HomeMy WebLinkAbout08/12/2021 - Regular Minutes - Rock Prairie Management District No. 2ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2
MINUTES OF MEETING OF BOARD OF DIRECTORS
August 12, 2021
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 12, 2021, 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
Logan Lee — Assistant Vice President
Mark Lindemulder —Secretary
Samuel "Kit" Kerbel — Assistant Secretary
all of whom participated in the meeting via telephone conference call, except Directors Geva and
Glover, 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"); Joshua Campbell of EHRA Engineering ("EHRA"); Becky Brewer of B&A
Municipal Tax Service, LLC ("B&A"); Terrell Palmer of Post Oak Municipal Advisors LLC
("POMA"); Stacey Vasquez of the City of College Station ("City"); and Christina Cole and Julie
Kime of Schwartz, Page & Harding, L.L.P. ("SPH").
In the absence of the President and Vice President, the Assistant Vice 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. Lastly, Ms. Cole conducted a full roll call of all meeting participants for
attendance purposes.
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
The Board next considered approval of the minutes of its regular meeting held on June 10,
2021. After review and discussion, Director Lindemulder moved that the minutes for said Board
meeting be approved, as written. Director Kerbel 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 therein for payment.
Following discussion, Director Lindemulder moved that said Bookkeeping Report be approved
and that the checks identified in the report be approved for payment. Director Kerbel seconded
the motion, which unanimously carried.
ORDER SELECTING DEPOSITORY,
Ms. Colondres next presented and discussed with the Board the memorandum regarding
new depository bank — Central Bank, prepared by MAC and included herein with as Exhibit A.
Following discussion, Director Lindemulder moved to (i) designate Central Bank as the District's
depository and (ii) adopt the Order Selecting Depository attached hereto as Exhibit B. Director
Kerbel seconded the motion, which unanimously carried.
ANNUAL REVIEW OF ORDER ESTABLISHING POLICY FOR INVESTMENT OF.
DISTRICT FUNDS AND APPOINTING INVESTMENT OFFICER
The Board considered the review of its Order Establishing Policy for Investment of District
Funds and Appointing Investment Officer ("Investment Policy"), and the adoption of a Resolution
in connection therewith. Ms. Cole presented for the Board's review a Memorandum outlining the
proposed amendments to the Investment Policy, an amended Investment Policy, and a Resolution
Regarding Review of Order Establishing Policy for Investment of District Funds and Appointing
Investment Officer ("Resolution") and discussed the proposed amendments to the Investment
Policy. Following discussion, Director Lindemulder moved that the amended Investment Policy
be approved to reflect the proposed changes, that the Board adopt the Resolution and that the
President and Secretary be authorized to execute the Investment Policy and the Resolution on
behalf of the Board and the District. Director Kerbel seconded said motion, which unanimously
carried. The Memorandum, Resolution and Investment Policy are attached hereto as Exhibit C.
TAX ASSESSORICOLLECTOR'S REPORT
Ms. Brewer then presented to and reviewed with the Board the Tax Assessor -Collector
Reports for the months ended June 30, 2021, and July 31, 2021, including checks presented therein
for payment. Copies of such reports are attached hereto as Exhibit D. After discussion, Director
Lindemulder moved that the Tax Assessor -Collector Reports be approved and that the checks
identified therein be approved for payment. Director Kerbel seconded said motion, which
unanimously carried.
2
596742
ADOPTION OF RESOLUTION CONCERNING DEVELOPED DISTRICT STATUS FOR 2021
TAX YEAR
Ms. Cole next reminded the Board that pursuant to Texas Property Tax Reform and
Transparency Act of 2019, the District is required to determine whether or not the District will be
considered a Developed District for the current tax year. 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 2021 Tax Year
("Resolution"). Following discussion, upon motion made by Director Lindemulder, seconded by
Director Kerbel, and unanimously carried, the Resolution was adopted by the Board. A copy of
the Resolution thus adopted is attached hereto as Exhibit E.
TAX RATE RECOMMENDATION
Mr. Palmer then reviewed with the Board the Tax Rate Recommendation Schedule
attached hereto as Exhibit F. He advised the Board that POMA recommends a proposed 2021
debt service tax rate of $0.33, and, based on the analysis, the Board discussed a proposed 2021
maintenance tax rate of $0.17, for a total proposed tax rate of $0.50.
There next followed a discussion concerning the requirements for notice of the District's
intention to adopt a 2021 tax rate. Ms. Cole advised that, pursuant to 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 10 days before the date of the meeting. After discussion on the matter,
Director Lindemulder moved that the Board accept the financial advisor's recommendation of a
proposed 2021 debt service tax rate of $0.33, that a maintenance tax rate of $0.17 be established,
and that the District's tax assessor -collector be authorized to publish notice of the District's
intention to adopt a 2021 tax rate at its September 9, 2021 regular meeting in the form and at the
time required by law in The Eagle newspaper. Director Kerbel seconded said motion, which
unanimously carried.
Ms. Cole reminded the Board that in order for the District to adopt a tax rate at the
September 9, 2021 meeting, a quorum of four (4) Board members will be required to attend and
consider adoption of same.
Mr. Palmer then presented a disclosure from POMA required by the Municipal Securities
Rulemaking Board Rule G-10. A copy of such disclosure is attached hereto as Exhibit G.
ENGINEERING REPORT
Mr. Campbell presented to and reviewed with the Board an Engineering Report dated June
2021, a copy of which is attached hereto as Exhibit H. Following such presentation, Director
-3-
596742
Lindemulder moved to ratify the actions taken on behalf of the Board and District by the President
since the last meeting of the Board to approve and execute the Preliminary Plan Owner
Certification relative to Midtown Reserve and Midtown City Center subdivision preliminary plan
modification. Director Kerbel seconded the motion, which unanimously carried.
DEVELOPER'S REPORT
The Board considered the Developer's Report. Mr. Murr presented a verbal report on the
status of development within the District.
ATTORNEY'S REPORT
The Board next considered the attorney's report. In connection therewith, Ms. Cole advised
the Board that the Governor's emergency order suspending certain requirements of the Open
Meetings Act due to the COVID-19 pandemic will expire at 12:01 a.m. on September 1, 2021, and
that, as a result, the Board will no longer be allowed to hold meetings telephonically. Ms. Cole
noted that beginning with the September 9, 2021 meeting, the Board will resume in -person Board
meetings at its regular meeting place.
DISCUSSION OF REOUIREMENTS OF H.B. 1154
Ms. Cole presented and reviewed a Memorandum prepared by SPH relative to the
requirements of H. B. 1154 passed during the 87th Texas Legislature, effective September 1, 2021,
and noted that the District does not currently meet the threshold requirements, and no action is
required at this time.
REQUEST FROM RECORDS MANAGEMENT OFFICER TO DESTROY RECORDS
The Board next considered a request from the District's Records Management Officer to
destroy SPH's handwritten notes of Board meetings from February 12, 2020, through April 8,
2021, a copy of which request is attached hereto as Exhibit I. After discussion, Director
Lindemulder moved that the destruction of SPH's handwritten notes of Board meetings be
authorized as requested in accordance with the provisions of the District's Records Management
Program. Director Kerbel seconded the motion, which unanimously carried.
4
596742
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.
ADJOURNMENT
There being no further business to come before the Board, on motion made by Director
Lindemulder seconded by Director Kerbel, and unanimously carried, the meeting was adjourned.
5
Secretary
596742
LIST OF ATTACHMENTS.
Rock Prairie Management District No. 2
Minutes of Meeting of August 12, 2021
Exhibit A Bookkeeping Report and Memorandum Regarding New Depository Bank —
Central Bank
Exhibit B Order Selecting Depository
Exhibit C Memorandum, Resolution and Investment Policy
Exhibit D Tax Assessor -Collector Reports
Exhibit E Resolution Concerting Developed District Status for the 2021 Tax Year
Exhibit F Pro Forma Cash Flow Analysis
Exhibit G Post Oak Municipal Advisors, LLC, MSRB Rule G-10 Disclosure
Exhibit H Engineering Report
Exhibit I Records Destruction Request
6
596742
EXHIBIT "A"
MUNICIPAL ACCOUNTS
& CONSULTING, L.P.
Rock Prairie Management
District No. 2
Bookkeeper's Report
August 12, 2021
1281 Brittmoore Road A Houston, Texas 77043 A Phone: 713.623.4539 A Fax: 713.629.6859
Num
BALANCE AS OF 08/11/2021
Receipts
Name
Rock Prairie MD No. 2 - GOF
Cash Flow Report - Checking Account
As of August 12, 2021
VOID: Check #1130 - SB2 Compliance - March
Interest Eamed on Checking
Total Receipts
Disbursements
1148 B&A Municipal Tax Service
1149 EHRA Engineering
1150 Municipal Accounts & Consulting, LP
1151 Schwartz, Page & Harding, L.L.P.
Fees BBVA USA
Total Disbursements
BALANCE AS OF 08/12/2021
BBVA USA -PREMIER - #XXXX0276
Memo
SB2 Compliance - 3 Months
Engineering Fees - 2 Months
Bookkeeping Fees - 2 Months
Legal Fees - 2 Months
Service Charge
Amount
250.00
0.04
(750.00)
(5,645,21)
(6,003.65)
(12,689.35)
(0.04)
Balance
$54,212.10
250.04
(25,088.25)
$29,373.89
2
Num
Rock Prairie MD No. 2 - CPF
Cash Flow Report - Checking Account
As of August 12, 2021
Name Memo Amount Balance
BALANCE AS OF 06/11/2021 $100.00
Receipts
Interest Eamed on Checking
Total Receipts
0.06
Disbursements
Fees BBVA USA Service Charge (0.06)
Total Disbursements
0.0E
(0.06''
BALANCE AS OF 08/12/2021 $100.00
BBVA USA-CHECKING-#)XXX7782
3
Financial Institution
(Acct Number)
Fund: Operating
Checking Account(s)
BBVA USA -PREMIER (XXXX0276)
Fund: Capital Projects
Money Market Funds
TEXAS CLASS (XXXX0002)
Checking Account(s)
BBVA USA -CHECKING (XXXX7782)
Fund: Debt Service
Money Market Funds
BBVA USA -DEBT (XXXX8126)
TEXAS CLASS (XXXX0001)
Rock Prairie Management District No. 2
Account Balances
As of August 12, 2021
Issue Maturity Interest
Date Date Rate
04/06/2021
0.00 %
Totals for Operating Fund:
0.05 %
0.00 %
Account
Balance
29,373.89 Checking Account
$29,373.89
79,411.01 2021 Road
100.00 Checking Account
Totals for Capital Projects Fund: $79,511.01
01/15/2021 0.00 % 500.00 Road
04/06/2021 0.05 % 64,797.83 Road
Totals for Debt Service Fund: $65,297.83
Grand total for Rock Prairie Management District No. 2: $174,182.73
Notes
Rock Prairie MD No. 2
Capital Projects Fund Breakdown
8/12/2021
Net Proceeds for All Bond Issues
Receipts
Series 2021 Road - Bond Proceeds
Series 2021 Road - Interest Earnings
Disbursements
Series 2021 Road - Disbursements (Attached)
Total Cash Balance
Balances by Account
Checking - BBVA USA (7782)
Series 2021 Road - TX Class (0002)
Total Cash Balance
Balances by Bond Series
Series 2021 Road - Bond Proceeds
Total Cash Balance
$2,500,000.00
12.27
(2,420,501.26)
S79,511.01
$100.00
79,411.01
$79,511.01
$79,511.01
$79,511.01
Remaining Costs/Surplus By Bond Series
Series 2021 Road - Surplus & Interest Balance
Total Remaining Costs/Surplus
$79,511.01
$79,511.01
5
Revenues
14100
14350
14380
Developer Advance
Maintenance Tax Collections
Interest Earned on Checking
Total Revenues
Expenditures
16330 Legal Fees
16340 Auditing Fees
16350
16430
16450
16455
16460
16470
16480
16520
16530
Engineering Fees
Bookkeeping Fees
Legal Notices & Other Publ.
SB 2 Expenses
Printing & Office Supplies
Filing Fees
Delivery Expense
Postage
Insurance & Surety Bond
16540 Travel Expense
16560 Miscellaneous Expense
Total Expenditures
Rock Prairie MD No. 2 - GOF
Actual vs. Budget Comparison
July 2021
July 2021 June 2021 - July 2021 Annual
Actual Budget Over/(Under) Actual Budget Over/(Under) Budget
0
0
0
0
0 0 0 0 0 19,207
0 0 0 0 0 115,323
4 (4) 0 8 (7) 45
4 (4) 0 8 (7) 134,575
1,464 5,000 (3,536) 10,976 10,000 976 60,000
0 0 0 0 0 0 11,800
0 2,500 (2,500) 2,043 5,000 (2,957) 30,000
3,934 1,750 2,184 5,724 3,500 2,224 21,000
0 0 0 0 0 0 1,000
250 250 0 500 500 0 3,000
66 75 (9) 268 150 118 900
294 46 248 1,251 92 1,159 550
46 42 5 193 83 110 500
5 4 1 13 8 5 50
0 0 0 0 0 0 3,800
0 108 (108) 0 217 (217) 1,300
50 56 (6) 269 113 156 675
6,109 9,831 (3,723) 21,236 19,663 1,573 134,575
Excess Revenues (Expenditures) ($6,109) ($9,828) $3,719 ($21,236) ($19,655) ($1,581) $0
6
Rock Prairie MD No. 2 - GOF
Balance Sheet
As of July 31, 2021
ASSETS
Current Assets
Checking/Savings
11100 • Cash in Bank
Total Checking/Savings
Other Current Assets
11520 - Maintenance Tax Receivable
11750 - Due From Tax Account
Total Other Current Assets
Total Current Assets
TOTAL ASSETS
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
12000 - Accounts Payable
Total Accounts Payable
Other Current Liabilities
12800 • Deferred Inflows
/
Jul 31, 21
54,462
54,462
848
(8,171)
(7,323)
47,139
47,139
24,838
24,838
848
Total Other Current Liabilities 848
Total Current Liabilities 25,686
Total Liabilities 25,686
Equity
13010 • Unallocated Fund Balance
Net Income
Total Equity
TOTAL LIABILITIES & EQUITY
42,689
(21,236)
21,453
47,139
7
Rock Prairie Management District No. 2
District Debt Service Payments
08/01/2021 - 08/01/2022
Paying Agent Series Date Due Date Paid Principal Interest Total Due
Debt Service Payment Due 09/01/2021
Bank of New York 2021 - Road 09/01/2021 0.00 26,326.04 26,326.04
Total Due 09/01/2021 0.00 26,326.04 26,326.04
Debt Service Payment Due 03/01/2022
Bank of New York 2021- Road 03/01/2022 0.00 31,591.25 31,591.25
Total Due 03/01/2022 0.00 31,591.25 31,591.25
District Total $0.00 $57,917.29 $57,917.29
8
,s ' .Mu ' c :I AL AccouNi`
"sr Colvs u :Tuk4CIa LP,
Rock Prairie Management
District No. 2
Quarterly Investment Inventory Report
Period Ending May 31, 2021
BOARD OF DIRECTORS
Rock Prairie Management
District No. 2
Attached is the Quarterly Investment Inventoty Report for the
Period ending May 31, 2021.
This report and the District's investment portfolio ate in compliance with the
investment strategies expressed in the Districts's investment policy, and the
Public Funds Investment Act.
I, hereby certify that, pursuant to Senate Bill 253 and in connection with the
preparation of the investment report, I have reviewed the divestment lists
prepared and maintained by the Texas Comptroller of Public Accounts, and the
District does not own direct or indirect holdings in any companies identified on such lists.
Mark M. Burton
(Investment Officer)
Grua Lewis
(Investment Officer)
COMPLIANCE TRAINING
FIB 675 states the Investment Officer must attend at least one training seminar for (6) six hours
Within twelve months of taking office and requires at least (4) four hours training within each (2)
two year period thereafter.
INVESTMENT OFFICERS CURRENT TRAINING
Mark M. Burton November 5, 2011 (Texpool Academy 10 Hours)
November 5, 2013 (1expool Academy 10 Hours)
November 27, 2015 (Texpool Academy 10 Hours)
December 26, 2017 (Texpool Academy 10 Hours)
January 9, 2020 (TexPool Academy 12 Hours)
Ghia Lewis October 25, 2011 (1'expool Academy 10 Hours)
November 7, 2013 (Cexpool Academy 10 Hours)
November 5, 2015 (Texpool Academy 10 Hours)
November 6, 2017 (Texpool Academy 10 Hours)
November 5, 2019 (Texpool Academy 10 Hours)
1281 Brittmoore Road • • Houston, Texas 77043 • Phone: 713.623.4539 • Fax: 713.629.6859
9
Rock Prairie Management District No. 2
Summary of Money Market Funds
03/01/2021 - 05/31/2021
Fund: Capital Projects
Financial Institution: TEXAS CLASS
Account Number: XXXX0002 Date Opened: 04/06/2021 Cturent Interest Rate: 0.08%.
