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HomeMy WebLinkAbout01.09.2025 TIRZ agenda packet Agendas and Agenda Materials Meetings of the Boards of Directors La Porte Redevelopment Authority La Porte Tax Increment Reinvestment Zone January 9, 2025 *Persons with disabilities who plan to attend this meeting and would like to request auxiliary aids or services are requested to contact the Authority’s Administrator at (713) 595-1200 at least three business days prior to the meeting so that the appropriate arrangements can be made. Pursuant to V.T.C.A Government Code, Chapter 551, as amended, the Board of Directors may convene in closed session to receive advice from legal counsel and discuss matters relating to pending or contemplated litigation, personnel matters, gifts and donations, real estate transactions, the deployment, or specific occasions for the implementation of, security personnel or devices and or economic development negotiations. NOTICE OF JOINT MEETING OF LA PORTE REDEVELOPMENT AUTHORITY AND THE LA PORTE TAX INCREMENT REINVESTMENT ZONE NOTICE is hereby given of the joint meeting of the La Porte Redevelopment Authority and La Porte Tax Increment Reinvestment Zone to be held Thursday, January 9, 2025, at 6:00 p.m. in the City Council Chambers at City Hall, 604 West Fairmont Parkway, La Porte, Texas, open to the public, to consider, discuss, and adopt such orders, resolutions or motions, and take direct actions as may be necessary, convenient, or desirable, with respect to the following matters: AGENDA 1. Determine Quorum; and Call to Order. 2. Receive public comments. 3. Approve Minutes of the joint La Porte Redevelopment Authority and La Porte Tax Increment Reinvestment Zone meeting held on November 14, 2024. 4. Consider Agreement with McCall Gibson Swedlund Barfoot PLLC for Audit and AUP services. 5. Approve FY2024 Annual Financial Report and Audit from McCall Gibson Swedlund Barfoot PLLC. 6. Gauge Engineering: a. M Street Improvements: i. Consider Pay Application No. 9, M Street Improvements, from Carter Construction LLC. ii. Consider Pay Application No. 10, M Street Improvements, from Carter Construction LLC. b. Receive update on Lakes at Fairmont Green Detention. 7. Receive Bookkeeper’s Report and consider approval or other action regarding authority invoices. 8. Receive updates from the city, developers, and staff about development within the Zone. 9. Board member comments. a. Matters appearing on agenda; and b. Inquiry of staff regarding specific factual information or existing policy. 10. 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 the 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, Zone Administrator LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Zone Administrator SUBJECT: Agenda Item Materials LA PORTE REDEVELOPMENT AUTHORITY c/o Hawes Hill & Associates LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 3. Approve Minutes of the joint La Porte Redevelopment Authority and La Porte Tax Increment Reinvestment Zone meeting held on November 14, 2024. MINUTES OF THE JOINT MEETING OF THE LA PORTE REDEVELOPMENT AUTHORITY and LA PORTE TAX INCREMENT REINVESTMENT ZONE BOARD OF DIRECTORS November 14, 2024 DETERMINE QUORUM; CALL TO ORDER. The Board of Directors of the La Porte Redevelopment Authority, City of La Porte, Texas, and La Porte Tax Increment Reinvestment Zone, held a regular joint meeting, open to the public, on Thursday, November 14, 2024, 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: Position 1 Peggy Antone, Secretary Position 6 Mark Goodwin, Vice-Chairman Position 2 Barry Beasley Position 7 Mercy Estrada Position 3 Alton Porter Position 8 Vacant Position 4 Kent Remmel Position 9 Kristen Lee, Asst. Secretary Position 5 Nicole Havard and all of the above were present, with the exception of Directors Havard and Lee, thus constituting a quorum. Also present were Naina Magon and Linda Clayton, Hawes Hill & Associates, LLP; Matt Daeumer, and Sherry Rodriguez, City of La Porte; Muhammad Ali and Taylor Risien, Gauge Engineering; David Williams; and Gloria Brutscher. Vice-Chairman Goodwin called the meeting to order at 6:30 p.m. RECEIVE PUBLIC COMMENTS. There were no public comments. APPROVE MINUTES OF THE JOINT LA PORTE REDEVELOPMENT AUTHORITY AND LA PORTE TAX INCREMENT REINVESTMENT ZONE MEETING HELD ON OCTOBER 17, 2024. Upon a motion made by Director Beasley, and seconded by Director Estrada, the Board voted unanimously to approve the Minutes from the October 17, 2024, Board meeting, as presented. PRESENTATION ON FUNDING SOURCES AND TYPES OF PROJECTS EACH CAN FUND. Mr. Daeumer provided a presentation to the Board on City funding sources and types of projects each source can expend funds on. He provided information on the City’s budget process and allocation of funds. He reported the Tax Increment Reinvestment Zone (TIRZ) is a tool of the City. He reported the increment received by the TIRZ can be used for streets, drainage, sidewalks, water/sewer improvements and public parks within the defined areas of the zone boundaries. No action from the Board was required. APPROVE AMENDED PROJECT AND FINANCING PLAN. Ms. Magon reviewed the Fourth Amended Project Plan and Reinvestment Zone Financing Plan, included in the Board materials. She reported the proposed land to be annexed into the Zone consists of approximately 289.54 acres. She reported the Zone’s creation is a mechanism to fund expenditures associated with design, construction and financing of public improvements, and other specific project 2 | P a g e related costs. She reported the proposed land being annexed into the zone includes areas the Board has identified for potential capital improvement projects. She reported on page 4 is a table of estimated project costs. The Board reviewed a map depicting the proposed areas of annexation. Director Porter requested the annexation include additional extension of Main Street referred to as “Main Street Overlay District.” Director Porter made a motion to approve the Fourth Amended Project Plan and Reinvestment Zone Financing Plan, subject to adding the “Main Street Overlay District” as discussed. Director Beasley seconded the motion. Director Antone made a motion to amend the motion to remove G & H Street with the exception of the intersection at 16th Street. Director Estrada seconded the motion, including amending both motions to remove 16th Street from Barbours Cut to Highway 146. Director Remmel reported the improvements to 16th Street are needed for traffic and development. A vote was taken on the motion to approve the Fourth Amended Project Plan and Reinvestment Zone Financing Plan, subject to adding “Main Street Overlay District,” removing G & H Street with the exception of the intersection at 16th Street and removing 16th Street from Barbours Cut to Highway 146. Director Antone voted aye. Directors Porter, Remmel and Estrada voted nay. The motion did not pass. The Board voted on the original motion to approve the Fourth Amended Project Plan and Reinvestment Zone Financing Plan, subject to amending to include the annexation of include the Main Street Overlay District as discussed. The motion passed unanimously. RECEIVE UPDATES AND RECOMMENDATIONS FROM GAUGE ENGINEERING. a. M Street Improvements. i. Consider Pay Application No. 8, M Street Improvements, from Carter Construction LLC. Mr. Risien reported a substantial completion walk thru was conducted this morning with the City. He reported the contractor completed the striping today. He reviewed Pay Application No. 8, M Street Improvements, from Carter Construction LLC in the amount of $193,134.54. He reported he has reviewed the pay application and concurs with the amount and quantities and is recommending for approval. Upon a motion made by Director Remmel, and seconded by Director Estrada, the Board voted unanimously to approve Pay Application No. 8, M Street Improvements, from Carter Construction LLC in the amount of $193,134.54, as presented. b. Lakes at Fairmont Green Detention. Mr. Ali reported the survey was completed on October 14. He reported Gauge is evaluating the survey files and changes to the as-built plan set. No action from the Board was required. c. Feasibility Study; and prioritization of projects. Mr. Ali provided an overview of the Feasibility Study and projects. Ms. Magon reported the Feasibility Study and table for prioritization was sent to the Board Members for review and prioritization. She provided a review of the results of the project prioritization. She reported the following results for 3 | P a g e Capital Improvements: (1) 16th Street Intersection at Spencer Highway; (2) Main Street; (3) Boyett; (4) 16th Street – Alternate 2; and (5) G & H Street Improvements. She reported the following results for Trail/Parks: (1) Big Island Phase 1; (2) Bird Sanctuary; (3) Big Island Phase 2; and (4) W. Connector Trail. No action from the Board was required. RECEIVE BOOKKEEPER’S REPORT AND CONSIDER APPROVAL OR OTHER ACTION REGARDING AUTHORITY INVOICES. Ms. Magon presented the Bookkeeper’s Report and review of current invoices for payment. Upon a motion made by Director Beasley, and seconded by Director Remmel, the Board voted unanimously to accept the Bookkeeper’s Report and approved payment of invoices, as presented. RECEIVE UPDATES FROM THE CITY, DEVELOPERS, AND STAFF ABOUT DEVELOPMENT WITHIN THE ZONE. Mr. Daeumer reported he met with the stakeholders on Main Street and their concerns regarding losing a lane of traffic. He requested the stakeholders provide input. No action from the Board was required. BOARD MEMBER COMMENTS. a. Matters appearing on agenda; and b. Inquiry of staff regarding specific factual information or existing policy. None. ADJOURNMENT. There being no further business to come before the Board, Vice Chairman Goodwin adjourned the meeting at 7:40 p.m. __________________________________________________ LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Zone Administrator SUBJECT: Agenda Item Materials LA PORTE REDEVELOPMENT AUTHORITY c/o Hawes Hill & Associates LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 4. Consider Agreement with McCall Gibson Swedlund Barfoot PLLC for Audit and AUP services. McCALL GIBSON SWEDLUND BARFOOT PLLC Certified Public Accountants 13100 Wortham Center Drive PO Box 29584 Suite 235 Austin, TX 78755-5126 Houston, Texas 77065-5610 (512) 610-2209 (713) 462-0341 www.mgsbpllc.com Fax (713) 462-2708 E-Mail: mgsb@mgsbpllc.com Member of American Institute of Certified Public Accountants Texas Society of Certified Public Accountants December 9, 2024 Board of Directors La Porte Redevelopment Authority City of La Porte, Texas We are pleased to confirm our understanding of the annual audit services we are to provide La Porte Redevelopment Authority (the “Authority”). In addition to the annual audit services, we will also apply, as requested, the agreed-upon procedures described below related to costs submitted by the Authority’s developer(s) in which reimbursement has been requested. Audit Scope and Objectives We will audit the financial statements of the governmental activities, each major fund, and the disclosures, which collectively comprise the basic financial statements of the Authority as of and for the years ended September 30th. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the Authority’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (GASB) 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. As part of our engagement, we will apply certain limited procedures to the Authority’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding 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 will 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. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1) Management’s Discussion and Analysis, and 2) Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund We have also been engaged to report on supplementary information other than RSI that accompanies the Authority’s financial statements. The document we submit to you will include various supplementary schedules. This supplementary information will be subjected to the auditing procedures applied in our 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 and we will provide an opinion on it in relation to the financial statements as a whole except for that portion marked “unaudited”, on which we will express no opinion. Board of Directors December 9, 2024 La Porte Redevelopment Authority Page 2 Audit Scope and Objectives (Continued) The objectives of our audit are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; issue an auditor’s report that includes our opinion about whether your financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles (GAAP); and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards (GAAS) will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements. Auditor’s Responsibilities for the Audit of the Financial Statements We will conduct our audit in accordance with GAAS and will include tests of your accounting records and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the Authority or to acts by management or employees acting on behalf of the Authority. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material misstatements may not be detected by us, even though the audit is properly planned and performed in accordance with GAAS. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. If we determine it is necessary, we may request written representations from your attorneys as part of the engagement. As part of our audit planning, we have identified capital assets, long-term debt, management override of controls, and improper revenue recognition as audit areas with significant risks of material misstatement. We will design and perform audit procedures whose nature, timing and extent are responsive to the assessed risks of material misstatement. Our audit of the financial statements does not relieve you of your responsibilities. Board of Directors December 9, 2024 La Porte Redevelopment Authority Page 3 Audit Procedures – Internal Control We will obtain an understanding of the Authority and its environment, including internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control. An audit is not designed to provide assurance on internal control or to identify deficiencies in internal control. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards. Audit Procedures – Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatements, we will perform tests of the Authority’s compliance with the provisions of applicable laws, regulations, contracts, and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Other Services We will also prepare the financial statements and the appropriate capital asset schedules including calculation of depreciation on the capital assets in conformity with U.S. generally accepted accounting principles based on information provided by you. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. Responsibilities of Management for the Financial Statements Our audit will be conducted on the basis that you acknowledge and understand your responsibility for designing, implementing, and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including monitoring ongoing activities; for the selection and application of accounting principles; and for the preparation and fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. Management is responsible for making drafts of financial statements, all financial records, and related information available to us and for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) additional information that we may request for the purpose of the audit; and (3) unrestricted access to persons within the Authority from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about the financial statements and related matters. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole. Board of Directors December 9, 2024 La Porte Redevelopment Authority Page 4 Responsibilities of Management for the Financial Statements (Continued) You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the Authority involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the Authority received in communications from employees, former employees, consultants, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the Authority complies with applicable laws and regulations. With regard to using the auditor’s report, you understand that you must obtain our prior written consent to reproduce or use our report in bond offering official statements or other documents. You are responsible for the preparation of the supplementary information in conformity with the Commission’s requirements. You agree to include our report on the supplementary information in any document that contains, and indicates that we have reported on, the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Your responsibilities include acknowledging to us in the representation letter that (1) you are responsible for presentation of the supplementary information in accordance with the Commission’s requirements; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with the Commission’s requirements; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. You agree to assume all management responsibilities for our preparation of the financial statements and our preparation of the capital asset schedule, including calculation of depreciation on the capital assets; oversee the services by designating the bookkeeper, who has the suitable skill, knowledge, or experience; evaluate the adequacy and results of the services; and accept responsibility for them. Engagement Administration, Fees and Other We are aware of the State statute requiring the audit to be completed within 120 days and filed with the Texas Commission on Environmental Quality within 135 days from the closing date of the audit and barring any unforeseen circumstances every effort will be made to comply with this rule. We will also comply with the Rules of Professional Conduct of the Texas State Board of Public Accountancy and retain our records for five years. We expect to present a draft of the audit report within 45 days of the availability of the Authority’s accounting records. Joseph Ellis is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign the report. We will annually provide to the Board of Directors an audit continuance letter with an estimate of the fees for our audit services. For the audit for the fiscal year ended September 30, 2024, we anticipate the cost to complete the audit will range between $10,000 and $12,500. Board of Directors December 9, 2024 La Porte Redevelopment Authority Page 5 Engagement Administration, Fees and Other (Continued) The above fee is based on anticipated cooperation from your consultants and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. If circumstances occur related to the condition of your records, the availability of sufficient, appropriate audit evidence, or the existence of a significant risk of material misstatement of the financial statements caused by error, fraudulent financial reporting, or misappropriation of assets, which in our professional judgment prevent us from completing the audit or forming an opinion on the financial statements, we retain the right to take any course of action permitted by professional standards, including declining to express an opinion or issue a report, or withdrawing from the engagement. The Authority will be obligated to compensate us for our time expended through the date of withdrawal or termination. Reporting We will issue a written report upon completion of our audit of the Authority’s financial statements in accordance with AU-C 725, Supplementary Information in Relation to the Financial Statements as a Whole. Our report will be addressed to the Board of Directors of the Authority. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of- matter or other-matter paragraph to our auditor’s report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or withdraw from this engagement. AGREED-UPON PROCEDURES REIMBURSEMENT REPORT When requested, we will perform the procedures enumerated below, which are agreed to by the Board of Directors, on any invoices and schedules submitted by the Developer(s) for payment from Authority bond proceeds, bond anticipation note proceeds or any other source. These procedures will be performed solely to assist you in evaluating the reasonableness of those costs as required by the Texas Commission on Environmental Quality (the “Commission”) and the report is not to be used for any other purpose. Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we obtain your written agreement to the procedures to be applied and your acknowledgement that those procedures are appropriate for the intended purpose of the engagement, as described in this letter. The agreement and acknowledgment are contained with this letter. A refusal to provide such agreement and acknowledgment will result in our withdrawal from the engagement. We make no representation that the procedures we will perform are appropriate for the intended purpose of the engagement or for any other purpose. The procedures we will perform are as summarized below: A. We will inspect all correspondence from the Commission relative to any reimbursement request. Our inspection will be for the purpose of identifying those items authorized for Authority participation and those items the Authority is specifically prohibited from pur- chasing. B. We will inspect for completeness certain Developer schedules, supporting invoices and contract estimates in substantiation of the costs to be reimbursed. Our inspection will include all documentation supporting items, amounts, and proof of payment for which reimbursement is requested. Board of Directors December 9, 2024 La Porte Redevelopment Authority Page 6 C. We will read the development and financing agreements for particular items that might affect the reimbursement. The relevant agreements will be referenced in our report. D. We will foot the extensions of any engineering invoices pertaining to the reimbursement on a test basis and compare the contract amounts used in determining the fee for the design and construction phase portions of the invoice to the related construction contracts and to the engineering contract, when appropriate. E. For construction pay estimates, we will foot and test extensions of any individual items on a test basis on payments made on behalf of the Authority. F. For all payments, we will compare the payment dates to copies of cancelled checks. If cancelled checks are not available, alternate procedures will be designed to support dates and amounts of payments. G. We will review the formulas for computation of developer interest to be reimbursed to the Developer(s) and limit interest, if appropriate, in accordance with the orders and rules of the Commission. H. We will inquire of Authority’s bookkeeper regarding any current period General Fund expenditures for costs to be reimbursed to the General Fund from the Capital Projects Fund in accordance with the approval of the Commission. If necessary, we will review prior year audit work papers for items paid in the past, which can now be reimbursed. I. If possible, we will obtain verbal confirmation from construction contractors concerning whether or not the contract estimates to date have been paid in full and whether or not the contractor has any claims to be made against either the Authority or Developer on the project. J. A draft of our report will be provided to the Authority’s Attorney, Engineer, Financial Advisor, Bookkeeper, and Developer(s) prior to reimbursing the Developer(s). K. We will prepare for submittal to the Commission our report detailing the costs payable to the Developer(s) and a schedule reflecting the results of the payment and future costs to complete as compared with the amount approved by the Commission. The objective of this agreed-upon procedures engagement will be to assist you in evaluating the reasonableness of the aforementioned costs. Because the above agreed-upon procedures do not constitute an examination or review, we will not express an opinion or conclusion on the aforementioned reimbursable costs. In addition, we have no obligation to perform any procedures beyond those listed above. We will issue a written report upon completion of our engagement that lists the procedures performed and our findings. Our report will be addressed to the Board of Directors of the Authority. If, for any reason, we are unable to complete any of the procedures, we will describe in our report any restrictions on the performance any restrictions on the performance of the procedures, or not issue a report and withdraw from this engagement. You understand that the report is intended for the information and use of the Board of Directors of the Authority in compliance with certain rules of the Commission and should not be used by anyone other than these specified parties. We are aware that the report is subject to distribution under provisions of the Texas Public Information Act. Our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you. Board of Directors December 9, 2024 La Porte Redevelopment Authority Page 7 An agreed-upon procedures engagement is not designed to detect instances of fraud or noncompliance with laws or regulations; however, we will communicate to you any known and suspected fraud and noncompliance with laws or regulations affecting the aforementioned reimbursable costs that come to our attention. In addition, if, in connection with this engagement, matters come to our attention that contradict the aforementioned reimbursable costs, we will disclose those matters in our report. As the engaging party, the Board of Directors agrees to the procedures performed and acknowledges that they are appropriate to meet the intended purposes of this engagement. The Board of Directors will engage an engineer, the responsible party, to prepare and submit any bond application or surplus funds application to the Commission. The engineer is responsible for the aforementioned reimbursable costs and that they are in accordance with certain rules of the Commission; and for selecting the criteria and procedures and determining that such criteria and procedures are appropriate for your purposes. Together with the engineer, you are responsible for providing us with or causing to be provided (1) access to all information of which you are aware that is relevant to the performance of the agreed-upon procedures on the reimbursable costs, (2) additional information that we may request for the purpose of performing the agreed- upon procedures, and (3) unrestricted access to persons and Authority consultants from whom we determine it necessary to obtain evidence relating to performing those procedures. At the conclusion of our engagement, we will require certain written representations in the form of a representation letter from you. We will also request written representations from the engineer as the responsible party who prepared and submitted