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Home My WebLink AboutR2025-145 20250908Docusign Envelope ID: B39F1F8C-5EF2-446B-BDAF-89821992BBA6 RESOLUTION NO. R2025-145 A Resolution of the City of Pearland, Texas determining the costs of certain public improvements to be financed by the Smith Ranch Public Improvement District No. 1; accepting a Preliminary Service and Assessment Plan, including the Proposed Assessment Rolls; directing the filing of the Proposed Assessment Rolls with the City Secretary to make available for public inspection; calling public hearings on October 13, 2025 and October 27, 2025 to consider an ordinance levying assessments on property within the District; directing City staff to publish and mail notice of said public hearing; and resolving other matters incident and related thereto. WHEREAS, Chapter 372, Texas Local Government Code (the "Act") authorizes the governing body (the "City Council") of the City of Pearland, Texas (the "City"), to create a public improvement district within the corporate limits and extraterritorial jurisdiction of the City; and WHEREAS, on August 11, 2025, the City Council conducted a public hearing to consider a petition received by the City on February 24,2025, (the "Petition") requesting the creation of the Smith Ranch Public Improvement District No. 1 (the "District") to undertake the construction of certain public improvements described in the Petition (the "Authorized Improvements"); and WHEREAS, on August 11, 2025, the City Council adopted Resolution No. R2025-38 (the "Authorization Resolution"), authorizing, establishing and creating the District; and WHEREAS, the City Council and City staff have been presented with a Preliminary Service and Assessment Plan for the District, including the proposed assessment rolls attached thereto (the "Proposed Assessment Rolls") (collectively, the "Preliminary SAP") a copy of which is attached hereto as Exhibit A and is incorporated herein for all purposes; and WHEREAS, the Preliminary SAP is updated to include Phase #1 and sets forth the estimated total costs of the Authorized Improvements to be financed by the District at this time (defined in the Preliminary SAP as the "Authorized Improvements") and the proposed assessment rolls (the "Proposed Assessment Rolls") state the special assessments to be levied against each parcel of land in Phase #1 of the District (as defined in the Preliminary SAP) as determined by the assessment methodology selected by the City Council and set forth in the Preliminary SAP; and Docusign Envelope ID: B39F1F8C-5EF2-446B-BDAF-89821992BBA6 RESOLUTION NO. R2025-145 WHEREAS, the Authorized Improvements are to be financed by special assessments to be levied within the District; and WHEREAS, the Act requires that the Proposed Assessment Rolls be filed with the City Secretary of the City (the "City Secretary") and be subject to public inspection; and WHEREAS, the Act requires that a public hearing (the "Assessment Hearing") be called to consider the proposed assessments and requires the City Council to hear and pass on any objections to the proposed assessments at, or on the adjournment of, the Assessment Hearing; and WHEREAS, the Act requires that notice of the Assessment Hearing be published in a newspaper of general circulation in the City before the tenth (10th) day before the date of the Assessment Hearing and be mailed to property owners liable for assessment; and WHEREAS, after all objections have been heard and passed on at the Assessment Hearing, the City Council may levy special assessments against the property in the District to pay for the Authorized Improvements; now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, Section 1. That the recitals set forth above in this Resolution are true and correct and are hereby adopted as findings of the City Council and are incorporated into the body of this Resolution as if fully set forth herein. Section 2. The City Council does hereby accept the updated Preliminary SAP for the District, including the Proposed Assessment Rolls, a copy of which is attached hereto as Exhibit A and is incorporated herein for all purposes. All capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Preliminary SAP. Section 3. The City Council hereby determines that estimated total cost of the Authorized Improvements to be funded through the special assessments levied at this time in the District, including financing costs, is approximately $6,135,450. Section 4. The City Council's final determination and approval of the costs of the Page 2 Docusign Envelope ID: B39F1F8C-5EF2-446B-BDAF-89821992BBA6 RESOLUTION NO. R2025-145 Authorized Improvements, or any portion thereof, shall be subject to and contingent upon City Council approval of a final Service and Assessment Plan which will include final Assessment Rolls, after the properly noticed and held Assessment Hearing. Section 5. The City Council hereby authorizes and directs the filing of the updated Preliminary SAP, including the Proposed Assessment Rolls, with the City Secretary and the same shall be available for public inspection. Section 6. The City Council hereby authorizes and calls public hearings (the Assessment Hearings as defined above) to be held on October 13, 2025 and October 27, 2025 at or after 6:30 p.m. in the City Council Chamber, City Hall, 3519 Liberty Drive, Pearland, Texas at which the City Council shall, among other actions, hear and pass on any objections to the proposed assessments; and, upon the adjournment of the Assessment Hearings, the City Council will consider an ordinance levying the assessments as special assessments on the property within the District (which ordinance shall specify the method of payment of the assessments). Section 7. The City Council hereby authorizes and directs the City Secretary to publish notice of the Assessment Hearing in substantially the form attached hereto as Exhibit B and incorporated herein for all purposes, in a newspaper of general circulation in the City, on or before October 1, 2025, as required by Section 372.016(b) of the Act. Section 8. When the Proposed Assessment Rolls are filed with the City Secretary, the City Council hereby authorizes and directs the City Secretary, on or before October 16, 2025, to mail to owners of property liable for assessment in the District a notice of the Assessment Hearing as required by Section 372.016(c) of the Act. Section 9. City staff is authorized and directed to take such other actions as are required (including, but not limited to, notice of the public hearings as required by the Texas Open Meetings Act) to place the Assessment Hearing on the agenda for the October 27, 2025, City Council meeting. Section 10. This Resolution shall become effective from and after its date of passage in accordance with law. Page 3 Docusign Envelope ID: B39F1F8C-5EF2-446B-BDAF-89821992BBA6 RESOLUTION NO. R2025-145 Page 4 Docusign Envelope ID: B39F1F8C-5EF2-446B-BDAF-89821992BBA6 RESOLUTION NO. R2025-145 PASSED, APPROVED and ADOPTED this the 8th day of September, A.D., 2025. DocuSigned by: 2.1-00E10506 J. KEVIN COLE MAYOR ATTEST: rDocuSigned by: Frshuitar FR MrS�4AGUILAR, TRMC, MMC CITY SECRETARY APPROVED AS TO FORM: DocuSigned by: (Y~ irAWK`reglig4.13bOKER CITY ATTORNEY Page 5 Docusign Envelope ID: B39F1F8C-5EF2-446B-BDAF-89821992BBA6 RESOLUTION NO. R2025-145 EXHIBIT A PRELIMINARY SERVICE AND ASSESSMENT PLAN Page 6 Docusign Envelope ID: B39F1F8C-5EF2-446B-BDAF-89821992BBA6 RESOLUTION NO. R2025-145 EXHIBIT B NOTICE OF PUBLIC HEARING CITY OF PEARLAND, TEXAS NOTICE OF PUBLIC HEARING THE CONSIDER THE LEVY OF ASSESSMENTS AGAINST PROPERTY WITHIN THE SMITH RANCH PUBLIC IMPROVEMENT DISTRICT NO. 1 Pursuant to Chapter 372, Texas Local Government Code, as amended (the "Act"), notice is hereby given that the City Council of the City of Pearland, Texas (the "City") will hold a public hearing (the "Public Hearing") to consider the levy of assessments against property located within the Smith Ranch Public Improvement District No. 1 (the "District") to pay for certain improvements therein. Date, Time and Place of Public Hearing. The Public Hearings will take place on October 13, 2025, and October 27, 2025, at or after 6:00 p.m., at the City Council Chamber, City Hall, 3519 Liberty Drive, Pearland, Texas 77581. General Nature of the Improvements. The general nature of the proposed public improvements, including the improvements to be reimbursed through the levy of special assessments in the District, includes (i) sanitary sewer improvements and (ii) costs related to the creation and administration of the District. The property within the District is expected to be developed in multiple phases and improvements that will benefit and serve Phase #1 of the District (the "Authorized Improvements") are to be installed and constructed with the associated phase, and special assessments will be levied within Phase #1 of the District to finance the Authorized Improvements. Cost of the Improvements. The estimated total cost of the Authorized Improvements to be funded through the special assessments levied in the District, including financing costs, is approximately $6,135,450. Proposed Assessment Roll. The proposed assessment rolls providing for the costs of said Authorized Improvements to be assessed, levied and apportioned against the property within the District, and the real and true owner or owners thereof, are on file and are available for public inspection during regular business hours at the office of the City Secretary at City Hall, 3519 Liberty Drive, Pearland, Texas 77581. Boundaries of the District. The boundaries of the District encompass approximately 78.7676 acres and the District is generally located at the southeast corner of Smith Ranch Road and Hughes Ranch Road within the corporate limits of the City, as more particularly described by a metes and bounds description available at the Pearland City Hall and available for public inspection. Objections Considered. All written or oral objections will be considered at the Public Hearing. Page 7 SMITH RANCH PUBLIC IMPROVEMENT DISTRICT CITY OF PEARLAND, TEXAS PRELIMINARY SERVICE AND ASSESSMENT PLAN September 8, 2025 PREPARED BY: MUNICAP, N I CAP, I C. PUBLIC FINANCE SMITH RANCH PUBLIC IMPROVEMENT DISTRICT PRELIMINARY SERVICE AND ASSESSMENT PLAN TABLE OF CONTENTS I. PLAN DESCRIPTION AND DEFINED TERMS 4 A. INTRODUCTION 4 B. DEFINITIONS 5 II. PROPERTY INCLUDED IN THE PID 9 A. PROPERTY INCLUDED IN THE PID 9 III. DESCRIPTION OF THE AUTHORIZED IMPROVEMENTS 10 A. AUTHORIZED IMPROVEMENT OVERVIEW 10 B. DESCRIPTIONS AND BUDGETED COSTS OF THE AUTHORIZED IMPROVEMENTS 10 IV. SERVICE PLAN 12 A. PROJECTED SOURCES AND USES OF FUNDS 12 B. PROJECTED FIVE YEAR SERVICE PLAN 13 C. PID ASSESSMENT NOTICE 13 V. ASSESSMENT PLAN 14 A. INTRODUCTION 14 B. SPECIAL BENEFIT 15 C. ALLOCATION OF COSTS TO ASSESSED PROPERTY 16 D. ASSESSMENT METHODOLOGY 18 E. ASSESSMENTS 18 F. ADMINISTRATIVE EXPENSES 18 VI. TERMS OF THE ASSESSMENTS 19 A. AMOUNT OF ASSESSMENTS AND ANNUAL INSTALLMENTS FOR PARCELS LOCATED WITHIN THE DISTRICT 19 B. REALLOCATION OF ASSESSMENTS 19 C. MANDATORY PREPAYMENT OF ASSESSMENTS 20 D. REDUCTION OF ASSESSMENTS 20 E. PAYMENT OF ASSESSMENTS 21 F. COLLECTION OF ANNUAL INSTALLMENTS 22 VII. THE ASSESSMENT ROLL 24 A. ASSESSMENT ROLL 24 B. ANNUAL ASSESSMENT ROLL UPDATES 24 VIII. MISCELLANEOUS PROVISIONS 25 A. ADMINISTRATIVE REVIEW 25 B. TERMINATION OF ASSESSMENTS 25 C. AMENDMENTS 25 D. ADMINISTRATION AND INTERPRETATION OF PROVISIONS 26 E. SEVERABILITY 