Date Description Begin Balance Cash Added Cash Withdrawn Int. Eamed End Balance
03/01/2021 0.00
03/31/2021 0.00
04/30/2021 0.00
05/13/2021 FROM BI3VA CHECKING 84409.08
05/31/2021
MrWnde Mall, ox 8cpa,aag Mnk t Valaea
Certificates of-Deposita: Rau Value Plus Accused Luanrt
S¢ondca/Dleeet Govemscat Obligatiotu: Market Value Quoted by de Artie. of the&runty and Con Gonad in Wooing
Public Pond tnvuenent Pool/MM Accounts B.Utaes Book Woe =Comm nhhet
Totals for AccountXXIDC0002:
Totals for Capital Protects Fund:
10
3.41
50.00 $84,609.08 $3.41 $84,61249
$0.00 384,609.08 $3.41 $84,612.49
Rock Prairie Management District No, 2
Summary of Money Market Funds
03/01/2021 - 05/31/2021
Fund: Debt Service
Financial Institution: BBVA USA -DEBT -
Account Number. XIODL8126 Date Opened: 01/15/2021 Curren Interest Rate: 0.00%
Date Description Be win Balance Cash Added Cash Withdrawn Int. Earned End Balance
03/01/2021 0.00
03/31/2021 0.00
04/13/2021 Set 2021 Rd Proceeds 65,286.58
04/30/2021
0.00
05/01/2021 0.32
05/13/2021 TO TC 0001 (64,788.58)
05/15/2021 (0.32)
Totals for Account)OaQ18126: $0.00 $65,288.58 ($64,788.90) $0.32 $500.00
Financial Institution: TEXAS CLASS
Account Number: XXXX0001 Date Opened:04/06/2021 Current Interest Rate:0.08%
Date Description Begin Balance Cash Added Cash Withdrawn Int. Earned End Balance
03/01/2021
0.00
03/31/2021 0.00
04/30/2021
0.00
05/13/2021 FROM BBVA 64,788.58
05/31/2021 2.61
Totals for Account 700XX0001: $0.00 $64,788.50 $2.61 S64,791.10
Totals for Debt Service Fund: $0.00 $130,077.16 ($64,788.90) $2.93 $65,291.19
Methods U.ed Por Reporting Model Vduu
Ccrlificalca of Deposits Pun Value Pku Accrued Intense
SecuckindDines Goverment Obkgadooc M..ket Value Quoted by the Seller of the Sccmtl and Continued in Writing
Public Fund Irm mat Pool/h0 Amon o: Balance m Book Value= Current Market
11
MUNICIPAL ACCOUNTS
& CONSULTING, L.P.
BOARD OF DIRECTORS MEMO
New Depository Bank — Central Bank
HIGHLIGHTS
• After extensive research and interviews with multiple banks, MAC has determined that
Central Bank met the necessary security requirements for public funds, has the most
knowledgeable governmental department, and provided a competitive fee structure.
Therefore, MAC is recommending Central Bank as the new depository and to begin
transitioning Districts at the next regularly scheduled Board meeting.
• BBVA has been acquired by PNC bank effective roughly June 3, 2021.
• The Conversion from BBVA to PNC will take place over the weekend of October 8, 2021
(Columbus Day Weekend).
• After October 8, BBVA will no longer exist and all BBVA accounts will be issued a new PNC
account number. PNC will still honor any outstanding checks written on a BBVA account that
clears after October 8, 2021, until stale dated. MAC is recommending closing BBVA accounts
on/before December 31, 2021,
TIMELINE
• Mark Burton (Owner of Municipal Accounts & Consulting) was contacted by BBVA in late April
2021 and was advised that BBVA is under contract to be purchased by PNC. He was further
advised that, in all likelihood, there is a high chance that PNC will be eliminating their public
funds department by December 31, 2021.
• MAC immediately created a Request For Proposals, soliciting input from consultants,
particularly the operators (lockboxes) and attorneys (Depository Pledge Agreements and
Collateral Security Agreements).
• During the month of May, MAC met with over a dozen banks that showed interest in being the
public fund depository. The banks biggest stumbling blocks in submitting proposals were: (i)
with the current interest rate environment there is a tremendous cost to the bank for keeping
public funds over and above normal commercial/retail clients, (ii) the public funds volume of
activity requires significant amounts of collateral that the bank may not have or have access
to, and (iii) the banks do not have the personnel needed to handle the accounts.
• On June 3, 2021 (immediately after the purchase announcement by PNC of BBVA), Mark
Burton met with the PNC/BBVA transition team to discuss the options going forward from PNC
to evaluate if districts could stay with PNC. PNC/BBVA were under strict SEC rules not to
discuss the acquisition until after it closed.
12
■ Highlights of that meeting:
• PNC will disband the public funds group in Houston;
• Public funds will be handled just as all other retail customers with no specific personnel
knowledge or experience of public funds;
• Bookkeepers will be required to monitor the collateral, if necessary, rather than the
bank (which is standard practice). This would also require daily notification from
Operators and Tax Assessors to the Bookkeeper to notify of incoming deposit totals.
The level of additional work on all Consultants would become cost prohibitive to each
District.
• All questions, inquiries, etc. will be handled by their 1-800 help desk in Pittsburgh;
• While there were several other hurdles, these points were enough to warrant a change
in the Districts depository account.
• MAC's selection process took the approach of selecting a bank based on a similar order of
priorities under the Public Funds Investment Act which is:
1. Security (preservation of principal);
2. Liquidity;
3. Interest rate.
• MAC prioritized:
1. Security - can the chosen bank properly and effectively collateralize deposits, and is
the chosen bank large and sound enough to handle the volume of deposits and
transactions.
2. Experience — does the chosen bank have experience in public funds, significant
knowledge of utility districts and a large enough team to handle all the accounts in a
timely basis.
3. Rate/Bank fees - As noted above, ALL banks proposing services in the public funds
arena have the added cost of administration and collateral required for public funds.
All banks acknowledged that they will be charging fees for all accounts.
MAC recommends moving the District's Depository Bank to Central Bank for the following
reasons:
• Central Bank (formerly Riverway Bank) is an A rated bank and has the capacity
to handle the volume of deposits/collateral for Utility Districts;
• Central Bank has a dedicated team of 6 (and have agreed to add another team
member) that focuses solely on the water district industry. Two of the Bank's
Vice -Presidents have 36 years and 21 years of direct experience with the water
district industry;
• Central Bank already has a legally approved Depository Pledge
Agreement/Collateral Security Agreement within our industry. Given our
shortened conversion window that was moved from December 31 to October 8,
2021, this helps in the acceleration of moving accounts;
• Central Bank already works with most Bookkeepers in the MUD industry so
procedures, documents, online security access, etc. is already familiar to them.
MAC already has many Districts with Central Bank so MAC is directly
knowledgeable with Central Bank's processes and procedures;
13
OTHER FAQ's
• MAC feels that going out for an additional RFP will only cause more delay, increased costs to
the District and result in the same outcome. MAC has found that using national and small
local banks, with not as much experience or knowledge of our industry, only causes higher
costs of operations for the consultants and untimely delays in processing that the District
ultimately absorbs.
• Once MAC has all the required signed documentation from all Directors, MAC will submit the
Bank Packet to Central Bank to establish the Districts primary depository bank at which point
checks will no longer be drawn on a BBVA account. The only activity that will occur in the
BBVA/PNC accounts will be internal wire transfers from lockboxes and remaining balance
transfers to District accounts at Central Bank.
• Emergency Resolutions authorizing Tess than 3 signatures and/or authorizing the bookkeeper
to sign checks will STILL be effective once moved to Central Bank. A simple letter from the
District and signed by the President is all that is required once the Governor and/or Board
elect to rescind the Emergency Order.
• Central Bank uses ICS (Insured Cash Sweeps) to handle the deposits over the FDIC limit of
$250,000. The FDIC insures up to $250,000 of a customer's deposit accounts in a given
insurable capacity at an FDIC -insured depository institution. Your ICS funds are divided into
amounts under the standard FDIC maximum and placed with other ICS Network members —
each an FDIC -insured institution. This makes your deposit eligible for FDIC insurance at each
member bank. Funds placed through Insured Cash Sweep are deposited only in FDIC -insured
banks. Insured Cash Sweep has been thoroughly tested, and reciprocal deposit placement
services are recognized both in the FDIC regulations, PFIA, and in state statutes and
regulations throughout the United States.
• For BBVA accounts converted to PNC Accounts in October, MAC will work to close these
accounts on/before December 31, 2021. MAC has chosen this date to allow outstanding
checks to clear and to ensure a seamless transition of operator lockboxes.
14
A
C
MUNICIPAL ACCOUNTS
CONSULTING, L.P.
ATTORNEY MEMO
New Depository Bank — Central Bank
HIGHLIGHTS
• BBVA has been acquired by PNC bank effective roughly June 3, 2021.
• The Bank's Conversion from BBVA to PNC will take place over the weekend starting close of
business on October 8, 2021 (Columbus Day Weekend).
• After October 8, 2021, BBVA will no longer exist and all BBVA accounts will be issued a new
PNC account number. PNC has advised that they will still honor any outstanding checks
written on a BBVA account that clears through December 31, 2021.
• MAC is recommending moving all BBVA accounts over to Central Bank effective at each
Districts next regularly scheduled Board meeting commencing July 1, 2021.
• Any District that does not move to Central Bank by October 8, 2021, will automatically roll
over into a new PNC account.
TIMING
• Commencing July 1, 2021, or at the next regularly scheduled Board meeting:
o All Districts with BBVA accounts will need to add Agenda items that will consider
making Central Bank their new primary depository bank and related documentation;
o It is imperative that we aet Board authorization for all the documents, even if it means
"Subject to Attorney Review" at their next meeting. This will allow MAC (and to work
with the Attorney, if applicable) to get all the documentation signed before the next
Board meeting.
o Agenda Items that MAC/Central will need approval for (Attorney's may have their own
agenda item language for this):
• Master Signature Card
• Master Signature Card Resolution
• Resolution Authorizing Consultant
• Resolution Authorizing a new Depository Account
• Depository Pledge Agreement/Collateral Security Agreement with Central
Bank (even if there is one in place with a lockbox or tax assessor)
= ICS Agreement
▪ Change in Escrow Bank (if applicable)
• Update Authorized Broker/Dealer List to add IntraFi Network Deposits and ICS,
if not already included.
• Update Investment Policy to add ICS as an authorized investment, if not
already included.
• MAC will continue to keep BBVA accounts open even after the October 8, 2021 transition to
allow any outstanding checks to clear. MAC will attempt to close ALL BBVA/PNC accounts
on/or before December 31, 2021.
• Central Bank will honor the District's Emergency Resolutions for reduced signatures while
under the Governor's Emergency Declaration. Once the Board or Governor decide to rescind
the Emergency Resolution, MAC/Central will ONLY require a simple letter signed by the
President to rescind the Emergency Resolution. This will allow for District's that are meeting
virtually to continue using the reduced signatures.
GENERAL Q&A
• MAC will be providing a list of all Districts that currently have BBVA accounts to each law firm.
• Once Central Bank is established as the primary depository bank, checks issued the following
month will be issued from the new Central Bank account or when all the bank documentation
can be executed. For any remaining funds held in BBVA/PNC, such funds will be moved to
Central Bank (or District account) prior to December 31, 2021.
• For existing BBVA accounts, MAC will no longer request rescinding the Emergency
Resolutions authorizing less than 3 signatures and/or authorizing the bookkeeper to sign
checks. In order to rescind the Emergency Resolution previously adopted by each District,
BBVA is requiring all new "wet" signature cards for each account and that will not be
manageable giving the timing. The BBVA/PNC accounts and the Emergency Resolution at
BBVA/PNC will cease on/before December 31, 2021, when MAC closes all BBVA/PNC
accounts.
• To ensure that we obtain all the correct signatures on documents, MAC will be the hub for
getting signatures on ALL documents from Directors in what we are calling the Bank Packet.
Please send all legal documentation (DPA/CSA's, etc.) to MAC for inclusion in the Bank
Packet prior to the meeting. We understand that most Directors will be signing via MAC courier
service and/or coming to our office if they are still meeting virtually.
• Depository Pledge Agreements/Collateral Security Agreements ("DPA")
o PNC will require new DPA/CSA's for any District accounts remaining at PNC after
October 8, 2021.
o MAC and the Attorney for the District need to evaluate these Districts carefully to
determine if a DPA/CSA is required. It is MAC's understanding that PNC may be willing
to modify their standard DPA/CSA form
• Lockbox Accounts
o MAC will coordinate with Operators that have BBVA lockboxes to change the transfer
of deposits (sweeps) to Central Bank. MAC is not handling the change of BBVA
lockboxes, as this is the responsibility of the District Operator.
• If the Lockbox account transfers to a new depository, MAC will coordinate
updating the sweep instructions at that time.
• Escrow Accounts
o MAC will coordinate with the District's attorney to determine the procedure for moving
any escrow accounts, if necessary.
This is still a fluid process and we will update you as soon as possible as adjustments become necessary
For Questions — please contact Mark Burton directly by email at mburton[Jmunicioalaccounts.com
EXHIBIT "B"
ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2
ORDER SELECTING DEPOSITORY
The Board of Directors of Rock Prairie Management District No. 2 met on August 12,
2021, in accordance with the duly posted notice of meeting, and the roll was called of the duly
constituted officers and members of said Board, as follows:
Uri Geva, President
Hays Glover, Vice President
Logan Lee, Assistant Vice President
Mark Lindemulder, Secretary
Samuel Kerbel, Assistant Secretary
and all of said persons were present, except Directors Geva and Glover, thus constituting a
quorum, when the following business was transacted:
Director Lindemulder introduced the Order set out below and moved its adoption, which
motion was seconded by Director Kerbel and unanimously carried, with Directors Lee,
Lindemulder and Kerbel voting "aye", and no one voting "no". The Order thus adopted is as
follows:
WHEREAS, there was duly considered the selection of a depository for the District. It
appeared that Central Bank had agreed to act as depository and to comply with all applicable
statutes.
WHEREAS, said bank is duly qualified in all respects to serve as the District's
depository.
NOW, THEREFORE, it is ordered by the Board of Directors of Rock Prairie
Management District No. 2 that said Central Bank be and it is hereby designated, selected and
appointed as a legal depository for the District.
460142_5
IN WITNESS WHEREOF, the President or Vice -President and Secretary or Assistant
Secretary of the District have executed and attested, respectively, this Order on August 12, 2021.
ATTEST:
By:
47et
Secret , B d of Directors
ROCK PRAIRIE MANAGEMENT
DISTRICT NO. 2
By:
President, Board of Directors
460142 5
EXHIBIT "C"
RESOLUTION REGARDING REVIEW OF
ORDER ESTABLISHING POLICY FOR INVESTMENT
OF DISTRICT FUNDS AND APPOINTING INVESTMENT OFFICER
WHEREAS, Rock Prairie Management District No. 2 ("District"), adopted its Order
Establishing Policy For Investment of District Funds and Appointing Investment Officer, dated
December 12, 2019 ("Order"), pursuant to Chapter 2256, Texas Government Code and Section
375.096(4), Texas Local Government Code; and
WHEREAS, Chapter 2256, Texas Government Code, requires the District to perform an
annual review of its investment policy and investment strategies included within the Order; and
WHEREAS, the District has, on the date hereof, performed said review.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the Board of Directors of Rock
Prairie Management District No. 2, that the policies, procedures, provisions and investment
strategies set forth in the Order are hereby revoked and the attached Order Establishing Policy
For Investment of District Funds and Appointing Investment Officer be adopted.
PASSED AND ADOPTED ON THIS 12th day of August, 2021.
