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HomeMy WebLinkAbout20230926 TIRZ 2 Meeting MinutesMINUTES OF THE BOARD OF DIRECTORS MEETING TAX INCREMENT REINVESTMENT ZONE NUMBER TWO / SHADOW CREEK RANCH CITY OF PEARLAND TEXAS SEPTEMBER 26, 2023 I 4:00 P.M. CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS I. CALL TO ORDER AND ROLL CALL Vice Chair King called the meeting to order at 4:00 p.m. and declared a quorum. Directors; City Staff and Consultants present were: Tommy King, representative of State Rep Ed Thompson board member/vice chair Kenneth Phillips, City of Pearland representative, board member/chair. Arrived 4:08 p.m. Buck Stevens, representative of Senator Larry Taylor, board member Christopher Williams, representative of City of Pearland/Alvin ISD, board member Clay Naiser, representative of Alvin ISD, board member Ali Hasanali, representative of Fort Bend County, board member/secretary Trent Epperson, City Manager, City of Pearland Lorenzo Wingate, Director of Public Works, City of Pearland Jameson Appel, Asst Director Capital Projects City of Pearland Amy Buckert Johnson, Chief Financial Officer, City of Pearland Kendra Murphy, Deputy Director of Finance, City of Pearland Brittany Keeswood/Assessments of the Southwest Everett Deao/LJA Alan Mueller, Sue Darcy, Jan Buehler with Marsh Darcy Partners administrators for the TIRZ II. PUBLIC COMMENTS There were no comments. III. PURPOSE OF THE MEETING: 1. Consideration and Possible Action - Regular Meeting Minutes of the October 26, 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 October 26, 2022 as presented was seconded by Director Hasanali, and passed unanimously. 2. Consideration and Possible Action - Financial Report for the period ending July 31, 2023 (unaudited). Ms. Buckert reviewed the Income Statement through 07/31/23, noting property taxes collected of $33,629,214.61. The Balance Sheet reported unaudited cash balances of $16,301,013.30 in the AISD Suspense Fund and $13,118,535.75 in the pooled cash fund. She reported that there were no accounts payable as of the 07/31/23 report with fund equity total of $29,419,549.05. A motion by Director Hasanali to approve the Financial Report as presented was seconded by Director Williams and passed unanimously. 3. Consideration and Possible Action — Investment Report for the Quarter Ending June 2023. Ms. Bucket reviewed the Investment Report noting second quarter interest earned of $122,134.64. A review of the breakdown of cash and money market showed a 6/30/2023 book value of $25,879,900.83. A review of the Pledged Collateral Reconciliation Report as of June 30, 2023 showed 148.6% total collateralized funds A motion by Director Stevens to accept the Investment Report as presented was seconded by Director Naiser and passed unanimously. Page 1 of 3 — 09/26/23 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 1-10 had been reviewed and approved by Mr. Phillips and Mr. King as the invoice review committee and had been paid. Items 11-13 had not been reviewed by the committee and were presented for approval for payment. Director Hasanali asked for clarification of invoice 11 of Marsh Darcy Partners as to the increased amount over the monthly average. Ms. Darcy stated that the additional amount was due to preparation of the annual board meeting. A motion by Director Hasanali to ratify invoices 1-10 and approve invoices 11-13 was seconded by Director Williams and passed unanimously. 5. Consideration and Possible Action _ 2022 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` 2022. A review of the table of values indicated the 2022 overall zone captured value of $3,435,293,644 noting an increase over 2021 of approximately $454 million, or 15 percent. He reported that the TIRZ budget was not amended in 2022 and remains current. Mr. Mueller reported that, since the three LFAs approved in 2022, there would be no new LFAs to be approved going forward. Mr. Mueller reported that cash reimbursements in the amount of $11.2 million bringing the total cash reimbursement to $119 million since the beginning of the zone. Director Hasanali asked for the timing of reimbursement of the budgeted amount for the FM 521 expansion project, to which Mr. Mueller advised that the county's completion of the project is pending and the LFA would be audited and placed in line for reimbursement after construction is complete. Mr. Mueller reviewed the list of LFAs that have been approved noting that the last reimbursed in 2022 was the fire station at $10,088,344. A motion by Director Hasanali to approve the 2022 Annual Report as presented was seconded by Director King and passed unanimously. 6. Consideration and Possible Action — Agreed Upon Procedures Reports (AUPs) for completed Letter Finance Agreements (LFAs) — LFA 19-10-002 (Library) and LFA 19-10-003 (Trails Phase 1). Mr. Mueller reviewed the LFA process and Mr. Deao described the procedures of LJA. Mr. Mueller described the AUP reporting conducted by McGrath noting that the final amount for LFA 19-10-002 for the library was less than the approved budget and the final amount for LFA 19-10- 003 for the trails was more than budgeted and, therefore, reimbursement for LFA 19-10-003 is capped at the approved budget amount. A motion by Director Stevens to accept the AUP for the combined LFAs as presented was seconded by Chair Phillips and passed unanimously. 7. Consideration and Possible Action — Recommendation to Development Authority of Pearland of Fiscal Year 2024 Developer Reimbursement Report. Mr. Mueller provided a description of the flow of increment funds from entities to the TIRZ fund and, based on interlocal agreements between the City and DAP, an annual August 15th calculation is made for funds available for transfer to the DAP for reimbursement. Based on the calculation prepared by City staff, he reported that the August 15, 2023 TIRZ fund balance was approximately $32.5 million and, after certain amounts held in reserve per the agreements, the amount to be transferred to the DAP is $23,364,807.67. He reported that, after the DAP fund reserves for debt service and other obligations, the surplus funds available to reimburse LFAs in FY2024 is $11,227,800.20. Per the McGrath AUP disbursement report, $4,207,700 is payable to the fire station LFA 19-10-001 and $7,020,100 is due to the library LFA 19-10-002. Chair Phillips requested clarification of the $1 million debt service reserve to which Mr. Mueller noted that the figures are unaudited. Director Hasanali asked when the $9 million suspense fund for AISD would Page 2 of 3 — 09/26/23 be factored in, to which Mr. Mueller advised it would be in the next year. No action was required. 8. Discussion Item — LFA and financial projection update. Mr. Mueller reviewed the 9/12/2023 Property Tax & TIRZ Participation Rates of the entities. He reviewed the Property Value Projections noting that the value of the zone in 2024 would be $3.9 billion. A review of the TIRZ increment flow with the transfer to the DAP increasing next year to $26 million, and thereafter lower reflecting the AISD tax rate. A review of the DAP cash flow projection indicates that an estimated $25.7 million of excess funds at the end of the life of the zone. A summary of the LFA reimbursement projections indicates all LFAs will be paid by 2029 and the participating entities will receive distributions from surplus funds at the end of the Zone. 9. Discussion Item — City of Pearland projects update. Mr.Appel presented an update of the most recent projects and their status. 10. Discussion Item — Comments by Mayor Cole, TIRZ Board members or TIRZ Consultants. Mr. Epperson expressed appreciation for the TIRZ board's support to bring major improvements to the community. IV. ADJOURN There being no further business, Director Hasanali moved to adjourn at 5:02pm, which was seconded by Director Stevens and passed unanimously. Kenneth R. Phil Chair, Board of 'rectors ATTEST: d of Directors Minutes approved as submitted and/or amended on £R. \ 0. 'Zp2_4 Page 3 of 3 — 09/26/23