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HomeMy WebLinkAbout02-06-13 LPRDA/TIRZAgendas and Agenda Materials Meetings of the Boards of Directors La Porte Redevelopment Authority La Porte Tax Increment Reinvestment Zone February 6, 2013 NOTICE OF MEETING OF LA PORTE REDEVELOPMENT AUTHORITY Notice is hereby given of the meeting of the La Porte Redevelopment Authority to be held Wednesday, February 6, 2013 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 September 26, 2012; 3. Consider FY 2012 Redevelopment Authority audit; 4. Consider payments for infrastructure improvements to City of La Porte and Harris County; 5. Receive report from city, staff and developers with regard to development within the boundaries of the tax increment reinvestment zone; 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 S. Adjournment. In compliance with the American 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 take no action. David W. Hawes Executive Director LAPORTE REDEVELOPMENT AuTHoRITY, CITY OF LA PORTE, TExAS AGENDA. MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Executive Director SUBJECT: Agenda Item Materials Consider approval of the minutes of Board of Directors meeting held on September 26, 2012. LA PoRTlE REDEVELOPHtk lVT Aul-HoRITY c/o Hawes Hill Calderon LLP P.O. Box 22167 Houston Tx 77227-2167 713-595-1200 or FAX 713-595-1295 La Porte Redevelopment Authority, City of LaPorte, Texas Minutes of the Board Meeting Held September 26, 2012 1. Call to order —Doug Martin, Vice President The Board of Directors of the La Porte Redevelopment Authority, City of LaPorte, Texas, held a meeting, open to the public, on the 26t" day of September, 2012; the meeting was called to order at 6:30 p.m. in the City Council Chambers of the City council conference Room, 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 Directors Graham, Antone, Porter and Pfeiffer, thus constituting a quorum. Also present at the meeting were Stacey Osborne and David Hawes.. 2. Consider approval of the minutes of Board of Directors Meeting held on August 22, 2012. Upon motion made by Director Turnquist, seconded by Director Leopard, the board voted unanimously to approve minutes as presented. 3. Consider professional services agreement to prepare FY 2012 Redevelopment Authority Audit. Mr. Hawes reviewed the proposal with the board and responded to questions and comments from the board. Upon motion made by Director Meza, seconded by Director Martin, the board voted unanimously to approve the service agreement. 4. Discuss Report regarding distribution of tax increment funds in accordance with approved development agreement. Mr. Hawes discussed the matter with the board. No action was taken. 5. Receive report from city, ,staff and developers with regard to development within the boundaries of the tax increment reinvestment zone. Staff informed the board that 10 single family homes were under construction in the Lakes of Fairmont Greens development. 6. Consider approval or other action with regard to authority invoices. Mr. Hawes presented the invoices. Upon a motion made by Director Martin, and being seconded by Director Turnquist, the board unanimously approved payment of the invoices. 7. Board comments ---None were offered. 8. Adjournment. Chairman Martin adjourned the meeting at 6:45 PM. SIGNED: ATTEST: TITLE: TITLE: DATE: DATE: LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Executive Director SUBJECT: Agenda Item Materials Consider FY 2012 Redevelopment Authority audit. LA PORTE REDEVELOPMENT AUTHORITY c/o Hawes Hill Calderon LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 713-595-129$ -777 P-A IL LL Iii-I jV. �.T. LAPORTE REDEVELOPMENT AUTHORITY CITY OF LA PORTE, TEXAS ANNUAL FINANCIAL REPORT SEPTEMBER 30,2012 WCALL GIBSON SWMLUND BARFOOT PLLC Certified Public Accountants LAPORTE REDEVELOPMENT AUTHORITY CITY OF LA PORTE, TEXAS ANNUAL FINANCIAL REPORT SEPTENIBER30,2012 TABLE OF CONTENTS INDEPENDENT AUDITOR'S REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS PAGE 1-2 3-7 STATEMENT OF NET ASSETS AND GOVERNMENTAL FUNDS BALANCE SHEET 8 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS 9 STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUNDS REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 10 RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES NOTES TO BASIC FINANCIAL STATEMENTS REQUIRED SUPPLEMENTARY INFORMATION 12-19 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND 21 OTHER SUPPLEMENTARY INFORMATION BOARD MEMBERS AND ZONE ADMINISTRATOR 23 4"_.,,i t. 3 t L ti - y i r McCALL GIBSON SWWDLUND BARFC. OTPLLC Certified Public Accountants 13700 Thar€lunn Center Driue Suite 235 111 Congress Avenge Hous€on, Texas 77065-5610 Suite 400 (713) 462-0341 Austin, Texas 78701 Fax (713) 4 62-2 708 (512) 610-2209 E-Mail: rugsb&nSsbullc.coitt wmuguzggVL1c.com Board of Directors La Porte Redevelopment Authority City of La Porte, Texas Independent Auditor's Repo We have audited the accompanying financial statements of the governmental activities and major fund of La Porte Redevelopment Authority (the "Authority"), a cam ollent unit of the ga of La Porte Texas as of and for the year ended September 30, 2012, which collectively comprise the Authority's basic financial statements as listed in the preceding table of contents. These financial statements are the responsibility of the Authority's management. Our responsibility 1s to express opinions on these financial statements based on our audit. We have conducted our audit in accordance with auditing standards generally accepted within 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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control over financial reporting. Accordingly, we express no such opinion. 