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2021 Minutes 01-14-21 (RPMD 2)
ROCK.PRAIRIE MANAGEMENT DISTRICT NO. 2 MINUTES OF MEETING OF BOARD OF DIRECTORS January 14, 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 January 14, 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 William Lewis—Assistant Vice President Jonathan Stark— Secretary Mark Lindemulder—Assistant Secretary all of whom participated in the meeting via telephone conference call, except Director Geva, thus constituting a quorum, Director Geva later joined the meeting, as noted below. Also attending the meeting via telephone conference call were James Murr of College Station Town Center, Inc. ("CSTC"); Cynthia Colondres of Municipal Accounts & Consulting, L.P. ("MAC"); Josh Campbell of EHRA Engineering ("EHRA"); Avik Bonnerjee of B&A Municipal Tax Service, LLC ("B&A"); Terrell Palmer and Misael Flores of Post Oak Municipal Advisors LLC ("POMA"); Brian Krueger of BKD LLP ("BKD"); Aubrey Nettles and Councilwoman Elizabeth Cunha of the City of College Station ("City"); and Christina Cole and Julie Kime of Schwartz, Page &Harding, L.L.P. ("SPH"). The President called the meeting to order and declared same open for such business as might properly come before it. EXPLANATION OF TELEPHONE CONFERENCE CALL MEETING PROCEDURES AND CALL TO ORDER Ms. Cole explained to the Board the procedures to be used during the telephone conference call meeting. In connection therewith, she informed the participants that the meeting would be recorded, and requested that participants clearly state his or her name before speaking, including when making or seconding a motion. Ms. Cole further explained that she would conduct a roll call vote for all motions and that Board members should wait to vote on a motion until his or her name has been called. Lastly, Ms. Cole conducted a full roll call of all meeting participants for attendance purposes. The Vice President called the meeting to order and declared it open for such business as might regularly come before the Board. PUBLIC COMMENTS The Board began by opening the meeting for public comments. There being no members of the public present, the Board continued to the next item of business. APPROVAL OF MINUTES The Board next considered approval of the minutes of its regular meeting held on December 10,2020. After review and discussion,Director Glover moved that the minutes for said Board meeting be approved, as written. Director Stark seconded said motion,which unanimously carried. BOOKKEEPING REPORT Ms. Colondres presented to and reviewed with the Board a Bookkeeping Report, a copy of which report is attached hereto as Exhibit A, including checks presented therein for payment. Following discussion, Director Glover moved that said Bookkeeping Report be approved and that the checks and wire identified in the report be approved for payment. Director Stark seconded the motion, which unanimously carried. ADOPTION OF RESOLUTION ADOPTING LIST OF QUALIFIED BROKERS AUTHORIZED TO ENGAGE IN INVESTMENT TRANSACTIONS WITH THE DISTRICT The Board considered adopting a list of qualified brokers authorized to engage in investment transactions with the District. Ms. Cole presented and reviewed with the Board the attached Resolution Adopting List of Qualified Brokers Authorized to Engage in Investment Transactions with the District, and a list of financial institutions, brokers and dealers attached thereto,together with a comparison of the list submitted to the list previously adopted by the Board, copies of which are attached hereto as Exhibit B. Ms. Cole further noted that the broker list presented is a list of potential institutions with which the District may engage in investment transactions compiled with the input of the District's Investment Officer, but it is ultimately the Board's decision as to where the District's funds are actually placed. After discussion, Director Glover moved that: (i)the attached Resolution Adopting List of Qualified Brokers Authorized to Engage in Investment Transactions with the District be approved by the Board and the District, as discussed, and {ii) the President and Secretary be authorized to execute same. Director Stark seconded said motion, which unanimously carried. TAX ASSESSORICOLLECTOR'S REPORT Mr. Bonnerjee then presented to and reviewed with the Board the Tax Assessor-Collector Report for the month ended December 31, 2020, including checks presented therein for payment. A copy of such report is attached hereto as Exhibit C. After discussion, Director Glover moved that the Tax Assessor-Collector Reports be approved and that the checks identified therein be approved for payment. Director Stark seconded said motion, which unanimously carried. Director Geva joined the meeting during the presentation of the Tax Assessor-Collector Report. - 2 - 576639 RESOLUTION CONCERNING EXEMPTIONS FROM TAXATION Ms. Cole outlined for the Board the various tax exemptions available for the District, including the exemptions provided for by Article VIII, Section 1-b of the Texas Constitution, and Section 11.13 of the Tax Code, as amended. She advised that under said provisions, the District may provide for the exemption of up to 20% (but not less than $5,000, if granted) of the market value of residential homestead improvements for the year 2021, and the District may also exempt residential homesteads of persons who are under a disability for purposes of payment of disability insurance benefits under the Federal Old Age, Survivors and Disability Insurance Act, or its successor, or persons sixty-five years of age or older from ad valorem taxes levied by the District during the calendar year 2021, and, if any such exemptions are granted, they must be for not less than $3,000 of the market value of such homesteads, After further discussion of the matter, Director Glover moved that the District(a)not grant the general residential homestead exemption, and (b) not grant an exemption for homesteads of persons under a disability or sixty-five years of age or older, and that the Resolution, attached hereto as Exhibit D relative to same be approved and adopted by the Board and the District. Director Stark seconded said motion, which carried unanimously. RESOLUTION AUTHORIZING AN ADDITIONAL PENALTY ON DELINQUENT PERSONAL PROPERTY TAXES The Board considered the adoption of a Resolution Authorizing an Additional Penalty on Delinquent Personal Property Taxes. Ms. Cole advised that the Board is authorized, pursuant to Section 33.11 of the Texas Tax Code, as amended, to impose, under certain conditions, an additional penalty not to exceed twenty percent (20%) of the total taxes, penalty and interest due the District on personal property taxes that become delinquent on or after February 1, 2021 and that remain delinquent 60 days after the date upon which they become delinquent, as more fully described in said Resolution. After discussion, it was moved by Director Glover, seconded by Director Stark and unanimously carried,that the Resolution Authorizing an Additional Penalty on Delinquent Personal Property Taxes, a copy of which is attached hereto as Exhibit E, be adopted by the Board, and that the District's delinquent tax attorneys be authorized to collect delinquent personal property taxes beginning April 1, 2021, including the filing of lawsuits, as necessary. APPROVE AUDIT REPORT Mr, Krueger next reviewed with the Board a draft of the District's audit report for the fiscal year ended May 31, 2020 a copy of which is attached hereto as Exhibit F. After discussion concerning the audit presented, Director Glover moved that the audit report for the fiscal year ended May 31, 2020, be approved, subject to final review and comment by SPH. Director Stark seconded said motion, which unanimously carried. In connection with the District's audit, Mr. Krueger presented the Board with a draft Management Letter prepared by BKD, concerning the Board's internal controls over financial reporting (the "Management Letter"), a copy of which is attached hereto as Exhibit G. Mr, Krueger advised the Board that the Management Letter is being submitted in connection with the requirements of Statement on Auditing Standards No. 115, and includes proposed "Management - 3 - 576639 Response" language prepared by SPH. After discussion, it was moved by Director Glover, seconded by Director Stark and unanimously carried that the draft Management Response be approved, as presented, and that same be included in the final Management Letter. ENGINEERING REPORT Mr. Campbell presented to and reviewed with the Board an Engineering Report dated December 10, 2020, a copy of which is attached hereto as Exhibit H. Mr. Campbell reminded the Board that it previously concurred in the award of a construction contract for water, sanitary sewer and drainage facilities to serve Midtown Reserve Subdivision Phase 106, by College Station Downtown Residential, LLC (the"Contract")to Greens Prairie Investors, Ltd. ("Greens Prairie"). He advised that Greens Prairie since corrected an error in a unit bid price. EHRA subsequently rebid the project, and the low bidder was still Greens Prairie. Following presentation of the Engineer's Report and discussion of the action item contained therein, Director Glover moved to concur in the award of the Contract to Greens Prairie,the low bidder,in the amount of$684,947.80, subject to the District's attorneys' review of the payment and performance bonds and insurance certificate submitted in connection with the contract to determine if the payment and performance bonds and insurance meet the requirements of the bid specifications, the Texas Insurance Code, the rules of the Texas Commission on Environmental Quality and the provisions of the Texas Water Code. Director Stark seconded the motion, which unanimously carried. STATUS OF THE DISTRICT'S UNLIMITED TAX ROAD BONDS SERIES 2021 Mr. Palmer advised that the District received the requested estimate of value from the Brazos Central Appraisal District, which shows an estimate of value of $51,685,062 as of December 1, 2020. Mr. Palmer discussed the increase in value from the value certified on January 1, 2020, and advised that with such estimate, the District may issue bonds in the amount of $2,500,000. He advised that with this information, the timing of the bond issue will be postponed, and that the documents indicating the increased amount of the bond issue will be presented at the District's February 11, 2021 Board meeting for approval. Ms. Cole advised that EHRA will prepare a revised Summary of Costs for the Board's consideration at such meeting. Mr. Palmer advised the District will sell the bonds in March 2021, with a closing to be scheduled for April 2021. RATIFY PRIOR ACTIONS OF THE BOARD Ms. Cole advised the Board that at its meeting of December 10,2020,the Board(i) adopted and approved a Resolution Requesting Appraisal of Property as of December 1, 2020, and (ii) approved and authorized execution of an engagement letter with BKD LLP for preparation of the District's audit for fiscal year ended May 31, 2020. Ms. Cole advised that since the consideration of such actions was not included in the agenda for such meeting, it is necessary that the Board ratify such actions. Following discussion, Director Glover moved that such be ratified, approved and confirmed in all respects. Director Stark seconded the motion, which unanimously carried. - 4 - 576639 DEVELOPER'S REPORT The Board considered the Developer's Report. Mr. Murr presented a verbal report on the status of development within the District. STATUS OF PROPOSED ANNEXATION OF 33.342 ACRES OF LAND TO THE DISTRICT Ms. Cole advised that SPH has been coordinating with the City on the necessary documentation for the City's consent to the annexation of 33.342. STATUS OF INTERLOCAL AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF COLLEGE STATION Ms. Cole advised that the City has provided proposed revisions to the latest draft of agreement and, after discussing the revisions with Mr. Murr, she will be requesting clarification of same. ATTORNEY'S REPORT The Board considered the Attorney's Report. Ms. Cole advised the Board that she had nothing of a legal nature to discuss with the Board that was not already covered under previous agenda items. DISCUSSION OF RENEWAL OF DISTRICT INSURANCE COVERAGES Ms. Cole advised the Board that the District's current insurance policies will expire on March 31, 2021. She noted that such insurance was issued through McDonald & Wessendorff Insurance ("M&W"). Following discussion, Director Glover moved that SPH be authorized to solicit renewal proposals from M&W to be reviewed at the February meeting. Director Stark seconded the motion, which unanimously carried. 