1. HOW TO INVOICE TXDOT GRANT FUNDS ALLISON, BASS & MAGEE, LLP 402 WEST 12 TH AUSTIN, TX 78701 Invoicing the TxDot Grant Fund Project

2. CETRZ BASICS Tax Values Without TRZ Tax Values TRZ 2014 Base Year Values At same rate, tax bill will be higher if value increa ses. Future Tax Year Values 2014 Base Year Values Only the increase in value is captured…no increase in rate…but tax bill is based on value. Gen. Fund % to TRZ Fund Taxes rate may not increase, but Tax Bill will go up with increased valuation, And will decrease with fall in valuation. No change in appraisal process. Only if increase in valuations will tax bill go up, but any increased value above base year is captured for TRZ Fund Future Tax Years

3. Effective Tax Rate Effective Tax Rate- §26.05 Tax Code  Last year’s Levy-Lost Property  Divided by Current Year Value-New Property Value  Last year’s Tax Revenue less any property lost by appeal, corrections to roll, exemptions, etc.  Divided by Current year less “new property value), i.e. values added after January 1 of the preceding year, or subject to abatement. Tax Increment Funds (CETRZ) §26.03 Tax Code-By Statute is “excluded” from definition of new property, but is excluded from the value of proprety taxable by the unit in any tax rate calculation.

4. Roll Back Rate Maintenance and Operations Rate multiplied by 1.08 plus Current Debt Rate.  Maintenance and Operations means total budgeted expenditures other than debt service.  Current Debt Rate is the cost of debt service less excess collections divided by the current total value multiplied by the collection rate, plus any junior college levy divided by current total value. Short hand: This years planned budget cannot exceed 8% increase plus debt service. (TIF treated like debt), so the CETRZ will not count in roll back calculation.

5. New Consideration of CETRZ/TRZ Deadlines for TxDot Grant were too short to fully consider CETRZ/TRZ issues.  Can, in proper circumstances, be a valuable tool.  Now is time to consider broader use of this tool, but it takes careful consideration:  What sum of money is desired/needed?  What have tax values done in the past and foreseeable future?  What sorts of development is expected?  CETRZ requires 100% to Transportation.  TRZ allows allocation between Transportation and General Fund

6. INVOICING AND COMPLIANCE

7. Each Invoice is Composed of 4 Parts An Individual Project Billing Summary Sheet  Each road or project should have an Individual Billing Summary Sheet, with a total for the “current” billing cycle, previously billed amounts, and the current total for that road or project. An Administrative Summary  Each Invoice should reflect any administrative costs for that billing period. Project Billing Summary  Each Invoice should have a Summary of all Individual Reports Invoice Cover Page  Carries over to one place the totals from the Summary and Administrative Costs worksheets.

8. Work Backward From Individual Project Report Because the Invoice requires information from all active projects, it is best to prepare the Individual Project Reports first, and then enter the information from each Individual Project into the Project Summary Sheet. And, from the Project Summary Sheet to the actual Invoice. All the numbers should add up and be consistent.

9. Individual Road or Project Billing Statement

10. Attach to Individual Road or Project Reports Invoices from any Contracting supplier  Materials  Labor  Equipment County Forces Costs  Labor cost  Equipment Cost (May use FEMA or your own data)  Fuel cost (may be separate or included in Equipment Cost (FEMA includes fuel cost)

11. Sample Documentation Contracted

12. Sample Documentation Contract Invoices

13. Sample Documentation Contracted

15. RECAP-Contracted Work

16. Sample Documentation County Forces

21. RECAP-County Forces You do not need to attach actual timecards for each employee, or actual rate cards for each piece of equipment, but you do need to have basis for charges. Keep logs of equipment hours, signed by responsible supervisor. Employee hours verified by responsible supervisor. Materials purchased should have invoices from supplier. Do not need to attach to report, but keep for audit.

22. Administrative Cost Sheet

23. Administrative Cost Worksheet Administrative fees for setting up the CETRZ are allowed.  Include this cost on your first Invoice. Reimbursements will be included in total grant amount. In subsequent invoices, any administrative costs should be reflected on individual projects. Remember to carry over the administrative costs from prior invoices.

24. Administrative Backup

25. Summary Sheet

26. Carry over from each individual road project:  the ID or project name/number  Description of Project from Prioritized Project List. Current billing (Column B) Prior billing (Column A) and Total Billed to date.  Invoice are to be made between the 15 th and 25 th of each month once project begins.  Carry the amount billed in the prior invoice over to the following invoice as Previously Billed.  The Total Billed during Current Billing Period will be the prior billed amount plus the current billed amount.

27. Invoice

28. Invoice Cover Sheet Try to stay current with Billing…once a month during project.  Between the 15 th and 25 th are required billing dates, invoices received after the 25 th will be held until the next month. Give the Invoice a number:  1 st Invoice, 2 nd Invoice, 3 rd Invoice  1-061514, 2-062514, 3-071514, 4-072514 Track the billing period,  June 1 through June 15 Calculate the proper % for each line item.  Multiply by.8 for standard county  Multiply by.9 for disadvantaged counties

29. Attachments We have attached the following:  Memo on Invoicing Sample First Invoice Sample Second Invoice  Subsequent invoices will be similar, but will be updated with the prior invoice amounts Call us if you have questions:  512-482-0701, and ask for:  Andrea  Eric  Bob  Jim