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 fund of the Authority as of September 30, 2012, 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. Member of American Institute of Certified Public Accountants Texas Society of Certified Public Accountants Board of Directors La Porte Redevelopment Authority Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis on pages 3 through 7 and the Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — General Fund on page 21 be presented to supplement the basic fmancial 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority's basic financial statements. The other supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. This information, excluding that portion marked "Unaudited" on which we express no opinion or provide any assurance, has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. McCall Gibson Swedlund Barfoot PLLC Certified Public Accountants -2- LA, PORTE REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2012 Management's discussion and analysis of La Porte Redevelopment Authority's (the "Authority") financial performance provides an overview of the Authority's financial activities for the fiscal year ended September 30, 2012. Please read it in conjunction with the Authority's financial statements, which begin on page S. FINANCIAL HIGHLIGHTS • The Authority's liabilities exceeded its assets by $8,594,987 for the year ended September 30, 2012. This compares to the previous year adjusted, when liabilities exceeded assets by $9,501,095. • The total net assets deficit of $8,594,987 results primarily from the Authority having recorded an amount due to a Developer of $8,880,774 for the facilities the Developer constructed and conveyed to the City. The Authority anticipates that with continued development in the area tax increment revenues will be sufficient to cover operating costs, and to reimburse the Developer. The Authority's obligations to the Developer are contingent upon the availability of tax increment for such as described in Note 4. The Authority's governmental funds reported a total ending fund balance of $1,178,981 this year. This compares to the prior year fund balance $1,020,944, showing an increase of $158,037 during the current fiscal year. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The basic financial statements include: (1) combined fund financial statements and government -wide financial statements and (2) notes to the basic financial statements. The combined fund financial statements and government -wide financial statements combine both: (1) the Statement of Net Assets and Governmental Funds Balance Sheet and (2) the Statement of Activities and Governmental Funds Revenues, Expenditures, and Changes in Fund Balances. This report also includes other supplementary information in addition to the basic financial statements. GOVERNMENT -WIDE FINANCIAL STATEMENTS The Authority's annual report includes two financial statements combining the government - wide financial statements and the fund -financial statements. The government -wide portion of these statements provides both long-teru and short-term information about the Authority's overall status. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities. -3- LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2012 GOVERNMENT -WIDE FINANCIAL STATEMENTS (Continued) The first of the government -wide statements is the Statement of Net Assets. This information is found in the Statement of Net Assets column an page 8. The Statement of Net Assets is the Authority -wide statement of its financial position presenting information that includes all of the Authority's assets and liabilities, with the difference reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Authority as a whole is improving or deteriorating. Evaluation of the overall financial health of the Authority would extend to other non -financial factors. The government -wide portion of the Statement of Activities on page 10 reports how the Authority's net assets changed during the current fiscal year. All current year revenues and expenses are included regardless of when cash is received or paid. FUND FINANCIAL STATEMENT'S The combined statements also include fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Authority has one governmental fund type. The General Fund accounts for resources not accounted for in another fund, tax increment revenues, costs and general expenditures. Governmental funds are reported in each of the financial statements. The focus in the fund statements provides a distinctive view of the Authority's governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of the Authority and the commitment of spendable resources for the near -term. Since the government -wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of short-term financing decisions. The adjustments columns, the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets on page 9 and the Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities on page I explain the differences between the two presentations and assist in understanding the differences between these two perspectives. ME I •...-,. P- r LA, PORTS REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2012 NOTES TO THE BASIC FINANCIAL STATEMENTS The accompanying notes to the basic (financial statements provide information essential to a full understanding of the government -wide and fund financial statements. The notes to the basic financial statements can be found on pages 12 through 19 in this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS Net assets may serve over time as useful indicator of the Authority's financial position. In the case of the Authority, liabilities exceeded assets by $8,594,987 as of September 30, 2012. The following table provides a summary of the Authority's net assets as of September 30, 2012, and September 30, 2011: Summary of Changes in the Statement of Net Assets Change Positive 2012 2011 (Negative) Current and Other Assets $ 1 178 981 $ 1,020,944 $ 158,037 Long -Term. Liabilities $ 662,000 $ 662,000 $ Due to Developer 8,880,774 9,665,811 (785,037) Accrued Interest 231,194 194,228 36.966 Total Liabilities $ 9,773,968 $ 10,522,039 $ (748.071) Net Assets: Unrestricted $ (8.594,987) $ (9 501.095) S 906,108 Total Net Assets $ (8.5) 501 095� 90610E -5- LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2012 GOVERNMENT -WIDE FINANCIAL ANALYSIS (Continued) The following table provides a summary of the Authority's operations for the fiscal years ending September 30, 2012, and September 30, 2011: Summary of Chan es in the Statement of Activities Change Positive 2012 2011 (Negative) Revenues Tax Increment Revenue $ 1,290,676 $ 1,480,703 $ (190,027) Investment Revenue 635 965 (330) Total Revenues $ 1,291,311 $ 1,481,668 $ (190,357) Expenses for Services 385.203 419,248 34,045 Change in Net Assets $ 906,108 $ 1,062,420 $ (156,312) Begim-dng Net Assets (9,501,095) (10,563,515) 1,062,420 Ending Net Assets $ (&594,98j) _ (9.501 495) $ __906.1,0 FINANCIAL ANALYSIS OF THE AUTHORITY'S GOVERNMENTAL FUNDS The Authority's combined fund balances as of September 30, 2012, were $1,178,981, an increase of $158,037 from the prior year. The General Fund £and balance increased by $158,037 due to tax increment revenue being more than operating costs and certain costs to fund the Authority's debt obligations. -6- LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEIVIBER 30, 2012 GENERAL FUND BUDGETARY HIGHLIGHTS The Board of Directors did not amend the budget for the fiscal year ending September 30, 2012. Actual revenues were $148,689 less than budgeted and actual expenditures were $109,430 less than budgeted, primarily due to Developer payments being less than budgeted. See the budget to actual comparison on page 21. CAPITAL ASSETS When capital projects are completed, the costs of the projects are recorded as a transfer to the City since the maintenance and operations of the facilities will not be the responsibility of the Authority. During the current fiscal year, $1,095,875 was paid to the Developer for projects including interest. See Note 4 for additional information. LONG-TERM DEBT ACTIVITY Bond Debt As of September 30, 2012, the Authority had no bond debt payable. As of September 30, 2012, the Authority owed $662,000 to the City of La Porte, Texas plus interest of $231,194. See Note 8 for more information. CONTACTING THE AUTHORITY'S FINANCIAL MANAGEMENT This financial report is designed to provide a general overview of the Authority's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to La Porte Redevelopment Authority, c/o David Hawes, P. a. Box 22167, Houston, TX 77227. WE LA ]PORTE REDEVELOPMENT AUTHORITY STATEMENT OF NET ASSETS AND GOVERNMENTAL FUNDS BALANCE SHEET SEPTEMBER 30, 2012 Statement of General Fund Adjustments Net Assets ASSETS Cash, Note 3 $ 1,177,061 $ $ 1,177,061 Due from Developer 1,920 1,920 TOTAL ASSETS $- 1,178,981 $ _ _--_ - _-0- $ 1,178,981 LIABILITIES Accrued Interest Payable -City of LaPorte, Note 8 $ $ 231,194 $ 23I,194 Due to Developer, Note 4 8,880,774 8,880,774 Long -Term Liabilities: Note Due After One Year, Note 8 662,000 662,000 TOTAL LIABILITIES $ -0- $_9,773,968 S 9,773,968 FUND BALANCE Unassigned $ 1_,178,981 $ (1,178,981) $ -0- TOTAL FUND BALANCE $ 1,178,981 $(1,178,981) S -0- TOTAL LIABILITIES AND FUND BALANCE $ 1,178,981 NET ASSETS Unrestricted $ (8,594,987) $ L8,594.987) TOTAL NET ASSETS $.., 18 4,987) SS(885241987) The accompanying notes to basic financial statements are an integral part of this report. -8- LA PORTE REDEVELOPMENT AUTHORITY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO STATEMENT OF NET ASSETS SEPTEMBER 30, 2012 Total Fund Balance — Governmental Fund $ 1,178,981 Amounts reported for governmental activities in the Statement of Net Assets are different because: Long-term liabilities for notes payable are not due and payable in the current period, and, therefore, are not reported as assets in the governmental funds. (662,000) The long-term obligation to the Developer is not recorded in the fund financial statement but is a liability to the Developer in the government -wide entity. (8,880,774) Accrued interest on notes payable is not payable with current financial resources and therefore is not reported in the governmental funds. 231 194 Total Net Assets — Governmental Activities The accompanying notes to basic financial statements are an integral part of this report. -9- w�...t J� _�_.{ _ ! � _ � f. Ey_! �I �- �:.1 ._.� i./" ?.t ., 5'4...� � � .. .• i.. .A .n ... ••.,..F. .�.�.L LA PORTE REDEVELOPMENT AUTHORITY STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUNDS REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 2012 Statement of General Fund Adjustrnenys Activities REVENUES Tax Increment Revenue (Net of Administrative Costs) $ 1,290,676 $ $ 1,290,676 Investment Revenues 635 635 TOTAL REVENUES $ 1,291,311 -0- $ 1.291,311 EXPENDITURES/EXPENSES Service Operations: Professional Services $ 37,399 $ $ 37,399 Debt Service: Interest Expense -City of La Porte, Note 8 36,966 36,966 Developer Interest, Note 4 319,055 (8,217) 310,838 Developer Principal, Note 4 776,820 776 820 TOTAL EXPENDITURES/EXPENSES $ 1,133,2 $�748,071) S 385,203 NET CHANGE IN FUND BALANCE S 158,037 $ (158,037) $ CHANGE IN NET ASSETS 906,108 906,108 FUND BALANCE/NET ASSETS -- OCTOBER 1, 2011 1,020,944 (10,522,039) (9.501,095) FUND BALANCE/NET ASSETS — SEPTEMBER 30, 2012 $ 1.178.981 $_l9.773.4681 i8.594.987) The accompanying notes to basic financial statements are an integral part of this report. -10- LA PORTE REDEVELOPMENT AUTHORITY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2012 Net Change in Fund Balance — Governmental Fund 158,037 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report interest expenditures as expenditures in the year paid. However, in the Statement of Activities, interest is accrued on notes through fiscal year end. (36,966) Governmental funds report note principal payments as expenditures. However, in the Statement of Net Assets, note principal payments are reported as decreases in liabilities, and the Statement of Activities is not affected. 776,820 In the Statement of Activities, the cost of interest expense is adjusted to the amount of the current period accrued expense, &217 Change in Net Assets — Governmental Activities The accompanying notes to basic financial statements are an integral part of this report. -11- r LA PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 20I2 NOTE 1. CREATION OF CORPORATION]' 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 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 public non- profit 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 the Tax Increment Reinvestment Zone (the "Zone") and neighboring areas; to promote, develop, encourage and maintain housing, educational facilities, employment, commerce and economic development in the City. The Authority receives incremental tax revenues on developed property. The Authority has participation agreements with the City of La Porte, La Porte Independent School District and Harris County to receive certain property tax increments. The Authority may issue bonds with consent of City Council. The Authority is managed by a Board of Directors consisting of nine members who are appointed by the Mayor with the approval of City Council. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES The accompanying basic financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America as promulgated by the Governmental Accounting Standards Board ("GASB"). The GASB has established the criteria for determining whether or not a given entity is a component unit. The criteria are: (1) is the potential component unit a legally separate entity, (2) does the primary government appoint a voting majority of the potential component unit's board, (3) is the primary government able to impose its will on the potential component unit, (4) is there a financial benefit or burden relationship. The Authority was created as an instrumentality of the City. The Authority does meet the criteria for inclusion as a component unit of the City. Copies of the financial statements for the City maybe obtained from the City Secretary's office. Financial Statement Presentation These financial statements have been prepared in accordance with GASB Codification of Governmental Accounting and Financial Reporting Standards Part II, Financial Reporting. The GASB Codification sets forth standards for external financial reporting for all state and local government entities, which include a requirement for a Statement of Net Assets and a Statement of Activities. It requires the classification of net assets into three components: Invested in Capital Assets, Net of Related Debt; Restricted; and Unrestricted. These classifications are defied as follows: 12 D i' f� ( I1 z 4 r 4 LA PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL, STATEMENTS SEPTEMBER 30, 2012 NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Financial Statement Presentation (Continued) Invested in Capital Assets, Net of Related Debt — This component of net assets consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other bozxowings that are attributable to the acquisition, construction, or improvements of those assets. o Restricted Net Assets -- This component of net assets consists of constraints placed on net assets use through external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulation of other governments or constraints imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Assets — This component of net assets consists of net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt." When both restricted and unrestricted resources are available for use, generally it is the Authority's policy to use restricted resources first. Government -Wide Financial Statements The Statement of Net Assets and the Statement of Activities display information about the Authority as a whole. The Authority's Statement of Net Assets and Statement of Activities are combined with the governmental fund financial statements. The Authority is viewed as a special purpose government and has the option of combining these financial statements. The Statement of Net Assets is reported by adjusting the governmental fund types to report on the full accrual basis, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. Any amounts recorded due to and due from other funds are eliminated in the Statement of Net Assets. The Statement of Activities is reported by adjusting the governmental fund types to report only items related to current year revenues and expenditures. Items such as capital outlay are allocated over their estimated useful lives as depreciation expense. Internal activities between governmental funds, if any, are eliminated by adjustment to obtain net total revenue and expense in the government -wide Statement of Activities. Fund Financial Statements As discussed above, the Authority's fund financial statements are combined with the government -wide statements. The fund financial statements include a Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances. -13- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2012 NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Governmental Funds The Authority has one major governmental fund. General Fund — To account for all resources not required to be accounted for in another fund. Basis of Accauntin The Authority uses the modified accrual, basis of accounting for governmental fund types. The modified accrual basis of accounting recognizes revenues when both "measurable and available." Measurable means the amount can be determined. Available means collectable within the current period or soon enough thereafter to pay current liabilities. The Authority considers revenues reported in the governmental funds to be available if they are collectable within sixty (60) days after year-end. Also, under the modified accrual basis of accounting, expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, which