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HomeMy WebLinkAboutResolution 2020-026 RESOLUTION NO. 2020-026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS APPROVING THE ANNUAL SERVICE PLAN UPDATE TO THE SERVICE AND ASSESSMENT PLAN, INCLUDING THE ASSESSMENT ROLLS, FOR THE CITY POINT PUBLIC IMPROVEMENT DISTRICT IN ACCORDANCE WITH CHAPTER 372, TEXAS LOCAL GOVERNMENT CODE, AS AMENDED; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on September 9, 2019, after notice and a public hearing in the manner required by law, the City Council (the "City Council") of the City of North Richland Hills, Texas (the "City") passed and approved Resolution No. 2019-035 authorizing the creation of City Point Public Improvement District (the "District") for the City Point project; and WHEREAS, on December 9, 2019, after notice and a public hearing in the manner required by law, the City Council passed Ordinance No. 3625 and Ordinance No. 3626 approving the "City Point Service and Assessment Plan," including the Assessment Rolls attached to the Service and Assessment Plan for Improvement Zone A and Improvement Zone B (the "Assessment Rolls"), dated December 9, 2019 (the "Service and Assessment Plan") and levied the Assessments on property within District in accordance with the Assessment Rolls for the purposes of financing the public improvements (the "Authorized Improvements") undertaken for the benefit of such property; and WHEREAS, Chapter 372, Texas Local Government Code (as amended, the "PID Act") requires the Service and Assessment Plan to be reviewed and updated annually for the purposes of determining the annual budget for the Authorized Improvements; and WHEREAS, the City Council has received the "City Point Public Improvement District 2020 Annual Service Plan Update" (the "Annual Service Plan Update") which includes the updated Assessment Rolls and now desires to proceed with the adoption of this Resolution which approves and adopts the Annual Service Plan Update and updated Assessment Rolls for District as required by the PID Act; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1. Terms. Terms not otherwise defined herein are defined in the Service and Assessment Plan. Section 2. Findings. That the recitals and findings in the Recitals of this Resolution are hereby found and determined to be true and correct and constitute the legislative findings and determinations of the City Council. Section 3. Assessment Plan. The Annual Service Plan Update, including the updated Assessment Rolls contained therein, in the form attached as "Exhibit A" is hereby approved and the same is incorporated as part of this Resolution as if fully set forth in the body of this Resolution. Section 4. Effective Date. This Resolution shall take effect immediately from and after its passage in accordance with applicable law. PASSED AND APPROVED on this 22nd day of June 2020. CITY OF NORTH RICHLAND HILLS By: fr Cyr Scott Turnage, {Mayor Pro Tem ATTEST: odotanwmuillo F,CkICgNO Alicia Richardson, Citr cretary, y 'O •. APPROVED AS TO FORM AND LEGALITY: ji Maleshia B. cGinnis, City Attorney APPROVED AS TO CONTENT: efr milir'l Craig ul•e/Director a Economic Development Exhibit A Annual Service Plan Update [Remainder of page left intentionally blank] Exhibit A J KS Vq X:^ �.t F'. CITY POINT PUBLIC IMPROVEMENT DISTRICT 2020 ANNUAL SERVICE PLAN UPDATE JUNE 22, 2020 INTRODUCTION Capitalized terms used in this Annual Service Plan Update shall have the meanings set forth in the City Point Public Improvement District Service and Assessment Plan (the "SAP"), used for the issuance of PID Bonds. The District was created pursuant to the Act by Resolution No. 2019-035 on September 9, 2019 by the City Council to finance certain Authorized Improvements for the benefit of the property in the District. On December 9, 2019, the City Council approved the SAP for the District by adopting Ordinance No.3625 and Ordinance No.3626,which approved the levy of Assessments for Assessed Property within the District and approved the Assessment Roll. The SAP identified the Authorized Improvements to be provided by the District, the costs of the Authorized Improvements, the indebtedness to be incurred for the Authorized Improvements, and the manner of assessing the property in the District for the costs of the Authorized Improvements. Pursuant to the Act, the SAP must be reviewed and updated annually. This document is the Annual Service Plan Update for 2020. The City Council also adopted an Assessment Roll identifying the Assessments on each Lot within the District, based on the method of assessment identified in the SAP. This Annual Service Plan Update also updates the Assessment Roll for 2020. CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 1 LISTED EVENTS The following listed events have occurred in the District: ■ On February 15, 2020, the City