Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
08-21-13 LPRDA/TIRZ
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, August 21, 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 July 24, 2013; 3. Consider proposal from McCall Gibson Swedlund Barfoot PLLC to perform an Agreed Upon Procedures Report for development costs associated with Retreat at Bay Forest LP; 4. Consider proposal from McCall Gibson Swedlund Barfoot PLLC to perform the FY 2013 Year End Audit; 5. Consider request for annexation of 33.0541 acres into the Tax Increment Reinvestment Zone; 6. Consider contract proposal from Hawes Hill Calderon LLP to take necessary actions to expand zone, prepare amendment to the Zone Project Plan and Reinvestment Zone Financing Plan and cause all actions necessary for city council approval; 7. Consider FY 2014 Budget; 8. Consider approval or other action with regard to authority invoices; 9. Receive updates from the city, developers and staff with regard to development within the Zone; 10. Board member comments; a. Matters appearing on agenda; b. Inquiry of staff regarding specific factual information or existing policy 11. 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 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, August 21, 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 July 24, 2013; 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 proposal from McCall Gibson Swedlund Barfoot PLLC to perform an Agreed Upon Procedures Report for development costs associated with Retreat at Bay Forest LP; b. Consider proposal from McCall Gibson Swedlund Barfoot PLLC to perform the FY 2013 Year End Audit; c. Consider request for annexation of 33.0541 acres into the Tax Increment Reinvestment Zone; d. Consider contract proposal from Hawes Hill Calderon LLP to take necessary actions to expand zone, prepare amendment to the Zone Project Plan and Reinvestment Zone Financing Plan and cause all actions necessary for city council approval; e. Consider FY 2014 Budget; f. Consider approval or other action with regard to authority invoices; g. Receive updates from the city, developers and staff with regard to development within the Zone; h. Board member comments with regard to matters appearing on agenda and inquiry of staff regarding specific factual information or existing policy; i. 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 Q--G C--� ak-"� La Porte Redevelopment Authority City of LaPorte, Texas Minutes of the Board Meeting July 24, 2013 1. Call to order — Lindsey Pfeiffer, Chair; The Board of Directors of the La Porte Redevelopment Authority, City of La Porte, Texas, held a regular meeting, open to the public, on Wednesday, the 24th day of July, 2013 at 6:30 p.m. The meeting was called to order by Chair Lindsey Pfeiffer 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 - Secretary Dave Turnquist Position 2 Alton Porter Position 3 Horace Leopard Position 4 Doug Martin Position 5 — Vice Chair JJ Meza Position 6 Lloyd Graham Position 7 Chester Pool Position 8 Lindsey Pfeiffer Position 9 - Chair and all of the above were present except Directors Graham, Meza and Porter, thus constituting a quorum. Also present at the meeting were David Hawes, Hawes Hill Calderon, L.LP; Scott Livingston, City of LaPorte; and Carla Martinez, National Property Holdings. 2. Consider approval of the minutes of Board of Directors Meeting held on March 27, 2013; Upon a motion duly made by Director Martin, and being seconded by Director Turnquist, the Board voted unanimously to approve the minutes of the March 27, 2013 Board meeting. 3. Consider approval of Developer Reimbursements; Upon a motion duly made by Director Antone and being seconded by Director Martin, the Board voted unanimously to approve Developer reimbursements. 4. Consider approval or other action with regard to authority invoices; Mr. Hawes presented the invoices. Upon a motion duly made by Director Martin, and being seconded by Director Pool, the Board voted unanimously to approve payment of the invoices. 5. Receive updates from the city, developers and staff with regard to development within the Zone; Staff and City personnel, including Mr. Livingston, briefed the Board members with regard to development within the Zone. No action was taken. 6. Board member comments; a) Matters appearing on agenda; b) Inquiry of staff regarding specific factual information or existing policy No action was taken. 7. Adjournment. Chair Pfeiffer adjourned the meeting at 6:49 p.m. Signe, Title: Date: List of Exhibits: Attesi Title: Date: Exhibit A: "TIRZ Payment Letter and Financial Calculations," Harris County Community Services Department," dated June 14, 2013 Exhibit B: "LaPorte Redevelopment Authority, City of LaPorte, Texas, Annual Financial Report," dated September 30, 2012 '4 5 co&�� f HARRIS COUNTY, TEXAS COMMUNITY SERVICES DEPARTMENT 7ExAs Office of Economic. Development David B. Turkel 8410 Lantern Point Drive Director Houston, Texas 77054 Nancy E. Powell Tel (713) 578-2000 Econondc Development Director Fax (713) 578-2250 Cerf fled Mail #7003 3110 0003 5517 7542 June 14, 2013 JUN 1 7.2013 o MANAGERS Mr. Corby D. Alexander, City Manager c� City of La Polio, Texas 604 W. Fairmont Pkwy. LaPorte, Texas 77571 Re: Harris County 2013 TIRZ Payment (Tax Year 2012), City of La Porte TIRZ #1 Dear Mr. Alexander: We are pleased to provide the enclosed check #02556384, in the amount of $203,468.00, for Harris Co-unty's increment payment to La Porte TIRZ #1, based on 2012 certified tax roll values, in accordance with the terms of the Interlocal Agreement. The enclosed supporting schedule provides detail on the determination of the payment amount by the Tax Assessor -Collectors Office. If you have any questions or need additional information, please do not hesitate to call me at 713-578-2254. Sincerely, �, Nancy E. Powell, Director '✓ Office of Economic Development Enclosure i irE:F,;ii;?:is :,;: n o a- o 0 0 sT N x �V MCA C A pp �( 4 L! H N H r n-m M yi g,' i 'q� r- e•� a ao .... w vq3� `yn..xr; H 4A :fl V1 H Hiw N H 69 N pv�, .:.0; 01 sy -- Off�}}; ca of;:�='::�.•c; ,.. -_� �' N i0'i Kai Y t W •D � � Rf�i N a0 M -G u: p p ti C C O o E p 6 q K7 Q s•i s+1 m O+ m e+f m `` d f-r= p qVI Oil O r sppa n -[ S C O V S O G$ o p o [-�"�, ry N N N N N N N .. : a a � �v}}' `t •� ev�1l�: seen}}., eve�}f':,� _'yrS OR"w YJ �q o M N zz n 0 a s zs v NM1 M H w 6R H i H ooM W Mp SIN 13�! N gag u o�rT S�i� o �` jib �Hk d� ° ao 2 m OR an vgg Ito p it N N o N O N Q _ N � o g say y aav cR� p Q p �ryy Ogg � g�g CL aq a $ o o p Q to Jag vw rftj 0 kq L�S a��� Gi�jj mw mgj ids `o�` �i�y �iS��Nyi tEm V1N L' �N V m � m NN � Q RE R VHi � u pu, a a a a Nmwam l ook fR09 tig -°iFigg oIu k X unti S m 0 � 3 F7 m M 7 m M M 7loci L �U,CS a7 m G.7 ..K• V � L C �9 m [)S R o t (��(aoW3{Qf}{�;iFR 1d to IL 1 l�! N Fh-7�� 3-F��?� S o u u MAW a [�`i }- �•- J !1] N :^ 1- a l�.l N k� i^ Eu H F F ...� c� F W .a W �i F F-� J EL R.a Uv GtA a't7 R� a V RtT 41q R.a CIO Rs vv Ln A A A Ci y '3 C �` cR 41cog M Y N N N ra M a jcl •} a cL UL 14 14 CO � iL C E CL `9 fL Ec ID gtp -tt m In ut CILp�s4 �� M IM hJ, ot7 NO VW U a tf a G16 �¢ uID �¢ Q p {xp 484. GJ N O 100 W A u -0 010 010 0 G is n a 4A ao i+ t©ppp lcM+� �C1K S'i � n 0 got a 44 apppp�y i4 $ `c J1ll W A tl 'q G H co � N CL m S O N S W CR tO © C) o Y a G) r (0 CV a � NCB a C� Cr 0 0 1C) v C7 C) P C) o C) C) 0 d O C) d 40 C) r N t3 A Z C> o C) o © C) chi Cs C) 0 d o U) o w oNo T NC> `� co t-- U C� C) LO to ci) El N N N N v oNi w C14m of N LO m v Q P P C3 C) c- C) C) C) O Q2 ¢ W }� �1 m w ~ !f1 w tt] tT] is T tT U Z i4 d C] {� QQ cU Y F.. d~ 04 ca to m 0 ¢ © o LL �` w 2 Q © ¢ Z Q M U3 c) CA (n fn 0 G7 © j- (L w h m � m H ~i co �C ice- KC fY N w i-- tr Q Cl) C) t tO U) 0) CA i[} 4] co T r e^ r T N Cri M co a J 0000 o allo oho ( N C)o 0 w F= F= F= F F•- C) C) d C] C) O n C) Q d CD 4 (3 C3 Q C] C> Q C3 P r- M 0 O H} 6d4 � � 6% 69 6d9 64 co co < ;C7 C2, C: c�V G� 6c] IQ Ch � cm (0 C14 N 64 Q may' Cad E�! 