are recognized as expenditures when payment is due. Capital Assets Capital assets are transferred to the City upon completion. Depreciation is not recorded on items classified as construction in progress. Budgeting In compliance with the governmental accounting principles, the Authority's board members should annually adopt an unappropriated budget for the General Fund. During the current fiscal year, the Authority did not amend the budget. Measurement Focus Measurement focus is a term used to describe which transactions are recognized within the various financial statements. In the government -wide Statement of Net Assets and Statement of Activities, the governmental activities are reported using the economic resources measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets, financial position, and cash flows. All assets and liabilities associated with the activities are reported, regardless of the timing of related cash flows. Fund equity is classified as net assets. -14- LA, PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 20I2 NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus (Continued) Governmental fund types are accounted for on a spending or financial flow measurement focus. Accordingly, only current assets and current liabilities are included on the balance sheet, and the reported fiend balances provide an indication of available spendable or appropriable resources. Operating statements of governmental fund types report increases and decreases in available spendable resources. Fund Balances GASB Statement No. 54, Fund Balance Reporting and Governmental Fund -type Definitions, requires the classification of fund balances in governmental fiends using the following hierarchy: Nonspendable: amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact. The Authority does not have any nonspendable fiord balances. Restricted: amounts that can be spent only for specific purposes because of constitutional provisions, or enabling legislation, or because of constraints that are imposed externally. The Authority does not have any restricted fund balances. Committed: amounts that can be spent only for purposes determined by a formal action of the Board of Directors. The Board is the highest level of decision -making authority for the Authority. This action must be made no later than the end of the fiscal year. Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by the Board. The Authority does not have any committed fund balances. Assigned: amounts that do not meet the criteria to be classified as restricted or committed, but that are intended to be used for specific purposes. The Authority has not adopted a formal policy regarding the assignment of fund balances and does not have any assigned fund balances. Unassigned: all other spendable amounts in the General Fund. When expenditures are incurred for which restricted, committed, assigned or unassigned fund balances are available, the Authority considers amounts to have been spent first out of restricted funds, then committed fiends, then assigned funds, and finally unassigned funds. WrIm LA PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2012 NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. NOTE 3. DEPOSITS AND INVESTMENTS Deposits Custodial credit risk is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The Authority's deposit policy for custodial credit risk requires compliance with the provisions of Texas statutes. Texas statutes require that any cash balance in any fund shall, to the extent not insured by the Federal Deposit Insurance Corporation or its successor, be continuously secured by a valid pledge to the Authority of securities eligible under the laves of Texas to secure the funds of the Authority, having an aggregate market value, including accrued interest, at all times equal to the uninsured cash balance in the fund to which such securities are pledged. At the fiscal year end, the carrying amount of the Authority's deposits was $1,177,061 and the bank balance was $1,179,462. Of the bank balance, $250,000 was covered by federal depository insurance and the balance was covered by collateral pledged in the name of the Authority and held in a third party depository. The carrying values of the deposits are included in the Governmental Funds Balance Sheet and the Statement of Net Assets at September 30, 2012, as listed below: GENERAL FUND 1177.0�1 Investments Under Texas statute, the Authority is required to invest its fiords under written investment policies that primarily emphasize safety of principal and liquidity and that address investment diversification, yield, maturity, and the quality and capability of investment management, and all Authority funds must be invested in accordance with the following investment objectives: understanding the suitability of the investment to the Authority's financial requirements, first; preservation and safety of principal, second; liquidity, third; marketability of the investments if the need arises to liquidate the investment before maturity, fourth; diversification of the - 16- 1­1., R:. L.A. PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2012 NOTE 3. DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) investment portfolio, fifth; and yield, sixth. Authority's investments must be made "with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived." No person may invest Authority funds without express written authority from the Board of Directors. Texas statutes include specifications for and limitations applicable to the Authority and its authority to purchase investments as defined in the Public Funds Investment Act. Authorized investments are summarized as follows: (1) obligations of the United States or its agencies and instrumentalities, (2) direct obligations of the State of Texas or its agencies and instrumentalities, (3) certain collateralized mortgage obligations, (4) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States