12-10-14 Meeting of the La Porte Redevelopment Authority minutes

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LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 NOTE 1. CREATION OF CORPORATION The City of LaPorte, Texas (the "City") authorized the creation of the La Porte Redevelopment Authority (the "Authority") by the Resolution No. 2000-19 passed on December 11, 2000. The Authority was created and organized as a local government corporation pursuant to provisions of Chapter 394 of the Texas Local Government Code. The Authority is organized as a pubic non- profit corporation for the purpose of aiding, assisting, and acting on behalf of the G' din the performance of its governmental function to promote the common good and genergil 'afar4' of the Tax Increment Reinvestment Zone (the "Zone") and neighboring areas; to proonzite 'V - elop, encourage and maintain housing, educational facilities, employment, commerce On economic development in the City. The Authority receives incremental tax revenues on developed property. The Authority has participation agreements with the City o-La,�.brte, La Porte Independent School District and Harris County to receive certain profit tax increments. The • , Authority may issue bonds with consent of City Council. The A ' or, �s anaged by a Board of Directors consisting of nine members who are appointed byhe Ma ,ar with the approval of City Council. y 9. NOTE 2. SIGNIFICANT ACCOUNTING POLI�G�ES� The accompanying financial statements have•` een prepared in accordance with accounting principles generally accepted in the United States of America as promulgated by the Governmental Accounting Standards Board { GApW ). The GASB has established the criteria. determining whether or not a given entity is a component unit. The criteria are,: {i� th potential component unit a legally separate entity, (2) does the primary government appat avohng majority of the potential component units hoard, (3) is the primary government able�to°impose its will on the potential component unit, (4) is there ship. The Authority was created as an instrumentality of the a financial benefit or burieri relation City. The Authority $does rnee; the criteria for inclusion as a component unit of the City.. Copies of the financial statements for the City may be obtained from the City Secretary's office. These fmanc 4l afatements have been prepared in accordance with GASB Codification of Goverditfntal-Xccoun.'dng, and Financial Reporting Standards Part 11, Financial Reporting: The�GASB Codifi'a-ation sets bth standards for external financial reporting for all state and local goveent edtitics, which include. a requirement for a Statement of Net Position and a Statement It requires the classification of net position into three components: Ner Investment Restricted; and Unrestricted. These classifications- are defined as follows: -12- .