11-18-09 Meeting of the La Porte Redevelopment Authority Minutes

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3. DETAILED NOTES ON ALL FUNDS Deoosits Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the Authority's deposits may not be returned to it. State statutes require that all deposits in financial institutions be fully collateralized by U. S. Government obligations or its agencies and instrumentalities, or direct obligations of Texas or its agencies and instrumentalities that have a fair value of not less than the principal amount of deposits. As of September 30, 2009, $156,560 of the Authority's $406,560 deposit balance was collateralized with securities held by the pledging financial institution. The remaining balance, $250,000, was covered by FDIC insurance. Lone:-term Oblie:ations - Due to the City of La Porte The City of La Porte ftnanced capital improvements on behalf of the Authority. A payment schedule has not been determined between the City and the Authority. Long-term liability activity for the year ended September 30, 2009, was as follows: Beginning Ending Balance Additions Reductions Balance Governmental activities: Due to the City of La Porte $ 615,026 $ $ $ 615,026 $ 615,026 $ $ $ 615,026 4. COMMITMENTS AND CONTINGENCIES The Redevelopment Authority is a party to several agreements with developers who own property in the La Porte Tax Increment Reinvestment Zone #1. The Authority is obligated to repay the developers for public improvements made on the property uOp to the amount of incremental tax value gained. A liability is not able to be determined because the amount of incremental tax value that will be gained is not estimable. The Authority has entered into agreements with the following developers: Port Crossing Land, LP; 65 La Porte, LP; and Retreat at Bay Forest, LP. Port Crossing has completed the public improvements detailed in the agreement with the Authority. The accounting fIrm of McCall, Gibson, Swedlund, Barfoot, PLLC, was hired by the Authority to review the developer's expenses and determine the amount of reimbursable expenditures, which totaled $12,096,488. To date, one payment in the amount of $826,187 has been made to Port Crossing for incremental tax value gained. t;:, Tn D.n....t-.a. T D "nn nlnn. n___l.a.+_..:I ........-. :_____.u'oftt.--..__...... A-..f.n:l.<1oA :_ :..." '"'______~ ..."r:...:t. .:t..o. UJ ~'" ... V"""", ~.I., ~ Q.J.lOJV \JVUJ.}lJ.""""-"U LLl'-' u..LJ.Y.LVY,",J..LJ.v"U,O U\,i'I.CUJ.\,lIU J..ll 1.1." "5I-"""J..u,\otJ..u. WIU,.l UJ.\.I Authority; however, the developer has not applied for reimbursement because there has been no incremental tax value gained 10