ATTEST:
By:
Secretary, Bof Directors
0:1T Dist!
x. ..*
•
■ rz
ROCK PRAIRIE MANAGEMENT
DISTRICT NO. 2
By:
President, Board of Directors
456036_7
ORDER ESTABLISHING POLICY FOR
INVESTMENT OF DISTRICT FUNDS
AND APPOINTING INVESTMENT OFFICER
WHEREAS, ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 (the "District") is a
body politic and corporate and a governmental agency of the State of Texas, operating under and
governed by the provisions of Chapter 3909, Texas Special District Local Laws Code, and
Sections 52 and 52-a of Article III and Section 59 of Article XVI of the Texas Constitution; and
WHEREAS, Chapter 2256, Texas Government Code (sometimes referred to herein as the
"Public Funds Investment Act"), and Section 375.096(4), Texas Local Government Code,
require that the Board of Directors of the District adopt rules, regulations and policies governing
the investment of District funds and designate one or more of its officers or employees to be
responsible for the investment of such funds.
NOW, THEREFORE, IT IS ORDERED BY THE BOARD OF DIRECTORS OF ROCK
PRAIRIE MANAGEMENT DISTRICT NO. 2 THAT the policies, procedures and provisions set
forth herein be and are hereby ADOPTED, and that any order, and every amendment thereto,
heretofore adopted by the Board of Directors establishing policies for the investment of District
funds and appointing an investment officer shall be and are hereby revoked and superseded
effective as of August 12, 2021, the effective date of this Order.
Section 1. Purpose. The purpose of this Order Establishing Policy for Investment of
District Funds and Appointing Investment Officer (the "Investment Policy") is to adopt rules and
regulations which set forth the District's policies with regard to the investment and security of
District funds or funds under the District's control. It is further the purpose of this Investment
Policy to ensure that purchases and sales of District investments are initiated by authorized
individuals, conform to investment objectives and regulations, and are properly documented and
approved, and to provide for the periodic review of District investments to evaluate investment
performance and security, all as required by applicable law.
Section 2. Appointment of Investment Officer: Standard of Care. Mark M. Burton and
Ghia Lewis of Municipal Accounts & Consulting, L.P., the District's bookkeeper, shall be and
are each hereby individually designated the Investment Officer of the District, responsible for the
supervision of investment of District funds pursuant to this Investment Policy. In the
administration of their duties hereunder, the District's Investment Officer shall exercise the
judgment and care, under prevailing circumstances, that a person of prudence, discretion and
intelligence would exercise in the management of his or her own affairs, not for speculation, but
for investment, considering the probable safety of capital and the probable income to be derived;
however, the District's Board of Directors shall retain ultimate responsibility as fiduciaries of the
District's assets. The District's Board of Directors, Tax Assessor -Collector, Financial Advisor
and other consultants shall be authorized to assist the Investment Officer in the carrying out of
the duties of Investment Officer.
Section 3. Appointment of Investment Officer and Tax Assessor -Collector for
Investment of District Funds. Pursuant to Section 49.157(b), Texas Water Code, the Board of
Directors hereby designates the District's Investment Officer as the authorized representative of
the District to (a) invest and reinvest the funds of the District; (b) withdraw District funds from
appropriate accounts of the District for the investment of same in accordance with the terms of
this Investment Policy; and (c) arrange for adequate security for uninsured deposits or funds of
the District pursuant to and in compliance with a Public Funds Depositor Collateral Security
Agreement which shall be substantially in the form attached hereto as Exhibit "B" or such other
form that has been approved through formal action of the Board of Directors, and to execute said
Agreement(s) and any documentation required in connection therewith on behalf of the District.
To the extent that the District's Tax Assessor -Collector is required to perform any of the
functions set forth in (a), (b) or (c) above, the Tax Assessor -Collector shall do so in accordance
with the provisions of the Public Funds Investment Act and this Investment Policy, and under the
supervision of and in consultation with the District's Investment Officer.
Section 4. Authority and Duties of Investment Officer. The following rules shall apply
to the District's Investment Officer:
A. The Board of Directors hereby instructs the Investment Officer for the
District to maintain the investments of the District in a manner consistent with the rules
and regulations set forth in this Investment Policy and the Public Funds Investment Act,
as amended.
B. No persons, other than those designated in Section 3 above, may deposit,
invest, transfer, withdraw or otherwise manage District funds without express written
authority of the District's Board of Directors.
C. The Investment Officer for the District shall invest and reinvest District
funds only in those investments authorized under this Investment Policy or by the Board,
and only in the name of and solely for the account of "Rock Prairie Management District
No. 2." The Bookkeeper and Investment Officer for the District shall be authorized to
wire transfer funds of the District only (1) for the purchase of investments solely in the
name of " Rock Prairie Management District No. 2," (2) for the transfer of all or any
portion of the principal of or interest earnings or profits or gains on any investment of the
District to one or more previously authorized and established accounts of " Rock Prairie
Management District No. 2," (3) for the transfer of District funds to any paying agent of
the District for the payment of principal and semiannual interest payments on any
outstanding bonds of the District and for the payment of paying agent fees relative to
same, or (4) for other purposes, such as the payment of District bills, pursuant to a
resolution or other express written instructions of the District's Board of Directors.
D. The Investment Officer for the District shall, not later than the first
anniversary of the date the Investment Officer takes office or assumes such duties, attend
a training session of at least six (6) hours of instruction relating to the Investment
Officer's responsibilities under the Public Funds Investment Act, as amended, from an
independent source approved by the Board of Directors of the District or the Board's
-2-
386299_8
Investment Committee, and thereafter shall attend at least four (4) hours of additional
investment training within each two-year period that begins on the first day of the
District's fiscal year and consists of the two consecutive fiscal years after that date. Such
investment training must- include education in investment controls, security risks,
diversification of investment portfolio, strategy risks, market risks, and compliance with
the provisions of the Public Funds Investment Act, as amended.
E. Not less frequently than each fiscal quarter, the Investment Officer shall
prepare and submit to the Board of Directors of the District a written report of investment
transactions for all invested funds of the District for the preceding reporting period. Such
report must (1) describe in detail the investment position of the District on the date of the
report; (2) be prepared Investment Officer for the District; (3) be signed by the
Investment Officer of the District; (4) contain a summary statement of each pooled fund
group, if any has been created by the District, that states the beginning market value for
the reporting period, ending market value for the period, and fully accrued interest for the
reporting period; (5) state the book value and market value of each separately invested
asset of the District at the end of the reporting period by the type of asset and fund type
invested; (6) state the maturity date of each separately invested asset that has a maturity
date; (7) state the current rating assigned to each investment, investment vehicle, or
investment security by a nationally recognized investment rating firm, nationally
recognized credit rating agency or nationally recognized rating service, as appropriate;
(8) state the account or fund or pooled group fund, if the District has any, for which each
individual investment was acquired; and (9) state the compliance of the District's
investment portfolio as it relates to the investment strategy for each account of the
District as set forth in this Investment Policy and relevant provisions of the Public Funds
Investment Act, as amended. Such report must be presented to the Board of Directors of
the District within a reasonable period of time after the end of each fiscal quarter. If the
District invests in other than (i) money market mutual funds, (ii) investment pools, or
(iii) accounts offered by its depository bank in the form of certificates of deposit, or
money market accounts or similar accounts, all of the type authorized under Section 6 of
this Investment Policy, the reports prepared under this Section 4.E. shall be formally
reviewed at least annually by an independent auditor, and the result of such review shall
be reported to the District's Board of Directors by that auditor.
F. In the event an investment or investment vehicle in which the District has
placed funds, or the security therefor, is required to maintain a minimum rating pursuant
to the Public Funds Investment Act fails to maintain the minimum required rating, the
Investment Officer shall take all prudent measures consistent with this Order to liquidate
the investment and reinvest such funds in a conforming investment, if appropriate.
G. In the event District funds are invested or reinvested in Certificates of
Deposit, the Investment Officer or Tax Assessor -Collector, as applicable, shall solicit
bids from at least two (2) bidders, either orally, in writing, electronically or in any
combination of those methods, for each such investment.
-3-
386299 8
H. All purchases of investments, except investments in investment pools or in
mutual funds, shall be made on a delivery versus payment basis.
I. Not less frequently than each fiscal quarter, and as close as practicable to
the end of such reporting period, the District's Investment Officer shall determine the
market value of each District investment. Such market values shall be included in the
written reports submitted to the District's Board of Directors pursuant to Section 4.E
hereinabove. The following methods shall be used:
(1) Certificates of deposit shall be valued at their face value plus any accrued
but unpaid interest.
(2) Shares in money market mutual funds and investment pools, if any, shall
be valued at par plus any accrued but unpaid interest.
(3) Other investment securities may be valued in any of the following ways:
(a) the lower of two bids for such security obtained from qualified
securities brokers/dealers with whom the District may engage in
investment transactions;
(b) the average of the bid and asked prices for such security as
published in The Wall Street Journal or The New York Times;
(c) the bid price for such security published by any nationally
recognized security pricing service; or
(d) the market value quoted by the seller of the security.
J. A written copy of the District's Investment Policy must be presented to
any business organization offering to engage in an investment transaction with the
District. For purposes of this section J., the term "business organization" means an
investment pool or an investment management firm under contract with the District to
invest or manage the District's investment portfolio that has accepted authority from the
District to exercise investment discretion in regard to the District's funds. The "qualified
representative" of the business organization offering to engage in an investment
transaction with the District shall execute a written instrument in a form acceptable to the
District substantially to the effect that the business organization has received and
reviewed the Investment Policy of the District and acknowledges that such business
organization has implemented reasonable procedures and controls in an effort to preclude
investment transactions conducted between the District and such organization or firm that
are not authorized by the District's Investment Policy, except to the extent that such
authorization is dependent on an analysis of the makeup of the District's entire investment
portfolio, requires an interpretation of subjective investment standards, or relates to
investment transactions of the District that are not made through accounts or other
contractual arrangements over which the business organization has accepted discretionary
-4-
386299_8
investment authority. The District's Investment Officer may not acquire or otherwise
obtain any authorized investment described in Section 6 hereof from a business
organization that has not delivered to the District the written statement acknowledging
receipt of this Investment Policy in a form substantially similar to that attached hereto as
Exhibit "A" (the "Certificate of Compliance"). For purposes of this Section 4.J., the
"qualified representative" of a business organization offering to engage in an investment
transaction with the District means a person who holds a position with a business
organization, who is authorized to act on behalf of the business organization, and who is
one of the following:
(1) for a business organization doing business that is regulated by or
registered with a securities commission, a person who is registered under the rules
of the National Association of Securities Dealers;
(3) for an investment pool, the person authorized to sign the written
instrument on behalf of the investment pool by the elected official or board with
authority to administer the activities of the investment pool.
The "qualified representative" of an investment management firm under contract with the
District for the investment and management of its public funds is a person who is an
officer or principal of such firm.
K. The Investment Officer for the District shall disclose in writing to the
Board of Directors any (i) "personal business relationship" that they may have with a
business organization offering to engage in an investment transaction with the District, or
(ii) any relationship within the second degree by affinity or consanguinity, as determined
by Chapter 573, Texas Government Code, as amended, to any individual seeking to sell
an investment to the District. Any written disclosure statement filed with the Board of
Directors by the Investment Officer pursuant to this section must also be filed with the
Texas Ethics Commission. For purposes of this Section 4.K., the Investment Officer has
a "personal business relationship" with a business organization if:
(1) the Investment Officer owns ten percent (10%) or more of the
voting stock or shares of the business organization or owns $5,000 or more of the
fair market value of the business organization;
(2) funds received by the Investment Officer from the business
organization exceed ten percent (10%) of the Investment Officer's gross income
for the previous year; or
(3) the Investment Officer has acquired from the business organization
during the previous year investments with a book value of $2,500 or more for
their personal account.
L. In conjunction with the District's annual financial audit, a compliance
audit of management controls on investments and adherence to this Investment Policy
-5-
386299_8
must be performed. In connection with said compliance audit, the Board of Directors
shall review on an annual basis this Investment Policy and its investment strategies. In
connection with said annual review, the District's Board of Directors shall adopt a written
resolution stating that it has reviewed this Investment Policy and the investment strategies
set forth herein, and shall indicate in said resolution either the continuance of this
Investment Policy without amendment or the changes made to the Investment Policy
and/or the investment strategies herein.
M. In addition to all other requirements set forth herein, the Investment Officer for
the District shall invest and reinvest District funds in a manner consistent with Chapter 2270,
Texas Government Code, relative to prohibition of investment or reinvestment of public
funds in publically traded securities of scrutinized companies, as determined by the Texas
State Comptroller, engaging in scrutinized business operations in the Sudan, Iran, or with
a designated foreign terrorist organization. In the event an investment or investment
vehicle in which the District has placed hinds, or the security therefor, requires
divestment in accordance with the requirements of Chapter 2270, Texas Government
Code, the Investment Officer for the District shall sell, redeem, divest, or withdraw all
publically traded securities of the company engaging in scrutinized business operations, all
in accordance with Chapter 2270.
N. Not later than December 31 of each year, the Investment Officer shall
prepare and file on behalf of the District: (i) a publicly available report with the presiding
officer of each chamber of the State Legislature and the State Attorney General
identifying: (a) all investments sold, redeemed, divested, or withdrawn in compliance
with Section 2270.0206, Texas Government Code; (b) all prohibited investments under
Section 2270.0209, Texas Government Code; and (c) summarizing any changes made
with respect to investments of the District exempted from divestment pursuant to Section
2270.0207, Texas Government Code; and (ii) a report with the United States presidential
special envoy to Sudan that identifies investments in Sudan identified in the report filed
with the State Legislature and Attorney General and any changes made under Section
2270.0207 related to those investments. Prior to December 31 of each year, the
Investment Officer shall provide the District with a copy of both reports required by this
subsection, along with evidence of filing same with the required entities.
Section 5. General Investment Principles and Obiectives. All investments of District
funds or funds under the District's control shall be made in accordance with the following
general rules, regulations and policies:
A. Any moneys in any fund of the District or in any fund established by the
Board of Directors in connection with the authorization of the District's bonds, including,
but not limited to, proceeds from the sale of such bonds, which funds are not required for
the payment of obligations due or to become due immediately, shall be invested and
reinvested, from time to time, only in the authorized investments specified in Section 6
hereunder and in accordance with the order(s) of the District authorizing the issuance of
said bonds; provided, however, that all such investments shall be secured in the manner
provided for the security of the funds of municipal utility districts of the State of Texas
(The Public Funds Collateral Act, Chapter 2257, Texas Government Code, as amended)
-6-
386299_8
or in such other manner as may be authorized by law from time to time and otherwise
suitable for the District's needs.
B. The policy of the District is to invest District funds only in instruments which
further the following investment objectives of the District stated in order of importance:
(1) preservation and safety of principal; (2) liquidity; and (3) yield. The District will
continuously attempt to diversify its portfolio to reduce risks. The type, conditions and
maturity date of District investments shall be consistent with the cash flow needs and
operating requirements of the District, as determined from time to time by the Board of
Directors, and consistent with the investment strategy for each District account as set
forth in Section 7 hereunder; provided, however, that in no event shall the maximum
allowable stated maturity of any individual investment owned by the District exceed two
(2) years, unless otherwise specifically set forth in this Investment Policy.
C. If invested in certificates of deposits, the District's funds shall be secured, to
the extent that such funds are not insured by the Federal Deposit Insurance Corporation
or the National Credit Union Share Insurance Fund, by the pledge to the District of
certain types of securities, as determined in the sole discretion of the District, which
under the laws of the State of Texas may be used to secure the deposits of municipal
utility districts, pursuant to and in compliance with a Public Funds Depositor Collateral
Security Agreement which shall be substantially in the form attached hereto as
Exhibit "B", the terms and conditions of which are incorporated herein by reference (the
"Public Funds Depositor Collateral Security Agreement").
D. Securities pledged to the District shall be pledged pursuant to and in
compliance with a Public Funds Depositor Collateral Security Agreement to be entered
into by and between the District and the institution(s) pledging such securities. Securities
pledged to the District shall either be deposited and held in safekeeping at the trust or
safekeeping department of a commercial banking institution located in the State of Texas
not affiliated with the pledging institution(s) or a federal home loan bank, or shall be held
in a restricted securities account, joint safekeeping account or other similar account in a
branch of the Federal Reserve Bank pursuant to any and all applicable regulations,
operating circulars, bulletins and policies of the Federal Reserve Bank, including the
terms and conditions of any applicable forms or agreements, as may exist now or
hereafter be enacted, promulgated or issued by the Federal Reserve Bank. The District's
Investment Officer and Tax Assessor -Collector shall, within the limits of business
practicality and consistent with the Federal Deposit Insurance Corporation Statement of
Policy dated March 23, 1993, (or any subsequent applicable Statement of Policy issued
by the FDIC) relative to the securing of public funds, ensure that the District's uninsured
funds are at all times secured as required by the Public Funds Collateral Act (Chapter
2257, Texas Government Code, as amended) and in the manner set forth in the Public
Funds Depositor Collateral Security Agreement. The District's Investment Officer and
Tax Assessor -Collector are hereby authorized to execute Public Funds Depositor
Collateral Security Agreements and any agreements, documents or forms required by the
Federal Reserve Bank on behalf of the District, as and when required, and to approve the
substitution of securities pledged to the District as collateral pursuant to and in the
-7-
386299_8
manner set forth in any Public Funds Depositor Collateral Security Agreement entered
into by the District.
