HomeMy WebLinkAbout04-27-11 LPRDA/TIRZNOTICE OF MEETING OF
LA PORTE TAX INCREMENT REINVESTMENT ZONE
Notice is hereby given of a meeting of the La Porte Tax Increment Reinvestment Zone to be held
Wednesday, April 27, 2011, at 6:30 p.m., in the Council Chambers of City Hall, 604 West Fairmont
Parkway, La Porte, Texas, for the purpose of considering the following agenda items:
Call to order — Lindsay Pfeiffer, President
2. Consider approval of the minutes of Board of Directors Meeting held on August 25, 2011;
3. Consent agenda — any item may be removed by a board member for discussion
• Entertain motion and a second to approve the TIRZ items in the same form and manner as was
approved in the previous redevelopment authority meeting — Lindsey Pfeiffer, Chairperson
a. Consider approval of the La Porte Redevelopment Authority FY 2010 Audit;
b. Consider request from Port Crossing for an amendment to Development Agreement
extending the interest receipt term by three additional years;
c. Consider approval or other action with regard to authority invoices;
d. Board member comments with regard to matters appearing on agenda and inquiry of staff
regarding specific factual information or existing policy;
In compliance with the Americans with Disabilities Act, the City of La Porte City will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be received
24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019 or TDD
281-471-5030.
A possible quorum of city council members may be present at this meeting and participate in discussions but will
not take any action.
David W. Hawes
Executive Director
Page 1 of 2
April 27, 2011, TIRZ Agenda
CERTIFICATION
I certify that a copy of the April 27, 2011, agenda of items to be considered by the Tax Increment Reinvestment
,done was posted on the City Hall bulletin board on April 21, 2011.
Patrice Fogarty, City
I certify that the attached notice and agenda of items to be considered by the City Council was removed by me
from the City Hall bulletin board on the day of , 2011.
Title:
Page 2 of 2
April 27, 2011, TIRZ Agenda
La Porte Tax Increment Reinvestment Zone Number One,
City of La Porte, Texas
Minutes of the Board Meeting
Held August 25, 2010
Call to order — Vice Chairman Doug Martin
The Board of Directors of the La Porte Tax Increment Reinvestment Zone Number One, City
of La Porte, Texas, held a meeting, open to the public, on the 25th day of August, 2010; the
meeting was called to order at 6:56 p.m. in the City Council Conference Room of the City
Hall, 604 West Fairmont Parkway, La Porte, Texas, and the roll was called of the duly
appointed members of the Board, to wit:
Peggy Antone
Position 1
Dave Turnquist
Position 2
Alton Porter
Position 3
Horace Leopard
Position 4
Doug Martin
Position 5
JJ Meza
Position 6
Lloyd Graham
Position 7
Chester Pool
Position 8
Lin Pfeiffer
Position 9 - Chairman
and all of the above were present except Director Porter and Pfeiffer, thus constituting a quorum.
Also present at the meeting were John Joerns, Stacey Osborne, David Hawes.
Consider approval of the minutes of the August 25, 2010 Board of Directors
meetings.
Upon motion made by Director Turnquist, seconded by Director Leopard, the board voted
unanimously to approve the minutes as presented.
CONSENT AGENDA — ANY ITEM MAY BE REMOVED BY A BOARD MEMBER FOR
DISCUSSION
ENTERTAIN A MOTION AND A SECOND TO APPROVE THE TIRZ ITEMS IN
THE SAME FORM AND MANNER AS WAS APPROVED IN THE PREVIOUS
REDEVELOPMENT AUTHORITY MEETING
a. Consider approval of the proposed La Porte Redevelopment Authority Fiscal Year 2010-2011
Fiscal Year Budget;
b. Consider approval or other action with regard to authority invoices;
c. Board member comments with regard to matters appearing on agenda and inquiry of staff
regarding specific factual information or existing policy;
d. Adjournment.
Upon a motion duly made by Director Leopard and being seconded by Director Turnquist, the board
unanimously approved the consent agenda in the same manner and form as approved in the
Redevelopment Authority Board Meeting and adjourned at 6:57 PM.
SIGNED:
TITLE:
ATTEST:
TITLE:
DATE: DATE:
Agendas and Agenda Materials
Meetin,Qs of the Boards of Directors
La Porte Redevelopment Authority
La Porte Tax Increment
Reinvestment Zone
April 27, 2011
NOTICE OF MEETING OF LA PORTE REDEVELOPMENT AUTHORITY
Notice is hereby given of a meeting of the La Porte Redevelopment Authority to be held
Wednesday, April 27, 2011, at 6:30 p.m., in the Council Chambers of City Hall, 604 West Fairmont
Parkway, La Porte, Texas, for the purpose of considering the following agenda items:
1. Call to order — Lindsey Pfeiffer, President;
2. Consider approval of the minutes of Board of Directors Meeting held on August 25, 2010;
3. Consider approval of the La Porte Redevelopment Authority FY 2010 Audit;
4. Receive staff report and updates with regard to Port Crossing, Lakes on Fairmont Green, Retreat
at Bay Forrest Development Project, and Preserve at Taylor Bayou;
5. Consider request from Port Crossing for an amendment to Development Agreement extending
the interest receipt term by three additional years;
6. Consider approval or other action with regard to authority invoices;
7. Board member comments:
a. Matters appearing on Agenda
b. Inquiry of staff regarding specific factual information or existing policy
8. Adjournment.
In compliance with the Americans with Disabilities Act, the City of La Porte City will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be
received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019 or
TDD 281471-5030.
A possible quorum of city council members may be present at this meeting and participate in discussions but will
not take any action.
David W. Hawes
Executive Director
QOt--'haw.+
Page 1 of 2
April 27, 2011, Redevelopment Authority Agenda
CERTIFICATION
I certify that a copy of the April 27, 2011, agenda of items to be considered by the Redevelopment Authority was
posted on the City Hall bulletin board on April 21, 2011.
QU& 4ql:�6v
Patrice Fogarty, City Secretary
I certify that the attached notice and agenda of items to be considered by the City Council was removed by me
from the City Hall bulletin board on the day of 2011.
Title:
Page 2 of 2
April 27, 2011, Redevelopment Authority Agenda
La Porte Redevelopment Authority
Board Memorandum
April 27, 2011
To: Board of Directors
From: David W. Hawes, Executive Director
Agenda Item: 3. Consider approval of the minutes of Board of Directors Meeting held on August 25, 2010
Minutes attached for your review.
La Porte Redevelopment Authority,
City of La Porte, Texas
Minutes of the Board Meeting
Held August 25, 2010
1. Call to order — Lindsay Pfeiffer, President
The Board of Directors of the La Porte Redevelopment Authority, City of La Porte, Texas, held a
meeting, open to the public, on the 25day of August, 2010; the meeting was called to order at
6:35 p.m. in the City Council Chambers of the City council conference Room, 604 West
Fairmont Parkway, LaPorte, Texas; and the roll was called of the duly appointed members of the
Board, to wit:
Peggy Antone
Position 1
Dave Turnquist
Position 2
Alton Porter
Position 3
Horace Leopard
Position 4
Doug Martin
Position 5
JJ Meza
Position 6
Lloyd Graham
Position 7
Chester Pool
Position 8
Lin Pfeiffer
Position 9 - Chairman
and all of the above were present except Director Porter and Pfeiffer, thus constituting a quorum.
Also present at the meeting were John Joerns, Stacey Osborne, David Hawes.
2. Consider approval of the minutes of Board of Directors Meeting held on June 30, 2010.
Upon motion made by Director Turnquist, seconded by Director Pool, the board voted
unanimously to approve minutes as presented.
3. Consider approval of the proposed La Porte Redevelopment Authority Fiscal Year 2010-
2011 Fiscal Year Budget.
Mr. Hawes reviewed the budget with the board. Upon motion made by Director Antone,
seconded by Director Meza, the board voted unanimously to approve the FY 2010-2011 Fiscal
Year Budget as presented to the board.
4. Receive staff report and updates with regard to Port Crossing, Lakes on Fairmont Green,
Retreat at Bay Forrest Development Project, and Preserve at Taylor Bayou.
The Staff and developer apprised the board of their meetings with Mr. Larson with regard to
Lakes on Fairmont Green and issues related to the Public Improvement district. The city staff
and Mr. Larson agreed to remove the supplemental services component for the Public
Improvement District. No action was taken.
5. Consider approval of invoices.
Mr. Hawes presented the invoices. Upon a motion made by Director Graham, and being
seconded by Director Antone, the board unanimously approved payment of the invoices.
6. Board comments ---None were offered.
7. Adjournment. The Chairman adjourned the meeting at 6:55 PM
SIGNED:
TITLE:
ATTEST:
TITLE:
DATE: DATE:
La Porte Redevelopment Authority
Board Memorandum
April 27, 2011
To: Board of Directors
From: David W. Hawes, Executive Director
Agenda Item: 3. Consider approval of the La Porte Redevelopment Authority FY 2010 Audit.
The draft 2010 audit report is attached for your review.