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 Glover seconded by Director Stark, and unanimously carried,the meeting was adjourned. Scc��ry - S - 576639 LIST OF ATTACHMENTS Rock Prairie Management District No. 2 Minutes of Meeting of January 14, 2021 Exhibit A Bookkeeping Report Exhibit B Resolution Adopting List of Qualified Brokers Authorized to Engage in Investment Transactions with the District and List of Financial .Institutions, Brokers and Dealers Exhibit C Tax Assessor-Collector Reports Exhibit D Resolution Concerning Exemptions From Taxation Exhibit E Resolution Authorizing An Additional Penalty on Delinquent Personal Property Taxes Exhibit F Draft Audit Report for Fiscal Year ended May 31, 2020 Exhibit G Draft Management Letter from BKD, LLP Exhibit H Engineering Report - 6 - 576639 EXHIBIT "A" MUNICIPAL ACCO'I NTS "x` CONSULTING, LP Rock Prairie Management District No. 2 Bookkeeper's Report January 14, 2021 1281 Brittrnoore Road Houston,Texas 77043 Phone: 713.623.4539 Fax: 713.629.6859 Cash Flaw Report - Checking Account As of January 14, 2021 [Minn Name Memo Amount Balance LANCE AS OF 12/11/2020 $32,457. ceipts Interest Earned on Checking 4.19 tat Receipts 4 ibursements !2 B&A Municipal Tax Service SB2 Compliance (250.00) 3 EHi1A Enjonecring Engineering Fees (5,31.6.68) '.4 X—lunicipal Accounts&Consulting,LP liooHeeping Fee (1,726.60) 15 Schwartz,Page&Harding,L.L.P. Legal Fees-2 Months (7,513.61) :s BBVA USA Service Charge (4.19) tal Disbursements J ANCE AS OF 01/14/2021 $17,650. BBVA USA-PREMIER-##XXXX0276 2 Actual. vs, Budget Comparison December 2020 December 2020 June 2020-December 2020 Annua Actual Budget Over/(Under) Actual Budget Over/(Under) Budge venues 4100 Devclopcx Advance 0 0 0 50,033 50,033 0 50,( 4350 Maintenance Tax Collections 0 0 0 30,000 30,000 0 60,( 4380 Interest Earned on Cheeluing 4 3 2 25 18 8 tat Revenues 4 3 2 80,058 80,051 8 110,( penditures 6330 Legal Fees 6,523 5,000 1,523 25,608 35,000 (9,392) 60,( 6350 Engineering Fees 4,817 2,500 2,317 13,187 17,500 (4,313) 30,( 6430 Bookkeeping Fees 1,700 550 1,150 5,868 3,850 2,018 6,[ 6450 Legal\odccs&Other Purl. 0 0 0 0 0 f3 2,( 6455 SB 2 Expenses 250 250 0 2,250 1,750 500 3,( 6460 Printing&Office Supplies 67 83 (17) 250 583 (333) 1,( 6470 Piling Fees 88 75 13 201 525 (324) 6480 Delivers Expense 0 42 (42) 460 292 168 ! 6520 Postage 0 4 (4) 10 29 (19) 6530 Insurance&Surety Bond 0 0 0 0 0 0 3, 6540 Travel Expense 0 108 (108) 0 758 (758) 1,: 6560 Miscellaneous Expense 14 83 (69) 160 583 (424) 1,( tat Expenditures 13,458 8,696 4,762 47,993 60,871 (12,877) 110,€ Bess Revenues(Expenditures) ($13,454) ($8,693) (54,761) $32,005 $19,180 $12,885 4 Balance Sheet As of December 31,2020 Dec 31,20 ASSETS Current Assets Checking/Sa-,zngs 11100 Cash in Bank 32,457 11105 Cash in Bank-Tax Account 38,946 Total Checking/Savings 71,403 Other Current Assets 11740 • Due From Construction 9,044 Total Other Current Assets 9,044 Total Current Assets 90,447 TOTAL ASSETS 80,447 LIABILITIES&EQUITY Liabilities Current Liabilities Accounts Payable 12000•Accounts Payable 14,557 Total Accounts Payable 14,557 Total Current Liabilities 14,557 Total Liabilities 14,557 Equity 13010• Unallocated fund Balance 33,826 Net Incorne 32,065 Total Equity 65,990 TOTAL LIABILITIES&EQUITY 80,447 5 EXHIBIT "B" RESOLUTION ADOPTING LIST OF QUALIFIED BROKERS AUTHORIZED TO ENGAGE IN INVESTMENT TRANSACTIONS WITH ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 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, as amended, requires that the Board of Directors of the District annually review,revise and adopt a list of qualified brokers that are authorized to engage in investment transactions with the District; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2, THAT: Section 1: The Board of Directors of the District hereby adopts the list of financial institutions, brokers and dealers attached hereto as Exhibit "A" as the list of qualified brokers that are authorized to engage in investment transactions with the District. Section 2: The provisions of this Resolution shall be effective as of its date of approval by the Board of Directors and shall remain in effect until modified by action of the Board of Directors, and any resolution heretofore adopted by the Board of Directors adopting a list of qualified brokers that are authorized to engage in investment transactions with the District shall be and is hereby revoked as of the effective date of this Resolution. PASSED AND ADOPTED this 14th day of January, 2021. ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 By: President, Board of Directors ATTEST: Ir By: Board of Directors E M ANq//�,����r�, \\`AA�i`a° •e �l e aka �(SE °a i C�\ EXHIBIT "A" LIST OF AUTHORIZED BROKERS Morgan Stanley Allegiance Bank NewFirst National Bank Amegy Bank, PFM Asset Management a division of Zions Bancorporation N.A. Pioneer Bank American Bank of Commerce (ABC Bank) PlainsCapital Bank Austin Capital Bank SSB Plains State Bank BanCorp9outh PNC Bank/The PNC Financial Services Group, Inc. Bank of America N.A./B of A Securities Prosperity Bank Bank of Texas, a division of BOKF,N.A. Raymond James Financial, Inc. Bank OZK R Bank BBVA USA RBC Capital Markets/RBC Investments Beal Bank SSB /Beal Bank USA Regions Bank BOK Financial Securities, Inc. /BOK Financial Corp. Robert W. Baird & Company, Inc. Business Bank of Texas,N.A. Simmons Bank Cadence Bank,N.A. Southside Bank Capital Bank of Texas SouthStar Bank, SSB Capital One N.A. Spirit of Texas Bank SSB Central Bank State Bank of Texas Chasewood Bank Texan Bank- Citibank N.A. /Citigroup, Inc. Texas Capital Bank,N.A. Comerica Bank Texas Citizens Bank Commercial State Bank Texas C.L.A.S.S. Community Bank of Texas, N.A. Texas Exchange Bank East West Bank Texas First Bank Federated Hermes Inc. Texas Gulf Bank,N.A. First Citizens Baa Texas Regional Bank First Financial Bank,N.A. TexPool I TexPool Prime First National Bank Texas /First Convenience Bank TcxSTAR Investment Pool First Texas Bank The Bank of New York Mellon Trust Company,N.A. First United Bank The First National Bank of Bastrop Frontier Bank of Texas The First State Bank Frost Bank The Independent Bankers Bank,N.A. (TIB) FHN Financial Third Coast Bank S.S.B. Guaranty Bank& Trust,N.A. Truist Financial Corporation Hancock Whitney Bank Trustmark National Bank Herring Bank UBank Hilltop Securities, Inc. UBS Securities LLC. HomeTown Bank,N.A. United Bank of El Paso del Norte lberiaBank United Texas Bank Independent Financial Unity National Bank International Bank of Commerce (IBC Bank) / US Bank Commerce Bank Vantage Bank Texas J.P. Morgan Chase & Co. /J.P. Morgan Securities / Veritex Community Bank JPMor an Chase Bank, N.A. Wallis Bank LOGIC Local Gov't. Investment Cooperative) Wells Fargo Advisors Lone Star Bank Wells Fargo Bank,N.A. Lone Star Investment Pool/First Public, LLC Wells Fargo Securities, LLC Moody National Bank WestStar Bank Woodforest National Bank EXHIBIT "C" BEEHonesty i Efficiency I Transp.,renc V 1 Accountability 1 Continuity MUNICIPAL TAX SERVICE,LLC DOCK PRAIRIE MANAGEMENT DISTRICT FOR THE MONTH ENDING December 31, 2020 B&A MUNICIPAL TAX SERVICE,LLC 13333 NOR:ruwEs-r FREEWAY, ST$G20 MAIN 70-900-2680 HOUST04,TX 7?040 TOLL FREE 1:888.598-7409 1 r' MUNICIPAL TAX SERVICIT,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 12131120 RECEIVABLES SUMMARY 2020 Balance Forward Levy at 05/31120 FYE $0.00 CAD Changes l Uncollectible $116,563.08 116,563.08 Outstanding Balance forward Prior Years(2019-2010)at 05/31/20 FYE $0.00 CAD Changes 1 tlncollectible $0:00 0.00 Total Levy to be collected 116,563.08 Collection prior months(all years) ($1,816.82) 2020 Taxes Collected net NSF&KR Refunds during current month ($4,289.31) Taxes Collected for Prior Years net NSF&KR Refunds $0.00 Total Outstanding Balance 110,45B.96 TAX ACCOUNT Beginning Balance—Tax Account 3,929.80 Income Taxes Collected Current Year $4,289,31 Taxes Collected Prior Year $0.00 Penalties&Interest $0.00 Collection Fee Paid $0.00 Overpayments $13,19 NSF or Reversals,Bank Charges $0,00 Other Fees&Court Costs,Etc $0.00 Earned Interest $0.97 $4,303.47 8,233.27 Expenses CK# 1092 DHI Title Agency-Overpayment 2020 TY $13.19 CK# 1093 B&A Municipal Tax Service, LLC - Invoice M132-097 $662.00 CK# 1094 B&A Municipal Tax Service, LLG, - Invoice M132-098 $473,94 $1,149.13 Ending Balance—Tax Account 7,084A4 IL— B&A MUNICIPAL TAX SERVICE,LLC 13333 NORTHWEST FRRRWAY, YVL 620 MAIN 713-900-2690 HOIJSTON,TX 77040 'POLL I�Ra,. 1.899-598-7409 2 c ow MUNICIPAL TAX SERVICULC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 12/31/20 OUTSTANDING TAKES--YEAR TO DATE BALANCE FORWARD CAD TAIL @ SUPPLEMENTS& OUTSTANDING COLLECTIONS YEAR 10f01120 CORRECTIONS UNCOLLECTIBLE COLLECTIONS TAXES PERCENTAGE 2020 $116,563.08 $0..00 $0.00 $6,106.13 $110,456,95 6.24% 2019 $73,299.93 $0.00 $0.00 $73,299.93 $0,00 100.00% 2018 $49,461.25 $0.00 $0.00 $49,461.25 $0.00 100.00% 2017 $19,962.78 $0.00 $0.00 $19,962.78 ($0.00) 100.00% $110,456.95 EXEMPTIONS&TAX RATES TAX HOMESTEAD OVER 661 DEBT SERVICE CONTRACT TAX YEAR EXEMPTION DISABLED M&0 BATE RATE RATE TOTAL RATE 2020 0,00% 0 0.50000 0.0000.0 0.00000 0.50000 2019 0,00% 0 0,50000 0.00000 0.00000 0.50000 2018 0.00% 0 0150000 0,00000 0.00000 0.50000 2017 0.00% 0 0.60000 0.00000 0.00000 0.50000 DISTRICT VALUES TAX LAND& PERSONAL YEAR IMPROVEMENTS AG NET PROPERTY EXEMPTIONS TOTAL VALUE SR KR 2020 22,718.659 7,123 617,829 30,971 23,312,640 CR CR 2019 14,898,646 14,370 909,670 1,162,600 14,659,986 12 12 2018 9,881,920 28,690 309,850 328,210 9,892,250 30 30 2017 4,069,643 27,Q10 0 104,096 3,992,657 47 47 A&A MCENIOPAL TAX SLiKViCU,LLC 13333 NORTMEST FREEWAY, S'IR 620 MAIN 71M00-2680 HOUSTON,TX 77040 TOM IRM L-988-598-7409 3 NA ROCK PRAIRIE MANAGEMENT DISTRICT 2 G lv1UNICIPAL TAX SEItVICL,t LC FOR THE PERIOD ENDING 12/31/20 PROFIT&LOSS CURRENT MONTH FISCAL YEAR 12101/20-12131120 6/01120-12131120 BEGINNING BALANCE 4,760.64 38,946.02 INCOME 10°lo Rendition Penalty 0.00 0.00 Bad Check Charges - 0 ........ . CAD Refund Excess Alto tment 0.00 5.30 Collection Fee 0.00 0.00 Earned Interest - 0.97 15.09 Overpayments 13.18 13.21 Penalty&Interest 0.00 0 00 - _ . ._.__. ._._.