the bond or surplus funds application. Joseph Ellis is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. A portion of the cost of these procedures will be determined by the condition of the records submitted by the Developer(s) to be reimbursed. Upon determination that an agreed-upon procedures report will need to be prepared, we will provide an estimate of the cost of performing these procedures on your behalf. GENERAL TERMS AND CONDITIONS You may request that we perform additional services not contemplated by this engagement letter. If this occurs, we will communicate with you regarding the scope of the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. In the absence of any other written documentation from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter. The agreement may be terminated by either party, with or without cause, upon 30 days written notice. You agree that any dispute regarding this engagement will, prior to resorting to litigation, be submitted to mediation upon written request by either party. Both parties agree to try in good faith to settle the dispute in mediation. The American Arbitration Association will administer any such mediation in accordance with its Commercial Mediation Rules. The results of the mediation proceeding shall be binding only if each of us agrees to be bound. We will share any costs of mediation proceedings equally. Fossil Fuels Boycott Verification As required by 2276.002, Texas Government Code, as amended, McCall Gibson Swedlund Barfoot PLLC hereby verifies that McCall Gibson Swedlund Barfoot PLLC, including any wholly-owned subsidiary, majority- owned subsidiary, parent company or affiliate of the same, does not boycott energy companies, and will not boycott energy companies during the term of this Agreement. As used in the foregoing verification, “boycott energy companies” shall have the meaning assigned to the term “boycott energy company” in Section 809.001, Texas Government Code, as amended. Board of Directors December 9, 2024 La Porte Redevelopment Authority Page 8 Firearms Discrimination Verification As required by Section 2274.002, Texas Government Code, as amended, McCall Gibson Swedlund Barfoot PLLC hereby verifies that McCall Gibson Swedlund Barfoot PLLC, including any wholly-owned subsidiary, majority-owned subsidiary, parent company or affiliate of the same, (i) does not have a practice, policy, guidance or directive that discriminates against a firearm entity or firearm trade association, and (ii) will not discriminate against a firearm entity or firearm trade association during the term of this Agreement. As used in the foregoing verification, "discriminate against a firearm entity or trade association" shall have the meaning assigned to such term in Section 2274.001(3), Texas Government Code, as amended. Israel Boycott Verification As required by Chapter 2271, Texas Government Code, as amended, McCall Gibson Swedlund Barfoot PLLC hereby verifies that McCall Gibson Swedlund Barfoot PLLC, including any wholly-owned subsidiary, majority- owned subsidiary, parent company or affiliate of the same, does not boycott Israel and will not boycott Israel through the term of this Agreement. As used in the foregoing verification, the term "boycott Israel" has the meaning assigned to such term in Section 808.001, Texas Government Code, as amended. Anti-Terrorism Representation Pursuant to Chapter 2252, Texas Government Code, McCall Gibson Swedlund Barfoot PLLC represents and certifies that, at the time of execution of this letter neither McCall Gibson Swedlund Barfoot PLLC, nor any wholly-owned subsidiary, majority-owned subsidiary, parent company or affiliate of the same: (i) engages in business with Iran, Sudan, or any foreign terrorist organization pursuant to Subchapter F of Chapter 2252 of the Texas Government Code; or (ii) is a company listed by the Texas Comptroller pursuant to Section 2252.153 of the Texas Government Code. The term “foreign terrorist organization” has the meaning assigned to such term pursuant to Section 2252.151 of the Texas Government Code. We appreciate the confidence you have placed in our firm and we look forward to serving the Authority this coming year. Sincerely, McCall Gibson Swedlund Barfoot PLLC Certified Public Accountants Houston, Texas This letter correctly sets forth the understanding of the Authority. Signature Title Date Engagement Letter LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Zone Administrator SUBJECT: Agenda Item Materials LA PORTE REDEVELOPMENT AUTHORITY c/o Hawes Hill & Associates LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 5. Approve FY2024 Annual Financial Report and Audit from McCall Gibson Swedlund Barfoot PLLC. LA PORTE REDEVELOPMENT AUTHORITY CITY OF LA PORTE, TEXAS ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2024 McCALL GIBSON SWEDLUND BARFOOT ELLIS PLLC Certified Public Accountants T A B L E O F C O N T E N T S PAGE INDEPENDENT AUDITOR’S REPORT 1-2 MANAGEMENT’S DISCUSSION AND ANALYSIS 3-7 BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION AND GOVERNMENTAL FUND BALANCE SHEET 8 RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET TO THE STATEMENT OF NET POSITION 9 STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE 10 RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES 11 NOTES TO THE FINANCIAL STATEMENTS 12-21 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND 23 OTHER SUPPLEMENTARY INFORMATION BOARD MEMBERS AND ZONE ADMINISTRATOR 25 McCall Gibson Swedlund Barfoot Ellis PLLC Certified Public Accountants Chris Swedlund Mike M. McCall Noel W. Barfoot (retired) Joseph Ellis Debbie Gibson Ashlee Martin (retired) Houston | Austin | Dallas 13100 Wortham Center Drive, Suite 235, Houston, Texas 77065-5610 713-462-0341 INDEPENDENT AUDITOR’S REPORT Board of Directors La Porte Redevelopment Authority City of La Porte, Texas Opinions 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 La Porte, Texas, as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. 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, 2024 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. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently know information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. Board of Directors La Porte Redevelopment Authority - 2 - In performing an audit in accordance with generally accepted auditing standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design 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. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority’s basic financial statements. The other supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The supplementary 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 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic 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 basic financial statements as a whole. McCall Gibson Swedlund Barfoot Ellis PLLC Certified Public Accountants Houston, Texas January 9, 2025 LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 - 3 - 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, 2024. Please read it in conjunction with the Authority’s financial statements. FINANCIAL HIGHLIGHTS  The Authority’s assets exceeded its liabilities by $19,467,879 for the year ended September 30, 2024. This compares to the previous year, when assets exceeded liabilities by $14,262,214.  The total net position of $19,467,879 results primarily from the Authority having cash on hand in an amount greater than the amount recorded as Due to Developers for the facilities the Developers 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 Developers. The Authority’s obligations to the Developers 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 $24,563,466 this year. This compares to the prior year fund balance $20,796,563, showing an increase of $3,766,903 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 financial statements. The combined fund financial statements and government- wide financial statements combine both: (1) the Statement of Net Position and Governmental Fund Balance Sheet and (2) the Statement of Activities and Governmental Fund Statement of Revenues, Expenditures, and Change in Fund Balance. 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 financial statements provide 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. LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 - 4 - GOVERNMENT-WIDE FINANCIAL STATEMENTS (Continued) The Statement of Net Position 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 Statement of Activities 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 that have been segregated for specific activities or objectives. The Authority has one governmental fund type. The General Fund accounts for resources not accounted for in another fund, tax increment revenues, costs and general expenditures. Governmental funds are reported in each of the financial statements. The focus in the fund statements provides a distinctive view of the Authority’s governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of the Authority and the commitment of spendable resources for the near- term. Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of short-term financing decisions. The adjustments columns, the Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position and the Reconciliation of the Governmental Fund Statement of Revenues, Expenditures and Change in Fund Balance to the Statement of Activities explain the differences between the two presentations and assist in understanding the differences between these two perspectives. LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 - 5 - 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. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as useful indicator of the Authority’s financial position. In the case of the Authority, assets exceeded liabilities by $19,467,879 as of September 30, 2024. The following table provides a summary of the Authority’s net position as of September 30, 2024, and September 30, 2023: Change Positive 2024 2023 (Negative) Current and Other Assets 25,167,017$ 20,828,188$ 4,338,829$ Current Liabilities 603,551$ 31,625$ (571,926)$ Due to Developer 5,095,587 6,534,349 1,438,762 Total Liabilities 5,699,138$ 6,565,974$ 866,836$ Net Position: Unrestricted 19,467,879$ 14,262,214$ 5,205,665$ Total Net Position 19,467,879$ 14,262,214$ 5,205,665$ Summary of Changes in the Statement of Net Position LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 - 6 - GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) The following table provides a summary of the Authority’s operations for the fiscal years ending September 30, 2024, and September 30, 2023: Change Positive 2024 2023 (Negative) Revenues: Tax Increment Revenues 7,593,320$ 6,647,845$ 945,475$ Interest Revenues 1,058,433 744,773 313,660 Miscellaneous Revenues 2,000 2,000 Total Revenues 8,653,753$ 7,392,618$ 1,261,135$ Expenses for Services 3,448,088 366,479 (3,081,609) Change in Net Position 5,205,665$ 7,026,139$ (1,820,474)$ Net Position, Beginning of Year 14,262,214 7,236,075 7,026,139 Net Position, End of Year 19,467,879$ 14,262,214$ 5,205,665$ Summary of Changes in the Statement of Activities FINANCIAL ANALYSIS OF THE AUTHORITY’S GOVERNMENTAL FUNDS The Authority’s fund balance as of September 30, 2024, was $24,563,466, an increase of $3,766,903 from the prior year. The General Fund fund balance increased by $3,766,903 due to tax increment revenue being more than operating costs, capital outlay and certain costs to fund the Authority’s debt obligations. LA PORTE REDEVELOPMENT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 - 7 - GENERAL FUND BUDGETARY HIGHLIGHTS The Board of Directors did not amend the budget for the fiscal year ending September 30, 2024. Actual revenues were $245,906 more than budgeted and actual expenditures were $1,082,392 less than budgeted. See the budget to actual comparison. 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, $1,501,099 was paid to the Developers for projects, including interest, and none was added. See Note 4 for additional information. LONG-TERM DEBT ACTIVITY As of September 30, 2024, the Authority had no bond debt payable. The Authority has recorded a long-term payable to Developers in the amount of $5,095,587. See Note 4. CONTACTING THE AUTHORITY’S MANAGEMENT This financial report is designed to provide a general overview of the Authority’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to La Porte Redevelopment Authority, c/o David Hawes, P. O. Box 22167, Houston, TX 77227. The accompanying notes to the financial statements are an integral part of this report. - 8 - LA PORTE REDEVELOPMENT AUTHORITY STATEMENT OF NET POSITION AND GOVERNMENTAL FUND BALANCE SHEET SEPTEMBER 30, 2024 Statement of General Fund Adjustments Net Position ASSETS Cash 25,167,017$ $ 25,167,017$ TOTAL ASSETS 25,167,017$ - 0 - $ 25,167,017$ LIABILITIES Accounts Payable 603,551$ 603,551$ Due to Developer 5,095,587 5,095,587 TOTAL LIABILITIES 603,551$ 5,095,587$ 5,699,138$ FUND BALANCE Unassigned 24,563,466$ (24,563,466)$ $ TOTAL FUND BALANCE 24,563,466$ (24,563,466)$ - 0 - $ TOTAL LIABILITIES AND FUND BALANCE 25,167,017$ NET POSITION Unrestricted 19,467,879$ 19,467,879$ TOTAL NET POSITION 19,467,879$ 19,467,879$ The accompanying notes to the financial statements are an integral part of this report. - 9 - LA PORTE REDEVELOPMENT AUTHORITY RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2024 Total Fund Balance – Governmental Fund $ 24,563,466 Amounts reported for governmental activities in the Statement of Net Position are different because: 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. (5,095,587) Total Net Position – Governmental Activities $ 19,467,879 The accompanying notes to the financial statements are an integral part of this report. - 10 - LA PORTE REDEVELOPMENT AUTHORITY STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 2024 GENERAL STATEMENT OF FUND ADJUSTMENTS ACITIVITIES REVENUES Tax Increment Revenue 7,593,320$ $ 7,593,320$ Interest Revenues 1,058,433 1,058,433 Miscellaneous Revenues 2,000 2,000 TOTAL REVENUES 8,653,753$ - 0 - $ 8,653,753$ EXPENDITURES/EXPENSES Service Operations: Professional Services 70,943$ $ 70,943$ LaPorte ISD Payment 448,240 448,240 Other 1,989 1,989 City Administration Fee 125,564 125,564 Capital Improvements 2,739,015 2,739,015 Debt Service: Developer Interest, Note 4 28,364 33,973 62,337 Developer Principal, Note 4 1,472,735 (1,472,735) TOTAL EXPENDITURES/EXPENSES 4,886,850$ (1,438,762)$ 3,448,088$ NET CHANGE IN FUND BALANCE 3,766,903$ (3,766,903)$ CHANGE IN NET POSITION 5,205,665 5,205,665 FUND BALANCE/NET POSITION - OCTOBER 1, 2023 20,796,563 (6,534,349) 14,262,214 FUND BALANCE/NET POSITION - SEPTEMBER 30, 2024 24,563,466$ (5,095,587)$ 19,467,879$ The accompanying notes to the financial statements are an integral part of this report. - 11 - LA PORTE REDEVELOPMENT AUTHORITY RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2024 Net Change in Fund Balance – Governmental Fund $ 3,766,903 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report additional Developer principal due as increases. However, in the Statement of Net Position, change in principal is reported as an increase in liabilities, and the Statement of Activities is not affected. 1,472,735 In the Statement of Activities, the cost of interest expense is adjusted to the amount of the current period accrued expense. (33,973) Change in Net Position – Governmental Activities $ 5,205,665 LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2024 - 12 - NOTE 1. CREATION OF CORPORATION The City of La Porte, Texas (the “City”) authorized the creation of the La Porte Redevelopment Authority (the “Authority”) by the Resolution No. 2000-19 passed on December 11, 2000. The Authority was created and organized as a local government corporation pursuant to provisions of Chapter 394 of the Texas Local Government Code. The Authority is organized as a public non- profit corporation for the purpose of aiding, assisting, and acting on behalf of the City in the performance of its governmental function to promote the common good and general welfare of the Tax Increment Reinvestment Zone (the “Zone”) and neighboring areas; to promote, develop, encourage and maintain housing, educational facilities, employment, commerce and economic development in the City. The Authority receives incremental tax revenues on developed property. The Authority has participation agreements with the City of La Porte, La Porte Independent School District and Harris County to receive certain property tax increments. The Authority may issue bonds with consent of City Council. The Authority is managed by a Board of Directors consisting of nine members who are appointed by the Mayor with the approval of City Council. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES The accompanying 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”). 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 (“GASB Codification”). 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 classification of net position into three components: Net Investment in Capital Assets; Restricted; and Unrestricted. These classifications are defined as follows: LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2024 - 13 - 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 Capital Assets. 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 Position and the Statement 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 Position 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 Position. 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 financial statements. The fund financial statements include a Balance Sheet and Statement of Revenues, Expenditures and Change in Fund Balance. LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2024 - 14 - 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. Budgeting In compliance with the governmental accounting principles, the Authority’s board members should annually adopt an unappropriated budget for the General Fund. The budget was not amended during the current fiscal year. 