DRAFT
LA PORTE
REDEVELOPMENT AUTHORITY
ANNUAL FINANCIAL REPORT
SEPTEMBER 30, 2010
LA PORTE REDEVELOPMENT AUTHORITY
TABLE OF CONTENTS
SEPTEMBER 30, 2010
DRAFT
Page
Number
Independent Auditors' Report ................................................................................................ 1
Management's Discussion and Analysis............................................................................... 2-4
Basic Financial Statements:
Statement of Net Assets and Governmental Fund Balance Sheet ...................................... 5
Statement of Activities and Governmental Fund Revenues,
Expenditures and Changes in Fund Balance.................................................................... 6
Notesto Financial Statements............................................................................................. 7 —10
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance —
Budget and Actual — General Fund.................................................................................. 11
Note to Required Supplementary Information.................................................................... 12
I$z:�j DRAFT
PATTILLO, BROWN & HILL,r..L.P.
CERTIFIED PUBLIC ACCOUNTANTS N BUSINESS CONSULTANTS
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
of La Porte Redevelopment Authority
We have audited the accompanying financial statements of the governmental activities and each
major fund of La Porte Redevelopment Authority (the "Authority"), a component unit of the City of La
Porte, Texas, as of and for the year ended September 30, 2010, which collectively comprise the
Authority's basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the Authority's management. Our responsibility is to express opinions on these basic
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and major funds of the Authority as of
September 30, 2010, and the respective changes in financial position for the year then ended in conformity
with accounting principles generally accepted in the United States of America
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and budgetary comparison information on pages 2 through 4 and
11 through 12 be presented to supplement the basic financial statements. Such information, although
not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence
to express an opinion or provide any assurance.
March 11, 2011
401 WEST HIGHWAY 6 ■ P. O. BOX 20725 ■ WACO, TX 76702-0725 ■ (254) 772-4901 ■ FAX: CM) 7724920 ■ www.pbhcpa.corn
.AFFILIATE OFFICES: BROWNSVIU E, TX (956) 544-7778 ■ HILLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 791-3460 ■ ALBUQUERQUE, NM (505) 266-5904
DRAFT
Management's Discussion and Analysis
As management of the La Porte Redevelopment Authority (the "Authority"), we offer readers of the
Authority's financial statements this narrative overview and analysis of the financial activities of the
Authority for the fiscal year ended September 30, 2010. We encourage readers to consider the
information presented here in conjunction with the basic financial statements which follow this section.
Overview of the Authority.
The City of La Porte, 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 set up as a local government corporation pursuant to provisions of Chapter 394 of the
Texas Local Government Code. The Authority is organized as a public nonprofit corporation for the
purpose of aiding, assisting, and acting on behalf of the City in the performance of its governmental
function to promote the common good and general welfare of Tax Increment Reinvestment Zone (the
"TME') and neighboring areas and to promote, develop, encourage and maintain housing, educational
facilities, employment, commerce and economic development in the City. The Authority may issue
bonds with consent of City Council. The Authority is managed by a Board of Directors consisting of 9
members who are appointed by the Mayor with the approval of City Council.
Financial Highlights:
• The liabilities of the Authority exceeded its assets as of September 30, 2010, by
$(26,180) (i.e. Net assets deficit).
• The Authority's total net assets increased by $490,546 during the year.
• Cash and investments equaled $581,337.
• Annual expenses consist of construction of infrastructure and administrative costs.
Overview of the Financial Statements:
This discussion and analysis are intended to serve as an introduction to the Authority's basic financial
statements. The Authority's basic financial statements comprise three components: (1) Management's
Discussion and Analysis (this section); (2) government -wide financial statements, which include the
fund financial statements, and (3) notes to the financial statements.
The financial statements include the Statement of Net Assets and Governmental Fund Balance Sheet and
Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance
that present information for the Authority as a whole and provide an indication of the Authority's
financial health.
2
DRAFT
The Statement of Net Assets presents information showing how the Authority's net assets changed
during the fiscal year. All changes in net assets are reported when the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported
in this statement for some items that will only result in cash flows in future fiscal periods (e.g.
uncollected taxes).
The Authority, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance related legal requirements. The Authority's funds are Governmental funds.
Governmental fund financial statements focus on current sources and uses of spendable resources, as
well as on balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government's near -tern financing requirements.
The financial statements can be found on pages 5 through 6 of this report.
The notes to the financial statements provide additional information that is essential to a full
understanding of the data provided in the financial statements. The notes to the financial statements can
be found on pages 7 through 10 of this report.
Financial Analysis:
As noted earlier, net assets may serve over time as a useful indicator of the Authority's financial
position. As of September 30, 2010, the Authority's liabilities exceeded assets by $26,180.
La Porte Redevelopment Authority's Net Assets
2010
2009
Assets
$ 772,519
$ 406,560
Other liabilities
183,673
308,260
Long-term liabilities
615,026
615,026
Total liabilities
798,699
923,286
Net assets (deficit):
Unrestricted
( 26,180)
( 516,726)
Total net assets (deficit)
$( 26,180
$L 6,726
Overall, the Authority had an increase in net assets of $490,546. This increase is primarily related to the
increase in property tax collections.
3
DRAFT
La Porte Redevelopment Authority's Change in Net Assets
2010
2009
Revenues:
Program revenues:
Charges for services - developers
$ 89,483
$ 312,437
Total program revenues
89,483
312,437
General revenues:
Property taxes
1,738,188
946,025
Interest
910
5,212
Total general revenues
1,739,098
951,237
Expenses:
General government
1,321,416
1,319,499
Interest and fiscal charges
16,619
167,054
Total expenses
1,338,035
1,486,553
CHANGE IN NET ASSETS
490,546
( 222,879)
NET ASSETS, BEGINNING
( 516,726)
( 293,847)
NET ASSETS, ENDING
$ 26,180
$L 516,72
Annual expenses consist of payments to developers for infrastructure in the City.
Budgetary Highlights
During the year, the Authority did not amend its budget. Revenues were greater than anticipated
primarily due to the additional collection of property taxes.
Long-term Debt
The Authority owes $615,026 to the City of La Porte. More detailed information about the Authority's
long-term debt is presented in the notes to the financial statements.
Discussion of Currently Known Facts, Decision or Condition in Fist cal Year 2010.
As of January 1, 1999, the property tax base was $7,385,080. As of January 1, 2010, the property tax
value is $78,045,860. The tax rate is $.71 on each $100 of taxable value.
Requests for Information:
This financial report is designed to provide our citizens with a general overview of the Authority's
finances. If you have any questions about this report or need any additional information, please contact
David Hawes, P. O. Box 22167, Houston, Texas 77227.
4
LA PORTE REDEVELOPMENT AUTHORITY
STATEMENT OF NET ASSETS
AND GOVERNMENTAL FUND BALANCE SHEET
SEPTEMBER 30, 2010
General Adjustments
ASSETS
ra A
1j,"WrJARMW
Statement of
Net Assets
Cash and investments $ 581,337 $ - $ 581,337
Due from other governments 189,262 - 189,262
Due from developer 1,920 - 1,920
Total assets 772,519 - 772,519
Accrued interest payable -due to the City of La Porte
- 183,673
183,673
Due to City of La Porte
- 615,026
615,026
Total liabilities
- 798,699
798,699
FUND BALANCE/NET ASSETS (DEFICTf)
Fund balance:
Unreserved, undesignated
772,519 772,519
Total fund balance
772,519 772,519
Total liabilities and fund balance
$ 772,519
Net assets (deficit):
Unrestricted
26,18
( 26,180)
Total net assets (deficit)
$ 26 180
$ 26 180
The accompanying notes are an integral part of these financial statements.
E
ra A
plim1W
LA PORTE REDEVELOPMENT AUTHORITY
STATEMENT OF ACTIVITIES
AND GOVERNMENTAL FUND REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Expenditures/expenses:
Current:
General government
Debt service:
Interest and fiscal charges
Total expenditures/expenses
Program revenues:
Charges for services -developers
Total program revenues
Net program revenues
General revenues:
Property taxes
Interest
Total general revenues
Excess (deficiency) of revenues
over (under) expenditures
Change in net assets (deficit)
Fund balancetnet assets (deficit):
Beginning
Ending
Statement
General Adjustments
$ 1,321,416 $ - $ 1,321,416
- 16,619 16,619
1,321,416 16,619 1,338,035
89,483 - 89,483
89,483 - 89,483
(1,231,933) ( 16,619) ( 1,248,552)
1,738,188 - 1,738,188
910 - 910
1,739,098 - 1,739,098
507,165 ( 507,165)
490,546 490,546
265,354 ( 782,080) 516,72
$ 771519 $ 798,699 $L 6180
The accompanying notes are an integral part of these financial statements.
6
DRAFT
LA PORTE REDEVELOPMENT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of La Porte, 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 set up as a local government corporation pursuant to
provisions of Chapter 394 of the Texas Local Government Code. The Authority is organized
as a public nonprofit corporation for the purpose of aiding, assisting, and acting on behalf of
the City in the performance of its governmental function to promote the common good and
general welfare of Tax Increment Reinvestment Zone (the "TIRZ") and neighboring areas and
to promote, develop, encourage and maintain housing, educational facilities, employment,
commerce and economic development in the City. The Authority may issue bonds with
consent of City Council. The Authority is managed by a Board of Directors consisting of 9
members who are appointed by the Mayor with the approval of City Council.