E. The Board of Directors recognizes that, within the framework of the above
rules, decisions must be made concerning the type and duration of each investment tran-
saction, and that such decisions are best made by the person responsible for implementing
the transaction, based upon the facts and circumstances prevailing at the time. As a guide
to making such decisions, it is hereby declared the policy of the Board of Directors that
priority should be given to proper security of the District's funds over maximizing the
yield on investments. Furthermore, in cases where the rate of return on an investment
security offered by competing banking institutions are substantially equivalent, the
District's Investment Officer shall give preference to those investments and investment
institutions offering the greatest degree of administrative convenience and proximity,
flexibility of investment arrangements and/or similar intangible benefits and community
goodwill.
F. Except as herein provided, nothing herein shall be deemed or construed to
authorize the withdrawal, expenditure or appropriation of funds of the District except by
check or draft signed by three (3) members of the Board of Directors, or as otherwise
provided by applicable statutes or the resolutions, rules, regulations, policies, orders or
proceedings of the Board of Directors. Furthermore, the Board of Directors shall retain
sole responsibility for establishing and implementing, from time to time, this Investment
Policy, and all investment transactions to be undertaken by the District's Investment
Officer pursuant to the Investment Policy shall be subject to the further or more specific
directions, instructions, orders, resolutions or actions of the Board of Directors.
Section 6. Authorized Investments. Subject to the limitations, restrictions and
prohibitions set forth in Chapter 2270, Texas Government Code, the following categories of
investment are authorized for investment of District funds:
A. Obligations, including letters of credit, of the United States or its agencies
and instrumentalities (including the Federal Home Loan Banks);
B. Direct obligations of the State of Texas or its agencies and
instrumentalities;
C. Other obligations, the principal and interest of which are unconditionally
guaranteed or insured by, or backed by the full faith and credit of, the State of Texas, or
the United States or any of their respective 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;
D. Obligations of states, agencies, counties, cities, and other political
subdivisions of any state rated as to investment quality by a nationally recognized
investment rating firm not less than A or its equivalent; provided, however, the District
shall not own or invest in any obligations which it has issued;
-8-
386299_8
E. Interest -bearing banking deposits that are:
(1) guaranteed or insured by the Federal Deposit Insurance
Corporation or its successor or the National Credit Union Share
Insurance Fund or its successor; or
(2) placed through a broker with a main office or branch office located
in the State of Texas that is included on the District's List of
Qualified Brokers or deposited in a depository institution selected
by the District with a main office or branch office located in the
State of Texas, and:
a. the broker or depository institution arranges for the deposit
of the funds in banking deposits in one or more federally
insured depository institutions, regardless of where located,
for the District's account;
b. the full amount of the principal and accrued interest of the
banking deposit is insured by the United States or its
agencies and instrumentalities; and
c. the District appoints as its custodian of such banking
deposits either:
i. the depository institution with a main office or
branch office located in the State of Texas at which
the funds were initially placed by the District;
ii. a custodian meeting the requirements of Section
2257.041(d), Texas Government Code; or
iii. a clearing broker dealer registered with the
Securities and Exchange Commission Rule 15c3-3
(17 C.F.R. Section 240.15c3-3);
F. (1) Certificates of deposit that are issued by a depository institution that
has its main office or a branch office in the State of Texas that are:
(i) guaranteed or insured by the Federal Deposit Insurance
Corporation or its successor or the National Credit Union Share Insurance Fund or
its successor;
(ii) secured by obligations of the type described in Section
2256.010(a)(2), Texas Government Code, as amended, or
-9-
386299_8
(iii) secured in accordance with Chapter 2257, Texas Government
Code, as amended, or in any other manner and amount provided by law for
deposits of the District pursuant to a Public Funds Depositor Collateral Security
Agreement approved and executed by the District; and
(2) Certificates of deposit that are acquired in the manner described in
Section 2256.010(b), Texas Government Code, as amended; provided, however, that each
investment of District funds in the foregoing shall require specific prior approval by the
Board of Directors;
G. Commercial paper with a stated maturity of 365 days or fewer from the
date of issuance which meets the requirements set forth in Section 2256.013, Texas
Government Code, as amended;
H. No-load money market mutual funds that:
(1) are registered with and regulated by the Securities and Exchange
Commission;
(2) provide the District with a prospectus and other information
required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.)
or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.);
(3) comply with federal Securities and Exchange Commission Rule
2a-7 (17 C.F.R. Section 270.2a-7), promulgated under the Investment Company
Act of 1940 (15 U.S.C. Section 80a-1 et seq.);
I. Investment pools which meet the requirements set forth in Section
2256.016 and Section 2256.019, Texas Government Code, as amended.
Section 7. Investment Strategies. District investments shall be made upon the evaluation
of the specific investment objectives and strategies of each account of the District, with the
primary objective for the selection of any District investment being the understanding of the
suitability of such investment to the financial requirements of the District. The District's
investment strategy for each of its accounts is as follows:
A. Operating/General Account. The operating/general account is used for all
operations and maintenance needs of the District and funds therein shall be invested to
meet the operating and cash flow requirements of the District as determined by the
District's Board of Directors. The highest priorities for this account are the liquidity and
marketability of an investment if the need arises to liquidate the investment before its
maturity. Of equal importance is the preservation and safety of the principal of
investments in the operating account. When these priorities are met, the yield on
investments held in the operating/general account will next be considered.
-10-
386299_8
B. Debt Service/Bond Fund Account. The District's debt service/bond fund
account is used to pay the District's debt service on its outstanding bonds. The highest
priority for this account is the preservation and safety of principal. Since the District
knows the amount of its debt service requirements and when it becomes due, investments
for the debt service/bond fund account should be structured to coincide with the amount
and timing of the debt service requirements. When the preservation and safety of
principal and liquidity considerations for debt service purposes are assured, including the
marketability of debt service/bond fund account investments in the event the need arises
to liquidate an investment before its maturity, the yield on debt service/bond fund account
investments should be considered. Since the amount of District funds in the debt
service/bond fund account can be significant, diversification of the debt service/bond
fund account investment portfolio may be necessary. The District may easily liquidate
investments in an investment pool and therefore such investments may be appropriate in
combination with longer term investments in the debt service/bond fund account.
C. Capital Proiects/Construction Fund Account. The capital
projects/construction fund account is used to pay for capital improvements of the District.
The highest priority for this account is the preservation and safety of principal. In the
event that funds held in the capital projects/construction fund account are for particular
improvement projects that have been previously identified by the District's Board of
Directors, the Board will have an idea of the approximate time when disbursements will
be required to be made from this account. In this situation, investments in the capital
projects/construction fund account should be structured so that they mature or can be
liquidated on or about the dates that disbursements are expected to be made. Once the
safety of principal and liquidity and marketability of capital projects/construction fund
account investments which are to match certain disbursement dates are assured, the yield
on such investments may be considered. Since District funds in the capital
projects/construction fund account may not be needed for a year or more, longer term
instruments should be considered to increase yield. However, if funds available in the
District's capital projects/construction fund account are surplus construction funds from
prior bond issues or interest earnings on such funds and are not earmarked for specific
improvement projects, but rather viewed by the District's Board of Directors as an
emergency reserve fund for major repairs or rehabilitation projects, investments in the
capital projects/construction fund account, at least to the extent that they are for
emergency reserve purposes, should be kept in relatively short term investments that can
be easily marketed and liquidated if necessary, such as investment pools. Alternatively,
bond proceeds that may be deposited in the District's capital projects/construction fund
account for reimbursement to a developer and which may be in the capital
projects/construction fund account for only one or two days, should be kept in the most
liquid investment available. Investment diversification for large amounts of District
funds that may be deposited into the capital projects/construction fund account for only
one or two days may be achieved through the use of an investment pool. Since
investment pools are short term in nature, they would normally be used for District funds
in this account only if the District knows that it will be dispersing funds in a relative short
period of time. However, on some occasions the yield on investment pools is higher than
-11-
386299_8
on longer term investments, so their use may be optimal for funds in the capital
projects/construction fund account.
Section 8. Miscellaneous.
A. In the event of any conflict or inconsistency between the terms of this
Investment Policy and applicable requirements of law, such conflict or inconsistency will
be resolved in favor of the more restrictive of this Investment Policy or the applicable
requirements of law. In the event of any ambiguity or uncertainty as to the intent and
application of any part, section, paragraph or provision hereof, a written request for
clarification or approval of a proposed action describing such circumstances shall be
submitted to the Board of Directors for a decision as to a proper course of action.
B. The rules, regulations and policies set forth herein shall be and remain in
full force and effect unless and until amended, revised, rescinded or repealed by action of
the Board of Directors. The District's Board of Directors specifically reserves the right to
change, alter or amend any provision of this Investment Policy at any time.
C. The provisions of this Investment Policy are severable, and if any
provision or part of this Investment Policy or the application thereof to any person or
circumstances shall ever be held by any court of competent jurisdiction to be invalid or
unconstitutional for any reason, the remainder of this Investment Policy and the
application of such provision or part of this Investment Policy shall not be affected
thereby.
The President or Vice President is authorized to execute and the Secretary or Assistant
Secretary to attest this Investment Policy on behalf of the Board and the District.
PASSED AND ADOPTED this the 12th day of August, 2021.
ATTEST:
�P��•��, Bo of Directors
..- 1"! ‘ Qti
8 s
-12-
ROCK PRAIRIE MANAGEMENT
DISTRICT NO. 2
By:
President, Board of Directors
386299_8
EXHIBIT "A"
CERTIFICATE OF COMPLIANCE FROM SELLERS OF INVESTMENTS
AS REOUIRED BY THE PUBLIC FUNDS INVESTMENT ACT
To: Rock Prairie Management District No. 2 (the "District")
From:
[Name of the person
offering or the "qualified
representative" of the business
organization offering to engage
in an investment transaction
with the District or of the
District's Investment Manager]
[Title of such person]
of (the "Business Organization")
[Name of financial institution,
business organization or
investment pool]
Date: , 20.__.
In accordance with the provisions of the Public Funds Investment Act, Chapter 2256,
Texas Government Code, as amended, I hereby certify that:
1. I am an individual offering to enter into an investment transaction with the
District or a "qualified representative" of the Business Organization offering to enter into an
investment transaction with the District, as applicable, as such terms are used in the Public Funds
Investment Act, Chapter 2256, Texas Government Code, as amended (the "Seller"), and that
Seller meets all requirements under such Act to execute this Certificate.
2. The Business Organization is an investment pool or an investment management firm
under contract with the District to invest or manage the District's investment portfolio that has
accepted authority from the District to exercise investment discretion in regard to the District's funds.
3. Seller anticipates selling to the District investments that are authorized by the
District's Order Establishing Policy for Investment of District Funds and Appointing Investment
Officer, dated August 12, 2021 (the "Investment Policy") and the Public Funds Investment Act
(collectively, the "Investments").
4. I or a registered investment professional that services the District's account, as
applicable, have received and reviewed the District's Investment Policy now in full force and
effect. The District has further acknowledged that Seller may rely upon the Investment Policy
until the District provides Seller with any amendments to or any newly adopted form of the
Investment Policy.
5. Seller has implemented reasonable procedures and controls in an effort to
preclude investment transactions between the District and Seller that are not authorized by the
Investment Policy, except to the extent that this authorization is dependent upon an analysis of
the District's entire portfolio, requires an interpretation of subjective investment standards, or
relates to investment transactions of the District that are not made through accounts or other
contractual arrangements over which the Business Organization has accepted discretionary
investment authority.
6. Seller has reviewed or will review prior to sale, the terms, conditions and
characteristics of the investments to be sold to the District and has determined or will determine,
prior to sale, that (i) each of the Investments is an authorized investment for local governments
under the Public Funds Investment Act and (ii) each of the Investments is an authorized
investment under the District's Investment Policy.
7. Seller acknowledges that the District has disclosed and hereby discloses that
certain funds within the custody of the District which may be deposited or invested with Seller
are by law or under a bond indenture required to be set aside to discharge a debt owed to the
holder(s) of the District's outstanding notes and/or bonds. As such, these funds shall be deemed
to be a deposit by a trustee of trust funds of which the holder(s) are pro rata beneficiaries in
accordance with 12 C.F.R. §330.15(c). Such funds held in trust for the holder(s) of the District's
notes and bonds are deposited within the account(s) titled "Bond Fund", "Bond Account", "Debt
Service Fund", "Debt Service Account", "Interest and Sinking Fund", "Interest and Sinking
Account", or other similar name sufficient to satisfy the requirements of 12 C.F.R. §330.5(b)
indicating that such funds are pledged towards the payment of principal and interest on the
District's bonds and notes. Seller further acknowledges that the District may be acting in a
fiduciary capacity on behalf of certain persons or entities who may, in turn, be acting in a
fiduciary capacity for subsequent purchasers and/or holders of the District's outstanding bonds
and notes.
8. Seller will continuously maintain an executed copy of this Certificate of
Compliance in its "deposit account records" (as defined in 12 C.F.R. §330.1(e)) for so long as
Seller holds any funds of or within the custody of the District.
-2-
By:
Name:
Title:
386299_8
EXHIBIT "B"
PUBLIC FUNDS DEPOSITOR
COLLATERAL SECURITY AGREEMENT
This Public Funds Depositor Collateral Security Agreement (this "Agreement") is made
and entered into as of the day of , 20 by and between ROCK PRAIRIE
MANAGEMENT DISTRICT NO. 2 (the "Depositor") and ("Bank"),
and any prior Agreement between Depositor and Bank relative to the subject matter hereof is
hereby terminated as of the date first written above.
RECITALS
Depositor, through action of its Board of Directors, has designated Bank as a depository
for Depositor's funds. Funds on deposit with Bank to the credit of Depositor in excess of federal
deposit insurance are required to be secured by eligible security as provided for by the Public
Funds Collateral Act, V.T.C.A. Government Code Section 2257.001 et seq. (the "Public Funds
Law"). Depositor and Bank understand and acknowledge that the amount of Depositor's
uninsured deposits in Bank may vary substantially from time to time; that under the
circumstances permitted herein, the Bank may release, add to or substitute for the securities
pledged by Bank from time to time to secure such uninsured deposits of Depositor; and that it is
the intent of the parties that this Agreement be renewed and extended upon and at the time of
each permitted release, addition or substitution of collateral securities and thereafter remain in
force and effect for the full term thereof until terminated in the manner set forth herein. In order
to perfect Depositor's security interest in eligible securities pledged by Bank from time to time to
secure such uninsured deposits, the Board of Directors of the Bank (the "Bank Board") has
authorized the undersigned Bank officer to enter into this Agreement on behalf of Bank under
the terms of which Bank will [either (i) cause , a
[state or national bank ], which has its main office or a branch office in Texas and which has
been designated by the State Comptroller as a Texas State Depository to hold the collateral assets
in a custody account as bailee for the benefit of Depositor, or (ii)] cause the Federal Reserve
Bank or a federal home loan bank ("FHLB") to hold the collateral assets in a restricted securities
account, joint safekeeping account or other similar account as custodian/bailee for the benefit of
Depositor (such [bank or] FHLB or the Federal Reserve Bank, as the case may be, hereinafter
called the "Custodian").