4 64 coo 4f# 000 d3 60- 69 cclq 6% C? co 0) C] C7 d C] Ca C] 0 C) 0) a C) 0 rn C7 N C� Ca a d P w r csi C) I lq tti C7 It P t` P lz �T to to co C) cc) m r_ co N 0 0 69 1-- C4 co 64 "T to a1 69 64 64 N c9 F- 21.1 n. a. 0- a.. ;a., a a a. (L QL w U U U U U U C3 U U t / cr- N � p � / � 2 CL f 0 � Q k w to o q m k k k CD / k k co / � k �_ / C) / k q k LO c $ Q 3 tp z LL C _ 2 n k \ � 2 / LL m 3 t 7 / < 2 m / / k ƒ % © w \ ~ 0 2 co»® Q a. 7 wƒ L m \ » m < f o V- E q � & c m § 2 / / \ \ n m m 0 q / \ / f $ / 0 G R R CDq d a d d d _ « � c 7 q q k § % 04 % S § � � 0 0 0 0 0 q� 7 q R 7 % b % 9 k k 7 / � ƒ � 0- � Q O a Q O N \ Cl / / � � / � -t O CL a) C spyy M N G N X N CV W L CL p ens U J � O U � i o C 'cti c� cif N r XX LO Ri LO it C UA L x 0 CL m OC IV 0. F- M a N N N 4) 0 rL 9 a U N C) a N c`ri o o a Co Ca a o o a C) o T- 0 b Cs) 00 C) C) 05 l- N CO N N ©It Cal r O C� C)2] 9 Q C14 o (D co x ©o 0 LLI -j Z 2 g d LL 0. Z (3) N ( � 2 -� CO Li1 F M� Q J lit N S CO L�E 0 eT� O a. N w sN o V N 10 w 0) ce) t(Y? ccri d �i 0 0 0 0 CD n N r fR (0� (Q Nt � N � m 60 0- 6 60 co a0} rn rn (C N � C � � � 60- V� fR N CJ co U -4 U 0.t U a U U LJ U fl N o CV 0 N a N o 04 04 — / 2 / o qT / k k / \ k o 0 I I 3 2 /_ � 2 c o o k � cl� 0) K t S � LL R $ 7 / @ R k R & \ ƒ R k ƒ / S w < L ¢ in/ \ U- \ flo co � N 0 2 q \ % w 2 N N ID _ « f S R 7 k to R 7 E 2 k O (q Cli k ® 0 E 0 § 0 0 F 7 K t M k ¥ 2 k � � LUco Cl C> / / G / a O fV tL� I— M CV N b N W 0 CL 2 46 O C) C7 0 N 0 co co m i C7 a n C) O C3 f7 : z C) C) © n C) W) a C7 C3 C) C) o 00 Q VN N N tV (V i14 CV O M C7 a N 0 O N O O Ca a CJ cs O tL� N K M [LO 0 L U :a O CL' L3 CR U) IL v) r z_ uj tz a N L rn N rn Q [!J Ll. E]. w N cy LLJr lu N �t? [17 L14 Q M a tCe) � oUj5 CCL-4 [�F= <CL ( Q < U 0 w R- 0 <:5 V')Q [] O CA N ice') (0 0000 0) d p '�t � � � � rN7 2 Q �r 00 O Ca t0 (0 N MY V' o Nr a Nr Nr Cy 10 N x LO co w Nr It lqr Nr It CY) a U 2 ar- fr w m i- H- [— F- F-- }-- !-- q q a o 0 0 © a aTca c E � t a � fY� W tij CC' N Iq O � C�! N V) � � 6 m l' (Y) v m � C0 C7 11 O Cn Q2 to CM tr) N N 01 [� fo OS (� to U U U U U U C7 U Itr cr tt Nr It N N N C%l ccq N N N x ca r CD Q7 fi CL ti 0 o0 o d r m (fl (S7 C co Z O O O 0 (D (O O O (n to a O cam- C7 (D I- x c Q o U Q z L- r p Q a f� z LU F- to � _ T ui CD E- O }i w OL LLI CO r LL rn 4 v 0co rn �v Into J m 00 O � Nr O co to N �1 cq �t M �S O O Aft o a © ray CL C� C) C) t 4 a can uai c ai co o 60 U 66- tl- m 60. o CKtr,' U) En ai X F.. C L Qom. U U U U } cq � N x t / � U � n % N � 2 CL -j % � Q E \ / 7 % w / Cl) R k k / o 0 2 I 2 0 / k 0 6¥ e J a k k LL k a./ b k a. / � k / t k E / f � q U- k ..� w � / k q % ? Cl) / E 2 $ g 2 / � / q � q tO k Q � � U & R g q 7 % R 2 % m co k O 2 o R C % U 2 D & r (13 / k � 2 d � 2 #_ 64 � � a 0 Q Q k � / � R q � CL v 0 a 0 F t? CSC (�E C] N D a ro 2 0 0 C] N (D C LO � L ,O 1. C> o N t� Z C> M ��? COM M O QC] O CA Q CA �0 CA CA U C7 C? CA C] 0 Q CA 0 CA CA a CO to to � (O ffJ tD CIA N CO 00 co CA 00 Om�_ o o CA O In 7 CA CA m t` o ❑ cp ti X CA¢ cn © max ¢ u tics t- co to © g a- G-. d m Es ❑ O co V- 00 d F- H 1" Qn co a ❑ to�iiz w ,t, qw 4-0) gy CA❑ � � �� a � �� tea: � �l�� r co �� ¢ U At = uj "- O uj U to A a Q ¢ US cy o w to © o o w O o o CA o w o w LL U) u, ca vi s- MOL owl N to u- OD , CJ u- o N u.. 0) 03 LL (0 ❑ M co N 0 to Ar to It ILO IT r- CIA 0 -j to x CIA U) '"co t' 10 as 0 M Ed 2 F=- F-- F F t= t= CL CA lfl H3 CA 4R EH 06 �# CA 0) 66. V 'd M N t (D r' t~4 N Cli � O C� to ER Eft 699 flcuCA � I c N Ar � At N SCi 0) V} 69 CD N (0 CA a tU too fr} EhS C*! C0' 93 �fl I 0. 0. L1} vLU c� UM c� ti CA ti CA CA i' 04 N 04 N N N N � k � \ k k � c I 2 \ co: % n e k to k L ƒ ƒ/ gI « % # # E wS 3 k 2 2 / k LL ca 0 O ® 0 co � k 9 @ co LO R co / 0 S � 3 � $ » as % d cl� g � C) / x $ e 00 ¥ 3 � + n � 2 O cl� f 2 \ � � f � u O k � � q / 0- V- 0 CL m a F- Ce) 0 CV F C9 N d Q. CO w 0 Cn 0 Cl N o 0°0 Q C] cEi N CD C7 N N C? 0 n 0 E co Y Y r- CD N N N Z 0 C) co C) p O C) N Q N © o tO i U t W) Z C) C0 0 Cl o C) V 0 C) <0 o (O (D V- 0 w LEl LU F- In C:, M N 0 h 00 X 0 C) � � im ~ CL � }O� ll1 � o Of M) 0 0 a's and `Y� tL © 2 D w a Q c ©_j S = Z W CL z_ lid,,, N rLL, ELL N `� J w S Q Q i "" Q z Q -� 'n 4 EL' C7 > U x i o (� U Z Q m Q m < U Cl) m �' Q d to LU d 0� M p w 'Z }�- LLi W Y Co x LEl ir- 0i � O 5 w Z m w m x w O w O lil � o � tNil WW Q��[ Lill N LL S 0 — Q } - Y cA ca LL 0 T LY) EL 0) J .. .. «7 GY L LD Q LO to co Ol OD 00Oro coN ONO ONO ONO I7r Nt It It v Cif 0 .J CV 40 co N co fo 00CD � co � co � co fo 'MV' C3 U 1-- E - F- cs a a Cl 9 o c6'o C)v o Lq G � bn9 64C) 4 C3 0 CU fl � co � i LO x j N 00 In co I� Y Cn {fl rlf3 ffl 66% 6699 ff3 ff3 67 to C] C7 10 t` N ' O N RS ea C14 r T {�} T N 69 to 6% 64 64 0 00 x x EB F- CL 0- a CL CL M d d U U U U U U U U c`a } CQV N N N N N N N F-- Nr ff} m CL C 0- N EL c^) 0 0 (s CL (6 0 r 0 C4 CN r+ Q C) O c*) = C7 co O O O C] O Z M 0 Ca Q 0 co V) ❑ © O 00 co Dp (7 O o v Lo o ) V is C) T p 0 a 0 o o a (Q (0 T Y T (D (� U ti! €LLI W 00 uU (n V) Uco T co Z _ _ w co LO a t�i3 to tO C°w O Z uJ Z O Q ClC9 I-- F- F- 1- U O 2 o � CL z❑ O ❑ n 0 LU = Q Q 7 to U (o --J � CO �j� � ui to] to � a�) � Z(L LiJ LL c�i 0 O LL 0. LL � Z n e� C�j p Q g ? �� H Y E- Q y — > Q u Y 5 U1 Q Q© ?