or its agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States, (S) certain A rated or higher obligations of states, agencies, counties, cities, and other political subdivisions of any state, (6) bonds insured, assumed or guaranteed by the State of Israel, (7) insured or collateralized certificates of deposit, (8) certain fully collateralized repurchase agreements secured by delivery, (9) certain bankers' acceptances with limitations, (10) commercial paper rated A-1 or P-1 or higher and a maturity of 270 days or less, (11) no- load money market mutual fiends and no-load mutual funds with limitations, (12) certain guaranteed investment contracts (13) certain qualified governmental investment pools and (14) a qualified securities lending program. At September 30, 2012, the Authority held no investments. NOTE 4. DUE TO DEVELOPERS The Redevelopment Authority is a party to several agreements with Developers who own property in the La Porte Tax Increment Reinvestment Zone No. 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. 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 Land, LP has completed the public improvements detailed in the agreement with the Authority. Port Crossing Land, LP's reimbursable expenditures totaled S 12,096,488 including interest at May 27, 2009. In the current -17- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2012 NOTE 4. DUE TO DEVELOPERS (Continued) fiscal year, the Developer was reimbursed $1,095,875. To date, reimbursements in the amount of $4,327,098 have been made to Port Crossing Land, LP for incremental tax value gained. Payments were applied to interest first, then. principal. The amount due Port Crossing, LP as of September 30, 2012 is calculated as follows: Balance Due Developer at 9/3012010 Fiscal Year 2011 Interest Fiscal Year 2011 Payment Balance Due Developer at 9/30/2011 Fiscal Year 2012 Interest Fiscal Year 2012 Payment Balance Due Developer at 9/30/2012 Principal Interest Total Due $ 10,459,182 $ 79,153 $10 5�35 $ $ 334,230 $ 334,230 f825,821) f379.933) (1,205,754) $ 9,632,361 $ 33,450 $ 9,665,811 310,838 310,838 (776,820) 319 055 (L095,875? $--8.855,5 $ 25,233 8 The amount shown is not a payable debt if the tract does not generate tax increment sufficient to pay the accrued amount. Certain other Developers have completed improvements detailed in the agreement with the Authority; however, the Developers have not applied for reimbursement because there has been insufficient incremental tax value gained.. NOTE 5. TAX INCREMENTS The City has agreed to deposit their tax increments into the Tax Increment Fund established for the Zone. The amount of a Participant's tax increment for a year is the amount of property taxes levied and collected by the Participant for that year on the Captured Appraised Value of real property taxable by the Participant and located in the Zone. The Captured Appraised Value of real property taxable by a Participant for a year is the total appraised value of all real properly taxable by the Participant and located in the Zone for that year less the Tax Increment Base, which is the total appraised value of all real property taxable by the Participant and located in the Zone on January 1 of the year in which the Zone was designated as such under the Tax Increment Financing Act (the "TIF Act"). In the event property is annexed into the Zone by ordinance of the City, the Tax Increment Base for annexed property is the value of all real property taxable by a Participant and located in the annexed area on January 1 of the year of annexation, No -Is- -. 1 - .. �rvw n-ass :>'^r _•- - - - r".t- ",� -� ' _ LA PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2012 NOTE 5. TAX INCREMENTS (Continued) Participant is required to deposit tax increments derived from property annexed into the Zone unless the Participant has agreed to do so. Each participant is required to collect taxes on property located with the Zone in the same manner as other taxes are collected. The Participant is required to pay into the tax increment fund the collected tax increments by the first day of each calendar quarter or pursuant to the terms of the participation set forth in their respective interlocal agreements. NOTE 6. CITY OF LA PORTE TAX INCREMENTS The City and the Zone have established the Tax Increment Fund, a separate fund in the City Treasury into which tax increments will be deposited. During the current fiscal year, tax increments of $483,366 were recorded from the City of La Porte, and $591,728 from the school district based on collected taxes. NOTE 7. HARRIS COUNTY TAX INCREMENTS The Commissioners Court of Harris County (the "County") approved an agreement to participate in the Zone. The amount of participation from years 2001 through 2029 will be 75% of the tax increment attributed to the capture appraised value. Harris County's participation and use of fund is limited to projects described in the agreement. During the current fiscal year, tax increments of $215S82 were collected from the County. NOTE 8. DUE TO CITY OF LA PORTE, TEXAS The Authority entered into a Reimbursement Agreement with the City of La Porte. The City financed capital improvements on behalf of the Authority. The agreement states that the City will be repaid from available funds subject to certain conditions. Interest accrues at a rate of the Prime Commercial Lending rate of Chase Manhattan Bank, N.A. or its successors, plus one percent per annum, compounded semi-annually, on the unpaid balance. Prior payments were applied to accrued interest. As of September 30, 2012, the Authority has recorded a due to the City of $662,000 plus interest calculated at $231,194. Accrued interest on this obligation in the current fiscal year is $36,966. -19- M-1 1H LAPORTE REDEVELOPMENT AUTHORITY REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30,2012 LA PORTE REDEVELOPMENT AUTHORITY SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL --- GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2012 General Fund Variance Original and Positive Final Budget Actual _ Ne ative REVENUES Tax Increment Revenue $ 1,439,000 $ 1,290,676 $ (148,324) Interest Revenues _ 1.000 635 L65) TOTAL REVENUES $ L440.000 S 1,291,311 $ (,148.689) EXPENDITURES Professional and Other Services $ 36,950 $ 37,399 $ (449) Developer Reimbursement 1,205 754 1.095,875 109,879 TOTAL EXPENDITURES $ 1,242.70 1,133,274 $ 109,430 NET CHANGE IN FUND BALANCE $ 197,296 $ 158,037 $ (39,259) FUND BALANCE - OCTOBER 1, 2011 1,020 9_44 1.020,944 FUND BALANCE _ SEPTEMBER 30, 2012 r $.24Q 1.178.951 S (39,259) See accompanying independent auditor's report. 