2022-10-26 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING MINUTESMINUTES OF THE BOARD OF DIRECTORS MEETING
TAX INCREMENT REINVESTMENT ZONE NUMBER TWO / SHADOW CREEK RANCH
CITY OF PEARLAND TEXAS
OCTOBER 26, 2022 j 4:00 P.M.
CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS
I. CALL TO ORDER AND ROLL CALL
Chair Philips called the meeting to order at 4:01 p.m. and declared a quorum.
Directors, City Staff and Consultants present were:
Henry Fuertes, City of Pearland representative board member
Tommy King, representative of State Rep Ed Thompson board member
Kenneth Philips, City of Pearland representative, board member/chair
Michael Slevens, City of Pearland representative board member
Buck Stevens, representative of Senator Larry Taylor board member
Gabe Garza, representative of Alvin ISD board member
Trent Epperson, Deputy City Manager, City of Pearland
Robert Upton, Director of Engineering, City of Pearland
Amy Bucked Johnson, Chief Financial Officer, City of Pearland
Christina Ordonez-Campos, Controller, City of Pearland
Tia Moore, Deputy City Secretary, City of Pearland
Melanie Lawson, Finance, City of Pearland
Shamaira Jagrup, Accounting Manager, City of Pearland
Suewan Johnson/ABHR attorney for the TIRZ
Suzanne Brann/KB Homes
Everett Deao/LJA
Alan Mueller, Sue Darcy, Jan Buehler with Marsh Darcy Partners administrators for the TIRZ
Hie PUBLIC COMMENTS
There were no comments.
BSI. PURPOSE OF THE MEETING:
1. Consideration and Possible Action = Regular Meeting Minutes of the March 2, 2022, Tax
Increment Reinvestment Zone Number 2 (TIRZ No. 2) Board of Directors Meeting.
A motion by Director Stevens to approve the Regular Meeting Minutes of March 2, 2022, as
presented was seconded by Director Fuertes, and passed unanimously.
2,, Consideration and Possible Action o Financial Report for the period ending July 31, 2022
(unaudited).
Ms. Ordonez-Campos reviewed the Balance Sheet through 07/31/22, noting unaudited cash
balances of approximately $7.18 million in the AISD Suspense Fund and approximately $5.59 million
in the pooled cash fund. She reported that there were no accounts payable as of the 07/31/22 report
with fund equity total of approximately $25.84 million, including approximately $6.02 million in pooled
investment accounts. Ms. Ordonez-Campos reviewed the Income Statement noting that property tax
receipts had gone down this year compared to the prior year. Director Fuertes asked for clarification
of the "Prior Year Total Actual Property Taxes TIRZ Supplemental" at $2.4 million prior year and $0
this year. Mr. Mueller stated that it is the supplemental payment from the Texas Education
Association due to Alvin's participation in the zone which is forthcoming, but which had not been
received as of the date of the report.
A motion by Director King to approve the Financial Report as presented was seconded by Chair
Phillips and passed unanimously.
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3. Consideration and Possible Action — Investment Report for the Quarter Ending June 2022.
Ms. Ordonez-Campos reviewed the Investment Report noting second quarter interest earned of
$18,883.26. A review of the breakdown of cash, money market and investment pool showed a
6/30/2022 book value of $22,667,336.62. A review of the Pledged Collateral Reconciliation Report
as of June 30, 2022 showed 165.7% total collateralized funds. Chair Phillips asked for an
explanation of the "Local Government Investment Pool" entry as of June 30. Ms. Jagrup reported
that the City is authorized by Council to participate in three local government investment pools and
advised that TIRZ funds of $6 million were transferred to Texas Class LGIP as it earns higher
interest rates similar to a money market account. Director Stevens asked for clarification of the
account entry of "Massey Oaks Easement Cost Escrow" to which Mr. Mueller advised that the entry
is not related to the TIRZ but is another account of the City's that is also covered by the pledged
collateral.