� Lu m W m� Q❑ m F-= [t3 Q O u� a 4 Q U` tl� o CC EL' ua Y m �j'j uu Y 0 Z w � N o 8 � w � ❑ � �' Q a' m LL� R� a g S� N 0 D e w O � 03 t;n �4 ( 04 c 0 00 v v v w co 0 p r_ (rs e) �r o T- rn co to 00 (D 00 � co to OD 00 co 0 U cr. cr- '© ti o a o o a Lq � a3 ao w o m rl- (`#R i (13 V- 0) CO N ti rn r Clt m C14 ago m m � � 0) t� Fi# LO T to CV T (6� iA 6), (V 09- T X a a a aJ. CLU a CU U U U U C? C7 `! N N N INN N N X (lT r a� C» co CL v 0 LL N M O CV (V s-- (V O 4. J 46 U CV O N O : p O 0 8 0 O M O M to :co I,, en C3 Cl G 0 Q� U o © C. (0 0 0 T W co T Iti to 00 T W U Lu coo E u ❑_ © a of � to o ° o ? o�� C,co UD to co J a 0 F- CO � W o J M Z Q -j (�] � Q m _1 F- - Q 9- 00 i LU r © co LU Q to z W CO O X ¢ � n EL' ui LY_ J OW COIF 00 (O Z 010 ° 0 co to (a (0 IN co co W 33 C] (M CC) M 00 On OD O C.) N C5 CD C V) b4 Fi3 604 N a? 60 O M } 0) (C4 (]1 O 6R N (Q c-- � I i!} O LO tO CO 0) (.0 619' 60 X tg ti 64 W .} tJ M U J U J U �x T ta�f Y N T N r N Sla 27 N c3 q (~11 M W cp cb O In h q qr OR LD jgto G ❑ ❑ !7 4 N m W aNc /qtl• -Cj a .0 .�y� vmi• Cd po +n N fa Dro N�VV}V0N N M P M w• �r �� c0 0/Ot -Q�r �N •>N?, �N C lV '>N bmk 1AM a z p p o CL a a a 4 CI G7 n qIM q O Q r M SO Cd Oh .p n n P m Ci O G [s [i o C) ttl to pi elp m Ci rn p v� •pp' E9 tll M N r YJ Ui M' N "' y N y„, M N +M N �N omN 4Y FA CAN hcA U�'a off di Sl3 � ro d E -ID a iq N I'D m M m H to � j oy m `? ©N a m aQo � EO N ai °o � p d a q ao v a b » q m r ' o m rn 4 =CV Q N C[NOY3N N rN m Vi Ui 7 c9 fq Hi C a iFl Vl N fR N3 IR p c r�i c� m m v vi N N ro to v N cD (lpp o a, r: ai r. ro rn �n [�pp ao rn o cu v m in n w p W O W p m p W N •rq N Kt� O V rN N• .0 n q a QOi .-• c0 c7 p co a0 m chi T- ~ N 0 4S zi a nL° n, (L a mV!4e V av9 --coo v LA a vciNN a �aN°vv�i ,6 M CJ N 19 - ti td cc a EA A b sfl l CO �'2 i�w ow �2 CIO for N 7rOO 1D r16tO OI Vl I� q C] 00 (q� m a G7 1!>S CO N CO 111 t0 N R ro +� r� �tm�tff M� m ti �VpOT�V.�s}.�- ip OqP �ti lNfi LNS UN�N ysN� imA W �j y tIMpOO�tb'7 CN4 [4 M G N m0 2 ip e'f� 00� ON.b-Oi0 GD � hi?MONO_ N � M 7�C-2 QT q v rN C77C4 i Q} �t� �6,� G7 m �17 r C co �q.� C ui lfl�f�YN t�i7 CNN E0. ow y� �E? Vl Vl yQ �N � N cH cif y� �H NN ar '02 n m o o m e QE m o o v el o 49 r co SDiv a a a a m 0 C 0 Ln 00 a r. 0Ina mC7ab va 0 co rn rs m 00 (b Vtl M co m to r M c0 [u V m N N r- tt _ 1„j mh N _ �QI.P Wiz; c,, _ _ � 10aac'i� [¢ �ti6t ��Am� � c�ornm �� c00�i��`im 15 M (O [50 ~W Wo r- �l+T� a thN eN- 0 N »viiaa�g �vi�nrn�� �cnm ��� NwcnvfM�p v�i�'�""Ptc4 03 �„ --plpb 01 � �.� C ,� � � � � •p � ,� � Ch � Q••� C .—� l6 m � Q •Q C .� f0 U/ > � 4 C QCL lei a�COO p y cisA] f1F„ iACF••W < gp:¢ d FQQ11 w C ty . i¢g , N I t I "F- t-Gt a - • i- , : I � N `t" •'b.. � .Q � � �j .ems Gc�l v`N. ♦. o $a L A C g. '�6 g C V' ro t. 4^�' c m 'N ro i c rt. , CJ m aiN� iiyaa1� 3 �i�Nt Yy=}S6^ c *m�omraFc'SmmAF a''�deams-L° F->�s13� �s Ff-?+?.��'mm i-•k->�a�^�``�m rF_],r,,,s•'ry 1-F"7_q�y �i ©oom�vE 000aSv� 000ya�t $ooE SaSasaE c�FF..-tWUI�O NF-F..2 W WF❑ NFY-+W W F© mI-- W1l]�L'.1 �tFF-� Wttl{-•❑ ea un Nti m 1Ca 0v 0 m Na 0V 0 M mti 013 0w M fbM 0n 0v-01 o �o v N y m v n La to ti t] co Gi M t.7 0 C4 Gi U l� � c4 p`y v.co (4 o m d N Oct� N C1 C3 of q C1 Lt [[pp a �m fMo c�1 NO Sal M� to m Vi ttl Si Ci ep m foA w^ N co pp 1M� m i17 7 a M = N v f� Q CT SO 1c�F: b1 d9 Y} M dI d N UNR tH a cq y � Wa r- t2�� i2q a v[�v 41 urRo o a log w m iy� o v a Via, `�� rn n c+ at cIt m o � �hcs t 0 o w M N N N N !z M O.