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08-29-2005 (City Council) Agenda Packet J Wylie City Council CITY OF WYLIE NOTICE OF MEETING Special Called Meeting Agenda Tuesday, August 29, 2006 — 6:00 pm Wylie Municipal Complex Council Chambers/Council Conference Room 2000 Highway 78 North John Mondy Mayor Carter Porter Mayor Pro Tern Earl Newsom Place I M. G. "Red" Byboth Place 2 Eric Hogue Place 3 Merrill Young Place 4 Rick White Place 5 Mindy Manson Asst. City Manager Richard Abernathy City Attorney Carole Ehrlich City Secretary In accordance with Section 551.042 of the Texas Government Code, this agenda has been posted at the Wylie Municipal Complex, distributed to the appropriate news media, and posted on the City website: www.wvlietexa,s'.gov within the required time frame. As a courtesy, the entire Agenda Packet has also been posted on the City of Wylie website: www.wylietexas.gov. The Mayor and City Council request that all cell phones and pagers be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to respond to a page or to conduct a phone conversation. 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. CALL TO ORDER Announce the presence of a Quorum. INVOCATION & PLEDGE OF ALLEGIANCE EXECUTIVE SESSION Recess into Closed Session in compliance with Section 551.001, et.seq. Texas Government Code, to wit: SS 551.071 Consultation with Attorney; Closed Meeting A governmental body may not conduct a private consultation with its attorney except: (1) When the governmental body seeks the advise of its attorney (A) pending or contemplated litigation;or (B) a settlement offer;or August 29,2006 Wylie City Council Special Called Meeting Agenda Page 2 of 3 (2) On a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter. 1. Discussion with the City Attorney regarding canceling the Employment Agreement dated July 19, 2004 between Mark Roath and the City of Wylie, Texas and any amendments thereto and terminating Mr. Roath's employment as city manager without cause by giving notice of such termination in accordance with the terms of the Employment Agreement, authorizing the Mayor or his designee to give such notice, and to pay Mr. Roath severance in accordance with his Employment Agreement and any amendments thereto. 2. Discussion with the City Attorney regarding designating an interim city manager in the event Mark Roath is absent or disabled. 3. Discussion with the City Attorney regarding a Severance Agreement and Release between Mark Roath and the City of Wylie, Texas and authorizing the Mayor to execute the same. 4. Discussion with the City Attorney regarding the resignation of Mark Roath as city manager. RECONVENE INTO OPEN SESSION Take any action as a result from Executive Session. 1. Consider, and act upon, canceling the Employment Agreement dated July 19, 2004 between Mark Roath and the City of Wylie, Texas and any amendments thereto and terminating Mr. Roath's employment as city manager without cause by giving notice of such termination in accordance with the terms of the Employment Agreement, authorizing the Mayor or his designee to give such notice, and to pay Mr. Roath severance in accordance with his Employment Agreement and any amendments thereto. 2. Consider, and act upon, designating an interim city manager in the event Mark Roath is absent or disabled. 3. Consider, and act upon, approving a Severance Agreement and Release between Mark Roath and the City of Wylie, Texas and authorizing the Mayor to execute the same. 4. Consider, and act upon, the resignation of Mark Roath as city manager. REGULAR AGENDA Public Hearings 1. Hold the Second Public Hearing on the proposed tax rate for fiscal year 2006-2007 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 August 29,2006 Wylie City Council Special Called Meeting Agenda Page 3 of 3 of the meeting at which it will vote on the final proposed tax rate. (L. Williamson, Finance Director) Executive Summary In accordance with the"Truth in Taxation"laws of the State of Texas,on August 8,2006,the City Council took a roll call vote on the proposed tax rate and scheduled two public hearings on the tax rate. The first public hearing was held on August 22, 2006. The second public hearing is scheduled for August 29, 2006. The notice of the two public hearings was published in the McKinney Courier-Gazette on August 14, 2006, and the Wylie News on August 16, 2006. The purpose of the second public hearing on August 29, 2006, is to give the taxpayers an additional 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. 2. Hold a Public Hearing on the fiscal year 2006-2007 Proposed Budget. All interested persons shall be given an opportunity to be heard, either for or against any item on the proposed budget. At the end of the hearing, the City Council will schedule the time and place that the vote will be taken on the proposed budget. (L. Williamson, Finance Director) Executive Summary The City Council must schedule and announce the meeting to adopt the proposed budget currently set for September 12, 2005 at 6:00 p.m. at City Council Chambers, Wylie Municipal Complex, 2000 Highway 78 North,Wylie,Texas 75098 General Business 3. (MOTION TO REMOVE FROM TABLE): Consider, and act upon, authorizing the Mayor to sign a Development Agreement between the City of Wylie and the Skorburg Company for a tract known as the Hood property or Alanis Crossing. (M. Manson, Assistant City Manager) Executive Summary The land subject to the proposed Development Agreement is a 61.26 acre tract of land known as the Hood property,or Alanis Crossing. The purpose of the proposed Development Agreement is to address the dedication of right-of-way and construction of Alanis Drive. WORKSESSION • (MOTION TO REMOVE FROM TABLE): Discussion, and possible direction, on 2006 Water and Wastewater Rate Study prepared by McLain Decision Support Systems. ADJOURNMENT CERTIFICATION ���,:,�►��'�'������� I certifythat this Notice of Meeting was post t '. , u st, 2006 at 5:00 p.m. as required bylaw in • • accordance with Section 551.042 ofthe :'U�overnmse 2e and that the appropriate news media was contacted. a courtesy, .r,enda is alibMiltedethr5ity.e2IWRie website: www.wy lietexas.tau. 7. . r� •L • � • • r. ■ �`'� • �Carole E rlich ity Secretary : , Date Notice Removed /. . s 7/. Wylie City Council CITYdF WYLIE AGENDA REPORT Meeting Date: August 29, 2006 Item Number: 1 Department: Finance Department (City Secretary's Use Only) Prepared By: Larry Williamson Account Code: Date Prepared: August 22, 2006 Budgeted Amount: Exhibits: Subject Hold the Second Public Hearing on the proposed tax rate for fiscal year 2006-2007 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. Recommendation Hold the Second Public Hearing on the proposed tax rate of $.715 for fiscal year 2006-2007 and provide taxpayers an opportunity to express their views on the tax rate. 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. Currently the date has been set for September 12, 2006 at 6:00 pm at City Council Chambers, Wylie Municipal Complex, 2000 Highway 78 North, Wylie, Texas 75098. Discussion In accordance with the "Truth in Taxation" laws of the State of Texas, on August 8, 2006, the City Council took a roll call vote on the proposed tax rate and scheduled two public hearings on the tax rate. The first public hearing was held on August 22, 2006. The second public hearing is scheduled for August 29, 2006. The notice of the two public hearings were published in the McKinney Courier-Gazette on August 14, 2006, and the Wylie News on August 16, 2006. The purpose of the second public hearing on August 29, 2006, is to give the taxpayers an additional 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. The official detailed effective tax rate calculations are available in the office of the Collin County Tax Assessor/Collector (Kenneth L. Maun) in McKinney. A copy is also maintained in the Finance Department for the Council and public to view. The proposed budget is based on the proposed tax rate of$0.715 per $100 valuation. This is the rate previously discussed by the Council. Any change in the proposed tax rate will require revision of the proposed budget. The City is required by law to follow certain meeting and notice (publication) guidelines. Page 1 of 2 Page 2 of 2 Approved By Initial Date Department Director City Manager g Olk I fias".-0 ?At: Wylie City Council CiTYdF WYLIE AGENDA REPORT Meeting Date: August 29, 2006 Item Number: 2 Department: Finance (City Secretary's Use Only) Prepared By: Larry Williamson Account Code: Date Prepared: August 22, 2006 Budgeted Amount: Exhibits: Subject Hold a Public Hearing on the fiscal year 2006-2007 Proposed Budget. All interested persons shall be given an opportunity to be heard, either for or against any item on the proposed budget. At the end of the hearing, the City Council will schedule the time and place that the vote will be taken on the proposed budget. Recommendation The City Council must schedule and announce the meeting to adopt the proposed budget currently set for September 12, 2006 at 6:00 p.m. at City Council Chambers, Wylie Municipal Complex, 2000 Highway 78 North, Wylie, Texas 75098. Discussion The City is required by law to follow certain meeting and notice (publication) guidelines. Approved By Initial Date Department Director City Manager fift Oft g , a1:06 Page 1 of 1 Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: August 29, 2006 Item Number: 3 Department: Planning (City Secretary's Use Only) Prepared By: Mindy Manson Account Code: Date Prepared: August 22, 2006 Budgeted Amount: Exhibits: One Subject Consider, and act upon, authorizing the Mayor to sign a Development Agreement between the City of Wylie and the Skorburg Company for a tract known as the Hood property or Alanis Crossing. Recommendation Motion to authorize the Mayor to sign a Development Agreement between the City of Wylie and the Skorburg Company. Discussion This item was tabled from the August 22, 2006 City Council Meeting. The land subject to the proposed Development Agreement is a 61.26 acre tract of land known as the Hood property, or Alanis Crossing. The 2005 Bond Election included funding for the extension of Alanis Drive which bisects this property from its current terminus in the Twin Lake Subdivision to the future intersection with F.M. 544. The purpose of the proposed Development Agreement is to address the dedication of right-of-way and construction of Alanis Drive. As it is set out in the Agreement, the Skorburg Company (the developer) will sell the required right-of-way to the City at an agreed upon price and construct the full width of Alanis Drive with 100% reimbursement from the City, with construction to begin by December 2007. The developer will not receive credits on either street or sewer impact fees, and will pay full parkland dedication fees as required by ordinance. Approved By Initial Date Department Director City Manager �-25'4 6 Page 1 of 1 DEVELOPMENT AGREEMENT BETWEEN THE CITY OF WYLIE AND ALANIS CROSSING, LTD. THIS DEVELOPMENT AGREEMENT (the "Agreement") is made and entered into by and between Alanis Crossing , Ltd., a Texas Limited Partnership and Alanis Crossing Holdings, Ltd., a Texas Limited Partnership (collectively the "Developer"), and the City of Wylie, Texas (the "City"). The Developer and the City are hereinafter collectively called the "Parties". WHEREAS, Developer desires to and shall develop the Property as a Planned Development in accordance with the City's Ordinance No. 2006-11, the Comprehensive Zoning Ordinance No. 2001-48 (the "Zoning Ordinance"), the Subdivision Regulation Ordinance No. 2003-03 (the "Subdivision Regulations") and any other applicable City ordinance, as theyall currently exist, including amendments, or may be amended; To the extent there is any conflict between Planned Development Ordinance No. 2006-11 and the Zoning Ordinance, the terms of Planned Development Ordinance No. 2006-11 shall prevail; and WHEREAS, Subchapter C, Chapter 212, Local Government Code, provides, in pertinent part, that City and Developer may, among other things, contract to allow the Developer to construct public improvements; and WHEREAS, Alanis Drive is to be constructed between Twin Lakes subdivision and FM 544 as reflected on Exhibit "B" and for which 100% funding has been approved by the City of Wylie in the 2005 Bond Program; and WHEREAS, the Developer and Wylie have agreed that this Agreement is the best way to proportionately share in costs of the necessary infrastructure to serve the Project in accordance with the terms set forth below; and WHEREAS, City is entitled to collect impact fees for sewer utilities, as described in City y Ord inance ance No. 90-10, as amended or supplemented by City Ordinance Nos. 93-4 and 97-4, 2001- 19, 2001-42, and 2001-5 6 and any other Ordinances amending or supplementing impact fees, whether now existing or in the future arising, including but not limited to any ordinance adopted to establish roadway impact fees after execution of this Agreement (collectively, the "Impact Fee p Ordinances"); and NOW, THEREFORE, in consideration of the covenants and conditions contained in this Agreement, the Parties agree as follows: 1. Land Subject to Agreement. The land that is the subject of this Agreement is a 61.26 acre tract of land in the Allen Atterbery Survey, more particularly described in Exhibit "A", attached hereto and incorporated as if fully set forth herein (the "Property"). Developer represents it will be the sole owner of the Property. If the Developer does not acquire Title to said ro ert p p y within 60 days, this Agreement is null and void. Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 1 459449v3 8/25/2006 2. Alanis Drive. Developer acknowledges that the construction of Alanis Drive from the eastern boundary of Twin Lakes subdivision to FM 544 will be constructed in conjunction with the Project("Alanis Drive"). A. Dedication of Right-of-Way for Alanis Drive. The City of Wylie shall use the acquisition funds approved in the 2005 Bond Program to purchase from Developer a 100' Right- of-way (approximately 5.74 acres) through the east/west length of the property. The purchase price shall be based on an independent market appraisal and will be paid to Developer at the time of dedication. City shall initiate the appraisal process upon receipt of notice from the Developer p that clear title has been obtained. City and Developer shall work together to complete the transaction to facilitate the construction schedule as identified in Section 2.B. Developer acknowledges that City must spend the bond funds for acquisition, design and construction within three (3) years of the Phase I Bond Sale, which occurred in May 2006. In the event that minor modifications to the right-of-way are needed at the time of preliminary plat for the subdivision, City and Developer shall work together to accommodate land swaps. In the event that more right-of-way is required, City may purchase additional right- of-way at a mutually agreed upon valuation. B. Construction of Alanis Drive. To facilitate the development of Alanis Drive, Developer shall obtain a detailed quote or offer of costs for Developer to construct Alanis Drive ("Developer's Quote"). Developer's Quote shall be obtained by Developer and submitted to the City upon receipt, but not later than one hundred and eighty (180) days after Developer receives informationp from the City the and documents necessary to obtain the quote or offer. City shall review Developer's Quote and may compare it with bids received by the City. If Citydoes not its award a contract to one of bidders, then Developer shall construct Alanis Drive in accordance with Developer's Quote and dedicate it to the City. City shall notify Developer that it has awarded a contract or that it has rejected all bids within three (3) business days of making such decision. If City notifies Developer that it has rejected all bids, Developer shall submit its final contract for construction to City for approval, which shall not be unreasonably withheld. Should the City require easements and/or right-of-way for construction related issues, includingbut not limited to, temporary construction easements, slope easements, drainage easements, traffic control easements, the Developer shall provide, at its sole cost, said property days 3 0 da s written notice by the City. Construction costs for Alanis Drive shall include, but are not limited to: engineering, staking, excavation, erosion control, concrete pavement and sidewalks, street lights, si na e, irrigation in g g g median and storm sewer within the right-of-way. The parties agree that the acquisition, design q � and construction costs shall not exceed the amount of bond funds available for Alanis Drive. Developer shall cause construction of Alanis Drive to begin prior to December 31, 2007, and will actively continue construction until Alanis Drive is complete and accepted bythe City. p Y In the event that the Developer fails to comply with its obligations in this City Y ma Y continue with its own plans and timeline for construction of the Alanis Drive that it had prior to this Agreement. Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 2 459449v3 8/25/2006 C. Reimbursement of Alanis Drive Costs. If Developer constructs Alanis Drive in accordance with paragraph 2.B. above, Developer will be entitled to reimbursement bythe City y of One Hundred Percent (100%) of the amount of Developer's Quote or Developer's actual costs, whichever is less, as approved by the City Engineer. The Cityagrees to reimburse Developer g every 45 days for costs incurred within twenty (20) days of receipt of invoice for the p portion of Alanis Drive that is constructed. Developer shall not cause work to be performed, or approve any contract amendments (or series or group of amendments), without prior approval of the City Engineer, which will result in an aggregate increase in the contract price in an amount greater than twenty percent (20%) of Developer's Quote, or which will result in expenses in excess of available bond funds or result in an extension of the time for completion of Alanis Drive or change in types of materials or methods of construction beingused under the contract, , unless the Developer shall have received City's prior written approval of such amendment. In the event that the Developer fails to secure such approval, the contract shall be deemed not to have been modified by such amendment and Developer shall not be entitled to reimbursement for any amounts contained in the amendment. The City represents to Developer that sufficient funds are available to fully reimburse Developer for the cost of the Project. 3. 2005 Bond Program. City represents to Developer that the Alanis Drive improvement is included in the City's approved 2005 Bond Program and that funds for the construction of Alanis Crossing are available for three (3) years from the Phase I Bond Sale, which occurred in May 2006. 4. Impact Fees. Developer acknowledges that the Property is subject to the Impact Fee Ordinances. Developer is not receiving any credit towards impact fees under this Agreement and this Agreement ' g g ent does not alter the City's right to assess and collect impact fees against the g Property pursuant to the Impact Fee Ordinances. All phases of the Project shall be assessed and shall J a l pay sewer impact fees in accordance with the Impact Fee Ordinances. 5. Road Improvements and Impact Fees. All phases of the Project shall be assessed and shall pay roadway impact fees in accordance with the Impact Fee Ordinances. 6. Park Fees. The Developer shall pay the required park fees and satisfythe requirements of Chapter 78, Article IV of the City's Code of Ordinances (the "Parkland Dedication Ordinance"). 7. Open Ditch Road Section: In blocks where the lot size is a minimum of 18,000 square feet the road section shall be open ditch with a 26 foot wide pavement section within a 60 foot Right-of- Way as shown on Exhibit"D". No sidewalks shall be required. 8. Formation of Homeowner's Association and Landscaping alongAlanis Drive and FM 544. Developer shall provide for the formation of a homeowners' association. The homeowners' s association shall own and be responsible for the maintenance of the common areas and greenbelts located within the boundaries of the Property (to be described on the subjectplats), p ), including any and all respective appurtenances (such as, without limitation, landscaping, p g, screening berm irrigation, equipment, related structures, other homeowners' association infrastructure, etc.) (the "HOA Property"). Every owner of a lot within the Property shall be a p y member of the homeowners' association. The homeowners' association shall provide for the Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 3 459449v3 8/25/2006 payment of dues and assessments required to maintain the HOA Property. The homeowners' association documents must be filed for record with the county concurrently with the filing of each final plat for the Property. 9. Continuity. This Agreement shall be a covenant running with the land and shall be binding upon the Developer, its officers, directors, partners, employees, representatives, agents, successors, assignees, vendors, grantees and/or trustees. In addition, the parties shall cause this Agreement to be filed in the Land Records of Collin County. 10. Sovereign Immunity. Except for the obligations set forth in this Agreement, Developer and City agree that City has not waived its sovereign immunity by entering into and performing its obligations under this Agreement. This Agreement is only for the benefit of the parties and the City has not waived its sovereign immunity as to any third parties. The parties do not intend to create any third party beneficiaries by entering into this Agreement. 11. Notices. Any notice provided or permitted to be given under this Agreement must be in writing and may be served by depositing same in the United State Mail, addressed to the party to be notified, postage pre-paid and registered or verified with return receipt requested, or by delivering the same in person to such party via a hand-delivery service, Federal Express or any courier service that provides a return receipt showing the date factual delivery of same to the addressee thereof. Notice given in accordance herewith shall be effective upon receipt at the address of the addressee. For purposes of notice, the addresses of the parties shall be as follows: If to Developer to: Alanis Crossing, Ltd. 3838 Oak Lawn, Suite 1212 Dallas, Texas 75219 Attention: Richard M. Skorburg With a copy to: Art Anderson. Winstead Sechriest& Minick 5400 Rennaisance Tower Dallas, Texas 75201 If to City, to: Mark B. Roath City Manager 2000 Highway 78 North Wylie, Texas 75098 With a copy to: Julie Y. Fort Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 4 459449v3 8/25/2006 Abernathy, Roeder, Boyd& Joplin, P.C. 1700 Redbud Blvd., Suite 300 McKinney, TX 75069 12. PARTIES' ACKNOWLEDGMENT OF CITY'S COMPLIANCE WITH FEDERAL AND STATE CONSTITUTIONS, STATUTES AND CASE LAW AND FEDERAL, STATE AND LOCAL ORDINANCES, RULES AND REGULATIONS/DEVELOPER'S WAIVER AND RELEASE OF CLAIMS FOR OBLIGATIONS IMPOSED BY THIS AGREEMENT. A. THE PARTIES ACKNOWLEDGE AND AGREE THAT: 1. THE PUBLIC IMPROVEMENTS TO BE CONSTRUCTED AND/OR PAID FOR BY THE DEVELOPER AND/OR THE FEES TO BE IMPOSED BY THE CITY REGARDING THE PROPERTY DO NOT CONSTITUTE A: (a) TAKING UNDER THE TEXAS OR UNITED STATES CONSTITUTION; (b) VIOLATION OF THE TEXAS WATER CODE, AS IT EXISTS OR MAY BE AMENDED; (C) NUISANCE; AND/OR (d) CLAIM FOR DAMAGES AND/OR REIMBURSEMENT AGAINST THE CITY FOR A VIOLATION OF ANY FEDERAL AND/OR STATE CONSTITUTION, STATUTE AND/OR CASE LAW AND/OR FEDERAL, STATE AND/OR LOCAL ORDINANCE,RULE AND/OR REGULATION. 2. THE AMOUNT OF DEVELOPER'S FINANCIAL OR INFRASTRUCTURE CONTRIBUTION (AFTER RECEIVING ALL CONTRACTUAL OFFSETS, CREDITS AND REIMBURSEMENTS, IF ANY) AGREED TO IN THIS AGREEMENT IS ROUGHLY PROPORTIONAL TO THE DEMAND THAT DEVELOPER'S DEVELOPMENT PLACES ON THE ROADWAY, WATER AND/OR SANITARY SEWER SYSTEM OF THE CITY. 3. DEVELOPER SHALL INDEMNIFY AND HOLD HARMLESS THE CITY FROM ANY CLAIMS AND SUITS OF THIRD PARTIES, INCLUDING BUT NOT LIMITED TO DEVELOPER'S PARTNERS, OFFICERS, DIRECTORS, EMPLOYEES, REPRESENTATIVES, AGENTS, SUCCESSORS, ASSIGNEES, VENDORS, GRANTEES, AND/OR TRUSTEES, BROUGHT PURSUANT TO THIS PARAGRAPH. B. DEVELOPER RELEASES THE CITY FROM ANY AND ALL CLAIMS OR CAUSES OF ACTION BASED ON EXCESSIVE OR ILLEGAL EXACTIONS. C. DEVELOPER WAIVES ANY CLAIM FOR DAMAGES AND/OR REIMBURSEMENT AGAINST THE CITY FOR A VIOLATION OF ANY FEDERAL AND/OR STATE CONSTITUTION,STATUTE AND/OR CASE LAW AND/OR FEDERAL,STATE AND/OR Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 5 459449v3 8/25/2006 LOCAL ORDINANCE,RULE AND/OR REGULATION RELATED TO THIS AGREEMENT. THIS PARAGRAPH SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. 13. Construction. All construction will be in accordance with applicable Ordinances and Codes of City. Evidence of any bonds required by Section 212.073 of the Texas Local Government Code, or other applicable law, shall be provided by Developer to the City. 14. Compliance with Ordinances. City ordinances covering on-site improvements, property taxes, tap fees, utility rates, subdivision regulations and the like are not affected by this Agreement. Unless expressly stated herein, this Agreement does not waive or limit the obligations of Developer to City under any other ordinance, whether now existing or in the future arising. 