- I...... Rollback Tax Collected - 0.00 0.00 Taxes Collected 4,289.31 6,106.13 Total Income 4,303.47 6,139.73 EXPENSES AudittRecords 0.00 0.00 Bank Charges - 0.00 0-00 Bored Premium 0.00 50.00 CAD Fees 243.00 604.50 Certificate of Value 0.00 0.00 Copies - - 16.40 163.20 c Corretion Roll Re#ands __. .. Q 00 01 00 Correction Roll Rendition Refunds 0.60 0.00 Continuing Disclosure 0.00 0.00 Court Affidavits 0,00 0.00 Delinquent Tani Attorney Assistance 0.00 30.00 ....... Delinquent Tax Attorney Fee 0,00 0.00 Installment n Tracking 0.00 0.00 Uciaimed Property Report - - 0.00 0,00 - - -- Legal Notices 0.00 787.00 Mailing &,Handling - 7.84 25210 Meeting Travel& Mileage 45.08 5A4.5.65 Overpayment Refund 0.00 0.00 _._. . . ... ...... _. .........- - Public Hearing 0.00 650.00 _ Records Retention 0.52 3.04 - ......... ......... Roll Update&Processing 0.00 131.25 Senate BiI12 to CAD (5 Yr History) 0.00 0.00 Supplies 0.00 19.74 Tax Assessor Collector Fee--AB 518.00 3,626.00 .._. Tax Rate Preparation &Calculation 0.00 0.00 Transfer to Rollback Collected 0.00 0.00 Transfer,to Maintenance&Operati'ng 0.Q0 30,000.00 Transfer to Debt Service o 00 0.00 830.84 36,852.48 ENDING BALANCE 27 2 7 B&A MUNICIPAL TAX SERVICE,LLC 13333 NORTHWEST FREEWAY, STE 620 MAIN 713-900 2680 � LICIUSTON,TX 77040 TOLL FREE 1-888-598-7409 MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 12131120 �fEAR TO YEAR C{yMP'ARISCN 2020 °fa 2019 % VARIANCE I .October $678.59 0.58°fo $3,394.55 4.4fi°la -3,88% November $1,138.23 1.56% $569.00 5.41%' -385% December $4,289,31 5.24% $4,111.95 11.02°fo l -5.78% i ;January $41,438.41 67.55% I February $25.60 67.58% - E I March $O.O0 67.58%; f E Aprii 1 $0.00 67.58°l0 1 May $23,760 52. 100.00°l0; June $0.00 100.00°fa'; ;July .._.. $0.00.__...- 100.00W August $0.00 .._....._ 100.00°fay_... - - I ; September $0.00 100.00°fo - MONTHLY COLLECTIONS 20201 20191 2018 $4,289.31 $0-00 $0.00 R&A MUNICIPAL TAX SLRVICL;LLC 13333NQRTHWE.STPRFRWAI, STP620 MMN713-900-2690 5 HOUSTON,TX 77040 T©TL FREE 1-888-598-7409 ROCK PRAIRIE MANAGEMENT DISTRICT NO 2 FOR THE PERIOD ENDING 12/24/20 MUNICIPAL_ TAX SERVICE,,LL.0 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 1 BANK OF NEW YORK MELLON COLLATERAL SECURITY REQUIRED: NO LEVY IS BELOW$2 0,000 FDIC TYPE OF PLEDGED INVESTMENT: IN COMPLIANCE Wl DISTRICT INVESTMENT POLICY: YES B A MUNICIPAL TAX SERVICE 13333 NORTHWEST FREEWAY SUITE 620 MAIN 713.900-2680 P� HOUSTON TX 77040 TOLL FREE 1-888-598-7409 STATE OF TEXAS § COUNTY OF BRAZOS Avik Bonnerjee, being duly sworn, says that he is the Tax Assessor-Collector for the above named District and the foregoing contains a true and correct report accounting for all taxes collected for said District during the month therein stated. Avik Bonnerjee, RTA SWORN TO AND SUBSCRIBED BEFORE ME, this Is' day of January 2021. *y Y ALBri REWCA LYNN BRWER Notary to#12Z 8814 61-, "rt ,ay MY Comnijssfon Expires Rebecca Lynn-Brewer Y larch 1, 2074 Notary Public,State of Texas Notary ID #1258819 My Commission Expires March 1, 2024 f s2020 TAX RECEIPT ROCK PRAIRIE MANAGEMENT DISTRICT 1 AVIK BONNER.IEE,TA; i4SSE C}FiIGE�LLECT[1I NRI 2 11W021 212l2{t�1 11 13333 NORTHWEST FREEWAY,SUITE 624 HOUSTON,TX 77040 41390010250320 TARE a ARE iUF U k REC FT, TAXES. ILL BECO NE�� DELINQUENT AFTER February 01,2021.PAYMENT MU.ZT BE POSTMARKED BEFORE DELINQUENT MATE TO AVOID H6urs:MON-THU Z.-5 FRI 6 =12� 4NOV-JA. g Phone:713-90.0-2680 ADDITIONAL PENALTIES ANCI..INTEREST. Jdeh Ud"d PAMUNIT# #(lVl FAX 713 I]Ci 2ESra Taxva titan--in delfnquent art July 01,2021 will incur all AdditiUniNl penalty tD defray arslx of tellocuun P$r Sactrdi1 33.07,3165 snnr¢r 33.11 PfIWTonn Frdp6tF-Dix Cads. CONTINENTAL HOMES OF TEXAS LP 1916 SW H K 00DUEN LOOP TEMPLE.TX 76502.1021 **RF-TURN SERVICE REQUESTED- Pleases romacjt the Appraisal Distdct eancarning arril aorreatiom in appralmad value,awnerahip,address changar or any apj3IffiatIoi3 for e ernplFara3. Brazos County Appraisal DIstrlct wwvr-6ra2ascad.brg 979-774.4100 C1tlics Land Van FIS 23A61 ralnrolffil RLSE Vt;PH 102,aLilt;a4s.,.0T-V,A,.7E8 U.10i 2020. 23,>3k1'p 23,031 0,50b0tlb 1 to,,,Op ryrA NIA NfA WA NIA NA IVA NIA NIA WA N;A WA WA t5cr¢gg8:[.1fl11J J1 Nl4 NIA NIA NIA. NIA N!A NIA N,'A NIA WA WA NIA W .,. NIA R!A MIA r*'AJ WA WA TOI -DO BE-NO OR ��Cl 23,981 igbe" . T ' NIA WA WA. NIA 'low lr€ . .'. TI?l i aa�8i1e ROCK PRAIRIE MD NOI 2 - 23,991 0,600000 per$100 119,90 F YOU ARE 65YEA,RS OFf GE.OR OLVER GRAAF .� pt,� s l';st�io t 19,90 DISA8LED AND THE PROPERTY DESCMaED IN TH[f; DOCUMENT iS YOUR RESIDENCE.HOMESTEAD,YKIU SHOULD CONTACT THEAPPRAISAL D*TRfr i REGARDING ANY ENTITLEMENT YOU MAY MVE.T4'3Fr ........ ............ POSTPONEMENT 114 THE PAYMENT OF THESE TAXE6_ 2020 TAX RECEIPT + v 1I J2 9 ROCK PRAIRIE MANAGEMENT D18TRICT2 0.00 %r 0.00. ,✓cam...,�_;,`' .."w�'a��4/. �-"�� � � F,;: ��.7 - 12,17f2020 Payment 133. ,; r1 Jp T' mPI -- Belanca Due as of 11012021 U0 �. ( y01 , 1 Invoice Date Invoice# MUNUPAL TAX SERVICE, LLC VU2021 MD2-(la7 dill To Rock Fwide Management District No,2 13333 Northwest Freeway Suite 620 Houston TX 77040 Description Unit Count Rate Amount Avik Bonnerjce,RTA-Tax Assessor Collector tee January 518.00 518.00 2021, 2020 Additional Unit Count Invoiced 2021 16D 0.40 144.00 Thank you for your lousiness. Total $662,00 1'01y 1 � f�} i 13333 Northwest freeway,Suite 620 a Houston,TX 77040 0 PH:710-900-2680 a www.bamanitax.com Invoice law Date Invoice# MUNICIPAL TAX SERVICE, Lt_C t1112O21 i4iD7-098 Bill To Rock Prairie Management District No,2 13333 Northwest Freeway Suite 620 Houston TX 77O40 Description Unit Count mate Amount Copies 114 0.20 22.80 Postage,Mailing,and Handling(1) 0.72 0.72 Record Retention Q_42 0.42 Estimate of Value as of December 1,2020 450.00 450.00 Thank you for your business, Total $473.94 13333 Nedhwest Freeway,Suite 620 Q Houston,TX 77040 0 PK713-900-2880 wwtf bamunitax,com Jurisdiction:MD2 ROCK PRAIRIE MANAGEMENT DI5TRIGT NO.2 Page 1 Delinquent Tax Roll 1/612021 As of 12/3112020 11:06 AM Account No/NsmetAddress Cad NolProperty Descr. jurisdiction Totals excludes Roll#ac cco is Year Tax Le B s ax s t3ira. Penalties Oise Def.P&-I Due ARY Fee Due Escrow Am Total Due Count _Collected 2R17 19,962-78 0,00 o-00 0.00 0.00 0.00 0.00 0 100.009A 2018 49,461.26 0.00 0.00 0.00 0:00 0.00 0.00 0 100.00% 2019 73,299.93 0.00 0.00 0.0f? 0,00 0100 0.00 0 100.00% 2020 116 563.08 110 456.95 0.00 0,00 0.00 0.00 110,456.95 144 5 241%. 110,A56.95 0.00 0,00 0.00 0.00 110,456,95 144 juris ictign Rollback Aeunts Totals Year Tax- Base faxes due Penalties Due e!:P&i Due &Iy Feg Dug Escrow Amt Total Due, Lin 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 0 100,0011/4 0.00 0.00 0.00 0.00 0,00 0:00 0 Report Prepared by B&.fir ml6pel Tax www,bamunitax,cam EXHIBIT „D" RESOLUTION CONCERNING EXEMPTIONS FROM TAXATION WHEREAS, the laws of the State of Texas provide, under certain circumstances, for the exemption of a portion of the value of residence homesteads from ad valorem taxation; and WHEREAS, the Board of Directors of ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 (the "District") has considered the various exemptions which may be granted. 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, the Board of Directors has considered and has decided not to exempt from ad valorem taxation by the District any portion of the appraised value of residence homesteads of individuals who are under a disability for purposes of payment of disability insurance benefits under Federal Old-Age, Survivors, and Disability Insurance or are sixty-five (65) years of age or older, as authorized by, and in accordance with the provisions of, Article 8, Section 1-b (b), Texas Constitution, as amended, and Section 11.13 of the Tax Code, as amended. Section 2: For the tax year 2021 the Board of Directors has considered and has decided not to adopt a general residential homestead exemption as authorized by Article 8, Section 1- b(e), Texas Constitution, as amended, and Section 11.13 of the Tax Code, as amended. Section 3: This Resolution constitutes official action by the Board of Directors of the District concerning the foregoing tax exemptions. PASSED AND ADOPTED this the 14th day of January, 2021. Vlresident, Board of Directors ATTEST: `\ 4 lit w/ of Directors r er 460128-9 EXHIBIT "E" RESOLUTION AUTHORIZING AN ADDITIONAL PENALTY ON DELINQUENT PERSONAL PROPERTY TAXES WHEREAS, the Board of Directors of Rock Prairie Management District No. 2 (the "District") is desirous of defraying the costs of collection of delinquent taxes; and WHEREAS, the District has contracted with an attorney for collection of delinquent taxes as set forth in Section 6.30 of V.T.C.A. Tax Code, as amended("Tax Code"); and WHEREAS, Section 33.11 of the Tax Code, as amended, provides that, if the District has contracted with an attorney under Section 6.30 of the Tax Code, as amended, for collection of the District's delinquent taxes, the District may impose an additional penalty not to exceed the amount of the compensation specified in the contract with the attorney to be paid in connection with the collection of the delinquent personal property taxes on personal property taxes that become delinquent on or after February I of a year and that remain delinquent sixty (60) days after the date on which they become delinquent; and WHEREAS, said Section 3 3.11 provides that said penalty shall not exceed the amount of compensation specified in the contract with the above-described attorney; and WHEREAS, said contract specifies compensation in the amount of twenty percent (20%) of the amount of delinquent tax, penalty and interest collected; Therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 THAT: Section 1. The District has entered into a contract with an attorney pursuant to Section 6.30 and in accordance with Section 33.11 of the Tax Code, as amended, for the collection of delinquent taxes,penalty and interest. Section 2. District taxes on personal property that become delinquent on or after February 1 of a year and that remain delinquent sixty (60) days after said date shall incur an additional penalty of twenty percent (20%) on the amount of such personal property taxes, penalty and interest to defray the costs of collection of said delinquent taxes, in accordance with Section 33.11 of the Tax Code, as amended. Section 3. The District's tax collector shall deliver a notice of delinquency and of the penalty imposed pursuant to Section 2 above to the property owner at least thirty (30) and not more than sixty (60) days before the date on which the penalty will be incurred in the manner required by Section 33.11 of the Tax Code, as amended. Section 4. Delinquent personal property taxes which incur the penalty set Forth in this Resolution shall not be subject to an additional penalty under Section 33.07 of the Tax Code, as amended, it being found and declared by the Board of Directors of the District that the penalty hereunder is an alternative to the authority of said Section 33.07. PASSED AND ADOPTED this the 14th day of January, 2 02 1. ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 ATTEST: By: V�President, Board of Directors By: tary, Board of Directors r17 zz zzr /%0 r3Ett1iSiQ����� -2- 5D8366_6 EXHIBIT "F" Rock Prairie anacgegp�nt District No. 2 Brazos County, Texas Independent Auditor's._Report and Fi'6abcial Statements Nia;y 31, 2020 BKD CPAs&Advis©rs Rock Prairie Management District No. 2 May 39, 2020 Contents Independent Auditor's Report............................................................................................9 Management's Discussion and Analysis...........................................................................3 Basic Financial Statements Statement of Net Position and Governmental Fund Balance Sheet 8 Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance............................ 9 Notes to Financial Statements................... .... 