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 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. LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2024 - 15 - 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. The Authority 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. LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2024 - 16 - 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 $25,307,854 and the bank balance was $25,167,017. The Authority was not exposed to custodial credit risk as of September 30, 2024. The carrying values of the deposits are included in the Governmental Fund Balance Sheet and the Statement of Net Position at September 30, 2024, as listed below: GENERAL FUND $ 25,167,017 LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2024 - 17 - 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 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 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, 2024, the Authority held no investments. LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2024 - 18 - 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 (Fully Reimbursed); Retreat at Bay Forest, LP (Fully Reimbursed), Beazer Homes Texas LP, Senior Associates, 65 La Porte, Ltd., Jabez-LB1, L.L.C. and Hawthorne at La Porte, LLC. Beazer Homes Texas LP’s reimbursable expenditures for Bayside Crossing totaled $1,449,517 including interest at August 24, 2016. During the current fiscal year, no interest was calculated in accordance with the agreement limitations. $137,837 was applied to principal. The amount due Beazer Homes Texas LP as of September 30, 2024, is calculated as follows: Principal Interest Total Due Balance Due Developer 9/30/22 1,055,860$ -$ 1,055,860$ No more interest will accrue - - Fiscal Year 2023 Payment (129,056) - (129,056) Balance Due Developer 9/30/23 926,804$ -$ 926,804$ No more interest will accrue - - Fiscal Year 2024 Payment (137,837) - (137,837) Balance Due Developer 9/30/24 788,967$ -$ 788,967$ Beazer Homes Texas LP’s reimbursable expenditures for Bayside Crossing - Supplemental totaled $177,498, including interest at August 23, 2017. During the current fiscal year, no interest was calculated in accordance with the agreement limitations. The amount due Beazer Homes Texas LP as of September 30, 2024, is calculated as follows: Principal Interest Total Due Balance Due Developer 9/30/22 160,656$ 37,348$ 198,004$ No more interest will accrue - -$ Balance Due Developer 9/30/23 160,656$ 37,348$ 198,004$ No more interest will accrue - -$ Balance Due Developer 9/30/24 160,656$ 37,348$ 198,004$ LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2024 - 19 - NOTE 4. DUE TO DEVELOPERS (Continued) Senior Associates’ reimbursable expenditures and land for Bayside Crossing totaled $466,032 including interest at August 24, 2016. During the current fiscal year, no interest was calculated in accordance with the agreement limitations, and $11,773 was paid. The amount due Senior Associates as of September 30, 2024, is calculated as follows: Principal Interest Total Due Balance Due Developer 9/30/22 455,823$ 46$ 455,869$ No more interest will accrue -$ -$ -$ Fiscal Year 2023 Payment (9,735) (46) (9,781) Balance Due Developer 9/30/23 446,088$ -$ 446,088$ Fiscal Year 2024 Payment (11,773) - (11,773) Balance Due Developer 9/30/24 424,580$ -$ 434,315$ 65 La Porte, Ltd. (Lakes of Fairmont Greens) had reimbursable expenditures approved of $4,293,060 on April 15, 2020. No interest will accrue because present value was used. Payments during the current fiscal year total $320,786. The amount due to 65 La Porte, Ltd. as of September 30, 2024, is calculated as follows: Principal Interest Total Due Balance Due Developer 9/30/22 2,473,047$ -$ 2,473,047$ Fiscal Year 2023 Payment (149,184) (149,184) Fiscal Year 2023 Payment ISD (156,622) (156,622) Balance Due Developer 9/30/22 2,167,241$ -$ 2,167,241$ Fiscal Year 2024 Payment (172,734) (172,734) Fiscal Year 2024 Payment ISD (148,052) (148,052) Balance Due Developer 9/30/24 1,846,455$ -$ 1,846,455$ Jabez-LB1, L.L.C. had reimbursable expenditures for Artesia Village approved of $1,778,635, including interest through May 18, 2022. During the current fiscal year, additional interest through September 30 was calculated at $15,644, a reimbursement of $15,861 was applied to interest, and $256,063 was applied to principal. The amount due to Jabez-LB1, L.L.C. as of September 30, 2024, is calculated as follows: LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2024 - 20 - NOTE 4. DUE TO DEVELOPERS (Continued) Principal Interest Total Due Balance Due Developer 9/30/22 1,737,906$ 1,476$ 1,739,382$ Fiscal Year 2023 Interest 17,246 17,246 Fiscal Year 2023 Payment (63,346) (17,379) (80,725) Fiscal Year 2023 Payment ISD (92,776) (92,776) Balance Due Developer 9/30/23 1,581,784$ 1,343$ 1,583,127$ Fiscal Year 2024 Interest 15,644 15,644 Fiscal Year 2024 Payment (120,052) (15,861) (135,913) Fiscal Year 2024 Payment ISD (136,011) (136,011) Balance Due Developer 9/30/24 1,325,721$ 1,126$ 1,326,847$ Hawthorne at La Porte, LLC had reimbursable expenditures approved of $1,953,245, including interest through January 19, 2022. During the current fiscal year, additional interest through September 30 was calculated at $11,869, a reimbursement of $12,503 was applied to interest, and $746,276 was applied to principal. The amount due to Hawthorne at La Porte, LLC as of September 30, 2024, is calculated as follows: Principal Interest Total Due Balance Due Developer 9/30/22 1,805,233$ 2,078$ 1,807,311$ Fiscal Year 2023 Interest 17,578 17,578 Fiscal Year 2023 Payment (242,330) (18,597) (260,927) Fiscal Year 2023 Payment ISD (316,053) (316,053) Balance Due Developer 9/30/23 1,246,850$ 1,059$ 1,247,909$ Fiscal Year 2024 Interest 11,869 11,869 Fiscal Year 2024 Payment (330,639) (12,503) (343,142) Fiscal Year 2024 Payment ISD (415,637) (415,637) Balance Due Developer 9/30/24 500,574$ 425$ 500,999$ In addition, certain Developers have signed a Development Agreement but have not submitted costs for reimbursement of their projects. Estimated costs, based on the agreement, are as follows: Stonemarc at Bay Creek LLC $1,456,000 Agreement approved on January 19, 2022 Bayway Homes, Inc. $681,904 Agreement approved on November 28, 2022 Under the agreements, the amount shown is not a payable debt if the tracts do not generate tax increment sufficient to pay the accrued amount. LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2024 - 21 - 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 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 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 $2,511,285 were recorded from the City of La Porte, and $3,832,668 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 $1,249,367 were collected from the County. LA PORTE REDEVELOPMENT AUTHORITY REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2024 See accompanying independent auditor’s report. - 23 - LA PORTE REDEVELOPMENT AUTHORITY SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 General Fund Original Variance and Final Positive Budget Actual (Negative) REVENUES Tax Increment Revenue 8,397,847$ 7,593,320$ (804,527)$ Interest Income 10,000 1,058,433 1,048,433 Miscellaneous Revenues 2,000 2,000 TOTAL REVENUES 8,407,847$ 8,653,753$ 245,906$ EXPENDITURES Professional and Other Services 78,500$ 70,943$ 7,557$ Capital Improvements 4,230,977 4,240,114 (9,137) La Porte ISD Payment 1,535,321 448,240 1,087,081 City Administration 122,244 125,564 (3,320) Other 2,200 1,989 211 TOTAL EXPENDITURES 5,969,242$ 4,886,850$ 1,082,392$ NET CHANGE IN FUND BALANCE 2,438,605$ 3,766,903$ 1,328,298$ FUND BALANCE - OCTOBER 1, 2023 20,796,563 20,796,563 FUND BALANCE - SEPTEMBER 30, 2024 23,235,168$ 24,563,466$ 1,328,298$ LA PORTE REDEVELOPMENT AUTHORITY OTHER SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2024 See accompanying independent auditor’s report. - 25 - LA PORTE REDEVELOPMENT AUTHORITY BOARD MEMBERS AND ZONE ADMINISTRATOR SEPTEMBER 30, 2024 Authority Mailing Address - La Porte Redevelopment Authority c/o David Hawes P. O. Box 22167 Houston, TX 77227 Authority Telephone No. - (713) 595-1200 Position Board Members 1 Peggy Antone – Secretary/Treasurer 2 Barry Beasley 3 Alton Porter 4 Kent Remmel 5 Nicole Havard 6 Mark Goodwin – Vice Chairman 7 Mercy Estrada 8 David Janda – Chairman 9 Kristen Lee – Assistant Secretary Executive Director David Hawes LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Zone Administrator SUBJECT: Agenda Item Materials LA PORTE REDEVELOPMENT AUTHORITY c/o Hawes Hill & Associates LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 6. Gauge Engineering: a. M Street Improvements: i. Consider Pay Application No. 9, M Street Improvements, from Carter Construction LLC. ii. Consider Pay Application No. 10, M Street Improvements, from Carter Construction LLC. b. Receive update on Lakes at Fairmont Green Detention. PROGRESS REPORT DECEMBER 2024 LA PORTE REDEVELOPMENT AUTHORITY/TIRZ 1 11750 Katy Freeway, Suite 400 Houston, TX 77079 TASK ORDER #3: M STREET IMPROVEMENT PROJECT (CONSTRUCTION) (NEAR COMPLETION) Activities This Period: • TDLR inspection conducted. No Texas Accessibility Standard (TAS) violations. Activities In the Next Period: • Compile as-built plans and submit them to the City of La Porte. • Process final pay application and issue final reconciliation change order. TASK ORDER #4: LA PORTE REDEVELOPMENT AUTHORITY/TIRZ #1 FEASIBILITY STUDY (COMPLETE) Activities This Period: • N/A TASK ORDER #5: LAKES AT FAIRMONT GREENS DETENTION BASIN EVALUATION Activities This Period: • N/A Activities In the Next Period: • Present information found from the survey. • Await direction from the board on how to proceed with this project. 