[K1. 2025-072 Discussion and presentation of a Summary of the Approved and Created Eastridge Public Improvement District and Plan of Finance for the Issuance of Improvement Area #4 Special Assessment Revenue Bonds, Series 2025. Presentation by Jim Sabonis with Hilltop Securities.]

>> ITEM K1, 2025-072.

DISCUSSION AND PRESENTATION OF A SUMMARY OF THE APPROVED AND CREATED EAST RIDGE PUBLIC IMPROVEMENT DISTRICT, AND PLAN OF FINANCE FOR THE ISSUANCE OF IMPROVEMENT AREA NUMBER 4, SPECIAL ASSESSMENT REVENUE BONDS, SERIES 2025, PRESENTATION BY JIM SABONIS WITH HILLTOP SECURITIES.

>> GOOD EVENING, MAYOR, COUNCILMEN.

COUNCIL MEMBERS, CITIZENS OF PRINCETON.

MY NAME IS JIM SABONIS.

I'M WITH HILLTOP SECURITIES.

I AM WITH A TEAM OF FINANCIAL ADVISORS FROM HILLTOP THAT SERVICE FINANCIAL ADVISORS OF THE CITY.

OUR PRIMARY RESPONSIBILITIES ARE HELPING THE CITY IN ALL ITS ASPECTS RELATED TO DEBT ISSUANCE, INVESTMENTS, AND REGULATORY REQUIREMENTS TO THE DEBT ISSUANCE.

FOR INSTANCE, THE RECENT BOND ELECTION PROCESS WE'RE INVOLVED IN, THE UPGRADE TO THE DOUBLE A+.

BUT ONE OF THOSE PROCESSES THAT WE'RE INVOLVED IN IS HELPING THE CITY WHEN IT MOVES FORWARD WITH THE ISSUANCE OF SPECIAL ASSESSMENT REVENUE BONDS.

WE HAVE THREE GOALS AND REQUIREMENTS THAT WE OPERATE ON AND WHEN WE ACT AS YOUR FINANCIAL ADVISOR.

THE FIRST ONE IS THAT THE PROPOSED BOND ISSUE IS COMPLIANT WITH THE DEVELOPMENT AGREEMENT THAT YOU HAVE IN PLACE.

ALL THE CONSTRAINTS AND REQUIREMENTS ARE THAT.

SECOND IS TO USE THE BEST PRACTICES THAT WE'RE AWARE OF TO MAKE SURE THAT WE ISOLATE THE CITY FROM ANY FINANCIAL LIABILITY FOR THAT PUBLIC IMPROVEMENT DISTRICT SPECIAL ASSESSMENT BOND.

THE THIRD IS ONCE THOSE THINGS ARE IN PLACE, TO MAKE SURE IT'S DONE AS EFFICIENTLY AND COST EFFECTIVELY AS POSSIBLE TO MAKE THE PROJECT BEST CHANCE OF SUCCESS IN GOING FORWARD.

ON THE EASTRIDGE PROJECT, IS ONE OF THE FIRST PROJECTS THAT THE CITY HAS ACTUALLY DONE, AND WE'RE ACTUALLY TALKING ABOUT PHASE 4.

THE PROJECT ACTUALLY WAS APPROVED IN A DEVELOPMENT AGREEMENT IN 2020, AND IT WAS AMENDED IN 2021.

THE FIRST BOND ISSUE WAS DONE IN 2022 TO FUND THE FIRST PHASE OF THE ISSUANCE.

THAT PROJECT WAS ABSORBED QUICKLY.

THE SECOND PHASE WAS DONE IN JULY OF 2023.

THE THIRD PHASE WAS ACTUALLY ISSUED AND FUNDED IN AUGUST OF 2024.

NOW WE'RE HERE, AND THE DEVELOPERS ASKED US BECAUSE THEY'RE READY TO MOVE FORWARD WITH THE FOURTH PHASE.

OVERALL, THE PROJECT IS 547 ACRES.

ULTIMATELY, A BUILD OUT APPROXIMATELY 2,348 FAMILY RESIDENCES.

THE BUILDOUT WILL BE ABOUT 880 MILLION OF TAXABLE VALUE AT THE CITY'S CURRENT AD VALOREM TAX RATE, IT'LL GENERATE ABOUT 3.5 MILLION AND ANNUAL AD VALOREM TAXES.

IT HAS AN 80% MAXIMUM GROSS TAX EQUIVALENT ASSESSMENT RATE, AND THAT PROPERTY WAS ORIGINALLY IN THE ETJ OF THE CITY.

PART OF THE NEGOTIATIONS, THE DEVELOPER IS CONSIDERED AN ETJ MUD.

THE CITY NEGOTIATED AND DETERMINED THAT IT WOULD BE BETTER TO COME INTO THE CITY LIMITS TO GENERATE SOME REVENUE.

AS PART OF THE INCENTIVE, THEY PROVIDED A 45% TOURS BASED TO OFFSET THE ANNUAL ASSESSMENT RATE.

THE PROJECT OVERALL WILL GENERATE 4.2 MILLION OF PID FEES, $1,800 PER RESIDENT PAID BY DEVELOPER SIMULTANEOUSLY AT THE CLOSING OF EACH PHASE BOND ISSUE.

AS I INDICATED, WE'VE ISSUED BONDS FOR PHASE 1, 2, AND 3.

IMPROVEMENT AREA 4 IS GOING TO BE

[00:15:01]

ABOUT 379 LOTS 40 AND 50 FRONT FOOT SIZE WITH A TOTAL BUILDOUT, EXPECTED ABOUT 150 MILLION.

AT OUR CURRENT TAX RATES IS GOING TO GENERATE ABOUT 661,000 IN VALOREM.

OUR 45% TOURS WILL ACTUALLY AT THE CURRENT RATE, ALLOCATE $296,000 TO OFFSET THE ASSESSMENT RATES RESULTING ABOUT $364,000 COMING TO THE CITY.

AT THE CLOSING OF THIS BOND ISSUE, THE DEVELOPER SIMULTANEOUSLY WILL PAY A PID FEE OF $682,000 TO THE CITY.

>> AS I INDICATED, THIS IS ONE OF OUR ORIGINAL PURIST PROJECTS.

I THINK IT WAS ONE OF THE ACTUALLY STARTED THIS WHOLE PROCESS AS THE MUDS, DEVELOPERS PURCHASED LARGE TRACTS OF PROPERTY, WE'RE EVALUATING THE IMPLEMENTATION OF MUNICIPAL UTILITY DISTRICTS.

WE'VE DONE A NUMBER OF STEPS TO GO FORWARD, AND IT'S BEEN A SUCCESSFUL PROJECT PREVIOUSLY.

IF YOU TURN TO THE NEXT PAGE, TONIGHT I'M MAKING A PRESENTATION.

LATER ON THE AGENDA, YOU HAVE THE PRESENTATION OF A DRAFT SERVICE AND ASSESSMENT PLAN, WHICH PRESENTS THE PROPOSED IMPROVEMENTS THAT WE FUNDED WITH THE ASSESSMENTS, THE ASSESSMENT LEVY AND LIEN THAT WOULD WE PUT ON EACH HOME, AND WHAT THE COST WOULD BE FOR THOSE HOMEOWNERS ALLOCATED.

IT'S A DRAFT SERVICE ASSESSMENT PLAN BECAUSE IT ANTICIPATES ON A CONSERVATIVE BASIS WHAT IT WILL BE.

IT WOULD BE FINALIZED AFTER A PUBLIC HEARING IN THE PRICING OF THE BONDS IN MARCH.

YOU'LL RECEIVE AND YOU'LL ACTUALLY HAVE CALL A PUBLIC HEARING FOR THE PUBLIC TO RECEIVE THAT INFORMATION ON MARCH 24, RESPECTING TO PRICE OF BONDS DURING THE DAY, PRESENT THE RESULTS OF THE PRICING TO YOU THAT EVENING.

THE SERVICE ASSESSMENT PLAN WILL BE UPDATED TO REFLECT THE ACTUAL FINAL PRICING OF THOSE NUMBERS.

THERE WILL BE AN ORDINANCE LEVYING ASSESSMENTS FOR THE IMPROVEMENT AREA, THEN ORDINANCE ACTUALLY AUTHORIZING THE ISSUANCE OF THE PUBLIC IMPROVEMENT DISTRICT.

THE STATE OF TEXAS, OUR ATTORNEY GENERAL REVIEWS AND APPROVES ALL BOND ISSUES BY MUNICIPALITIES.

YOU WILL REQUIRE A MINIMUM OF 15 WORK DAYS TO DO THAT.

IF THE COUNCIL APPROVES IT AND EXECUTES THE DOCUMENTS WILL BE SUBMITTED TO THE ATTORNEY GENERAL, AND WE EXPECT APRIL 22ND WOULD BE THE CLOSING AND SIMULTANEOUS FUNDING OF THE PID FEE TO THE CITY.

CURRENTLY, BASED ON OUR CURRENT MARKET CONDITIONS, WE EXPECT THE PAR AMOUNT BONDS TO BE ABOUT 15.2 MILLION AND THAT THIS IS GOING TO BE STRUCTURED UNDER OUR BEST PRACTICES.

THERE WILL BE A CAPITALIZED INTEREST FUND FOR ONE YEAR, AND THEN THERE WILL BE A DEBT SERVICE RESERVE.

THE DEBT SERVICE RESERVE WILL BE PUT IN PLACE JUST IN CASE THERE'S ANY DELINQUENCIES IN THE PROJECT.

STANDARD COSTS INVOLVED IN THE PROCESS.

BASED ON TODAY'S MARKET, WE'D EXPECT ABOUT A 5.7% INTEREST RATE.

TOTAL PRINCIPAL AND INTEREST OVER THE LIFE OF ISSUE WOULD BE ABOUT 32.2 MILLION.

AVERAGE ANNUAL PRINCIPAL INTEREST WOULD BE ABOUT 1,160,000.

THE AVERAGE ANNUAL PRINCIPAL INTEREST PER PARCEL WILL BE ABOUT $3,061.

THERE WILL BE A LIEN ON EACH PARCEL OF ABOUT $40,245.

THE APPROVAL DATE, AGAIN, WE INDICATE MARCH 24TH, CLOSING DATE ON THE 22ND. SOME IMPORTANT THINGS.

I THINK FOR COUNSEL, THE MOST IMPORTANT THINGS THAT PEOPLE WILL ACTUALLY COME AND TALK TO YOU ABOUT IS WHAT THE ASSESSMENTS WOULD BE AND BASED ON THE CURRENT PRIMARY SERVICE ASSESSMENT PLAN.

THERE WILL BE A GROSS LEVY OF $2,997 FOR EACH 40' LOT.

IT'S BASED ON THE ASSUMPTION AND BUILD OUT OF $375,000.

WE'LL HAVE THE TOURS OFFSET OF $741 AND THE NET LEVY THAT WILL ACTUALLY BE PUT ON THE TAX BILL FOR THE HOMEOWNER, WOULD BE ABOUT $2,256 PER YEAR OR AN EQUIVALENT OF ABOUT 60.2 TAX EQUIVALENT RATE FOR THE ASSESSMENT.

TOTAL NET LEVY THAT THEY EXPECT OVER THE 30 YEARS WILL BE OUT $67,000.

THE 50' LOTS, WE'LL HAVE EXPECTED BUILD OUT OF 420,000.

THEIR GROSS LEVY WILL BE ABOUT $3,357, OFFSET BY $830 TIRZ ALLOCATION,

[00:20:02]

GIVING A NET LEVY OF $2,526 OR A TAX EQUIVALENT RATE OF 60.2 ALSO, TOTAL NET LEVY ABOUT 30 FOR THE 30 YEARS WILL BE A $75,800.

THE AVERAGE ASSESSMENT LIEN PER LOT OF 40,245, BASED ON THE APPRAISAL THAT'S BEEN DONE ON THE LAND WOULD HAVE A LEVERAGE AT BONDAGE OF ABOUT 2.0.

IN SUMMARY, THIS WILL BE CONSIDERED A CREDIT WORTHY TRANSACTION.

GREENBOOK IS THE DEVELOPER.

WE'VE ACTUALLY SEEN AND BEEN INVOLVED WITH OTHER OUR CITY CLIENTS WHICH REACH AN DEVELOPMENT.

WE'D EXPECT THIS TO BE WELL RECEIVED IN THE MARKETPLACE, AND ITSELF TO BE AN EFFICIENT TRANSACTION.

AS I INDICATED PREVIOUSLY, AND WE'VE REVIEWED THIS AND IT IS COMPLIANT WITH THE DEVELOPMENT AGREEMENT, ALL THE CONSTRAINTS IN THE DEVELOPMENT AGREEMENT, AND WE BELIEVE THAT TRANSACTION IS THE STATE OF ART ON HOW A PID SHOULD BE STRUCTURED FOR A CITY, ISOLATED FROM FINANCIAL RISK, A REPAYMENT OF THE PID BONDS, AND I KNOW THE MEMBERS OF FINANCE TEAM BELIEVE WE ACTUALLY HAVE A SUCCESSFUL OFFERING.

WITH THAT, IT CONCLUDES MY PREPARED COMMENTS.

I'D ANSWER ANY QUESTIONS, PROVIDE ADDITIONAL INFORMATION I CAN AT THIS TIME.

>> I HAVE A COUPLE OF QUESTIONS.

STARTING WITH WHAT EXACTLY IS BEING DISCLOSED TO THE HOME BUYERS ABOUT THIS.

WHAT DOCUMENTATION ARE WE GIVING TO RESIDENTS WHO ARE PURCHASING THESE HOMES SO THAT THEY'RE EDUCATED AND WHAT THEY'RE ACCEPTING BECAUSE I MEAN, WE'RE LOOKING AT A PERSON WHO BUYS A 40' LOT IS PAYING $7,672 ON TOP OF THEIR MORTGAGE FOR THAT HOME.

I WANT TO MAKE SURE THAT THEY ARE WELL EDUCATED WHEN THEY'RE PURCHASING THAT HOME AND WHAT EXACTLY THEY'RE TAKING ON AND DOES THIS HAVE ANY IMPACT ON THE HOMESTEAD? BECAUSE I SAW IN ONE OF THE DOCUMENTS, THERE'S COMMENTARY ABOUT THE HOMESTEAD EXEMPTION.

I WANT TO KNOW, DO THESE PIDS IMPACT THOSE RESIDENTS ABILITIES TO HAVE THEIR HOMESTEAD EXEMPTION?

>> THANK YOU FOR THE QUESTIONS, COUNCIL MEMBER.

TWO THINGS, AND I'M NOT GOING TO TAKE THEM IN THE ORDER.

I'LL TAKE THEM IN REVERSE ORDER, THAT THE ASSESSMENT SHOULD NOT IMPACT THE HOMESTEAD.

I BELIEVE THE LANGUAGE THAT YOU MAY HAVE REFERRED TO, THERE'S EXTENSIVE LANGUAGE IN THERE THAT THERE IS A HOMESTEAD EXTENSION AND THAT THE PID IS PUT IN PLACE BEFORE THE HOMESTEAD TO ALLOW IT TO HAVE A VALID LIEN.

WHAT I MEAN BY THAT IS THAT THE PID LIEN IS PUT IN PLACE WHEN THE SERVICE AND ASSESSMENT PLAN, THE ASSESSMENTS ARE LEVIED, THOSE BONDS ARE ISSUED.

THEY ACTUALLY HAVE A PRIOR LIEN TO THE HOMESTEAD EXTENSION, AND THAT'S WHAT MAKES IT A CREDIT WORTHY PROCESS AND TO BE TREATED SIMILAR TO TAXES.

WHEN THE ASSESSMENTS PUT IN PLACE BEFORE THE HOMESTEAD, AND THIS IS WHAT I THINK THEY'RE GOING TO TALK ABOUT IN THE OFFERING DOCUMENT.

I THINK IT'S IMPORTANT FOR YOU TO KNOW IS THAT WHEN A BILL GOES OUT, YOU HAVE AN ANNUAL TAX, A BILL, AND YOU PAY TAXES AND YOU PAY ASSESSMENTS AND PROPERLY CONSTRUCTED.

THE ASSESSMENTS ARE LEVIED PRIOR TO A HOMEOWNER TAKING POSSESSION OF THE HOME AND ACTUALLY HAVING THE HOMESTEAD.

IF THERE'S NON PAYMENT OF ASSESSMENT IS TREATED LIKE NON PAYMENT OF TAX, THERE CAN BE FORECLOSURE AND PROCESSES WHERE THE HOMESTEAD IS IN PLACE, PRIOR TO THE ISSUANCE OF BONDS, THEY MAY NOT ISSUE BONDS FOR THOSE AMOUNT DEPENDING ON THE PROJECT BECAUSE NO FORECLOSURE POTENTIAL ABILITY.

I WANT TO BE CLEAR HOW IT AFFECTS THE HOMESTEAD, DOESN'T AFFECT THE EXEMPTION THAT YOU RECEIVE FROM THE CITY.

BUT IT IS PRIOR TO THE HOME BEING PUT IN PLACE PRIOR TO HOMES THAT IT ALLOWS FOR NONPAYMENT FOR FORECLOSURE SIMILAR TO A TAX.

DOES THAT ANSWER YOUR QUESTION ON THAT ASPECT OF IT? THEN, AS FAR AS DISCLOSURE, TWO ASPECTS, I THINK, CONTROL DISCLOSURE.

THERE'S BEEN RECENT STATE LEGISLATION REQUIRING DISCLOSURE.

THEN IN OUR DEVELOPMENT AGREEMENT ITSELF, IT INDICATES THE TYPE OF DISCLOSURE.

I'M GOING TO SPEAK IN GENERALITIES, AND I KNOW THAT THE LAWYER FOR THE DEVELOPER IS HERE, AND HE CAN EXPLAIN EXACTLY WHAT THEY'VE DONE, BUT AGAIN, THERE'S SUPPOSED TO BE SIGNS INDICATING THE ENTRY INTO THE DISTRICT.

THERE'S SUPPOSED TO BE IN ALL THE LITERATURE AND MARKET MATERIALS IN THE SALES OFFICE THEY'RE SUPPOSED TO BE CLEAR.

DISCLOSURE LANGUAGE ABOUT THE ASSESSMENTS, BOTH THE LEVY AND LIEN THAT ARE PUT IN PLACE AND IT'S IMPORTANT THAT THAT INFORMATION ALSO IS PUT INTO

[00:25:05]

ANY SALES DOCUMENTS SO THEY CAN BE CAUGHT BY THE ESCROW COMPANY AND THE MORTGAGE COMPANY WHEN THEY GO FORWARD.

YET, THE FACT IS SOMEBODY JUST RECENTLY BOUGHT AND SOLD THE HOME, YOU GET A LOT OF DOCTORS YOU ASSIGN THEM.

BUT THERE IS AN ACTIVE PROCESS WHERE THERE'S SUPPOSED TO BE ALL THAT MATERIALS PUT IN PLACE.

AGAIN, I THINK THE DEVELOPER HAS SOME REPRESENTATIVES HERE.

I'D ASKED THEM TO TALK ABOUT IT, BUT IN OUR DEVELOPMENT AGREEMENT, WE REQUEST THAT THEY DO THOSE THINGS TO COMPLY WITH STATE LAW FOR US, SO HOMEOWNERS HAVE THAT INFORMATION.

>> HOW RECENT IS IT THAT IT'S REQUIRED TO DISCLOSE THIS TO RESIDENTS? THAT'S QUESTION 1.

QUESTION 2, YOU'RE SAYING THAT IN THE GIANT PACKET THAT A HOMEOWNER GETS TO SIGN FOR THEIR HOUSE, THAT'S WHERE WE SQUEEZE IT IN THERE.

HEY, BY THE WAY, YOU'RE GOING TO HAVE THIS EXTRA FEE.

THERE'S NOT, LIKE, A SEPARATE CLEAR PAMPHLET, SOMETHING EDUCATIONAL, THAT'S CRYSTAL CLEAR THAT THIS IS HAPPENING.

WE'RE JUST SQUEEZING IT IN THERE IN THE PACKET OF PAPERS?

>> WELL, THAT'S NOT THE INTENTION, THOUGH.

AGAIN, I'D ASK THEIR ATTORNEY COME UP AND EXPLAIN WHAT THEY'RE DOING.

BUT BY PRACTICE, AGAIN, ALL THE MARKET MATERIAL SHOULD ACTUALLY INDICATE THAT THERE'S AND INDICATE THAT INFORMATION, AND IT SHOULD BE INDICATED, AND THERE SHOULD BE AN AFFIDAVIT THAT THEY SIGN INDICATING THAT THIS IS GOING TO BE AN ASSESSMENT AND THAT THIS LIEN WILL BE PUT IN PLACE.

ROSS, MAY WE CAN EXPLAIN EXACTLY.

>> MAYOR COUNSEL, ROSS MARTIN WITH WINSTEAD PC LAW FIRM REPRESENTING BOTH GREEN BRICK PARTNERS AND BRIGHT LN HOMES ON THE PITS YOU'RE GOING TO HEAR ABOUT THIS EVENING.

THE NOTICE TO PURCHASER HAS A FEW COMPONENTS.

ONE IS THAT THERE ARE ALL THE SALESPEOPLE ARE TRAINED AND DISCUSSED TO TALK WITH HOME BUYERS ABOUT THE ASSESSMENT.

SECONDLY, THEY RECEIVE NOTICE OF THE PID ASSESSMENT AT THE TIME OF CONTRACT.

IT IS REQUIRED BY LAW THAT THEY RECEIVE A SEPARATE DOCUMENT, NOT A LINE ITEM SOMEWHERE, A SEPARATE DOCUMENT THAT DESCRIBES THE AMOUNT OF THE ASSESSMENT THAT THE ASSESSMENT WILL BE LEVIED, AND THEY'LL BE RESPONSIBLE FOR THAT, BOTH AT THE TIME THE CONTRACT IS PROVIDED AND AT CLOSING, SO THEY GET TWO NOTICES.

AS WE'VE ALL WORKED ON PIDS OVER THE YEARS, IT IS VITALLY IMPORTANT FOR EVERYONE TO KNOW THAT THAT ASSESSMENT WILL BE IN PLACE, AND THAT'LL BE A PART OF THEIR OBLIGATION GOING FORWARD, BECAUSE IT'S ON THEIR TAX BILL, JUST LIKE ANY OTHER, IT'S JUST A LINE ITEM ON THEIR TAX BILL, BUT EVERYONE HAS TO KNOW ABOUT IT FOR THEIR MORTGAGE SERVICING.

ALSO, AS WE'VE TALKED ABOUT TONIGHT, YOU WANT TO MAKE SURE THAT EVERYBODY IS AWARE OF THAT GOING FORWARD, SO EVERYONE GOES INTO IT INFORMED.

>> WOULD YOU MIND EMAILING ME WHAT THAT LOOKS LIKE, THAT DOCUMENT THAT THEY'RE GETTING?

>> YES, WE CAN EMAIL YOU THE NOTICES.

>> I WOULD LOVE TO SEE IT JUST TO SEE THE LANGUAGE AND EVERYTHING THAT'S EMBEDDED IN THERE.

>> IT'S STATUTORY. IN THE PROPERTY CODE, IT'S REQUIRED FOR THAT NOTICE TO GO OUT, AND THE LANGUAGE THAT IS REQUIRED TO BE IN THAT IS ALSO PRESCRIBED.

BUT THEY HAVE THEM PREPARED FOR THE EASTRIDGE PID.

THE RESIDENTS IN THE PRIOR IMPROVEMENT AREA RECEIVE THESE, THE RESIDENTS IN THE FUTURE IMPROVEMENT AREAS WILL RECEIVE IT, AND I'LL SEND YOU THE FORM OF THE TWO NOTICES.

>> I HAVE A COUPLE MORE QUESTIONS.

NEXT, CITY CLERK ANSWERED IT FOR ME, BUT I JUST WANT TO CLARIFY.

LET ME SEE WHICH ONE THIS IS.

SHALL I WAIT TIL K4 ASKED THIS QUESTION?

>> YES.

>> I'LL WAIT FOR THAT ONE. I GUESS MY NEXT QUESTION THEN.

>> COUNCIL MEMBER, CAN I ASK YOU ONE MORE THING? THE DEVELOPER'S ATTORNEYS HERE, I'D ASK HIM THE ANSWER.

THE STANDARD TEXAS REAL ESTATE CONTRACT FOR A SALE HOME IS SUPPOSED TO INDICATE WHETHER IT'S IN A PID OR NOT AND PROVIDE THAT INFORMATION.

YOU MIGHT COMMENT BECAUSE WE'RE TALKING THE NOTICES THAT I THINK WE TALKED ABOUT PREVIOUSLY WERE THE ORIGINAL SALE, BUT IT'S ALSO IMPORTANT THAT THERE'S SECONDARY NOTICES PUT IN PLACE IN THE SALE.

WOULD YOU COMMENT ON THAT ROSS?

>> THERE'S A NOTICE THAT'S PROVIDED AT CONTRACT.

THERE'S A NOTICE THAT'S PROVIDED AT CLOSING.

THERE'S ALSO AS JIM NOTES, IN THE STANDARD TEXAS REAL ESTATE CONTRACT, THERE'S A SEPARATE LINE ITEM THAT YOU CHECK AS TO WHAT TYPE OF SPECIAL DISTRICT YOU'RE IN, WHETHER THAT'S A MUD OR A PID,

[00:30:01]

THAT'S NOTED THERE AS WELL.

THERE'S A LOT OF OPPORTUNITIES FOR PEOPLE TO SEE AND KNOW THAT THAT'S PUT IN PLACE.

>> I GUESS FOR YOUR PROCESS, BECAUSE YOU'RE SAYING WE HAVE A DEVELOPMENT AGREEMENT, WHICH TO THE CITY, SINCE DEVELOPMENT AGREEMENTS HAPPEN ON THESE THINGS IN ADVANCE PRIOR TO US BEING HERE, IF IT'S POSSIBLE TO COPY THAT ON, THAT WOULD BE AWESOME IN THE FUTURE SO I CAN READ THAT AND SEE WHAT WE AGREED TO?

>> YOU WANT THE DEVELOPERS AGREEMENT ATTACHED TO IT?

>> WHEN WE HAVE THINGS THAT WE'RE VOTING ON THAT DEVELOPMENT AGREEMENT WAS DONE YEARS PRIOR.

IT WOULD BE AWESOME IF IT WAS ATTACHED SO WE CAN READ IT AND SEE WHAT WAS VOTED ON PRIOR TO US COMING UP HERE.

BUT WITH THAT, IN THE PROCESS, IT WAS STATING HERE THAT THE INFRASTRUCTURE ISN'T FULLY COMPLETED, BUT WE'RE RELEASING FUNDS.

HOW'S THAT? SHOULD IT BE COMPLETED BEFORE RELEASE OF THE FUNDS?

>> I DON'T THINK THAT'S THIS LINE ITEM.

>> THIS IS ALL WE'RE RELEASING MONEY FOR.

THERE'S A LOT OF THEM, SORRY.

YEAH, NO, WE'RE RELEASING MONEY FOR THIS ONE, K1? HOW DOES THAT WORK WITH THE PROCESS OF WHEN WE'RE RELEASING THE PID MONEY AND ALL OF THAT AND WHAT'S BEEN PREPARED PRIOR TO, IF YOU COULD EXPLAIN IT, THAT'D BE CORRECT.

>> NO. IT'S A VERY IMPORTANT ASPECT OF HOW THESE TRANSACTIONS ARE STRUCTURED.

FIRST OF ALL, THE PRIMARY SERVICE ASSESSMENT PLAN, THEN THE FINAL SERVICE ASSESSMENT PLAN WILL INDICATE EXACTLY WHAT THE PUBLIC INFRASTRUCTURE THAT WILL BE FUNDED ARE INCLUDED.

AS YOU MOVE FORWARD AND YOU THINK ABOUT HOW A ROAD IS CONSTRUCTED, WHAT WILL TAKE PLACE IS THAT WELL, LET ME SAY AT CLOSING, THE MONEY DOESN'T GO TO THE DEVELOPER AND IT GOES TO AN ESCROW ACCOUNT CONTROLLED BY THE CITY.

THE TRUST INDENTURE INDICATES A VERY FORMAL PROCESS WHERE THE DEVELOPER WOULD HAVE TO COMPLETE A PORTION OF INFRASTRUCTURE, IT WOULD HAVE TO BE INSPECTED AND APPROVED BY THE CITY AND ACCEPTED BY THE CITY.

AT THAT TIME, THEY CAN SUBMIT A BILL, THEIR ENGINEER WOULD SIGN OFF ON THE BILL AND SAY, THIS WAS TO BE DONE BY LICENSED ENGINEER.

IT'D BE SUBMITTED TO THE CITY WHOSE THEIR INTERNAL OR EXTERNAL ENGINEERS WOULD LOOK AT AND SIGN OFF ON IT, THEN SUBMIT IT TO THE SERVICE ASSESSMENT, THE CITY'S ASSESSMENT CONSULTANT WHO WOULD LOOK AT THAT AND SAY, THIS IS AN ELIGIBLE COST.

THE COST IS REASONABLE BASED ON WHAT OUR SERVICE ASSESSMENT PLAN IS, AND AFTER ALL THOSE PROCESS, THEN IT CAN ACTUALLY BE PAID.

IT'S PAID MAYBE ON A MONTHLY BASIS BASED ON COMPLETED AND ACCEPTED ASSETS.

NOT MUCH TO BEGIN WITH, BUT IT BULGES AS YOU COMPLETE THE PROCESS.

BUT THE PROCESS ITSELF WITH THE ESCROW ENSURES THAT THE INFRASTRUCTURE DOES GET BUILT, AND THE MONEY'S NOT USED INAPPROPRIATELY.

>> THANK YOU. I THINK THAT'S REALLY HELPFUL FOR THE PEOPLE TO KNOW THAT.

ESPECIALLY WHEN WE'RE HANDING MONEY BACK OVER TO DEVELOPERS, THERE'S ALWAYS THAT QUESTION OF, LIKE, WHERE'S THIS MONEY COMING FROM? BEING CLEAR THAT IT'S AN ESCROW WHERE THAT MONEY'S BEING HELD UNTIL IT'S COMPLETED, THAT'S VERY, VERY HELPFUL.

THANK YOU. I THINK THAT'S ALL MY QUESTIONS FOR THIS ONE.

>> IS THERE ANYBODY THAT HAS ANY OTHER QUESTIONS FROM? THERE'S NO ACTION TO TAKE ON THIS ITEM, SO WE CAN MOVE TO K2.

[K2. 2025-03-10-R Consider approving a resolution determining costs and calling a public hearing to consider an ordinance levying assessments on property located within the Eastridge Public Improvement District; directing the publication and mailing of notice of such public hearing; and take appropriate action. Presented by Jeff Gulbas.]

>> ITEM K2.

>> THANK YOU, SIR.

>> ITEM K2 2025-03-10-R.

CONSIDER APPROVING A RESOLUTION, DETERMINING COSTS, AND CALLING A PUBLIC HEARING TO CONSIDER AN ORDINANCE, LEVYING ASSESSMENTS ON PROPERTY LOCATED WITHIN THE EAST RIDGE PUBLIC IMPROVEMENT DISTRICT, DIRECTING THE PUBLICATION AND MAILING OF NOTICE OF SUCH PUBLIC HEARING AND TAKE APPROPRIATE ACTION PRESENTED BY JEFF GULBAS.

>> GOOD MORNING. GOOD EVENING. MAYOR AND COUNSEL.

JEFF GULBAS WITH MCCALL PARKERSON, HORTON, WE SERVE AS THE BOND COUNSEL FOR THE CITY, SO WE REPRESENT YOU ALL IN CONNECTION WITH THESE TRANSACTIONS.

THE ITEM BEFORE US IS ITEM 1 UP HERE ON THE SIDE, WE ARE PROPOSED AMENDMENTS TO THE PROJECT AND FINANCE PLAN FOR THE EASTRIDGE TIRZ, WHICH IS TIRZ NUMBER 3, AND CALLING A PUBLIC HEARING.

YOU'VE HEARD A LOT OF BACKGROUND.

[00:35:01]

I ALWAYS WANT TO START WITH A SLIDE EXPLAINING THE DEVELOPMENT.

OBVIOUSLY, WE'RE DEALING WITH EAST RIDGE PUBLIC IMPROVEMENT DISTRICT.

LIKE ALL THE OTHERS, THIS DOES HAVE A TIRZ OVERLAID ON THAT DISTRICT.

WE'VE SOLD BONDS AS YOU HEARD EARLIER ON PHASES 1-3 AND WE DO HAVE A PROPOSED BOND SALE IN TWO WEEKS FOR PHASE 4.

YOU'VE HEARD IN PRIOR MEETINGS WHAT THE PURPOSE FOR THESE TIRZ ARE.

TIRZ CAN BE USED FOR A NUMBER OF THINGS IN THE STATE OF TEXAS.

IN PRINCETON, WHICH IS SIMILAR TO OTHER MUNICIPALITIES, THE INCREMENT THAT IS GENERATED AS THAT DEVELOPMENT COMES IN THE TIRZ IS USED TO PAY DOWN THE ASSESSMENTS.

THAT'S WHAT MR. SABONIS WAS REFERRING TO EARLIER, THAT THAT 45% REVENUE THAT'S ATTRIBUTABLE TO THE INCREASED GROWTH IS USED TO KEEP THOSE ASSESSMENTS DOWN.

THE PURPOSE FOR THAT IS TO STRIVE TO KEEP THE ASSESSMENTS LEVEL INCOMMENSURATE WITH SIMILAR DEVELOPMENTS.

AGAIN, WE'VE CREATED THE TIRZ OVER EASTRIDGE AS EACH NEW PHASE COMES ONLINE.

A SUB-ZONE IS CREATED OVER THAT IMPROVEMENT AREA.

WE'RE DEALING WITH IMPROVEMENT AREA 4 HERE, WHICH WILL BE THE FOURTH SUB-ZONE WITHIN THAT.

AS FAR AS THE LEGAL PROCESS, WE DO HAVE REPRESENTATIVES FROM THIRTY360, WHICH IS THE CITY'S PID ADMINISTRATOR.

THE LEGAL PROCESS ON THIS IS REALLY FAIRLY STRAIGHTFORWARD.

THIS RESOLUTION IS CALLING A PUBLIC HEARING, WHICH IS SCHEDULED FOR THE 24TH.

I'VE ALREADY WORKED WITH CITY SECRETARY'S OFFICE TO MAKE SURE THAT THAT NOTICE IS GIVEN BY THE TIME REQUIRED.

UNDER THE TIRZ STATUTE, SO THAT WE'LL BE GOING OUT THIS THURSDAY.

AGAIN, THE PRELIMINARY PLAN THAT IS IN YOUR AGENDA PACKETS, THESE ARE VERY COMPLEX DOCUMENTS, THEY'RE VERY DETAILED DOCUMENTS, BUT IT IS SIMPLY TO LET THE PUBLIC KNOW SEE THEM IN ADVANCE, SO WE WILL BE BACK ON THE 24TH TO ASK FOR FORMAL APPROVAL BY BOTH THE TIRZ BOARD, AS WELL AS THE CITY COUNCIL.

THAT IS THE END OF THAT SLIDE.

THAT EXPLAINS THE LEGAL PROCESS.

LIKE I SAID, IF YOU HAVE DETAILED QUESTIONS ON THE PLANS THEMSELVES ON THE TIRZ, MITCH MOSES BEN WITH THIRTY360 IS HERE THIS EVENING AS WELL.

>> THIS IS PROBABLY THE TOUGH QUESTION FOR THE ROOM, BUT I THINK IT'S THE ONE THAT THE PEOPLE WANT TO HEAR.

THESE PIDS, WE SAY THAT WE'RE ABOUT TO HAVE A PUBLIC HEARING.

BUT WHAT REALLY IS THE OPTION HERE BECAUSE TO MY UNDERSTANDING, WHEN THESE AGREEMENTS WERE MADE, IS THERE REALLY A VOTE TO BE HAVING HERE?

>> YES, MA'AM. THERE IS.

THE PUBLIC HEARING IS TO COMPLY WITH THE LAW.

WE'RE REQUIRED TO HAVE A PUBLIC HEARING.

WE'RE REQUIRED TO GIVE SEVEN DAYS NOTICE.

WE HAVE THE COUNCIL AUTHORIZE, WHICH REALLY ALL IT SAYS IS AUTHORIZE THE GIVING OF THAT PUBLIC HEARING.

ABSOLUTELY, THE PUBLIC HEARING WILL BE HELD, AND YOU WILL BE GIVEN THE OPPORTUNITY TO VOTE ON THOSE ITEMS ON THE 24TH, WHICH IS PROCEED WITH THIS TIRZ DEVELOPMENT AND PROCEED WITH THE LEVY OF ASSESSMENT.

>> HYPOTHETICALLY, IF THE PEOPLE VOICE THAT THEY DON'T WANT IT, AND IT DOESN'T HAPPEN, WHAT ARE THE REPERCUSSIONS OF THAT?

>> SURE. YOU WOULD LOOK BACK TO THE DEVELOPMENT AGREEMENT AND THOSE DEVELOPMENT AGREEMENTS, OBVIOUSLY, THE ISSUANCE OF BONDS IS IN THE LEGISLATIVE DISCRETION OF Y'ALL.

ONE COUNCIL THAT APPROVE SOMETHING CAN'T BIND FUTURE COUNCILS.

THAT'S A BASIC TENET IN TEXAS LAW.

YOU ABSOLUTELY HAVE THE LEGISLATIVE DISCRETION TO NOT MOVE FORWARD.

OBVIOUSLY, THE NEXT QUESTION BECOMES, WHAT ARE THE LEGAL RAMIFICATIONS? DEVELOPER IS NOT GOING TO BE HAPPY, BUT THE DEVELOPERS STILL HAVE THE OPTION TO BE REPAID FOR THEIR COSTS OF DEVELOPMENT OVER A PERIOD OF TIME.

THE PIDS IN THE PID STATUTE HAS EVOLVED OVER TIME.

WE USED TO DO WHAT WERE SIMPLE REIMBURSEMENTS, WHERE DEVELOPERS WOULD LEVY ASSESSMENTS AND THEY WOULD BE PAID OVER 30 YEAR PERIOD FOR THE IMPROVEMENTS THAT THEY CONSTRUCTED.

OBVIOUSLY, WITH REALLY LOW INTEREST RATES, THE ABILITY TO GET MONEY UP FRONT, THE PREFERENCE WOULD BE TO ISSUE BONDS AND BE ABLE TO GET THAT MONEY AT THE OUTSET.

NOT MY PREFERENCE, BUT I'M JUST EXPLAINING THE OPTIONS.

>> NO. I UNDERSTAND.

I JUST KNOW THAT THERE HAS BEEN SOME PUBLIC COMMENTARY ABOUT PIDS, AND SO I JUST WANTED TO SEE WHAT WOULD HAPPEN HYPOTHETICALLY, IF THAT DID GET TURNED DOWN, WHAT MURKY WATERS THAT WOULD LOOK LIKE BECAUSE I THINK THAT IT'S SOMETHING THAT PEOPLE NEED TO KNOW BOTH OUTCOMES, AND IT NEEDS, WITH THE TRANSPARENCY, IF WE SAY YES, IF WE SAY NO, WHAT HAPPENS IN BOTH SCENARIOS SO THAT WHEN WE MAKE OUR DECISION, BECAUSE WE ALL KNOW THEY'RE GOING TO BE OUT THERE ON FACEBOOK,

[00:40:02]

AND WE WANT THEM TO HAVE ALL THAT INFORMATION TO UNDERSTAND WHY WE'RE VOTING THE WAY THAT WE VOTE.

>> YES, MA'AM. I WOULD SAY, THAT'S CERTAINLY, LIKE I SAID, IN YOU ALL'S DISCRETION AS A GOVERNING BODY, BE A GOOD CONVERSATION WITH CITY ATTORNEY AND MYSELF, IF YOU WANT TO KNOW HAVE THOSE, OBVIOUSLY, THERE ARE RAMIFICATIONS FOR THOSE DECISIONS.

BUT WHAT THOSE ARE.

I COULDN'T TELL YOU OFF THE TOP OF MY HEAD YOU'LL HAVE MANY DEVELOPMENT AGREEMENTS, AND THEY ALL ARE A LITTLE BIT DIFFERENT HERE AND THERE.

BUT AGAIN, WE ALWAYS MAKE SURE WHEN THOSE DEVELOPMENT AGREEMENTS ARE BEING PREPARED, THAT THE DEVELOPER IN THE CITIES UNDERSTAND THAT THIS IS ALL DEPENDENT ON FUTURE COUNSEL'S WILLS AND FUTURE COUNSEL DESIRES.

WE DON'T EVER COMMIT AND SAY THE CITY SHALL OR WILL OR COMMIT TO DOING SOMETHING.

>> THANK YOU.

>> YES, MA'AM.

>> YOUR HONOR, IF THERE'S NOTHING ELSE, I'D LIKE TO MAKE A MOTION TO APPROVE ITEM K2.

2025-03-10-R, APPROVED OF A RESOLUTION DETERMINING COSTS AND CALLING FOR A PUBLIC HEARING.

>> I'LL SECOND THAT.

>> I HAVE THE ROLL CALL. MISS DAVIS GRACE?

>> MOTION PASSES. THAT TAKE US TO K3.

[K3. 2025-03-10-R02 Consider approving a resolution proposing amendments to the project plan and financing plan for Reinvestment Zone Number Three, City of Princeton, Texas; calling a public hearing; providing an effective date; and resolving other matters related thereto; and take appropriate action. Presented by Jeff Gulbas.]

>> ITEM K3.2025-03-10-R-02.

CONSIDER APPROVING A RESOLUTION, PROPOSING AMENDMENTS TO THE PROJECT PLAN AND FINANCING PLAN FOR REINVESTMENT ZONE NUMBER 3, CITY OF PRINCETON, TEXAS, CALLING A PUBLIC HEARING, PROVIDING AN EFFECTIVE DATE, AND RESOLVING OTHER MATTERS RELATED THERE TO AND TAKE APPROPRIATE ACTION, PRESENTED BY JEFF GULBAS.

>> GOOD EVENING AGAIN. I WAS ASKING THE CITY ATTORNEY BECAUSE WHILE I HAVE A COMMON PRESENTATION, SO IT COVERS EVERYTHING, MY PRIOR CONVERSATION WAS REALLY RELATED TO THE TIRZ.

BUT AGAIN, SINCE IT WAS ALL ON THE SLIDES AND I COVERED IT, AS WELL, ARE YOU GOOD WITH THAT? I GUESS THE MEMO AND THE DOCUMENTS ARE UP THERE.

I JUST WANT TO BE CLEAR THAT EVERYTHING I EXPLAINED IS ACTUALLY RELATED TO THIS ITEM.

BUT EVERYTHING I'M GOING TO SAY WAS ALSO ON THAT SLIDE AND IN THAT MEMO. IS THAT OKAY? AGAIN, NOW WE ARE, WHICH I WENT THROUGH EARLIER DISCUSSING THE FINANCING PLAN. I JUST WANT TO BE CLEAR.

BOTH OF THESE ACTION ITEMS, WE'RE GOING TO HAVE THESE NEXT ON WESTRIDGE RELATE TO THE GIVING OF NOTICE OF A PUBLIC HEARING.

WE GIVE NOTICE OF TIRZ PLAN AMENDMENTS, WHICH IS THE TIRZ HAS DISCUSSED.

AS YOU HEARD FROM MR. SABONIS EARLIER, WE ARE ALSO GIVING NOTICE OF A PUBLIC HEARING ON THE LEVELING OF ASSESSMENTS.

BOTH OF THOSE PUBLIC HEARINGS WILL BE HELD ON THE 24TH.

AT THAT MEETING, YOU WILL BE PRESENTED WITH AN ITEM TO APPROVE THE PRELIMINARY PLANS, WHICH ARE IN YOUR AGENDA PACKET THIS EVENING.

YOU'LL ALSO BE GIVEN AN AGENDA ITEM TO APPROVE THE ASSESSMENT ROLES, WHICH ARE ALSO IN YOUR AGENDA PACKET THIS EVENING IN PRELIMINARY FORM AND THEN WE'LL BE BACK ON THE 24TH ON A BOND SALE WITH A BOND ORDINANCE AND QUITE A BIT MORE DETAIL THAT GOES WITH THAT.

I APOLOGIZE FOR MY DISCUSSION ON MIXING THEM UP, BUT IF YOU HAVE ANY QUESTIONS, PLEASE LET ME KNOW.

>> CAN WE GO AHEAD AND MOTION?

>> YEAH.

>> MOTION TO APPROVE?

>> I SECOND.

>> LET'S DO ROLL CALL. MISS DAVIS GRACE?

>> MOTION PASSES. THAT WILL TAKE US TO K4.

[K4. 2025-073 Discussion and presentation of a Summary of the Approved and Created Westridge Public Improvement District and Plan of Finance for the Issuance of Improvement Area #1 Special Assessment Revenue Bonds, Series 2025. Presentation by Jim Sabonis with Hilltop Securities.]

>> ITEM K4.2025-073, DISCUSSION AND PRESENTATION OF A SUMMARY OF THE APPROVED AND CREATED WESTRIDGE PUBLIC IMPROVEMENT AND PLAN OF FINANCE FOR THE ISSUANCE OF IMPROVEMENT AREA ONE SPECIAL ASSESSMENT REVENUE BONDS SERIES 2025, PRESENTATION BY JIM SABONIS WITH HILLTOP SECURITIES.

>> GOOD EVENING, MAYOR, COUNCIL MEMBERS, JIM SABONIS WITH HILLTOP.

WESTRIDGE PUBLIC IMPROVEMENT DISTRICT IS A PROJECT THAT WAS CONCEIVED ABOUT THE SAME TIME THAT EASTRIDGE WAS PUT IN PLACE.

IN FACT, THERE'S THREE PROJECTS, AND THE PROPERTIES WERE ALL PRETTY MUCH ADJACENT TO EACH OTHER.

[00:45:03]

WESTRIDGE, SOUTHRIDGE, AND EASTRIDGE.

THIS DEVELOPMENT AGREEMENT WAS APPROVED IN DECEMBER OF 2020.

IT ACTUALLY HAS THE SAME EXACT TERMS AND CONDITIONS AS EASTRIDGE, BUT IN THE PHASE 1 IMPROVEMENT AREA, THIS WILL BE THE FIRST ISSUANCE WHERE THEY HAVE.

THE ACTUAL PID WAS CREATED IN APRIL OF 2022.

IF YOU GO TO THE NEXT PAGE, PLEASE, WESTRIDGE OVERALL IS 252 ACRES, AND IT WILL ULTIMATELY HAVE 1,101 HOMES, JUST UNDER HALF A BILLION IN TAX ASSESSED VALUE AT BUILDOUT, $2 MILLION OF TAXABLE ASSESSED VALUE AT THE CURRENT VALOREM TAX RATE.

IT ALSO HAS AN 80% MAXIMUM TAX EQUIVALENT ASSESSMENT RATE WITH THE SAME TERMS AND CONDITIONS OF 45% TIRZ CONTRIBUTION TO PAY DOWN THAT 80 CENT TAX RATE TO JUST UNDER $0.60.

IT ALSO HAS A $1,800 PID FEE TO BE PAID TO THE CITY AT THE CLOSING OF EACH PHASE OF ISSUANCE.

OVERALL, IT GENERATE ABOUT $2 MILLION IN PID FEES.

PHASE 1 REPRESENTS A 271 LOTS.

IN THIS DEVELOPMENT, UNIQUELY, IT'S INTERESTING THE AVERAGE HOME PRICE IS SLIGHTLY HIGHER THAN IN EASTRIDGE.

THE TOTAL 271 HOME WILL HAVE A BUILDOUT OF JUST UNDER $120 MILLION, GENERATING ABOUT OVER $500,000 AFTER THE TIRZ AMOUNT, ABOUT $288,000 FOR THE PROJECT.

JUST AS A SIDE ISSUE, THE LAST ITEM, THERE WERE TWO ITEMS THAT FOLLOWED UP, AND I WANT TO EXPLAIN IT, AND I'LL USE IT IN THE CONTEXT OF THIS AND THAT WHEN THERE'S A PID, WE LEVY THE ASSESSMENTS, AND WE INDICATE THAT THERE'S A TIRZ OFFSET.

THERE HAS TO BE A TIRZ PLAN PUT IN PLACE.

THE TIRZ PLAN ACTUALLY ALMOST IDENTICAL CAPITAL ITEMS THAT ARE IN THE PID PLAN THAT ALLOWS THE MONEY GENERATED BY THAT TIRZ TO REDUCE THE PID ASSESSMENTS.

WHAT TAKES PLACE IS THAT EARLY ON, WHEN WE HAD THESE LARGE PROJECTS, WE SPENT A LOT OF TIME TALKING WITH GRANT AND JEFF ABOUT WHAT'S THE EFFICIENT WAY TO DO A TIRZ, AND THE THOUGHT WAS THERE WERE SOME PREVIOUS OR OTHER COMMUNITIES THAT MIGHT HAVE HAD A TIRZ PER PHASE, WHICH MEANT THAT YOU MIGHT HAVE EIGHT OR NINE TIRZ BOARD MEETINGS.

EVERYONE HAD A DIFFERENT TIRZ BOARD, AND WE FOUND THAT IT WAS MORE EFFICIENT IF YOU HAD ONE TIRZ FOR EACH PROJECT, AND THEN YOU JUST MODIFIED THE TIRZ PLAN OF THAT PROJECT FOR THE NEXT PHASE.

WHY THAT WAS IMPORTANT IS THAT THE FIRST PHASE IS DONE AND IT HAS A 30 YEAR LIFE, THAT TIRZ OVER THAT FIRST PHASE HAS A 30 YEAR LIFE.

FOUR YEARS LATER, THEY COME AND DO THE SECOND PHASE.

IT WILL HAVE A 30 YEAR LIFE, BUT THE FIRST PHASE TIRZ WILL EXPIRE WHILE THAT TIRZ IS IN PLACE.

WE DIDN'T WANT TO HAVE AN OVERLAPPING WHERE THEY ALL HAD SOME PID BONDS WERE PAID OFF.

THAT TIRZ WAS STILL PUT IN PLACE.

THIS IS THIS PROJECT IF WE GO TO THE NEXT PAGE ON THE PRESENTATION, PLEASE.

YOU'LL HAVE THE PRELIMINARY PLAN THAT YOU'LL CALL THE PUBLIC HEARING, AND THEN WHAT WILL TAKE PLACE WILL BE THAT THE PUBLIC HEARING SCHEDULED FOR THE MARCH 24TH, AT WHICH TIME WE'VE HAD PRICE THE BONDS AND PRESENT THE FINAL SERVICE ASSESSMENT PLAN, LEVY ASSESSMENTS, AND IF COUNSEL AGREES, ISSUE THE BONDS, AFTER REVIEW AND APPROVAL BY THE ATTORNEY GENERAL.

APRIL 22ND IS ANTICIPATED CLOSE AND THE PAYMENT OF THE PID FEE.

IF WE GO TO THE NEXT PAGE, PLEASE.

THIS PROJECT IS SIMILAR IN SIZE.

IT'S ABOUT 11.8 MILLION OF PID BONDS FUNDING, ABOUT 9.6 MILLION OF PROJECT FUNDS.

AGAIN, WE HAVE CAPITALIZED INTEREST FOR ONE YEAR UNTIL.

THE WAY WE SIZE CAPITALIZED INTEREST, IT'S REALLY AN OFFSET WHEN YOU THINK ABOUT IT, IF WE DID HAVE CAPITALIZED INTEREST, THE BOND PROJECT FUND WOULD HAVE MORE MONEY, BUT WE ACTUALLY TO ENSURE THE CREDIT QUALITY, WE HAVE CAPITALIZED INTEREST UNTIL WE THINK THE FIRST THIRD PARTY OWNERS WILL TAKE OWNERSHIP OF THE PROJECT, BUT WHAT WE DON'T WANT TO DO IS HAVE CAPITALIZED INTEREST AFTER THE FIRST THIRD PARTY BECAUSE IT'S REALLY IMPORTANT THAT AT THE TIME THE FIRST THIRD PARTY TAKES OWNERSHIP, THEY RECEIVED THE NOTIFICATION OF THE FIRST ASSESSMENT LEVY.

WE WOULDN'T WANT TO BE A SITUATION WHERE SOMEONE OWNED A HOME,

[00:50:04]

AND THERE WAS CAPITALIZED INTEREST FOR A YEAR.

THEY DIDN'T HAVE A LEVY, THEN SECOND YEAR, THEY SAW THAT LEVY, SO IT HAS TO BE INDICATED THAT WAY.

AGAIN, IN THIS CASE, IT'S A 30-YEAR FINANCING.

AVERAGE COUPON, WE EXPECT ABOUT 5.8% FOR TOTAL PNI ABOUT 25 MILLION, 830,000 ANNUAL PRINCIPAL INTEREST PAYMENT ON A PER PARCEL BASIS, ABOUT $3,066.

THE AVERAGE LIEN, WHICH IS THE PER AMOUNT OF BONDS DIVIDED BY THE PARCEL WILL BE ABOUT 43,000, SLIGHTLY HIGHER THAN EASTRIDGE, AND IT REPRESENTS THE SLIGHTLY HIGHER HOME VALUES.

IF YOU GO TO THE NEXT PAGE, YOU'LL SEE THAT.

THESE HOMES ESTIMATED A RANGE FROM 415,000-565,000.

THEY ALL HAVE THE TARGETED NET ASSESSOR RATE OF 0.60150 CENTS, BUT AS THEIR VALUE OF THE HOMES ARE DIFFERENT, THE ACTUAL ASSESSMENT, NET ASSESSMENT, AND GROSS ASSESSMENTS WILL BE DIFFERENT.

THE GROSS ASSESSMENT WILL RANGE FROM $3,317-4,515.

THE TIRZ OFFSET, AGAIN, WILL BE A PRORATA BASED ON THE HOME VALUE, ENDING UP WITH THE NET ASSESSMENT RANGING FROM $2,496-$3,098, ALL OF THEM BASED ON TARGET HOME PRICE AT ABOUT 0.601 CENTS.

[NOISE] THE TOTAL NET ASSESSMENTS PAID OUT WILL RANGE FROM ABOUT 75,000-102,000.

AGAIN, CISCALLY, VERY SIMILAR TO WHAT IS EASTRIDGE.

THE ASSESSMENT LIEN PER LOT WILL RANGE FROM $41,000-56,000 IN THE AVERAGE FINANCING, THE FINISHED LOT VALUE WILL BE ABOUT TWO TIMES WHAT THE NET ASSESSMENT WOULD BE.

AGAIN, THIS PROJECT IS ABOUT ADJACENT TO EASTRIDGE.

AGAIN, THIS IS CONSISTENT WITH DEVELOPMENT AGREEMENTS.

YOU CAN SEE STATISTICALLY, VERY SIMILAR TO EASTRIDGE.

THE DEVELOPMENT AGREEMENTS WERE ALMOST IDENTICAL.

THE STRUCTURE, WE BELIEVE IS THE MOST CREDIT WORTHY STRUCTURE WE'RE AWARE OF THAT CAN BE DONE FOR THE CITY, [NOISE] AND WE EXPECT EFFICIENT EXECUTION OF THIS TRANSACTION.

WITH THAT, THAT CONCLUDES MY COMMENTS.

CAN I ANSWER ANY QUESTIONS ON THIS TRANSACTION.

AGAIN, AS COUNCIL MEMBER ASKED, WHEN WE CLOSE THE MONEY WILL GO INTO ESCROW, THE PROPOSED PUBLIC IMPROVEMENTS THAT HAVE TO BE BUILT AS DESIGNED BY THE CITY, INSPECTED BY CITY AND ACCEPTED BY CITY.

APPROPRIATE COSTS BEFORE MONEY GETS RELEASED OUT OF THE ESCROW FUND TO REIMBURSE FOR THOSE PUBLIC IMPROVEMENTS.

>> FIRST, THE DEVELOPERS ARE HERE.

I JUST WANT TO SAY THAT FOR A HOUSE THAT'S OVER $0.5 MILLION AND ABOUT 18% OF THAT IS GOING TO BE WHAT THEY'RE GOING TO BE PAYING FOR THIS IN THE TIRZ.

I REALLY HOPE THAT THESE HOUSES ARE LIKE KNOCKOUT BECAUSE THEY'RE GOING TO BE PAYING IN THE END $600,000 FOR THESE HOMES.

I WAS JUST GOING TO PUT THAT OUT THERE.

I HAVE HIGH EXPECTATIONS FOR THESE $0.5 MILLION HOUSES WE'RE GOING TO BE BUILDING.

NEXT, I DO HAVE A QUESTION FOR YOU.

THE MEMORANDUM THAT YOU PROVIDED FOR K1 AND K4 ARE DIFFERENT IN THE SENSE THAT K1 IS PRETTY CLEAR, BUT IN K4, THE CITY EXPLAINED IT, BUT THE VERBIAGE ON HERE IS STILL QUESTIONABLE.

IT STATES AT THE TOP THAT WE'RE GETTING A ONE TIME PID FEE OF THE 1,800 PER SINGLE FAMILY FOR $1,981,000, AND THEN AT THE END, IT SAYS, WE'RE GETTING 487,800.

IT'S STATING TWO SEPARATE ONE TIME PID FEES BEING PAID TO THE CITY ON THIS DOCUMENT, BUT YOUR PRESENTATION SHOWS THE 487,800 THERE.

>> I APOLOGIZE THAT WASN'T ARTICULATE.

I APPRECIATE YOU POINTING IT OUT.

IN TOTAL ON ALL THE PROJECTS, 02,100 HOMES, THE PID FEE, IN THIS CASE, TOTAL WILL BE THE 1,981,000 ON PHASE 1, THAT WOULD BE THE REDUCED NUMBER BECAUSE WE'RE ONLY FUNDING THE 271 HOMES.

IT'S ABOUT ONE QUARTER OF THE TOTAL FEE BECAUSE PID FEES GET

[00:55:04]

PAID BY THE DEVELOPMENT AGREEMENT TERMS AT THE TIME OF THE ISSUES BOND ON THAT FACE. I APOLOGIZE FOR THAT.

>> SO IT'S NOT A ONE TIME FEE OF THAT.

IS THERE ANY WAY TO GET A CORRECTED VERSION WHERE IT'S NOT SAYING WE'RE GETTING THIS ONE TIME FEE OF $1,000,000?

>> I'LL SUBMIT ONE TO STAFF.

IT'S CLEAR LANGUAGE REFLECTING THE LANGUAGE I USED IN THE PREVIOUS DOCUMENT.

>> THANK YOU SO MUCH.

>> IF THERE'S NO MORE QUESTIONS, WE WILL MOVE ON.

THERE'S NO ACTION TO TAKE ON THIS ITEM.

>> ITEM K5.

[K5. 2025-03-10-R03 Consider approving a resolution determining costs and calling a public hearing to consider an ordinance levying assessments on property located within the Westridge Public Improvement District; directing the publication and mailing of notice of such public hearing; and take appropriate action. Presented by Jeff Gulbas.]

2025-03-10-R03, CONSIDER APPROVING A RESOLUTION, DETERMINING COSTS, AND CALLING A PUBLIC HEARING TO CONSIDER AN ORDINANCE, LEVYING ASSESSMENTS ON PROPERTY LOCATED WITHIN THE WESTRIDGE PUBLIC IMPROVEMENT DISTRICT, DIRECTING THE PUBLICATION AND MAILING OF NOTICE OF SUCH PUBLIC HEARING AND TAKE APPROPRIATE ACTION, PRESENTED BY JEFF GULBAS.

>> GOOD EVENING AGAIN, MAYOR AND COUNCIL.

I'M GOING TO THANK YOU.

AMBERS, ONE STEP AHEAD OF ME TO MAKE SURE I GET THE RIGHT SLIDE.

THIS ITEM IS FOR ALL INTENTS AND PURPOSES IDENTICAL TO THE PROCESS THAT WE DID EARLIER FOR EASTRIDGE.

NOW WE ARE ON WESTRIDGE.

FROM A LEGAL PERSPECTIVE, WHAT THIS ORDINANCE DOES IS AUTHORIZE PUBLICATION OF NOTICE THAT THE COUNCIL WILL HOLD A PUBLIC HEARING ON MARCH 24TH, WHERE YOU ALL WILL CONSIDER THE LEVY OF ASSESSMENTS AS DISCUSSED BY MR. SABONIS.

IN YOUR AGENDA PACKET, WE ALWAYS WANT TO PROVIDE THE PRELIMINARY SERVICE AND ASSESSMENT PLAN.

AS YOU'VE HEARD, THOSE ARE VERY CRITICAL AND GUIDING DOCUMENTS FOR EACH IMPROVEMENT DISTRICT.

THOSE WILL BE FINALIZED ONCE BONDS ARE SOLD AND BROUGHT TO COUNCIL ON THE 24TH.

AGAIN, THIS ORDINANCE WILL PUBLISH NOTICE OF THE PUBLIC HEARING TO BE CONDUCTED ON THE 24TH.

>> YOUR HONOR, IF THERE'S NO QUESTIONS, I'LL MAKE A MOTION TO APPROVE ITEM K5.

2025-03-10-R03, APPROVING THE RESOLUTION, DETERMINING COSTS AND CALLING FOR A PUBLIC HEARING TO CONSIDER ORDINANCE LEAVING ASSESSMENTS ON PROPERTY LOCATED WITHIN THE WESTRIDGE PUBLIC IMPROVEMENT DISTRICT.

>> I SECOND.

>> LET'S TAKE ROLL CALL. MISS DAVID GRACE?

>> AYE. MOTION PASSES. THANK YOU.

THANK YOU. THAT'LL TAKE US TO K6

[K6. 2025-03-10-R01 Consider approving a resolution for a preliminary project plan and financing plan for Reinvestment Zone Number Seven, City of Princeton, Texas, and establishing the boundaries of such Zone Number Seven; calling a public hearing with regard to the creation of such zone; providing an effective date; and resolving other matters related thereto; and take appropriate action. Presented by Jeff Gulbas.]

>> K6. 2025-03-10-R01, CONSIDER APPROVING A RESOLUTION FOR A PRELIMINARY PROJECT PLAN AND FINANCING PLAN FOR REINVESTMENT ZONE NUMBER 7, CITY OF PRINCETON, TEXAS, AND ESTABLISHING THE BOUNDARIES OF SUCH ZONE NUMBER 7, CALLING A PUBLIC HEARING WITH REGARD TO THE CREATION OF SUCH ZONE, PROVIDING AN EFFECTIVE DATE AND RESOLVING OTHER MATTERS RELATED THERE TO AND TAKE APPROPRIATE ACTION PRESENTED BY MR. JEFF GULBAS.

>> EVENING AGAIN, SAME CONCEPT, SLIGHTLY DIFFERENT.

THIS IS WE'RE DEALING AGAIN WITH THE WESTRIDGE, PUBLIC IMPROVEMENT DISTRICT.

UNLIKE THE OTHERS, THIS IS ACTUALLY FOR THE CREATION OF A TAX INCREMENT REINVESTMENT ZONE.

ALL OF THE OTHERS, INCLUDING THE ITEM ON EASTRIDGE TONIGHT, DEALT WITH AN EXISTING REINVESTMENT ZONE.

BONDS HAVE NEVER BEEN SOLD FOR WESTRIDGE.

ON THE 24TH OF MARCH, ITEMS WILL BE BROUGHT BEFORE YOU TO CONSIDER THE SALE OF THE INITIAL BONDS FOR WESTRIDGE, WHICH IS GOING TO DEAL WITH THEIR FIRST IMPROVEMENT AREA, WHICH IS IMPROVEMENT AREA NUMBER 1.

LIKE THE OTHERS, A TAX INCUMBENT REINVESTMENT ZONE IS PROPOSED TO BE CREATED TO OVERLAY THIS DISTRICT.

AGAIN, THE PURPOSE OF THE OVERLAY IS TO BUY DOWN THE ASSESSMENTS, AS I'VE EXPLAINED.

IN YOUR AGENDA PACKET IS PRELIMINARY PROJECT AND FINANCING PLANS.

LIKE THE SAPS, THESE ARE THE GUIDING DOCUMENTS.

THESE ARE VERY IMPORTANT TO EXPLAIN HOW ALL OF THIS IS GOING TO WORK, AND THEN ON THE 24TH, THE COUNCIL WILL BE PRESENTED WITH AN ORDINANCE TO FORMALLY CREATE THAT ZONE, DESIGNATE THE BOUNDARIES OF THAT ZONE TO BE CO TERMINUS WITH WESTRIDGE IMPROVEMENT DISTRICT.

AGAIN, REPEATING MYSELF, THIS IS JUST AUTHORIZED PUBLICATION OF NOTICE OF THE PUBLIC HEARING FOR THE PUBLIC.

YES, MA'AM. OH, SORRY.

>> I THOUGHT YOU SAID.

>> THERE'S NO QUESTIONS. MOTION TO [INAUDIBLE].

>> YOU CAN MAKE MOTION. DID YOU MAKE A MOTION?

>> I WOULD LIKE TO MAKE A MOTION TO APPROVE ITEM K6 AS SUBMITTED.

[01:00:02]

>> SECOND.

>> LET'S TAKE ROLL CALL. MISS DAVE GRACE?

>> AYE. MOTION PASSES. NOW WILL TAKE US TO K7.

[K7. 2025-077 Discuss and consider issuing a Request for Qualifications (RFQ) for forensic auditing services; and take appropriate action.]

>> ITEM K7.

2025-077, DISCUSS AND CONSIDER ISSUING A REQUEST FOR QUALIFICATIONS FOR FORENSIC AUDITING SERVICES AND TAKE APPROPRIATE ACTION.

>> THIS WAS BROUGHT BACK BEFORE COUNCIL, JUST BECAUSE AT THE LAST MEETING, IT STILL WASN'T CLEAR ON WHAT WE WAS REQUESTING.

I WANT TO JUST PUT OUT THERE THAT WE'RE ONLY REQUESTING THE FORENSIC AUDIT FOR THE COMMUNITY CENTER, BETWEEN THE TIME OF CONCEPTION TO THE LAST ACTIVITY, WHICH WAS 2022, I BELIEVE.

I JUST WANT TO BE CLEAR ON THAT, AND FOR US TO, I GUESS, MAKE A NEW MOTION WITH THE SCOPE MORE DEFINED.

IF ANYBODY HAVE ANY QUESTIONS OR DISCUSSION, WE CAN.

>> I DO, JUST IF MISS SOPHIE, IF YOU'RE ABLE TO COME UP, PLEASE.

>> WE'VE DISCUSSED THE RFQ FOR THE FORENSIC AUDIT QUITE A BIT.

I KNOW THAT THERE IS IN THE CITY SOME THOUGHT THAT THE COUNCIL IS OPPOSED TO THE FORENSIC AUDIT.

I WOULD LIKE TO REITERATE THAT WE ARE NOT OPPOSED TO THE FORENSIC AUDIT, BUT SPECIFICALLY ME, I AM CONCERNED ABOUT THE RESOURCES THAT WILL BE ALLOCATED.

I AM ALSO CONCERNED ABOUT THE TIME FRAME.

JUST TO CLARIFY AND SO RESIDENTS CAN HAVE A FULL UNDERSTANDING OF WHAT THIS WOULD MEAN OVERALL FOR THE CITY AND THEN ALSO WHAT THE IMPACT THAT IT COULD HAVE IN TERMS OF ACCESS TO RESOURCES, GETTING RESPONSES FROM THE CITY, AND ALSO MAYBE BECAUSE OF THE COST, SINCE THE BUDGET HAS ALREADY BEEN APPROPRIATED, WHAT IT WOULD MEAN IF FUNDS HAVE TO BE TAKEN FROM PROJECTS TO PAY FOR THIS AUDIT, JUST HOW THAT WOULD IMPACT OVERALL THE CITY AND THEN, CONSIDERING, TOO, THAT A FORENSIC AUDIT IS ALMOST JUST TO PUT IT IN LAYMAN'S TERMS, A HARD PULL ON YOUR CREDIT REPORT, AND THEN HOW THAT COULD ALSO HAVE AN IMPACT.

IF YOU WOULD EXPLAIN THOSE, I WOULD REALLY APPRECIATE.

>> SURE, HAPPILY. THAT'S A GREAT QUESTION.

THE FORENSIC AUDIT, AND I THINK I EXPLAINED THIS AT THE TWO MEETINGS AGO, MAYBE, IT'S DIFFERENT THAN THE REGULAR FINANCIAL STATEMENT AUDIT, IN THAT THE FINANCIAL STATEMENT AUDIT IS USUALLY BID AT A FLAT FEE NOT TO EXCEED, AND YOU GET ALL BIDS BASED ON YOUR FUND STRUCTURE, YOUR ACTIVITY, ETC.

A FORENSIC AUDIT IS GENERALLY BID AT AN AMOUNT PER HOUR.

GIVEN THE SCOPE IS JUST RELATIVE TO THE COMMUNITY CENTER FROM 2015-2022, ALTHOUGH IT'S NARROW IN PROJECT SCOPE, THE TIME PERIOD IS STILL VAST.

THAT'S UP IN THE AIR AS TO HOURS THAT FORENSIC AUDITORS MAY PROPOSE IT WOULD TAKE TO DO THE WORK.

I CAN'T SPEAK TO THAT WITH A DEFINITIVE NUMBER.

ADDITIONALLY, ONE THING TO CONSIDER IS ALTHOUGH WE CAN MOVE FORWARD WITH THE RFQ, IF THIS IS ABOUT THE CDC, I BELIEVE THAT THE CDC WOULD HAVE TO AUTHORIZE THE EXPENSE OF THOSE FUNDS FOR THAT PURPOSE.

WE CAN DISCUSS COST.

WHAT WE'LL GET IS POSSIBLY AN ESTIMATE OF HOURS IT WOULD COST, AND THEN A BREAKDOWN OF PRICE BY STAFF LEVEL FOR THE FIRM PROPOSING, AND THEN WE WOULD HAVE A BETTER ESTIMATE OF WHAT IT MIGHT COST TO DO SAID FORENSIC AUDIT, BUT IT'S HARDER TO NARROW DOWN AN EXACT DOLLAR AMOUNT.

>> I WANT TO SAY THAT THE RFQ IS TO GET THESE NUMBERS.

APPROVING THIS DOESN'T MEAN WE'RE DOING AUDIT.

IT'S JUST IT GETS THE PEOPLE HERE TO PRESENT TO US AND WE CAN ASK THESE QUESTIONS ON WHAT COST OR THEY CAN GIVE US AN ESTIMATED COST.

THIS IS TO FIND OUT IF WE WANT TO MOVE FORWARD.

IF IT'S AN AMOUNT THAT WE'RE NOT COMFORTABLE WITH, THEN WE CAN HAVE THAT DISCUSSION THEN, BUT THIS IS TO SATISFY WHAT YOUR CONCERNS ARE.

THEN AT THAT TIME, WE CAN DECIDE TO MOVE FORWARD, AND LIKE SHE SAID, CDC WOULD STILL HAVE TO APPROVE THAT EXPENSES AS WELL.

IT'S STILL QUITE A BIT OF TIME AND STEPS THAT WE STILL HAVE TO TAKE TO GET THIS DONE.

>> I AGREE. I JUST WANT AS WE MOVE FORWARD WITH THE AUDIT TO ALSO EDUCATE RESIDENTS ON

[01:05:06]

THE PROCESS SO WE DO NOT HAVE A DISCONNECT BETWEEN WHAT THE CITY IS DOING, THE INTENT OF THE AUDIT, AND ALSO HOW THAT MIGHT IMPACT CURRENT OPERATIONS.

>> I THINK IT'S IMPORTANT.

>> WHEN IT COMES TO GIVE US THEIR PRESENTATION, WE CAN ASK THEM QUESTIONS AND THEY COULD GIVE US FROM THEIR EXPERIENCE, WHAT IMPACTS THEY'VE SEEN IN THE PAST OR NOT.

I'M NOT SURE HAVE YOU EVER BEEN THROUGH A FOR FORENSIC AUDIT BEFORE.

>> SURE. IT'S SIMILAR IN NATURE TO A FINANCIAL STATEMENT AUDIT, GIVEN THAT USUALLY IT'S MORE NARROW.

GENERALLY, THERE'S MORE INQUISITION.

THERE'S MORE STAFF QUESTIONING PROCESS WALK-THROUGH.

IF WE DON'T HAVE A NARROW SCOPE, THERE'S REALLY NO TELLING WHAT THE PROCEDURES THEY'LL DESIGN TO DETECT POTENTIAL WRONG DOING.

BUT I CAN IMAGINE IT WOULD BE SOMETHING LIKE PULLING INVOICES, PULLING CHECK STUBS, VOUCHING THAT TO OUR ACCOUNTING SYSTEM.

THOSE WOULD BE SOME OF THE PROCEDURES THAT I MIGHT DO, BUT IT WOULD BE UP TO THEIR DISCRETION.

>> I THINK ONE OF HER QUESTIONS WHERE AS FAR AS STAFF, IS THAT SOMETHING THAT'S VERY TIME-CONSUMING FOR I'M GUESSING HOW MANY EMPLOYEES WOULD IT TAKE TO SATISFY.

>> ABSOLUTELY. GENERALLY, OUR NORMAL FINANCIAL STATEMENT AUDIT TAKES A SOLID THREE MONTHS, AND IT TAKES EVERY BIT OF THOSE THREE MONTHS FROM ME CLOSING TO PROVIDING EXPLANATIONS TO THE AUDITORS TO PROVIDING SUPPORTING DOCUMENTS, TO ANSWERING PROCESS QUESTIONS.

THIS WOULD BE JUST SIMILAR IN NATURE TO THAT, I PRESUME.

BUT I DON'T KNOW THEIR PROCEDURES AHEAD OF TIME.

>> I WANT TO SAY, I'VE WITHDRAWN MY REQUEST FOR THE RFQ FOR THE ENGINEERING FORENSIC AUDIT BECAUSE THERE WERE ADDITIONAL PLANS THAT I HAD NOT BEEN GIVEN PREVIOUSLY.

BUT IN MEETING WITH THE CDC AND EDC WITH THE CITY, WE'VE DISCUSSED THAT I CAN REQUEST THESE DOCUMENTS AS A RESIDENT AND NOT AS A COUNCIL MEMBER AND THEN I WILL BE ABLE TO PUT TOGETHER SOMETHING TO PROVIDE THAT TRANSPARENCY A LITTLE BIT USING SOME OF THE PRESENTATIONS AND STUFF THAT ARE PRE-EXISTING THAT THE CDC AND EDC HAVE.

TO HELP EXPLAIN BETTER TO THE PEOPLE WHAT'S GOING ON THERE IN REGARDS TO THAT, WHERE IT WAS, WHERE IT'S AT NOW, TO ENSURE THAT THAT TRANSPARENCY STILL IS OUT THERE, SO WE WILL NOT BE NEEDING FORENSIC ENGINEERING AUDIT.

>> THAT SOUNDS LIKE A GREAT IDEA. I THINK THAT FITS NICELY WITH OUR MAJOR PROJECTS PAGE.

>> I THINK SO TOO.

>> IF ANYBODY ELSE HAS ANY OTHER QUESTIONS, AND JUST REMEMBER, THIS IS TO NARROW THE SCOPE OF IT.

>> THIS IS JUST A GENERAL FORENSIC AUDIT QUESTION.

YOU MENTIONED THAT THEY WOULD PROBABLY LOOK AT THE CHECKS THE CITY WROTE ON BEHALF OF THIS ITEM WE'RE LOOKING AT.

DOES THAT AUDIT GO BEYOND WHERE THOSE CHECKS WENT, WHO CASHED THEM AND THEN WHERE THAT MONEY WENT?

>> I DON'T THINK IT COULD GO ANYWHERE ON THE VENDOR SIDE WITHOUT ACTIVE LITIGATION OR SUBPOENA.

I THINK IT WOULD JUST FOCUS ON THE CITY'S RELATIONSHIP WITH THAT VENDOR, AND THAT WOULD BE THE SCOPE.

I DON'T THINK THAT THEY CAN ASK QUESTIONS TO THE VENDORS.

MAYBE THEY COULD, AND THEY WOULD OBLIGE.

BUT I CAN'T SAY FOR CERTAIN.

I IMAGINE THAT IT WOULD JUST BE THE CITY'S RELATIONSHIP TO PAYMENT TO THOSE VENDORS, WOULD BE THE SCOPE THAT WE'RE ENGAGED IN.

>> THAT'S CORRECT AND BASED ON THE RECORDS THAT THE CITY HAS TOO.

>> I NOTICED IN THIS RFQ, THAT WE CAME UP WITH THE DATES OF 2015-2022.

WOULD YOU JUST GIVE AN EXPLANATION AS TO WHY THAT TIME PERIOD, PLEASE?

>> YES, MA'AM. THE DATES ARE 2015-2022 BECAUSE THE PROPERTY WAS PROCURED IN 2015 INITIALLY.

THAT'S WHEN THE LAND SALE HAPPENED, AND THAT BUILDING WAS PURCHASED.

THEN THE LAST EXPENSE HAPPENED IN FISCAL YEAR 22.

JUST BROADLY FROM OUR PROJECT ACCOUNTING SIDE, LAST EXPENSE WAS IN 2022.

>> THE MAJORITY OF THE EXPENSES HAPPENED IN 2022.

>> '21, '22.

>> THEN MAYOR IS A PART OF THE SCOPE OF THE AUDIT, WHETHER WE WOULD SHORTEN THAT TIME PERIOD, OR WHETHER WE WOULD JUST WANT TO RETAIN THE FULL SCOPE SO WE JUST HAVE A FULL INVENTORY OF WHAT HAS HAPPENED.

>> IT WAS JUST UNTIL THE LAST ACTIVITY ON THE ACCOUNT BECAUSE I THINK THE LAST MEETING, WE WASN'T CLEAR ABOUT WHAT THE SCOPE WAS.

WE JUST LEFT IT OPEN AND THEN AND WE'LL DISCUSS IT.

I JUST WANTED TO BRING IT BACK TO WHAT THAT ORIGINAL RFQ WAS FOR, AND THAT WAS FOR THE COMMUNITY CENTER.

>> FOR THAT TIME.

>> FROM 2015 UNTIL 2022.

[01:10:03]

BUT LIKE I SAID, MAJORITY OF THE ACTIVITY ON THAT BUILDING WAS IN '21, 2022.

>> ANY OTHER QUESTIONS I CAN HELP WITH?

>> DO WE WANT THE AUDIT TO COVER THE MAJORITY OF THE LAST TWO YEARS, THE '21, '22 TIME PERIOD?

>> JUST 2015 FROM THE TIME IT WAS PURCHASED.

>> JUST LEAVE IT.

>> LEAVE IT TO THE LAST ACTIVITY IN 2022.

>> THANKS FOR CLARIFYING.

>> THANK YOU.

>> I ENTERTAIN A MOTION AT THIS TIME.

>> MOTION TO APPROVE? ARE WE ABLE TO APPROVE THAT?

>> WITH THE CONDITIONS. YOU CAN STATE THE CONDITIONS?

>> MOTION TO APPROVE WITH THE CONDITIONS OF THE TIME FRAME BEING 2015-2022 WITH THE SOLE FOCUS ON THE COMMUNITY CENTER.

>> I SECOND.

>> I TAKE A ROLL CALL.

>> MS. DAVID GREAVES.

>> YOUR HONOR, BECAUSE MY NAME IS ON THAT PARTICULAR BUILDING, I'M GOING TO ABSTAIN FROM VOTING ON THIS.

ALTHOUGH IF I WAS VOTING I'D VOTE, YES, BUT I'M ABSTAIN.

>> MR. HAN?

>> YES.

>> MOTION PASSES. THAT WILL TAKE US TO THE K8.

[K8. 2025-076 Presentation and discussion regarding adding the Citizens on Patrol Unit to the Princeton Police Department; and take appropriate action. Presented by Sergeant Trim.]

>> PRESENTATION AND DISCUSSION REGARDING ADDING THE CITIZENS ON PATROL UNIT TO THE PRINCETON POLICE DEPARTMENT AND TAKE APPROPRIATE ACTION PRESENTED BY SERGEANT TRIM AND INTRODUCED BY THE CHIEF JAMES WATERS.

HE MADE ME SAY THAT. [LAUGHTER]

>> MR. MAYOR, CITY COUNCIL MEMBERS.

AS PRESENTED AT OUR LAST CITY COUNCIL MEETING, YOU ALL SAW OUR STATE.

YOU ALL SAW SOME OF THE INCREASE WITHIN EITHER THEFTS OR BURGLARIES OR SOMETHING ALONG THOSE LINES EVEN THOUGH OUR INCREASE IN POPULATION, WE WERE ABLE TO KEEP THE RATIO BELOW THE INCREASE OF POPULATION.

IN OTHER WORDS, IF THE INCREASE OF POPULATION IS ROUGHLY 26%, AS LONG AS WE'RE ABLE TO KEEP THAT 26% RISE IN BURGLARIES BELOW THAT, THAT MEANS WE'RE ACTUALLY WE'RE KNOCKING IT DOWN A LITTLE BIT.

DOES THAT MAKE SENSE? IN OTHER WORDS, IF THE RISING POPULATION IS GOING UP 26%, BUT YET THE RISE IN BURGLARIES AND ALL THAT IS BELOW THE 26% INCREASE.

ACTUALLY, WE'RE MAKING A COMBATIVE EFFORT ON THAT.

BUT ONE THING WE ARE ASKING FOR, WE KNOW THAT MONEY IS TIGHT.

WE KNOW THAT MONEY'S TIGHT EVERYWHERE.

ONE THING WE'RE TRYING TO GET CREATIVE IN HOW WE HANDLE AND LOOK AT CRIME AND ALL THIS OTHER STUFF.

WE'RE LOOKING AT RE-IMPLEMENTING THE CITIZENS ON PATROL UNIT.