HomeMy WebLinkAbout08/13/2020 - Regular Minutes - Rock Prairie Management District No. 2 (2)ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2
MINUTES OF MEETING OF BOARD OF DIRECTORS
August 13, 2020
The Board of Directors (the "Board") of Rock Prairie Management District No. 2 (the
"District") met in regular session, open to the public on August 13, 2020, in accordance with the
duly posted notice of meeting, and the roll was called of the duly constituted members of said
Board of Directors, as follows:
Uri Geva — President
Hays Glover — Vice President
William Lewis — Assistant Vice President
Jonathan Stark — Secretary
Mark Lindemulder — Assistant Secretary
and all of whom participated in the meeting via telephone conference call, thus constituting a
quorum.
Also attending the meeting via telephone conference call were James Murr of College
Station Town Center, Inc. ("CSTC"); Cynthia Colondres of Municipal Accounts & Consulting,
L.P. ("MAC"); Josh Campbell of EHRA Engineering ("EHRA"); Avik Bonnerjee of B&A
Municipal Tax Service, LLC ("B&A"); Misael Flores of Post Oak Municipal Advisors LLC
("POMA"); Katie Crowley of the City of College Station ("City"); and Christina Cole and Julie
Kime of Schwartz, Page & Harding, L.L.P. ("SPH").
The President called the meeting to order and declared same open for such business as
might properly come before it.
EXPLANATION OF TELEPHONE CONFERENCE CALL MEETING PROCEDURES AND
CALL TO ORDER
Ms. Cole explained to the Board the procedures to be used during the telephone conference
call meeting. In connection therewith, she informed the participants that the meeting would be
recorded, and requested that participants clearly state his or her name before speaking, including
when making or seconding a motion. Ms. Cole further explained that she would conduct a roll call
vote for all motions and that Board members should wait to vote on a motion until his or her name
has been called. Similarly, Ms. Cole stated that a full roll call of all participants would be
conducted at the start of each telephone conference meeting for attendance purposes.
The President called the meeting to order and declared it open for such business as might
regularly come before the Board.
PUBLIC COMMENTS
The Board began by opening the meeting for public comments. There being no members
of the public present, the Board continued to the next item of business.
APPROVAL OF MINUTES
As the first order of business, the Board considered approval of the minutes of its regular
meeting held on July 9, 2020. After review and discussion, Director Glover moved that the
minutes for said Board meeting be approved, as written. Director Stark seconded said motion,
which unanimously carried.
BOOKKEEPING REPORT
Ms. Colondres presented to and reviewed with the Board a Bookkeeping Report, a copy of
which report is attached hereto as Exhibit A, including checks presented for payment. Following
discussion, Director Glover moved that said Bookkeeping Report be approved and that the checks
identified in the report be approved for payment. Director Stark seconded the motion, which
unanimously carried.
TAX ASSESSOR/COLLECTOR'S REPORT
Mr. Bonnerjee then presented and reviewed with the Board the Tax Assessor -Collector
Report for the month ended July 31, 2020, including checks presented for payment. A copy of
such report is attached hereto as Exhibit B. After discussion, Director Glover moved that the Tax
Assessor -Collector Reports be approved and that the checks identified therein be approved for
payment. Director Stark seconded said motion, which unanimously carried.
DISCUSS IMPLEMENTATION OF S.B. 2 AND CONSIDER ADOPTION OF RESOLUTION
CONCERNING DEVELOPED DISTRICT STATUS FOR 2020 TAX YEAR
Ms. Cole next presented and reviewed with the Board a memorandum prepared by SPH
concerning the new tax rate adoption procedures for special districts under S.B. 2, a copy of which
is attached hereto as Exhibit C. Ms. Cole noted that the procedures applicable to a particular
district will depend, in part, upon whether it is determined to be a "Developed District" under
Texas Water Code Section 49.23602. Ms. Cole then reviewed with the Board a worksheet
completed by EHRA to assist the Board in making this determination, along with a Resolution
Concerning Developed District Status for the 2020 Tax Year. A copy of the Resolution is attached
hereto as Exhibit D. Following discussion, upon motion made by Director Glover, seconded by
Director Stark, and unanimously carried, the attached Resolution was adopted by the Board.
TAX RATE RECOMMENDATION
Ms. Cole then advised the Board that the District is authorized to levy a maintenance tax
on taxable property situated within the boundaries of the District at a rate not to exceed $1.00 per
$100 of assessed valuation. Mr. Flores then advised that POMA is recommending that the District
levy a 2020 maintenance tax rate of $0.50 per $100 of assessed valuation.
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563463
There next followed a discussion concerning the requirements for notice of the District's
intention to adopt a 2020 tax rate. Ms. Cole advised that, pursuant to Section 49.236 of the Texas
Water Code, the District is required to provide a notice containing certain tax -related information
in connection with each meeting at which the adoption of a tax rate will be considered. Ms. Cole
further advised that the information to be included in the notice is set forth in the Water Code and
includes the proposed tax rate to be adopted. She advised that the District must provide the notice
by either (1) publishing it at least once in a newspaper having general circulation in the District at
least seven days before the date of the meeting at which the tax rate will be adopted, or (2) mailing
it to each owner of taxable property in the District, at the address shown on the most recently
certified tax roll of the District, at least ten days before the date of the meeting. Following further
discussion, Director Glover moved that the Board (1) accept the financial advisor's
recommendation of a proposed 2020 maintenance tax rate of $0.50 per $100 of assessed valuation,
and (2) authorize the District's tax assessor -collector be authorized to publish notice of the
District's intention to adopt a 2020 tax rate at its next meeting in the form and at the time required
by law. Director Stark seconded said motion, which unanimously carried. The Board concurred
that the notice should be published by the tax assessor -collector in The Eagle newspaper.