15. Miscellaneous. a. Assignment. This Agreement is assignable upon the following conditions: i. the assignment of the Agreement must be evidenced by a recordable document. The recordable document referred to in this paragraph is subject to the approval of City; ii. at the time of any assignment, Developer must give the assignee written notice that any and all obligations, covenants and/or conditions contained in the Agreement will be assumed solely and completely by the assignee; iii. Developer will file any approved, executed assignment in the Land Records of Collin County, Texas; and iv. Developer shall provide City with the name, address, phone number, fax number and the name of a contact person for the assignee. b. Entire Agreement. This Agreement contains the entire agreement of the parties with respect to the matters contained herein and may not be modified or terminated except upon the mutual written agreement of the parties hereto. c. Venue. This Agreement shall be construed in accordance with the laws of the State of Texas and shall be performable in Collin County, Texas. Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 6 459449v3 81251200E d. Consideration. This Agreement is executed by the parties hereto without coercion or duress and for substantial consideration, the sufficiency of which is forever confessed. e. Counterparts. This Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes. f. Authority to Execute. The individuals executing this Agreement on behalf of the respective parties below represent to each other and to others that all appropriate ro riate and necessary action has been taken to authorize the individual who is executing this Agreement to do so for and on behalf of the party for which his or her signature appears, that there are no other . pp parties or entities required to execute this Agreement in order for the same to be an authorized and binding agreement on the party for whom the individual is signing this Agreement and that each individual affixing his or her signature hereto is authorized to do so, and such authorization is valid and effective on the date hereof. g. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal g representatives, successors and assigns. h. Savings/Severability. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision thereof, and this Agreement shall be construed as if such invalid illegal or unenforceable provision had never been contained herein. i. Representations. Each signatory represents this Agreement has been read by the party for which this Agreement is executed and that such party has had an opportunity to confer with its counsel. j. Miscellaneous Drafting Provisions. This Agreement shall be deemed drafted equally by all parties hereto. The language of all parts of this Agreement shall be construed as a whole according to its fair meaning and any or presumption principle that the p p p language herein is to be construed against any party shall not apply. Headings in this Agreement g g t are for the convenience of the parties and are not intended to be used in construing this document. k. Waiver. Waiver by either party of any breach of this Agreement, or the failure of either party to enforce any of the provisions of this Agreement, at anytime, shall not . g � in any way affect, limit or waive such party's right thereafter to enforce and compel strict compliance. 1. Force Majeure. If performance by either party of any term, condition or covenant in this Agreement is delayed or prevented by an act of God, strike, lockout, shortage of material or labor, any federal or state law or any order, rule or regulation or governmental g authority, civil riot, flood, or any other cause not within the control of the the period for party, Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 7 459449v3 8/25/2006 performance of the term, condition or covenant shall be extended for a period equal to the period said party is so delayed or prevented. m. Reference to Developer. When referring to "Developer" herein, this Agreement shall refer to and be binding upon the Developer, and its respective, officers, directors, partners, employees, representatives, contractors, agents, successors, assignees, vendors, grantees and/or trustees. n. Recitals Incorporated. The recitals set forth above are incorporated as if set forth herein and the parties relied upon the accuracy of the recitals when entering into this Agreement. o. Exhibits Incorporated. Each exhibit attached to this Agreement and referenced above is incorporated into this Agreement for all purposes as if fully set forth herein. IN WITNESS WHEREOF, the parties have executed this Agreement and caused this Agreement to be effective on the last date written below. CITY OF WYLIE, TEXAS, ALANIS CROSSING, LTD., a municipal corporation a Texas limited partnership By: Alanis Crossing GP Corporation, its general partner By: By: John Mondy, Mayor Richard M. Skorburg, President Date: Date: ALANIS CROSSING HOLDINGS, LTD. a Texas limited partnership By: Alanis Crossing Holdings GP Corporation, its general partner By: Richard M. Skorburg, President Date: Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 8 459449v3 8/25/2006 STATE OF TEXAS COUNTY OF COLLIN § BEFORE ME, the undersigned authority, on this day personally appeared John Mondy, y the Mayor of the CITY OF WYLIE, TEXAS, a municipal corporation, known to me to be one of the persons whose names are subscribed to the foregoing instrument; he acknowledged to me he is the duly authorized representative for the CITY OF WYLIE, TEXAS and he executed said instrument for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS day of 2006. Notary Public in and for the State of Texas My Commission Expires: STATE OF TEXAS § COUNTY OF § BEFORE ME, the undersigned authority, on this day personally appeared Richard M. Skorburg, the President of ALANIS CROSSING GP CORPORATION, partner artner of general ALANIS CROSSING LTD., a Texas limited partnership, known to me to be one of the persons whosep names are subscribed to the foregoing instrument; he acknowledged to me he is the duly authorized representative for ALANIS CROSSING, LTD., and he executed said instrument for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS day of 2006. Notary Public in and for the State of Texas My Commission Expires: Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 9 459449v3 8/25/2006 STATE OF TEXAS § COUNTY OF § BEFORE ME, the undersigned authority, on this day personally appeared Richard M. Skorburg, the President of ALANIS CROSSING HOLDINGS GP Corporation, general partner of ALANIS CROSSING HOLDINGS, LTD, a Texas limited partnership, known to me to be one of the persons whose names are subscribed to the foregoing instrument; he acknowledged to me he is the duly authorized representative for ALANIS CROSSING HOLDINGS, LTD., and he executed said instrument for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS day of , 2006. Notary Public in and for the State of Texas My Commission Expires: Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 10 459449v3 8/25/2006 EXHIBIT A LEGAL DESCRIPTION Being a 61.26 acre tract of land located in the Allen Atterbery Survey, Abstract No. 23, and a portion part of a called 86.6 acre tract described to S.H. Hood, as recorded in Volume 291, Page 167, Collin County Deed Records (C.C.D.R.), and being described by metes and bounds as follows; COMMENCING at a found 3/8 inch diameter iron rod located on the South line of said Allen Atterbery Survey, the North line of the D.W. Williams Survey,Abstract No. 980, the Northeast corner of a tract of land described to Thelma Rice, as recorded in Volume 561, Page 266, C.C.D.R., the Southeast corner of a tract of land recorded to Tommy & Toni Pulliam, as recorded in Volume 4590, Page 1895, C.C.D.R., and the West right-of-way line of F.M. 544 (90' ROW), as recorded in Volume 568, Page 21, C.C.D.R.; THENCE North 89 degrees 32 minutes 50 seconds West, along the South line of said Atterbury Survey and the North line of said Williams Survey, a distance of 648.87 feet to a 5/8 inch diameter iron rod marking the POINT OF BEGINNING and being the Southwest corner of said Pullium tract; THENCE North 89 degrees 32 minutes 50 seconds West, continuing along the South line of said Atterbury Survey and the North line of said Williams Survey,the North line of said Rice tract, the North line of a tract of land described to Darlene R. Ceilley, as recorded in Volume 4977, Page 504, C.C.D.R.,North line of a tract of land described to Edwin W. Klingbeil, as recorded in Volume 4977, Page 504, C.C.D.R., and the North line of a tract of land descibed to Robert L. Klingbeil, as recorded in Volume 5250, Page 3809, C.C.D.R., a distance of 1635.45 feet to a found 1/2 inch iron rod in concrete being the Southeast corner of the Twin Lakes Phase V subdivision, as recorded in Volume 5588, Page 3164, Collin County Plat Records, and marking the Southwest corner of the herein described tract; THENCE North 00 degrees 51 minutes 52 seconds East, leaving said common Survey line and along the East line of said Twin Lakes Phase V subdivision a distance of 1405.70 feet to a 5/8 inch diameter iron rod being the Northeast corner of said Twin Lakes Phase V Subdivision, and the South line of a tract of land described to Steven Combest, as recorded in Volume 3743, Page 219, C.C.D.R., marking the Northeast corner of herein described tract; THENCE South 89 degrees 18 minutes 39 seconds East, along the south lines of said Combest tract, a tract of land described to Jesse Cardenas, as recorded in Volume 4871, Page 1327, C.C.D.R, a tract of land described to Martha Sheppard, as recorded in Plat Book 84, Page 338, C.C.D.R., a tract of land described to Terry and Casaundra Calisle, as recorded in Volume 3011, Page 202, C.C.D.R., a tract of land described to James Heintz, as recorded in Volume 5400, Page 2520, C.C.D.R., a tract of land described to Billy D. Duncan, a tract of land described to James & Donna Trevino, as recorded in Volume 4501, Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 11 459449v3 8/25/2006 Page 1617, C.C.D.R., a tract of land described to Sandra Benton, as recorded in Volume 4761, Page 1510, C.C.D.R., a tract of land described to Close Family Living Trust, as recorded in Volume 5249, Page 5919, C.C.D.R., a tract of land described to Sam Terry, a tract of land described to David & Julie Black, as recorded in 94-0063489, C.C.D.R., and a tract of land described to Merie & Sheri Little, as recorded in 93-0080940, C.C.D.R., a distance of 1492.50 feet to a found 1/2 inch diameter iron rod in a pecan tree, being the Northwest corner of a tract of land described to Brent & Beverly Bates, as recorded in 96- 0018275, C.C.D.R., for the North Northeast corner of the herein described tract; THENCE South 02 degrees 39 minutes 12 seconds East, along the west line of said Bates tract, a distance of 331.53 feet to a set 1/2 inch diameter iron rod with cap stamped "TRI- TECH" being the Southwest corner of said Bates tract and an interior corner of the herein described tract; THENCE South 89 degrees 27 minutes 31 seconds East, along the south line of Said Bates tract, a distance 684.24 feet to a set 1/2 inch diameter iron rod with cap stamped "TRI- TECH" being the Southeast corner of said Bates tract and on the West right-of-way line of said F.M. 544, marking the East Northeast corner of the herein described tract; THENCE South 02 degrees 37 minutes 38 seconds East, along the West right-of-way line of said F.M. 544, a distance of 179.98 feet to a found 5/8 inch diameter iron rod; THENCE South 04 degrees 02 minutes 47 seconds East, continuing along the West right- of-way line of said FM. 544, a distance 534.62 feet to a found 5/8 inch diameter iron rod being the Northeast corner of said Pullium tract and marking the East Southeast corner of herein described tract; THENCE North 89 degrees 32 minutes 51 seconds West, leaving said right-of-way and along the North line of said Pullium tract, a distance of 621.02 feet to a found 5/8 inch diameter iron rod being the Northwest corner of said Pullium tract and an interior corner of herein described tract; THENCE South 00 degrees 26 minutes 32 seconds West, along the West line of said Pullium tract, a distance of 354.71 feet to the POINT OF BEGINNING and containing 61.26 acres or 2,668,568 square feet. Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 12 459449v3 8/25/2006 Exhibit"B" Alanis Drive Bond Package Mattis (Twin Lakes to FM 544) . Construction of new 4-lane concrete. ... . .. . . . Estimated Cost: $ 2.6 million ;,..._ • _ i or.- - .,..ii.,-.„,,,,-..,,..... , . ... il.„..,,AF..... . !: ....-...--...,.: !..-. ....: .. . . ...,_,L-' i.:__.....i .• _,.....,_.-,1 -:....r.: 1. . :...1111111.%•7 IfiaPh SpeiffiCA . • • .. . • : . Ail an I a !::-..-., ,-":',i%' ' 1'.= '..::.,'•,:,'--:s::..-- -.,..- • ' if._ v • ' "''''''-'''''.' :""',:"' :--.'i':„,'•-•:','. * r:tl'i:. i'-''''':;::-:'•-:t:',.•:-'A':',C.:',.':1,i',:'.:,,:...j:;.:' •,:':.(.:.,.:, i 011n--7 • Approximately 2,700 linear :,....-,f,i.i.:•::: . ...,:z.,1.„........,,,,,,,.....„:::..,...i...,:.:-....7_,,:n.,-.., ,244.-.--- feet .,.....•:......E,:.::-.4....,..i..,...-.:-....-A..i.........:...,::::::::..:......./.;:::i,: ,..,,,-,.,.....::.-:,. .. ...,._ _...r. .,,,,:,..,!•,. , ...._ • Sidewalks Included L.' :-+Iffilipunalvmm,... i. ....._.„,:.,...,, :„.. . ... , ,- '4 i=a111111 1 , 74. fil, . 1 . , 14. ,fsigiAril .. •- • -• --• •-- _. -4 7.---,---igig, • ,....1,...r......',en*, ., . .... .., 0-..-a e 7.177.-'-'-'11""".'".*". •:::1;...,Tr.:i.::::i,,I.::1 Z : : . ,.................. in 1 i ,........4.__Lir_ ...: .. .......:.:•:: !.,... , 1 r 1 ri. ;„...,.....„. ....i. . _. i,,........ -.........-,,,. ---, :. I-4 —I 1 ; •:::=........7:-.;,• '.:-.:.:,' ,4,4_, .... 1— i t ; 1 It 1 ,.-':!:1. •-••••••".. ..-:..: .: 1 t t 1 ',..i tr: . --,,;-..-“ •,:...-:: . i I i —1 9 e- : •••••:-..;..-: -:::,:-1-:::-.:.... it : 4 i ; 1 , i 4 ::::•.1-.,:--.:•-•.,:.%. '-',.:'" I I il ' H . : :=•.: ,,,.; ,.'.,,i,.• .....-.... I ..., 1. ...... ...,......,•.,.•.........A...., Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 13 459449v3 8/25/2006 ExhibituTII Concept Plan Ile wit 40*"1 � ~ i ! ' � F ~ ! / ---~ ! ~~ '-' — �----'--- --- i \ � � \ sit IP 31.4 ' -'-----'---------------~-------'-'-'---- l ` i In,:we �*° i _i- ' | i -------'-----! | �:���' � i �1��" -~' --' Development Agreement Between the City oy Wylie and Alaois Crossing,Ltd. Psgm }4 45944e0 8/25/200* Exhibit "D" Open Ditch Rd Section VARIABLEVARIABLE WIDTH U.D.E. 50' R.O.W. M WIDTH U.D.E. ... �►�s C.VARIES 2'VARIES 21 13' 131 21 vAR!E5 Z'VARIES r rr 4. ...I r~-, r« -r•- I S' Porolroik Crown— /... (9 <V VZ V/‘ ,6427 .'I--.77;'-'-', //. :104, , //, , ,A*,e,e , .* ,N, . ,.„,,,,,,,,,,, .t-*-4, , LN,N, N4 sk A e4e,( St's."/)#,:i A#9,‘Y‘YVVNV?*•W*V‘)>W* W- ''' * * f ‘teisiyieb s I W-e kof, V.N‘4> 'V water !N1r : Fr-cinch ct Ise � ut��tl� r f ___ .� _ . .. 671 51 / " Lime Stabilized Subgrade The design and construction of street grades shall be at 0.3%and greater. The City's current design standards allow for a minimum of 0.5%. However the natural topography of the site is less than 0.5%. Skorburg Company has developed other projects under similar constraints. In those instances, the municipalities have allowed a minimum slope of 0.3%on street and bar ditch grades. Development Agreement Between the City of Wylie and Alanis Crossing,Ltd. Page 15 459449v3 8/25/2006 Wylie City Council CITY6FWYLIE AGENDA REPORT Meeting Date: August 29, 2006 Item Number: Work Session (City Secretary's Use Only) Department: Engineering Prepared By: Chris Hoisted Account Code: Date Prepared: August 22, 2006 Budgeted Amount: Exhibits: One Subject Discussion, and possible direction, on 2006 Water and Wastewater Rate Study prepared by McLain Decision Support Systems. Recommendation Discussion The 2006 Water and Wastewater Rate Study, prepared by McLain Decision Support Systems, updates and includes the City's capital improvement program for utilities. In addition, the proposed Study incorporates the anticipated increases from the North Texas Municipal Water District as well. Mr. Robert McLain, consultant, will be presenting the Study and its findings (see attached). Approved By Initial Date Department Director City Manager Ak(ivi Page 1 of 1 City of Wylie, Texas Development of Water & Wastewater Rates August 2006 McLain Decision Support Systems Government Utility Rate Practice 201 W. Southwest Pkwy., #4105 Lewisville, TX 75067 (972) 436-6181 —Fax (972) 692-5397 ■. McLain • Decision support syeems F l�1< I A I I`J I I,t I'ttti tijal• I r tr1t�=ts � I S,40.111�i°xt I't+ y.,4.410i•I.p'w.ills,IX i S 4 t On)#irvnle41 t •i47.t 09 i97 I'•,*•i 14)A*ai s 1.'1,6.00,44hti.tr3 August 9, 2006 Mark Roath City Manager City of Wylie 2000 HWY 78 Wylie, TX 75098 Dear Mr. Roath: Enclosed is the final report titled, Development of Water & Sewer Rates, reared prepared by McLain Decision Support Systems (McLainDSS). The report conveys the findings, conclusions, and recommendations of our firm with respect to the development of water and sewer rates to cover the projected water and sewer enterprise fund costs for the period 2007 -2016. The report includes a significant amount of assumptions and detailed tables and worksheets. The detailed tables, exhibits, and worksheets provide an understanding of where the numbers come from and the related impact the rate design alternatives rates will have on the system's customers. We have appreciated the courtesies and professional relationship extended to us during this engagement by City management and staff. Very truly yours, Robert McLain, Director Government Utility Rate Division McLain Decision Support Systems Mc.I. AIN Rr►hctt MclAtn,Prtnc Eprl•4ic l I4n I txik 3n Sy,:vin, I W.Southwe,t Pkwv.,.410•l..cwiwii1c,TX 75067 tQ7 4 tt,b181 OM,•( 721 0)2-S W7 F.•t 214)SO 3.3t$!N•lohkr•hobiattiannli,com Table of Contents I. Executive Summary 1 1.1.Introduction 1 1.2.Financial Plan Key Management Assumptions 1.3 Financial Plan Findings 3 1.4 Financial Plan Notice 3 1.5 Financing Scenarios 3 1.6 Rate Design Objectives 6 1.7 Overview of Rate Design Alternatives 6 1.8 Customer Impact 8 II. Identification of the Revenue Requirements 9 2.1.Introduction 9 2.2 Key Cost of Service Assumptions 9 2.2.1. Growth Assumptions 9 2.2.2.NTMWD Water Purchase Costs 11 2.2.3. NTMWD Wastewater Treatments 12 2.2.4. Additional Staffing 14 2.2.5. Inflation Drivers 15 2.2.6. Water Capital Improvement Program 16 2.2.7. Wastewater Capital Improvement Program 16 2.2.8. Use of Impact Fees 16 2.2.9. Collection of Impact Fees 26 2.2.10. Renewal & Replacement Costs 27 2.2.11. General Fund Transfers 28 ► McLain ADecision Support CP' Systems Mc I AIN Robert McLsrn,F't incipra1•Mk Lim I kc9c t.0 n S.ri+1 ort S,trtn•MI W Soathwr,t T'5:►+-►•.,•4 k 5•Lco.aviiic.TX 7'5067 ( 7'I 416.61S1 Office•0721 02 S i}7 Fix•(2 14)!.N 3.165_'Mc tic 14m lntin.k}b.ic•rn List of Figures 1.1.Recap of the Impact of Each Financing Scenario 4 1.2.Key Adequacy Tests—Financing Scenario 1 4 1.3.Key Adequacy Tests—Financing Scenario 2 5 I.4.Key Adequacy Tests—Financing Scenario 3 5 1.5.Rate Alternatives 6 1.6.Existing&Alternative Rate Structures - Water 7 I.7.Existing&Alternative Rate Structures - Wastewater 7 1.8 Illustration of Monthly.Impact: Water& Sewer Monthly Bills 8 2.1 Growth - Water 10 2.2 Growth - Wastewater 10 2.3 Water Loss Percentages—Inflow/Infiltration Percentages 11 2.4 Water Purchases from NTMWD 11 2.5 NTMWD Wastewater Treatment Costs (Wylie Wastewater Treatment Plant Costs) 12 2.6 NTMWD Wastewater Treatment Costs (Muddy Creek Interceptor Costs)) 12 2.7 NTMWD Wastewater Treatment Costs (Muddy Creek Wastewater Treatment Plant) 13 2.8 Recap of NTMWD Wastewater Treatment Costs 13 2.9 City of Wylie Utility Staffing Levels 14 2.10 Personnel-Related Costs 14 2.11 Total Departmental Operating and Maintenance Costs (ExcludingNTMWD Costs) 15 2.12 Recap of Operating and Maintenance Costs 15 2.13 Revenue Debt—Existing—Water& Sewer 16 2.14 Revenue Debt—Existing—Water Portion 17 2.15 Revenue Debt—Existing—Water Portion Eligible for Impact Fees p 17 2.16 Revenue Debt—Existing—Wastewater Portion 18 2.17 Revenue Debt—Existing—Wastewater Portion Eligible for Impact Fees p 18 2.18 Non-Revenue Debt—Existing—Water& Sewer 19 2.19 Non-Revenue Debt—Existing—Water Portion I9 2.20 Non-Revenue Debt—Existing—Water Portion Eligible for Impact Fees p 20 2.21 Non-Revenue Debt—Existing— Wastewater Portion 20 2.22 Non-Revenue Debt—Existing—Wastewater Portion Eligible for Impact Fees p 21 2.23 Water Capital Improvement Plan 21 2.24 Revenue Debt—Planned—Water Portion 22 2.25 Revenue Debt— Planned—Water Portion Eligible for Impact Fees p 23 2.26 NTMWD Contract Revenue Debt 23 ■ McLain Decision Support 4111L-Air Systems Mc I. AIN Rr hcrt M(Lun,F'rn.Epa€• cL,itn i)....1'rr'.rt S rent. _'C!I W.SAithxrtr I'6:w„4,41ii•Lawi..rtlly,TX 75067 (472)4 64,iKi l�ttfcc-•(47)64:•iit7 F.•(214)+ i,ftSS?A,ia hl=•■i 4ti+traclaoruld,,,Ytti 2.27 NTMWD Contract Revenue Debt—Portion Eligible for Impact Fees 24 2.28 Recap of Use of Impact Fees - Water 24 2.29 Recap of Use of Impact Fees - Wastewater 25 2.30 Recap of Debt Service 25 2.31 Recap of Impact Fees—Water—Sources& Uses of Funds 26 2.32 Recap of Impact Fees—Wastewater—Sources & Uses of Funds 26 2.33 Recap of Non-Operating Costs—Transfer to Renewal & Replacement Fund 27 2.34 Recap of Non-Operating Costs 27 2.35 Recap of the Total Gross Cost of Service 28 2.36 Recap of Non-Rate Operating Revenues 29 2.37 Recap of Non-Rate Non-Operating Revenues 29 2.38 Recap of Revenue Offsets 30 16. McLain Decision Support Systems McLAIN R.hert Mc Lan,F'r►ncggal•,.kLain IXXi.tn Supp.ci SN kilt. 01 W Soothwot I''i:w•, •4l05•Lc u' ilk.TX 75067 072)436.M1S1(Vice•l`)i)692.5iW77 Fax•(210 89,;65?M.►t •l+, rr►clmtul i,com SECTION I—EXECUTIVE SUMMARY 1.1 INTRODUCTION: The following report describes the findings of the water and wastewat er rate study performed for the City of Wylie and makes recommendations with respect p to the rates to be charged to the City's municipal utility customers. The objectives J to be achieved within the scope of the engagement are as follows: • To develop the bases to be used to project the units of service and cost of se rvice for each utility over a ten-year planning period, FY 2007 - 2016; • To identify the full cost of water and wastewater services over the ten-year y planning period based on the FY 2007 proposed budget: • To develop proposed alternative water and wa stewater rates which will provide sufficient annual revenues to meet expenditures for all operating and non-operating costs; p g operating • To prepare financial, projections using the cost-based rates, supplemented pp d by a description of the key assumptions underlying the ections;J ro' p a • To create an executive summary documenting our findings and recommendations; ons; 1.2 FINANCIAL PLAN KEY MANAGEMENT ASSUMPTIONS: The following major key planning assumptions were used to drive the ten-year costof service: • Growth 1: 907 additional water meters annually, which w ch results in a customer growth rate of about 4% - 9% annually. Furthermore, 1,041 to 1,042 additional tonal annual wastewater accounts will be added over the planning period. (See Tables 2.1 and 2.2 in Section 2); • NTMWD Water Costs. Table 2.4 in Section 2 illustrates the growth in NTMWD water costs, assuming the rate per thousand gallons will increase incremental) per 00�. the NTMWD presentation dated March 20 2 y, 1 Based on growth assumptions in Impact Fee Study update,Table No. 8,Table No.9, 21,confirmed by Chris Hoisted. SECTION 1—EXECUTIVE SUMMARY PAGE 1 McLain Decision Support IL,low PPS Systems M L.AIN Robert McLain,1'rtnct:.i•McLain Ik'i,s:nt`support Sy,rertt• ;i?l W.Southwr.t I'l:u .,.4105•Ltwtwilk,TX f 53L 7 (972)4(6-61t(1(*t .•0972)692-5;07 Flit•014)=$9(-(M2 Mob k•bokt last is.cMttt • NTMWD Wastewater Costs. Tables 2.5 through 2.8 in Section 2 illustrate to the reader the increases in wastewater treatment costs over the next ten years. It should be noted that the additional debt service associated with the Muddy Creek Wastewater Treatment Plant expansion is incorporated into these cost estimates. • Additional staffing. Table 2.9 in Section 2 illustrates the addition of three (3) additional positions in FY 2009. • Inflation: Salaries were increased annually using expenditure drivers of 6%,based on the FY 2007 budget. Medical insurance was increased at the rate of 7% annually. y Most other operating and maintenance costs were driven by an annual inflation factor of 3°r°. • Water Capital Improvement Program: A $17.653 million water capital improvement plan has been incorporated into the financial plan. The capital improvement plan calls for two (2) bond issues totaling $13,480,700 over the next three years, beginning with a $6,500,000 issue in FY 2007. Table 2.23 and Table 2.24 in Section 2 show the water capital improvement program. • Wastewater Capital Improvement Program: The wastewater capital improvement l an p plans calls for $12,250,000 debt issue, related to the expansion of the Muddy Creek Wastewater Treatment Plant. This debt issue will be NTMWD contract revenue debt, and will be shared with the City of Murphy. Wylie will pay approximately 73% of the debt service, and Murphy will pay 27%. This debt issue will be paid the NTMWD as part of the wastewater treatment bill for Muddy Creek. • Use of Impact Fees: The most critical assumption incorporated into the financial plan is the use of impact fees to partially fund debt service payments. Tables 2.15 — 2.29 in Section 2 of this report illustrate the importance of this funding source. • Transfer to the Renewal and Replacement Fund. We have incorporated into the revenue requirements the cost of funding the renewal, rehabilitation, and replacement of the infrastructure of the water and wastewater system, beginning with FY 2007-08. Table 2.33 shows the basis for these transfers. • Transfer to the General Fund - This transfer increases 4%per year. (This transfer is shown on Table 2.34 in Section 2). SECTION I—EXECUTIVE SUMMARY PAGE 2 McLain Decision Support 411L JP' Systems McLA N RE 4,c rt McLain,Print ira •McLain I\.i;m-Surr.tt Sy,teno 201 W S.►tnhw&:F[PLw%'.,.4105•L,twilit.,T TX 7 I ?.h ■ (91.)4.6-61S1�nri4r*(472)69—539 Fax•(214)$94.%652 Mobil,:•bolvdn:1;un{ .c.ni • Reserve Levels — We have targeted reserve levels of 25% (90 days of the cost of service), per the financial policy of the City. 1.3 FINANCIAL PLAN FINDINGS: • The water and wastewater fund is in excellent financial condition. The water and wastewater fund ended FY 2005 with $5,769,268 in operating reserves (304 days), (Table 1.2). However, it is expected that the water and wastewater fund will end FY 2006 with $4,609,111 in operating reserves(188 days). 1.4 FINANCIAL PLAN NOTICE: • Water and wastewater costs have been projected for the period FY 2007 through FY 2016, based on the proposed FY 2007 budget. We believe the underlying assumptions that drive the cost of service through the FY 2016 provide a reasonable basis for management's forecast. However, some assumptions inevitably will not materialize as presented and anticipated events and circumstances may not occur; therefore, the actual results achieved during the forecast periods will vary from the forecast, and the variances may be material. Monitor expenditures very carefully over the planning g period, compared to the expenditure levels shown in this report. Because the forecasts are developed upon expenditure levels outlined in this report, any y significant increases of expenditures over the planned expenditure levels will affect the sufficiency of revenues over the study period. • Note — because the financial plan is so heavily dependent on growth, we strongly gy recommend that the rate study should be updated annually. 1.5 FINANCING SCENARIOS: • Three financing scenarios have been developed for the City's consideration. They y Scenario 1: Do not raise rates until absolutely necessary; Scenario 2: Increase rates annually over several years; Scenario 3: Increase rates every other year. SECTION I—EXECUTIVE SUMMARY PAGE 3 k. McLain �A Decision Support IL.0.- PPS Systems McLAIN Robert,Sid Ain,un,Principal•? kL,,in 1) .n Supt',,►t'r,tstn: 201 W. aRo l m, Fkw}.,.4105•Ler%milk,TX 75 ('7!)4 ,-t 181 Ottic.•i'72 6 2-5 W7 F,. •('14)t+,M%652 10,4,31k•l ktrtx:and ,„,,iii Table 1.1 Key Findings Recap of the Impact of Each Financing Scenario Scenario I Scenario 2 Scenario 3 Average Residential Average Residential Average Residential Water&Sewer Bill Water&Sewer Bill Water&Sewer Bill 5,000 gals WS 5,000 gals WS 5,000 gals WS Change Winter, Bill Change Winter, - Bill Change Winter, Bill Fiscal In 13,000 gals $$ In 13,000 gals $$ In 13,000 gals $$ Year _ Rates Summer Change _ Rates Summer Change Rates Summer Change 2005 N/A $ 55.07 $ - N/A $ 55.07 $ - N/A $ 55.07 $ 2006 55.07 - - 55.07 - - 55.07 2007 - 55.07 - 3.25% 56.86 1.79 5.50% 58.10 3.03 2008 - 55.07 - 3.25% 58.71 1.85 - 58.10 2009 12.50% 61.95 6.88 3.25% 60.62 1.91 5.50% 61.29 3.20 2010 6.00% 65.67 3.72 3.25% 62.59 1.97 - 61.29 2011 - 65.67 - 3.25% 64.62 2.03 5.50% 64.67 3.37 2012 - 65.67 - - 64.62 - - - 64.67 2013 - 65.67 - - 64.62 - - 64.67 2014 - 65.67 - - 64.62 - - 64.67 2015 - 65.67 - - 64.62 - - 64.67 - 2016 - 65.67 - - 64.62 - - 64.67 18.50% $ 10.60 16.25% $ 9.55 16.50% _ $ 9.60 • Financing Scenario 1: The City does not need to increase overall rates until 10/01/2008, if all key planning assumptions do not drastically change. However, if g the City chooses to wait until 10/01/08, then the rate increases will need to be 12.5%, as shown on Table 1.2. Table 1.2 Key Adequacy Tests Financing Scenario Don't Raise Rates Until You Have To Average Residential Water&Sewer Bill Percentage Changes 5,000 gals WS Changes in Ending Days of Operating Winter, Bill Fiscal In Operating Operating Operating Reserve 13,000 gals $$ Year_ Rates Reserves Reserves Reserves Percent Summer Change 2005 N/A $1,410,395 $5,769,268 304 83.3% $ 55.07 2006 - (1,160,157) 4,609,111 188 51.5% 55.07 - 2007 - (265,916) 4,343,195 178 48.9% 55.07 2008 - (1,181,319) 3,161,876 112 30.6% 55.07 - 2009 12.50% (327,901) 2,833,975 92 25.1% 61.95 6.88 2010 6.00% 195,435 3,029,411 91 25.0% 65.67 3.72 2011 - 468,055 3,497,465 103 28.1% 65.67 2012 - 501,512 3,998,978 112 30.7% 65.67 - 2013 - 535,125 4,534,102 122 33.3% 65.67 2014 - 469,866 5,003,969 128 35.1% 65.67 - 2015 - 417,957 5,421,925 133 36.4% 65.67 2016 - 819,037 6,240,962 151 41.4% 65.67 - _ 18.50% $10.60 SECTION I-EXECUTIVE SUMMARY PAGE 4 I. McLain ..,,,'A 'Derision Support PPo Systems Mc:LAIN R4,brn McL;in.1'riric tr al•hkL..in I k,',ion Support u SN qCm, 201 W Santtliwcq Pkw,.,£4h •Lcw/wlllc.TX 750( (971)4t,.i,l81 t i%,•(97.D 692.53')7 Fix•(?1-P 894-1652 Mobile•1,140mx h,rk ,.a:,,n1 • Financing Scenario 2: If the City decides to raise ratesgraduallyover theplanning period, every year, then the revenue increases will need to be as shown on Table 1.3. Table 1.3 Key Adequacy Tests Financing Scenario 2 Raise Rates Incrementally Every Year Average Residential Water&Sewer Bill Percentage Changes 5,000 gals WS Changes in Ending Days of Operating Winter, Bill _ Fiscal In Operating Operating Operating Reserve 13,000 gals $$ Year Rates Reserves Reserves Reserves Percent Summer Change 2005 N/A 1,410,395 5,769,268 304 83.3% $ 55.07 2006 - (1,160,157) 4,609,111 188 51.5% 55.07 2007 3.25% 3,779 4,612,890 190 51.9% 56.86 1.79 2008 3.25% (583,689) 4,029,201 142 39.0% 58.71 1.85 2009 3.25% (559,191) 3,470,010 112 30.8% 60.62 1.91 2010 3.25% (383,989) 3,086,021 93 25.5% 62.59 1.97 2011 3.25% 252,619 3,338,640 98 26.8% 64.62 2.03 2012 - 270,821 3,609,462 101 27.7% 64.62 2013 - 289,077 3,898,539 105 28.7% 64.62 2014 - 208,259 4,106,797 105 28.8% 64.62 - - 2015 - 140,594 4,247,392 104 28.5% 64.62 2016 - 525,824 4,773,216 116 31.7% 64.62 - - 16.25% - $ 9.55 • Financing Scenario 3: If the City decides to raise rates gradually over the planning g period, every other year, then the revenue increases will need to be as shown on Table 1.4. Table 1.4 Key Adequacy Tests Financing Scenario 3 Raise Rates Incrementally Every Other Year Average Residential Water&Sewer Bill Percentage Changes 5,000 gals WS Changes in Ending Days of Operating Winter, Bill Fiscal In Operating Operating Operating Reserve 13,000 gals $$ Year Rates Reserves Reserves Reserves Percent Summer Change 2005 N/A 1,410,395 5,769,268 304 83.3% $ 55.07 2006 - (1,160,157) 4,609,111 188 51.5% 55.07 2007 5.50% 190,490 4,799,602 197 54.0% 58.10 3.03 2008 - (684,297) 4,115,305 145 39.8% 58.10 2009 5.50% (441,282) 3,674,023 119 32.6% 61.29 3.20 2010 (627,842) 3,046,181 92 25.2% 61.29 2011 5.50% 258,156 3,304,337 97 26.6% 64.67 3.37 2012 - 276,895 3,581,232 100 27.5% 64.67 2013 - 295,689 3,876,921 104 28.5% 64.67 2014 - 215,407 4,092,328 105 28.7% 64.67 2015 - 148,280 4,240,608 104 28.5% 64.67 2016 - 534,047 4,774,655 116 31.7% 64.67 16.50% $ 9.60 SECTION I-EXECUTIVE SUMMARY PAGE 5 McLain Decision Add Support PPS Systems Mc L_A N Robeffi Mi Lurt,Pfinc lr:1i•?ki,L.n( in Support S gent• 201 W.Southwi',t P1 w%„e.4 j 05•Lewtwtil.TX 75067 f i'1416-nit l C?ltii.••107?)6'?-5 W7 Fax•SM(4)893•(t 52 Mob&•boNtrucLunli,com 1.6 RATE DESIGN OBJECTIVES: Several rate design alternatives were developed for the City's consideration. However, based on prior discussions with City staff and Council, we have n brought two rate design g alternatives to the City Council for consideration. Following is a recap ofthe objectives � we wished to achieve with these alternatives: • All alternatives recover the revenues necessary to fund the cost of service for FY 2007. We have brought to the City rate design alternatives which should last for at least the next two years, assuming the overall cost of service does not differ materially than planned. Note — the existing water rate design could last until 10/01/2008,per Table 1.2 g . • However, we have assumed any changes in rates would be implemented on October 1,2006. 1.7 OVERVIEW OF RATE DESIGN ALTERNATIVES: We are bringing rate design alternatives that have the following characteristics: Table 1.5 -Rate Alternatives Existing Alt Alt Alt . 1 . 2 3 Includes 1,000 gallons in the monthly minimum bill .I 1 1 1 Across-the-board increase to existing rate design ,I Includes existing monthly minimum bills with no change .I 1 1 Incorporates a stronger conservation rate design for residential and 1 irrigation meters Incorporates a seasonal conservation rate design for residential and 1 1 irrigation meters SECTION I—EXECUTIVE SUMMARY PAGE 6 ,, McLain Sian 41111 Support PPo Systems f McLAIN Rr►14ert McLain,Principal•McLain 1'cctsi n Stil+port S,t*rn.+ 201 W S tiihwe i PI ws.,'4105•Li °hvillrk.TX 750(17 (972)436.6181 k){icc•072.)692-5397 Fax•(214)t493-3652 M;4 Ik•holiidinclainJJ.tern Table 1.6 Existing&Alternative Rate Structures-Water FY 2007 Financing Scenario 2 Financing Scenario 3 Existing 1 2 3 1 2 3 Note(1) Note(1) Revenues Generated $4,752,920 $4,907,390 $4,907,390 $4,907,390 $5,014,331 $5,014,331 $5,014,331 3.25% 3.25% 3.25% 5.50% 5.50% 5.50% Monthly Minimum Bills: Residential $ 8.90 $ 9.19 $ 8.90 $ 8.90 $ 9.39 $ 8.90 $ 8.90 Commercial 8.90 9.19 8.90 8.90 9.39 8.90 8.90 Multi-Family 8.90 9.19 8.90 8.90 9.39 8.90 8.90 Volumetric Rates per Th.Gallons Residential: 1,001 to 2,000 Gallons $ 2.17 $ 2.24 $ 2.58 $ 2.62 $ 2.29 $ 2.66 .$ 2.70 2,001 to 10,000 Gallons 2.90 2.99 2.58 2.62 3.06 2.66 2.70 Over 10,000 Gallons 2.90 2.99 3.37 3.42 3.06 3.47 3.52 Irrigation Meters: 1,001 to 2,000 Gallons $ 2.17 $ 2.24 $ 3.73 $ 3.79 $ 2.29 $ 3.84 $ 3.90 Over 2,000 Gallons 2.90 2.99 3.73 3.79 3.06 3.84 3.90 Commercial&Multi-Family: 1,001 to 2,000 Gallons $ 2.17 $ 2.24 $ 2.95 $ 2.99 $ 2.29 $ 3.03 $ 3.08 Over 2,000 Gallons 2.90 2.99 2.95 2.99 3.06 3.03 3.08 (1)-Peak months are June-October. With Alternative 3,the higher rate above 10,000 gallons will only be charged during the peak months. Table 1.7 Existing&Alternative Rate Structures-Wastewater Financing Scenario 1 Financing Scenario 2 Existing 1 2&3 1 2&3 Revenues Generated $ 3,545,379 $ 3,660,604 $ 3,660,604 $ 3,740,375 $ 3,740,375 Percentage Increase 3.25% 3.25% 5.50% 5.50% Monthly Minimum Bills: Residential $ 15.00 $ 15.49 $ 15.00 $ 15.83 $ 15.00 Commercial 21.50 22.20 21.50 22.68 21.50 Multi-Family 23.00 23.75 23.00 24.27 23.00 Volumetric Rates per Th.Gallons 1,001 to 2,000 Gallons $ 1.45 $ 1.50 $ 1.57 $ 1.53 $ 1.65 Over 2,000 Gallons(Note 1) 1.45 1.50 1.57 1.53 1.65 Note-Residential volume for wastewater is capped at 14,500 gallons. SECTION I-EXECUTIVE SUMMARY PAGE 7 McLain DeCIsiOn Support CPFa Systems J�' McLAIN Robert Ms L iin.Principal■McLain f�cw i.'n sly ►u S.i:ni 1 W.S..►thw.bt 1'1cw..•4l C •Lewisville,TX 75067 (9723 41t•61$1 Office•(972)692 S39 Fax•(214)S91-1652 Moils&•1 ►}.Cnicla:rxkia,c►*rn 1.8 CUSTOMER IMPACT: Table 1.8 illustrates the impact of the rate design alternatives on customers at the average consumption levels: Table 1.8 Illustration of Monthly Impact Water&Sewer Monthly Bills Residential Commercial Average Monthly Consumption-June-October 13,000 66,000 Average Monthly Consumption-Nov-May 5,000 39000, Average Monthly Water&Sewer Bill: Existing $ 55.07 $ 247.16 Average Monthly Water&Sewer Bill:Alternative 1 -(3.25%): $ 56.86 $ 255.19 Difference-$ $ 1.79 $ 8.03 Difference-% 3.25% 3.25% Average Monthly Water&Sewer Bill:Alternative 1 -(5.50%): $ 58.10 $ 260.75 Difference-$ $ 3.03 $ 13.59 Difference-% 5.50% 5.50% Average Monthly Water&Sewer Bill:Alternative 2-(3.25%): $ 55.33 $ 255.93 Difference-$ $ 0.26 $ 8.77 Difference-% 0.47% 3.55% Average Monthly Water&Sewer Bill:Alternative 2-(5.50%): $ 56.49 $ 264.10 Difference-$ $ 1.42 $ 16.95 Difference-% 2.59% 6.86% Average Monthly Water&Sewer Bill:Alternative 3-(3.25%): $ 56.22 $ 262.07 Difference-$ $ 1.15 $ 14.91 Difference-% 2.08% 6.03% Average Monthly Water&Sewer Bill:Alternative 3-(5.50%): $ 56.80 $ 266.33 Difference-$ $ 1.73 $ 19.17 Difference-% 3.14% 7.76% SECTION I-EXECUTIVE SUMMARY PAGE 8 McLain Decision Support PPa Systems CP` McLAIN Robert McLain,Principal•McLain won Nippon n S}',tentk 201 11V.: .ithu•c t Pkw3_,.4105•L:% TX 75067 (972)4'i1+•6lrfl Office•07 692'5197 Fax•(214)M9 3652 Mobile•1 incl.aa:sJ.is, +tra SECTION II--IDENTIFICATION OF THE REVENUE REQUIREMENTS 2.1.INTRODUCTION: A combined ten-year financial plan has been created for the water and wastewater fund using a "bottom-up" approach. Highlights of the City's water and wastewater cost of service over the planning period is presented in this section. Salaries have been supported by staffing tables. Operating and maintenance costs have been calculated in considerable detail. 2.2 KEY COST OF SERVICE ASSUMPTIONS: Water and wastewater costs were projected for the period FY 2007 through FY 2016, based on the proposed FY 2006 budget. We believe the underlying assumptions that drive the cost of service through the FY 2016. provide a reasonable basis for management's forecast. However, some assumptions inevitably will not materialize as presented and anticipated events and circumstances may not occur; therefore, the actual results achieved during the forecast periods will vary from the forecast, and the variances may be material. These financial projections were based on the following essential assumptions: • Growth; • Inflation; • Additional staffing; • Funding of capital program • 2.2.1. Growth assumptions. There is no assumption more critical than the growth assumptions that drive the financial plan. A substantial negative change in this growth forecast will have an adverse financial result, possibly requiring additional rate increases beyond what is shown in this report. Table 2.1 shows 9,073 water meters will be added over the planning period, which will increase water revenues substantially. Furthermore, Table 2.2 shows 10,431 wastewater accounts will be added over the planning period. SECTION II---IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 9 McLain -��",A Decision Support PPa Systems J.' MCt__AIN R34 rt McL iirr,1'rinc iri1•Mc Lamm 1 k tali.Supl t SN,tcnr+ 201 W.tisntihwe.Pkw.,w4105•Lcwiw ille,TX 750o 1721436-6181 Chit.:•0721 692-5307 F.•i 141 93-4)52 N1.►1,41k•1okttnclairkla,...m Table 2.1 Key Findings Growth- Water Average Average Annual Number Gals/ Volume Fiscal Additional of % Meter/ % Billed % Year Meters Meters Growth Month Growth (Th.Gals.) Growth 2005 N/A 10,246 N/A 11,043 N/A 1,357,777 N/A 2006 488 10,734 4.8% 10,418 -6% 1,341,982 -1.2% 2007 907 11,641 8.4% 10,302 -1% 1,439,042 7.2% 2008 907 12,548 7.8% 10,201 -1% 1,536,100 6.7% 2009 907 13,455 7.2% 10,115 -1% 1,633,160 6.3% 2010 907 14,362 6.7% 10,039 -1% 1,730,220 5.9% 2011 907 15,269 6.3% 9,973 -1% 1,827,279 5.6% _ 2012 907 16,176 5.9% 9,914 -1% 1,924,339 5.3% 2013 907 17,083 5.6% 9,861 -1% 2,021,398 5.0% 2014 907 17,990 5.3% 9,813 0% 2,118,457 4.8% 2015 907 18,897 5.0% 9,770 0% 2,215,517 4.6% 2016 907 19,804 4.8% 9,731 0% 2,312,677 4.4% Table 2.2 Key Findings Growth- Water Billed for Wastewater Average Average Annual Number Gals/ Volume Fiscal Additional of % Meter/ % Billed % Year Meters Meters Growth Month Growth (Th.Gals.) Growth 2005 N/A 9,653 N/A 9,955 N/A 1,153,144 N/A 2006 559 .10,212 5.8% 9,396 -5.6% 1,151,364 -0.2% 2007 1,041 11,253 10.2% 9,298 -1% 1,255,498 9.0% 2008 1,044 12,297 9.3% 9,216 -1% 1,359,906 8.3% 2009 1,044 13,341 8.5% 9,147 -1% 1,464,306 7.7% 2010 1,043 14,384 7.8% 9,088 -1% 1,568,614 7.1% 2011 1,043 15,427 7.3% 9,037 -1% 1,672,923 6.6% 2012 1,043 16,470 6.8% 8,992 0% 1,777,231 6.2% 2013 1,043 17,513 6.3% 8,953 0% 1,881,548 5.9% 2014 1,044 18,557 6.0% 8,918 0% 1,985,948 5.5% 2015 1,043 19,600 5.6% 8,887 0% 2,090,248 5.3% 2016 1,042 20,642 5.3% 8,859 0% 2,194,456 5.0% SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 10 ■ McLain ADecision Support Systems 411L.fir- Mcl__AIN Robert McLain.Principal•McLain Dec bi=n S11 +t,!,,`+tt::ti., 201 W S t..Pkw,.,-4 L5•Lemmille. 75-067 197 2)4 36-i 1 S 1 t ttii e•07)692.5347 Fax•(114)*91:5 i5?Mobile■bob4 c l.aiti.l i.com • 2.2.2. NTMWD water purchase costs. We have assume d the rate per thousand gallons charged by the North Texas Municipal Water District will increase as follows, beginning in FY 2007. Table 2.4 illustrates the impact on water costs. Table 2.3 Key Findings Water Loss Percentages Inflowllnfiltration Percentages Water Annual Billed Water Percent Annual For Actual& Wastewater Billed of Water Wastewater Projected Flow Fiscal (Th.Gals.) Water Purchased (Th.Gals.) Inflow/ Treated Year Table 2.1 Loss (Th.Gals.) Table 2.2 Infiltration (Th.Gals.) 2006 1,341,982 9.1% 1,476,180 1,151,364 9.1% 1,266,500 2007 1,439,042 9.1% 1,582,946 1,255,498 9.1% 1,381,048 2008 1,536,100 9.1% 1,689,710 1,359,906 9.1% 1,495,897 2009 1,633,160 9.1% 1,796,476 1,464,306 9.1% 1,610,737 2010 1,730,220 9.1% 1,903,242 1,568,614 9.1% 1,725,475 2011 1,827,279 9.1% 2,010,007 1,672,923 9.1% 1,840,215 2012 1,924,339 9.1% 2,116,773 1,777,231 9.1% 1,954,954 2013 2,021,398 9.1% 2,223,538 1,881,548 9.1% 2,069,703 2014 2,118,457 9.1% 2,330,303 1,985,948 9.1% 2,184,543 2015 2,215,517 9.1% 2,437,069 2,090,248 9.1% 2,299,273 2016 2,312,577 9.1% 2,543,835 2,194,456 9.1% 2,413,902 Table 2.4 Key Findings Water Purchases from NTMWD Planned Annual Consumption Actual Planned Rates Take-or- Planned Amount Take-or- Actual NTMWD Fiscal Pay Usage(000's) Over/(Under) Pay Planned Annual % Year Minimum_ Table 2.3 Minimum Minimum Usage Charges Change 2005 1,266,615 1,387,214 120,599 $ 0.97 $ 0.23 $1,252,736 24.8% 2006 1,387,214 1,476,180 88,966 0.97 0.23 1,380,000 10.2% 2007 1,476,180 1,582,946 106,766 1.02 0.24 1,531,328 11.0°A, 2008 1,582,946 1,689,710 106,764 1.08 0.25 1,736,273 13.4% 2009 1,689,710 1,796,476 106,766 1.14 0.26 1,954,029 12.5% 2010 1,796,476 1,903,242 106,766 1.21 0.27 2,202,563 12.7% 2011 1,903,242 2,010,007 106,765 1.29 0.28 2,485,076 12.8% 2012 2,010,007 2,116,773 106,766 1.37 0.29 2,784,672 12.1% 2013 2,116,773 2,223,538 106,765 1.45 0.30 3,101,350 11.4% 2014 2,223,538 2,330,303 106,765 1.53 0.31 3,435,110 10.8% 2015 2,330,303 2,437,069 106,766 1.61 0.32 3,785,952 10.2% 2016 2,437,069 2,543,835 106,766 1.61 0.33 3,958,913 4.6% SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 1 1 ,, McLain ADerision Support 4161011°- Systems 1M1cLAIN R,.rr Mc L.0 n.I'rssw s .si•Mc Lien I k�isu m Support Sv gcnx• '?I NV.Snithwi t Pkw.,•41i15•14,4wtlie,TX 75067 (972)43+-ti+i Ott,, •072 692.5397 7 F:sx•(214) 95-5652 Mobsi,•1rt nuci:tsu,.i_t4xsrs • 2.2.3. NTMWD wastewater treatment costs. Tables 2.5 through 2.8 illustra te ate the assumptions used to forecast the wastewater treatment costs. O&M costs have been forecast, using an inflation factor of 3%per year. However, the major cost of each of the wastewater treatment plants is debt service, and NTMWD has provided us with amortization schedules for each of the outstanding issues. Table 2.5 Key Findings NTMWD Wastewater Treatment Costs Wylie Wastewater Treatment Plant Costs Fiscal O&M Debt Total Projected Flow(000's) Projected Costs Year Costs Service Costs Wylie Murphy _ Wylie Murphy 2005 $ 657,323 $ 196,325 $ 853,648 1,055,703 183,983 $ 726,957 $ 126,691 2006 330,721 198,847 529,568 1,055,703 183,983 450,974 78,594 2007 388,956 - 388,956 904,971 334,715 283,938 105,018 2008 358,048 - 358,048 904,971 334,715 261,375 96,673 2009 371,113 - 371,113 904,971 334,715 270,913 100,201 2010 384,727 - 384,727 904,971 334,715 280,851 103,876 2011 398,917 - 398,917 904,971 334,715 291,209 107,708 2012 413,709 - 413,709 904,971 334,715 302,008 111,701 2013 429,133 - 429,133 904,971 334,715 313,267 115,866 2014 445,218 - 445,218 904,971 334,715 325,009 120,209 2015 461,996 - 461,996 904,971 334,715 337,257 124,739 2016 479,502 - 479,502 904,971 334,715 350,036 129,465 Table 2.6 Key Findings NTMWD Wastewater Treatment Costs Muddy Creek Interceptor Costs Projected Flow(000's) Fiscal O&M Debt Total (Take-Or-Pay) Projected Costs Year Costs Service Costs Wylie Murphy Wylie _ Murphy 2005 $ 21,172 $ 267,485 $ 288,657 2,153,500 1,387,000 $ 175,575 $ 113,082 2006 46,129 266,231 312,360 '2,153,500 1,387,000 189,992 122,368 2007 (22,727) 265,869 243,142 2,584,565 955,935 177,493 65,648 2008 (21,156) 265,263 244,107 2,584,565 955,935 178,198 65,909 2009 (19,537) 269,413 249,876 2,584,565 955,935 182,409 67,466 2010 (17,870) 268,075 250,205 2,584,565 955,935 182,650 67,555 2011 (16,152) 266,494 250,341 2,584,565 955,935 182,749 67,592 2012 (14,384) 269,669 255,285 2,584,565 955,935 186,358 68,927 2013 (12,562) 267,356 254,795 2,584,565 955,935 186,000 68,795 2014 (10,685) 269,800 259,115 2,584,565 955,935 189,154 69,961 2015 (8,752) 266,756 258,004 2,584,565 955,935 188,343 69,661 2016 (6,761) 269,956 263,195' 2,584,565 955,935 192,132 71,063 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 12 ■ McLain -,.,"`Al Decision Support OLP' Systems MGL_AIN 8.,hcrt McLain,Principal•McLain[h,ist,,n Suntan S sttiu, 201 W. mttihwc,t I'Ru.,•4105•Le.',yolk,TX 75067 (972)4364481 Oiticc•t 72) 2•S397 fax•(214)$9 3‘JS2 Mt►Stle•IN,14troclirnJi1.ii rn Table 2.7 Key Findings NTMWD Wastewater Treatment Costs Muddy Creek Wastewater Treatment Costs Projected Flow M000`s) Fiscal O&M Debt Total (Take-Or-Pay) Projected Costs Year Costs Service Costs Wylie Murphy _ Wylie Murphy 2005 $ 561,826 $1,269,995 $1,831,821 146,000 73,000 $1,221,214 $ 610,607 2006 1,039,580 1,266,995 2,306,575 210,797 73,000 1,713,265 593,310 2007 1,484,347 2,227,259 3,711,605 207,172 76,625 2,709,472 1,002,133 2008 1,896,834 2,225,745 4,122,579 1,065,703 76,625 3,843,602 278,977 2009 1,951,857 2,219,745 4,171,602 1,055,703 76,625 3,889,307 282,295 2010 2,008,993 2,216,495 4,225,488 1,055,703 76,625 3,939,547 285,941 2011 2,068,334 2,215,746 4,284,079 1,055,703 76,625 3,994,173 289,906 2012 2,129,977 2,214,070 4,344,047 1,055,703 76,625 4,050,082 293,964 2013 2,194,020 2,225,740 4,419,760 1,055,703 76,625 4,120,672 299,088 2014 2,260,570 2,228,415 4,488,985 1,055,703 76,625 4,185,213 303,772 2015 2,329,736 2,242,205 4,571,941 1,055,703 76,625 4,262,555 309,386 2016 2,401,635 2,247,145 4,648,780 1,055,703 76,625 4,334,194 314,586 Table 2.8 Key Findings Recap of NTMWD Wastewater Treatment Costs Muddy Muddy Wylie Creek Creek WWTP Interceptor WWTP Fiscal Costs Costs Costs Total Year Table 2.5 Table 2.6 Table 2.7 Costs 2005 $ 726,957 $ 175,575 $ 1,221,214 $ 1,774,798 2006 450,974 189,992 1,713,265 2,354,231 2007 283,938 177,493 2,709,472 3,170,903 2008 261,375 178,198 3,843,602 4,283,176 2009 270,913 • 182,409 3,889,307 4,342,629 2010 280,851 182,650 3,939,547 4,403,047 • 2011 291,209 182,749 3,994,173 4,468,132 2012 302,008 186,358 4,050,082 4,538,448 2013 313,267 186,000 4,120,672 4,619,939 2014 325,009 189,154 4,185,213 4,699,376 2015 337,257 188,343 4,262,555 4,788,156 2016 350,036 192,132 4,334,194 4,876,363 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 13 McLain �``All Decision Support tiii.-PY PPa Systems McLAIN Rs►lcri McLain,Crone iral•McLain I X own Stipp►tt.Sy s;r in.. 01 W.S.tnhwc t PtwN.,•410i•Leutwilk.TX 75067 ['7 4364,I$1 016,•(4 2)6)2 53)7 Eix•(214)M94-i652 kiAm •IN4401nai. 16..►►n • 2.2.4. Additional staffing. Table 2.9 illustrates the additional of three (3)positions in FY 20092. Table 2.9 Key Findings City of Wylie Utility Staffing Levels Utility Utility Fiscal Admin. Utilities Eng. Billing Total Year (711) (712) (713) (715) Staffing 2005 2.50 14.00 3.00 5.50 25.00 2006 2.50 17.00 3.00 5.50 28.00 2007 2.50 17.00 3.00 5.50 28.00 2008 2.50 17.00 3.00 5.50 28.00 2009 2.50 20.00 3.00 5.50 31.00 2010 2.50 20.00 3.00 5.50 31.00 2011 2.50 20.00 3.00 5.50 31.00 2012 2.50 20.00 3.00 5.50 31.00 2013 2.50 20.00 3.00 5.50 31.00 2014 2.50 20.00 3.00 5.50 31.00 2015 2.50 20.00 3.00 5.50 31.00 2016 2.50 20.00 3.00 5.50 31.00 Table 2.10 Key Findings Personnel-Related Costs Utility Water Sewer Utility Fiscal Inflation Admin. Utilities Eng. Utilities Billing Year Driver (711) (712) (713) (714) (715) Total 2005 6.00% $ 313,860 $ 575,380 $ 303,670 $ 248,040 $ 404,470 $1,845,420 2006 6.00% 271,290 592,280 318,720 241,010 423,500 1,846,800 2007 6.00% 317,250 627,817 266,187 255,471 379,774 1,846,498 2008 6.00% 336,284 665,486 282,158 270,799 402,561 1,957,288 2009 6.00% 356,462 829,900 299,088 337,702 426,716 2,249,868 2010 6.00% 377,851 879,694 317,034 357,964 452,318 2,384,861 2011 6.00% 400,523 932,476 336,057 379,442 479,459 2,527,955 2012 6.00% 424,555 988,424 356,219 402,209 508,227 2,679,634 2013 6.00% 450,028 1,047,730 377,592 426,341 538,720 2,840,411 2014 6.00% 477,031 1,110,593 400,248 451,922 571,043 3,010,837 2015 6.00% 505,651 1,177,229 424,265 479,037 605,306 3,191,488 2016 6.00% 535,991 1,247,863 449,721 507,779 641,625 3,382,978 2 Per City staff. SECTION II--IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 14 b. McLain Derision Support Systems Mc:L_AIN Robert MCLAin,Principal•MCL.in Dec►si in Stipixot Si tcmmm+ 01 'Srluthwe,t PtcVHv.,•41i'?5•Lrwi vklle.TX 75067 072).0641181 Clt+cr•072 692.5197 Fax•(214)r 71-31,52 Mobile•boRtiniclattilko,411 • 2.2.5. Inflation drivers. Salaries were increased annually using expenditure drivers of 6%, based on the FY 2006 budget. Most other operating and maintenance costs were driven by an annual inflation factor of 3%. Medical insurance was increased 7% per year. Tables 2.11 and 2.12 illustrate the impact of these inflation drivers on the operating and maintenance costs over the planning period. Table 2.11 Key Findings Total Departmental Operating and Maintenance Costs Including Departmental Capital Excluding NTMWD Costs Utility Water Sewer Utility Combined Fiscal Admin. Utilities Eng. Utilities Billing Services Year (711) (712) (713) _ (714) (715) (719) Total 2005 $ 365,835 $ 996,506 $ 390,626 $ 425,020 $ 542,457 $ 116,578 $2,837,022 2006 340,580 1,049,880 419,670 492,010 2,441,460 110,960 4,854,560 2007 421,800 1,078,180 433,130 600,360 974,620 115,960 3,624,050 2008 374,706 1,127,928 386,136 625,238 777,241 123,335 3,414,583 2009 395,858 1,301,859 406,588 701,406 812,863 131,039 3,749,615 2010 418,243 1,364,239 428,194 731,764 850,303 139,086 3,931,829 2011 441,936 1,429,953 451,019 763,636 889,663 147,491 4,123,698 2012 467,012 1,499,182 475,134 797,105 931,045 156,267 4,325,745 2013 493,556 1,572,128 500,615 832,260 974,561 165,429 4,538,549 2014 521,654 1,649,004 527,544 869,192 1,020,328 174,994 4,762,716 2015 551,394 1,730,022 556,007 907,993 1,068,474 184,977 4,998,866 2016 582,881 1,815,431 586,085 948,771 1,119,123 195,394 5,247,686 Table 2.12 Key Findings Recap of Operating&Maintenance Costs Departmental Water Wastewater O&M Purchases Treatment Fiscal From From From Year Table 2.11 Table 2.4 Table 2.8 Total 2005 $ 2,837,022 $1,252,736 $1,774,798 $5,864,556 2006 4,854,560 1,380,000 2,354,231 8,588,791 2007 3,624,050 1,518,000 3,170,903 8,312,953 2008 3,414,583 1,736,273 4,283,176 9,434,032 2009 3,749,615 1,954,029 4,342,629 10,046,272 2010 3,931,829 2,202,563 4,403,047 10,537,440 2011 4,123,698 2,485,076 4,468,132 11,076,906 2012 4,325,745 2,784,672 4,538,448 11,648,865 2013 4,538,549 3,101,350 4,619,939 12,259,838 2014 4,762,716 3,435,110 4,699,376 12,897,201 2015 4,998,866 3,785,952 4,788,156 13,572,974 2016 5,247,686 3,958,913 4,876,363 14,082,962 SECTION II--IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 15 bk. McLain ..` Decision aild Support PPa Systems MCL_A1N Robert McLain.['ren. I•McLatn Defctmon Sil ,err S.rrtrt• 201 W.S,uthwc►r natl..,4105•',twin,.TX 75067 (972)436-6181 Ott •(972)642.5W FAX•(214)S91-;652 Mi,111c•1,1-4tinclatrkla,c:nt • 2.2.6. Water Capital Improvement Program: A $17.653 million water capital improvement plan has been incorporated into the financial .lan capital The capital improvement plan calls for two (2) bond issues totaling $13,480,000 over the next three,years, beginning with a $6,500,000 issue in FY 2006. Table 2.23 and Table 2.24 shows the impact of these debt issues. • 2.2.7. Wastewater Capital Improvement wastewater Program: Theca pital capital improvement plans calls for a $12,250,000 debt issue, related to the exp ansion of the Muddy Creek Wastewater Treatment Plant. This debt issue will be NTMWD contract revenue debt, and will be shared with the City of Murphy. W l Wylie will a approximately y pay a pp y 73% of the debt service, and Murphy will pay 27%. This debt issue will be paid the NTMWD as part of the wastewater treatment bill for Mudd y Creek. • 2.2.8. Use of Impact Fees: The most critical assumption incorporated p rp ed into the financial plan is the use of impact fees to partiallyfund debt service Tables - payments. 2.15 2.29 illustrate the importance of this funding source. Table 2.13 Key Findings Revenue Debt-Existing Water&Sewer Fiscal Series Series Series Year 1999 2000 2002 Total 2005 $ 112,505 $ 137,149 $ 86,775 $ 336,429 2006 114,093 138,628 84,775 337,495 2007 110,518 139,799 82,775 333,092 2008 111,930 140,665 85,650 338,245 2009 113,473 141,224 83,400 338,097 2010 110,158 141,828 86,025 338,010 2011 111,680 142,549 83,663. 337,892 2012 112,910 143,065 86,574 342,549 2013 113,840 143,324 84,566 341,731 2014 114,468 143,290 87,365 345,123 2015 114,785 142,908 84,995 342,688 2016 114,790 147,078 87,463 349,330 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE I6 ► McLain -'�'` Dedsivn All Support 4116.- System r s Mc:I__AlN K bcn McLain.Prince tI•I.kL.ain Dec-own Support ,,,tc:riry _201 W. ►uthwc81 Pkwt'...4105•L.w'i.!'idkk,TX 1506 21 ►•6181(Vice•t) 2)692.51 i Fax•5 214)SO, ,52 Mi bi1r•bobratnautulds.com Table 2.14 Key Findings Revenue Debt-Existing Water Portion Series Series Series Fiscal 1999 2000 2002 Year 50.00% 20.00% 50.00% Total 2005 $ 56,253 $ 27,430 $ 43,388 127,070 2006 57,046 27,726 42,388 127,159 2007 55,259 27,960 41,388 124,606 2008 55,965 28,133 42,825 126,923 2009 56,736 28,245 41,700 126,681 2010 55,079 28,366 43,013 126,457 2011 55,840 28,510 41,831 126,181 2012 56,455 28,613 43,287 128,355 2013 56,920 28,665 42,283 127,868 2014 57,234 28,658 43,683 129,574 2015 57,393 28,582 42,498 128,472 2016 57,395 29,416 43,731 130,542 Table 2.15 Key Findings Revenue Debt-Existing Water Portion Portion Eligible for Impact Fees %-> 50.0% 45.0% 45.0% yo-> 50.0% 50.0% 50.0% Fiscal Series Series Series Year 1999 2000 2002 Total 2005 $ 14,063 $ 6,172 $ 9,762 $ 29,997 2006 14,262 6,238 9,537 30,037 2007 13,815 6,291 9,312 29,418 2008 13,991 6,330 9,636 29,957 2009 14,184 6,355 9,383 29,922 2010 13,770 6,382 9,678 29,830 2011 13,960 6,415 9,412 29,787 2012 14,114 6,438 9,740 30,291 2013 14,230 6,450 9,514 30,193 2014 14,308 6,448 9,829 30,585 2015 14,348 6,431 ' 9,562 30,341 2016 14,349 6,618 9,840 30,807 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 17 McLain -,,i`A Decision Support PPS Systems P. McL._A1N R,,hrn McLain.I'raiui'.,I•McLain IX,1xuf4)Surpin Syq.ia, . 201 W,S uthwclr tt %•.,%41L*i5•L4w►,wilit.TX 775067 (9 )436M1M1 OtiFcc•i972 (192.5;97 Fax•(214)893.5652 Mo iie•he raaclAin.a,.... Table 2.16 Key Findings Revenue Debt-Existing Wastewater Portion Series Series Series Fiscal 1999 2000 2002 Year 50.00% 80.00% 50.00% Total 2005 $ 56,253 $ 109,720 $ 43,388 $ 209,360 2006 57,046 110,902 42,388 210,336 2007 55,259 111,840 41,388 208,486 2008 55,965 112,532 42,825 211,322 2009 56,736 112,980 41,700 211,416 2010 55,079 113,462 43,013 211,553 2011 55,840 114,040 41,831 211,711 2012 56,455 114,452 43,287 214,194 2013 56,920 114,660 42,283 213,863 2014 57,234 114,632 43,683 215,548 2015 57,393 114,326 42,498 214,216 2016 57,395 117,662 43,731 218,788 Table 2.17 Key Findings Revenue Debt-Existing Wastewater Portion Portion Eligible for Impact Fees %-> 95.0% 95.0% 95.0% %-> 50.0% 50.0% 50.0% Fiscal Series Series Series Year 1999 2000 2002 Total 2005 $ 26,720 $ 52,117 $ 20,609 $ 99,446 2006 27,097 52,678 20,134 -99,909 2007 26,248 53,124 19,659 99,031 2008 26,583 53,453 20,342 100,378 2009 26,950 53,665 19,808 100,422 2010 26,162 53,894 20,431 100,488 2011 26,524 54,169 19,870 100,563 • 2012 26,816 54,365 20,561 101,742 2013 27,037 54,463 20,084 101,585 2014 27,186 54,450 20,749 102,385 2015 27,261 54,305 20,186 101,753 2016 27,263 55,889 20,772 103,924 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 18 I,, McLain All Decision Support C �Fa Systems F IM c L A I N Robert McL un,F rinc.tjal•McLain Decision S►ippota Ss,teni, 201 W.Southwest Pkwy.,•4h S•Lewisville,TX 7506 (97 )44,6181 O1#Kc•(072)692wS%'7 Fax•(214)SO.iti52 Mobile.•b+l tai1,ui ikc.ynn Table 2.18 Key Findings Non-Revenue Debt-Existing Water& Sewer Fiscal Series Series Series Series Series Year 1993 1995 1997 2005 2005 Total 2005 $ 395,145 $ 230,115 $ 97,776 $ - $ - $ 723,035 2006 364,528 228,643 99,263 - - 692,434 2007 - - 98,791 443,275 151,454 693,520 2008 - - 100,332 442,025 151,454 693,810 2009 - - 101,610 366,600 151,454 619,663 2010 - - 100,472 367,000 151,454 618,926 2011 - - 101,342 214,200 . 151,454 466,995 2012 - - 101,936 213,038 151,454 466,427 2013 - - 102,297 215,900 151,454 469,651 2014 - - 104,589 217,900 151,454 473,942 2015 - - 104,310 224,400 151,454 480,163 2016 - - 105,900 - 75,727 181,627 Table 2.19 Key Findings Non-Revenue Debt-Existing Water Portion Series Series Series Series Series Fiscal 1993 1995 1997 2005 2005 Year 0.00% 90.02% 50.00% 50.00% 50.00% Total 2005 $ - $ 207,143 $ 48,888 $ -. $ - $ 256,031 2006 - 205,819 49,632 - - 255,450 2007 - - 49,396 221,638 75,727 346,760 2008 - - 50,166 221,013 75,727 346,905 2009 - - 50,805 183,300 75,727 309,832 2010 - - 50,236 183,500 75,727 309,463 2011 - - 50,671 107,100 75,727 233,498 2012 - - 50,968 106,519 75,727 233,214 2013 - - 51,149 107,950 75,727 234,825 2014 - - 52,294 108,950 75,727 236,971 2015 - - 52,155 112,200 75,727 240,082 2016 - - 52,950 - 37,863 90,813 SECTION II---IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 19 ,, McLain -.",,kA Decision Support I�Po Systems McL_A I N Robert McLain,F'rtnct1+a1•Ntatain I..,.1(41 Support SN•tcrtt, 201 W S.Ithw&-t R.I.,*4105•Le.iwillc.TX 75067 (972)416-61S1 Chltcc•[`72)6 1.5%47 Eix•{.7.10 S94.%65#Mobile•1,44rowlatiuld,,om Table 2.20 Key Findings Non-Revenue Debt- Existing Water Portion Portion Eligible for Impact Fees %-> 0.0% 0.0% 50.0% 0.0% 0.0% %-> 50.0% 50.0% 50.0% 50.0% 50.0% Fiscal Series Series Series Series Series Year 1993 1995 1997 2005 2005 Total 2005 $ - $ - $ 12,222 $ - $ - $ 12,222 2006 - - 12,408 - - 12,408 2007 - - 12,349 - - 12,349 2008 - - 12,541 - - 12,541 2009 - - 12,701 - - 12,701 2010 - - 12,559 - - 12,559 2011 - - 12,668 - - 12,668 2012 - - 12,742 - - 12,742 2013 - - 12,787 - - 12,787 2014 - - 13,074 - - 13,074 2015■5 - - 13,039 - - 13,039 2016 - - 13,238 - - 13,238 Table 2.21 Key Findings Non-Revenue Debt- Existing Wastewater Portion Series Series Series Series Series Fiscal _ 1993 1995 1997 2005 2005 Year 100.00% 9.98% 50.00% 50.00% 50.00% Total 2005 $ 395,145 $ 22,971 $ 48,888 $ - $ - $ 467,004 2006 364,528 22,824 49,632 - - 436,984 2007 - - 49,396 221,638 75,727 346,760 2008 - - 50,166 221,013 75,727 346,905 2009 - - 50,805 183,300 75,727 309,832 2010 - - 50,236 183,500 75,727 309,463 2011 - - 50,671 107,100 75,727 233,498 2012 - - 50,968 106,519 75,727 233,214 2013 - - 51,149 107,950 75,727 234,825 2014 - - 52,294 108,950 75,727 236,971 2015 - - 52,155 112,200 75,727 240,082 2016 - - 52,950 - 37,863 90,813 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 20 McLain `''A 'Dedsivn Support IL..P' Systems McLAIN IL,ben McLain.Principal•McL.un 1kx:1xi.n►-Support.tir-+t*:m 201 W.Southwest Pkwl.,•4105•Lewisville,1 TX 75067 ')i2}-06.6181(Vice•(072)692-5 i97 lax•(21.0$91,in52 Mobile•1,14tincl;aituk a.con Table 2.22 Key Findings Non-Revenue Debt- Existing Wastewater Portion Portion Eligible for Impact Fees %-> 0.0% 0.0% 95.0% 0.0% 0.0% %-> 0.0°Ia 0.0% 50.0% 0.0% 0.0% Fiscal Series Series Series Series Series Year 1993 1995 1997 2005 2005 Total 2005 $ - $ - $ 23,222 $ - $ - $ 23,222 2006 - - 23,575 - - 23,575 2007 - - 23,463 - - 23,463 2008 - - 23,829 - - 23,829 2009 - - 24,132 - - 24,132 2010 - - 23,862 - - 23,862 2011 - - 24,069 - - 24,069 2012 - - 24,210 - - 24,210 2013 - - 24,29E - - 24,296 2014 - - 24,840 - - 24,840 2015 - - 24,774 - - 24,774 2016 - - 25,151 - - 25,151 • Table 2.23 Key Findings Water Capital Improvement Plan(from Impact Fee Study) Table 1 of 2 Newport South Automated Harbor Nortex NTMWD Ballard Fiscal Meter Ease- Pump Pump Pump Elevated Water Year Reading ments _ Station Station Station Tank Lines Total 2006 $ - $ 89,350 $ - $ - $ - $ - $ - $ 89,350 2007 1,000,000 89,350 1,255,200 163,000 941,000 - 4,448,500 7,897,050 2008 - 89,350 160,000 358,000 - - 1,365,000 1,972,350 2009 - 89,350 160,000 913,000 130,000 - - 1,292,350 2010 - 89,350 - - - 2,675,000 99,000 2,863,350 2011 - 89,350 844,000 135,000 - - - 1,068,350 2012 - 89,350 - 675,000 136,000 . - 1,213,000 2,113,350 2013 - 89,350 - - - - - 89,350 2014 - 89,350 - - - - - 89,350 2015 - 89,350 - - - - - 89,350 2016 - 89,350 - - - - - 89,350 $1,000,000 $ 982,850 $2,419,200 $2,244,000 $1,207,000 $2,675,000 $7,125,500 $17,653,550 ' SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 21 McLain - �' Decision Alii Support Systems M c L A l N Robert?chain,Principal•McLain l cc►iiiin Support SN,trttt.., 20 1 W Sottth►►c t I:w..•i41LlS•1.eva ilk.TX 7506 tt)T 2)4 36-6181.)ftic •(`7 )i92•S W 7 fix•12141 S93-i6i2 Whit.•1,14tmclatnliNxoni Table 2.23 Key Findings Water Capita!lmpro vemen t Plan Table 2 of 2 Total Sources Drawdown Drawdown Total Uses Minus Planned of of Sources of Uses Fiscal Bond Impact Operating of Funds of Ending Year Issues Fees Reserves Funds Table 2.23 Funds Balance 2006 $ - $ - $ 89,350 $ 89,350 $ 89,350 $ - $ - 2007 6,500,000 4,000,000 89,350 10,589,350 7,897,050 2,692,300 2,692,300 2008 - - 89,350 89,350 1,972,350 (1,883,000) 809,300 2009 6,980,000 - 89,350 7,069,350 1,292,350 5,777,000 6,586,300 2010 - • - 89,350 89,350 2,863,350 (2,774,000) 3,812,300 2011 - 89,350 89,350 1,068,350 (979,000) 2,833,300 2012 - - 89,350 89,350 2,113,350 (2,024,000) 809,300 2013 - - 89,350 89,350 89,350 - 809,300 2014 - - 89,350 89,350 89,350 - 809,300 2015 - - 89,350 89,350 89,350 - 809,300 2Q16 - - 89,350 89,350 89,350 - 809,300 $13,480,000 $ 4,000,000 $ 982,850 $18,462,850 $17,653,550 Table 2.24 Key Findings Planned Annual New Debt Service 2007 2009 Water-> $ 6,500,000 $ 6,980,000 Sewer-> - - Year $ 6,500,000 $ 6,980,000 Total 2006 $ - $ - $ - 2007 390,000 - 390,000 . 2008 715,000 - 715,000 2009 695,500 418,800 1,114,300 2010 676,000 767,800 1,443,800 2011 656,500 746,860 1,403,360 2012 702,000 725,920 1,427,920 2013 678,600 704,980 1,383,580 2014 655,200 753,840 1,409,040 2015 631,800 728,712 1,360,512 2016 608,400 703,584 1,311,984 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 22 McLain -,'`A Decision Support Systems allibb.Pr Mcl__A1N Robert McLam,4'rrrtstral•MlcLatrt Decision Support Sv,tern, 201 W.Southwest Pkw s,*4105•Lt wtwiltc.TX 75067 (97 2)416•64 I Orrice•(9 2)692,5397 Fax•(214)893.1652 M,,I,c•boktrod.urrilb.corn Table 2.25 Key Findings Planned Annual New Debt Service-Water Portion Eligible for Impact Fees 2007 2009 Water-> $ 6,500,000 $ 6,980,000 %-> 60.9% 34.4% %.> 50.0% 50.0% Year $ 1,980,756 $ 1,199,433 Total 2005 $ - $ - $ - 2006 - _ - 2007 118,845 - 118,845 2008 217,883 - 217,883 2009 211,941 71,966 283,907 2010 205,999 131,938 337,936 2011 200,056 128,339 328,396 2012 213,922 124,741 338,663 2013 206,791 121,143 327,934 2014 199,660 129,539 329,199 2015 192,530 125,221 317,750 2016 185,399 120,903 306,302 Table 2.26 Key Findings NTMWD Wastewater Contract Revenue Debt Wylie's Share-Paid as part of NTMWD Payments Muddy Wylie Creek WWTP Muddy Muddy WWTP Fiscal Series Creek Creek Expansion Year 1988 Interceptor WWTP $12,250,000 Total 2005 $ 196,325 $ - $ - $ - $ 196,325 2006 198,847 162,401 772,867 - 1,134,115 2007 - 162,180 770,274 588,353 1,520,808 2008 - 161,810 769,969 587,735 1,519,515 2009 - 164,342 765,699 588,345 1,518,386 2010 - 163,526 763,717 588,345 1,515,588 2011 - 162,561 763,869 587,735 1,514,166 2012 - 164,498 761,018 589,565 1,515,081 2013 - 163,087 767,069 590,633 1,520,789 2014 - 164,578 771,446 587,888 1,523,911 2015 - 162,721 777,113 590,633 1,530,466 2016 - 164,673 781,346 589,413 1,535,432 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 23 McLain Decision Support CP' Systems McL.AIN R bi rt Nictun.Prtnc.tlal•?.kLiin I Vrwon StirpOrt W'►yat47110 201 W Snith.cst l'Lw-t.,.4105•Leur iw ilk,TX 75i.167 (972)4164,181()f}«•t')')fib i19t Fix•WO St)i-1651 10,441e•b+t+tkrod;itn.Us.,,rt Table 2.27 Key Findings NTMWD Wastewater Contract Revenue Debt Wylie's Share-Paid as part of NTMWD Payments Portion Eligible for impact Fees %-> 95.0% 95.0% 95.0% 95.0% %-> 50.0% 50.0% 50.0% 50.0% Wylie Muddy WWTP Muddy Muddy Creek Fiscal Series Creek Creek WWTP Year 1988 Interceptor WWTP Expansion Total 2005 $ 93,254 $ - $ - $ - $ 93,254 2006 94,452 77,141 367,112 - 538,705 2007 - 77,035 365,880 279,468 722,384 2008 - 76,860 365,735 279,174 721,769 2009 - 78,062 363,707 279,464 721,233 2010 - 77,675 362,766 279,464 719,904 2011 - 77,217 362,838 279,174 719,229 2012 - 78,137 361,483 280,043 719,663 2013 - 77,466 364,358 280,550 722,375 2014 - 78,175 366,437 279,247 723,858 2015 - 77,293 369,128 280,550 726,972 2016 - 78,220 371,139 279,971 729,330 Table 2.28 Key Findings Recap of Use of Impact Fees- Water Water Portion For For Existing For Existing Non- Planned Revenue Revenue Revenue Fiscal Debt Debt Debt Year Table 2.15 Table 2.20 Table 2.25 Total 2005 $ 29,997 $ 12,222 $ - $ 42,219 2006 30,037 12,408 - 42,445 2007 29,418 12,349 118,845 160,612 2008 29,957 12,541 217,883 260,381 2009 29,922 12,701 283,907 326,530 2010 29,830 12,559 337,936 380,325 2011 29,787 12,668 328,396 370,850 2012 30,291 12,742 338,663 381,696 2013 30,193 12,787 327,934 370,914 2014 30,585 13,074 329,199 372,858 2015 30,341 13,039 317,750 361,130 2016 30,807 13,238 306,302 350,346 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 24 McLain Dedsion Support Systems McL_AIN Robert Md-as r+,Prtttc t.t1•Nic L ur,l ac taa o n Support Sin• 201 W,ti,utthwrg t'kwv.,'#105.Ltwrort1k,TX 75067 (97 )43t+-t+181 Ott •('i a)692,5107 F,1%•(214)$93.)M2 Nit,'ik•l u multi t,,rtt Table 2.29 Key Findings Recap of Use of Impact Fees- Wastewater For For For Existing NTMWD Existing Non- Contract Revenue Revenue Revenue Fiscal Debt Debt Debt Year Table 2.17 Table 2.22 Table 2.27 Total 2005 $ 99,446 $ 23,222 $ 93,254 $ 215,922 2006 99,909 23,575 538,705 662,189 2007 99,031 23,463 722,384 844,877 2008 100,378 23,829 721,769 845,976 2009 100,422 24,132 721,233 845,788 2010 100,488 23,862 719,904 844,254 2011 100,563 24,069 719,229 843,860 2012 101,742 24,210 719,663 845,615 2013 101,585 24,296 722,375 848,255 2014 102,385 24,840 723,858 851,083 2015 101,753 24,774 726,972 853,498 2016 103,924 25,151 729,330 858,406 Table 2.30 Key Findings Recap of Debt Service Non- Revenue Revenue Debt Service Debt Fiscal Existing Planned Existing Year Table 2.13 Table 2.24 Table 2.18 Total 2005 $ 336,429 $ - $ 723,035 $1,059,465 2006 337,495 - 692,434 1,029,929 2007 333,092 390,000 693,520 1,416,612 2008 338,245 715,000 693,810 1,747,055 2009 338,097 1,114,300 619,663 2,072,060 2010 338,010 1,443,800 618,926 2,400,736 2011 337,892 1,403,360 466,995 2,208,247 2012 342,549 1,427,920 466,427 2,236,896 2013 341,731 1,383,580 469,651 2,194,961 2014 345,123 1,409,040 473,942 2,228,105 2015 342,688 1,360,512 480,163 2,183,363 2016 349,330 1,311,984 181,627 1,842,941 SECTION 1I-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 25 McLain Decision Support Systems F, McLAIN Robert McLain.Principal•I.kLain Decision Support Syatartrs 2t.1 fir'.`olithwt,t Pkw, #4105•L cwill,TX 75067 (972)436-t1t4l[:71ti4t•072 692.5197 Fax•(214)S93A i,652 Mobile•i, rnc:lain i lx.conn • 2.2.9. Collection of Impact Fees. In order to give the reader some perspective, the next two tables illustrate the key planning assumptions used, related to the collection and use of water and sewer impact fees. Table 2.31 Key Findings Recap of Impact Fees-Water Sources&Uses of Funds Sources of Funds Uses of Funds Water For Impact Debt Fiscal Beginning Fees Interest Service For Ending Year Balance + Collected + Earned Table 2.28 CIP Balance 2006 $4,279,513 + $ 295,779 + $ 128,385 $ (42,445) $ - $4,661,231 2007 4,661,231 + 1,252,119 + 139,837 (160,612) (4,000,000) 1,892,575 2008 1,892,575 + 1,252,119 + 56,777 (260,381) - 2,941,090 2009 2,941,090 + 1,252,119 + 88,233 (326,530) - 3,954,911 2010 3,954,911 + 1,252,119 + 118,647 (380,325) - 4,945,352 2011 4,945,352 + 1,252,119 + 148,361 (370,850) - 5,974,982 2012 5,974,982 + 1,252,119 + 179,249 (381,696) - 7,024,654 2013 7,024,654 + 1,252,119 + 210,740 (370,914) - 8,116,598 2014 8,116,598 + 1,252,119 + 243,498 (372,858) - 9,239,357 2015 9,239,357 + 1,252,119 + 277,181 (361,130) - 10,407,527 2016 10,407,527 + 1,252,119 + 312,226 (350,346) - 11,621,525 Table 2.32 Key Findings Recap of Impact Fees- Wastewater Sources& Uses of Funds Sources of Funds Uses of Funds Wastewater For impact Debt Fiscal Beginning Fees Interest Service Ending Year Balance + Collected + Earned Table 2.29 Balance 2006 $6,478,647 + $ 683,963 + $ 194,359 $ (662,189) $6,694,780 2007 6,694,780 + 1,281,789 + 200,843 (844,877) 7,332,536 2008 7,332,536 + 1,285,174 + 219,976 (845,976) 7,991,710 2009 7,991,710 + 1,285,072 + 239,751 (845,788) 8,670,745 2010 8,670,745 + 1,283,943 + 260,122 (844,254) 9,370,557 2011 9,370,557 + 1,283,943 + 281,117 (843,860) 10,091,757 2012 10,091,757 + 1,283,943 + 302,753 (845,615) 10,832,838 2013 10,832,838 + 1,284,046 + 324,985 (848,255) 11,593,614 2014 11,593,614 + 1,285,072 + 347,808 (851,083) 12,375,411 2015 12,375,411 + 1,283,841 + 371,262 (853,498) 13,177,017 2016 13,177,017 + 1,282,712 + 395,310 (858,406) 13,996,634 SECTION II---IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 26 IL McLain Decision ASupport COP- Systems McLA N /L4,en McLain.Prim ipal•McLain 1}cam won,n Support SN 4trim ?ill W S.'tihwc,t pkw),.4105•Lew iw illt,TX'75067 (972)416.6181 06 •0 U?12 i W Fax•(214)S91- M2 M bi k•1r4n lasnJJ...c.,rtm • 2.2.10. Renewal and Replacement Costs. The City will have an opportunity, beginning in FY 2008, to begin incorporating the cost of funding the renewal and replacement of the infrastructure of the water and wastewater system out of rates. This is a sound financial policy, which is looked upon favorably by the rating agencies. The basis for the calculation of this transfer is annual depreciation expense. The initial cost for FY 2008 will be $262,500. We are showing this cost in Table 2.33. Table 2.33 Key Findings Recap of Non-Operating Costs Transfers to the Infrastructure Renewal and Replacement Fund Fiscal Annual Depreciation Percentage Funded Transfers Year Water Sewer Water Sewer Water Sewer 2005 $ 620,000 $ 280,000 0.0% 0.0% $ - $ - 2006 645,000 305,000 0.0% 0.0% - - 2007 670,000 330,000 0.0% 0.0% - - 2008 695,000 355,000 25.0% 25.0% 173,750 88,750 2009 720,000 380,000 35.0% 35.0% 252,000 133,000 2010 745,000 405,000 45.0% 45.0% 335,250 182,250 2011 770,000 430,000 55.0% 55.0% 423,500 236,500 2012 795,000 455,000 65.0% 65.0% 516,750 295,750 2013 820,000 480,000 75.0% 75.0% 615,000 360,000 2014 845,000 505,000 85.0% 85.0% 718,250 429,250 2015 870,000 530,000 95.0% 95.0% 826,500 503,500 2016 895,000 555,000 105.0% 105.0% 939,750 582,750 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 27 McLain Decision 41111 Support 4116,fir Systems McL_A I N R.bc i McL.irn.1'rtnrir..1• c1..41n I iaiD'n*Too S,rsni 201 W ti►rtllvi:mot 11,41.,•4105•Lcx'iat'i11k,TX 7506 [)72)436.61S1 t)if •0721642.5197 Fax•(214)$93.1t52 Mobile•1.,%hitancbtintikoim Table 2.34 Key Findings Recap of Non-Operating Costs Transfer Transfer To Debt To R&R Fiscal Service General Fund Year Table 2.30 Fund Table 2.33 Total 2005 $1,059,465 $ 420,000 $ - $1,479,465 2006 1,029,929 420,000 - 1,449,929 2007 1,416,612 450,000 - 1,866,612 2008 1,747,055 468,000 262,500 2,477,555 2009 2,072,060 487,000 385,000 2,944,060 2010 2,400,736 506,000 517,500 3,424,236 2011 2,208,247 526,000 660,000 3,394,247 2012 2,236,896 547,000 812,500 3,596,396 2013 2,194,961 569,000 975,000 3,738,961 2014 2,228,105 592,000 1,147,500 3,967,605 2015 2,183,363 616,000 1,330,000 4,129,363 2016 1,842,941 641,000 1,522,500 4,006,441 • 2.2.11. General Fund Transfers. We have assumed the transfer to the general fund will increase 4%annually. Table 2.34 shows this transfer. SECTION II—IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 28 McLain Decision Support Systems McLA N Robert McI-um Prince jl•M1c Simon SN,t nt. 201 W.Soullme,t 1'w.,•4105•L.:►rmillr,TX 75067 (972.4 6- 181 Off.,•(97)692-5197 fax•(214)S93-1652 Molile•boNitinclairtlis.com Table 2.35 Key Findings Recap of Total Gross Cost of Service Total Total Non- Operating Operating Total Costs Costs Gross Fiscal From From Cost of Year Table 2.12 Table 2.30 Service 2005 $5,864,556 $ 1,479,465 $7,344,021 2006 8,588,791 1,449,929 10,038,720 2007 8,312,953 1,866,612 10,179,564 2008 9,434,032 2,477,555 11,911,587 2009 10,046,272 2,944,060 12,9 90,332 2010 10,537,440 3,424,236 13,961,676 2011 11,076,906 3,394,247 14,471,153 2012 11,648,865 3,596,396 15,246 261 2013 12,259,838 3,738,961 15,998,799 2014 12,897,201 3,967,605 16,8 64,806 2015 13,572,974 4,129,363 17,70 2,337 2016 14,082,962 4,006,441 18,089,403 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 29 McLain -'�` Dedsion All Support 11111■ Systems y"` McLAIN Robert McLain,Prtiicii-rl•lkkkL.ain IX'ist,m Simon System, :cal W,S uthwr'i rkwv.,•4105•Lew'i+e'iIle,TX 75ANS7 {972)436•61t 1 Office•0721 69:ri97 Fix•(214)894•3652 Mob&•hohltinciatillt,orit Table 2.36 Key Findings Recap of Non-Rate Operating Revenues Fiscal Water Sewer Reconnect Year Taps Taps Fees Totals 2005 $ 136,169 $ 21,770 $ 35,820 $ 193,759 2006 200,000 29,700 22,000 251,700 2007 150,000 25,000 40,000 215,000 2008 200,000 29,700 43,117 272,817 2009 200,000 29,700 46,233 275,933 2010 200,000 29,700 49,350 279,050 2011 200,000 29,700 52,466 282,166 2012 200,000 29,700 55,583 285,283 2013 200,000 29,700 58,699 288,399 2014 200,000 29,700 61,816 291,516 2015 200,000 29,700 64,932 294,632 2016 200,000 29,700 68,049 297,749 Table 2.37 Key Findings Recap of Non-Rate Non-Operating Revenues Interest Utility Gain on Fiscal from Pretreatment Sale of Misc. Year Investments Fees Assets Income Totals 2005 $ 441,638 $ 36,000 $ 193,305 $ 129,976 $ 800,919 2006 60,000 38,000 - 40,000 138,000 2007 50,000 38,000 - 136,860 224,860 2008 50,000 38,000 - 136,860 224,860 2009 43,700 38,000 - 136,860 218,560 2010 37,600 38,000 - 136,860 212,460 2011 33,400 38,000 - 136,860 208,260 2012 36,100 38,000 - 136,860 210,960 2013 39,000 38,000 - 136,860 213,860 2014 42,100 38,000 - 136,860 216,960 2015 44,300 38,000 - 136,860 219,160 2016 45,800 38,000 - 136,860 220,660 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 30 ■ McLain +`A Decision Support OLP' FPo Systems Mc L A N R fin McL.un,Pruicitm1•Nict_ain Decision Support S stein' 201 W Southwest Ptws.,.4105•Lewisville,TX 75061 (972 3 4 36-6181{ltf ii,•is f?3 692-5 397 F.n),•(214)891652 Mobile•t kiirraa3irnl.lw..orn Table 2.38 Key Findings Recap of Revenue Offsets Drawdown Drawdown of of Non-Rate Non-Rate Water Wastewater Operating Non-Operating Impact Impact Fiscal Revenues Revenues Fees Fees Year Table 2.36 Table 2.37 Table 2.28 Table 2.29 Totals 2005 $ 193,759 $ 800,919 $ 42,219 $ 215,922 $ 1,252,819 2006 251,700 138,000 42,445 662,189 1,094,334 2007 215,000 224,860 160,612 844,877 1,445,349 2008 272,817 224,860 260,381 845,976 1,604,034 2009 275,933 218,560 326,530 845,788 1,666,811 2010 279,050 212,460 380,325 844,254 1,716,089 2011 282,166 208,260 370,850 843,860 1,705,136 2012 285,283 210,960 381,696 845,615 1,723,554 2013 288,399 213,860 370,914 848,255 1,721,428 2014 291,516 216,960 372,858 851,083 1,732,416 2015 294,632 219,160 361,130 853,498 1,728,420 2016 297,749 220,660 350,346 858,406 1,727,160 SECTION II-IDENTIFICATION OF THE REVENUE REQUIREMENTS PAGE 31