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the statement
of activities) report information on all of the activities of the government. Governmental
activities are supported by property taxes and investment revenue.
The statement of activities demonstrates the degree to which the direct expenses of a given
function are offset by program revenue. Direct expenses are those that are clearly
identifiable with a specific function. Program revenue includes 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges provided
by a given function, and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function. Property taxes and other items
not properly included among program revenue are reported instead as general revenue.
The government -wide and fund financial statements are provided for the governmental fund
of the Authority with a column for adjustments between the two statements.
Measurement Focus. Basis of Accounting and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenue is recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of related
cash flows. Property taxes are recognized as revenue in the year for which they are levied.
(continued)
7
DRAFT
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Measurement Focus. Basis of Accountina and Financial Statement Presentation (Continued)
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenue is recognized as
soon as it is both measurable and available. Revenue is considered to be available when it is
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the Authority considers revenue to be available if collected within
60 days of the end of the current fiscal period. Expenditures generally are recorded when a
liability is incurred, as under accrual accounting. However, debt service expenditures, are
recorded only when payment is due.
The Authority reports the following major governmental fund:
The General Fund is the Authority's primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
Private -sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in the government -wide financial statements to the extent that
those standards do not conflict with or contradict guidance of the Governmental Accounting
Standards Board.
Assets. Liabilities and Net Assets or Eauity
Receivables and Payables
Property taxes are levied on October 1 and attach as an enforceable lien on property as of
January 1. Statements are mailed on October 1, or as soon thereafter as possible, and are
due upon receipt. All unpaid taxes become delinquent if not paid before February 1 of
the following year.
Governmental funds report deferred revenue in connection with receivables for revenue
that is not considered to be available to liquidate liabilities of the current period.
Governmental funds also defer revenue recognition in connection with resources that have
been received, but not yet earned. As of September 30, 2010, the Authority does not have
property taxes receivable or deferred revenue.
Long --term Obligations
In the government -wide financial statements, long-term liabilities are reported as
liabilities in the governmental activities statement of net assets. In the fund financial
statements, governmental fund types recognize the long-term obligation as other
financing sources, during the current period.
(continued)
r
DRAFT
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Liabilities and Net Assets or Equity (Continued)
Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance
for amounts that are not available for appropriation or are legally restricted by outside
parties for use for a specific purpose. Designations of fund balance represent tentative
management plans that are subject to change. As of September 30, 2010, the Authority
does not have reservations or designations of fund balance.
NetAssets
Net assets represent the difference between assets and liabilities. Net assets are reported
as restricted when there are limitations imposed on their use either through the enabling
legislations adopted by the Authority or through external restrictions imposed by
creditors or laws or regulations of other governments.
Estimates
The preparation of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent liabilities at the date of the
financial statements and the reported amounts of revenue and expenses during the reporting
period. Actual amounts could differ from those estimates.
2. STEWARDSHIP AND ACCOUNTABILITY
Deficit Net Assets
A net asset deficit of $26,180 exists as of September 30, 2010. This deficit is the result of the
Authority borrowing money from the City of La Porte to finance capital improvements. As
of September 30, 2010, the amount outstanding that was used to finance construction of
assets was $615,026.
3. DETAILED NOTES ON ALL FUNDS
Deposits
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, 2010, $331,357 of the Authority's $581,357 deposit balance was
collateralized with securities held by the pledging financial institution. The remaining
balance, $250,000, was covered by FDIC insurance.
(continued)
Z
3. DETAILED NOTES ON ALL FUNDS (Continued)
Long-term Obligations — Due to the City of La Porte
The City of La Porte financed 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, 2010, was as follows:
Governmental activities:
Due to the City of
La Porte
Beginning
Balance Additions
$ 615,026 $
$ 615,026 $ -
4. COMMITMENTS AND CONTINGENCIES
Ending
Reductions Balance
$ 615,026
$ - $ 615,026
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 up 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,
payments in the amount of $1,859,700 have been made to Port Crossing for incremental tax value
gained.
65 La Porte, LP, has also completed the improvements detailed in its agreement with the
Authority; however, the developer has not applied for reimbursement because there has been no
incremental tax value gained.
10
DRAFT
REQUIRED
SUPPLEMENTARY INFORMATION
LA PORTE REDEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Budgeted Amounts
Original Final
Revenues:
Variance with
Final Budget
Actual Positive
Amounts (Negative)
Property taxes $ 1,400,804 $ 1,400,804 $ 1,738,188 $ 337,384
Charges for services - - 89,483 89,483
Interest 2,500 2,500 910 ( 1,590)
Total revenues 1,403,304 1,403,304 1,828,581 425,277
Expenditures:
Current:
General government 1,413,966 1,413,966 1,321,416 $ 92,550
Total expenditures 1,413,966 1,413,966 1,321,416 92,550
Change in fund balance
Fund balance - beginning
Fund balance - ending
( 10,662) ( 10,662) 507,165
265,354 265,354 265,354
$ 254,692 $ 254,692 $ 772,519
11
332,727
$ 332,727
DRAFT
LA PORTE REDEVELOPMENT AUTHORITY
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2010
An annual budget is adopted on a basis consistent with generally accepted accounting principles.
The legal level of control is a fund.
M
La Porte Redevelopment Authority
Board Memorandum
April 27, 2011
To: Board of Directors
From: David W. Hawes, Executive Director
Agenda Item: 5. Consider request from Port Crossing for an amendment to Development Agreement extending the
interest receipt term by three additional years
Background:
The La Porte Redevelopment Authority currently has a Development Agreement with Port Crossing Limited for the
purpose of constructing Tax Increment Reinvestment Zone public infrastructure on behalf of the City of La Porte and
TIRZ. As cited below in the development agreement, developer interest accrues from the date that the developer expends
the money for public infrastructure for a period not to exceed five (5) years.
Section 6.1 (b) ... Interest (as defined in Subsection 6.1(F)) on each Developer Advance made
pursuant to this Subsection shall accrue from the date the Developer expended the funds and shall
accrue for a maximum period of five (5) years from such date. At such time as funds are available
to pay all or any portion of the Developer Advances made hereunder, the La Porte Authority, at its
expense, shall hire a certified public accountant to calculate the amount due Developer and shall
prepare and submit a report to the La Porte Board and send a copy to the City Manager certifying
(1)the amount due Developer for the Developer Advances being repaid with interest calculated
thereon as specified herein and (2) that funds are available to make such payment. Upon receipt of
such report, the La Porte Board shall promptly authorize and make payment to Developer.
Issue:
The developer believes they have performed in every aspect of the agreement and that several factors occurred that
mitigated their ability to be reimbursed in accordance with the development agreement causing them undue hardship. The
first factor is the downturn in the economy resulting in the Authority's inability to issue notes, bonds or enter into other
obligations that would result in reimbursement to the developer as contemplated. The second factor is the lack of
construction by the Lakes at Fairmont Green. By not constructing homes in accordance with their development
agreement, this also has resulted in a negative impact on the Authority's ability to issue debt. This factor has resulted in
the concentration of the majority of TIRZ Increment within the Port Crossing development. Staff will stipulate that the
lack of diversity in Tax value increment has been the leading cause of the Authority's inability to issue debt or enter into
other notes, bonds or obligations. As a result, while Port Crossing has preformed and created substantial increment, the
concentration of increment is so high within their development, no private placement may be obtained or public debt be
issued to provide reimbursement to Port Crossing.
Request:
Due to the above factors, Port Crossing is requesting an amendment to their development agreement with respect to
Section 6.1 (b) to increase the limitation on term of interest from five (5) years to eight (8) years.
La Porte Redevelopment Authority
Board Memorandum
ril 27, 2011
To: Board of Directors
From: David W. Hawes, Executive Director
Agenda Item: 6. Consider approval or other action with regard to authority invoices.
Cash flow reports for the Operating Account and Construction Account are attached for your review.
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Hawes Hill Calderon LLP
P.O. Box 22167
Houston TX 77227-2167
TIRZ -La Porte # 1
604 W. Fairmont Pkwy.
LaPorte, TX 77571
Page 1
STATEMENT
DATE
4/25/2011
I
I
AMOUNT REMITTED
DATE
INVOICE NO.
DESCRIPTION
CHARGES
PAYMENTS
BALANCE
9/1/2010
00003766
Sale; TIRZ -La Porte # 1
$2,132.79
$2,132.79
10/1/2010
00003767
Sale; TIRZ -La Porte # 1
$2,000.00
$2,000.00
11/l/2010
00003768
Sale; TIRZ -La Porte # 1
$2,000.00
$2,000.00
12/1/2010
00003769
Sale; TIRZ -La Porte # 1
$2,000.00
$2,000.00
1/l/2011
00003801
Sale; TIRZ -La Porte # 1
$2,053.60
$2,053.60
2/1/2011
00003802
Sale; TIRZ -La Porte # 1
$2,000.00
$2,000.00
3/1/2011
00003873
Sale; TIRZ -La Porte # 1
$2,000.00
$2,000.00
3/1/2011
00003874
Sale; TIRZ -La Porte # 1
$3,500.00
$3,500.00
4/25/2011 Finance Charge $0.00 $0.00
CURRENT 30 DAYS 90 DAYS 90+ DAYS AMOUNT DUE
$7,500.00 $10,186.39 $17,686.39
Hawes Hill Calderon LLP
P.O. Box 22167
Houston TX 77227-2167
Bill To:
TIRZ -La Porte # 1
604 W. Fairmont Pkwy.
LaPorte, TX 77571
Invoice #: 00003766
Date: 9/1/2010
Page: 1
Invoice
DATE IDESCRIPTION I AMOUNT ,
Project Management Services, September 2010
Mileage, D Hawes (August)
In house copies - 477 @ .15 each + 19 sets @ $1.00 each
Postage
Sales Tax:
Total Amount:
$2,000.00
$41.80
$90.55
$0.44
$0.00
$2,132.79
Amount Applied: I $0.00
Balance Due:
$2,132.79
Terms: C.O.D.
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Hawes Hill Calderon LLP
P.O. Box 22167
Houston TX 77227-2167
Bill To:
TIRZ -La Porte # 1
604 W. Fairmont Pkwy.
LaPorte, TX 77571
Invoice #: 00003767
Date: 10/1/2010
Page: 1
Invoice
DATE
DESCRIPTION
AMOUNT
i
j
I
I
Project Management Services, October 2010
$2,000.00
I
I
I
I
I
I
I
i
I
i
Sales Tax:
Total Amount:
$2,000.00,
Amount Applied:
$0.00
Balance Due:
$2,000.00
Terms: C.O.D.
Hawes Hill Calderon LLP
P.O. Box 22167
Houston TX 77227-2167
Bill To:
TIRZ -La Porte # 1
604 W. Fairmont Pkwy.
LaPorte, TX 77571
Invoice #: 00003768
Date: 11/1/2010
Page: 1
Invoice
DATE
DESCRIPTION
AMOUNT
I
I �
Project Management Services, November 2010
I
$2,000.00
I
I
i
I
i
I �
I I
I
I
I
I
Sales Tax:
$0.00'
Total Amount:
$2,000.00 I
Amount Applied:
$0.00 1
Balance Due:T
$21,000.00
Terms: C.O.D.
Hawes Hill Calderon LLP
P.O. Box 22167
Houston TX 77227-2167
Bill To:
TIRZ -La Porte # 1
604 W. Fairmont Pkwy.
LaPorte, TX 77571
Invoice #: 00003769
Date: 12/ 1 /2010
Page: 1
Invoice
DATE
DESCRIPTION
AMOUNT
I
I
Project Management Services, December 2010
I
Sales Tax:
Total Amount:
Amount Applied:
Balance Due:
$2,000.00
i
�
I
I
$0.00
$2,000.00
$0.00
$2,000.00
Terms: C.O.D.
Hawes Hill Calderon LLP
P.O. Box 22167
Houston TX 77227-2167
Bill To
TIRZ -La Porte # 1
604 W. Fairmont Pkwy.
LaPorte, TX 77571
Invoice #: 00003801
Date: 1/l/2011
Page: 1
Invoice
DATE
DESCRIPTION
Project Management Services January2011
—AMOUNT
$2,000.00
12/1/2010
Hour Messenger
I
I
I
$53.60
I
li
I
I
I
'
I
I
I
I
Sales Tax:
$0,00'
Total Amount:
$2,053.60
$0.00
Amount Applied:
$2,053.60
I
Balance Due:
Terms: C.O.D.
Hawes Hill Calderon LLP
P.O. Box 22167
Houston TX 77227-2167
Bill To:
TIRZ -La Porte # 1
604 W. Fairmont Pkwy.
LaPorte, TX 77571
Invoice #: 00003802
Date: 2/1/2011
Page: 1
Invoice
PDATME
DESCRIPTION
AMOUNT
I
i
I
I
�
Project Management Services February 2011
i
$2,000.00
I
I
I
�
I
I I
i
i
I
i
Sales Tax:
$0.00
Total Amount:
$21000.00
Amount Applied:
$0.00
Balance Due:
$2,000.00
i erms: u.u.11.
Hawes Hill Calderon LLP
P.O. Box 22167
Houston TX 77227-2167
Bill To:
TIRZ -La Porte # 1
604 W. Fairmont Pkwy.
LaPorte, TX 77571
Invoice #: 00003873
Date: 3/1/2011
Page: 1
Invoice
II DATE
DESCRIPTION
AMOUNT
Project Management Services, March 2011
$2,000.00
I
I
I
I i
i
I
Sales Tax:
I
I
$0.00
Total Amount:
$2,000.00
Amount Applied:
$0.00
$2,000.00
Balance Due:
Terms: C.O.D.
Hawes Hill Calderon LLP
P.O. Box 22167
Houston TX 77227-2167
Bill To:
TIRZ -La Porte # 1
604 W. Fairmont Pkwy.
LaPorte, TX 77571
Invoice #: 00003874
Date: 3/1/2011
Page: 1
Invoice
Terms: C.O.D.
NOTICE OF MEETING OF
LA PORTE TAX INCREMENT REINVESTMENT ZONE
Notice is hereby given of a meeting of the La Porte Tax Increment Reinvestment Zone to be held
Wednesday, April 27, 2011, at 6:30 p.m., in the Council Chambers of City Hall, 604 West Fairmont
Parkway, La Porte, Texas, for the purpose of considering the following agenda items:
Call to order — Lindsay Pfeiffer, President
2. Consider approval of the minutes of Board of Directors Meeting held on August 25, 2011;
3. Consent agenda — any item may be removed by a board member for discussion
• Entertain motion and a second to approve the TIRZ items in the same form and manner as was
approved in the previous redevelopment authority meeting — Lindsey Pfeiffer, Chairperson
a. Consider approval of the La Porte Redevelopment Authority FY 2010 Audit;
b. Consider request from Port Crossing for an amendment to Development Agreement
extending the interest receipt term by three additional years;
c. Consider approval or other action with regard to authority invoices;
d. Board member comments with regard to matters appearing on agenda and inquiry of staff
regarding specific factual information or existing policy;
In compliance with the Americans with Disabilities Act, the City of La Porte City will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be received
24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019 or TDD
281-471-5030.
A possible quorum of city council members may be present at this meeting and participate in discussions but will
not take any action.
David W. Hawes
Executive Director
Page 1 of 2
April 27, 2011, TIRZ Agenda
CERTIFICATION
I certify that a copy of the April 27, 2011, agenda of items to be considered by the Tax Increment Reinvestment
Zone was posted on the City Hall bulletin board on April 21, 2011.
fl & jw��
Patrice Fogarty, Cfty Secretary
I certify that the attached notice and agenda of items to be considered by the City Council was removed by me
from the City Hall bulletin board on the day of 2011.
Title:
Page 2 of 2
April 27, 2011, TIRZ Agenda
La Porte Tax Increment Reinvestment Zone
Board Memorandum
1279 2011
To: Board of Directors
From: David W. Hawes, Executive Director
Agenda Item: 2. Consider approval of the minutes of Board of Directors Meeting held on August 25 2011.
Minutes are attached for your review.
La Porte Tax Increment Reinvestment Zone Number One,
City of LaPorte, Texas
Minutes of the Board Meeting
Held August 25, 2010
Call to order — Vice Chairman Doug Martin
The Board of Directors of the La Porte Tax Increment Reinvestment Zone Number One, City
of La Porte, Texas, held a meeting, open to the public, on the 25t' day of August, 2010; the
meeting was called to order at 6:56 p.m. in the City Council Conference Room of the City
Hall, 604 West Fairmont Parkway, La Porte, Texas, and the roll was called of the duly
appointed members of the Board, to wit:
Peggy Antone
Position 1
Dave Turnquist
Position 2
Alton Porter
Position 3
Horace Leopard
Position 4
Doug Martin
Position 5
JJ Meza
Position 6
Lloyd Graham
Position 7
Chester Pool
Position 8
Lin Pfeiffer
Position 9 - Chairman
and all of the above were present except Director Porter and Pfeiffer, thus constituting a quorum.
Also present at the meeting were John Joerns, Stacey Osborne, David Hawes.
Consider approval of the minutes of the August 25, 2010 Board of Directors
meetings.
Upon motion made by Director Turnquist, seconded by Director Leopard, the board voted
unanimously to approve the minutes as presented.
CONSENT AGENDA — ANY ITEM MAY BE REMOVED BY A BOARD MEMBER FOR
DISCUSSION
ENTERTAIN A MOTION AND A SECOND TO APPROVE THE TIRZ ITEMS IN
THE SAME FORM AND MANNER AS WAS APPROVED IN THE PREVIOUS
REDEVELOPMENT AUTHORITY MEETING
a. Consider approval of the proposed La Porte Redevelopment Authority Fiscal Year 2010-2011
Fiscal Year Budget;
b. Consider approval or other action with regard to authority invoices;
c. Board member comments with regard to matters appearing on agenda and inquiry of staff
regarding specific factual information or existing policy;
d. Adjournment.
Upon a motion duly made by Director Leopard and being seconded by Director Turnquist, the board
unanimously approved the consent agenda in the same manner and form as approved in the
Redevelopment Authority Board Meeting and adjourned at 6:57 PM.
SIGNED:
TITLE:
ATTEST:
TITLE:
DATE: DATE: