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HomeMy WebLinkAbout01-21-15 LPRDA/TIRZAgendas and Agenda Materials Meetinzs of the Boards of Directors La Porte Redevelopment Authority La Porte Tax Increment Reinvestment Zone January 21, 2 015 NOTICE OF MEETING OF LA PORTE REDEVELOPMENT AUTHORITY Notice is hereby given of the meeting of the La Porte Redevelopment Authority to be beld Wednesday, January 21, 2015 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; 2. Consider approval of the minutes of Board of Directors meeting held on December 10, 2014; Approve Report Applying Agreed -Upon Procedures to Construction, Engineering and Related Costs reimbursable to La Porte Crossing, LP; 4. Approve Fiscal Year 2014 Annual Financial Report; 5. Consider approval or other action with regard to authority invoices; 6. Receive updates from the city, developers and staff with regard to development within the Zone; 7. Board member comments; a. Matters appearing on agenda; bI Inquiry of staff regarding specific factual information or existing policy 8. 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 FORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Executive Director SUBJECT: Agenda Item Materials 2. Consider approval of minutes of the Board of Directors meeting held December 1 Q 2014. LA PORTS RE➢EVELOPMENT AUTHORCCY c/o Hawes Hill Calder6n LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 MINUTES OF THE MEETING OF THE LA PORTE REDEVELOPMENT AUTHORITY CITY OF LA PORTE, TEXAS BOARD OF DIRECTORS December 10, 2014 DETERMINE QUORUM; CALL TO ORDER. 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, December 10, 2014, at 6:30 p.m., in the Council Chambers of 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, Secretary Position 1 Dave Turnquist Position 2 Alton Porter Position 3 Horace Leopard Position 4 Doug Martin, Vice Chair Position 5 JJ Meza Position 6 Lloyd Graham Position 7 Chester Pool Position S Lindsay Pfeiffer, Chair Position 9 and all of the above were present, with the exception of Directors Turnquist, Porter, Graham and Pfeiffer, thus constituting a quorum. Also present were David Hawes, Hawes Hill Calderon, LLP, Scott Livingston, La Porte EDC Director; Alan Mueller, Gromax Development; and Steven Robinson, Port Crossing. The meeting was called to order at 6:47 p.m. CONSIDER APPROVAL OF THE MINUTES OF THE BOARD OF DIRECTORS MEETING HELD ON AUGUST 27, 2014, Upon a motion duly made by Director Pool, and being seconded by Director Leopard, the Board voted unanimously to approve the Minutes of the August 27, 2014, Board meeting, as presented. CONSIDER APPROVAL OF LANDSCAPING BIDS FOR BAYSIDE CROSSING, Mr. Hawes reported bids had been received from three companies and the tabulations were in the Board agenda materials. After review and discussion of the bids received, a motion was duly made by Director Antone, and seconded by Director Pool, and the Board voted unanimously to approve the bid received from Landscape Art for hardscape and landscape work for Bayside Crossing in the total amount of $654,291.00. CONSIDER APPROVAL OR OTHER ACTION WITH REGARD TO AUTHORITY INVOICES, Mr. Hawes went over the Cash Flow Report, FY 2009-2014 and invoices, included in the Board agenda materials. Upon a motion duly made by Director Antone, and being seconded by Director Pool, the Board voted unanimously to approve the Report and payment of invoices, as presented. Mr. Hawes provided handouts of the Annual Financial Report, dated September 30, 2014, a copy s attached as Exhibit A, and the Report on Applying Agreed -Upon Procedures to Construction, Engineering and Related Costs Reimbursable to Port Cros*g Land, LP, dated December 10, 2014, a copy is attached as Exhibit B. No action from the Board was required. RECEIVE UPDATES FROM THE CITY, DEVELOPERS AND STAFF WITH REGARD TO DEVELOPMENT WITHIN THE ZONE. There was general discussion regarding updates with regard to development within the zone. No action from the Board was required. BOARD MEMBER COMMENTS a. Matters appearing on agenda. b. Inquiry of staff regarding specific factual information or existing policy. No action from the Board was required. ADJOURNMENT. There being no further business to come before the Board, the meeting was adjourned at 6:52 p.m. List of Exhibits: A. Annual Financial Report, September 30, 2014 B. Report on Applying Agreed -Upon Procedures to Construction, Engineering and Related Costs Reimbursable to Port Crossing Land, LP, December 10, 2014 2 LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Boazd of Directors FROM: Executive Director SUBJECT: Agenda Item Materials Approve a report applying Agreed -upon Procedures to construction, engineering, and related costs reimbursable to La Porte Crossing LP. LA POn'r'E REDEVELOPMENT AO'r'nOrtrl'x c%Hawes Hill Calder6n LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 co �•: URSABLE TABLE OF CONTENTS INDEPENDENT ACCOUNTANT'S AGREED -UPON PROCEDURES SCHEDULE OF CONSTRUCTION, RELATED COSTS REIMBURSA CROSSING LAND, LP (DEVEL ( SCHEDULE COMPARING WITH EXHIBIT B OWD: TO IBUKSABLE COSTS AGREEMENT SCHEDULE n 0 WCALL GIBSON SWEDLUND BARFOOT PLLC Certified Public Accountants 13100 Wortham Center Drive Suite 235 Houston, Texas 77065-5610 (713) 462-0341 Fax (713)462-2708 E-Mail: njgsb@mgsbvllc.co Ianuazy 21, 2015 Board of Directors La Porte Redevelopment Authority City of La Porte, Texas Harris County, Texas Independent Accountant's Report on Applying Agreed -Upon Procedures We have performed the procedures enun Directors of the La Porte Redevelopment respect to the Construction, Engineering Texas Reinvestment Zone No. 1 to Port 2014, as set forth in the accompanyinggsc solely to assist you in determining the a u ffi facilitate the preparation of a cord arlr Improvement Budget as doc�itrAent d Agreement. Ill Caregress Avenue Suite 400 Austin, Texas 78701 (512) 610-2209 .m w:oxunsbnllc.cam ys+a. S _:. 71, erated beloWtw uch were agreed to by the Board of Autty (the Authority"), solely to assist you with md'Re aced Costs to be paid by the City of La Porte, rossnand, LP ("Developer") as of November 30, du16. The below listed procedures were performed on be reimbursed to the Developer involved and to ien of the actual costs incurred with the Capital Exhibit B in the Public Improvement Development This agreed -upon proce�nes��engagement was conducted in accordance with attestation standards establishedjI theme American Institute of Certified Public Accountants. The sufficiency of the procedurft� o eLy the responsibility of the Board of Directors of the Authority. Consequentl, we ntakc representation regarding the sufficiency of the procedures either for the putposeo.11 '" rlus report has been requested or for any other purpose. The procedures performed aremmarized as follows: A. We reviewed certain schedules and supporfing invoices submitted by the Developer in substantiation of the costs to be reimbursed. Our review included all documentation supporting items, amounts, and proof of payment for which reimbursement is requested. In addition, we reviewed all agreements relative to the reimbursement request. B. We calculated the Developer's interest based upon the terms of the Reinvestment Zone Number One, City of La Porte, Texas ("La Porte Zone") agreement with the Developer for interest in accordance with the aAeement dated May 24, 2006 and the amendment dated April 27, 2011. Memberaf American Institute of Certified Public Accountants Texas Society of Certified Public Accountarzts La Porte Redevelopment Authority City of LaPorte, Texas January 21, 2015 Page 2 C. We verified the mathematical accuracy of the engineering invoices greater than $5,000.00. We tested the completeness of the engineering invoices based upon the total engineering invoices billed. reviewed the computation of certain costs to gain assurances that the amounts required to be paid 100% by the Developer, in accordance with the Development Agreement, are deleted from the amounts to be reimbursed. E. For construction contracts, we footed the final pay estimates and calculated extensions for any line item greater than $5,000.00. 00 Ivat «=t F. We obtained verbal confirmation from Angel Brother �B f rprises, Ltd. that the construction contracts have been aid in full and tha paid cKepq no additional claims against the La Porte Zone or Developer. G. We prepared a reimbursement report for�he beiefi of the Authority including the accountant's report and schedule of ammo nts rehbursable to the Developer and have compared the amounts in the operating apital improvement budgets with the actual reimbursable costs to complete the projects. H. We were available to attend a n tin to present the report, and to answer questions relating to the replez or. The attached Schedule A fitledSc e�tile of Construction, Engineering. and Related Costs Reimbursable to Port Crossing LP (Developer)", sets forth their reimbursable costs. This reimbursement is mm ae-cordance with the terms and conditions of the Development Agreement by and among e Reinvestment Zone Number One, City of La Porte, Texas, La Porte Redevelopment , ity and Port Crossing Land, LP dated May 24, 2006. That agreement was am ndedApril 27, 2011 to extend the maximum interest date on reimbursable amounts to eigbt }fie ' s, pin the payment date. Port Crops' gAN d LP originally submitted schedules and invoices totaling $60,112.67. We have revise the reimbursable amount to $67,714.42 including interest calculated through November 30, 014. The following changes were made to the original schedule: A. We calculated interest through November 30, 2014 at the prime commercial lending rate of J. P. Morgan Chase Bank. That resulted in an increase of $9,818,32, B. We deducted $61750 for sates taxes on costs for electrical work for the fountain. The Authority is not subject to sales tax. C. We deducted $1,599.07 foj sales tax for the fountain assembly. The Authority is not subject to sales tax. La Porte Redevelopment Authority January 21, 2015 City of La Porte, Texas Page 3 According to the Development Agreement, the Developer is to be paid interest on the reimbursable amount at the prime commercial lending rate of J. P. Morgan Chase Bank per annum. Interest was calculated on the per annum basis of a year being 365 days. The following details the interest rates used for the periods included: Dates Prime Rate Tune 5, 2009 to November 30, 2014* 3: 25% *Assumes no change in prime rate _ «, 4 In addition to the current amount reimbursable of $67,714 � the Developer has a principal balance due from the 2009 report of $7,495,141.23, witl imeTest calculated through August 27, 2014 of $22,690.77. We also calculated interld4Q rom A gust 28, 2014 through November 30, 2014 of $62,733.31. That brings the total��epimbuxsa le Ahrough November 30, 2014, to , $7,648,279.73. , We were not engaged to and did not con due �a.n audit, the objective of which would be the expression of an opinion on the aforemen oned,teimbursable costs. Accordingly, we do not express such an opinion. Had we p Egan d additional procedures, other matters might have come to our attention that would hae benreported to you. This report is intended solvely or Weiformation and use of the Board of Directors and is not intended to be and should, eus_ed by anyone other than this specified party. However, this report is a matter of plhb irecord and its distribution is not limited. This report should not be associated with the,Qceseritation of any financial data of the District except to comply with filing requirey, , t as specified by the parties to the agreement. g McCall Gib " wedlund Barfoot PLLC Certified Public Accountants 2014 Report AUP LA PORTE REDEVELOPMENT AUTHORTTY SCHEDULE OF CONSTRUCTION, ENGINEERING AND RELATED COSTS REIMBURSABLE TO PORT CROSSING LAND, LP (DEVELOPER) JANUARY 2L 2015 (SEE ACCOMPANYING DISCLAIMER OF OPINION AND EXPLANATION OF AGREED -UPON PROCEDURES PERFORMED) DESCRIPTION Angel Brothers Enterprises, Ltd. Construction Port Crossing - Infrastructure Development Amount Paid by Developer Less: Amount Reimbursed in 2009 Tones &Carter, Inc. Engineering - Port Crossing Drainage Study Amendment Amoun[ Paid by Developer Less: Amount Reimbursed in 2009 Harrp D. Lane Associates Engineering - Re -Inspection for Fatal Approval by Harris County Port Crossing Amount Paid by Developer $ 6,676,616.(0 6,591,616.10 •r 'nnram_ +$ . r 175144.00 r �r 1,144.00 Davidson Electric Co. Electrical Connections for Foun[atn��' Port Crossing A� Amount Paid by Developer *Z-. Less: Sales Tax Not Reimbursable Lake Management Services Fountain Assembly and Installation Port Crossing 10,497.50 6I7.50 TOTAL 25,000.00 2,753.60 360.00 9,880.00 Amount Paid by Developer $ 21,481.57 Less: Sates Tax Not Revnbursable 1,599.07 19,882.50 Schedule A Page l of 2 LA PORTE REDEVELOPMENT AUTHORITY SCHEDULE OF CONSTRUCTION, ENGINEERING AND RELATED COSTS REIMBURSABLE TO PORT CROSSING LAND, LP (DEVELOPER) JANUARY 21, 2015 (SEE ACCOMPANYING DISCLAIMER OF OPINION AND EXPLANATION OF AGREED -UPON PROCEDURES PERFORMED) DESCRIPTION TOTAL TOTAL AMOUNT REIMBURSABLE TO PORT CROSSING LAND, LP AS OF NOVEMBER 309 2014 $ 57,896.10 Developer Interest * 91818,32 TOTAL AMOUNT PAYABLE TO PORT CROSSING LAND, LP AS OF NOVEMBER 30, 2014 $ 67J14,42 ywN a Interest is calculated based upon the I.P. Morgan Chase Bank prime-,�.,,=_ commercial lending rate in accordance with the Development Agreement _' r v Schedule A Page 2 of 2 LA PORTE REDEVELOPMENT A V MUMJL Y SCHEDULECOMPARING ACTUAL REIMBURSABLE COSTS WITHEXHIBITB OFTHE DEVELOPMENT AGREEMENT JANUARY 21, 2015 (SEE ACCOMPANYING DISCLAIMER OF OPIINION AND EXPLANATION OF AGREEDUPONPROCEDURES PERFORMED) DESCRIPTION CAPITAL IMPROVEMENT BUDGET DESCRIPTION AND ESTIMATED COSTS Streets with storm Systems Powell Road (100ROW) Powell Road (60' ROW) Abandon Powell Road Wharton Weems Boulevard McCabe Road SUBTOTAL Water Distribution System 12" Public Mains Offsite Segment Crossing SH 146 (12) REIMBURSABLE REIMBURSABLE COSTS TO COSTS TO ENGINEERING PORTCROSSING PORTCROSSING ESTIMATE LAND, LP LAND, LP EXHBrrB ATMAY27,2009 ASOFNOVEM13ER30,2014 $ 1,795,W0 841,000 968,OW $ 3,829,000 $ 33560,057 $ 32(h0W Xsn. SUBTOTAL Sanitary Sewer System lift Station / Force Main $ 371000 Public Mains S" -12" 308,000 Otlisite Public Mains 66 nnn SUBTOTAL ON 511,000 $ 9551573 $ Drainage Projects -ate Stormwater Detention/Drainage -Acquisition of 32 Acres ^.s"ae. r $ 21300,000 $ 2,304,431 $ - -Construction: Excavation . 11360,000 11002,032 -Construction: Storm Sewer 11232,000 841,284 25,000 SUBTOTAL $ 49892,000 $ 4,147,747 $ 25,000 Sidewalks Sidewalks / Pedestrians Trails along Major Roadways /Drainageways $ 1205000 $ 45,449 $ Landscaping Along Major Roadways $ 300,000 $ 630,279 $ 29,763 Clearing Public ROW and Easements $ 1209000 $ 182AOI Engineering $ 1,303,000 $ 831,299 $ 31133 Developer Interest $ $ 17360,327 $ %818 TOTAL $ 11,7469000 $ 12,096,487 $ 67,714 Reconciliation of amount reimbursable at November 30, 2014: Total Principal Cost to Daze $ 10,794,056 Total Principal Paid to Date (312412019) Total Interest Calculated to Date 31191,552 Total Interest Paid to Date (32096,310) Total Due to Developer at November 30, 3014 $ 7,6481279 Schedule B Page t of 2 7OTAL ACTUALCOSIS % TO DATE ACTUAL VARIANCE ESTIMATED ANDESTIMATED OVER OVER ADDITIONALCOST ADDTITONAL COST (UNDER) (UNDER) TO COMPLETE TO COMPLETE ESTIMATE ESTIMATE $ 3¢60,057 $ (266,943) $ 383,756 $ 955,573 4 $ 7P %�43} 47431 '1�00�A (3575968) 8p6,284 (365,716) �r $ 4,1729747 $ (71%253) $ 45,446 $ (74,552) $ 6609042 $ 360,042 $ $ 182,001 $ 62,001 $ 834,432 $ (468,568) $ $ L37%145 $ 1,370,145 $ - $ 12,1645201 $ 418,201 -42.81% 87.00% 0.19% -26,32% 29.68% -14.70% .fi2.13% 120.01 51.67% 35.96% Schedule E Page 2 of 2 LA FORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS TO: La Porte Redevelopment Authority Board of Directors FROM: Executive Director SUBJECT: Agenda Item Materials 4. Approve the Fiscal Year 2014 annual financial report. LA PORTS REDEVELOPMENT AD7'HORITY c/o Hawes Hill Calder6n LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 McCALL GIBSON SWEDLUND BARFOOT PLLC Certified Public Accountants 13100 Wortham Center Drive Suite 235 111 Congress Avenue Houston, Texas 77065-5610 Suite 400 (713) 462-0341 Austin, Texas 78701 Fax (713) 462-2708 (512)610-2209 E-Mail: m sb&n6Lsbpllc.cmn mm:n.m¢sbpllccon lanuary 212 2015 Board of Directors La Porte Redevelopment Authority City of LaPorte, Texas In planning and performing our audit of the financial statements of the La PorTe Reevelopment Authority (the "Authority") as of and for the year ended September 30, 20147 i aordanee with auditing standards generally accepted in the United States of America, we considered e Mori 's internal control over financial reporting ("internal control") as a basis for designing audit pcedures that are appropriate in the circumstances for the purpose of expressing our opin o?4 oR th - mancial statements, but not for the purpose of expressing an opinion on the effectiveness the A thou 's internal control. Accordingly, we do not express an opinion on the effectiveness of the uthority internal control. Our consideration of inferno] control was for th mited on, ose described in the preceding paragraph and was not designed to identify all deficiencies; n litemal control that might be significant deficiencies or material weaknesses and therefore, there, ail b o assurance that all deficiencies, _significant deficiencies, or material weaknesses have beenkidant0 0111. A deficiency in internal control exists w�°e'�the design or operation of a control does no[ allow management or employees, in the orm ourse of performing their assigned functions, to prevent or detect and correct misstatements �Allm�'ority's financial statements on a timely basis. A material weakness is a deficiency, or a�combin bn of deficiencies, in internal control, such that there is a reasonable possibility that a ateria 'sstatement of the entity's financial statements will not be prevented, or detected and o ..c .d on a timely basis. A significant deficiency is a deficiency, or a combination of deficient a internal control that is less severe than a material weakness, yet important enough to merit atttio02 thse charged with governance. Last year, anJthisx�v,car, we observed the following deficiencies in the Authority's internal control that we consl erg o be material weaknesses. Material 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 Memberof American Institute of Certified PublicAcenuntams Texas Society of Certified Public Accountants Board of Directors January 21, 2015 La Porte Redevelopment Authority Page 2 Material Weaknesses (Continued) As is common within the system of intemal control of most small organizations, the accounting function of the Authority does not include preparation of 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. 4?1 During the course of performing an audit, the auditor prepared journa fnesjo present the financial statements on the government -wide basis of accounting. Manage mentEEC relianceupon the auditor to detect and make these necessary adjustments is considered to be a ma e-ILI,al we ess in internal control. Auditing standards do not make exceptions for reporting deficiencies thare adequately mitigated with nonaudit services rendered b the auditor or deficiencies for whit Y Ile ry would be cost prohibitive. We agree with the objective to inform an organization o all conditions in its internal control that interfere with its ability to record financial data relialiLyand issue financial statements free of material misstatement. Communication of the material we essesabove helps to emphasize that the responsibility for financial reporting rests entirelft- th the organ ation and not the auditor. Management's Response The Authority's Board of Directors is app©YntefLom the general population and do not necessarily have governmental accounting expertise. The Bo d engages consultants who possess industry knowledge and expertise to provide financial servi a�w�le T as legal services. Based on the auditor's unmodified opinion and after reading the`�fmaftcjta"I sratements, the Board believes the financial statements are materially correct. The Board doeft 'thi that the addition of an employee or consultant to oversee the annual financial reporting process-s necessary nor would it be cost effective. OR Conclusion � "W Management's.;" n rr e to the material weaknesses identified in our audit has not been subjected to the auditin` pro ceflurvapplied 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 the Board of Directors 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 LA PORTE REDEVELOPMENT AUTHORITY CITY OF LA PORTE, TEXAS ANNUAL FINANCIAE REPORT 2014 TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS 317rr lr 1 BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION AND GOVERNMENTAL FUNDS BALANCE,> SHEET g RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET .11 TO THE STATEMENT OF NET POSITION 9 STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUNDS REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES y, RECONCILIATION OF THE GOVERNMENTAL FUNDS__STATEMENT OF REVENUES, EXPENDITURES AND CHANGESIN,F,UND BALANCES TO THE STATEMENT OF ACTIVITIES NOTES TO THE FINANCIAL STATEMENTS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND°ACTUAL-GENERAL FUND OTHER BOARD MEMBERS ZONE ADMINISTRATOR fD1 11 23 25 McCALL GIBSON SWEDLUND BARFOOT PLLC Certified Public Accountants 13100 Wortham Center Drive Suite 235 Ill Congress Avenue Houston, Texas 77065-5610 Suite 400 (713) 462-0341 Austin, Texas 78701 Fax (713) 462-2708 (512) 610-2209 E-Mail: az�sb@ugsbvllccom wwrunigsbialle.com INDEPENDENT AUDITOR'S REPORT Board of Directors La Porte Redevelopment Authority City of LaPorte, Texas We have audited the accompanying fmancial statements of the governmental activities La Porte Redevelopment Authority (the "Authority"), a component unit of the City o as of and for the year ended September 30, 2014, and the related notes to the financial collectively comprise the Authority's basic financial statements as listed in the table of of which Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these flnahcial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perfor fi the audit to obtain reasonable assurance about whether the financial statements are free from, mateerial'misstatement. An audit involves performing ppocedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation bf the financial statements in order to design audit procedures that are appropriate in the circumstances, but ooffor the purpose of expressing an opinion on the effectiveness of the Authority's internal control Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness %of accounting policies used and the reasonableness of significant accounting estimates made by-tnanagement, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Member of Arne an Institute of Certified Public Aecounlants Texas Society of Certified Public Acconmtants Board of Directors La Porte Redevelopment Authority Opinions In our opinion, the fmancial 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, 2014, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis on pages 3 through 7 and Schedule of Revenues, Expenditures;and Changes in Fund Balance — Budget and Actual — General Fund on page 23 be presented to supple, of 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. -sup lem6mary 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 'info ation 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 notprovide us with sufficient evidence to express an opinion or providea6y. assurance. Supplementary Information Ir 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 re9ords,.used to prepare the financial statements. The supplementary information, excluding that portion`niarked "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 January 21, 2015 2- LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEM 3ER 30, 2014 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, 2014. 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 $8,238,406 for the , ear 'ended September 30, 2014. This compares to the previous year, when liabilities, exceeded assets by $8,701,513, • The total net position deficit of $8,238,406 results primarily from the Authority having recorded an amount due to Developers of $7,715,193 for the'facilit es the Developer constructed and conveyed to the City. The Authority anticipates that with continued development in the area tax increment revenues will beN 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 fai"such as described in Note 4. • The Authority's governmental funds reported a total ending fund balance of $661,210 this year. This compares to the prior year`'fund, balance $917,058, showing a decrease of $255,848 during the current fiscal year. lj e- Ile USING THIS ANNUAL REPORT This annual report consists of a series of fmancial statements. The basic fmancial statements include: (1) combined fund financial statements and government -wide financial statements and (2) notes to the financial stateirents..`The combined fund financial statements and government - wide financial statements combine both: (1) the Statement of Net Position 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 addhionito the basic financial statements. ll lei 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 the§e 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 accr4al accounting and elimination or reclassification of internal activities. 3- LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2014 GOVERNMENT -WIDE FINANCIAL STATEMENTS (Continued) The first of the government -wide statements is the Statement of Net Position. This information is found in the Statement of Net Position column on page 8. The Statement of Net Position 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 position. Over time, increases or decreases in net position 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 position 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`'thathave 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 fmancial statements. The focus in the fund statements provides a distinctive view of the Authority's governmental funds. These statements report short-term fiscal accountabilityyfocusing on the use of spendable resources and balances of spendable resources available <at .the'ehd 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 adjustment's'cotulnns, the Reconciliation of the Governmental Funds Balance Sheet to the Statement of et, position on page 9 and the Reconciliation of the Governmental Funds Statement. of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activitiesnon,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, 2014 NOTES TO THE FINANCIAL STATEMENTS The accompanying notes to the financial statements provide information essential to a full understanding of the government -wide and fund financial statements. The notes to the financial statements can be found on pages 12 through 21 in this report. GOVERNMENT -WIDE FINANCIAL ANALYSISri Net position may serve over time as useful indicator of the Authority's financial posltiori: 3n the case of the Authority, liabilities exceeded assets by $8,238,406 as of September, 30, "2Q 14. The following table provides a summary of the Authority's net position as of -'September 30, 2014, and September 30, 2013: Summary of Changes in the Statement of Net Position Change Positive 20142b13 >. (Negative) Current and Other Assets $ 664,210 $ 9275058 $ (262,848) Current Liabilities $ 3 000, z; $ - $ (35000) Long -Term Liabilities 1,0843141 12193,590 1095349 Due to Developer 7;715719:,I' 81230,071 5141878 Annexation Deposit - 0 10,000 10,000 Accrued Interest 1005182 1945910 945728 Total Liabilities $ 859023616 $ 936283571 $ 725,955 Net Position: Unrestricted $ (832383406) $ (8,701,513) $ 4635107 $ (8,238,406) $ (8,701,513) $ 4637107 5- LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2014 GOVERNMENT -WIDE FINANCIAL ANALYSIS (Continued) The following table provides a summary of the Authority's operations for the fiscal years ending September 30, 2014, and September 30, 2013: Summary of Changes in the Statement of Activities Change Positive 2014 2013 (Negative) ,. Revenues: Tax Increment Revenues $ 196983270 $ 1,2229397 $ 475,873 Interest Revenues 511 581 (70) Total Revenues $ 15698,781 $ 152229978 $°' ✓4759803 Expenses for Services $ 132355674 $ 599,088 S (636,586) Change in Net Position $ 4633107 $ 623,890 $ (1603783) Net Position, Beginning of Year (85701,513) (9325,403) 623,890 Net Position, End of Year $ (852381406)� $ j(817012513) $ 463,107 FINANCIAL ANALYSIS OF THE AUTI30RITY'S GOVERNMENTAL FUNDS The Authority's fund balance as;,of"September 30, 2014, was $661,21Q a decrease of $255,848 from the prior year. The General Fund fund'balance decreased by $255,848 due to tax increment revenue being less than operating costs, capital''outlay and certain costs to fund the Authority's debt obligations, 11 - LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2014 GENERAL FUND BUDGETARY HIGHLIGHTS The Board of Directors did not amend the budget for the fiscal year ending September 30, 2014. Actual revenues were $400,092 more than budgeted and actual expenditures were $411,309 more than budgeted. See the budget to actual comparison on page 23, CAPITAL ASSETS When capital projects are completed, the costs of the projects are recorded as a. rarisfer'to the City since the maintenance and operations of the facilities will not be the responslaility of the Authority. During the current fiscal year, $1,125,875 was paid to the Developers for projects including interest. See Note 4 for additional information. LONG-TERM DEBT ACTIVITY As of September 30, 2014, the Authority had no bond debt payable; As of September 30, 2014, the Authority owed $662,000' to the City of La Porte, Texas plus interest of $100,182. See Note 8 for more information.. . . The Sylvan Beach Restoration Project amount due„ to Harris County, Texas at September 30, 2014 is $422,241, including interest of $53244 See.lote 9 for more information. CONTACTING THE AUTHORITY'S MANAGEMENT This financial report is designed'16 provide a general overview of the Authority's finances. Questions concerning any of the�in,i,"ation 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 772fi -7- LA PORTS REDEVELOPMENT AUTHORITY STATEMENT OF NET POSITION AND GOVERNMENTAL FUNDS BALANCE SHEET SEPTEMBER 30, 2014 ASSETS Cash, Note 3 Due from Developer TOTAL ASSETS LIABILITIES Accounts Payable Accrued Interest Payable - City of LaPorte, Note 8 Due to Developer, Note 4 Long -Term Liabilities: Note Due After One Year, Notes 8 and 9 TOTAL LIABILITIES FUND BE Assigned Unassigne TOTALI TOTAL] FUND B NET PO'. Unrestricb TOTALP Statement of General Fund Adjustments Net Position $ 6623290 $ - -'$ 662,290 1,920 19920 $ 6643210 $ - - ,., $ 6649210 $ 31000 $ 3,000 1005182 1003182 '... 7,7151193 72715,193 11084,241 110849241 $ 32000' ",...$ 8,8999616 $ 8,9029616 $ (119,104) (542,106) $ (6613210) (8,238,406) $ (85238,406) The accompanying notes to the financial statements are an integral part of this report. (8,238,406) $ (8,238,406) -8- LA PORTE REDEVELOPMENT AUTHORITY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO STATEMENT OF NET POSITION SEPTEMBER 30, 2014 Total Fund Balance — Governmental Fund $ 661,210 Amounts reported for governmental activities in the Statement of Net Position 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. (190843241) The long-term obligation to the Developer is not recorded in the fupd fmancial statement but is a liability to the Developer in the govemmepf vvidc,,entity. (7,715,193) Accrued interest on notes payable is not payable with current financial resources and therefore is not reported in the governmental funds. L.r(100,182) Total Net Position — Governmental Activities $ 8.238.406 The accompanying notes to the financial statements are an integral part of this report. LA PORTE REDEVELOPMENT AUTHORITY STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUNDS REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 2014 REVENUES Tax Increment Revenue (Net of Adminstrative Costs) Interest Revenues TOTAL REVENUES EXPENDITURES/EXPENSES Service Operations Contracted Services Professional Services Other Capital Outlay Debt Service: Interest Expense, City of LaPorte, Note 8 Interest Expense, Harris County, Note 9 Note Payment - Harris County, Note 9 Note Payment - City of La Porte, Note 8 Developer Interest, Note 4 Developer Principal, Note 4 TOTAL NET CHANGE IN FUND CIIANGE IN NET FUND BALA OCTOBER FUND BAIANCE/NET POSITION - SEPTEMBER"30, 2014 GENERAL STATEMENT OF FUND ADJUSTMENTS ACITIVITIES 511 511 $ 1,698,781 $ $ 1,6985781 $ 53,512 $ - $ 533512 4%207 495207 35 35 46.5,000 4659000 353772 355772 _ 213151 21J51 4301500 (130,500) 0 1307500 (130,500) 0 8447402 (4213190) 4237212 ` 281,473 (93,688) 1875785 S '`$ 17954,629 $ (718,955) $ 122357674 $ (2553848) $ 2555848 463,107 463,107 917,058 (9,61$571) (8,701,513) $ 661,210 $ (8,899,616) $ (8,238,406) i The accompanying notes to the Financial statements are an integral part of this report. 10- LA PORTS 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, 2014 Net Change in Fund Balance — Governmental Fund $ ` (255,848) 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. (56,923) Governmental funds report note principal payments as expenditures. However, in the Statement of Net Position, note principal payments are reported as decreases in liabilities, and the Statement of Activities is not affected. 354,688 In the Statement of Activities, the cost of interest expense is adjusted to the amount of the current period accrued expense. 4214190 Change in Net Position — Governmental Activities $ 463.107 IN IL '4.;.� The accompanying notes to the financial statements are an integral part of this report. -11- LA PORTS REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 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 revetiue,s on developed property. The Authority has participation agreements with the City .(Jf.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 The accompanying financial statements have principles generally accepted in the Unite Governmental Accounting Standards Board (,C :pared in accordance with accounting of America as promulgated by the The GASB has established the criteria for' determining whether or not a given entity is a component unit. The criteria are: (1).is ttI e 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. These finari2gal 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 Position and a Statement of Activities. It requires the clAsification of net position into three components: Net Investment in Capital Assets; Restricted; and Unrestricted. These classifications are defined as follows: -12- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Financial Statement Presentation (Continued) • Net Investment in Capital Assets —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 Position — This component of net position consists of constraints placed on the use of assets 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 Position — This component of net position consists of assets that do not meet the definition of Restricted or Net Investment in,CapiEai Assets. When both restricted and unrestricted resources are available for use, generally it is the Authority's policy to use restricted resources first. The Statement of Net Position and the htatement of Activities display information about the Authority as a whole. The Authority's Statement of Net Position 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 Positron' is'i•eported by adjusting the governmental fund types to report on the full accrual basis, economic resource basis, which recognizes all long -teen assets and receivables as well as longterm debt and obligations. Any amounts recorded due to and due from other funds are, eliminated in the Statement of Net Position. The Statemen%t 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.Qveil eir estimated useful lives as depreciation expense. Internal activities between governmental funds, if any, are eliminated by adjustment to obtain net total revenue and expense 11�in1he government -wide Statement of Activities. Fund Frthancial Statements As discussed above, the Authority's fund financial statements are combined with the government -wide statements. The fund fmancial statements include a Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances. 13- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 NOTE 2. SIGNIFICANT ACCOUNTBVG 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 go modified accrual basis of accounting recognizes revenues when both Measurable means the amount can be determined. Available in current period or soon enough thereafter to pay current liabilities revenues reported in the governmental funds to be available if they (60) days after year-end. Also, under the modified accrual basi's"b fi recorded when the related fund liability is incurred, except for princil debt, which are recognized as expenditures when payment Is diip. i Capital Assets Capital assets are transferred to the City upon corhplation. Budgeting nmental fiiYd types. The easurable'and available." I collectable within the The Authority considers collectable within sixty ousting, expenditures are and interest on long-term In compliance with the governmental 'accounting principles, the Authority's board members should annually adopt an unapprS�priated budget for the General Fund. During the current fiscal year, the Authority did not amend^ ll6 budget_ Measurement Focus Measurement focus'is a term used to describe which transactions are recognized within the various financial 17statements. In the government -wide Statement of Net Position 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 position, 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 position. -14- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 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, ,tti&"following hierarchy: Nonspendable: amounts that cannot be spent either becausethey 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 specifc purposes because of constitutional provisions, or enabling legislation, or because of.coastiaints that are imposed externally. The Authority does not have any restricted fund bal'anc`esi' Committed: amounts that can be spent,only for purposes determined by a formal action of the Board of Directors. The Board ,is`1he 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 resemded 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 fundbalances. As of September 30, 2014, the District has assigned $119,104 of Fund Balance to cover a budget deficit for the fiscal year ending other spendable amounts in the General Fund. When"'expenditures are incurred for which restricted, committed, assigned or unassigned fund balances are available, the Authority consijlers 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 THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 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 institution, a government will not be able to recover d collateral securities that are in the possession of an outsid for custodial credit risk requires compliance with the prow farlurei of a depository financial is or will not be able to recover y: The Authority's deposit policy s of Texas statutes. Texas statutes require that any cash balance m 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 $662,290 and the bank balance was the same. 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 Position at September 30, 2014, as listed below: 16- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 NOTE 3. DEPOSITS AND INVESTMENTS (Continued) 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,411 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 investment portfolio, fifth; and yield, sixth. Authority's investments myst;,b'e 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 they,P'ublic Funds Investment Act. Authorized investments are summarized as follows: (1) obllgatiori of the United States or its agencies and instrumentalities, (2) direct obligations of the'"tote 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 "6bligations of states, agencies, counties, cities, and other political subdivisions of anf state,'(6) bonds insured, assumed or guaranteed by the State of Israel, (7) insured or pollateediized 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 secyr`itie's lending program. At September 30, 2014, the Authority held no investments. J 17- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCLAL STATEMENTS SEPTEMBER 30, 2014 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, Ltd.; and Retreat at Bay Forest, LP. Port Crossing Land, LP has.cotnpleted the public improvements detailed in the agreement with the Authority. Port Crossing Land, LP's reimbursable expenditures totaled $12,096,488 meluding interest at May 27, 2009. In the current fiscal year, the Developer was reimbursed $1°075,875. To date, reimbursements in the amount of $6,337,328 have been made to,Port Crossing Land, LP for incremental tax value gained. Interest was recalculated, and payments were applied to interest 51 first, then principal. The amount due Port Crossing, LP as of September 30, 2014 is calculated as follows: Balance Due Developer at 9/30/2012 Fiscal Year 2013 Interest Fiscal Year 2013 Payment Balance Due Developer at 9/30/2013 Fiscal Year 2014 Interest (Adjusted) Fiscal Year 2014 Payment Balance Due Developer at 9/30/2014 Yrineipal - �Iriterest Total Due $ 858555541' ,$ 255233 $ 8,8803774 283,652 2837652 (675.725) (258,630) (934.355) $ ' 8,1,79,816 $ 50,255 $ 812309071 386,327 3863327 (2684358) (8074517) (1,0759875) $ 7.9t1.458 $ 370.935 $ 7.540.523 Retreat at Bay Forest, LPS"reitiibursable expenditures totaled $224,67Q, including interest of $36,885 for the pilot cfiannel"and excavation costs as of November 2Q 2013. No additional interest will be due under the agreement. During the current fiscal year, a reimbursement of $50,000 was applied to interest first, then principal. The amount due as of September 30, 2014 is calculated as follows.' Principal interest Total Due Balance Due Developer at 11/20/13 $ 187,785 $ 369885 $ 224,670 Fiscal Year `2014 Payment (I3.115l (36,885) (50,000) Balance Due Developer at 9/30/2014 $ 174.670 $ 0 $ 174.670 i -18- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 NOTE 4. DUE TO DEVELOPERS (Continued) In addition, two Developers have signed Development Agreements but have not submitted costs for reimbursement of their projects. Estimated costs, based on the agreement, are as follows: 65 LaPorte, Ltd. Beazer Homes Texas LP Under the agreements, the amount shown is not a payable debt i increment sufficient to pay the accrued amount. NOTE 5. TAX INCREMENTS The City has agreed to deposit their tax increments into the Tax the Zone. 7,103,500 The amount of a Participant's tax increment for a year is the amognt`ofproperty 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 69 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 Participant is required to deposit tax increments derived from property annexed into the Zone unless the Participant has agreed,to Ab so, Each participant is required""10 collect taxes on property located with the Zone in the same manner as other taxes are gollected. 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. CI,)W bF 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. •khe current fiscal year, tax increments of $795,627 were recorded from the City of La and $607,293 from the school district based on collected taxes. -19- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 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 $295,350 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 L'a Porte. Inc 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, 2014, the Authority has recorded a due to the City of $662,000 plus interest calculated at $100,182. Accrued interest on this obligation in the current fiscal year is $35,772, with a payment of $130,500 applied to the outstanding balance. NOTE 9. DUE TO HARRIS COUNTY, TEXAS In accordance with a Developritg��agreement dated December 14, 2010, Harris County, Texas advanced funds in the amount izf'$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'!iri 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 atlthe prime rate of JP Morgan Chase plus 1%, compounded semi-annually. The total interest to' date is calculated as of September 30, 2014 at $119,335, and payment of $130 _ 0 was applied, bringing the total amount due to $422,241. Tkefollowing is a summary of transactions for the Sylvan Beach Restoration Project: Total Die Total Due October 1, 2013 Payment Interest September 30, 2014 Sylvan Beach Restoration Project $ 531.590 $ (130.500) $ 21 I51 S 422.241 Future payments will be based on available tax increments. -20- LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 NOTE 10. ANNEXATION DEPOSIT During the prior fiscal year, a developer submitted an annexation deposit, and costs were applied, leaving a balance of $10,000. Annexation fees paid by the authority in the current fiscal year of $10,000 have been applied to the deposit, leaving a balance of zero at year end. -21- LA PORTE REDEVELOPMENT REQUIRED SUPPLEMENTARY INFORMATION LA PORTE REDEVELOPMENT AUTHORITY SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2014 General Fund _:_Variance Original and Positive Final Budget Actual (Negative) REVENUES Tax Increment Revenue $ 1,298,169 $ 1698,2'70 $400,101 Interest Income 520 -511 (9) TOTAL REVENUES $ 192985689 $ �,,_ ]`.698,781 $ 4005092 EXPENDITURES Professional and Other Services $ 1115700 ' `"' $, 1023719 $ 85981 Capital Improvements 13431362.04,, 118515910 (420,290) TOTAL EXPENDITURES $ 1254„3 32A $ 13954,629 $ (411,309) ,: NET CHANGE IN FUND BALANCE $ � (2`4� 631) FUND BALANCE - OCTOBER 15 2013 i' 917,058 FUND BALANCE - SEPTEMBER 30, 2014, $ 672,427 (255,848) $ (t 1,217) $ 6613210 See accompanying independent auditor's report. 23 In LA PORTE REDEVELOPMENT AUTHORITY OTHER SUPPLEMENTARY INFORMATION SEPTEMBER 30,,2014; LA PORTE REDEVELOPMENT AUTHORITY BOARD MEMBERS AND ZONE ADMINISTRATOR SEPTEMBER 30, 2014 Authority Mang Address Authority Telephone No. - Position Board Members La Porte Redevelopment Authority c/o David Hawes P. Ho Uston, TX 77227 3)541-0447 1 Peggy Antone —Secretary/Treasurer O. Box 22167 2 Dave Tumquist 3 Alton Porter 4 Horace Leopard 5 3 7 Lloyd Graham 8 Chester Pool ' 9 Lin Pfeiffer - Chairman (71 Executive Director David Hawes i See accompanying independent auditor's report. 25 - 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 5. Consider approval or other action regarding Authority invoices. LA PORTE REDEVELOPINENT AU'I'HORrrY c/o Hawes Hitl Calderbn LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 JANUARY 2015 REVENUE/EXPENSE SUMMARY- OPERATING ACCOUNT Beginning Fund Balance, 1213112014 10/31/2014 Interest deposit interest Checks outstanding Checks paid $ 662,343,02 $ 29.68 $ 662,372,70 $ 9,647.18 Checks submitted for approval #167 McCall Gibson Swedlund Barfoot PLLC audit $ 51500,00 #168 Hawes Hill Calderon LLP inv 4918 $ 31650,80 #169 Harris County Treasurer Inv AH002859 (Sylvan Beach) $ 250,000,00 (9,647,18) i9,150,80) Cleared Bank La Porte Redevelopment Authority Cash Flow Report, FY 2009=2015 Account Bermningfund balance,l0/1/2004 10/15/2009 City of La Porte 10/30/2009 Interest deposit (0.30%) 11/30/2009 Interest deposit (0.10%) 12/31/2009 Interest deposit (0.15%) 1/29/2010 Interest deposit (0.30%) 2/26/2010 Interest deposit (0.10%) 3/31/2010 Interest deposit (0.10%) 4/30/2010 Interest deposit (0.20%) 5/31/2010 Interest deposit (0.20%) 6/10/2010 Harris County tax collections 6/22/2010 City of La Porte tax collections 6/22/2010 LPISD tax collections 6/30/2010 Interest deposit (0.20%) 7/31/2010 Interest deposit (0.20%) 8/31/2010 Interest deposit (0.20%) 9/30/2010 Interest deposit (0.20%) 10/20/2010 City of La Porte 10/29/2010 Interest deposit (0.20%) 11/30/2010 Interest deposit (0.10%) 12/31/2010 Interest deposit (0.10%) 1/31/2011 Interest deposit (0.10%) 2/28/2011 Interest deposit (0.10%) 3/31/2011 Interest deposit (0.10%) 4/29/2011 Interest deposit (0.10%) 5/31/2011 Interest deposit (0.10%) 6/16/2011 Wire xfer City of La Porte 6/16/2011 Wire xfer City of La Porte Far Amount Subtotal Total $ 265,520.84 countV71RZ payment $ 196,067.00 nterest $ 91.25 interest $ 73.20 nterest $ 36.70 interest $ 28.41 nterest $ 22.06 merest $ 25.13 nterest $ 42.59 merest $ 42.60 county TIRZ payment $ 257,543.00 cityTIRZ payment $ 582,670.33 ISD TIRZ payment $ 512,646,62 merest $ 122.57 Interest $ 130.46 interest $ 102,74. interest $ 95.55 prior year increment adjustment $ 1891261.05 merest $ 51.37 interest $ 67.56 interest $ 65.46 Interest $ 65.46 interest $ 59.13 interest $ 65.47 merest $ 61.21 interest $ 66.05 city TIRZ payment $ 717,580.58 cityTIRZ payment $ 591,594.44 6/30/2011 Interest deposit (0.10%) interest $ 115.72 7/25/2011 Wire xfer City of La Porte county TIRZ payment $ 171,528.00 7/29/2011 Interest deposit (0.10%) interest $ 166.23 8/31/2011 Interest deposit (0.05%) interest $ 139.39 9/30/2011 Interest deposit (0.05%) interest $ 41.88 10/31/2011 Interest deposit (0.05%) interest $ 6.98 11/30/2011 Interest deposit (0.05%) interest $ 41.88 12/31/2011 Interest deposit (0.05%) interest $. 41.88 1/31/2012 Interest deposit (0.05%) interest $ 44.67 2/2912012 Interest deposit (0.05%) interest $ 40.04 3/30/2012 Interest deposit (0.05%) interest $ 41,32 4/30/2012 Interest deposit (0.05%) interest $ 42.46 5/24/2012 Wire xfer City of La Porte city TIRZ payment $ 591,728,53 5/24/2012 Wire xfer City of La Porte city TIRZ payment $ 483,366,12 5/31/2012 Interest deposit (0.05%) interest $ 54.15 6/25/2012 Wire xfer City of La Porte county TIRZ payment $ 215,582:00 6/29/2012 Interest deposit (0,05%) interest $ 83.82 7/31/2012 Interest deposit interest $ 100.32 8/31/2012 Interest deposit interest $ 92.56 9/28/2012 Interest deposit interest $ 45.36 10/31/2012 Interest deposit interest $ 53.24 11/30/2012 Interest deposit interest $ 48.37 12/31/2012 Interest deposit interest $ 49.99 1/31/2013 Interest deposit interest $ 49.99 2/28/2013 Interest deposit Interest $ 38.04 3/29/2013 Interest deposit interest $ 34.32 4/30/2013 Interest deposit interest $ 31.78 5/20/2013 Wire xfr City of La Porte city TIRZ payment $ 461,057,04 5/20/2013 Wire xfr City of La Porte taxes co $ 557,872,33 5/31/2013 Interest deposit interest $ 46.47 6/24/2013 Wire xfr City of La Porte Harris County $ 203,468.00 6/28/2013 Interest deposit interest $ 67,32 7/31/2013 Interest deposit interest $ 84,30 8/26/2013 Beazer Homes deposit annexation $ 25,000,00 8/30/2013 Interest deposit interest $ 37,96 9/30/2013 Interest deposit interest $ 39,64 10/31/2013 Interest deposit interest $ 39,29 11/29/2013 Interest deposit interest $ 36,75 12/31/2013 Interest deposit interest $ 40,56 1/31/2014 Interest deposit interest(0,05%) $ 39,26 2/28/2014 Interest deposit interest $ 34,88 3/31/2014 Interest deposit interest $ 37,87 4/30/2014 Interest deposit interest $ 36,65 5/31/2014 Interest deposit Interest $ 36,65 6/4/2014 Wire xfr City of La Porte Harris County2.013 $ 295,350.00 6/16/2014 Wire xfr City of La Porte 2013 tax $ 607,293,55 6/16/2014 Wire xfr City of La Porte Taxes co $ 795,626.84 6/30/2014 Interest deposit interest $ 68,76 7/31/2014 Interest deposit interest $ 78,41 8/29/2014 Interest deposit interest $ 32,65 9/30/2014 Interest deposit interest $ 29,03 10/31/2014 Interest deposit interest $ 28,12 11/28/2014 Interest deposit interest $ 25.40 12/31/2014 Interest deposit interest $ 29,68 Total, Revenues _. _ _ $ 7,724 $ 7,724,345.28.- 8/27/2010 #126 Hawes Hill Calderon LLP Inv 3642,3666 $ 5,640.07 4/27/2011 #127 Hawes Hill Calderon LLP Inv3766-3874 $ 17,686.39 8/22/20111 #128 Port Crossing Land LP developer reimbursement $ 1,205,754.00 8/18/2011 #129 Hawes Hill Calderon LLP Inv 3936,3937,3938,3954 $ 91763,04 2/6/2012 #130 Hawes Hill Calderon LLP Inv4064 $ 13,685,83 4/9/2012 #131 McCall Gibson Swedlund Barfoot PLLC interim billing -audit $ 4,000.00 4/9/2012 #132 Hawes Hill Calderon LLP Inv 4105 $ 3,926.83 8/23/2012 #133 Hawes Hill Calderon LLP Inv 4139, 4170, 4214, 426 $ 91835,85 8/29/2012 #134 Port Crossing Land LP developer reimbursement $ 1,0950875.46 9/26/2012 #135 McCall Gibson Swedlund Barfoot PLLC 2011 audit, final bill $ 21400,00 9/27/2012 #136 Hawes Hill Calderon LLP Inv 4241 $ 3,550.70 2/22/2013 #137 McCall Gibson Swedlund Barfoot PLLC 2012 audit Interim bill $ 4,500.00 2/8/2013 #138 Hawes Hill Calderon LLP inv43014333 $ 11,537,90 2/12/2013 #139 Harris County Treasurer InvAH002859 $ 166,594019 2/13/2013 #140 City of La Porte trunkline project $ 130,500.00 4/4/2013 #141 City of La Porte TIRZadmin fee 2013 $ 160,767.62 3/28/2013 #142 Hawes Hill Calderon LLP Inv.43014375 $ 31606,75 7/24/2013 #143 City of La Porte TIRZadminfee $ 53,577,57 7/29/2013 #144 Hawes Hill Calderon LLP Inv 4446, 4447) 4448, 4470 $ 91771,19 7/30/2013 #145 Port Crossing Land LP developer reimbursement $ 934,355.68 8/27/2013 #146 McCall Gibson Swedlund Barfoot, PLLC 2012E0yaudit--final $ 2,500.00 8/22/2013 #147 Hawes Hill Calderon LLP Inv43014490 and 43914485 $ 11,064,00 9/23/2013 #148 Hawes Hill Calderon LLP Inv4514, 4517 $ 11,126.68 1/22/2014 #149 Hawes Hill Calderon LLP Inv 4539,.4604,4605,4606 $ 10,140,03 2/24/2014 #150 McCall Gibson Swedlund Barfoot, PLLC audit, AUP $ 91750,00 2/21/2014 #151 Hawes Hill Calderon LLP Inv 43014626, 43014630 $ 13,636.00 6/18/2014 #152 Andrews Kurth Inv 10642473 $ 2,545.00 6/19/2014 #153 McCall Gibson Swedlund Barfoot PLLC AUP $ 31000,00 6/13/2014 #154 Hawes Hill Calderon LLP Inv 4694, 46951 47181 4719 $ 91610,08 6/16/2014 #155 Mallacii S. Reddy constructionadvw/int $ 232,500.00 6/18/2014 #157 Harris County Sylvan Beach project $ 130,500.00 6/11/2014 #158 VOID void $ - 6/23/2014 #159 City of La Porte trunkline project $ 130,500.00 7/1/2014 #156 Port Crossing Land LP constructionadvw/int $ 232,500.00 7/31/2014 #161 Retreat at Bay Forest AUP- reimbursement $ 50,000.00 7/24/2014 #163 Hawes Hill Calderon LLP Inv43014745 $ 3,611.61 8/5/2014 #160 Port Crossing Crossing Land LP 8/5/2014 #162 City of La Porte 8/29/2014 #164 Hawes Hill Calderon LLP 12/10/2014 #165 12/12/2014 #166 Hawes Hill Calderon LLP Total, Checks paid AUP- reimbursement $ 1,075,874.56 TIBZ admin fee $ 53,511,96 Inv 43014778 $ 3,915.71 VOID $ TIRZ admin fee $ 9,647.18 $ ,.7,071,522.76' Bank fees: 6/18/2010 Wire transfer service fee $ 8.00 6/22/2010 Wire transfer service fee $ 8.00 6/22/2010 Wire transfer service fee $ 8.00 10/20/2010 Wire transfer service fee $ 8.00 6/16/2011 Wire transfer service fee $ 10.00 6/16/2011 Wire transfer service fee $ 10.00 7/25/2011 Wire transfer service fee $ 10.00 10/24/2013 VOID Audit Fee service fee $ 35.00 Total,:Bankfees Checks outstanding $ - Total, Checks outstanding Checks submitted for approval $ - #167 McCall Gibson 5wedlund Barfoot PLLC end of year audit $ 5,500.00 #168 Hawes Hill Calderon LLP inv4918 $ 3,650.80 #169 Harris County Treasurer Inv AH002859 (Sylvan Beach) $ 250,000,00 Total, Checks submitted Total expenses Pledged Securities Report as of 1213112014 CUSIP Security Type Rate Maturity Original Face Markel Value Pledge Code: 23„26 Entry Nome: LAPORTE REDEVAUTH OPERATIONS Primary Bookkeeper. Rawer Hi11 Calderon, LLP Secondary Bookkeeper: 31349SZM4 FHLMCAWPOOL # 781637 Z356 5/1/2034 FDIC SG,533,000.00 S9I9,790.5/ 5150,000,00 $250,000.00 Total Ple ves: 2 54783,000.00 S1,1G9,790.8! Friday, January• 03.3075 PagelB oj81 McCALL GIBSON SWEDLUND BARFOOT PLLC Certified Public Accountants 13100 Wortham Center Drive Suite 235 111 Congress Avenue Houston, Texas 77065-5610 Suite 400 (713)462-0341 Austin, Texas 78701 Fax (713) 462-2708 (512) 610-2209 E-Mail: mgsb@mgsbpUc.com www.mgsbp!lc.com December 23, 2014 LaPorte Redevelopment Authority c/o Ms. Susan Hill Hawes Hill Calderon, L.L.P. 9610 Long Point Road, Suite 150 Houston TX 77055 Client Number — 537-00 Audit of the La Porte Redevelopment Authority as of and for the year ended September 30, 2014. Interim Billing: 5 500.00 Member of American Institute ofCer6fied Public Accountants Texas Society ofCer6fied Public Accountants Hawes Hill Calderon LLP P.O. Box 22167 Houston TX 77227-2167 Bill To: 'ITR2 -LaPorte # 1 604 W. Fairmont Pkwy. La Porte, TX 77571 Invoice #: 43014915 Date: 1/15/2015 Page: I Invoice DATE. DESCRIPTION AMOUNT 1 Project Management Services, January 2015 $2,000.00 1/21/2015 Board of Directors Meeting $12500.00 Reinbursable expenses as follows: In bouse copies & Binders 912 @.15 each & 14 sets @ $I.00 each $150480 - Sales Tax: $0.00 Total Amount: $3,650.80 Amount Applied: $0,00 Balance Due: $3,650.80 Terms: C.O.D. BARBARA, J. SCHOTT HARRIS COUNTY AUDITOR 1001 Preston, Suite 800 Houston, Texas 77002 (713) 755-1160 CITY OF LAPORTE ATTN CITY MANAGER 604 W FAIRMONT PKWY LA PORTE, TX 77571 (Please detach and mail this top potion wills pa}snent) REMIT PAYMENT TO: � Q�S CpGy Harris County measurer Orlando Sanchez k dr 1001 Preston,Room 652 Houston, Texas 77002 1CXAS Invoice tStatement No.: AH002859 INVOICE Customer No.: V00024712 RECEIVED DEC 18 2014 Amount Due: 427,758.14 CITYMANAGER'S Amount Paid: o26o,©oo,00 OFFICE 02/29/I2 SYLVAN BEACH SHORELINE NOTE 600,000.00 MATCH OF $600,000 OR NOTE RECEIVABLE TO CITY OF LA PORTE ON 11/24/2009. 02/29/12 .12./01./09-05/31/1.0x2NTEREST 12,750.00 02/29/12 06/01/10-11/30/10:INTEREST 13,020994 02/29/12 12/01/10-05/31/11:INTEREST 13,297.63 02/29/12, 06/01/11-11/30/11:INTEREST 13,580921 10/30/12 12/01/11-05/31/12: INTEREST 13,945.41 12/12/12 66/O1/12-11/30/I2:INTERE$T 14,165.13 02/12/13 Payment 166,594.19 07./19/13 ].2/01/12-02/12/1.3: INTEREST 5,834.41 07/19/13 02/13/13-05/31/13: INTEREST 6,532.31 12/01/13 06/01/13-11/30/2013: INTEREST 11,188.80 06/12/14 12/01/13-05/31/14: INTEREST 11,426.56 06/17/14 Payment-130,500400 12/15/14 06/01/14-06/17/2014:INTEREST 1,025.88 12/15/14 06/18/14-11/30/2014:INTEREST 8,085.05 The -above amount is for County services. Amounts are due upon receipt of the invgice. If you have any questions, contact Accounts Receivable at 713-755-1166..' i' itEi YIT PAF'lYIE1VT TO: lYARRfS COUNTY TREASURER prlanrloSanchez 1001 Preston, Roont 652 County Auditoes Ferri #58I Houston, Texas 77002 Hartis County, Texas (REV 3l07) Accessed: Note Receivable issued to Prime plus 1% City of L4 Porte on starting on 11/24/2009 12/01/2009 1 $600,000.00 4,25% 2 $6121750.00 425% 3 $625,770.94 4425% 4 $639,068,57 4,25% 5 $6$21648.78 4,25% 6 $666,594.19 425% 7 $69%759.32 4,25% i Start Date End Date Accrued L/01/09 5/31/2010 181 $12,750.00 06/01/10 11/30/2010 182 $131020,94 12/01/10 5/31/2011 181 $13,297.63 06/01/11 11/30/2011 182 $13,580.21 12/01/11 5/31/20I2 182 $13,945.41 06/01/12 11/30/2012 182 $14,165,13 12/01/12 2/I2/2013 73 $5AMAI Payment received Loan Balance 8 $519,999.54 425% 02/13/13 5/31/2013 107 $6,532.33 9 $526,531.86 4.25% 06/01/13 11/30/2013 182 $11,188.80 10 $537,720.66 4.25% 12/01/13 5/31/2014 181 $11,426.56 it $549,147,22 4.25% 06/01/14 6/17/2014 16 $1,025.88 12 $419,673.10 125% 06/18/14 11/30/2014 165 s8p5.05 ($130,500.00) 13 $427,758.15 4,25% 12/01/14 5/31/2015 181 $9,089486 $115,741.40 Description: Check issued 11/24/09, sleazed 12/04/09. Per Harris bounty Attorney, Douglas Ray, 12/01/09 is date used to start accruing interest of prime rate plus 1%. Per JT' Morgan Chase & CO, historical prime rate since 12/16/09, have been 3,25%, $612,750.00 $625,770,94 $639,068,57 $652,618.78 $666594.19 $680,759,32 $686,593,73 $519,999.54 $526,531,86 $537, '20,66 $549,14722 $550,173*10 $419,673.10 $427, 158,15 $436,848,01 NOTICE OF MEETING OF LA PORTE TAX INCREMENT REIN VESTMENT ZONE Notice is hereby given of the meeting of the La Porte Tax Increment Reinvestment Zone to be held Wednesday, January 21, 2015 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; 2. Consider approval of the minutes of Board of Directors meeting held on December 10, 2014; 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. Approve Report Applying Agreed -Upon Procedures to Construction, Engineering and Related Costs reimbursable to La Porte Crossing, LP; Approve Fiscal Year 2014 Annual Financial Report; 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. 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 'Gu.�40A)�z MINUTES OF THE MEETING OF THE LA PORTE TAX INCREMENT REINVESTMENT ZONE CITY OF LA PORTE, TEXAS BOARD OF DIRECTORS December 10, 2014 DETERMINE QUORUM; CALL TO ORDER. The Board of Directors of the La Porte Tax Increment Reinvestment one, City of La Porte, Texas, held a regular meeting, open to the public, on Wednesday, December 10, 2014, at 6:30 p.m., in the Council Chambers of 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, Secretary Position 1 Dave Turnquist Position 2 Alton Porter Position 3 Horace Leopard Position 4 Doug Martin, Vice Chair Position 5 JJ Meza Position 6 Lloyd Graham Position 7 Chester Pool Position 8 Lindsay Pfeiffer, Chair Position 9 and all of the above were present, with the exception of Directors Turnquist, Porter, Graham and Pfeiffer, thus constituting a quorum. Also present were David Hawes, Hawes Hill Calderon, LLP; Scott Livingston, La Porte EDC Director, Alan Mueller, Gromax Development, and Steven Robinson, Port Crossing. The meeting was called to order at 6:53 p.m. CONSIDER APPROVAL OF THE MINUTES OF BOARD OF DIRECTORS MEETING HELD AUGUST 27, 2014. Upon a motion duly made by Director Pool, and being seconded by Director Antone, the Board voted unanimously to approve the Minutes of the August 27, 2014, Board meeting, as presented. CONSENT AGENDA —ANY ITEM MAY BE REMOVED BY A BOARD MEMBER FOR DISCUSSION Entertain motion and second to approve the TIRZ items in the same form and manner as was approved in the previous Redevelopment Authority meeting a. Consider approval of landscaping bids for Bayside Crossing 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. Upon a motion duly made by Director Pool, and being seconded by Director Leopard, the Board voted unanimously to approve the TIRZ items in the same form and manner as was approved at the previous Redevelopment Authority Board meeting. ADJOURNMENT. There being no further business to core before the Board, the meeting adjourned at 6:54 p.m. Secretary