26 APPENDIX A - PID MAP APPENDIX B - BUDGETED COSTS OF THE AUTHORIZED IMPROVEMENTS APPENDIX C - DIAGRAMS OF THE AUTHORIZED IMPROVEMENTS APPENDIX D - ASSESSMENT PER UNIT, PROJECTED LEVERAGE AND PROJECTED TAX RATE EQUIVALENTS APPENDIX E - PID ASSESSMENT NOTICE APPENDIX F - PROPOSED ASSESSMENT ROLL APPENDIX G - ANNUAL INSTALLMENT SCENARIOS I. PLAN DESCRIPTION AND DEFINED TERMS A. INTRODUCTION On August 11, 2025 (the "Creation Date") the City Council (the "City Council") of the City of Pearland, Texas (the "City") passed and approved Resolution No. R2025-38 approving and authorizing the creation of the Smith Ranch Public Improvement District (the "PID") to finance the costs of certain public improvements for the benefit of property in such public improvement district (the "Authorized Improvements"), all of which is located within the City limits at the time the PID was created. The property in the PID is anticipated to be developed in the future and the PID will finance the public improvements prior to development. Assessments are being levied to the property prior to the construction of the Authorized Improvements. Chapter 372 of the Texas Local Government Code, the "Public Improvement District Assessment Act" (as amended, the "PID Act"), governs the creation and operation of public improvement districts within the State of Texas. The Smith Ranch Public Improvement District Service and Assessment Plan (the "Service and Assessment Plan") has been prepared in accordance with the PID Act and specifically Sections 372.013, 372.014, 372.015 and 372.016, which address the requirements of a service and assessment plan and the assessment roll. According to Section 372.013 of the PID Act, a service plan "must (i) cover a period of at least five years; (ii) define the annual indebtedness and the projected costs for improvements; and (iii) include a copy of the notice form required by Section 5.014, Property Code." The service plan is described in Section IV of this Service and Assessment Plan. The copy of the notice form required by Section 5.014 of the Texas Property Code, as amended, is attached hereto as Appendix E. Section 372.014 of the PID Act requires that "an assessment plan must be included in the annual service plan." The assessment plan is described in Section V of this Service and Assessment Plan. Section 372.015 of the PID Act requires that "the governing body of the municipality or county shall apportion the cost of an improvement to be assessed against property in an improvement district." The method of assessing the costs of the Authorized Improvements and apportionment of such costs to the property in the PID is included in Section V of this Service and Assessment Plan. Section 372.016 of the PID Act requires that "after the total cost of an improvement is determined, the governing body of the municipality or county shall prepare a proposed assessment roll. The roll must state the assessment against each parcel of land in the district, as determined by the method of assessment chosen by the municipality or county under this subchapter." The Assessment Roll for the PID is included as Appendix F of this Service and Assessment Plan. The Assessments as shown on the Assessment Roll are based on the method of assessment and apportionment of costs described in Section V of this Service and Assessment Plan. MuniCap 14 B. DEFINITIONS Capitalized terms used herein shall have the meanings ascribed to them as follows: "Actual Cost(s)" means, with respect to an Authorized Improvement, the demonstrated, reasonable, allocable, and allowable costs of constructing such Authorized Improvement, as specified in a Certification for Payment that has been reviewed and approved by the City. Actual Cost may include (a) the costs for the design, planning, financing, administration, management, acquisition, installation, construction and/or implementation of such Authorized Improvement, including general contractor construction management fees, if any, (b) the costs of preparing the construction plans for such Authorized Improvement, (c) the fees paid for obtaining permits, licenses or other governmental approvals for such Authorized Improvement, (d) the costs for external professional costs associated with such Authorized Improvement, such as engineering, geotechnical, surveying, land planning, architectural landscapers, advertising, marketing and research studies, appraisals, legal, accounting and similar professional services, taxes (property and franchise) (e) the costs of all labor, bonds and materials, including equipment and fixtures, incurred by contractors, builders and material men in connection with the acquisition, construction or implementation of the Authorized Improvements, (f) all related permitting, zoning and public approval expenses, architectural, engineering, legal, and consulting fees, financing charges, taxes, governmental fees and charges (including inspection fees, City permit fees, development fees), insurance premiums, miscellaneous expenses, and all advances and payments for Administrative Expenses. Actual Costs include general contractor's fees in an amount up to a percentage equal to the percentage of work completed and accepted by the City or construction management fees in an amount up to five percent of the eligible Actual Costs described in a Certification for Payment. The amounts expended on legal costs, taxes, governmental fees, insurance premiums, permits, financing costs, and appraisals shall be excluded from the base upon which the general contractor and construction management fees are calculated. "Administrator" means the employee or designee of the City, identified in any agreement approved by the City Council, who shall have the responsibilities provided for herein. "Administrative Expenses" mean the administrative, organization, maintenance and operation costs associated with, or incident to, the administration, organization, maintenance and operation of the PID, including, but not limited to, the costs of: (i) creating and organizing the PID, including conducting hearings, preparing notices and petitions, and all costs incident thereto, including engineering fees, legal fees and consultant fees, (ii) the annual administrative, organization, maintenance, and operation costs and expenses associated with, or incident and allocable to, the administration, organization, and operation of the PID, (iii) computing, levying, billing and collecting Assessments or the Annual Installments thereof, (iv) maintaining the record of installments of the Assessments, (v) legal counsel, engineers, accountants, financial advisors, investment bankers or other consultants and advisors, and (vi) administering the construction of the Authorized Improvements. Administrative Expenses collected and not expended for actual Administrative Expenses in one year shall be carried forward and applied to reduce Administrative MuniCap 15 Expenses in subsequent years to avoid the over -collection of amounts to pay Administrative Expenses. "Annual Installment" means, with respect to each Parcel, each annual payment of: (i) the Assessments including both principal and interest, as shown on the Assessment Rolls attached hereto as Appendix F or in an Annual Service Plan Update, and calculated as provided in Section VI of this Service and Assessment Plan and (ii) the Administrative Expenses. "Annual Service Plan Update" has the meaning set forth in Section IV of this Service and Assessment Plan. "Assessed Property" means the real properties that benefit from the Authorized Improvements to be provided by the PID on which Assessments have been imposed as shown in each Assessment Roll, as each Assessment Roll is updated each year by the Annual Service Plan Update. Assessed Property includes Parcels within the PID other than Non -Benefited Property. "Assessment" means an assessment levied against a Parcel imposed pursuant to an Assessment Ordinance and the provisions herein, as shown on any Assessment Roll, subject to reallocation upon the subdivision of such Parcel or reduction according to the provisions herein and the PID Act. An Assessment for a Parcel consists of the Annual Installments to be collected in all years including the portion of those Annual Installments collected to pay Administrative Expenses and interest on all Assessments. "Assessment Ordinance" means an Assessment Ordinance adopted by the City Council approving the Service and Assessment Plan (including amendments or supplements to the Service and Assessment Plan) and levying the Assessments. "Assessment Revenues" mean the revenues actually received by or on behalf of the City from the collection of Assessments. "Assessment Roll" means the Assessment Roll or any other Assessment Roll in an amendment or supplement to this Service and Assessment Plan or in an Annual Service Plan Update. "Authorized Improvements" mean those public improvements described in Appendix B of this Service and Assessment Plan and Section 372.003 of the PID Act, constructed and installed in accordance with this Service and Assessment Plan, and any future updates and/or amendments. "Budgeted Cost(s)" means the amounts budgeted to construct the Authorized Improvements as used in the preparation of this Service and Assessment Plan. "Certification for Payment" means the certificate to be provided by the Developer, or his designee, to substantiate the Actual Cost of one or more Authorized Improvements. "City" means the City of Pearland, Texas. "City Council" means the duly elected governing body of the City. MuniCap 16 "County" means Brazoria County, Texas. "Delinquent Collection Costs" mean interest, penalties and expenses incurred or imposed with respect to any delinquent installment of an Assessment in accordance with the PID Act and the costs related to pursuing collection of a delinquent Assessment and foreclosing the lien against the Assessed Property, including attorney's fees. "Developer" means Rockefeller Acquisitions LLC, a Delaware limited liability company. "Development Agreement" means that certain "Smith Ranch Road Public Improvement District Development Agreement" by and between the City and Developer and related to the Property effective August 11, 2025, as assigned to the Developer, and as the same may be amended from time to time. "Development Lender" means Pearland Economic Development Corporation. "Lot" means a tract of land described as a "lot" in a subdivision plat recorded in the official public records of Brazoria County, Texas. "Lot Type" means a classification of final building lots with similar characteristics (e.g. commercial, light industrial, multifamily residential, single family residential, etc.), as determined by the Administrator and confirmed by the City Council. In the case of single family residential lots, the Lot Type shall be further defined by classifying the residential lots by the estimated average home value for each home at the time of assessment levy, considering factors such as density, lot size, proximity to amenities, view premiums, location, and any other factors that may impact the average home value on the lot, as determined by the Administrator and confirmed by the City Council. "Non -Benefited Property" means Parcels that accrue no special benefit from the Authorized Improvements, including Public Property and easements that create an exclusive use for a public utility provider to the extent they accrue no special benefit. Property identified as Non -Benefited Property at the time the Assessments (i) are imposed or (ii) are reallocated pursuant to a subdivision of a Parcel, is not assessed. Assessed Property converted to Non -Benefited Property, if the Assessments may not be reallocated pursuant to the provisions herein, remains subject to the Assessments and requires the Assessments to be prepaid as provided for in Section VI.E. "Parcel" or "Parcels" means a parcel or parcels within the PID identified by either a tax map identification number assigned by the Brazoria County Central Appraisal District for real property tax purposes or by lot and block number in a final subdivision plat recorded in the real property records of Brazoria County. "Reimbursement Agreement" means that certain Smith Ranch Public Improvement District Reimbursement Agreement is dated August 11, 2025, by and between the City and the Development Lender in which the Development Lender agrees to fund certain Actual Costs of Authorized Improvements and the City agrees to reimburse the Development Lender with interest permitted by the PID Act solely from Assessment Revenues for a portion of such Actual Costs of MuniCap 17 the Authorized Improvements constructed and accepted by the City for the benefit of the Assessed Property. "PID" has the meaning set forth in Section I.A of this Service and Assessment Plan. "PID Act" means Texas Local Government Code Chapter 372, Public Improvement District Assessment Act, Subchapter A, Public Improvement Districts, as amended. "Prepayment Costs" mean interest and expenses to the date of prepayment, plus any additional expenses related to the prepayment, reasonably expected to be incurred by or imposed upon the City as a result of any prepayment of an Assessment. "Public Property" means property within the boundaries of the PID that is owned by or irrevocably offered for dedication to the federal government, the State of Texas, Brazoria County, the City, a school district or any other public agency, whether in fee simple or through an exclusive use easement. "Service and Assessment Plan" means this Service and Assessment Plan prepared for the PID pursuant to the PID Act, as the same may be amended from time to time. (remainder of this page is intentionally left blank) MuniCap 18 II. PROPERTYINCLUDED IN THE PID A. PROPERTY INCLUDED IN THE PID The PID is presently located within the City and contains approximately 78.732 acres of land. A map of the property within the PID and the legal description is shown on Appendix A to this Service and Assessment Plan. (.I1- Di' Prat lllA 1) lh Raw MuniCap I9 III. DESCRIPTION OF THE AUTHORIZED IMPROVEMENTS A. AUTHORIZED IMPROVEMENT OVERVIEW 372.003. Authorized Improvements (a) If the governing body of a municipality or county finds that it promotes the interests of the municipality or county, the governing body may undertake an improvement project that confers a special benefit on a definable part of the municipality or county or the municipality's extraterritorial jurisdiction. A project may be undertaken in the municipality or county or the municipality's extraterritorial jurisdiction. (b) A public improvement may include: (i) acquisition, construction, or improvement of water, wastewater, or drainage facilities or improvements; After analyzing the public improvement authorized by the PID Act, the City has determined at this time to undertake only Authorized Improvements listed in Section III.B and shown in the opinion of probable costs and on the diagrams included as Appendix B for the benefit of the Assessed Property. Any change to the list of Authorized Improvements will require the approval of the City and an update to this Service and Assessment Plan. B. DESCRIPTIONS AND BUDGETED COSTS OF THE AUTHORIZED IMPROVEMENTS The Authorized Improvement descriptions are presented below as provided by the project engineer. The Budgeted Costs of the Authorized Improvements are shown in Table III -A. The costs shown in Table III -A are estimates and may be revised in Annual Service Plan Updates, including such other improvements as deemed necessary to further improve the properties within the PID. A description of the Authorized Improvements are as follows: Sanitary Sewer Improvements The sanitary sewer improvement portion of the Authorized Improvements consists of construction and installation of lift station, gravity sanitary sewer, force main pipes, service lines, manholes, encasements, and appurtenances necessary to provide sanitary sewer service to the Assessed Property. The sanitary sewer improvements will be designed and constructed according to City standards and specifications and will be owned and operated by the City. (remainder of this page is intentionally left blank) MuniCap 110 Other Soft and Miscellaneous Costs The soft and miscellaneous costs portion of the Authorized Improvements consists of engineering and surveying, project management fees, City inspection fees, project management fees, contingency, and other soft and miscellaneous costs. Table III -A Budgeted Costs — Authorized Improvements Authorized Improvements Total Major Improvements Sanitary sewer improvements $3,857,450 Other soft and miscellaneous costs Engineering $965,000 Contingency $873,000 Assessment levy fee and administrative expenses $150,000 Other soft and miscellaneous costs $290,000 Subtotal Other soft and miscellaneous costs $2,278,000 Total Authorized Improvements $6,135,450 (remainder of this page is intentionally left blank) MuniCap I11 IV. SERVICE PLAN A. PROJECTED SOURCES AND USES OF FUNDS The PID Act requires the service plan to cover a period of at least five years. The service plan is required to define the annual projected costs and indebtedness for the Authorized Improvements undertaken within the PID during the five year period. It is anticipated that the Authorized Improvements will be completed and accepted by the City in the 3rd quarter of 2027. The Budgeted Costs for the Authorized Improvements and expenses incurred in the establishment, administration, and operation of the PID is $6,135,450 as shown in Table IV -A. The service plan shall be reviewed and updated at least annually for the purpose of determining the annual budget for Administrative Expenses, updating the estimated Authorized Improvement costs, and updating the Assessment Roll(s). Any update to this Service and Assessment Plan is herein referred to as an "Annual Service Plan Update." Table IV -A shows the projected sources and uses for the Authorized Improvements. Tables in this Section may be rounded to the nearest whole dollar. Table IV -A Projected Sources and Uses — Authorized Improvements Sources of Funds Total Assessment amount $4,635,450 Developer advance payment $1,500,000 Total Sources $6,135,450 Uses of Funds Authorized Improvements: Sanitary sewer improvements Other soft and miscellaneous costs Engineering $3,857,450 $965,000 Contingency $873,000 Assessment levy fee and administrative expenses $150,000 Other soft and miscellaneous costs $290,000 Subtotal Other soft and miscellaneous costs $2,278,000 Subtotal Authorized Improvements $6,135,450 Total Uses $6,135,450 (remainder of this page is intentionally left blank) MuniCap 112 B. PROJECTED FIVE YEAR SERVICE PLAN The annual projected costs and annual projected indebtedness is shown by Table IV -B. The annual projected costs and indebtedness is subject to revision, and each shall be updated in the Annual Service Plan Update to reflect any changes in the costs or indebtedness expected for each year. Table IV -B Annual Projected Costs and Annual Projected Indebtedness — Authorized Improvements Annual Projected Year Cost Annual Projected Indebtedness Other Funding Sources Projected Authorized Annual Installments 2025 $766,931 2026 $3,067,725 2027 $2,300,794 2028 $0 $4,635,450 $1,500,000 $543,950 $0 $0 $546,530 $0 $0 $549,786 $0 $0 $552,665 $0 $0 $555,167 $0 $0 $558,294 $0 $0 $560,993 2029 $0 2030 $0 2031 $0 Total $6,135,450 $4,635,450 $1,500,000 $3,867,384 'Administrative Expenses in year 1-3 are being funded in year 2025. The annual projected costs shown in Table IV -B are the annual expenditures relating to the Authorized Improvements shown in Table III -B, and the costs associated with setting up the PID. The difference between the total projected cost and the total projected indebtedness, if any, is the amount contributed by the Developer. C. PID ASSESSMENT NOTICE The PID Act requires that this Service and Assessment Plan and each Annual Service Plan Update include a copy of the notice form required by Section 5.014 of the Texas Property Code. The "PID Assessment Notice" is attached hereto as Appendix E and may be updated in an Annual Service Plan Update. (remainder of this page is intentionally left blank) MuniCap 113 V. ASSESSMENT PLAN A. INTRODUCTION The PID Act requires the City Council to apportion the costs of the Authorized Improvements on the basis of special benefits conferred upon the property because of the Authorized Improvements. The PID Act provides that the costs of the Authorized Improvements may be assessed: (i) equally per front foot or square foot; (ii) according to the value of the property as determined by the governing body, with or without regard to improvements on the property; or (iii) in any other manner that results in imposing equal shares of the cost on property similarly benefited. The PID Act further provides that the governing body may establish by ordinance or order reasonable classifications and formulas for the apportionment of the cost between the municipality and the area to be assessed and the methods of assessing the special benefits for various classes of improvements. The proposed program anticipates reimbursement agreements that are intended to finance the public infrastructure required for the development. This financing will necessarily be undertaken in one phase to coincide with the private investment and development of the Authorized Improvements. For purposes of this Service and Assessment Plan, the City Council has determined that the costs of the Authorized Improvements shall be allocated as described below: 1. The Budgeted Costs of the Authorized Improvements are allocated to the Assessed Property on the basis of acreage, and that such method of allocation will result in the imposition of equal shares of the costs of the Authorized Improvements to Parcels similarly benefited. 