City Council Meeting Agenda January 19, 2021

TUESDAY, JANUARY 19, 2021
CITY COUNCIL MEETING

CITY COUNCIL CHAMBER
5:30 P.M.
I. ATTENTION:
A. City of Sugar Land will limit meetings to City of Sugar Land Staff and Essential
Personnel in order to limit the spread of COVID-19, as recommended by the Centers for
Disease Control and Prevention. Members of the City Council, Board and/or Commission
may participate in deliberations of posted agenda items through
telephonic/videoconferencing means. Audio/Video of open deliberations will be available
for the public to hear/view, and recorded as per the Texas Open Meetings Act.
The meeting will live stream at https://www.sugarlandtx.gov/1238/SLTV-16-Live-

Video or https://www.youtube.com/user/SugarLandTXgov/live. Sugar Land Comcast
Cable Subscribers can also tune-in on Channel 16.
Members of the public desiring to submit written comments to be read during the Public
Comment and/or Public Hearing portions of the meeting, will be allowed to submit their
comments to the Office of City Secretary (citysec@sugarlandtx.gov). Written/e-mailed
comments must be received by 3:00 p.m., Tuesday, January 19, 2021. The City of Sugar
Land reserves the right to remove any written/e-mailed comments deemed inappropriate
and/or not adhering to the public comment rules outlined in this notice. The City reserves
the right to not read any comments containing -
Links to for-profit sites

Advertising
Promotion of illegal activities
Sexual oriented/explicit comments and sites
Information promoting discrimination/harassment
Political/religious rhetoric, advocacy, or commentary
Members of the public desiring to participate during the set/posted time of the Public
Comment and/or Public Hearing must e-mail (citysec@sugarlandtx.gov) or call ((281)
275-2730) the Office of the City Secretary by 3:00 p.m., Tuesday, January 19, 2021. Once
properly registered, the Office of the City Secretary will provide instructions for direct
participation during the Public Comment and/or Public Hearing.
For questions or assistance, please contact the Office of the City Secretary (281) 275-
2730.
Tuesday, January 19 2021, City Council Meeting Page 1 of 164

INVOCATION
Council Member Naushad Kermally
PLEDGE OF ALLEGIANCE TO THE FLAG
Council Member Naushad Kermally
II. PUBLIC COMMENT
A. Citizens who desire to address the City Council, Board and/or Commission with regard to
matters on the agenda will be read and/or received at this time. Members of the public
desiring to make comments during this portion of the meeting will be allowed to submit their
comments (as outlined above) to the Office of the City Secretary
(citysec@sugarlandtx.gov). Written/e-mailed comments and/or requests to participate during
this portion of the meeting must be received by 3:00 p.m. on, Tuesday, January 19, 2021.
The City of Sugar Land reserves the right to remove any written/e-mailed comments deemed
inappropriate (as outlined above) and/or not related to matters posted on the agenda.
Comments or discussion by the City Council, Board, and/or Commission Members, will
only be made at the time the subject is scheduled for consideration.
III. REVIEW OF CONSENT AGENDA
IV. CONSENT AGENDA
All Consent Agenda items listed are considered to be routine by the City Council and will be enacted by one
motion. There will be no separate discussion of these items unless a Council Member requests, in which event the
item will be removed from the Consent Agenda and considered in its normal sequence on the agenda.
A. Consideration of and action on CITY OF SUGAR LAND RESOLUTION NO. 20-
32: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND,
TEXAS, APPROVING AN ADVANCE FUNDING AGREEMENT WITH THE
STATE OF TEXAS, ACTING THROUGH THE TEXAS DEPARTMENT OF
TRANSPORTATION, FOR THE REBUILD OF THE US 90A AND CIRCLE DRIVE
INTERSECTION; MAKING THIS RESOLUTION A PART OF THE AGREEMENT;
AND REPEALING RESOLUTION NO. 20-19.
Keisha Seals, Engineering Manager
B. Consideration of and action on CITY OF SUGAR LAND RESOLUTION NO. 21-01:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND,
TEXAS, AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION TO
THE STATE OF TEXAS FOR FISCAL YEAR 2021 EMERGENCY MANAGEMENT
PERFORMANCE GRANT (EMPG) AND APPOINTING THE CITY MANAGER,
OR DESIGNEE, AS AUTHORIZED GRANT OFFICIAL TO APPLY FOR, ACCEPT,
OR DECLINE THE GRANT AND TO EXECUTE ALL GRANT DOCUMENTS.
Gabe Lavine, Emergency Management Coordinator
C. Consideration of and action on Tax Increment Reinvestment Zone Number One Fiscal Year
2020 Annual Report.
Cam Yearty, Public Private Partnerships Manager
D. Consideration of and action on Tax Increment Reinvestment Zone Number Three Fiscal
Year 2020 Annual Report.

E. Consideration of and action on Tax Increment Reinvestment Zone Number Four Fiscal Year
2020 Annual Report.
F. Consideration of and action on the minutes of the January 5, 2021 meeting.
Thomas Harris III, City Secretary
V. BUDGET
A. FIRST AND FINAL CONSIDERATION : Consideration of and action on CITY OF
SUGAR LAND ORDINANCE NO. 2220: AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, AMENDING THE FISCAL
YEAR 2020-2021 BUDGET FOR THE CITY OF SUGAR LAND, TEXAS, TO
PROVIDE THAT THE REVISED BUDGET ADDRESS FUNDS RELATING TO
CERTAIN CAPITAL AND OPERATING BUDGET MATTERS AND THAT THIS
AMENDMENT BE ADOPTED AS THE BUDGETED AMOUNT FOR THOSE
FUNDS.
Jennifer Brown, Director of Finance
VI. CONTRACTS AND AGREEMENTS
A. Consideration of and action on authorization of Amendment No. 1 to the Coronavirus Aid,
Relief, and Economic Security (CARES) Act Funding Allocation Distribution Agreement
by and between the City of Sugar Land, Texas, and Fort Bend County, Texas; and
authorization of a Fiscal Year 2021 General Fund budget amendment in the amount of
$2,000,000 in revenues and expenditures.
Elizabeth Huff, Director of Economic Development
VII. ORDINANCES AND RESOLUTIONS
A. FIRST CONSIDERATION: Consideration of and action on CITY OF SUGAR
LAND ORDINANCE NO. 2221: AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SUGAR LAND, TEXAS, ESTABLISHING A BUSINESS SUPPORT
PROGRAM, AUTHORIZING THE CITY MANAGER TO APPROVE CONTRACTS
AND AGREEMENTS IN CONNECTION WITH THE PROGRAM WITHOUT
SPECIFIC APPROVAL OF THE CITY COUNCIL IF THE INDIVIDUAL
CONTRACT OR AGREEMENT DOES NOT EXCEED $250,000 AND THE
COMBINED TOTAL OF THE CONTRACTS AND AGREEMENTS APPROVED IN
CONJUNCTION WITH THE PROGRAM DOES NOT EXCEED $2,000,000; AND
SETTING FORTH OTHER PROVISIONS RELATED THERETO.
VIII.MUNICIPAL UTILITY DISTRICT BONDS
A. Consideration of and action on authorizing issuance of Fort Bend County Municipal Utility
District No. 136 Unlimited Tax Bonds Series 2021 in the amount of $2,330,000.
IX. CITY COUNCIL CITY MANAGER REPORTS
A. City Council Member Reports
Community Events Attended or Scheduled
B. City Manager Report
Other Governmental Meetings Attended or Scheduled

Council Meeting Schedule
X. CLOSED EXECUTIVE SESSION
A. Closed Executive Session as authorized by Chapter 551, Texas Government Code, in
accordance with:
Section 551.074 Personnel Matters:
For the purpose of discussion with respect to the City Manager quarterly performance
report.
Joe Zimmerman, Mayor
THE MAYOR AND CITY COUNCIL RESERVE THE RIGHT, UPON MOTION, TO
SUSPEND THE RULES TO CONSIDER BUSINESS OUT OF THE POSTED ORDER. IN
ADDITION TO ANY EXECUTIVE SESSION LISTED ABOVE, THE CITY COUNCIL
RESERVES THE RIGHT TO ADJOURN INTO EXECUTIVE SESSION AT ANY TIME
DURING THIS MEETING FOR THE PURPOSE OF CONSULTATION WITH THE
ATTORNEY AS AUTHORIZED BY TEXAS GOVERNMENT CODE SECTIONS 551.071
TO DISCUSS ANY OF THE MATTERS LISTED ABOVE.
IF YOU PLAN TO ATTEND THIS PUBLIC MEETING AND YOU HAVE A DISABILITY
THAT REQUIRES SPECIAL ARRANGEMENTS AT THE MEETING, PLEASE
CONTACT THE CITY SECRETARY, (281) 275-2730. REQUESTS FOR SPECIAL
SERVICES MUST BE RECEIVED FORTY-EIGHT (48) HOURS PRIOR TO THE
MEETING TIME. REASONABLE ACCOMMODATIONS WILL BE MADE TO ASSIST
YOUR NEEDS.
THE AGENDA AND SUPPORTING DOCUMENTATION IS LOCATED ON THE CITY
WEBSITE (WWW.SUGARLANDTX.GOV) UNDER MEETING AGENDAS.
Posted on this 15th of January, 2021 at 5:36 P.M.

City Council Agenda Request
JANUARY 19, 2021
AGENDA REQUEST NO:
AGENDA OF: City Council Meeting
INITIATED BY:
PRESENTED BY:
RESPONSIBLE DEPARTMENT: City Secretary
AGENDA CAPTION:
CITY COUNCIL MEETING
BUDGET
EXPENDITURE REQUIRED:
CURRENT BUDGET:
ADDITIONAL FUNDING:
FUNDING SOURCE:

JANUARY 19, 2021
AGENDA REQUEST NO:
INITIATED BY:
PRESENTED BY:
AGENDA CAPTION:
CITY COUNCIL CHAMBER
5:30 P.M.
BUDGET
CURRENT BUDGET:
ADDITIONAL FUNDING:
FUNDING SOURCE:

JANUARY 19, 2021
AGENDA REQUEST NO: IV.A.
INITIATED BY: Keisha E. Seals, Engineering Manager
PRESENTED BY: Keisha Seals, Engineering Manager
RESPONSIBLE DEPARTMENT: Engineering
AGENDA CAPTION:
Consideration of and action on CITY OF SUGAR LAND RESOLUTION NO. 20-
32: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND,
TEXAS, APPROVING AN ADVANCE FUNDING AGREEMENT WITH THE STATE
OF TEXAS, ACTING THROUGH THE TEXAS DEPARTMENT OF
TRANSPORTATION, FOR THE REBUILD OF THE US 90A AND CIRCLE DRIVE
INTERSECTION; MAKING THIS RESOLUTION A PART OF THE AGREEMENT;
AND REPEALING RESOLUTION NO. 20-19.
RECOMMENDED ACTION:
Repeal Resolution No. 20-19 and approve Resolution No. 20-32 for the Advanced Funding
Agreement with the Texas Department of Transportation for the rebuild of the US90A and
Circle Drive (Owens Road) intersection, CIP No. CMU1707.
EXECUTIVE SUMMARY:
In 2007, the City of Sugar Land began the purchase of the Central Unit Prison, working with
the State on the prison's closure. In 2011, the Texas legislature closed the prison, and in
September 2016, the City acquired approximately 258 acres from the State of Texas, known
as the former Central Unit prison site. The site is located north of US90A and is currently
accessed through Circle Drive (see exhibit below). There have been several aspects of the
development that have moved forward and/or have been completed including: demolition,

construction of an interim gun range, a drainage study, Tract 2 development discussions, and
the proposed Owens Road.
To enhance traffic flow and circulation within the proposed development, the City is pursuing
the design and construction of Owens Road, located west of Circle Drive. A Preliminary
Engineering Report (PER) is underway to determine the proposed alignment across the site.
In addition, the Owens Road project encompasses the Union Pacific Railroad (UPRR) and
the Texas Department of Transportation (TxDOT) at US90A. Staff is moving forward with
the design of the intersection due to the long lead-time to obtain permits from both agencies.
The improvements of the intersection at US90A will require approval from TxDOT through
an Advanced Funding Agreement (AFA). Per TxDOT requirements, the AFA must be
approved and entered into by resolution from the Local Government. On November 17,
2020, City Council approved Resolution No. 20-19 for the Advanced Funding Agreement
(AFA) with TxDOT. Staff forwarded the approved resolution to TxDOT Contract Services
Division.
Unfortunately, staff was informed by the TxDOT Contract Services Division that Resolution
No. 20-19 could not be accepted because the resolution referenced an estimated Local
Participation Cost. TxDOT requires that there be no dollar amount indicated in the resolution
for the purpose of, if there are additional funds needed from the Local Government, then the
Local Government would have to obtain another Resolution approving the funds.
Due to TxDOT rejection of Resolution No. 20-19, staff is requesting that City Council
repeals Resolution No. 20-19 and approve the new Resolution No. 20-32, which has been
revised to remove the estimated dollar amount from the document. The remaining AFA will
remain the same, and the final amount of Local Government participation will be based on
actual costs.
BUDGET
EXPENDITURE REQUIRED: N/A
CURRENT BUDGET: N/A
ADDITIONAL FUNDING: N/A
FUNDING SOURCE:N/A
ATTACHMENTS:

Description Type
Old Resolution No.20-19 for Repeal Resolutions
New Resolution No.20-32 for Approval Resolutions
TxDOT Advanced Funding Agreement Agreement

RESOLUTION NO. 20-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS,

APPROVING AN ADVANCE FUNDING AGREEMENT WITH THE STATE OF TEXAS,
ACTING THOUGH THE TEXAS DEPARTMENT OF TRANSPORTATION, FOR THE
REBUILD OF THE US 90A AND CIRCLE DRIVE INTERSECTION; PROVIDING FOR
A FUNDING LIMIT; AND MAKING THIS RESOLUTION A PART OF THE
AGREEMENT.
WHEREAS, the City has agreed to provide funding for the project described in the attached
Advance Funding Agreement between the City and the State of Texas for the rebuild of the US
90A and Circle Drive intersection; and
WHEREAS, the City will fund 100% of the design and construction costs, estimated at
$2,119,028.00; and
WHEREAS, the City Council is willing to fund the project costs up to the maximum
contained in this Resolution; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL

OF THE CITY OF SUGAR LAND, TEXAS:
Section 1. That it approves the attached Advance Funding Agreement for the rebuild of
the US 90A and Circle Drive intersection.
Section 2. That the City’s maximum contribution will not exceed $2,119,028.00 without
the City’s prior written approval.
Section 3. That this Resolution is incorporated into and made a part of the Agreement by
attaching it to the Agreement as Attachment A.
APPROVED on _______________________________, 2020.
_________________________
Joe R. Zimmerman, Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________
Thomas Harris, III, City Secretary
Exhibits:
Attachment A: Advance Funding Agreement


APPROVING AN ADVANCE FUNDING AGREEMENT WITH THE STATE OF TEXAS,
ACTING THROUGH THE TEXAS DEPARTMENT OF TRANSPORTATION, FOR
THE REBUILD OF THE US 90A AND CIRCLE DRIVE INTERSECTION; MAKING
THIS RESOLUTION A PART OF THE AGREEMENT; AND REPEALING
RESOLUTION NO. 20-19.
WHEREAS, the City has agreed to provide funding for the project described in the attached
Advance Funding Agreement between the City and the State of Texas for the rebuild of the US
90A and Circle Drive intersection; and
WHEREAS, the City will fund 100% of the design and construction costs; and
WHEREAS, the City Council is willing to fund the project costs; NOW, THEREFORE,

Section 1. That it approves the attached Advance Funding Agreement for the rebuild of
the US 90A and Circle Drive intersection.
Section 2. That this Resolution is incorporated into and made a part of the Agreement by
attaching it to the Agreement as Attachment A.
Section 3. That Resolution No. 20-19 is repealed.
APPROVED on _______________________________, 2021.
_________________________
_____________________________
Exhibits:
Attachment A: Advance Funding Agreement

CSJ # 0027-08-184
District # 12 - Houston
Code Chart 64 # 41150
Project Name US 90A & Circle Dr Intersection
STATE OF TEXAS §
COUNTY OF TRAVIS §
ADVANCE FUNDING AGREEMENT

For
A LOCALLY FUNDED PROJECT
On-System
THIS AGREEMENT (Agreement) is made by and between the State of Texas, acting by and through
the Texas Department of Transportation called the “State”, and the City of Sugar Land, acting by
and through its duly authorized officials, called the “Local Government”. The State and Local
Government shall be collectively referred to as “the parties” hereinafter.
WITNESSETH
WHEREAS, the Texas Transportation Code, Section 201.103 establishes that the State shall design,
construct and operate a system of highways in cooperation with local governments, and Section
222.052 authorizes the Texas Transportation Commission to accept contributions from political
subdivisions for development and construction of public roads and the state highway system within
the political subdivision, and
WHEREAS, federal and state laws require local governments to meet certain contract standards
relating to the management and administration of State and federal funds, and
WHEREAS, the Texas Transportation Commission has codified 43 TAC, Rules 15.50-15.56 that
describe federal, state, and local responsibilities for cost participation in highway improvement and
other transportation projects, and
WHEREAS, the State and Local Government do not anticipate that federal funds will be used for the
Project governed by this Agreement; and
WHEREAS, the Texas Transportation Commission passed Minute Order Number 115814 authorizing
the State to undertake and complete a highway improvement or other transportation project generally
described as the rebuild of the US 90A & Circle Dr intersection. The portion of the project work
covered by this Agreement is identified in the Agreement, Article 3, Scope of Work (Project), and
WHEREAS, the Governing Body of the Local Government has approved entering into this Agreement
by resolution, ordinance, or commissioners court order dated ______________________, which is
attached to and made a part of this Agreement as Attachment A, Resolution, Ordinance, or
Commissioners Court Order. A map showing the Project location appears in Attachment B, Location
Map Showing Project, (Attachment B) which is attached to and made a part of this Agreement.
Page 1 of 12
AFA NonFed LongGen Rev. 07/17/2019
CSJ # 0027-08-184
NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
of the parties, to be by them respectively kept and performed as set forth in this Agreement, it is
agreed as follows
AGREEMENT
1. Responsible Parties:
For the Project covered by this Agreement, the parties shall be responsible for the following
work as stated in the article of the Agreement referenced in the table below:
1. Local Government Utilities Article 8

2. Local Government Environmental Assessment and Mitigation Article 9
3. Local Government Architectural and Engineering Services Article 12
4. Local Government Construction Responsibilities Article 13
5. Local Government Right of Way and Real Property Article 15
2. Period of the Agreement

This Agreement becomes effective when signed by the last party whose signing makes the
Agreement fully executed. This Agreement shall remain in effect until the Project is completed
or unless terminated as provided below.
3. Scope of Work
The scope of work for this Project consists of the design and construction for the intersection
improvements to the US 90A & Circle Dr intersection.
4. Project Sources and Uses of Funds

The total estimated cost of the Project is shown in Attachment C, Project Budget, (Attachment
C) which is attached to and made a part of this Agreement.
A. If the Local Government will perform any work under this Agreement for which
reimbursement will be provided by or through the State, the Local Government must
complete training. Training is complete when at least one individual who is working
actively and directly on the Project successfully completes and receives a certificate for
the course entitled “Local Government Project Procedures and Qualification for the
Texas Department of Transportation” and retains qualification in accordance with
applicable TxDOT procedures. Upon request, the Local Government shall provide the
certificate of qualification to the State. The individual who receives the training
certificate may be an employee of the Local Government or an employee of a firm that
has been contracted by the Local Government to perform oversight of the Project. The
State in its discretion may deny reimbursement if the Local Government has not
continuously designated in writing a qualified individual to work actively on or to directly
oversee the Project.
B. The expected cash contributions from the State, the Local Government, or other
parties are shown in Attachment C. The State will pay for only those Project costs that
have been approved by the Texas Transportation Commission.
C. Attachment C shows, by major cost categories, the cost estimates and the party
responsible for performing the work for each category. These categories may include
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CSJ # 0027-08-184
but are not limited to: (1) costs of real property; (2) costs of utility work; (3) costs of
environmental assessment and remediation; (4) cost of preliminary engineering and
design; (5) cost of construction and construction management; and (6) any other local
project costs.
D. The State will be responsible for securing the State share of the funding required for
the development and construction of the local Project. If the Local Government is due
funds for expenses incurred, these funds will be reimbursed to the Local Government
on a cost basis.
E. The Local Government will be responsible for all non-State participation costs
associated with the Project, unless otherwise provided for in this Agreement or
approved otherwise in an amendment to this Agreement. For items of work subject to
specified percentage funding, the Local Government shall only in those instances be
responsible for all Project costs that are greater than the maximum State participation
specified in Attachment C and for overruns in excess of the amount specified in
Attachment C to be paid by the Local Government.
F. The budget in Attachment C will clearly state all items subject to fixed price funding,
specified percentage funding or the periodic payment schedule, when periodic
payments have been approved by the State.
G. When the Local Government bears the responsibility for paying cost overruns, the
Local Government shall make payment to the State within thirty (30) days from the
receipt of the State’s written notification of additional funds being due.
H. When fixed price funding is used, the Local Government is responsible for the fixed
price amount specified in Attachment C. Fixed prices are not subject to adjustment
unless (1) differing site conditions are encountered; (2) further definition of the Local
Government’s requested scope of work identifies greatly differing costs from those
estimated; (3) work requested by the Local Government is determined to be ineligible
for federal participation; or (4) the adjustment is mutually agreed to by the State and
the Local Government.
I. Prior to the performance of any engineering review work by the State, the Local
Government will pay to the State the amount specified in Attachment C. At a minimum,
this amount shall equal the Local Government’s funding share for the estimated cost of
preliminary engineering performed or reviewed by the State for the Project. At least
sixty (60) days prior to the date set for receipt of the construction bids, the Local
Government shall remit its remaining financial share for the State’s estimated
construction oversight and construction cost.
J. The State will not execute the contract for the construction of the Project until the
required funding has been made available by the Local Government in accordance
with this Agreement.
K. Whenever funds are paid by the Local Government to the State under this Agreement,
the Local Government shall remit a check or warrant made payable to the “Texas
Department of Transportation” or may use the State’s Automated Clearing House
(ACH) system for electronic transfer of funds in accordance with instructions provided
by TxDOT’s Finance Division. The funds shall be deposited and managed by the State
and may only be applied by the State to the Project.
L. The State will not pay interest on any funds provided by the Local Government.
M. If a waiver for the collection of indirect costs for a service project has been granted
under 43 TAC §15.56, the State will not charge the Local Government for the indirect
Page 3 of 12
CSJ # 0027-08-184
costs the State incurs on the local Project, unless this Agreement is terminated at the
request of the Local Government prior to completion of the Project.
N. If the Local Government is an Economically Disadvantaged County (EDC) and if the
State has approved adjustments to the standard financing arrangement, this
Agreement reflects those adjustments.
O. Where the Local Government is authorized to perform services under this Agreement
and be reimbursed by the State, the Local Government is authorized to submit
requests for reimbursement by submitting the original of an itemized invoice, in a form
and containing all items required by the State, no more frequently than monthly and no
later than ninety (90) days after costs are incurred. If the Local Government submits
invoices more than ninety (90) days after the costs are incurred the State may refuse to
reimburse the Local Government for those costs.
P. Upon completion of the Project, the State will perform a final accounting of the Project
costs for all items of work with specified percentage funding. Any funds due by the
Local Government or the State for these work items will be promptly paid by the owing
party.
Q. The state auditor may conduct an audit or investigation of any entity receiving funds
from the State directly under this Agreement or indirectly through a subcontract under
this Agreement. Acceptance of funds directly under this Agreement or indirectly
through a subcontract under this Agreement acts as acceptance of the authority of the
state auditor, under the direction of the legislative audit committee, to conduct an audit
or investigation in connection with those funds. An entity that is the subject of an audit
or investigation must provide the state auditor with access to any information the state
auditor considers relevant to the investigation or audit.
R. Payment under this Agreement beyond the end of the current fiscal biennium is subject
to availability of appropriated funds. If funds are not appropriated, this Agreement shall
be terminated immediately with no liability to either party.
5. Termination of this Agreement

This Agreement shall remain in effect until the Project is completed and accepted by all
parties, unless:
A. The Agreement is terminated in writing with the mutual consent of the parties;
B. The Agreement is terminated by one party because of a breach, in which case any cost
incurred because of the breach shall be paid by the breaching party;
C. The Local Government elects not to provide funding after the completion of preliminary
engineering, specifications, and estimates (PS&E) and the Project does not proceed
because of insufficient funds, in which case the Local Government agrees to reimburse
the State for its reasonable actual costs incurred during the Project; or
D. The Agreement is terminated by the State because the parties are not able to execute
a mutually agreeable amendment when the costs for Local Government requested
items increase significantly due to differing site conditions, determination that Local
government requested work is ineligible for federal or state cost participation, or more
thorough definition of the Local Government’s proposed work scope identifies greatly
differing costs from those estimated. The State will reimburse Local Government
remaining funds to the Local Government within ninety (90) days of termination; or
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CSJ # 0027-08-184
E. The Project is inactive for thirty-six (36) months or longer and no expenditures have
been charged against state funds, in which case the State may in its discretion
terminate this Agreement.
6. Amendments
Amendments to this Agreement due to changes in the character of the work, terms of the
Agreement, or responsibilities of the parties relating to the Project may be enacted through a
mutually agreed upon, written amendment.
7. Remedies
This Agreement shall not be considered as specifying the exclusive remedy for any Agreement
default, but all remedies existing at law and in equity may be availed of by either party to this
Agreement and shall be cumulative.
8. Utilities
The party named in article 1, Responsible Parties, under AGREEMENT shall be responsible
for the adjustment, removal, or relocation of utility facilities in accordance with applicable state
laws, regulations, rules, policies, and procedures, including any cost to the State of a delay
resulting from the Local Government’s failure to ensure that utility facilities are adjusted,
removed, or relocated before the scheduled beginning of construction. The Local Government
will not be reimbursed with State funds for the cost of required utility work. The Local
Government must obtain advance approval for any variance from established procedures.
Before a construction contract is let, the Local Government shall provide, at the State’s
request, a certification stating that the Local Government has completed the adjustment of all
utilities that must be adjusted before construction is commenced.
9. Environmental Assessment and Mitigation

Development of a transportation project must comply with applicable environmental laws. The
party named in article 1, Responsible Parties, under AGREEMENT is responsible for the
following:
A. The identification and assessment of any environmental problems associated with the
development of a local project governed by this Agreement.
B. The cost of any environmental problem’s mitigation and remediation.
C. Providing any public meetings or public hearings required for the environmental
assessment process. Public hearings will not be held prior to the approval of Project
schematic.
D. The preparation of the NEPA documents required for the environmental clearance of
this Project.
If the Local Government is responsible for the environmental assessment and mitigation,
before the advertisement for bids, the Local Government shall provide to the State written
documentation from the appropriate regulatory agency or agencies that all environmental
clearances have been obtained.
10. Compliance with Accessibility Standards

All parties to this Agreement shall ensure that the plans for and the construction of all projects
subject to this Agreement are in compliance with standards issued or approved by the Texas
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CSJ # 0027-08-184
Department of Licensing and Regulation (TDLR) as meeting or consistent with minimum

accessibility requirements of the Americans with Disabilities Act (P.L. 101-336) (ADA).
11. Procurement Standards

For projects being managed by the Local Government and on the State highway system or
that include state funding, the Local Government must obtain approval from the State for its
proposed procurement procedure for the selection of a professional services provider, a
contractor for a construction or maintenance project, or a materials provider.
12. Architectural and Engineering Services

The party named in Article 1, Responsible Parties, under AGREEMENT has responsibility for
the performance of architectural and engineering services. The engineering plans shall be
developed in accordance with the applicable State’s Standard Specifications for Construction
and Maintenance of Highways, Streets and Bridges and the special specifications and special
provisions related to it. For projects on the state highway system, the design shall, at a
minimum conform to applicable State manuals. For projects not on the state highway system,
the design shall, at a minimum, conform to applicable American Association of State Highway
and Transportation Officials (AASHTO) design standards.
In procuring professional services, the parties to this Agreement must comply with Texas
Government Code 2254, Subchapter A. If the Local Government is the responsible party, the
Local Government shall submit its procurement selection process for prior approval by the
State. All professional service contracts must be reviewed and approved by the State prior to
execution by the Local Government.
13. Construction Responsibilities

The party named in Article 1, Responsible Parties, under AGREEMENT is responsible for the
following:
A. Advertise for construction bids, issue bid proposals, receive and tabulate the bids, and
award and administer the contract for construction of the Project. Administration of the
contract includes the responsibility for construction engineering and for issuance of any
change orders, supplemental agreements, amendments, or additional work orders that
may become necessary subsequent to the award of the construction contract. Projects
must be authorized by the State prior to advertising for construction.
B. If the State is the responsible party, the State will use its approved contract letting and
award procedures to let and award the construction contract.
C. If the Local Government is the responsible party, the Local Government shall submit its
contract letting and award procedures to the State for review and approval prior to
letting.
D. If the Local Government is the responsible party, the State must concur with the low
bidder selection before the Local Government can enter into a contract with the vendor.
E. If the Local Government is the responsible party, the State must review and approve
change orders.
F. Upon completion of the Project, the party responsible for constructing the Project will
issue and sign a “Notification of Completion” acknowledging the Project’s construction
completion and submit certification(s) sealed by a professional engineer(s) licensed in
the State of Texas.
Page 6 of 12
CSJ # 0027-08-184
G. Upon completion of the Project, the party constructing the Project will issue and sign a
“Notification of Completion” acknowledging the Project’s construction completion.
14. Project Maintenance

The Local Government shall be responsible for maintenance of locally owned roads and
locally owned facilities after completion of the work. The State shall be responsible for
maintenance of the state highway system after completion of the work if the work was on the
state highway system, unless otherwise provided for in existing maintenance agreements with
the Local Government.
15. Right of Way and Real Property

The party named in Article 1, Responsible Parties, under AGREEMENT is responsible for the
provision and acquisition of any needed right of way or real property.
The Local Government shall be responsible for the following:

A. Right of way and real property acquisition shall be the responsibility of the Local
Government. Title to right of way and other related real property must be acceptable to
the State before funds may be expended for the improvement of the right of way or real
property.
B. If the Local Government is the owner of any part of the Project site under this
Agreement, the Local Government shall permit the State or its authorized
representative access to occupy the site to perform all activities required to execute the
work.
C. All parties to this Agreement will comply with and assume the costs for compliance with
all the requirements of Title II and Title III of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, Title 42 U.S.C.A. Section 4601 et seq.,
including those provisions relating to incidental expenses incurred by the property
owners in conveying the real property to the Local Government and benefits applicable
to the relocation of any displaced person as defined in 49 CFR Section 24.2(g).
Documentation to support such compliance must be maintained and made available to
the State and its representatives for review and inspection.
D. The Local Government shall assume all costs and perform necessary requirements to
provide any necessary evidence of title or right of use in the name of the Local
Government to the real property required for development of the Project. The evidence
of title or rights shall be acceptable to the State, and be free and clear of all
encroachments. The Local Government shall secure and provide easements and any
needed rights of entry over any other land needed to develop the Project according to
the approved Project plans. The Local Government shall be responsible for securing
any additional real property required for completion of the Project.
E. In the event real property is donated to the Local Government after the date of the
State’s authorization, the Local Government will provide all documentation to the State
regarding fair market value of the acquired property. The State will review the Local
Government’s appraisal, determine the fair market value and credit that amount
towards the Local Government’s financial share. If donated property is to be used as a
funding match, it may not be provided by the Local Government. The State will not
reimburse the Local Government for any real property acquired before execution of this
Agreement and the obligation of federal spending authority.
Page 7 of 12
CSJ # 0027-08-184
F. The Local Government shall prepare real property maps, property descriptions, and
other data as needed to properly describe the real property and submit them to the
State for approval prior to the Local Government acquiring the real property. Tracings
of the maps shall be retained by the Local Government for a permanent record.
G. The Local Government agrees to make a determination of property values for each real
property parcel by methods acceptable to the State and to submit to the State a
tabulation of the values so determined, signed by the appropriate Local Government
representative. The tabulations shall list the parcel numbers, ownership, acreage and
recommended compensation. Compensation shall be shown in the component parts
of land acquired, itemization of improvements acquired, damages (if any) and the
amounts by which the total compensation will be reduced if the owner retains
improvements. This tabulation shall be accompanied by an explanation to support the
determined values, together with a copy of information or reports used in calculating all
determined values. Expenses incurred by the Local Government in performing this
work may be eligible for reimbursement after the Local Government has received
written authorization by the State to proceed with determination of real property values.
The State will review the data submitted and may base its reimbursement for parcel
acquisitions on these values.
H. Reimbursement for real property costs will be made to the Local Government for real
property purchased in an amount not to exceed eighty percent (80%) of the cost of the
real property purchased in accordance with the terms and provisions of this
Agreement. Reimbursement will be in an amount not to exceed eighty percent (80%)
of the State’s predetermined value of each parcel, or the net cost of the parcel,
whichever is less. In addition, reimbursement will be made to the Local Government
for necessary payments to appraisers, expenses incurred in order to assure good title,
and costs associated with the relocation of displaced persons and personal property as
well as incidental expenses.
I. If the Project requires the use of real property to which the Local Government will not
hold title, a separate agreement between the owners of the real property and the Local
Government must be executed prior to execution of this Agreement. The separate
agreement must establish that the Project will be dedicated for public use for a period
of not less than 10 (ten) years after completion. The separate agreement must define
the responsibilities of the parties as to the use of the real property and operation and
maintenance of the Project after completion. The separate agreement must be
approved by the State prior to its execution. A copy of the executed agreement shall
be provided to the State.
16. Insurance
If this Agreement authorizes the Local Government or its contractor to perform any work on
State right of way, before beginning work the entity performing the work shall provide the State
with a fully executed copy of the State's Form 1560 Certificate of Insurance verifying the
existence of coverage in the amounts and types specified on the Certificate of Insurance for all
persons and entities working on State right of way. This coverage shall be maintained until all
work on the State right of way is complete. If coverage is not maintained, all work on State
right of way shall cease immediately, and the State may recover damages and all costs of
completing the work.
Page 8 of 12
CSJ # 0027-08-184
17. Notices
All notices to either party shall be delivered personally or sent by certified or U.S. mail,
postage prepaid, addressed to that party at the following address:
Local Government: State:
City of Sugar Land Texas Department of Transportation

ATTN: City Manager ATTN: Director of Contract Services
P.O. Box 110 125 E. 11th Street
Sugar Land, TX 77487 Austin, TX 78701
All notices shall be deemed given on the date delivered in person or deposited in the mail,
unless otherwise provided by this Agreement. Either party may change the above address by
sending written notice of the change to the other party. Either party may request in writing that
notices shall be delivered personally or by certified U.S. mail, and that request shall be carried
out by the other party.
18. Legal Construction

If one or more of the provisions contained in this Agreement shall for any reason be held
invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provisions and this Agreement shall be construed as if it did not
contain the invalid, illegal, or unenforceable provision.
19. Responsibilities of the Parties

The State and the Local Government agree that neither party is an agent, servant, or
employee of the other party, and each party agrees it is responsible for its individual acts and
deeds as well as the acts and deeds of its contractors, employees, representatives, and
agents.
20. Ownership of Documents

Upon completion or termination of this Agreement, all documents prepared by the State shall
remain the property of the State. All data and information prepared under this Agreement shall
be made available to the State without restriction or limitation on their further use. All
documents produced or approved or otherwise created by the Local Government shall be
transmitted to the State, in the format directed by the State, of photocopy reproduction on a
monthly basis or as required by the State. The originals shall remain the property of the Local
Government.
21. Compliance with Laws

The parties shall comply with all federal, state, and local laws, statutes, ordinances, rules and
regulations, and the orders and decrees of any courts or administrative bodies or tribunals in
any manner affecting the performance of this Agreement. When required, the Local
Government shall furnish the State with satisfactory proof of this compliance.
Page 9 of 12
CSJ # 0027-08-184
22. Sole Agreement

This Agreement constitutes the sole and only agreement between the parties and supersedes
any prior understandings or written or oral agreements respecting the Agreement’s subject
matter.
23. Procurement and Property Management Standards

The parties to this Agreement shall adhere to the procurement and property management
standards established in the Texas Uniform Grant Management Standards.
24. Inspection of Books and Records

The parties to this Agreement shall maintain all books, documents, papers, accounting
records, and other documentation relating to costs incurred under this Agreement and shall
make such materials available to the State and the Local Government, or their duly authorized
representatives for review and inspection at its office during the Agreement period and for
seven (7) years from the date of completion of work defined under this Agreement or until any
impending litigation, or claims are resolved. Additionally, the State and the Local Government
and their duly authorized representatives shall have access to all the governmental records
that are directly applicable to this Agreement for the purpose of making audits, examinations,
excerpts, and transcriptions.
25. Audit
Pursuant to Texas Government Code § 2262.154, the state auditor may conduct an audit or
investigation of any entity receiving funds from the state directly under the contract or indirectly
through a subcontract under the contract. Acceptance of funds directly under the contract or
indirectly through a subcontract under this contract acts as acceptance of the authority of the
state auditor, under the direction of the legislative audit committee, to conduct an audit or
investigation in connection with those funds. An entity that is the subject of an audit or
investigation must provide the state auditor with access to any information the state auditor
considers relevant to the investigation or audit.
26. Historically Underutilized Business (HUB) and Small Business Enterprise (SBE)
Requirements
For projects with State funds and no federal funds, the Local Government will be required to
follow the provisions of Texas Transportation Code §201.702 and 43 TAC §§9.354-9.355
(HUB) and §§9.314-9.315 (SBE). The Local Government must incorporate project goals
approved by TxDOT into project documents before advertising for receipt of bids. Contractors
must select HUBs and SBEs from TxDOT-approved or maintained sources. The Local
Government will provide monthly updates of HUB/SBE (as appropriate) participation and
report final accomplishments to TxDOT for credit to overall program goals.
For projects with no state or federal funds that are not on the state or federal highway
systems, the Local Government should follow its own local or specific ordinances and
procedures. Local Governments are encouraged to use HUBs and SBEs from TxDOT-
approved or maintained sources. The Local Government must also report final HUB
accomplishments to TxDOT for credit to overall program goals.
Page 10 of 12
CSJ # 0027-08-184
27. Debarment Certifications

If state funds are used, the parties are prohibited from making any award to any party that is
debarred under the Texas Administrative Code, Title 34, Part 1, Chapter 20, Subchapter G,
Rule §20.585 and the Texas Administrative Code, Title 43, Part 1, Chapter 9, Subchapter G.
28. Pertinent Non-Discrimination Authorities

During the performance of this Agreement, the Local Government, for itself, its assignees, and
successors in interest agree to comply with the following nondiscrimination statutes and
authorities; including but not limited to:
A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252),
(prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part
21.
B. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,
(42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property
has been acquired because of Federal or Federal-aid programs and projects).
C. Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), as amended, (prohibits
discrimination on the basis of sex).
D. Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.) as amended,
(prohibits discrimination on the basis of disability); and 49 CFR Part 27.
E. The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits
discrimination on the basis of age).
F. Airport and Airway Improvement Act of 1982, (49 U.S.C. Chapter 471, Section 47123),
as amended, (prohibits discrimination based on race, creed, color, national origin, or
sex).
G. The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope,
coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age
Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by
expanding the definition of the terms “programs or activities” to include all of the
programs or activities of the Federal-aid recipients, sub-recipients and contractors,
whether such programs or activities are Federally funded or not).
H. Titles II and III of the Americans with Disabilities Act, which prohibits discrimination on
the basis of disability in the operation of public entities, public and private
transportation systems, places of public accommodation, and certain testing entities
(42 U.S.C. §§ 12131-12189) as implemented by Department of Transportation
regulations at 49 C.F.R. parts 37 and 38.
I. The Federal Aviation Administration’s Nondiscrimination statute (49 U.S.C. § 47123)
(prohibits discrimination on the basis of race, color, national origin, and sex).
J. Executive Order 12898, Federal Actions to Address Environmental Justice in Minority
Populations and Low-Income Populations, which ensures nondiscrimination against
minority populations by discouraging programs, policies, and activities with
disproportionately high and adverse human health or environmental effects on minority
and low-income populations.
K. Executive Order 13166, Improving Access to Services for Persons with Limited English
Proficiency, and resulting agency guidance, national origin discrimination includes
discrimination because of limited English proficiency (LEP). To ensure compliance with
Title VI, the parties must take reasonable steps to ensure that LEP persons have
meaningful access to the programs (70 Fed. Reg. at 74087 to 74100).
Page 11 of 12
CSJ # 0027-08-184
L. Title IX of the Education Amendments of 1972, as amended, which prohibits the parties
from discriminating because of sex in education programs or activities (20 U.S.C. 1681
et seq.).
29. Signatory Warranty

Each signatory warrants that the signatory has necessary authority to execute this Agreement
on behalf of the entity represented.
Each party is signing this agreement on the date stated under that party’s signature.
THE STATE OF TEXAS THE LOCAL GOVERNMENT
Kenneth Stewart Michael W. Goodrum

Director of Contract Services City Manager
Texas Department of Transportation City of Sugar Land
Date Date
Page 12 of 12
ATTACHMENT A
RESOLUTION, ORDINANCE, OR COMMISSIONERS COURT ORDER
Page 1 of 1
AFA NonFed
Tuesday, LongGen
January 19 2021, City Council Meeting Page 24Attachment
of 164 A
ATTACHMENT B
LOCATION MAP SHOWING PROJECT
Page 1 of 1
AFA NonFed LongGen Attachment B
ATTACHMENT C
PROJECT BUDGET
The Local Government will be responsible for 100% of all costs including project overruns. The State will be
responsible for 100% of all Indirect State Costs.
Initial payment by the Local Government to the State: $57,000.00

Payment by the Local Government to the State before construction: $0
Estimated total payment by the Local Government to the State: $57,000.00
This is an estimate. The final amount of Local Government participation will be based on actual costs.
Page 1 of 1
AFA NonFed LongGen Attachment C
JANUARY 19, 2021
AGENDA REQUEST NO: IV.B.
INITIATED BY: Office of Emergency Management
PRESENTED BY: Gabe Lavine, Emergency Management Coordinator
RESPONSIBLE DEPARTMENT: Emergency Management
AGENDA CAPTION:
Consideration of and action on CITY OF SUGAR LAND RESOLUTION NO. 21-01:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND,
TEXAS, AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION TO THE
STATE OF TEXAS FOR FISCAL YEAR 2021 EMERGENCY MANAGEMENT
PERFORMANCE GRANT (EMPG) AND APPOINTING THE CITY MANAGER, OR
DESIGNEE, AS AUTHORIZED GRANT OFFICIAL TO APPLY FOR, ACCEPT, OR
DECLINE THE GRANT AND TO EXECUTE ALL GRANT DOCUMENTS.
RECOMMENDED ACTION:
Approve Resolution No. 21-01 authorizing the application for the FY20 Emergency
Management Performance Grant.
EXECUTIVE SUMMARY:
The City of Sugar Land continuously seeks grant opportunities through state or federal
funds. These grants typically require a match of City funds and a City Council resolution
authorizing the application for the grant and designation of an official to sign grant
documents. This grant is a reimbursement for funds already included in the annual budget,
however, and no match is required.
This will be the eighth year of the City's participation in the Emergency Management

Performance Grant (EMPG) process. The priority for the EMPG is to advance "Whole
Community" security and emergency management. Grant funds will be used to support local
comprehensive emergency management programs to encourage improvement of mitigation,
preparedness, response, and recovery capabilities for all hazards. The City received
$33,638.43 for last year's EMPG application that will be utilized to conduct training and
large scale exercises to prepare staff and the community for a variety of hazards. Since the
revenue from this grant is not included in the annual budget, the funds are a reimbursement to
the General Fund for the cost of staff time and operating expenses that were utilized to
conduct the training exercises on an ongoing basis.
Staff recommends that City Council approve Resolution No. 21-01 authorizing the
application for the FY21 Emergency Management Performance Grant.
BUDGET
EXPENDITURE REQUIRED: 40,000
CURRENT BUDGET:
ADDITIONAL FUNDING: 0
FUNDING SOURCE:101-1116
ATTACHMENTS:
Description Type
FY21 EMPG Resolution Contracts


AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION TO THE STATE OF
TEXAS FOR FISCAL YEAR 2021 EMERGENCY MANAGEMENT PERFORMANCE
GRANT (EMPG) AND APPOINTING THE CITY MANAGER, OR DESIGNEE, AS
AUTHORIZED GRANT OFFICIAL TO APPLY FOR, ACCEPT, OR DECLINE THE
GRANT AND TO EXECUTE ALL GRANT DOCUMENTS.
WHEREAS, the City Council of the City of Sugar Land (“City”) finds it in the best interest
of the citizens of the City to submit an application to the State of Texas for the Fiscal Year 2021
Emergency Management Performance Grant (“Grant”) program, which provides funds for hazard
emergency preparedness and local emergency management program expenses; NOW,
THEREFORE:

Section 1. That it adopts the findings and recitations set forth in the preamble to this
Resolution.
Section 2. That it authorizes the submission of a grant application to the State of Texas
for the Fiscal Year 2021 Emergency Management Performance Grant (“Grant”).
Section 3. That the City Manager, or his designee, is appointed as the authorized grant
official to apply for, accept, or decline the Grant and to execute all Grant documents on behalf of
the City of Sugar Land.
APPROVED on _______________________________, 2021.
____________________________________
ATTEST:
_____________________________
APPROVED AS TO FORM:
FY20EPMGRes
12/23/20

JANUARY 19, 2021
AGENDA REQUEST NO: IV.C.
INITIATED BY: Cam Yearty, Public Private Partnerships Manager
PRESENTED BY: Cam Yearty, Public Private Partnerships Manager
RESPONSIBLE DEPARTMENT: Economic Development
AGENDA CAPTION:
Consideration of and action on Tax Increment Reinvestment Zone Number One Fiscal Year
2020 Annual Report.
RECOMMENDED ACTION:
Approve Tax Increment Reinvestment Zone Number One Fiscal Year 2020 Annual Report.
EXECUTIVE SUMMARY:
Chapter 311 of the Texas Tax Code, known as the Tax Increment Financing Act, requires
municipalities with tax increment reinvestment zones to provide an annual report each fiscal
year to the State Comptroller and the Chief Executive Officer of taxing entities within the
zone that levy a property tax. The report includes detail on FY20 revenue, expenditures,
debt, tax increment base, appraised value, and captured value, as referenced in the state law.
The report was recommended to City Council for approval by the Tax Increment
Reinvestment Zone Number One Board on December 4, 2020. Staff recommends City
Council approval, pursuant to the requirements of the Texas Tax Code. Upon approval, the
report will be sent to the necessary taxing entities and the Comptroller.
BUDGET

CURRENT BUDGET: N/A
FUNDING SOURCE:N/A
ATTACHMENTS:
Description Type
TIRZ No. 1 FY20 Annual Report Other Supporting Documents

TAX INCREMENT REINVESTMENT ZONE NO. ONE
Annual Report FY2020

TABLE OF CONTENTS
SUGAR LAND CITY COUNCIL 3
TIRZ 1 BOARD OF DIRECTORS 4
INTRODUCTION 5
STATE OF THE ZONE IN FY2020 6
REVENUES 6
EXPENDITURES 7
TAX INCREMENT BASE &

CURRENT CAPTURED 8
APPRAISED VALUE
TAX INCREMENTS
RECEIVED BY
9
PARTICIPATING
ENTITIES
TIRZ NUMBER ONE ANNUAL REPORT | PAGE

Tuesday, January 19 2021, City Council Meeting
2
Page 33 of 164
CITY OF SUGAR LAND CITY COUNCIL
MAYOR Joe R. Zimmerman
COUNCIL MEMBERS Himesh Gandhi At-Large Position One

*as of 9/30/2020
Jennifer J. Lane At-Large Position Two
Steve R. Porter District One
Naushad Kermally District Two
Stewart Jacobson District Three
Carol K. McCutcheon District Four

3
Page 34 of 164
TIRZ 1 BOARD OF DIRECTORS
PURPOSE
To make recommendations to City Council concerning administration of the Tax Increment
Reinvestment Zone (Sugar Land Town Square).
BOARD OF DIRECTORS Allen Bogard Position 1

*as of 9/30/2020 State Senator Designee
Robert Sawchuk Position 2

State Representative Designee
Don Smithers, Chairman Position 3

City of Sugar Land Designee
Fred Fogarty Position 4

Sarwar Khan Position 5

Jared Jameson Position 6

Fort Bend County Designee
Malvern Lusky Position 7

Laura Richard Position 8

Currently Vacant Position 9

DUTIES & RESPONSIBILITIES

The Board of Directors has been granted authority and duties related to the project plan and the
reinvestment zone financing plan. Annually, the Board adopts a budget for the current fiscal year and
has the authority to enter into contracts and agreements within the fiscal year budget allocation.
MEMBERSHIP
Tax Increment Reinvestment Zone Number One (TIRZ No. 1) encompasses Sugar Land Town Square
and is comprised of nine board members who are appointed by position with each serving a two-year
term, with the exception of Positions 1 and 2, who serve at the pleasure of the State Senator and State
Representative, who appointed them, respectively, and Position 9, which is appointed by Fort Bend
County.

4
Page 35 of 164
INTRODUCTION
ABOUT TAX INCREMENT

REINVESTMENT ZONE ONE
(TIRZ 1)
In accordance with the Tax Increment Financing
Act (Chapter 311, Tax Code), Reinvestment Zone
Number One, Sugar Land, Texas (the Zone) was
established by Ordinance 1149 of the City Council
of the City of Sugar Land, Texas on December 1,
1998. The Zone consists of 32.83 acres located in
Sugar Land, Fort Bend County, Texas, and is
generally located at the southern corner of State
Highway 6 and U.S. 59. In addition, the Zone is
located in Fort Bend ISD and Fort Bend County
LID #2.
The purpose of TIRZ No. 1, initially intended to

last through 2024 but later extended to
December 31, 2025, is to facilitate the
development of a 32.83-acre mixed-use
downtown, known as Sugar Land Town Square.
The development is planned as a neo-traditional
urban-style downtown with a town square, open
space, extensive streetscapes and wide sidewalks
providing access to retail stores, offices and
restaurants. A 1.2-acre central plaza with a
fountain, capable of accommodating more than
3,000 people, is a cornerstone for community
events including concerts, festivals and civic
celebrations.

5
Page 36 of 164
STATE OF THE ZONE IN FY2020
REVENUES
The information provided in this section is in accordance with § 311.016 (a) (1) of the Texas Tax Code,
which requires inclusion of the amount and source of revenue in the tax increment fund established for
the Zone for Fiscal Year 2020. The bottom line displays all revenues earned for TIRZ No. 1.
In addition to the City’s tax increment revenue, interlocal agreements with Fort Bend County and Fort
Bend LID #2 provide for each taxing unit’s participation in the Zone at 100%. The Zone was created
for a period of 26 years. It will terminate no later than December 31, 2025. The City’s tax increment
revenue in Fiscal Year 2020 is calculated based on a tax rate of $0.33200 per $100 of taxable value.
Fort Bend County’s tax increment revenue in Fiscal Year 2020 is calculated on a tax rate of $0.46000
per $100 of taxable value. Finally, the Fort Bend LID #2’s tax increment revenue in Fiscal Year 2020 is
calculated on a tax rate of $0.14500 per $100 of taxable value. Actual revenues collected from each
participating tax unit during Fiscal Year 2020 appear in Table A

6
Page 37 of 164
EXPENDITURES
which requires inclusion of the amount and purpose of expenditures from the tax increment fund for
Fiscal Year 2020. The bottom line displays all expenditures from TIRZ No. 1.
The public improvements to be constructed in the Zone, which constitute eligible Project Costs as
defined in Chapter 311.002, are estimated by the Developer to total approximately $15,000,000 as
stipulated by the five party agreement between the City of Sugar Land, the Sugar Land Town Square
Development Authority, the Sugar Land Development Corporation, the Sugar Land 4B Corporation,
and TIRZ No. 1. Actual expenditures, by amount and purpose, for FY20 are provided in Table B.
PRINCIPAL AND INTEREST DUE

which requires inclusion of the amount of principal and interest due on outstanding bonded
indebtedness.
No bonded debt was issued by the Zone during Fiscal Year 2020. The Zone has no prior outstanding
bond indebtedness.

7
Page 38 of 164
TAX INCREMENT BASE & CURRENT CAPTURED APPRAISED VALUE

which requires inclusion of the tax increment base and current captured appraised value retained by
the Zone.
In each year subsequent to the base year, the Zone will receive tax increment revenue based on ad
valorem property taxes levied and collected by each participating taxing unit on the captured
appraised value of the Zone. The captured appraised value of the Zone is the total appraised value of
all real property located within the Zone, less the tax increment base value. The Zone includes one tax
abatement (City Abatement #08-01 - Town Center Lakeside) which expired on December 31, 2019.
Participation levels in the Zone have been approved by the City, Fort Bend County, and Fort Bend
County LID #2 as follows:
City of Sugar Land 100%
Fort Bend County 100%
Fort Bend LID #2 100%
As of January 1, 1998 (base year) the area encompassed by the Zone was undeveloped land with a
total appraised value of $5,570,200. Table C on the following page reflects the City’s certified tax roll
for each year of the Zone.

8
Page 39 of 164

9
Page 40 of 164
CAPTURED APPRAISED VALUE & TOTAL TAX INCREMENTS RECEIVED

which requires inclusion of the captured appraised value shared by the municipality and other taxing
units, the total amount of tax increments received, and any additional information necessary to
demonstrate compliance with the tax increment financing plan adopted by the governing body of the
municipality.
As previously stated, the City, Fort Bend County and Fort Bend LID #2 are the only taxing units
participating in the Zone. Table D summarizes the captured appraised value by tax year and the
actual tax increment revenue received from each participating taxing unit.
This report is certified by:

City of Sugar Land, Texas

10
Page 41 of 164
JANUARY 19, 2021
AGENDA REQUEST NO: IV.D.
PRESENTED BY:
AGENDA CAPTION:
Consideration of and action on Tax Increment Reinvestment Zone Number Three Fiscal Year
2020 Annual Report.
RECOMMENDED ACTION:
Approve Tax Increment Reinvestment Zone Number Three Fiscal Year 2020 Annual Report.
EXECUTIVE SUMMARY:
year to the State Comptroller and the Chief Executive Officer of taxing entities within the
zone that levy a property tax. The report includes detail on FY20 revenue, expenditures,
debt, tax increment base, appraised value, and captured value, as referenced in the state law.
Reinvestment Zone Number Three Board on December 9, 2020. Staff recommends City

BUDGET
CURRENT BUDGET: N/A
FUNDING SOURCE:N/A
ATTACHMENTS:
Description Type

TAX INCREMENT REINVESTMENT ZONE NO. THREE

TABLE OF CONTENTS
INTRODUCTION 5
REVENUES 7
EXPENDITURES 8
TAX INCREMENT BASE & 9

CURRENT CAPTURED
APPRAISED VALUE
TAX INCREMENTS 10
RECEIVED BY
PARTICIPATING
ENTITIES
TIRZ NUMBER THREE ANNUAL REPORT | PAGE

2
Page 45 of 164

*as of 9/30/2020

3
Page 46 of 164

The Board is comprised of five directors each serving two-year terms with the chairman selected from
within the membership by the Sugar Land City Council for a one-year period. Of the five directors,
four are appointed by the Sugar Land City Council. Position 5 is a designee of Fort Bend County and
appointed by the Fort Bend County Commissioners’ Court.
BOARD OF DIRECTORS Stewart Jacobson Position 1

*as of 9/30/2020
Steve R. Porter, Chair Position 2

Mary Willis Position 3

Himesh Gandhi Position 4

Courtney Johnson Rose Position 5

MEMBERSHIP
The Board of the Tax Increment Reinvestment Zone No. Three (TIRZ No. 3) has all of the duties and
powers authorized by the Tax Increment Financing Act (Chapter 311, Tax Code) and delegated by
Ordinance Nos. 1667, 1888, 1910, and 2064. This authority includes preparing and recommending to
the City Council for its approval the Final Project Plan and Plan of Finance, statutorily required annual
reports, annual budgets, and annual financial statements.

4
Page 47 of 164
INTRODUCTION
ABOUT TAX INCREMENT

REINVESTMENT ZONE THREE
(TIRZ 3)
No. Three, Sugar Land, Texas (the Zone) was
established by Ordinance No. 1667 of the City
Council of the City of Sugar Land, Texas on
December 18, 2007 and amended by Ordinance
Nos. 1888 and 1910 in February and July 2013,
respectively. The Final Project Plan was amended
by Ordinance No. 2064 in August 2016. The Zone
encompasses approximately 839.4 acres of land,
including the Imperial Sugar site, and is located in
the corporate limits of the City of Sugar Land in
Fort Bend County, Texas, north of US Highway
90A and east of State Highway 6.
The purpose of TIRZ No. 3, initially intended to

last through 2038 but later extended to
December 31, 2042, is to facilitate a program of
public improvements to allow the development
and redevelopment of property in the Zone as a
master-planned, mixed use community with
single-family attached and detached residential,
commercial and recreational facilities. Included
in the redevelopment plans are the preservation
and reuse of certain historic structures at the
Imperial Sugar site and the location of a museum
to house Imperial Sugar artifacts. Other project
types include water/sewer & drainage, public
roadways, parks, and parking facilities to
promote economic development.

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REVENUES
The City of Sugar Land created TIRZ No. 3 in December 2007, establishing a base year in Tax Year
2007 and Fiscal Year 2008. The City has decided to participate in the Zone at 50% of its ad valorem
tax rate. The City’s tax increment revenue in Fiscal Year 2020 is calculated based on a tax rate of
$0.33200 per $100 of taxable value.
Fort Bend County agreed to participate in the Zone in 2013 through a participation agreement that
established a base year in Tax Year 2012, Fiscal Year 2013. The County has elected to participate in
the Zone at a 50% of its ad valorem tax rate. The County’s tax increment revenue in Fiscal Year 2020
is calculated on a tax rate of $0.46000 per $100 of taxable value.
Additional revenue in the TIRZ includes $471 in interest income during Fiscal Year 2020.

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EXPENDITURES
Fiscal Year 2020. The bottom line displays all expenditures from TIRZ No. 3.
In May 2016, the Sugar Land City Council approved the Third Amendment to the Redevelopment
Agreement between the City, Imperial Johnson, LLC, and the Imperial Redevelopment District.
The Third Amendment identified the need for TIRZ revenues to be used for public expenditures in the
District, which created the need for the Tri-Party Funding Agreement between the City, the TIRZ, and
the Imperial Redevelopment District.
As part of the Tri-Party Funding Agreement, which was passed in August 2016, the City and the Zone
agreed to donate all TIRZ revenues on a bi-annual basis to the District to finance these public
expenditures, except for 2% to be retained for administrative services.

indebtedness.
To date, no bonded debt has been issued in the Zone. The Zone has no prior outstanding bond
indebtedness.

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which requires reporting of the tax increment base and current captured appraised value.
In each year subsequent to the base year, the Zone will receive tax increment revenue based on ad
valorem property taxes levied and collected by each participating taxing unit on the captured
appraised value of the Zone. The captured appraised value of the Zone is the total appraised value of
all real property located within the Zone, less each participating taxing unit’s tax increment base value.
The Zone includes one active tax abatement (City Abatement #2014-01 - Nalco) set to expire in 2025.
The City of Sugar Land’s base value for TIRZ No. 3 was set in Tax Year 2007 at $5,602,490. Fort Bend
County agreed to participate in the Zone in 2013, establishing a base value in Tax Year 2012 at
$11,762,870. However, this value erroneously included $5,250 in personal property value. The true base
value is therefore $11,757,620. The following charts reflect the total appraised value, base value, and
the captured value for each participating tax entity for each tax year.
City of Sugar Land - Appraised, Base and Incremental Values
**Incremental values displayed
Fort Bend County - Appraised, Base and Incremental Values
**Incremental values displayed

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TAX INCREMENT BASE & CURRENT CAPTURED TAXABLE VALUE

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TAX INCREMENTS RECEIVED BY PARTICIPATING ENTITIES



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JANUARY 19, 2021
AGENDA REQUEST NO: IV.E.
PRESENTED BY: Cam Yearty, Public Private Partnerships Manager
AGENDA CAPTION:
Consideration of and action on Tax Increment Reinvestment Zone Number Four Fiscal Year
2020 Annual Report.
RECOMMENDED ACTION:
Approve Tax Increment Reinvestment Zone Number Four Fiscal Year 2020 Annual Report.
EXECUTIVE SUMMARY:
year to the State Comptroller and the chief executive officer of taxing entities within the zone
that levy a property tax. The report includes detail on FY20 revenue, expenditures, debt, tax
increment base, appraised value, and captured value, as referenced in the state law.
Reinvestment Zone Number Four Board on December 21, 2020. Staff recommends City
BUDGET

CURRENT BUDGET: N/A
FUNDING SOURCE:N/A
ATTACHMENTS:
Description Type

TAX INCREMENT REINVESTMENT ZONE NO. FOUR

TABLE OF CONTENTS
INTRODUCTION 5
REVENUES 7
EXPENDITURES 8
TAX INCREMENT BASE & 9

CURRENT CAPTURED
APPRAISED VALUE
TAX INCREMENTS 12
RECEIVED BY
PARTICIPATING
ENTITIES
TIRZ NUMBER FOUR ANNUAL REPORT | PAGE

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*as of 9/30/2020

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The Board of the Tax Increment Reinvestment Zone Number Four (TIRZ No. 4) has all of the duties
and powers authorized by the Tax Increment Financing Act (Chapter 311, Tax Code) and delegated by
Ordinance No. 1768 and 1807. This authority includes preparing and recommending to the City Council
for its approval the Final Project Plan and Plan of Finance, statutorily required annual reports, annual
budgets, and annual financial statements.
BOARD OF DIRECTORS Greg Stirman, Chairman Position 1

*as of 9/30/2020 City of Sugar Land Designee
Bridget Yeung Position 2

Cynthia Knox Position 3

Carol McCutcheon Position 4

Matt Shepard Position 5

Pamela Gubbels Position 6

Fort Bend County Drainage District Designee
Vacant Position 7
Position reserved for MUD 137
Jennifer Raymond Position 8

Municipal Utility District No. 138 Designee
Terrie Gornet Position 9

Municipal Utility District No. 139 Designee
MEMBERSHIP
The Board is comprised of a maximum of nine directors each serving two-year terms with the
chairman selected from within the membership by the Sugar Land City Council for a one-year period.
Of the possible nine directors, four are appointed by the Sugar Land City Council. Positions 5 and 6
are designees of Fort Bend County and the Fort Bend County Drainage District, while Fort Bend
County Municipal Utility District (MUD) Nos. 137, 138 and 139 have appointed members to Position 7, 8
and 9, respectively. However, MUD No. 137 has not formally agreed to participate in the Zone, hence
the position is not currently occupied.

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INTRODUCTION
ABOUT TAX INCREMENT

REINVESTMENT ZONE FOUR
(TIRZ 4)
Number Four, City of Sugar Land, Texas was
established by Ordinance No. 1768 of the City
Council of the City of Sugar Land, Texas on
December 15, 2009 and amended by Ordinance
No. 1807 on December 7, 2010. The Zone
encompasses approximately 698 acres within the
City of Sugar Land, Texas. Located at the U.S.
Highway 59 - University Boulevard interchange,
the Zone is wholly within Fort Bend County and
Fort Bend County Levee Improvement District
No. 17. Portions of the Zone are located within
Fort Bend County MUD Nos. 137, 138 and 139.
The Zone has been created for a term of 30 years

for the purpose of financing public improvements
and facilities necessary to support development
of employment, commercial, cultural arts, and
entertainment districts within a mixed use center.
Other eligible project types include water/sewer
& drainage, public roadways, parks, and parking
facilities to promote economic development.

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REVENUES
The City of Sugar Land created TIRZ No. 4 in December 2009, establishing a base year in Tax Year
2009. The City has decided to participate in the Zone at 50% of its ad valorem tax rate. The City’s tax
increment revenue in Fiscal Year 2020 is calculated based on a tax rate of $0.33200 per $100 of
taxable value. Fort Bend County MUD No. 138 and 139 elected to participate in the Zone in 2011, yet
each agreed in a participation agreement to set a base value on the year the Zone was created, Tax
Year 2009. Each municipal utility district has decided to participate at 50% of the City’s ad valorem
tax rate. Fort Bend County and the Fort Bend County Drainage District agreed to participate in the
Zone in December 2013, establishing a base year in Tax Year 2013. The County and Drainage District
have elected to participate in Zone at the following schedule:
- 2014-2029: 50% of the County tax increment

The Fort Bend County tax increment revenue in Fiscal Year 2020 is calculated based on a combined
tax rate of $0.46000 per $100 of taxable value; this also includes the Drainage District’s tax rate.
Revenue collected from each participating tax unit during Fiscal Year 2020 appears in Table A.
Additional revenue in the TIRZ includes $25,613 in interest income received during Fiscal Year 2020.

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EXPENDITURES
Fiscal Year 2020; the bottom line sums all expenditures from TIRZ No.4.
In Fiscal Year 2020, the Zone incurred expenditures related to legal and administrative services as
detailed below in Table B.

indebtedness.
To date, no bonded debt has been issued in the Zone. The Zone has no prior outstanding bond
indebtedness.

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which requires inclusion of the tax increment base and current captured appraised value retained by
the Zone.
In each year subsequent to the base year, the Zone receives tax increment revenue from ad valorem
property taxes levied and collected by each participating taxing unit on the captured appraised value
of the Zone. The captured appraised value of the Zone is the total appraised value of all real property
located within the Zone, less each participating taxing unit’s tax increment base value.
The City of Sugar Land’s base value for TIRZ No. 4 was set in Tax Year 2009 at $21,523,297. Fort Bend
County MUD No. 138 and No. 139 each agreed to participate in the Zone in Tax Year 2011, though a
contractual base value was set using 2009 values at $10,527,513 for MUD No. 138 and $10,970,488
for MUD No. 139. The Fort Bend County and Fort Bend County Drainage District base value is set in
Tax Year 2013 at $72,152,791. The following tables reflect the total appraised value, base value, and
captured value for each participating tax entity for each tax year. New for the FY20 Annual Report,
graphical representations of the tax increment capture are also included following the tables.

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City of Sugar Land - Appraised, Base and Incremental Values
**Captured values displayed
Fort Bend County - Appraised, Base and Incremental Values

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MUD 138 - Appraised, Base and Incremental Values
MUD 139 - Appraised, Base and Incremental Values

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TAX INCREMENTS RECEIVED BY PARTICIPATING ENTITIES



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JANUARY 19, 2021
AGENDA REQUEST NO: IV.F.
INITIATED BY: Thomas Harris III, City Secretary
PRESENTED BY: Thomas Harris III, City Secretary
AGENDA CAPTION:
Consideration of and action on the minutes of the January 5, 2021 meeting.
RECOMMENDED ACTION:
Consider the minutes of January 5, 2021 meeting.
EXECUTIVE SUMMARY:
Consider the minutes of January 5, 2021 meeting.
BUDGET
CURRENT BUDGET:
ADDITIONAL FUNDING:
FUNDING SOURCE:
ATTACHMENTS:

Description Type
0105cc_minutes Other Supporting Documents

CITY OF SUGAR LAND
TUESDAY, JANUARY 5, 2021
CITY COUNCIL MEETING MINUTES
5:30 PM
City Council Chamber
ATTENTION:
City of Sugar Land will limit meetings to City of Sugar Land Staff and Essential
Personnel in order to limit the spread of COVID-19, as recommended by the Centers
for Disease Control and Prevention. Members of the City Council, Board and/or
Commission may participate in deliberations of posted agenda items through
telephonic/videoconferencing means. Audio/Video of open deliberations will be
available for the public to hear/view, and recorded as per the Texas Open Meetings
Act.
The meeting will live stream at https://www.sugarlandtx.gov/1238/SLTV-16-Live-

Video or https://www.youtube.com/user/SugarLandTXgov/live. Sugar Land Comcast
Cable Subscribers can also tune-in on Channel 16.
Members of the public desiring to submit written comments to be read during the
Public Comment and/or Public Hearing portions of the meeting, will be allowed to
submit their comments to the Office of City Secretary (citysec@sugarlandtx.gov).
Written/e-mailed comments must be received by 3:00 p.m., Tuesday, January 5, 2021.
The City of Sugar Land reserves the right to remove any written/e-mailed comments
deemed inappropriate and/or not adhering to the public comment rules outlined in this
notice. The City reserves the right to not read any comments containing -
Links to for-profit sites

Advertising
Promotion of illegal activities
Sexual oriented/explicit comments and sites
Information promoting discrimination/harassment
Political/religious rhetoric, advocacy, or commentary
Members of the public desiring to participate during the set/posted time of the Public
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Comment and/or Public Hearing must e-mail (citysec@sugarlandtx.gov) or call ((281)
275-2730) the Office of the City Secretary by 3:00 p.m., Tuesday, January 5, 2021.
Once properly registered, the Office of the City Secretary will provide instructions for
direct participation during the Public Comment and/or Public Hearing.
For questions or assistance, please contact the Office of the City Secretary (281) 275-
2730.
QUORUM PRESENT
All members were present.
INVOCATION
Mayor Joe Zimmerman
PLEDGE OF ALLEGIANCE TO THE FLAG

Mayor Joe Zimmerman
RECOGNITION
SABRINA ROESLER
LEMONADE DAY HOUSTON
2020 YOUTH ENTREPRENEUR OF THE YEAR
I. PUBLIC COMMENT
A. Citizens who desire to address the City Council, Board and/or Commission
with regard to matters on the agenda will be read and/or received at this time.
Members of the public desiring to make comments during this portion of the
meeting will be allowed to submit their comments (as outlined above) to the
Office of the City Secretary (citysec@sugarlandtx.gov). Written/e-mailed
comments and/or requests to participate during this portion of the meeting must
be received by 3:00 p.m. on, Tuesday, January 5, 2021. The City of Sugar
Land reserves the right to remove any written/e-mailed comments deemed
inappropriate (as outlined above) and/or not related to matters posted on the
agenda. Comments or discussion by the City Council, Board, and/or
Commission Members, will only be made at the time the subject is scheduled
for consideration.
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II. CONSENT AGENDA
A. Consideration of and action on authorization of a Contract with The Broussard

Group, Inc. dba TBG Partners, in the amount of $169,169.00, for construction
design services for Cullinan Park Phase 2 Trails, CIP PK2001.
Fenglin Du, Parks Development Manager, Parks and Recreation
B. Consideration of and action on authorization of a License Agreement by and
between the City of Sugar Land, Texas and LCFRE Sugar Land Town Square,
LLC, in the amount of $4,900.00, for operation of the City’s Three-Tier
Wireless System. This agreement will automatically renew for nineteen (19)
additional one-year terms for a total agreement amount of $72,589.96.
Robert Bowman, IT Operations Manager
Item II-B was pulled and considered following the Consent Agenda.
Robert Bowman, IT Operations Manager, gave comments and answered questions

from the Council.
A motion to Approve, Item II-B, authorization of a License Agreement by and

between the City of Sugar Land, Texas and LCFRE Sugar Land Town Square,
LLC, in the amount of $4,900.00, for operation of the City's Three-Tier Wireless
System. This agreement will Operation of the City’s Three-Tier Wireless System;
this contract will automatically renew for nineteen (19) additional one-year terms for
a total contract amount of $1,894,155, was made by Joe Zimmerman and seconded
by Carol McCutcheon, the motion Passed.
Ayes: Ferguson, Jacobson, Kermally, Lane, McCutcheon, Porter, Zimmerman
C. Consideration of and action on authorization of a Contract with UWS, Inc., in

the amount of $378,831.00, for the replacement of water meters and
materials. This contract will automatically renew for four (4) additional one-
year terms for a total contract amount of $1,894,155.
Katie Clayton, Assistant Director of Public Works
D. Consideration of and action on authorization of a Contract with Precision
Utility, LLC, in the amount of $244,680.00, for wastewater manhole and
mainline water valve repair services. This contract will automatically renew
for four (4) additional one-year terms for a total contract amount of
$1,223,400.
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E. Consideration of and action on authorization of a Contract with Inframark
LLC, in the amount of $99,280.00, for fire hydrant painting services. This
contract will automatically renew for four (4) additional one-year terms with a
total contract amount of $496,400.00.
F. Consideration of and action on authorization of a Contract with Alliance
Transportation Group, Inc., in the amount of $239,930.00, for speed zone
studies on twenty-eight (28) roadways in the city.
James Turner, City Traffic Engineer
G. Consideration of and action on the minutes of December 15, 2020 meeting.
All Consent Agenda items listed are considered to be routine by the City Council
and enacted by one motion. Item II-B was pulled from the Consent Agenda and
voted on separately.
A motion to Approve, Items II-A, II-C through II-G, Consent Agenda, was made
by Naushad Kermally and seconded by Stewart Jacobson, the motion Passed.
III. BUDGET
A. Consideration of and action on a Budget Amendment, in the amount of
$3,580,184, to the Sugar Land 4B Corporation Fiscal Year 2021 Budget from
the Corporation's Fiscal Year 2020 carryovers.
Jennifer Brown, Director of Finance, gave a presentation, comments, and answered
questions from the Council.
A motion to Approve, Item III-A, a Budget Amendment, in the amount of

$3,580,184, to the Sugar Land 4B Corporation Fiscal Year 2021 Budget from the
Corporation's Fiscal Year 2020 carryovers, was made by Jennifer Lane and
seconded by Naushad Kermally, the motion Passed.

IV. DONATIONS
A. Consideration of and action on acceptance of a Donation, in the amount
of $118,856.66, for the Eagle plaza development and T.E. Harman Center
outdoor patio improvements; and authorization of a budget amendment in the
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amount of $118,857.00 in revenues and expenditures.
Daphne McKinney, Strategic Planning & Philanthropy Manager; Kimberly
Terrell, Assistant Director of Parks & Recreation
Daphne McKinney, Strategic Planning & Philanthropy Manager and Kimberly
Terrell, Assistant Director of Parks & Recreation, gave a presentation, comments,
and answered questions from the Council.
Col. Raj Bhalla, Donator, gave comments and answered questions from the
Council.
A motion to Approve, Item IV-A, acceptance of a Donation, in the amount of

$118,856.66, for the Eagle plaza development and T.E. Harman Center outdoor
patio improvements; and authorization of a budget amendment in the amount of
$118,857.00 in revenues and expenditures, was made by Carol McCutcheon and
seconded by Jennifer Lane, the motion Passed.

V. CONTRACTS AND AGREEMENTS
A. Consideration of and action on authorization of a Contract with KW Industries,
Inc., in the amount of $500,000.00, for traffic signal pole assemblies. This
contract will automatically renew for four (4) additional years for a total
contract amount of $2,500,000.
James Turner, City Traffic Engineer
James Turner, City Traffic Engineer, gave a presentation, comments, and answered
questions from the Council.
Andy Pettigrew, KW Industries and Mike Goodrum, City Manger, gave comments
and answer questions from the Council.
A motion to Approve, Item V-A, authorization of a Contract with KW Industries,

Inc., in the amount of $500,000.00, for traffic signal pole assemblies; this contract
will automatically renew for four (4) additional years for a total contract amount of
$2,500,000, was made by Joe Zimmerman and seconded by Carol McCutcheon, the
motion Passed.

VI. APPOINTMENTS
A. Consideration of and action on the appointment of a Member of the City
Council as Mayor Pro Tem for the period of January 2021 to May 2022.
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A motion to Approve, Item VI-A, Appointment of Councilwoman Jennifer Lane as

Mayor Pro Tem for the period of January 2021 to May 2022, was made by Joe
Zimmerman and seconded by Carol McCutcheon, the motion Passed.

VII. CITY COUNCIL CITY MANAGER REPORTS
A. City Council Member Reports
Mayor Zimmerman and Council Members gave comments and reported on events
and activities attended.
B. City Manager Report
Other Governmental Meetings Attended or Scheduled
Council Meeting Schedule
Michael W. Goodrum, City Manager, gave comments and reported on events and
activities attended.
VIII.ADJOURNMENT
A motion to Approve, Adjournment at 6:23 p.m., was made by Joe Zimmerman

and seconded by Naushad Kermally, the motion Passed.

_____________________________________
Thomas Harris III, City Secretary
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JANUARY 19, 2021
AGENDA REQUEST NO: V.A.
INITIATED BY: Jennifer Brown, Director of Finance
PRESENTED BY: Jennifer Brown, Director of Finance
RESPONSIBLE DEPARTMENT: Budget
AGENDA CAPTION:
FIRST AND FINAL CONSIDERATION : Consideration of and action on CITY OF SUGAR
LAND ORDINANCE NO. 2220: AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SUGAR LAND, TEXAS, AMENDING THE FISCAL YEAR 2020-2021 BUDGET
FOR THE CITY OF SUGAR LAND, TEXAS, TO PROVIDE THAT THE REVISED
BUDGET ADDRESS FUNDS RELATING TO CERTAIN CAPITAL AND OPERATING
BUDGET MATTERS AND THAT THIS AMENDMENT BE ADOPTED AS THE
BUDGETED AMOUNT FOR THOSE FUNDS.
RECOMMENDED ACTION:
Approve first and final reading of Ordinance No. 2220 amending the Fiscal Year 2021 budget.
EXECUTIVE SUMMARY:
Background
The City’s budget is adopted by one reading of an ordinance each year by City Council as stipulated
by the City Charter. After the budget is adopted, additional appropriations that are needed require
City Council approval through a budget ordinance. To streamline the process, the Budget Office
consolidates amendment requests into a single budget ordinance and brings them forward on a semi-
annual basis, or as needed. This budget amendment is for carry-overs from FY20, and it also
formalizes budget amendments and actions approved by City Council since October.
As part of actively managing the budget, the second amendment typically occurs toward the end of
the fiscal year, which allows the City to better estimate available net funding remaining in the current
year. This method more clearly presents the activity that occurred on a budgetary basis in the prior
year.

year.
The City’s focus on resiliency and innovative constraint enable us to maintain our financial strength
while continuing to provide high-quality services that are important to residents. Our tradition is to
conservatively estimate revenue and ensure that adequate funds are available to meet service
delivery needs. Accountability and transparency are key to this process - by managing the budget
amendments using this process, we are able to maintain both.
FY20 Results Summary

The City ended FY20 above budgeted funding levels in all operating funds. In large part this is due
to the immediate action and conservative strategies intentionally implemented by the City to address
the economic impacts of COVID-19 and generate expenditure savings. The table below illustrates
the results between FY20 unaudited results and the FY20 amended budget, as well as the impact to
available funding after carryovers and FY21 budget amendments.
Budget Amendment Funding Summary

Appropriation
Fund FY21
FY20 FY20 Revised
Budgeted Unaudited Ending
Ending Ending Fund
Balance Balance Variance Expenditures Revenues Balance
General Fund 24,992,265 32,976,051 7,983,786 1,720,074 126,309 29,785,923
Utility Fund 11,817,126 13,179,330 1,362,204 1,895,380 - 10,300,092
Airport Fund 2,658,389 3,201,984 543,595 384,570 63,316 3,204,660
Solid Waste Fund 759,034 862,178 103,144 30,105 21,705 884,690
CDBG - 20,622 20,622 20,622 20,622 -
Fleet Replacement 3,229,700 3,463,556 233,856 86,129 1,839,968
Tech Replacement 2,190,550 3,336,651 1,146,101 441,457 2,053,127
Animal Shelter 25,880 25,880 -
PEG Fund 8,087 8,087 -
SLDC 4,141,026 5,128,136 987,110 790,798 4,434,918
SL4B 2,834,322 6,414,506 3,580,184 3,580,184 2,428,401
Fund Balance Policy Requirement

The balances shown above include the funds that are required to be maintained in accordance with
the City’s Financial Management Policy Statements. The General Fund must maintain an unassigned
fund balance of at least 25% or 3 months of normal recurring operating costs, based on current year
budgeted expenditures.
A cash equivalent operating reserve is established and maintained for the Utility Fund at 25% of the
current year’s budget appropriation for recurring operating costs, and the Airport Fund is also at 25%,
excluding fuel for resale cost.
Carry-Over Requests
Carryovers are expenditures that were budgeted in the prior year, but the receipt of those goods did

Carryovers are expenditures that were budgeted in the prior year, but the receipt of those goods did
not occur until the current fiscal year. Because appropriations lapse at fiscal year-end, and funds may
not be spent unless they are appropriated, Council must formally re-authorize the expenditure of these
funds. In all cases where carry-over funding is requested, the operating funds ended FY20 better than
anticipated, largely due to these expenditures occurring in the next fiscal year. The carry-over
requests for each fund are outlined below.
General Fund
The General Fund accounts for most of the City’s services, and is funded primarily from sales tax
(34%) and property taxes (33%). The annual budget is structurally balanced and maintains a policy
minimum of 25% of recurring operating expenditures as a fund balance requirement.
The General Fund FY20 ending budgetary fund balance of $32.97M is $7.9M greater than the
budgeted ending fund balance (net of sales tax accruals). The fund ended the year better than
anticipated due to revenue estimate reductions due to the impacts of COVID-19. Sales tax revenues
came in $1.8M better than projections and expenditures came in $5.6M better than projected as the
result of conservative strategies to generate savings to offset potential revenue reductions. After
accruals, total revenues were $1.7M better than the revised budget, which was significantly reduced
mid-year as part of the immediate actions implemented in response to COVID-19.
Carry-over requests in the General Fund total $982,574 and are broken down as shown below.
Department Expenditures
General Government $ 201,001
Finance 12,219
Public Works 333,821
Parks 39,798
Planning 164,273
City Engineer 94,633
ENS 52,298
Police 38,394
Fire 12,170
Transfer to Other Funds 33,967
Total $ 982,574
COVID-19 Impacts/ FY21 Budget Strategies
As part of the FY21 budget preparation, the City utilized several strategies to help mitigate the
uncertainty of COVID-19 impacts on the City’s finances. One of the strategies is to reduction of
expenditures and deferring major initiatives such as infrastructure rehabilitation for 6 months, until
more data becomes available. Based on better than projected performance through the end of FY20,
staff recommends that the carryovers include utilization of $737,500 of the available FY20 fund
balance over budget to release a portion of the rehab funding that has been deferred to allow work to
begin on priority projects such as sidewalk repairs. By adding the funding from FY20 fund balance,
the financial strategies are preserved to maintain the maximum flexibility in the FY21 budget.

Based on discussion with the Council Finance/Audit Committee on January 7th, an additional
$737,500 has been added to carryovers to allow a portion of the contracts to be released and work to
begin in January vs April - after the 6 month deferred implementation. This amount is reflected in the
budget appropriations column within the General Fund income statement and includes $700,000 for
Public Works - $625,000 for sidewalk rehabilitation and $75,000 for right-of-way planting, and
$37,500 for ENS for facilities rehabilitation- including priority repairs to fire stations.
After the carryovers and appropriation for infrastructure rehab, the general fund has a budgeted
ending balance of $29,785,923.
Utility Fund
At the end of FY20, the Utility Fund unaudited cash equivalents balance is $13.17 million which is
$1.36 million higher than the budgeted ending balance of $11.81 million. FY20 expenditures were
$3.6 million less than budgeted, while revenues were under budget by $2.28 million- primarily in
charges for services. Staff is evaluating consumption data by customer class to monitor the continued
impacts of COVID-19 and potential revenue impacts. To date, FY21 revenues, however, are
performing consistent with the rate model that was updated in phase I of the Utility Rate Study
project.
Carryover requests totaling $1,895,380 are recommended for the fund, to allow the department to
maintain service levels and proceed with items that were delayed due to COVID-19. This results in a
revised budgeted ending balance of $10.3 million for FY21, which is over the 25% policy
requirement.
The breakdown of utility carryovers by division is shown below:
Division Amount
Utility Admin 435,940
Water Distribution / Water 44,743
Production
WW Collection / WW 605,893
Treatment
Customer Service 578,766
Water Conservation 11,458
Surface Water 218,580
Total – Utility Fund $1,895,380
Airport Fund
The Airport Fund ended FY20 with unaudited cash equivalents of $3.2 million, which is $0.54
million higher than the budgeted ending balance of $2.65 million.
Carry-over requests in the Airport Fund total $384,570, and are offset by $63,316 in revenues. The
revised budgeted ending balance is $3.2 million after carryovers and is over the policy requirement.
The breakdown of airport carryovers by division is shown below:

Division Amount
Airport Administration $ 180,124
FBO Services 20,680
US Customs 141,130
Maintenance & Operations 42,636
Total – Airport Fund $ 384,570
Solid Waste Fund

The Solid Waste Fund has two items that need re-appropriation in FY20 totaling $30,105, one item
will be reimbursed and has revenue to offset the budget amendment for a net impact of $8,400.
Fleet Replacement Fund

The Fleet Replacement Fund ended FY20 with a cash equivalent balance of $3.46 million which is
$0.23 million higher than anticipated. A carryover of $86,129 is requested by the department for
equipment that was ordered but not received by year end. The revised budgeted ending balance will
be $1.84 million.
High Tech Replacement Fund

The Technology Replacement Fund ended FY20 with a cash equivalent balance of $3.33 million
which is $1.15 million higher than anticipated. A carryover of $441,457 is requested by the IT and
Police Departments for equipment that was ordered but not received by year end. The revised
budgeted ending balance will be $2.03M
Animal Shelter Donations Fund

A transfer from remaining funds in the FY20 general fund balance is recommended in order to
establish the beginning fund balance for the Animal Shelter Donations Fund, which has been
established in the FY21 budget. At the end of FY20, donations totaling $25,880 are unspent and will
be transferred to the new fund. The budgeted ending balance will be zero.
Public Education Grant (PEG) Fund

A transfer from remaining funds in the FY20 general fund balance is recommended in order to
establish the beginning fund balance for the PEG Fund, which has been established in the FY21
budget. At the end of FY20, PEG funds totaling $8,087 are unspent and will be transferred to the new
fund. The budgeted ending balance will be zero.
CDBG Fund
At the end of FY20 there are $20,622 in Community Development Block Grant funds that were
unspent from prior year funding - as well as an offsetting revenue reduction as these expenditures will
be reimbursed. The budget needs to be re-established for these funds in FY21 to allow for
completion of the grant projects. Expenditures will be offset by grant revenues for the same amount.
The budgeted ending balance will be zero.
Sugar Land Development Corporation

The Corporation ended Fiscal Year 2020 with revenues exceeding the amended budget by $279,978
and expenditures coming in $601,657 less than the amended budget. This results in revenues under
expenditures of $119,513 which is higher than anticipated by $881,635. The ending available fund

balance of $5,128,136 is $987,110 higher than the amended budget. Carryovers and budget
amendments approved on January 5, 2021 total $790,798 and include $670,000 for design of Owens
Rd and $120,798 in operating expenditures.
Sugar Land 4B Corporation

The SL4B Corporation ended Fiscal Year 2020 with an available fund balance of $6,414,506, which
is $3,580,184 higher than the budgeted ending balance. The SL4B board approved a budget
amendment on December 16, 2020 to appropriate the $3,580,184 in the FY21 budget. Carryovers
include $148,298 in operating expenditures and the remaining balance to Reserve for Opportunities.
The City Council approved the amendment on January 5, 2021.
Budget Amendments Approved by City Council

Since October 1, 2020 there have been a number of budget amendments approved by City Council.
The income statements reflect the following amounts so that they can be incorporated into the budget
ordinance. In the General Fund, the City Council approved two budget amendments reflecting
donations and a grant.
Date Description Expenditures Revenues

12/1/2020 Bulletproof Vest Partnership $ 7,452 $ 7,452
Grant
1/5/2021 Eagle Plaza and TEH Center 118,857 118,857
Improvements
General Fund Total $ 126,309 $ 126,309
City Council approved the following CIP related budget amendments:
Date Description Expenditures

10/6/2020 CWA2003 Ground Storage Tank $ -300,000
Rehabilitation
11/3/2020 CWW2101 Lift Station Capacity Analysis 87,227
11/17/2020 CMU1905 – Fuel Tank Replacement Phase 75,000
I
12/15/2020 CWA2101 – Greatwood Water Plant Backup 130,000
Generator
1/19/2021 Owens Rd Design (SLDC) 670,000
Capital Projects Fund Total $ 662,227
The Council approved budget amendments described above are incorporated into the income
statements for each fund.
Recommendation
Staff recommends approval of Ordinance No. 2220 amending the FY2021 budget to reflect carryover
funding from FY20 and Council approved budget amendments as described above.
BUDGET

CURRENT BUDGET:
ADDITIONAL FUNDING:
FUNDING SOURCE:
ATTACHMENTS:
Description Type
Ordinance No. 2220 Ordinances
Income Statements Other Supporting Documents

ORDINANCE NO. 2220
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS,
AMENDING THE FISCAL YEAR 2020-2021 BUDGET FOR THE CITY OF SUGAR
LAND, TEXAS, TO PROVIDE THAT THE REVISED BUDGET ADDRESS FUNDS
RELATING TO CERTAIN CAPITAL AND OPERATING BUDGET MATTERS AND
THAT THIS AMENDMENT BE ADOPTED AS THE BUDGETED AMOUNT FOR
THOSE FUNDS.
BE IT ORDAINED BY THE CITY COUNCIL

Section 1. That the budget of the City of Sugar Land, Texas for the fiscal year ending
September 30, 2021, as adopted by Ordinance No. 2214, is amended as shown in the attached
Exhibit A.
Section 2. That this ordinance is adopted upon one reading in compliance with Section
6.03 of the City Charter.
APPROVED on ___________________________, 2021.
__________________________
______________________________
Thomas Harris III
City Secretary

CITY OF SUGAR LAND
GENERAL FUND
INCOME STATEMENT
FY20 FY20 FY20 FY21 FY21
Current Unaudited Variance Adopted FY21 FY21 Revised
Budget Actual to Budget Budget Carryover Appropriations Budget
REVENUES
Property Taxes $ 31,056,122 $ 30,936,982 $ (119,140) $ 32,598,194 $ - $ - $ 32,598,194
Sales Tax 36,320,543 38,080,526 1,759,983 33,270,851 - - 33,270,851
Other Taxes 6,705,100 6,537,655 (167,445) 6,384,068 - - 6,384,068
Licenses & Permits 3,360,657 3,887,237 526,580 3,148,218 - - 3,148,218
Charges for Services 3,693,208 3,653,636 (39,572) 4,066,033 - - 4,066,033
Fines & Forfeitures 1,341,181 1,318,397 (22,784) 1,577,979 - - 1,577,979
Other 898,238 702,167 (196,071) 710,652 - 118,857 829,509
Intergovernmental 1,073,470 1,209,564 136,094 7,558,123 - 7,452 7,565,575
Interest Income 590,000 505,333 (84,667) 450,000 - - 450,000
Operating Revenues 85,038,519 86,831,496 1,792,977 89,764,118 - 126,309 89,890,427
Transfers In 6,878,759 6,774,790 (103,969) 7,640,543 - - 7,640,543
Non-operating Revenues 6,878,759 6,774,790 (103,969) 7,640,543 - - 7,640,543
Total Revenues 91,917,278 93,606,286 1,689,008 97,404,661 - 126,309 97,530,970
EXPENDITURES
General Government 14,921,812 14,145,052 776,760 14,724,644 201,001 - 14,925,645
Finance 4,516,604 4,378,231 138,373 4,665,305 12,219 - 4,677,524
Public Works 13,211,959 12,360,173 851,786 12,907,599 333,821 700,000 13,941,420
Parks & Recreation 4,911,077 4,684,227 226,850 5,154,115 39,798 118,857 5,312,770
Community Development 5,764,004 5,454,668 309,336 5,764,134 258,906 - 6,023,040
Environmental & Neighborhood SVC 6,491,545 6,180,022 311,523 6,418,633 52,298 37,500 6,508,431
Police Department 24,228,768 24,119,152 109,616 25,561,540 38,394 7,452 25,607,386
Fire Department 16,950,973 16,508,717 442,256 17,036,427 12,170 - 17,048,597
Departmental Expenditures 90,996,742 87,830,242 3,166,500 92,232,397 948,607 863,809 94,044,813
Transfers to other Funds 2,895,137 2,929,456 (34,319) 1,088,504 33,967 - 1,122,471
Miscellaneous 3,561,550 1,122,288 2,439,262 2,849,624 - - 2,849,624
Rebates & Assignments 2,504,056 2,457,474 46,582 2,704,190 - - 2,704,190
Non-departmental Expenditures 8,960,743 6,509,218 2,451,525 6,642,318 33,967 - 6,676,285
Total Expenditures 99,957,485 94,339,461 5,618,024 98,874,715 982,574 863,809 100,721,098
Revenues Over/(Under) Expenditures (8,040,207) (733,175) 7,307,032 (1,470,054) (982,574) (737,500) (3,190,128)
Fund Balance - Beginning 40,275,171 40,275,171 - 32,234,966 7,307,030 39,541,996
Accrued Sales/Franchise Taxes (7,242,699) (6,565,945) 676,754 (7,242,699) 676,754 (6,565,945)
Fund Balance - Ending $ 24,992,265 32,976,051 7,983,786 $ 23,522,213 $ 7,001,210 $ (737,500) $ 29,785,923
Ending Fund Balance- % of Oper Exp 29% 27% 35%

Fund Balance - Requirement 21,347,966 21,465,877 21,465,877
Over / (Under) Policy 3,644,299 2,056,336 8,320,046

CITY OF SUGAR LAND
ENTERPRISE FUND - UTILITY SYSTEM
INCOME STATEMENT
FY20 FY20 FY20 FY21 FY21 FY21
Current Unaudited Variance Adopted Carry-Over Revised
Budget Actual to Budget Budget Budget
REVENUES
Charges for Services $ 50,019,292 $ 47,872,031 $ (2,147,261) $ 55,069,188 $ - $ 55,069,188
Interest Income 392,633 329,930 (62,703) 131,001 - 131,001
Miscellaneous 1,857,565 1,783,785 (73,780) 739,426 - 739,426
Operating Revenues 52,269,490 49,985,746 (2,283,744) 55,939,615 - 55,939,615
Bond Proceeds 7,706,246 7,706,247 1 11,321,700 - 11,321,700
Transfers In 911,900 911,900 - 42,981 - 42,981
Non-operating Revenues 8,618,146 8,618,147 1 11,364,681 - 11,364,681
Total Revenues 60,887,636 58,603,892 (2,283,744) 67,304,296 - 67,304,296
EXPENDITURES
Utility Administration 1,762,425 1,121,398 641,027 778,856 435,940 1,214,796
Water Distribution 2,702,625 2,407,694 294,931 2,649,163 2,862 2,652,025
Water Production 2,760,331 2,630,805 129,526 2,959,244 41,881 3,001,125
Wastewater Collection 1,855,473 1,271,025 584,448 1,534,710 196,343 1,731,053
Wastewater Treatment 6,398,182 6,234,960 163,222 5,880,369 409,550 6,289,919
Customer Service 1,871,351 1,281,317 590,034 1,494,275 578,766 2,073,041
Water Quality 631,502 595,052 36,450 722,752 - 722,752
Water Conservation 220,432 140,207 80,225 297,001 11,458 308,459
Treasury 1,735,538 1,668,668 66,870 1,765,065 - 1,765,065
Surface Water 7,110,180 6,381,505 728,675 7,648,602 218,580 7,867,182
Total Operating Expenditures 27,048,039 23,732,631 3,315,408 25,730,037 1,895,380 27,625,417
Debt Service 16,811,031 16,806,485 4,546 17,967,289 - 17,967,289
Transfers Out 11,076,820 11,076,820 - 10,025,942 - 10,025,942
Miscellaneous 716,224 390,231 325,993 395,912 - 395,912
Contingency - - - 534,830 - 534,830
CIP Transfers 9,048,250 9,048,250 - 13,321,700 - 13,321,700
Total Non-Operating Expenditures 37,652,325 37,321,786 330,539 42,245,673 - 42,245,673
Total Expenditures 64,700,364 61,054,417 3,645,947 67,975,710 1,895,380 69,871,090
Revenues Over/(Under) Expenditures (3,812,728) (2,450,524) 1,362,204 (671,414) (1,895,380) (2,566,794)

Reserve - Debt Service (8,935,141) (8,935,141) - (9,247,585) - (9,247,585)
Fund Balance - Ending $ 11,817,126 $ 13,179,330 $ 1,362,204 $ 10,833,268 $ (533,176) $ 10,300,092

CITY OF SUGAR LAND
ENTERPRISE FUND - AIRPORT
INCOME STATEMENT
Budget Actuals to Budget Budget Budget
REVENUES
Fuel Sales $ 10,624,563 $ 9,754,411 $ (870,152) $ 11,880,383 $ - $ 11,880,383
Hangar Leases 1,753,969 1,770,412 16,443 1,751,477 - 1,751,477
Miscellaneous Revenues 795,748 943,631 147,883 830,864 - 830,864
Interest Income 107,748 65,740 (42,008) 102,000 - 102,000
Operating Revenues 13,282,028 12,534,195 (747,833) 14,564,724 - 14,564,724
Transfers In 154,135 191,560 37,425 179,435 - 179,435
Grant Proceeds 50,000 174,204 124,204 50,000 63,316 113,316
Bond Proceeds 1,959,101 1,824,551 (134,550) 765,000 - 765,000
Non-operating Revenues 2,163,236 2,190,315 27,079 994,435 63,316 1,057,751
Total Revenues 15,445,264 14,724,510 (720,754) 15,559,159 63,316 15,622,475
EXPENDITURES
Airport Administration 1,236,329 885,755 350,574 1,040,472 180,124 1,220,596
Airfield Operations 296,473 194,101 102,372 298,949 - 298,949
FBO Services 7,622,001 7,159,925 462,076 8,630,403 20,680 8,651,083
Café Select 222,219 219,702 2,517 267,239 - 267,239
U.S. Customs 391,937 225,155 166,782 301,760 141,130 442,890
Maintenance and Operations 1,280,670 1,080,070 200,600 1,136,689 42,636 1,179,325
Total Operating Expenditures 11,049,629 9,764,709 1,284,920 11,675,512 384,570 12,060,082
Debt Service 1,301,127 1,304,145 (3,018) 1,412,923 - 1,412,923
Miscellaneous 151,802 169,356 (17,554) 192,251 - 192,251
Transfers Out - Non-Bond CIP 402,196 402,196 - - - -
Transfers Out - Bond CIP 1,800,000 1,800,000 - 750,000 - 750,000
Operating Transfers Out 1,107,354 1,107,354 - 1,240,949 - 1,240,949
Total Non-Operating Expenditures 4,762,479 4,783,051 (20,572) 3,596,123 - 3,596,123
Total Expenditures 15,812,108 14,547,759 1,264,349 15,271,635 384,570 15,656,205
Revenues Over/(Under) Expenditures (366,844) 176,751 543,595 287,524 (321,254) (33,730)

Fund Balance - Beginning 3,887,117 3,887,117 - 3,520,273 543,595 4,063,868
Debt Service Reserve (861,884) (861,884) - (825,478) - (825,478)
Fund Balance - Ending 2,658,389 3,201,984 543,595 2,982,319 222,341 $ 3,204,660
CASH EQ. RESERVE RATIO (25% min) 52% 83% 55% 59%
BOND COVERAGE (1.25x min) 2.04 2.34 1.99 1.94
FUEL GALLONS SOLD 2,843,467 2,694,631 2,951,075 2,951,075

CITY OF SUGAR LAND
ENTERPRISE FUND ‐ SOLID WASTE
INCOME STATEMENT
REVENUES
Solid Waste Collections $ 8,140,429 $ 8,165,005 $ 24,576 $ 8,319,192 $ - $ 8,319,192
Franchise Fees 664,715 690,082 25,367 717,164 - 717,164
Commercial SW License 13,200 11,492 (1,708) 13,200 - 13,200
Miscellaneous 46,067 14,766 (31,301) 36,930 21,705 58,635
Recycling Programs 970 949 (21) 228 - 228
Interest Income 6,220 3,015 (3,205) 6,000 - 6,000
Grants - - - 26,901 - 26,901
Total Revenues 8,871,601 8,885,309 13,708 9,119,615 21,705 9,141,320
EXPENDITURES
Contractual Services 7,969,515 7,968,107 1,408 8,137,684 - 8,137,684
Salary & Benefits 260,960 270,021 (9,061) 271,175 - 271,175
Education Programs 14,407 14,184 223 23,708 - 23,708
Operations & Maintenance 89,388 62,522 26,866 129,391 30,105 159,496
Total Operating Expenditures 8,334,270 8,314,835 19,435 8,561,958 30,105 8,592,063
Miscellaneous 70,000 - 70,000 70,000 - 70,000
Transfers Out 418,491 418,491 - 456,745 - 456,745
Total Non-Operating Expenditures 488,491 418,491 70,000 526,745 - 526,745
Total Expenditures 8,822,761 8,733,326 89,435 9,088,703 30,105 9,118,808
Revenues Over/(Under) Expenditures 48,840 151,984 103,144 30,912 (8,400) 22,512

Fund Balance - Beginning 710,194 710,194 - 759,034 103,144 862,178
Fund Balance - Ending $ 759,034 $ 862,178 $ 103,144 $ 789,946 $ 94,744 $ 884,690

CITY OF SUGAR LAND
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT
INCOME STATEMENT
REVENUES
CDBG $ 193,600 $ 172,978 $ (20,622) $ - $ 20,622 $ 20,622
Interest Income - - - - - -
Miscellaneous - - - - - -
Total Revenues 193,600 172,978 (20,622) - 20,622 20,622
EXPENDITURES
Professional Services 17,416 - 17,416 - 20,622 20,622
Other Contractual - - - - - -
Capital 176,184 172,978 3,206 - - -
Total Expenditures 193,600 172,978 20,622 - 20,622 20,622
Revenues Over/(Under) Expenditures - - - - - -

Fund Balance - Beginning - - - - - -
Fund Balance - Ending $ - $ - $ - $ - $ - $ -

CITY OF SUGAR LAND
FLEET REPLACEMENT FUND
INCOME STATEMENT
REVENUES
Sale of Property $ 42,500 $ 36,301 $ (6,199) $ 125,000 $ - $ 125,000
Interest Income 60,000 40,965 (19,035) 60,000 - 60,000
Transfers From Other Funds 1,770,821 1,770,821 - 731,636 - 731,636
Miscellaneous 70,000 26,834 (43,166) 70,000 - 70,000
Total Revenues 1,943,321 1,874,921 (68,400) 986,636 - 986,636
EXPENDITURES
Vehicles & Contractual Service 2,215,717 1,913,461 302,256 1,024,095 86,129 1,110,224
Transfers Out - - - 1,500,000 - 1,500,000
Revenues Over/(Under) Expenditures (272,396) (38,540) 233,856 (1,537,459) (86,129) (1,623,588)

Fund Balance - Ending $ 3,229,700 $ 3,463,556 $ 233,856 $ 1,692,241 $ 147,727 $ 1,839,968

CITY OF SUGAR LAND
HIGH-TECH REPLACEMENT FUND
INCOME STATEMENT
REVENUES
Sale of Capital Property $ 3,704 $ 3,704 $ - $ 2,170 $ - $ 2,170
Interest Income 53,000 32,275 (20,725) 53,000 - 53,000
Transfers in 1,290,048 1,290,048 - 671,778 - 671,778
Total Revenues 1,346,752 1,326,027 (20,725) 726,948 - 726,948
EXPENDITURES
Equipment & Contractual Services 1,798,119 631,293 1,166,826 1,569,015 441,457 2,010,472
Total Expenditures 1,798,119 631,293 1,166,826 1,569,015 441,457 2,010,472
Revenues Over/(Under) Expenditures (451,367) 694,734 1,146,101 (842,067) (441,457) (1,283,524)

Fund Balance - Ending $ 2,190,550 $ 3,336,651 $ 1,146,101 $ 1,348,483 $ 704,644 $ 2,053,127

CITY OF SUGAR LAND
ANIMAL SHELTER DONATIONS
INCOME STATEMENT
REVENUES
Donations $ - $ - $ - $ 50,000 $ - $ 50,000
Interest Income - - - - - -
Transfers In - - - - 25,880 25,880
Total Revenues - - - 50,000 25,880 75,880
EXPENDITURES
Maintenance and Operations - - - 50,000 25,880 75,880
Total Expenditures - - - 50,000 25,880 75,880


CITY OF SUGAR LAND
PUBLIC EDUCATION GRANT
INCOME STATEMENT
REVENUES
PEG Funds $ - $ - $ - $ 170,000 $ - $ 170,000
Interest Income - - - - -
Transfers In - - - - 8,087 8,087
Total Revenues - - - 170,000 8,087 178,087
EXPENDITURES
Maintenance and Operations - - - 170,000 8,087 178,087
Total Expenditures - - - 170,000 8,087 178,087


CITY OF SUGAR LAND
SUGAR LAND DEVELOPMENT CORPORATION
INCOME STATEMENT
2020 2020 FY20 FY21 FY21 FY21
REVENUES
Sales Tax $ 6,053,424 $ 6,346,754 $ 293,330 $ 5,545,142 $ - $ 5,545,142
Interest Income 124,096 108,015 (16,081) 125,000 - 125,000
Miscellaneous 49,860 52,589 2,729 - - -
TIRZ#1 1,250,000 1,250,000 - 1,500,000 - 1,500,000
Total Revenues 7,477,380 7,757,358 279,978 7,170,142 - 7,170,142
EXPENDITURES
Economic Development Program 935,915 473,671 462,244 597,017 45,798 642,815
Economic Development Incentives 1,167,500 811,515 355,985 1,700,000 75,000 1,775,000
Contractual Services 17,740 17,490 250 9,790 - 9,790
Total Operating Expenditures 2,121,155 1,302,677 818,478 2,306,807 120,798 2,427,605
Debt Service 4,088,984 4,088,984 0 4,053,721 - 4,053,721
Miscellaneous - 322,589 (322,589) - - -
Capital Projects Reimbursement 1,543,637 1,543,637 0 - 670,000 670,000
Transfers to Other Funds 724,752 618,985 105,767 764,123 - 764,123
Total Non-Operating Expenditures 6,357,373 6,574,194 (216,821) 4,817,844 670,000 5,487,844
Revenues Over/(Under) Expenditures (1,001,148) (119,513) 881,635 45,491 (790,798) (745,307)

Accrued Sales Tax (1,116,802) (1,011,328) 105,474 (1,116,802) 105,474 (1,011,328)
Debt Service Reserve (4,044,391) (4,044,391) - (3,992,302) - (3,992,302)
Fund Balance - Ending $ 4,141,026 $ 5,128,136 $ 987,110 $ 4,238,606 $ 196,312 $ 4,434,918
Min. Fund Balance (15% of Budgeted Sales Tax) $ 908,014 $ 908,014 $ 831,771 $ 831,771
Over/Under Policy 3,233,012 4,220,122 3,406,835 3,603,146
Bond Coverage Ratio (>1.25x) 1.52 1.59 1.41 1.41

CITY OF SUGAR LAND
SUGAR LAND 4B CORPORATION
INCOME STATEMENT
Budget Actual to Budget Budget Budget
REVENUES
Sales Tax $ 6,053,424 $ 6,346,754 $ 293,330 $ 5,545,142 $ - $ 5,545,142
Interest Income 134,664 95,775 (38,889) 125,000 - 125,000
TIRZ#1 156,886 156,886 - 145,300 - 145,300
Miscellaneous 80,000 80,000 - 80,000 - 80,000
Operating Revenues 6,424,974 6,679,415 254,441 5,895,442 - 5,895,442
Bond Proceeds 27,157,311 27,157,311 - - - -
Non-operating Revenues 27,157,311 27,157,311 - - - -
Total Revenues 33,582,285 33,836,726 254,441 5,895,442 - 5,895,442
EXPENDITURES
Economic Development Program 561,620 365,374 196,246 711,620 148,298 859,918
Contractual Services 12,200 13,789 (1,589) 12,200 - 12,200
Total Operating Expenditures 573,820 379,163 194,657 723,820 148,298 872,118
Debt Service 3,042,596 3,042,596 - 3,020,625 - 3,020,625
Incentives 787,500 766,322 21,179 37,500 - 37,500
Payment to Escrow Account 26,715,744 26,715,744 - - - -
Insurance Costs 430,522 434,358 (3,836) - - -
Reserve for Opportunities 2,946,800 - 2,946,800 1,550,000 3,431,886 4,981,886
Transfers to Capital Projects 763,200 763,200 - 650,000 - 650,000
Transfers to Other Funds 818,835 757,367 61,468 881,983 - 881,983
Total Non-Operating Expenditures 35,505,197 32,479,586 3,025,611 6,140,108 3,431,886 9,571,994
Total Expenditures 36,079,017 32,858,749 3,220,268 6,863,928 3,580,184 10,444,112
Revenues Over/(Under) Expenditures (2,496,732) 977,977 3,474,709 (968,486) (3,580,184) (4,548,670)

Accrued Sales Tax (1,116,802) (1,011,327) 105,475 (1,116,802) 105,475 (1,011,327)
Debt Service Reserve (2,989,565) (2,989,565) - (2,427,000) - (2,427,000)
Fund Balance - Ending $ 2,834,322 $ 6,414,506 $ 3,580,184 $ 2,428,401 $ 0 $ 2,428,401
Minimum Fund Balance 908,014 908,014 831,771 831,771

Over/Under Policy 1,926,308 5,506,493 1,596,630 1,596,630
Bond Coverage Ratio (>1.25x) 2.05 2.13 2.14 2.14

CITY OF SUGAR LAND
CAPITAL PROJECTS FUNDS
SUMMARY SCHEDULE OF REVENUES AND EXPENDITURES
FY21 Budget Amendments

Revised -
Development Total Development Total Capital
General CIP Corporations Utility CIP Airport CIP Capital Projects General CIP Corporations Utility CIP Projects
Revenues
Bond Proceeds $ 11,776,000 $ - $ 11,321,700 $ 750,000 $ 23,847,700 $ - $ - $ - $ 23,847,700
Transfers In - 650,000 2,000,000 - 2,650,000 - 670,000 - 3,320,000
Donations 1,000,000 - - - 1,000,000 - - - 1,000,000
Interest Income 300,000 - 200,000 2,000 502,000 - - - 502,000
Total Revenues 13,076,000 650,000 13,521,700 752,000 27,999,700 - 670,000 - 28,669,700
Expenditures
Airport - - - 750,000 750,000 - - - 750,000
Drainage 11,176,000 - - - 11,176,000 - - - 11,176,000
Municipal - 250,000 - - 250,000 75,000 - - 325,000
Parks 1,000,000 200,000 - - 1,200,000 - - - 1,200,000
Streets 600,000 - - - 600,000 - 670,000 - 1,270,000
Traffic - 200,000 - - 200,000 - - - 200,000
Surface Water - - 2,384,500 - 2,384,500 - - - 2,384,500
Water - - 7,732,000 - 7,732,000 - - (170,000) 7,562,000
Wastewater - - 3,361,000 - 3,361,000 - - 87,227 3,448,227
Prior Year Project Close Out - - - - - (75,000) - - (75,000)
Total CIP Expenditures 12,776,000 650,000 13,477,500 750,000 27,653,500 - 670,000 (82,773) 28,240,727
Issuance Costs 300,000 - - - 300,000 - - - 300,000
Transfers Out - - - - - - - - -
Non-operating Expenditures 300,000 - - - 300,000 - - - 300,000
Total Expenditures 13,076,000 650,000 13,477,500 750,000 27,953,500 - 670,000 (82,773) 28,540,727
Revenues Over/(Under) Expenditures - - 44,200 2,000 46,200 - - 82,773 128,973

Fund Balance - Beginning 4,384,054 - 8,685,924 143,054 13,213,032 - - - 13,213,032
Reserved Funds (1,726,461) (1,726,461) - - - (1,726,461)
Fund Balance - Ending $ 2,657,593 $ - $ 8,730,124 $ 145,054 $ 11,532,771 $ - $ - $ 82,773 $ 11,615,544

JANUARY 19, 2021
AGENDA REQUEST NO: VI.A.
INITIATED BY: Cam Yearty, Public Private Partnership Manager
PRESENTED BY: Elizabeth Huff, Director of Economic Development
AGENDA CAPTION:
Consideration of and action on authorization of Amendment No. 1 to the Coronavirus Aid,
Relief, and Economic Security (CARES) Act Funding Allocation Distribution Agreement by
and between the City of Sugar Land, Texas, and Fort Bend County, Texas; and authorization
of a Fiscal Year 2021 General Fund budget amendment in the amount of $2,000,000 in
revenues and expenditures.
RECOMMENDED ACTION:
Approval of Amendment to CARES Act Funding Allocation Distribution Agreement
between the City of Sugar Land and Fort Bend County and approval of a General Fund
budget amendment in the amount of $2,000,000 in revenues and expenditures.
EXECUTIVE SUMMARY:
On June 16, 2020, Council approved the CARES Act Funding Allocation Distribution
Agreement with Fort Bend County in the amount of $6,523,000. This agreement is the
mechanism through which the County would distribute funds allocated to it from the federal
CARES Act to the City of Sugar Land. On December 15, 2020, Fort Bend County
Commissioners Court approved the allocation of an additional $2,000,000 to the City of
Sugar Land in CARES Act funding. This Amendment updates the agreement to reflect the
additional funding, bringing the total allocation for the City to $8,523,000.

With that, staff recommends that the City Council approve the Amendment to the CARES
Act Funding Allocation Distribution Agreement by and between Fort Bend County and the
City of Sugar Land. A budget amendment is recommended in the General Fund to reflect the
$2,000,000 in revenues and appropriation of $2,000,000 in expenditures to support the
programs to be funded through this amendment. This budget amendment is not included in
Ordinance No. 2220 and will be included in a future ordinance capturing budget amendments
approved by City Council.
BUDGET
CURRENT BUDGET: N/A
ADDITIONAL FUNDING: $2,000,000
FUNDING SOURCE:Fort Bend County
ATTACHMENTS:
Description Type
Amendment to CARES Act Funding Agreement Contracts

THE STATE OF TEXAS §
§ KNOW ALL MENT BY THESE PRESENTS
COUNTY OF FORT BEND §
AMENDMENT TO CARES ACT FUNDING

ALLOCATION DISTRIBUTION AGREEMENT
FORT BEND COUNTY AND THE CITY OF SUGAR LAND
THIS AMENDMENT, is made and entered into pursuant to the Interlocal

Cooperation Act, Chapter 791 of the TEXAS GOVERNMENT CODE, by and between the
City of Sugar Land, a municipal corporation and home-rule city of the State of Texas,
principally situated in Fort Bend County, acting by and through its City Council, (“City”),
and Fort Bend County, a body corporate and politic under the laws of the State of Texas,
acting by and through its Commissioners Court, (“County”). The City and the County
may be referred to collectively as the “Parties”.
RECITALS
WHEREAS, the Parties executed and accepted that certain CARES Act Funding
Allocation Distribution Agreement on June 16, 2020, (hereinafter the “Agreement”); and
WHEREAS, the Parties desire to amend the Agreement to increase the amount of
the Local Allocation to be distributed by the County to the City.
NOW, THEREFORE, the Parties do mutually agree as follows:

1. The amount to be reimbursed by the County to the City for Eligible
Expenditures from the Local Allocation hereby be increased by an additional
$2,000,000.00 in accordance with the CARES Act.
2. The maximum amount available to the City for reimbursement of Eligible

Expenses under the Agreement shall not exceed $8,523,000.00.
Except as provided herein, all terms and conditions of the Agreement shall remain
unchanged.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]
Amendment to CARES Act Funding Allocation Distribution Agreement

CITY OF SUGAR LAND
Page 1 of 3
IN WITNESS WHEREOF, the parties hereto have signed or have caused their
respective names to be signed to multiple counterparts to be effective on the date signed
by the final party.
FORT BEND COUNTY, TEXAS
____________________________________
KP George, County Judge
12/15/2020
Date _______________________________
ATTEST:
____________________________________
Laura Richard, County Clerk
AUDITOR’S CERTIFICATE
I hereby certify that funds are available in the amount of $______________

8,523,000.00 to
accomplish and pay the obligation of Fort Bend County under the terms of this
Agreement.
__________________________________
Robert Ed Sturdivant, Fort Bend County Auditor

CITY OF SUGAR LAND
Page 2 of 3
CITY OF SUGAR LAND
______________________________
Michael W. Goodrum, City Manager
Date: ________________________
ATTEST:
______________________________
I:\Marcus\Disaster Response and Recovery\COVID-1 9 \CARES Act Funding Agreements\Amend 1 - CARES Act Funding Agreement - Sugar Land.docx .12/3/2020. 20-Aud-500150 -A1

CITY OF SUGAR LAND
Page 3 of 3
JANUARY 19, 2021
AGENDA REQUEST NO: VII.A.
INITIATED BY: Cam Yearty, Public Private Partnership Manager
PRESENTED BY: Elizabeth Huff, Director of Economic Development
AGENDA CAPTION:
FIRST CONSIDERATION: Consideration of and action on CITY OF SUGAR LAND
ORDINANCE NO. 2221: AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SUGAR LAND, TEXAS, ESTABLISHING A BUSINESS SUPPORT
PROGRAM, AUTHORIZING THE CITY MANAGER TO APPROVE CONTRACTS
AND AGREEMENTS IN CONNECTION WITH THE PROGRAM WITHOUT
COMBINED TOTAL OF THE CONTRACTS AND AGREEMENTS APPROVED IN
CONJUNCTION WITH THE PROGRAM DOES NOT EXCEED $2,000,000; AND
SETTING FORTH OTHER PROVISIONS RELATED THERETO.
RECOMMENDED ACTION:
Approve First Consideration of Ordinance No. 2221 establishing a Business Support
Program utilizing Fort Bend County funds and granting the City Manager authority to
approve contracts and agreements up to $250,000 when funded by the City's Business
Support Program.
EXECUTIVE SUMMARY:
In June 2020, the Economic Development Department launched the award-winning,
#AllInForSLTX Campaign as an innovative way to provide support for Sugar Land

businesses impacted by the COVID-19 pandemic. Since then, the Department has continued
the momentum & innovative spirit garnered by the #AllInForSLTX initiative.
During the September 22nd City Council fall strategic planning work session, the City
Council expressed excitement and enthusiasm toward implementing innovative placemaking,
business partnerships, and events in Sugar Land. As such, the Economic Development staff
expanded the #AllInForSLTX initiative to begin building an ecosystem for innovation and
creative ideas that showcase Sugar Land entering a new growth phase.
On December 15, 2020, Fort Bend County approved the allocation of $2,000,000 for the
City of Sugar Land to implement a Business Support Program. Economic Development Staff
has developed a work program consisting of four project categories which were initially
conceived as part of the #AllInForSLTX Initiative:
Sweet Cash Supplement

Business Resiliency Initiative
Pop-Up Improvements & Expansion of Public Art at Commercial Locations
Business Innovation Training & Coaching
In order to swiftly and fully utilize the allocated Fort Bend County funds, staff is requesting
the approval of Ordinance 2221 to allow the City Manager to sign all contracts and
agreements necessary to implement the Business Support Program up to $250,000 per
contract or agreement. Currently, staff anticipates that this will include the contract for the
Business Innovation Training & Coaching; as we begin to implement the Program, this may
also come to include agreements resulting from the open call for projects and, potentially,
contracts entered-into to develop and activate pop-up improvements.
Staff will continue to follow applicable state procurement laws, and this extended authority
only applies to contracts and agreements entered into pursuant to this Program.
Understanding that Council has a deep interest in the success of the Business Support
Program and a responsibility for accounting of the program to our residents, staff will submit
a report to Council detailing the expenditures made under the Program.
Staff recommends approval of First Reading of Ordinance No. 2221. The Second Reading
will be placed on the January 26, 2021, agenda for consideration.
BUDGET
EXPENDITURE REQUIRED: $0
CURRENT BUDGET: $0

ADDITIONAL FUNDING:
FUNDING SOURCE:
ATTACHMENTS:
Description Type
Ordinance 2221 Ordinances

ORDINANCE NO. 2221
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND,

TEXAS, ESTABLISHING A BUSINESS SUPPORT PROGRAM,
AUTHORIZING THE CITY MANAGER TO APPROVE CONTRACTS AND
AGREEMENTS IN CONNECTION WITH THE PROGRAM WITHOUT
COMBINED TOTAL OF THE CONTRACTS AND AGREEMENTS
APPROVED IN CONJUNCTION WITH THE PROGRAM DOES NOT
EXCEED $2,000,000; AND SETTING FORTH OTHER PROVISIONS
RELATED THERETO.
WHEREAS, the COVID-19 pandemic has impacted all aspects of daily life for
nearly 12 months; and
WHEREAS, businesses across the City of Sugar Land continue to experience

reduced revenues; and
WHEREAS, the City Council desires to establish a Business Support Program

that infuses resources to small businesses as they strive to sustain operations, supports
an environment of business innovation, expands placemaking initiatives in support of
businesses and commercial areas, and helps businesses rebound from the COVID-19
pandemic and resulting economic impact; and
WHEREAS, the Program is available to businesses located with the City and
the City’s extraterritorial jurisdiction; and
WHEREAS, Fort Bend County has allocated $2,000,000 to the City to fund the
Program; and
WHEREAS, the City Council desires to use the funding from Fort Bend County
to fund the Program; and
WHEREAS, in conjunction with approving the Program, and for efficient

implementation of the Program, the City Council desires to grant authorization to the
City Manager to execute contracts and agreements in connection with the Program
without specific Council approval if the individual contract or agreement does not
exceed $250,000 and the combined total of all contracts and agreements entered into
pursuant to the Project, does not exceed $2,000,000; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL

Section 1. That the City Council adopts the findings and recitals set forth in the
preamble of this Ordinance.

Section 2. That the City Council establishes a Business Support Program to infuse
resources to small businesses as they strive to sustain operations, supports an
environment of business innovation, expands placemaking initiatives in support of
businesses and commercial areas, and helps businesses to rebound from the COVID-19
pandemic and resulting economic impact.
Section 3. That the City Council authorizes the City Manager to approve
contracts and agreements in support of the Program without specific City Council
approval if such contracts and agreements are intended to further the goals and
objectives of the Program, do not exceed $250,000 individually and $2,000,000
cumulatively, and are entered into in accordance and compliance with State law.
Section 4. That this Ordinance supersedes Section 2-11(a)(7)a. of the Code of

Ordinances, City of Sugar Land, Texas, as to this Program only.
Section 5. That the provisions of this Ordinance are severable and the invalidity
of any part of this ordinance will not affect the validity of the remainder of the
ordinance.
APPROVED on ______________________, 2021.
ADOPTED on _______________________, 2021.
__________________________________
ATTEST:
_____________________________
APPROVED AS TO FORM:

JANUARY 19, 2021
AGENDA REQUEST NO: VIII.A.
INITIATED BY: Jennifer Brown, Director of Finance
PRESENTED BY: Jennifer Brown, Director of Finance
RESPONSIBLE DEPARTMENT: Finance
AGENDA CAPTION:
Consideration of and action on authorizing issuance of Fort Bend County Municipal Utility
District No. 136 Unlimited Tax Bonds Series 2021 in the amount of $2,330,000.
RECOMMENDED ACTION:
Consideration and approval of the issuance of Fort Bend MUD No.136 Unlimited Tax
Bonds in the amount of $2,330,000.
EXECUTIVE SUMMARY:
Background
Fort Bend County Municipal Utility District 136 is a political subdivision of the State of
Texas, created by order of the Commission on Environmental Quality (TCEQ). The District
is wholly incorporated within the corporate limits of the City of Sugar Land. The District is
part of the 2,018-acre master-planned community of Telfair, consisting of the District, three
other municipal utility districts, and an overlapping levee improvement district.
Approximately 2,839 single-family residential lots have been constructed in Telfair. This
District contains 139 acres and is 100% commercial properties- no residential property lies
within MUD 136.
All of the land within Telfair lies within Fort Bend Levee Improvement District No. 17
(“LID 17”), which encompasses approximately 2,330 acres of land. LID 17 has constructed a

system of a levee, detention ponds, channels, and other drainage improvements, reclaiming
land from the Brazos River flood-plain, including the land within the District, as well as
public recreational facilities, and has financed the acquisition and/or construction of these
facilities with the proceeds of its unlimited tax bonds.
The proposed issue meets the requirements set forth in City Council policy 5000-03:
Creation, Operations, and Dissolution of Special Purpose Districts located within the City of
Sugar Land or its Extraterritorial Jurisdiction, adopted by Resolution No. 11-07.
This issue, as well as other debt issued by the District- is not an obligation of the City of
Sugar Land and is supported through a property tax levy on properties within the District.
Assessed Value and Tax Rate

The District has a 2020 Taxable Assessed Valuation of $119.4 million and adopted a 2020
tax rate of 42 cents per $100 taxable value. The 2021 preliminary estimated value is $130.2
million. Similar to other in-City MUDs, the District receives a rebate from the City equal to
50% of the City property taxes paid on properties within the District.
Proposed Issue
Proceeds from the Bonds will be used to pay construction costs related to water, wastewater
and drainage facilities within the District, which will serve the following developments:
Description Amount
Construction Costs
Crossing at Telfair Phase I - Bonaventure Way $ 72,732
Crossing at Telfair Section 4 - Phase II 844,152
Crossing at Telfair Office Park 393,266
Engineering Fees 201,268
COSL Regional Connection Charges 372,200
Total Construction Costs 1,883,618
Non-Construction Costs
Underwriters Discount (est at 3%) 69,900
Est. Developer Interest 185,865
Total Non-Construction Costs 255,765
Issuance Costs & Fees 190,617

Total Bond Issue $2,330,000
The District is proposing repayment of principal beginning in 2022 and is not extending the
current maturity schedule, which runs through 2037. Interest payments would begin in
September 2021.

Prior to the sale of these bonds, the District must obtain a letter from the Mayor to the effect
that the District is in compliance with appropriate clauses of Chapter 5 of the Code of
Ordinances. The District is requesting City Council approval of the proposed issue, after
which the Mayor will sign the requested letter. The District plans to sell the bonds in early
February 2021.
Action Requested
Staff has reviewed the proposed bond issue and recommends that the City Council approve
the issuance as requested by the District.
The District’s Financial Advisor, Masterson Advisors LLC, will be available to answer
questions regarding the proposed issue.
BUDGET
CURRENT BUDGET: N/A
FUNDING SOURCE:N/A
ATTACHMENTS:
Description Type
Preliminary Official Statement Preliminary Official Statement (POS)
Staff Memorandum Other Supporting Documents

PRELIMINARY OFFICIAL STATEMENT DATED JANUARY 11, 2021
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official
Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any
This PRELIMINARY OFFICIAL STATEMENT is subject to completion and amendment and is intended solely for the solicitation of
initial bids to purchase the Bonds. Upon sale of the Bonds, the OFFICIAL STATEMENT will be completed and delivered to the
Underwriter.
IN THE OPINION OF BOND COUNSEL, UNDER EXISTING LAW, INTEREST ON THE BONDS IS EXCLUDABLE FROM GROSS
INCOME FOR FEDERAL INCOME TAX PURPOSES AND INTEREST ON BONDS IS NOT SUBJECT TO THE ALTERNATIVE MINIMUM
TAX ON INDIVIDUALS. SEE “TAX MATTERS” FOR A DISCUSSION OF THE OPINION OF BOND COUNSEL.
THE BONDS WILL BE DESIGNATED AS “QUALIFIED TAX-EXEMPT OBLIGATIONS” FOR FINANCIAL INSTITUTIONS. SEE “TAX
MATTERS—QUALIFIED TAX-EXEMPT OBLIGATIONS.”
NEW ISSUE-Book-Entry Only
$2,330,000
FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 136
(A political subdivision of the State of Texas located within Fort Bend County)
UNLIMITED TAX BONDS
SERIES 2021
The bonds described above (the “Bonds”) are obligations solely of Fort Bend County Municipal Utility District No. 136 (the “District”) and are
not obligations of the State of Texas, Fort Bend County, the City of Sugar Land, or any entity other than the District.
jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The Bonds, when issued, will constitute valid and legally binding obligations of the District and will be payable from the proceeds of an annual ad
valorem tax levied, without legal limitation as to rate or amount, against all taxable property within the District. THE BONDS ARE SUBJECT TO
SPECIAL RISK FACTORS DESCRIBED HEREIN. See “RISK FACTORS.”
Dated Date: March 1, 2021 Due: September 1, as shown below
Principal of the Bonds is payable at maturity or earlier redemption at the principal payment office of the paying agent/registrar, initially The Bank
of New York Mellon Trust Company, N.A., Dallas, Texas (the “Paying Agent/Registrar”) upon surrender of the Bonds for payment. Interest on
the Bonds accrues from March 1, 2021, and is payable each September 1 and March 1, commencing September 1, 2021, until maturity or prior
redemption. The Bonds will be issued only in fully registered form in denominations of $5,000 each or integral multiples thereof. The Bonds are
subject to redemption prior to their maturity, as shown below.
The Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”), which
will act as securities depository for the Bonds. Beneficial owners of the Bonds will not receive physical certificates representing the Bonds, but
will receive a credit balance on the books of the nominees of such beneficial owners. So long as Cede & Co. is the Registered Owner of the Bonds,
the principal of and interest on the Bonds will be paid by the Paying Agent/Registrar directly to DTC, which will, in turn, remit such principal and
interest to its participants for subsequent disbursement to the beneficial owners of the Bonds. See “BOOK-ENTRY-ONLY SYSTEM.”
MATURITY SCHEDULE
Initial Initial
Due Principal Interest Reoffering CUSIP Due Principal Interest Reoffering CUSIP
(Sept. 1) Amount (a) Rate Yield (d) Number (c) (Sept. 1) Amount (a) Rate Yield (d) Number (c)
2022 $ 150,000 2030 $ 145,000 (b)
2023 150,000 2031 145,000 (b)
2024 145,000 2032 145,000 (b)
2025 145,000 2033 145,000 (b)
2026 145,000 2034 145,000 (b)
2027 145,000 (b) 2035 145,000 (b)
2028 145,000 (b) 2036 145,000 (b)
2029 145,000 (b) 2037 145,000 (b)
(a) The Underwriter may designate one or more maturities of term bonds. See accompanying “Official Notice of Sale.”
(b) Bonds maturing on or after September 1, 2027, are subject to redemption at the option of the District prior to their maturity dates in whole, or from time to
time in part, on September 1, 2026, or on any date thereafter at a price of par value plus unpaid accrued interest from the most recent Interest Payment Date
(as herein defined) to the date fixed for redemption. See “THE BONDS—Redemption Provisions.”
(c) CUSIP Numbers have been assigned to the Bonds by CUSIP Service Bureau and are included solely for the convenience of the purchasers of the Bonds.
Neither the District nor the Underwriter shall be responsible for the selection or correctness of the CUSIP Numbers set forth herein.
(d) Initial yield represents the initial offering yield to the public, which has been established by the Underwriter (as herein defined) for offers to the public and
which subsequently may be changed.
The Bonds are offered by the Underwriter subject to prior sale, when, as and if issued by the District and accepted by the Underwriter, subject,
among other things, to the approval of the Bonds by the Attorney General of Texas and the approval of certain legal matters by Allen Boone
Humphries Robinson LLP, Houston, Texas, Bond Counsel. See “LEGAL MATTERS.” Delivery of the Bonds in book-entry form through the
facilities of DTC is expected on or about March 10, 2021.
Bids Due: Monday, February 8, 2021 at 10:15 A.M., Houston Time in Houston, Texas
Bid Award: Monday, February 8, 2021 at 11:45 A.M., Houston Time in Houston, Texas

TABLE OF CONTENTS
MATURITY SCHEDULE .................................................. 1 FINANCIAL INFORMATION CONCERNING THE
DISTRICT (UNAUDITED) .......................................... 28
USE OF INFORMATION IN OFFICIAL STATEMENT3 Investments of the District ............................................... 28
SALE AND DISTRIBUTION OF THE BONDS .............. 4 Outstanding Debt ............................................................. 29
Award of the Bonds ........................................................... 4 Debt Service Requirements ............................................. 29
Prices and Marketability .................................................... 4 Estimated Overlapping Debt............................................ 30
Securities Laws .................................................................. 4 Overlapping Taxes........................................................... 30
OFFICIAL STATEMENT SUMMARY ............................ 5 Operating Fund ................................................................ 31
SELECTED FINANCIAL INFORMATION TAX DATA ........................................................................ 32
(UNAUDITED) ................................................................. 9 Debt Service Tax ............................................................. 32
RISK FACTORS................................................................ 10 Maintenance Tax ............................................................. 32
General ............................................................................. 10 Historical Tax Rate Distribution ...................................... 32
Infectious Disease Outlook (COVID-19)......................... 10 Additional Penalties ......................................................... 32
Extreme Weather Events; Hurricane Harvey ................... 11 Historical Tax Collections ............................................... 32
Specific Flood Type Risks ............................................... 11 Tax Roll Information ....................................................... 33
Possible Impact on District Tax Rates ............................. 11 Principal Taxpayers ......................................................... 33
Dependence on Principal Taxpayers ................................ 12 Tax Adequacy for Debt Service ...................................... 34
Utility Agreement with Sugar Land ................................. 12 TAXING PROCEDURES ................................................. 34
Overlapping Debt and Taxes ........................................... 12 Authority to Levy Taxes .................................................. 34
Tax Collections Limitations and Foreclosure Remedies.. 13 Property Tax Code and County-Wide Appraisal District 34
Registered Owners’ Remedies and Bankruptcy Limitations Property Subject to Taxation by the District.................... 34
...................................................................................... 13 Tax Abatement ................................................................ 35
Future Debt ...................................................................... 14 Valuation of Property for Taxation .................................. 36
Environmental Regulation ............................................... 14 District and Taxpayer Remedies ...................................... 36
Marketability of the Bonds .............................................. 15 Levy and Collection of Taxes .......................................... 37
Changes in Tax Legislation ............................................. 16 Rollback of Operation and Maintenance Tax Rate .......... 37
Continuing Compliance with Certain Covenants ............. 16 District’s Rights in the Event of Tax Delinquencies........ 38
THE BONDS ...................................................................... 16 The Effect of FIRREA on Tax Collections of the District38
Description ....................................................................... 16 LEGAL MATTERS .......................................................... 39
Method of Payment of Principal and Interest .................. 16 Legal Proceedings............................................................ 39
Source of and Security for Payment ................................ 16 No Material Adverse Change .......................................... 39
Funds................................................................................ 16 No-Litigation Certificate ................................................. 39
Redemption Provisions .................................................... 17 TAX MATTERS ................................................................ 39
Authority for Issuance...................................................... 17 Tax Accounting Treatment of Original Issue Discount
Registration and Transfer ................................................. 18 Bonds ........................................................................... 40
Lost, Stolen or Destroyed Bonds ..................................... 18 Qualified Tax-Exempt Obligations.................................. 41
Replacement of Paying Agent/Registrar .......................... 18 PREPARATION OF OFFICIAL STATEMENT ........... 41
Issuance of Additional Debt............................................. 18 Sources and Compilation of Information......................... 41
Dissolution of the District .............................................. 19 Financial Advisor ............................................................ 41
Consolidation .................................................................. 19 Consultants ...................................................................... 42
Remedies in Event of Default .......................................... 19 Updating the Official Statement ...................................... 42
Legal Investment and Eligibility to Secure Public Funds in Certification of Official Statement .................................. 42
Texas ............................................................................ 20 CONTINUING DISCLOSURE OF INFORMATION ... 42
Defeasance ....................................................................... 20 Annual Reports ................................................................ 43
BOOK-ENTRY-ONLY SYSTEM .................................... 21 Event Notices................................................................... 43
USE AND DISTRIBUTION OF BOND PROCEEDS .... 23 Availability of Information from the MSRB ................... 43
UTILITY AGREEMENT BETWEEN THE DISTRICT Limitations and Amendments .......................................... 43
AND THE CITY OF SUGAR LAND ........................... 24 Compliance With Prior Undertakings [TO BE
TELFAIR............................................................................ 24 CONFIRMED] ............................................................. 44
THE DISTRICT ................................................................. 24 MISCELLANEOUS .......................................................... 44
General ............................................................................. 24
Description and Location ................................................. 25 AERIAL PHOTOGRAPH
Land Use .......................................................................... 25 PHOTOGRAPHS OF THE DISTRICT
Status of Commercial Development ............................. 25 APPENDIX A—Financial Statement of the District for the fiscal
MANAGEMENT OF THE DISTRICT ........................... 25 year ended June 30, 2020
Board of Directors ........................................................... 25
District Consultants.......................................................... 26
THE ROADS ...................................................................... 26
THE SYSTEM.................................................................... 26
Regulation ........................................................................ 26
Water Supply and Wastewater Treatment ................. 26
Water Distribution, Wastewater Collection and Storm
Drainage Facilities .................................................... 26
Flood Protection ............................................................... 27

USE OF INFORMATION IN OFFICIAL STATEMENT
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, as amended and in
effect on the date hereof, this document constitutes an OFFICIAL STATEMENT with respect to the Bonds that has been
“deemed final” by the District as of its date except for the omission of no more than the information permitted by Rule 15c2-
12.
No dealer, broker, salesman or other person has been authorized to give any information or to make any
representations other than those contained in this OFFICIAL STATEMENT, and, if given or made, such other information
or representations must not be relied upon as having been authorized by the District.
This OFFICIAL STATEMENT is not to be used in an offer to sell or the solicitation of an offer to buy in any state
in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified
to do so or to any person to whom it is unlawful to make such offer or solicitation.
All of the summaries of the statutes, resolutions, orders, contracts, audited financial statements, engineering and
other related reports set forth in this OFFICIAL STATEMENT are made subject to all of the provisions of such documents.
These summaries do not purport to be complete statements of such provisions, and reference is made to such documents,
copies of which are available from Allen Boone Humphries Robinson LLP, Bond Counsel, 3200 Southwest Freeway, Suite
2600, Houston, Texas, 77027, upon payment of the costs of duplication thereof.
References to web site addresses presented herein are for informational purposes only and may be in the form of a
hyperlink solely for the reader’s convenience. Unless specified otherwise, such web sites and the information or links
contained therein are not incorporated into, and are not part of, this Official Statement for purposes of, and as that term is
defined in, SEC Rule 15c2-12, as amended.
This OFFICIAL STATEMENT contains, in part, estimates, assumptions and matters of opinion which are not
intended as statements of fact, and no representation is made as to the correctness of such estimates, assumptions or matters
of opinion, or as to the likelihood that they will be realized. Any information and expressions of opinion herein contained
are subject to change without notice and neither the delivery of this OFFICIAL STATEMENT nor any sale made hereunder
shall, under any circumstances, create any implication that there has been no change in the affairs of the District or other
matters described herein since the date hereof. However, the District has agreed to keep this OFFICIAL STATEMENT
current by amendment or sticker to reflect material changes in the affairs of the District and, to the extent that information
actually comes to its attention, the other matters described in this OFFICIAL STATEMENT until delivery of the Bonds to
the Underwriter (as herein defined) and thereafter only as specified in “PREPARATION OF OFFICIAL STATEMENT—
Updating the Official Statement.”

SALE AND DISTRIBUTION OF THE BONDS
Award of the Bonds
After requesting competitive bids for the Bonds, the District accepted the bid resulting in the lowest net effective
interest rate, which bid was tendered by _______________ (the “Underwriter”) bearing the interest rates shown on the cover
page hereof, at a price of ____________% of the par value thereof plus accrued interest to the date of delivery which resulted
in a net effective interest rate of _______%, as calculated pursuant to Chapter 1204 of the Texas Government Code, as
amended (the IBA method).
Prices and Marketability
The prices and other terms with respect to the offering and sale of the Bonds may be changed from time-to-time by
the Underwriter after the Bonds are released for sale, and the Bonds may be offered and sold at prices other than the initial
offering prices, including sales to dealers who may sell the Bonds into investment accounts. In connection with the offering
of the Bonds, the Underwriter may over allot or effect transactions which stabilize or maintain the market prices of the Bonds
at levels above those which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued
at any time.
The District has no control over trading of the Bonds in the secondary market. Moreover, there is no guarantee that
a secondary market will be made in the Bonds. In such a secondary market, the difference between the bid and asked price
of utility district bonds may be greater than the difference between the bid and asked price of bonds of comparable maturity
and quality issued by more traditional municipal entities, as bonds of such entities are more generally bought, sold or traded
in the secondary market.
Securities Laws
No registration statement relating to the offer and sale of the Bonds has been filed with the Securities and Exchange
Commission under the Securities Act of 1933, as amended, in reliance upon the exemptions provided thereunder. The Bonds
have not been registered or qualified under the Securities Act of Texas in reliance upon various exemptions contained therein
and the Bonds have not been registered or qualified under the securities laws of any other jurisdiction. The District assumes
no responsibility for registration or qualification of the Bonds under the securities laws of any other jurisdiction in which the
Bonds may be offered, sold or otherwise transferred. This disclaimer of responsibility for registration or qualification for
sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with regard to the availability of
any exemption from securities registration or qualification provisions in such other jurisdiction.

OFFICIAL STATEMENT SUMMARY
The following is a brief summary of certain information contained herein which is qualified in its entirety by the detailed
information and financial statements appearing elsewhere in this OFFICIAL STATEMENT. The summary should not be
detached and should be used in conjunction with more complete information contained herein. A full review should be made
of the entire OFFICIAL STATEMENT and of the documents summarized or described therein.
INFECTIOUS DISEASE OUTLOOK (COVID-19)
General… The World Health Organization has declared a pandemic following the outbreak of
COVID-19, a respiratory disease caused by a new strain of coronavirus (the “Pandemic”),
which is currently affecting many parts of the world, including the United States and Texas.
As described herein under “RISK FACTORS- Infectious Disease Outlook (COVID-19)”,
federal, state and local governments have all taken actions to respond to the Pandemic,
including disaster declarations by both the President of the United States and the Governor
of Texas. Such actions are focused on limiting instances where the public can congregate
or interact with each other, which affects economic growth within Texas.
Impact… Since the disaster declarations were made, the Pandemic has negatively affected travel,
commerce, and financial markets locally and globally, and is widely expected to continue
negatively affecting economic growth and financial markets worldwide and within Texas.
Such adverse economic conditions, if they continue, could result in declines in the demand
for residential and commercial property in the Houston area and could reduce or negatively
affect commercial activity within the District. The Bonds are secured by an unlimited ad
valorem tax, and a reduction in commercial activity and property values may require an
increase in the ad valorem tax rate required to pay the Bonds as well as the District’s share
of operations and maintenance expenses payable from ad valorem taxes. See “THE
DISTRICT⸺Status of Commercial Development.”
While the potential impact of COVID-19 on the District cannot be quantified at this time,
the continued outbreak of the Pandemic could have an adverse effect on the District’s
operations and financial condition. The financial and operating data contained herein are
the latest available, but are as of dates and for periods partially prior to the economic impact
of the Pandemic and measures instituted to slow it. Accordingly, they are not indicative of
the economic impact of the Pandemic on the District’s financial condition. See “RISK
FACTORS—Infectious Disease Outlook (COVID-19).”
EXTREME WEATHER EVENTS; HURRICANE HARVEY
General... The greater Houston area, including Fort Bend County and the City of Sugar Land, is
subject to occasional severe weather events, including tropical storms and hurricanes. If
substantial damage were to occur to taxable property within the District as a result of such
a weather event, the investment security of the Bonds could be adversely affected. The
greater Houston area has experienced multiple storms exceeding a 0.2% probability (i.e.
“500‐year flood” events) since 2015, including Hurricane Harvey, which made landfall
along the Texas Gulf Coast on August 25, 2017, and brought historic levels of rainfall
during the successive four days.
Impact on the District... The City of Sugar Land, Texas (the “City”) operates the water and sewer system in the
District. According to reports from the City, the City’s water and wastewater system
serving the District sustained no material damage and there was no interruption of water
and sewer service from the City as a result of Hurricane Harvey. The District is aware of
structural flooding to the Dairy Queen and the NTB Store along Highway 90A adjacent to
Bullhead Slough (both of which are currently operational), but it is not aware of any other
structural flooding as a result of Hurricane Harvey.
If a future weather event significantly damaged all or part of the improvements within the
District, the assessed value of property within the District could be substantially reduced,
which could result in a decrease in tax revenues and/or necessitate an increase in the
District’s tax rate. Further, there can be no assurance that a casualty loss to taxable property
within the District will be covered by insurance (or that property owners will even carry
flood or other casualty insurance), that any insurance company will fulfill its obligation to
provide insurance proceeds, or that insurance proceeds will be used to rebuild or repair any
damaged improvements within the District. Even if insurance proceeds are available and
improvements are rebuilt, there could be a lengthy period in which assessed values within
the District could be adversely affected. See “RISK FACTORS—Extreme Weather
Events; Hurricane Harvey.”
5

THE DISTRICT
Description... The District is a political subdivision of the State of Texas, created by order of the Texas
Commission on Environmental Quality (“TCEQ”), on April 1, 2005, and operates pursuant
to Chapters 49 and 54 of the Texas Water Code, as amended. The District contains
approximately 139 acres of land. See “THE DISTRICT.”
Location... The District is located approximately 20 miles southwest of the central downtown business
district of the City of Houston and lies wholly within the corporate boundaries of the City.
The District is also located within the boundaries of the Fort Bend Independent School
District and Fort Bend County Levee Improvement District No. 17. The District is bordered
by U.S. Highway 90A on the north, State Highway 6 on the east and Bullhead Bayou on
the south. See “THE DISTRICT.”
Telfair... The District is part of the 2,018 acre master-planned community of Telfair in the City,
consisting of the District and three other municipal utility districts and a levee improvement
district. Single-family residential is complete in Telfair with 2,839 homes. The Houston
Museum of Natural Science’s Sugar Land branch is located in a 43,000 square foot historic
building located in Telfair. Recreational amenities within Telfair include a 2,200 square
foot meeting complex and central sales office, a lake system, a greenbelt system, over five
miles of landscaped trails, eleven neighborhood parks each with open space and
playground and two recreational pools, a sand volleyball court and a playground. The levee
improvement district also owns, operates and maintains an extensive lake and trail system.
Status of Development... All of the developable land within the District (approximately 101 acres) has been provided
with water and sanitary sewer trunk facilities and drainage facilities for commercial
development. A 150,000 square foot HEB grocery store, a free-standing gas station
operated by HEB and additional retail space have been constructed on approximately 15
acres. A Hilton Garden Inn and adjacent retail shopping center have been constructed on
approximately 27 of such acres. The Hilton Garden Inn contains 202 guest rooms and
approximately 6,000 square feet of conference meeting space. A Hampton Inn & Suites
(89 rooms) has recently been constructed on approximately 2 acres within the District.
Bonaventure Plaza is an 18,000 square foot retail shopping center constructed on
approximately 2 acres and contains an eye care facility, three restaurants and/or food
related businesses, a nail salon, a dental office, a massage therapy office and State Farm
Insurance. An adjacent medical office building is located on approximately one acre and
includes an eye care and lasik business, a dental office and an acupuncture clinic. In
addition, four free standing restaurants are located within the District, constructed on
approximately 8 acres. A Whataburger, Dairy Queen and Shipley’s Donuts have been
constructed on approximately 3 acres. Two freestanding banks have been constructed on
approximately 2 acres. University Plaza, a two-story office and retail building, has been
constructed on approximately 4 acres and is adjacent to an additional two-story office
building located on approximately 2 acres and the Telfair Office Park which has recently
been constructed on approximately 8 acres within the District. Additional development
includes a Cornelius nursery on approximately 1 acre, two auto repair establishments on
approximately 2 acres, a car wash on approximately 1 acre, a Learning Center on
approximately 2 acres and a Goodwill Center located on approximately 3 acres.
Approximately 38 acres are not developable (rights-of-way, detention, open spaces,
easements and utility sites). See “RISK FACTORS⸺Infectious Disease Outlook (COVID-
19)” and “THE DISTRICT.”
Fort Bend Levee Improvement
District No. 17… All of the land within Telfair lies within Fort Bend Levee Improvement District No. 17
(“LID 17”), which encompasses approximately 2,330 acres of land. LID 17 has constructed
a system of a levee, detention ponds, channels and other drainage improvements,
reclaiming land from the Brazos River flood-plain, including the land within the District,
as well as public recreational facilities, and has financed the acquisition and/or construction
of these facilities with the proceeds of its unlimited tax bonds. LID 17 currently has
$64,655,000 principal amount of bonds outstanding. LID 17 levied a total 2020 tax rate of
$0.56 per $100 of assessed valuation ($0.28 for debt service and $0.28 for maintenance
and operations). See “RISK FACTORS—Overlapping Debt and Taxes” and “THE
SYSTEM—Flood Protection.”

Payment Record... The District has previously issued $2,375,000 principal amount of unlimited tax bonds for
water, sewer and drainage facilities (the “Water, Sewer and Drainage Bonds”) in one series,
$2,525,000 principal amount of unlimited tax bonds for roads and related improvements
(the “Road Bonds”) in one series, and $2,065,000 principal amount of unlimited tax
refunding bonds in one series, $3,850,000 of which collectively remains outstanding (the
“Outstanding Bonds”). The District has never defaulted on its debt obligations. See
“FINANCIAL INFORMATION CONCERNING THE DISTRICT (UNAUDITED)—
Outstanding Debt.”
THE BONDS
Description... $2,330,000 Unlimited Tax Bonds, Series 2021 (the “Bonds”) are being issued pursuant to
a resolution authorizing the issuance of the Bonds (the “Bond Resolution”) adopted by the
District’s Board of Directors (the “Board”) as fully registered bonds. The Bonds are
scheduled to mature as serial bonds on September 1 in each of the years 2022 through 2037,
both inclusive. The Bonds will be issued in denominations of $5,000 or integral multiples
of $5,000. Interest on the Bonds accrues from March 1, 2021, and is payable September 1,
2021, and each March 1 and September 1 thereafter, until the earlier of maturity or
redemption. See “THE BONDS.”
Book-Entry-Only System… The Depository Trust Company (defined as “DTC”), New York, New York, will act as
securities depository for the Bonds. The Bonds will be issued as fully-registered securities
registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as
may be requested by an authorized representative of DTC. One fully-registered certificate
will be issued for each maturity of the Bonds and will be deposited with DTC. See “BOOK-
ENTRY-ONLY SYSTEM.”
Redemption... Bonds maturing on or after September 1, 2027 are subject to redemption in whole, or from
time to time in part, at the option of the District prior to their maturity dates on September
1, 2026, or on any date thereafter at a price of par value plus unpaid accrued interest from
the most recent interest payment date to the date fixed for redemption. See “THE
BONDS—Redemption Provisions.”
Use of Proceeds... Proceeds of the Bonds will be used to pay for the construction costs and connection charges
shown herein under “USE AND DISTRIBUTION OF BOND PROCEEDS.” In addition,
Bond proceeds will be used to pay interest on funds advanced by a form developer of land
within the District on behalf of the District, and pay administrative costs and certain other
costs and engineering fees related to the issuance of the Bonds.
Authority for Issuance... The Bonds are the second series of bonds issued out of an aggregate of $20,000,000
principal amount of unlimited tax bonds authorized by the District’s voters for the purpose
of purchasing and constructing water, sewer and drainage facilities. The Bonds are issued
by the District pursuant to an order of the Texas Commission on Environmental Quality
(the “TCEQ”), the terms and conditions of the Bond Resolution, Article XVI, Section 59
of the Texas Constitution, Chapters 49 and 54 of the Texas Water Code, as amended and
the general laws of the State of Texas relating to the issuance of bonds by political
subdivisions of the State of Texas. See “THE BONDS—Authority for Issuance” and “—
Issuance of Additional Debt” and “RISK FACTORS—Future Debt.”
Source of Payment... Principal of and interest on the Bonds are payable from the proceeds of a continuing direct
annual ad valorem tax levied, without legal limitation as to rate or amount, against all
taxable property within the District. The Bonds are obligations of the District and are not
obligations of the City, Fort Bend County, the State of Texas or any entity other than the
District. See “THE BONDS—Source of and Security for Payment.”
Municipal Bond Rating... The District has not applied for an underlying rating nor is it expected that the District
would have received an investment grade rating had such application been made.
Qualified Tax-Exempt
Obligations... The Bonds will be designated as “qualified tax-exempt obligations” within the meaning of
Section 265(b) of the Internal Revenue Code of 1986, as amended. See “TAX
MATTERS—Qualified Tax-Exempt Obligations.”

Bond Counsel... Allen Boone Humphries Robinson LLP, Houston, Texas. See “MANAGEMENT OF THE
DISTRICT,” “LEGAL MATTERS” and “TAX MATTERS.”
Financial Advisor... Masterson Advisors LLC, Houston, Texas. See “MANAGEMENT OF THE DISTRICT.”
Disclosure Counsel... McCall, Parkhurst & Horton L.L.P., Houston, Texas.
Paying Agent/Registrar... The Bank of New York Mellon Trust Company, N.A., Dallas, Texas. See “THE BONDS—
Method of Payment of Principal and Interest.”
RISK FACTORS
The purchase and ownership of the Bonds are subject to special risk factors and all prospective purchasers are urged to
examine carefully this entire OFFICIAL STATEMENT with respect to the investment security of the Bonds, including
particularly the section captioned “RISK FACTORS.”

SELECTED FINANCIAL INFORMATION (UNAUDITED)
2020 Certified Taxable Assessed Valuation ............................................................................................. $119,403,617 (a)
Estimated Taxable Assessed Valuation as of January 1, 2021] ............................................................... $130,193,541 (b)
Gross Direct Debt Outstanding ................................................................................................................ $6,180,000 (c)
Estimated Overlapping Debt .................................................................................................................... 10,530,949 (d)
Gross Direct Debt and Estimated Overlapping Debt ................................................................................ $16,710,949
Ratios of Gross Direct Debt to:
2020 Certified Taxable Assessed Valuation ..................................................................................... 5.18%
Estimated Taxable Assessed Valuation as of January 1, 2021 .......................................................... 4.75%
Ratios of Gross Direct Debt and Estimated Overlapping Debt to:
2020 Certified Taxable Assessed Valuation...................................................................................... 14.00%
Funds Available for Debt Service as of January 11, 2021:
Road Debt Service Funds .................................................................................................................. $77,662 (e)
Water, Sewer and Drainage Debt Service Funds .............................................................................. 99,341 (e)
Total Debt Service Funds Available ................................................................................................. $177,003
Operating Funds Available as of January 11, 2021 .................................................................................. $9,276 (f)
2020 Debt Service Tax Rate .................................................................................................................... $0.185 (g)
2020 Maintenance and Operations Tax Rate ........................................................................................... 0.235
2020 Total Tax Rate ....................................................................................................................... $0.420
Average Annual Debt Service Requirement (2021-2037) ........................................................................ $480,858 (h)
Maximum Annual Debt Service Requirement (2022) .............................................................................. $542,235 (h)
Tax Rates Required to Pay Average Annual Debt Service (2021-2037) at a 95% Collection Rate
Based upon 2020 Certified Taxable Assessed Valuation ................................................................. $0.43 (i)
Based upon Estimated Taxable Assessed Valuation as of January 1, 2021 ..................................... $0.39 (i)
Tax Rates Required to Pay Maximum Annual Debt Service (2022) at a 95% Collection Rate
Based upon 2020 Certified Taxable Assessed Valuation ................................................................. $0.48 (i)
Based upon Estimated Taxable Assessed Valuation as of January 1, 2021 ..................................... $0.44 (i)
(a) As certified by the Fort Bend Central Appraisal District (the “Appraisal District”). See “TAXING PROCEDURES.”
(b) Provided by the Appraisal District for informational purposes only. Such amounts reflect an estimate of the taxable assessed value
within the District on January 1, 2021. No tax will be levied on such amount until it is certified. Increases in value occurring between
January 1, 2020 and January 1, 2021, will be certified as of January 1, 2022. See “TAXING PROCEDURES.”
(c) Includes the Bonds and the Outstanding Bonds. See “FINANCIAL INFORMATION CONCERNING THE DISTRICT
(UNAUDITED)—Outstanding Debt.”
(d) See “FINANCIAL INFORMATION CONCERNING THE DISTRICT (UNAUDITED)—Estimated Overlapping Debt.”
(e) Although all of the District’s debt, including the Outstanding Bonds and the Bonds, is payable from an unlimited tax pledge on parity,
a pro rata portion of the District’s ad valorem tax revenue will be allocated to the Water, Sewer and Drainage Bonds and a pro rata
portion will be allocated to Road Debt. See “See “FINANCIAL INFORMATION CONCERNING THE DISTRICT (UNAUDITED)—
Outstanding Bonds.” The Water, Sewer and Drainage Debt Service Fund is not pledged to the Road Bonds and the Road Debt Service
Fund is not pledged to the Water, Sewer and Drainage Bonds (including the Bonds).
(f) The District levied a $0.235 per $100 assessed valuation maintenance and operations tax rate for 2020 which will result in revenue of
approximately $280,598. The 2020 taxes are due by January 31, 2021. The balance shown above does not reflect the receipt of 2020
tax collections due to report timing. See “RISK FACTORS—Operating Funds,” “TAX DATA—Historical Tax Rate Distribution,”
and “—Historical Tax Rate Collections.”
(g) For tax year 2020, the total debt service rate of $0.185 per $100 of assessed valuation is comprised of $0.150 for payment of Water,
Sewer and Drainage Bond debt service and $0.035 for payment of Road Bond debt service. See “TAX DATA.”
(h) See “FINANCIAL INFORMATION CONCERNING THE DISTRICT (UNAUDITED)—Debt Service Requirements.”
(i) The District receives a tax rebate from the City equivalent to fifty percent (50%) of the City taxes collected upon taxable value in the
District. While the District anticipates using the City tax rebate to pay debt service on its bonded debt, such revenue is not pledged to
the payment of the Bonds or the Outstanding Bonds and, therefore, is not included in the calculation of the tax rate requirements. The
calculations above are performed without taking into account receipt of the City rebate and represent the tax rates required to pay
principal of and interest on the Bonds and the Outstanding Bonds, when due, assuming no further increase or any decrease in taxable
assessed values in the District, collection of ninety-five percent (95%) of taxes levied, the sale of no additional bonds, and no other
funds available for the payment of debt service. See “UTILITY AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF
SUGAR LAND”

PRELIMINARY OFFICIAL STATEMENT
FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 136
(A political subdivision of the State of Texas located within Fort Bend County)
$2,330,000
UNLIMITED TAX BONDS
SERIES 2021
This OFFICIAL STATEMENT provides certain information in connection with the issuance by Fort Bend County
Municipal Utility District No. 136 (the “District”) of its $2,330,000 Unlimited Tax Bonds, Series 2021 (the “Bonds”).
The Bonds are issued by the District pursuant to an order of the Texas Commission on Environmental Quality (the
“TCEQ”), a resolution authorizing issuance of the Bonds (the “Bond Resolution”), an election held in the District, Article
XVI, Section 59 of the Texas Constitution, Chapter 8207, Texas Special District Local Laws Code (“Chapter 8207”), Chapters
49 and 54 of the Texas Water Code, as amended and the general laws of the State of Texas relating to the issuance of bonds
by political subdivisions of the State of Texas.
This OFFICIAL STATEMENT includes descriptions, among others, of the Bonds and the Bond Resolution, and
certain other information about the District, and development activity within the District. All descriptions of documents
contained herein are only summaries and are qualified in their entirety by reference to each document. Copies of documents
may be obtained from Allen Boone Humphries Robinson LLP, Bond Counsel, 3200 Southwest Freeway, Suite 2600,
Houston, Texas 77027.
RISK FACTORS
General
The Bonds are obligations solely of the District and are not obligations of the City, Fort Bend County, the State of
Texas, or any entity other than the District. Payment of the principal of and interest on the Bonds depends upon the ability of
the District to collect taxes levied on taxable property within the District in an amount sufficient to service the District’s
bonded debt or in the event of foreclosure, on the value of the taxable property in the District and the taxes levied by the
District and other taxing authorities upon the property within the District. See “THE BONDS—Source of and Security for
Payment.” The collection by the District of delinquent taxes owed to it and the enforcement by Registered Owners of the
District’s obligation to collect sufficient taxes may be a costly and lengthy process. Furthermore, the District cannot and does
not make any representations that continued development of taxable property within the District will accumulate or maintain
taxable values sufficient to justify continued payment of taxes by property owners or that there will be a market for the
property or that owners of the property will have the ability to pay taxes. See “Registered Owners’ Remedies and Bankruptcy
Limitations” below.
Infectious Disease Outlook (COVID-19)
The World Health Organization has declared a pandemic following the outbreak of COVID-19, a respiratory disease
caused by a new strain of coronavirus (the “Pandemic”), which is currently affecting many parts of the world, including the
United States and Texas. On January 31, 2020, the Secretary of the United States Health and Human Services Department
declared a public health emergency for the United States in connection with COVID-19. On March 13, 2020, the President
of the United States (the “President”) declared the Pandemic a national emergency and the Texas Governor (the “Governor”)
declared COVID-19 an imminent threat of disaster for all counties in Texas (collectively, the “disaster declarations”). On
March 25, 2020, in response to a request from the Governor, the President issued a Major Disaster Declaration for the State
of Texas.
Pursuant to Chapter 418 of the Texas Government Code, the Governor has broad authority to respond to disasters,
including suspending any regulatory statute prescribing the procedures for conducting state business or any order or rule of
a state agency that would in any way prevent, hinder, or delay necessary action in coping with this disaster and issuing
executive orders that have the force and effect of law. The Governor has issued a number of executive orders relating to
COVID-19 preparedness and mitigation. Many of the federal, state and local actions and policies under the aforementioned
disaster declarations are focused on limiting instances where the public can congregate or interact with each other, which
affects economic growth within Texas.
Since the disaster declarations were made, the Pandemic has negatively affected travel, commerce, and financial
markets locally and globally, and is widely expected to continue negatively affecting economic growth and financial markets
worldwide and within Texas. Stock values and crude oil prices, in the U.S. and globally, have seen significant declines
attributed to COVID-19 concerns. Texas may be particularly at risk from any global slowdown, given the prevalence of
international trade in the state and the risk of contraction in the oil and gas industry and spillover effects into other industries.
10

Such adverse economic conditions, if they continue, could result in declines in the demand for residential and
commercial property in the Houston area and could reduce or negatively affect commercial activity within the District. The
Bonds are secured by an unlimited ad valorem tax, and a reduction in commercial activity and property values may require
an increase in the ad valorem tax rate required to pay the Bonds as well as the District’s operations and maintenance expenses.
See “THE DISTRICT⸺Status of Commercial Development”
While the potential impact of COVID-19 on the District cannot be quantified at this time, the continued outbreak of
the Pandemic could have an adverse effect on the District’s operations and financial condition. The financial and operating
data contained herein are the latest available, but are as of dates and for periods partially prior to the economic impact of the
Pandemic and measures instituted to slow it. Accordingly, they are not indicative of the economic impact of the Pandemic
on the District’s financial condition.
Extreme Weather Events; Hurricane Harvey
The greater Houston area, including Fort Bend County and the City, is subject to occasional severe weather events,
including tropical storms and hurricanes. If substantial damage were to occur to taxable property within the District as a
result of such a weather event, the investment security of the Bonds could be adversely affected. The greater Houston area
has experienced multiple storms exceeding a 0.2% probability (i.e. “500‐year flood” events) since 2015, including Hurricane
Harvey, which made landfall along the Texas Gulf Coast on August 25, 2017, and brought historic levels of rainfall during
the successive four days.
The City operates the water and sewer system in the District. According to reports from the City, the City’s water
and wastewater system serving the District sustained no material damage and there was no interruption of water and sewer
service from the City as a result of Hurricane Harvey. The District is aware of structural flooding to the Dairy Queen and the
NTB Store along Highway 90A adjacent to Bullhead Slough, but it is not aware of any other structural flooding as a result of
Hurricane Harvey, and both of these businesses are currently operational.
If a future weather event significantly damaged all or part of the improvements within the District, the assessed value
of property within the District could be substantially reduced, which could result in a decrease in tax revenues and/or
necessitate an increase in the District’s tax rate. Further, there can be no assurance that a casualty loss to taxable property
within the District will be covered by insurance (or that property owners will even carry flood or other casualty insurance),
that any insurance company will fulfill its obligation to provide insurance proceeds, or that insurance proceeds will be used
to rebuild or repair any damaged improvements within the District. Even if insurance proceeds are available and
improvements are rebuilt, there could be a lengthy period in which assessed values within the District could be adversely
affected.
Specific Flood Type Risks

River (or Fluvial) Flood: occurs when water levels rise over the top of river, bayou or channel banks due to excessive
rain from tropical systems making landfall and/or persistent thunderstorms over the same area for extended periods of time.
The damage from a riverine flood can be widespread. The overflow can affect smaller rivers and streams downstream, or
may sheetflow overland. Flash flooding is a type of riverine flood that is characterized by an intense, high velocity torrent of
water that occurs in an existing river channel with little to no notice. Flash floods are very dangerous and destructive not only
because of the force of the water, but also the hurtling debris that is often swept up in the flow. They can occur within minutes
or a few hours of excessive rainfall. They can also occur even if no rain has fallen, for instance, after a levee or dam has
failed, or after a sudden release of water by a debris or ice jam. Controlled releases from a dam or levee also could potentially
create a flooding condition in rivers or man-made drainage systems (canals or channels) downstream.
Ponding (or Pluvial) Flood: occurs when heavy rainfall creates a flood event independent of an overflowing water
body, typically in relatively flat areas. Intense rainfall can over capacitate a drainage system which becomes trapped and
flows out into streets and nearby structures until it reaches a natural outlet. Ponding can also occur in a flood pool upstream
or behind a dam or levee.
Possible Impact on District Tax Rates
Assuming no further development, the value of the land and improvements currently within the District will be the
major determinant of the ability or willingness of owners of property within the District to pay their taxes. The 2020 Certified
Taxable Assessed Valuation is $119,403,617. After issuance of the Bonds, the maximum annual debt service requirement
will be $542,235 (2022), and the average annual debt service requirement will be $480,858 (2021-2037 inclusive). Assuming
no increase or decrease from the 2020 Certified Taxable Assessed Valuation, the issuance of no additional debt, and no other
funds available for the payment of debt service, tax rates of $0.48 and $0.43 per $100 of taxable assessed valuation at a
ninety-five percent (95%) collection rate would be necessary to pay the maximum annual debt service requirement and the
average annual debt service requirements, respectively. The Estimated Taxable Assessed Valuation as of January 1, 2021 is
$130,193,541, which reduces the above tax calculations to $0.44 and $0.39 per $100 of taxable assessed valuation,
respectively. See “FINANCIAL INFORMATION CONCERNING THE DISTRICT (UNAUDITED)—Debt Service
Requirements” and “TAX DATA—Tax Adequacy for Debt Service.”
11

No representation or suggestion is made that the Estimated Taxable Assessed Valuation as of January 1, 2021 will
be the amounts finally certified by the Appraisal District and no person should rely upon such amounts or their inclusion
herein as assurance of their attainment. See “TAXING PROCEDURES.” The District it makes no representations that over
the term of the Bonds, the property within the District will maintain a value sufficient to justify continued payment of taxes
by property owners. Property within the District also is subject to taxes levied by other political subdivisions. See “TAX
DATA—Tax Adequacy for Debt Service.”
Dependence on Principal Taxpayers
Based on the of the District’s 2020 Certified Taxable Assessed Valuation, approximately 58.78% ($70,182,989) of
the District’s 2020 certified tax roll was attributable to the top ten taxpayers within the District. The largest taxpayer, HEB
Grocery Company LP, owner and operator of the HEB grocery store and gas center located within the District, represents
approximately 15.28% ($18,250,640) of the District’s 2020 certified tax roll. See “TAX DATA—Principal Taxpayers.” If
any of the principal taxpayers were to default in the payment of taxes in an amount which exceeds the balance in the debt
service fund (see “THE BONDS—Source of and Security for Payment”), the ability of the District to make timely payment
of debt service on the Bonds would be dependent on the ability of the District to enforce and liquidate its tax lien, which is a
time-consuming process, or to sell tax anticipation notes. Failure to recover or borrow funds in a timely fashion could result
in the District being forced to set an excessive tax rate, hindering growth and leading to further defaults in the payment of
taxes. The District is not required by law or the Bond Resolution to maintain any specified amount of surplus in its debt
service funds. See “Tax Collections Limitations and Foreclosure Remedies” in this section and “TAXING PROCEDURES—
Levy and Collection of Taxes.”
Operating Funds
The District’s primary source of operating revenue is maintenance tax revenue. The District levied a 2020
maintenance tax rate of $0.235 per $100 of assessed value. The District’s Operating Fund balance as of January 11, 2021 was
$9,276, which reflects a reduction in the amount of $261,221 on September 14, 2020, for the purpose of reimbursing NNP-
Telfair, LLC and Hwy 6 & 90, Ltd., former developers in the District, for utility construction. The January 11, 2021, balance
does not reflect any maintenance tax collections for 2020, in the approximate amount of $280,598, which are due January 31,
2021. In addition, approximately $35,000, to date, is expected to be reimbursed to the Operating Fund from proceeds of the
Bonds related to the bond application.
See “FINANCIAL INFORMATION CONCERNING THE DISTRICT (UNAUDITED)—Operating Fund” and

“TAX DATA—Historical Tax Rate Distribution,” and “—Historical Tax Rate Collections.”
Utility Agreement with Sugar Land

All of the land in the District is located within the corporate limits of the City. The City and the District have entered
into a Utility Agreement, dated July 21, 2005 (the “Utility Agreement”), which obligates the District to acquire, construct
and extend water, wastewater and storm drainage facilities (the “System”) to serve land in the District and, when completed
in accordance with plans and specifications approved by the City, to convey title to such utility facilities to the City. See
“UTILITY AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF SUGAR LAND.” The City will then operate
and maintain such facilities, and be responsible for establishing water and sewer rates and collecting charges for water and
sewer service from District customers. The City also levies and collects ad valorem taxes on taxable property within the
District as it does with any other property located in the City. Pursuant to the Utility Agreement with the District, the City
has agreed to rebate to the District fifty percent (50%) of such City taxes collected upon taxable property within the District
beginning with taxes collected for the 2012 tax year, the District’s initial year of debt service tax levy and continuing each
year thereafter until the year 2046. The amount of rebate payment will vary with changes in the City’s tax rate and the
District’s appraised valuation. Consequently, the amounts subject to rebate by the City under the formula will vary from year
to year. The District intends to use such rebate from the City toward the payment of principal of and interest on the Bonds,
however, the rebate is not pledged to the payment of principal and interest on the Bonds. Any significant reduction in the
amount of the tax rebate may require a corresponding increase in the District’s tax rate. See “THE BONDS—Source of and
Security for Payment.”
Overlapping Debt and Taxes
All of the land within the District is located within LID 17 and is subject to taxation by LID 17. LID 17’s 2020
Taxable Assessed Valuation from the Appraisal District is $1,961,230,487. The 2020 tax rate of LID 17 is $0.56 per $100
of appraised valuation ($0.28 for debt service and $0.28 for maintenance and operations). LID 17 currently has $64,655,000
principal amount of bonds outstanding and is authorized to issue a maximum of $125,000,000 in principal amount of
unlimited tax bonds without additional voter approval. LID 17 may issue additional levee improvement bonds in the future.
The District cannot represent whether any of the development planned or occurring in LID 17 will be successful or whether
the appraised valuation of the land located within LID 17 will justify continued payment of the LID 17 tax, as well as District
taxes, by property owners. Increases in LID 17's tax rate could have an adverse impact upon future development and upon
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development and home sales within LID 17, which includes the District, and the willingness of owners of property located
within the District to pay ad valorem taxes levied by LID 17 and the District.
The District intends that the composite of its tax rate and those of LID 17 and the City, will not exceed $1.00 per
$100 of appraised valuation; however, the District cannot control the tax rates of the City or LID 17. There can be no
assurances that the composite of the tax rates imposed by all jurisdictions on property in the District will be competitive with
the composite of the tax rates of competing projects in the Harris/Fort Bend County region. To the extent that such composite
tax rates are not competitive with competing developments, the growth of property tax values in the District and the
investment quality or security of the Bonds could be adversely affected. A composite tax rate of $1.50 is higher than the tax
rate of many municipal utility districts in the Fort Bend County and Harris County region, although such a combined rate is
within the range set by certain municipal utility districts in the Fort Bend County and Harris County region in stages of
development comparable with the District.
The current TCEQ rules regarding the feasibility of a bond issue for utility districts in Fort Bend County limit the
“combined projected tax rate” attributable to an entity levying a tax for water, wastewater and drainage to $1.50. In the case
of the District, the total “combined tax rate” under current TCEQ rules includes the tax rate of the District, LID 17 and the
City. If the total “combined tax rate” specifically attributable to water, sewer, drainage, roads and recreational facilities should
ever exceed $1.50, the District and LID 17 could be prohibited under rules of the TCEQ from selling additional bonds. See
“FINANCIAL INFORMATION CONCERNING THE DISTRICT (UNAUDITED)—Overlapping Taxes.”
Tax Collections Limitations and Foreclosure Remedies
The District’s ability to make debt service payments may be adversely affected by its inability to collect ad valorem
taxes. Under Texas law, the levy of ad valorem taxes by the District constitutes a lien in favor of the District on parity with
the liens of all other local taxing authorities on the property against which taxes are levied, and such lien may be enforced by
judicial foreclosure. The District’s ability to collect ad valorem taxes through such foreclosure may be impaired by (a)
cumbersome, time-consuming and expensive collection procedures, (b) a bankruptcy court’s stay of tax collection procedures
against a taxpayer, or (c) market conditions affecting the marketability of taxable property within the District and limiting the
proceeds from a foreclosure sale of such property. Moreover, the proceeds of any sale of property within the District available
to pay debt service on the Bonds may be limited by the existence of other tax liens on the property (see “FINANCIAL
INFORMATION CONCERNING THE DISTRICT (UNAUDITED)—Overlapping Taxes”), by the current aggregate tax
rate being levied against the property, and by other factors (including the taxpayers’ right to redeem property within two years
of foreclosure for residential and agricultural use property and six months for commercial and other property). Finally, any
bankruptcy court with jurisdiction over bankruptcy proceedings initiated by or against a taxpayer within the District pursuant
to the Federal Bankruptcy Code could stay any attempt by the District to collect delinquent ad valorem taxes assessed against
such taxpayer. In addition to the automatic stay against collection of delinquent taxes afforded a taxpayer during the pendency
of a bankruptcy, a bankruptcy could affect payment of taxes in two other ways: first, a debtor’s confirmation plan may allow
a debtor to make installment payments on delinquent taxes for up to six years; and, second, a debtor may challenge, and a
bankruptcy court may reduce, the amount of any taxes assessed against the debtor, including taxes that have already been
paid.
Registered Owners’ Remedies and Bankruptcy Limitations
If the District defaults in the payment of principal, interest, or redemption price on the Bonds when due, or if it fails
to make payments into any fund or funds created in the Bond Resolution, or defaults in the observation or performance of
any other covenants, conditions, or obligations set forth in the Bond Resolution, the Registered Owners have the statutory
right of a writ of mandamus issued by a court of competent jurisdiction requiring the District and its officials to observe and
perform the covenants, obligations, or conditions prescribed in the Bond Resolution. Except for mandamus, the Bond
Resolution does not specifically provide for remedies to protect and enforce the interests of the Registered Owners. There is
no acceleration of maturity of the Bonds in the event of default and, consequently, the remedy of mandamus may have to be
relied upon from year to year. Further, there is no trust indenture or trustee, and all legal actions to enforce such remedies
would have to be undertaken at the initiative of, and be financed by, the Registered Owners. Statutory language authorizing
local governments such as the District to sue and be sued does not waive the local government’s sovereign immunity from
suits for money damages, so that in the absence of other waivers of such immunity by the Texas Legislature, a default by the
District in its covenants in the Bond Resolution may not be reduced to a judgment for money damages. If such a judgment
against the District were obtained, it could not be enforced by direct levy and execution against the District’s property.
Further, the Registered Owners cannot themselves foreclose on property within the District or sell property within the District
to enforce the tax lien on taxable property to pay the principal of and interest on the Bonds. The enforceability of the rights
and remedies of the Registered Owners may further be limited by a State of Texas statute reasonably required to attain an
important public purpose or by laws relating to bankruptcy, reorganization or other similar laws of general application
affecting the rights of creditors of political subdivisions, such as the District.
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Subject to the requirements of Texas law discussed below, a political subdivision such as the District may voluntarily
file a petition for relief from creditors under Chapter 9 of the Federal Bankruptcy Code, 11 U.S.C. Sections 901-946. The
filing of such petition would automatically stay the enforcement of Registered Owner’s remedies, including mandamus. The
automatic stay would remain in effect until the federal bankruptcy judge hearing the case dismisses the petition, enters an
order granting relief from the stay or otherwise allows creditors to proceed against the petitioning political subdivision. A
political subdivision such as the District may qualify as a debtor eligible to proceed in a Chapter 9 case only if it (1) is
authorized to file for federal bankruptcy protection by applicable state law, (2) is insolvent or unable to meet its debts as they
mature, (3) desires to effect a plan to adjust such debts, and (4) has either obtained the agreement of or negotiated in good
faith with its creditors or is unable to negotiate with its creditors because negotiation is impracticable. Special districts such
as the District must obtain the approval of the TCEQ as a condition to seeking relief under the Federal Bankruptcy Code.
The TCEQ is required to investigate the financial condition of a financially troubled district and authorize such district to
proceed under federal bankruptcy law only if such district has fully exercised its rights and powers under Texas law and
remains unable to meet its debts and other obligations as they mature.
Notwithstanding noncompliance by a district with Texas law requirements, the District could file a voluntary
bankruptcy petition under Chapter 9, thereby invoking the protection of the automatic stay until the bankruptcy court, after a
hearing, dismisses the petition. A federal bankruptcy court is a court of equity and federal bankruptcy judges have
considerable discretion in the conduct of bankruptcy proceedings and in making the decision of whether to grant the
petitioning District relief from its creditors. While such a decision might be appealable, the concomitant delay and loss of
remedies to the Registered Owner could potentially and adversely impair the value of the Registered Owner’s claim.
If a petitioning district were allowed to proceed voluntarily under Chapter 9 of the Federal Bankruptcy Code, it
could file a plan for an adjustment of its debts. If such a plan were confirmed by the bankruptcy court, it could, among other
things, affect Registered Owners by reducing or eliminating the amount of indebtedness, deferring or rearranging the debt
service schedule, reducing or eliminating the interest rate, modifying or abrogating the collateral or security arrangements,
substituting (in whole or in part) other securities, and otherwise compromising and modifying the rights and remedies of the
Registered Owners’ claims against a district.
A district may not be forced into bankruptcy involuntarily.
Future Debt
The District has the right to issue obligations other than the Bonds, including tax anticipation notes and bond
anticipation notes, and to borrow for any valid corporate purpose. The District’s voters have authorized the issuance of
$20,000,000 principal amount of unlimited tax bonds for the purpose of constructing and or acquiring a waterworks, sanitary
sewer and storm sewer system, $13,000,000 principal amount of unlimited tax bonds for refunding purposes, $5,285,000
principal amount of unlimited tax bonds for road purposes and refunding of such bonds, and $2,900,000 principal amount of
unlimited tax bonds for park and recreational facilities and could authorize additional amounts; however, because public
parks are finance and maintained by LID 17, the District has no intention to issue park bonds After issuance of the Bonds,
the District will have $15,295,000 of unlimited tax bonds for a waterworks, sanitary sewer and storm sewer system and all
of the bonds authorized for park and recreational purposes authorized but unissued. The District has $2,760,000 principal
amount of unlimited tax bonds for road purposes authorized but unissued; however, the District will not issue the remaining
unlimited road bond authorization based on an agreement with the City. The District currently has $12,875,000 principal
amount of unlimited tax bonds for refunding purposes authorized but unissued. In addition, voters may authorize the issuance
of additional bonds secured by ad valorem taxes. The issuance of additional obligations may increase the District’s tax rate
and adversely affect the security for, and the investment quality and value of, the Bonds.
The District does not employ any formula with respect to appraised valuations, tax collections or otherwise to limit
the amount of parity bonds which it may issue. The issuance of additional utility bonds is subject to approval by the TCEQ
pursuant to its rules regarding issuance and feasibility of bonds. In addition, future changes in health or environmental
regulations could require the construction and financing of additional improvements without any corresponding increases in
taxable value in the District. See “THE BONDS—Issuance of Additional Debt.”
Environmental Regulation
Wastewater treatment, water supply, storm sewer facilities and construction activities within the District are subject
to complex environmental laws and regulations at the federal, state and local levels that may require or prohibit certain
activities that affect the environment, such as:
 Requiring permits for construction and operation of water wells, wastewater treatment and other facilities;
 Restricting the manner in which wastes are treated and released into the air, water and soils;
 Restricting or regulating the use of wetlands or other properties; or
 Requiring remedial action to prevent or mitigate pollution.
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Sanctions against a municipal utility district or other type of special purpose district for failure to comply with
environmental laws and regulations may include a variety of civil and criminal enforcement measures, including assessment
of monetary penalties, imposition of remedial requirements and issuance of injunctions to ensure future compliance.
Environmental laws and compliance with environmental laws and regulations can increase the cost of planning, designing,
constructing and operating water production and wastewater treatment facilities. Environmental laws can also inhibit growth
and development within the District. Further, changes in regulations occur frequently, and any changes that result in more
stringent and costly requirements could materially impact the District.
Air Quality Issues. Air quality control measures required by the United States Environmental Protection Agency
(the “EPA”) and the Texas Commission on Environmental Quality (the “TCEQ”) may impact new industrial, commercial
and residential development in the Houston area. Under the Clean Air Act (“CAA”) Amendments of 1990, the eight-county
Houston-Galveston-Brazoria area (“HGB Area”)—Harris, Galveston, Brazoria, Chambers, Fort Bend, Waller, Montgomery
and Liberty Counties—has been designated a nonattainment area under three separate federal ozone standards: the one-hour
(124 parts per billion (“ppb”)) and eight-hour (84 ppb) standards promulgated by the EPA in 1997 (the “1997 Ozone
Standards”); the tighter, eight-hour ozone standard of 75 ppb promulgated by the EPA in 2008 (the “2008 Ozone Standard”),
and the EPA’s most-recent promulgation of an even lower, 70 ppb eight-hour ozone standard in 2015 (the “2015 Ozone
Standard”). While the State of Texas has been able to demonstrate steady progress and improvements in air quality in the
HGB Area, the HGB Area remains subject to CAA nonattainment requirements.
While the EPA has revoked the 1997 Ozone Standards, the EPA historically has not formally redesignated
nonattainment areas for a revoked standard. As a result, the HGB Area remained subject to continuing severe nonattainment
area “anti-backsliding” requirements, despite the fact that HGB Area air quality has been attaining the 1997 Ozone Standards
since 2014. In late 2015, the EPA approved the TCEQ’s “redesignation substitute” for the HGB Area under the revoked
1997 Ozone Standards, leaving the HGB Area subject only to the nonattainment area requirements under the 2008 Ozone
Standard (and later, the 2015 Ozone Standard).
In February 2018, the U.S. Court of Appeals for the District of Columbia Circuit issued an opinion in South Coast
Air Quality Management District v. EPA, 882 F.3d 1138 (D.C. Cir. 2018) vacating the EPA redesignation substitute rule that
provided the basis for the EPA’s decision to eliminate the anti-backsliding requirements that had applied in the HGB Area
under the 1997 Ozone Standard. The court has not responded to the EPA’s April 2018 request for rehearing of the case. To
address the uncertainty created by the South Coast court’s ruling, the TCEQ developed a formal request that the HGB Area
be redesignated to attainment under the 1997 Ozone Standards. The TCEQ Commissioners adopted the request and
maintenance plan for the 1997 one-hour and eight-hour standards on December 12, 2018. On May 16, 2019, the EPA
proposed a determination that the HGB Area has met the redesignation criteria and continues to attain the 1997 one-hour and
eight-hour standards, the termination of the anti-backsliding obligations, and approval of the proposed maintenance plan.
The HGB Area is currently designated as a “serious” nonattainment area under the 2008 Ozone Standard, with an
attainment deadline of July 20, 2021. If the EPA ultimately determines that the HGB Area has failed to meet the attainment
deadline based on the relevant data, the area is subject to reclassification to a nonattainment classification that provides for
more stringent controls on emissions from the industrial sector. In addition, the EPA may impose a moratorium on the
awarding of federal highway construction grants and other federal grants for certain public works construction projects if it
finds that an area fails to demonstrate progress in reducing ozone levels.
The HGB Area is currently designated as a “marginal” nonattainment area under the 2015 Ozone Standard, with an
attainment deadline of August 3, 2021. For purposes of the 2015 Ozone Standard, the HGB Area consists of only six counties:
Brazoria, Chambers, Fort Bend, Galveston, Harris, and Montgomery Counties.
In order to demonstrate progress toward attainment of the EPA’s ozone standards, the TCEQ has established a state
implementation plan (“SIP”) for the HGB Area setting emission control requirements, some of which regulate the inspection
and use of automobiles. These types of measures could impact how people travel, what distances people are willing to travel,
where people choose to live and work, and what jobs are available in the HGB Area. These SIP requirements can negatively
impact business due to the additional permitting/regulatory constraints that accompany this designation and because of the
community stigma associated with a nonattainment designation. It is possible that additional controls will be necessary to
allow the HGB Area to reach attainment with the ozone standards by the EPA’s attainment deadlines. These additional
controls could have a negative impact on the HGB Area’s economic growth and development.
Marketability of the Bonds
The District has no understanding with the Underwriter regarding the reoffering yields or prices of the Bonds and
has no control over trading of the Bonds in the secondary market. Moreover, there is no assurance that a secondary market
will be made in the Bonds. If there is a secondary market, the difference between the bid and asked price of the Bonds may
be greater than the difference between the bid and asked price of bonds of comparable maturity and quality issued by more
traditional issuers as such bonds are more generally bought, sold or traded in the secondary market.
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Changes in Tax Legislation
Certain tax legislation, whether currently proposed or proposed in the future, may directly or indirectly reduce or
eliminate the benefit of the exclusion of interest on the Bonds from gross income for federal income tax purposes. Any
proposed legislation, whether or not enacted, may also affect the value and liquidity of the Bonds. Prospective purchasers of
the Bonds should consult with their own tax advisors with respect to any proposed, pending or future legislation.
Continuing Compliance with Certain Covenants
The Bond Resolution contains covenants by the District intended to preserve the exclusion from gross income for
federal income tax purposes of interest on the Bonds. Failure by the District to comply with such covenants in the Bond
Resolution on a continuing basis prior to the maturity of the Bonds could result in interest on the Bonds becoming taxable
retroactively to the date of original issuance. See “TAX MATTERS.”
THE BONDS
Description
The Bonds will be dated and accrue interest from March 1, 2021, with interest payable each September 1 and March
1, beginning September 1, 2021 (the “Interest Payment Date”), and will mature on the dates and in the principal amounts and
accrue interest at the rates shown on the cover page hereof. The Bonds are issued in fully registered form, in denominations
of $5,000 or any integral multiple of $5,000. Interest calculations are based on a 360-day year comprised of twelve 30-day
months.
Method of Payment of Principal and Interest
In the Bond Resolution, the Board has appointed The Bank of New York Mellon Trust Company, N.A., Dallas,
Texas as the initial Paying Agent/Registrar for the Bonds. The principal of the Bonds shall be payable, without exchange or
collection charges, in any coin or currency of the United States of America, which, on the date of payment, is legal tender for
the payment of debts due the United States of America. In the event the book-entry system is discontinued, principal of the
Bonds shall be payable upon presentation and surrender of the Bonds as they respectively become due and payable, at the
principal payment office of the Paying Agent/Registrar in Dallas, Texas and interest on each Bond shall be payable by check
payable on each Interest Payment Date, mailed by the Paying Agent/Registrar on or before each Interest Payment Date to the
Registered Owner of record as of the close of business on the February 15 or August 15 immediately preceding each Interest
Payment Date (defined herein as the “Record Date”), to the address of such Registered Owner as shown on the Paying
Agent/Registrar’s records (the “Register”) or by such other customary banking arrangements as may be agreed upon by the
Paying Agent/Registrar and the Registered Owners at the risk and expense of the Registered Owners.
If the date for payment of the principal of or interest on any Bond is not a business day, then the date for such
payment shall be the next succeeding business day, as defined in the Bond Resolution.
Source of and Security for Payment
While the Bonds or any part of the principal thereof or interest thereon remains outstanding and unpaid, the District
covenants to levy and annually assess and collect in due time, form and manner, and at the same time as other District taxes
are appraised, levied and collected, in each year, a continuing direct annual ad valorem tax, without limit as to rate, upon all
taxable property in the District sufficient to pay the interest on the Bonds as the same becomes due and to pay each installment
of the principal of the Bonds as the same matures, with full allowance being made for delinquencies and costs of collection.
In the Bond Resolution, the District covenants that said taxes are irrevocably pledged to the payment of the interest on and
principal of the Bonds and to no other purpose.
The Bonds are obligations of the District and are not the obligations of the State of Texas, Fort Bend County, the
City of Sugar Land (the “City”), or any entity other than the District.
Funds
In the Bond Resolution, the Water, Sewer and Drainage Debt Service Fund is confirmed, and the proceeds from all
taxes levied, assessed and collected for and on account of the Bonds authorized by the Bond Resolution shall be deposited,
as collected, in such fund. The District also maintains a Road Debt Service Fund that is not pledged to Water, Sewer and
Drainage Bonds, including the Bonds. Funds in the Water, Sewer and Drainage Debt Service Fund are not available to pay
principal and interest on the Outstanding Road Bonds and funds in the Road Debt Service Fund are not available to pay
principal and interest on Water, Sewer and Drainage Bonds, including the Bonds.
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Accrued interest on the Bonds shall be deposited into the Water, Sewer and Drainage Debt Service Fund upon
receipt. The remaining proceeds from sale of the Bonds, including interest earnings thereon, shall be deposited into the Water,
Sewer and Drainage Capital Projects Fund, and used to reimburse the costs of acquiring or constructing or acquiring District
facilities, to pay interest on such reimbursements and to pay the costs of issuing the Bonds. See “USE AND DISTRIBUTION
OF BOND PROCEEDS” for a more complete description of the use of Bond proceeds.
No Arbitrage
The District will certify as of the date the Bonds are delivered and paid for that, based upon all facts and estimates
then known or reasonably expected to be in existence on the date the Bonds are delivered and paid for, the District reasonably
expects that the proceeds of the Bonds will not be used in a manner that would cause the Bonds, or any portion of the Bonds,
to be “arbitrage bonds” under the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations prescribed
thereunder. Furthermore, all officers, employees, and agents of the District have been authorized and directed to provide
certifications of facts and estimates that are material to the reasonable expectations of the District as of the date the Bonds
are delivered and paid for. In particular, all or any officers of the District are authorized to certify to the facts and
circumstances and reasonable expectations of the District on the date the Bonds are delivered and paid for regarding the
amount and use of the proceeds of the Bonds. Moreover, the District covenants in the Bond Resolution that it shall make such
use of the proceeds of the Bonds, regulate investment of proceeds of the Bonds, and take such other and further actions and
follow such procedures, including, without limitation, calculating the yield on the Bonds, as may be that the Bonds shall not
become “arbitrage bonds” under the Code and the regulations prescribed from time to time thereunder.
Redemption Provisions
The District reserves the right, at its option, to redeem the Bonds maturing on or after September 1, 2027, prior to
their scheduled maturities, in whole or from time to time in part, in integral multiples of $5,000 on September 1, 2026, or any
date thereafter, at a price of par value plus unpaid accrued interest on the principal amounts called for redemption from the
most recent Interest Payment Date to the date fixed for redemption.
If less than all of the Bonds are redeemed at any time, the maturities of the Bonds to be redeemed will be selected
by the District. If less than all of the Bonds of a certain maturity are to be redeemed, the particular Bonds to be redeemed
shall be selected by the Paying Agent/Registrar by lot or other random method (or by DTC in accordance with its procedures
while the Bonds are in book-entry-only form).
If a Bond subject to redemption is in a denomination larger than $5,000, a portion of such Bond may be redeemed,
but only in integral multiples of $5,000. Upon surrender of any Bond for redemption in part, the Paying Agent/Registrar
shall authenticate and deliver in exchange therefor a Bond or Bonds of like maturity and interest rate in an aggregate principal
amount equal to the unredeemed portion of the Bond so surrendered.
Notice of any redemption identifying the Bonds to be redeemed in whole or in part shall be given by the Paying
Agent/Registrar at least thirty (30) days prior to the date fixed for redemption by sending written notice by first class mail to
the Registered Owner of each Bond to be redeemed in whole or in part at the address shown on the Register. Such notices
shall state the redemption date, the redemption price, the place at which the Bonds are to be surrendered for payment and, if
less than all the Bonds outstanding are to be redeemed, the numbers of the Bonds or the portions thereof to be redeemed.
Any notice given shall be conclusively presumed to have been duly given, whether or not the Registered Owner receives such
notice. By the date fixed for redemption, due provision shall be made with the Paying Agent/Registrar for payment of the
redemption price of the Bonds or portions thereof to be redeemed, plus accrued interest to the date fixed for redemption.
When Bonds have been called for redemption in whole or in part and due provision has been made to redeem the same as
herein provided, the Bonds or portions thereof so redeemed shall no longer be regarded as outstanding except for the purpose
of receiving payment solely from the funds so provided for redemption, and the rights of the Registered Owners to collect
interest which would otherwise accrue after the redemption date on any Bond or portion thereof called for redemption shall
terminate on the date fixed for redemption.
Authority for Issuance
At a bond election held within the District, voters of the District authorized the issuance of $20,000,000 principal
amount of unlimited tax bonds for the purpose of purchasing and constructing water, sewer and drainage facilities. The Bonds
are issued pursuant to such authorization. See “Issuance of Additional Debt” herein.
The Bonds are issued by the District pursuant to an order of the TCEQ, the terms and conditions of the Bond
Resolution, Article XVI, Section 59 of the Texas Constitution, Chapter 8207, as amended, Chapters 49 and 54 of the Texas
Water Code, as amended, and the general laws of the State of Texas relating to the issuance of bonds by political subdivisions
of the State of Texas.
Before the Bonds can be issued, the Attorney General of Texas must pass upon the legality of certain related matters.
The Attorney General of Texas does not guarantee or pass upon the suitability of the Bonds as an investment or upon the
adequacy of the information contained in this OFFICIAL STATEMENT.
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Registration and Transfer
So long as any Bonds remain outstanding, the Paying Agent/Registrar shall keep the Register at its principal payment
office and, subject to such reasonable regulations as it may prescribe, the Paying Agent/Registrar shall provide for the
registration and transfer of Bonds in accordance with the terms of the Bond Resolution.
In the event the Book-Entry-Only System should be discontinued, each Bond shall be transferable only upon the
presentation and surrender of such Bond at the principal payment office of the Paying Agent/Registrar, duly endorsed for
transfer, or accompanied by an assignment duly executed by the Registered Owner or his authorized representative in form
satisfactory to the Paying Agent/Registrar. Upon due presentation of any Bond in proper form for transfer, the Paying
Agent/Registrar has been directed by the District to authenticate and deliver in exchange therefor, within three (3) business
days after such presentation, a new Bond or Bonds, registered in the name of the transferee or transferees, in authorized
denominations and of the same maturity and aggregate principal amount and paying interest at the same rate as the Bond or
Bonds so presented.
All Bonds shall be exchangeable upon presentation and surrender thereof at the principal payment office of the
Paying Agent/Registrar for a Bond or Bonds of the same maturity and interest rate and in any authorized denomination in an
aggregate amount equal to the unpaid principal amount of the Bond or Bonds presented for exchange. The Paying
Agent/Registrar is authorized to authenticate and deliver exchange Bonds. Each Bond delivered shall be entitled to the
benefits and security of the Bond Resolution to the same extent as the Bond or Bonds in lieu of which such Bond is delivered.
Neither the District nor the Paying Agent/Registrar shall be required to transfer or to exchange any Bond during the
period beginning on a Record Date and ending the next succeeding Interest Payment Date or to transfer or exchange any
Bond called for redemption during the thirty (30) day period prior to the date fixed for redemption of such Bond.
The District or the Paying Agent/Registrar may require the Registered Owner of any Bond to pay a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such Bond.
Any fee or charge of the Paying Agent/Registrar for such transfer or exchange shall be paid by the District.
Lost, Stolen or Destroyed Bonds

In the event the Book-Entry-Only System should be discontinued, upon the presentation and surrender to the Paying
Agent/Registrar of a mutilated Bond, the Paying Agent/Registrar shall authenticate and deliver in exchange therefor a
replacement Bond of like maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding.
If any Bond is lost, apparently destroyed, or wrongfully taken, the District, pursuant to the applicable laws of the State of
Texas and in the absence of notice or knowledge that such Bond has been acquired by a bona fide purchaser, shall, upon
receipt of certain documentation from the Registered Owner and an indemnity bond, execute and the Paying Agent/Registrar
shall authenticate and deliver a replacement Bond of like maturity, interest rate and principal amount bearing a number not
contemporaneously outstanding.
Registered owners of lost, stolen or destroyed Bonds will be required to pay the District’s costs to replace such
Bond. In addition, the District or the Paying Agent/Registrar may require the Registered Owner to pay a sum sufficient to
cover any tax or other governmental charge that may be imposed.
Replacement of Paying Agent/Registrar

Provision is made in the Bond Resolution for replacement of the Paying Agent/Registrar. If the Paying
Agent/Registrar is replaced by the District, the new Paying Agent/Registrar shall act in the same capacity as the previous
Paying Agent/Registrar. Any paying agent/registrar selected by the District shall be a national or state banking institution, a
corporation organized and doing business under the laws of the United States of America or of any state, authorized under
such laws to exercise trust powers, and subject to supervision or examination by federal or state authority, to act as Paying
Agent/Registrar for the Bonds.
Issuance of Additional Debt

The District’s voters have also authorized the issuance of $20,000,000 principal amount of unlimited tax bonds for
the purpose of constructing and or acquiring a waterworks, sanitary sewer and storm sewer system, $5,285,000 principal
amount of unlimited tax bonds for road projects and refunding of such bonds and $13,000,000 principal amount of unlimited
tax bonds for refunding purposes and could authorize additional amounts; however, because public parks are finance and
maintained by LID 17, the District has no intention to issue park bonds. After issuance of the Bonds, the District will have
$15,295,000 principal amount of unlimited tax bonds for a waterworks, sanitary sewer and storm sewer system, $2,760,000
principal amount of unlimited tax bonds for road projects and $12,875,000 principal amount of unlimited tax bonds for
refunding purposes authorized but unissued. Prior to the issuance of any debt for such projects, the District must first obtain
the consent of the City to issue such bonds; however, the District will not issue the remaining unlimited tax road bond
authorization based on an agreement with the City. See “RISK FACTORS⸺Future Debt.”
18

In addition, the District’s voters authorized $2,900,000 principal amount of unlimited tax bonds for the purpose of
development and maintenance of recreational facilities at an election held within the District on September 10, 2005, all of
which remain authorized but unissued. Current state law limits the outstanding principal amount of such bonds to an amount
not to exceed one percent of the value of the taxable property in the District. In addition, the issuance of bonds for water,
sewer and drainage facilities or recreational facilities requires the approval of the TCEQ. To date, the Board has not
considered spending funds for recreational purposes. Existing public parks in Telfair are funded by LID 17 which overlays
the District.
The District also is authorized by statute to engage in fire-fighting activities, including the issuing of bonds payable
from taxes for such purpose. Before the District could issue such bonds, the following actions would be required: (a) approval
of a detailed fire plan by the TCEQ; (b) authorization of the detailed fire plan and bonds for such purposes by the qualified
voters in the District; (c) approval of bonds by the TCEQ; and (d) approval of the bonds by the Attorney General of Texas.
The Board has not considered a fire plan or calling an election at this time for such purposes. Because the District is located
in the City, such service is provided by the City. Prior to the issuance of any debt for such projects, the District must first
obtain the consent of the City to issue such bonds.
The issuance of additional bonds could dilute the investment security for the Bonds.
Dissolution of the District
Under Texas law, the District may be dissolved by the City without the District’s consent. If the District is dissolved,
the City will assume the District’s assets and obligations (including the Bonds) and dissolve the District within ninety (90)
days thereafter. Prior to dissolution by the City, the District shall have the opportunity to discharge any obligations of the
District by selling its bonds or by causing the City to sell bonds of the City in an amount necessary to discharge such
obligations. Dissolution of the District by the City is a policymaking matter within the discretion of the Mayor and the City
Council of the City, and therefore, the District makes no representation that dissolution will or will not occur. Moreover, no
representation is made concerning the ability of the City to make debt service payments should dissolution occur. See “THE
BONDS—Remedies in Event of Default.”
Consolidation
The District has the legal authority to consolidate with other districts and, in connection therewith, to provide for
the consolidation of its assets (such as cash and the utility system) and liabilities (such as the Bonds) with the assets and
liabilities of districts with which it is consolidating. Although no consolidation is presently contemplated by the District, no
representation is made concerning the likelihood of consolidation in the future.
Remedies in Event of Default
If the District defaults in the payment of principal, interest, or redemption price on the Bonds when due, or if it fails
to make payments into any fund or funds created in the Bond Resolution, or defaults in the observance or performance of any
other covenants, conditions, or obligations set forth in the Bond Resolution, the Registered Owners have the statutory right
of a writ of mandamus issued by a court of competent jurisdiction requiring the District and its officials to observe and
perform the covenants, obligations, or conditions prescribed in the Bond Resolution. Except for mandamus, the Bond
Resolution does not specifically provide for remedies to protect and enforce the interests of the Registered Owners. There is
no acceleration of maturity of the Bonds in the event of default and, consequently, the remedy of mandamus may have to be
relied upon from year to year. Further, there is no trust indenture or trustee, and all legal actions to enforce such remedies
would have to be undertaken at the initiative of, and be financed by, the Registered Owners. Statutory language authorizing
local governments such as the District to sue and be sued does not waive the local government’s sovereign immunity from
suits for money damages, so that in the absence of other waivers of such immunity by the Texas Legislature, a default by the
District in its covenants in the Bond Resolution may not be reduced to a judgment for money damages. If such a judgment
against the District were obtained, it could not be enforced by direct levy and execution against the District’s property.
Further, the Registered Owners cannot themselves foreclose on property within the District or sell property within the District
to enforce the tax lien on taxable property to pay the principal of and interest on the Bonds. The enforceability of the rights
and remedies of the Registered Owners may further be limited by a State of Texas statute reasonably required to attain an
important public purpose or by laws relating to bankruptcy, reorganization or other similar laws of general application
affecting the rights of creditors of political subdivisions, such as the District. See “RISK FACTORSRegistered Owners’
Remedies and Bankruptcy Limitations.”
19

Legal Investment and Eligibility to Secure Public Funds in Texas
The following is quoted from Section 49.186 of the Texas Water Code, and is applicable to the District:
“(a) All bonds, notes, and other obligations issued by a district shall be legal and authorized investments for all
banks, trust companies, building and loan associations, savings and loan associations, insurance companies of all kinds and
types, fiduciaries, and trustees, and for all interest and sinking funds and other public funds of the state, and all agencies,
subdivisions, and instrumentalities of the state, including all counties, cities, towns, villages, school districts, and all other
kinds and types of districts, public agencies, and bodies politic.”
“(b) A district’s bonds, notes, and other obligations are eligible and lawful security for all deposits of public funds
of the state, and all agencies, subdivisions, and instrumentalities of the state, including all counties, cities, towns, villages,
school districts, and all other kinds and types of districts, public agencies, and bodies politic, to the extent of the market value
of the bonds, notes, and other obligations when accompanied by any unmatured interest coupons attached to them.”
The Public Funds Collateral Act (Chapter 2257, Texas Government Code) also provides that bonds of the District
(including the Bonds) are eligible as collateral for public funds.
No representation is made that the Bonds will be suitable for or acceptable to financial or public entities for
investment or collateral purposes. No representation is made concerning other laws, rules, regulations, or investment criteria
which might apply to or which might be utilized by any of such persons or entities to limit the acceptability or suitability of
the Bonds for any of the foregoing purposes. Prospective purchasers are urged to carefully evaluate the investment quality
of the Bonds as to the suitability or acceptability of the Bonds for investment or collateral purposes.
Defeasance
The Bond Resolution provides that the District may discharge its obligations to the Registered Owners of any or all
of the Bonds to pay principal, interest and redemption price thereon in any manner permitted by law. Under current Texas
law, such discharge may be accomplished either (i) by depositing with the Comptroller of Public Accounts of the State of
Texas a sum of money equal to the principal of, premium, if any, and all interest to accrue on the Bonds to maturity or
redemption or (ii) by depositing with any place of payment (paying agent) of the Bonds or other obligations of the District
payable from revenues or from ad valorem taxes or both, amounts sufficient to provide for the payment and/or redemption of
the Bonds; provided that such deposits may be invested and reinvested only in (a) direct noncallable obligations of the United
States of America, (b) noncallable obligations of an agency or instrumentality of the United States, including obligations that
are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the
District adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality
by a nationally recognized investment rating firm not less than AAA or its equivalent, and (c) noncallable obligations of a
state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the
date the governing body of the District adopts or approves the proceedings authorizing the issuance of refunding bonds, are
rated as to the investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, and
which mature and/or bear interest payable at such times and in such amounts as will be sufficient to provide for the scheduled
payment and/or redemption of the Bonds.
Upon such deposit as described above, such Bonds shall no longer be regarded as outstanding or unpaid. After firm
banking and financial arrangements for the discharge and final payment or redemption of the Bonds have been made as
described above, all rights of the District to initiate proceedings to call the Bonds for redemption or take any other action
amending the terms of the Bonds are extinguished; provided, however, that the right to call the Bonds for redemption is not
extinguished if the District: (i) in the proceedings providing for the firm banking and financial arrangements, expressly
reserves the right to call the Bonds for redemption; (ii) gives notice of the reservation of that right to the owners of the Bonds
immediately following the making of the firm banking and financial arrangements; and (iii) directs that notice of the
reservation be included in any redemption notices that it authorizes.
There is no assurance that the current law will not be changed in the future in a manner which would permit
investments other than those described above to be made with amounts deposited to defease the Bonds.
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BOOK-ENTRY-ONLY SYSTEM
The information in this section concerning the Depository Trust Company (“DTC”) and DTC’s book-entry system
has been obtained from sources that the District believes to be reliable, but the District takes no responsibility for the
accuracy or completeness thereof.
The District cannot and does not give any assurances that DTC, DTC Direct Participants or Indirect Participants will
distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Bonds, (b)
Bonds representing ownership interest in or other confirmation or ownership interest in the Bonds, or (c) prepayment or other
notices sent to DTC or Cede & Co., its nominee, as the Registered Owner of the Bonds, or that they will do so on a timely
basis or that DTC, DTC Direct Participants or DTC Indirect Participants will act in the manner described in this OFFICIAL
STATEMENT. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the
current “Procedure” of DTC to be followed in dealing with DTC Direct Participants is on file with DTC.
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The Bonds
will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other
name as may be requested by an authorized representative of DTC. One fully-registered Bond certificate will be issued for
each maturity of the Bonds, in the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC, the world’s largest depository, is a limited-purpose trust company organized under the New York Banking
Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System,
a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered
pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing
for over 3.6 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market
instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates
the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through
electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need
for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and
dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary
of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities
Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned
by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-
U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a
custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a rating of
“AA+” by S&P Global Ratings. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”)
is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written
confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations
providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant
through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be
accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use
of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name
of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC.
The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect
any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records
reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the
Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on
behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s
practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
21

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless
authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an
Omnibus Proxy to the District (or the Paying Agent/Registrar on behalf thereof) as soon as possible after the record date.
The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds
are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal, premium, if any, interest payments and redemption proceeds on the Bonds will be made to Cede & Co.,
or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct
Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the District or Paying
Agent/Registrar, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with
securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of
such Participant and not of DTC, the Paying Agent, or the District, subject to any statutory or regulatory requirements as may
be in effect from time to time. Payment of principal, premium, if any, interest payments and redemption proceeds to Cede &
Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District
or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable
notice to the District or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained,
Bond certificates are required to be printed and delivered.
The District may decide to discontinue use of the system of book-entry transfers through DTC (or a successor
securities depository). In that event, Bond certificates will be printed and delivered.
22

USE AND DISTRIBUTION OF BOND PROCEEDS
Proceeds from the sale of the Bonds will be used to pay the construction costs associated with the following items.
The construction costs below were compiled by LJA Engineering, Inc., the District’s engineer (the “Engineer”), and were
submitted to the TCEQ in the District’s Bond Application. Non-construction costs are based upon either contract amounts,
or estimates of various costs by the Engineer and the Financial Advisor. The actual amounts to be reimbursed by the District
and the non-construction costs will be finalized after the sale of the Bonds and review by the District’s auditor. Surplus
funds, if any, may be expended for any lawful purpose for which surplus construction funds may be used, if approved by
the TCEQ, where required.
CONSTRUCTION COSTS
Water, Wastewater, and Drainage Facilities to Serve:
 Crossing at Telfair Phase 1, Bonaventure Way…………………… $ 72,732
 Crossing at Telfair Section 4 Phase II……………………………… 844,152
 Crossing at Telfair Office Park………………………………..……  393,266
 Engineering Fees………………………………..…………………… 201,268
 City of Sugar Land Regional Connection Charges………………  372,200

Total Construction Costs……………………………………………… $ 1,883,618

NON-CONSTRUCTION COSTS 
 Underwriter's Discount (estimated at 3.00%) (a)…………………  $ 69,900
 Developer Interest (estimated)………………………………..……  185,865
Total Non-Construction Costs………………………………………… $ 255,765
ISSUANCE COSTS AND FEES

 Issuance Costs and Professional Fees……………………………  $ 144,962
 Engineering Report………………………………..………………… 37,500
 State Regulatory Fees………………………………..……………… 8,155

Total Issuance Costs and Fees………………………………………… $ 190,617
TOTAL BOND ISSUE…………………………………………………  $ 2,330,000
(a) The TCEQ approved a maximum Underwriter’s discount of 3.00%.
23

UTILITY AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF SUGAR LAND
All land in the District is located within the corporate limits of the City. The City and the District have entered into
the Utility Agreement, dated July 21, 2005 which obligates the District to acquire, construct and extend water, wastewater
and storm drainage facilities (the “System”) to serve land in the District and, when completed in accordance with plans and
specifications approved by the City, to convey title to such utility facilities to the City. The City will then operates and
maintains such facilities, and is responsible for establishing water and sewer rates and collecting charges for water and sewer
service from District customers. The City also levies and collects ad valorem taxes on taxable property within the District
just as it does with any other property located in the City. Pursuant to the Utility Agreement with the District, the City has
agreed to rebate to the District one-half of City taxes collected on taxable property within the District. Pursuant to the Utility
Agreement, the City agrees to pay a portion of such City taxes collected upon taxable property within the District beginning
with taxes collected for the 2012 tax year, the District’s initial year of a debt service tax levy and continuing each year
thereafter until the year 2046 and thereafter the City’s payment obligation shall cease and the City shall not pay any portion
of City taxes to the District. The amount of rebate payment will vary with changes in the City’s tax rate and the District’s
appraised valuation and growth rate. Consequently, the amounts subject to rebate by the City under the formula will vary
from year to year. Any significant reduction in the amount of the tax rebate could increase the District’s rate of taxation.
The District will retain a security interest in the System to secure the City’s performance under the Utility Agreement
until the Bonds and any future bonds have been discharged, at which time the District will execute a release of such security
interest, and the City will then own the System free and clear, and the City’s obligation to make payments to the District will
terminate if it has not previously ceased. The District and the City recognize that the District will levy its own annual ad
valorem tax to secure additional funds for payment of the Outstanding Bonds, the Bonds and any additional bonds.
The District has agreed to extend the System to serve future users as necessary so that ultimately all landowners in
the District will be in a position to receive services from the System; however, the District’s obligation to extend the System
is conditioned upon continued development within the District, the City’s performance under the provisions of the Utility
Agreement, and satisfaction of certain determinations of economic feasibility by the Board of Directors of the District and
the TCEQ, and TCEQ approval and the ability of the District to sell bonds.
The Utility Agreement further requires the District to pay the City a capital recovery charge (the “City Connection
Charge”) to purchase water supply and wastewater treatment capacity in the City’s existing system. The City Connection
Charge is set by the City and may be amended without the District’s consent at any time. The District has purchased sufficient
capacity to serve all of the commercial tracts developed in the District. See “THE BONDS—Source of and Security for
Payment,” “TAX DATA—Tax Adequacy for Debt Service,” and “THE SYSTEM—Water Supply and Wastewater
Treatment”
TELFAIR
The District is part of the 2,018 acre master-planned community of Telfair in Sugar Land, Texas, consisting of the
District and three other municipal utility districts and an overlapping levee improvement district. Approximately 2,839 single-
family residential lots have been constructed in Telfair. Although not in the District, recreational amenities within Telfair
include a lake system, a greenbelt system, over five miles of landscaped trails, eleven neighborhood parks each with open
space and playground and two recreational pools, a sand volleyball court and a playground. In addition, the Houston Museum
of Natural Science, Sugar Land branch, is located in a 43,000 square foot historic building in Telfair.
THE DISTRICT
General
The District is a municipal utility district created by an order of the TCEQ dated April 1, 2005, after a hearing on a
petition for creation submitted by NNP-Telfair, LLC, the developer of the land in the District. The rights, powers, privileges,
authority and functions of the District are established by the general laws of the State of Texas pertaining to utility districts,
particularly Article XVI, Section 59 and Article XVI, Section 59 of the Texas Constitution, and Chapters 49 and 54 of the
Texas Water Code, as amended.
The District is empowered, among other things, to purchase, construct, operate and maintain all works,
improvements, facilities and plants necessary for the supply and distribution of water; the collection, transportation, and
treatment of wastewater; and the control and diversion of storm water. The District may issue bonds and other forms of
indebtedness to purchase or construct such facilities. The District is also authorized to develop roads and parks and recreation
facilities, including the issuance of bonds payable from taxes for such purposes. Prior to the issuance of any debt, the District
must first obtain the consent of the City to issue any and all bonds. The District is also empowered to establish, operate, and
maintain fire-fighting facilities, independently or with one or more conservation and reclamation districts, after approval by
the voters of the District, although the City’s Fire Department provides such services.
24

The TCEQ exercises continuing supervisory jurisdiction over the District. In order to obtain the consent for creation
from the City, within whose boundaries the District lies, the District is required to observe certain requirements of the City
which: limit the purposes for which the District may sell bonds for the acquisition, construction, and improvement of
waterworks, wastewater, and drainage facilities, the construction and acquisition of roads and the development of park and
recreational facilities; limit the net effective interest rate on such bonds and other terms of such bonds; require approval by
the City of District construction plans; and permit connections only to lots and commercial or multi-family reserves described
in plats which have been approved by the City and recorded in the real property records. Construction and operation of the
District’s system is subject to the regulatory jurisdiction of additional governmental agencies. See “THE SYSTEM—
Regulation.”
Description and Location
The District contains approximately 139 acres of land and is located approximately 20 miles southwest of the central
downtown business district of the City of Houston and lies wholly within the boundaries of the City of Sugar Land. The
District also lies within the boundaries of the Fort Bend Independent School District. The District is bordered by U.S.
Highway 90A on the north, State Highway 6 on the east and Bullhead Bayou on the south.
Land Use
The District currently includes approximately 101 developeable acres of commercial development and
approximately 38 undevelopable acres (drainage and pipeline easements, street rights-of-way, recreation and open spaces and
utility sites).
Status of Commercial Development
All of the developable land within the District (approximately 101 acres) has been provided with water and sanitary
sewer trunk facilities and drainage facilities for commercial development. A 150,000 square foot HEB grocery store, a free-
standing gas station operated by HEB and additional retail space have been constructed on approximately 15 acres. A Hilton
Garden Inn and adjacent retail shopping center have been constructed on approximately 27 of such acres. The Hilton Garden
Inn contains 202 guest rooms and approximately 6,000 square feet of conference meeting space. A Hampton Inn & Suites
has recently been constructed on approximately 2 acres within the District which contains 89 guest rooms. Bonaventure
Plaza is an 18,000 square foot retail shopping center constructed on approximately 2 acres and contains an eye care facility,
three restaurants and/or food related businesses, a nail salon, a dental office, a massage therapy office and State Farm
Insurance. An adjacent medical office building is located on approximately 1 acre and includes an eye care and lasik business,
a dental office and an acupuncture clinic. In addition, four free standing restaurants are located within the District, constructed
on approximately 8 acres. A Whataburger, Dairy Queen and Shipley’s Donuts have been constructed on approximately 3
acres. Two freestanding banks have been constructed on approximately 2 acres. University Plaza, a two-story office and
retail building, has been constructed on approximately 4 acres and is adjacent to an additional two-story office building
located on approximately 2 acres and the Telfair Office Park which has recently been constructed on approximately 8 acres
within the District. Additional development includes a Cornelius nursery on approximately 1 acre, two auto repair
establishments on approximately 2 acres, a car wash on approximately 1 acre, a Learning Center on approximately 2 acres
and a Goodwill Center located on approximately 3 acres. See “RISK FACTORS⸺Infectious Disease Outlook (COVID-
19).”
MANAGEMENT OF THE DISTRICT

Board of Directors
The District is governed by the Board, consisting of five (5) directors, which has control over and management
supervision of all affairs of the District. Directors are elected to four-year terms and elections are held in May in even
numbered years only. All of the Board members own land within the District subject to a note and deed of trust in favor of
NNP-Telfair, LLC the original developer of the District. Directors have staggered four-year terms. The current members and
officers of the Board along with their titles and terms, are listed as follows:
Name Title Term Expires

William Barnes President May 2022
Charles Partin Vice President May 2024
Amanda Malone Secretary May 2022
Virginia Neiser Assistant Vice President May 2024
Mike Thelen Assistant Secretary May 2024
25

District Consultants
The District does not have a general manager or other full-time employees, but contracts for certain necessary
services as described below.
Bond Counsel/Attorney: The District has engaged Allen Boone Humphries Robinson LLP as general counsel to the
District and as Bond Counsel in connection with the issuance of the District’s bonds. The fees of the attorneys in their capacity
as Bond Counsel are contingent upon the sale and delivery of the Bonds. Compensation to the attorneys for other services to
the District is based on time charges actually incurred.
Financial Advisor: Masterson Advisors LLC serves as the District’s Financial Advisor. The fee for services rendered
in connection with the issuance of the Bonds is based on a percentage of the Bonds actually issued, sold and delivered and,
therefore, such fee is contingent upon the sale and delivery of the Bonds.
Auditor: The District’s audited financial statement for the fiscal year ended June 30, 2020, was prepared by McGrath
& Co., PLLC. See APPENDIX A.
Engineer: The District’s consulting engineer is LJA Engineering, Inc.
Tax Appraisal: The Fort Bend Central Appraisal District has the responsibility of appraising all property within the
District. See “TAXING PROCEDURES.”
Tax Assessor/Collector: The District has appointed an independent tax assessor/collector to perform the tax
collection function. Tax Tech, Inc. (the “Tax Assessor/Collector”) has been employed by the District to serve in this capacity.
THE ROADS
The road system serves residents of the District by providing access to major thoroughfares and collectors within
Telfair and the City. Upon completion of road projects, the City accepts the roadway for repair and maintenance.
THE SYSTEM
Regulation
Construction and operation of the District’s water, wastewater and storm drainage system as it now exists or as it
may be expanded from time to time is subject to regulatory jurisdiction of federal, state and local authorities. The TCEQ
exercises continuing, supervisory authority over the District. Discharge of treated sewage into Texas waters, if any, is also
subject to the regulatory authority of the TCEQ and the United States Environmental Protection Agency. Construction of
drainage facilities is subject to the regulatory authority of the Fort Bend County Drainage District, and Fort Bend County, the
City, and the Texas Department of Health also exercise regulatory jurisdiction over the District’s system.
Water Supply and Wastewater Treatment
Customers of the District receive water and wastewater treatment service from the City pursuant to a Utility
Agreement between the District and the City. As a condition of such service, the Utility Agreement obligates the District to
acquire, construct, and extend water, sanitary sewer and drainage facilities (the “System”) to serve land in the District and,
when completed in accordance with approved plans and specifications, to convey title to the System to the City. The City then
operates and maintains the System, and is responsible for establishing water and sewer rates and billing and collecting for
such services. The Utility Agreement provides that the District retains a security interest in the System to secure the City’s
performance under the Utility Agreement until the District’s bonds have been fully paid, at which time the District will
execute a release of such security interest, and the City will own the System unencumbered.
The Utility Agreement further requires the District to pay the City the City Connection Charge to purchase water
supply and wastewater treatment capacity in the City’s existing system. The City Connection Charge is set by the City and
may be amended without the District’s consent at any time. A portion of proceeds from the Bonds will be used to fund City
Connection Charges.
Water Distribution, Wastewater Collection and Storm Drainage Facilities

Water distribution, wastewater collection and storm drainage facilities have been constructed to serve 101 acres of
commercial tracts. See “THE DISTRICT—Land Use.”
26

Flood Protection
A majority of the land within the boundaries of the District is protected from the Brazos River flood plain by levees
constructed and maintained by LID 17. All of the acreage within the District has been officially removed from the floodplain
with the approval of the LID 17 Tract Four Letter of Map Revision (the “LOMR”) issued by the Federal Emergency
Management Agency (“FEMA”) on August 21, 2009.
Flooding Due to Levee Breach or Overtopping: According to the LID 17 engineer, the LID 17 levee and drainage
systems have been designed and constructed to all current standards. However, the levee system does not protect against all
flooding scenarios and flooding could occur in the District as a result of 1) an overtopping of the levee, 2) a failure (or breach)
of the levee system, or 3) localized rainfall in excess of the 100-year event. See “RISK FACTORS—Extreme Weather
An overtopping of the levee could occur if the Brazos River or its tributaries reach flood stages higher than the 100-
year event. The “100-year event” means the river elevation which has a statistical 1% chance of occurring in any given year.
Current FEMA regulations require an earthen levee to be constructed a minimum of three feet above the level of a 100-year
event. Fort Bend County, which regulates LID 17, requires an additional one foot above the 100-year floodplain.
In addition to the risk of overtopping, a portion of the District would experience flooding if the levee failed (or
breached) while the Brazos River (or its tributaries) were at flood state of less than the 100-year event. To mitigate the risk,
LID 17 performs weekly inspections of the levee to observe any visible deterioration of the levee that is in need to repair.
Federal Emergency Management Agency Requirements: “Flood Insurance Rate Map” or “FIRM” means an official
map of a community on which the Federal Emergency Management Agency (FEMA) has delineated the appropriate areas of
flood hazards. The 1% chance of probable inundation, also known as the 100-year flood plain, is depicted on these maps.
The "100‐year flood plain" (or 1% chance of probable inundation) as shown on the FIRM is the estimated geographical area
that would be flooded by a rain storm of such intensity to statistically have a one percent chance of occurring in any given
year. Generally speaking, homes must be built above the 100‐year flood plain in order to meet local regulatory requirements
and to be eligible for federal flood insurance. An engineering or regulatory determination that an area is above the 100‐year
flood plain is not an assurance that homes built in such area will not be flooded, and a number of neighborhoods in the greater
Houston area that are above the 100-year flood plain have flooded multiple times in the last several years.
FEMA commissioned a study to reevaluate the “base flood elevation” (commonly referred to as the 100-year flood
plain elevation) in Fort Bend County. The study concluded that the level of the 100-year flood plain was higher than then
existing standards. LID 17’s engineer concluded that the levee constructed by LID 17 was of sufficient height to meet the
anticipated new FEMA, City and Fort Bend County requirements, and LID 17 submitted a levee recertification package to
FEMA on November 12, 2009. LID 17 received approval of its recertification package on December 30, 2009. Fort Bend
County released the final floodplain maps with an effective date of April 2, 2014. All of the acreage within the LID 17
boundary is outside the floodplain as reflected on the current floodplain maps. See “RISK FACTORS—Extreme Weather
The National Weather Service recently completed a rainfall study known as NOAA Atlas 14, Volume 11
Precipitation-Frequency Atlas of the United States (“Atlas 14”). Floodplain boundaries within the District may be redrawn
based on the Atlas 14 study based on a higher statistical rainfall amount, resulting in the application of more stringent
floodplain regulations applying to a larger area within the District. The application of such regulations could result in higher
insurance rates, increased development fees, and stricter building codes for any property located within the expanded
boundaries of the floodplain.
27

FINANCIAL INFORMATION CONCERNING THE DISTRICT (UNAUDITED)
2020 Certified Taxable Assessed Valuation ............................................................................................. $119,403,617 (a)
Estimated Taxable Assessed Valuation as of January 1, 2021 ................................................................. $130,193,541 (b)
Gross Direct Debt Outstanding ................................................................................................................ $6,180,000 (c)
Estimated Overlapping Debt .................................................................................................................... 10,530,949 (d)
Gross Direct Debt and Estimated Overlapping Debt ................................................................................ $16,710,949
Ratios of Gross Direct Debt to:
2020 Certified Taxable Assessed Valuation ..................................................................................... 5.18%
Ratios of Gross Direct Debt and Estimated Overlapping Debt to:
2020 Certified Taxable Assessed Valuation...................................................................................... 14.00%
Funds Available for Debt Service as of January 11, 2021:
Road Debt Service Funds .................................................................................................................. $77,662 (e)
Water, Sewer and Drainage Debt Service Funds............................................................................... 99,341 (e)
Total Debt Service Funds Available ................................................................................................. $177,003
General Operating Funds Available as of January 11, 2021 .................................................................... $9,276 (f)
_______________
(a) As certified by the Fort Bend Central Appraisal District (the “Appraisal District”). See “TAXING PROCEDURES.”
(b) Provided by the Appraisal District for informational purposes only. Such amounts reflect an estimate of the taxable assessed
value within the District on January 1, 2021. No tax will be levied on such amount until it is certified. Increases in value occurring
between January 1, 2020 and January 1, 2021, will be certified as of January 1, 2022. See “TAXING PROCEDURES.”
(c) Includes the Bonds and the Outstanding Bonds. See “FINANCIAL INFORMATION CONCERNING THE DISTRICT
(UNAUDITED)—Outstanding Debt.”
(d) See “FINANCIAL INFORMATION CONCERNING THE DISTRICT (UNAUDITED)—Estimated Overlapping Debt.”
(e) Although all of the District’s debt, including the Outstanding Bonds and the Bonds, is payable from an unlimited tax pledge on
parity, a pro rata portion of the District’s ad valorem tax revenue will be allocated to the Water, Sewer and Drainage Bonds (as
defined herein) and a pro rata portion will be allocated to Road Bonds (as defined herein). See “FINANCIAL INFORMATION
CONCERNING THE DISTRICT (UNAUDITED)—Outstanding Debt.” The Water, Sewer and Drainage Debt Service Fund
is not pledged to the Road Bonds and the Road Debt Service Fund is not pledged to the Water, Sewer and Drainage Bonds,
including the Bonds.
(f) The District levied a $0.235 per $100 assessed valuation maintenance and operations tax rate for 2020 which will result in revenue
of approximately $280,598. The 2020 taxes are due by January 31, 2021. The balance shown above does not reflect the receipt
of 2020 tax collections due to report timing. See “RISK FACTORS—Operating Funds,” “TAX DATA—Historical Tax Rate
Distribution,” and “—Historical Tax Rate Collections.”
Investments of the District

The District has adopted an Investment Policy as required by the Public Funds Investment Act, Chapter 2256, Texas
Government Code. The District’s goal is to preserve principal and maintain liquidity while securing a competitive yield on
its portfolio. Funds of the District will be invested in short term U.S. Treasuries, certificates of deposit insured by the Federal
Deposit Insurance Corporation (“FDIC”) or secured by collateral evidenced by perfected safekeeping receipts held by a third
party bank, and public funds investment pools rated in the highest rating category by a nationally recognized rating service.
The District does not currently own, nor does it anticipate the inclusion of, long term securities or derivative products in the
District portfolio.
28

Outstanding Debt
The following table lists the original principal amount of all series of bonds issued by the District and the principal
amount of the Outstanding Bonds.
Original Principal Amount
Principal Currently
Series Amount Outstanding
2011 $ 2,375,000 $ -
2013 (a) 2,525,000 1,785,000
2020 (b) 2,065,000 2,065,000
Total $ 6,965,000 $ 3,850,000
(a) Unlimited Tax Road Bonds.

(b) Unlimited Tax Refunding Bonds.
Debt Service Requirements
The following sets forth the debt service on the Outstanding Bonds (see “Outstanding Debt” above) and the estimated
debt service on the Bonds at an estimated interest rate of 3.25%.
Outstanding
Bonds Total
Debt Service Plus: Debt Service on the Bonds Debt Service
Year Requirements Principal Interest Total Requirements
2021 $ 321,560.00 $ 37,862.50 $ 37,862.50 $ 359,422.50
2022 316,510.00 $ 150,000 75,725.00 225,725.00 542,235.00
2023 316,410.00 150,000 70,850.00 220,850.00 537,260.00
2024 315,986.88 145,000 65,975.00 210,975.00 526,961.88
2025 310,277.51 145,000 61,262.50 206,262.50 516,540.01
2026 309,286.26 145,000 56,550.00 201,550.00 510,836.26
2027 307,781.26 145,000 51,837.50 196,837.50 504,618.76
2028 301,131.26 145,000 47,125.00 192,125.00 493,256.26
2029 298,918.76 145,000 42,412.50 187,412.50 486,331.26
2030 291,493.76 145,000 37,700.00 182,700.00 474,193.76
2031 288,768.76 145,000 32,987.50 177,987.50 466,756.26
2032 285,743.76 145,000 28,275.00 173,275.00 459,018.76
2033 282,568.76 145,000 23,562.50 168,562.50 451,131.26
2034 279,156.26 145,000 18,850.00 163,850.00 443,006.26
2035 280,331.26 145,000 14,137.50 159,137.50 439,468.76
2036 271,162.51 145,000 9,425.00 154,425.00 425,587.51
2037 266,815.63 145,000 4,712.50 149,712.50 416,528.13
Total $ 5,043,902.63 $ 2,330,000 $ 679,250.00 $ 3,009,250.00 $ 8,053,152.63
Average Annual Debt Service Requirements (2021-2037) ....................................................................................... $480,858
Maximum Annual Debt Service Requirement (2022) ............................................................................................... $542,235
29

Estimated Overlapping Debt
The following table indicates the outstanding debt payable from ad valorem taxes, of governmental entities within
which the District is located and the estimated percentages and amounts of such indebtedness attributable to property within
the District. Debt figures equated herein to outstanding obligations payable from ad valorem taxes are based upon data
obtained from individual jurisdictions or Texas Municipal Reports compiled and published by the Municipal Advisory
Council of Texas. Furthermore, certain entities listed below may have issued additional obligations since the date listed and
may have plans to incur significant amounts of additional debt. Political subdivisions overlapping the District are authorized
by Texas law to levy and collect ad valorem taxes for the purposes of operation, maintenance and/or general revenue purposes
in addition to taxes for the payment of debt service and the tax burden for operation, maintenance and/or general revenue
purposes is not included in these figures. The District has no control over the issuance of debt or tax levies of any such
entities.
Outstanding Overlapping
Taxing Jurisdiction Bonds As of Percent Amount
Fort Bend County……………………………………… $ 664,849,310 12/31/2020 0.15% $ 997,274
Fort Bend LID No. 17 (a)……………………………… 64,655,000 12/31/2020 6.08% 3,931,024
Fort Bend Independent School District……………… 1,297,633,767 12/31/2020 0.26% 3,373,848
City of Sugar Land……………………………………… 313,915,996 12/31/2020 0.71% 2,228,804
Total Estimated Overlapping Debt………………………………………………………………….……………… $ 10,530,949
The District's Total Direct Debt (b)………………………………………………………………….……………… 6,180,000
Total Direct and Estimated Overlapping Debt………………………………………………………………….……$ 16,710,949
Direct Debt and Estimated Overlapping Debt as a Percentage of:
2020 Certified Taxable Assessed Valuation…..................................................................................................... 14.00%
Estimate of Taxable Assessed Valuation as of January 1, 2021….................................................................... 12.84%
(a) See “RISK FACTORS⸺Overlapping Debt and Taxes.”

(b) The Bonds and the Outstanding Bonds.
Overlapping Taxes
Property within the District is subject to taxation by several taxing authorities in addition to the District. On January
1 of each year a tax lien attaches to property to secure the payment of all taxes, penalties and interest imposed on such
property. The lien exists in favor of each taxing unit, including the District, having the power to tax the property. The District’s
tax lien is on parity with tax liens of taxing authorities shown below. In addition to ad valorem taxes required to pay debt
service on bonded debt of the District and other taxing authorities (see “Estimated Overlapping Debt” above), certain taxing
jurisdictions, including the District, are also authorized by Texas law to assess, levy and collect ad valorem taxes for operation,
maintenance, administrative and/or general revenue purposes.
Set forth below are all of the taxes levied for the 2020 tax year by all taxing jurisdictions overlapping the District
and the District. No recognition is given to local assessments for civic association dues, fire department contributions, solid
waste disposal charges or any other levy of entities other than political subdivisions.
2020
Tax Rate
per $100 of Taxable
Assessed Valuation
Fort Bend County (including Drainage District)……… $ 0.453207

Fort Bend LID No. 17 (a)………………………………… 0.560000
Fort Bend Independent School District………………… 1.240200
City of Sugar Land………………………………………… 0.336500
Total Overlapping Tax Rate……………………………… $ 2.589907
The District (b)…………………………………………… 0.420000
Total Tax Rate…………………………………………… $ 3.009907
(a) See “RISK FACTORS⸺Overlapping Debt and Taxes.”

(b) See “TAX DATA⸺Debt Service Tax” and “⸺Maintenance Tax.”
30

Operating Fund
The following statement sets forth in condensed form, the General Operating Fund, as shown in the District’s audited
financial statements for the fiscal years ending June 30, 2016 through June 30, 2020. Accounting principles customarily
employed in the determination of net revenues have been observed and in all instances exclude depreciation. Reference is
made to “APPENDIX A” for further and complete information.
Fiscal Year Ended June 30
2020 2019 2018 2017 2016

Revenues
Property Taxes $ 234,364 $ 180,493 $ 174,592 $ 135,128 $ 131,389
Master District Connection Charges - - - 38,450 195,685
Other 3,223 6,492 710 606 502
Total Revenues $ 237,587 $ 186,985 $ 175,302 $ 174,184 $ 327,576
Expenditures
Professional Fees $ 96,078 $ 72,923 $ 68,084 $ 71,059 $ 64,222
Purchased or Contracted Services 12,281 12,019 12,413 12,600 12,225
Administrative Expenses 20,043 23,992 21,089 23,904 18,799
Capital Outlay 27,287 162,474 - 120,629 310,152
Other 480 135 - 265 483
Developer Interest 2,184 9,738 - - -
Debt Service - Interest and Fees - - - 746 -
Total Expenditures $ 158,353 $ 281,281 $ 101,586 $ 229,203 $ 405,881
NET REVENUES $ 79,234 $ (94,296) $ 73,716 $ (55,019) $ (78,305)

Repayment of Developer Advances $ (231,750) $ - $ - $ - $ -
General Operating Fund

Balance (Beginning of Year) $ 271,849 $ 366,145 $ 292,429 $ 347,448 $ 425,753
General Operating Fund
Balance (End of Year) $ 119,333 $ 271,849 $ 366,145 $ 292,429 $ 347,448
31

TAX DATA
Debt Service Tax
The Board covenants in the Bond Resolution to levy and assess, for each year that all or any part of the Bonds remain
outstanding and unpaid, a tax adequate to provide funds to pay the principal of and interest on the Bonds. See “Historical Tax
Rate Distribution” and “Tax Roll Information” below, and “TAXING PROCEDURES.”
Maintenance Tax
The Board has the statutory authority to levy and collect an annual ad valorem tax for the operation and maintenance
of the District, if such a maintenance tax is authorized by the District’s voters. A maintenance tax election was conducted
September 10, 2005, and voters of the District authorized, among other things, the Board to levy a maintenance tax at a rate
not to exceed $1.50 per $100 appraised valuation. A maintenance tax is in addition to taxes which the District is authorized
to levy for paying principal of and interest on the Bonds. See “Debt Service Tax” above.
Historical Tax Rate Distribution
2016 2017 2018 2019 2020

Debt Service $ 0.260 $ 0.220 $ 0.215 $ 0.185 $ 0.185 (a)
Maintenance and Operations 0.160 0.200 0.205 0.235 0.235
Total $ 0.420 $ 0.420 $ 0.420 $ 0.420 $ 0.420
(a) For tax year 2020, the total debt service tax rate of $0.185 per $100 assessed valuation is comprised of $0.150 for payment of
Water, Sewer and Drainage Bond debt service and $0.035 for payment of Road Bond debt service.
Tax Exemptions
The District is currently not granting any exemptions.
Additional Penalties
The District has contracted with a delinquent tax attorney to collect certain delinquent taxes. In connection with that
contract, the District established an additional penalty of twenty percent (20%) of the tax to defray the costs of collection.
This 20% penalty applies to taxes that either: (1) become delinquent on or after February 1 of a year, but not later than May
1 of that year, and that remain delinquent on April 1 (for personal property) and July 1 (for real property) of the year in which
they become delinquent or (2) become delinquent on or after June 1, pursuant to the Texas Tax Code.
Historical Tax Collections
The following statement of tax collections sets forth in condensed form a portion of the historical tax experience of
the District. Such table has been prepared for inclusion herein, based upon information obtained from the District’s Tax
Assessor/Collector. Reference is made to such statements and records for further and complete information. See “Tax Roll
Information” below.
Certified Total Collections

Tax Taxable Assessed Tax Total as of December 31, 2020 (b)
Year Valuation(a) Rate Tax Levy Amount Percent
2015 $ 81,875,040 $ 0.43 $ 352,063 $ 352,045 99.99%
2016 84,945,540 0.42 356,771 356,065 99.80%
2017 90,615,667 0.42 380,586 379,745 99.78%
2018 91,602,272 0.42 384,730 383,288 99.63%
2019 101,476,575 0.42 429,719 427,307 99.44%
2020 119,403,617 0.42 501,495 (c) (c)
(a) As certified by the Appraisal District. See “Tax Roll Information” herein.
(b) Unaudited.
(c) In the process of collections. 2020 taxes are due by January 31, 2021.
32

Tax Roll Information
The District’s assessed value as of January 1 of each year is used by the District in establishing its tax rate (see
“TAXING PROCEDURES—Valuation of Property for Taxation”). The following represents the composition of property
comprising the 2016 through 2020 Certified Taxable Assessed Valuations and the Estimated Taxable Assessed Valuation as
of January 1, 2021. Taxes are levied on taxable value certified by the Appraisal District as of January 1 of each year.
Type of Property Gross Deferments Net Taxable

Tax Personal Assessed and Assessed
Year Land Improvements Property Valuations Exemptions(a) Valuations
2016 $ 32,324,480 $ 42,672,420 $ 10,047,730 $ 85,044,630 $ (99,090) $ 84,945,540
2017 33,873,610 48,165,247 8,837,710 90,876,567 (260,900) 90,615,667
2018 32,421,770 49,330,412 10,110,480 91,862,662 (260,390) 91,602,272
2019 32,843,790 56,647,988 11,191,780 100,683,558 (224,820) 100,458,738
2020 35,377,180 72,748,577 11,529,400 119,655,157 (251,540) 119,403,617
1/1/21(b) 35,196,470 83,719,211 11,529,400 130,445,081 (251,540) 130,193,541
(a) See “TAXING PROCEDURES⸺Property Subject to Taxation by the District.”

(b) Provided by the Appraisal District for information purposes only. Such amount reflects the estimated value as of January 1, 2021.
Taxes are levied based on value as certified by the Appraisal District as of January 1 of each year. No taxes will be levied upon
such amount until it is certified by the Appraisal District. See “TAXING PROCEDURES.”
Principal Taxpayers
The following table represents the principal taxpayers, the taxable assessed value of such property, and such
property’s taxable assessed value as a percentage of the 2020 Certified Taxable Assessed Valuation of $119,403,617. This
represents ownership as of January 1, 2020. See “RISK FACTORS⸺Infectious Disease Outlook (COVID-19)” and “—
Dependence on Principal Taxpayers.” A principal taxpayer list related to the Estimated Taxable Assessed Valuation as of
January 1, 2021, is not available.
% of
2020 Certified 2020 Certified
Taxable Assessed Taxable Assessed
Taxpayer Valuation Valuation
HEB Grocery Company LP $ 18,250,640 15.28%
GPI Hospitality Sugar Land LLC (a) 17,359,090 14.54%
TCT Reserve C Ltd. 6,092,300 5.10%
Rare Roses USA LP 5,441,120 4.56%
Avalon Sugar Land Hospitality LLC 5,206,680 4.36%
Hwy 6 & 90 Ltd. 4,471,150 3.74%
Don Levin Trust 3,606,179 3.02%
300 Promenade Way Interests Ltd. 3,369,340 2.82%
Imperial Realty Group LLC 3,281,200 2.75%
MBMG LP 3,105,290 2.60%
Total $ 70,182,989 58.78%
(a) Hilton Garden Inn.
33

Tax Adequacy for Debt Service
The tax rate calculations set forth below are presented to indicate the tax rates per $100 taxable assessed valuation
which would be required to meet average annual and maximum annual debt service requirements if no growth in the District’s
tax base occurred beyond the 2020 Certified Taxable Assessed Valuation of $119,403,617 and the Estimated Taxable
Assessed Valuation as of January 1, 2021, of $130,193,541. The calculations contained in the following table are performed
without receipt of the City rebate (see “UTILITY AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF SUGAR
LAND”) and represent the tax rates required to pay principal of and interest on the Bonds and the Outstanding Bonds, when
due, assuming no further increase or any decrease in taxable assessed values in the District, collection of ninety-five percent
(95%) of taxes levied, the sale of no additional bonds, and no other funds available for the payment of debt service. While
the District anticipates using a portion of the City tax rebate to pay debt service on the Bonds and the Outstanding Bonds,
such revenue is not pledged to the payment of the Bonds or the Outstanding Bonds and is therefore not included in the
calculations. See “FINANCIAL INFORMATION CONCERNING THE DISTRICT (UNAUDITED)—Debt Service
Requirements” and “UTILITY AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF SUGAR LAND.”
Average Annual Debt Service Requirement (2021-2037) ................................................................. $480,858
$0.43 Tax Rate on the 2020 Certified Taxable Assessed Valuation ........................................... $487,764
$0.39 Tax Rate on the Estimated Taxable Assessed Valuation as of January 1, 2021 ............... $482,367
Maximum Annual Debt Service Requirement (2022)........................................................................ $542,235
$0.48 Tax Rate on the 2020 Certified Taxable Assessed Valuation ........................................... $544,480
$0.44 Tax Rate on the Estimated Taxable Assessed Valuation as of January 1, 2021 ............... $544,209
No representation or suggestion is made that the Estimated Taxable Assessed Valuation as of January 1, 2021
provided by the Appraisal District for the District will be certified as taxable value by the Appraisal District, and no person
should rely upon such amounts or their inclusion herein as assurance of their attainment. See “TAXING PROCEDURES.”
TAXING PROCEDURES
Authority to Levy Taxes
The Board is authorized to levy an annual ad valorem tax, without legal limitation as to rate or amount, on all taxable
property within the District in an amount sufficient to pay the principal of and interest on the Outstanding Bonds and the
Bonds and any additional bonds payable from taxes which the District may hereafter issue (see “RISK FACTORS—Future
Debt”) and to pay the expenses of assessing and collecting such taxes. The District agrees in the Bond Resolution to levy
such a tax from year-to-year as described more fully herein under “THE BONDS—Source of and Security for Payment.”
Under Texas law, the Board may also levy and collect an annual ad valorem tax for the operation and maintenance of the
District. See “TAX DATA—Debt Service Tax” and “—Maintenance Tax.”
Property Tax Code and County-Wide Appraisal District
Title I of the Texas Tax Code (the “Property Tax Code”) specifies the taxing procedures of all political subdivisions
of the State of Texas, including the District. Provisions of the Property Tax Code are complex and are not fully summarized
here.
The Property Tax Code requires, among other matters, county-wide appraisal and equalization of taxable property
values and establishes in each county of the State of Texas an appraisal district with the responsibility for recording and
appraising property for all taxing units within a county and an appraisal review board with responsibility for reviewing and
equalizing the values established by the appraisal district. The Fort Bend Central Appraisal District (the “Appraisal District”)
has the responsibility for appraising property for all taxing units within Fort Bend County, including the District. Such
appraisal values are subject to review and change by the Fort Bend Central Appraisal Review Board (the “Appraisal Review
Board”).
Property Subject to Taxation by the District
Except for certain exemptions provided by Texas law, all real property, tangible personal property held or used for
the production of income, mobile homes and certain categories of intangible personal property with a tax situs in the District
are subject to taxation by the District. Principal categories of exempt property include, but are not limited to: property owned
by the State of Texas or its political subdivisions if the property is used for public purposes; property exempt from ad valorem
taxation by federal law; certain household goods, family supplies, and personal effects; certain goods, wares and merchandise
in transit; farm products owned by the producer; certain property of charitable organizations, youth development associations,
religious organizations, and qualified schools; designated historical sites; and most individually owned automobiles. In
addition, the District may by its own action exempt residential homesteads of persons sixty-five (65) years of age or older
34

and of certain disabled persons to the extent deemed advisable by the Board. The District may be required to call such an
election upon petition by twenty percent (20%) of the number of qualified voters who voted in the previous election. The
District is authorized by statute to disregard exemptions for the disabled and elderly if granting the exemption would impair
the District’s obligation to pay tax supported debt incurred prior to adoption of the exemption by the District. Furthermore,
the District must grant exemptions to disabled veterans or certain surviving dependents of disabled veterans, if requested, of
between $5,000 and $12,000 of taxable valuation depending upon the disability rating of the veteran. A veteran who receives
a disability rating of 100% is entitled to an exemption for the full amount of the veteran’s residential homestead. Additionally,
subject to certain conditions, the surviving spouse of a disabled veteran who is entitled to an exemption for the full value of
the veteran’s residence homestead is also entitled to an exemption from taxation of the total appraised value of the same
property to which the disabled veteran’s exemption applied. A partially disabled veteran or certain surviving spouses of
partially disabled veterans are entitled to an exemption from taxation of a percentage of the appraised value of their residence
homestead in an amount equal to the partially disabled veteran’s disability rating if the residence homestead was donated by
a charitable organization. Also, the surviving spouse of a member of the armed forces who was killed in action is, subject to
certain conditions, entitled to an exemption of the total appraised value of the surviving spouse’s residence homestead and,
subject to certain conditions, an exemption up to the same amount may be transferred to a subsequent residence homestead
of the surviving spouse. The surviving spouse of a first responder who was killed or fatally injured in the line of duty is,
subject to certain conditions, also entitled to an exemption of the total appraised value of the surviving spouse’s residence
homestead, and, subject to certain conditions, an exemption up to the same amount may be transferred to a subsequent
residence homestead of the surviving spouse. See “TAX DATA.”
Residential Homestead Exemptions: The Property Tax Code authorizes the governing body of each political
subdivision in the State of Texas to exempt up to twenty percent (20%) of the appraised value of residential homesteads from
ad valorem taxation. Where ad valorem taxes have previously been pledged for the payment of debt, the governing body of
a political subdivision may continue to levy and collect taxes against the exempt value of the homesteads until the debt is
discharged, if the cessation of the levy would impair the obligations of the contract by which the debt was created. The
adoption of a homestead exemption may be considered each year, but must be adopted before July 1. To date, the District has
not adopted a general residential homestead exemption. See “TAX DATA.”
Freeport Goods and Goods-in-Transit Exemptions: A “Freeport Exemption” applies to goods, wares, ores, and
merchandise other than oil, gas, and petroleum products (defined as liquid and gaseous materials immediately derived from
refining petroleum or natural gas), and to aircraft or repair parts used by a certified air carrier acquired in or imported into
Texas which are destined to be forwarded outside of Texas and which are detained in Texas for assembling, storing,
manufacturing, processing or fabricating for less than 175 days. Although certain taxing units may take official action to tax
such property in transit and negate such exemption, the District does not have such an option. A "Goods-in-Transit"
Exemption is applicable to the same categories of tangible personal property which are covered by the Freeport Exemption,
if, for tax year 2011 and prior applicable years, such property is acquired in or imported into Texas for assembling, storing,
manufacturing, processing, or fabricating purposes and is subsequently forwarded to another location inside or outside of
Texas not later than 175 days after acquisition or importation, and the location where said property is detained during that
period is not directly or indirectly owned or under the control of the property owner. For tax year 2012 and subsequent years,
such Goods-in-Transit Exemption includes tangible personal property acquired in or imported into Texas for storage purposes
only if such property is stored under a contract of bailment by a public warehouse operator at one or more public warehouse
facilities in Texas that are not in any way owned or controlled by the owner of such property for the account of the person
who acquired or imported such property. A property owner who receives the Goods-in-Transit Exemption is not eligible to
receive the Freeport Exemption for the same property. Local taxing units such as the District may, by official action and after
public hearing, tax goods-in-transit personal property. A taxing unit must exercise its option to tax goods-in-transit property
before January 1 of the first tax year in which it proposes to tax the property at the time and in the manner prescribed by
applicable law. The District has taken official action to allow taxation of all such goods-in-transit personal property for all
prior and subsequent years.
Tax Abatement
Fort Bend County or the City may designate all or part of the area within the District as a reinvestment zone.
Thereafter, Fort Bend County, the City and the District, under certain circumstances, may enter into tax abatement agreements
with owners of property within the zone. Prior to entering into a tax abatement agreement, each entity must adopt guidelines
and criteria for establishing tax abatement, which each entity will follow in granting tax abatement to owners of property.
The tax abatement agreements may exempt from ad valorem taxation by each of the applicable taxing jurisdictions, including
the District, for a period of up to ten (10) years, all or any part of any increase in the appraised valuation of property covered
by the agreement over its appraised valuation in the year in which the agreement is executed, on the condition that the
property owner make specified improvements or repairs to the property in conformity with the terms of the tax abatement
agreement. Each taxing jurisdiction has discretion to determine terms for its tax abatement agreements without regard to the
terms approved by the other taxing jurisdictions.
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Valuation of Property for Taxation
Generally, property in the District must be appraised by the Appraisal District at market value as of January 1 of
each year. Once an appraisal roll is prepared and finally approved by the Appraisal Review Board, it is used by the District
in establishing its tax rolls and tax rate. Assessments under the Property Tax Code are to be based on one hundred percent
(100%) of market value, as such is defined in the Property Tax Code.
Nevertheless, certain land may be appraised at less than market value under the Property Tax Code. Increases in the
appraised value of residence homesteads are limited by the Texas Constitution to ten percent (10%) annually regardless of
the market value of the property. The Property Tax Code permits land designated for agricultural use, open space or
timberland to be appraised at its value based on the land’s capacity to produce agricultural or timber products rather than at
its fair market value. The Property Tax Code permits under certain circumstances that residential real property inventory
held by a person in the trade or business be valued at the price all such property would bring if sold as a unit to a purchaser
who would continue the business. Provisions of the Property Tax Code are complex and are not fully summarized here.
Landowners wishing to avail themselves of the agricultural use, open space or timberland designation or residential real
property inventory designation must apply for the designation and the appraiser is required by the Property Tax Code to act
on each claimant’s right to the designation individually. A claimant may waive the special valuation as to taxation by some
political subdivisions while claiming it as to another. If a claimant receives the agricultural use designation and later loses it
by changing the use of the property or selling it to an unqualified owner, the District can collect taxes based on the new use,
including taxes for the previous three (3) years for agricultural use, open space land, and timberland.
The Property Tax Code requires the Appraisal District to implement a plan for periodic reappraisal of property to
update appraisal values. The plan must provide for appraisal of all real property in the Appraisal District at least once every
three (3) years. It is not known what frequency of reappraisal will be utilized by the Appraisal District or whether reappraisals
will be conducted on a zone or county-wide basis. The District, however, at its expense has the right to obtain from the
Appraisal District a current estimate of appraised values within the District or an estimate of any new property or
improvements within the District. While such current estimate of appraised values may serve to indicate the rate and extent
of growth of taxable values within the District, it cannot be used for establishing a tax rate within the District until such time
as the Appraisal District chooses formally to include such values on its appraisal roll.
The Property Tax Code provides for a temporary exemption from ad valorem taxation of a portion of the appraised
value of certain property that is at least 15% damaged by a disaster and located within an area declared to be a disaster area
by the governor of the State of Texas. This temporary exemption is automatic if the disaster is declared prior to a taxing unit,
such as the District, adopting its tax rate for the tax year. A taxing unit, such as the District, may authorize the exemption at
its discretion if the disaster is declared after the taxing unit has adopted its tax rate for the tax year. The amount of the
exemption is based on the percentage of damage and is prorated based on the date of the disaster. Upon receipt of an
application submitted within the eligible timeframe by a person who qualifies for a temporary exemption under the Property
Tax Code, the Appraisal District is required to complete a damage assessment and assign a damage assessment rating to
determine the amount of the exemption. The temporary exemption amounts established in the Property Tax Code range from
15% for property less than 30% damaged to 100% for property that is a total loss. Any such temporary exemption granted
for disaster-damaged property expires on January 1 of the first year in which the property is reappraised.
District and Taxpayer Remedies
Under certain circumstances taxpayers and taxing units (such as the District) may appeal the orders of the Appraisal
Review Board by filing a timely petition for review in State district court. In such event, the value of the property in question
will be determined by the court or by a jury if requested by any party. Additionally, taxing units may bring suit against the
Appraisal District to compel compliance with the Property Tax Code.
The Property Tax Code sets forth notice and hearing procedures for certain tax rate increases by the District and
provides for taxpayer referenda which could result in the repeal of certain tax increases. The Property Tax Code also
establishes a procedure for notice to property owners of reappraisals reflecting increased property value, appraisals which are
higher than renditions, and appraisals of property not previously on an appraisal roll.
36

Levy and Collection of Taxes
The District is responsible for the levy and collection of its taxes unless it elects to transfer such functions to another
governmental entity. The rate of taxation is set by the Board of Directors, after the legally required notice has been given to
owners of property within the District, based upon: a) the valuation of property within the District as of the preceding January
1, and b) the amount required to be raised for debt service, maintenance purposes, and authorized contractual obligations.
Taxes are due October 1, or when billed, whichever comes later, and become delinquent if not paid before February 1 of the
year following the year in which imposed. A delinquent tax incurs a penalty of six percent (6%) of the amount of the tax for
the first calendar month it is delinquent, plus one percent (1%) for each additional month or portion of a month the tax remains
unpaid prior to July 1 of the year in which it becomes delinquent. If the tax is not paid by July 1 of the year in which it
becomes delinquent, the tax incurs a total penalty of twelve percent (12%) regardless of the number of months the tax has
been delinquent and incurs an additional penalty for collection costs of an amount established by the District and a delinquent
tax attorney. A delinquent tax on personal property incurs an additional penalty, in an amount established by the District and
a delinquent tax attorney, 60 days after the date the taxes become delinquent. The delinquent tax accrues interest at a rate of
one percent (1%) for each month or portion of a month it remains unpaid. The Property Tax Code makes provisions for the
split payment of taxes, discounts for early payment and the postponement of the delinquency date of taxes under certain
circumstances which, at the option of the District, may be rejected by taxing units. The District’s tax collector is required to
enter into an installment payment agreement with any person who is delinquent on the payment of tax on a residence
homestead for payment of tax, penalties and interest, if the person requests an installment agreement in writing and has not
entered into an installment agreement with the collector in the preceding 24 months. The installment agreement must provide
for payments to be made in monthly installments and must extend for a period of at least 12 months and no more than 36
months. Additionally, the owner of a residential homestead property who is (i) sixty-five (65) years of age or older, (ii)
disabled, or (iii) a disabled veteran, is entitled by law to pay current taxes on a residential homestead in installments without
penalty or to defer the payment of taxes during the time of ownership. In the instance of tax deferral, a tax lien remains on
the property and interest continues to accrue during the period of deferral.
Certain qualified taxpayers, including owners of residential homesteads, located within a natural disaster area and
whose property has been damaged as a direct result of the disaster, are entitled to enter into a tax payment installment
agreement with a taxing jurisdiction such as the District if the tax payer pays at least one-fourth of the tax bill imposed on the
property by the delinquency date. The remaining taxes may be paid without penalty or interest in three equal installments
within six months of the delinquency date.
Rollback of Operation and Maintenance Tax Rate
Chapter 49 of the Texas Water Code, as amended, classifies districts differently based on the current operation and
maintenance tax rate or on the percentage of build-out that the district has completed. Districts that have adopted an operation
and maintenance tax rate for the current year that is 2.5 cents or less per $100 of taxable value are classified as “Special
Taxing Units.” Districts that have financed, completed, and issued bonds to pay for all improvements and facilities necessary
to serve at least 95% of the projected build-out of the district are classified as “Developed Districts.” Districts that do not
meet either of the classifications previously discussed can be classified herein as “Developing Districts.” The impact each
classification has on the ability of a district to increase its maintenance and operations tax rate is described for each
classification below. Debt service and contract tax rates cannot be reduced by a rollback election held within any of the
districts described below.
Special Taxing Units: Special Taxing Units that adopt a total tax rate that would impose more than 1.08 times the
amount of the total tax imposed by such district in the preceding tax year on a residence homestead appraised at the average
appraised value of a residence homestead, subject to certain homestead exemptions, are required to hold an election within
the district to determine whether to approve the adopted total tax rate. If the adopted total tax rate is not approved at the
election, the total tax rate for a Special Taxing Unit is the current year's debt service and contract tax rate plus 1.08 times the
previous year's operation and maintenance tax rate.
Developed Districts: Developed Districts that adopt a total tax rate that would impose more than 1.035 times the
amount of the total tax imposed by the district in the preceding tax year on a residence homestead appraised at the average
appraised value of a residence homestead, subject to certain homestead exemptions for the preceding tax year, plus any
unused increment rates, as calculated and described in Section 26.013 of the Tax Code, are required to hold an election within
the district to determine whether to approve the adopted total tax rate. If the adopted total tax rate is not approved at the
election, the total tax rate for a Developed District is the current year's debt service and contract tax rate plus 1.035 times the
previous year's operation and maintenance tax rate plus any unused increment rates. In addition, if any part of a Developed
District lies within an area declared for disaster by the Governor of Texas or President of the United States, alternative
procedures and rate limitations may apply for a temporary period. If a district qualifies as both a Special Taxing Unit and a
Developed District, the district will be subject to the operation and maintenance tax threshold applicable to Special Taxing
Units.
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Developing Districts: Districts that do not meet the classification of a Special Taxing Unit or a Developed District
can be classified as Developing Districts. The qualified voters of these districts, upon the Developing District's adoption of a
total tax rate that would impose more than 1.08 times the amount of the total tax rate imposed by such district in the preceding
tax year on a residence homestead appraised at the average appraised value of a residence homestead, subject to certain
homestead exemptions, are authorized to petition for an election to reduce the operation and maintenance tax rate. If an
election is called and passes, the total tax rate for Developing Districts is the current year's debt service and contract tax rate
plus 1.08 times the previous year's operation and maintenance tax rate.
The District: A determination as to a district’s status as a Special Taxing Unit, Developed District or Developing
District will be made by the Board of Directors on an annual basis. For the 2020 tax year, the Board of Directors has
determined that the District is a Developing District. The District cannot give any assurances as to what its classification will
be for any future tax years or whether the District's future tax rates will result in a total tax rate that will reclassify the District
into a new classification and new election calculation.
District’s Rights in the Event of Tax Delinquencies

Taxes levied by the District are a personal obligation of the owner of the property as of January 1 of the year for
which the tax is imposed. On January 1 of each year, a tax lien attaches to property to secure the payment of all state and
local taxes, penalties, and interest ultimately imposed for the year on the property. The lien exists in favor of the State of
Texas and each local taxing unit, including the District, having power to tax the property. The District’s tax lien is on parity
with tax liens of such other taxing units. See “FINANCIAL INFORMATION CONCERNING THE DISTRICT
(UNAUDITED)—Overlapping Taxes.” A tax lien on real property takes priority over the claim of most creditors and other
holders of liens on the property encumbered by the tax lien, whether or not the debt or lien existed before the attachment of
the tax lien; however, whether a lien of the United States is on parity with or takes priority over a tax lien of the District is
determined by applicable federal law. Personal property under certain circumstances is subject to seizure and sale for the
payment of delinquent taxes, penalty, and interest.
At any time after taxes on property become delinquent, the District may file suit to foreclose the lien securing
payment of the tax, to enforce personal liability for the tax, or both subject to the restrictions on residential homesteads
described above under “Levy and Collection of Taxes”. In filing a suit to foreclose a tax lien on real property, the District
must join other taxing units that have claims for delinquent taxes against all or part of the same property. Collection of
delinquent taxes may be adversely affected by the amount of taxes owed to other taxing units, by the effects of market
conditions on the foreclosure sale price, by taxpayer redemption rights or by bankruptcy proceedings which restrict the
collection of taxpayer debts. A taxpayer may redeem property within two (2) years for residential and agricultural property
and six (6) months for commercial and all other types of property after the purchaser’s deed issued at the foreclosure sale is
filed in the county records. The District’s ability to foreclose its tax lien or collect penalties or interest on delinquent taxes
may be limited on property owned by a financial institution which is under receivership by the Federal Deposit Insurance
Corporation pursuant to the Federal Deposit Insurance Act, 12 U.S.C. 1825, as amended. See “RISK FACTORS—General”
and “—Tax Collections Limitations and Foreclosure Remedies.”
The Effect of FIRREA on Tax Collections of the District
The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“FIRREA”) contains certain provisions
which affect the time for protesting property valuations, the fixing of tax liens and the collection of penalties and interest on
delinquent taxes on real property owned by the Federal Deposit Insurance Corporation (“FDIC”) when the FDIC is acting as
the conservator or receiver of an insolvent financial institution.
Under FIRREA, real property held by the FDIC is still subject to ad valorem taxation, but such act states (i) that no
real property of the FDIC shall be subject to foreclosure or sale without the consent of the FDIC and no involuntary liens
shall attach to such property, (ii) the FDIC shall not be liable for any penalties, interest, or fines, including those arising from
the failure to pay any real or personal property tax when due, and (iii) notwithstanding failure of a person to challenge an
appraisal in accordance with state law, such value shall be determined as of the period for which such tax is imposed.
To the extent that the FDIC attempts to enforce the same, these provisions may affect the timeliness of collection of
taxes on property, if any, owned by the FDIC in the District and may prevent the collection of penalties and interest on such
taxes or may affect the valuation of such property.
38

LEGAL MATTERS
Legal Proceedings
Delivery of the Bonds will be accompanied by the unqualified approving legal opinion of the Attorney General of
Texas to the effect that the Bonds are valid and legally binding obligations of the District under the Constitution and laws of
the State of Texas payable from the proceeds of an annual ad valorem tax levied by the District, without limit as to rate or
amount, upon all taxable property within the District, and, based upon their examination of a transcript of certified
proceedings relating to the issuance and sale of the Bonds, the approving legal opinion of Allen Boone Humphries Robinson
LLP, Bond Counsel, to a like effect and to the effect that, under existing law, interest on the Bonds is excludable from gross
income for federal income tax purposes and interest on the Bonds is not subject to the alternative minimum tax on individuals.
Bond Counsel has reviewed the information appearing in this OFFICIAL STATEMENT under “UTILITY
AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF SUGAR LAND,” “THE BONDS,” “THE DISTRICT—
General,” “TAXING PROCEDURES,” “LEGAL MATTERS,” “TAX MATTERS” and “CONTINUING DISCLOSURE
OF INFORMATION” solely to determine if such information, insofar as it relates to matters of law, is true and correct, and
whether such information fairly summarizes the provisions of the documents referred to therein. Bond Counsel has not,
however, independently verified any of the factual information contained in this OFFICIAL STATEMENT nor has it
conducted an investigation of the affairs of the District for the purpose of passing upon the accuracy or completeness of this
OFFICIAL STATEMENT. No person is entitled to rely upon Bond Counsel’s limited participation as an assumption of
responsibility for or an expression of opinion of any kind with regard to the accuracy or completeness of any information
contained herein.
Allen Boone Humphries Robinson LLP also serves as general counsel to the District on matters other than the
issuance of bonds. The legal fees paid to Bond Counsel for services rendered in connection with the issuance of the Bonds
are based on a percentage of the bonds actually issued, sold and delivered and, therefore, such fees are contingent upon the
sale and delivery of the Bonds.
The various legal opinions to be delivered concurrently with the delivery of the Bonds express the professional
judgment of the attorneys rendering the opinions as to the legal issues explicitly addressed therein. In rendering a legal
opinion, the attorney does not become an insurer or guarantor of the expression of professional judgment, of the transaction
opined upon, or of the future performance of the parties to the transaction, nor does the rendering of an opinion guarantee the
outcome of any legal dispute that may arise out of the transaction.
No Material Adverse Change
The obligations of the Underwriter to take and pay for the Bonds, and of the District to deliver the Bonds, are subject
to the condition that, up to the time of delivery of and receipt of payment for the Bonds, there shall have been no material
adverse change in the condition (financial or otherwise) of the District from that set forth or contemplated in the OFFICIAL
STATEMENT.
No-Litigation Certificate
The District will furnish the Underwriter a certificate, executed by both the President or Vice President and Secretary
or Assistant Secretary/Assistant Vice President of the Board, and dated as of the date of delivery of the Bonds, to the effect
no litigation of any nature is pending or to its knowledge threatened, either in state or federal courts contesting or attacking
the Bonds; restraining or enjoining the levy, assessment and collection of ad valorem taxes to pay the interest or principal on
the Bonds in any manner questioning the authority or proceedings for the issuance, execution or delivery of the Bonds or
affecting the validity of the Bonds or the title of the present officers of the District.
TAX MATTERS
In the opinion of Allen Boone Humphries Robinson LLP, Bond Counsel, under existing law, interest on the Bonds
is excludable from gross income for federal income tax purposes and interest on the Bonds is not subject to the alternative
minimum tax on individuals.
The Internal Revenue Code of 1986, as amended (the “Code”) imposes a number of requirements that must be
satisfied for interest on state or local obligations, such as the Bonds, to be excludable from gross income for federal income
tax purposes. These requirements include limitations on the use of proceeds and the source of repayment, limitations on the
investment of proceeds prior to expenditure, a requirement that excess arbitrage earned on the investment of proceeds be paid
periodically to the United States and a requirement that the issuer file an information report with the Internal Revenue Service
(the “Service”). The District has covenanted in the Bond Resolution that it will comply with these requirements.
39

Bond Counsel’s opinion will assume continuing compliance with the covenants of the Bond Resolution pertaining
to those sections of the Code which affect the exclusion from gross income of interest on the Bonds for federal income tax
purposes and, in addition, will rely on representations by the District, the District’s Financial Advisor and the Underwriter
with respect to matters solely within the knowledge of the District, the District’s Financial Advisor and the Underwriter,
respectively, which Bond Counsel has not independently verified. If the District should fail to comply with the covenants in
the Bond Resolution or if the foregoing representations should be determined to be inaccurate or incomplete, interest on the
Bonds could become taxable from the date of delivery of the Bonds, regardless of the date on which the event causing such
taxability occurs.
Under the Code, taxpayers are required to report on their returns the amount of tax exempt interest, such as interest
on the Bonds, received or accrued during the year. Payments of interest on tax-exempt obligations such as the Bonds are in
many cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any
owner who is not an “exempt recipient” and who fails to provide certain identifying information. Individuals generally are
not exempt recipients, whereas corporations and certain other entities generally are exempt recipients.
Except as stated above, Bond Counsel will express no opinion as to any federal, state or local tax consequences
resulting from the ownership of, receipt of interest on, or disposition of, the Bonds.
Prospective purchasers of the Bonds should be aware that the ownership of tax exempt obligations may result in
collateral federal income tax consequences to financial institutions, life insurance and property and casualty insurance
companies, certain S corporations with Subchapter C earnings and profits, individual recipients of Social Security or Railroad
Retirement benefits, taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry tax
exempt obligations, taxpayers owning an interest in a FASIT that holds tax-exempt obligations, and individuals otherwise
qualifying for the earned income credit. In addition, certain foreign corporations doing business in the United States may be
subject to the “branch profits tax” on their effectively-connected earnings and profits, including tax exempt interest such as
interest on the Bonds. These categories of prospective purchasers should consult their own tax advisors as to the applicability
of these consequences.
Bond Counsel’s opinions are based on existing law, which is subject to change. Such opinions are further based on
Bond Counsel’s knowledge of facts as of the date hereof. Bond Counsel assumes no duty to update or supplement its opinions
to reflect any facts or circumstances that may thereafter come to Bond Counsel’s attention or to reflect any changes in any
law that may thereafter occur or become effective. Moreover, Bond Counsel’s opinions are not a guarantee of result and are
not binding on the Service; rather, such opinions represent Bond Counsel’s legal judgment based upon its review of existing
law and in reliance upon the representations and covenants referenced above that it deems relevant to such opinions. The
Service has an ongoing audit program to determine compliance with rules that relate to whether interest on state or local
obligations is includable in gross income for federal income tax purposes. No assurance can be given whether or not the
Service will commence an audit of the Bonds. If an audit is commenced, in accordance with its current published procedures
the Service is likely to treat the District as the taxpayer and the owners of the Bonds may not have a right to participate in
such audit. Public awareness of any future audit of the Bonds could adversely affect the value and liquidity of the Bonds
during the pendency of the audit regardless of the ultimate outcome of the audit.
Tax Accounting Treatment of Original Issue Discount Bonds

The issue price of certain of the Bonds (the “Original Issue Discount Bonds”) may be less than the stated redemption
price at maturity. In such case, under existing law, and based upon the assumptions hereinafter stated (a) the difference
between (i) the stated amount payable at the maturity of each Original Issue Discount Bond and (ii) the issue price of such
Original Issue Discount Bond constitutes original issue discount with respect to such Original Issue Discount Bond in the
hands of any owner who has purchased such Original Issue Discount Bond at the initial public offering price in the initial
public offering of the Bonds; and (b) such initial owner is entitled to exclude from gross income (as defined in Section 61 of
the Code) an amount of income with respect to such Original Issue Discount Bond equal to that portion of the amount of such
original issue discount allocable to the period that such Original Issue Discount Bond continues to be owned by such owner.
In the event of the redemption, sale, or other taxable disposition of such Original Issue Discount Bond prior to stated
maturity, however, the amount realized by such owner in excess of the basis of such Original Issue Discount Bond in the
hands of such owner (adjusted upward by the portion of the original issue discount allocable to the period for which such
Bond was held by such initial owner) is includable in gross income. (Because original issue discount is treated as interest for
federal income tax purposes, the discussion regarding interest on the Bonds under the caption “TAX MATTERS” generally
applies, except as otherwise provided below, to original issue discount on an Original Issue Discount Bond held by an owner
who purchased such Bond at the initial offering price in the initial public offering of the Bonds, and should be considered in
connection with the discussion in this portion of the Official Statement.)
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The foregoing is based on the assumptions that (a) the Underwriter has purchased the Bonds for contemporaneous
sale to the general public and not for investment purposes, and (b) all of the Original Issue Discount Bonds have been offered,
and a substantial amount of each maturity thereof has been sold, to the general public in arm’s-length transactions for a cash
price (and with no other consideration being included) equal to the initial offering prices thereof stated on the cover page of
this Official Statement, and (c) the respective initial offering prices of the Original Issue Discount Bonds to the general public
are equal to the fair market value thereof. Neither the District nor Bond Counsel warrants that the Original Issue Discount
Bonds will be offered and sold in accordance with such assumptions.
Under existing law, the original issue discount on each Original Issue Discount Bond is accrued daily to the stated
maturity thereof (in amounts calculated as described below for each six-month period ending on the date before the
semiannual anniversary dates of the Bonds and ratably within each such six-month period) and the accrued amount is added
to an initial owner’s basis for such Bond for purposes of determining the amount of gain or loss recognized by such owner
upon redemption, sale or other disposition thereof. The amount to be added to basis for each accrual period is equal to (a) the
sum of the issue price plus the amount of original issue discount accrued in prior periods multiplied by the yield to stated
maturity (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of
the accrual period) less (b) the amounts payable as current interest during such accrual period on such Bond.
The federal income tax consequences of the purchase, ownership, and redemption, sale or other disposition of
Original Issue Discount Bonds which are not purchased in the initial offering at the initial offering price may be determined
according to rules which differ from those described above. All owners of Original Issue Discount Bonds should consult their
own tax advisors with respect to the determination for federal, state and local income tax purposes of interest accrued upon
redemption, sale or other disposition of such Bonds and with respect to the federal, state, local and foreign tax consequences
of the purchase, ownership and redemption, sale or other disposition of such Bonds.
Qualified Tax-Exempt Obligations
The Code requires a pro rata reduction in the interest expense deduction of a financial institution to reflect such
financial institution’s investment in tax-exempt obligations acquired after August 7, 1986. An exception to the foregoing
provision is provided in the Code for “qualified tax-exempt obligations,” which include tax-exempt obligations, such as the
Bonds, (a) designated by the issuer as “qualified tax-exempt obligations” and (b) issued by or on behalf of a political
subdivision for which the aggregate amount of tax-exempt obligations (not including private activity bonds other than
qualified 501(c)(3) bonds) to be issued during the calendar year is not expected to exceed $10,000,000.
The District will designate the Bonds as “qualified tax-exempt obligations” and has represented that the aggregate
amount of tax-exempt bonds (including the Bonds) issued by the District and entities aggregated with the District under the
Code during calendar year 2021 is not expected to exceed $10,000,000 and that the District and entities aggregated with the
District under the Code have not designated more than $10,000,000 in “qualified tax-exempt obligations” (including the
Bonds) during calendar year 2021.
Notwithstanding these exceptions, financial institutions acquiring the Bonds will be subject to a 20% disallowance
of allocable interest expense
PREPARATION OF OFFICIAL STATEMENT
Sources and Compilation of Information
The financial data and other information contained in this OFFICIAL STATEMENT have been obtained primarily
from the District’s records, the Engineer, the Tax Assessor/Collector, the Appraisal District and information from other
sources. All of these sources are believed to be reliable, but no guarantee is made by the District as to the accuracy or
completeness of the information derived from such sources, and its inclusion herein is not to be construed as a representation
on the part of the District except as described below under “Certification of Official Statement.” Furthermore, there is no
guarantee that any of the assumptions or estimates contained herein will be realized. The summaries of the agreements,
reports, statutes, resolutions, engineering and other related information set forth in this OFFICIAL STATEMENT are
included herein subject to all of the provisions of such documents. These summaries do not purport to be complete statements
of such provisions, and reference is made to such documents for further information.
Financial Advisor
Masterson Advisors LLC is employed as the Financial Advisor to the District to render certain professional services,
including advising the District on a plan of financing and preparing the OFFICIAL STATEMENT, including the OFFICIAL
NOTICE OF SALE and the OFFICIAL BID FORM for the sale of the Bonds. In its capacity as Financial Advisor, Masterson
Advisors LLC has compiled and edited this OFFICIAL STATEMENT. The Financial Advisor has reviewed the information
in this OFFICIAL STATEMENT in accordance with, and as a part of, its responsibilities to the District and, as applicable, to
investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Financial
Advisor does not guarantee the accuracy or completeness of such information.
41

Consultants
In approving this OFFICIAL STATEMENT the District has relied upon the following consultants.
Engineer: The information contained in this OFFICIAL STATEMENT relating to engineering and to the description
of the System and, in particular that information included in the sections entitled “THE DISTRICT,” “THE ROADS” and
“THE SYSTEM” has been provided by LJA Engineering, Inc. and has been included herein in reliance upon the authority of
said firm as experts in the field of civil engineering.
Appraisal District: The information contained in this OFFICIAL STATEMENT relating to the historical certified
taxable appraised valuations has been provided by the Fort Bend Central Appraisal District and has been included herein in
reliance upon the authority of such entity as experts in assessing the values of property in Fort Bend County, including the
District.
Tax Assessor/Collector: The information contained in this OFFICIAL STATEMENT relating to the historical
breakdown of the District’s assessed valuations and certain other historical data concerning tax rates and tax collections has
been provided by Tax Tech Inc. and is included herein in reliance upon the authority of such firm as an expert in assessing
property values and collecting taxes.
Auditor: The District’s financial statements for the fiscal year ending June 30, 2020, were prepared by the
independent account firm of McGrath & Co., PLLC. See “APPENDIX A” for a copy of the audited financial statement of the
District as of June 30, 2020.
Updating the Official Statement

If subsequent to the date of the Official Statement, the District learns, through the ordinary course of business and
without undertaking any investigation or examination for such purposes, or is notified by the Underwriter, of any adverse
event which causes the Official Statement to be materially misleading, and unless the Underwriter elects to terminate its
obligation to purchase the Bonds, the District will promptly prepare and supply to the Underwriter an appropriate amendment
or supplement to the Official Statement satisfactory to the Underwriter; provided, however, that the obligation of the District
to the Underwriter to so amend or supplement the Official Statement will terminate when the District delivers the Bonds to
the Underwriter, unless the Underwriter notifies the District on or before such date that less than all of the bonds have been
sold to ultimate customers, in which case the District’s obligations hereunder will extend for an additional period of time as
required by law (but not more than 90 days after the date the District delivers the Bonds).
Certification of Official Statement

The District, acting through its Board in its official capacity, hereby certifies, as of the date hereof, that the
information, statements, and descriptions or any addenda, supplement and amendment thereto pertaining to the District and
its affairs contained herein, to the best of its knowledge and belief, contain no untrue statement of a material fact and do not
omit to state any material fact necessary to make the statements herein, in the light of the circumstances under which they are
made, not misleading. With respect to information included in this OFFICIAL STATEMENT other than that relating to the
District, the District has no reason to believe that such information contains any untrue statement of a material fact or omits
to state any material fact necessary to make the statements herein, in the light of the circumstances under which they are
made, not misleading; however, the Board has made no independent investigation as to the accuracy or completeness of the
information derived from sources other than the District. In rendering such certificate, the Board has relied in part upon its
examination of records of the District, and upon discussions with, or certificates or correspondence signed by, certain other
officials, employees, consultants and representatives of the District.
CONTINUING DISCLOSURE OF INFORMATION

The offering of the Bonds qualifies for the Rule 15c2-12(d)(2) exemption from Rule 15c2-12(b)(5) regarding the
District’s continuing disclosure obligations because the District has not issued more than $10,000,000 in aggregate amount of
outstanding bonds and no person is committed by contract or other arrangement with respect to payment of the Bonds as
required by the exemption. As required by the exemption, in the Bond Resolution, the District has made the following
agreement for the benefit of the holders and beneficial owners of the Bonds. The District is required to observe the agreement
for so long as it remains obligated to advance funds to pay the Bonds. Under the agreement, the District will be obligated to
provide certain updated financial information and operating data annually, and timely notice of specified material events, to
the Municipal Securities Rulemaking Board (the “MSRB”) or any successor to its functions as a repository through its
Electronic Municipal Market Access (“EMMA”) system.
42

Annual Reports
The District will provide certain financial information and operating data which is customarily prepared by the
District and is publicly available, annually to the MSRB. The financial information and operating data which will be provided
with respect to the District will be the District’s audited financial statements (APPENDIX A). The District will update and
provide this information to the MSRB within six months after the end of each of its fiscal years ending in or after 2021. Any
financial statements provided by the District shall be prepared in accordance with generally accepted auditing standards or
other such principles as the District may be required to employ from time to time pursuant to state law or regulation, and
audited if the audit report is completed within the period during which it must be provided. If the audit report is not complete
within such period, then the District shall provide unaudited financial statements for the applicable fiscal year to the MSRB
within such six month period, and audited financial statements when the audit becomes available.
The District’s current fiscal year end is June 30. Accordingly, it must provide updated information by December 31
in each year, unless the District changes its fiscal year. If the District changes its fiscal year, it will notify the MSRB of the
change.
Event Notices
The District will provide timely notices of certain events to the MSRB, but in no event will such notices be provided
to the MSRB in excess of ten business days after the occurrence of an event. The District will provide notice of any of the
following events with respect to the Bonds: (1) principal and interest payment delinquencies; (2) non-payment related
defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws
on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to
perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of
taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the
tax status of the Bonds, or other events affecting the tax status of the Bonds; (7) modifications to rights of Beneficial Owners
of the Bonds, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of
property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or
similar event of the District or other obligated person, (13) consummation of a merger, consolidation, or acquisition involving
the District or other obligated person or the sale of all or substantially all of the assets of the District or other obligated person,
other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (14)
appointment of a successor or additional trustee or the change of name of a trustee, if material to a decision to purchase or
sell Bonds; (15) incurrence of a financial obligation of the District or other obligated person, if material, or agreement to
covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the District or other
obligated person, any of which affect Beneficial Owners of the Bonds, if material; and (16) default, event of acceleration,
termination event, modification of terms, or other similar events under the terms of the financial obligation of the District or
other obligated person, any of which reflect financial difficulties. The terms “obligated person” and “financial obligation”
when used in this paragraph shall have the meanings ascribed to them under SEC Rule 15c2-12 (the “Rule”). The term
“material” when used in this paragraph shall have the meaning ascribed to it under federal securities laws. Neither the Bonds
nor the Bond Resolution makes any provision for debt service reserves or liquidity enhancement. In addition, the District will
provide timely notice of any failure by the District to provide financial information, operating data, or financial statements in
accordance with its agreement described above under “Annual Reports.”
Availability of Information from the MSRB

The District has agreed to provide the foregoing updated information only to the MSRB. The MSRB makes the
information available to the public without charge through an internet portal at www.emma.msrb.org.
Limitations and Amendments
The District has agreed to update information and to provide notices of specified events only as described above.
The District has not agreed to provide other information that may be relevant or material to a complete presentation of its
financial results of operations, condition, or prospects; nor has the District agreed to update any information that is provided,
except as described above. The District makes no representation or warranty concerning such information or concerning its
usefulness to a decision to invest in or sell Bonds at any future date. The District disclaims any contractual or tort liability
for damages resulting in whole or in part from any breach of its continuing disclosure agreement or from any statement made
pursuant to its agreement, although registered or beneficial owners of Bonds may seek a writ of mandamus to compel the
District to comply with its agreement.
43

The District may amend its continuing disclosure agreement from time to time to adapt to the changed circumstances
that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations
of the District, if but only if the agreement, as amended, would have permitted an underwriter to purchase or sell Bonds in
the offering made hereby in compliance with the Rule, taking into account any amendments or interpretations of the Rule to
the date of such amendment, as well as such changed circumstances, and either the registered owners of a majority in
aggregate principal amount of the outstanding Bonds consent to the amendment or any person unaffiliated with the District
(such as nationally recognized bond counsel) determines that the amendment will not materially impair the interests of the
registered and beneficial owners of the Bonds. The District may amend or repeal the agreement in the Bond Resolution if
the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions
are invalid or unenforceable, but only to the extent that its right to do so would not prevent the Underwriter from lawfully
purchasing the Bonds in the initial offering. If the District so amends the agreement, it has agreed to include with any financial
information or operating data next provided in accordance with its agreement described above under “Annual Reports” an
explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial
information and operating data so provided.
Compliance With Prior Undertakings [TO BE CONFIRMED]
During the last five years, the District has complied in all material respects with all continuing disclosure agreements
made by the District in accordance with SEC Rule 15c2-12.
MISCELLANEOUS
All estimates, statements and assumptions in this OFFICIAL STATEMENT and the APPENDICES hereto have
been made on the basis of the best information available and are believed to be reliable and accurate. Any statements in this
OFFICIAL STATEMENT involving matters of opinion or estimates, whether or not expressly so stated, are intended as such
and not as representations of fact, and no representation is made that any such statements will be realized.
This OFFICIAL STATEMENT was approved by the Board of Directors of Fort Bend County Municipal Utility
District No. 136, as of the date shown on the cover page.
/s/
President, Board of Directors
ATTEST:
/s/
Secretary, Board of Directors
44

AERIAL PHOTOGRAPH
(As of January 2021)

PHOTOGRAPHS OF THE DISTRICT
(As of January 2021)

APPENDIX A
The information contained in this appendix includes the Annual Audit Report of Fort Bend County Municipal Utility District
No. 136 and certain supplemental information for the fiscal year ended June 30, 2020.

Memorandum
To: Michael W. Goodrum, City Manager
Via: Jennifer May, Assistant City Manager
From: Jennifer Brown, Director of Finance
Date: December 31, 2020
Subject: Fort Bend MUD 136 Unlimited Tax Bonds Series 2021
Fort Bend County Municipal Utility District No. 136, a wholly incorporated District within the City
limits is presenting to the Mayor and City Council for consideration and approval of the proposed
$2,330,000 of Unlimited Tax Bonds, Series 2021, which they plan to sell on February 8, 2021.
The City’s Code of Ordinances, Sec. 5-237 applies to this district: “any district to be created in
within the City of Sugar Land or its extraterritorial jurisdiction must, as a condition of its creation,
comply with written policies adopted by the City Council.”
On March 15, 2011 City Council Policy 5000-03: CREATION, OPERATIONS, AND DISSOLUTION OF SPECIAL
PURPOSE DISTRICTS LOCATED WITHIN THE CITY OF SUGAR LAND OR ITS EXTRATERRITORIAL JURISDICTION
was adopted by Resolution No. 11-07. State law gives the City Council authority over the creation,
operations, and dissolution of special purpose districts. This policy sets forth the requirements
that Council will exercise over special purpose districts.
Section II applies to In-City Districts. Under D. Conditions for City Consent, the City imposes the
following requirements as conditions of the City’s consent.
1. All bonds, which shall be and remain obligations of the District until its dissolution, must
be approved by the City Council. The City Council may refuse to give its approval to the
issuance of bonds – or limit the amount of bonds issued by the District – if the District is
not in compliance with the City’s requirements contained in the consent resolution or
ancillary documents. The City will request compliance with the following terms and
reporting requirements:
a. The District’s initial bond debt maturity date will not exceed 25 years. Once the
District has established a maturity date for its initial bonds, the maturity date for
any additional bonds will not extend beyond the maturity date for the initial bonds,
without the approval of the City.

b. The amount of each annual principal payment on bond debt should be
substantially the same or only moderately increased throughout the repayment
term. In any case, at least 40% of the principal must be repaid in the first half of
the repayment schedule, unless a portion of the bonds are structured as capital
appreciation bonds.
c. The District may not fund more than 24 months of capitalized interest in a bond
issue.
d. The City may limit a MUD to only issue bonds for the purposes of providing water,
wastewater and drainage improvements
e. The City may approve the issuance of District bonds for park or road improvements
if the park or road improvements for which the bonds are issued are included in
the City’s master plans.
f. At least 30 days before the issuance of bonds, except refunding bonds, the
District’s financial advisor shall certify in writing that bonds are being issued within
the existing economic feasibility guidelines established by the TCEQ - whether or
not the District has been approved by the TCEQ. The report, provided to the City
Manager, should also state the following:
i. The amount of bonds being proposed for issuance,
ii. The projects to be funded by such bonds,
iii. The proposed debt service tax rate after issuance of the bonds.
g. Within 30 days after the District closes the sale of a series of bonds, the District
shall deliver to the City Manager a copy of the final official statement for such series
of bonds as well as any additional information requested by the City.
2. The City shall require that the owner of the real property over which the District will be
created to enter into a written City contract for the City to provide water and wastewater
services to the District and that the District accept, after its creation, the water and
wastewater service contract agreed upon between the City and the owner. The District
must pay all applicable connection fees. All District utility infrastructure must be designed
and constructed as a part of the City’s regional utility system and in compliance with the
City’s Water Master Plan and Wastewater Master Plan.
3. District infrastructure shall be constructed in accordance with City design standards. The

City reserves the right to inspect all facilities being constructed by or on behalf of the
District and to charge inspection fees required by ordinance.
4. The District will not drill wells without specific approval by the City as provided in the City’s
Code of Ordinances. If the District receives approval from the City to create ground wells,
for potable or non-potable water production, or if the District plans to employ reuse water,
originating from inside or outside the District, for the purposes of landscape irrigation or
filling amenity ponds, the District will take part in the City’s Groundwater Reduction Plan.
Any subsidence district credits earned in the District will be owned by the GRP
Administrator, the City of Sugar Land.
5. A district may not annex additional land into the District unless the City Council first adopts
a resolution giving its consent to the annexation. The conditions contained in the
resolution consenting to the creation of the District also apply to the land annexed, unless
the resolution approving the District’s annexation of additional land states otherwise.
Conversely, the District may not enter into an agreement to be annexed, in whole or in
part, with another district or municipality, without written authorization from the City of
Sugar Land.
6. A District may not provide water or wastewater service outside the boundaries of the
District. Conversely, the District may not enter into an agreement with another district or
municipality to receive water and wastewater services.
7. The District shall send a copy of the order or other action setting an ad valorem tax rate
to the City Secretary, City Finance Director and the City Manager within 30 days after
District adoption of the rate.
8. The District shall send a copy of its annual audit to the City Finance Director and City
Manager. The District will also ensure that they are meeting accounting standards set by
the Governmental Accounting Standards Board (GASB), and they are fulfilling all arbitrage
compliance reports to the satisfaction of the City Finance Director.
9. The District shall provide copies of any material event notices filed under applicable federal
securities laws or regulations to the City Manager within thirty (30) days after filing such
notices with the applicable federal agency.
10. The District will not own any facilities without the City’s written approval. The District will
finance water, wastewater, and drainage facilities and convey them to the City, upon
completion of construction, for operation and maintenance.

11. The District will not incur operating expenses, other than administrative operating
expenses, without the City’s specific written authorization.
Prior to the sale of these bonds, the District must obtain a letter from the Mayor to the effect that
the District is in compliance with appropriate clauses of Chapter 5 of the Code of Ordinances. In
addition, the Mayor must also provide a letter to the Attorney General of the State of Texas
approving the form of the resolution or order of the board of directors authorizing the issuance
of any bonds of the District absent the interest rates and sales price of the proposed bonds.
Presented below is information regarding the District and the proposed bonds as provided in the
Preliminary Official Statement.
District Creation The district is a political subdivision of the State of Texas, created by
order of the Commission on Environmental Quality (TCEQ), on April 1,
2005 and operates pursuant to Chapters 49 and 54 of the Texas Water
Code. The district is wholly incorporated within the corporate limits of
the City of Sugar Land.
Acreage 139 acres
Developers of the District NNP-Telfair, LLC (“NNP-Telfair”), a Texas limited liability company, is the
developer of Telfair, including the developed acres of land within the
District. NNP-Telfair plans to develop its land in the District for
commercial uses. NNP Telfair was created for the sole purpose of
developing Telfair and its only substantial asset is the land in Telfair.
Telfair The District is part of the 2,018 acre master-planned community of

Telfair, consisting of the District, three other municipal utility districts,
and a levee improvement district. Approximately 2,839 single-family
residential lots have been constructed in Telfair. The Houston Museum
of Natural Science’s Sugar Land branch is located in a 43,000 square
foot historic building located in Telfair. Recreational amenities within
Telfair include a lake system, a greenbelt system, over five miles of
landscaped trails, eleven neighborhood parks each with open space and
playground, two recreational pools, a sand volleyball court, and a
playground.

Status of District Development All of the developable land within the District (approximately 101 acres)
has been provided with water and sanitary sewer trunk facilities and
drainage facilities for commercial development. A Hilton Garden Inn
and adjacent retail shopping center have been constructed on
approximately 27 of such acres. The Hilton Garden Inn contains 202
guest rooms and approximately 6,000 square feet of conference
meeting space. A Hampton Inn & Suites with 98 rooms has recently
been constructed on approximately 2 acres. Also located within the
district is Bonaventure Plaza, University Plaza and Telfair Office Park.
Several other retail and office developments are located within the
district’s boundaries.
A 150,000 square foot HEB grocery store, a free-standing gas station

operated by HEB and additional retail space has been constructed on
approximately 15 acres.
Approximately 38 acres within the district are undevelopable, as they

are set aside for rights of way, detention, open spaces, easements and
utility sites.
Fort Bend Levee Improvement All of the land within Telfair lies within Fort Bend Levee Improvement
District No. 17 District No. 17 (“LID 17”), which encompasses approximately 2,330 acres
of land. LID 17 has constructed a system of a levee, detention ponds,
channels and other drainage improvements, reclaiming land from the
Brazos River flood-plain, including the land within the District, as well as
public recreational facilities, and has financed the acquisition and/or
construction of these facilities with the proceeds of its unlimited tax
bonds. LID 17 currently has $64,655,000 principal amount of bonds
outstanding. LID 17 levied a total 2020 tax rate of $0.56 per $100 of
assessed valuation ($0.28 for debt service and $0.28 for maintenance
and operations).
Payment Record The District has previously sold $2,375,000 principal amount of
unlimited tax bonds for water, sewer and drainage facilities in one series
and $2,525,000 principal amount of unlimited tax road bonds in one
series. The district issued $2,065,000 principal amount of unlimited tax
refunding bonds in one series. In total $3,850,000 remains outstanding
of all bonds issued.

Total Bonds Authorized by Voters in the district authorized the issuance of bonds for the following
Voters purposes:
Authorized Purpose
$ 20,000,000 Water, sewer and drainage projects
5,285,000 Road projects
13,000,000 Refunding purposes
2,900,000 Recreation facilities
Bonds Outstanding
(Excluding Proposed)
(a) Unimited Tax Road Bonds

(b) Unlimited Tax Refunding Bonds
Remaining Bond Authorization
The district has the following bond authorizations remaining but
unissued, after the 2021 bonds:
Authorized but Purpose
Unissued
$ 15,295,000 Water, sewer and drainage projects
2,760,000 Road projects
Not to be issued - agreement with City
12,875,000 Refunding purposes
2,900,000 Recreation facilities
Not to be issued- Parks maintained by LID 17
Source of Payment The principal of and interest on the Bonds are payable from the
proceeds of a continuing, direct, annual ad valorem tax, without legal
limitation as to rate or amount, levied against taxable property within
the District. The Bonds are obligations of the District and are not
obligations of the City of Sugar Land, Fort Bend County, the State of
Texas, or any entity other than the District.
2020 Tax Rate $ 0.185 Debt Service

$ 0.235 O & M
(Per $100 Valuation) $ 0.420 Total

Average Annual Debt Service $480,858
Requirement (2021-2037)
Maximum Debt Service $542,235

Requirement (2022)
Taxable Assessed Value $119,403,617 – 2020 Certified Taxable Assessed Value
Tax Rate Requirement for The required tax rate for the Maximum Annual Debt Service payment
Maximum and Average Debt on the bonds is $0.48/$100 based upon the 2020 Certified Taxable
Service (95% collection) Assessed Valuation (if no further development occurs in the district).
The required tax rate for the Average Annual Debt Service payment on
the bonds is $0.43/$100 based upon the 2020 Certified Taxable
Assessed Valuation (if no further development occurs in the district).
Use of Bond Proceeds Proceeds will be used to pay the construction costs associated with the
following items. These costs were submitted to the TCEQ for approval
by the district in a bond application. The actual amounts will be
reimbursed by the district and costs will be finalized after review by the
district’s auditor.
The TCEQ approved a maximum underwriter’s discount of 3.0%.

Debt Service Requirements
The following schedule sets forth the debt service requirements for the Outstanding
Bonds and the estimated debt service on the Bonds at an estimated interest rate of 3.25%.

City Council Meeting Agenda January 19, 2021

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City Council Meeting Agenda January 19, 2021

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TUESDAY, JANUARY 19, 2021

CITY COUNCIL MEETING

The meeting will live stream at https://www.sugarlandtx.gov/1238/SLTV-16-Live-

Links to for-profit sites

Tuesday, January 19 2021, City Council Meeting Page 1 of 164

Tuesday, January 19 2021, City Council Meeting Page 2 of 164

Tuesday, January 19 2021, City Council Meeting Page 3 of 164

Section 551.074 Personnel Matters:

Posted on this 15th of January, 2021 at 5:36 P.M.

Tuesday, January 19 2021, City Council Meeting Page 4 of 164

AGENDA REQUEST NO:

AGENDA OF: City Council Meeting

RESPONSIBLE DEPARTMENT: City Secretary

Tuesday, January 19 2021, City Council Meeting Page 5 of 164

AGENDA REQUEST NO:

AGENDA OF: City Council Meeting

RESPONSIBLE DEPARTMENT: City Secretary

Tuesday, January 19 2021, City Council Meeting Page 6 of 164

AGENDA REQUEST NO: IV.A.

AGENDA OF: City Council Meeting

INITIATED BY: Keisha E. Seals, Engineering Manager

PRESENTED BY: Keisha Seals, Engineering Manager

RESPONSIBLE DEPARTMENT: Engineering

Tuesday, January 19 2021, City Council Meeting Page 7 of 164

EXPENDITURE REQUIRED: N/A

CURRENT BUDGET: N/A

ADDITIONAL FUNDING: N/A

Tuesday, January 19 2021, City Council Meeting Page 8 of 164

Tuesday, January 19 2021, City Council Meeting Page 9 of 164

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS,

BE IT RESOLVED BY THE CITY COUNCIL

APPROVED on _______________________________, 2020.

ATTEST: APPROVED AS TO FORM:

Tuesday, January 19 2021, City Council Meeting Page 10 of 164

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS,

BE IT RESOLVED BY THE CITY COUNCIL

Section 3. That Resolution No. 20-19 is repealed.

APPROVED on _______________________________, 2021.

ATTEST: APPROVED AS TO FORM:

Tuesday, January 19 2021, City Council Meeting Page 11 of 164

ADVANCE FUNDING AGREEMENT

1. Local Government Utilities Article 8

2. Period of the Agreement

4. Project Sources and Uses of Funds

5. Termination of this Agreement

9. Environmental Assessment and Mitigation

10. Compliance with Accessibility Standards

Department of Licensing and Regulation (TDLR) as meeting or consistent with minimum

11. Procurement Standards

12. Architectural and Engineering Services

13. Construction Responsibilities

14. Project Maintenance

15. Right of Way and Real Property

The Local Government shall be responsible for the following:

Local Government: State:

City of Sugar Land Texas Department of Transportation

18. Legal Construction

19. Responsibilities of the Parties

20. Ownership of Documents

21. Compliance with Laws

22. Sole Agreement

23. Procurement and Property Management Standards

24. Inspection of Books and Records