10 Required Supplementary Information Budgetary Comparison Schedule—General Fund .:`: ........................................20 Notes to Required Supplementary Information................:: .......... ...............................................21 Other Information Other Schedules Included Within This Repot,............................ Schedule of Services and Rates...........................:...::.......................................................................23 Schedule of General Fund Expend tures........ ...........................................................................24 Analysis of Taxes Levied andRecezvable.....................................................................................25 Schedule of Revenues;-and;Expendituies—General Fund.............................................................26 Board Members, Ivey PersonraLand Consultants..........................................................................27 �y Independent Auditor's Report Board of Directors Rock Prairie Management District No. 2 Brazos County,Texas We have audited the accompanying financial statements of the governmental activities and general fund of Rock Prairie Management District No. 2 (the District), as of and for the'ear ended May 31,2020,and the related notes to the financial statements,which collectively comprise the District's basic financial statements listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of ill s"e financial statements in accordance with accounting principles generally accepted in the United States of America;this includes the design, implementation and maintenance of internal control rel want to the preparation and fair presentation of financial statements that are free from mate al misstatement,whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions an these financial statements based on our audit. We conducted our audit in accordance with auditing standards an: generally accepted in the United States of America. Those standards require that we pl and pelTo'lrn the audit to obtain reasonable assurance about whether the financial statements are fir "fxom material misstatement. An audit involves perfonrng pocedures to obtain audit evidence about the amounts and disclosures in the financial statements.''The proce'clures selected depend on the auditor's judgment,including the assessment of the i rsks:of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of`the financial statements in order to design audit procedures that are appropriate in the circumstances.-but-.'hot for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Ae ordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used.and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Board of Directors Rock Prairie Management District No. 2 Page 2 Opinions In our opinion, the financial statements referred to above present fairly,in all material respects,the respective financial position of the governmental activities and general fund of the District as of May 31,2020, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that tle:.management's discussion and analysis and budgetary comparison schedule listed in the table of;eantents 15e,presented to supplement the basic financial statements. Such information,although not part of, e basic f j cial statements, is required by the Governmental Accounting Standards Board,who conside%s it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied c&tiih,limitedvtoccdures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of manageinenLabout the mefhods,,of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit a the basic financial statements. We do not express an opinion or provide any assurance on the iijfoiriaaton because the limited procedures do not provide us with sufficient evidence to express an opinion oip•ovide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic fxntncialr, ttements. The other informationas listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the-auditing procedures applied in the audit of the basic financial statements, and accordingly, e do not express an opinion or provide any assurance on it, k" Houston, Texas Rock Prairie Management District No. Management's Discussion and Analysis May 31, 2020 Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The District's basic financial statements are comprised of three components: 1) government-wide financial statements,2)fund financial statements, and 3)notes to financial statements. This report also contains supplementary information required by the Governmental Accounting Standards Board and other information required by the District's state oversight agency,the Texas Commission on Environmental Quality(the Commission). In accordance with required reporting standards,the District reports its financial:activities as a.;,special-purpose government. Special-purpose governments are governmental entities which engage ip a smglegcl, einmental program, such as the provision of water, sanitary sewer and drainage services. .Other activities, such as the provision of recreation facilities and solid waste collection, are minor activities and are nofbudgeted or accounted for as separate programs. The financial statements of specialpurpose goverrunents combine two types of financial statements into one statement. These two types.,of financial statements are the government-wide financial statements and the fund financial statements .The fund financial statements are presented on the left side of the statements, a column for adjustments is to'"the right of the fund financial statements, and the government-wide financial statements are presented to the right side of the adjustments column. The following sections describe the measurement focus of the two types of statements and the significant differences in the information they provide. Government-wide Financial Statements The focus of government-wide financial statements is on tlae overall financial position and activities of the District. The District's government,wide fn anciai statements include the statement of net position and statement of activities,which are prepared using accounting principles that are similar to commercial enterprises. The purpose of the statement of Det gbsition is to attempt to report all of the assets, liabilities, and deferred inflows and outflows of resources"of.the District. The District reports all of its assets when it acquires or begins to maintain the assets=and reports all of its liabilities when they are incurred. The difference between fire District's assets, liabilities, and deferred inflows and outflows of resources is labeled as net position and this difference is similar to the total stockholders' equity presented by a commercial enterprise. :. The purpose of thestatem;errt of activities is to present the revenues and expenses of the District. Again,the items presented on th&statement of activities are measured in a manner similar-to the approach used by a commercial enterprise in that revenues are recognized when earned or established criteria are satisfied and expenses are reported when incurred by the District. All changes in net position are reported when the underlying event giving rise to the change occurs,regardless of the timing of related cash flows. Thus, revenues are reported even when they may not be collected for several months or years after the end of the accounting period and expenses are recorded even though they may not have used cash during the current year. 3 Rock Prairie Management District No, 2 Management's Discussion and Analysis (Continued) May 31, 2020 Although the statement of activities looks different from a commercial enterprise's statement of income, the financial statement is different only in format,not substance, Whereas the bottom line in a commercial enterprise is its net income,the District reports an amount described as change in net position, essentially the same thing Fund Financial Statements Unlike government-wide financial statements, the focus of fund financial statements is"difected to specific activities of the District rather than the District as a whole. Except for the general fund, a specific fund is established to satisfy managerial control over resources or to satisfy finance ro"died legal requiroments established by external parties or governmental statutes or regulations. Governmental Funds Governmental-fund financial statements consist of a balance sheer`and a statement of revenues, expenditures and changes in fund balances and are prepared on an accounting basis than is significantly different from that used to prepare the government-wide financial statements. In general,these financial statements have a short-term emphasis and,for the most part,measure and account for cash and other assets that can easily be converted into cash. For exargiple, amounts reported on the balance sheet include items such as cash and receivables collectible within a very short period of time,but do not include capital assets such as land and water, sewer and drainage systems. Fund liabilities include amounts that are to be paid within a very short period after the end of the fiscl:year. The difference between a fund's assets,liabilities, and deferred inflows and outflows of:respufces is labeled tl7e fund balance and generally indicates the amount that can be used to finance the next fiscal year's activities. Likewise,the operating statement for governmental funds reports only those revenues and;experzi itures that were collected in cash or paid with cash,respectively, during the current period or very shorfly-after thy„end of the fiscal year. Because the focus of the government wide dhd fund financial statements is different,there are significant differences between the totals presented fin ancial nancial statements. For this reason,there is an analysis in the notes to financial statements that d4Yibes the adjustments to fund balances to arrive at net position presented in the governmental"activities column on the statement of net position. Also,there is an analysis in the notes to financial statements that " il's the total change in fund balances for all governmental funds to the change in net position, as z; poited in;, e governmental activities column in the statement of activities. Notes to Financial Statements The notes to financial statements provide additional information that is essential to a full understanding of the data found in the government-wide and fund financial statements. 