2. The City Council has concluded that the Parcels within the PID are anticipated to receive similar level of benefit from the Authorized Improvements. Majority of the owners representing 62.68% of the acreage to be assessed must acknowledge that the Authorized Improvements to be financed confer a special benefit on their Parcel and must consent to the imposition of the Assessments to pay for the Actual Costs of such Authorized Improvements. This section of this Service and Assessment Plan currently (i) describes the special benefit received by each Parcel within the PID as a result of the Authorized Improvements, (ii) provides the basis and justification for the determination that this special benefit exceeds the amount of the Assessments to be levied on the Assessed Property for such improvements, and (iii) establishes the methodologies by which the City Council allocates and reallocates the special benefit of the Authorized Improvements, to Parcels in a manner that results in equal shares of the Actual Costs of such improvements being apportioned to Parcels similarly benefited. The determination by the City Council of the assessment methodologies set forth below is the result of the discretionary MuniCap 114 exercise by the City Council of its legislative authority and governmental powers and is conclusive and binding on the Developer and all future owners and developers of the Assessed Property. B. SPECIAL BENEFIT Assessed Property must receive a direct and special benefit from the Authorized Improvements, and this benefit must be equal to or greater than the amount of the Assessments. The Authorized Improvements are provided specifically for the benefit of the Assessed Property. The Authorized Improvements (more particularly described in line -item format in Appendix B to this Service and Assessment Plan) and the costs of issuance and payment of costs incurred in the establishment of the PID shown in Table IV -A are authorized by the PID Act. These Authorized Improvements are provided specifically for the benefit of the Assessed Property. Majority of the owners of the Assessed Property has acknowledged that the Authorized Improvements confer a special benefit on the Assessed Property and has consented to the imposition of the Assessments to pay for the Actual Costs associated therewith. Majority of the owners are acting in their interest in consenting to this apportionment and levying of the Assessments because the special benefit conferred upon the Assessed Property by the Authorized Improvements exceeds the amount of the Assessments. The Authorized Improvements provide a special benefit to the Assessed Property as a result of the close proximity of these improvements to the Assessed Property and the specific purpose of these improvements of providing infrastructure for the Assessed Property. In other words, the Assessed Property could not be used in the manner proposed without the construction of the Authorized Improvements. The Authorized Improvements are being provided specifically to meet the needs of the Assessed Property as required for the proposed use of the property. The Assessments are being levied to provide the Authorized Improvements that are required for the highest and best use of the Assessed Property (i.e., the use of the property that is most valuable, including any costs associated with that use). Highest and best use can be defined as "the reasonably probable and legal use of property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value." (Dictionary of Real Estate Appraisal, Third Edition.) The Authorized Improvements are expected to be required for the proposed use of the Assessed Property to be physically possible, appropriately supported, financially feasible, and maximally productive. The Developer has evaluated the potential use of the property and has determined that the highest and best use of the property is the use intended and the legal use for the property as described in Section II of this Service and Assessment Plan. The use of the Assessed Property as described herein will require the construction of the Authorized Improvements. Majority of the owners of the Assessed Property will ratify, confirm, accept, agree to and approve: (i) the determinations and finding by the City Council as to the special benefits described in this Service and Assessment Plan and the Assessment Ordinance; (ii) the Service and Assessment Plan and the Assessment Ordinance, and (iii) the levying of Assessments on the Assessed Property. Use of the Assessed Property as described in this Service and Assessment Plan and as authorized MuniCap 115 by the PID Act requires that Authorized Improvements be acquired, constructed, installed, and/or improved. Funding the Actual Costs of the Authorized Improvements through the PID has been determined by the City Council to be the most beneficial means of doing so. As a result, the Authorized Improvements result in a special benefit to the Assessed Property, and this special benefit exceeds the amount of the Assessment. This conclusion is based on and supported by the evidence, information, and testimony provided to the City Council. In summary, the Authorized Improvements result in a special benefit to the Assessed Property for the following reasons: 1. The Authorized Improvements are being provided specifically for the use of the Assessed Property, are necessary for the proposed best use of the property and provide a special benefit to the Assessed Property as a result; 2. Majority of the owners of Parcels within the PID have consented to the imposition of the Assessments for the purpose of providing the Authorized Improvements and are acting in their interest by consenting to this imposition; 3. The Authorized Improvements are required for the highest and best use of the property; 4. The highest and best use of the Assessed Property is the use of the Assessed Property that is most valuable (including any costs associated with the use of the Assessed Property); 5. Financing of the costs of the Authorized Improvement through the PID is determined to be the most beneficial means of providing for the Authorized Improvements; and, 6. As a result, the special benefits to the Assessed Property from the Authorized Improvements will be equal to or greater than the Assessments. C. ALLOCATION OF COSTS TO ASSESSED PROPERTY The Authorized Improvements will provide a special benefit to all property in the PID. Accordingly, the Budgeted Costs of the Authorized Improvements must be allocated throughout all Assessed Property in the PID. Table V -A summarizes the allocation of Actual Costs for the Authorized Improvement to each acre of Assessed Property. The Budgeted Costs shown in Table V -A are estimates and may be revised in Annual Service Plan Updates, but the related Assessment may not be increased. The PID is projected to contain approximately 77.7676 acres and the total acreage of Parcels owned by the Developer is 16.3208. The Budgeted Costs of the Authorized Improvements is estimated to be $6,135,450. As a result, 20.99 percent of the Budgeted Costs of the Authorized Improvements (i.e. 16.3208 _ 77.7676 = 20.99%) are allocated to the Assessed Property owned by the Developer, and 79.01 percent of the Budgeted Costs of the Authorized Improvements (i.e., 61.4468 _ 77.7676 = 79.01%) are allocated to other owners of Parcels. The proportional share of the Authorized Improvements allocated to Parcels owned by the Developer is $1,287,625 (i.e., MuniCap 116 $6,135,450 x 20.99% = $1,187,625) and the proportional share of the Authorized Improvements allocated to Parcels owned by owners other than the Developer is $4,847,825 (i.e., $6,135,450 x 79.01% = $4,847,825). According to the Development Agreement, the Developer agreed to pay $1,500,000 as an advance payment towards the Budgeted Costs of the Authorized Improvements and such amount will first be used to pay off the Assessments on Parcels owned by the Developer (i.e. $1,287,625) and the remaining amount of $212,375 will be used to reduce the Assessments due on Parcels owned by other owners. As a result, the net Assessments due from Parcels owned by the Developer is $0 ($1,287,625 - $1,287,625 = $0) and the total net Assessments due from Parcels owned by the owners other than Developer is $4,635,450 ($4,847,825 - $212,375 = $4,635,450) as shown in Table V -A below. Table V -A Allocation of the Budgeted Costs of the Authorized Improvements Authorized Improvement Estimated Costs Sanitary Sewer Improvements $3,857,450 Other Soft and Miscellaneous Costs Engineering $965,000 Contingency $873,000 Assessment levy fee and administrative expenses $150,000 Other soft and miscellaneous costs $290,000 Subtotal Other soft and miscellaneous costs $2,278,000 Total Authorized Improvements' $6,135,450 Developer Parcels Projected total acres2 16.3208 % of total acres 20.99% Proportionate Share of Costs $1,287,625 Less: Developer advance payment ($1,287,625) Net share of costs/ Assessments Other Assessed Property Projected total acres2 61.4468 % of total acres 79.01% Proportionate Share of Costs $4,847,825 Less: Developer additional advance payment3 ($212,375) Net share of Costs/ Assessments $4,635,450 'See Table III -A for details. 2According to the 2024 tax statements through the Brazoria Tax Assessor -Collector Office. 'This amount represents the advanced payment by the Developer that is used to reduce the Assessments due on Parcels owned by other owners. MuniCap 117 D. ASSESSMENT METHODOLOGY The costs of the Authorized Improvements may be assessed by the City Council against the Assessed Property so long as the special benefit conferred upon the Assessed Property by the Authorized Improvements equals or exceeds the Assessments. The costs of the Authorized Improvements may be assessed using any methodology that results in the imposition of equal shares of the Actual Costs on Assessed Property similarly benefited. For purpose of this Service and Assessment Plan, the City Council has determined that the Budgeted Costs of the Authorized Improvements to be financed with the Reimbursement Agreement, shall be allocated to the Assessed Property by spreading the entire Assessment across the Parcels based on the Parcel acreage shown in Brazoria Central Appraisal District (BCAD) online records. Based on the Budgeted Costs of the Authorized Improvements, as set forth in Table III -A, the City Council has determined that the benefit to the Assessed Property is at least equal to the Assessments levied on the Assessed Property. Upon subsequent divisions of any Parcel of Assessed Property, the Assessment applicable to it will then be apportioned pro rata based on the acreage of each newly created Parcel. The Assessment and Annual Installments for each Parcel the PID is shown on the Assessment Roll, attached as Appendix F, and no Assessment shall be changed except as authorized by this Service and Assessment Plan or the PID Act. E. ASSESSMENTS The Assessments for the Reimbursement Agreement will be levied on each Parcel or Lot according to the Assessment Roll. The Annual Installments for the Reimbursement Agreement will be collected on the dates and in the amounts shown on the Assessment Roll, subject to revisions made during an Annual Service Plan Update. Non -Benefited Property will not be subject to any Assessments. See Appendix D for Assessment per unit, leverage, and estimated tax rate equivalent calculation details. F. ADMINISTRATIVE EXPENSES The cost of administering the PID and collecting the Annual Installments shall be paid for on a pro rata basis by each Parcel based on the amount of Assessment levied against the Parcel. The Administrative Expenses shall be collected as part of and in the same manner as Annual Installments in the amounts shown on the Assessment Roll, which may be revised based on actual costs incurred in Annual Service Plan Updates. (remainder of this page is intentionally left blank) MuniCap 118 VI. TERMS OF THE ASSESSMENTS A. AMOUNT OF ASSESSMENTS AND ANNUAL INSTALLMENTS FOR PARCELS LOCATED WITHIN THE DISTRICT The Assessment and Annual Installments for each Assessed Property located within the PID is shown on the Assessment Roll, attached as Appendix F, and no Assessment shall be changed except as authorized by this Service and Assessment Plan and the PID Act. The Annual Installments shall be collected from the Assessed Property in an amount sufficient to pay (i) principal and interest on the Reimbursement Agreement and (ii) to pay Administrative Expenses related to the PID. B. REALLOCATION OF ASSESSMENTS 1. Subdivision Upon the subdivision of any Parcel, the Assessment for the Parcel prior to the subdivision shall be reallocated among the new subdivided Parcels according to the following formula: A=Bx(C=D) Where the terms have the following meanings: A = the Assessment for each new subdivided Parcel B = the Assessment for the Parcel prior to subdivision C = the estimated acreage of each new subdivided Parcel D = the sum of the acreage of all of the new subdivided Parcels The calculation of the estimated number of units to be built on a Parcel shall be performed by the Administrator and confirmed by the City Council based on the information available regarding the use of the Parcel. The estimate as confirmed shall be conclusive. The sum of the Assessments for all newly subdivided Parcels shall equal the Assessment for the Parcel prior to subdivision. The calculation shall be made separately for each newly subdivided Parcel. The reallocation of an Assessment for a Parcel that is a homestead under Texas law may not exceed the Assessment prior to the reallocation and to the extent the reallocation would exceed such amount, it shall be prepaid by such amount by the party requesting the subdivision of the Parcels. Any reallocation pursuant to this section shall be reflected in an Annual Service Plan Update approved by the City Council. 