wired $1,361,775 to the Bank of New York Mellon ("BONY") for principal and interest due on the City's Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2010 (the "Certificates").This was the exact amount due, based on an invoice received from BONY on February 12, 2020. On February 27, 2020, BONY informed the City that interest was also due February 15, 2020 on the City's Certificates in the amount of$142,498.75. This amount was not included in any prior invoice from BONY. BONY officials acknowledged that no invoice was sent prior to February 27, 2020 for these funds and that no additional charges were added to the interest payment.The City wired the additional funds to BONY on February 28, 2020. The timing of this interest payment had no effect on taxpayers. Adequate funds were available in the account for all payments due on February 15, 2020. • On June 18, 2019, Megatel Homes, LLC, Megatel Homes II, LLC and Megatel Homes III, LLC (collectively, the "Megatel Homes Parties") filed a lawsuit in Dallas County Texas District Court against various funds and entities associated with and controlled by UDF, various affiliates of CADG owned and controlled by Mehrdad Moayedi (the "Centurion Megatel Defendants"), and various affiliates of Buffington Land Group, Ltd. (the "Buffington Megatel Defendants"). The Megatel Homes Lawsuit alleges that UDF, CADG (and the various Centurion Megatel Defendants) and the Buffington Megatel Defendants were in a de facto partnership under which UDF financed the purchase and development of land to be developed into finished lots by the Centurion Megatel Defendants and the Buffington Megatel Defendants, which finished lots would in turn be purchased from the Centurion Megatel Defendants and the Buffington Megatel Defendants by the Megatel Homes Parties with financing also provided by UDF. The Megatel Homes Lawsuit sets forth five causes of action against various Centurion Megatel Defendants including breach of fiduciary duties, conspiracy to breach fiduciary duties, breach of the duty of good faith and fair dealing, and two counts of breach of contract. Such causes of action are in part based on allegations by the Megatel Parties that(i)various Centurion Megatel Defendants and UDF conspired to cut the Megatel Parties out of partnership projects so that such Centurion Megatel Defendants could liquidate them as unfinished lots to different homebuilders and thereby pay their debts to UDF and (ii) various Centurion Megatel Defendants and UDF pressured the Megatel Parties to release their rights to finished lots that the Megatel Parties were entitled to take down upon issuance of a notice of substantial completion, thereby causing substantial lost profits to the Megatel Parties. The Megatel Homes lawsuit seeks$100 million dollars in damages. - CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 2 PARCEL SUBDIVISION No plats have been filed in the District. LOT AND HOME SALES UPDATE Single Family Tracts Per the Quarterly Reports for Improvement Zone A and Improvement Zone B dated March 31, 2020, the Single Family Tracts are anticipated to be developed into 364 residential Lots. No Lots have been sold to homebuilders, and construction has not started on any homes. See Exhibit B for homebuyer disclosures. Multifamily Tracts Per the Quarterly Report for Improvement Zone B dated March 31, 2020, the Multifamily Tracts are anticipated to be developed into 400 multifamily units. Not Lots have been sold to multifamily builders, and construction has not started on any multifamily units. Commercial Tracts Per the Quarterly Report for Improvement Zone A dated March 31, 2020,the Commercial Tracts are anticipated to be developed into 160,000 square feet of commercial space. No Lots have been sold to commercial builders, and construction has not started on any commercial pads. OUTSTANDING ASSESSMENT Improvement Zone A Improvement Zone A has an outstanding Assessment is$2,615,000.00. Improvement Zone B The Improvement Zone B has an outstanding Assessment of$8,965,000.00. TIRZ ANNUAL CREDIT Improvement Zone A The City Council, in accordance with the TIRZ No. 3 Project Plan, has agreed to use a portion of TIRZ No. 3 Revenues generated (the"Maximum TIRZ No. 3 Annual Credit Amount")to reduce the Improvement Zone A Annual Installment for all Improvement Zone A Assessed Property based on the desire of the City Council to maintain a competitive, composite equivalent ad valorem tax CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 3 rate taking into consideration the tax rates of all applicable taxing units and the equivalent tax rate of the Annual Installments based on assumed buildout values, but in no event shall the Maximum TIRZ No.3 Annual Credit Amount exceed the Improvement Zone AAnnual Installment. The resulting Maximum TIRZ No. 3 Annual Credit Amount for each Lot Type is shown below: Maximum Annual TIRZ Lot Type No.3 Credit' Single Family Tracts Lot Type SF1 $ 195.44 Lot Type SF2 $ 205.55 Lot Type SF3 $ 219.03 Commercial Tracts Lot Type Commercial $ 35,313.80 Notes: 1) Maximum Annual TIRZ No. 3 Credit shown per unit for Single Family Tracts, and per acre for Commercial Tracts. The TIRZ No. 3 Revenues available to be applied to the Improvement Zone A Annual Installment due January 31, 2021 is$0.00. Improvement Zone B Per the SAP, TIRZ No. 3 Revenues shall not be used to reduce the Improvement Zone B Annual Installment. ANNUAL INSTALLMENT DUE 1/31/2021 Improvement Zone A • Principal and Interest — The total principal and interest required for the Annual Installment for Improvement Zone A is$212,106.26. • Additional Interest — Additional Interest is collected to fund the Additional Interest Reserve Account. The Additional Interest Reserve Requirement, as defined in the Improvement Zone A Indenture, is equal to $143,825.00, and has not been met. As such, the Additional Interest Reserve Account will be funded with Additional Interest on the outstanding Assessment, resulting in an Additional Interest for Improvement Zone A of $13,075.00. • Annual Collection Costs—The cost of administering the District and collecting the Annual Installments shall be paid for on a pro rata basis by each Parcel based on the amount of outstanding Assessment remaining on the Parcel. The total Annual Collection Costs budgeted for the Annual Installment for Improvement Zone A is $14,949.31. CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 4 m.roveinent+Zone/Vsu� ,..„ Due January 31, 2021 Principal $ 70,000.00 Interest 142,106.26 Additional Interest 13,075.00 Annual Collection Costs 14,949.31 Total Annual Installment $ 240,130.57 See Exhibit C-1 for the debt service schedule for the Improvement Zone A Bonds as shown in the official statement. Improvement Zone B • Principal and Interest — The total principal and interest required for the Annual Installment for Improvement Zone B is$602,268.76. • Additional Interest — Additional Interest is collected to fund the Additional Interest Reserve Account. The Additional Interest Reserve Requirement, as defined in the Improvement Zone B Indenture, is equal to $493,075.00, and has not been met. As such, the Additional Interest Reserve Account will be funded with Additional Interest on the outstanding Assessment, resulting in an Additional Interest for Improvement Zone B of $44,825.00 • Annual Collection Costs—The cost of administering the District and collecting the Annual Installments shall be paid for on a pro rata basis by each Parcel based on the amount of outstanding Assessment remaining on the Parcel. The total Annual Collection Costs budgeted for the Annual Installment for Improvement Zone B is$51,250.69. fin rovenient Zone B'" Due January 31, 2021 Principal $ 135,000.00 Interest 467,268.76 Additional Interest 44,825.00 Annual Collection Costs 51,250.69 Total Annual Installment $ 698,344.45 See Exhibit C-2 for the debt service schedule for the Improvement Zone B Bonds as shown in the official statement. PREPAYMENT OF ASSESSMENTS IN FULL Improvement Zone A No full prepayments have occurred within Improvement Zone A. Improvement Zone B CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 5 No full prepayments have occurred within Improvement Zone B. PARTIAL PREPAYMENTS OF ASSESSMENTS Improvement Zone A No partial prepayments have occurred within Improvement Zone A. Improvement Zone B No partial prepayments have occurred within Improvement Zone B. BOND FUND P3Works has reviewed the following bond accounts related to the District as of March 31, 2020 and each account contains the amount shown below: Improvement Zone A Account: 3/31/2020 Balance j Pledged Revenue Fund Bond Pledged Revenue Account $0.00 [Bond Fund Capitalized Interest Account $71,285.16 Principal and Interest Account $0.01 Project Fund Improvement Zone A Public Improvements Account $1,804,090.181 Costs of Issuance Account $792.75 Reserve Fund Reserve Account $238,240.09 Additional Interest Reserve Account $13,107.1 Redemption Fund $0.00 Rebate Fund $0.001 Administrative Fund -- District Administration Account mm $13,854.14j CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 6 Improvement Zone B Account: 3/31/2020 Balance f Pledged Revenue Fund Bond Pledged Revenue Account $0.00 Eland Fund — _ Capitalized Interest Account $234,397.32 Principal and Interest Account $0.00 Project Fund improvement Zone A Public Improvem!flAccount_ $6,434,046.34j Costs of Issuance Account $1,474.30 Leserve Fund Reserve Account $617,958.20 Additional Interest Reserve Account $44,935.13 Redemption Fund $0.00 I Rebate Fund _- $0.00; Administrative Fund District Administration Account $47,496.16 I BUDGET FOR CONSTRUCTION OF AUTHORIZED IMPROVEMENTS Per the Quarterly Reports for Improvement Zone and Improvement Zone B dated March 31, 2020, the Authorized Improvements are currently under construction and projected to be completed in the second quarter 2020. The budget for the Authorized Improvements remains unchanged. See below for a table depicting the budgets of Improvement Zone A Projects and Improvement Zone B Projects, and Actual Costs spent to date. Improvement Zonee& Improvement.Zone 13 Authorized Improvements Budget Spent to Date' Budget Spent to Date' Roads $ 879,179.86 $ - $3,122,022.26 $ Water 208,164.32 - 739,204.43 Sanitary Sewer 190,998.27 - 678,246.73 - Storm Drain 201,981.10 - 717,247.40 Landscaping,Entryway,Open Space,and Park Improvements 70,313.26 - 249,686.74 - Soft Costs 473,400.27 224,534.91 1,681,073.73 769,773.52 $2,024,037.08 $ 224,534.91 $7,187,481.29 $ 769,773.52 Notes: 1)Per the Quarterly Reports for Improvement Zone A and Improvement Zone B dated March 31,2020. SERVICE PLAN - FIVE YEAR BUDGET FORECAST The Act requires the annual indebtedness and projected costs for the Authorized Improvements to be reviewed and updated in the Annual Service Plan Update, and the projection shall cover a period of not less than five years. CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 7 Improvement Zone A Annual Installment,Duer; .�,,._ 1731 2021,.;7.u1 31 2022 ;'1 3.•2023` ;1/31/2024=" .' 1 3Y.2025 r� Principal $ 70,000.00 $ 80,000.00 $ 80,000.00 $ 85,000.00 $ 85,000.00 Interest 142,106.26 138,693.76 134,793.76 130,893.76 126,750.00 (1) $212,106.26 $218,693.76 $214,793.76 $215,893.76 $211,750.00 Additional Interest (2) $ 13,075.00 $ 12,725.00 $ 12,325.00 $ 11,925.00 $ 11,500.00 Annual Collection Costs (3) $ 14,949.31 $ 15,107.57 $ 15,226.51 $ 15,343.49 $ 15,438.98 Total Annual Installment Due (4)=(1)+(2)+(3) $240,130.57 $246,526.33 $242,345.27 $243,162.25 $238,688.98 Improvement Zone B (lnnual4Installment Due,- 'e _ . ' i1/31/2021,. .:1/31/2022 1/31/2023 n. .131'2024 1/31/2025 I Principal $ 135,000.00 $ 145,000.00 $ 150,000.00 $ 160,000.00 $ 165,000.00 Interest 467,268.76 461,193.76 454,668.76 447,918.76 440,718.76 (1) $602,268.76 $ 606,193.76 $ 604,668.76 $ 607,918.76 $605,718.76 Additional Interest (2) $ 44,825.00 $ 44,150.00 $ 43,425.00 $ 42,675.00 $ 41,875.00 Annual Collection Costs (3) $ 51,250.69 $ 52,416.43 $ 53,647.97 $ 54,908.48 $ 56,218.03 Total Annual Installment Due (4)=(1)+(2)+(3) $698,344.45 $702,760.19 $701,741.73 $705,502.24 $703,811.79 ASSESSMENT ROLL The list of current Parcels within the District, the corresponding total Assessments, and current Annual Installment are shown on the Assessment Roll attached hereto as Exhibit A-1 and Exhibit A-2 for Improvement Zone A and Improvement Zone B, respectively. The Parcels shown on the Assessment Rolls will receive the bills for the 2020 Annual Installments which will be delinquent if not paid by January 31, 2021. CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 8 EXHIBIT A-1- IMPROVEMENT ZONE A ASSESSMENT ROLL "';" . rlmprovement;Zone kriff Outstanding Annual Installment Parcel Assessment Due 1/31/2021 Single Family Tracts Initial Parcel $ 795,000.00 $ 71,738.58 Commercial Tracts Initial Parcel $ 1,820,000.00 $ 168,391.99 Total $ 2,615,000.00 $ 240,130.57 Notes: For billing purposes, the outstanding Assessments and Annual Installments due January 31, 2021 are allocated pro rata to the Property IDs based on acreage. See the table below for Improvement Zone A Assessment Allocation. • ret,t4C . Improvement°ZonesA4ASSeSSrt^entallOcatlon :,a, Single Family Tracts Initial Parcel Commercial Tracts Initial Parcel Property ID Acreage Allocation% Acreage Allocation 06904297 - 0.00% - 0.00% 41728262 5.90 15.53% - 0.00% 41728297 15.13 39.86% 3.44 72.25% 42553197 5.95 15.67% - 0.00% 42588217 10.99 28.94% 1.32 27.75% Total 37.97 100.00% 4.76 100.00% CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 9 EXHIBIT A-2— IMPROVEMENT ZONE B ASSESSMENT ROLL ..:-` ,, Improvement Zonei6 ;` :7*' Outstanding Annual Installment Parcel Assessment Due 1/31/2021 Single Family Tracts Initial Parcel $ 5,905,000.00 $ 461,038.69 Multifamily Tracts Initial Parcel $ 3,060,000.00 $ 237,305.76 Total $ 8,965,000.00 $ 698,344.45 Notes: For billing purposes, the outstanding Assessments and Annual Installments due January 31, 2021 are allocated pro rata to the Property Ds based on acreage. See the table below for Improvement Zone B Assessment Allocation. ;,; , improvement Zone B Assessment Allocation'iw , '�wt" ,iz. b; t:,: , S. .. 4. a,d, m ..kit )•- vL 1. I\ w .'.<e...1....,,: fin."'