4 Rock Prairie Management District No. 2 Management's Discussion and ,Analysis (Continued) May 31, 2020 Financial Analysis of the District as a Whole The District's overall financial position and activities are summarized as follows, based on the information included in the government-wide financial statements. Summmy of Net Position Current and other assets $ 48,382 Capital assets 9,074,841 Total assets $ 9,123,223 Long-term liabilities $ 95'641,780 Other liabilities 14,556 Total liabilities 9,656,336 Net position: Net investment in capital assets (566,939) Unrestricted 33,826 Total net position $ (533,113) The total net position of the District decreased by$359,386 The majority of the decrease in net position is related to depreciation expense on the District's capital assets. Although the District's investment in its capital assets is reported net of related debt, it should be not6d that the resources needed to repay this debt must be provided from other sources, since the,capital assets themselves cannot be used to liquidate these liabilities. ,,.Summary of Changes in Net Position Revenues: Property taxes $ 73,312 Other revenues 14,302 Totala evenues 87,614 Expenses: Seivices 125,449 Deprdc�ation 321,551 Total expenses 447,000 Change in net position (359,386) Net position,beginning of year (173,727) Net position,end of year $ (533,113) 5 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2020 Financial Analysis of the District's Fund The general fund's fund balance increased by$29,655,primarily due to property tax revenues and developer advances received exceeding service operations expenditures. General Fund Budgetary Highlights There were several differences between the final budgetary amounts and actual amounts.•=.the major differences between budget and actual were due to property tax revenues, other income and,corltracted sc'71ces expenditures being higher than anticipated. The fiend balance as of May 31,2020,was expected ....be$4,17 apd the actual end-of-year fund balance was $33,826, Capital Assets and Related Debt Capital Assets Capital assets held by the District at the end of the current fiscal year are summarized as follows: Capital Assets (Net of Accumulated Depreciation) Water facilities $ 431,532 Wastewater facilities 2,417,150 Drainage facilities 2,408,836 Road and paving facilities 3,817,323 Total capital assets $ 9,074,841 During the current year, addrtta�s to capital assets were as follows: Water.,stogn ferVdpavii6cilities to serve Bird Pond Road $ 5,036,936 Water,sewer,drainabzndpaving facilities for Midtown Reserve 'bdivision,Phases:100 and 102,and Midtown City Center, Phas� 2,132,144 Total additions to capital assets $ 7,169,080 The developer within the District has constructed facilities on behalf of the District under the terns of the contracts with the District. The District has agreed to purchase these facilities from the proceeds of future bond issues subject to the approval of the Commission. As of May 31,2020, a liability for developer constructed capital assets of$9,447,013 was recorded in the government-wide financial statements. 6 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2020 Debt The changes in the debt position of the District during the fiscal year ended May 31, 2020, are summarized as follows: Long-term debt payable, beginning of year $ 2,405,210 Increases in long-term debt 7,236,570 Long-term debt payable, end of year $ }��41,780 At May 31, 2020, the District had$71,400,000 of unlimited tax bonds authorized,but,unissued,,for the purposes of acquiring, constructing and improving the water, sanitary sewer and drainage systetrrs within'the District and $106,600,000 of unlimited tax bonds authorized, but unissued,for the purpose of cons� ting road and paving facilities. Other Relevant Factors Relationship to the City of College Station Under existing Texas law, since the District lies wholly within the corporate boundaries of the City of College Station(the City),the District must conform to the City ordinance consenting to the creation of the District. In addition,the District may be dissolved by the City without the District's consent. If the District is dissolved, the City must assume the District's assets and obligations (iuQl.uding the bonded indebtedness). Economic De endenc The District's developer owns the matoaty of the taxable property in the District. The District's ability to meet its obligations is dependent on the,develop 's ability to pay property taxes. Since inception,the developer lias advanced$194.767 to the District for operations. The District does not have sufficient funds or anticipated revenues sufficient to liquidate these advances during the forthcoming fiscal year. These advances1bave been recorded as"liabilities in the government-wide financial statements. Contin cg noes The Developer ofle„District is constructing water, sewer, drainage and paving facilities within the boundaries of the District. The District has agreed to reimburse the developer for a portion of these costs,plus interest, from the proceeds of future bond sales,to the extent approved by the Commission. The District's engineer has stated that current construction contract amounts are approximately$5,640,000. This amount has not been recorded in the financial statements since the facilities are not complete or operational. 7 Rock Prairie Management District No. 2 Statement of Net Position and Governmental Fund (Balance Sheet May 31, 2020 Statement General of Net Fund Adjustments Position Assets Cash $ 48,382 $ _ $ 48,382 Capital assets(net of accumulated depreciation): Infrastructure - 5,257;518 5,257,518 Roads and paving - 3,817,323, 3,817,323 Total assets $ 48,382 $ 9;074 841 $ 9,123,223 Liabilities Accounts payable $ 14,556.... $ - $ 14,556 Long-term liabilities,due after one year ;' 9,641,780 9,641,780 Total liabilities 14,556 � 9,641,780 9,656,336 Fund Balance/Net Position Unassigned fund balance 33,826 (33,826) 0 Total liabilities and fund balanee $ 48,382 Net position: Net investment in capital assets (566,939) (566,939) Unrestricted _ 33,826 33,826 Total net position' $ {533,113) $ (533,113) See Notes to Financial Statements 8 Rock Prairie Management District No. Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance Year Ended May 31, 2020 Statement General of Fund Adjustments Activities Revenues Property taxes $ 73,312 $ - $ 73,312 Penalty and interest 3,092 - 3,092 Investment income 54 - 54 Other income 11,156 - 11,156 Total revenues 87,614 Q.;, 87 614 Expenditures/Expenses Service operations: Professional fees 97,192 - 97,192 Contracted services 19,256 - 19,256 Other expenditures 9,0QI - 9,001 Depreciation 321,551 321,551 Total expenditures/expenses 125,449:- 321,551 447,000 Deficiency of Revenues Over Expenditures (321,551) Other Financing Sources Developer advances received 67,490 (67,490) Excess of Revenues and Other Financing-Sources Over Expenditures and Other Financing Uses 29,655 (29,655) Change in Net Position (359,386) (359,386) Fund Balance/Net Position Beginning of year 41171 - (173,727) End of year $ 33,826 $ 0 $ (533 113) See Notes to Financial Statements 9 rl Rock Prairie Management District No. Notes to Financial Statements May 31, 2020 Note 1: Nature of Operations and Summary of Significant Accounting Policies Rock Prairie Management District No. 2 (the District)was created under Section 59,Article XVI, of the Texas Constitution added by an Act of the 83"Legislature of the State of Texas, effective June 14, 2013,in accordance with the Texas Water Code, Chapter 54. The District operates in accordance with Chapter 3837, Texas Special District Local Laws Code, Chapters 49 and 54 of the Texas Water Code and Chapter 375 of the Texas Local Government Code, and is subject to the continuing supervision of the Texas Commission on Environmental Quality,( e Commission). The District was created to promote and encourage employment and the public welfare.within the District. The affairs of the District are managed by a Board of Directors{the Board)composed of persons appointed by the governing body of the City of College Statt n(th ,City) Thd District is a component unit of the City. The Board sets the policies of the District. The accot nting�and reporting... Ii xt*s of the District conform to accounting principles generally accepted in Elie Untied Stites of inerica for state and local governments, as defined by the Governmental AccountinStandards Board. The following is a suminary of the significant accounting and reportiPjg,policies of the District: Reporting Entity The accompanying government-wide Financial statements present the financial statements of the District. There are no component units that are legally separate entities for which the District is considered to be financially accountable lkccountability is defined as the District's substantive appointment of the voting majority of the coMponent unit's governing board. Furthermore,to be financially accountable,t'he.➢istrict must be abie'to impose its will upon the component unit or there must be a possibility thafilie c6inponent unit may provide specific financial benefits to, or impose specific financial burdens on,"the District. Government-wide and.FOO Financial Statements In accordance with iec'un`ed ieporting standards,the District reports its financial activities as a special pxuposc civernrxretit" Special-purpose governments are governmental entities which engage in a$ingle gavgrnmetal_program, such as the provision of water,wastewater, drainage and other r:etaied services Theiancial statements of special-purpose governments combine two types of financial statements into one statement. These two types of financial statements are the government wil&financial statements and the fund financial statements. The fund financial statements'*" tatements ate presented with a column for adjustments to convert to the government-wide financial statements.' The government-wide financial statements report information on all of the activities of the District. As a general rule,the effect of interfund activity has been eliminated from the government-wide financial statements. Governmental activities generally are financed through taxes, charges for services and intergovernmental revenues. The statement of activities reflects the revenues and expenses of the District. 10 Rock Prairie Management District No. Notes to Financial Statements May 31, 2020 The fund financial statements provide information about the District's governmental funds. Separate statements for each governmental fund are presented. The emphasis of fund financial statements is directed to specific activities of the District. The District presents the following major governmental fund. General Fund—The general fund is the primary operating fund of the District which accounts for all financial resources not accounted for in another fund, Revenues are derived primarily fx'om propet-ty taxes, charges for services and interest income. Fund Balance— Governmental Fund The fund balance for the District's governmental fund can be displayed in up;to,fide components: Nonspendable—Amounts that are not in a spendable form or are requited to be maintained intact. J. Restricted—Amounts that can be spent only for the specific purposesstipulated by external resource providers, constitutionally or through enabling legislation. Restrrttons may be changed or lifted only with the consent of resource providers. Coininitted—Amounts that can be used:only for tlespecific purposes determined by resolution of the Board. Commitments may be changed or lifted only by issuance of a resolution by the District's Board. Assigned—Amounts intended to be used by the District for specific purposes as determined by management. In governmental-funds other than the general fund, assigned fund balance represents the amount that is not restricted,6r committed. This indicates that resources in other governmental funds are,at a minimum, intended to'be used for the purpose of that fiord. Unassigned—The residual classification for the general fund and includes all amounts not contained in the other class'ficatiozrs, The District coxi'srders e`stricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. The District applies comrxrrtted amotitits first, followed by assigned amounts, and then unassigned amounts when an expenditure is„incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. 