�- N A cei cV _ _ a, M iR 60 c T fA Mf to 7 T Gi N � c ?. ti. (L LL 0. to dS a (1 a [L N t- T. CI co T M M 1(1 N m N A ty6� t� m N cci ({2i�'" 1l � O �t• 6� DO d m co In -It ul a.?. N d C N M N N N N N to w Iv a a a a ci. a *"' O tlNirn atl6 M 0 o no b iSi s O N ''l$„�, pca �t�fpp1 t��Dpp Xl Sci �+f OiM .Q S3 CV �Acaj u�] �.:N (V ON W = IA Vf CL d 4N acf f9 N ? f�opp MN CL a ID V Om+ 0tl O b MM�otlo a cNi eii mm a0 y to N P� Oi N y Oi tC ci w pQ�_C qa7 (w�nr b�3 C = iV O tl m y t0 MJ y W; h oci d en in 0rr� n u0 a 'A N w (L d a h03 W cps cY M �hco Nu7 aN N N tlLa mC7 cp N NM (� C.7 y W mNf4N fM1 ��p t�cON y y �(�p}i�di tq N i ak Doi m � mA Uri � l6 � 00 Q hN m d rnmNf. r �p cyU {�mm ab0 m �W 6"c y yQN� y yr�MH� cu ���(969 a �MmmM �9, tL 15 ad 4) o o me CP V, cl a s a d Q d � po .�y m cq �v co con VMT h OMiM MOMS W) e7 nt m) ti e?A ^ ij O� fir �toheD CO �pp� Vl Oi40R' �^tp7�� NiD6 Cto [�pp P'lc3 N �bm ff� Oi0 m fo(pp cl!C Q W i� GJ Net�c6 C O4'iA OD C Of iM- VA1m C �Cim N c N W to M N u [A fA N r fA i9 ut m ids (i a v+ 6 - vs ei rn $ 3 w } �d j ooMy Co IL a ot4f�/F� m C, c6 Q� M`�V-3j' IF T tl N m78 Q 2i•N ��o'� %-.� Ni3 n- rn7iu t So mo aCi`raFrR �O aka atCa¢ a� +a�d0 W a aci 'm}-ul aFEr�m.Q�diwy taa� +-a«Ca•a�1L �cnvt7 LTi#3cs.vC7� mNU�snU 3.� aayCwr�mU wy oi>y Xv�r-�g� ffi�rwg ti-- 4��a T9 iR& Em 2 ou ccvF10 aomd` a E Fk�W W © NWWPO N-F-JW W_0 1 LU l-aal �a+ p 23 M ,o 0 V a> w- 03 co m o 'a 0 w rn co .a U b m w tl ca A 0 'o o! — tm W .O o a W- M �ti O.- ono N cn a M I ep m V M Nn v w Mzv Mcom i� w vso t D N ai r � co rnm m e co4 M fp�pp W N Y! im n N M N m N Iti o0 W 7 R 06C ` m L w 140 d ® a b M n N O M � tE d7 C Lo Amy m N a 2 T m N �n M L9 W M C N C7 �j O p O C1 Q jg Ntto aNtt N ttifqq��y a Mp�pppC O�iNc�p t�{S W �m �l�pV Shpp m N(V €T l�4dY O]' Nm W IW�,M p! ti�tiN�f1 A: a� W �MbM3 N ola an a CL 0. P O/ p 4D ` ` 0te1 `v corn voNo�ior i3 mom^ NNh m o rt`;om M Q pc rto -MtC �rz �9uWi vi "'dim �� Q44 u>��� 9.6 FLCi Q.Q a mayy a mCyL 9,op itl 0 4 a �q p o AJ R p 4 N � � a cy 22 c¢ n�CaF w Vc— c< w 00 L OO �J a Ctq. M aa ems• C Q TJ � 6 G: d4q :7 S tll �'l x�Oina�F- � Cr'11L°u�u�73 N av coa�iac poo�ivQ� ono�aa� c�E•-}-J W W 4 NF F J W i0 NFi-� W W d m t1 0 10 a— M m fl 0 13 0 .,- 4m fU 10 0 V W .- rn Cy-ti- C3 LA PORTE REDEVELOPMENT AUTHORITY CITY OF LA PORTE, TEXAS ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2012 McCALL GFBSON SWEDLUND BARFOOT PLLC Certified Public Accountants LA PORTE REDEVELOPMENT AUTHORITY CITY OF EA PORTE, TEXAS ANNUAL FINANCIAL REPORT SEPTEMBER 30, 20I2 TABLE OF CONTENTS INDEPENDENT AUDITOR'S REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS STATEMENT OF NET ASSETS AND GOVERNMENTAL FUNDS BALANCE SHEET RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS PAGE 1-2 3-7 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 11 NOTES TO BASIC FINANCIAL STATEMENTS REQUIRED SUPPLEMENTARY INFORMATION 12-20 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND 22 OTHER SUPPLEMENTARY INFORMATION BOARD MEMBERS AND ZONE ADMINISTRATOR 24 McCALL GIBSON SWLDLUND BARFOOT PLLC Certified Public Accountants 23100 Warfhmn Center Drive Suite 235 121 Congress Avenue Houston, Texas 77065-5610 Suite 400 (713) 462-0341 Austin, Texas 78701 Fax (713) 462-2708 (512) 610-2209 E Mail: 7A Sbftu Sb HC.CA711 IMM0.111S5i1 IC.001n Board of Directors La Porte Redevelopment Authority City of La Porte, Texas Independent Auditor's Report We have audited the accompanying financial statements of the governmental activities and major fund of La Porte Redevelopment Authority (the "Authority'), a component unit of the City of LaPorte, 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 is 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 histiture of Cen fed Public Accountants Texas Society of Cert f ed Public Accaimran is 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 22 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. Our audit was conducted for the purpose of farming 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 March 27, 2013 -2- LA. FORTE 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 8. FINANCIAL HIGHLIGHTS « The Authority's liabilities exceeded its assets by $9,325,403 for the year ended September 30, 2012. This compares to the previous year, as adjusted, when liabilities exceeded assets by $9,555,560. 6 The total net assets deficit of $9,325,403 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-term 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 ANALYSTS 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 on page S. 