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memorandum Item No. 9 TO: City Council Rose Beverly, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Forestbrook Public Improvement District No. 1 Service and Assessment Plan DATE: July 14, 2025 BACKGROUND: On October 14, 2024, City Council passed and approved a resolution creating Forestbrook Public Improvement District No. 1 (the PID) which comprises some 59.62 acres of land at the Forestbrook housing development site in southeast Paris. The purpose of the PID is to allow the issuance of PID bonds to provide funding to the developer, Lone Star Planned Developments, LLC, for the construction of Authorized Improvements consisting primarily of infrastructure related to the project. At that same meeting, City Council approved a Development Agreement with the developer. Earlier this year, the developer requested that the City issue an initial PID bond which will be for less than $2,000,000.00. While according to the Development Agreement, total bonds shall not exceed $20,000,000.00, the total of all bond issues for the PID is expected to be less than $8,000,000.00. Pursuant to the Texas Public Improvement District Act (the Act, located in Chapter 327 of the Texas Local Government Code), the bonds are to be paid from Assessments on each parcel in the housing development, and the City has no liability with respect to repayment thereof. The PID is a reimbursement PID which requires the developer to advance costs for the authorized improvements for reimbursement from the PID bond fund. Accordingly, the developer and the City's PID team, including staff, bond counsel, financial consultants, and PID consultants, negotiated the "Reimbursement Agreement—Forestbrook Public Improvement District No. 1" (the Reimbursement Agreement) that Council approved on April 28, 2025. The Reimbursement Agreement satisfies the requirements of Section 372.023 of the Act. At the last meeting on June 23, 2025, Council to passed a resolution approving a Preliminary Service And Assessment Plan (the Preliminary SAP) which includes the proposed Assessment Roll (the Proposed Assessment Roll). The PID Act requires that a Service Plan cover a period of at least five years; define the annual indebtedness and projected cost of the Authorized Improvements; and include a copy of the notice form required by law. Since the execution by all parties of the Reimbursement Agreement, the developer has detennined for various reasons to