A motion by Director Fuertes to accept the Investment Report as presented was seconded by
Director Garza and passed unanimously.
4. Consideration and Possible Action — Ratification of invoices authorized for payment by the
Invoice Review Committee and approving invoices presented for payment.
Mr. Mueller reviewed the list of invoices noting that items 1-12 had been reviewed and approved by
Mr. Phillips and Mr. King as the invoice review committee and had been paid. Items 13-15,
reviewed by Mr. King only, would need to be approved for payment.
A motion by Chair Phillips to ratify invoices 1-12 and approve invoices 13-15 was seconded by
Director Fuertes and passed unanimously.
5. Consideration and Possible Action — 2021 Annual Report.
Mr. Mueller presented the report to highlight changes from the previous year and reminded that the
information is based on the calendar year 2021. A review of the table of values indicated the 2021
overall zone captured value of $2,981,426,059. He described the adjustments to the revenue report
to correct a previous overpayment to the City. He reviewed the list of LFAs approved for
reimbursement noting reimbursements paid through 2021.
A motion by Chair Phillips to approve the 2021 Annual Report as presented was seconded by
Director Fuertes and passed unanimously.
6. Consideration and Possible Action — Amendment to LFA 21-02-001 for revised project area.
Mr. Mueller presented an amendment to the 2021-approved LFA for sidewalk extensions to include
a change in the project scope map only. Mr. Upton provided details of the requested modification
noting the amendment does not increase the approved funding amount for the project.
A motion by Chair Phillips to accept the amendment to LFA 21-02-001 as presented was seconded
by Director Slevens and passed unanimously.
7. Discussion Item — Fiscal Year 2023 Development Authority of Pearland developer
reimbursements from available surplus increment.
Mr. Mueller reviewed the 8/15/2022 report of $21,224,675.47 transferred to the DAP with net
available for cash reimbursements in FY 2023 of $11,190,537.74. He reviewed the McGrath & Co
Independent Accountant's Report on Applying Agreed Upon Procedures which documents the
reimbursements due to 518 SCR, Ltd and KB Homes as of October 28, 2022, from the available
cash reimbursement amount. He noted that the funds would be released to 518 SCR, Ltd and KB
Homes after DAP approval.
8. Discussion Item — LFA and financial projection update.
Mr. Mueller presented a Property Value Projection spreadsheet and history of values for the City of
Pearland, Brazoria County, Fort Bend County and Alvin ISD. He also reviewed the DAP Cash Flow
Projection indicating an projected ending balance at the end of the zone of $15,165,194 after
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payment of all outstanding debt and reimbursement obligations. He reviewed the LFA
Reimbursement Projection Summary indicating three LFAs to be fully paid and one to be partially
paid in FY 2024. He noted, however, if the DAP and City Council elect to issue bonds later this
year, the reimbursement of those LFAs would be expedited. Ms. Johnson reported that the
preliminary amount of the bond issue is about $13.8 million.
9. Discussion Item — City of Pearland projects update.
Mr. Upton reviewed a visual presentation mapping each of the TIRZ projects and provided an
update of same to include: Pearland Library is complete and will be in line for 2024 reimbursement;
Fire Station #8 is complete and is up for reimbursement; Shadow Creek Regional Park Miracle Park
is open with ongoing installations. He provided updates to ongoing projects for trails, sidewalks,
intersections, and coordination with TxDOT. Mr. Upton stated that the summary total amount of
improvements is $69,108,250.
10. Discussion Item — Comments by Mayor Cole, TIRZ Board members or TIRZ Consultants.
There were no comments.
IV. ADJOURN
There being no further business, Director Fuertes moved to adjourn at 5:03pm, which was seconded
by Director King and passed unanimously.
APPROV
Kennetli"R.
Chair, Board irectors
ATTEST:
Board of Direct ► rs
Minutes approved as submitted and/or amended on Oct_�, .
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