91 Rock Prairie Management District No. 2 Dotes to Financial Statements May 31, 2020 Measurement Focus and Basis of Accounting Government-wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred,regardless of the timing of related cash flows. Nonexchange transactions,in which the District receives (or gives)value whhAt,directly giving(or receiving) equal value in exchange, include property taxes and donations....'Recognition standards are based on the characteristics and classes of nonexchange transactions Revenues from property taxes are recognized in the period for which the taxes are levied, lntergove`nmental revenues are recognized as revenues,net of estimated refunds and uncollectible amounts,;in th6accounting period when an enforceable legal claim to the assets arises and the„use of resources is required or is first permitted. Donations are recognized as revenues,net of estrzrrated uncollectible amounts, as soon as all eligibility requirements imposed by the provider havebeen r et. Amounts received before all eligibility requirements have been met are reported;as liabihtres Fund Financial Statements Governmental funds are reported using,the cuiTent financial resources measurement focus and the modified accrual basis of accounting.rii this resurement focus, only current assets and liabilities are generally included on the balance she4'The statement of governmental funds revenues, expenditures and changes in fund balances pr'dsents increases(revenues and other financing sources) and decreases(expenditures and other frnancin uses)in spendable resources. General capital asset acquisitions are reported as expenditures and proceeds of long-term debt are reported as other financing sources. Under the` io"ed accrual basis of accounting,revenues are recognized when both measurable and available;The Disfnet considers revenues reported in the governmental funds to be available if they are,collectible:;within 60 days after year-end. Principal revenue sources considered susceptible to accl ual,ielude taxes, charges for services and investment income. Other revenues are considered to be measurable and available only when cash is received by the District. Expenditures are recorded vien the related fund liability is incrured, except for principal and interest on general long-tci debt,which are recognized as expenditures when payment is due. ©eferredOutflow`s and Inflows of Resources A deferrc outflow of resources is a consumption of net position that is applicable to a future reporting period and a deferred inflow of resources is an acquisition of net position that is applicable to a future reporting period. Pension Costs The District does not participate in a pension plan and,therefore,has no pension costs. 12 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2020 Use of Estimates The preparation of financial statements in confonnity with accounting principles generally accepted in the United States of America requires management to snake estimates and assumptions that affect the reported amounts of assets,liabilities,and deferred inflows and outflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates. Investments and Investment Income Investments in certificates of deposit,mutual funds,U.S. Government and agency securities, and certain pooled funds,which have a remaining maturity of one year or less at the date of purchase, are recorded at amortized cost. All other investments are cai:yied,at fan value Farr value is determined using quoted market values. - Investment income includes dividends and interest income and the net change for the year in the fair value of investments carried at fait'value. Investme at:income is credited to the fund in which the investment is recorded. Property Taxes An appraisal district annually prepares appraisal records listing all property within the District and the appraised value of each parcel or item as`of.January 1. Additionally, on January 1, a tax lien attaches to property to secure.the payment of all taxes,penalty and interest ultimately imposed for the year on the property. After fhc:.District receives its certified appraisal roll from the appraisal district,the rate of taxation xs'set by 7.he Board of the District based upon the aggregate appraisal value. Taxes are due and paya.Ule October 1 or when billed,whichever is later, and become delinquent after Januai 31 of the:following year. V.In the governmental funds,property taxes are initially recorded as receivables and deferred inflows of resources;at 11ie time the tax levy is billed. Revenues recognized during the fiscal year ended May,3T,'2020,,include collections during the current period or within 60 days of year-end related to ttrc.2019 and prior years'tax levies. In the go ernnreiii-wide statement of net position,property taxes are considered earned in the budget year for which they are levied. For the District's fiscal year ended May 31, 2020, the 2019 tax levy is consideret'earned during the current fiscal year. In addition to property taxes levied, any delinquent taxes are recorded net of amounts considered uncollectible. 13 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2020 Capital Assets Capital assets,which include property,plant, equipment and infrastructure, are reported in the government-wide financial statements. Capital assets are defined by the District as assets with an individual cost of$5,000 or more and an estimated useful life of two years or more. Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated capital assets are recorded at their estimated acquisition value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the`asset or materially extend the asset lives are not capitalized Capital assets are depreciated using the straight-line method over their estini`ated useful lives as follows: Years Water production and distribution facilities 10-45 Wastewater collection and treatment facilities 10-45 Drainage facilities 10-45 Road and paving facilities 10-40 Long-term Obligations In the government-wide financial statements,�lopg=term debt and other long-term obligations are reported as liabilities. Prehfibnis,hnd discounts on bonds are recognized as a component of long-team liabilities and arnptt.tized over the life of the related debt using the effective interest rate method. Bonds payable aia ieported nef of the applicable bond premium or discount. In the fund financial statements,`k.oernmental fund types recognize bond premiums and discounts during the curaent period The;face amount of debt issued is reported as other financing sources. Premiums receryed on debt issuances are reported as other financing sources while discounts on debt issuances are zepaft .d as other financing uses. Issuance costs,whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Net Posid6n/FunT..Balance Fund balan` "and net position are reported as restricted when constraints placed on them are either externally unposed by creditor's, grantors, contributors, or laws or regulations of other governments, or are imposed by law through constitutional provisions or enabling legislation. 14 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2020 When both restricted and unrestricted resources are available for use, generally, it is the District's policy to use restricted resources first. Reconciliation of Government-wide and Fund Financial Statements Amounts reported for net position of governmental activities in the statement of net position and fund balance in the governmental fund balance sheet are different because: Capital assets used in governmental activities are not financial resources and are not reported in the fiuids. $ : 9,074,841 Long-term liabilities are not due and payable in the current period aid are not reported in the funds. (9,641,780) Adjustment to fund balance to arrive at net position $ (S6b,939} Amounts reported for change in net position of governmental activities in the statement of activities are different from change in fund balance in the g6oe nnental fund statement of revenues, expenditures and change in fund balance because: Change in fund balance. $ 29,655 Governmental funds report capital outlays as expenditures. However, for government-wide financial statements,the cost of capitalized assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amouzit`of preciation expense in the current year. (321,551) Governmental funds report qeveloper advances as other financing sources or uses as amounts are received or paid. However,for government-wide financial statements,;,these'a unts are recorded as an increase or decrease in due to developer. (67,490) Change lif ne1 posttian of governmental activities. $ (359,386) Note 2: Deposits, Investments and Investment income Deposits Custodial credit risk is the risk that, in the event of a bank failure, a government's deposits may not be returned to it. The District's deposit policy for custodial credit risk requires compliance with the provisions of state law. 15 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2020 State law requires collateralization of all deposits with federal depository insurance; a surety bond; bonds and other obligations of the U.S. Treasury,U.S. agencies or instrumentalities of the State of Texas; or certain collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States,the underlying security for which is guaranteed by an agency or instrumentality of the United States or letters of credit issued by a federal home loan bank. The District has entered into one or more collateral security agreements with depository institutions that are more restrictive than state laws as to the type of securities with which the District's deposits may be collateralized. At May 31,2020, none of the District's bank balances were exposed to custodial credit risk, Investments The District may legally invest in obligations of the United States or its agencies and instrumentalities, direct obligations of Texas or its collateralized mortgage obligations directly issued by a federal agenc)(or insfi-umentality of the United States, the underlying security for which is guaranteed by an agency or inst�umelatality of the United States, other obligations guaranteed as to principal and int'rest by the Slate ap Texas or the United States or their agencies and instrumentalities, including obligatiibn s that of, Ily guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit lull faith and credit of the United States, obligations of states, agencies and counties and other politi&l`subdivisions with an investment rating not less than "A," insured or collateralized cert;ficaies of deposit, and certain bankers' acceptances, repurchase agreements,mutual funds,cofthnercial paper, guaranteed investment contracts and investment pools. The District's investment,policy may be more res4t7ctive than the Public Funds Investment Act. At May 31, 2020,the Disti-id had no,investments, s:. Note 3. Capital Assets; A summary o£clanges in capital assets for the year ended May 31,2020, is presented as follows: Balances, Balances, Beginning End Governmental Activities of Year Additions of Year Capital assets,depreciable: Water production and distribution facilities $ - $ 441,339 S 441,339 Wastewater collection and treatment facilities 2,277,933 245,924 2,523,857 Drainage facilities - 2,463,582 2,463,582 Road and paving facilities - 4,018,235 4,018,235 Total capital assets,depreciable 2,277,933 7,169,080 9,447,013 16 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2020 Balances, Balances, Beginning End Governmental Activities Continued of Year Additions of Year Less accumulated depreciation: Water production and distribution facilities $ - $ (9,807) $ (9,807) Wastewater collection andtreatmentfacilities (50,621) (56,096) (106,707) Drainage facilities - (54,746) (54,746) Road and paving facilities - (200,912) (200,912) Total accumulated depreciation (50,621) (321,55.1} {:372172) Total govermnental activities,net $ 2,227,312 $ 6847,529 $ 9,074,841 Note 4: Long-term Liabilities Changes in long-term liabilities for the year ended May 31, 2020;,were as follows: Balances, Balances, Amounts Beginning End Due in Governmental Activities of Year Increases of Year One Year Due to developer,advances $ 127.,277 $ 67,490 $ 194,767 $ - Due to developer,construction 2,277,933 7,169,080 9,447,013 - Total govermnental activities long-term liabilities $ 2,405,210 $ 7,236,570 $ 9,641,780 $ 0 Bonds voted: Water, sewer and damage-;facilities $ 71,400,000 Road'and pavtng.factItttes 106,600,000 Refunding bond authorization 178,000,000 Due to De�rloper, The developer of the District has constructed facilities on behalf of the District. The District is maintaining and operating the facilities and has agreed to reimburse the developer for these construction costs and interest to the extent approved by the Commission from the proceeds of future bond sales. The District's engineer estimates reimbursable costs for completed projects are $9,447,013, These amounts have been recorded in the financial statements as long-term liabilities. 17 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2020 Note 5: Maintenance Taxes At an election held November 3,2015,voters authorized a maintenance tax not to exceed$1.00 per $100 valuation on all property within the District subject to taxation. During the year ended May 31, 2020,the District levied an ad valorem maintenance tax at the rate of$0.50 per$100 assessed valuation,which resulted in a tax levy of$73,300 on the taxable valuation of$14,659,986 for the 2019 tax year. The maintenance tax will be used by the general fund to pay expenditures of operating the District. Note 6. Risk Management The District is exposed to various risks of loss related to torts; theft of, damage to:and destruction of assets; errors and omissions; and natural disasters for wh.ic.:h the District:.can-tMiCommercial insurance. The District has not significantly reduced in4u dfi&cover4 of lied settlements which exceeded coverage amounts in the past three fiscal years: Note 7; Economic Dependency The District's developer owns the majority of the taxable property in the District. The District's ability to meet its obligations is deperid0:P on the-,,,,'developer's ability to pay property taxes. Since inception,the developer has advanced`$194,767 to the District for operations. The District does not have sufficient funds`or anticipated teyeiiIxes sufficient to liquidate these advances during the forthcoming fiscal year. Theseadvances have been recorded as liabilities in the government-wide financial statements. , Note 8: Contingencies The Developez o the Distrrcti is constructing water, sewer, drainage and paving facilities within the boundaries oftlie District. The District has agreed to reimburse the developer for a portion of these eost,si plus interest, fi6fn the proceeds of future bond sales,to the extent approved by the C011116sion Tit District's engineer has stated that current construction contract amounts are appzoxiffi tely$, 640,000. This amount has not been recorded in the financial statements since the facilities aye not complete or operational. 18 Rock Prairie Management District No. Notes to Financial Statements May 31, 2020 Note 9. Uncertainties As a result of the spread of the SARS-CoV-2 virus and the incidence of COVID-19, economic uncertainties have arisen which may negatively affect the financial position and results of operations of the District. The duration of these uncertainties and the ultimate financial effects cannot be reasonably estimated at this time. 19 4 Required Supplementary "rm ti®n Rock Prairie Management District No. Budgetary Comparison Schedule -- General Fund Year Ended May 31, 2020 Variance Original Favorable Budget Actual (Unfavorable) Revenues Property taxes $ 40,000 $ 73,312 $ 33,312 Penalty and interest - 3,092 3,092 Investment income 10 5-4 44 Other income - 11,15 b'` 11,156 Total revenues 40,010 87614 47,604 Expenditures Service operations: Professional fees 93,006 97,192 (4,192) Contracted services 6,00619,256 (13,256) Other expenditures 8,500 9,001 (501) Total expenditures 107 500. 125,449 (17,949) Deficiency of Revenues Over Expenditures '(67,490) (37,835) 29,655 Other Financing Sources Developer advances received 67,490 67,490 - Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses - 29,655 29,655 Fund Balance,Beginning ofYear 4,171 4,171 - Fund'Balanee,EndofYear $ 4,171 $ 33,826 $ 29,655 20 Rock Prairie Management District No. 2 Notes to Required Supplementary Information May 31, 2020 Budgets and Budgetary Accounting An annual operating budget is prepared for the general fund by the District's consultants. The budget reflects resources expected to be received during the year and expenditures expected to be incurred. The Board of Directors is required to adopt the budget prior to the start of its fiscal year. The budget is not a spending limitation (a legally restricted appropriation). The original budget of the general fund was not amended during fiscal 2020. The District prepares its annual operating budget on a basis consistent wrth accounting principles generally accepted in the United States of America. The Budgetary Comp.ansoi Schedule; ,.General Fund presents the original and revised budget amounts,if revised, compared t"e ac'ti`al amounts of revenues and expenditures for the current year. ti l 21 Other lnf®rmati'o Rock Prairie Management District No. 2 Other Schedules Included Within This Report May 31, 2020 (Schedules included are checked or explanatory notes provided for omitted schedules.) [X] Notes Required by the Water District Accounting Manual See "Notes to Financial Statements," Pages 10-19 [X] Schedule of Services and Rates [X] Schedule of General Fund Expenditures [ ] Schedule of Temporary Investments—Not Applicable [X] Analysis of Taxes Levied and Receivable [ ] Schedule of Long-term Debt Service Requirements-by Years—Not Applicable [ ] Changes in Long-term Bonded Debt—Not Applicable [X] Schedule of Revenues and Expenditures—General Fund [X] Board Members,Key Personnel and Consultants 22 Rock Prairie Management District No. 2 Schedule of Services and Rates Year Ended May 31, 2020 1. Services Provided by the District: X Retail Water —Wholesale Water X Drainage X Retail Wastewater _Wholesale Wastewater _Irrigation X Parks/Recreation _Fire Protection Security Solid Waste/Garbage _Flood Control X Roads Participates in joint venture,regional system and/or wastewater service(other than emergency interconnect) Other iw 23 Rock Prairie Management District No, 2 Schedule of General Fend Expenditures Year Ended May 31, 2020 Personnel {including benefits} $ - Professional Fees Auditing $ - Legal 64,614 Engineering 32,578 Financial advisor - 97,192 Purchased Services for Resale Bulk water and wastewater service purchases - Regional Water Fee Contracted Services Bookkeeping 1,72-4. General manager - Appraisal district 569 Tax collector 10,963 Security ys - Other contracted services 19,256 Utilities - Repairs and Maintenance - Administrative Expenditures Directors'fees - Office supplies 946 Insurance 3,536 Other administrative expenditures 4,519 9,001 Capital Outlay Capitalized assets - - Expenditures not capitalized - - Tap Connection Expenditicres Solid Waste 17lsposal - Fire Fighting - Parks and Recreation - Other Expenditures Total expenditures $ 125,449 24 Rock Prairie Management District No, 2 Analysis of Taxes Levied and Receivable Year Ended May 31, 2020 Maintenance Taxes Receivable, Beginning of Year $ 0 2019 Original Tax Levy 76,036 Additions and corrections (2,736) Adjusted tax levy 73,300 Total to be accounted for 73,300 Current year tax collections (73,300) Receivable, end of year $ 0 2019` <,,;;;<' 2018 2017 Property Valuations Land. $ 14,912,916 $ 9,910,610 $ 4,096,653 Personal property 909,670 309,850 - Exemptions (1,162,600) (328,210) (104,096) Total property valuations $ 14,659,986 $ 9,892,250 $ 3,992,557 Tax Rates per$100 Valuation Maintenance tax rates* $ 0.5000 $ 0.5000 $ 0,5000 Tax Levy $ 73,300 $ 49,461 $ 19,963 Percent of Taxes allected'to Taxes Levied" 100% 100% 100% *Maximum tax rate approved by voters: $1.00 on November 3, 2015 **Calculated as taxes collected for a tax year divided by taxes levied for that tax year. 25 Dock Prairie Management District No. 2 Schedule of Revenues and Expenditures -- General Fund Year Ended May 31, 2020 Percent of Fund Total Amounts Revenues Genet-at Fund Revenues Property taxes S 73,312 83.7 % Penalty and interest 3,092 3.5 Investment incorno 54 0.1 Other income 11,156 12.7 Total revenues $7,614 100.0 Expenditures Service operations: Professional fees 47,192 110.9 Contracted services 19,256 21,9 Other expenditures 001 10.3 Total expenditures 125,449 143.1 Deficiency of Revenues Over Expenditures (37,835) (43.1) 41 Other Financing Sources Developer advances 67,490 1Xcess of Revenues and Other f oancin'g.,Sources Over Expenditures and Other Financilt"es 29,655 1uud Balance,Beginning ofYear 4171 Fund Balance,Find of Year $ 33,826 Total Active Reta!1 Wales Oainraectio5as. NIA '.Total Actn«Ret�l:::Waste�tiater`:CbunectIons N/A 26 Rock Prairie Management District No. Board Members, Key Personnel and Consultants Year Ended May 31, 2020 Complete District mailing address: Rock Prairie Management District No. 2 c/o Schwartz,Page&Harding,L.L.P, 1300 Post Oak Boulevard, Suite 1400 Houston,Texas 77056 District business telephone number: 713.623,4531 Submission date of the most recent District Registration Form (TWC Sections 36.054 and 49.054): July 11,2019 Limit on fees of office that a director may receive during a fiscal year: $ 7,200 Term of Office Elected & Expense " Title at Board Members Expires Fees ' `Reimbursements Year-end Appointed 06/19T Uri Geva 06/23 $ 0.: $ 0 President Appointed, 06119- Vice Hays Glover 06/23 0 0 President ppointcd 06/I7- Jonathan Stark 05/21 0 139 Secretary Appointed 02/20- Assistant William Lewis '6/21 0 463 Secretary Appointed 06/19- Assistant Mark Lindemuld&:.�' 06/23 0 492 Secretary Appointed 06/17- Kamal Ariss 02/20 0 139 Resigned *The District is a management district,therefore,no directors'fees are paid. 27 Rock Prairie Management District No. 2 Board Members, Key Personnel and Consultants (Continued) Year Ended May 31, 2020 Fees and Expense Consultants Date Hired Reimbursements Title Tax Assessor/ B&A Municipal Tax Service, LLC 05/02/17 $ 10,963 Collector BI-D, LLP 05/12/20 0 t Auditor t . Legislative Brazos Central Appraisal District Action 569... Appraiser F; E Edminster, Hinshaw, Russ and Associates, Inc. 08/18/15 32,57$` Engineer Municipal Accounts &Consulting, L.P. 08/1811 8,766 Bookkeeper Financial Post Oak Municipal Advisors LLC 05110/l$; 0 Advisor General Schwartz, Page & Harding, L.L.P. 07130/15 67,306 Counsel Investment Officers Mark M. B-arton and Ghia Lewis 08/18/15 N/A Bookkeepers t , 28 EXHIBIT "G„ Board of Directors Rock Prairie Management District No. 2 Brazos County,Texas In planning and performing our audit of the financial statements of Rock Prairie Management District No. 2 (the District) as of and for the year ended May 31, 2020, in accordance with auditing standards generally accepted in the United States of America, we considered the District's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an, opinion on the effectiveness of the District's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all deficiencies, significant deficiencies or material weaknesses have been identified. Howeveri as discussed below, we identified certain deficiencies in internal control that we consider to be material weaknesses. A deficiency exists when the design or operation of a control:does not 6116w management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements of the District's financial statements on a timely basis: A deficiency in design exists when a control necessary to meet a control objective is missing or an existing control is not properly designed so that, even if the control operates as desigied,,a control objective would not be met. A deficiency in operation exists when a properly designed control. does not operate as designed or when the person performing the control does not possess the necessary;-authority or competence to perform the control effectively. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the District's financial statements will not be prevented or detected and cor.ected on a timely basis. A significant deficiency:`is a deficiency, or combination of deficiencies, in internal control that is less severe than a immaterial weakness yet important enough to merit attention by those charged with governance. We observed the following matters that we consider to be material weaknesses. Material Weaknesses The District's management consists of an elected Board of Directors (the Board). Day-to-day operations are performed by private entities (Consultants)under contract with the District. The Board supervises the performance of the Consultants; however, although Consultants can be part of the District's system of internal control,the Consultants are not members of management. Per auditing standards, management is responsible for design and implementation of the District's system of internal controls. Board of Directors Rock Prairie Management District No. 2 Page 2 Per auditing standards, one of the primary controls within the system of internal controls is related to the preparation of the financial statements. Management of the District is responsible for either preparing the financial statements or having the knowledge to determine whether the financial statements have been properly prepared and are free from potential misstatement. The absence of this expertise within management, or a Consultant of the District hired to perform this service, is considered by auditing standards to be a material weakness in internal control over financial reporting. During the course of performing an audit, it is not unusual for the auditor to prepare various journal entries to correct and present the financial statements on the government-wide basis of accounting. The inability of management (or a Consultant of the District hired to perform this service) to detect these necessary adjustments is considered by auditing standards to be a material weakness in internal control over financial reporting. Finally, management, or a Consultant of the District, does not prepare the capital asset and depreciation register or post adjustments related to the presentation of the capital assets rn the,':government-wide financial statements. As management is not preparing or reviewing and does not have the expertise to prevent, detect and correct related significant potential misstatements, thi.s''is considered by auditing standards to be a material weakness. The material weaknesses noted above, if not corrected;,,::,-could resu It..in' a material misstatement or omission of a required disclosure in the financial statements` Mana ement's Response The District responds that the auditor's Management Letter, and the material weaknesses identified therein, are prepared in response,to, Statement on Auditing Standards No. 115 (SAS 115) and are not prompted by any other circumstances"'identified during the course of the audit and disclosed to the District's Board. As you know, the Board has,, since ,the inception of the District, engaged the auditor to perform the District's audit and to prepare'die financial statements and capital asset and depreciation schedules upon which the audit is based....,It is our,understanding that this is the usual and customary practice for smaller special districts in Texas:, as it is snore cost effective to engage Consultants to perform such services than to employ persons {who`would constitute district management) to perform same. It is also the Board's understanding that, udder the:;requirements of SAS 115, the engagement of the auditor to perform these services resulted in the Management Letter because(1) the Board members are not able to prevent, detect and correct a misstatement in the preparation of the District's financial statements or its capital asset and depreciation schedules: or to make adjustments to same, and (2) the Board has not implemented controls to prevent, detect:and correct a misstatement in the preparation of the District's financial statements or capital asset and depreciation schedules, such as the hiring of an employee or the engagement of another Consultant to prepare the District's financial statements or capital asset and depreciation schedules. With respect to items (1) and (2) identified above, the Board responds that its members are appointed or elected in accordance with the requirements set forth in the Texas Water Code, and that such members do not necessarily have the ability to prevent, detect and correct a misstatement in the preparation of the District's financial statements or its capital asset and depreciation schedules or to make adjustments to same. Board of Directors Rock Prairie Management District No. 2 Page 3 Further, the Board responds that it is a small government unit and that it engages the auditor based upon the auditor's professional qualifications, and in light of such qualifications, does not feel that the addition at this time of an employee or the engagement of a Consultant to prepare the District's financial statements and capital asset and depreciation schedules (as a form of control) would be cost effective. Additionally, the Board adds that the District does not have any employees, but rather engages Consultants who possess industry knowledge and expertise to provide financial services, including its bookkeeper, auditor and financial advisor, as well as Consultants that provide legal, engineering, and operation and maintenance services. In particular, the District's bookkeeper presents periodic financial information (unaudited) to the Board for review, which information generally reflects income, disbursements, adjustments and the status of investments relative to the District's various accounts. Management's written response to the material weaknesses identified in our audit has not been subjected to the auditing procedures applied in the audit of the financial statements, and accordingly, we express no opinion on it. This communication is intended solely for the information and use`of,managgment,,the Board of Directors and the Texas Commission on Environmental Quality, and is not intended to be, and should not be, used by anyone other than these specified parties. , 2021 EXHIBIT "H" BPE -726 EH RA TNo.too. 2300 TBPLS o.1009300 ENG BNEEWNG'THE FUTURE SINCE 1936 ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 ENGINEERING REPORT JANUARY 2021 Engineering Report, including: 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 No Update. Board Action: None. b. Authorize the award of/or concurrence in award of contracts for the construction of facilities within the District, authorizing acceptance of Texas Ethics Comnussions ("'1EC") Form 1295 and approval of any storm water permits. EHRA reviewed and tabulated the bid received on Tuesday,January 12,2021, for Midtown Reserve Subdivision—Phase 106. The bidder is Greens Prairie Investors,Ltd. in the amount of 3684,947.80 and, therefore,recommend that the contract for this project be awarded to Greens Prairie Investors, Ltd. for the aforementioned amount, contingent upon approval of bonds and certificate of insurance. Board Action: Award construction contract to Greens Prairie Investors, Ltd. EHRR Engineering 110011 Meadowglen Lane I Houston,Texas 77042 1 t 713.784,4500 I f 713.784.4577 Rock Prairie Management District No. 2 Januaiy 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. Construction of on-site sanitary sewer trunk line by Greens Prairie Investors,Ltd, Contractor Greens Prairie Investors,Ltd. Contract Days 120 days .Approved Extensions 0 days Contract Coinpletion Date 8/30/2018 Date Approved Comment Contract Bid Amount $322,584.00 5/2/2018 Notice to Proceed Issued Quantity.r]djusaneut S53 337.33 7/9/2020 Retnove Detvatering Total.Contract A noutit $269,246.67 Pay Request No.1 $242,322.00 7/9/2020 Total Pay Requests $242,322.00 Remaining on Contract $26,924.67 10.00%of Contract Remaining Construction is substantially complete. Board Action: None. 2. Midtown Reserve,Phase 104 by Greens Prairie Investors,Ltd. Contractor Greens Prairie Investors,Ltd, Contract Days 160 days Approved Extensions 0 days Contract Completion Date Date Approved Comment Contract Bid tllnount S471,655.50 Notice to P oceed Issued Total Contract Ainount $471,655.50 Total Pay Requests S0.00 Remaining on Contract $471,655.50 100.00%of Contract Rcinai=g Construction is underway. Board Action: None. EHRA PAPA Cnnia aflrinn 1 1M11 Hnvireuntnn I inn I WniiNnn T.-7711A7 1 4713 7RA Arnn I f71)7RA AQ7 Gi 1 C524P3C_THE FUTURE Rock Prairie Management District No. 2 January 2021 Page 3 3. Irrigation of Phase I Park Development by Green Teams,Inc. Contractor Green Teams,Inc. ConttactDays 45 days Approved Extensions 0 days Contract Completion Date 5/10/2020 Date Approved Conmient Contract Bid fount 5435,305.00 3/27/2020 Notice to Proceed Issued Gunge Order No.1 $5,760.00 9/10/2020 Sleeves&\deter Change Order No.2 55,756.00 9/10/2020 Sleves&1rr.Heads ChxTv Order No.3 S16 400.00 9/10/2020 Bore Cinder Road Total Contract Amount $463,221.00 Pay Request No.1 $231,304.50 7/9/2020 Pay Request No.2 5157,208,40 9/10/2020 Total Pay Requests $388,512.90 Remaining on Contract $74,709.10 16.13%of Contract Remaining Construction is substantially complete. Board Action: None. 4. Midtown Reserve,Phase 105 by Greens Prairie Investors,Ltd. Contractor Greens Prairie Investors,Ltd. ContractDajs 150 days Approved Extensions 0 days Contract Completion Date 10/4/2020 Date Approved Cotntneut Contract Bid Amount 51.961.787.50 5/7/2020 Notice to Proceed Issued To tal Contract Amount $1,961,787.50 Total Pay Requests $0.00 Remain on Contract $1,961,787.50 100.00%of Contract Remaining Board Action: None. EHRA FWOE Cnninanrinn 1 1nn11 KAaarinwolnn I inn I Wm tfAn rav�c 770A)I r71q 794 ngnn I f 71Q 752A nc77 Em7g F-PRtur THE FUTURE Rock Prairie Management District No. 2 January 2021 Page 4 d. Acceptance of site and/or casement conveyances for facilities to be constructed for the District and acceptance of facilities for operation and maintenance purposes. e. Status of acceptance by time City of College Station,Texas for maintenance of streets. 1. Town Lake Drive, formerly Bird Pond Road. Board Action: None. EHRA WDA Fnninnnfinn 11AA11 KAanAnwcian i Ana I W.Tc lnn Tavx 77nA7 S t 71 Z 79A ASM I f 717-IPA AF77 Ee zc;lua-FsnNr YWe FUTOPI