RDAP 2022-01 2022-10-27
RESOLUTION NO. RDAP 2022-01
A RESOLUTION OF THE DEVELOPMENT AUTHORITY OF PEARLAND (DAP),
ACCEPTING THE 2021 ANNUAL FINANCIAL REPORT FOR THE FISCAL
YEAR ENDING SEPTEMBER 30, 2021.
BE IT RESOLVED BY DAP BOARD OF DIRECTORS:
Section 1. That the Development Authority of Pearland, TX hereby accepts the
Fiscal Year 2021 Annual Financial Report as prepared by the accounting firm of
BKD, LLP.
PASSED, APPROVED, AND ADOPTED this ____27th ________ day of
____October________. A.D 2022.
_________________________
DAP CHAIRMAN
ATTEST:
________________________
DAP SECRETARY
DocuSign Envelope ID: D6197D69-555E-43B6-B203-698A24A1B8DA
DEVELOPMENT AUTHORITY OF PEARLAND
City Of Pearland, Texas
Independent Accountant's Report on Application of
Agreed-Upon Procedures of Costs Reimbursable to
518 SCR, Ltd., and
KB Home Lone Star, Inc., from
$11,190,538 of Surplus Tax Increment Revenues
As of October 4, 2022
Draft
McGrath & Co., PLLC
Certified Public Accountants
2900 North Loop West,Suite 880
Houston,Texas 77092
713-493-2620
Independent Accountant's Report on Applying Agreed-Upon Procedures
Board of Directors
Development Authority of Pearland
City of Pearland, Texas
We have performed the procedures enumerated below on amounts reimbursable to 518 SCR,Ltd., and KB
Home Lone Star, Inc., (the "Developers") from $11,190,538 in surplus tax increment revenues. The
Development Authority of Pearland (the "Authority") is responsible for amounts reimbursable to the
Developers.
The Board of Directors of the Authority has agreed to and acknowledged that the procedures performed are
appropriate to meet the intended purpose of providing users with information on the distribution of surplus
tax increment revenues to the Developers for costs incurred on behalf of Tax Increment Zone No. 2 (the
TIRZ"). This report may not be suitable for any other purpose. The procedures performed may not address
all the items of interest to a user of this report and may not meet the needs of all users of this report and, as
such, users are responsible for determining whether the procedures performed are appropriate for their
purposes.
The procedures and any associated findings are as follows:
1. We allocated principal and interest available to be reimbursed to unreimbursed letter financing
agreements of the TIRZ based on the relevant letter financing agreements. The projects and amount
to be reimbursed have been selected by the Authority.
The current reimbursement from the available surplus tax increment revenue of$11,190,538 has
been allocated as follows:
Current Accrued Current
Entity LFA Principal Interest Reimbursement
518 SCR,Ltd. LFA 12-06-001 $ 1,041,708 $ 517,855 $ 1,559,563
518 SCR,Ltd. LFA 13-06-002 3,077,854 1,712,843 4,790,697
518 SCR,Ltd. LFA 14-06-001 1,082,895 534,115 1,617,010
KB Home Lone Star,Inc. LFA 14-06-002 2,245,677 977,591 3,223,268
$ 7,448,134 $ 3,742,404 $ 11,190,538
2. Documentation supporting items, amounts, and proof of payments for which reimbursement has
been requested has been inspected.
No exceptions were found as a result of this procedure.
1 Draft
Board of Directors
Development Authority of Pearland
City of Pearland, Texas
3. We recalculated interest on amounts reimbursable in accordance with the reimbursement
agreements and letter financing agreements.
Interest payable is presented in the attached Schedule A
4. A draft of this report with the attached schedule was provided to the Authority's personnel and
consultants review prior to issuing a final report.
5. The attached Schedule A summarizes amounts reimbursable to the Developers for the current
period,previous reimbursements made, and remaining unreimbursed letter financing agreements.
We were engaged by the Authority to perform this agreed-upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the American Institute of Certified
Public Accountants. We were not engaged to and did not conduct an examination or review engagement,
the objective of which would be the expression of an opinion or conclusion, respectively, on amounts
reimbursable to the Developers. Accordingly, we do not express such an opinion or conclusion. Had we
performed additional procedures, other matters might have come to our attention that would have been
reported to you.
We are required to be independent of the Authority and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the Authority, the TIRZ, and the Developers,
and is not intended to be and should not be used by anyone other than these specified parties.
Sincerely,
Houston, Texas
October 3, 2022
2 Draft
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