Apr 09, 2026 Town Council

[1. CALL TO ORDER]

[00:00:09]

TOWN HALL MEETING ON APRIL 9TH FOR 5:30 P.M. WE WILL CALL THIS MEETING TO ORDER. ALL COUNCILORS ARE PRESENT AND ACCOUNTED FOR. AND IF WE COULD START WITH THE INVOCATION, THAT WOULD BE WONDERFUL, SIR. THANK YOU. WELCOME. THANK YOU. LET US PRAY. MAKE OUR BEGINNING. IN THE NAME OF THE FATHER, SON AND HOLY SPIRIT. AMEN. LORD GOD, WE INVITE YOUR PRESENCE INTO THIS MEETING. WE ASK THAT YOU BESTOW WISDOM ON THOSE THAT HAVE BEEN ELECTED TO LEAD AND TO SERVE THIS COMMUNITY, THAT THERE WOULD BE GREAT DISCUSSION AND RESPECT OF ALL TO BLESS THIS COMMUNITY OF NORTH LAKE LORD. WE ALSO ASK AT THIS TIME THAT YOU WOULD PROVIDE PEACE AND PROTECTION IN THE MIDDLE EAST, IN PARTICULAR WITH OUR TROOPS, THAT THERE WOULD BE A QUICK SUCCESSION OF THE CONFLICT AND THE OUTCOMES WOULD BE ACHIEVED. WE ASK YOUR BLESSING ON US. WE GIVE GRATITUDE FOR ALL THAT YOU PROVIDE FOR US IN THIS GREAT COUNTRY. IN JESUS NAME, AMEN.

THANK YOU VERY MUCH. STAND FOR PLEDGES, PLEASE. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. HONOR THE TEXAS FLAG. I PLEDGE ALLEGIANCE TO THEE, TEXAS. ONE STATE, UNDER GOD, INDIVISIBLE. ALRIGHT. WE DON'T HAVE TOO MANY ACTION ITEMS TONIGHT, BUT WE DO HAVE A BUNCH OF EMPLOYEE ANNIVERSARIES, WHICH IS A BLESSING FOR THE TOWN, HAVING PEOPLE STAY HERE SO LONG AND A WHOLE BUNCH OF OTHER THINGS. ON BRIEFING

[2.A. Reports and Updates from the Mayor and Town Councilmembers Concerning Items of Community Interest (if necessary)]

SURE. SO BECAUSE HE WON'T BRAG ABOUT HIMSELF OR ACKNOWLEDGE THE HUGE HONOR THAT HE GOT. SO MOST OF US ON COUNCIL KNOW THAT BEFORE THIS PROJECT EVEN REALLY GOT TO COME TO MOST OF US THAT ARE OR SOME OF US THAT ARE NEW, THAT BRIAN WORKED ON THIS PROJECT TIRELESSLY FROM THE BEGINNING. IT WAS LIKE A PASSION PROJECT THAT HE DRUG INTO REALITY AND INTO FRUITION, AND THE STARS HONORED HIM BY NAMING ONE OF THE TWO ICE RINKS, THE RINK. AND THERE'S A PLAQUE WITH HIS FAMILY ON IT. AND IT WAS VERY COOL EXPERIENCE AND A VERY WELL EARNED HONOR. SO CONGRATULATIONS ON THAT. OH THANK YOU. IT'S VERY HUMBLING. BUT IT COULD'VE DONE WITHOUT THE ENTIRE COUNCIL. AND THAT'S WHAT'S IMPORTANT. THERE'S ANOTHER PLAQUE IN BOEING HAS THE ENTIRE COUNCIL, THE CDC, CDC, EVERYBODY WAS RECOGNIZED FOR THEIR EFFORTS ON THAT. SO IT'S REALLY A BIG HONOR FOR OUR STARS TO RECOGNIZE THE COMMUNITY INVOLVEMENT THAT TOOK PLACE TO MAKE THAT HAPPEN. THANK YOU ALEX. ALL RIGHT, MAYOR, REAL QUICK, ZOE'S NOT HERE. THIS IS TINA, AND TINA IS FILLING IN FOR. ZOE IS ACTUALLY PRESENTING AT A CONFERENCE IN FREDERICKSBURG. SO WE ENDED UP HAVING MEETINGS ON THURSDAY BECAUSE ALL OUR CONSULTANTS WERE BUSY MONDAY AND TUESDAY. AND THAT'S WHEN MOST OF THE ASSOCIATIONS HAVE THEIR CONFERENCES. SO REALLY APPRECIATE THE STAFF AND TINA FILLING IN. WE GOT WE GOT DEAN

[00:05:02]

AND THANK YOU FOR THOSE EXTRA POSITIONS. THAT ALLOWS OUR STAFF TO DO PROFESSIONAL DEVELOPMENT AND SHARE AND LEARN AND NETWORK. SO THANK YOU. THANK YOU FOR THAT. WELL, THANKS FOR MANAGING SUCH A WONDERFUL STAFF AND BRINGING US SOME NEW FACES FROM TIME TO TIME. ALL RIGHT. WITH THAT, ANY CALENDAR ANNOUNCEMENTS, ANYTHING THAT YOU HAVE? YES, SIR. GARY, IF YOU COULD JUMP BACK TO THE CALENDAR, WE DO HAVE AN OPEN HOUSE ON THE 16TH.

AND FOR FOR ANYBODY IN THE PUBLIC THAT WOULD LIKE TO LOOK AT OUR MASTER PLANS AND KIND OF INPUT ON WHERE YOU SEE ISSUES, WHERE YOU SEE THAT WE SHOULD FOCUS ON, IF YOU WANT TO KIND OF UNDERSTAND WHERE THE ROADS, THE WATER LINES AND SEWER LINES ARE GOING, WE'D LOVE TO GET YOU TO COME IN AND INPUT. WE'RE BASING ALL OUR MASTER PLANS ON THE RECENTLY APPROVED COMP PLAN, WHICH KIND OF IS THE BEGINNING DOCUMENT THAT HELPS US UNDERSTAND WHERE GROWTH IS GOING TO BE. BUT WE'RE WE'RE MOVING IN A LITTLE BIT FASTER PACE. SO WE NEED TO GET AHEAD OF THESE. SO WE'RE, WE'RE A LITTLE BIT AHEAD OF SCHEDULE ON THESE, WHICH IS GOOD, WHICH IS WHAT WE NEED TO DO. BUT WE'D LOVE TO GET YOUR INPUT IF YOU'RE AVAILABLE. THAT'LL BE HERE WITH A NUMBER OF DIFFERENT STATIONS THAT YOU CAN GO TO. THERE'LL BE SOME TABLES THAT YOU CAN MARK UP SOME STUFF. THAT'LL BE 530, APRIL 16TH. ALL RIGHT. THANK YOU VERY MUCH,

[2.B. Proclamation - Child Abuse Prevention Month]

AND CURRENTLY WE HAVE FOUR KIDS FROM NORTH LAKE. THEY HAVE BEEN. THEY'VE BEEN IN THE IN THE CARE FOR RIGHT NOW. BUT THE ADVOCATES CAN SAY A LITTLE BIT MORE OF WHAT THEY DO BECAUSE THEY'RE THE ONES THAT DO THE HARD WORK. AND CASA, HE'S A CURRENT ADVOCATE. I'M A BOARD MEMBER. HE'S A BOARD MEMBER. I WAS A FORMER ADVOCATE NOW BOARD MEMBER. SO GO AHEAD. THANK YOU.

MY NAME IS RICK DOUCETTE. I'VE BEEN I'M A REAL LIFE CASA ADVOCATE. I'VE BEEN DOING THIS FOR ABOUT THREE YEARS. ULTIMATELY, I TRY TO BRING A VOICE OR BRING A VOICE TO THE KIDS THAT HAVE ENTERED THE FOSTER CARE SYSTEM. THE NEGLECTED AND ABUSED KIDS. MOST OF THE TIME I TRY TO GATHER INFORMATION AND ULTIMATELY MAKE A RECOMMENDATION TO THE COURTS.

RIGHT. SO WHAT'S IN THE BEST INTEREST OF THOSE KIDS? SO IT'S A IT'S A PASSION, NOT A PASTIME, BUT IT'S BEEN SO REWARDING FOR ME JUST TO SEE, TO GIVE A VOICE TO THOSE KIDS THAT CAN'T REPRESENT THEMSELVES. I'M. MITCHELL WAS A ADVOCATE FOR FIVE YEARS AND THEN MOVED TO A POSITION ON THE BOARD. YOU CAN'T BE BOTH, SO YOU CAN BE AN ADVOCATE FOR A BOARD MEMBER. SO I MOVED TO A POSITION ON THE BOARD, BUT MY TIME AS AN ADVOCATE, I HAD TWO CASES. ONE, TWO HIGH SCHOOL BROTHERS ENTERED INTO THE SYSTEM, ENDED UP LIVING WITH GRANDMOTHER AND GRANDDAD, AND ENDED UP GRADUATING FROM HIGH SCHOOL, BOTH OF THEM. SO IT WAS VERY SUCCESSFUL. AND THEN I HAD ANOTHER CASE WITH SOME MUCH YOUNGER KIDS THAT ENDED UP GETTING PLACED IN DIFFERENT HOMES IN BOTH ADOPTED. SO SOME OF THE MOST CHALLENGING YET REWARDING STUFF BECAUSE, YOU KNOW, EVERYONE OF THESE KIDS COUNTS. SO THANK YOU. NOT AN EASY JOB, BUT WE CERTAINLY APPRECIATE ALL THE EFFORT YOU PUT INTO THE COMMUNITY. THANK YOU. WE I JUST WANTED TO MENTION THAT WE SERVE 100% OF THE CHILDREN AND THEN COUNTY, THEY COME INTO THE DEPARTMENT AND WE'VE SERVED OVER 600 AND I BELIEVE 25, IF I'M NOT MISTAKEN, FROM LAST YEAR. SO IN THE NUMBERS EXPECTED TO RISE FOR THIS YEAR AS WELL. OKAY. I'M GOING TO READ A LITTLE PROCLAMATION THEN I'LL ASK YOU TO COME UP. WE'LL TAKE A PHOTO AND GIVE YOU A HAND. YOU THIS PROCLAMATION FOR YOUR YOUR RECORDS. OKAY. WHEREAS THERE WERE 642 CHILDREN AFFECTED BY ABUSE AND NEGLECT SERVED BY CASA DENTON COUNTY IN 2025, AND

[00:10:04]

THANK YOU SO MUCH. ALL RIGHT. I ASSUME THE CHIEF WILL BE COMING UP NEXT HERE FOR

[2.C. Employee Anniversary - Emily Goodson, Police Department - 5 Years]

OFFICER GOODSON BEGAN HER LAW ENFORCEMENT CAREER WITH THE NORTH LAKE POLICE DEPARTMENT IN MARCH OF 2021. AFTER GRADUATING FROM THE TARRANT COUNTY COLLEGE POLICE ACADEMY, WHERE SHE EARNED VALEDICTORIAN HONORS. SHE IS CURRENTLY ASSIGNED TO THE PATROL DIVISION AND HOLDS THE INTERMEDIATE PEACE OFFICER CERTIFICATION. IN ADDITION, SHE IS CERTIFIED MENTAL HEALTH PEACE OFFICER AND FIELD TRAINING OFFICER. OFFICER GOODSON IS ALSO PLAYING A KEY ROLE IN HELPING ENSURE OUR DEPARTMENT MEETS BEST TEXAS BEST PRACTICES STANDARDS AS WE WORK TOWARD AGENCY ACCREDITATION. WITH AN AUDIT ANTICIPATED THIS COMING MONTH.

AS OUR AGENCY CONTINUES TO GROW, SO DOES OUR FAMILY, BOTH PROFESSIONALLY AND PERSONALLY.

OVER THE PAST SEVERAL MONTHS, OFFICER GOODSON TOOK TIME AWAY FROM DUTY AND HAS RECENTLY RETURNED AFTER WELCOMING HER BABY GIRL INTO THE WORLD AND INTO THE NORTHLAKE FAMILY. SO I'M HONORED TO HAVE EMILY COME FORWARD AND GIVE HER HER FIVE YEAR SERVICE AWARD.

HUSBAND AND BABY. DID YOU COME UP HERE? THANK YOU SO MUCH. OUR SECOND

[2.D. Employee Anniversary - Emily Harville, Police Department - 10 Years]

[2.E. Employee Anniversary - Kenneth Harris, Public Works - 5 Years]

[00:15:02]

CONGRATULATIONS TO KENNETH FOR REACHING THIS FIVE YEAR MILESTONE.

YOU WANT ONE WITH THE MISSUS? KENNETH? YOU WANT ONE WITH YOUR WITH YOUR SIGNIFICANT OTHER. WHILE WE'RE DOING THIS, WE MIGHT AS WELL KEEP THE TREND GOING. ALRIGHT,

[2.F. Employee Anniversary - Kyle Brown, Public Works - 10 Years]

FAMILY, GOT YOUR KIDS HERE? YEAH. LET'S DO IT. COME ON. YAY! FAMILY. NICE.

I DON'T THINK THERE'S TOO MANY TOWNS WITH THIS TYPE OF TENURE. WE DO PRETTY GOOD. WE DO SIR.

YES, SIR. AND I GET TO KEEP THE PODIUM UP HIGH. YEAH. YOU DO. MIGHT HAVE TO PICK IT UP A

[2.G. Briefing - Denton County Bond Program and Texas Department of Transportation Road Projects Update]

YES. DO I RUN THIS OR DOES SOMEBODY ELSE? WE CAN DO IT EITHER WAY. DRIVE ON. ALRIGHT, I'M GOING TO GIVE YOU AN UPDATE. OKAY. SO THIS IS THE 407 JOB THAT WE'VE GOT IT TECH STOCK CLEARED IT ALL THE WAY FROM 1830 ALL THE WAY TO WEST OF JUSTIN. JOHN. I'VE GOT THE SCREEN IN FRONT OF YOU SO YOU CAN KEEP YOUR MOUTH ON THE MICROPHONE. MY APOLOGIES.

THAT'S RIGHT. I HAVE LIMITATIONS. SO THE SCHEMATIC AND THE ENVIRONMENTAL CLEARANCE WE'RE WORKING. WE'RE THINKING WE'LL GET IT CLEARED IN JUNE. BECAUSE OF THAT. DENTON COUNTY ENTERED INTO A INTERLOCAL WITH JUSTIN ON MAY 17TH, 2026 TO DO THE PLANS, SPECIFICATIONS AND ESTIMATES FOR THE PHASE ONE SECTION. THE RED PART IN THE. IT'S MY FAULT. YEAH, I CAN SEE THAT. THE FIRST SECTION IN JUSTIN FROM WHERE 407 DEPARTS FROM ITS EXISTING ALIGNMENT AND COMES THROUGH AND THEN HAS THE CROSSOVER 156 DOWN 12TH STREET. THEY'VE GOT WESTWOOD ON CONTRACT FOR THAT. WE GIVE THEM 7 MILLION BUCKS TO START THE PSN. WE ARE. ONCE WE'RE CLEAR, WE'LL START WORKING WITH TXDOT TO. DETERMINE WHETHER WE WANT TO START BUYING THE RIGHT OF WAY FOR THE ENTIRE CORRIDOR OR JUST THE PORTIONS. OUR INTENTION, IT'S IT'S KIND OF OFF THE PICTURE, BUT OUR INTENTION IS TO WORK FROM JUST JUSTIN EAST BECAUSE THE PEOPLE NEAR 377 AND 35 EAST OF 35 DO NOT WANT THE ROAD WIDENED TO SIX LANES. SO WE'RE GOING TO TAKE A LONG TIME GETTING THERE. QUESTION FOR YOU. I'VE HAD A LOT OF RESIDENTS ASK ME. I'M

[00:20:04]

PRAYER QUESTIONS ON THAT. WE'RE DOING THE DSL. OH, I WAS GOING TO TALK ABOUT IT. WE'RE DOING THE RIGHT TURN LANES GOING SOUTHBOUND TO WESTBOUND AND THEN THE RIGHT TURN LANES GOING EASTBOUND TO SOUTHBOUND AND ROUTING. WE'RE GOING FROM 3 TO 5 LANES UNDERNEATH THE BRIDGE STRUCTURE. AND SO WE'RE HOPING THAT THAT WILL HELP THE TRAFFIC FLOW ON THOSE SIGNALS TO THE WEST, BECAUSE THEY NOW CAN GET THROUGH THE BOTTLENECK KNOWN AS 35. I UNDERSTAND MOST OF THE WORK WILL BE DONE AT NIGHT IF I REMEMBER SEEING THAT. CORRECT? YES, SIR. OKAY. SO AS FAR AS TRAUMA, LIKE YOU'RE SAYING, HOW WILL THAT AFFECT DAYTIME TRAUMA VERSUS NIGHT TIME WORK? WELL, IF I'M GOING TO LET YOU READ THAT, IF YOU HAVEN'T READ THE THE, THE PHASING, THERE'LL BE TIMES WHEN THERE ARE LANE CLOSURES AND. THAT ALWAYS SEEMS TO BE A PROBLEMATIC ISSUE. YES, MOST OF THE WORK WILL BE DONE FROM 6 P.M. TO 5:00 IN THE MORNING, BUT I'M ALWAYS ONE OF

[00:25:01]

NEXT ONE. SO 1171 THIS IS A PROJECT THAT WE ARE TAKING TWO STEPS FORWARD AND ONE STEP BACK ON. BACK IN THE DAY WHEN WE CROSSED THE GREENBELT, WE DECIDED TO GO TO A RURAL SECTION AND THEN STAY URBAN AT THE 156 AND 35 W, WHICH MEANS NO CURB AND GUTTER IN THE MIDDLE. TEXTILE HAS COME BACK ABOUT TWO MONTHS AGO AND SAID, WE DON'T LIKE THAT ANYMORE.

WE'RE GOING TO MAKE YOU GO BACK TO URBAN. AND PART OF THAT IS THE THE CROSS SECTION ACROSS THE THE FLOODPLAIN. SO WE'RE WE'VE ALREADY TEED UP, WE'LL GIVE THEM A SUPPLEMENTAL AND WE'LL ADJUST THAT. BUT THAT HAS THE ENGINEERING IS ALWAYS THE LEAST IMPORTANT THING. WE'RE STILL WORKING ON UTILITIES RIGHT NOW. THE RIGHT OF WAY IS ON HOLD AGAIN, BECAUSE THE RIGHT OF WAY BUDGET IS SO SHORT THAT THEY'RE ONLY FUNDING RIGHT OF WAY FOR THOSE PROJECTS. IN THE FOUR YEAR WINDOW OF THE TEN YEAR WINDOW THAT'S FULLY FUNDED. SO WE'RE GOING TO WE'RE GOING TO GET THE UTILITIES CLEARED. AND THEN WE'LL PROBABLY, IN THIS SCENARIO, WORK WEST TO EAST AGAIN, BECAUSE HAVING ANOTHER GREAT SEPARATION OVER ONE 6156 IS MORE IMPORTANT THAN GETTING IN BETWEEN THERE. QUESTIONS. OKAY, ARGYLE, GOOD NEWS ON THIS. IT SAYS READY TO LET IN JULY THAT 172 MILLION IS THERE. WE TALKED TO TEXDOT AUSTIN AND THE DISTRICT AND THEY'RE SAYING THAT IT'LL LET EITHER MAY, JUNE OR JULY, DEPENDING UPON A COUPLE OF ISSUES WE HAVE TO DEAL WITH ON THE UTILITIES. IF THE UTILITIES THAT ARE IMPACTED THAT WERE CRITICAL PATH ITEMS GIVE US THE CERTIFICATION FOR A CERTAIN DATE, WE'RE GOING TO LET IT IN MAY. IF THEY DON'T HIT THAT TIME FRAME, THE LATEST DATE IT'LL LET IS JULY OF THIS YEAR.

SO 377 THIS SECTION GOES FROM TWO LANES, TEN FOOT SHOULDERS TO FOUR LANE DIVIDED URBAN WITH SIDEWALKS ON THE EAST SIDE. NO SIDEWALKS BETWEEN THE ROAD AND THE RAILROAD. AND IT'S FULLY FUNDED SO THAT WE'LL START BREAKING THAT SOMETIME THE END OF THE YEAR. AND JOHN IS ALL TEXT OUT PROJECTS, THEY HAVE TO KEEP THE EXISTING THROUGHPUT. THEY NEVER CLOSE THE LANES, RIGHT? IF THERE'S TWO LANES OF TRAFFIC OUT THERE NOW, ONE IN EACH DIRECTION, YOU'LL ALWAYS HAVE AT LEAST TWO LANES OF TRAFFIC IN EACH DIRECTION. COULD CATCH. ALL RIGHT. THE CREEK SECTION, ESSENTIALLY, WE ARE WORKING ON THE THE RIGHT OF WAY ACQUISITION IS DONE BECAUSE THERE ISN'T ANY OUT THERE. SO MOSTLY WHAT WE'RE WORKING ON IS GETTING UTILITIES RELOCATED AND ENTERING INTO A CONTRACT WITH JACOBS TO FINISH THE PLAN. SPECIFICATIONS AND ESTIMATES.

WE'RE WAITING ON OUR FOURTH ISSUANCE FROM THE COUNTY'S BOND PROGRAM TO TO RETAIN THOSE SERVICES. BUT AGAIN, YOU ENGINEERING IS ALWAYS THE LEAST CRITICAL ITEM ON THE CRITICAL PATH ITEM. SO WE'RE STILL LOOKING AT PROBABLY MARCH OF 2030 BEFORE THAT PROJECT IS READY TO GO BECAUSE OF THE UTILITIES. 114 THIS PROJECT IS SUPPOSED TO BE DONE IN MAY. IT LOOKS SUBSTANTIALLY COMPLETE NOW. THEY'LL HAVE SOME TEMPORARY LANE CLOSURES ON OCCASIONS. BUT YEAH, WE'RE WE'RE ON TRACK FOR IT BEING COMPLETED, OPEN TO TRAFFIC AND EVERYBODY NOT REMEMBER WHAT IT WAS LIKE BEFORE. AND IN A COUPLE OF MONTHS. OKAY. SOME NEWS. I DON'T KNOW IF Y'ALL BEEN TRACKING THIS. I THINK I'VE BEEN KEEPING UP ON THIS, BUT WE'VE GOT DEVELOPMENT GOING ON. TRAMMELL CROW IN Y'ALL'S MONARCH JUST TO THE NORTH OF YOU. HILLWOOD EVERYWHERE ELSE. RIGHT. AND THIS MAP SHOWS THE BLUE AREA WAS WHAT WAS ORIGINALLY FUNDED BY TEX DOT $213 MILLION. AND THAT 520 MILLION IS FOR EVERYTHING FROM DALE EARNHARDT ALL THE WAY TO 2449. WE'VE SHORTENED IT A LITTLE BIT. SO IT'S ACTUALLY ABOUT 310 MILLION NOW, ALL IN THE PROJECT. WE ARE MOVING ABOUT $265 MILLION OF PROJECTS THROUGHOUT THE COUNTY THAT ARE LIKE 35 NORTH OF SANGER. RIGHT BEFORE YOU GO OUT OF OUR COUNTY, DOES ANYBODY KNOW WHERE DOBBS ROAD IS ON 35? RIGHT. SO WE TOOK THAT MONEY AND. AND WE GOT THE OUTER LOOP. THAT'S NOT GOING TO BE NEEDED. FOR SEVERAL YEARS, WE AMASSED ALL THOSE FUNDS, PUSHED IT TO 35 FRONTAGE ROAD PROJECT, AND WE NEED ABOUT 50 MILLION BUCKS TO 65 TO 3, TEN, WHATEVER THAT NUMBER IS. I WENT TO NORTH TEXAS, SO I MIGHT BE OFF ON MY NUMBERS. AND WE

[00:30:06]

IT'S DENTON CREEK. BUT MAYBE IF YOU YELL AT ME ENOUGH, WE CAN TRY TO GO BACK AND GET THAT, ADDED DENTON CREEK FRONTAGE ROADS FROM DENTON CREEK TO 407 407 TO OLD DENTON, OLD DENTON TO ROBESON, ROBESON TO ALLRED AND ALLRED. JUST NORTH OF ALLRED, TO WHERE THE SCHEMATIC HAS THE ENTRANCE AND EXIT RAMPS GOING BACK TO THE EXISTING. SO THAT WHAT THAT MEANS IS YOU'LL HAVE FRONTAGE ROADS ALL THE WAY FROM ALLRED TO 1171, AND ALL THE INTERCHANGES BUILT ON THEIR PERMANENT POSITION CONDITION THROUGH THAT CORRIDOR. AND WE MAY HAVE TO ADD ANOTHER 30 OR 40 MILLION TO CLEVELAND GIBBS IN THAT MIX BECAUSE HE WAS ALSO ASKING ABOUT IT. SO WE THINK WE'RE GOING TO KNOW IN MAY WHEN NEXT TIME I COME BACK, WE'LL KNOW WHAT WE KNOW. AND THAT'S GOING TO BE A BIG JOB. NOW, THEY MAY WORK FROM THE MIDDLE OUT BECAUSE THEY KNOW THEY'RE NO LONGER GOING TO DO 300, $400 MILLION JOBS, BECAUSE EVERY TIME THEY'VE DONE A JOB THAT SIZE, THEY ONLY GET A COUPLE OF BIDDERS AND THEY GET CREAMED IN THE BIDDING. SO THEY'LL PROBABLY BREAK THIS PROJECT UP INTO 4 OR 5 BID PACKETS. AND YOU'LL HAVE INDIVIDUAL CONTRACTORS WORKING. SOME MAY BE THE SAME CONTRACTOR, BUT IT'LL BE BID OUT IN SEGMENTS AND IT'LL BE DETERMINED BECAUSE WE'RE STILL WORKING ON UTILITIES. SO WHAT DENTON COUNTY, BECAUSE AGAIN, RIGHT AWAY WHEN I SAY THEIR BUDGET IS SHORTFALL ON RIGHT OF WAY AND TEXTILE VERNACULAR, THAT'S RIGHT OF WAY AND UTILITY RELOCATIONS. THERE'S ABOUT $13 MILLION WORTH OF UTILITIES THAT NEED TO BE RELOCATED FOR THIS PROJECT. DIDN'T COUNTIES AGREED TO PAY THOSE FUNDS? WE'LL GIVE THEM TO THE STATE. SO THEY'LL THEY'LL GO AND MOVE THE THE UTILITIES WORKING ON THAT AGREEMENT NOW. SO WE'RE GOING TO START WHEREVER THOSE UTILITIES GET CLEARED FIRST, PROBABLY 407 AND ROBINSON RANCH ARE THOSE TWO AREAS BECAUSE THEY'VE BEEN WORKING ON THOSE LONGER. SO I WOULD, I WOULD, I WOULD SAY PROBABLY YOU'RE GOING TO SEE THOSE TWO PROJECTS GO UNDER THE KNIFE BEFORE ANY OF THE REST OF QUESTIONS. THIS IS GOOD NEWS. I LIKE WHEN IT GROWS INSTEAD OF SHRINKS, WHICH IS ALL WE NORMALLY SEE IS THAT THE PROJECT GETS SMALLER AND MORE LIMITED. WELL, SO HERE'S THE DEAL. HILLWOOD AND TRAMMELL, CROW AND MONARCH KEPT COMPLAINING TO THE COUNTY IN NORTH LAKE. YOU KNOW, WE NEED TO GET THESE ROADS BUILT AND WE'RE GOING TO DO YOU ALL ARE BILLIONAIRES. GO TALK TO THE GOVERNOR. AND SO THEY DID. AND THE GOVERNOR CALLS AND SAID, HEY, WE NEED TO FIGURE SOMETHING OUT, BUT YOU HAVE TO PAY FOR IT. SO WE HAD TO GO ROB PETER TO PAY PAUL. SO IT ALL WORKS. AND THEN THE LAST ONE, IF YOU HAVE MORE QUESTIONS ON THAT STRAIGHTER, WE'RE HAVING A MEETING, I THINK TOMORROW. I SAW MY SCHEDULE. I WAS DIDN'T HAVE ANYTHING TO DO BACK THERE.

SO I LOOKED AND SO WE'RE HAVING A MEETING TOMORROW WITH BGE, WITH THE COUNTY TO GO OVER STRAIGHTER ROAD BECAUSE THIS IS A ENVIRONMENTALLY CLEARED PROJECT. SO THEY'RE PROPOSING CERTAIN WAYS TO GET ACROSS THE RAILROAD TRACK TO GET TO BACK TO 156. SO THEY WANT TO COME SHOW. BEFORE WE GO TO THE PUBLIC MEETINGS, MAKE SURE THAT WHAT THEY'RE SHOWING THE PUBLIC IS WHAT THE COUNTY IS WILLING TO PAY FOR. SO WE'LL KEEP YOU POSTED ON THAT IN THE NEAR TERM.

JOHN, WHAT'S WHAT'S THE SPECIAL THING ABOUT THIS? BECAUSE IT GOES FROM A STATE ROAD TO A STATE. YEAH. SO THE REASON WE'RE FEDERALLY CLEARING IT IS BECAUSE IT'S CONNECTING US 35 TO 156. AND SO I DON'T WANT TO LET THIS OVERLY DULY ALARM YOU, BUT THE OUTER LOOP IS COMING IN NORTH OF DENTON ON MILUM ROAD. WE'RE CONNECTING THAT OUTER LOOP FROM 35 OVER TO 156. AND SO THERE IS NOW TALK IN THE REGION OF THE OUTER LOOP, CONTINUING ALONG. 156 SO 156 IS ABOUT TO BECOME SOMETHING MORE IMPORTANT THAN JUST A TWO LANE, TEN FOOT SHOULDER OR STATE FARM TO MARKET. SO IT'S IN THE EARLY STAGES. WE'LL ALL BE PART OF THE GNASHING OF TEETH TO GET IT DONE, BUT THAT'S WHY WE'RE GOING TO GRADE SEPARATE AT 156. AS WE KNOW, IF WE GRADE

[00:35:01]

SO MORE GOOD NEWS. THIS IS ALL ONE BREAKOUT. THE CITY OF DENTON IS OUR GEC. SO WE HIRED THEM BECAUSE THEY'RE OUT THERE ALREADY. AND IT'S A $5.8 MILLION JOB. WE LET IT. THEY LET IT IN APRIL 1ST. I JUST OWN 3 MILLION BUCKS. WE'RE GOING TO TRY TO GET THAT ON THE COMMISSIONERS COURT AGENDA IN THE NEXT COUPLE OF DAYS, COUPLE OF WEEKS. BUT IT WILL ADD YOU'VE ALREADY GOT FIVE LANES OUT THERE WHICH HELPED MOVE THINGS. BUT WE'RE GOING TO ALSO BE DOING TURNING MOVEMENTS, RIGHT TURNS AND LEFT TURNS. SO WE'RE GOING TO BE WIDENING THE PAVEMENT AND MAKING IT EASIER TO GET THROUGH. AND WE'RE GOING. THIS IS A I GOT TO GET THIS MAP UPDATED BECAUSE WE'RE GOING ALL THE WAY TO SAGE BROOK NOW. AND WE'RE INCLUDING THE SAGE BROOK.

SIGNAL. THAT'S WHAT WENT FROM 2.8 TO 5.8 QUESTIONS ON THAT. AND THAT'S GOING TO BE THERE'S GOING TO BE A CONTRACTOR OUT THERE. AND 45 DAYS. AND WITH THIS ON OUR AGENDA LATER TONIGHT, WE HAVE AN I L A TO GET BENTON TO REBUILD THE VERY NORTH SIDE OF GIBBS ROAD.

THAT'S PART OF THIS PROJECT. YES. YEAH, YEAH, YEAH, THEY'RE THAT'S LUMPED INTO THIS 5.8 JUST TO FINISH WHAT THEY DID DOWN THERE. AND THEN THE LAST ONE I NEVER KNOW ANYTHING ABOUT ALWAYS LET ME TALK ABOUT IT. I JUST PUT IT IN YOUR REPORT BECAUSE HE TOLD ME TO. WELL THE COUNTY'S ASSISTING US WITH THIS. THE NORTH PROJECT IS PRETTY MUCH DONE. WE'VE GOT SOME CLEANUP ON SOME CULVERTS IF YOU'VE DRIVEN OUT THERE. BRANDON, THEY GOT THE FINAL COURSE ON IT. IT'S OKAY. THE FINISH COATS ALL THE WAY THROUGH NOW. IT FINISHED YESTERDAY. YEP. WE STILL HAVE SOME RIGHT OF WAY ACQUISITION. JUST A LITTLE STRIP OF LAND.

BUT THE PROPERTY OWNER HAS DOESN'T HAVE A CLEAR DEED TO IT. SO WE'RE WORKING THROUGH THAT TO GET THE SOUTHERN PORTION DONE. THAT'S ALL I HAVE FOR YOU. UNLESS YOU GOT QUESTIONS, WE'RE GOING TO YOU'RE GOING TO START TO SEE A LOT OF STUFF HAPPEN AROUND HERE STARTING IN, YOU KNOW, IN THE NEXT SUNDAY AND THEN EVERY COUPLE OF MONTHS FROM THAT POINT ON, YOU'RE GOING TO START TO SEE THINGS GO. AND THEN WE'LL BE ABLE TO COME BACK NEXT TIME AND TELL YOU THAT 35 W IS FUNDED. WE'RE PRETTY CERTAIN WE GOT THAT RESOLVED, AND THEN WE'LL KNOW WITHIN A SHORT TIME AFTER THAT WHAT SECTIONS ARE GOING TO START. REMEMBER THE 407 BREAKOUT? THE THE THE 40,000,001 WAS GOING TO ADD SIX LANES TO 407 FROM GATEWAY TO CLEVELAND. GIBBS. SO EVEN THOUGH WE'RE ALREADY DOING THE FIVE LANES IN THE MIDDLE WITH THE MICRO, WE STILL NEED TO DO THE SIX LANES ON EITHER SIDE. SO EVEN THOUGH THE BIG JOBS COME IN TO DO THE FULL ON INTERCHANGE, IF WE GET THAT 35 W JOB DONE, WE STILL NEED TO BUILD THE SIX LANES ON EITHER SIDE. THAT'S WHY THOSE THAT'S WHY WE'RE STILL PROGRESSING THAT PROJECT. ABSOLUTELY. IT'S THAT'S CRITICAL TO MOBILITY HERE. I'M GLAD TO SEE THAT STAYING IN THE FOCUS JUST FOR COUNCIL AND MAYOR, YOU DID A LOT OF WORK TO FOCUS PEOPLE ON THE UTILITIES ON THAT. SO I APPRECIATE YOUR EFFORT ON THAT. THANK YOU JOHN. SQUEAKY WHEEL.

YES. I ALSO JUST WANT TO LET COUNCIL KNOW I HAD DISCUSSION WITH MR. PEROT AND HE'S LIKE, HEY, IS THERE ANYTHING ELSE I CAN DO FOR A TOWN? I SAID, YES, I WANT YOU TO SPEND EVERY WAKING MINUTE OF YOUR DAY GETTING THE LEGISLATURE TO FUND THE FRONTAGE ROAD PROJECTS, BECAUSE ALL THE DEVELOPMENT YOU'RE BRINGING TO THE NORTH OF US AND THE EXISTING DEVELOPMENT WITHIN NORTH LAKE, THE NEW GROCERY STORES, I SAID, PEOPLE ARE ALREADY TRYING TO LEAVE OUR COMMUNITY BECAUSE THEY CAN'T LEAVE EVERY DAY. SO HE'S LIKE, WELL, I THOUGHT I HEARD SOME STUFF ABOUT THIS. I SAID, IT IS SO CRITICAL, I NEED YOU. HE'S GOT HE MAY NOT EVEN KNOW IT.

YOU KNOW, AT SOME POINT YOU DON'T KNOW WHAT YOU GOT. BUT HIS TOP LEGAL LOBBYIST, SCOTT ROBINSON, IS OUR POINT MAN ON THIS PROJECT. SO WHEN WE GO TALK TO THE HEAD COMMISSION AND THE COMMISSIONERS AND WE BRING STEVE ROBINSON ALONG AND THEY KNOW WHO STEVE ROBINSON IS, RIGHT? SO WE'RE GETTING THEIR EARS BECAUSE ROSS JUNIOR HAS MADE IT A PRIORITY. I APPRECIATE THE COLLABORATION. THANK YOU VERY MUCH. ANY OTHER QUESTIONS FOR JOHN BEFORE HE STEPS DOWN? NO, I'M GLAD I WELCOME THE TRAFFIC FRUSTRATION. I KNOW IT'S GOING TO BE HARD ON ALL OF US, BUT TO FINALLY HAVE MOVEMENT ON THESE PROJECTS THAT WE'VE BEEN WORKING ON AND THANK YOU FOR WHAT YOU DO. YES, MA'AM. AND TELL THEM THAT I WAS SUPER ANGRY ABOUT THE GIBBS CROSSOVER AND THAT IT HAS TO HAPPEN. OKAY. AND THEN I JUST WENT CRAZY, RIGHT? SO DID HILLWOOD. THANK

[2.H. Briefing - Fiscal Year 2024-2025 Audit Presentation by Town Auditor]

[00:40:14]

SO WE HAVE 1 OR 2 MORE YEARS LEFT ON THAT CONTRACT. AND THEN THE FINANCIAL STATEMENTS DID RECEIVE A CLEAN OPINION FROM THE AUDITORS. AND JUST A FEW HIGHLIGHTS, REALLY BRIEFLY FROM THE GOVERNMENT WIDE PORTION OF THE REPORT. ENDING NET POSITION OF THE TOWN WAS 150, ABOUT 160 MILLION UNRESTRICTED NET POSITION WAS 25 MILLION. AND THEN TOTAL NET POSITION INCREASED 30, ABOUT 31 MILLION. ALL OF THIS IS PRIMARILY RELATED TO CAPITAL PROJECTS AND THOSE FUNDS. AND THEN THE AUDIT REPORT ITSELF CAN BE IS PROVIDED ONLINE FOR ANYBODY WHO WISHES TO GO VIEW IT. IT'S ON OUR WEBSITE UNDER THE FINANCE DEPARTMENT, UNDERNEATH THE ANNUAL COMPREHENSIVE FINANCIAL REPORT. AND WITH THAT, I'M GOING TO TURN IT OVER TO THE AUDITOR FROM BROOKS AND WATSON LEWIS, WHO'S GOING TO GO AHEAD AND RUN THROUGH HIS PRESENTATION AND CAN ANSWER ANY QUESTIONS FOR YOU. THANK YOU JOHN. THANK YOU JOHN. GOOD EVENING. COUNCIL. AS I GET SET UP HERE AS AS NOTED, MY NAME IS LEWIS BREEDLOVE, SENIOR AUDIT MANAGER AT BROOKS WATSON. AND WE HAD THE PLEASURE OF CONDUCTING THE TOWN OF NORTH LAKES AUDIT FOR 2025. AND HAPPY TO REPORT, AS JOHN NOTED, A CLEAN OPINION. I DO LIKE TO USE THAT AUDIT POWERPOINT TO GO OVER THE RESULTS OF THE AUDITS. TO HELP SUMMARIZE, I KNOW AUDITS CAN SOMETIMES BE GOING THROUGH ALL THE NUMBERS THAT ARE IN THERE. IT CAN BE QUITE DULL AND BORING AT TIMES, SO I TRY TO KEEP IT AS SHORT AND BRIEF AS POSSIBLE, BUT AS WELL AS KEEP AS MUCH INFORMATION AS I CAN TO HELP INFORM YOU ALL. BUT WHAT I LIKE TO DO FIRST IS GIVE A QUICK OVERVIEW OF THE AUDIT PROCESS. SO WHEN WE PERFORM THE AUDIT, IT'S BROKEN DOWN INTO VARIOUS PHASES. AS WE FOLLOW, IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS. AND SO THOSE STANDARDS REQUIRE US TO FIRST DO AN ASSESSMENT. SO THAT INCLUDES A NUMBER OF STEPS, THAT PART OF WHICH IS HAVING EACH AREA WITHIN THIS TOWN OR ANYWHERE WHERE MONEY'S COMING IN OR GOING OUT. WE'RE EVALUATING, EVALUATING WHAT TYPE OF CONTROLS ARE IN PLACE. SO WE HAVE A NUMBER OF QUESTIONNAIRES THAT ARE COMPLETED BY EACH OF THOSE DEPARTMENTS. WE OBTAIN ANY POLICIES PROCEDURES THAT MAY ALREADY EXIST WITHIN THE TOWN AND REVIEW THOSE TO UNDERSTAND WHAT POLICIES AND PROCEDURES EXIST, HOW THOSE COMPLEMENT THE OTHER MEDIATING OR MITIGATING CONTROLS. AND THEN WE ALSO SAMPLE TEST EACH OF THOSE AREAS TO SEE THAT WHAT WE SEE IN PRACTICE IS CONSISTENT WITH WHAT WE WOULD EXPECT TO SEE BASED ON THOSE QUESTIONNAIRES THAT WERE COMPLETED AND THOSE WALK THROUGH PROCEDURES OVER THE OVER EACH OF THOSE DEPARTMENTS. THAT THEN DRIVES OUR RISK BASED APPROACH. SO OUR RISK BASED APPROACH IS EVERY LINE ITEM WITHIN THE FINANCIALS HAS A DIFFERENT TYPE OF RISK ASSOCIATED WITH IT. SO WE EVALUATE THOSE ANNUALLY. AND THAT THEN DRIVES AND DETERMINES WHAT TYPE OF PROCEDURES WE NEED TO PERFORM AND WHAT LEVEL OF PROCEDURE, DETAILED PROCEDURES WE NEED TO PERFORM OVER EACH OF THOSE AREAS TO ENSURE THAT WE'RE COMFORTABLE WITH THE MATERIAL ACCURACY OF THE FINANCIALS. ONCE WE'VE COMPLETED ALL THE TESTING IN THOSE AREAS, THEN THERE'S THE COMPLIANCE PHASE OF THE AUDIT.

SO THERE'S BID REQUIREMENTS THAT YOU ALL ARE AWARE OF. PUBLIC FUND INVESTMENT ACT REQUIREMENTS OVER DIFFERENT INVESTMENT REPORTING THAT'S REQUIRED. WE ALSO LOOK TO SEE IF THERE'S MAYBE ANY GRANTS THAT THE TOWN IS WORKING WITH, THAT WE WOULD WANT TO MAKE SURE THAT THE THE TOWN IS IN COMPLIANCE WITH. AND THEN WE REVIEW ALL OF Y'ALL'S MEETING MINUTES. SO IF YOU ALL MAY HAVE APPROVED SOMETHING THAT HAS A COMPLIANCE COMPONENT TO IT, WE WOULD ALSO LOOK INTO THAT AND MAKE SURE THAT THE TOWN IS COMPLIANT WITH THAT AS WELL.

THEN WE MOVE INTO OUR FIELDWORK PHASE. SO THAT'S OFTEN THE THE MEAT AND POTATOES PART OF THE AUDIT THAT MOST PEOPLE THINK OF WHEN WE'RE DOING THE AUDIT. AND SO WE'RE CONFIRMING WITH THIRD PARTY, WHEREVER POSSIBLE, ANY OF THE ACTIVITY THAT WE CAN. SO BALANCE SHEET, SUCH AS YOUR BANK, ANY RECEIVABLES THAT MAY PERTAIN TO A THIRD PARTY, WE CONFIRM THOSE AS WELL. WE PERFORM CUTOFF PROCEDURES TO MAKE SURE THAT ANY ACTIVITY THAT MAY OCCUR AFTER YEAR END THAT NEEDS TO BE ACCRUED BACK INTO THE CURRENT FISCAL YEAR IS PROPERLY INCLUDED IN THAT. SO WE'RE JUST TYING OUT THAT BALANCE SHEET AND ENSURING ALL THOSE ARE MATERIALLY REFLECTED CORRECTLY. AND THEN AS WE'RE DOING THAT, WE'RE ALSO TESTING THE ACCURACY OF YOUR REVENUES AND EXPENDITURES. AND SO ONCE WE'VE DONE ALL PROCEDURES LOOKING AT ANY CONTRACTS THAT MAY BE EXISTING THAT HAVE SOME NO DISCLOSURE REQUIREMENTS AND THINGS OF THAT NATURE, WE THEN MOVE INTO OUR CONCLUSION REPORTING PHASE. SO IT GOES THROUGH MULTIPLE LAYERS OF REVIEW TO MAKE SURE THAT NO ADDITIONAL AUDIT PROCEDURES ARE NECESSARY, AS WELL AS MAKING SURE THAT THE NOTE DISCLOSURES AND THE WAY THAT THINGS ARE REPORTED WITHIN THE FINANCIAL

[00:45:01]

BEHIND THAT GOES OVER MANY OF THE KEY FOLKS THAT ARE WITHIN MANAGEMENT, AND YOU ALL ON COUNCIL THAT ARE IN TOWN BEHIND, THAT'S YOUR FINANCIAL SECTION. SO THAT'S GOING TO START WITH OUR AUDITOR'S OPINION LETTER. THAT'S OUR OPINION OVER THE FINANCIALS. AND AS JOHN MENTIONED, THAT IS A CLEAN OPINION OR AN UNMODIFIED OPINION. AND THAT'S THE HIGHEST LEVEL OF ASSURANCE THAT WE AS AUDITORS ARE ABLE TO PROVIDE. SO THERE THERE ARE FOUR POTENTIAL OPINION THAT WE CAN ISSUE. THERE'S A QUALIFIED DISCLAIMER AN ADVERSE OPINION OPTION AS WELL. BUT THANKFULLY WE WERE ABLE TO ISSUE AN UNMODIFIED CLEAN OPINION. SO THAT'S WHAT WE WANT TO BE ABLE TO ISSUE. AND THANKFULLY WE'RE ABLE TO ISSUE A CLEAN REPORT.

BEHIND THAT IS YOUR MANAGEMENT'S DISCUSSION AND ANALYSIS OR THE MDNA. AND SO THAT'S GOING TO GIVE YOU A LOT OF YEAR TO YEAR COMPARISON. IT'S GOING TO HIT ON SOME OF THE KEY AREAS WITHIN YOUR FINANCIALS, SUCH AS BUDGET ACTIVITY, CAPITAL ACTIVITY, DEBT ACTIVITY, AND THEN ANY MAJOR SWINGS FROM YEAR OVER YEAR. AND WHAT MAY HAVE CAUSED THOSE BEHIND THAT IS THOSE ARE THE FINANCIAL STATEMENTS. SO THAT'S GOING TO INCLUDE YOUR GOVERNMENT WIDE FULL ACCRUAL STATEMENTS, AS WELL AS YOUR FUND LEVEL STATEMENTS OVER YOUR GOVERNMENTAL FUNDS, WHICH ARE THOSE ARE USUALLY WHAT YOU'RE USED TO SEEING WHEN YOU ALL ARE DOING YOUR BUDGET AND THINGS OF THAT NATURE. AND THEN BEHIND THAT IS THE NOTES TO THE FINANCIAL STATEMENTS. AND SO THOSE NOTES ARE GOING TO GIVE YOU A LOT OF KEY DATA AS IT RELATES TO THOSE FINANCIAL STATEMENTS. OFTENTIMES, THOSE NUMBERS IN THE REPORT MAY MEAN LITTLE TO NOTHING TO YOU UNTIL YOU READ THE NOTES. AND IT TELLS YOU HOW THOSE NUMBERS ARE ARRIVED AT. AND ALSO THERE'S OFTENTIMES BREAKDOWNS OF WHAT THOSE NUMBERS CONSIST OF TO HELP YOU GAIN AN UNDERSTANDING OF WHAT THOSE NUMBERS ARE REPRESENTING. AND THEN BEHIND THAT, YOUR SUPPLEMENTARY INFORMATION. SO THAT'S GOING TO INCLUDE TMS DATA, A LOT OF BUDGET REQUIREMENTS AND THINGS OF THAT NATURE. AND THEN FINALLY THE THE STATISTICAL SECTION. SO THAT HAS A TEN YEARS OF DATA OVER ALL KINDS OF INFORMATION RELATED TO THE FINANCIAL ASPECT OF THINGS, AS WELL AS POPULATION AND ALL KINDS OF INFORMATION THAT HELPS PROVIDE A LOT OF EXTRA TRANSPARENCY OVER THE THINGS THAT ARE OCCURRING WITHIN NORTH LAKE. NEXT, JUST GOING OVER SOME KEY FINANCIAL HIGHLIGHTS WITHIN THE YEAR. SO THIS IS COMPARING FUND BALANCE YEAR OVER YEAR FOR THE MAJOR FUNDS WITHIN THE GOVERNMENTAL PORTION OF YOUR AUDIT. SO THIS IS THAT FAR RIGHT COLUMN IS SHOWING YOU THE OVERALL CHANGE. THAT MIDDLE COLUMN THERE IS SHOWING YOU THE CURRENT YEAR. AND THEN THAT FAR LEFT COLUMN SHOWING YOU PRIOR YEAR ENDING FUND BALANCE. AND SO JUST TO QUICKLY COVER SOME OF THESE MAJOR CHANGES. SO GENERAL FUND, WE HAVE AN OVERALL INCREASE IN FUND BALANCE OF A LITTLE OVER $1 MILLION. AND THAT'S PRIMARILY JUST DUE TO YOUR, YOUR PERMIT REVENUES COMING IN WELL OVER EXPECTATIONS BASED ON YOUR BUDGET, WHICH WE'LL LOOK AT THE BUDGET TO ACTUAL FOR THE GENERAL FUND IN JUST A MOMENT. BUT THAT'S A PRIMARY REASON. EXPENSES ARE REALLY CLOSE TO WHAT WAS EXPECTED FOR THE YEAR. SO THAT WAS THE KEY DRIVER FOR THAT OVERALL INCREASE IN FUND BALANCE DEBT SERVICE. WE HAD AN OVERALL INCREASE THERE OF 774,000. AND THAT'S JUST DUE TO THE INTEREST INCOME PRIMARILY WHAT'S DRIVING THE FROM THE FUNDS THAT WERE SITTING IN THAT ACCOUNT, REFLECTING THAT OVERALL INCREASE IS THE PRIMARY REASON FOR THAT CHANGE YOUR CAPITAL IMPROVEMENTS. WE HAD A $1.4 MILLION INCREASE FROM THE PREVIOUS YEAR. THAT'S DUE TO BOTH THE BONDS THAT WERE ISSUED LAST YEAR FOR FOR THE CAPITAL PROJECTS THAT WERE ONGOING. AND A LOT OF CAPITAL ACTIVITY DID GET DID USE UP THOSE FUNDS, BUT NOT QUITE ALL OF IT. SO THERE WAS STILL AN OVERALL INCREASE OF 1.4 MILLION. SIMILARLY, IN YOUR HOTEL MOTEL FUND, WE HAD BONDS ISSUED ABOUT 5.3 MILLION, WHICH IS THE BULK OF THAT INCREASE, 5.7 FROM THE PREVIOUS YEAR, LEAVING IT A LITTLE OVER 9 MILLION IN YOUR ENDING FUND BALANCE FOR THE HOTEL, MOTEL, ROAD, ROADWAY IMPACT FEES, RELATIVELY CONSISTENT OVERALL INCREASE OF 302,000. NOT SUPER SIGNIFICANT. YOUR FUND ALSO MINOR INCREASE OF 28,000. AND THEN THAT NONMAJOR GOVERNMENTAL FUNDS THAT CONSISTS OF ABOUT TEN PLUS DIFFERENT FUNDS THAT ARE THEY DO NOT MEET THE REQUIREMENTS TO BE PRESENTED ON THE FRONT OF THE REPORT. THERE IS A BREAKDOWN OF EACH OF THOSE FUNDS IN THE BACK OF THE REPORT, BUT THOSE ARE CONSOLIDATED AS A NON MAJOR GROUPING OF FUNDS.

THOSE ARE PRIMARILY SPECIAL REVENUE FUNDS. THERE ARE TWO MAIN DRIVERS FOR THE OVERALL INCREASE IN THAT CATEGORY OF INCREASING 2.1 MILLION TO THOSE TWO DRIVERS ARE PRIMARILY THE FUND. THERE WAS A GENERAL FUND TRANSFER TO THE FUND ABOUT 1.1 MILLION. AND THEN YOU HAVE YOUR YOUR COST RECOVERY FEES. THERE WERE REVENUES OF IN THAT FUND FOR 693,000. SO THOSE ARE THE TWO PRIMARY DRIVERS. OTHERWISE THOSE FUNDS ARE SPECIAL REVENUE FUNDS UTILIZING THOSE THOSE

[00:50:03]

AND THE WATER AND SEWER FUND DOES HAVE AN OPERATING INCOME OF A LITTLE OVER 5 MILLION. SO A VERY HEALTHY OPERATING BUDGET THERE. AND THEN AT THE END OF THE FUND, AFTER ALL, NON-OPERATING TYPE ACTIVITY, THERE IS AN OVERALL INCREASE IN YOUR NET POSITION OF 17.4 MILLION. SO THE BIG REASON FOR THAT JUMP BETWEEN THAT 5 MILLION OPERATING INCOME UP TO THAT 17 IS PRIMARILY DUE TO THE CAPITAL PROJECTS THAT ARE ONGOING BEING TRANSFERRED INTO THE WATER SEWER FUND THAT. SO THAT WAS ABOUT 18.3 MILLION TRANSFERRED INTO THE THE WATER SEWER FUND FOR PROJECTS THAT WERE GOING ON. AND THEN THERE WERE SOME OTHER OFFSETTING INTEREST INCOME AND AS WELL AS INTEREST EXPENSE RELATED TO DEBT THAT THAT OFFSET SOME OF THAT AS WELL. SO OVERALL INCREASE OF 17.4 MILLION, WHICH OBVIOUSLY YOU'RE ALL VERY AWARE OF THE ALL THE GROWTH THAT'S HAPPENING RIGHT NOW IN YOUR COMMUNITY. SO THAT'S TO BE EXPECTED GIVEN ALL THE CHANGES THAT ARE HAPPENING. AND THEN NEXT THE COMMUNICATION LETTERS.

SO THERE ARE TWO LETTERS THAT COME WITH YOUR REPORT, THE FIRST LETTER BEING THE COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE. SO THERE'S A LOT OF REQUIRED COMMUNICATION IN THAT LETTER THAT WE'RE THAT WE INCLUDE IN THAT IT GOES OVER OUR RESPONSIBILITY OVER THE AUDIT INCLUDES ASPECTS OF MANAGEMENT'S RESPONSIBILITY OVER THE AUDIT. AND THERE ARE THREE KEY ITEMS IN THAT LETTER. I ALWAYS LIKE TO INCLUDE OR POINT OUT. ONE, THE AUDIT WAS CONDUCTED IN COMPLIANCE WITH ETHICS REQUIREMENTS REGARDING INDEPENDENCE. TWO, WE DIDN'T HAVE ANY DIFFICULTY ENCOUNTERED WHEN WORKING WITH MANAGEMENT.

AND THEN THREE, ANY AUDIT ADJUSTMENTS THAT WERE IDENTIFIED HAVE BEEN CORRECTED BY MANAGEMENT. AND THEN IN THE BACK, THERE IS A LIST OF OF THE FEW JOURNAL ENTRIES THAT WERE IDENTIFIED DURING THE AUDIT. AND THEN THE SECOND LETTER, THE COMMUNICATION REGARDING INTERNAL CONTROLS. THIS WOULD BE WHERE IF WE FOUND ANY ISSUES OR CONCERNS, WE WOULD IDENTIFY

[00:55:05]

TYPICALLY WHENEVER WE'RE AUDITING AND PROVIDING FEEDBACK AS IT RELATES TO THE FINANCIAL SIDE OF THINGS IS HOW, HOW ARE THE CONTROLS THAT ARE IN PLACE? AND JOHN AND THE TEAM HERE HAVE DONE AN OUTSTANDING JOB TO MAKE SURE THAT EVERYTHING IS DONE WELL, IMPLEMENTING ANY CONTROL THAT THEY POSSIBLY CAN. AND THEY'RE TALKING ABOUT WHAT ELSE WE'RE TRYING TO DO TO MAKE SURE THAT THERE'S MORE CONTROL IN PLACE. SO SO FROM THAT PERSPECTIVE AS WELL, EVERYTHING LOOKS GREAT. IT'S AS FAR AS A GRADING SCALE, I THERE'S NOT REALLY A WAY TO DO THAT. THIS NUMBER ONE ON THE LIST, BUT TRULY, I MEAN, WITH THE AMOUNT OF GROWTH I FEEL FROM AN OUTSIDER LOOKING IN, WHENEVER YOU SEE THE AMOUNT OF GROWTH AND THINGS THAT ARE HAPPENING, IT CAN BE DIFFICULT FOR A COMMUNITY TO TO KEEP UP. AND I THINK YOU ALL ARE DOING A GREAT JOB AT THAT. SO YEAH, HATS OFF TO THE TEAM HERE. YOU GUYS HAVE A GREAT CREW WORKING HERE. AND SO Y'ALL SHOULD BE PROUD. THAT'S SOME POSITIVE WORDS. SO THAT'S THAT'S GREAT. I MEAN IT IT SHOWS WE'RE DOING EVERYTHING WITH OPEN ACCOUNTABILITY. WE HAVE GREAT RESOURCES PUBLICLY FACING SO PEOPLE CAN SEE WHAT WE HOW WE SPEND THE MONEY. AND WE'RE WE'RE PRETTY DANG CONSERVATIVE. AND I APPRECIATE COUNCIL AS A WHOLE FOR CONTINUING THAT, STRIVING TO BE SO CONSERVATIVE WITH THE FUNDS THAT WE'RE GRANTED BY THE TOWN AND THE RESIDENTS. SO THANK YOU FOR THAT. APPRECIATE THE AUDIT, AND LOOK FORWARD TO WORKING WITH YOU AGAIN NEXT YEAR.

LIKEWISE. THANK YOU SO MUCH. THANK YOU. JOHN. IT IS ABOUT THAT TIME OF YEAR, ISN'T IT? OH,

[2.I. Briefing - Fiscal Year 2025-2026 Capital Improvement Program Update]

THERE'S PROBABLY GOING TO BE LESS THAN THAT 83 MILLION BY 10 MILLION OR SO, POTENTIALLY A LITTLE BIT MORE. BUT THAT'S REALLY DUE TO WHEN WE PLAN CAPITAL PROJECTS. WE HAVE OPTIMISTIC TIMELINES. THOSE DON'T ALWAYS HAPPEN THE WAY THAT WE FORESEE THEM. AND SO THINGS MOVE, TIMELINES CHANGE AND SPENDING THEN ALSO CHANGES WITH THAT. BUT JUST BELOW YOU CAN SEE A QUICK LIST OF WHERE WE'RE AT ON ACTIVE PROJECTS. YOU CAN SEE THAT 40.4 MILLION FOR BUILDINGS. IT'S A LOT OF THAT IS THE STAR CENTER. A LITTLE BIT OF THAT IS THE PUBLIC WORKS BUILDING. IT'S THE LARGEST ONE. AND THEN YOU HAVE THE REST OF OUR CATEGORIES THERE LOOKING AT COMPLETED PROJECTS. THIS IS A LIST OF ONES THAT HAVE BEEN COMPLETED HERE WITHIN THE LAST ABOUT 12 MONTHS. YOU HAVE THE HOTEL CONFERENCE CENTER, WHICH WE DID PURCHASE FINALLY PURCHASE IN OCTOBER. SO JUST RIGHT AFTER THE END OF THE FISCAL YEAR, YOU PROBABLY SAW THAT ON THE AUDIT REPORT THAT THE HOTEL OCCUPANCY TAX FUND HAD SOME EXTRA CASH IN THERE, ABOUT 5.3 MILLION. THAT WAS THE HOTEL CONFERENCE CENTER THAT WE HAD TAKEN OUT AND THEN

[01:00:02]

SO WE NOW HAVE THE THE CATHERINE BRANCH PHASE TWO SEWER WAS COMPLETED. DALE EARNHARDT WAY, CLEVELAND GIBBS ROAD, WHICH I FORGOT TO PUT THE HYPHEN IN THERE THAT DREW ASKED ME FOR IN THE PICTURE. AND THEN THE FORT WORTH WHOLESALE PHASE ONE A HAS ALSO BEEN COMPLETED.

THE ONE THAT IS COMPLETED NEARING COMPLETION IS THE SA CENTER BUILDING. IT'S SUBSTANTIALLY COMPLETE. THE GRAND OPENING WAS HELD, I THINK THAT WAS ALREADY INTRODUCED BY THE MAYOR, I BELIEVE, EARLIER IN THE MEETING. BUT 225,000FT■!, TWO ICE RINKS, EIGHT HARDWOOD COURTS THAT CAN BE CONVERTED INTO BASKETBALL OR VOLLEYBALL. AND I BELIEVE IF I'M CORRECT, IT HELD ITS FIRST TOURNAMENT THIS LAST WEEKEND. SO THINGS ARE KICKING OFF WITH A BANG FOR THE STAR CENTER. AND THE ONLY THINGS LEFT, AS FAR AS I AM AWARE, AND MY FINANCIAL ROLE IS JUST THERE'S THE FINISH OUT FOR THE INSIDE OF THE RESTAURANT, THE CLINIC AND THE PICKLEBALL COURTS, AND I'M JUST RECEIVING THIS INFORMATION SECOND HAND. SO I BELIEVE THAT HAS NO BUDGET IMPACT. IT'S UP TO THE TENANTS TO FINISH THOSE OUT. AND THE CLINIC MAY BE LATER THAN JUNE, BUT THEY'RE PUSHING TO GET THAT MAYBE BY THE END OF THE YEAR. BUT THE RESTAURANT HOPEFULLY THIS SUMMER AND THE TOTAL COST OF THAT PROJECT WAS 45 MILLION. SO WE HAVE A LITTLE BIT LEFT TO SPEND, BUT OR TO PAY OUT TO LEE LEWIS, THE CONSTRUCTION COMPANY. BUT THAT IS WE'RE PRETTY CLOSE TO THAT. MARK. LOOKING AT CURRENT PROJECTS, WE HAVE THE SOUTH SOUTHWEST CATHERINE BRANCH ELEVATED STORAGE TANK THAT IS SUBSTANTIALLY COMPLETE. YOU CAN SEE AN IMAGE THERE. THE BOWL HAS BEEN INSTALLED. THE PURPOSE OF THIS PROJECT IS TO HELP WITH INFRASTRUCTURE NEEDS IN THE CATHERINE BRANCH AREA, AND TO ENCOURAGE THAT COMMERCIAL GROWTH AND HELP DIVERSIFY THE TAX BASE IN THAT AREA. WE HAVE THE FORT ROAD WATER LINE PROJECT, WHICH IS UNDER CONSTRUCTION. THAT'S SUBSTANTIALLY COMPLETE FOR THE NORTH PHASE. IT'S SPLIT INTO TWO PHASES. YOU HAVE THE NORTH AND THE SOUTH PHASE. WE'RE INSTALLING WATER LINES ALONG FORT ROAD AND JUST PROVIDING WATER ACCESS AND SERVICES FOR THE NEW MULTI-ACRE LOTS THERE.

FORT ROAD RECONSTRUCTION IS A SIBLING TO THE WATERLINE PROJECT THAT IS BEING SUPPORTED PARTIALLY BY ROADWAY IMPACT FEES AND COUNTY CONTRIBUTION. IN ADDITION TO THE CERTIFICATES OF OBLIGATION FOR 2025. BUT THE NORTH PHASE IS ALSO SUBSTANTIALLY COMPLETE. THAT'S.

THIS PROJECT EXISTS TO HELP REPAIR SOME DAMAGES CAUSED BY TRUCKS, AS WELL AS NEED FOR REPAIRING SUBGRADE FAILURES AND SMOOTHING OUT AND STRENGTHENING THE ROAD AND PROVIDING DRAINAGE EASEMENTS. WHAT WAS THE I'M SORRY. I KNOW WE WENT THROUGH THIS A COUPLE TIMES, BUT FOR FORT, I REMEMBER THAT NORTH PART BEING EXPECTED TO TAKE A YEAR AND IT SEEMS TO HAVE GONE A LOT QUICKER THAN THAT. I THINK WE HAD SOME CONSERVATIVE TIMELINES, BUT WE. YEAH. AND WE WERE ABLE TO. AND BECAUSE THE SECOND PART IS DELAYING, THEY WERE ABLE TO KIND OF CONCENTRATE ON THE NORTHERN PART. GOTCHA. SO WE'LL GET BACK. WE'LL GET YOU BACK WITH THE ON THE SOUTH PART, MAINLY BECAUSE OF THE RIGHT OF WAY THAT. WE HAVE THE STAR SITE INFRASTRUCTURE, WHICH GOES ALONG WITH THE STAR CENTER BUILDING. THAT'S A PUBLIC INFRASTRUCTURE PROJECT TO SUPPORT THE STAR CENTER, BUT ALSO RETAIL DINING AND MULTIFAMILY HOUSING IN THE AREA, JUST LIKE THE STAR CENTER BUILDING, WHICH WE'VE ALMOST COMPLETED AND SPENT ALL THE MONEY, WE ARE CLOSE TO SPENDING THE MONEY THAT WE TOOK OUT FOR THE SITE INFRASTRUCTURE PROJECT HERE AROUND THE STAR CENTER THAT'S EXPECTED TO HELP WITH GROWING OUR COMMERCIAL TAX BASE AND PROPERTY TAX BASE, AS WELL AS WITH SALES TAX. NEARBY, THERE'S THE CHADWICK COMMONS INFRASTRUCTURE PROJECT. THAT'S A $4 MILLION PROJECT EXPECTED TO BE COMPLETED HERE IN 2026. THAT'S HELPING TO BUILD OUT THAT SPORTS AND ENTERTAINMENT AREA DOWN AROUND 114. IT'S GOING TO SUPPORT RETAIL, DINING, MULTIFAMILY HOUSING. AND I WAS TOLD TODAY THAT THERE'S ALREADY A HOTEL THAT'S TAKING ADVANTAGE OF IT AND IS BUILDING STUDIO REZ OUT THERE, SO THAT WILL HELP INCREASE AS WELL. OUR HOTEL OCCUPANCY TAX. I'M SURPRISED TO SEE ESTIMATED COMPLETION 2026, BUT I HAVEN'T DRIVEN BY THAT. THAT'S THAT'S JUST OUR PORTION. OH YEAH. IT'S NOT ALL THE PRIVATE DEVELOPMENT. OKAY, SO THE ROAD IS DONE. THE INFRASTRUCTURE IT'S THE INFRASTRUCTURE. YEAH. OKAY. WHAT DID I END UP CALLING? SOME THINGS YOU CAN'T SEE. SO THE OLYMPIC PLAZA. OLYMPIC PLAZA IS BASICALLY DONE WITH SOME CROSSWALKS AND SOME SIDEWALK AND ALL THE DRAINAGE THAT WAS DONE BEFORE THAT. ALL THE WATER AND SEWER WAS DONE BEFORE THAT. BUT IT GOES FROM BASICALLY PJ'S COFFEE ALL THE WAY TO CHADWICK PARKWAY. THAT KIND OF AREA HAS BEEN DONE. THERE MAY BE A LITTLE BIT OF SIDEWALK STUFF TO DO AFTER THEY CAN FINISH THE PRIVATE DEVELOPMENT. THIS IS A NEW PROJECT. IF YOU REMEMBER, THIS WAS A COUPLE SESSIONS AGO, COUNCIL MEETINGS AGO, WHERE WE BROUGHT TO YOU THE INTERSECTION

[01:05:01]

SO THEY SAID, WHAT HAVE WE CHANGED THIS TO A, AN ADDITIONAL RIGHT TURN LANE, A RIGHT TURN ONLY LANE ADDED, THEY WOULD DEDICATE A RIGHT OF WAY. IT WOULD BE PERMANENT. IT WOULDN'T HAVE TO BE TORN UP. SO IT JUST SEEMED LIKE A GOOD SOLUTION. YOU GAVE ME THE AUTHORITY TO NEGOTIATE THIS AISLE. I WAS GOING TO UPDATE YOU LATER IN THE MEETING, BUT THIS PERFECT TIME TO DO THIS. SO IT IS A LITTLE BIT DIFFERENT THAN WHAT WAS ORIGINALLY TOLD.

BUT OVERALL, I BELIEVE IT MAKES SENSE. IT'S PERMANENT, IT'S CHEAPER. THERE'S NOT GOING TO BE FIVE YEARS FROM NOW WHEN WE TEAR THAT ROAD UP, EVERYBODY'S GOING TO BE, WHAT ARE YOU, WHAT ARE YOU DOING? SO AND IT'LL GET EVERYBODY USED TO THOSE MOVEMENTS. THE KEY WILL BE ONCE WE GET THE DEVELOPER TO BUILD THE LIGHTS AND WE GET THAT GREEN ARROW, RIGHT TURN ARROW WITH THE RED LIGHT, YOU KNOW HOW THOSE WORK THAT'LL REALLY HELP THAT MOVEMENT GET THROUGH.

AND I THINK INITIALLY, DENNIS, WE'RE TALKING ABOUT HAVING THE. SO IT'LL BE THREE LANES HEADING WESTBOUND. THE FAR RIGHT LANE WILL BE RIGHT TURN. ONLY THE MIDDLE LANE WILL BE STRAIGHT AND RIGHT TURN. SO YOU CAN GET A LITTLE MORE PEOPLE THROUGH THE FAR LEFT LANE WILL BE STRAIGHT BECAUSE THERE'S NOWHERE TO GO LEFT FOR NOW, SO. SOUNDS LIKE A. IT IT I RECOMMEND OR I BELIEVE THAT IS PROBABLY THE BEST SOLUTION. IF USE OF FUNDS AND EXPECTATIONS OF THE DRIVERS IN THAT AREA AND STILL GETS THE GOAL OF GETTING TRAFFIC THROUGH THERE. THANK YOU DREW. SORRY TO INTERRUPT YOU JOHN. OH NO, YOU'RE GOOD. I DO NOT HAVE THAT INFORMATION.

SO STOPPING ME AND ASKING DREW IS THE CORRECT COURSE. SO THIS IS A SMALL PROJECT BUT IT IS PART OF OUR CAPITAL IMPROVEMENT PLAN. THIS IS AN UNFUNDED MANDATE FROM THE JUSTICE DEPARTMENT. BUT THE AMERICANS WITH DISABILITIES ACT COMPLIANT STUDY THAT WE ARE CONDUCTING IS TO JUST HELP MAKE SURE THAT WE'RE IN COMPLIANCE WITH ALL OF OUR ASSETS. AND SINCE WE'RE A NEWER TOWN, A LOT OF OUR STUFF IS ALREADY IN COMPLIANCE. WE JUST HAVE TO GO OUT AND SPEND MONEY TO PROVE THAT IS IN COMPLIANCE AND THEN MAKE ANY CHANGES. IF ANYTHING IS, ANYTHING IS MISSING. BUT WE SPENT ABOUT 30,000 OF THAT, A LITTLE, PERHAPS A LITTLE BIT MORE, BUT THAT'S EXPECTED TO WRAP UP IN 2027. THIS HAS BEEN ON HOLD. IT'S BEEN ON OUR BOOKS FOR A WHILE. IT'S STILL ON HOLD. THIS IS THE FLORENCE ROAD RECONSTRUCTION PROJECT. THE MAIN REASON FOR IT BEING ON HOLD IS THAT THE PROJECT ITSELF, WE'RE JUST STRUGGLING WITH RIGHT AWAY ACQUISITION. SO HOPEFULLY ONCE THAT GETS CLEARED UP, WE CAN THEN MOVE FORWARD. BUT THE GOAL IS TO USE CERTIFICATES OF OBLIGATION IN 2027. FUND THIS, BUT ALSO SIMILAR TO WHAT WE DID FOR DALE EARNHARDT WAY SOUTH, IS TO USE ROAD ASSESSMENT FEES TO HELP FUND THIS PROJECT AS WELL. NOW MOVING ON TO PROPOSED PROJECTS FOR PROPOSED DEBT, I JUST WANT TO TALK ABOUT THE DEBT ISSUANCE ITSELF FOR A SECOND, AND THEN WE'LL GET INTO THE PROJECTS. SO 22.8 MILLION IS WHAT THE TOWN IS ESTIMATING IS NEEDED FOR ONGOING UPCOMING PROJECTS.

THERE'S REALLY NO NEED TO TOP OFF PROJECTS THIS YEAR. WE JUST HAVE SOME PROJECTS THAT ARE WE'RE TAKING OUT DEBT IN PHASES, SO THE LIST OF PROJECTS IS RIGHT THERE. WE'RE GOING TO GO THROUGH EACH OF THESE ONE BY ONE, BUT THEY RANGE FROM 6.7 MILLION FOR FORT WORTH WATER PHASE ONE B, WHICH IS THE SECOND HALF OF PHASE ONE A THAT WAS RECENTLY COMPLETED TO ABOUT 1.5 MILLION FOR BEGINNING THE ENGINEERING FOR THE NORTHWEST ELEVATED STORAGE TANK. SO PHASE ONE B THIS IS GOING TO MOST LIKELY BE. THIS IS GOING TO BE DONE IN TWO TRANCHES. BUT. 6.4 6.7 MILLION FOR CONSTRUCTION. IT'S GOING TO BE SUPPORTED BY UTILITY REVENUES. BUT IT'S. TO HELP PROVIDE ADDITIONAL ACCESS TO FORT WORTH WHOLESALE WATER FOR THE SOUTHERN AREA. IT'S

[01:10:02]

AND THE HOPE IS THAT TAKING THIS MEASURE WILL LIMIT ANY FUTURE DAMAGE AND PREVENT THE NEED FOR ANY ADDITIONAL OR COSTLY REPAIRS. FORT WORTH PHASE TWO IS CURRENTLY ENGINEERING, AND WE'RE REQUESTING, AS PART OF THE DEBT ISSUANCE, $2.2 MILLION FOR ENGINEERING. IT'S GOING TO BE SUPPORTED BY UTILITY REVENUES. ULTIMATELY, IT'S A $20 MILLION PROJECT. THE ENGINEERING ITSELF TAKES UP A CHUNK OF THAT, BUT IT'S GOING TO PROVIDE ADDITIONAL ACCESS JUST LIKE THE FORT WORTH PHASE ONE. THIS ONE IS GOING TO PROVIDE ADDITIONAL ACCESS FOR FORT WORTH WHOLESALE WATER. IT'S GOING TO INCLUDE A PUMP STATION, GROUND STORAGE TANK AND SECOND POINT OF DELIVERY AND THE SPENDING HERE IN FISCAL YEAR 2026, AS I MENTIONED, IS FOR ENGINEERING COSTS. THERE'S ALSO ANOTHER ELEVATOR STORAGE TANK, AND WE'RE JUST WRAPPING UP ONE WITH THE CATHERINE BRANCH. THERE'S NOW THE FLORENCE, THE ONE OF THE PRIMARY DRIVERS FOR THIS IS THAT WE NEED IT IN ORDER TO MEET TEXAS COMMISSION ON ENVIRONMENTAL QUALITY STANDARDS. AND IN ADDITION TO THAT, TO ALSO JUST PROVIDE MAINTAIN PRESSURE AND PROVIDE SERVICES TO THOSE IN THE AREA. THE TOWN'S ALREADY ACQUIRED LAND FOR THIS PROJECT, THE 1.5 MILLION THIS YEAR WOULD BE TO GET ENGINEERING GOING. SO THEN WE CAN THEN ISSUE ADDITIONAL DEBT LATER ON TO THEN FUND THE PROJECT IN 2020 AND COMPLETE IT BY 2027. THERE'S A ROAD PROJECT WITH RECONSTRUCTION. IT'S A $2.9 MILLION PROJECT THAT'S FUNDED BY. THIS WILL BE FUNDED BY PROPERTY TAX COMPARED TO OUR WATER PROJECTS AND SEWER PROJECTS, WHICH ARE FUNDED BY AND SUPPORTED BY UTILITY REVENUES. THIS ONE WOULD ADD DRIVEWAYS ALONG 407 K LANE, US TRINITY AND NORTH TEXAS CHURCH OF CHRIST AREAS, AND THEN CREATE AN INTERSECTION ALONG ALIGNED WITH HORIZON WAY. HOPEFULLY THIS IMPROVES ACCESS TO TRAFFIC FLOW AND IMPROVE TRAFFIC FLOW AND PUBLIC SAFETY. AND IT'S GOING TO BE DONE IN TANDEM WITH THE PUBLIC WORKS BUILDING, WHICH IS HERE ON THE NEXT SLIDE. YOU CAN SEE ON THIS SLIDE THE PUBLIC WORKS BUILDING KIND OF RIGHT THERE IN THE CENTER, ALONG WITH THE STORAGE TANKS UP TOP. AND THAT'S THE BUILDING THAT BRANDON AND ERIC HAVE BEEN WORKING WITH ARCHITECTS ON. WE'RE NOW READY TO GO OUT FOR BID. WE'RE WORKING ON GETTING THAT OUT HERE IN THE NEXT COUPLE WEEKS, HOPEFULLY. AND THE ESTIMATED COST OF THAT PROJECT IS 16.2 MILLION. AND WE'RE PLANNING ON DOING THE ISSUANCE FOR DEBT IN FOR THE CONSTRUCTION PORTION OF THE DEBT IN TWO DIFFERENT TRANCHES WITH 17.3 MILLION THIS YEAR. AND THEN WE'RE SORRY, 7.3 MILLION THIS YEAR, ANOTHER 77. 3 MILLION THE FOLLOWING YEAR. AND IT'S GOING TO BE SPLIT BETWEEN OUR UTILITY REVENUES AND OUR PROPERTY TAX IN TERMS OF SUPPORTING THAT DEBT. BUT THIS BUILDING'S BEEN NEEDED FOR A WHILE TO HELP SUPPORT GROWING STAFF AND PUBLIC WORKS, AND THE NEED TO HOUSE ADDITIONAL EQUIPMENT THAT THEY USE TO MAINTAIN SERVICES HERE AT THE NORTH LAKE. AS FAR AS THE ISSUANCE ITSELF GOES, COUNCIL IS GOING TO SEE TONIGHT TWO ITEMS. ONE IS A NOTICE OF INTENT. THE SECOND IS AN ATTEMPT TO REIMBURSE. THE NOTICE OF INTENT IS SIMPLY THE FIRST STEP IN THE DEBT ISSUANCE PROCESS. WHEN YOU APPROVE, IF YOU JUST APPROVE IT, IT'S NOT COMMITTING COUNCIL TO ISSUING THE DEBT. IT'S JUST A APPROVED UP TO AMOUNT SAYING THAT THIS IS THE AMOUNT THAT WE'RE ALLOWED TO GO OUT FOR. IF THINGS CHANGE, YOU CAN ALWAYS ISSUE LESS OR IF FOR SOME REASON WE DON'T NEED ANY OF THE PROJECTS, YOU DON'T EVEN HAVE TO ISSUE AT ALL. BUT THE INTENT TO REIMBURSE IS, SINCE WE'RE PLANNING PROJECTS CONTINUE TO MOVE APACE, THERE IS SPENDING THAT HAPPENS PRIOR TO THE DEBT ISSUANCE OCCURRING. THIS INTENT TO REIMBURSE JUST ALLOWS THE TOWN TO LEGALLY REIMBURSE ITSELF OUT OF THAT DEBT ISSUANCE FOR PROJECT EXPENSES THAT OCCUR PRIOR TO US RECEIVING THE FUNDS. AND IN TERMS OF NEXT STEPS TONIGHT, AS I MENTIONED, YOU'LL SEE THE NOTICE OF INTENT AND THE NOTICE TO REIMBURSE THE ONCE APPROVED, WE HAVE TO DO TWO DIFFERENT PUBLICATIONS WITH THE LOCAL PAPER. SO APRIL 11TH AND 18TH WOULD BE THOSE NOTIFICATIONS.

AND THEN ONCE THOSE ARE OUT FOR ABOUT A MONTH, WE'RE ABLE TO COME BACK WITH AN ORDINANCE.

IT'S ABOUT 4545 DAYS IS THE LEGAL REQUIREMENT FROM THE FIRST ISSUANCE. BUT THEN WE'RE ALLOWED TO PASS AN ORDINANCE AUTHORIZING THE DEBT ISSUANCE. AND THEN JUNE 26TH WOULD BE THE CLOSING AND DELIVERY OF THOSE FUNDS TO THE TOWN'S ACCOUNTS. THEN I CAN ANSWER ANY QUESTIONS, IF THERE'S ANY, ABOUT THE ISSUANCE OR ANY PROJECTS. I THINK I THINK WE'RE GOING TO SEE SOME PUBLIC PRESSURE ON AS FLORENCE ROAD, AND I THOUGHT WE WERE A LITTLE FURTHER ALONG ON

[01:15:05]

UNDERSTOOD. AND THE ROAD ASSESSMENT FEE PROCESS IS IS HELPFUL BECAUSE THERE'S A LOT OF ETJ PROPERTY, BUT IT IS A LITTLE BIT LONGER PROCESS. SO WE'LL WE'LL PUSH IT AS FAST AS WE CAN, SIR. UNDERSTOOD. THANK YOU. THIS IS ONE OF THE THINGS THAT WE DO WHERE IT FEELS LIKE WE'RE SPENDING A LOT OF MONEY AND NONE OF IT'S VERY SEXY MONEY OR COOL PROJECTS, BUT THAT IF WE DIDN'T DO IT, WE WOULD, WE WOULD REALLY SUFFER IN THE FUTURE. AND THIS WOULD BE THE THING THAT WOULD MAKE EVERYBODY MAD AT US FOR NOT THINKING AHEAD. BUT THE THING THAT I WANT TO POINT OUT, JUST AS A POINT OF LIKE PERSONAL CONTENTION IS OUR ABILITY TO ISSUE DEBT FOR THESE TYPES OF PROJECTS SO THAT THEY ARE REALISTIC FOR A TOWN LIKE OURS IS AT RISK IN THE STATE HOUSE. AND SO WHEN WE COME BACK, WHEN WE COME, WHEN THEY COME BACK INTO SESSION, WHETHER IT'S RESIDENTS OR ANYBODY THAT'S LISTENING TO REACH OUT TO YOUR STATE REP TO PROTECT OUR ABILITY TO ISSUE DEBT LIKE THIS FOR INFRASTRUCTURE PROJECTS THAT OTHERWISE WOULD HAVE TO WAIT TEN PLUS YEARS. SO THANK YOU FOR PUTTING IT TOGETHER.

VERY EXCELLENT POINT. OUR LEGISLATURE KEEPS TRYING TO TAKE AWAY ANY AUTHORITY WE HAVE HERE TO HELP OUR RESIDENTS. ALL RIGHT. ANYBODY ELSE LIKE JOHN FOR ANY OTHER NUMBERS TONIGHT OR DO YOU HAVE YOUR FILL OF NUMBERS? GO OVER IT AGAIN? NO, I ABSOLUTELY LOVE TO. BUT I THINK WE'LL TAKE A BREAK FOR TONIGHT AND LET SOMEONE ELSE HAVE THE MIC. ALL RIGHT. THAT CONCLUDES OUR BRIEFING ITEMS. SO NEXT I'LL OPEN PUBLIC INPUT IS 6:46 P.M. AND DO I HAVE ANYBODY WHO WISHES TO SPEAK TONIGHT ON ANY TOPIC? SEEING NONE. ALL RIGHT. WE WILL CLOSE

[4. CONSENT ITEMS]

MOTION PASSES UNANIMOUS. I HAVE A QUESTION. I JUST CLOSED THAT ONE ON MY WINDOWS. I DON'T KNOW HOW TO MAKE IT COME BACK TO YOU. GOT TO TEST THE NEW PEOPLE.

YEAH. I KNOW YOU FORFEIT YOUR RIGHT TO VOTE THE AGENDA. RIGHT? WHILE THEY'RE WORKING ON THAT,

[5.A. Consider approval of a Resolution of the Town of Northlake, Texas authorizing publication of Notice of Intention to issue Certificates of Obligation; approving the preparation of a preliminary official statement and a notice of sale; and providing for the effective date thereof]

[5.A. VOTE]

DREW. PARDON ME. NO, THIS IS ACTION ITEM A. YES. I THINK WE GOT IT NOW. YOU GOT IT? WE WE WORK TOGETHER. THANK YOU. SOME BIG SHOES TO FILL IN THAT STATION OVER THERE. THROWING A CURVEBALL. I SET IT UP LIKE. LEAVE IT TO ALEX. THAT'S FINE. MOTION CARRIES UNANIMOUS. NEXT

[5.B. Consider approval of a Resolution of the Town of Northlake, Texas, expressing intent to reimburse certain Town of Northlake expenditures with the proceeds of debt obligations to be issued in the future]

[5.B. VOTE]

[01:20:01]

[5.C. Consider approval of a Site Plan for Classic Collision, a proposed 13,000 square-foot auto collision center on a proposed 1.90-acre lot to be platted in Northport Addition, Block 6, generally located on the east side of IH 35W approximately 400 feet north of Ashmore Lane - Case # 26-SP00001]

AND YOU'LL NOTICE SOUTH OF THIS THERE'S A SECOND PAGE OF THE SITE PLAN. AND THE REASON FOR SHOWING THIS IS THERE'S GOING TO BE A SHARED POLE SIGN, PYLON SIGN AT THE SOUTH WEST CORNER OF THE PROPERTY THAT WILL BE SHARED WITH THE FUTURE TENANT SOUTH OF HERE, WHICH WE'RE WE'RE HOPING IS IS A RESTAURANT. NOW THE HERE'S THE THE LANDSCAPE PLAN. THE REASON THIS IS BEFORE YOU IS THERE'S A FEW VARIANCE REQUESTS RELATED TO THIS LANDSCAPE PLAN THAT I'LL GET INTO MORE DETAIL ON IN JUST A SECOND. AND HERE ARE THE BUILDING ELEVATIONS. THESE BUILDING ELEVATIONS MEET ALL OF OUR RECENTLY UPDATED DESIGN STANDARDS. SO MOST OF THE ELEMENTS OF THE SITE PLAN PACKAGE MEET OR EXCEED THE STANDARDS IN THE UDC. HOWEVER, THERE ARE A FEW REQUESTS RELATED TO THE LANDSCAPE PLAN. THE FIRST ONE IS REQUEST TO REDUCE THE LANDSCAPE BUFFER FROM 25FT TO 10FT ALONG THE 35 FRONTAGE, AND TO PLANT THE REQUIRED TREES IN THAT AREA IN AN ALTERNATE LOCATION ON THE SITE. THE REASON FOR THIS IS DUE TO THE IRREGULAR SHAPE OF THE PROPERTY, AND BEING ABLE TO FIT A RECTANGULAR BUILDING ON IT, AND RELATED PARKING FACILITIES. THERE'S ALSO AN EXTRA LARGE PARKWAY AREA LANDSCAPED AREA BETWEEN THE FRONTAGE ROAD AND THE PROPERTY LINE, AND ON THE PROPERTY, THERE ARE SOME UTILITY AND EASEMENT CONFLICTS ALONG THAT FRONTAGE. ALSO, BECAUSE OF THOSE UTILITY AND EASEMENT CONFLICTS, THERE ARE SOME REQUIREMENTS FOR TREES IN THE PUBLIC PARKING AREA ALONG THE FRONT, AND THEY'VE REQUESTED THAT THOSE TREES BE PLANTED IN AN ALTERNATE LOCATION DUE TO THOSE CONFLICTS. THERE'S ALSO A REQUIREMENT FOR FOUNDATION PLANNING ALONG THE THE FRONT OF THE BUILDING WHERE THE MAIN ENTRANCE IS, AND THEY'VE REQUESTED RELOCATING THAT LANDSCAPING TO BOTH SIDES OF THE ENTRY DRIVEWAY. SO IT'LL BE EASIER TO SHOW THESE ON THE PLANS. SO I'LL GO THROUGH THESE ONE BY ONE. THIS FIRST ONE, THIS IS THE PROPOSED TEN FOOT LANDSCAPE SETBACK BUFFER. YOU'LL NOTICE RUNNING THROUGH THERE IS SOME UTILITIES AND IT'S COMPLETELY COVERED BY UTILITY EASEMENTS. AND IN FRONT OF THAT IS THAT LARGE LANDSCAPED PARKWAY BETWEEN THE FRONTAGE ROAD AND THE PROPERTY LINE. SO WITH THOSE AREAS COMBINED, IT IS ABOUT, I THINK, 44FT FROM THE FRONTAGE ROAD

[01:25:01]

ALSO, THEY PROPOSED RELOCATING THOSE TREES TO THIS AREA ON THE NORTH SIDE OF THE PROPERTY DUE TO THE CONFLICTS WITH THE UTILITIES. INSTEAD OF WHERE CAN YOU PUT THE THERE INSTEAD OF WITHIN THAT LANDSCAPE BUFFER ALONG THE FRONTAGE. AND THEN THERE'S ALSO REQUIREMENT FOR A CERTAIN NUMBER OF TREES IN THE PUBLIC PARKING AREA. AND THEY'VE PROPOSED PUTTING THOSE TREES ON THE NORTH SIDE OF THE BUILDING AS WELL IN THIS LOCATION. AND THEN FINALLY, THE FOUNDATION PLANNINGS WOULD TYPICALLY BE ALONG THAT FRONT FACADE, AND THEY'RE PROPOSING THE PLANTINGS ALONG EACH SIDE OF THAT MAIN DRIVEWAY, AND THEY'RE ACTUALLY PROVIDING MORE AREA THAN THEY WOULD BE REQUIRED TO WITH THE THE FOUNDATION PLANTINGS. SO THERE'S NO TREES AT ALL. THEN IN THE WHOLE PARKING LOT AREA ON, ON THE FRONTAGE, THERE IS NOT OKAY, JUST ON THE NORTH SIDE, JUST THE NORTH SIDE WITH TEN FEET. ISN'T THAT ENOUGH TO HAVE THAT IN THAT SPACE? THAT IS, IF THERE WAS NO UTILITIES THERE. OH, BUT UTILITIES. RIGHT.

OKAY. AFTER I LOOKED AT THIS AND I WANTED TO, I HAD TO COME UP WITH WHAT I WAS GOING TO COMPLAIN ABOUT. I LOOKED AT THE I LOOKED AT THE DISCOUNT TIRE IN ROANOKE ON 377. AND THIS HAS MORE LAND, MORE LIKE GREEN SPACE AND LANDSCAPING FRONTAGE THAN THAT ONE, IF NOT SIMILAR.

BUT THAT. ONE OF THE THINGS THAT THIS HAS. BECAUSE MY MAIN CONCERN WASN'T JUST, DO WE SEE ENOUGH TREES ON THE FRONTAGE? BECAUSE I DO WANT LANDSCAPING IN THE LIKE GREEN SCAPING THAT WE ASKED FOR, BUT JUST IS IT GOING TO LOOK JUNKY? ARE THERE GOING TO BE CARS BECAUSE THAT WE'VE TALKED ABOUT THAT SINCE THEY FIRST BROUGHT UP THE IDEA AND THAT THE THING THAT I LIKE ABOUT THEIR SITE PLAN AND WHAT MAKES ME OKAY WITH THE VARIANCES THAT THEY'RE ASKING FOR, IS THAT ANYTHING THAT LOOKS JUNKY AND COLLISION IS OUT OF VIEW. SO WE HAVE EVEN LESS. I THINK THAT THE DISCOUNT TIRE THAT'S IN ROANOKE LOOKS FINE FROM THE STREET, AND THAT WE HAVE LESS VISIBLE CAR PARKING THAT ALL OF THE ON THIS ON THIS PLAN, THAT ALL OF THE ACTUAL LIKE WORK AND THE THINGS WILL BE BEHIND A FENCE OR BEHIND THE BUILDING SO WE WON'T HAVE TO SEE THEM OTHER THAN THE CUSTOMER PARKING AT THE FRONT. AND THAT, THAT'S RIGHT. THIS, THIS WHOLE PARKING AREA BEHIND THE FRONT FACADE WILL ALL BE BEHIND A SOLID WALL. YEAH. SO WE DON'T HAVE TO LOOK AT IT. AND THAT IT'S REALLY CREATING A BUFFER BETWEEN THE STREET VISIBILITY AND THE CULVERT PLANT. SO I FEEL LIKE THIS IS A, A BETTER VIEW FOR WHAT YOU CAN HAVE. AND IT'S MONEY. FROM THE FRONTAGE ROAD. YES. AND. THE INITIALLY THE, THE ONLY ENTRANCE WILL BE FROM THE FRONTAGE ROAD. THEY ARE PROVIDING A STUB OUT TO THE SOUTH. SO WHEN THAT PROPERTY DEVELOPS THAT IT WILL HAVE CROSS ACCESS TO ASHMORE. SO ULTIMATELY THEY'LL BE SECONDARY ACCESS TO ASHMORE AS WELL. YES, CORRECT. JUST TO BE RIGHT IN AND RIGHT OUT THERE. ALL RIGHT. ANY OTHER QUESTIONS ON THAT? HOW HOW TALL IS THAT WALL GOES AROUND THAT GOES AROUND THE, I GUESS WHERE THE PARKING SPACES IN THOSE VEHICLES, THOSE SIX FEET, OKAY. SIX FEET. YES. OKAY. PRETTY TYPICAL COLLISION CENTER BECAUSE THE CARS ARE SOMETIMES WRECKED UP PRETTY BAD. AND I THINK THAT WAS JUST THE CONCERN IS JUST SEEING THOSE VEHICLES FROM THE. WON'T BE ABLE TO SEE IT UNTIL THEY DO THE OVERPASSES AT 114 AND 35, TEN YEARS FROM NOW. AND THAT WALL GOES AROUND THE ENTIRE BUILDING TO THE NORTH SIDE AS WELL. OR JUST IT'S JUST WHERE IT'S RIGHT HERE. OKAY. WE DO HAVE A REPRESENTATIVE FROM THE PROJECT HERE, IF YOU HAVE ANY QUESTIONS FOR THEM. AND AS A REMINDER, THE REASON YOU'RE SEEING THIS IS BECAUSE THERE ARE VARIOUS REQUESTS. THIS WENT BEFORE THE PLANNING AND ZONING COMMISSION

[01:30:02]

THERE'S SOMEBODY ELSE'S INVENTORY, BUT THERE WILL BE THE BUILDING AND THE LAND WILL BE TAX. I HAVE PROPERTY TAX AND THEY'LL BE SALES TAX. THEY'LL PROBABLY HAVE SOMEWHAT HIGH VALUE MACHINERY AND EQUIPMENT TO WORK ON THE CARS. YEAH. THEIR LIVES AND STUFF. YEAH.

AND RIGHT NOW WE JUST HAVE THE VALUE OF THE WE'RE GETTING TAXES FROM THE VALUE OF THE LAND. WELL, BEFORE THAT WE WEREN'T GETTING ANYTHING BECAUSE IT WAS WE OWNED IT.

YEAH. YEAH. OKAY. I'D LIKE TO. OH, ARE YOU GOING TO ASK QUESTIONS? I JUST GOT A QUICK QUESTION JUST FOR CURIOSITY'S SAKE. AND I APPRECIATE PLANNING AND ZONING GOING THROUGH THIS.

WHAT WAS THE CONCERN FOR THE ONE VOTE AGAINST. THEY DIDN'T STATE WHY. AND THERE WERE NO QUESTIONS BY THAT COMMISSIONER. DOES ANYBODY NEED TO HEAR ANYTHING FROM REPRESENTATIVE? I APPRECIATE YOU COMING TONIGHT. JUST SOUNDS GOOD. ALRIGHT, ALRIGHT. WITH THAT I WILL TAKE

[5.C. VOTE]

SHE'S PROBABLY WATCHING, SO BE CAREFUL. OH, IT'S RIGHT HERE. YEAH. YOU GOTTA PUSH THAT SAVE BUTTON. DON'T CLOSE ANY MORE WINDOWS. YOU TOO. MAYOR. IT SHOWS YOU NEED THE VOTE AS WELL.

I THINK IT'S THE LAST ONE ON THE OTHER. MAYBE I WENT TOO FAST. JOSH AND ROGER, COULD YOU ALL REVOTE? SHOWED UP ON BOTH PATHS, SO VOTING. JUST NOTE MINE IS CORRECT. FOR THE RECORD, WE NEED SOME MUSIC FOR A TECHNICAL DIFFICULTIES. ALRIGHT, WE HAVE A MOTION CARRIES 6 TO 1.

[5.D. Consider approval of a Resolution of the Town of Northlake, Texas, ratifying the actions taken by the Northlake Economic Development Corporation and Northlake Community Development Corporation Boards of Directors (the "EDCs"), approving a Pioneer Grant and performance agreement with Function Coffee Co., LLC, and its affiliate Function Northlake, LLC, collectively referred to as "Function Coffee Co." in the Pioneer Grant Application, in a total amount not to exceed $40,000 as specified in the Pioneer Grant Application, and authorizing the Town Manager to enter into a performance agreement for the Town and the EDCs.]

THIS IS A TWO FOR A TWO PHASE APPROACH WITH THE INITIAL PHASE ONE 15,000 FOR THE COFFEE SHOP,

[01:35:02]

ANYWAY, IN THAT TIME, IN A YEAR'S TIME, WE SHIPPED OUT TO 38 OF THE 50 STATES. AND IN ORDER TO CONTINUE THE MOMENTUM OF THE ROASTERY, WE NEED TO INVEST IN AN ADDITIONAL ROASTER AS WELL AS OCCUPY AN EVEN LARGER FACILITY THAT WE WOULD LOVE TO BRING BACK TO NORTH LAKE. AND WE WANT TO BUILD OUT THE FACILITY TO SUSTAIN GROWTH FOR THE ROASTER, AS WELL AS HOST EVENTS, ETC. WE'VE ACTUALLY HAD TO TURN DOWN A LOT OF WHOLESALE AND WHITE LABEL OPPORTUNITIES BECAUSE WE JUST DIDN'T HAVE THE CAPACITY OUT OF MY HOME OFFICE. SO WE MOVED IT INTO A FACILITY THAT WE OWN. AND JUST IN THAT IS A MIXED USE COMMERCIAL RESIDENTIAL SPACE.

BUT OUR HEARTBEAT IS IN NORTH LAKE AND WE WANT TO BRING IT BACK INTO OUR BACKYARD. 30% OF ALL SALES ARE NORTH LAKE, EVEN THOUGH WE HAVE 38 STATES. SO THAT'S COOL. OKAY, SO PROJECTIONS OF THE ROASTERY, WHAT YOU SEE RIGHT HERE IS THE ROASTERY SORT OF VISION, AN EXPERIENTIAL PLACE WHERE IT'S NOT JUST WE'RE NOT JUST EXECUTING AGAINST ORDERS, WE'RE ALSO INVITING FOLKS IN. AND SO WHAT, WHAT THE BEER SCENE HAS DONE FOR THAT EXPERIENCE. WE'D LIKE TO DO THE SAME FOR ROASTING COFFEE. SO WE DID 60 4K AS THE SIDE HUSTLE I MENTIONED LAST YEAR. SO ONCE IT IS NO LONGER THE SIDE HUSTLE AND IS THE FULL HUSTLE, YEAR TWO PROJECTIONS ARE 100 K, YEAR THREE, 300, AND THEN A SEVEN FIGURE ROASTERY BY YEAR FIVE.

NOW HOW DO WE GET THERE? SO FIRST OF ALL, LIKE I SAID EARLIER, WE WILL BE ROASTING FOR OUR HEADQUARTER FLAGSHIP CAFE HERE IN NORTH LAKE COMMONS. THAT'LL BE DAILY USE AS WELL AS RETAIL. TWO, OUR DIRECT TO CONSUMER E-COMMERCE PLATFORM. LOCAL AND NATIONAL SALES THERE.

THREE UNLOCKING WHOLESALE AND WHITE LABEL, WHICH WE COULDN'T HAVE DONE BEFORE. THAT ALSO INCLUDES THIRD PARTY CAFES, ALSO OTHER TRUCKS AND TRAILERS THAT ARE EXPLODING RIGHT NOW, GROCERY MARKETS AND CORPORATE EVENTS, CORPORATE GIFTS, ETC. AND THEN FOR THAT EXPERIENTIAL EVENTS THAT I'VE BEEN TALKING ABOUT WORKSHOPS, TOURS, TASTINGS IN THE BLENDED USE FACILITY. CAN I INTERRUPT YOU AND ASK YOU A QUESTION, PLEASE? I CAN SEE IN THE ROASTERY THE WHOLESALE BECOMING A BULK OF THAT BUSINESS. YES. HOWEVER, WE WOULD NOT SEE ANY REVENUES FROM A BULK OF THAT BUSINESS BEING THAT'S WHOLESALE. RIGHT. SO AS THAT ENTITY, WELL, PART OF THE BUSINESS GROWS, HOW DOES COUNCIL MAKE SURE WE STILL KEEP GETTING, YOU KNOW WHAT I SHOULD

[01:40:06]

AND THE GOAL I TELL EVERYONE THAT WE INTERVIEW IS WE HAPPEN TO SOURCE ETHICALLY AND ROAST BEAUTIFUL COFFEE, BUT WE ARE A HOSPITALITY BUSINESS AND WE ARE COMMUNITY FOCUSED BUSINESS AND WE WANT TO BE NORTH LAKES LIVING ROOM. THAT IS SORT OF OUR PILLAR RIGHT NOW. THERE ARE A HANDFUL OF INCREDIBLE RESTAURANTS. WE HAVE A GREAT DRIVE THROUGH COFFEE SHOP COMING. WE'VE GOT OTHER BIG NAME STORES COMING. THEY'RE GOING TO DO GREAT AND THEY SHOULD DO GREAT. BUT TO CREATE A TRUE THIRD SPACE IN THIS TOWN, ESPECIALLY RIGHT UP HERE, IS WHAT WE'RE AFTER. AND WE'RE GOING TO DO THAT. WE'RE GOING TO INCREASE FOOT TRAFFIC IN THE AREA. WE'RE GOING TO ESTABLISH PRESENCE AS A PREMIER SPECIALTY COFFEE SHOP HERE IN NORTH LAKE AND ACROSS DFW. AND ALSO WE WANT TO INCREASE THE WORKFORCE AND PROMOTE FROM WITHIN NEXT YEAR. PROJECTIONS FOR THE CAFE IN YEAR ONE TOP LINE IS 500 600 K, WITH THE AVERAGE ORDER VALUE OF 11 TO $24 AND AVERAGE MONTHLY TRANSACTIONS WITH A RAMP OF 2800 TO 3500. WITH A 20% YEAR OVER YEAR PROJECTED INCREASE, MAKING IT A SEVEN FIGURE CAFE BY YEAR FIVE. NOW, THAT IS A LITTLE BULLISH SOUNDING, SO I WANT TO ARTICULATE HOW WE GET THERE.

ONE, UNLOCKING MOBILE AND DELIVERY IN Q3 IS GOING TO BE MASSIVE. MOBILE ORDER AHEAD DELIVERY AND APPOINTS PROGRAM TO ENCOURAGE REPEAT VISITS AND LOYALTY. AGAIN, THIS IS MY BACKGROUND NUMBER TWO, LAUNCHING CAFE RENTAL, WHICH WILL BE IN Q2 IF WE DO IN FACT

[01:45:04]

I. I HAD SOME CONCERNS ABOUT THE AMOUNT WHEN I SAW THE AMOUNT ON THE AGENDA, AND I REACHED OUT AND ASKED SOME QUESTIONS ABOUT THAT. SO I THINK CONTINGENT ON THAT

[01:50:03]

THE SMALLER PART WHEN YOU DO MOVE IT BECAUSE THERE'S A LOT THAT CAN HAPPEN, A LOT THAT CAN HAPPEN IN THREE MONTHS, BUT TAKE IT TO THREE YEARS AND A LOT CAN CHANGE THERE. AND OBVIOUSLY THESE ARE CONTINGENT ON THAT. I'M ASSUMING IT WAS SOME TYPE OF CLAWBACK WITH HOW THIS WORKS, BUT THEN. BUT WHY NOT THE OTHER WAY AROUND? WELL IT IS IT WOULD BE AN INCENTIVE TO BRING THE ROASTERY BACK TO NORTH LAKE AND THERE'S NO DENYING THAT. BUT WITH THAT CONTINGENCY IN PLACE, IF WE DON'T MOVE IT BACK, WE DON'T WE DON'T GET THE GRANT. SO THIS IS NOT GRANTED UNTIL YOU DO THAT, RIGHT? THIS OH, THIS WAS PART OF THE NEGOTIATIONS WITH THE BOARD. I, I, I ADVISE BECAUSE I KNOW COUNCIL, I KNOW KNOW THE BOARD'S THAT IF SOMEBODY'S ALREADY COMING, WHY ARE WE GIVING THEM A GRANT? AND THIS PROPRIETOR SHOWED HIS GREATER VISION. AND SO THE BOARD SAID, OKAY, LET'S WE'LL GIVE THE 15 AND THEN THE 25 WHEN THE ROASTERY COMES. SO IT'S MORE LIKE A KNOW THAT FULLY MAKES SENSE. TWO STEP. YEAH, THE INITIAL ASK WAS JUST FOR THE THE CAFE. RIGHT. AND THEN WHEN THEY SAW THE PRESENTATION, THE VISION FOR THE ROASTERY, THEY, THEY POSTPONED THAT ITEM TO A SPECIAL MEETING ON APRIL 1ST.

AND THEN IT WAS THE IDEA OF THIS TWO PHASED APPROACH TO INCENTIVIZE THE ROASTERY COMING AND TO REDUCE UPFRONT RISK WITH THE LOWER AMOUNT FOR WHAT WAS ALREADY SET TO COME. OKAY.

THAT'S COOL. YEAH, THAT MAKES A LOT THAT MAKES FULL SENSE. THANK YOU. AT OUR. OH, SORRY.

ROGER. YOU GO. SO WE'D BE VOTING ON 15,000 TONIGHT AND THE 25,000 WOULD BE ANOTHER VOTE. NO, NO, THIS WOULD BE THE FULL 40,000. 15,000 WOULD BE GIVEN AT THE CEO OF THE CAFE.

AND THEN THE REMAINING 25,000 WOULD BE PRE-APPROVED, WOULD BE GIVEN AS LONG AS THE ROASTERY, THE ISSUANCE OF THE CEO OF THE ROASTERY, AS LONG AS IT'S BUILT WITHIN THREE YEARS. SO YOU'RE APPROVING. WELL, YOU'RE APPROVING THE RECOMMENDATION OF THE EDC BOARD'S OF A FULL 40,000. BUT THE SECOND PHASE IS CONTINGENT. OR YOU CAN REMEMBER, I THINK YOU HAVE AS GOOD A MEMORY AS ME. AS WE WERE BACK ON TOP OF THE HILL AND I WAS AGAINST PIONEER GRANTS FOR YEARS, BECAUSE I THINK YOU'RE INCENTIVIZING PEOPLE TO COME TO A PLACE THAT WHERE EVERYBODY OUGHT TO WANT TO COME. IN OTHER WORDS, THIS IS A GREAT TOWN. PEOPLE OUGHT TO WANT TO BE HERE.

I LIKE TAKING STUFF FROM JUSTIN, SO THAT'S A GOOD REASON FOR ME. YOU KNOW, BUT WE YOU BROUGHT UP A GOOD POINT THAT WHEN WE JUST HAD OUR, OUR MEETING THAT WE TALKED ABOUT STRATEGIC PLANNING.

RIGHT. THANK YOU. STRATEGIC PLANNING SESSION. I WAS WORKING ON MY VISION WHILE I WAS THERE THAT WE TALKED ABOUT FAMILY AND CLARIFYING WHO NORTHLAKE IS, WHAT OUR CULTURE IS LIKE, SO THAT WHEN PEOPLE HEAR THE WORD NORTHLAKE, THAT THEY KNOW WHAT THEY'RE TALKING ABOUT, THEY KNOW WHAT THEY THAT THAT WE HAVE AN IDENTITY AND WE. I'M PRETTY PARTIAL TO ANYTHING THAT IS REALLY ESTHETIC AND COOL THAT PEOPLE WANT TO GO TO, BUT THAT'S ALSO COMMITTED TO THE TOWN OF NORTHLAKE AND USING NORTHLAKE IN THEIR BRANDING, BECAUSE I REALLY GRINDS MY GEARS WHEN I WHEN IT'S NOT LIKE THAT. SO I WON'T MAKE A MOTION YET UNTIL WE GET TO CHAT. BUT I'M SUCH A FAN OF THE WAY THAT THEY, THE, THE FAMILY BEHIND THIS AND THE WAY THAT THEY'VE BUILT THIS BUSINESS BECAUSE THEY REALLY BOOTSTRAPPED IT AND IT, AND IT HAS BEEN SO IMPRESSIVE TO WATCH. SO I, I SPEAK FROM LIKE A PERSONAL KIND OF PLACE, VOTE OF CONFIDENCE THAT THEY'RE GOING TO, THEY'RE GOING TO MAKE IT SEEM LIKE BIGGER THAN IT, BIGGER THAN IT IS. I'M FLATTERED. THANK YOU. LISTEN, THIS IS CERTAINLY ONE OF THE BETTER PRESENTATIONS I'VE SEEN IN THE, WHAT, EIGHT YEARS OF SITTING UP HERE. SO THAT THAT WAS IMPRESSIVE IN ITSELF. THANK YOU FOR THAT. I'M NOT A BIG COFFEE DRINKER EITHER, BUT MY WIFE SPENDS SO MUCH MONEY. STARBUCKS. I HOPE YOU CAN CONVERT HER. IT BETTER BE BETTER THAN STARBUCKS COFFEE IF

[01:55:02]

BUT WHAT I REALLY APPRECIATE FROM THE BOARDS IS THE THOUGHT OUT PROGRESSION OF THIS. THAT DOESN'T LEAVE US ON THE HOOK. IF THEY DON'T COME, WE'RE NOT ON THE HOOK. IT'S VERY WELL THOUGHT OUT AND VERY STRATEGIC. AND WE TALK ABOUT STRATEGIC AND INTENTIONAL DEVELOPMENT WITHIN THE TOWN. SO I REALLY APPRECIATE THE WAY THE BOARDS DID THIS ONE. IT'S A LITTLE DIFFERENT THAN WE'VE SEEN BEFORE FROM BOARDS, AND I APPRECIATE THE GUIDANCE FROM STAFF AND WHATNOT THAT WENT INTO THIS BECAUSE IT IS SOMETHING DIFFERENT WITH BRANDING LIKE THAT AND SALES TO MULTIPLE STATES. IT'S ENCOURAGING. SEEING NORTH LAKE ON A BAG OF SOMETHING IS PRETTY COOL TOO. SO YOU KNOW. ALL RIGHT, DEAN HAS A LITTLE TWIST FOR YOU, SIR. JUST JUST AS A MATTER OF PROCEDURE, IF YOU COULD DO TWO READINGS ON THE ITEM, TWO READINGS. WE. YES HE CAN. HE'S ALREADY READ IT ONCE. SO YOU DO A MOTION AND A VOTE AND THEN READ IT AGAIN. AND THEN WE'LL DO A MOTION AND VOTE. THE REASON FOR THAT IS BECAUSE THERE'S A. THERE'S. SO WE HAVE TYPE A AND TYPE B, AND THAT WE'VE GIVEN THEM BOTH TYPE B POWERS. THERE'S A PROVISION THAT ALLOWS YOU TO ADOPT OR, OR UNDERTAKE A PROJECT AFTER YOU'VE GIVEN A RESOLUTION, AT LEAST TWO SEPARATE READINGS. IT DOESN'T TELL YOU THAT YOU HAVE TO VOTE TWICE. SOME MUNICIPALITIES WILL JUST READ IT TWICE AND VOTE ONCE. I LIKE TO I THINK IT'S I THINK IT'S GOOD TO VOTE TWICE. THAT WAY. YOU HAVE IT ON THE RECORD.

[5.D. VOTE]

AND MAYOR AND COUNCIL. IF I'M NOT IN THE OFFICES, YOU KNOW WHERE TO FIND ME. THANK YOU VERY MUCH, EVERYBODY. I CAN'T WAIT TO SEE YOU IN THERE. THANK YOU, SIR. IT LOOKS LIKE WE HAVE NO ACTIONS TONIGHT. NO POTENTIAL ACTIONS? NO. YES, SIR. DON'T ANTICIPATE ANYTHING. ANY

[6. EXECUTIVE SESSION]

[7. RECONVENE INTO OPEN SESSION]