2. Consolidation Upon the consolidation of two or more Parcels, the Assessment for the consolidated Parcel shall be the sum of the Assessments for the Parcels prior to consolidation. The reallocation of an MuniCap 119 Assessment for a Parcel that is a homestead under Texas law may not exceed the Assessment prior to the reallocation and to the extent the reallocation would exceed such amount, it shall be prepaid by such amount by the party requesting the consolidation of the Parcels. Any reallocation pursuant to this section shall be reflected in an Annual Service Plan Update approved by the City Council. C. MANDATORY PREPAYMENT OF ASSESSMENTS 1. If a Parcel subject to Assessments is transferred to a party that is exempt from the payment of the Assessment under applicable law, or if an owner causes a Parcel subject to Assessments to become Non -Benefited Property, the owner of such Parcel shall pay to the City the full amount of the principal portion of the Assessment on such Parcel, plus all Prepayment Costs, prior to any such transfer or act. 2. The payments required above shall be treated the same as any Assessment that is due and owing under the PID Act, the Assessment Ordinance, and this Service and Assessment Plan, including the same lien priority, penalties, procedures, and foreclosure specified by the PID Act. D. REDUCTION OF ASSESSMENTS 1. If after all Authorized Improvements to be funded with the Reimbursement Agreement, have been completed and Actual Costs for such Authorized Improvements are less than the Budgeted Costs of the Authorized Improvements used to calculate the Assessments securing such Reimbursement Agreement, then the Assessment securing such Reimbursement Agreement, for each Parcel of Assessed Property shall be reduced by the City Council pro rata such that the sum of the resulting reduced Assessments for all Assessed Properties equals the actual reduced Actual Costs. The Assessments shall not be reduced to an amount less than the obligation under the Reimbursement Agreement. If all of the Authorized Improvements are not completed, the City may reduce the Assessments in another method if it determines such method would better reflect the benefit received by the Parcels from the Authorized Improvements completed. 2. If all the Authorized Improvements are not undertaken, resulting a need to reduce the obligations under the Reimbursement Agreement, then the Assessments and Annual Installments for each Parcel shall be appropriately reduced by the City Council to reflect only the amounts required to any remaining obligations under the Reimbursement Agreement, including interest and Administrative Expenses, and, in such event, any such excess bond proceeds shall be applied to reduce the Obligation under the Reimbursement Agreement. The City Council may reduce the Assessments and the Annual Installments for each Parcel (i) in an amount that represents the Authorized Improvements provided for each Parcel or (ii) by an equal percentage calculated based on acreage, if determined by the City Council to be the most fair and practical means of reducing the Assessments for each Parcel such that the sum of the resulting reduced Assessments equals the amount required to repay the obligations under the Reimbursement Agreement, including interest thereon and Administrative Expenses. The principal portion of the Assessment for each Parcel shall be reduced pro rata to the reduction in the Assessments for each Parcel such that the sum of the resulting reduced principal portion of the obligations under the Reimbursement Agreement, is equal to the outstanding principal amount outstanding under the Reimbursement Agreement. MuniCap 120 E. PAYMENT OF ASSESSMENTS 1. Payment in Full (a) The Assessment for any Parcel may be paid in full at any time. Such payment shall include all Prepayment Costs. (b) If an Annual Installment has been billed prior to payment in full of an Assessment, the Annual Installment shall be due and payable and shall be credited against the payment -in -full amount. (c) Upon payment in full of the Assessment and all Prepayment Costs, the City shall deposit the payment in accordance with the Service and Assessment Plan, whereupon, the Assessment shall be reduced to zero, and the owner's obligation to pay the Assessment and Annual Installments thereof shall automatically terminate. 2. Payment in Annual Installments The PID Act provides that an Assessment for a Parcel may be paid in full at any time. If not paid in full, the PID Act authorizes the Assessment to be paid in installments and additionally allows the City to collect interest, administrative expenses and other authorized charges in installments. An Assessment for a Parcel that is not paid in full will be collected in Annual Installments each year in the amounts shown on the Assessment Rolls, as updated as provided for herein, which include interest, Administrative Expenses. Each Assessment levied against the Assessed Property for the Authorized Improvements shall be paid with an estimated interest rate of no more than the actual interest rate paid on the Reimbursement Agreement. Interest on the Reimbursement Agreement shall be paid based on an estimated interest rate of 5.50% per annum for years 1 through 20. No interest will be accrued on the Assessments until the public improvements are completed and accepted by the City. The interest on the Reimbursement Agreement shall be paid at a rate not to exceed five hundred basis points (5.00%) above the highest average index rate for tax-exempt bond reported in a daily or weekly bond index approved by the City and reported in the month prior to the establishment of the Assessments securing such portion of the Reimbursement Agreement and continuing for a period of five years from such date. Such rate shall then adjust and shall not exceed two hundred basis points (2.00%) above the bond index rate described above and shall continue until the Assessments are paid in full. The index approved by the City is the Bond Buyer Index for which the highest average rate during the previous thirty days prior to the levy of Assessments on the Assessed Property securing the Reimbursement Agreement was 5.50%. The City has determined that the Reimbursement Agreement shall bear interest at the estimated interest rate of 5.50% per annum for years 1 through 20, which rates are equal to or less than the initial maximum allowable rate of interest of 7.50% for years 1 through 20. Furthermore, the Annual Installments of the Assessments levied against the Assessed Property for the Authorized Improvements may not exceed the amounts shown on the Assessment Roll. The Assessment Roll is shown as Appendix F. MuniCap 121 Reduction of Assessments The Annual Installments shall be reduced to equal the actual costs of repaying the Reimbursement Agreement and actual Administrative Expenses (as provided for in the definition of such term), taking into consideration any other available funds for these costs, such as interest income on account balances. F. COLLECTION OF ANNUAL INSTALLMENTS No less frequently than annually, the Administrator shall prepare, and the City Council shall consider, an Annual Service Plan Update to allow for the billing and collection of Annual Installments. Each Annual Service Plan Update shall include updated Assessment Rolls and a calculation of the Annual Installment for each Parcel. Administrative Expenses shall be allocated among Parcels in proportion to the amount of the Annual Installments for the Parcels. Each Annual Installment shall be reduced by any credits applied. Annual Installments shall be collected by the City in the same manner and at the same time as ad valorem taxes and shall be subject to the same penalties, procedures, and foreclosure sale in case of delinquencies as are provided for ad valorem taxes of the City. The City Council may provide for other means of collecting the Annual Installments to the extent permitted under the PID Act. The Assessments shall have lien priority as specified in the PID Act. The Annual Installments must be paid in amounts necessary to meet annual costs for those Authorized Improvements financed by the Assessment and must continue for a period necessary to retire the indebtedness incurred to pay the costs of those Authorized Improvements (including interest). Accrual of interest shall begin on September 1 following the completion and acceptance of the Authorized Improvements by the City. Property owners can pay the Annual Installments following completion of the Authorized Improvements and availability for use. If a Parcel owner chooses not to pay Annual Installments from the beginning, Assessment will be due in full (including accrued interest) at the time of (a) transfer of ownership to an unrelated entity, or (b) at the time of recording of any plat for development. Interest will begin to accrue once the Authorized Improvements are authorized for use by the City in the area. Each Annual Installment, including the interest on the unpaid amount of an Assessment, shall be calculated as of September 1 and updated annually. Each Annual Installment billed for collection, together with interest thereon, shall be delinquent if not paid prior to February 1 of the following year. If an owner of a Parcel chooses to delay payment of Annual Installments after completion and acceptance of the Authorized Improvements, the Annual Installments will be recalculated for the remainder of the PID term, starting with the year the owner of the Parcel chooses to pay until the end of the term. Different scenarios of Annual Installment recalculations in Appendix G for illustration purposes. Any sale of property for nonpayment of the Annual Installments shall be subject to the lien established for the remaining unpaid Annual Installments against such property and such property may again be sold at a judicial foreclosure sale if the purchaser thereof fails to make timely MuniCap 122 payment of the non -delinquent Annual Installments against such property as they become due and payable. (remainder of this page is intentionally left blank) MuniCap 123 VII. THE ASSESSMENT ROLL A. ASSESSMENT ROLL The City Council has evaluated each Parcel in the District (based on numerous factors such as the applicable zoning for developable area, the Public Property, the types of public improvements, and other development factors deemed relevant by the City Council) to determine the amount of Assessed Property within the District. The Assessed Property has been assessed for the special benefits conferred upon the property resulting from the Authorized Improvements. Table VII -A summarizes the $6,135,450 in special benefit received by the Assessed Property from the Authorized Improvements, a portion of the costs of the PID formation. The par amount of the Reimbursement Agreement is $4,635,450, which is less than or equal to the benefit received by the Assessed Property. Accordingly, the total Assessment to be applied to all the Assessed Property is $4,635,450 plus annual Administrative Expenses. The Assessment for each Assessed Property is calculated based on the allocation methodologies described in Section V.D. The Assessment Roll is attached hereto as Appendix F. Table VII -A Authorized Special Benefit Summary Special Benefit Total Cost Total Authorized Improvements' $6,135,450 Special Benefit: Total Special Benefit Projected Assessment Excess Benefit $6,135,450 $4,635,450 $1,500,000 See Table III -B for details. B. ANNUAL ASSESSMENT ROLL UPDATES The Administrator shall prepare, and shall submit to the City Council for approval, annual updates to the Assessment Roll in conjunction with the Annual Service Plan Update to reflect the following matters, together with any other changes helpful to the Administrator or the City and permitted by the PID Act: (i) the identification of each Parcel (ii) the Assessment for each Parcel of Assessed Property, including any adjustments authorized by this Service and Assessment Plan or in the PID Act; (iii) the Annual Installment for the Assessed Property for the year (if the Assessment is payable in installments); and (iv) payments of the Assessment, if any, as provided by Section VI.G of this Service and Assessment Plan. (remainder of this page is intentionally left blank) MuniCap 124 VIII. MISCELLANEOUS PROVISIONS A. ADMINISTRATIVE REVIEW The City may elect to designate a third party to serve as Administrator. The City shall notify Developer in writing at least thirty (30) days in advance before appointing a third party Administrator. To the extent consistent with the PID Act, an owner of an Assessed Parcel claiming that a calculation error has been made in the Assessment Roll(s), including the calculation of the Annual Installment, shall send a written notice describing the error to the City not later than thirty (30) days after the date any amount which is alleged to be incorrect is due prior to seeking any other remedy. The Administrator shall promptly review the notice, and if necessary, meet with the Assessed Parcel owner, consider written and oral evidence regarding the alleged error and decide whether, in fact, such a calculation error occurred. If the Administrator determines that a calculation error has been made and the Assessment Roll should be modified or changed in favor of the Assessed Parcel owner, such change or modification shall be presented to the City Council for approval to the extent permitted by the PID Act. A cash refund may not be made for any amount previously paid by the Assessed Parcel owner (except for the final year during which the Annual Installment shall be collected or if it is determined there are sufficient funds to meet the expenses of the PID for the current year), but an adjustment may be made in the amount of the Annual Installment to be paid in the following year. The decision of the Administrator regarding a calculation error relating to the Assessment Roll may be appealed to the City Council. Any amendments made to the Assessment Roll(s) pursuant to calculation errors shall be made pursuant to the PID Act. The decision of the Administrator, or if such decision is appealed to the City Council, the decision of the City Council shall be conclusive as long as there is a reasonable basis for such determination. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to any other appeal or legal action by such owner. B. TERMINATION OF ASSESSMENTS Each Assessment shall be extinguished on the date the Assessment is paid in full, including unpaid Annual Installments and Delinquent Collection Costs, if any. After the extinguishment of an Assessment and the collection of any delinquent Annual Installments and Delinquent Collection Costs, the City shall provide the owner of the affected Parcel a recordable "Notice of the PID Assessment Termination". C. AMENDMENTS Amendments to the Service and Assessment Plan can be made as permitted or required by the PID Act and under Texas law. MuniCap 125 The City Council reserves the right to the extent permitted by the PID Act to amend this Service and Assessment Plan without notice under the PID Act and without notice to property owners of Parcels:(i) to correct mistakes and clerical errors; (ii) to clarify ambiguities; and (iii) to provide procedures for the collection and enforcement of Assessments, Prepayment Costs, Collection Costs, and other charges imposed by the Service and Assessment Plan. D. ADMINISTRATION AND INTERPRETATION OF PROVISIONS The City Council shall administer the PID, this Service and Assessment Plan, and all Annual Service Plan Updates consistent with the PID Act and shall make all interpretations and determinations related to the application of this Service and Assessment Plan unless stated otherwise herein, such determination shall be conclusive. E. SEVERABILITY If any provision, section, subsection, sentence, clause or phrase of this Service and Assessment Plan or the application of same to an Assessed Parcel or any person or set of circumstances is for any reason held to be unconstitutional, void or invalid, the validity of the remaining portions of this Service and Assessment Plan or the application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the City Council in adopting this Service and Assessment Plan that no part hereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any other part hereof, and all provisions of this Service and Assessment Plan are declared to be severable for that purpose. If any provision of this Service and Assessment Plan is determined by a court to be unenforceable, the unenforceable provision shall be deleted from this Service and Assessment Plan and the unenforceable provision shall, to the extent possible, be rewritten to be enforceable and to give effect to the intent of the City. (remainder of this page is intentionally left blank) MuniCap 126 APPENDIX A PID MAP Agenda Item 2. 710 City Council Regular Meeting - Aug 11 2025 Agenda Item 2. 01/17/2025 Allison -Richey Gulf Coast Home Subdivision in Section 85 H. T. & B.R.R. Company Survey, A-304, Brazoria County, Texas City of Pearland Smith Ranch Public Improvement District (PID) 78.732 Acres DESCRIPTION Of 78.732 acres of land situated in Section 85 of the H. T. & B. RR. Company Survey, Abstract 304, Brazoria County, Texas. Said 78.732 acres being out of Lots 1 through 6, Lots 11 and 12, all of Lot 15, and a portion of Lot 16 of the Allison -Richey Gulf Coast Home Subdivision, according to the plat thereof recorded in Volume (Vol.) 2, Page (Pg.) 107 of the Brazoria County Plat Records (B.C.P.R.). Said 78.732 acres being comprised of all or portions of the tracts listed below: 11.570 acres tract conveyed by Correction Instrument to Chan, LLC as recorded in Instrument Number (Inst. No.) 2021031720 of the Official Public Records of Brazoria County, Texas (O.P.R.B.C.T.); Two Acres tract conveyed by deed to Chris Mosely, as recorded in Inst. No. 201621224, O.P.R.B.C.T.; 1.000 acre tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Inst. No. 2022056943, O.P.R.B.C.T.; 0.1858 acre tract conveyed by deed to Guillermo Proestakis, as recorded in Inst. No. 202138128, O.P.R.B.C.T.; 0.4579 acre tract conveyed by deed to Chay Ung, as recorded in Document Number (Doc. No.) 2011001608, O.P.R.B.C.T.; One Acre tract (Tract One) conveyed by deed to Carlos Lewis, Jr., Keith RoShawn Lewis, and Kevin Donnel Lewis, as recorded in Inst. No. 2023052312, O.P.R.B.C.T.; 1/2 —Acre (Tract Two) conveyed by deed to Carlos Lewis, Jr., Keith RoShawn Lewis, and Kevin Donnel Lewis, as recorded in Inst. No. 2023052312, O.P.R.B.C.T.; 0.78 acre tract (Tract #2) conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Doc. No. 2006026952, O.P.R.B.C.T.; 1.0638 acres tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Inst. No. 2013000516, O.P.R.B.C.T.; 0.563 acre tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Inst. No. 2017024086, O.P.R.B.C.T.; 0.600 acre tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Inst. No. 2017024086, O.P.R.B.C.T.; 0.42 acre tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Doc. No. 2006024212, O.P.R.B.C.T.; Page 211 of 710 City Council Regular Meeting - Aug 11 2025 Agenda Item 2. 01/17/2025 Allison -Richey Gulf Coast Home Subdivision in Section 85 H. T. & B.R.R. Company Survey, A-304, Brazoria County, Texas 0.455 acre tract (Tract 1) conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Inst. No. 2022023392, O.P.R.B.C.T.; 0.455 acre tract (Tract 2) conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Inst. No. 2022023392, O.P.R.B.C.T.; 1.33 acres tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Doc. No. 2007004403, O.P.R.B.C.T.; 1.00 acre tract (Tract #1) conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Doc. No. 2006026952, O.P.R.B.C.T.; 0.08 acre tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Doc. No. 2007004403, O.P.R.B.C.T.; 10 acres (Lot 15) conveyed by deed to Nizam M. Meah and Jesmin R. Meah, as recorded in Doc. No. 2001001387, O.P.R.B.C.T.; 2.0243 acres tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Doc. No. 2011026943, O.P.R.B.C.T.; 0.9182 acre tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Doc. No. 2006054005, O.P.R.B.C.T.; 0.3329 acre tract conveyed by deed to Massoud Motamedi, as recorded in Doc. No. 2006006751, O.P.R.B.C.T.; 1.6671 acres tract conveyed by deed to Massoud Motamedi, as recorded in Doc. No. 2005000485, O.P.R.B.C.T.; 2.00 acres tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Doc. No. 2006063236, O.P.R.B.C.T.; 2.0000 acres tract conveyed by deed to ALIMAS PROPERTIES, LTD., as recorded in Inst. No. 2013008474, O.P.R.B.C.T.; 1.004 acres tract conveyed by deed to Huong T. Tran, as recorded in Doc. No. 2020059552, O.P.R.B.C.T.; 0.53 acre tract conveyed by deed to Larry Gehring and John Gehring, as recorded in Inst. No. 2009034899, O.P.R.B.C.T.; 3.347 acres tract conveyed by deed to John Gehring, as recorded in Vol. 1537, Pg. 93, B.C.D.R., O.P.R.B.C.T.; 5.00 acres tract conveyed by deed to John Gehring, as recorded in Vol. 1522, Pg. 879, B.C.D.R., O.P.R.B.C.T.; Called 100' x 150' tract conveyed by deed to Southwestern Bell Telephone Company, as recorded in Vol. 1692, Pg. 678, B.C.D.R., O.P.R.B.C.T.; Page 212 of 710 City Council Regular Meeting - Aug 11 2025 Agenda Item 2. 01/17/2025 Allison -Richey Gulf Coast Home Subdivision in Section 85 H. T. & B.R.R. Company Survey, A-304, Brazoria County, Texas Remainder of Lots 1 & 2 Allison -Richey Gulf Coast Home Company subdivision, conveyed by deed to Richard Lee Atcheson and wife Tessy A. Atcheson, as recorded in Doc. No. 1994037405, O.P.R.B.C.T.; 8.000 acres tract (Tract I) conveyed by deed to Sontrin Apartments, LLC, as recorded in Inst. No. 2022018081, O.P.R.B.C.T.; Called (Tract II) conveyed by deed to Sontrin Apartments, LLC, as recorded in Inst. No. 2022018081, O.P.R.B.C.T.; Remainder of the West half of Lot 11, Allison -Richey Gulf Coast Home Co., conveyed by deed to Phuong Pham and Hiep Pham, as recorded in Inst. No. 2016007641, O.P.R.B.C.T.; Said 78.732 acres being more particularly described by metes and bounds as follows; (Bearings based on Texas State Plane Coordinates, South Central Zone 4204, NAD83) BEGINNING at the southwest corner of the herein described tract, same being the northwest corner Pearland Office Park, Block 1, Lot 1 according to the plat thereof recorded under Doc. No. 2018021087 of the B.C.P.R., same corner being at the intersection of the south line of said 11.570 acres and the east right-of-way line of Smith Ranch Road (R.O.W. Varies — Vol.2, Pg.107- Inst. Nos. 2018021087, 2022057920, 2022001233, O.P.R.B.C.T.),; THENCE North 03° 14' 38" West along the east right-of-way of Smith Ranch Road and across said 11.570 acres, pass a distance of 278.79 feet the common line of said 11.570 acres and said Two Acres, pass a distance of 494.93 feet the north line of said Two Acres, pass a distance of 535.07 feet the south line of said 0.1858 acre, pass a distance of 594.30 feet the common line of said 0.1858 acre tract and said 0.4579 acre tract, pass a distance of 742.41 feet the common line of said 0.4579acre tract and said 0.563 acre tract, pass a distance of 1252.19 feet the common line of said 0.9182 acre tract and said 0.3329 acre tract, and continuing along the east right-of-way line of Smith Ranch Road for a total distance of 1,263.31 feet to a point for corner; THENCE North 86° 45' 22" East a distance of 8.00 feet continuing along the right-of-way line of said Smith Ranch Road to a point for corner; THENCE North 03° 14' 38" West along the east right-of-way of Smith Ranch Road, pass a distance of 294.62 feet the common line of said 1.004 acres tract and said 0.53 acre tract, pass a distance of 386.42 feet the common line of said 0.53 acre tract and said 3.347 acres, and continuing along the east right-of-way line of Smith Ranch Road for a distance of 417.42 feet to a point for the beginning of a curve to the right; THENCE across said 3.347 acres, continuing along the east right-of-way of Smith Ranch Road with said curve having a radius of 1,942.00 feet, a central angle of 04° 03' 08", a chord bearing and distance of North 01° 13' 04" West — 137.32 feet and an arc length of 137.35 feet to a point of reverse curve; THENCE along said curve having a radius of 2,058.00 feet, a central angle of 04° 03' 08", a chord bearing and distance of North 01° 13' 04" West — 145.52 feet and an arc length of 145.55 feet to a point of tangent; Page 213 of 710 City Council Regular Meeting - Aug 11 2025 Agenda Item 2. 01/17/2025 Allison -Richey Gulf Coast Home Subdivision in Section 85 H. T. & B.R.R. Company Survey, A-304, Brazoria County, Texas THENCE North 03° 14' 38" West continuing along the east right-of-way of said Smith Ranch Road, pass a distance of 11.46 feet the common line of said 5.00 acres tract and said 100' by 150' Southwestern Bell Telephone Company tract for a total distance of 227.71 feet to a point for the beginning of a curve to the right; THENCE continuing along the east right-of-way of Smith Ranch Road with said curve having a radius of 982.00 feet, a central angle of 02° 44' 58", a chord bearing and distance of North 01° 52' 09" West — 47.12 feet and an arc length of 47.12 feet to a point for corner; THENCE South 89° 30' 20" West a distance of 8.00 feet continuing along the right-of-way line of said Smith Ranch Road to a point for the beginning of a non -tangent curve to the right; THENCE continuing along the right-of-way line of said Smith Ranch Road with said curve having a radius of 990.00 feet, a central angle of 17° 54' 18", a chord bearing and distance of North 08° 27' 29" East — 308.12 feet and an arc length of 309.38 feet to a point of point of reverse curve; THENCE along said curve having a radius of 1,090.00 feet, a central angle of 15° 32' 26", a chord bearing and distance of North 09° 38' 26" East — 294.74 feet and an arc length of 295.65 feet to a point for corner; THENCE along the southeast cut -back lines of said Smith Ranch Road right-of-way (Inst. No. 20180378686, O.P.R.B.C.T.), common with the northwest lines of the herein described tract, the following courses and distances; North 86° 30' 57" East a distance of 11.95 feet to a point; North 03° 04' 07" West a distance of 18.87 feet to a point; North 41° 23' 04" East a distance of 48.75 feet to a point; North 86° 19' 35" East a distance of 17.95 feet to a point; North 03° 24' 55" West a distance of 29.71 feet to a point for corner in the south right-of-way line of Hughs Ranch Road (R.O.W. Varies); THENCE North 86° 23' 42" East a distance of 636.54 feet continuing along the south line of said Hughs Ranch Road and the north line of said remainder of Lots 1 & 2 Allison - Richey Gulf Coast Home Company subdivision tract to an angle point at the northeast corner of said Lot 1 and the northwest corner of said Lot 11; THENCE North 86° 40' 19" East a distance of 440.00 feet continuing along the south line of said Hughs Ranch Road and the north line of said remainder of west half of Lot 11 tract and north line of said Tract II of Sontrin Apartments, LLC tract to a point for the northwest corner of Lot 8 of Serene Gardens according to the plat thereof recorded under Doc. No. 2012007617, O.P.R.B.C.T., THENCE South 03° 14' 39" East a distance of 940.64 feet along the east line of the herein described tract and the west line of said Serene Gardens to a point for corner in the north line of said Lot 13; THENCE South 86° 45' 21" West a distance of 440.00 feet along the common line of Lots 12 & 13 of said Allison -Richey Gulf Coast Home Company subdivision to a point for corner; Page 214 of 710 City Council Regular Meeting - Aug 11 2025 Agenda Item 2. 01/17/2025 Allison -Richey Gulf Coast Home Subdivision in Section 85 H. T. & B.R.R. Company Survey, A-304, Brazoria County, Texas THENCE South 03° 14' 39" East a distance of 985.10 feet along the east line of said 5.00 acres John Gehring tract and said 3.347 acres John Gehring tract and the 2.0000 acres Alimas tract, same being the west line of Lots 13 & 14 of said Allison -Richey Gulf Coast Home Company subdivision to a point for the southwest corner of said Lot 14 and the northwest corner of Lot 15 of said Allison -Richey Gulf Coast Home Company subdivision to a point for corner; THENCE North 86° 45' 21" East a distance of 880.00 feet along the north line said of said 10 acres Nizam M. Meah and Jesmin R. Meah tract to the northeast corner of said Lot 15; THENCE South 03° 14' 39" East a distance of 495.00 feet along the east line of said Lot 15 to the southeast corner of said 10 acres Nizam M. Meah and Jesmin R. Meah tract, same being the northeast corner of a called 4.22 acres tract conveyed by deed to Nizam M. Meah and wife Jesmin R. Meah as recorded in Doc. No. 2004068796, O.P.R.B.C.T.; THENCE South 86° 45' 21" West a distance of 880.00 feet along the common line of Lots 15 & 16 of said Allison -Richey Gulf Coast Home Company subdivision to a point for corner; THENCE South 03° 14' 39" East a distance of 214.47 feet along the west line of said 4.22 acres tract to a point for corner in the north line of said 11.570 acres Chan LLC tract; THENCE North 86° 45' 21" East a distance of 880.00 feet along the common line of said 4.22 acres and 11.570 acres to a point for corner; THENCE South 03° 14' 39" East a distance of 280.53 feet along the east line of said 11.570 acres Chan LLC tract to a point for the southeast corner of the herein describe tract, same being the northeast corner of Reserve "B", Block 2 of said Pearland Office Park; THENCE South 86° 45' 21" West a distance of 1720.00 feet along the south line of said 11.570 acres and the north line of said Pearland Office Park to the PLACE OF BEGINNING of the herein described tract of land and containing within these calls 79.732 acres or 3,473,144 square feet of land. SAVE AND EXCEPT that certain called 1.000 acre tract conveyed by deed to Paul M. Edwards and Josephine Edwards, as recorded in Vol. 1492, Pg. 872, Brazoria County Deed Records (B.C.D.R.), O.P.R.B.C.T.; for a net area of 78.732 acres or 3,429,584 square feet of land. This document was prepared under 22 TAC §663.21, does not reflect the results of an on the ground survey, and is not to be used to convey or establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. Benjamin Lowe, RPLS Texas Registration No. 6944 LJA Surveying, Inc. Page 215 of 710 City Council Regular Meeting - Aug 11 2025 Agenda Item 2. t=205 .119 =20595' 9.t8264 294.74 9.90.60, iB 1.9399.39 .1.99 T24E 3]9.12 40 MOT 37 00 78.732 ACRES 3,429,584 SQ. FT. 9949199 SOO 45 720.09 '4 88009 45 880. City of Pearland Smith Ranch ca o.e.w......�.os Public Improvement District (PID) 78.732 Acres 7.77.7"g1,7 a;y7,m..wm X.T. & B.R.R. CO. SURVEY, A-304 BRAZORIA COUNTY, TEXAS JANUARY', 2025 JOB NO SOO, -1957-2000 OOP 19 300 CP LJA\SIRiVEYING. INC. 2091 E Broadway street Phone .1930020. 5949130 Pearland, Texas 77501 939E. Firm No.10194382 Page 216 of 710 City Council Regular Meeting - Aug 11 2025 APPENDIX B BUDGETED COSTS OF AUTHORIZED IMPROVEMENTS EM FREESE riM?NICNQLS OPINION OF PROBABLE CONSTRUCTION COST PROJECT NAME Regional Smith Ranch WW Improvement 5/10/2024 CLIENT City of Pearland DATE SUBMITTAL Preliminary Engineering ITEM DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL GENERAL WORK 1 MOBILIZATION (MAX 3% OF TOTAL COST) 1 LS $ 106,000.00 $ 106,000 2 TRAFFIC CONTROL 1 LS $ 25,000.00 $ 25,000 3 STORM WATER POLLUTION PREVENTION PLAN AND CONTROL 1 LS $ 20,000.00 $ 20,000 4 TRENCH SAFETY 4300 LS $ 5.00 $ 21,500 5 GROUNDWATER CONTROL FOR OPEN -CUT CONSTRUCTION 4300 LS $ 30.00 $ 129,000 6 HYDROMULCH SEEDING 1 LS $ 20,000.00 $ 20,000 GRAVITY SANITARY SEWER 7 FURNISH AND INSTALL 8" PVC SDR-26 SANITARY SEWER BY OPEN -CUT CONSTRUCTION 1400 LF $ 128.00 $ 179,200 8 FURNISH AND INSTALL 10" PVC SDR-26 SANITARY SEWER BY OPEN -CUT CONSTRUCTION 600 LF $ 160.00 $ 96,000 9 FURNISH AND INSTALL 12" PVC SDR-26 SANITARY SEWER BY OPEN -CUT CONSTRUCTION 2300 LF $ 192.00 $ 441,600 10 FURNISH AND INSTALL 5' PRECAST CONCRETE DIAMETER MANHOLE 7 EA $ 18,000.00 $ 126,000 11 FURNISH AND INSTALL 6' PRECAST CONCRETE DIAMETER MANHOLE 5 EA $ 20,000.00 $ 100,000 12 POST CONSTRUCTION CLEAN AND TV INSPECTION OF 8-12" PIPE 4300 LF $ 3.00 $ 12,900 13 REMOVE AND REPLACE CONCRETE DRIVEWAY 100 SY $ 150.00 $ 15,000 LIFT STATION 14 WET WELL STRUCTURE CONSTRUCTION 1 LS $ 480,000.00 $ 480,000 15 TWO (2) SUBMERSIBLE PUMPS FOR 0.8 MGD PEAK FLOW 1 LS $ 160,000.00 $ 160,000 16 MISC. ELECTRICAL EQUIPMENT 1 LS $ 255,000.00 $ 255,000 17 PIPING AND VALVES 1 LS $ 105,000.00 $ 105,000 18 GENERATOR 1 LS $ 95,000.00 $ 95,000 19 SITE IMPROVEMENTS 1 LS $ 10,000.00 $ 10,000 FORCE MAIN 20 FURNISH AND INSTALL 6" PVC FORCE MAIN BY TRENCHLESS CONSTRUCTIC 3700 LF $ 140.00 $ 518,000 21 FURNISH AND INSTALL 6" PVC FORCE MAIN IN 12" STEEL CASING PIPE BY AUGER AND BORE 1000 LF $ 600.00 $ 600,000 22 2" COMBINATION AIR RELEASE/VACUUM VALVE & MANHOLE 5 EA $ 17,500.00 $ 82,250 23 CONNECT TO DISCHARGE MANHOLE 1 EA $ 10,000.00 $ 10,000 SUBTOTAL $ 3,607,450 PROPERTY & EASEMENT ACQUISITION $ 250,000 SUBTOTAL $ 3,857,450 CONTINGENCY 25% $ 965,000 SUBTOTAL $ 4,822,450 ENG/SURVEY 20% $ 965,000 PROJECT TOTAL (2024 COSTS) $ 5,787,450 COST ESCALATION FACTOR PROJECT TOTAL (2025 COSTS) 5.0% 290,000 6,077,450 The Engineer has no control over the cost of labor, materials, equipment, or over the Contractor's methods of determining prices or over competitive bidding or market conditions. Opinions of probable costs provided herein are based on the information known to Engineer at this time and represent only the Engineer's judgment as a design professional familiar with the construction industry. The Engineer cannot and does not guarantee that proposals, bids, or actual construction costs will not vary from its opinions of probable costs. NOTES: 1 FNI OPCC classified as an AACE Class 5 Estimate with accuracy range or -30 to + 50. Page 1 of 3 APPENDIX C DIAGRAMS OF THE AUTHORIZED IMPROVEMENTS Smith Ranch LS (LS #65) Futur n Proposed Lift Station — Proposed Gravity Main n Proposed Force Main Proposed Road Cry0100 By Nona OM NCR04. oN Job NO PRL2J IBI location H W_W?/PLAHHOI o OELNERABLE506REDUbriFlOnpIFRMecbm 9%_OOBVRmed Updated:FMf.Mry 10.202a n:20A1 AM User Name: 03•12 Wooten 6" FM. 12" C Proposed Lift Station SCALEIN FEET APPENDIX D ASSESSMENT PER UNIT, PROJECTED LEVERAGE AND PROJECTED TAX RATE EQUIVALENTS Appendix D For purposes of calculating and allocating the Assessments, the Assessed Property has been allocated by acreage. A) Allocation of Assessments to Lots within the PID The total amount of the Reimbursement Agreement, which represents the total Assessment to be allocated on all Parcels within the PID, is $4,635,450. There is a total of 61.4468 acres, resulting in an Assessment per acre of $75,438.43 (i.e. $4,635,450 - 61.4468 = $75,438.43). Table D-1 sets forth the Assessment per acre within the District. Table D-1 Assessment Per Unit — Authorized Improvements Description Acres Assessment per Acre Total Assessments Assessed Property 61.4468 $75,438.43 per acre $4,635,450 Total 61.4468 $4,635,450 Table D-2 sets forth the projected average Annual Installment per acre. Table D-2 Average Annual Installment — Authorized Improvements Description Assessed Property Assessment Acres per acre 61.4468 $75,438.43 Projected Average Annual Installment per acre $7,387.85 The Assessment and Annual Installments for each Parcel or Lot located within the District is shown on the Assessment Roll, attached as Appendix F, and no Assessment shall be changed except as authorized by this Service and Assessment Plan and the PID Act. APPENDIX E PID ASSESSMENT NOTICE AFTER RECORDING RETURN TO: i NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF PEARLAND, TEXAS CONCERNING THE FOLLOWING PROPERTY STREET ADDRESS LOT TYPE PRINCIPAL ASSESSMENT: $ As the purchaser of the real property described above, you are obligated to pay assessments to the City of Pearland, Texas (the "City"), for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Smith Ranch Public Improvement District No. 1 (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City. The exact amount of each annual installment will be approved each year by the City Council in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from the City. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. 1 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Brazoria County. [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. DATE: DATE: SIGNATURE PURCHASER OF SIGNATURE PURCHASER OF The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. DATE: DATE: SIGNATURE OF SELLER SIGNATURE OF SELLER]Z 2 To be included in copy of the notice required by Section 5.014, Tex. Prop. Code, to be executed by seller in accordance with Section 5.014(a-1), Tex. Prop. Code. Signature Page to Initial Notice of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. DATE: DATE: SIGNATURE PURCHASER STATE OF TEXAS COUNTY OF BRAZORIA OF § § § SIGNATURE PURCHASER OF The foregoing instrument was acknowledged before me by and , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this , 20_. Notary Public, State of Texas]3 3 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Brazoria County. Purchaser Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. DATE: DATE: SIGNATURE OF SELLER SIGNATURE OF SELLER STATE OF TEXAS COUNTY OF BRAZORIA The foregoing instrument was acknowledged before me by and , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this , 20 . Notary Public, State of Texas]4 4 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Brazoria County. Seller Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment APPENDIX F PROPOSED ASSESSMENT ROLL Appendix F-1 Proposed Assessment Roll Parcel Units Assessment See Summary Roll 61.4468 $4,635,450 Administrative Year i Principal Interest' Expenses' Total Annual Installment 9/30/26 $136,000 $254,950 9/30/27 $143,000 $247,470 9/30/28 $151,000 $239,605 9/30/29 $159,000 $231,300 9/30/30 $167,000 $222,555 9/30/31 $176,000 $213,370 9/30/32 $185,000 $203,690 9/30/33 $195,000 $193,515 9/30/34 $205,000 $182,790 9/30/35 $216,000 $171,515 9/30/36 $227,000 $159,635 9/30/37 $239,000 $147,150 9/30/38 $252,000 $134,005 9/30/39 $265,000 $120,145 9/30/40 $280,000 $105,570 9/30/41 $295,000 $90,170 9/30/42 $310,000 $73,945 9/30/43 $327,000 $56,895 9/30/44 $344,000 $38,910 9/30/45 $363,450 $19,990 $153,000 $156,060 $159,181 $162,365 $165,612 $168,924 $172,303 $175,749 $179,264 $182,849 $186,506 $190,236 $194,041 $197,922 $201,880 $205,918 $210,036 $214,237 $218,522 $222,892 $543,950 $546,530 $549,786 $552,665 $555,167 $558,294 $560,993 $564,264 $567,054 $570,364 $573,141 $576,386 $580,046 $583,067 $587,450 $591,088 $593,981 $598,132 $601,431 $606,332 Total $4,635,450 $2,538,195 $6,206,916 $13,380,561 'The 9/30/XX dates represent the fiscal year end for the Reimbursement Agreement. 2 The interest is calculated using an estimated 5.50% interest rate for years 1 through 20 on the obligations under the Reimbursement Agreement for the Authorized Improvements. 3Administrative Expenses are estimated and will be updated each year in the Annual Service Plan Updates. Assumes a 2% increase per year. Appendix F-2 Proposed Assessment Roll per acre Units Assessment 1.00 $75,438.43 Year 1 Principal Interest2 Administrative Total Annual Expenses3 Installment 9/30/26 $2,213 $4,149 9/30/27 $2,490 $2,540 $2,591 $2,642 $2,695 $2,749 $2,804 $2,860 $2,917 $2,976 $3,035 $3,096 $3,158 $3,221 $3,285 $3,351 $3,418 $3,487 $3,556 $3,627 $8,852 $8,894 $8,947 $8,994 $9,035 $9,086 $9,130 $9,183 $9,228 $9,282 $9,327 $9,380 $9,440 $9,489 $9,560 $9,620 $9,667 $9,734 $9,788 $9,868 $2,327 $4,027 9/30/28 $2,457 $3,899 9/30/29 $2,588 $3,764 9/30/30 $2,718 $3,622 9/30/31 $2,864 $3,472 9/30/32 $3,011 $3,315 9/30/33 $3,173 $3,149 9/30/34 $3,336 $2,975 9/30/35 $3,515 $2,791 9/30/36 $3,694 $2,598 9/30/37 $3,890 $2,395 $4,101 $2,181 $4,313 $1,955 $4,557 $1,718 $4,801 $1,467 $5,045 $1,203 9/30/38 9/30/39 9/30/40 9/30/41 9/30/42 9/30/43 $5,322 $926 9/30/44 $5,598 $633 9/30/45 $5,915 $325 Total $75,438 $41,307 $101,013 $217,758 'The 9/30/XX dates represent the fiscal year end for the Reimbursement Agreement. 2 The interest is calculated using an estimated 5.50% interest rate for years 1 through 20 on the obligations under the Reimbursement Agreement for the Authorized Improvements. 3Administrative Expenses are estimated and will be updated each year in the Annual Service Plan Updates. Assumes a 2% increase per year. Appendix F-3 Proposed Assessment Roll Summary Outstanding Parcel ID Acres Assessment' 168240 12.553 $946,971 501845 4.063 $306,506 168294 11.314 $853,510 168300 10.000 $754,384 635904 8.000 $603,507 168291 7.946 $599,419 168276 1.802 $135,902 168259 0.463 $34,936 168304 1.500 $113,158 168301 1.495 $112,780 168290 0.854 $64,432 168292 0.492 $37,138 168293 0.490 $36,965 168244 0.340 $25,649 168306 0.135 $10,192 168258 2.000 PREPAID 168260 2.000 PREPAID 168255 1.934 PREPAID 168248 1.410 PREPAID 168268 1.230 PREPAID 168250 1.000 PREPAID 168283 1.000 PREPAID 168285 0.910 PREPAID 168256 0.824 PREPAID 168267 0.773 PREPAID 168288 0.483 PREPAID 566300 0.453 PREPAID 168284 0.420 PREPAID 168261 1.585 PREPAID 168249 0.086 PREPAID 168257 0.213 PREPAID Total 77.76762 $4,635,450 'The PREPAID parcels are those parcels that are owned to the Developer and are prepaid as part of the advance Developer deposit explained in Section V.C. 2According to the 2024 tax statements through the Brazoria Tax Assessor - Collector Office. APPENDIX G ANNUAL INSTALLMENT SCENARIOS Appendix G-1: Projected Cummulative Annual Installments (With Developer Deposit) - 5 years Deferred Interest Outstanding Year Principal Principal' Interest' Total Debt Service Administrative Expense' Projected Cummulative Deferred Interest Annual Installment Amount (Beginning of Projected Pay Off Year) Amount (Year End) 1 $75,438 2 $75,438 3 $75,438 4 $75,438 5 $75,438 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 $0 $0 $0 $0 $0 $4,149 $4,149 $4,149 $4,149 $4,149 First Payment of Deferred Annual Installments $75,438 $72,021 $68,424 $64,632 $60,645 $56,446 $52,020 $47,365 $42,467 $37,308 $31,872 $26,144 $20,106 $13,759 $7,070 $3,418 $3,597 $3,792 $3,987 $4,199 $4,427 $4,654 $4,899 $5,159 $5,436 $5,729 $6,038 $6,347 $6,689 $7,070 $4,149 $3,961 $3,763 $3,555 $3,335 $3,105 $2,861 $2,605 $2,336 $2,052 $1,753 $1,438 $1,106 $757 $389 $4,149 $4,149 $4,149 $4,149 $4,149 $7,567 $7,558 $7,555 $7,542 $7,534 $7,531 $7,516 $7,504 $7,495 $7,488 $7,482 $7,476 $7,453 $7,445 $7,459 $0 $0 $0 $0 $0 $458 $467 $477 $486 $496 $506 $516 $526 $537 $548 $559 $570 $581 $593 $605 $4,149 $4,149 $4,149 $4,149 $4,149 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,149 $8,298 $12,447 $16,596 $20,746 ($20,746) $8,025 $8,025 $8,032 $8,028 $8,030 $8,037 $8,032 $8,030 $8,031 $8,035 $8,040 $8,045 $8,034 $8,038 $8,064 $75,438 $79,588 $83,737 $87,886 $92,035 $75,438 $72,021 $68,424 $64,632 $60,645 $56,446 $52,020 $47,365 $42,467 $37,308 $31,872 $26,144 $20,106 $13,759 $7,070 $79,588 $83,737 $87,886 $92,035 $96,184 $83,463 $80,046 $76,456 $72,661 $68,675 $64,483 $60,051 $55,395 $50,498 $45,343 $39,912 $34,189 $28,140 $21,797 $15,134 Total $75,438 $57,910 $133,349 $7,924 $20,746 FOR ILLUSTRATION PURPOSES Page 1 FOR ILLUSTRATION PURPOSES Appendix G-2: Projected Cummulative Annual Installments (With Developer Deposit) - 10 years Deferred Interest Outstandin Year g Principal Principal) Interests Total Debt Service Administrative Expenses Deferred Interest Projected Cummulative Annual Projected Pay Off Amount (Beginning of Projected Pay Off Amount (Year End) 1 $75,438 $0 2 $75,438 3 $75,438 4 $75,438 5 $75,438 6 $75,438 7 $75,438 $0 8 $75,438 9 $75,438 $0 10 $75,438 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $0 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $4,149 $8,298 $75,438 $79,588 $83,737 $87,886 $92,035 $96,184 $79,588 $83,737 $87,886 $92,035 $96,184 $0 $0 $0 $0 $12,447 $16,596 $20,746 $24,895 $29,044 $33,193 $37,342 $41,491 $0 $0 $0 $0 $0 $0 $100,333 $104,482 $108,631 $112,780 $116,930 $0 $100,333 $104,482 $108,631 $112,780 $0 $0 $0 $0 $0 First Payment of Deferred Annual ($41,491) 11 $75,438 $5,908 12 $69,531 $6,217 13 $63,314 $6,542 14 $56,772 $6,900 15 $49,872 $7,258 16 $42,613 $7,649 17 $34,964 $8,072 18 $26,892 $8,495 19 $18,397 $8,951 20 $9,446 $9,446 $4,149 $3,824 $3,482 $3,122 $2,743 $2,344 $1,923 $1,479 $1,012 $10,057 $10,041 $10,025 $10,023 $10,001 $506 $0 $10,563 $10,557 $10,551 $10,560 $10,549 $10,551 $10,565 $10,555 $10,555 $10,571 $75,438 $69,531 $63,314 $56,772 $49,872 $42,613 $34,964 $26,892 $18,397 $86,001 $80,088 $73,865 $67,331 $60,420 $53,164 $45,529 $37,448 $28,953 $20,017 $516 $0 $526 $0 $537 $0 $548 $0 $9,993 $9,995 $9,974 $9,963 $9,966 $559 $0 $570 $0 $581 $0 $593 $0 $520 $605 $0 $9,446 Total $75,438 $66,089 $141,528 $5,539 $41,491 FOR ILLUSTRATION PURPOSES Page 2 FOR ILLUSTRATION PURPOSES