11750 Katy Freeway, Suite 400 • Houston, TX 77089 December 4, 2024 Mr. David Hawes, Administrator La Porte Redevelopment Authority (TIRZ #1) 9600 Long Point Road, Suite 200 Houston, Texas 77035 Reference: M Street Improvement Project Proj. No. 75-19 Carter Construction, LLC. Payment No. 09 Dear Mr. Hawes: Carter Construction, LLC has submitted estimate No. 09 in the amount of $146,175.48 for construction services rendered through November 30, 2024. Based on our review, Carter Construction has complied with all requirements stated in the estimate and we recommend payment of $146,175.48 to Carter Construction. The following billing information is to be used for payment: Carter Construction, LLC 7615 FM 3180 Baytown, TX 77523 If you have any questions or require additional information, please feel free to contact me at (832) 318-8800. Sincerely, Muhammad Ali, P.E. Principal Enclosures: Carter Construction Pay Est. No. 09 Estimate No. Cut off Date Estimate Date :240 :0 :240 257 :In Place :N/A Date 9 City of La Porte / La Porte Redevelopment Authority (TIRZ #1) Estimate and Certificate for Payment Unit Price Work11/30/24 12/04/24 Project Name : M Street Improvement Project Contractor Name :Carter Construction, LLC Address :7615 FM 3180, Baytown, TX 77523 Proj No.75-19 CONTRACT TIME IN CALENDAR DAYS Contract Date 1/25/2024 Original Contract Time : Start Date 3/18/2024 Approved Extensions : Current Contract Completion Date 11/13/2024 Total Contract Time : Days Used to Date : Percentage By Time 107.08%94.82%Days Remaining to Date : Date Insurance Exp. :1/24/2025 Drug Policy Due Date:N/A Schedule Update Received : CONTRACT AMOUNT TO DATE : 1-Original Contract Amount $2,491,925.00 2-Approved Change Orders No.Date Ext.Days Amount Total Approved Extentions 0 Total Change Orders to Date $0.00 3-Approved Work Change Directives No.Date Ext.Days Amount Total Pending Work Change Directives to Date $0.00 TOTAL CONTRACT AMOUNT (excludes WCDs)$2,491,925.00 A. EARNINGS TO DATE Current Month Billing $31,145.00 1-Work Completed to Date 94.82%Complete $2,362,899.59 2-Material Stored on Site $0.00 3-Material Stored in Place $0.00 4-Balance-Materials Accepted Not in Place $0.00 @ 85%$0.00 5-Work Change Directives - In Place $0.00 TOTAL EARNINGS TO DATE $2,362,899.59 B. DEDUCTIONS 1-Retainage 10%Of $2,362,899.59 $236,289.96 2-Retainage Release 5%Of $2,362,899.59 $(118,144.98) 3-Total Retainage $118,144.98 4-Liquidated Damages 0.00 Days @ $0.00 5-Assessments $0.00 6-Inspector Overtime Costs $0.00 TOTAL DEDUCTIONS $118,144.98 C. AMOUNT DUE THIS PERIOD 1-Total Earnings to Date $2,362,899.59 2-Total Deductions $118,144.98 3-Total Payments Due $2,244,754.61 4-Less Previous Payments $2,098,579.13 5-Restoration Adjustment $0.00 TOTAL AMOUNT DUE CONTRACTOR THIS DATE $146,175.48 BALANCE REMAINING $129,025.41 Prepared By 12/4/2024 Reviewed By 12/4/2024 Taylor Risien, P.E. Date Muhammad Ali, P.E. Approved By:12/12/2024 La Porte Redevelopment Authority Date 12/4/2024 12/4/2024 LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Zone Administrator SUBJECT: Agenda Item Materials LA PORTE REDEVELOPMENT AUTHORITY c/o Hawes Hill & Associates LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 7. Receive Bookkeeper’s Report and consider approval or other action regarding authority invoices. La Porte Redevelopment Authority Statement of Revenue & Expenditures - Actual vs. Budget December 2024 Dec 24 Budget Oct - Dec 24 YTD Budget Annual Budget Income 4000 · Tax Increments - County 107,237.00 107,237.00 321,711.00 321,711.00 1,286,848.00 4010 · Tax Increments - City 215,552.00 215,552.00 646,656.00 646,656.00 2,586,623.00 4020 · Tax Increments - ISD 328,971.00 328,971.00 986,913.00 986,913.00 3,947,649.00 4100 · Interest Income 73,118.21 58,333.00 231,013.03 174,999.00 700,000.00 Total Income 724,878.21 710,093.00 2,186,293.03 2,130,279.00 8,521,120.00 Expenses TIRZ M&O Expenses 6010 · Administration & Project Mgmt 4,000.00 4,000.00 12,000.00 12,000.00 48,000.00 6015 · Legal 0.00 2,083.00 8,382.00 6,249.00 25,000.00 6020 · Agreed Upon Procedures Report 0.00 917.00 0.00 2,751.00 11,000.00 6025 · Annual Audit 9,500.00 958.00 9,500.00 2,874.00 11,500.00 6040 · Operating Expenses 0.00 250.00 517.90 750.00 3,000.00 6045 · Bank Fees 216.80 183.00 651.00 549.00 2,200.00 6050 · Planning Services 0.00 2,500.00 25,000.00 7,500.00 30,000.00 Total TIRZ M&O Expenses 13,716.80 10,891.00 56,050.90 32,673.00 130,700.00 Transfers 6101 · City Administration 10,778.00 10,778.00 32,334.00 32,334.00 129,331.00 6110 · Educational Facilities 38,474.00 38,474.00 115,422.00 115,422.00 461,687.00 Total Transfers 49,252.00 49,252.00 147,756.00 147,756.00 591,018.00 Capital Improvement Projects 6131 · M Street Improvement Project 8,094.64 45,833.00 333,163.53 137,499.00 550,000.00 6132 · Feasibility Study 0.00 5,000.00 80,138.10 15,000.00 60,000.00 6133 · Lakes at Fairmont Greens 0.00 0.00 20,292.95 0.00 0.00 6134 · Infrastructure & Capital Proj.0.00 250,000.00 0.00 750,000.00 3,000,000.00 TIRZ Developer Reimbursements 6152 · Beazer Homes Texas LP 0.00 11,831.00 0.00 35,493.00 141,972.00 6153 · Senior Associates 0.00 1,010.00 0.00 3,030.00 12,126.00 6154 · Jabez-LB1 LLC 0.00 23,340.00 0.00 70,020.00 280,082.00 6155 · Hawthorne at La Porte 0.00 65,128.00 0.00 195,384.00 781,542.00 6161 · 92 Fairmont Lakes, Inc.0.00 27,036.00 0.00 81,108.00 324,429.00 Total TIRZ Developer Reimbursements 0.00 128,345.00 0.00 385,035.00 1,540,151.00 Total Capital Improvement Projects 8,094.64 429,178.00 433,594.58 1,287,534.00 5,150,151.00 Total Expenses 71,063.44 489,321.00 637,401.48 1,467,963.00 5,871,869.00 Net Income 653,814.77 220,772.00 1,548,891.55 662,316.00 2,649,251.00 Page 1 La Porte Redevelopment Authority Bank Registers As of January 9, 2025 Type Date Num Name Memo Amount Balance 1001 · Amegy Bank Operating 24,371,671.63 Deposit 12/19/2024 DEP Amegy Bank IntraFi Interest 292.74 24,371,964.37 Check 12/23/2024 DEBIT Amegy Bank November Acct Analysis Fee -216.80 24,371,747.57 Deposit 12/31/2024 DEP Amegy Bank December Interest 72,825.47 24,444,573.04 Bill Pmt -Check 01/09/2025 1046 Gauge Engineering Proj 1299-M Street-CPS, CMT, CM&I -8,094.64 24,436,478.40 Bill Pmt -Check 01/09/2025 1047 Hawes Hill & Associates LLP December 2024 Prof Consulting & Admin Fee -4,000.00 24,432,478.40 Bill Pmt -Check 01/09/2025 1048 McCall Gibson Swedlund Barfoot PLL 2024 Annual Audit-Interim Billing -9,500.00 24,422,978.40 Total 1001 · Amegy Bank Operating 51,306.77 24,422,978.40 TOTAL 51,306.77 24,422,978.40 Page 2 La Porte Redevelopment Authority Contract Status Report As of January 9, 2025 Invoice Amount Contract Date Invoice #Invoiced Balance J. Morales Inc. M Street Improvement Project - Engineering Services 2/20/2020 19704, 19772 42,000.00 4/20/2020 19820, 19853 24,000.00 12/14/2020 20053 12,000.00 5/11/2021 20212, 20264 8,400.00 9/10/2021 20431 1,096.00 7/6/2022 20934 2,400.00 89,896.00 Gauge Engineering, LLC M Street Improvement Project - Task Order No. 1 Miscellaneous Tasks & Bid Phase Original Contract Amount 15,450.00 9/29/2022 2027 (2,855.00) 12,595.00 (2,855.00) 12,595.00 Gauge Engineering, LLC M Street Improvement Project - Task Order No. 2 Design and Bid Phase Services Original Contract Amount 217,660.50 12/7/2022 2068 (7,908.20) 209,752.30 1/30/2023 2181 (39,981.24) 169,771.06 6/16/2023 2340, 2402, 2438 (90,711.96) 79,059.10 9/18/2023 2494, 2557, 2604 (45,841.33) 33,217.77 11/14/2023 2677 (15,273.54) 17,944.23 10/31/2023 2772 (18,044.23) (100.00) (217,760.50) (100.00) Gauge Engineering, LLC M Street Improvement Project - Task Order No. 3 Construction Phase, Materials Testing and Management & Inspection Services Original Contract Amount 398,725.00 12/15/2023 2843 (12,000.00) 386,725.00 2/16/2024 2961 (1,289.20) 385,435.80 4/2/2024 3078 (21,247.58) 364,188.22 5/1/2024 3158 (31,894.61) 332,293.61 6/5/2024 3260 (34,554.58) 297,739.03 7/2/2024 3332 (45,417.13) 252,321.90 7/31/2024 3397 (65,861.86) 186,460.04 8/31/2024 3478 (43,239.54) 143,220.50 9/30/2024 3557 (48,546.79) 94,673.71 10/31/2024 3638 (42,998.33) 51,675.38 11/30/2024 3719 (36,331.62) 15,343.76 12/31/2024 3798 (8,094.64) 7,249.12 Page 3 La Porte Redevelopment Authority Contract Status Report As of January 9, 2025 Invoice Amount Contract Date Invoice #Invoiced Balance (391,475.88) 7,249.12 Gauge Engineering, LLC M Street Improvement Project - Task Order No. 4 Feasibility Study Original Contract Amount 159,790.00 5/1/2024 3159 (1,147.25) 158,642.75 6/5/2024 3261 (17,066.75) 141,576.00 7/2/2024 3331 (15,035.63) 126,540.37 7/31/2024 3398 (12,535.93) 114,004.44 8/31/2024 3479 (9,443.29) 104,561.15 9/30/2024 3558 (24,423.05) 80,138.10 10/31/2024 3639 (80,138.10) - (159,790.00) - Gauge Engineering, LLC M Street Improvement Project - Task Order No. 5 Lakes at Fairmont Green Detention Basin Evaluation Original Contract Amount 11,400.00 7/2/2024 3330 (1,930.80) 9,469.20 7/31/2024 3399 (5,192.00) 4,277.20 8/31/2024 3480 (2,984.00) 1,293.20 ADD: Topo Survey/QAQC/Sub Mgmt 20,136.00 21,429.20 10/31/2024 3637 (9,174.40) 12,254.80 11/30/2024 3721 (11,118.55) 1,136.25 (10,263.75) 1,136.25 Carter Construction M Street Improvement Project - Construction Services Original Contract Amount 2,491,925.00 3/31/2024 Pay App #1 (81,710.00) 2,410,215.00 4/30/2024 Pay App #2 (849,184.30) 1,561,030.70 5/31/2024 Pay App #3 (501,782.50) 1,059,248.20 6/30/2024 Pay App #4 (225,060.00) 834,188.20 7/31/2024 Pay App #5 (9,048.00) 825,140.20 8/31/2024 Pay App #6 (112,004.85) 713,135.35 9/30/2024 Pay App #7 (338,371.00) 374,764.35 10/31/2024 Pay App #8 (214,593.94) 160,170.41 11/30/2024 Pay App #9 (31,145.00) 129,025.41 (2,362,899.59) 129,025.41 Total Remaining Contract Balances 149,905.78 Page 4 1BJEXJUI$IFDL 1BJEXJUI$IFDL 1BJEXJUI$IFDL LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Zone Administrator SUBJECT: Agenda Item Materials LA PORTE REDEVELOPMENT AUTHORITY c/o Hawes Hill & Associates LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 DECEMBER INVOICES - RATIFY La Porte Redevelopment Authority Statement of Revenue & Expenditures - Actual vs. Budget November 2024 Nov 24 Budget Oct - Nov 24 YTD Budget Annual Budget Income 4000 · Tax Increments - County 107,237.00 107,237.00 214,474.00 214,474.00 1,286,848.00 4010 · Tax Increments - City 215,552.00 215,552.00 431,104.00 431,104.00 2,586,623.00 4020 · Tax Increments - ISD 328,971.00 328,971.00 657,942.00 657,942.00 3,947,649.00 4100 · Interest Income 75,359.04 58,333.00 157,894.82 116,666.00 700,000.00 Total Income 727,119.04 710,093.00 1,461,414.82 1,420,186.00 8,521,120.00 Expenses TIRZ M&O Expenses 6010 · Administration & Project Mgmt 4,000.00 4,000.00 8,000.00 8,000.00 48,000.00 6015 · Legal 0.00 2,083.00 8,382.00 4,166.00 25,000.00 6020 · Agreed Upon Procedures Report 0.00 917.00 0.00 1,834.00 11,000.00 6025 · Annual Audit 0.00 958.00 0.00 1,916.00 11,500.00 6040 · Operating Expenses 292.45 250.00 517.90 500.00 3,000.00 6045 · Bank Fees 217.00 183.00 434.20 366.00 2,200.00 6050 · Planning Services 0.00 2,500.00 25,000.00 5,000.00 30,000.00 Total TIRZ M&O Expenses 4,509.45 10,891.00 42,334.10 21,782.00 130,700.00 Transfers 6101 · City Administration 10,778.00 10,778.00 21,556.00 21,556.00 129,331.00 6110 · Educational Facilities 38,474.00 38,474.00 76,948.00 76,948.00 461,687.00 Total Transfers 49,252.00 49,252.00 98,504.00 98,504.00 591,018.00 Capital Improvement Projects 6131 · M Street Improvement Project 67,476.62 45,833.00 325,068.89 91,666.00 550,000.00 6132 · Feasibility Study 0.00 5,000.00 80,138.10 10,000.00 60,000.00 6133 · Lakes at Fairmont Greens 11,118.55 0.00 20,292.95 0.00 0.00 6134 · Infrastructure & Capital Proj.0.00 250,000.00 0.00 500,000.00 3,000,000.00 TIRZ Developer Reimbursements 6152 · Beazer Homes Texas LP 0.00 11,831.00 0.00 23,662.00 141,972.00 6153 · Senior Associates 0.00 1,010.00 0.00 2,020.00 12,126.00 6154 · Jabez-LB1 LLC 0.00 23,340.00 0.00 46,680.00 280,082.00 6155 · Hawthorne at La Porte 0.00 65,128.00 0.00 130,256.00 781,542.00 6161 · 92 Fairmont Lakes, Inc.0.00 27,036.00 0.00 54,072.00 324,429.00 Total TIRZ Developer Reimbursements 0.00 128,345.00 0.00 256,690.00 1,540,151.00 Total Capital Improvement Projects 78,595.17 429,178.00 425,499.94 858,356.00 5,150,151.00 Total Expenses 132,356.62 489,321.00 566,338.04 978,642.00 5,871,869.00 Net Income 594,762.42 220,772.00 895,076.78 441,544.00 2,649,251.00 Page 1 La Porte Redevelopment Authority Bank Registers As of December 12, 2024 Type Date Num Name Memo Amount Balance 1001 · Amegy Bank Operating 24,504,426.45 Bill Pmt -Check 11/15/2024 1042 Blank Rome LLP Legal Services -9,978.76 24,494,447.69 Check 11/21/2024 DEBIT Amegy Bank October Acct Analysis Fee -217.00 24,494,230.69 Deposit 11/30/2024 DEP Amegy Bank November Interest 75,359.04 24,569,589.73 Bill Pmt -Check 12/12/2024 1043 Carter Construction, LLC Job #2323 - Payment Application #9 -146,175.48 24,423,414.25 Bill Pmt -Check 12/12/2024 1044 Gauge Engineering Professional Services -47,450.17 24,375,964.08 Bill Pmt -Check 12/12/2024 1045 Hawes Hill & Associates LLP Nov 2024 Prof Consulting & Admin Fee -4,292.45 24,371,671.63 Total 1001 · Amegy Bank Operating -132,754.82 24,371,671.63 TOTAL -132,754.82 24,371,671.63 Page 2 La Porte Redevelopment Authority Contract Status Report As of December 12, 2024 Invoice Amount Contract Date Invoice #Invoiced Balance J. Morales Inc. M Street Improvement Project - Engineering Services 2/20/2020 19704, 19772 42,000.00 4/20/2020 19820, 19853 24,000.00 12/14/2020 20053 12,000.00 5/11/2021 20212, 20264 8,400.00 9/10/2021 20431 1,096.00 7/6/2022 20934 2,400.00 89,896.00 Gauge Engineering, LLC M Street Improvement Project - Task Order No. 1 Miscellaneous Tasks & Bid Phase Original Contract Amount 15,450.00 9/29/2022 2027 (2,855.00) 12,595.00 (2,855.00) 12,595.00 Gauge Engineering, LLC M Street Improvement Project - Task Order No. 2 Design and Bid Phase Services Original Contract Amount 217,660.50 12/7/2022 2068 (7,908.20) 209,752.30 1/30/2023 2181 (39,981.24) 169,771.06 6/16/2023 2340, 2402, 2438 (90,711.96) 79,059.10 9/18/2023 2494, 2557, 2604 (45,841.33) 33,217.77 11/14/2023 2677 (15,273.54) 17,944.23 10/31/2023 2772 (18,044.23) (100.00) (217,760.50) (100.00) Gauge Engineering, LLC M Street Improvement Project - Task Order No. 3 Construction Phase, Materials Testing and Management & Inspection Services Original Contract Amount 398,725.00 12/15/2023 2843 (12,000.00) 386,725.00 2/16/2024 2961 (1,289.20) 385,435.80 4/2/2024 3078 (21,247.58) 364,188.22 5/1/2024 3158 (31,894.61) 332,293.61 6/5/2024 3260 (34,554.58) 297,739.03 7/2/2024 3332 (45,417.13) 252,321.90 Page 3 La Porte Redevelopment Authority Contract Status Report As of December 12, 2024 Invoice Amount Contract Date Invoice #Invoiced Balance 7/31/2024 3397 (65,861.86) 186,460.04 8/31/2024 3478 (43,239.54) 143,220.50 9/30/2024 3557 (48,546.79) 94,673.71 10/31/2024 3638 (42,998.33) 51,675.38 11/30/2024 3719 (36,331.62) 15,343.76 (383,381.24) 15,343.76 Gauge Engineering, LLC M Street Improvement Project - Task Order No. 4 Feasibility Study Original Contract Amount 159,790.00 5/1/2024 3159 (1,147.25) 158,642.75 6/5/2024 3261 (17,066.75) 141,576.00 7/2/2024 3331 (15,035.63) 126,540.37 7/31/2024 3398 (12,535.93) 114,004.44 8/31/2024 3479 (9,443.29) 104,561.15 9/30/2024 3558 (24,423.05) 80,138.10 10/31/2024 3639 (80,138.10) - (159,790.00) - Gauge Engineering, LLC M Street Improvement Project - Task Order No. 5 Lakes at Fairmont Green Detention Basin Evaluation Original Contract Amount 11,400.00 7/2/2024 3330 (1,930.80) 9,469.20 7/31/2024 3399 (5,192.00) 4,277.20 8/31/2024 3480 (2,984.00) 1,293.20 ADD: Topo Survey/QAQC/Sub Mgmt 20,136.00 21,429.20 10/31/2024 3637 (9,174.40) 12,254.80 11/30/2024 3721 (11,118.55) 1,136.25 (10,263.75) 1,136.25 Carter Construction M Street Improvement Project - Construction Services Original Contract Amount 2,491,925.00 3/31/2024 Pay App #1 (81,710.00) 2,410,215.00 4/30/2024 Pay App #2 (849,184.30) 1,561,030.70 5/31/2024 Pay App #3 (501,782.50) 1,059,248.20 6/30/2024 Pay App #4 (225,060.00) 834,188.20 7/31/2024 Pay App #5 (9,048.00) 825,140.20 8/31/2024 Pay App #6 (112,004.85) 713,135.35 9/30/2024 Pay App #7 (338,371.00) 374,764.35 10/31/2024 Pay App #8 (214,593.94) 160,170.41 11/30/2024 Pay App #9 (31,145.00) 129,025.41 (2,362,899.59) 129,025.41 Total Remaining Contract Balances 158,000.42 Page 4 Paid with Check #1043 Paid with Check #1043 Paid with Check #1043 Paid with Check #1044 Paid with Check #1044 Paid with Check #1045 Paid with Check #1045 Paid with Check #1045 Paid with Check #1045 Paid with Check #1045 LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Zone Administrator SUBJECT: Agenda Item Materials LA PORTE REDEVELOPMENT AUTHORITY c/o Hawes Hill & Associates LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 8. Receive updates from the city, developers, and staff about development within the Zone. LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AGENDA MEMORANDUM TO: La Porte Redevelopment Authority Board of Directors FROM: Zone Administrator SUBJECT: Agenda Item Materials LA PORTE REDEVELOPMENT AUTHORITY c/o Hawes Hill & Associates LLP P.O. Box 22167 Houston TX 77227-2167 713-595-1200 or FAX 281-888-6314 9. Board member comments. a. Matters appearing on agenda; and b. Inquiry of staff regarding specific factual information or existing policy.