21 aL� LAPORTE REDEVELOPMENT AUTHORITY OTHER SUPPLEMENTARY INFORMATION SEP-rEMBER 30,2012 jj L.A. PORTE REDEVELOPMENT AUTHORITY BOARD MEMBERS AND ZONE ADMINISTRATOR SEPTEAMER 30, 2012 Authority Mailing Address - Authority Telephone No. - Position Board Members 1 Peggy Antone 2 Dave Turnquist 3 Alton Porter 4 Horace Leopard 5 Doug Martin 6 Jj meza 7 Lloyd Graham 8 Chester Pool 9 Lin Pfeiffer - Chairman Executive Director David Hawes La Porte Redevelopment Authority c/o David Hawes P. 0. Box 22167 Houston, TX 77227 (713) 541-0447 See accompanying independent auditor's report. . -23- C.erUfted Public Accountants 13100 Wortlram Center Drive Sidle 235 III CongressAveurte Houston, Texas 7706556I0 51tite 400 (713) 462-0341 Austin, Texas 78701 Pax (713) 462-2708 (512) 610-2204 1;-Ivlail: rnQs6�rtigsbp le conr guzuraas s 1e,rnn: 2012 Board of Directors La Porte Redevelopment Authority City of La Porte, Texas In planning and performing our audit of the financial statements of the La Porte Redevelopment Authority (the "Authority") as of and for the year ended September 30, 2012, in accordance with auditing standards generally accepted in the United. States of America, we considered the Authority's internal control over financial reporting (';internal control') as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. Statement of Auditing Standards No. 115 ("SAS No. 115"), effective for audits of financial statements for periods ending on or after December 15, 2009, set about to identify and define deficiencies in internal control that might be significant deficiencies or material weaknesses. SAS No. 115 requires that significant deficiencies or material weaknesses be communicated to management in writing. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. A deficiency in internal control exists when the design or operation of a control does -not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements of the Authority's financial statements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Last year, and again this year, we observed the following deficiencies in the Authority's internal control that we consider to be material weaknesses. Member of American Institute afCertifiedPubllc Accountants Texas Society of Cerl$ed Public Accountants Board of Directors La Porte Redevelopment Authority Material 'Weaknesses Draft - subject o, change Page 2 The Authority's management consists of an appointed Board of Directors ("Directors"). Day-to- day operations are performed, by private companies ("Consultants") under contract with the Authority. The Directors supervise the performance of the Consultants; however, although the Consultants can be part of the Authority's system of internal control, the Consultants are not members of management. Ultimately, the Directors are responsible for design and implementation of the system of internal control, As is common within the system of internal control of most small organizations, the accounting function of the Authority does not prepare the financial statements complete with footnotes in accordance with accounting principles generally accepted in the United States of America. Accordingly, the Authority has not established internal controls over the preparation of its financial statements. This condition is considered to be a material weakness of the Authority's system of internal control over financial reporting. During the course of performing an audit, the auditor prepared journal entries to present the financial statements on the government -wide basis of accounting, Management's reliance upon the auditor to detect and make these necessary adjustments is considered to be a material weakness in internal control. SAS No. 115 does not make exceptions for reporting deficiencies that are adequately mitigated with nonaudit services rendered by the auditor or deficiencies for which the remedy would be cost prohibitive. We agree with the objective of SAS No. 115 to inform an organization of all the conditions in its internal control that interfere with its ability to record financial data reliably and issue financial statements free of material misstatement. Communication of the material weaknesses above helps to emphasize that the responsibility for financial reporting rests entirely with the organization and not the auditor. Management's Response The Authority's Board of Directors is appointed from the general population and do not necessarily have governmental accounting expertise. The Board engages consultants who possess industry knowledge and expertise to provide financial services, as well as legal services. Based on the auditor's unqualified opinion and after reading the financial statements, the Board believes the financial statements are materially correct. The Board does not think that the addition of an employee or consultant to oversee the annual financial reporting process is necessary nor would it be cost effective. Board of Directors La Porte Redevelopment Authority Conclusion Draft subject to ahan e Page 3 Management's written response to the material weaknesses identified in our audit has not been subjected to the auditing procedures applied in the audit of the financial statements, and accordingly, we express no opinion on it. This communication is intended solely for the information and use of management, Board of Directors and the Texas Commission on Environmental Quality and is not intended to be and should not be used by anyone other than these specified parties. Sincerely, McCall Gibson Swedlund Barfoot PLLC Certified Public Accountants NOTICE OF MEETING OF LA PORTE TAX INCREMENT REINVESTMENT ZONE Notice is hereby given of the meeting of the La Porte Tax Increment Reinvestment Zone to be held Wednesday, February 6, 2013 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 — Lindsay Pfeiffer, President 2. Consider approval of the minutes of Board of Directors meeting held on August 22, 2012; 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 FY 2012 Redevelopment Authority audit; b. Consider payments for infrastructure improvements to City of La Porte and Harris County; c. Receive report from city, staff and developers with regard to development within the boundaries of the tax increment reinvestment zone; d. Consider approval or other action with regard to authority invoices; e. Board member comments with regard to matters appearing on agenda and inquiry of staff regarding specific factual information or existing policy; f Adjournment. In compliance with the American 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 take no action. David W. Hawes Executive Director LA PORTE TAX INCREMENT REINVESTMENT ZONE, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Tax Increment Reinvestment .Zone FROM: Zone Administrator SUBJECT: Agenda Item Materials 2. Consider approval of the minutes of Board of Directors Meeting held on September 26, 2012; 3. Consent agenda — any item may be removed by a board member for discussion • ENTERTAIN MOTION AND A SECOND TO APPROVE THE TI iZ rrEMs IN THE SAME FORM AND MANNER AS WAS APPROVED IN THE PREVIOUS REDEVELOPMENT AUTHORITY MEETING — LINDSEY PFEIFFER, CHAIRPERSON a. Consider FY 2012 Redevelopment Authority audit b. Consider payments for infrastructure improvements to City of La Porte and Harris County; c. Receive report from city, staff and developers with regard to development within the boundaries of the tax increment reinvestment zone; d. Consider approval or other action with regard to authority invoices; e. Board member comments with regard to matters appearing on agenda and inquiry of staff regarding specific factual information or existing policy; £ Adjournment. LA PORTE TAx INCREMENT itEwmTMENT ZONE c/o Hawes Hill Calderon LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 713-541-9906 La Porte Tax Increment Reinvestment Zone Number One, City of La Porte, Texas Minutes of the Board Meeting Held September 26, 2012 Call to order — Doug Martin, Vice Chairman The Board of Directors of the La Porte Tax Increment Reinvestment Zone Number One, City of LaPorte, Texas, held a meeting, open to the public, on the 26"' day of September, 2012; the meeting was called to order at 6:47 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 I 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 - Chainnan and all of the above were present except Directors Graham, Antone, Porter and Pfeiffer, thus constituting a quorum. Also present at the meeting were Stacey Osborne and David Hawes. Consider approval of the minutes of the Board of Directors meeting held on August 26, 2012. Upon motion made by Director Martin, seconded by Director Meza, 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 professional services agreement to prepare FY 2012 Redevelopment Authority Audit. b. Discuss report regarding distribution of tax increment funds in accordance with approved development agreements; c. Receive report from city, staff and developers with regard to development within the boundaries of the tax increment reinvestment zone; d. Consider approval or other action with regard to authority invoices e. Board member comments with regard to matters appearing on agenda and inquiry of staff regarding specific factual information or existing policy. f. Adjournment. Upon motion duly made by Director Leopard, seconded by Director Turnquist, the Board voted unanimously to adopt the consent agenda and to approve all TIRZ items in the same form and manner as they were approved in the previous Redevelopment Authority meeting. The Board meeting adjourned at 6:48 p.m. SIGNED: TITLE: ATTEST: TITLE: DATE: DATE: La Porte Tax Increment Reinvestment Zone Number One, City of La Porte, Texas Minutes of the Board Meeting Held September 26, 2012 Call to order — Doug Martin, Vice Chairman 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 26th day of September, 2012; the meeting was called to order at 6:47 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 Directors Graham, Antone, Porter and Pfeiffer, thus constituting a quorum. Also present at the meeting were Stacey Osborne and David Hawes. Consider approval of the minutes of the Board of Directors meeting held on August 26, 2012. Upon motion made by Director Martin, seconded by Director Meza, 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 professional services agreement to prepare FY 2012 Redevelopment Authority Audit. b. Discuss report regarding distribution of tax increment funds in accordance with approved development agreements: c. Receive report from city, staff and developers with regard to development within the boundaries of the tax increment reinvestment zone: d. Consider approval or other action. with regard to authority invoices e. Board member comments with regard to matters appearing on agenda and inquiry of staff regarding specific factual information or existing policy. f. Adjournment. Upon motion duly made by Director Leopard, seconded by Director Turnquist, the Board voted unanimously to adopt the consent agenda and to approve all TIRZ items in the same form and manner as they were approved in the previous Redevelopment Authority meeting. The Board meeting adjourned at 6:48 p.m. SIGNED: TITLE: ATTEST: TITLE: DATE: DATE: