES 141,602 138,700 148,700 140,490 Fund Balance - Reserved for Debt 149,150 149,150 149,150 149,150 Fund Balance Unreserved 21,159 32,130 21,460 29,270 ENDING FUND BALANCE $170,309 $181,280 $170,610 $178,420 61 STREET CAPITAL PROJECT FUND FUND DESCRIPTION earnings of$120,000. The Street Capital Project Fund was created to Accomplishments for FY2001 account for proceeds from the sale of general obligation bonds to be used for street improvements, • drainage, curbs&gutters, alleys, sidewalks and traffic control. • FUND NARRATIVES Objectives for FY2002 The primary funding sources for the Street Fund in • FY2002 are the unexpended proceeds of bonds issued in fiscal years 1999 and 2000, $4,500,000 in bonds • issued in late 2001 and estimated additional interest STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $2,495,252 $1,058,660 $2,764,630 $6,298,730 REVENUES Interest Income 122,482 90,000 150,000 120,000 Street Assessments 6,766 0 5,000 0 Miscellaneous Income 0 0 300 0 Bond Proceeds 1,730,000 1,750,000 4,500,000 0 TOTAL REVENUES 1,859,248 1,840,000 4,655,300 120,000 TOTAL AVAILABLE RESOURCES 4,354,500 2,898,660 7,419,930 6,418,730 EXPENDITURES Materials& Maintenance 10,446 10,000 30,200 30,000 Contractual Services 393,957 200,000 450,000 500,000 Capital Outlay 1,162,076 2,198,000 650,000 4,000,000 Transfer to Other Funds 23,390 0 0 0 TOTAL EXPENDITURES 1,589,869 2,408,000 1,130,200 4,530,000 ENDING FUND BALANCE $2,764,631 $490,660 $6,289,730 $1,888,730 63 PARK CAPITAL PROJECT FUND FUND DESCRIPTION Accomplishments for FY2001 The Park Capital Project Fund was created to account • for proceeds from the sale of general obligation bonds to be used for improvements to city parks. FUND NARRATIVES STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $472,720 $372,720 $662,580 $0 REVENUES Interest Income 27,989 12,000 27,500 0 Bond Proceeds 270,000 250,000 0 0 TOTAL REVENUES 297,989 262,000 27,500 0 TOTAL AVAILABLE RESOURCES 770,709 634,720 690,080 0 EXPENDITURES Materials and Maintenance 574 0 0 0 Contractual Services 4,590 7,000 500 0 Capital Outlay 102,966 627,720 689,580 0 Transfer to General Fund 0 0 0 0 TOTAL EXPENDITURES 108,130 634,720 690,080 0 ENDING FUND BALANCE $662,579 $0 $0 $0 64 UTILITY FUND COMBINED STATEMENT OF REVENUES AND EXPENSES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 OPERATING REVENUES: Water Service $ 2,160,858 $ 2,150,000 $ 2,375,000 $ 2,870,000 Sewer Service 1,329,565 1,350,000 1,480,000 1,600,000 Sewer Pass-Thru 317,436 315,000 345,000 370,000 Penalty&Interest 59,155 60,000 61,000 70,000 Water Tap Fees 78,267 72,000 130,000 130,000 Sewer Tap Fees 10,042 11,000 32,400 35,000 Reconnect Fees 3,430 4,000 4,000 4,000 TOTAL OPERATING REVENUES 3,958,753 3,962,000 4,427,400 5,079,000 OPERATING EXPENSES: Water Purchases 512,241 504,810 504,810 840,000 Sewer Treatment 238,966 304,000 304,000 1,102,450 Utility Administration 226,624 221,410 222,660 263,890 Utilities 559,365 923,770 606,830 2,044,280 Engineering - 239,500 235,980 231,390 Utility Billing 254,393 339,160 284,130 440,850 Combined Services 439,712 172,600 96,160 104,100 TOTAL OPERATING EXPENSES 2,231,301 2,705,250 2,254,570 5,026,960 NET OPERATING INCOME(LOSS) 1,727,452 1,256,750 2,172,830 52,040 NON-OPERATING REVS(EXP): Utility Pre-treatment Fees 12,186 11,000 11,000 16,170 Interest Income 130,595 125,000 145,000 110,000 Miscellaneous Income 14,228 7,500 10,000 7,500 Debt Service (1,079,226) (1,208,000) (1,210,000) (1,194,130) Transfer from Other Funds - 42,400 42,400 42,400 Transfer to Other Funds (344,500) (420,000) (420,000) (420,000) TOTAL NON-OPERATING REVS(EXP) (1,266,717) (1,442,100) (1,421,600) (1,438,060) NET INCOME(LOSS) 460,735 (185,350) 751,230 (1,386,020) BEG FUND BALANCE(WORKING CAP) 1,807,557 2,092,790 2,268,290 3,019,520 END FUND BALANCE(WORKING CAP) $ 2,268,292 $ 1,907,440 $ 3,019,520 $ 1,633,500 66 UTILITY CONSTRUCTION FUND FUND DESCRIPTION The Utility Construction fund was created as a • sub-fund of the Utility Fund to account for proceeds from the sale of general obligation and • revenue bonds and State grants to be used for the acquisition and construction of major water and • wastewater improvements. • Accomplishments for FY2001 • • • • • Objectives for FY2002 • STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $2,241,261 $1,324,440 $3,290,280 $2,507,080 REVENUES Interest Income 117,752 110,000 160,000 110,000 Bond Proceeds 1,720,000 1,720,000 0 0 Transfer from Impact Fund 60,000 0 0 0 TOTAL REVENUES 1,897,752 1,830,000 160,000 110,000 TOTAL AVAILABLE RESOURCES 4,139,013 3,154,440 3,450,280 2,617,080 EXPENDITURES Water&Sewer Construction 669,139 2,500,000 900,000 1,500,000 Transfer to Other Funds 179,596 42,400 42,400 42,400 TOTAL EXPENDITURES 848,735 2,542,400 942,400 1,542,400 ENDING FUND BALANCE $3,290,278 $612,040 $2,507,880 $1,074,680 67 FLEET REPLACEMENT FUND STATEMENT OF REVENUES AND EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED 1999-2000 2000-2001 2000-2001 2001-2002 BEGINNING FUND BALANCE $888,274 $456,830 $493,840 $596,090 REVENUES Auction Proceeds 32,316 5,000 19,400 10,000 Contributions from Departments. 194,800 208,170 208,170 221,680 Interest and Miscellaneous Income 51,691 23,000 25,000 15,000 Transfer from General Fund 20,000 0 0 0 TOTAL REVENUES 298,807 236,170 252,570 246,680 TOTAL AVAILABLE RESOURCES 1,187,081 693,000 746,410 842,770 EXPENDITURES General Government 46,845 38,000 37,770 20,000 Police/Fire 569,767 69,000 93,280 0 Utilities 76,626 18,000 19,270 34,000 TOTAL EXPENDITURES 693,238 125,000 150,320 54,000 TOTAL FUND BALANCE $493,843 $568,000 $596,090 $788,770 81 CAPITAL EQUIPMENT/EXPANDED LEVELS OF SERVICE SUMMARY FUNDED IN FY2002 General Fund Utility Fund Police Utility Administration Police Cruiser 27,300 Computer 1,500 14 Glock Pistols 7,400 34,700 Utilities Water Line on Cooper Street 110,360 Fire Water Line on Sanden Blvd 90,000 Full-time manning of Staion 2 Sanitary Sewer Line in Ballard Alley 80,000 2 Lieutenant Positions 133,700 New Wastewater Treatment Plant 750,000 3 Firefighter Positions 155,100 Laptop Computer 2,500 3 Part-time Firefighter Positions 77,000 Rush Creek Lift Station Pumps 130,000 365,800 1,162,860 Animal Control Utility Billing Expanded P-T Attendant Hours 2,400 Billing Clerk Position 33,500 Planning Total Utility Fund 1,197,860 Assistant Planner Position 53,400 Computer 1,500 4B Sales Tax Fund 54,900 Parks Backstop Curbing-Community Pk 4,000 Building Inspections Comfort Station Utilities-Founders Pk 25,000 Senior Inspector/Plans Examiner 65,200 Santa Train-Olde City Park 3,000 Building Inspector 51,500 Tree Spade 30,000 2 Vehicles 33,000 16'Cut Riding Mower and Trailer 65,500 2 Computers and Software 5,250 127,500 154,950 Community Center Parks Portable Partitions 4,200 W.A.Allen Median Grass 1,850 Portable Sound System 4,200 Play Equipment for Parks 3,750 8,400 5,600 Library Recreation Computers 4,000 Computer 1,520 Wylie Wave Program Expansion Total 4B Sales Tax Fund 139,900 Assistant Site Supervisor 3,930 2 Program Leaders 6,070 Fleet Replacement Fund 11,520 3/4 Ton Pickup for Streets 20,000 3/4 Ton Pickup for Utilities 20,000 Library Compact Pickup for Meter Services 14,000 Expanded P-T Aide Hours 4,750 Total Fleet Replacement Fund 54,000 Total General Fund 634,620 Emergency Communications Fund Dispatch Dispatcher 29,620 Part-Time Dispatcher 18,370 Software Interface 9,000 Total Emerg Communications Fund 56,990 Total All Funds 1,448,750 86 AGENDA COMMUNICATION Date received by REQUEST FORM City Secretary: Submission for the council meeting of September 11, 2001. CONSENT/ACTION ITEM ORIGINATING DEPARTMENT: Finance. Circle one Agenda Communication Submitted by: fli. " on // .5 /O/ Financial Considerations Prepared by: Financial Considerations Reviewed by: / 5 / 4)?. ALL AGENDA COMMUNICATION REQUESTS MUST BE RECEIVED BY THE CITY SECRETARY'S OFFICE IN ACCORDANCE WITH THE SUBMITTAL DEADLINE SCHEDULE. Agenda Communication Request Forms must include the signature of the Finance Director prior to delivery to the City Secretary. After review, the City Secretary will forward to the City Manager. ISSUE: Hold a public hearing and consider and act upon an ordinance of the City of Wylie, Texas, adopting a budget and appropriating resources for Fiscal Year 2002, beginning October 1, 2001, and ending September 30, 2002. ATTACHMENTS: Ordinance Exhibit A— Summary of Revenues, Expenditures and Changes in Fund Balance Exhibit B —Fiscal Year 2002 Proposed Budget (Condensed) COMMENTS: WYLIE CITY COUNCIL AGENDA ITEM NO. September 11, 2001 Issue Hold a public hearing and consider and act upon an ordinance of the City of Wylie, Texas, adopting a budget and appropriating resources for Fiscal Year 2002, beginning October 1, 2001, and ending September 30, 2002. Background The proposed tax rate for fiscal year 2001-2002 will decrease $0.005 per$100 assessed valuation from $0.725 to $0.72. In May 1999, the voters approved the issuance of$17,940,000 in general obligation bonds to be used for street, drainage and park improvements, the debt service on which would require an increase in the tax rate of$0.05. The tax rate was increased two and one-half cents in FY2000 and another two and one-half cents in FY2001. In fiscal year 2000-2001, the total assessed value of taxable property increased $81,536,860 from the tax base in fiscal year 1999-2000. In fiscal year 2001-2002, the total assessed value has increased another$130,784,482. This increase has allowed for the $0.005 decrease in the tax rate. The increase in assessed valuation in FY2002 and the decrease in the tax rate will generate an additional $889,371 in ad valorem tax revenues. The General Fund portion of this increase is $426,162, while the General Obligation Debt Service Fund will receive an additional $463,209 in ad valorem taxes in fiscal year 2002. The original estimate of the General Fund Balance at the end of fiscal year 2001 was $955,110. After Staff review, revenues at the end of fiscal year 2001 are now estimated to increase $381,610 over the original estimate to $7,202,900. Significant increases in fiscal year 2000-2001 revenues over the amended budget are estimated in Licenses and Permits ($272,000), Service Fees ($77,990) and Intergovernmental Revenues ($71,160). Receipts from Sales Tax are estimated to fall short of budget numbers by $70,400. In addition, the City will issue $500,000 in general obligation debt at the end of fiscal year 2001 for the purchase of computer and related equipment in FY2002. Expenditures at year end are estimated at $142,680 more than amended budget figures. Most of the increased expenditures are the result of the rapid growth of the City and increased costs for trash service and costs associated with inspections and permitting of new construction. As a result, the fiscal year 2001 ending fund balance in the General Fund is now estimated to be $1,726,300. The FY2002 budget was constructed to retain at least the same number of days of operating expenses available in the fund balance at the end of FY2002 as at the end of FY2001. The budget was developed using a zero-based budget approach for all departments. Staff determined how many dollars it would take to maintain the same level of service as the prior year and set that as the baseline. There are a few increases in equipment and new personnel budgeted over the baseline that was determined in the General Fund. In the Utility Fund, fund balance(working capital)is estimated to increase $1,112,080 over the budgeted fund balance. About $175,000 of this increase is attributable to an actual beginning fund balance of $2,268,290, as compared to an estimated beginning fund balance of$2,092,790. Increased operating revenues accounts for another $465,400. The remainder of the increase is the result of lower than budgeted expenses, particularly capital projects. These budgeted projects are incomplete and will be finished in FY2002. The funds needed for their completion have been re-budgeted in FY2002. The North Texas Municipal Water District has increased the retail price of the water it sells to the City by $0.08 per 1,000 gallons in FY2002. Water rates will be increased to recover the increased cost of the purchase of water and will generate approximately $70,000 in additional revenue. The attached summary of all operating and capital funds includes the budget for the Wylie Economic Development Corporation. Financial Considerations For all budgeted funds, the projected totals for revenues and expenditures are $17,617,360 and $25,506,730 respectively. Projected expenditures will be $7,889,370 greater than budgeted revenues for all funds. The net $7,889,370 spending in excess of revenues is due to expenditures of$8,492,860 for capital projects (streets, utility construction and new wastewater treatment plant) and hardware/software systems for public safety and finance. The budgeted ending fund balance for the General Fund in FY2001 is $1,302,340. This amount equates to a reserve of 14.3% of budgeted expenditures or approximately 52 days of operating expenses. The budgeted ending fund balance (working capital) in the Utility Fund in FY 2002 is $1,633,500. This amount equates to about 90 days of operating expenses or 25% of budgeted expenditures on hand. Other Considerations Article 7, Section 3(D) of the City's Home Rule Charter states that if the City fails to adopt the budget by the twenty-seventh day of September, the amounts appropriated for operation during the current fiscal year shall be deemed adopted for the ensuing fiscal year on a month-to-month basis. A tax rate ordinance for Fiscal Year 2001-2002 must be adopted to support this budget. Staff Recommendation It is recommended that the City Council adopt the Fiscal Year 2002 budget as presented. Attachments Ordinance Exhibit A— Summary of Revenues, Expenditures and Changes in Fund Balance Exhibit B —Fiscal 2002 Proposed Budget (Condensed) Prepared by Reviewed by Finance City Manager Approval North Texas Municipal Water District has increased the retail price of the water it sells to the City by $0.08 per 1,000 gallons in FY2002. Water rates will be increased to recover the increased cost of the purchase of water and will generate approximately$70,000 in additional revenue. The attached summary of all operating and capital funds includes the budget for the Wylie Economic Development Corporation. Financial Considerations For all budgeted funds, the projected totals for revenues and expenditures are $17,617,360 and $25,506,730 respectively. Projected expenditures will be$7,889,370 greater than budgeted revenues for all funds. The net$7,889,370 spending in excess of revenues is due to expenditures of$8,492,860 for capital projects(streets,utility construction and new wastewater treatment plant)and hardware/software systems for public safety and finance. The budgeted ending fund balance for the General Fund in FY2001 is$1,302,340. This amount equates to a reserve of 14.3% of budgeted expenditures or approximately 52 days of operating expenses. The budgeted ending fund balance (working capital) in the Utility Fund in FY 2002 is $1,633,500. This amount equates to about 90 days of operating expenses or 25% of budgeted expenditures on hand. Other Considerations Article 7, Section 3(D)of the City's Home Rule Charter states that if the City fails to adopt the budget by the twenty-seventh day of September, the amounts appropriated for operation during the current fiscal year shall be deemed adopted for the ensuing fiscal year on a month-to-month basis. A tax rate ordinance for Fiscal Year 2001-2002 must be adopted to support this budget. Staff Recommendation It is recommended that the City Council adopt the Fiscal Year 2002 budget as presented. Attachments Ordinance Exhibit A— Summary of Revenues, Expenditures and Changes in Fund Balance Exhibit B—Fiscal 2002 Proposed Budget(Condensed) Prepared by Revi d by Finance City Manag pproval WYLIE CITY COUNCIL AGENDA ITEM NO. G , September 11, 2001 Issue An ordinance fixing the tax rate/levy for 2001 and for the fiscal year 2001-2002 Budget. The tax rate proposed is seventy-two cents($0.72)per$100 of assessed value. Background In accordance with the Truth-in-Taxation laws of the State of Texas,notices must be published and a public hearing must be held if an entity's proposed tax rate exceeds 103%of the effective tax rate. The City Council is required to vote on the proposed tax rate and the City must publish the results ofthe roll call vote at least seven days prior to the first scheduled public hearing. The results of the roll call vote were published in The Wylie News on August 15,2001,and the first public hearing was held August 28, 2001. The final public hearing will be held on September 11, 2001. The proposed tax rate of$0.72 represents a one-half cent decrease from the FY2001 rate. One cent of the proposed tax rate will generate approximately$75,400. The tax rate for maintenance and operations is$0.48903 per$100 of assessed valuation and the debt service rate is$0.23097. Financial Considerations This tax ordinance will generate new levies of$3,615,671 in the General Fund and$1,707,690 in the General Obligation Debt Service Fund. The revenue from the ad valorem taxes is the primary source of funding in the General Obligation Debt Service Fund and represents approximately 44.6% of total General Fund revenues. Other Considerations Article 7, Section 3(D),Failure to Adopt, of the City's Home Rule Charter states that if the City fails to adopt the budget by the twenty-seventh day of September,the tax rate adopted will be the same as the current fiscal year. The adopted Fiscal Year 2001-2002 budget requires the support of this ordinance. Staff Recommendation It is recommended that the City Council adopt the proposed 2001 Tax Rate and Levy Ordinance as submitted. Attachments Ordinance 2001 Property Tax rates in City of Wylie as published in The Wylie News, August 8, 2001 Prepared by Revie by inane City Mana_er 4 proval 2001 Property Tax Rates in City of Wylie This notice concerns 2001 property tax rates for CITY OF WYLIE. It presents information about three tax rates.Last year's tax rate is the actual rate the taxing unit used to determine property taxes last year.This year's effective tax rate would impose the same total taxes as last year if you compare properties taxed in both years.This year's rollback tax rate is the highest tax rate the taxing unit can set before taxpay- ers can start tax rollback procedures.In each case these rates are found by dividing the total amount of taxes by the tax base(the total value of taxable property)with adjustments as required by state law.The rates are given per$100 of property value. Last year's tax rate: Last4year's operating taxes $3,210,391 Last year's debt taxes , $ 1,258,125 Last year's total taxes $4,468,516 Last year's tax base $616,347,034 Last year's total tax rate 0.725000/$100 • This year's effective tax rate: Last,year's adjusted taxes(after subtracting taxes on lost property) $4,456,764 /This year's adjusted tax base(after subtracting value of new property) $694,108,660 =ThS year's effective tax rate 0.642084/$100 x 1.03=maximum rate unless unit publishes notices and holds hearing 0.661346/$100 • This year's rollback tax rate: Last year's adjusted operating taxes(after subtracting taxes on lost property and adjusting for any $3,201,995 transferred function,tax increment financing and/or enhanced indigent health care expenditures). /This year's adjusted tax base $694,108,660 =This year's effective operating rate 0.461310/$100 X 1.08=This year's maximum operating rate 0.498214/$100 +This year's debt rate 0.230969/$100 =This year's rollback rate 0.729183/$100 STATEMENT OF INCREASE/DECREASE If City of Wylie adopts a 2001 tax rate equal to the effective tax rate of$0.642084 per$100 of value,taxes would increase compared to 2000 taxes by$375,652. SCHEDULE A Unencumbered Fund Balances The following estimated balances will be left in the unit's property tax accounts at the end of the fiscal year.These balances are not encumbered by a corresponding debt obligation. Type of Property Tax Fund Balance Maintenance&Operations $ 1,228,160 Interest&Sinking $ 268,980 SCHEDULE B O 2001 Debt Service The unit plans to pay the following amounts for long-term debts that are secured by property taxes.These amounts will be '- paid from property tax revenues(or additional sales tax revenues,if applicable). Description of Debt Principal or Interest to be Other Amounts Total C t Contract Payment Paid from to be Paid Payment to be Paid from Property taxes Property Taxes C ' Tax Refunding Bonds Series 1993 $214,670 • $80,817 $350 $295,837 G O Bonds Series 1995 $59,296 $68,167 $350 $127,813 G O Bonds Series 1997 $52,778 $72,641 $350 $125,769 Tax Notes Series 1998 $150,000 $24,370 $350 $174,720 G O Bonds Series 1999 $100,000 $163,006 $350 $263,356 G 0 Bonds Series 2000 $60,000 $105,360 $350 $165,710 G 0 Bonds Series 2001 $135,000 $232,788 $350 $368,138 Tax Notes Series 2001 $90,000 $19,475 $350 $109,825 Public Property Fin.Cont.OB Series 1995 $35,000 • $6,993 $350 $42,343 Public Property Fin.Cont.OB Series 1999 $55,000 $13,678 $350 $69,028 Total required for 2001 debt service $1,742,539- -Amount(if any)paid from funds listed in Schedule A $0 , -Amount(if any)paid from other resources $0 -Excess collections last year $0 =Total to be paid from taxes in 2001 • $1,742,539 +Amount added in anticipation that the unit will collect only 100%of,taxes in 2001 $0 =Total Debt Levy $1,742,539 This notice contains a summary of actual effective and rollback tax rate calculations.You can inspect a copy of the full cal- culations at 1800 N.Graves,Suite 170McKinney,TX 75070 Name of person preparing this notice: Kenneth L.Maun Title:Collin County Tax Assessor Collector Date Prepared:July 30,2001 11-It-339 ORDINANCE NO. AN ORDINANCE FIXING THE TAX RATE AND LEVY IN AND FOR THE CITY OF WYLIE, TEXAS, UPON ALL TAXABLE PROPERTY IN SAID CITY OF WYLIE, TEXAS, FOR THE PURPOSE OF PAYING THE CURRENT EXPENSES OF SAID CITY OF THE FISCAL YEAR ENDING SEPTEMBER 30, 2002, AND FOR THE FURTHER PURPOSE OF CREATING A SINKING FUND TO RETIRE THE PRINCIPAL AND INTEREST OF THE BONDED INDEBTEDNESS OF SAID CITY; PROVIDING FOR A LIEN ON ALL REAL AND PERSONAL PROPERTY TO SECURE PAYMENT OF TAXES DUE THEREON; CONTAINING A SEVERABILITY CLAUSE; REPEALING ALL ORDINANCES AND PARTS THEREOF IN CONFLICT HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council has this date, by way of Ordinance duly passed, adopted a Budget of operation for the City for fiscal year 2002; and WHEREAS, the aforesaid Ordinance anticipates and requires the levy of an ad valorem tax on tangible taxable property in the City of Wylie; and WHEREAS, it is necessary to levy such an ad valorem tax at a given rate to generate revenues sufficient to meet projected expenses; and WHEREAS, the City has fully and timely complied with all notice and other requirements relative to the adoption of a tax rate for fiscal year 2002; and, WHEREAS, notice of the proposed tax rate, as well as the effective tax rate, has been published as required by law and the City has received no formal protest thereof; NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Wylie, Texas, as follows: Section 1. There is hereby levied for the fiscal year 2002 upon all real property situated within the corporate limits of said City of Wylie, Texas, and upon all personal property which was owned within the corporate limits of said City of Wylie, Texas, on the first day of January, A.D. 2001, except so much thereof as may be exempt by the Constitution or laws of the State of Texas, a total tax of seventy-two cents (0.72) on each One Hundred Dollars ($100) of assessed valuation on all said property which said total tax herein so levied shall consist and be comprised of the following components: a) An ad valorem tax of and at the rate of Forty-Eight and Nine Hundred Thirty ten- thousandths cents (0.489030) on each One Hundred Dollars ($100) of assessed valuation of said taxable property is hereby levied for the general city purposes and to pay the current operating expenses of said City of Wylie, Texas, for the fiscal year ending September 30, 2002, which tax, when collected shall be appropriated to and for the credit of the General Fund of said City of Wylie, Texas. b) An ad valorem tax of and at the rate of Twenty-Three and Nine Hundred Seventy ten- thousandth cents (0.230970) on each One Hundred Dollars ($100) of assessed valuation of said taxable property is hereby levied for the purpose of creating an Interest and Sinking Fund with which to pay the interest and retire the principal of the valid bonded indebtedness, capital lease payments, and related fees of the City of Wylie, now outstanding and such tax when collected shall be appropriated and deposited in and to the credit of the Interest and Sinking Fund of said City of Wylie, Texas, for the fiscal year ending September 30, 2002. Section 2. The City of Wylie shall have a lien on all taxable property located in the City of Wylie to secure the payment of taxes, penalty and interest, and all costs of collection, assessed and levied hereby. Section 3. Taxes are payable in McKinney, Texas, at the Office of the Tax-Assessor Collector of Collin County. The City shall have available all the rights and remedies provided by law for the enforcement of the collection of taxes levied under this ordinance. Section 4. That the tax roll presented to the City Council, together with any supplements thereto,be and same are hereby accepted and approved. Section 5. Should any paragraph, sentence, sub-division, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part or parts as declared to be invalid, illegal, or unconstitutional. Section 6. This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. Section 7. That all other ordinances and code provisions in conflict herewith are hereby repealed to the extent of any such conflict or inconsistency and all other provisions of the Wylie City Code not in conflict herewith shall remain in full force and effect. Section 8. The repeal of any ordinance, or parts thereof, by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as affecting any rights of the municipality under any section or provision of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, on this the 11th day of September, 2001. John Mondy, Mayor ATTEST Barbara Salinas, City Secretary 46, AGENDA COMMUNICATION Date received by REQUEST FORM City Secretary: Submission for the council meeting of September 11, 2001. CONSENT/ACTION ITEM ORIGINATING DEPARTMENT: Finance. Circle one Agenda Communication Submitted by: � - on /_/ Financial Considerations Prepared by: Financial Considerations Reviewed by: on±/I/ ALL AGENDA COMMUNICATION REQUESTS MUST BE RECEIVED BY THE CITY SECRETARY'S OFFICE IN ACCORDANCE WITH THE SUBMITTAL DEADLINE SCHEDULE. Agenda Communication Request Forms must include the signature of the Finance Director prior to delivery to the City Secretary. After review, the City Secretary will forward to the City Manager. ISSUE: An ordinance fixing the tax rate/levy for 2001 and for the fiscal year 2001-2002 Budget. The tax rate proposed is seventy-two cents per $100 of assessed value. ATTACHMENTS: Ordinance 2001 Property Tax Rates in City of Wylie as published in The Wylie News, August 8, 2001 COMMENTS: WYLIE CITY COUNCIL AGENDA ITEM NO. September 11, 2001 Issue An ordinance fixing the tax rate/levy for 2001 and for the fiscal year 2001-2002 Budget. The tax rate proposed is seventy-two cents ($0.72)per$100 of assessed value. Background In accordance with the Truth-in-Taxation laws of the State of Texas, notices must be published and a public hearing must be held if an entity's proposed tax rate exceeds 103% of the effective tax rate. The City Council is required to vote on the proposed tax rate and the City must publish the results of the roll call vote at least seven days prior to the first scheduled public hearing. The results of the roll call vote were published in The Wylie News on August 15, 2001, and the first public hearing was held August 28, 2001. The final public hearing will be held on September 11, 2001. The proposed tax rate of$0.72 represents a one-half cent decrease from the FY2001 rate. One cent of the proposed tax rate will generate approximately$75,400. The tax rate for maintenance and operations is $0.48903 per$100 of assessed valuation and the debt service rate is $0.23097. Financial Considerations This tax ordinance will generate new levies of$3,615,671 in the General Fund and $1,707,690 in the General Obligation Debt Service Fund. The revenue from the ad valorem taxes is the primary source of funding in the General Obligation Debt Service Fund and represents approximately 44.6% of total General Fund revenues. Other Considerations Article 7, Section 3(D),Failure to Adopt, of the City's Home Rule Charter states that if the City fails to adopt the budget by the twenty-seventh day of September, the tax rate adopted will be the same as the current fiscal year. The adopted Fiscal Year 2001-2002 budget requires the support of this ordinance. Staff Recommendation It is recommended that the City Council adopt the proposed 2001 Tax Rate and Levy Ordinance as submitted. Attachments Ordinance 2001 Property Tax rates in City of Wylie as published in The Wylie News, August 8, 2001 Prepared by Reviewed by Finance City Manager Approval ems. _ tA/` 2 X- 0 �/ Q4-a-,► . ��^ WYLIE CITY COUNCIL AGENDA ITEM NO. rt. September 11, 2001 Issue Consider and act upon appointing the "Task Force Advisory Committee" for the Parks and Recreation Open Space and Master Plan. Background In order to facilitate the Parks and Open Space Master Plan, the Plan consultants from Carter and Burgess have suggested a "Task Force Advisory Committee" be appointed that represents the various local special interest groups to assist with surveys and community input. The interest groups represented would consist of members/employees of the W.I.S.D., Corps of Engineers, City Council, Parks and Recreation Board members, sports associations, senior citizen representative and the Chamber of Commerce. The Carter and Burgess consultants also recommend that the committee consist of approximately ten members that would meet frequently with the consultants and City staff to review the progress and review the Master Plan findings and recommendations. Financial Considerations N/A Other Considerations N/A Board/Commission Recommendations N/A Staff Recommendations N/A Attachments N/A i\kt' Prepared ""� Revie d by Finance City Manager p oval WYLIE CITY COUNCIL AGENDA ITEM NO. S. September 11, 2001 Issue Consider and act upon a Preliminary Plat for the Wylie United Methodist Church Addition,being that 15.00 acre tract described in deed to the Wylie United Methodist Church recorded in Volume 7386, Page 2560 of the Real Property Records of Collin County,Texas,and being situated in the William Patterson Survey, Abstract No. 716, City of Wylie, Collin County, Texas. Background The Preliminary Plat will create a single 15.00-acre lot for church related uses. The applicant plans to develop a multi-building complex, constructed in several phases. The property was rezoned from Agriculture(A)to Planned Development (PD 01-07) District, including adoption of a Concept Plan, by the City Council on June 12, 2001. The PD Conditions tie the development to the setback requirements of the SF-10 District, and the Plat accordingly provides for a building setback of 25 feet. The Plat also dedicates additional rights-of-way for future widening and improvements to Country Club and McMillen Roads. Financial Considerations Plat application fee—Paid Other Considerations 1. Section 212.005 of the Texas Local Government Code states that "the municipal authority responsible for approving plats must approve a plat that satisfies all applicable regulations". Section 212.009(a) states that"the municipal authority responsible for approving plats shall act upon a plat within 30 days after the date the plat is filed. A plat is considered approved by the municipal unless it is disapproved within that time period". 2. Staff has reviewed the proposed Preliminary Plat for the Wylie United Methodist Church Addition and found it to conform to the approved Concept Plan of the Planned Development District and to be in technical compliance with all applicable State and City of Wylie Subdivision Regulations. Board/Commission Recommendation At the August 21, Planning and Zoning Commission meeting, the Board voted 6-0 to recommended approval of this Preliminary Plat. Staff Recommendation Approval. The Department's of Public Works, Fire, and Development Services concur with this recommendation. Attachments Preliminary Plat r, e2- Prepare by eview y Finance City Manage pproval WYLIE CITY COUNCIL AGENDA ITEM NO. 9. September 11, 2001 Issue Hold a Public Hearing to consider and act upon approval of a change in zoning from Single Family Residential—2 (SF-2) to Townhouse(TH/15), for Lots 1 and 2A of the Russell No. 1 Addition and Lots 39A and 39D, Block 8 of the Brown and Burns Addition, being situated in the S.B. Shelby Survey, Abstract No. 820, City of Wylie, Collin County, Texas. (Zoning Case No. 2001-09) Background The applicant is requesting the rezoning of the subject property in order to develop attached residential units (duplexes or townhouses). The property is platted as Lot 1 and 2A of the Russell No. 1 Addition and Lots 39A and 39D of the Brown and Burns Addition. A deteriorated and abandoned residence occupies Lot 39A, and the other Lots are vacant. These parcels total 1.279 acres in size. The properties to the north along Jackson Street are zoned for Single-Family Residential-2 (SF-2) uses, but are developed as lots and dwellings smaller than that required within the SF-2 District (SF-2 requires minimal 8,500 square feet lots and 1,500 sq. ft dwellings). The property to the east, across Jackson Street, is zoned for Single-Family Residential-2 (SF-2) uses and developed in a mixture of SF-2 size lots and dwellings and smaller lots and dwellings. The property to the south, across Brown Street, is zoned Single-Family-3 Residential (SF-3) and developed for both single-family detached residences of the SF-3 size and an apartment complex. To the west, the subject properties adjoin the Dallas Area Rapid Transit — Kansas City Southern railroad freight corridor which is not currently zoned. Public Comment Forms were mailed to twenty-nine (29) property owners within 200 feet of this request. Five Public Comment Forms have been returned, two AGAINST and three FOR the proposed rezoning. Financial Considerations Rezoning application fee - Paid Other Considerations 1. The Comprehensive Plan recommends Suburban Residential Uses for the subject property. The Plan defines the Suburban Residential land use category as detached residential lots of between 8,500 square feet (1/5 acre) to one acre in size and located further distances (as much as 3,000 feet) from Village Center retail uses. The existing zoning is more consistent with this recommendation than is the proposed change. 2. However, many of the existing lots within the requested rezoning and in the immediate vicinity are smaller than the 8,500 square feet minimum required by the zoning and anticipated by the Comprehensive Plan. Furthermore, the location of the subject property is more urban in character than suburban, lying within 1,000 feet of the Historic Downtown District and its retail uses. The property backs on to a heavily-used rail freight corridor and is situated on a limited-access dead- end street. The higher-density of the proposed Townhouse District is more compatible with these conditions, and more appropriate for the entire west side of this block of Jackson. 3. The applicant originally requested rezoning of a single lot for the development of a limited number of duplex residences. However, case law has concluded that such small, limited-use zoning districts are inappropriate. Furthermore, the newly-adopted residential portion of the Zoning Ordinance provides only the Townhouse and Multi-Family Districts to accommodate all types of attached housing, and no longer provides for a specific Duplex District. The Townhouse District allows attached dwellings on individual lots, at a density of up to 15 units per acre, and is intended to provide flexibility of development, adjacent to mixed use and retail centers, and to mitigate environmental limitations. The proposed rezoning and anticipated duplexes comply with the purpose of the Townhouse District. 4. The proposed redevelopment can serve as a catalyst for additional reinvestment and revitalization of this older, declining neighborhood, as well as serve to buffer the noxious character of the railroad corridor from the single-family detached residences to the east across Jackson Street. 5. The property must be replatted to create single lots of record for each dwelling prior to the issuance of any building permits, and impact fees must be paid prior to the filing of a Final Plat. Board/Commission Recommendation At the August 21, 2001 Planning and Zoning Commission meeting, Board voted 4-2 to deny the zone change request because of non-conformance to the Comprehensive Plan. A three-fourths majority vote by the City Council is required for approval of the requested change in zoning because the Planning and Zoning Commission recommended the request be denied. Staff Recommendation Approval. The proposed zoning and use are compatible with the surrounding environment and existing development and can serve as a redevelopment stimulus for the area. The Department's of Development Services, Public Works, and Fire concur with this recommendation. Attachments Location Map Notification List and Map Response Forms Ordinance ") fr Prepared by Revie or by inance City Manag r royal W U . -••- , -.. �'_ / i i ". -% ,. % I j i % i i j I -- I j� - I Subject ane i Property .._.._ 1 1 ii _:_ EfED i / i I i I ,:\di i i i n ri iiWes rown Stre:t a) fast i Brown Street 1I Q MI 'mi 1 a) a� Jefferson Street 1111 � _� 411:e0 a ' co 1JLrbIRc, I7g _ -I e Street ' ------,• , ' ,-r. N ciriTh._____ ; :et o oak Street . oak Fr i 1 • cn .. A R_ a) LOCATION MAP ZONING CASE #2001 -09 NOTIFICATION REPORT APPLICANT: Laurence DeBerry APPLICATION FILE #2001-09 8277 Private Road 5397 Nevada,Tx. 75173 # BLK/ABST LOT/TRACT TAX I.D. # PROPERTY OWNER NAME I ADDRESS Applicant 8277 P.R. 5397 1 Laurence DeBerry Nevada,Texas 75173 Russell Addn 11548 C.R. 736 2 BIk 2 • Lot 1 B R-1173-002-001 B-1 Albert Thompson Princeton,Texas 75407 Russell Addn P.O. Box 921 3 BIk 2 Lot 1 C R-1173-002-001 C-1 Lummie Wolfe Wylie,Texas 75098 Russell Addn 1111 Wheelis Road 4 BIk 2 Lot 28 R-1173-002-002E-1 Otis Ferguson Wylie,Texas 75098 Russell Addn 1111 Wheelis Road 5 BIk 2 Lot 2C R-1173-002-002C-1 Otis Ferguson Wylie,Texas 75098 Russell Addn P.O. Box 875 6 BIk 2 Lot 2D R-1173-002-002D-1 Alan Gauthier Wylie,Texas 75098 Russell Addn 1111 Wheelis Road 7 BIk 2 Lot 2E R-1173-002-002E-1 Otis Ferguson Wylie,Texas 75098 Russell Addn 419 N.Jackson 8 Blk 2 Lot 2F R-1173-002-002F-1 Donald Drain Wylie,Texas 75098 Russell Addn P.O. Box 146 9 Blk 2 Lot 3A R-1173-002-003A-1 Anita Lemon Wylie, Texas 75098 Russell Addn 5810 Southampton 10 Blk 2 Lot 3D R-1173-002-003D-1 Jerry Cooper Richardson,Texas 75082 Russell Addn 401 N. Ballard Avenue 11 Blk 3 Lot 1 R-1 173-003-0010-1 Rita Smith Wylie,Texas 75098 Russell Addn 401 N. Ballard Avenue 12 Blk 3 Lot 2A R-1173-003-002A-1 Rita Smith Wylie,Texas 75098 Russell Addn 419 N.Jackson 13 BIk 3 Lot 2B R-1173-003-002E-1 Donald Drain Wylie,Texas 75098 Russell Addn 311 Willow Wood Street 14 Blk 3 Lot 2C R-1173-003-002C-1 Ralph Rozier Plano,Texas 75094-3523 Russell Addn 3114 Big Oaks Drive 15 Blk 3 Lot 2D R-1173-003-002D-1 Henry Lemons Garland,Texas 75044-6924 Russell Addn 413 N.Jackson 16 Blk 3 Lot 2E R-1173-003-002E-1 Harvie Miller Wylie, Texas 75098 Brown &Burns Addn 102 W.Brown Street 17 BIk 4 Lot 32A R-1156-004-032A-1 Jay Davis Wylie, Texas 75098 Brown &Burns Addn 102 W. Brown Street 18 BIk 4 32B R-1156-004-032E-1 Jay Davis Wylie,Texas 75098 Brown &Burns Addn 102 W. Brown Street 19 BIk 4 33A R-1156-004-033A-1 Jay Davis Wylie,Texas 75098 Brown&Burns Addn 102 W. Brown Street 20 Blk 4 33B R-1156-004-033E-1 Jay Davis Wylie,Texas 75098 Brown&Burns Addn P.O. Box 753 21 Blk 8 Lot 39A R-1156-008-039A-1 Luther Boren Wylie,Texas 75098 Brown & Burns Addn 200 W. Brown Street 22 BIk 8 39B R-1156-008-039B-1 Jesus Alfaro Wylie,Texas 75098 Brown&Burns Addn 1110 Lavon Drive 23 Blk 8 39D R-1156-008-039D-1 C&M Check Cashing Garland,Texas 75040 Brown &Burns Addn 302 N. Jackson Avenue 24 BIk 7 38A R-1156.007.038A-1 Brad Chandler Wylie, Texas 75098 • Brown &Burns Addn 8 Trails Place #A 25 Blk 7 38B R-1156.007.038B-1 Timothy Gauthier Wylie, Texas 75098 Brown &Burns Addn 2204 Concho Drive 26 Blk 3 31 R-1156-003-0310-1 Johathan Potoschnik Plano,Texas 75024 Brown &Burns Addn P.O. Box 304 27 Blk 3 30 R-1156-003-0300-1 Wanda Poole Wylie,Texas 75098 P.O. Box 540667 28 Abst 820 Tract 1 R-6820-000-0010-1 Peerless Manufacturing Co. Dallas, Texas 75354-0667 A&K Materials, Inc. P.O. Box 30076 29 Abst 820 Tract 51 R-6820-000-0510-1 c/o Michael Van Wagener Salt Lake City, UT 84130-0076 30 D.Or'aJv R-1173-oo3-oo2s-I '- Lemont .213 I2.Rosier Q-ll? 41-6034-, l 2G Tr I ft• Lento&ep/ J G'oop�r tt•13•vo3.0020 (Z-111 3 oo2- • Ma w k-f u ik ' - N•• Miller I 3P I"t '/ _"• R-It13-003-002e- A. (�. ler 010-I I 21~ fer5 on -(�g20 - coo- 0 R•11T3- a• • I "0D R-1173•as �" 51Yii��. 20 2e 1)6L6-I •I 12. a > D Drain +� R-tIT3- .�< o02- / I R. sln;-�h, t= I-ll'l3-o03- o- L• lfcC— R-11-73-002- olGool`-I 111" � A. ThorKpsox. OR-/173-oo2-DOIB*f 1$ 14 A S20 L.FSor Tr 51 R-t15�roencB- U J. °Avis R-1 -aou- A 4 K Mine ial Inc. o3g4-1® c32�1-/ R-liS6-oov- , 38- I s R'lo$2a-DDO 0510-1 3qA 3 A 338 J.A14 o OM J.rx.vis J. o ; tt.4,.00l Chat 'r� R•tr�,. R-Ins`-aorl 0316-I t2.1151%log o32� r o326-► O'1g0-i /3W 39D 32R ,a,,Wes i ro w Stro h 'no g.chandler Tr 51 . R-119.-ooz-038A-1 p n,k. e-ma-oo3- 3sa 1 0310-, ' T �TQcr- Grier £4tn la oeIe " • R-ilar.0e7-0041-I �.��5 b-003 385 OQOO-i V — F°4 a° . 0 ,_ ____ _(_ L AJIP 1145+. 1 X ___________ 1 PUBLIC COMMENT FORM (Please type or use black ink) Department of Planning 2000 Highway 78 North Wylie,Texas 75098 �� 1 am FOR the requested zoning as explained on the attached public notice for Zoning Case .1 #2001-08. 1 am AGAINST the requested zoning as explained on the attached public notice for Zoning Case#2001-08. Date,Location&Time of Planning&Zoning Commission meeting: Tuesday, August 21, 2001,7:00 pm Municipal Complex,2000 Highway 78 North,Wylie,Texas Date, Location &Time of City Council meeting: Tuesday, September 11,2001,6:00 pm Municipal Complex,2000 Highway 78 North, Wylie,Texas Name: 1%c. 7 / .S , C271 c 5 (ply `e srint)• Address: =— _- . 1/45 n 1 . .4 (t« lF/J/,73/e7 0c/©e _04 Signature: (, Date: 4 / COMMENTS: PUBLIC COMMENT FORM , (Please type or use black ink) Department of Planning 2000 Highway 78 North Wylie,Texas 75098 I am FOR the requested zoning as explained on the attached public notice for Zoning Case #2001-0' I am AGAINST the requested zoning as explained on the attached public notice for Zoning Case#2001-0q Date,Location&Time of Planning&Zoning Commission meeting: Tuesday,August 21, 2001, 7:00 pm Municipal Complex,2000 Highway 78 North,Wylie,Texas Date, Location&Time of City Council meeting: Tuesday, September 1 1,2001,6:00 pm Municipal Complex,2000 Highway 78 North,Wylie,Texas Name: /7/1/ % - L-Z/vl O (1-)5 (please print) Address: r U U S P- fC S U Signature: a Date: COMMENTS: PUBLIC COMMENT FORM (Please type or use black ink) Department of Planning 2000 Highway 78 North Wylie,Texas 75098 / I am FOR the requested zoning as explained on the attached public notice for Zoning Case #2001-08. I am AGAINST the requested zoning as explained on the attached public notice for Zoning Case#2001-08. Date,Location&Time of Planning&Zoning Commission meeting: Tuesday,August 21, 2001, 7:00 pm Municipal Complex,2000 Highway 78 North,Wylie,Texas Date, Location &Time of City Council meeting: Tuesday, September 11,2001,6:00 pm Municipal Complex,2000 Highway 78 North,Wylie,Texas Name: !`+ i ''T e- 4/ / 9 14" (please print) a l �j Address: 4 / h 'T L h-1+ R y .. Signature: Date: © - O -O f COMMENTS: � —\ mac 'l c � � i �-_�--- _��/ -c.rLA G !`r L 2_ 1 • A {G 9, 1_ 2001 PUBLIC COMMENT FORM (Please type or use black ink) Department of Planning 2000 Highway 78 North Wylie,Texas 75098 1 am FOR the requested zoning as explained on the attached public notice for Zoning Case #2001-0, V I am AGAINST the requested zoning as explained on the attached public notice for Zoning Case#2001-1 Date,Location&Time of Planning&Zoning Commission meeting: Tuesday, August 21, 2001,7:00 pm Municipal Complex,2000 Highway 78 North, Wylie,Texas Date, Location &Time of City Council meeting: Tuesday, September 1 1,2001,6:00 pm Municipal Complex,2000 Highway 78 North, Wylie,Texas Name: S /� S (please print) � ) Address: /CH ,14/GIV a CJ0- j IVO • Signature: 1 C - \ Date: COMMENTS: e7,49/ 1_APB Gi , �� ; - dorr 1 • /1-261 - / � �' , ,/rJ - - i// ,i G&la /-(4oL, 10/4//e _A),de 561, az-cciaia,424, ./ ttrt�Cleu�� - alo_z4/ Aog_ tofrl 410-d- t-6 s/ 'fir s arm �� PUBLIC COMMENT FORM (Please type or use black ink) Department of Planning 2000 Highway 78 North Wylie,Texas 75098 I am FOR the requested zoning as explained on the attached public notice for Zoning Case #2001-08. XI am AGAINST the requested zoning as explained on the attached public notice for Zoning Case#2001-08. Date,Location&Time of Planning&Zoning Commission meeting: Tuesday,August 21, 2001,7:00 pm Municipal Complex,2000 Highway 78 North,Wylie,Texas Date,Location&Time of City Council meeting: Tuesday,September 11,2001,6:00 pm Municipal Complex,2000 Highway 78 North,Wylie,Texas Name: <41»lc)5 M d y' /v d; � (please print) / Address: S0.3 lV- Jd<A4'.3 Signature: llo Date: (S7' 7- JO/ COMMENTS: �2 d t'e_ / ud O ,- lJ r LU,z 010 /r aN7 I)UiVR-K or- t houS`'.S , uery 30 -66 , 711 re- L cu /cl he. Tor" ouer- )91 - ii s r 77 ;',/c J7 d �do� ORDINANCE NO. AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF WYLIE, AS HERETOFORE AMENDED, SO AS TO CHANGE THE ZONING ON THE HEREINAFTER DESCRIBED PROPERTY,ZONING CASE NUMBER 2001-09, TO TOWNHOUSE (TH/15) DISTRICT CLASSIFICATION; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the governing body of the City of Wylie, Texas, in compliance with the laws of the State of Texas with reference to the amendment of the Comprehensive Zoning Ordinance, have given the requisite notices by publication and otherwise, and after holding due hearings and affording a full and fair hearing to all property owners generally and to owners of the affected property, the governing body of the City is of the opinion and finds that the Comprehensive Zoning Ordinance and Map should be amended; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. That the Comprehensive Zoning Ordinance of the City of Wylie, Texas, be, and the same is hereby, amended by amending the Zoning Map of the City of Wylie, to give the hereinafter described property a new zoning classification of Townhouse (TH/15) District Classification, said property being described in Exhibit "A" attached hereto and made a part hereof for all purposes. SECTION 2. That all ordinances of the City in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 3. That the above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification. SECTION 4. Any person, firm or corporation violating any of the provisions of this ordinance or the Comprehensive Zoning Ordinance, as amended hereby, commits an unlawful act and shall be subject to the general penalty provisions of Section 38 of the Zoning Ordinance, as the same now exists or is hereafter amended. SECTION 5. Should any paragraph, sentence, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. SECTION 6. This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. SECTION 7. The repeal of any ordinance, or parts thereof, by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as effecting any rights of the municipality under any section or provisions of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this day of , 2001. John Mondy, Mayor ATTEST: Barbara Salinas, City Secretary Exhibit "A" Property Description ZC #2001-09 Being all of Lots 1 and 2A of the Russell No. 1 Addition and Lots 39A and 39D, Block 8 of the Brown and Burns Addition, being situated in the S.B. Shelby Survey, Abstract No. 820, City of Wylie, Collin County, Texas. WYLIE CITY COUNCIL AGENDA ITEM NO. 10- September 11, 2001 Issue Consider and Act Upon an Ordinance annexing all of a certain 49.277 acre tract of land out of the Allen Atterbury Survey, Abstract No. 23 and the Aaron West Survey, Abstract No. 979; and a certain 1.041 acre tract of land out of the Aaron West Survey, Abstract No. 979; located east of F.M. 544 and north of Wheelis Road. Background A request for voluntary annexation has been submitted by the owner of the property, Edwina Collins Cook. Should the City Council approve the proposed annexation, the property will be temporarily zoned as A (Agricultural) until permanent zoning is established by the City Council. The procedure for establishing the permanent zoning on annexed territory shall conform to the procedures established by law for the adoption of zoning regulations. In accordance with State Law, proper notice and public hearings were conducted according to the following schedule: Notice published for Public Hearings August 1,2001 First Public Hearing August 13,2001 Second Public Hearing August 14,2001 Adoption of Ordinance September 11,2001 Financial Consideration The current property tax rate for the City of Wylie is .725 per $100 of valuation. Other Considerations Article 1, Section 3 of the Wylie City Charter authorizes the City Council to adjust boundaries. The City will also be required when the annexation is considered to comply with the Local Government Code for the provision of services, (please see attached Service Plan). This annexation is being conducted in compliance with Sections 43.063 of the Local Government Code. Board/Commission Recommendations N/A Staff Recommendations Approval Attachments Ordinance Area Map repared Revi d by Financ City snag r oval Ordinance No. AN ORDINANCE ANNEXING: TRACT 1, A 49.277 ACRE TRACT OF LAND, MORE OR LESS, SITUATED IN THE ALLEN ATTERBERRY SURVEY, ABSTRACT NO. 23 AND THE AARON WEST SURVEY, ABSTRACT NO. 979; AND TRACT 2, A 1.041 ACRE TRACT OF LAND, MORE OR LESS, SITUATED IN THE AARON WEST SURVEY, ABSTRACT NO. 979; PROVIDING THAT THE OWNERS AND INHABITANTS OF THE ABOVE-DESCRIBED TRACT OF LAND SHALL BE ENTITLED TO THE RIGHTS AND PRIVILEGES OF OTHER CITIZENS OF WYLIE AND BE BOUND BY THE ACTS AND ORDINANCES NOW IN EFFECT AND HEREAFTER ADOPTED; PROVIDING FOR A PENALTY FOR A VIOLATION OF THIS ORDINANCE AND COMPREHENSIVE ZONING ORDINANCE NO. 85- 23A; PROVIDING FOR REPEALING, SAVINGS AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF THE ORDINANCE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION THEREOF. WHEREAS, the City Council of the City of Wylie, Texas ("City Council") under the authority of Section 43.021. Local Government Code and the City of Wylie, Texas' (Wylie) Home Rule Charter, investigated and determined that it would be advantageous and beneficial to Wylie and its inhabitants to annex the below-described property (the "Property") to Wylie; and WHEREAS, prior to conducting the public hearings required under Section 43.063, Local Government Code, the City Council also investigated and determined that the Property is within the extraterritorial jurisdiction of Wylie and is adjacent and contiguous to the existing city limits of Wylie; and WHEREAS, before the publication of the notice of the first public hearing regarding the annexation of the Property, the City Council directed the appropriate persons to prepare a service plan that provides for the extension of full municipal services to the Property to be annexed; and WHEREAS, the City Council finds that the service plan has been prepared in full compliance with Section 43.056, Local Government Code, and has been made available for public inspection and was available for explanation to the inhabitants of the Property at the public hearings; and WHEREAS, the City Council finds that the field notes close the boundaries of the Property being annexed; and WHEREAS, the City Council has conducted at least two (2) public hearings at which persons interested in the annexation were given an opportunity to be heard regarding the proposed annexation and the proposed service plan; and WHEREAS, the City Council finds that the public hearings were conducted on or after the fortieth (40th) day but before the twentieth (20th) day before the date of institution of the annexation proceedings; and WHEREAS, the City Council finds it has completed the annexation process within ninety (90) days after the City instituted the annexation proceedings; and WHEREAS, the City Council finds that all legal notices, hearings, procedures and publishing requirements for annexation have been performed and completed in the manner and form set forth by law. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION l: The Property described in "Exhibit A" and all public streets, roadways and alleyways located within or contiguous to the same is hereby annexed to Wylie. SECTION 2: The Service Plan for the Property is attached hereto as "Exhibit B" and made a part hereof for all purposes. SECTION 3: That from and after the passage of this Ordinance, the Property shall be a part of Wylie, and the inhabitants thereof shall be entitled to all the rights and privileges of all of the citizens of Wylie and shall be bound by all of the ordinances and regulations enacted pursuant to and in conformity with the City Charter and the laws of the State of Texas. SECTION 4: That the official map and boundaries of Wylie are hereby amended to include the property as part of the City of Wylie, Texas, and that a certified copy of this Ordinance shall be filed in the County Clerk's office of Collin County, Texas. SECTION 5: It shall be unlawful for any person, firm or corporation to make use of the Property in some manner other than as authorized by this Ordinance and Comprehensive Zoning Ordinance No. 85-23A, and any amendments thereto; and it shall be unlawful for any person, firm or corporation to construct on the Property any building that is not in conformity with the permissible use under this Ordinance and Comprehensive Zoning Ordinance No. 85-23A, and any amendments thereto. SECTION 6: Any person, firm or corporation who violates any provision of this Ordinance and Comprehensive Zoning Ordinance No. 85-23A, and any amendment thereto, shall be deemed guilty of a misdemeanor and upon conviction shall be fined a sum not exceeding Two Thousand and 00/100 Dollars ($2000.00), and each and every day such violation continues shall be considered a separate offense; provided, however, such penal provision shall not preclude a suit to enjoin such violation. SECTION 7: Should any part or portion of this Ordinance, or the use created herein or under Comprehensive Zoning Ordinance No. 85-23A, and any amendments thereto, be declared unconstitutional or invalid by any court of competent jurisdiction, it is expressly provided that any and all remaining portions shall remain in full force and effect. SECTION 8: All ordinances in conflict with this Ordinance are repealed to the extent they are in conflict, and any remaining portions of the conflicting ordinance shall remain in full force and effect. SECTION 9: The caption of this Ordinance shall be published in accordance with the law and the City Charter and shall be effective immediately upon its passage or as required by law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS on this 11th day of September, 2001. JOHN MONDY, Mayor ATTESTED TO AND CORRECTLY RECORDED BY: BARBARA SALINAS, City Secretary DATE OF PUBLICATION: , WYLIE NEWS Exhibit "A" Tract 1: Being a 49.277 acre tract of land situated in the Allen Atterberry Survey, Abstract No. 23 and the Aaron West Survey, Abstract No. 979, Collin County Texas and being the same tract of land described in deed to Edwina Collins Cook as recorded in Collin County Clerk's File No, 93- 0039237 and being more full described by metes and bounds as follows: Beginning at a 1/2" iron rod set on the east right-of-way line of FM 544, being the most westerly northwest corner of said Cook tract and the southwest corner of a called 4.86 acre tract of land described in deed to Charlane Collins Dew a recorded in Colin County Clerk's File No. 93- 0039229; Thence South 89 deg. 13 min. 54 sec. East, along the south line of said 4.86 acre tract, a distance of 484.40 feet to a 3/8" iron rod found for corner, being the southeast corner of said 4.86 acre tract; Thence North 00 deg. 59 min. 21 sec. East, a distance of 169.93 feet to a 1/2" iron rod set for corner on the east line of said 4.86 acre tract and the south line of a called 5.791 acre tract of land described in deed to Charlane Collins Dew as recorded in Collin County Clerk's File No. 93- 0038230; Thence South 89 deg. 17 min. 11 sec. East, along the south line of said 5.791 acre tract, a distance of 976.54 feet to a 1/2" iron rod set for corner, being the southwest corner of a tract of land described in deed to G.S. Richards as recorded in Volume 775, Page 55, Deed Records, Collin County, Texas; Thence South 88 deg. 27 min. 19 sec. East, along the south line of said Richards tract, a distance of 841.65 feet to a point for corner in centerline of creek; Thence along centerline of said creek, the following: South 26 deg. 51 min. 56 sec. East, a distance of 102.09 feet to a point for corner; South 14 deg. 09 min. 47 sec. East, a distance of 238.47 feet to a point for corner; South 76 deg. 18 min. 47 sec. East, a distance of 105.21 feet to a point for corner; South 14 deg. 27 min. 10 sec. East, a distance of 72.17 feet to a point for corner; South 28 deg. 32 min. 54 sec. West, a distance of 120.21 feet to a point for corner; South 21 deg. 59 min. 06 sec. East, a distance of 190.05 feet to a point for corner; South 20 deg. 14 min. 42 sec. East, a distance of 91.97 feet to a point for corner; South 71 deg. 54 min. 58 sec. East, a distance of 60.53 feet to a point for corner; South 27 deg. 30 min. 26 sec. East, a distance of 187.98 feet to a point for corner; South 37 deg. 00 min. 30 sec. East, a distance of 23.72 feet to a point for corner; Thence South 89 deg. 37 min. 07 sec. West, a distance of 148.17 feet to an old fence post for corner, being the northeast corner of a tract of land described in deed to Jack M. Hankey as recorded in Volume 3394, Page 60, said Deed Records; Thence North 88 deg. 35 min. 09 sec. West, along the north line of said Hankey tract, a distance of 1578.94 feet to a '/2" iron rod set for corner, being the northwest corner of a tract of land described in deed to Julie Littlejohn as recorded in Volume 3794, Page 267, said Deed Records; Thence South 02 deg. 52 min. 23 sec. West along the west lines of said Littlejohn and Hankey tracts, a distance of 180.18 feet to a '/2" iron rod set for corner in a gravel road; Thence West, along the most southerly south line of aforesaid Cook Tract, a distance of 350.04 feet to a 1/2" iron rod set for corner; Thence North 01 deg. 39 min. 30 sec. East, a distance of 528.18 feet to an iron fence post for corner, being the northeast corner of a tract of land described in deed to Clyde Parker as recorded in Collin County Clerk's File No. 2000-0037949; Thence North 86 deg. 45 min. 13 sec. West along the north line of said Parker tract, a distance of 190.31 feet to an iron fence post for corner; Thence North 01 deg. 47 min, 34 sec. East, along the east line of a called 3.99 acre tract of land conveyed to John Rice Housewright, et al, a distance of 122.06 feet to an iron fence post for corner; Thence North 89 deg. 26 min. 18 sec. West, along the north line of said Housewright tract, a distance of 464.40 feet to a 1/2" iron rod set for corner in the east right-of-way line of aforesaid FM 544; Thence North 02 deg. 12 min. 16 sec. West, along the east right-of-way line of said FM 544, a distance of 338.00 feet to the Point of Beginning, containing 49.277 acres of land, more or less. Tract 2: Being a 1.041 acre tract of land situated in the Aaron West Survey, Abstract 979, Collin County, Texas and being more fully described by metes and bounds as follows: Beginning at a '/2" iron rod set for the southerly southwest corner of a tact of land described in deed to Edwina Collins Cook as recorded in Collin County Clerk's File No. 93-0039237; Thence East, a distance of 350.04 feet to a '/2" iron rod set in gravel road; Thence South 02 deg. 52 min. 23 sec. West, a distance of 133.19 feet to a 60d nail set in gravel road; Thence North 89 deg. 02 min. 27 sec. West, along the centerline of said gravel road, a distance of 347.09 feet to a 60d nail found for corner; Thence North 01 deg. 39 min. 30 sec. East, a distance of 127.26 feet to the Point of Beginning, containing 1.041 acres of land, more or less. EXHIBIT "B" CITY OF WYLIE, TEXAS SERVICE PLAN FOR ANNEXED AREA ANNEXATION ORDINANCE NO.: DATE OF ANNEXATION ORDINANCE: ACREAGE ANNEXED: Tract 1 — 49.277 acres; Tract 2— 1.041 SURVEY, ABSTRACT & COUNTY: Tract 1 - Allen Atterbury Survey, Abstract 23 and the Allen West Survey Abstract 979, Collin County, Texas; Tract 2 - Aaron West Survey, Abstract 979, Collin County, Texas Municipal Services to the acreage described above shall be furnished by or on behalf of the City of Wylie, Texas (the "City"), at the following levels and in accordance with the following schedule: A. POLICE SERVICE 1. Patrolling, responses to calls and other routine police services, within the limits of existing personnel and equipment and in a manner consistent with any of the methods of the City, extends police service to any other area of the municipality, will be provided within sixty (60) days of the effective date of the annexation ordinance. 2. As development and construction commence in this area, sufficient police personnel and equipment will be provided to furnish this area the maximum level of police services consistent with the characteristics of topography, land utilization and population density within the area as determined by the City Council within four and one-half (4-1/2) years from the effective date of the annexation ordinance, or upon commencement of development within the area, whichever occurs later. 3. Upon ultimate development of the area, the same level of police services will be provided to this area as are furnished throughout the City. B. FIRE SERVICES 1. Fire protection by the present personnel and the present equipment of the Fire Department, within the limitations of available water and distances from existing fire stations, and in a manner consistent with any of the methods of the City, extends fire service to any other area of the municipality, will be provided to this area within sixty (60) days of the effective date of the annexation ordinance. 2. As development and construction commence in this area, sufficient fire and emergency ambulance equipment will be provided to furnish this area the maximum level of fire services consistent with the characteristics of topography, land utilization and population density within the area as determined by the City Council within four and one-half (4-1/2) years from the effective date of the annexation ordinance, or upon commencement of development within the area, whichever occurs later. 3. Upon ultimate development of the area, the same level of fire and emergency ambulance services will be provided to this area as are furnished throughout the City. C. ENVIRONMENTAL HEALTH AND CODE ENFORCEMENT SERVICES 1. Enforcement of the City's environmental health ordinances and regulations, including but not limited to, weed and brush ordinances, junked and abandoned vehicle ordinances and animal control ordinances, shall be provided within this area sixty (60) days of the effective date of the annexation ordinance. These ordinances and regulations will be enforced through the use of existing personnel. 2. Complaints of ordinance or regulation violations within this area will be answered and investigated within sixty (60) days of the effective date of the annexation ordinance. 3. Inspection services, including the review of building plans, the issuance of permits and the inspection of all buildings, plumbing, mechanical and electrical work to ensure compliance with City codes and ordinances will be provided within sixty (60) days of the effective date of the annexation ordinance. Existing personnel will be used to provide these services. 4. The City's zoning, subdivision, sign and other ordinances shall be enforced in this area beginning within sixty (60) days of the effective date of the annexation ordinance. 5. All inspection services furnished by the City, but not mentioned above, will be provided to this area beginning within sixty (60) days of the effective date of the annexed ordinance. 6. As development and construction commence in this area, sufficient personnel will be provided to furnish this area the same level of Environmental Health and Code Enforcement Services as are furnished throughout the City. D. PLANNING AND ZONING SERVICES The planning and zoning jurisdiction of the City will extend to this area within sixty (60) days of the effective date of the annexation ordinance. City planning will thereafter encompass this property, and it shall be entitled to consideration for zoning in accordance with the City's Comprehensive Zoning Ordinance and Comprehensive Plan. E. PARK AND RECREATION SERVICES 1. Residents of this property may utilize all existing park and recreational services, facilities and sites throughout the City, beginning within sixty (60) days of the effective date of the annexation ordinance. 2. Additional facilities and sites to serve this property and its residents will be acquired, developed and maintained at locations and times provided by applicable plans for providing parks and recreation services to the City. 3. Existing parks, playgrounds, swimming pools and other recreational facilities within this property shall, upon dedication to and acceptance by the City, be maintained and operated by the City of Wylie, but not otherwise. F. SOLID WASTE COLLECTION 1. Solid waste collection shall be provided to the property in accordance with existing City policies, beginning within sixty (60) days of the effective date of the annexation ordinance. Residents of this property utilizing private collection services at the time of annexation shall continue to do so until it becomes feasible because of increased density of population to serve the property municipally. Commercial refuse collection services will be provided to any business located in the annexed area at the same price as presently provided for any business customer within the City, upon request. 2. As development and construction commence in this property and population density increases to the property level, solid waste collection shall be provided to this property in accordance with the current policies of the City as to frequency, changes and so forth. 3. Solid waste collection shall begin within sixty (60) days of the effective date of the annexation ordinance. G. STREETS 1. The City's existing policies with regard to street maintenance, applicable throughout the entire City, shall apply to this property beginning within sixty (60) days of the effective date of the annexation ordinance. Unless a street within this property has been constructed or is improved to the City's standards and specifications, that street will not be maintained by the City. 2. As development, improvement or construction of streets to City standards commences within this property, the policies of the City with regard to participation in the costs thereof, acceptance upon completion and maintenance after completion, shall apply. 3. The same level of maintenance shall be provided to streets within this property which have been accepted by the City as is provided to City streets throughout the City. 4. Street lighting installed on streets improved to City standards shall be maintained in accordance with current City policies. H. WATER SERVICES 1. Connection to existing City water mains for water service for domestic, commercial and industrial use within this property will be provided in accordance with existing City policies. Upon connection to existing mains, water will be provided at rates established by City ordinances for such service throughout the City. 2. As development and construction commence in this property, water mains of the City will be extended in accordance with provisions of the Subdivision Regulations and other applicable ordinances and regulations. City participation in the costs of these extensions shall be in accordance with the applicable City ordinances and regulations. Such extensions will be commenced within two (2) years from the effective date of the annexation ordinance and substantially completed with four and one-half(4 1/2) years after that date. 3. Water mains installed or improved to City standards which are within the annexed area and are within dedicated easements shall be maintained by the City of Wylie beginning within sixty (60) days of the effective date of the annexation ordinance. 4. Private water lines within this property shall be maintained by their owners in accordance with existing policies applicable throughout the City. SANITARY SEWER SERVICES 1. Connections to existing City sanitary sewer mains for sanitary sewage service in this area will be provided in accordance with existing City policies. Upon connection, sanitary sewage service will be provided at rates established by City ordinances for such service throughout the City. 2. Sanitary sewage mains and/or lift stations installed or improved to City standards, located in dedicated easements, and which are within the annexed area and are connected to City mains will be maintained by the City of Wylie beginning within sixty (60) days of the effective date of the annexation ordinance. 3. As development and construction commence in this area, sanitary sewer mains of the City will be extended in accordance with provisions of the Subdivision Regulations and other applicable City ordinances and regulations. Such extensions will be commenced within two (2) years from the effective date of the annexation ordinance and substantially completed within four and one-half(4 1/2) years after that date. J. MISCELLANEOUS 1. Any facility or building located within the annexed area and utilized by the City in providing services to the area will be maintained by the City commencing upon the date of use or within sixty (60) days of the effective date of the annexation ordinance, whichever occurs later. 2. General municipal administrative services of the City shall be available to the annexed area beginning within sixty (60) days of the effective date of the annexation ordinance. 3. Notwithstanding, anything set forth above, this Service Plan does not require all municipal services be provided as set forth above if different characteristics of topography, land use and population density are considered a sufficient basis for providing different levels of service. 4. The Service Plan is valid for ten (10) years from the effective date of this Ordinance. I $ _..1._�_l_.L..L1:1.:J.:J.J.:... I1i Ii � I 1 r`-iTce i ! i I 1 i 1 I ,• _ ..._.1_.. I i 1 r + 1 r,D � . ; I i ' i 1 I 1I I i1 1 1 I P I 11 1 II l' I I! r .� i 1 11 r ' ......._.._.._......_.._. 7 i ; I t ! i t 1 t 1 11 1 11 i 1 O1 i 1 i I Ii 1 11 . i ! I i i I w . 1 1 i i ti I 1 i >I ! ! r.._t.._.. 1 i 1 :ill . , L.._.._.._.._... 11 4. _.._.._..� ! I I iI �, 11 j 1 i t i + .� :i 'w 71..........1 ! i I ! i a l A i w i 11ei i i i I I I L.. _.._..� 1 i 1 i I I f o �� I 1 1 i I WYLIE CITY COUNCIL AGENDA ITEM NO. I �- September 11, 2001 • Issue Consider and act upon approval of an ordinance imposing interim Impact Fees, establishing a collection date, establishing a date to call a public hearing to amend the Impact Fees, and providing for an expiration date. Background During the recent Legislative Session, Senate Bill 243 (SB243) was enacted which resulted in several amendments to impact fee regulations. Although some of the amendments regarding the procedures which must be followed to adopt impact fees are beneficial to municipalities, the amendment which affects the collection and calculation of impact fees will have a negative impact on the City of Wylie. As summarized by TML, the legislation, which was effective September 1, 2001 requires: ...that the city give credit for that portion of property tax and utility revenue generated by new service units during the program period that is used for the payment of improvements, including the payment of debt, that are included in the capital improvement plan. In the alternative, the city may give a credit equal to 50 percent of the total projected cost of implementing the capital improvement plan. The ordinance under consideration will establish that the City will charge an Impact Fee not exceeding 50% of the established fee, and that the fee will be assessed at the time of the issuance of the building permit, rather than at the acceptance of the final plat. The ordinance further establishes that the City will call a public hearing for the purpose of setting a credit for impact fees in accordance with the calculation reflected in SB243 factoring in tax and utility revenue, and that this process will be completed within 90 days. Other Considerations N/A Financial Consideration N/A Board/Commission Recommendations N/A Staff Recommendations Staff recommends approval of the proposed Ordinance. Attachments Ordinance 4_ .4 . �.�, Prepa ed by Revie or by Finance City Mana pproval AN ORDINANCE OF THE CITY OF WYLIE,TEXAS ORDINANCE NO. AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AUTHORIZING THE IMPOSITION OF INTERIM IMPACT FEES; ESTABLISHING A COLLECTION DATE; ESTABLISHING A DATE TO CALL A PUBLIC HEARING FOR AMENDMENT TO THE IMPACT FEES; PROVIDING AN INTERIM TRANSITION OF SUCH FEES; PROVIDINIG FOR AN EXPIRATION DATE; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the 77th Legislative Session of the Texas State Legislature enacted Senate Bill 243 ("SB 243") regarding the collection and calculation of impact fees; and WHEREAS, the amendments in said SB 243 provide for the maximum amount of fee not to exceed fifty percent(50%)unless a credit is established for the actual cost of water and sewer revenues and infrastructure improvements through ad valorem taxation and the calculation of impact fees as authorized by § 395 of the TEXAS LOCAL GOVERNMENT CODE;and, WHEREAS, the Legislature established a time when such impact fees may be charged and collected; and WHEREAS, the City desires to take advantage of its ability to charge impact fees and to comply with the provisions of SB 243; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. A collection date for the collection of impact fees established hereunder shall be at the time of permitting or in the cases within the extraterritorial jurisdiction at the time an application for an individual meter connection to the municipality's water or wastewater system is filed. SECTION 2. That the City Council hereby calls a public hearing to be set by the City Manager at least thirty (30) days prior to the hearing date for the purpose of establishing a credit for impact fees established under this ordinance. The City Manager is hereby directed to undertake and publish all necessary notices to call such hearing at the date and time set forth herein. SECTION 3. That the Mayor is hereby authorized to sign the appropriate compliance statement under Senate Bill 243 acknowledging compliance with the requirements of said Senate Bill. SECTION 4. That prior to establishment of the appropriate credits that the City shall charge for impact fees not to exceed fifty (50%) percent of the established fee; however, the City may, after the establishment of the credit, provide herein charge the full amount of such impact fee as a condition thereof. In the event that such fee is not paid,the City Council may authorize the collection thereof. PAGE 1 43031 SECTION 5. That the provisions of this ordinance shall expire ninety(90) days from the date of its passage. SECTION 6. All provisions of the ordinances of the City of Wylie in conflict with the provisions of this ordinance be, and the same are hereby, repealed, and all other provisions of the ordinances of the City of Wylie not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 7. Should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Code of Ordinances of the City of Wylie, Texas. SECTION 8. That this ordinance shall take effect on the—day of , 2001. DULY PASSED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS, this _day of , 2001. APPROVED: By: JOHN MONDY, MAYOR ATTESTED AND CORRECTLY APPROVED AS TO FORM: RECORDED: By: By: BARBARA SALINAS, City Secretary City Attorney PAGE 2 43031 WYLIE CITY COUNCIL AGENDA ITEM NO. IL, September 11, 2001 Issue Hold a public hearing to consider and act upon an ordinance modifying the participation policies in the Subdivision Regulations. Background Section 6 of the Subdivision Regulations identifies facilities that are eligible for City participation such as thoroughfares with a pavement width exceeding 18.5 feet per side and storm sewers larger than 72-inches. The proposed ordinance modifies Section 6 and makes the cost for infrastructure improvements the responsibility of the developer. Financial Considerations N/A Other Considerations N/A Board/Commission Recommendations N/A Staff Recommendations Staff recommends approval of the ordinance modifying Section 6 of the Subdivision Regulations. Attachments Ordinance Gi/ z Olt -7 Prepared by 'evie $by Finance / City M71911, l7proval ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE 93-33, ESTABLISHING SUBDIVISION REGUATIONS; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: The Code of Ordinances of the City of Wylie be amended as follows: SECTION 1 The following Sections of Appendix B — Subdivision Regulations shall be repealed in their entirety: Section 6.01, Participation Policies; Section 6.02, Facilities Eligible for City Participation; Section 6.03 Limitation and Exceptions; and 6.04 Procedures for City Participation. SECTION 2 This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. SECTION 3 The repeal of any ordinance, or parts thereof, by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by the virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as effecting any rights of the municipality under any section or provisions of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 11th day of September, 2001. By John Mondy, Mayor ATTEST: Barbara Salinas, City Secretary