Number 1311'EM L AY11ON :
Consider approval of an interlocal agreement for State Highway 121 between The City of Coppell and
Denton County; and authorizing the Mayor to sign.
SUBMITTED BY. Jim Witt
TITLE: City Manager
STAFF COMMENTS:
BUDGET AMT. $
FINANCIAL COMMENTS:
AMT. EST. $
w
+\ -BID $
DIR. INITIALS: FIN. REVIEW: CITY MANAGE]
Agenda Request Iratm Revised 2199 , DonmuentN lSHl
0
STATE OF TEXAS §
COUNTY OF DENTON §
INTERLOCAL COOPERATION AGREEMENT
THIS INTERLOCAL COOPERATION AGREEMENT is made and entered into as of the
day of , 2000, by and between the City of Coppell ( "City "), acting by and
through its City Council, and Denton County, Texas (the "County ").
WITNESSETH:
WHEREAS, the County and the City desire to enter into an agreement for the design,
construction and improvement of Section 13 of State Highway 121, CSJ- 364 -2 -17 and 364 -3 -64
(the "Project ").
WHEREAS, the Interlocal Cooperation Act, codified as V.T.C.A., Government Code,
Chapter 791 (the "Act "), provides authorization for any local government to contract with one or
more local governments to perform governmental functions and services under the terms of the
Act; and
WHEREAS, the County has filed an application with the Texas Department of
Transportation to obtain a $10,000,000 loan from the State Infrastructure Bank (the "SIB Loan ")
to fund a portion of the Project, including, particularly the engineering therefore;
WHEREAS, the City has heretofore expressed its support of the Project and the funding
of a portion of the costs of said Project;
WHEREAS, to enable the County to perform certain functions related to the Project, the
City has heretofore agreed to pay to the County a total amount of $ 2,000,000 payable in five
equal annual installments of $ 400,000 each as hereinafter provided;
WHEREAS, the parties hereto agree that if the SIB Loan is not made or the conditions
provided herein have not been met on or before October 1, 2000, the City reserves the right to
withdraw its commitment under this Agreement;
WHEREAS, the City and the County have both found and determined and do hereby
find and determine that the Project is in the best interests of the citizens of both the City and the
County;
NOW, THEREFORE, in consideration of the premises and covenants herein contained,
the City and the County agree as follows:
INTERLOCAL COOPERATION AGREEMENT BETWEEN
DENTON COUNTY AND CITY OF COPPELL -PAGE 1 30752
I.
The provisions of this Agreement contained in the preambles set forth above are hereby
incorporated by reference as if fully set forth in the body of this Agreement and shall become and
are hereby made a part of this Agreement for all purposes.
U.
The City hereby agrees to pay, when the Project reaches priority 2, the County the sum of
Two Million Dollars ($2,000,000.00) (the "City Commitment ") payable in annual installments of
Four Hundred Thousand Dollars ($400,000.00) on or before October 1 of the year priority 2 is
reached and each October 1 thereafter until fully paid. The County agrees to provide and
perform governmental functions and services as permitted by the Act in connection with the
Project. In addition, the City reserves the right to withdraw and cancel the City Commitment in
the event the County has not received the SIB Loan proceeds by or before October 1, 2000. NO
interest shall be charged to the City in connection with the installment payments of the City
Commitment. The City hereby reserves the right to prepay the City Commitment at any time
during the term of this Agreement, without penalty. In the event the Project does not achieve
priority one status by TXDOT by October 1, 2002, the City shall be refunded any payments made
under the terms of this Agreement, plus interest at a rate of ten percent (10 %).
III.
The City Commitment shall be paid only from current revenues of the •City as those
revenues exist from time to time.
IV.
This Agreement shall be for a term of six (6) years or until the City Commitment is paid
in full, whichever is less.
V.
This Agreement may not be amended or modified without the prior written consent of
both the City and the County.
VI.
If any clause, provision or section of this Agreement is ruled invalid or unenforceable by
a court of competent jurisdiction, the invalidity or unenforceability thereof shall not affect any of
the remaining clauses, provisions or sections hereof.
INTERLOCAL COOPERATION AGREEMENT BETWEEN
DENTON COUNTY AND CITY OF COPPELL -PAGE 2 30752
VII.
This Agreement may be executed in several counterparts, each of which shall be an
original and all of which shall constitute but one and the same documents.
VIII.
This Agreement shall be governed in all respects by the laws of the State of Texas.
IN WITNESS WHEREOF, the City and the County have caused this Agreement to be
executed by their duly authorized representatives pursuant to [ordinance or resolution 1 number _
of the City and Commissioners Court Order No.
DENTON COUNTY, TEXAS CITY OF COPPELL, TEXAS
Kirk Wilson, Denton County Judge
ATTEST:
Deputy, County Clerk
APPROVED AS TO FORM:
Candy Sheehan, Mayor
ATTEST:
IM
Libby Ball, City Secretary
APPROVED AS TO FORM:
By: By:
Assistant District Attorney
INTERLOCAL COOPERATION AGREEMENT BETWEEN
DENTON COUNTY AND CITY OF COPPELL -PAGE 3
Robert E. Hager, City Attorney
30752
Denton County Standing Committees
Corporate Recycling Council
Transportation Committee
Safety/Loss Committee
911 Emergency Board
Drug Free Work Place
Industrial Development Commisvon
County Representative
National Association of Counties
' Trnsportation Committee
Ow
to
December 21, 1999
Mr. Jim Witt, City Manager
The City of Coppell
255 Parkway Blvd.
Coppell, Texas 75019
SANDY JACOBS-
DENTON COUNTY COMMISSIONER
pEC � 3 �g99
RE: SH 121 State Infrastructure Bank Proposal and Interlocal Agreement
Dear Mr. Witt:
'ty Finance Committee
Tollroad Committee
Lc-untv Task Force
Co- Chairman
SH 1907askForce
County Representative
FM 423 Extension
County Representative
Attached is a copy of the initial proposal to the Texas Transportation Commission
regarding improvements to SH121. Denton County will make a presentation before the
TTC on January 27, 2000 related to this proposal. The section within Dallas County
identified as Section 13 in the cities of Coppell and Grapevine is awaiting environmental
clearance. Once that occurs, Denton County and the partnership team will initiate similar
steps to expedite its development and construction. Current estimates indicate that
Section 13 will be environmentally cleared some time in late 2000.
Denton County formally committed to the issuance of $8.25 million in bond funds for
the SH 121 Main Lanes project on December 21, 1999. Attached is a draft Interlocal
Cooperative Agreement (ICA) between Denton County and Coppell. Please take the
necessary steps to ensure that Coppell acts to approve the ICA by January 11, 2000 so
that Denton County and each city can present the strongest possible presentation to the
TTC at its January 27th meeting.
Should you have any questions, please do not hesitate to contact me at 972/492 -0139 or
John Polster at 972/484 -2525.
Sincerely,
S
Sandy Jacobs
Denton County Commissioner, Prct. 2
Denton County Government Center -1029 W. Rosemeade Parkway - Carrollton, Toms 75007
Phone/Voice Mail: (972) 492-0139 - FAX: (972) 3944097 - e-mail sjacobs@co.denton.br.us
PROPOSAL REGARDING SH 121
The Dallas District Office of the Texas Department of Transportation (TxDOT) in conjunction with
Denton County is submitting this proposal regarding SH 121 main lane improvements from the
Denton/Dallas County line to the Denton/Collin County line. The cities of The Colony, Carrollton,
Lewisville, Flower Mound, Coppell and Grapevine have all taken official action in support of this
project. The proposed actions for consideration are as follows:
1.) The Texas Transportation Commission to consider at its January 27, 2000 Commission meeting
elevating the following projects from Long Range Planning to Priority Two Status:
The elevation of these projects to Priority Two will permit the Dallas District, in conjunction with
Denton County, to begin the engineering phase of these sections.
2.) The Texas Transportation Commission to consider at its January 27, 2000 Commission meeting
preliminary approval of the State Infrastructure Bank (SIB) loan to Denton County in the amount
of $10,000,000.00 for the purpose of funding the plans, specifications and estimates for specific
sections of the SH 121 main lane project within Denton County. A complete application is
attached.
3.) The Texas Transportation Commission to consider elevating the following projects to Priority One
for funding in FY 2004.
egend
.,
CSJ#Y,*
Oft 'rr Cw�i
` t;Y�
a A" v.
stimateCost r r
'�!' Y a
N a w.
• cal:IN cipahon r
-a
(Temp �CSJ #) t�
:;�,k �:.h
.+ -13 t
'?"`r?'-''
Legead4
$20 Million
�,`�1
(3547 -01 -901)
14A
3547 -03 -003
From: SH 121 N of Denton Creek, E
$5.5 Million
0346 -03 -006
From: FM 544
To: Dallas C/L
$0.0 Million
3547 -02 -004
From: Denton C/L
$12.6 Million
To: Denton C/L
From: FM 423
$11.8 Million
3547 -01 -005
From: Dallas C/L
$7.8 Million
To: Collin C/L
(3547 -01 -900)
To: Lake Vista Drive
Total Local Participation
14B
3547 -01 -005
From: Lake Vista Dr.
$40.5 Million
(3547 -01 -901)
To: IH 35E
14C
3547 -01 -005
From: E of IH 35E
$22.4 Million
(3547 -01 -902)
To: Existing SH 121 near FM 544
Total Estimated Cost
$88.8 Million
The elevation of these projects to Priority Two will permit the Dallas District, in conjunction with
Denton County, to begin the engineering phase of these sections.