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 STATEMENTS 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 speck 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 time 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 11 explain the differences between the two presentations and assist in understanding the differences between these two perspectives. -4- LA PORTE 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 20 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 $9,325,403 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 2012 2011 Change Positive (Negative) Current and Other Assets $ 1,178,981 $ 1,020,944 $ 158,037 Long -Term Liabilities $ 1,335,599 $ 662,000 $ (673,599) Due to Developer 8,880,774 9,665,811 785,037 ,Accrued Interest 288,011 248,693 39 318 Total Liabilities $ 10,504,384 $ _ 10,576,504 $ 72,120 Net Assets: Unrestricted $ (9,325,403$ _ (9,555,560i $ 230,157 Total Net Assets $ (9,325,403} $ (9,555,5 230,157 (1} (1) As Adjusted, Note 10 -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 Changes 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 1,06„1,154 473,713 (587,440 Change in Net Assets $ 230,157 $ 1,007,955 $ (777,798) Beginning Net Assets, As Adjusted (9,555,560) (10,563.515) 1007 955 Ending Net Assets $ (9,325.403) 9,555.5601 $ 230,157 (1) As Adjusted, Note 10 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 $159,037 from the prior year. The General Fund fund 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 SEPTEMBER 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 22. 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 Ronal 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 $288,011. 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. O. Box 22167, Houston, TX 77227. -7- 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 178.981 $ -0- $ 1,178,981 LIABILITIES Accrued Interest Payable -City of LaPorte, Note 8 $ $ 288,011 $ 288,011 Due to Developer, Note 4 8,880,774 8,880,774 Long -Term Liabilities: Notes Due After One Year, Notes 8 and 9 -_ - 1,335,599 1,335,599 TOTAL LIABILMES $ -0- $ 10,504,38 $ 10,504,384 FUND BALANCE Unassigned $. 1,178,981 $ (1,_178,981) $--0- TOTAL FUND BALANCE $ 1,178,981 $ (1,178,981) $ _ -0- TOTAL LIABILITIES AND FUND BALANCE $ 1.178.981 NET ASSETS Unrestricted $—(9 325 403) 9 325 403 TOTAL NET ASSETS $___(9,325AQ0) 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. (1,335,599) 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. (288,011) Total Net Assets — Governmental Activities The accompanying notes to basic financial statements are an integral part of this report. '1, LA PORI"E REDEVELOPMENT AUTHORITY STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUNDS REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 2012 REVENUES Tax Increment Revenue (Net of Administrative Costs) Investment Revenues TOTAL REVENUES EXPENDITURES/EXPENSES Service Operations: Professional Services Debt Service: Interest Expense -City of La Porte, Note 8 Interest Expense -Harris County, Note 9 Note Principal -Harris County, Note 9 Developer Interest, Note 4 Developer Principal, Note 4 TOTAL EXPENDITURES/EXPENSES NET CHANGE IN FUND BALANCE CHANGE IN NET ASSETS FUND BALANCE/NET ASSETS W OCTOBER 1, 2011, AS ADJUSTED, NOTE 10 FUND BALANCE/NET ASSETS — SEPTEMBER 30, 2012 General Fund 1,290,676 635 $ 1,291.311 Statement of Adjustments Activities $ �0-� $ 37,399 $ 319,055 776.820 1.133.274 $ 158,037 _ _ I A20,944 E The accompanying notes to basic financial statements are an integral part of this report. -10- 39,318 73,599 600,000 (8,217) 776.820 $ 72.120 $ (158,037) 230,157 (IO.576.504) $ (10.504,3_$4) $ 1,290,676 635 $ 12291.311 $ 37,399 39,318 73,599 600,000 310,838 $$ I06, 61,154 230,157 (9,555.560) {g 375 403) 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 SEPTEM 3ER 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 yearend. (112,917) 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. 176,820 In the Statement of Activities, the cost of interest expense is adjusted to the amount of the current period accrued expense. 8,217 Change in Net Assets — Governmental Activities The accompanying notes to basic financial statements are an inteb al part of this report. -il- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTENISER 30, 2012 NOTE 1. CREATION OF CORPORATION The City of LaPorte, Texas (the "City") authorized the creation of the La Porte Redevelopment Authority (the "Authority") by the Resolution No. 2000-19 passed on December 11, 2000, The Authority was created and organized as a local government corporation pursuant to provisions of Chapter 394 of the Texas Local Government Code, The Authority is organized as a 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 may be 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 defined as follows: - F2- EA PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEM[BER 30, 20I2 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 borrowings that are attributable to the acquisition, construction, or improvements of those assets. • 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. sm 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 Accounting 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 classed 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 SEPTEM 3ER 30, 2012 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 fund 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 funds 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 fund 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 funds, then assigned funds, and finally unassigned funds. -15- 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 laws 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 $ 1„ M61 Investments Under Texas statute, the Authority is required to invest its funds 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- LA,. 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, (5) 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 funds 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, L 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, Ltd.; and Retreat at Bay Forest, LP. Port Crossing band, LP has completed the public improvements detailed in the agreement with the Authority. Port Crossing Land, LP's reimbursable expenditures totaled $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 trade 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 9/30/2010 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 $ 10-458,182 $ ,,,79,153 $10.537.335 $ $ 334,230 $ 334,230 __(825.821) (379.933) (1.205.754) $ 9,632,361 $ 33,450 $ 9,665,811 3I0,838 310,838 (776,820) (319,055) (1.095-8875) S 4 23'18. 0.774 In addition, two Developers have signed Development. Agreements but have not submitted costs for reimbursement of their projects. Estimated costs, based on their agreements, are as follows: 65 LaPorte, Ltd. $ 7,103,500 Retreat at Bay Forest LP $ 164,500 Under the agreements, the amounts shown are not payable debts if the tracts do not generate tax increment sufficient to pay the accrued amounts. 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 property 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 I of the year in which the Zone was designated as such under the Tax Increment Financing Act (the "Ilk' 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 I of the year of annexation. No -18- 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 $215,582 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 LaPorte. 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 $288,011. Accrued interest on this obligation in the current fiscal year is $39,318. -19- TIRS PAGE INTENTIONALLY LEFT BLAND LA. PORTE REDEVELOPMENT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMMER 30, 2012 NOTE 9. DUE TO HARRIS COUNTY, TEXAS In accordance with a Development agreement dated December 14, 2010, Harris County, Texas advanced funds in the amount of $600,000 for the Sylvan Beach Restoration Project. The Authority agreed to reimburse the advances plus interest from available tax increment, subject to certain priorities established in the agreement. The project was undertaken by the City of La Porte through a cooperative agreement with the Texas General Land Office, where the state granted funds provided an equal amount of local match, was raised to fund the project. Interest accrues at the prime rate of 3P Morgan Chase plus 1 %a, compounded semi-annually. The total interest to date is calculated as of September 30, 2012 at $73,599, bringing the total amount due to $673,599. The following is a summary of transactions for the Sylvan Beach Restoration Project: Principal Sylvan Beach Restoration Project $ 600.000 Interest Total Due 71699 $ 673,599 Subsequent to year end, on February 7, 2013, a payment of $166,594.19 was made to Harris County, Texas that included principal and interest. Future payments will be based on available tax increments. NOTE 10. PRIOR PERIOD ADJUSTMENT In a prior period, the District recorded a payment to the City which was applied to the Sewer Trunk Main note in the amount of $46,974. That amount should have been for an administrative fee. Interest on that amount was calculated at $7,491, which has been added back to the note payable. The effect on the net assets balance for the prior period is as follows: Prior period Net Assets Balance $ (9,501,095) Adjustment to Interest on Note Payable (54,465) Net Assets Balance, as adjusted $ (9.555.560} -20- LA PORTE REDEVELOPMENT AUTHORITY REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2012 LA PORTE REDEVELOPMENT AUTHORITY SCIIEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL — GENERAL FUND FOR TBE YEAR ENDED SEPTEMBER 30, 2012 General Fund Variance Original and Positive Final Budget Actual egative) REVENUES Tax Increment Revenue $ 1,439,000 $ 1,290,676 $ (148,324) Interest Revenues _ 1,000 635 (365) TOTAL REVENUES $ 1,440,000 $ 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 $ 1,242,704 L 133 274 $ 109,430 NET CHANGE IN FUND BALANCE $ 197,296 $ 158,037 $ (39,259) FUND BALANCE - OCTOBER 1, 2011 1,020,944 1,020,944 FUND BALANCE -- SEPTEMBER 3% 2012 S 1.21 & 240 $—jJ1L2 I $ (39�259} See accompanying independent auditor's report. 22 LA FORTE REDEVELOPMENT AUTHORITY OVER SUPPLEMENTARY INFORMATION SEPTEM BER 30, 2012 LA TORTE REDEVELOPMENT AUTHORITY BOARD MEMBERS AND ZONE ADMINISTRATOR SEA PTEMBER 30, 2012 Authority Mailing Address - Authority Telephone No. - Position Board Members I Peggy Antone 2 Dave Turnquist 3 Alton Porter 4 Horace Leopard 5 Doug Martin 6 JJ Meza 7 Lloyd Graham S Chester Pool 9 Lin Pfeiffer - Chairman Executive Director David Hawes La Porte Redevelopment Authority c/o David Hawes P. 4. Box 22167 Houston, TX 77227 (713) 541-0447 See accontpanyina independent auditor's report. -24- La Porte Tax Increment Reinvestment Zone City of La Porte, Texas Minutes of the Board Meeting July 24, 2013 1. Call to order — Lindsey Pfeiffer, Chair; The Board of Directors of the La Porte Tax Increment Reinvestment Zone, City of LaPorte, Texas, held a regular meeting, open to the public, on Wednesday, the 24t' day of July, 2013 at 6:30 p.m. The meeting was called to order by Chair Lindsey Pfeiffer at 6:50 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 - Secretary Dave Turnquist Position 2 Alton Porter Position 3 Horace Leopard Position 4 Doug Martin Position 5 — Vice Chair JJ Meza Position 6 Lloyd Graham Position 7 Chester Pool Position S Lindsey Pfeiffer Position 9 - Chair and all of the above were present except Directors Graham, Meza and Porter, thus constituting a quorum. Also present at the meeting were David Hawes, Hawes Hill Calderon, L.LP; Carla Martinez, National Property Holdings; and Scott Livingston, City of LaPorte. 2. Consider approval of the minutes of Board of Directors Meeting held on March 27, 2013; Upon a motion duly made by Director Martin, and being seconded by Director Pool, the Board voted unanimously to approve the minutes of the March 27, 2013 Board meeting. 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 Upon a motion duly made by Director Turnquist and being seconded by Director Martin, the Board voted unanimously to approve the TIRZ items in the same form and manner as was approved at the previous Redevelopment Authority meeting. a. Consider approval of Developer Reimbursements b. Consider approval or other action with regard to authority invoices; c. Receive updates from the city, developers and staff with regard to development within the Zone; d. Board member comments with regard to matters appearing on agenda and inquiry of staff regarding specific factual information or existing policy; e. Adjournment. Chair Pfeiffer adjourned the meeting at 6:51 p.m. S T Attesi Title: Date: