North Lake Highlands Public Improvement District (NLHPID)

Petition for Creation

HONORABLE MAYOR AND MEMBERS OF THE DALLAS CITY COUNCIL:

The undersigned, (Petitioners) who are owners of real property in the hereinafter described NLHPID
respectfully file this petition (the Petition) requesting the City Council of Dallas, Texas create an NLHPID
as a public improvement project to be paid through assessments levied by the City against land based on
the special benefit City determines is conferred on the land within the NLHPID by the services and
improvements in accordance with Chapter 372 of the Texas Local Government Code (the Act).

X
Owner Signature or Authorized Representative Date

Property Address State

Printed Name of Owner

( ) -
Printed name of authorized representative signing on behalf of owner Phone Number
*Please provide valid daytime phone if
verification is required

E-Mail Address

*Exhibit C: Additional addresses may be attached listed for multiple addresses

The individual whose signature and initials appear herein represents and warrants that he/she is authorized
to execute this Petition as the property owner named above, and requests or concurs with the creation of the
North Lake Highlands PID.

With respect to community property, the City may accept the signature of a single spouse as a representation
of both spouses that they support the creation or renewal of the PID absent a separate property agreement.
However, if staff is made aware of any disagreement between owners of community property those petitions
will not be counted.

Petitions should be returned on or before March 24, 2017

Return original executed petitions to:
Lake Highlands Improvement District Corporation
9090 Skillman Suite 182-A PMB 101
Dallas, TX 75243
469-371-7072
 Petitioners present the following information concerning the District:
1) District Name. The name of the district is the North Lake Highlands Public Improvement
District (the District).

2) District Location. The District is located wholly within the City of Dallas, TX, and a Texas
home rule municipality. The District is shown on the map attached hereto and made a part
hereto and marked Exhibit A.

3) Purpose of the District; General Nature of the Proposed Services and Improvements. The
purpose of the District is to supplement and enhance services provided within the District, but
not to replace or supplant existing City services provided within the District. The general
nature of the proposed services and improvements to be performed by the District includes
enhanced security and public safety, capital improvements, improvement of common areas,
landscaping, trash/litter removal, graffiti control, marketing and promotional activities,
distinctive lighting and signage, business development and recruitment to promote the area,
and related expenses incurred in establishing, administering and operating the District as
authorized by the Act.

4) Method of Assessment. The assessment shall apportion the costs each year among the
property owners on the basis of special benefits accruing to the property. The proposed
method of assessment, which may specify included or excluded classes of assessable
property, shall be based on to the value of the real property and real property
improvements as determined by the Dallas Central Appraisal District. The net assessment
amount for 2018 is proposed to be $448,748. This amount is approximately equal to $0.12
per $100.00 of appraised value as determined by the Dallas Central Appraisal District. If
appraised values rise such that the an assessment rate equal to the amount of $.15 per
$100.00 valuation would yield an assessment amount that exceeds the estimated costs, the
assessment rate shall be reduced until the total assessment equals or is less than to the
budgeted amount approved in this Exhibit B to this petition, subject to the appropriations set
forth in Paragraph 15.

5) Annual assessment. The amount shall not exceed the total amount shown in the attached
budget for the services and improvements to be provided for the year in which the
property is assessed except as provided in Paragraph 15.

6) Estimated Cost; No Bonded Indebtedness. During the seven (7) year period, the annual
cost of the improvements and services provided by the existing District is estimated to range
from approximately $448,748 to $1,399,326 annually. Based on the estimated maximum
cost of improvements and services, the seven year total assessment collection requested by
the District shall not exceed a collective total of $5,850,697. In the event the District requires
additional funds, the District shall re-petition the property owners for such an increase. At no
time shall the total amount levied exceed the total amount shown in the attached budget for
the services and improvements to be provided for the year in which the property is assessed
except as provided in Paragraph 15 and subject to the collective total for the 7 year period.
7) Apportionment of Cost between the District and the Municipality as a Whole. The
District shall pay the costs of the services and improvements by special assessment against
the real property and real property improvements. The real property of jurisdictions and
entities that have obtained an exemption from City of Dallas real property taxes pursuant
to the Texas Property Code (except under the provisions of Sections 11.24 and 11.28 of
the Property Tax Code) will not be subject to an assessment on that portion of the assessed
value of the property exempt from City real property taxes. The City of Dallas is not
responsible for payment of assessment against exempt City property in the District. City
right-of-way, railroad right-of-way, City parks and cemeteries are not specially benefitted
and therefore are not subject to PID assessment.

8) Annual Assessment Collection and Budget Allocation. The District shall prepare an
ongoing service plan that covers a period of at least five years and shall hold an annual
meeting to review the service plan for the purpose of determining the annual budget. The
annual meeting shall be open to all property owners in a public meeting space (with written
notice to all property owners in the PID at least two weeks prior to the meeting) to provide
an opportunity for property owner questions, comments and input to be considered during
the PID annual budget and service plan approval process.

9) City Expenses and Dallas County Charges. The District shall pay the cost of: (i) collections
service fee to Dallas County and (ii) City expenses related to oversight of the PID operations.