2.) The Texas Transportation Commission to consider at its January 27, 2000 Commission meeting
preliminary approval of the State Infrastructure Bank (SIB) loan to Denton County in the amount
of $10,000,000.00 for the purpose of funding the plans, specifications and estimates for specific
sections of the SH 121 main lane project within Denton County. A complete application is
attached.
3.) The Texas Transportation Commission to consider elevating the following projects to Priority One
for funding in FY 2004.
egend
.,
=- (TemP.
+..c..t. x iat,x
Esh_m�jA Coast
N a w.
• cal:IN cipahon r
14Bj
3547 -01 -005
From: Lake Vista Dr.
$40.5 Million
$20 Million
(3547 -01 -901)
To: IH 35E
15A
0346 -03 -006
From: FM 544
$5.2 Million
$0.0 Million
To: FM 423
034.6 -03 -067
From: FM 423
$11.8 Million
$ 1.8 Million
To: Collin C/L
Total Local Participation
$ 57.5 Million
$21.8 Million (37.9°/x)
4.) The Texas Transportation Commission to consider elevating the following projects to Priority One
for funding in FY 2005
'4 :
=t1
i.•'
*S7
•
Miff ,
• '
• 7 8
L eapp e nC
g
m p iCSJ#� ;
.
14A
3547 -03 -003
From: SH 121 N of
$ 5.5 Million
$ 2.0 Million
Denton Creek, E
To: Dallas C/L
3547 -02 -004
From: Denton C/L
$ 12.6 Million
$ 7.0 Million
To: Denton C/L
3547 -01 -005
From: Dallas C/L
$ 7.8 Million
$ 5.0 Million
(3547 -01 -900)
To: Lake Vista Drive
14C
3547 -01 -005
From: E of IH 35E
$ 22.4 Million
$ 9.0 Million
(3547 -01 -902)
To: Existing SH 121
near FM 544
Totals
$ 48.3 Million
$ 23.0 Million (47.6 %)
Representatives from Denton County would welcome the opportunity to meet with members of the
Commission to brief them on the specifics of this proposal either individually or collectively. Dallas
District representatives as well as Denton County representatives met with TxDOT Headquarters staff
regarding this proposal on November 16, 1999.
Your review and consideration of this proposal would be appreciated.
\\ITS SERVER\ itshome\ITSData \Tohn\MyFiles\DENENH\I2RSH 121SIB\PROPOSAL REGARDING SH 121 SIB Loan.doc
Denton County Standing Committees
:orporate Recycling Council
Transportation Committee
Safety/I.osa Committee
911 Emergency Board
Drug Free Work Place
Industrial Development commission
County Representative
National Association of Counties
Transportation Committee
December 20, 1999
SANDY JACOBS
DENTON COUNTY COMMISSIONER
Mr. James Bass
Director of Finance
Texas Department of Transportation
125 E. 11 'h Street
Austin, Texas 78701
Dear Mr. Bass:
NCTCOG Reidonal Transportation Council
Mobility Finance Committee
Tollroad Committee
SH 121 City/County Task Force
Co- Chairman
SH 190 Task Force
County Representative
FM 423 Extension
County Representative
Attached is a completed Application for Financial Assistance of $10,000,000.00 through
the State Infrastructure Bank (SIB). The loan will be used for the purpose of funding the
plans, specifications and estimates (PS &E) for the conversion of State Highway 121 to a
six (six)lane freeway within Denton County.
Denton County has worked to improve SH 121 since 1986. During this period the county
has assisted TxDOT in each phase of the development of this critical roadway. Over the
past year, the county has worked to create a partnership that includes the cities of The
Colony, Carrollton, Lewisville, Coppell and Grapevine as well as the North Central
Texas Council of Governments. Together, this partnership is prepared to commit
$48,250,000.00 to the conversion of SH 121 to a freeway. The following represents the
local participation in this project:
Denton County $8,250,000.00
Five Cities $10,000,000.00
NCTCOG $30,000,000.00
$48,250,000.00
The SIB loan application accompanying this letter requests funding for the PS &E, which
will be repaid from funds received from the five cities. Each city is committed to the
conversion of SH 121 to a freeway section and their portion of that cost. However, all
need the flexibility of providing those funds over a period of years. Denton County
proposes to borrow the funds from the SIB and be responsible for their repayment. The
County will in turn enter into interlocal cooperative agreements with each municipality
for repayment to the County. Without the SIB loan, the cities' ability to fund their
portion would be drastically reduced.
Denton County Government Center -1029 W. Rosemeade Parkway - Carrollton, Texas 75007
Phone/Voice Mail: (972) 492-0139 - FAX: (972) 3944097 - e -mail: sjacobs@co.denton.tx.us
fm
Mr. James Bass
December 20, 1999
Page Two
Again, SH 121 is a critical roadway with strong local support. The SIB loan would
ensure its timely completion of a project that is a key segment of a twenty five (25) mile
roadway (see attached map). I appreciate your consideration of this request. Should you
need any additional information, please do not hesitate to contact me at 972/492 -0139.
Sincerely,
S
"Jacobs San�
Denton County Commissioner, Prct. 2
cc: Denton County Commissioners Court
DENTON COUNTY
COMMISSIONERS COURT
October 26 1999
Month Day Year 1!"
Court Order Number: 99 -0 672
:I si 1j,
14.A) Approval of the State Highway Bypass mainlanes State Infrastructure
Bank loan progress report and the following appropriate action:
Authorize Sandy Jacobs to present the proposal to the Transportation
Commission for preliminary approval as requested by Chairman Laney on 11- 18 -99;
2) Add to the present authority of the SIB team the finalization of the
terms of the SIB loan and the development of the Interlocal Agreement Contracts
for each city within our partnership; 1
3) Approve the entire funding and financing recommendation to fund, including
the $10 million 91B Tnan and the $g-75 millinn RpttPr rnfer Rnndc funding.
Motion by Judge Wilson Seconded by Comm. Krueger
CountvJudoe Yes /
Kirk Wilson Abstain _
No
/ Absent
Commissioner Pct No 1 Yes / Commissioner Pct No 2 Yes /
Jeff Krueger . Abstain _ Sandy Jacobs Abstain
No _ No
Absent Absent
Commissioner Pct No 3 Yes //
Commissioner Pct No 4 Yes
Scott Armey Abstain
James Carter
Abstain_
No
No
_
Absent _
Absent _
r C)
i Motion Carried
Other Action: Pulled fr m Cons nt —
No Action _
Postponed _
BY O ER OF C ONERS COURT:
ATTEST:
Cynthia Mitchell,
County Clerk and
Ex -0flicio Clerk or the
Pres ng OtLcer
Commissioners Court or
Denton County, Texas
APP OYED AS TO FORM:
1"Jim(LA 1r- L'l/
BY
- Assistant District Attorney
ep uty County Clerk
State Infrastructure Ban'
Texas Department of Transpof ration - Budget and Finance Division
125 E. 11" Street Austin, TX 78 70 1 -24 83 (512) 463-8684
Application for Financial Assistance
FORM 1960
(10197)
Please respond to the information requested In Sections 11 and I/I on a separate page.
.)j: Se ction I -'
4llcatonnformatio
Project Name: State Highway — 121 from Dallas/Denton County line
Denton/Collin County iine
Applicant Name: Denton County, Texas
IRS Employer ID P: 75-6000920
Business Address: 110 W. Hickory, Denton, Texas 76201
streof city State ZIP
940-565-8688
Business Phone: 1-800-346-1689 BuslnessFax: 940-382-0845
Contact Person(s): The Honorable Sandy Jacobs, Denton County Commisio:
The Honorable Kirk Wilson, Denton County 'Judge
Contact's Phone: 972-492-0139 Contact's Fax: 972-394-4097
940-565-8688
ec o
A S n 11:7'Financial Inf
ormation j:.-'
Requested Amount of Financial Assistance (Types, Terms) Including Any Reserve Funds
See Attached
Total Cost (estimate) of Project
$105,800,000
Proposed Use of Requested Financial Assistance
See Attached
Proposed Pledge of Collateral or Security and Priority of Claim to Those Items
Tax Notes issued pursua-nt to Gov. Code Chapt. 1431
Latest Bond Rating Obtained Using the Sources of Revenue Pledged, or Other Evidence of Creditworthiness
Similar to that Required to Obtain a Bond Rating
Standard & Poor's: AA Moodv's: Aa2
�An electronL: version is available at http://www.dot.state.tx.us
Applicant Handbook - Version 1.0 page 11 16.10-97
19
,er
State Infrastructure Bank
Texas Department of Transpot n - Budget and Finance Division
125 E. 11 Street, Austin, TX 78701 -2483 (512) 463 -8684
Application for Financial Assistance
FORM 1960
(10/97)
Please respond to the information requested in Sections 11 and 111 on a separate page.
.s1.:'Section III- Proectlnfoimat T Project Highway Project Transit Project
Description of project and its need including the potential Impact on traffic congestion and mobility.
For highway projects:
Please provide a preliminary design study which includes:
• an Initial route and potential alignments;
• the project's logical termini and Independent utility;
• the location of all right -of -way, facilities and equipment required to make the
project functional; and
• revisions or changes to slate highway system facilities necessitated by the project.
For transit projects:
Please provide a preliminary scope study which shall include preliminary layouts, architectural drawings,
equipment specifications, and other information necessary to fully describe the project and to comply with all
reouirements of the Federal Transit Administration.
certify that:
- 'Section IV = :Staternent of Acknriwledgmentand Certification .' <rr�_ =` = -� I
The project sponsor has the authority to request and Incur the debt described in this
application, and upon approval, will enter into contract for the repayment of any financial
assistance granted by the State Infrastructure Bank.