AGREEMENT
Now, Therefore, in consideration of the mutual covenants in this Agreement, the parties
agree as follows:
1. Grant of Security Interest. To secure the uninsured deposits maintained by
Depositor with Bank from time to time, Bank hereby pledges and grants to Depositor a security
interest in its Eligible Securities (as defined in the Public Funds Law) which are held, now or
hereafter, by Custodian for the benefit of Depositor in accordance with the terms of this
Agreement (the "Collateral"). At all times during the term of this Agreement, the Collateral shall
consist solely of the following:
general obligations of the United States of America or its agencies or instrumentalities
backed by its full faith and credit;
direct obligations of the State of Texas or Texas State agencies and instrumentalities;
collateralized mortgage obligations directly issued by a federal agency or instrumentality
of the United States of America, the underlying security for which is guaranteed by an
agency or instrumentality of the United States of America;
other obligations, the principal and interest on which are unconditionally guaranteed or
insured by, or backed by the full faith and credit of the State of Texas or the United States
of America or their respective agencies and instrumentalities;
obligations of states, agencies, counties, cities and other political subdivisions of any
state rated as to investment quality by a nationally recognized investment rating firm not
less than A or its equivalent;
fixed-rate collateralized mortgage obligations that have an expected weighted average life
of 10 years or less and which do not constitute a high -risk mortgage security as defined in
the Public Funds Law;
floating-rate collateralized mortgage obligations that do not constitute a high -risk
mortgage security as defined in the Public Funds Law; and
letters of credit issued by a federal home loan bank.
Bank shall cause Custodian to accept and hold the Collateral as bailee and/or custodian for
Depositor to secure Bank's obligation to repay the deposits.
2. Receipts. The Collateral held by Custodian for the benefit of Depositor, as of the
effective date of this Agreement, has been described on Trust Receipts (as defined in the Public
Funds Law) issued by Custodian, copies of which Custodian has forwarded to Depositor, and
such current Collateral is described on Exhibit "A" attached hereto and made a part hereof for all
purposes. With respect to additional or substitute Collateral hereafter delivered by Bank to
Custodian to hold for the benefit of Depositor, or any releases of securities previously held as
Collateral ("Releases"), as contemplated by this Agreement, Bank shall cause Custodian to issue
Trust Receipts or Releases describing such additional or substitute Collateral or released
securities and promptly forward copies of same to Depositor. Such Trust Receipts and Releases
which are furnished to Depositor by Custodian from time to time shall be deemed a part of this
Agreement without further action on the part of any party hereto, and this Agreement shall apply
to such released, additional or substitute Collateral to the same extent as if it were described on
Exhibit "A" attached hereto. If the Custodian is the Federal Reserve Bank, such Trust Receipts
-2-
386299_8
or Releases will consist of a written confirmation (the "Advice"). Such Advice shall be subject
to the terms and conditions of all applicable regulations, operating circulars, bulletins and
policies of the Federal Reserve Bank, including the terms and conditions of any applicable forms
or agreements, as may now exist or hereafter be enacted, promulgated or issued by the Federal
Reserve Bank (collectively "Applicable Regulations"). If the Custodian is the Federal Home
Loan Bank of Dallas ("FHLB Dallas"), notwithstanding the foregoing, such Trust Receipts may
be forwarded to Bank with instructions for Bank to immediately forward the same to Depositor.
Bank hereby agrees to comply with Custodian's instructions and forward each Trust Receipt to
Depositor immediately upon receipt of same. Upon request of Depositor, Bank agrees to provide
or cause Custodian to provide a then -current list of all Collateral pledged by Bank to secure
Depositor's funds to update Exhibit "A" to this Agreement. If the Custodian is FHLB Dallas and
the Custodian is forwarding Trust Receipts to Bank, Depositor may, at any time and from time to
time, request that FHLB Dallas provide one or more Trust Receipts directly to Depositor, and
FHLB Dallas shall immediately so provide the requested Trust Receipts to the Depositor, at no
cost to the Depositor.
3. Required Collateral Value. Bank agrees with Depositor that the total market
value of the Collateral securing uninsured deposits maintained by Depositor with Bank will at all
times during the term of the Agreement be not less than (i) one hundred ten percent (110%) of
the amount of such uninsured deposits, if the determination of the market value of Collateral is
calculated less frequently than weekly by Bank, or (ii) one hundred five percent (105%) of the
amount of such uninsured deposits if the determination of the market value of Collateral is
calculated at least weekly by Bank (the "Required. Collateral Value"). To insure that the
Required Collateral Value is maintained, Bank will redetermine, on a daily basis, the amount of
Depositor's uninsured deposits (taking into account that day's deposits, accrued interest,
disbursements and withdrawals) held by Bank and (using the most recently determined market
value of the Collateral) promptly add any additional Collateral which may be necessary to
maintain the Required Collateral Value by either (i) depositing with Custodian for the purposes
of this Agreement any additional Collateral or (ii) if the Custodian is the Federal Reserve Bank,
transferring additional Collateral to a restricted securities account, joint safekeeping account or
other similar account maintained by the Federal Reserve Bank. Determination of the market
value of Collateral by Bank will be calculated periodically as indicated by Bank on the
signature page hereof or more frequently on Depositor's request; provided, however, the
foregoing shall not relieve Bank of its obligation to fully collateralize at all times the Depositor's
uninsured deposits with Bank. If upon the periodic determination of the Collateral's market
value as set forth herein, the Required Collateral Value is not then maintained, Bank will
promptly deposit with Custodian for the purposes of this Agreement additional Collateral
necessary to maintain the Required Collateral Value.
4. Release of Collateral. Custodian shall not release any part of the Collateral
without Depositor's written authorization. Depositor agrees to furnish such authorization
promptly upon Bank's request under the circumstances described in Sections 5, 6, or 8 of this
Agreement. Depositor's authorization to Custodian to release from the Collateral only
designated Eligible Securities shall terminate the security interest granted by Bank in this
Agreement only with respect to such designated Eligible Securities. If the Custodian is the
Federal Reserve Bank, this section shall apply except to the extent it is in conflict with the
-3-
386299_8
provisions of the Applicable Regulations, in which event the provisions of the Applicable
Regulations shall govern the release of Collateral.
5. Substitution of Collateral. It is hereby agreed that upon obtaining the prior
written consent of the Depositor, which consent shall not be unreasonably withheld, substitutions
of the Collateral held hereunder may be made at any time so long as the fair market value of the
Eligible Securities being substituted is at least equal to the fair market value of the Eligible
Securities being removed. If the Custodian is the Federal Reserve Bank, this section shall apply
except to the extent it is in conflict with the provisions of the Applicable Regulations, in which
event the provisions of the Applicable Regulations shall govern the substitution of Collateral.
6. Excess Collateral. At such times as the aggregate market value of the Collateral
held by Custodian exceeds the Required Collateral Value, Depositor, upon request by Bank, shall
authorize Custodian to permit Bank to release the excess portion of the Collateral. Custodian
shall have no further liability to Depositor with respect to those Eligible Securities released upon
Depositor's authorization.
7. Additional Collateral. If at any time the aggregate market value of Collateral held
by Custodian is less than the Required Collateral Value, Bank shall immediately upon learning
of such circumstance, and without further action by Depositor, promptly either (i) deposit with
Custodian sufficient additional Eligible Securities of the type specified in Section 1 as may be
necessary to cause the aggregate market value of the Collateral to equal the Required Collateral
Value, or (ii) transfer additional Eligible Securities of the type specified in Section 1 to the
restricted securities account, joint safekeeping account or other similar account maintained by
the Federal Reserve Bank as may be necessary to cause the aggregate market value of the
Collateral to equal the Required Collateral Value and cause the Federal Reserve Bank to issue a
corresponding Advice (and Bank will deposit with the Federal Reserve Bank additional Eligible
Securities if and to the extent necessary to fulfill its obligations under this Agreement).
8. Earnings and Payments on Collateral. Bank shall be entitled to the interest
income and earnings paid on the Collateral and Custodian may dispose of such interest income
and earnings as directed by Bank without approval of Depositor, so long as Depositor has not
notified Custodian of Bank's default under this Agreement. Bank shall not be entitled to and
Custodian shall not release to Bank any partial or full call of the Collateral without Depositor's
prior written authorization as described in Section 4 of this Agreement. If the Custodian is the
Federal Reserve Bank, this section shall apply except to the extent it is in conflict with the
provisions of the Applicable Regulations, in which event the provisions of the Applicable
Regulations shall govern the disposition of interest earnings and principal payments on the
Collateral.
9. Default and Remedies. If Bank fails at any time to pay and satisfy, when due, any
check, draft, or voucher lawfully drawn against any deposit or becomes insolvent or materially
breaches its contract with Depositor, a default shall exist under this Agreement and Depositor
shall give written notice of such default to Bank, and Bank shall have ten (10) days to cure same.
In the event Bank fails to do so, it shall be the duty of Custodian, upon written demand of
Depositor, to surrender or transfer the Collateral to Depositor or Depositor's nominee and Bank
-4-
386299_8
hereby irrevocably authorizes Custodian to surrender or transfer the Collateral upon the
conditions herein specified. Depositor may sell all or any part of such Collateral in a
commercially reasonable manner and out of the proceeds of the Collateral may pay Depositor all
damages and losses sustained by it, together with all expenses of any and every kind incurred by
it on account of such failure or insolvency sale. Depositor shall account to Bank for the
remainder, if any, of said proceeds or Collateral remaining unsold. Such sale may be either at
public or private sale; provided, however, Depositor shall give Bank ten (10) days' written notice
of the time and place where such sale shall take place, and such sale shall be to the highest bidder
for cash. Depositor and Bank shall have the right to bid at such sale. If the Custodian is the
Federal Reserve Bank, this section shall apply except to the extent it is in conflict with the
provisions of the Applicable Regulations, in which event the provisions of the Applicable
Regulations shall govern the Depositor's exercise of remedies against the Collateral.
10. Authorization and Records. The Bank Board has authorized the pledge of Bank
assets to collateralize uninsured deposits maintained by Depositor pursuant to resolutions
substantially in the form of Annex I attached to the form of Resolution Certificate and Certificate
of Incumbency attached hereto as Exhibit "B" (the "Resolution Certificate"), and has authorized
the undersigned Bank officer to enter into, execute and deliver to Depositor this Agreement on
behalf of Bank and to take all action which may be necessary or appropriate to create and perfect
the security interest in the Collateral contemplated hereunder. Bank shall deliver to Depositor a
fully executed Resolution Certificate as a condition precedent to the effectiveness of this
Agreement and shall advise Depositor immediately of any revocation, amendment or
modification thereof. Bank acknowledges that the District has disclosed and hereby discloses
that certain funds within the custody of the District which may be deposited or invested with
Bank are by law or under a bond indenture required to be set aside to discharge a debt owed to
the holder(s) of the District's outstanding notes and/or bonds. As such, these funds shall be
deemed to be a deposit by a trustee of trust funds of which the holder(s) are pro rata beneficiaries
in accordance with 12 C.F.R. §330.15(c). Such funds held in trust for the holder(s) of the
District's notes and bonds are deposited within the account(s) titled "Bond Fund", "Bond
Account", "Debt Service Fund", "Debt Service Account", "Interest and Sinking Fund", "Interest
and Sinking Account", or other similar name sufficient to satisfy the requirements of 12 C.F.R.
§330.5(b) indicating that such funds are pledged towards the payment of principal and interest on
the District's bonds and notes. Bank further acknowledges that the District may be acting in a
fiduciary capacity on behalf of certain persons or entities who may, in turn, be acting in a
fiduciary capacity for subsequent purchasers and/or holders of the District's outstanding bonds
and notes. Bank shall continuously maintain an executed copy of this Agreement, its copies of
all Trust Receipts, Releases and Advices, and the Resolution Certificate among its official
"deposit account records" (as defined in 12 C.F.R. §330.1(e)) until such time as this Agreement
is terminated and all uninsured deposits of Depositor have been properly and fully paid out. This
Agreement may be executed in one or more counterparts, each of which shall be an original.
11. Authorized Representative; Depositor Agreements. The Depositor hereby
confirms that it has previously authorized its Investment Officer and/or Tax Assessor -Collector
to execute this Agreement and any documentation required in connection therewith, including
specifically pursuant to the Applicable Regulations and documentation related thereto, and to
represent it and act on its behalf in any and all matters of every kind arising under this
-5-
386299_8
Agreement. During the term of this Agreement, the Depositor may further designate an
additional officer or officers to singly or jointly represent and act on behalf of Depositor in any
and all matters of every kind arising under this Agreement and, in such event, shall provide
written notice thereof to Bank. In the event of any conflict between the provisions of this
Agreement and any other agreement between the Depositor and the Bank relating to the deposits,
this Agreement will control, unless the conflict is with the Applicable Regulations, in which
event the Applicable Regulations will control. Bank and Depositor specifically agree that
Depositor's prior approval is required for any par -for -par Collateral substitutions.
12. Custodian as Bailee. Custodian will promptly identify the pledge by Bank to
Depositor of the Collateral on the Custodian's books and records and any additional or substitute
Collateral and issue to Bank and Depositor Trust Receipts covering the Collateral. Similarly,
Custodian will promptly remove from its books and records any securities released from the
pledge by Bank in compliance with the terms of this Agreement and issue to Bank and Depositor
appropriate Releases identifying the released securities. Custodian acknowledges that it is the
bailee of Depositor for purposes of Section 2257.044 of the Public Funds Law, and its custodial
capacity is deemed to be set forth on any Trust Receipt delivered to Bank and Depositor, whether
such capacity is expressly so noted or not. If the Custodian is the Federal Reserve Bank, this
section shall not apply, but Bank acknowledges the provisions of the Applicable Regulations
which provide that the Federal Reserve Bank is acting as custodian/bailee; that the Collateral
identified on the Advice is subject to the custodial provisions of the Applicable Regulations; and
that the disposition thereof is subject to Depositor's approval.
13. Financial Condition. Bank will provide a statement of its financial position to the
Depositor on at least a quarterly basis. Bank will provide to the Depositor an annual statement
audited by its outside auditors including a statement by its outside auditors as to its "fair
presentation."
14. Amendment. Modification. Renewal. Each permitted release of previously
pledged Collateral and each addition to or permitted substitution for Collateral shall be deemed
and considered, without further action by Bank or Depositor, as an amendment to Exhibit "A"
attached hereto and a contemporaneous renewal and extension of this Agreement for the term
hereinafter stated upon the same terms and containing the same provisions as set forth herein,
except as the Collateral subject to this Agreement may be modified or amended thereby;
provided, however, that any such renewal and extension shall not affect any transaction entered
into prior to such renewal and extension until Bank shall have properly and fully paid out all
uninsured deposits (including any uninsured time deposits) and Depositor shall have authorized
Custodian to redeliver to Bank's sole control all Collateral then in Custodian's possession.
Otherwise, this Agreement may not be amended or modified except by mutual written agreement
of the parties hereto.
15. Term. Unless sooner terminated as hereinafter provided, the term of this
Agreement, and any renewal or extension hereof resulting from any release, addition to or
substitution of securities pledged as Collateral hereunder, shall commence on the date of this
Agreement, or the date of such release, addition or substitution, and continue for a term of ten
(10) years.
-6-
386299_8
16. Termination. Either Depositor, Bank or Custodian may terminate this Agreement
prior to the expiration of the term hereof upon thirty (30) days' advance written notice to the
other parties or by entering into a new Public Funds Depositor Collateral Security Agreement
which is intended to supercede and replace this Agreement; provided, however, that the terms of
this Agreement shall continue to apply to all transactions entered into prior to such termination
and until Bank shall have properly and fully paid out all uninsured deposits (including any
uninsured time deposits) and Depositor shall have authorized Custodian to redeliver to Bank's
sole control all Collateral then in Custodian's possession.
17. Custodian Fees. Any and all fees associated with the Custodian's holding of
Collateral for the benefit of the Depositor will be paid by Bank and the Depositor will have no
liability therefor.
18. Representations. (a) As required by Chapter 2271, Texas Government Code,
Bank hereby verifies that Bank, including a 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. Custodian hereby verifies that Custodian, including a
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. The term
"boycott Israel" in this paragraph has the meaning assigned to such term in Section 808.001 of
the Texas Government Code, as amended.
(b) Pursuant to Chapter 2252, Texas Government Code, Bank represents and certifies
that, at the time of execution of this Agreement neither Bank, nor any wholly owned subsidiary,
majority -owned subsidiary, parent company or affiliate of the same, is a company listed by the
Texas Comptroller of Public Accounts under Sections 2270.0201 or 2252.153 of the Texas
Government Code. Custodian represents and certifies that, at the time of execution of this
Agreement neither Custodian, nor any wholly owned subsidiary, majority -owned subsidiary,
parent company or affiliate of the same, is a company listed by the Texas Comptroller of Public
Accounts under Sections 2270.0201 or 2252.153 of the Texas Government Code.
(c) Pursuant to Section 2274.002, Texas Government Code (as added by Senate Bill 13,
87th Texas Legislature, Regular Session), as amended, Bank and Custodian each hereby verify,
on behalf of themselves but not the other, that Bank and Custodian, including a 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.
(d) Pursuant to Section 2274.002, Texas Government Code (as added by Senate Bill 19,
87th Texas Legislature, Regular Session), as amended, Bank and Custodian each hereby verify,
on behalf of themselves but not the other, that Bank and Custodian, including a 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
-7-
386299_8
association during the term of the Agreement. As used in the foregoing verifications,
"discriminate against a firearm entity or trade association" shall have the meaning assigned to
such term in Section 2274.001(3), Texas Government Code.
(e) Bank acknowledges that the District has disclosed and hereby discloses that certain
funds within the custody of the Depositor which may be deposited or invested with Bank are by
law or under a bond indenture required to be set aside to discharge a debt owed to the holder(s)
of the Depositor's outstanding notes and/or bonds. As such, these funds shall be deemed to be a
deposit by a trustee of trust funds of which the holder(s) are pro rata beneficiaries in accordance
with 12 C.F.R. §330.15(c). Such funds held in trust for the holder(s) of the Depositor's notes and
bonds are deposited within the account(s) titled "Bond Fund", "Bond Account", "Debt Service
Fund", "Debt Service Account", "Interest and Sinking Fund", "Interest and Sinking Account", or
other similar name sufficient to satisfy the requirements of 12 C.F.R. §330.5(b) indicating that
such funds are pledged towards the payment of principal and interest on the Depositor's bonds
and notes. Bank further acknowledges that the Depositor may be acting in a fiduciary capacity
on behalf of certain persons or entities who may, in turn, be acting in a fiduciary capacity for
subsequent purchasers and/or holders of the Depositor's outstanding bonds and notes.
(f) Bank will continuously maintain an executed copy of this Agreement in its "deposit
account records" (as defined in 12 C.F.R. §330.1(e)) for so long as Bank holds any funds of or
within the custody of the Depositor.
19. Governing Law. This Agreement shall be governed by and construed in
accordance with the Laws of the State of Texas.
20. Parties in Interest. This Agreement shall be for the benefit of the Parties hereto
and their legal successors and assigns and, except as may be provided in Section 10 hereof, shall
not be construed to confer rights upon any other person.
[Signature Pages Follow]
-8-
386299_8
In witness whereof, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the day first above written.
DEPOSITOR:
ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2
By:
Name:
Title:
-9-
386299 8
Bank hereby agrees that it will periodically determine the market value of Collateral and
maintain the corresponding Required Collateral Value throughout the term of this Agreement as
indicated below (provided, however, that in the event no indication is made below, the Required
Collateral Value for all purposes of this Agreement shall be 110%):
❑ Less frequent than weekly No less than 110%
❑ Weekly No less than 105%
BANK:
By:
Name:
Title:
The Custodian, if other than the Federal Reserve Bank, joins in the execution of this Agreement
for purposes of Sections 4, 8, 9, 12, 16, and 18, and if the Custodian is the Federal Reserve Bank,
such joinder is to be evidenced as set forth in the Applicable Regulations, the Advice and any
documentation related thereto.
CUSTODIAN:
By:
Name:
Title:
-10-
386299_8
EXHIBIT "A"
[Description of Eligible Securities Pledged]
EXHIBIT "B"
RESOLUTION CERTIFICATE
AND CERTIFICATE OF INCUMBENCY
OF (the "BANK")
The undersigned hereby certifies as follows:
1. I am the officer of the Bank holding the title designated on the signature line of
this Certificate.
2. Attached hereto as Annex I is a full, true and correct copy of resolutions (the
"Resolutions") duly adopted by the [Board of Directors] [Loan Committee] of the Bank in
conformity with the Articles of Association and By-laws of the Bank and in accordance with the
laws of the State of Texas.
3. The Resolutions have not been amended, modified or rescinded, and are in full
force and effect on the date hereof.
4. The Bank is duly organized and existing under the laws of
5. All franchise and other taxes required to maintain the Bank's existence have been
paid and none of such taxes are delinquent.
6. No proceedings are pending for the forfeiture of the Bank's authority to do
business or for its dissolution, voluntarily or involuntarily.
7. The Bank is qualified to do business in each state where the nature of its business
requires such qualification.
8. There is no provision in the Articles of Association, By-laws or any other
agreement, indenture or contract to which the Bank or its property is subject which limits the
Resolutions, and the Resolutions are in conformity with the provision of the Bank's Articles of
Association and By-laws and with proceedings of the Board of Directors.
9. This resolution is made in order to comply with requirements of the Financial
Institutions Reform, Recovery and Enforcement Act of 1989, as amended, and 12 U.S.C.
1823(e), and shall constitute a business record of the Bank and shall be continuously maintained
in the official business records of Bank.
10. The undersigned officers have been duly elected to the positions set opposite their
respective names below and are qualified to act in the present capacities in which they sign for
the Bank.
11. The signatures appearing opposite each of the undersigned officers is his or her
authentic signature and each of the undersigned holds the office designated for the same.
Name
Office Signature
EXECUTED the day of , 20 .
Name:
Title: [Secretary] [Recording Officer]
-2-
386299_8
ANNEX I
RESOLUTIONS
RESOLVED, that this Bank shall secure all deposits of Rock Prairie Management
District No. 2 (the "District") in excess of amounts insured by the Federal Deposit Insurance
Corporation ("Excess Funds") on deposit with the Bank at any time in whatever amount; and
further
RESOLVED, in regard to the above referenced deposits, that the Chairman of the Board
of Directors, President, any Executive Vice President, any Vice President, any Assistant Vice
President, or any other officer of the Bank is hereby authorized and directed to execute for and
on behalf of the Bank the following documents, it being further agreed that the execution of any
of the same prior to the adoption of these resolutions is hereby ratified, confirmed and adopted:
1. A Public Funds Depositor Collateral Security Agreement (the "Collateral Security
Agreement") in favor of the District, covering the Collateral described therein;
2. Such other and further documents as may be deemed necessary or desirable by
such officer or as required by the District in regard to the securing of the Excess Funds; and
further
RESOLVED, that the officers executing any of the above described documents are
hereby authorized and empowered to do and perform any and all actions required by the terms
and provisions of same to execute the same in the name and on behalf of the Bank, in such
number of counterparts as the officer or officers executing the same shall deem necessary or
desirable, with such terms, conditions, modifications, changes and provisions as the officer or
officers executing the same may approve, the execution of such documents to evidence approval
of the terms thereof conclusively; and further
RESOLVED, that any and all instruments executed and delivered on behalf of the Bank
in connection with these resolutions by any person purporting to be an officer of the Bank shall
be deemed to be the act of the Bank and shall be in all respects binding against the Bank; and
further
RESOLVED, that all actions of all officers, agents or other representatives of the Bank
taken or performed up to the date hereof in respect to the preparation, execution and delivery of
the documents, certificates or other instruments contemplated hereby, and the taking prior to the
date hereof of any and all actions otherwise required by the terms and provisions of the above
referenced documents, be, and they hereby are, in all respects approved, ratified and confirmed;
and further
RESOLVED, that this approval is intended to comply in all respects with the
requirements of applicable statutory law relating to insurance of accounts including specifically,
but without limitation, the requirements of 12 U.S.C.A. §§ 1821(d)(9)(A) and 1823(e); and
further
RESOLVED, that any deposit agreements between Bank and District and/or the
Collateral Security Agreement are all intended to be, and shall be deemed to be, official records
of the Bank; and further
RESOLVED, that any deposit agreements between Bank and District, the Collateral
Security Agreement and these Resolutions shall be continuously maintained in the business
records of the Bank.
-2-
386299-8
Memorandum
To: Board of Directors
Rock Prairie Management District No. 2 (the "District")
From: Schwartz, Page & Harding, L.L.P.
Date: August 12, 2021
Re: Annual Review and Proposed Revisions to Investment Policy
As you are aware, the Public Funds Investment Act requires that the District not only adopt
a written policy regarding investment of District funds (the "Investment Policy"), but also review
the Investment Policy on at least an annual basis. While the Texas Legislature did convene earlier
this year, there was no legislation arising out of the Regular Session of the 87th Legislature that
materially impact the Public Funds Investment Act or the Public Funds Collateral Act. However,
in connection with other passed legislation, as well as the migration of accounts away from BBVA
Compass Bank following its acquisition by PNC Bank, there are minor revisions to the Investment
Policy that are appropriate in connection with this year's annual review. This memo provides a
summary of those recommended revisions.
• Investment Policy, Section 4.J. We are recommending that the definition of the "qualified
representative" of a business organization offering to engage in an investment transaction
with the District be revised to delete any reference to depository banks. As a result of a
prior change in the Public Funds Investment Act, depository institutions are no longer
considered as a "business organization" offering to enter into an investment transaction
with the District with respect to banking deposits. Therefore, banks are no longer required
by the PFIA to sign a Certificate of Compliance, and the definition of a "qualified
representative" is no longer applicable.
• Investment Policy, Section 6.E. We are recommending that the Policy be amended to
include interest bearing banking deposits that are placed with a depository institution or
through a broker with a main office or branch office located in the State of Texas and which
is included on the District's List of Qualified Brokers, and the broker or depository
institution arranges for the deposit of funds in one or more other federally insured
depository institutions, regardless of where located. For those districts which will be
placing funds at Central Bank, this allows for participation in the Insured Cash Sweep (ICS)
program. The ICS program allows a bank that receives deposits from a district that cause
the account balance at that bank to exceed FDIC insurance limits (currently $250,000 per
597383
depositor, per institution), to transfer the District's funds to interest -bearing depository
accounts at other banks participating in the ICS program, with each account balance
remaining below $250,000. By spreading out the District's deposits across multiple banks,
each account balance can remain below FDIC limits, reducing or eliminating the need for
pledged collateral. Central Bank has indicated that ICS will be one of the primary ways
they manage the volume of public funds deposited with them to reduce the amount of
securities they must maintain for collateralization purposes.
• Form of Collateral Security Agreement, Section 18. We are recommending inclusion of
representations to be made by the Bank and the Custodian that they comply with the new
anti -boycott requirements imposed by Senate Bill 13 (energy companies) and Senate Bill
19 (firearm entities and trade associations), each passed in the 87th Legislative Session. We
are further recommending that the Bank's acknowledgement that it may be holding bond
funds on behalf of the District's bondholders and representation that it will maintain a copy
of the Collateral Security Agreement in its deposit account records be moved from the
Certificate of Compliance (which is no longer required to be signed by most banks) to here.
Because bond funds are held on behalf of a third party (i.e. the bondholders), they are
afforded separate FDIC insurance coverage, but only if it is clear from the bank's deposit
account records that such funds are held on behalf of the third party.
• Form of Collateral Security Agreement, Section 19. We are recommending inclusion of a
choice of law provision specifying that Texas law applies to the Collateral Security
Agreement. This provision was requested by Allegiance Bank.
• Form of Collateral Security Agreement, Section 20. We are recommending inclusion of a
"parties in interest" provision specifying that there are no third party beneficiaries of the
Collateral Security Agreement. This provision was requested by Allegiance Bank.
597383
EXHIBIT "D"
Honesty I Efficiency I Transparency I Accountability I Continuity
MUNICIPAL TAX SERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE MONTH ENDING
June 30, 2021
B & A MUNICIPAL TAX SF.RViCE, LLC
13333 NORTHWEST FREEWAY, STE 620 MAIN 713-900-2680
I4OUSTON, 77f 77040 TOLL FREE i-888-59B-7409
MUNICIPAL TAX SERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 6/30/21
RECEIVABLES SUMMARY
2020 Balance Forward Levy at 05/31/20 FYE
CAD Changes / Uncollectible
Outstanding Balance forward Prior Years (2019-2010) at 05/31/20 FYE
CAD Changes / Uncollectible
Total Levy to be collected
Collection prior months (all years)
2020 Taxes Collected net NSF & KR Refunds during current month
Taxes Collected for Prior Years net NSF & KR Refunds
Total Outstanding Balance
$847.78
so []i3
$0.00
$0.00
$0.00
$0.00
$0.00
847.78
0.00
847.78
0.00
847.78
TAX ACCOUNT Beginning Balance — Tax Account 18,729.82
Income
Taxes Collected Current Year $0.00
Taxes Collected Prior Year $0.00
Penalties & Interest $0.00
Collection Fee Paid $0.00
Overpayments $0.00
NSF or Reversals, Bank Charges $0.00
Other Fees & Court Costs, Etc $0.00
Earned Interest $0.00
$0.00
Expenses
CO 1111 Rock Prairie Management Distrct 2 - Operating
CK# 1112 B&A Municipal Tax Service, LLC - Invoice MD2-116
CK# 1113 B&A Municipal Tax Service, LLC - Invoice MD2-117
18,729.82
$5,000.00
$662.00
$201.55
$5,863.55
Ending Balance —Tax Account 12,866.27
B & A MUNICIPAL TAX SERVICE, LIE
13333 NORTHWEST FREEWAY, STE 620
HOUSION, TX 77040
MAIN 713-900-2680
TOLL FREE 1.8813598-7409
2
MUNICIPAL TAX SERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 6/30/21
OUTSTANDING TAXES - YEAR TO DATE
TAX
YEAR
2020
2019
2018
2017
BALANCE FORWARD
10/01/20
$116,563.08
$73,299.93
$49,461.25
$19,962.78
CAD
SUPPLEMENTS &
CORRECTIONS UNCOLLECTIBLE COLLECTIONS
$1,113.76 $0.00 $116,829.06
$0.00 $0.00 $73,299.93
$0.00 $0.00 $49,461.25
$0.00 $0.00 $19,962.78
EXEMPTIONS & TAX RATES
TAX
YEAR
2021
2020
2019
2018
2017
HOMESTEAD
EXEMPTION
0.00%
0.00%
0.00%
0,00%
0.00%
DISTRICT VALUES
TAX LAND &
YEAR
2020
2019
2018
2017
IMPROVEMENTS
22,941,412
14,898,546
9,881,920
4,069,643
OVER 65/
DISABLED
0
0
0
0
0
AG NET
7,123
14,370
28,690
27,010
DEBT SERVICE
M & 0 RATE RATE
0.00000 0.00000
0.50000 0.00000
0.50000 0.00000
0.50000 0,00000
0.50000 0.00000
PERSONAL
PROPERTY
617,829
909,670
309,850
0
EXEMPTIONS
30,971
1,162,600
328,210
104,096
OUTSTANDING COLLECTIONS
TAXES PERCENTAGE
$847.78
$0.00
$0.00
($0.00)
$847.78
99.28%
100.00%
100.00%
100.00%
CONTRACT TAX
RATE TOTAL RATE
0.00000 0.00000
0.00000 0.50000
0,00000 0.50000
0,00000 0.50000
0.00000 0.50000
TOTAL VALUE
23,535,393
14,659,986
9,892,250
3,992,557
SR KR
1 1
12 12
30 30
47 47
B & A MUNICIPAL TAX SERVICE, LLC
13333 NORTHWEST FREEWAY, STE 620
HOUSTON, TX 77040
MAIN 713-900-2680
TOLL FREE 1-S88-598-7409
3
MUNICIPAL TAX SERVICE,LLC
BEGINNING BALANCE
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 6/30/21
INCOME
10% Rendition Penalty
Bad Check Charges
CAD Refund Excess Allotment
Collection Fee
Earned Interest
Overpayments
_Penalty & Interest
Rollback Tax Collected
PROFIT & LOSS
CURRENT MONTH
06/01/21 - 06/30/21
19,781.09
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Taxes Collected 0.00
FISCAL YEAR
6/01120 - 6/30121
19,781.09
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00.