ENGINEERING REPORT
Mr. Campbell presented and reviewed with the Board an Engineering Report dated
August 13, 2020, a copy of which is attached hereto as Exhibit E. Following presentation of the
Engineer's Report and discussion of the action items contained therein, Director Glover moved to
concur in the payment of the pay estimates and approval of change orders as set forth in the
Engineer's Report. Director Stark seconded the motion, which unanimously carried.
CONVEYANCE AND BILL OF SALE OF UTILITY FACILITIES
Ms. Cole then presented and reviewed with the Board a Conveyance and Bill of Sale of
Utility Facilities from College Station Town Center, Inc., relative to water, sanitary sewer and
drainage facilities to serve Midtown City Center Phase 601. Following review, Director Glover
moved that the Board accept such Conveyance and Bill of Sale of Utility Facilities and authorize
the President to execute same on behalf of the District. Director Stark seconded the motion, which
unanimously carried.
DEVELOPERS REPORT
The Board considered the Developer's Report. Mr. Murr presented a verbal report on the
status of development within the District.
STATUS OF INERLOCAL AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF
COLLEGE STATION
Ms. Cole advised that SPH has received a revised form of Interlocal Agreement from the
City, and that SPH will be reviewing same and providing comments to the City. No action was
taken by the Board at this time.
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563463
ATTORNEY' S REPORT
The Board considered the Attorney's Report. Ms. Cole advised the Board that she had
nothing of a legal nature to discuss with the Board that was not already covered under previous
agenda items.
FUTURE AGENDA ITEMS
The Board considered items for placement on future agendas. No specific agenda items,
other than routine and ongoing matters were requested to be placed on a future agenda.
Ms. Cole advised the Board that the Governor has extended the proclamation related to the
COVID-19 pandemic which provides for the temporary suspension of certain provisions of the
Texas Government Code, Section 551.125, as amended, concerning the conduct of public
meetings. Ms. Cole stated that under these circumstances, the Board's September 10, 2020 meeting
will be conducted via telephone conference, unless there is a change that would prohibit same.
ADJOURNMENT
There being no further business to come before the Board, on motion made by Director
Glover, seconded by Director Stark, and unanimously carried, the meeting was adjourned.
SeWtary
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LIST OF ATTACHMENTS
Rock Prairie Management District No. 2
Minutes of Meeting of August 13, 2020
Exhibit A Bookkeeping Report
Exhibit B Tax Assessor -Collector Reports
Exhibit C Memorandum Regarding Implementation of S.B. 2
Exhibit D Resolution Concerning Developed District Status of 2020 Tax Year
Exhibit E Engineering Report
5
563463
EXHIBIT "A"
MUNICIPAL ACCOUNTS
tA' CONSULTING, LP
Rock Prairie Management
District No. 2
Bookkeeper's Report
August 13, 2020
1281 Brittrnoore Road • Houston, Texas 77043 • Phone: 713.623.4539 • Fax: 713.629.6859
Num
Rock Prairie MD No. 2 - GOF
Cash Flow Report - Checking Account
As of August 13, 2020
Name Memo Amount Balance
BALANCE AS OF 07/10/2020 ($10,254.99)
Receipts
Interest Earned on Checking - June
Developer Advance
Interest Earned on Checking - July
Maintenance Tax Collections
Total Receipts
2.07
50,033.00
0.77
30,000.00
Disbursements
1108 EHRA Enginecring Engineering Fees (1,358.75)
1109 Municipal Accounts & Consulting, LP Bookkeeping Fee (1,376.66)
1110 Schwartz, Page & Harding, L.L.P. Legal Fees (3,039.80)
Fees BBVA USA Service Charge - June (2.07)
Fees BBVA USA Service Charge - July (0.77)
Total Disbursements
80,035.84
(5,778.05)
BALANCE AS OF 08/13/2020 $64,002.80
BBVA USA -PREMIER - #000(0276
Financial Institution
(Acct Number)
Rock Prairie Management District No. 2
Account Balances
As of August 13, 2020
Issue Maturity Interest Account
Date Date Rate Balance
Notes
Fund: Operating
Checking Account(s)
BBVA USA-PREM1ER (XXX.X0276) 0.10 % 64,002.80 Checking Account
Totals for Operating Fund: $64,002.80
Grand total for Rock Prairie Management District No. 2: $64,002.80
Rock Prairie MD No. 2 - GOF
Actual vs. Budget Comparison
July 2020
July 2020 June 2020 - July 2020 Annual
Actual Budget Over/(Under) Actual Budget Over/(Under) Budget
Revenues
14100 Developer Advance 50,033 50,033 0 50,033 50,033 0 50,033
14350 Maintenance Tax Collections 30,000 30,000 0 30,000 30,000 0 60,000
14380 Interest Earned on Checking 3 3 0 3 5 (2) 30
Total Revenues 80,036 80,036 0 80,036 80,038 (2) 110,063
Expenditures
16330 Legal Fees 3,027 5,000 (1,973) 4,904 10,000 (5,096) 60,000
16350 Engineering Fees 1,359 2,500 (1,141) 3,521 5,000 (1,479) 30,000
16430 Bookkeeping Fees 1,317 550 767 1,642 1,100 542 6,600
16450 Legal Notices & Other Publ. 0 0 0 0 0 0 2,000
16455 SB 2 Expenses 250 250 0 500 500 0 3,000
16460 Printing & Office Supplies 27 83 (56) 42 167 (125) 1,000
16470 Filing Fees 0 75 (75) 64 150 (86) 900
16480 Delivery Expense 35 42 (6) 152 83 69 500
16520 Postage 0 4 (4) 0 8 (8) 50
16530 Insurance & Surety Bond 0 0 0 0 0 0 3,713
16540 Travel Expense 0 108 (108) 0 217 (217) 1,300
16560 Miscellaneous Expense 13 83 (70) 87 167 (79) 1,000
Total Expenditures 6,028 8,696 (2,668) 10,913 17,392 (6,479) 110,063
Excess Revenues (Expenditures) S74,008 $71,340 $2,668 $69,123 $62,646 $6,477 $0
3
Rock Prairie MD No. 2 - GOP
Balance Sheet
As of July 31, 2020
Ju131, 20
ASSETS
Current Assets
Checking/Savings
11100 • Cash .in Bank 69,778
11105 • Cash in Bank - Tax Account 38,946
Total Checking/Savings 108,724
Total Current Assets 108,724
TOTAL ASSETS 108,724
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
12000 • Accounts Payable
5,775
Total Accounts Payable 5,775
'Dotal Current Liabilities
Total Liabilities
Equity
13010 • Unallocated Fund Balance
Net Income
5,775
5,775
33,826
69,123
Total Equity 102,949
TOTAL LIABILITIES & EQUITY 108,724
4
EXHIBIT "B"
onesty E is ency ransparency 1 Accountasi lty Continuity
MUNI*PACA*SERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
411. ea FOR THE MONTH ENDING fra •
July 31, 2020
B & A MUNICIPAL TAX SERVICE LLC
13333 NORTHWEST FREEWAY, STE 620
HOUSTON, TX 77040
MAIN 713-900-2680
TOLL FREE 1-888.598-7409
1
N!CIPAI TAX SERVICE,LLC •
• GM • •
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 7/31/20
ECEIVABLES SUMMARY • 1
2019 Balance Forward Levy at 05/31/20 FYE 41. $0.00
CAD Changes / Uncollectible $0.00
0.00
$0.00 4
$0.00
0.00
0.00
•
0.00
Outstanding Balance forward Prior Years (2018-2010) at 05/31/20 FYE
CAD Changes / Uncollectible
Total Levy to be collected
Collection prior months (all years)
2019 Taxes Collected net NSF & KR Refunds during current month
Taxes Collected for Prior Years net NSF & KR Refunds
CID
•
Total Outstanding Balance
•
•
110
AX ACCOUNT Beginning glance — Tax Account
Income •
Taxes Collected Current Year 41.
Taxes Collected Prior Year
Penalties & Interest
Collection Fee Paid
Overpayments
NSF or Reversals, Bank Charges
Other Fees & Court Costs, Etc
Earned Interest
• •
•
Expenses
K# 1078 B&A Municipal Tax Service, LLC - Invoice MD2-082 411
K# 1079 B&A Municipal Tax Service, LLC - Invoice MD2-083 Mir
Ending Balance —Tax Account
•
$0.00
ID $0.00
$0.00
Ei=
7,582.40
$0.00 •
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$10.12
$10.12
$518.00
$45.82
4.1563.82
7,592.52
7,028.70
13 & A MUNICIPAL TAX SERVICE, LLC
13333 NORTHWEST FREEWAY, STE 620
HOUSTON, TX 77040
MAIN 713-900-2680
TOLL FREE 1-888-598-7409
2
• CID
•
M ERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 7/31/20 •
OUTSTANDING TAXES - YEAR TO DATE
TAX
YEAR
2019
2018
2017
BALANCE FORWARD
10/01 /19
$76,036.03
$49,461.25
$19,962.78
CAD
SUPPLEMENTS &
CORRECTIONS UNCOLLECTIBLE
EXEMPTIONS & TAX RATES
TAX
YEAR
2020
2019
2018
2017
HOMESTEAD
EXEMPTION
0.00%
0.00%
0.00%
0.00%
DISTRICT VALUES
TAX LAND &
YEAR IMPROVEMENTS
2019 14,898,546
2018 9,881,920
2017 4,069,643
($2,736.10)
$0.00
$0.00
OVER 65 /
DISABLED
0
0
0
0
$0.00
$0.00
$0.00
M & 0 RATE
0.00000
0.50000
0.50000
0.50000
PERSONAL
AG NET PROPERTY
14,370 909,670
28,690 309,850
27,010 0
COLLECTIONS
$73,299.93
$49,461.25
$19,962.78
OUTSTANDING COLLECTION
TAXES PERCENTAG
$0.00 100.00
$0.00 100.00Q
($0.00) 100.00
($0.00)
MIMED
DEBT SERVICE
RATE
0,00000
0.00000
0.00000
0.00000
EXEMPTIONS
1,162, 600
328,210
104,096
CONTRACT TAX
RATE TOTAL RATE
0.00000 0.0000
0.00000 0.5000
0.00000 0.5000
0.00000 0.5000
TOTAL VALUE SR KR
14,659,986 12 12
9,892,250 30 30
3,992,557 47 47
B & A MUNICIPAL TAX SERVICE, LI.0
13333 NORTHWEST FREEWAY, STE 620
HOUSTON, TX 77040
MAIN 713-900-2680
TOLL FREE 1-888-598-7409
3
NI SEICE,LLC
BEGINNING BALANCE
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 7/31/20
PROFIT & LOSS
CURRENT MONTH
07/01/20 - 07/31/20
8,214.83
FISCAL YEAR
6/01/20 - 7/31/20
38,946.02
INCOME
10% Rendition Penalty 0.00 0.00
Bad Check Charges 0.00 0.00
CAD Refund Excess Allotment 0.00 0.00
Collection Fee 0.00 0.00
Earned Interest 10.12 10.12
Overpayments 0.00 0.00
Penalty & Interest 0.00 0.00
Rollback Tax Collected 0.00 0.00
Taxes Collected 0.00 0.00
Total Income
10.12 10.12
EXPENSES
Audit/Records 0.00
Bank Charges 0.00
Bond Premium 50.00
CAD Fees 0.00
Certificate of Value 0.00
Copies 13.80
Correction Roll Refunds 0.00
Correction Roll Rendition Refunds 0.00
Continuing Disclosure 0.00
Court Affidavits 0.00
Delinquent Tax Attorney Assistance 0.00
Delinquent Tax Attorney Fee 0.00
Installment Tracking 0.00
Unclaimed Property Report 0.00
Legal Notices 0.00
Mailing & Handling 20.19
Meeting Travel & Mileage 11.27
Overpayment Refund _ 0.00
Public Hearing _ 0.00
Records Retention 0.42
Roll Update & Processing 18.75
Senate Bill 2 to CAD (5 Yr History) 0.00
Supplies 0.00
Tax Assessor Collector Fee - AB 518.00
Tax Rate Preparation & Calculation 0.00
Transfer to Rollback Collected 0.00
Transfer to Maintenance & Operating 0.00
Transfer to Debt Service 0.00
632.43
ENDING BALANCE 7 592`52
0.00
0.00
50.00
180.75
0.00 Ai
29.40
0.00
0.00 •
0.00
0.00
15.00
0.00
0.00 •
0,00
0.00
21.61
11.27
0.00
0.00
0.84 W
18.75
0.00
0.00
1,036.00
0.00
0.00
30,000.00
0.00
31,363.62
B & A MUNICIPAI. TAX SERVICE, LLC
13333 NORTHWEST FREEWAY, STF, 620
HOUSTON, TX 77040
MAIN 713-900-2680
TOLL FREE 1-888-598-7409
4
May
June
July
August
•
MUNICIPAL TAX SERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 7/31/20
YEAR TO YEit COMPARISON
2019 % 2018
October $3,394.55 4.46%
November $569.00 5.41% _
•
December $4,111.95 11.02%
•
January $41,438.41 67.55%
February $25.50 67.58%
March $0.00 67.58%
April $0.00 67.58%
$23,760.52 100.00%
•
$0.00 100.00%
$0.00 100.00%
$0.00
$0.00
$0.00
$0.00
$38,113.40
$11,321.65
$0.00
$13.75
$0.00
$0.00
$12.45
$0.00
Septembe. .$0.00 • _ $0.00
MONTHLY COLLECTIONS
2019
2018
11. $0.0.1. $0.00
VARIANCE
0.00% 4.46%
0.00% 5.41%:
0.00% 11.02%
77.06% -9.51%
99.95% -32.37%
99.95% -32.37%
99.97% -32.39%
99.97% 0.03%
•
99.97% 0.03%
100.00% 0.00%
100.00%
100.00%
B & A MUNICIPAL TAX SERVICE, LLC
13333 NORTHWEST FREEWAY, STE 620
HOUSTON, TX 77040
MAIN 713-900-2680
TOLL FREE 1-888-598-7409
5
•
MUNICIPAL TAX SERVICE,LLC
•
ROCK PRAIRIE MANAGEMENT DISTRICT NO 2
FOR THE PERIOD ENDING 07/28/20
ED • •
PLEDGED SECURITIES REPORT •
SECURITIES PLEDGED AT 105% OVER FDIC INSURED $250,000
di SID Gin
COLLATERAL SECURITY AGREEMENT ON FILE : YES
TAX BANK ACCOUNT HELD AT: WELLS FARGO / BANK OF NEW VORK MELLON
COLLATERAL SECURITY REQUIRED: NO
TYPE OF PLEDGED INVESTMENT:
11111=10---
•
N COMPLIANCE W/ DISTRICT INVESTMENT POLICY: YES
•
B A MUNICIPAL TAX SERVICE
13333 NORTHWEST FREEWAY SUITE 620
HOUSTON TX 77040
MAIN 713.900-2680
TOLL FREE 1-888-598-7409
PS
STATE OF TEXAS §
COUNTY OF BRAZOS §
Avik Bonnerjee, being duly sworn, says that he is the Tax Assessor -Collector for the above named
District and the foregoing contains a true and correct report accounting for all taxes collected for
said District during the month therein stated.
Avik Bonnerjee, RTA
SWORN TO AND SUBSCRIBED BEFORE ME, this 1St day of August 2020.
REBECCA LYNN BREWER
Notary ID #1258819
My Commfssfan Expires
March 1, 2021
AP,
Rebecca Lynn Brewer
Notary Public, State of Texas
Notary ID #1258819
My Commission Expires March 1, 2024
MUNICIPAL TAX SERVICE, LLC
Bill To
Rock Prairie Management District No. 2
13333 Northwest Freeway
Suite 620
Houston TX 77040
Invoice
Date
Invoice #
8/ t /2020
MD2-082
Description
Unit Count
Rate
Amount
Avik Bonncrjee, RTA - Tax Assessor Collector Fee August
515.30
515.30
2020.
2019 Additional Unit Count Invoiced 2020
3
0,90
2.70
Thank you for your business.
Total $518.00
a
i c b 149
13333 Northwest Freeway, Suite 620
Houston, TX 77040 a PH:713-900-2680 ■ wwww .bamunitax,com
MUNICIPAL TAX SERVICE, LLC
Bill To
Rock Prairie Management District No. 2
13333 Northwest Freeway
Suite 620
Houston TX 77040
Invoice
Date
Invoice #
8/ 1 /2020
MD2-083
Description
Unit Count
Rate
Amount
Copies
152
0.20
30.40
Records Retention
0.42
0.42
Preparation of Deft'. Atty. Electronic Files
15.00
15.00
Thank you for your business.
Total $45.82
`et g1. &o 0141619
13333 Northwest Freeway, Suite B20 ■ Houston, TX 77040 PH:713-900-2680 www.bamunitax.com
EXHIBIT "C"
MEMORANDUM
To: Board of Directors
Rock Prairie Management District No. 2
From: Schwartz, Page & Harding, L.L.P
Date: August 14, 2020
Re: Implementation of S.B. 2 (Texas Property Tax Reform and Transparency Act
of 2019) in the Adoption of Tax Rates
Background:
S.B. 2 was passed in the 86111 Texas Legislative Session. It was effective on January 1, 2020 and
changes, among other things, the tax rate adoption procedures applicable to those districts
governed by Chapter 49 of the Texas Water Code. This memorandum provides a general overview
of the new procedures that will apply to the 2020 and subsequent tax year levies.
What Has Changed:
There are now three categories of districts for purposes of tax rate notices and "rollback tax rate"1
calculations, with each category having its own rollback threshold and requirements for conducting
an election if that threshold is exceeded. See Texas Water Code Sections 49,23601-49.23603.
Low Tax Rate Districts are those districts that levy an operation and maintenance ("O&M") rate
for the current tax year of $0.025 or less. In practice, very few districts will fall into this category.
Developed Districts are those districts that have constructed and financed all facilities and sites
necessary to serve ninety-five percent (95%) of their projected build out. This will include older
districts that have completed their development program and which have not annexed additional
developable land into their boundaries. Developing Districts are those districts that do not fall
within either of the first two categories. This will include both younger districts in the early stages
of their development program and older districts that have annexed significant amounts of
additional developable land, for which facilities have not yet been constructed or financed.
As in the past, whether a district's proposed tax rate exceeds its rollback threshold is based on a
maximum allowable increase in total taxes paid by the average homestead within the district, when
comparing the current year (based upon the current average homestead value and proposed total
tax rate within the district) to the prior year (based upon that year's average homestead value and
adopted total tax rate within the district). Likewise, as in the past, if the adopted rate exceeds the
maximum tax increase then there is a procedure for conducting an election to determine if the
` Under S.B. 2 the term "rollback tax rate" has been changed to "voter approval tax rate". However, the prior
terminology has been utilized in this memorandum for ease of reference.
S.B. 2
August 14, 2020
district's O&M rate should be lowered.2 However, there are now differences in (i) the maximum
tax increase allowed without an election, (ii) who bears the responsibility for initiating the election
if that maximum is exceeded, and (iii) what the O&M rate can be reduced to as a result of that
election, depending on which of the above three categories a district falls into. These differences
are summarized in the attached chart. The lowest rollback threshold is for Developed Districts,
which now have a maximum allowable increase in taxes paid of 3.5%.3 In contrast, Developing
Districts have a maximum allowable increase of 8%.
Implementation:
In order to assist our client districts in determining which category they fall into, and to establish
consistent implementation standards, our firm has created a worksheet to be completed by the
district's engineer (and in some cases its financial advisor) on an annual basis. The worksheet
contains questions related to whether the district has met the standards for a "Developed District"
(i.e. the construction and financing of facilities to serve ninety-five percent (95%) of its projected
build -out). Once completed, a district's board of directors will be able to rely on the worksheet in
making its determination whether or not their district will be considered a Developed District for
the current tax year. This determination will be memorialized in a Resolution adopted by the
district's board of directors and provided to its tax assessor. Once that determination is made for
a particular tax year, the tax assessor will then be able to confirm the maximum allowable tax
increase and form of public notice that applies for the district, and the financial advisor will be
able to complete their tax rate recommendation.
There are several provisions of S.S. 2 that apply to districts governed by Chapter 49 of the Texas
Water Code. This memorandum is limited to providing an overview of those issues involved in
the tax rate adoption process for those districts that typically takes place in August -October of
each year. Should you have any questions concerning the above discussion or how it may impact
your district, please feel free to contact our office.
2 While the threshold for holding the election is based upon the district's total tax rate and the total taxes paid by the
average homestead within the district, the only tax rate component that voters may roll back is the O&M rate. See
attached chart.
3 Pursuant to Tex. Water Code Section 49.23602, a Developed District may also include as part of its rollback
threshold the "unused increment rate" as defined by Tex. Tax Code Section 26.013. However, for the 2020 tax year
that additional unused increment rate will be zero. This new maximum increase of 3.5% is significantly lower than
the 8% amount that would have applied prior to S.B. 2.
2
562214
S.B. 2 Implementation Differences Among 3 District Types
District Type
Maximum Percentage
Who Must Initiate
Election if Maximum
Percentage Tax
Increase is Exceeded?
What Tax Rate
Applies if District
Loses Election (the
„ Voter Approval Tax
Rate")?
Tax Increase on
Average Homestead
Without Election
Low Tax Rate District
— Tex. Water Code
Section 49.23601
8%
Election automatically
triggered and must be
conducted by district to
approve higher tax rate
— simple majority vote
wins
Current year's debt rate
+ current year's
contract rate + O&M
rate that generates 8%
more O&M taxes on
average homestead vs.
prior year
Developed District4 -
Tex. Water Code
Section 49.23602
3.5% + "unused
increment raters
Election automatically
triggered and must be
conducted by district to
approve higher tax rate
— simple majority vote
wins
Current year's debt rate
+ current year's
contract rate + O&M
rate that generates 3.5%
more O&M taxes on
average homestead vs.
prior year + unused
increments rate
Developing District —
Tex. Water Code
Section 49.23603
8%
Voters may petition for
election to reduce tax
rate - 3% of registered
voters must file petition
within 90 days of tax
rate adoption to require
election - simple
majority vote wins
Current year's debt rate
+ current year's
contract rate + O&M
rate that generates 8%
more O&M taxes on
average homestead vs.
prior year
Pursuant to Tex. Water Code Section 49.23602(d), if any portion of a Developed District is located within an area
declared a disaster area during the current tax year by the Governor or the President of the United States, it may
utilize the parameters applicable to Low Tax Rate Districts for that tax year and for a limited additional period.
5 Unused increment rate" is defined in Tex. Tax Code Section 26.013 as the greater of (i) zero or (ii) the rate calculated
according to the following formula: (year I voter -approval tax rate year 1 actual tax rate) + (year 2 voter -
approval tax rate _ year 2 actual tax rate) + (year 3 voter -approval tax rate — year 3 actual tax rate). Years 1
through 3 in the above formula represent the 3 years prior to the current tax year. For any tax year prior to 2020,
this difference is deemed to be zero.
EXHIBIT "D"
RESOLUTION CONCERNING DEVELOPED DISTRICT STATUS FOR 2020 TAX YEAR
WHEREAS, the Board of Directors (the "Board") of Rock Prairie Management District
No. 2 (the "District") intends to adopt an ad -valorem tax rate for the current tax year; and
WHEREAS, before the Board may adopt a tax rate for debt service, operation and
maintenance or contract purposes, it must take certain actions and provide certain public notices
pursuant to Texas Water Code Sections 49.236 -- 49.23603, as amended; and
WHEREAS, the specific actions and public notices required for the District will depend,
in part, upon whether it is characterized for the current tax year as a "Developed District", as
defined by Texas Water Code Section 49.23602(a)(1); and
WHEREAS, the Board desires to memorialize its detein'ination, based upon information
provided by the District's consulting engineer contained in Exhibit "A", attached hereto and
incorporated herein for all purposes, of whether or not it will be characterized as a Developed
District for the current tax year. Now, therefore,
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF ROCK PRAIRIE
MANAGEMENT DISTRICT NO. 2 THAT:
Section 1: For the tax year 2020, and in reliance upon the information contained in the
attached Exhibit "A", the Board has determined that it shall not be considered a Developed District
as defined by Texas Water Code Section 49.23602(a)(1) for any purposes. This determination
shall be considered made by the Board as of January 1st of such tax year.
Section 2: This Resolution constitutes official action by the Board concerning
determination of the District's Developed District status for the tax year 2020, and the District's
tax assessor — collector, attorneys and other consultants shall be entitled to rely upon this
Resolution in performing any actions and/or preparing any notices which are required as a result
of the District's determination for such tax year, unless and until this Resolution is revoked or
amended by the Board.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
PASSED AND ADOPTED ON THIS 13th day of August, 2020.
ATTEST:
By:
Sectary, Board of Directors
ROCK PRAIRE MANAGEMENT
DISTRICT NO. 2
•esident Boar of Diream
-2-
562217_1
EXHIBIT A TO RESOLUTION CONCERNING
DEVELOPED DISTRICT STATUS FOR 2020 TAX YEAR
The undersigned is an authorized representative of Rock Prairie Management District No, 2
(Name of Engineering Firm), the duly appointed and acting consulting engineer for
Edminster, Hinshaw, Russ & Associates, inc. (dba EHRA) (the "District"), I am familiar with the
development status of the District and the matters addressed herein. The following information is
being provided for use by the District's Board of Directors in determining whether it will be
characterized as a "Developed District", as defined by Texas Water Code Section 49.23602(a)(1),
for the 2020 tax year. Unless otherwise specifically stated herein, this information is being
provided based on the status of the District as of January I' of such year.
1. Water, Sanitary Sewer and Drainage Facilities:
(a.) The estimated number of equivalent single family connections ("ESFC") required for
projected build -out of all developable property within the District is
594
number is
564
(the "Build -Out ESFC"). Ninety-five percent (95%) of that
(the "Developed District ESFC").
(b.) Have all water, sanitary sewer and drainage facilities been constructed, and all
associated sites or easements been conveyed to the District, which are required to serve
the Developed District ESFC'? des- No If the answer is "No",
do not complete the remainder of this document. If the answer is "Yes", proceed
to (c.) below.
(c.) Have all of those water, sanitary sewer and drainage facilities and sites been financed
with bonds or otherwise paid for by the District? Yes No. If the answer
is "No", do not complete the remainder of this document. If the answer is "Yes",
proceed to Item No. 2.
Item No. 2 below, if applicable, is only to be completed in the event Item No. 1 (c.) was
answered "Yes". Otherwise, Item No. 2 shoul.d not be completed.
2. Road Facilities (Only applicable if the District has road powers and remaining voted road
bond authority. Otherwise, do not complete and proceed to Item No. 3.):
1
(a.) The total costs incurred to date in connection with the construction of qualifying roads,
or any qualifying improvements in aid of roads, which roads and improvements are
required to serve the Build —Out .ESFC, are approximately $ . Ninety
— five percent (95%) of that number is $ (the "Developed District Road
Costs").
(b.) Have all of the Developed District Road Costs been financed with bonds or otherwise
paid for by the District? Yes No. If the answer is "Yes", proceed
to Item No. 3. If the answer is "No", proceed to (c.) below.
(c.) The following questions (c.) and (d.) (if applicable) are to be answered in
consultation with the District's financial advisor. Is the current amount of
outstanding road bonds attributable to the District (i.e. issued by the District or an
overlapping jurisdiction) greater than or equal to twenty-five percent (25%) of the
District's current real property taxable value, as reflected on the most recent certified
tax rolls, for purposes of the limitation contained in Article 3, Section 52 of the Texas
Constitution?2 Yes No. If the answer is "No", do not complete the
remainder of this document. If the answer is "Yes", proceed to (d.) below.
(d.) Is the District's real property taxable value reasonably anticipated to sufficiently
increase, within the next twenty-four (24) months, to allow the sale of road bonds for
additional Developed District Road Costs? Yes No. If the answer is
"Yes", do not complete the remainder of this document. If the answer is "No",
proceed to item No. 3.
Item No. 3 below, if applicable, is only to be completed in the event that either of Item Nos.
I(c.) or 2(b.) above was answered "Yes" or Item No. 2(d.) was answered "No". Otherwise,
Item No. 3 should not be completed.
3. Park and .Recreational Facilities (only applicable if district has remaining voted park and
recreational bond authority of at least $1,000,000. Otherwise, do not complete.):
The engineer will need to answer this question based upon the type of road powers held by the District (i.e. limited
or full road powers).
2 This test is generally the same test required by the Attorney General in connection with the issuance of new road
bonds and is addressed in the Overlapping Debt Certificate prepared by the financial advisor. Only real property
value is considered.
2
(a.) The lesser of (i) the total amount of the District's voted bond authority or (ii) 1% of
the Districts total taxable value, as reflected on [the most recent certified tax rolls] 3[an
estimate of value prepared by the applicable appraisal district dated 20, is
$
. Ninety-five percent (95%) of that lesser number is
(the "Developed District Park Costs").
(b.) The following questions (b.) and (c.) (if applicable) are to be answered in
consultation with the District's financial advisor. Does the District have an amount
of outstanding park and recreational bonds greater than or equal to the Developed
District Park Costs? Yes No. If the answer is "Yes", proceed to
(c.) below. if the answer is "No", proceed to (d.) below.
(c.) Are the District's outstanding park and recreational bonds reasonably anticipated
to be Tess than the Developed District Park Costs within the next twenty-four (24)
months? Yes No. If the answer is "Yes", proceed to (d.) below. If
the answer is "No", do not complete the remainder of this document.
(d.) Has the District taken any of the following steps in the last twenty-four (24) months
in furtherance of a park and recreational facilities bond issue: (i) engaged a design
engineer or landscape architect, (ii) approved the advertising of or awarded a
contract for a project, or (iii) authorized preparation of a bond application report?
Yes No
REMAINDER OF PAGE LEFT INTENTIONALLY BLANK
Texas Water Code Section 49.4645 allows park bonds to be issued based upon an estimate of value.
3
Dated: July 13 , 2020
Signature of Engineer: W�
Print Name of Engineer:
$ fnshiia`f1/rC'amphPll, PF
Print Name of Engineering Finn: Edminster, Hinshaw, Russ & Associates, Inc. (dba EHRA)
Print Name of District: Harris County MUD No. 536
ENGINEER SIGNATURE PAGE FOR EXHIBIT A TO RESOLUTION DETERMINING
DEVELOPED DISTRICT STATUS FOR 2020 TAX YEAR
The District will NOT be considered a Developed District for the current tax year if any of the
following situations occur: (i) the answer to Item 1(b.) is "No"; (ii) the answer to Item 1(c.) is
"No"; (iii) the answer to Item 2(c.) is "No''; (iv) the answer to Item 2(d.) is "Yes"; OR (v) the
answer to Item 3(d.) is "Yes". The Board will adopt a Resolution memorializing its Developed
District status on an annual basis, based upon the answers on this form
4
If Items 2(e.) or (d.) and/or Items 3(b.) or (c.) above is answered, this document should also
be executed by the District's Financial Advisor.
Dated: , 2020
Signature of Financial Advisor:
Print Name of Financial Advisor:
Print Name of Financial Advisory Firm:
Print Name of District:
FINANCIAL ADVISOR SIGNATURE PAGE .FOR EXHIBIT A TO RESOLUTION
DETERMINING DEVELOPED DISTRICT STATUS FOR 2020 TAX YEAR
5
EXHIBIT "E"
e
E H RA
ENGINEERING THE FUTURE
SINCE 1936
ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2
ENGINEERING REPORT
AUGUST 2020
Engineering Report, including:
TBPE No. F-726
TBPLS No. 10092300
a. Authorize the design and/or advertisement of bids for construction of facilities within the District and
approval of related Stormwater plans, including District.
1. Status of design of Lakeway Drive Reserve, Phase 200
No Update.
Board Action: None.
b. Authorize the award of/or concurrence in award of contracts for the construction of facilities within
the District, authorizing acceptance of Texas Ethics Commissions ("TEC") Form 1295 and approval
of any storm water permits.
Board Action: None.
c. Status of construction of facilities to serve land within the District, including the approval of any pay
estimates and change orders and authorize acceptance of TEC Form 1295, including:
1. Construction of on -site sanitary sewer trunk line by Greens Prairie Investors, Ltd.
Contractor
Contract Days
Approved Extensions
Contract Completion Date
Contract i3id Amount
Quandty Adjustment
Total Contract Amount
Pay Request No. 1
Total Pa,,' requests
Greens Prairie Investors, Ltd.
120
0
8/30/2018
$322,584.00
,($53,337.33)
$269,246.67
$242,322.00
$242,322.00
Remaining on Contract $26,924.67
Construction is substantially complete.
Board Action: None.
days
days
•
Date Approved
5/2/2018
7/9/2020
7/9/2020
Comment
Notice to Proceed Issued
Remove Dewatering
10.00% of Contract Remaining
wxI
84.45
REALIZ 'IG VISIONS • DESIGNING COMMUNITIES • ENGINEERIN•G THE F,-URE
ww EHRAinc
Rock Prairie Management District No. 2
August 2020
Page 2
2. Midtown Reserve Subdivision, Phase 100 by Greens Prairie Investors, Ltd. (26 lots'
Contractor Greens Prairie Investors, td.
Contract Days 12. day -
Approved Extensions 0 days
Contract Completion Date
Date Approved Comment
Contract Bid Amount $44; ,9"3.00 Notice to Proceed Issued
Change Order No. 1 $52,000.00 For Approval Additional Telecom
Total Contract Amount tiy33. J
Pay Request No. 1 $499,933.; 3 For Approval
Total Pay Requests $4 . ),933.Ji,
Remaining on C^ntract
$... J j.C" ofC_lntractRemaining
Project is Closed Out and can be removed from future meeting agendas.
Board Action: Approve Change Order No. 1 and Pay Request No. 1.
3. Midtown Reserve, Phase 102 by Greens Prairie Investors, Ltd. (62 Lots)
Contractor Greens Prairie Investors, Ltd.
Contract Days 120 days
Approved Extensions 0 days
Contract Completion Date
MID OD
Date Approved Comment
Contract Bid Amount $791,038.75 Notice to _': eed Issued
Change Order No. 1 /124.000.00 Appro Additional Telecom
._'rtal Contract Amotwt $915,"38 '5
Pay Request No. 1 $915.038.75
Ibtal Pay Requests $915,J38 "5
Remairing m iontract
For Approval
••0.00 of Conti... ternaining
Project is Closed Out and can be removed from future meeting agendas.
Board Action: Approve Change Order No. 1 and Pay Request No. 1.
EHRA
EHRA Engineering 1100'1 Meadowglen ..ane Houston, Texas 770421 t7"3.784.45001 f 713.784.4577
.ERI THE FUTURE
SINCE 1936
Rock Prairie Management District No. 2
August 2020
Page 3
4. Midtown Reserve, Phase 104 by Greens Prairie Investors, Ltd.
Contractor Greens Prairie Investors, Ltd.
Contract Days 160 days
•
Approved Extensions 0 days
Contract Completion Date
Date Approved Comment
Contract Bid _Amount IliN N tice to Proceed 'slued
Total Contract mount $471,655.50
Total Pay Requests $0.00
Remaining on Contract $471,655.50
Construction is underway. •
Board Action: None.
5. Irrigation of Phase I Park ]development by Green Teams, Inc.
Contractor Green Teams, Inc.
Contract Days 45 lays
Approved Extensions 0 days
Contract Completion Date 5/10/2020
100.00% of Contract Remaining
Date Approved Comment
Contract Bid Amount $435,305.00 3/27/2020 Notice to Proceed Issued
Change Order $0.00
Quantity Adjustment Sn.00
Total Contract Amount $435,305.00
Pay Request No. 1 S231,304.5Q
Tot& Pay R_quezts $231,304.50
Remaining on Contract
Construction is underway.
Board Action: None.
7/9/2020
$204,000.50 46.86% of Contract Remaining
EHRA
EHRA Engineering 110011 Meadowglen Lane ] Houston, Texas 77042 t 713,784,4500 J f 713.784.4577
ENGINEERING THE FUTURE
SINCE 1936
Rock Prairie Management District No. 2
August 2020
Page 4
6. Landscaping of Phase I Park Development by Greener Images
Contractor Greener Images
Contract Days 30 days
Approved Extensions 0 days
Contract Completion Date 4/25/2020
Date Rproved Comment
Contract Bid Amount S98,695.44 3/27/2020 Notice to Proceed Issued
Quantity Adjustment No.1 $13.504.15 4/9/2020 Add Alternate Bid Items
Total Contract Amount $11 59
Pay Request No. 1 $86,520.44 4/9/2020
Pay Request No. 2 $11.692.59 For Approval
Total Pay Requests $98,213.03
Remaining on Contract $13,986.56 12.479'0 of Contract Remaining
Construction is underway.
Board Action: Approve Pay Request No. 2.
7. Midtown Reserve, Phase 105 by Greens Prairie Investors, Ltd.
Contractor
contract Days
Approved Extensions
Contract Completion Date
Greens r'rairie Investors, Ltd.
150
0
10/4/2020
days
days
Date Ap ru Dyed Comment
Contract Bid Amount S1.961 787.50 5/7/2020 Notice to Proceed .ssued
Total Contract Amount S1,961,787.50
Total Pay Requests $0.00
Remaining on Contract $1,961,787.50 100.00" of Contract Remaining
Board Action: None.
EHRA
EHRA Engineering 110011 Meadowglen Lane I Houston, Texas 77042 I t 713,784,4500 I f 713.784.4577
ENGINEERING THE FUTURE
SINCE 1936
Rock Prairie Management District No. 2
August 2020
Page 5
8. Midtown City Center, Phase 301 by Greens Prairie Investors, Ltd.
Contractor
Contract Days
Approved Extensions
Contract Completion Date
Greens -Irairi Invc.;tors, Lto.
45
0
days
days
DateAmroved Comment
Contract Bid Amount $159,299.00 Notice to Proceed I; ied
Change Order No. 1 $8,918.00 For AA. 'Waterline Relocate
Total Contract Amour' $168,217.00
Total Pay Requests $0.00
Remaining on Contract
S' 68,217.00 00.0(, /o of Contract Remaining
Board Action: Approve Change Order No. 1.
d. Acceptance of site and/or easement conveyances for facilities to be constructed for the District and
acceptance of Facilities for operation and maintenance purposes.
1. Conveyance and Bill of Sale of Utility Facilities relative to water, sanitary sewer and drainage
facilities for Midtown City Center — Phase 601.
Board Action: Approve Conveyance and Bill of Sale of Utility Facilities.
e. Status of acceptance by the City of College Station, Texas for maintenance of streets.
1. Town Lake Drive, formerly Bird Pond Road
Board Action: None.
EHRA
EHRA Engineering 11001' Meadowglen Lane 1 Houston, Texas 77042 ' t 713.784.4500 I f 713.784.4577
ENGINEERING THE FUTURE
SINCE 1936