The preliminary requirements have been completed as specified by the State
Infrastructure Bank, and the project sponsor will comply with all applicable state and
federal regulations and requirements.
To the best of my knowledge all Information contained In this application Is valid and
accurate and the submission of this application has been authorized by the governing
b of the undersigned j\uris ' tion. 11` a
Sandy Jacobs
'tint ar type name
Denton CountyCommissioners
Niue, Judsdicuon PC T 7`2 --
Please complete ALL sections of the application. Additional
information may be requested.
Applicant Handbook -Version 1.0 page 12 16-10.87
SECTION II - FINANCIAL INFORMATION
REQUESTED AMOUNT OF FINANCIAL ASSISTANCE (TYPE AND TERMS) INCLUDING
ANY RESERVE FUNDS:
Applicant requests a State Infrastructure Bank (SIB) loan in the amount of $10,000,000.00. Applicant also
requests a loan structure with a term of 7 years with interest only payments for the first year and level
principal and interest payments for the remaining 6 years. It is proposed that this loan be at an annual
percentage rate not to exceed 4.5 %. Applicant proposes to retain the right to prepay the loan at any time
during the life of the loan.
TOTAL COST (ESTIMATE) OF PROJECT:
$105,800,000.00
PROPOSED USE FOR REQUESTED FINANCIAL ASSISTANCE:
Applicant proposes to utilize the SIB loan proceeds to provide the Texas Department of Transportation
with plans, specifications and estimates (ps &e) for specific sections of the SH 121 main lane project within
Denton County.
PROPOSED PLEDGE OF COLLATERAL OF SECURITY AND PRIORITY OF CLAIM TO
THOSE ITEMS:
Tax Notes issued pursuant to Government Code, Chapter 1431
LATEST BOND RATING:
Standard & Poor's: AA
Moody's: Aa2
SECTION III - PROJECT INFORMATION
TYPE OF PROJECT:
Highway Project
DESCRIPTION OF PROJECT AND ITS NEED INCLUDING THE POTENTIAL IMPACT ON
TRAFFIC CONGESTION AND MOBILITY:
The proposed improvements to SH 121 include the section within Denton County as well as a section with
in Dallas County. The overall project stretches from the Dallas/ Fort Worth International Airport to the
City of McKinney. The projects associated with this SIB loan are the sections within Denton County. The
different sections are depicted in the attached exhibit developed by the Dallas District Office of the Texas
Department of Transportation (TxDOT). The following is a brief description of the proposed roadway
improvements associated with County's SIB request for PS &E funds.
Section 14a
The proposed improvements from SH 121 north of Denton Creek to Lake Vista Drive are identified as
Section 14a. Section 14a improvements (CSJ 3547 -3 -3; CSJ 3547 -2 -4; CSJ 3547 -1 -900) include the
construction of six (six) main lanes as well as grade separations at Denton Tap Road and MacArthur.
The estimated construction cost of Section 14a is $25,900,000.00.
Section 14b
The proposed improvement from Lake Vista Drive to East of IH 35E is identified as Section 14b. Section
14b improvement (CSJ 3547 -1 -901) includes the construction of a multi -level interchange at IH 35E. Both
the Dallas District and NCTCOG consider this project to be the most critical in terms of congestion and
regional mobility. The estimated construction cost of Section 14b is $40,500,000.00.
Section 14c
The proposed improvements from east of IH 35E to existing SH 121 near FM 544 are identified as Section
14c. Section 14c improvements (CSJ 3547 -1 -902) include the construction of six (six) main lanes as well
as grade separations at Huff ines Blvd., Hebron Parkway and Carrollton Parkway. The estimated
construction cost of Section 14c is $22,400,000.00.
Section 15
The proposed improvements from FM 544 to the Denton/Collin County Line are identified as Section 15.
Section 15 improvements (CSJ 364 -3 -66; CSJ 364 -3 -67) include the construction of six (six) main lanes as
well as grade separations at Standridge Drive, FM 423 and Plano Parkway. The estimated construction
cost of Section 15 is $17,000,000.00.
DENTON COUNTY AUDITOR'S OFFICE
301 E. MCKiNNEY
DEMON, TExas 76201
940/565 -8575
Fnx: 940/585-8681
November 1, 1999
State Infrastructure Bank
Texas Department of Transportation
125 E. I I' Street
Austin, Texas 78701 -2483
Sirs:
This letter is to confirm to you that Denton County's current bond ratings are "AA" with
Standard and Poors and "Aa2" with Moodys Investors Services.
These bond ratings were reconfirmed by both ratings services in conjunction with the County's
most recent bond issue during March, 1999.
Sincerely,
James A. Wells, CPA
Denton County Auditor
C:\mydocuments \word \commct \texdot rating letter
Moody's Investors Service
Global Credit Research
Denton (County of) TX
Contacts
Douglas Benton 214 - 220 -4347
Anita Russell - Mushell 212 - 553 -0818
Moody's Rating
Issue
Certificates of Obligation, Series 1999A
Sale Amount $13,290,000
Expected Sale Date 12/02199
Rating Description General Obligation
Municipal Credit Research
New Issue Report
Published 24 Nov 1999
Rating
Aa2
Tax Notes, Series 1999 Aa2
Sale Amount $2,060,000
Expected Sale Date 12/02/99
Rating Description General Obligation
Moody's Assigns Aa2 To $15,350,000 of Denton County's General Obligation Issues
Rating Affects $110.4 Million of Debt
Opinion
Moody's Investors Service has assigned a rating of Aa2 to Denton County's $13,290,000
Certificates of Obligation, Series 1999A and $2,060,000 Tax Notes, Series 1999. In
conjunction with the current issue, Moody's has also affirmed the Aa2 rating on the
county's $95 million of outstanding general obligation bonds. The Aa2 rating reflects the
county's sizable and diverse economic base that has a growing labor force and low
unemployment levels. Additionally, the rating considers the tax base and its strong annual
growth that Moody's expects will remain as an offset to the below average debt
amortization. Moody's rating also considers the county's financial operations, which
continue to be maintained in a sound manner with comfortable reserve levels.
The county's economic base is stable and diverse, comprised of a broad array of
commercial and industrial businesses. The presence of the University of North Texas and
Texas Women's University, two of the county's largest employers, adds stability to the
county's economy. Resident wealth and income levels remain above average, while
county unemployment (2.0% in September 1999) is half the state and national levels.
The county's favorable location just north of the Dallas/Fort Worth area has contributed to
substantial valuation and population gains. The county recorded an increase of $2.7
billion in taxable value over fiscal 1999 yielding an increase of 16.6% for the year.
FY98 Undesignated General Fund balance: $10.0 million (22.8% of General Fund
revenues)
® Copyright 1999 by Moody's Investors Service, 99 Church Street, New York, NY 10007. All rights reserved.
ALL INFORMATION CONTAINED HEREIN IS COPYRIGHTED IN THE NAME OF MOODY'S INVESTORS SERVICE,
INC. ( "MOODY'S "), AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED,
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CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and
reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is
provided "as is" without warranty of any kind and MOODY'S, in particular, makes no representation or warranty, express
or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such
information. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage
in whole or in part caused by, resulting from, or relating lo, any error (negligent or otherwise) or other circumstance or
contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection
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Securities Act of 1933. MOODY'S hereby discloses that most issuers of debt securities (including corporate and
municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MOODY'S have, prior to
assignment of any rating, agreed to pay to MOODY'S for appraisal and rating services rendered by it fees ranging from
$1,000 to $1,500,000.
MADE IN U.S.A
Average annual growth in assessed valuation of property over the past five tax years
(1995 -2000) is 12.3 %, and full value stands at a substantial $19.2 billion in 2000. The
county's 400,195 population has increased by over 45% since 1990 and the county
continues to mark significant new housing starts. Strong transportation access benefits
county residents and businesses, and facilitates economic expansion. The county is well
served by highway, air, and rail. Interstate 35 East and West serves much of the county
while D -FW airport is five miles to the south of the county along with industrial airport
Alliance, which is served by an extensive intermodal rail complex located partially within
the county's southern border.
The county maintains consistently strong financial operations and ample fund balance
levels, given its primary revenue source of property taxes (70.4% of operating revenues
in 1998). Fiscal year 1999 resulted in a decline of General Fund balances by $1.5 million
to approximately $8.5 million, however this provides approximately 20% of General Fund
revenues. The decline in fund balance is directly a result of litigation costs incurred in a
border dispute with a neighboring county. Property taxes are the major source of revenue
for the county, accounting for approximately two- thirds of total operating revenues, and
tax rates are far below state limits for operations and debt service. Property tax
collections on a current basis are strong, with an average annual collection rate of 98.7%
over the past three years. Operational expenditures (General Fund and Debt Service) are
budgeted to increase 7.5 million in fiscal year 2000, largely due to increased personnel
and debt service costs. The county has budgeted a $4.5 million draw -down for fiscal
2000, however officials project using very little of this appropriated fund balance.
The proceeds of the certificates will be utilized for public safety while the tax notes will
provide funds for the acquisition of disposable capital assets. At this time county officials
do not anticipate the issuance of additional debt until fiscal 2001 when approximately $25
million of the county's Better Safer Roads bond program will be needed. Debt burden at
4.7% has grown somewhat due to outstanding debt of related entities that continue to
experience growth. The county's direct debt is modest at 0.6 %. Total bonded principal
retirement will be 42% in ten years with a final maturity of all debt in fiscal 2026.
The county has completed testing its systems for Year 2000 compliance. Officials do not
anticipate problems with its mission critical systems.
Outlook
The outlook on the county's general obligation tax supported debt is stable based on
Moody's expectation that healthy growth in taxable values and the county's economy will
continue. In addition, Moody's expects future debt requirements will remain manageable
given the expectation of ongoing assessed value growth and that debt structure will
remain consistent with this rating category. Finally, financial operations are expected to
remain well managed, providing financial flexibility to this growing county.
KEY STATISTICS:
2000 estimated population: 400,195
Collin County Unemployment 9/99: 2.0%
2000 full valuation: $19.2 billion
2000 full value per capita: $47,864
Debt burden: 4.7%
Principal Payout - 10 years: 42.8%
7 '
Standard & Poor's V
A Division nlTheMeGr -Hil2Cumpmies
Published by Standard & Poor's. a Division of The McGraw Hill Companies. Inc. Executive offices: 1221 Avenue of the Americas. New York. N.Y. 10020 Edrtowl otllcet 55 Water Sheet.
New York. N.Y. 10041. Subscriber services: 12121438.2280. Copyright 1999 by The McGraw-Hill Companies, Inc. Reproduction in whole or m part prodb,led except by permission.
4-11f
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Denton County, Texas
CREDIT PROFILE
NEW RATING
$13.29 mil certs of oblig set 1999 due July 1S, 2020 AA
November 29,1999
$2.06 mil tax nts set 1999 due Dec 15, 2006 AA
AFFIRMED
Analysts:
$30.56 mil GO bnds AA
,ndy Wippernian, Dallas
OUTLOOK: STABLE
.4- 871 -1421
RATIONALE
Malachy Fallon, Dallas
The rating on Denton County, Texas' debt is based upon a limited ad valorem tax obligation of
214- 871 -1402
Denton County and reflects:
• A diversified economy and rapidly expanding tax base,
• Above- average income levels despite a large student population,
. Historically strong financial performance and position, and
. Moderate debt levels with limited future capital nerds.
The obligations and notes are payable from a maximum $0.80 per $100 assessed value tax
levy.
Denton County (population 400,915) is located in the northern part of the Dallas -Fort Worth
MSA, and has experienced rapid growth as the metroplex has expanded northward. Colleges and
institutions located in the county seat of Denton have been a stabilizing force for a diversifying
economy as the road network has expanded to open the southern portion of the county for new
development. Leading employers include the University of North Texas, Texas Women's
University, Peterbilt Motors Co., Boeing Electronics, two hospitals, and government agencies.
Property values have increased $6.9 billion over the past five years to a level of $19.2 billion for
fiscal 2000, increasing at an average annual rate of 14 %, largely driven by residential
development. Median household incomes exceed the state and the national averages by 30% and
23 %, respectively.
Financial management has been historically strong as evidenced by general fund balances
ranging from 32% to 16% of expenditures since fiscal year 1994. Audited results for fiscal year
1998 reflect an ending unreserved general fund balance of $10 million, or 23% of expenditures.
Fiscal 1999 unaudited results reflect a $1.9 million drawdown of the general fund balance to $8.1
million, or 16% of expenditures, primarily due to higher- than - budgeted legal fees and lower
interest rate earnings. The fiscal 2000 budget appropriates $4.7 million in general fund reserves;
however, county management anticipates closing fiscal 2000 maintaining the current level of
general fund balance. The continued growth in the tax base has enabled the city to adopt its sixth
consecutive property tax rate cut in the fiscal year 2000 budget while maintaining healthy reserve
levels.
Standard & Poor's V
A Division nlTheMeGr -Hil2Cumpmies
Published by Standard & Poor's. a Division of The McGraw Hill Companies. Inc. Executive offices: 1221 Avenue of the Americas. New York. N.Y. 10020 Edrtowl otllcet 55 Water Sheet.
New York. N.Y. 10041. Subscriber services: 12121438.2280. Copyright 1999 by The McGraw-Hill Companies, Inc. Reproduction in whole or m part prodb,led except by permission.
Standard & Poor's PUBLIC FINANCE
Overall debt levels are moderate at 52,433 per capita or approximately 5.1% of true value.
These issues will fund Sl 1.5 for a jail expansion and S2 million for renovations to the county
courts building, and are payable from ad valorem taxes, limited to a maximum of 50.30 per 5100
of assessed value. The county adopted a 50.19739 per $100 AV operations and maintenance tax
rate in fiscal 2000, well below the $0.30 state constitutional limit.
Voters authorized S35 million in road improvement bonds in January 1999, of which $65.3
million is outstanding. The county plans to issue these bonds over a period of six years, enabling
it to service the debt without a property tax increase
OUTLOOK
The outlook reflects the expectation that the strong growth in the tax base will be sustained and
that the sound financial position of the county will be maintained.
CREDIT PROFILE . November 29, 1999
WT
STATE OF TEXAS
COUNTY OF DENTON
RECEIVED
FEB 092% 313
RECORDS CENTER
CITY OF COPPELL
INTERLOCAL COOPERATION AGREEMENT
�- THIS INTERLOCAL COOPERATION AGREEMENT is made and entered into as of the
day of 2000, by and between the City of Coppell ( "City "), acting by and
through its ity�il, ayd Denton County, Texas (the "County„).
WITNESSETH:
WHEREAS, the County and the City desire to enter into an agreement for the design,
construction and improvement of Section 13 of State Highway 121, CSJ- 364 -2 -17 and 364 -3 -64
(the "Project ").
WHEREAS, the Interlocal Cooperation Act, codified as V.T.C.A., Government Code,
Chapter 791 (the "Act "), provides authorization for any local government to contract with one or
more local governments to perform governmental functions and services under the terms of the
Act; and
WHEREAS, the County has filed an application with the Texas Department of
Transportation to obtain a $10,000,000 loan from the State Infrastructure Bank (the "SIB Loan ")
to fund a portion of the Project, including, particularly the engineering therefore;
WHEREAS, the City has heretofore expressed its support of the Project and the funding
of a portion of the costs of said Project;
WHEREAS, to enable the County to perform certain functions related to the Project, the
City has heretofore agreed to pay to the County a total amount of $ 2,000,000 payable in five
equal annual installments of $ 400,000 each as hereinafter provided;
WHEREAS, the parties hereto agree that if the SIB Loan is not made or the conditions
provided herein have not been met on or before October 1, 2000, the City reserves the right to
withdraw its commitment under this Agreement;
WHEREAS, the City and the County have both found and determined and do hereby
find and determine that the Project is in the best interests of the citizens of both the City and the
County;
NOW, THEREFORE, in consideration of the premises and covenants herein contained,
the City and the County agree as follows:
INTERLOCAL COOPERATION AGREEMENT BETWEEN
DENTON COUNTY AND CITY OF COPPELL -PAGE 1 30752
S
0
I.
The provisions of this Agreement contained in the preambles set forth above are hereby
incorporated by reference as if fully set forth in the body of this Agreement and shall become and
are hereby made a part of this Agreement for all purposes.
II.
The City hereby agrees to pay, when the Project reaches priority 2, the County the sum of
Two Million Dollars ($2,000,000.00) (the "City Commitment ") payable in annual installments of
Four Hundred Thousand Dollars ($400,000.00) on or before October 1 of the year priority 2 is
reached and each October 1 thereafter until fully paid. The County agrees to provide and
perform governmental functions and services as permitted by the Act in connection with the
Project. In addition, the City reserves the right to withdraw and cancel the City Commitment in
the event the County has not received the SIB Loan proceeds by or before October 1, 2000. NO
interest shall be charged to the City in connection with the installment payments of the City
Commitment. The City hereby reserves the right to prepay the City Commitment at any time
during the term of this Agreement, without penalty. In the event the Project does not achieve
priority one status by TXDOT by October 1, 2002, the City shall be refunded any payments made
under the terms of this Agreement.
III.
The City Commitment shall be paid only from current revenues of the City as those
revenues exist from time to time.
IV.
This Agreement shall be for a term of six (6) years or until the City Commitment is paid
in full, whichever is less.
V.
This Agreement may not be amended or modified without the prior written consent of
both the City and the County.
VI.
If any clause, provision or section of this Agreement is ruled invalid or unenforceable by
a court of competent jurisdiction, the invalidity or unenforceability thereof shall not affect any of
the remaining clauses, provisions or sections hereof.
INTERLOCAL COOPERATION AGREEMENT BETWEEN
DENTON COUNTY AND CITY OF COPPELL -PAGE 2 30752
VII.
This Agreement may be executed in several counterparts, each of which shall be an
original and all of which shall constitute but one and the same documents.
VIII.
This Agreement shall be governed in all respects by the laws of the State of Texas.
IN WITNESS WHEREOF, the City and the County have caused this Agreement to be
executed by their duly authorized representatives pursuant to fordinance or resolution 1 number _
of the City and Commissioners Court Order No. Gam- Gtp 3 .
DENTON COUNTY, TEXAS
CITY OF COPPELL, TEXAS
'_'p5t' / , j /"'k r, (
Y G
Kirk Wilson, Denton County Judge : `aryiss, Candy Shy
r^ 3
ATTEST: �Gt ST:
By:
Deputy, County Clerk Libby B
APPROVED AS TO FORM:
:..
By:�L�yl��'�Gti{ L�(%Ga / 1 �Fu4 By:
Assistant District Attorney
, iviayor
City Secretary
INTERLOCAL COOPERATION AGREEMENT BETWEEN
DENTON COUNTY AND CITY OF COPPELL -PAGE 3 30752