0.00
Total Income 0.00 0.00
EXPENSES
Audit/Records _ 0.00 0.00
Bank Charges_ _ _ _ _ 0.00_ _ 0.00
Bond Premium 50.00 _50.00
CAD Fees 243.00 243.00
Certificate of Value 0.00 0.00
Copies 15.80 15.80
Correction Roll Refunds 0.00 0.00
Correction Roll Rendition Refunds 0.00 0.00
Continuing Disclosure_ - - 0.00 _ 0.00
CourtAfFidavits 0.00 0-00
Delinquent Tax Attorney Assistance 15.00 15.00
Delinquent Tax Attori y Fee _ 0.00 0.00
Estimate of Value 0.00 0.00
Installment Tracking 0.00 0.00
Unclaimed Property Report _ 0.00 0.00
Legal Notices _ 0.00 _ _ 0.00
Mailing & Handling 2.24 2.24
Meeting Travel & Mileage _ 43.88 43.88
Overpayment Refund _ _ 0.00 _ _ _ _ 0.00
Public Hearing 0.00 _ 0.00
Records Retention 0.60 0.60
Roll mate & Processing - 18.75 18.75
.applies 0.00 0.00
Tax Assessor Collector Fee - AB _ 6.62.00 662.00
Tax Rate Preparation & Calculation 0.00 0.00
Transfer to Rollback Collected 0.00 0.00
Transfer to Maintenance & Operating _ 0.00 0.00
Transfer to Debt Service 0.00 0.00
1,051.27 1,051.27
ENDING BALANCE 18.723,92 18.729.82
B & A MUNICIPAL TAX SERVICE, LLC
13333 NORTHWEST FREEWAY, STE 620 MAIN 713-900-2680
HOUSTON, TX 77040 TOLL FREE 1-S88-5911-7409 4
MUNICIPAL TAX SERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 6/30/21
October
November
December
January
February
March
$459.42
$18,353.63
A . ril $525.34
$0.00
June $0.00
July
August
September
YEAR TO YEAR COMPARISON
2020 % 2019
$678.59
$1,138.23
0.58%
1.56%
$3,394.55
$58100
VARIANCE-
4.46% -3.88%
5.41% -3.85%
$4,289.31 5.24% $4,111.95
$91,384.54 82.85% $41,438.41
83.24% $25.50
98.83% $0.00
99.28% $0.00
99.28% $23,760.52
99.28% $0.00
11.02%
-5.78%
67.55% 15.30%
67.58%
67.58%
15.66%
31.25%
67.58% 31.70%
100.00% -0.72%
100.00%
-0.72%
MONTHLY COLLECTIONS
20201 2019j 2018
$0.00 $0.00 $0.00
13 & AMUNICIPAL 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 06/21/21
PLEDGED SECURITIES REPORT
SECURITIES PLEDGED AT 105% OVER FDIC INSURED $250,000
COLLATERAL SECURITY AGREEMENT ON FILE : YES
TAX BANK ACCOUNT HELD AT: WELLS FARGO / BANK OF NEW YORK MELLON
COLLATERAL SECURITY REQUIRED: NO
LEVY IS BELOW $250,000 FDIC
TYPE OF PLEDGED INVESTMENT:
IN COMPLIANCE W/ DISTRICT INVESTMENT POLICY: YES
B A MUNICIPALTAX 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 tat day of July 2021.
REBECCALYNN BREWER
Notary ID #1258819
My Commission Expires
March 1, 2024
IArlti 611--4A-*----
Re ecca Lynn Brewer
Notary Public, State of Texas
Notary ID #1258819
My Commission Expires March 1, 2024
TRANSFER OF FUNDS FROM:
WELLS FARGO: ROCK PRAIRIE MANAGEMENT DISTRICT 1 -
TAX ACCOUNT
$5,000.00
TRANSFER FUNDS TO:
ROCK PRAIRIE MANAGEMENT DISTRICT 1 -
OPERATING FUNDS
CHECK # 111 1
DATE: July 1, 2021
MUNICIPAL TAX SERVICE, LLC
Bill To
Rock Prairie Management District No. 2
13333 Northwest Freeway
Suite 620
Houston TX 77040
Invoice
Date Invoice #
7/1/2021 MD2-116
Description Unit Count Rate Amount
Avik Bonnerjee, RTA - Tax Assessor Collector Fee July 2021 518.00 518.00
2020 Additional Unit Count Invoiced 2021 160 0.90 144.00
Fhank you for your business.
Total
7oi,a-► cK. INa
13333 Northwest Freeway, Suite 620 2 Houston, TX 77040 2 PH:713-900-2680 ■ www.bamunitax.com
$662_00
MUNICIPAL TAX SERVICE, LLC
Bill To
Rock Prairie Management District No. 2
13333 Northwest Freeway
Suite 620
Houston TX 77040
Invoice
Date Invoice #
I7/1/2021 MD2-117
Description Unit Count Rate Amount
Copies
Postage, Mailing, and Handling (1)
Statement Mailing & Handling (B&A Apr -June 2021 2nd Qtr
3308 Notices)
Records Retention
Preparation of Delq. Atty. Electronic Files
Meeting Travel Time/Mileage/Time (May 2021)
Annexation Adding Land to Brazos CAD
Thank you for your business.
113
0.25
0.20
0.72
75.00
0.60
15.00
43.88
100.00
22.60
0.72
18.75
0.60
15.00
43.88
100.00
Total $201.55
13333 Northwest Freeway, Suite 620 f Houston, TX 77040 m PH:713-900-2680 a www.bamunilax.com
a- 1,13
Jurisdiction: MD2
ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 Page 1
Delinquent Tax Roll 6/28/2021
As of 6/30/2021 9:51 AM
Account No/Name/Address Cad No/Property Descr.
41380010020080 00000042832a A r ge:0.16550 Over 65 No
JIMENEZ PATSY D MIDTOWN RESERVE PH 100, BLOCK 2, LOT 9, ACRES Veteran No
953 TOLEDO BEND DR .1655 Installment Code N
COLLEGE STATION, TX 77845-7277
TOLEDO BEND DR
Due Jun. 2021 Due Jul. 2021 Due Auo, 2021
Year Stmt Date DeIV Date Code Taxes Penalties Payments Del. P&I ❑ue Del. P&I Due Del. P&1 Due
2020 10/1/2020 2/2/2021 41'3.88 0.00 0,00 62.05 475.73 172.09 565.77 177.06 590.74
41380010030060 000000426342 Acreage:0.10970 Over 66 No
VILLANUEVA M SHEA & PATRICK JOEL MIDTOWN RESERVE PH 100, BLOCK3, LOT 6, ACRES Veteran No
954 TOLEDO BEND DR .1087 Installment Code N
COLLEGE STATION, TX 77045-7622
TOLEDO BEND DR
Due Jun. 2021 Due Jul, 2021 Due Auq, 2021
Year Stmt Date ❑elgp Date Code Taxes Penalties Payments Del. P&I Due Del. P&I Due Del. P&I Due
2020 10/1/2020 2/2/2021 43410 0.00 0.00 65.12 499.22 184.59 614.69 185.80 619.90
Jurisdiction Totals (excludes Rollback Accounts)
Year Tax Levv Base Taxes Due Penalties Due Del. P&1 Eke Atty Fee Due Escrow Amt Total Due Count % Collected
2017 19,962.78 0.00 0.00 0 00 0.00 0.00 0.00 0 100.0 %
2018 49,461.25 0.00 0.00 0.00 0.00 0.00 0.00 0 100.00%
2019 73,299.93 0.00 0.00 0.00 0.00 0.00 0.00 0 100.00%
2020 117.678.84 847.78 0.00 127.17 0.00 0.00 974.95 2 99.28%.
847.78 0.00 127.17 0.00 0.00 974.95 2
Jurisdiction Rollback Accaunls Totals
Am Tax Levv Base Taxes Due Penalties Due Del. P&I Due Attv Fee Due Escrow Amt Total Due Count;
2017 5,306.29 0.00 0.00 0.00 0.00 0.00 0.00 0 100.00%
2018 5.305.09 0.00 0.00 0.00 0.00 0.00 0.00 0 100.00%
0.00 0.00 0.00 0.00 0.00 0.00 0
Report Prepared by B&A Municipal Tax
www.bamunttax,com
1
Honesty I Efficiency 1 Transparency I Accountability 1 Continuity
MUNICIPAL TAX SERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE MONTH ENDING
July 31, 2021
B & A MUNICIPAL TAX SERVICE, LLC
13333 NORTHWEST FREEWAY, STE 620 MAIN 713-900.2680
HOUSTON, TX 77040 TOLL FREE 1-R88-598-7409 1
MUNICIPAL TAX SERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 7/31/21
RECEIVABLES SUMMARY
2020 Balance Forward Levy at 05/31/20 FYE
CAD Changes / Uncollectible
Outstanding Balance forward Prior Years (2019-2010) at 05/31/20 FYE
CAD Changes / Uncollectible
Total Levy to be collected
Collection prior months (all years)
2020 Taxes Collected net NSF & KR Refunds during current month
Taxes Collected for Prior Years net NSF & KR Refunds
Total Outstanding Balance
$847.78
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
847.78
0.00
847.78
0.00
847.78
TAX ACCOUNT Beginning Balance — Tax Account 12,866.27
Income
Taxes Collected Current Year $0.00
Taxes Collected Prior Year $0.00
Penalties & Interest $0.00
Collection Fee Paid $0.00
Overpayments $0.00
NSF or Reversals, Bank Charges $0.00
Other Fees & Court Costs, Etc $0.00
Earned Interest $0.00
$0.00
Expenses
CK# 1114 B&A Municipal Tax Service, LLC - Invoice MD2-119
CK# 1115 B&A Municipal Tax Service, LLC - Invoice MD2-120
12,866.27
$662.00
$249.41
$911.41
Ending Balance —Tax Account 11,954.86
13 & A MUNICIPAL TAX SERVICE, LLC
13333 NORTHWEST FREEWAY, STE 620
HOUSTON, TX 77040
MAIN 713-900-2660
TOLL FREE 1-888-598-7409
2
MUNICIPAL TAX SERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 7/31/21
OUTSTANDING TAXES - YEAR TO DATE
TAX
YEAR
2020
2019
2018
2017
BALANCE FORWARD
10101/20
$116,563.08
$73,299.93
$49,461.25
$19,962.78
CAD
SUPPLEMENTS &
CORRECTIONS UNCOLLECTIBLE COLLECTIONS
$1,113.76 $0.00 $116,829.06
$0.00 $0.00 $73,299.93
$0.00 $0.00 $49,461.25
$0.00 $0.00 $19,962.78
EXEMPTIONS & TAX RATES
TAX
YEAR
2021
2020
2019
2018
2017
HOMESTEAD
EXEMPTION
0.00%
0.00%
0.00%
0.00%
0.00%
DISTRICT VALUES
TAX LAND &
YEAR IMPROVEMENTS
2020
2019
2018
2017
22,941,412
14,898,546
9,881, 920
4,069,643
OVER 65!
DISABLED
0
0
0
0
0
AG NET
7,123
14,370
28,690
27,010
DEBT SERVICE
M & 0 RATE RATE
0.00000 0.00000
0.50000 0.00000
0.50000 0.00000
0.50000 0.00000
0.50000 0.00000
PERSONAL
PROPERTY
617,829
909,670
309,850
0
EXEMPTIONS
30,971
1,162,600
328,210
104,096
OUTSTANDING
TAXES
$847.78
$0.00
$0.00
($0.00)
$847.78
CONTRACT TAX
RATE
0.00000
0.00000
0.00000
0.00000
0.00000
TOTAL VALUE
23,535,393
14,659,986
9,892,250
3,992,557
COLLECTIONS
PERCENTAGE
99.28%
100.00%
100.00%
100.00%
TOTAL RATE
0.00000
0.50000
0.50000
0.50000
0.50000
SR KR
32 32
50 50
76 76
87 87
B & A MUNICIPAL TAX SERVICE, TIC
13333 NORTHWEST FREEWAY, STE 620
HOUSTON, TX 77040
MAIN 713-900-2680
TOLL FREE. 1-888-595-7409
3
MUNICIPAL TAX SERVICE,LLC
BEGINNING BALANCE
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FORTHEPERIOD ENDING 7/31/21
PROFIT & LOSS
CURRENT MONTH
07/01/21 - 07/31/21
18,729.82
FISCAL YEAR
6/01/21 - 7/31/21
19,781.09
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 0.00 0.00
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
0.00 0.00
EXPENSES
Annexation 100.00
Audit/Records 0.00
Bank Charges �- 0.00
Bond Premium 0.00
CAD Fees 0_00
Certificate of Value 0.00
Copies 22.60
Correction Roll Refunds 0.00
Correction Roll Rendition Refunds 0.00
Continuing Disclosure 0.00
Court Affidavits 0.00
Delinquent Tax Attomey Assistance 15.00
Delinquent Tax Attorney Fee _ 0.00
Estimate of Value 0.00
Installment Tracking 0.00
Unclaimed Pro perty Report _ 0.00
Legal Notices - - - - 0.00
Mall€ng & Handling _ 19.47 _
Meeting Travel & Mileage 43.88
Overpayment Refund - 0.00
Public Hearing 0.00
Records Retention 0.60
Roll Update & Processing 0.00
Supplies 0,00
Tax Assessor Collector Fee - AB 662.00
Tax Rate Preparation & Calculation 0.00
Transfer to Rollback Collected 0.00
Transfer to Maintenance & Operating 5,000.00
Transfer to Debt Service - 0.00
5,863.55
ENDING BALANCE
100.00
0.00
0.00
50.00
243.00
0.00
38.40
0.00
0.00
0.00
0.00
30.00
0.00
0.00
0.00
0.00
0.00
21.71
87.76
0.00
0.00
1.20
18.75
0.00
1,324.00
0.00
0.00
5,000.00
0.00
6,914.82
U.866.27 12.866.27
B & A MUNICIPAL TAX SERVICE, Lr.0
13333 NORTHWEST FREEWAY, STE 620
HOUSTON, TX 77040
MAIN 713-900-2680
TOLL FRFF. 1-888-598-7409
4
MUNICIPAL TAX SERVICE,LLC
ROCK PRAIRIE MANAGEMENT DISTRICT 2
FOR THE PERIOD ENDING 7/31/21
October
November
December
January
February
March
April
May
June
LJI
August
Seatember
20201
$678.59
$1,138.23
$4,289.31
$91,384.54
$459.42
$18,353.63
$525.34 #_____99.28%
$0.00
$0.00
$0.00
20191
$0.00 $0.00
YEAR TO YEAR COMPARISON
_
2020 r % f 2019 % VARIANCE
4.46% -3.88%
5.41 % -3.85%
11.02% -5.78%
67.55% 15.30%
67.58% 15.66%
0.58% $3.394.55
1.56% $569.00
5.24% $4,111.95
82.85% $41,438.41
83.24% $25.50
98.83% $0.00
$0.00
99.28% $23,760.52
99.28% $0.00
99.28% $0.00
$0.00
$0.00
MONTHLY COLLECTIONS
2018 I
$0.00
67.58%
67.58%
100.00%
100.00%
100.00%
100.00%
100.00%
31.25%
31.70%
-0.72%
-0.72%1
-0.72%
B & A MUNICIPAL TAX SERVICE, LLC
13333 NORTHWEST FREEWAY, STE 620
HOUSTON, TX 77040
MAIN 713-900-2680
TOIL FREE 1-888-598-7409
5
ROCK PRAIRIE MANAGEMENT DISTRICT NO 2
MUNICIPAL TAX SERVICE,LLC FOR THE PERIOD ENDING 07/27/21
PLEDGED SECURITIES REPORT
SECURITIES PLEDGED AT 105% OVER FDIC INSURED $250,000
COLLATERAL SECURITY AGREEMENT ON FILE : YES
TAX BANK ACCOUNT HELD AT: WELLS FARGO / BANK OF NEW YORK MELLON
COLLATERAL SECURITY REQUIRED: NO
LEVY IS BELOW $250,000 FDIC
TYPE OF PLEDGED INVESTMENT:
IN COMPLIANCE W! DISTRICT INVESTMENT POLICY: YES
BA MUNICIPAL TAX SERVICE
13333 NORTHWEST FREEWAY SUITE 520
HOUSTON TX 77040
MAIM 71-900-2680
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 lst day of August 2021.
REBECCALYNN BREWER
Notary ID /1258819
My Commission Expires
March I. 2021
B'.. Y. -• ..11456 .. .. a. A
Rebecca Lynn Brewer
Notary Public, State of Texas
Notary ID #1258819
My Commission Expires March 1, 2024
Invoice
Date Invoice #
MUNICIPAL TAX SERVICE, LLC
8/1/2021 MD2-119
Bill To
Rock Prairie Management District No. 2
13333 Northwest Freeway
Suite 620
Houston TX 77040
Description Unit Count Rate Amount
Avik Bonnerjee, RTA - Tax Assessor Collector Fcc August 2021 518.00 518.00
2020 Additional Unit Count Invoiced 2021 160 0.90 144.00
Thank you for your business.
Total
8.01.0Z ► clC t 1Il+
$662.00
13333 Northwest Freeway, Suite 620 • Houston, TX 77040 ■ PH:713-900-2680 • www.bamunitax.com
MUNICIPAL TAX SERVICE, LLC
BiJI To
Rock Prairie Management District No. 2
13333 Northwest Freeway
Suite 620
Houston TX 77040
Invoice
Date Invoice #
8/1/2021 MD2-120
Description Unit Count Rate Amount
Copies 71 0.20 14.20
Postage, Mailing, and Handling (1) 0.73 0.73
Records Retention 0.60 0.60
Preparation of Delq. Atty. Electronic Files 15.00 15.00
Meeting Travel Time/Mileage/Time (June 2021) 43.88 43.88
Audit FYE May 31, 2021 1 175.00 175.00
Thank you for your business.
Total $249.41
13333 Northwest Freeway, Suite 620 m Houston, TX 77040 o PH:713-900-2680 is www.bamunitax.com
Jurisdiction: MD2
Account Nn/Name/Address
41380010020000
JIMENEZ PATSY D
853 TOLEDO BEND DR
COLLEGE STATION, TX 77645.7277
Year Simi Date Deg Date Code
2020 10/1/2020 212/2021
41300610030060
VILLANUEVA IVI SHEA & PATRICK JOEL
954 TOLEDO BEND DR
COLLEGE STATION, TX 77845-7822
ROCK PRAIRIE MANAGEMENT DISTRICT NO, 2
Delinquent Tax Roll
As of 7731 /2021
Cad No/Property Descr.
006003426328 Acreage' 0.18550
MIDTOWN RESERVE PH 100, BLOCK 2, LOT 9, ACRES
.1655
TOLEDO BEND DR
Taxes
413.68
Penalties Payments
0.00 0.00
Over 85
Veteran
Installment Code
Due Jul. 2021
Del. P&I Due
172.09 565.77
Page 1
8/3/2021
3:23 PM
No
No
N
Due Auld. 2021 Due Sep. 2021
Del. P&I Due Del. P&I Due.
177.06 590.74 182.02 595.70
000000426342 Acreage: 0,10870 Over 65
MIDTOWN RESERVE PH 100, BLOCK 3, LOT 6, ACRES Veteran
.1087 Installment Code
TOLEDO BEND DR
Year Stmt Date Doy Date Cole Taxes Penalties
2020 10/1/2020 2/2f2021 434.10 0.00
Jurisdiction Totals (excludes Rollback Accounts)
Year
2017
2018
2019
2020
Tax Lew Base Taxes Due
19,962.78 0.00
49,461.25 0.00
73,299.93 0.00
117.676.84 847.78
847.78
Jurisdiction Rollback Accounts Totals
Year Tax Lew Base Taxes Due
2017 5,306.29 0.00
2018 5,305.09 0.00
0.00
Payments
0.00
Due Jul. 2021
Del. Pal Due
180.59 614.69
No
No
N
Due Aua. 2021 Due Sep. 2021
Del. P&I Due Del. P&I Due.
185.80 619.9D 191.00 625.10
Penalties ❑ue Del. P&I Due Attv Fee Due Escrow Amt Total Due
0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
0.00 152.60 200.08 0.00 1.200.46
0.00 152.60 200.08 0.00 1,200.46
Count % Collected
0 100.00%
0 100,00%
0 100.00%
2 99.28%
2
Penalties Due Del. P&I Due Attv Fee Due EscrowAmt Total Due Count
0.00 0.00 0.00 0.00 0.00 0 100.00%
0.00 0.00 0.00 0.00 0.00 0 100.00°%
0.00 0.00 0.00 0.00 0.00 0
Report Prepared by B8A Municipal Tax
www.bamunitax.00m
EXHIBIT "E"
RESOLUTION CONCERNING DEVELOPED DISTRICT STATUS FOR 2021 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 determination, 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 2021, 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 2021, 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 12th day of August, 2021.
ATTEST:
By:
Secretary,, oat 'of Directors
-2-
ROCK PRAIRE MANAGEMENT
DISTRICT NO. 2
By:
President, Board of Directors
562217 3
EXHIBIT A TO RESOLUTION CONCERNING
DEVELOPED DISTRICT STATUS FOR 2021 TAX YEAR
The undersigned is an authorized representative of Edminster, Hinshaw, Russ &
Associates, Inc. (dba EHRA), the duly appointed and acting consulting engineer for Rock Prairie
Management District No. 2 (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 2021 tax year. Unless
otherwise specifically stated herein, this information is being provided based on the status of the
District as of January l st 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 (the "Build -Out ESFC"). Ninety-five percent (95%) of that
number is 564 (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? Yes CF-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 should 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.):
(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
1 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).
-1-
Developed District Tax Status Engineer Form (2021) RPMD 2.DOCX
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.
1(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.):
(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 1, is
$ . Ninety-five percent (95%) of that lesser number is
$ (the "Developed District Park Costs").
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.
Texas Water Code Section 49.4645 allows park bonds to be issued based upon an estimate of value.
-2-
Developed District Tax Status Engineer Form (2021) RPMD 2.DOCX
(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 less 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
-3-
Developed District Tax Status Engineer Form (2021) RPMD 2.DOCX
Dated:
July 13
Signature of Enginee-
Print Name of Engineer: Joshua M. Campbell; ).-;
.-;
Print Name of Engineering Firm: Edminster. Hinshaw. Russ & Associates. Inc. (dba EHRA)
Print Name of District: Rock Prairie Management District No. 2
, 2021
ENGINEER SIGNATURE PAGE FOR EXHIBIT A TO RESOLUTION DETERMINING
DEVELOPED DISTRICT STATUS FOR 2021 TAX YEAR
The District will NOT be considered a Developed District for the current tax year if any of the
followinm 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-
Developed District Tax Status Engineer Form (2021) RPMD 2.DOCX
If Items 2(c.) 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: 20
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 2021 TAX YEAR
-5-
Developed District Tax Status Engineer Form (2021) RPMD 2.DOCX
EXHIBIT "F"
Rock Prairie Municipal Utility District No. 2
Tax Rate Recommendation
Projected Projected Available for Beginning Debt Investments Total
Tax Roll Taxable Tax Rate Collections at Tax Rate Collections at Calendar Service Fund Earnings at Available
January 1 Assessed Value (M&O) 95% (Debt) 95% Year Balance (b) 1.00% Funds
2021 $ 42,106,782 (a) 0.1700 $ 68,002 0.330000 $ 132,005 2022 $ 38,965 390 $ 171,360
2022 42,106,782 0.1700 68,002 0.330000 132,005 2023 43,177 432 175,614
2023 42,106,782 0.1700 68,002 0.330000 132,005 2024 48,211 180,216
2024 42,106,782 0.1700 68,002 0.330000 132,005 ' 2025 53,691 185,696
2025 42,106,782 0.1700 68,002 0.330000 132,005 2026 60,146 192,150
2026 42,106,782 0.1700 68,002 0.330000 132,005 2027 67,705 199,710
2027 42,106,782 0.1700 68,002 0.330000 132,005 2028 71,435 203,440
2028 42,106,782 0.1700 68,002 0.330000 132,005 2029 76,565 208,570
2029 42,106,782 0.1700 68,002 0.330000 132,005 2030 83,165 215,169
2030 42,106,782 0.1700 68,002 0.330000 132,005 2031 91,304 223,309
2031 42,106,782 0.1700 68,002 0.330000 132,005 2032 101,054 233,059
2032 42,106,782 0.1700 68,002 0.330000 132,005 2033 107,484 239,489
2033 42,106,782 0.1700 68,002 0.330000 132,005 2034 110,789 242,793
2034 42,106,782 0.1700 68,002 0.330000 132,005 2035 116,093 248,098
2035 42,106,782 0.1700 68,002 0.330000 132,005 2036 113,498 245,503
2036 42,106,782 0.1700 68,002 0.330000 132,005 2037 128,265 260,270
2037 42,106,782 0.1700 68,002 0.330000 132,005 2038 140,002 272,006
2038 42,106,782 0.1700 68,002 0.330000 132,005 2039 153,838 285,842
2039 42,106,782 0.1700 68,002 0.330000 132,005 2040 164,774 296,778
2040 42,106,782 0.1700 68,002 0.330000 132,005 2041 172,941 304,946
2041 42,106,782 0.1700 68,002 0.330000 132,005 2042 183,471 315,475
2042 42,106,782 0.1700 68,002 0.330000 132,005 2043 191,475 323,480
2043 42,106,782 0.1700 68,002 0.330000 132,005 2044 197,093 329,097
2044 42,106,782 0.1700 68,002 0.330000 132,005 2045 205,460 337,465
2045 42,106,782 0.1700 68,002 0.330000 132,005 2046 211,577 343,582
2046 42,106,782 0.1700 68,002 0.330000 132,005: 2047 215,582 347,587
2047 42,106,782 0.1700 68,002 0.330000 132,005 2048 217,887 349,891
2048 42,106,782 0.1700 68,002 0.330000 132,005 2049 218,641 350,646
2049 42,106,782 0.1700 68,002 0.330000 132,005 2050 217,996 350,001
(a) Reflects the 2021 Certified Taxable Assessed Valuation and $9,792,890 of uncertified value, as provided by BCAD
(b) Based on total Debt Service Funds available after a September 1, 2021 debt service payment of $26,326
Total Debt
Service
$ 128,183
127,403
126,525
125,550
124,445
128,275
126,875
125,405
123,865
122,255
125,575
128,700
126,700
134,600
117,238
120,269
118,169
121,069
123,838
121,475
124,000
126,388
123,638
125,888
128,000
129,700
131,250
132,650
133,900
$ 3,254,024
Ending Debt Percentage of
Service Fund Next Year's
Balance Debt Service
$ 43,177 33.89%
48,211 38.10%
53,691 42.76%
60,146 48.33%
67,705 52.78%
71,435 56.30%
76,565 61.05%
83,165 67.14%
91,304 74.68%
101,054 80.47%
107,484 83.52%
110,789 87.44%
116,093 86.25%
113,498 96.81%
128,265 106.65%
140,002 118.48%
153,838 127.07%
164,774 133.06%
172,941 142.37%
183,471 147.96%
191,475 151.50%
197,093 159.41%
205,460 163.21%
211,577 165.29%
215,582 166.22%
217,887 166.01%
218,641 164.83%
217,996 162.81%
216,101
ArPOST OAK
a" MUNICIPAL ADVISORS
r) PST OAK
muNICIPAL ADVISORS
Rock Prairie Municipal Utility District No. 2
Debt Service and Maintenance Tax Rates Recommendation
2021
WS&D Debt Rate $ - /$100 A.V.
Road Debt Rate $ 0.330000 /$100 A.V.
M&O Tax Rate $ 0.170000 /$100 A.V.
Recommended 2021 Tax Rate $ 0.500000 /5100 A.V.
Debt Service Tax Rate
7/10/2021 Debt Service Fund Balance $ 65,291
LESS: September 1, 2021 Debt Service Requirements (26,326)
9/2/2021 Current Debt Service Fund Balance $38,965
PLUS : 2021 Interest Income, Estimated @ 1.00% $390
PLUS: 2021 Tax Collection
Certified A.V.: $ 32,313,892
Owner's Uncertified Value: 9,792,890
( $ 42,106,782 / 100) X $ 0.33 @ 95% Collections 132,005
$ 171,360
LESS: 2022 Projected Debt Service Requirements 128,183
9/2/2022 Projected debt Service Fund Balance $ 43,177
2023 Project Debt Service Requirements $ 127,403
Percentage of coverage of next years Debt Service Requirements 33.89%
Maximum Annual Debt Service $ 134,600
Percentage of coverage of Maximum Annual Debt Service 32.08%
Maintenance Tax Rate
Maintenance taxes levied at the discretion of the Board of Directors of the District. Should the Board deteremine that a
Maintenance tax is necessary, we estimate the following:
$ 0.17 /$100 A.V. = $68,002 @ 95% Collections
*Anticpated Budget Surplus @ $0.17 = $8,002
This Maintenance tax is based on the following information from the August Bookkeeper's Report:
General Fund Balance Annual Expeditures Coverage
$54,212 / $110,063 = 49.26%
Maintenance Tax Budget: $60,000
Adopted Budget Surplus: $0
Other District Calculations
Value of one Penny:
$0.01 /$100A.v. = $ 4,211
Average Tax Bill:
2021 Average Homestead
$236,098 @ $0.500000 = $1,180.49
EXHIBIT "G"
Post Oak Municipal Advisors LLC
MSRB Rule G-10: Municipal Advisory Client Education and
Protection
Post Oak Municipal Advisors provides the following information to you as a
municipal advisory client:
i) Post Oak Municipal Advisors is registered with the U.S. Securities and
Exchange Commission ("SEC") and the Municipal Securities Rulemaking
Board ("MSRB"). Post Oak Municipal Advisors is subject to the rules and
regulations on municipal advisory activities established by the SEC and
MSRB. Post Oak Municipal Advisors' most recent Form MA and each
most recent Form MA -I filed with the SEC are available on the SEC's
EDGAR system. For purposes of accessing reports, Municipal Advisor's
CIK is 0001733757 and MSRB ID is K1220.
ii) The website for the SEC is * * *. sec. gov and the website for the MSRB is
* * *. msrb. org.
iii) Posted on the MSRB website, you can find a brochure that describes the
protections that may be provided by the MSRB rules and how to file a
complaint with the MSRB or the SEC. Link to brochure:
* * * * * * * * * *msrb. org/ /media/Files/Beso urces/MSRB-MA-CI ients-
Brochure. ashx?la=en
EXHIBIT "H"
EHRA
ENGINEERING THE FUTURE
SINCE 1936
ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2
ENGINEERING REPORT
AUGUST 2021
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 storm water plans, including District.
1. Status of design of Lakeway Drive Reserve, Phase 200
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.
EHRA Engineering 110011 Meadowglen Lane 1 Houston, Texas 770421 t713.784.45001 f 713.784.4577
REALILING VISIONS • DESIGNING COMMUNITIES • ENGINEERING THE FUTURE vvv,,w.EHRAinc.com
Rock Prairie Management District No. 2
August 2021
Page 2
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. Irrigation of Phase I Park Development by Green Teams, Inc.
Contractor
Contract Days
Approved Extensions
Contract Completion Date
Contract Bid Amount
Change Order No. 1
Change Order No. 2
Change Order No. 3
Total Contract Amount
Pay Request No. 1
Pay Request No. 2
Total Pay Requests
Remaining on Contract
Green Teams, Inc.
45
0
5/10/2020
$435,305.00
$5,760.00
$5,756.00
S16,400.00
$463,221.00
$231,304.50
S157,208.40
$388,512.90
$74,708.10
Construction is substantially complete.
Board Action: None.
days
days
Date Approved
3/27/2020
9/10/2020
9/10/2020
9/10/2020
7/9/2020
9/10/2020
2. Midtown Reserve, Phase 106 by Greens Prairie Investors, Ltd.
Contractor
Contract Days
Approved Extensions
Contract Completion Date
Contract Bid Amount
Total Contract Amount
Total Pay Requests
Remaining on Contract
Board Action: None.
Greens Prairie Investors, Ltd.
160
0
S684 947.80
5684,947.80
$0.00
$684,947.80
days
days
Comment
Notice to Proceed Issued
Sleeves & Meter
Sieves & Irr. Heads
Bore Under Road
16.13° o of Contract Remaining
Date Approved
Comment
100.00% of Contract Remaining
EHRA
EHRA Engineering 110011 Meadowglen Lane I Houston, Texas 77042 1 t 713.784.4500 I f 713.784.4577
ENGINEERING THE FUTURE
SINCE 1936
Rock Prairie Management District No. 2
August 2021
Page 3
3. Midtown Reserve, Phase 107 by Greens Prairie Investors, Ltd.
Contractor Greens Prairie Investors, Ltd.
Contract Days 120 days
Approved Extensions 0 days
Contract Completion Date
Date Annroved Comment
Contract Bid Amount $728,238.70
Total Contract Amount $728,238.70
Total Pay Requests $0.00
Remaining on Contract $728,238.70 100.00% of Contract Remaining
Board Action: None.
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.
Board Action: None.
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.
f. Ratify approval and execution of Preliminary Plan Owner Certification, relative to Midtown
Reserve and Midtown City Center Subdivision preliminary plan modification.
Board Action: Approve Owner Certification.
r-,
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
EXHIBIT "I"
August 12, 2021
Board of Directors
Rock Prairie Management District No. 2
1300 Post Oak Boulevard, Suite 1400
Houston, Texas 77056
Dear Directors:
In accordance with the District's Order Establishing Records Management
Program and the District's Records Retention Schedule for General Records, I hereby
request authorization to destroy the records of the District shown on Exhibit "A" attached
hereto.
Very truly yours,
By:
Attachment
On uIder
ana inert
Officer
Recordsge t
496110_5
EXHIBIT "A"
Notes of Board of Directors meetings from February 12, 2020 to April 8, 2021.
496110_5