. Ftd74 t&Rl:6Wft�ii Single Family Tracts Initial Parcel Multifamily Tracts Initial Parcel Property ID Acreage Allocation % Acreage Allocation% 04236599 - 0.00% - 0.00% 41343212 - 0.00% - 0.00% 41728262 5.90 15.53% - 0.00% 41728297 15.13 39.86% 3.96 46.42% 42553197 5.95 15.67% - 0.00% 42588217 10.99 28.94% 4.57 53.58% Total 37.97 100.00% 8.53 100.00% CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 10 EXHIBIT B— HOMEBUYER DISCLOSURES Homebuyer Disclosures for the following Lot Types within the District are found in this Exhibit: • Lot Type SF1 • Lot Type SF2 • Lot Type SF3 [Remainder of page left intentionally blank] CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 11 CITY POINT PID HOMEBUYER DISCLOSURE— LOT TYPE SF1 NOTICE OF OBLIGATION TO PAY PUBLIC IMPROVEMENT DISTRICT ASSESSMENTS TO THE CITY OF NORTH RICHLAND HILLS,TEXAS CONCERNING THE PROPERTY AT: LEGAL DESCRIPTION OUTSTANDING PRINCIPAL OF THE AUTHORIZED IMPROVEMENT ASSESSMENT:$17,825.69 As the purchaser of the real property located at the street address set forth above, you are obligated to pay assessments to the City of North Richland Hills,Texas,for the costs of a portion of public improvements (the "Authorized Improvements"), undertaken for the benefit of the property within the City Point Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code, as amended. THE PRINCIPAL AMOUNT OF THE ASSESSMENT AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS IS $17,825.69, WHICH MAY BE PAID IN FULL AT ANY TIME; HOWEVER, IF NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS WHICH WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS,ADMINISTRATIVE COSTS,AND DELINQUENCY COSTS. An estimate of the schedule of annual installments is attached; however, it is only an estimate and is subject to change. The exact amount of the annual installments, including the annual installments thereof, will be approved each year by the City Council in the Annual Service Plan Update for the District. More information about the assessment, including the amounts and due dates, may be obtained from the City Secretary of the City. Your failure to pay any assessment, or any annual installment thereof, may result in penalties and interest being added to what you owe and could result in a lien on and the foreclosure of your property. The undersigned purchaser acknowledges receipt of the foregoing notice prior to the effective date of a binding contract for the purchase of the real property at the legal description set forth above. CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 12 IN WITNESS WHEREOF, I have signed this certificate this , 2020. PURCHASER: By: By: Name: Name: Title: Title: STATE OF TEXAS § COUNTY OF TARRANT § The foregoing instrument was acknowledged before me by known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed, in the capacity stated and as the act and deed of the above-referenced entities as an authorized signatory of said entities. Given under my hand and seal of office on this , 2020. Notary Public, State of Texas STATE OF TEXAS § COUNTY OFTARRANT § The foregoing instrument was acknowledged before me by known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed, in the capacity stated and as the act and deed of the above-referenced entities as an authorized signatory of said entities. Given under my hand and seal of office on this , 2020. Notary Public, State of Texas CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 13 PROJECTED ANNUAL INSTALLMENTS Improvement Zone,A Im•r6vetnehtZohe;13 Installment Due Additional Annual Collection Total Annual. 1/31 Principal Interest.. Principal Interest Interest Costs Installment' 2021 $ 53.21 $ 114.99 $ 239.45 $ 818.80 $ 89.13 $ 101.91 $ 1,417.48 2022 $ 66.51 $ 112.39 $ 252.75 $ 808.03 $ 87.67 $ 104.08 $ 1,431.43 2023 $ 66.51 $ 109.15 $ 266.06 $ 796.65 $ 86.07 $ 106.33 $ 1,430.77 2024 $ 66.51 $ 105.91 $ 279.36 $ 784.68 $ 84.41 $ 108.60 $ 1,429.47 2025 $ 66.51 $ 102.66 $ 292.66 $ 772.11 $ 82.68 $ 111.00 $ 1,427.62 2026 $ 79.82 $ 99.42 $ 292.66 $ 758.94 $ 80.88 $ 113.41 $ 1,425.13 2027 $ 79.82 $ 95.23 $ 305.96 $ 744.67 $ 79.02 $ 115.96 $ 1,420.66 2028 $ 79.82 $ 91.04 $ 332.57 $ 729.76 $ 77.09 $ 118.61 $ 1,428.88 2029 $ 93.12 $ 86.85 $ 345.87 $ 713.54 $ 75.03 $ 121.36 $ 1,435.78 2030 $ 93.12 $ 81.96 $ 359.17 $ 696.68 $ 72.83 $ 124.18 $ 1,427.95 2031 $ 106.42 $ 77.07 $ 372.48 $ 679.17 $ 70.57 $ 127.12 $ 1,432.83 2032 $ 106.42 $ 71.09 $ 385.78 $ 659.62 $ 68.18 $ 130.20 $ 1,421.28 2033 $ 106.42 $ 65.10 $ 412.39 $ 639.36 $ 65.72 $ 133.43 $ 1,422.42 2034 $ 119.72 $ 59.11 $ 425.69 $ 617.71 $ 63.12 $ 136.94 $ 1,422.30 2035 $ 133.03 $ 52.38 $ 452.29 $ 595.36 $ 60.39 $ 140.68 $ 1,434.14 2036 $ 133.03 $ 44.90 $ 478.90 $ 571.62 $ 57.47 $ 144.64 $ 1,430.55 2037 $ 146.33 $ 37.41 $ 492.20 $ 546.48 $ 54.41 $ 148.93 $ 1,425.76 2038 $ 159.63 $ 29.18 $ 518.81 $ 520.64 $ 51.22 $ 153.64 $ 1,433.12 2039 $ 172.94 $ 20.20 $ 545.41 $ 493.40 $ 47.82 $ 158.93 $ 1,438.71 2040 $ 186.24 $ 10.48 $ 572.02 $ 464.76 $ 44.23 $ 165.02 $ 1,442.75 2041 $ - $ - $ 625.23 $ 434.73 $ 40.44 $ 133.19 $ 1,233.60 2042 $ - $ - $ 665.14 $ 401.13 $ 37.31 $ 135.79 $ 1,239.37 2043 $ - $ - $ 691.74 $ 365.38 $ 33.99 $ 138.50 $ 1,229.61 2044 $ - $ - $ 731.65 $ 328.20 $ 30.53 $ 141.26 $ 1,231.63 2045 $ - $ - $ 771.56 $ 288.87 $ 26.87 $ 144.16 $ 1,231.47 2046 $ - $ - $ 824.77 $ 247.40 $ 23,01 $ 147.01 $ 1,242.19 2047 $ - $ - $ 864.68 $ 203.07 $ 18.89 $ 149.86 $ 1,236.49 2048 $ - $ - $ 917.89 $ 156.59 $ 14.57 $ 152.91 $ 1,241.96 2049 $ - $ - $ 971.10 $ 107.25 $ 9.98 $ 156.03 $ 1,244.36 2050 $ - $ - $ 1,024.31 $ 55.06 $ 5.12 $ 159.20 $ 1,243.69 Total $ 2,115.14 $ 1,466.53 $ 15,710.55 $ 15,999.65 $ 1,638.63 $ 4,022.88 $ 40,953.38 1)Annual Installment includes both Single Family Tracts allocable share of Improvement Zone A Annual Installment and Improvement Zone B Annual Installment.The total Annual Installment does not reflect the TIRZ No.3 Annual Credit Amount. Note:The figures shown above are estimates only and subject to change in annual service plan update.Changes in Annual Collection Costs,reserve fund requirements, interest earnings,or other available offsets could Increase or decrease the amounts shown. CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 14 CITY POINT PID HOMEBUYER DISCLOSURE— LOT TYPE SF2 NOTICE OF OBLIGATION TO PAY PUBLIC IMPROVEMENT DISTRICT ASSESSMENTS TO THE CITY OF NORTH RICHLAND HILLS,TEXAS CONCERNING THE PROPERTY AT: LEGAL DESCRIPTION OUTSTANDING PRINCIPAL OF THE AUTHORIZED IMPROVEMENT ASSESSMENT:$18,747.71 As the purchaser of the real property located at the street address set forth above, you are obligated to pay assessments to the City of North Richland Hills,Texas, for the costs of a portion of public improvements (the "Authorized Improvements"), undertaken for the benefit of the property within the City Point Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code, as amended. THE PRINCIPAL AMOUNT OF THE ASSESSMENT AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS IS $18,747.71, WHICH MAY BE PAID IN FULL AT ANY TIME; HOWEVER, IF NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS WHICH WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS,ADMINISTRATIVE COSTS,AND DELINQUENCY COSTS. An estimate of the schedule of annual installments is attached; however, it is only an estimate and is subject to change. The exact amount of the annual installments, including the annual installments thereof, will be approved each year by the City Council in the Annual Service Plan Update for the District. More information about the assessment, including the amounts and due dates, may be obtained from the City Secretary of the City. Your failure to pay any assessment, or any annual installment thereof, may result in penalties and interest being added to what you owe and could result in a lien on and the foreclosure of your property. The undersigned purchaser acknowledges receipt of the foregoing notice prior to the effective date of a binding contract for the purchase of the real property at the legal description set forth above. CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 15 IN WITNESS WHEREOF, I have signed this certificate this , 2020. PURCHASER: By: By: Name: Name: Title: Title: STATE OF TEXAS § COUNTY OF TARRANT § The foregoing instrument was acknowledged before me by known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed, in the capacity stated and as the act and deed of the above-referenced entities as an authorized signatory of said entities. Given under my hand and seal of office on this 2020. Notary Public, State of Texas STATE OF TEXAS § COUNTY OF TARRANT § The foregoing instrument was acknowledged before me by known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed, in the capacity stated and as the act and deed of the above-referenced entities as an authorized signatory of said entities. Given under my hand and seal of office on this , 2020. Notary Public,State of Texas CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 16 PROJECTED ANNUAL INSTALLMENTS Im•rovement'Zone,A Improvement Zone.R Installment Due Additional Annual Collection Total Annual 1/31 Principal Interest Principal Interest Interest Costs Installments 2021 $ 55.96 $ 120.93 $ 251.83 $ 861.15 $ 93.74 $ 107.18 $ 1,490.80 2022 $ 69.95 $ 118.21 $ 265.83 $ 849.82 $ 92.20 $ 109.46 $ 1,505.47 2023 $ 69.95 $ 114.79 $ 279.82 $ 837.86 $ 90.52 $ 111.83 $ 1,504.77 2024 $ 69.95 $ 111.38 $ 293.81 $ 825.27 $ 88.77 $ 114.22 $ 1,503.40 2025 $ 69.95 $ 107.97 $ 307.80 $ 812.05 $ 86.95 $ 116.74 $ 1,501.46 2026 $ 83.94 $ 104.56 $ 307.80 $ 798.19 $ 85.06 $ 119.28 $ 1,498.84 2027 $ 83.94 $ 100.16 $ 321.79 $ 783.19 $ 83.11 $ 121.96 $ 1,494.15 2028 $ 83.94 $ 95.75 $ 349.77 $ 767.50 $ 81.08 $ 124.74 $ 1,502.78 2029 $ 97.94 $ 91.34 $ 363.76 $ 750.45 $ 78.91 $ 127.64 $ 1,510.04 2030 $ 97.94 $ 86.20 $ 377.75 $ 732.72 $ 76.60 $ 130.61 $ 1,501.81 2031 $ 111.93 $ 81.06 $ 391.74 $ 714.30 $ 74.22 $ 133.69 $ 1,506.95 2032 $ 111.93 $ 74.76 $ 405.73 $ 693.74 $ 71.70 $ 136.94 $ 1,494.80 2033 $ 111.93 $ 68.47 $ 433.72 $ 672.43 $ 69.11 $ 140.33 $ 1,495.99 2034 $ 125.92 $ 62.17 $ 447.71 $ 649.66 $ 66.39 $ 144.02 $ 1,495.86 2035 $ 139.91 $ 55.09 $ 475.69 $ 626.16 $ 63.52 $ 147.95 $ 1,508.32 2036 $ 139.91 $ 47.22 $ 503.67 $ 601.19 $ 60.44 $ 152.12 $ 1,504.54 2037 $ 153.90 $ 39.35 $ 517.66 $ 574.74 $ 57.22 $ 156.64 $ 1,499.51 2038 $ 167.89 $ 30.69 $ 545.64 $ 547.57 $ 53.86 $ 161.59 $ 1,507.24 2039 $ 181.88 $ 21.25 $ 573.62 $ 518.92 $ 50.30 $ 167.16 $ 1,513.13 2040 $ 195.87 $ 11.02 $ 601.61 $ 488.80 $ 46.52 $ 173.55 $ 1,517.37 2041 $ - $ - $ 657.57 $ 457.22 $ 42.53 $ 140.08 $ 1,297.40 2042 $ - $ - $ 699.54 $ 421.88 $ 39.24 $ 142.81 $ 1,303.47 2043 $ - $ - $ 727.52 $ 384.28 $ 35.75 $ 145.66 $ 1,293.21 2044 $ - $ - $ 769.50 $ 345.17 $ 32.11 $ 148.56 $ 1,295.34 2045 $ - $ - $ 811.47 $ 303.81 $ 28.26 $ 151.62 $ 1,295.16 2046 $ - $ - $ 867.43 $ 260.19 $ 24.20 $ 154.61 $ 1,306.44 2047 $ - $ - $ 909.40 $ 213.57 $ 19.87 $ 157.61 $ 1,300.45 2048 $ - $ - $ 965.37 $ 164.69 $ 15.32 $ 160.82 $ 1,306.20 2049 $ - $ - $ 1,021.33 $ 112.80 $ 10.49 $ 164.10 $ 1,308.72 2050 $ - $ - $ 1,077.29 $ 57.90 $ 5.39 $ 167.44 $ 1,308.02 Total $ 2,224.54 $ 1,542.38 $ 16,523.17 $ 16,827.22 $ 1,723.39 $ 4,230.96 $ 43,071.66 1)Annual Installment includes both Single Family Tracts allocable share of Improvement Zone A Annual Installment and Improvement Zone B Annual Installment.The total Annual Installment does not reflect the TIRZ No.3 Annual Credit Amount. Note:The figures shown above are estimates only and subject to change in annual service plan update.Changes in Annual Collection Costs,reserve fund requirements, interest earnings,or other available offsets could increase or decrease the amounts shown. CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 17 CITY POINT PID HOMEBUYER DISCLOSURE— LOT TYPE SF3 NOTICE OF OBLIGATION TO PAY PUBLIC IMPROVEMENT DISTRICT ASSESSMENTS TO THE CITY OF NORTH RICHLAND HILLS,TEXAS CONCERNING THE PROPERTY AT: LEGAL DESCRIPTION OUTSTANDING PRINCIPAL OF THE AUTHORIZED IMPROVEMENT ASSESSMENT:$19,977.06 As the purchaser of the real property located at the street address set forth above, you are obligated to pay assessments to the City of North Richland Hills,Texas,for the costs of a portion of public improvements (the "Authorized Improvements"), undertaken for the benefit of the property within the City Point Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code, as amended. THE PRINCIPAL AMOUNT OF THE ASSESSMENT AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS IS $19,977.06, WHICH MAY BE PAID IN FULL AT ANY TIME; HOWEVER, IF NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS WHICH WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS,ADMINISTRATIVE COSTS,AND DELINQUENCY COSTS. An estimate of the schedule of annual installments is attached; however, it is only an estimate and is subject to change. The exact amount of the annual installments, including the annual installments thereof, will be approved each year by the City Council in the Annual Service Plan Update for the District. More information about the assessment, including the amounts and due dates, may be obtained from the City Secretary of the City. Your failure to pay any assessment, or any annual installment thereof, may result in penalties and interest being added to what you owe and could result in a lien on and the foreclosure of your property. The undersigned purchaser acknowledges receipt of the foregoing notice prior to the effective date of a binding contract for the purchase of the real property at the legal description set forth above. ,.-, . .._ CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 18 IN WITNESS WHEREOF, I have signed this certificate this , 2020. PURCHASER: By: By: Name: Name: Title: Title: STATE OF TEXAS § COUNTY OF TARRANT § The foregoing instrument was acknowledged before me by known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed, in the capacity stated and as the act and deed of the above-referenced entities as an authorized signatory of said entities. Given under my hand and seal of office on this 2020. Notary Public, State of Texas STATE OF TEXAS § COUNTY OF TARRANT § The foregoing instrument was acknowledged before me by known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed, in the capacity stated and as the act and deed of the above-referenced entities as an authorized signatory of said entities. Given under my hand and seal of office on this , 2020. Notary Public, State of Texas --: _ , CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 19 PROJECTED ANNUAL INSTALLMENTS lin•rovement Zone.A. Iln•rovement'Zbne 8 Installment Due Additional Annual Collection Total Annual 1/31 Principal Interest Principal Interest Interest Costs Installment' 2021 $ 59.63 $ 128.86 $ 268.35 $ 917.62 $ 99.89 $ 114.20 $ 1,588.56 2022 $ 74.54 $ 125.96 $ 283.26 $ 905.55 $ 98.25 $ 116.64 $ 1,604.19 2023 $ 74.54 $ 122.32 $ 298.17 $ 892.80 $ 96.46 $ 119.16 $ 1,603.45 2024 $ 74.54 $ 118.69 $ 313.07 $ 879.38 $ 94.59 $ 121.71 $ 1,601.99 2025 $ 74.54 $ 115.05 $ 327.98 $ 865.29 $ 92.65 $ 124.39 $ 1,599.92 2026 $ 89.45 $ 111.42 $ 327.98 $ 850.53 $ 90.64 $ 127.10 $ 1,597.13 2027 $ 89.45 $ 106.72 $ 342.89 $ 834.55 $ 88.56 $ 129.96 $ 1,592.12 2028 $ 89.45 $ 102.03 $ 372.71 $ 817.83 $ 86.39 $ 132.92 $ 1,601.33 2029 $ 104.36 $ 97.33 $ 387.61 $ 799.66 $ 84.08 $ 136.01 $ 1,609.06 2030 $ 104.36 $ 91.85 $ 402.52 $ 780.76 $ 81.62 $ 139.17 $ 1,600.29 2031 $ 119.27 $ 86.37 $ 417.43 $ 761.14 $ 79.09 $ 142.46 $ 1,605.76 2032 $ 119.27 $ 79.67 $ 432.34 $ 739.23 $ 76.40 $ 145.92 $ 1,592.82 2033 $ 119.27 $ 72.96 $ 462.16 $ 716.53 $ 73.65 $ 149.53 $ 1,594.09 2034 $ 134.17 $ 66.25 $ 477.06 $ 692.26 $ 70.74 $ 153.46 $ 1,593.95 2035 $ 149.08 $ 58.70 $ 506.88 $ 667.22 $ 67.68 $ 157.66 $ 1,607.22 2036 $ 149.08 $ 50.32 $ 536.70 $ 640.61 $ 64.40 $ 162.09 $ 1,603.20 2037 $ 163.99 $ 41.93 $ 551.61 $ 612.43 $ 60.97 $ 166.91 $ 1,597.84 2038 $ 178.90 $ 32.71 $ 581.42 $ 583.47 $ 57.40 $ 172.18 $ 1,606.08 2039 $ 193.81 $ 22.64 $ 611.24 $ 552.95 $ 53.60 $ 178.12 $ 1,612.35 2040 $ 208.72 $ 11.74 $ 641.06 $ 520.86 $ 49.57 $ 184.94 $ 1,616.87 2041 $ - $ - $ 700.69 $ 487.20 $ 45.32 $ 149.27 $ 1,382.48 2042 $ - $ - $ 745.41 $ 449.54 $ 41.82 $ 152.18 $ 1,388.95 2043 $ - $ - $ 775.23 $ 409.47 $ 38.09 $ 155.21 $ 1,378.01 2044 $ - $ - $ 819.95 $ 367.81 $ 34.21 $ 158.30 $ 1,380.28 2045 $ - $ - $ 864.68 $ 323.73 $ 30.11 $ 161.56 $ 1,380.09 2046 $ - $ - $ 924.31 $ 277.26 $ 25.79 $ 164.75 $ 1,392.11 2047 $ - $ - $ 969.04 $ 227.57 $ 21.17 $ 167.95 $ 1,385.73 2048 $ - $ - $ 1,028.67 $ 175.49 $ 16.32 $ 171.37 $ 1,391.85 2049 $ - $ - $ 1,088.30 $ 120.20 $ 11.18 $ 174.86 $ 1,394.54 2050 $ - $ - $ 1,147.94 $ 61.70 $ 5.74 $ 178.42 $ 1,393.79 Total $ 2,370.41 $ 1,643.52 $ 17,606.65 $ 17,930.65 $ 1,836.40 $ 4,508.40 $ 45,896.03 1)Annual Installment includes both Single Family Tracts allocable share of Improvement Zone A Annual Installment and Improvement Zone B Annual Installment.The total Annual Installment does not reflect the TIRZ No.3 Annual Credit Amount. Note:The figures shown above are estimates only and subject to change in annual service plan update.Changes in Annual Collection Costs,reserve fund requirements, interest earnings,or other available offsets could increase or decrease the amounts shown. CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 20 EXHIBIT C-1-DEBT SERVICE SCHEDULE- IMPROVEMENT ZONE A DEBT SERVICE REQUIREMENTS The following table scts forth the anticipated debt service requirements for the Bonds: Year Ending (September 11 Principal Interest Total 2020 - S99,079.65 S99,079.65 202I $70,000.00 142,106.26 212,I06.26 2022 80,000.00 138,693.76 218,693.76 2023 80,000.00 134,793.76 214,793.76 2024 85,000.00 130,893.76 215,893.76 2025 85,000.00 126,750.00 211,750.06 2026 95,000.00 122,606.26 217,606.26 2027 100,000.00 117,618.76 217,618.76 2028 105,000.00 112,368.76 217,368.76 2029 115,000.00 106,856.26 221,856.26 2030 115,000.00 100,818.76 215,818.76 2031 125,000.00 94,781 26 219,78126 2032 130,000.00 87,750.02 217,750.02 2033 140,000.00 80,437.52 220,437.52 2034 150,000.00 72,56252 222,562.52 2035 160,000.00 64,125.00 224,125.00 2036 170,000.00 55,125.00 275,125.00 2037 180,000.00 45,562.50 225,562.50 2038 195,000.00 35,437.52 230,437.52 2039 210,000.00 24,468.76 234,468.76 2040 225.000.00 12.656.26 237.656.26 Total S2615.000.00 R1.905A92.35 9.4 C20.492 35 CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 21 EXHIBIT C-2- DEBT SERVICE SCHEDULE- IMPROVEMENT ZONE B DEBT SERVICE REQUIREMENTS The following table sets forth the anticipated debt service requirements for the Bonds: Year Ending (September 1) Principal Interest Total 2020 - $325,790.17 $325,790.17 2021 $135,000.00 467,268.76 602,268.76 2022 145,000.00 461,193.76 606,193.76 2023 150,000.00 454,668.76 604,668.76 2024 160,000.00 447,918.76 607,918.76 2025 165,000.00 440,718.76 605,718.76 2026 170,000.00 433,293.76 603,293.76 2027 175,000.00 425,006.26 600.00626 2028 190,000.00 416,475.00 606,475.00 2029 195,000.00 407,212.52 602,212.52 2030 205,000.00 397,706.26 602,706 26 2031 215,000.40 387,712.50 602,712.50 2032 220,000.00 376,425.00 596,425.00 2033, 235,000.00 364,875.00 599,875.00 2034 245,000.00 352,537.50 597537.50 2035 260,000.00 339,675:04 599,675.00 2036 270,000.00 326,025.00 596,025.00 2037 280,000.00 311,850.00 591,850.00 2038 295,000.00 297,150.00 592,150.00 2039 310,000.00 281.662.50 591,662.50 2040 325,000.00 265387.50 590,3$7.50 2041 355,000.00 248_325.00 603,325.00 2042 380,000.00 229,243.76 609,243.76 2043 395,000.00 208,818.76 603,818.76 2044 420,000.00 187587.52 697,587.52 2045 440,000.00 165,012.50 605,012.50 2046 470,000.00 141362.50 611,362.50 2047 495,000.00 116.100.00 611,100.00 2048 525,000.00 89,493.76 614,493.76 2049 555,000.00 61,275.00 616,275.00 2050 585.000.00 31.443.76 616.443.76 Total $8.965,009 59.459.215.33 S18.424.215.33 CITY POINT PID 2020 ANNUAL SERVICE PLAN UPDATE 22