10) District Management. Initially, the District shall be managed by the Lake Highlands
Improvement District Corporation (LHIDC), a private nonprofit corporation created under the
laws of the state of Texas and under the provisions of Section 501(c) (3) of the Internal
Revenue Code. LHIDC is currently managing the existing Lake Highlands PID (LHPID)
adjacent to the proposed NLHPID. Assessments collected for the NLHPID shall not be
comingled with LHPID funds; however the proposed budget for the NLHPID reflects
anticipated cost sharing with the existing LHPID for administrative expenses (including
insurance, audit, and staff salary expenses). Initially, the LHIDC Board of Directors shall
consist of property owners from both the NLHPID and the LHPID. LHIDC then reserves the
right to assign the management responsibilities of the NLHPID to another, independent
management entity created under the laws of Texas and under the provisions of Section
501(c) of the Internal Revenue Code. All property owners will be duly notified of any such
assignment. A cooperative relationship between the City and the private sector will be
created whereby the City Council will review and approve annually the service plan and
assessment plan, determine and levy assessments and conduct other functions as required
by the Act, and LHIDC will be responsible for managing and implementing the Service Plan
of the District.

11) Advisory Body. An advisory body may be established to develop and recommend an
improvement plan to the governing body of the municipality. In the interest of providing
efficient District management, the City Council, by accepting this Petition and establishing the
District, agrees not to establish a separate advisory body and agrees to assign the
responsibility for development and recommendation of the annual service and improvement
plans and other responsibilities of the advisory body contained in the Act to the LHIDC.

12) District Dissolution. The District shall automatically dissolve on December 31, 2024, unless
renewed or dissolved through the petition and approval process as provided by the Act.
13) Headings. The headings of the paragraphs contained in the Petition are for the convenience
of the reader and do not constitute a part of this Petition.

14) Request for Establishment of the District. The persons signing this Petition request or concur
with the establishment of the District and, if approved by the owners of the designated area,
the boundaries and request that this Petition be considered at the earliest possible time and
that the City Council take those lawful steps necessary to establish the District, authorize the
improvements and services described herein, levy the necessary assessments to pay for the
improvements and services and take any additional actions required under the Act for the
benefit of the District.

15) PID Assessment Collection Budget Projection. Exhibit B is a projection of annual PID
assessment collection over the seven (7) year service plan. If the total PID collection is less
than the annual budgeted amount, the management entity, Lake Highlands Improvement
District Corporation, may, in its reasonable discretion, re-allocate PID revenues to best serve
property owners and residents within the PID area; provided however, that no budget
category may be adjusted by more than 20% of projected amount.

No over-collection is anticipated, however, if the PID assessment collection is greater than

the annual projected amount, the managing entity shall:

i. be permitted to carry over up to 20% of the funds budgeted to the following year
to account for delays or cost adjustments, provided that the cumulative 7 year total
for each category is not exceeded as a result of such carry-over.
ii. reduce the amount of the assessment in the following year to absorb the over-
collection, or
iii. return the funds to the property owners, or
iv. submit a revised petition to obtain consent of the property owners for an increased
collection.
 W
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Proposed
City of Dallas
North Lake Highlands PID Boundary Map Office of Economic Development
Created 1/2017
 Exhibit B
NORTH LAKE HIGHLANDS PUBLIC IMPROVEMENT DISTRICT
PROPOSED PID SEVEN YEAR SERVICE PLAN (2018-2024)

% 2018 2019 2020 2021 2022 2023 2024

INCOME
Net Assessment* $448,748.00 $516,727.25 $630,903.39 $768,205.95 $932,103.89 $1,154,683.05 $1,399,326.46
Interest on Cash Balance $0.00 $300.00 $400.00 $400.00 $400.00 $400.00 $400.00
Surplus Carried Forward $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total Income $448,748.00 $517,027.25 $631,303.39 $768,605.95 $932,503.89 $1,155,083.05 $1,399,726.46
EXPENSES
Renewal/Creation Fee $15,000.00 3%
$433,748.00
(1)
Public Safety 45.00% $269,248.80 60% $310,216.35 60% $347,216.86 55% $422,733.27 55% $466,251.94 50% $577,541.52 50% $699,863.23 50%
(2)
Improvements 33.00% $70,262.12 16% $93,064.91 18% $145,199.78 23% $176,779.37 23% $261,101.09 28% $323,423.25 28% $391,923.41 28%
(3)
Promotion 6.00% $22,437.40 5% $31,021.64 6% $37,878.20 6% $46,116.36 6% $55,950.23 6% $69,304.98 6% $83,983.59 6%
Administration (4) 10.00% $44,874.80 10% $51,702.73 10% $63,130.34 10% $76,860.59 10% $93,250.39 10% $115,508.30 10% $139,972.65 10%
Audit 2.00% $8,974.96 2% $10,340.55 2% $12,626.07 2% $15,372.12 2% $18,650.08 2% $23,101.66 2% $27,994.53 2%
Insurance 4.00% $17,949.92 4% $20,681.09 4% $25,252.14 4% $30,744.24 4% $37,300.16 4% $46,203.32 4% $55,989.06 4%
100.00%
Total Expenses $448,748.00 $517,027.25 $631,303.39 $768,605.95 $932,503.89 $1,155,083.05 $1,399,726.46

Surplus Carried Forward

Notes:
The assessment amount is approximately equal to $0.12 per $100.00 of appraised value as determined by the Dallas Central Appraisal District (DCAD).
*Net assessment reflects the deduction of City and County fees from the gross assessment collection.

(1)
Public Safety consists of enhanced neighborhood patrols, security enhancements, emergency preparedness
(2) Improvements include aesthetic improvements, acquisition and instillation of public art, the establishment of parks and youth recreation sites, educational programming, and enhancements to "gateway entry areas" at Skillman & IH-635
(3)
Promotion includes business recruitment related expenses, branding efforts, marketing and outreach efforts and materials, and advertising
(4)
Adminstrative costs include management fee, annual tax preperation, bookkeeping charges, office supplies, and postage for public notifications

Exhibit B -North Lake Highlands PID Seven Year Service Plan