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HomeMy WebLinkAbout09/14/2023 - Regular Minutes - Rock Prairie Management District No. 2ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 MINUTES OF PUBLIC MEETING OF BOARD OF DIRECTORS September 14, 2023 The Board of Directors (the "Board") of Rock Prairie Management District No 2 (the "District") met in regular session, open to the public on September 14, 2023, at 4121 State Highway 6 South, College Station, Brazos County, Texas 77845, in accordance with the duly posted notice of meeting, and the roll was called of the duly constituted members of said Board of Directors, as follows: Uri Geva — President Hays Glover — Vice President Logan Lee — Assistant Vice President Mark Lindemulder —Secretary Samuel "Kit" Kerbel — Assistant Secretary and all of said persons were present, except Director Geva, thus constituting a quorum. Also present were James Murr of College Station Town Center, Inc. ("CSTC"); Denise Oppenheimer of Municipal Accounts & Consulting, L.P. ("MAC"); Robert Atkinson of EHRA Engineering ("EHRA"); Avik Bonnerjee of B&A Municipal Tax Service, LLC ("B&A"); Anthea Moran of Masterson Advisors LLC ("Masterson"); Stacy Vasquez of the City of College Station (the "City"); Wendy Ramirez of FORVIS LLP ("FORVIS"); and Christina Cole of Schwartz, Page & Harding, L.L.P. ("SPH"). The Vice President called the meeting to order and declared same open for such business as might properly come before it. Ms. Cole informed the participants that, in accordance with the requirements of the City's Resolution No. 07-09-15-02 consenting to the creation of the District, the meeting would be recorded, and requested that participants speak clearly, including when making or seconding a motion. PUBLIC COMMENTS The Board began by opening the meeting for public comments. There were no comments from members of the public. APPROVAL OF MINUTES The Board next considered approval of the minutes of its meeting held on July 13, 2023. After review and discussion, Director Glover moved that the minutes for said Board meeting be approved, as written. Director Lindemulder seconded said motion, which unanimously carried. TAX RATE RECOMMENDATION Ms. Moran then reviewed with the Board the Tax Rate Recommendation Schedule attached hereto as Exhibit A. She advised the Board that Masterson recommends a proposed 2023 debt service tax rate of $0.30, and, based on the analysis, the Board discussed a proposed 2023 maintenance tax rate of $0.20, for a total proposed tax rate of $0.50. There next followed a discussion concerning the requirements for notice of the District's intention to adopt a 2023 tax rate. Ms. Cole advised that, pursuant to the Texas Water Code, the District is required to provide a notice containing certain tax -related information, including the proposed tax rate, in connection with each meeting at which the adoption of a tax rate will be considered. She advised that the District must provide the notice by either (1) publishing it at least once in a newspaper having general circulation in the District at least seven days before the date of the meeting at which the tax rate will be adopted, or (2) mailing it to each owner of taxable property in the District, at the address shown on the most recently certified tax roll of the District, at least 10 days before the date of the meeting. After discussion on the matter, Director Lee moved that the Board accept the financial advisor's recommendation of a proposed 2023 debt service tax rate of $0.30, and a proposed maintenance tax rate of $0.20, and that the District's tax assessor - collector be authorized to publish notice of the District's intention to adopt a 2023 tax rate at its October 12, 2023 regular meeting in the form and at the time required by law in The Eagle newspaper. Director Lindemulder seconded said motion, which unanimously carried. BOOKKEEPING REPORT Ms. Oppenheimer presented to and reviewed with the Board a Bookkeeping Report, a copy of which report is attached hereto as Exhibit B, including checks presented therein for payment. Following review and discussion, Director Glover moved that the Bookkeeping Report be approved and the checks presented therein be approved for payment. Director Lee seconded the motion, which unanimously carried. APPROVE AUDIT REPORT Ms. Ramirez next reviewed with the Board a draft of the District's audit report for the fiscal year ended May 31, 2023, a copy of which is attached hereto as Exhibit C. After discussion concerning the audit presented, Director Glover moved that (i) the audit report for the fiscal year ended May 31, 2023, be approved, subject to final review and comment by SPH, and (ii) SPH be authorized to file same with the Texas Commission on Environmental Quality and the City. Director Lindemulder seconded said motion, which unanimously carried. In connection with the District's audit, Ms. Ramirez presented the Board with a draft Management Letter prepared by FORVIS, concerning the Board's internal controls over _financial reporting (the "Management Letter"), a copy of which is attached hereto as Exhibit D. 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 Response" language prepared by SPH. After discussion, it was moved by Director Glover, -2 682820 seconded by Director Lindemulder and unanimously carried that the draft Management Response be approved, as presented, and that same be included in the final Management Letter. ENGAGEMENT OF AUDITOR FOR DISBURSEMENT OF SURPLUS ROAD CONSTRUCTION FUNDS Ms. Ramirez presented an engagement letter from FORVIS, for preparation of an audit of payments to be made to the developers out of surplus road construction funds. Ms. Cole noted that FORVIS has filed a Texas Ethics Commission ("TEC") Form 1295 and has provided SPH with a copy of same. Following discussion, Director Glover moved to (i) approve and authorize the Vice President to execute said engagement letter, and (ii) accept the TEC Form 1295 submitted in connection with the engagement letter and authorize SPH to acknowledge the District's receipt of same with the TEC. Director Lindemulder seconded said Motion, which carried unanimously. A copy of the engagement letter is attached hereto as Exhibit E. STATUS OF CONTINUING DISCLOSURE REPORT Ms. Cole next discussed the Continuing Disclosure Report ("Report") for the fiscal year ended May 31, 2023, which is prepared by the District's Disclosure Counsel, McCall, Parkhurst & Horton L.L.P. ("MPH"), as required by Rule 15c2-12 of the Securities and Exchange Commission, in connection with the District's outstanding bonds. Following discussion, Director Lindemulder moved that MPH be authorized to file the Report, upon receipt of the District's final audit report for fiscal year ended May 31, 2023. Director Lee seconded the motion which carried by unanimous vote. TAX ASSESSOR/COLLECTOR'S REPORT Mr. Bonnerjee then presented to and reviewed with the Board the Tax Assessor -Collector Reports for the months ending July 31, 2023 and August 31, 2023, including checks presented therein for payment. A copy of such report is attached hereto as Exhibit F. After discussion, Director Glover moved that the Tax Assessor/Collector Reports be approved and that the checks identified therein be approved for payment. Director Lee seconded said motion, which unanimously carried. ENGINEERING REPORT Mr. Atkinson presented to and reviewed with the Board an Engineering Report dated September 2023, a copy of which is attached hereto as Exhibit G. Following discussion, Director Glover moved to (i) concur in the payment and approval of the pay estimates as set forth in the Engineer's Report, and (ii) authorize EHRA to advertise for bids for construction of water, sanitary sewer and drainage facilities to serve Midtown City Center Phase 111. Director Lindemulder seconded the motion, which unanimously carried. 3 682820 DEVELOPER'S REPORT The Board considered the Developer's Report. Mr. Murr presented a verbal repot. on the status of development within the District. 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. Ms. Cole noted that the next meeting of the Board will be held on October 12, 2023, at 2:00 p.m. FUTURE AGENDA ITEMS The Board considered items for placement on future agendas. ADJOURNMENT There being no further business to come before the Board, on motion made by Director Glover, seconded by Director Lee, and unanimously carried, the meeting was adjourned. 4 682820 LIST OF ATTACHMENTS Rock Prairie Management District No. 2 Minutes of Meeting of September 14, 2023 Exhibit A Pro Forma Cash Flow Analysis Exhibit B Bookkeeping Report Exhibit C Draft Audit Report for Fiscal Year ended May 31, 2023 Exhibit D Draft Management Letter from FORVIS Exhibit E Engagement Letter from FORVIS, LLP Exhibit F Tax Assessor/Collector Reports Exhibit G Engineering Report 5 682820 EXHIBIT "A" MASTERSON 4 ADVISORS «C 2023 DEBT SERVICE TAX RATE RECOMMENDATION Rock Prairie Management District No. 2 Projected Projected Beginning Tax Tax Assessed Debt Service Cldr Fund Collections 'foal Valuation Tax Rate rear fftlnnce 4- 2018 9,892,250 2019 14,659,986 2020 23,533,362 2021 43,391,211 0.330 2022 72,744,843 0.380 2023 129,268,118 0.300 2024 227,158 376,170 2024 143,739,923 0.300 2025 203,365 418,283 2025 143,739,923 0.300 2026 194,803 418,283 2026 143,739,923 0.300 2027 190,753 418,283 2027 143,739,923 0.300 2028 185,349 418,283 2028 143,739,923 0.300 2029 183,895 410,283 2029 143,739,923 0.300 2030 186,810 418,283 2030 143,739,923 0.300 2031 187,641 418,283 2031 143,739,923 0.300 2032 191,982 418,283 2032 143,739,923 0.300 2033 200,127 418,283 2033 143,739,923 0.300 2034 206,173 418,283 2034 143,739,923 0.300 2035 220,444 418,283 2035 143,739,923 0.300 2036 233,039 418,283 2036 143,739,923 0.300 2037 254,223 418,283 2037 143,739,923 0.300 2038 279,249 418,283 2038 143,739,923 0.300 2039 313,251 418,283 2039 143,739,923 0.300 2040 346,228 418,283 2040 143,739,923 0.300 2041 383,512 418,283 2041 143,739,923 0.300 2042 420,232 418,283 2042 143,739,923 0.300 2043 462,022 418,283 2043 143,739,923 0.300 2044 509,017 418,283 2044 143,739,923 0.300 2045 551,357 418,283 2045 143,739,923 0.300 2046 599,696 418,283 2046 143,739,923 0.300 2047 639,173 418,283 2047 143,739,923 0.300 2048 685,856 418,283 2048 143,739,923 0.300 2049 735,002 418,283 2049 143,739,923 0.300 2050 791,973 418,283 Tuts( 11.251,533 Interest Income 2.0% Total Funds Available Outstanding Debt Service Ending Fund Balance Percent of Next Year's Debt Service 4,543 607,871 404,506 203,365 47.19% 4,067 625,715 430,913 194,803 46.13% 613,086 422,333 190,753 45.02% 609,036 423,688 185,349 44.16% 603,632 419,738 183,895 44.27% 602,178 415,368 186,810 44.75% 605,093 417,453 187,641 45.33% 605,924 413,943 191,982 46.81% 610,265 410,138 200,127 48.55% 618,411 412,238 206,173 51.03% 624,456 404,013 220,444 54.34% 638,727 405,688 233,039 58.69% 651,323 397,100 254,223 64.65% 672,506 393,256 279,249 72 67% 697,533 384,281 313,251 81.30% 731,535 385,306 346,228 90.87% 764,512 381,000 383,512 100.51% 801,795 381,563 420,232 111.62% 838,515 376,494 462,022 124.44% 880,305 371,288 509,017 135.40% 927,300 375,944 551,357 149.04% 969,640 369,944 599,696 158.31% 1,017,979 378,806 639,173 172.01 % 1,057,456 371,600 685,856 185.80% 1,104,139 369,138 735,002 203.43% 1,153,285 361,313 791,973 221.01% 1,210,256 358,338 851,918 8.610 Certified value, including 80% of uncertified value (51,484,027). Beainnina Debt Service Fund Balance: Fund balance as of 7/13/23 Less: Debt payments due on 9/1/23 Projected fund balance on 9/2/23 "*" Maintenance Tax IM&OI Information: Maximum M&O Tax Rate Authorization Each $0.01 M&O tax generates (97%): 2022 M&O tax generates (97%): $383,671 (158.5141 $227,158 $1.00 $12,539 $150,468 Change in Value (%) AV 77.7% HS 9.1% Anatysis of General Fund General Fund Balance a5 of 7113/23 'jfF !. e9 Budgeted M&O Tax Revenue (loci Developer Advance) ($15.4 r5) 3230.000 1O $236,060 48 Months nF deserve 5/31/£4 Oudg:.t $0.188 Tax Rate Equivalent (Wry.) 10,635.383 Debt9btvice 50.3800 6RdA ••• 0.1200 Total $0 5000 2022 avg HS 2023 avg HS 2022 avg tax bill $267,049 $291,349 $1,335 Tax Rate Calculations - if "Developing District, "11% Party Rollback (Petition Election) M&O Rollback (Voter) $0.4582 $0.4949 $0.11 87 EXHIBIT "B" MUNICIPAL ACCOUNTS CONSULTING, L.P. Bookkeeper's Report I September 14, 2023 Rock Prairie Management District No. 2 49 WEBSITE www.municipalaccounts.com if ADDRESS 611 Longmire Rd Suite 1 Conroe, Texas 77304 CONTACT Phone: 936.753.1644 Fax: 936.756.1844 Monthly Financial Summary - General Operating Fund Rock Prairie MD No. 2 - GOF �4d Account Balance Summary Overall Revenues & Expenditures By Month (Year to Date) Balance as of 07/14/2023 ($15,475) --.- Current Year Revenues Prior Year Revenues - Current Year Expenditures Prior Year Expenditures Receipts 48,782 $60K >r 11 R \1 1i 1 if Disbursements (80,912) $40K t 1 ;'r' 1 1 3 1 1 r 'f Balance as of 09/14/2023 ($47,605) $20K '�, ;' / ,�"1• 1 f 1 14... I! 1 $0K •—= +.----r'l� a Jul Sep Nov Jan Mar May Jun Aug Oct Dec Feb Apr August 2023 June 2023 - August 2023 (Year to Date) Revenues Revenues Actual Budget Over/(Under) Actual Budget Over/(Under) $0 $0 $0 $2,282 $2,282 $0 Expenditures Expenditures Actual Budget Over/(Under) Actual Budget Over/(Under) $28,884 $33,330 ($4,446) $79,806 $76,550 $3,256 Operating Fund Reserve Coverage Ratio (In Months) 4 3 2 0 1:4 1.2 3.9 3.9 2.2 0, 7 1.9 1,8 0.4 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 Jul 22 Aug 23 2 General Operating Fund Cash Flow Report - Checking Account Rock Prairie MD No. 2 - GOF rd Number Balance as of 07/14/2023 Receipts Name Maintenance Tax Collections Forvis - Refund Developer Advance Total Receipts Disbursements 2102 2105 2106 2107 2108 2109 2110 2111 2112 Svc Chg Svc Chg Wire Wire Greener Images Brien Water Wells & Irrigation Aggieland Title Company B&A Municipal Tax Service EHRA Engineering Forvis Jack Daniel's Delivery Service Municipal Accounts & Consulting, LP Schwartz, Page & Harding, L.L.P. Central Bank Central Bank Rock Prairie MD 2 - DSF Central Bank Total Disbursements Balance as of 09/14/2023 Memo Mowing & Repairs Maintenance & Repairs Owners Title Policy SB2 Compliance Engineering Fees Audit Fee Delivery Fee Bookkeeping Fees - 2 Months Legal Fees - 2 Months Service Charge Service Charge Wire Transfer - To Debt Fund Forvis Refund - To CPF Amount Balance ($15,475.39) 22,282.26 4,500.00 22, 000.00 (18,765.78) (2,659.85) (5,421.00) (250.00) (1,325.00) (12,600.00) (32.50) (7,533.51) (7,813.88) (5.00) (5.00) (20,000.00) (4,500.00) $48,782.26 ($80,911.52) ($47,604.65) CENTRAL BANK - CHECKING - #XXXX6508 3 General Operating Fund Actual vs. Budget Comparison Rock Prairie MD No. 2 - GOF August 2023 June 2023 - August 2023 Over/ Over/ Annual Actual Budget (Under) Actual Budget (Under) Budget Revenues Property Tax Revenue 14301 Maintenance Tax Collections 0 Total Property Tax Revenue 0 Developer Advance 14901 Developer Advance 0 Total Developer Advance 0 Total Revenues 0 0 0 2,282 2,282 0 221,044 0 2,282 2,282 0 221,044 0 0 0 0 15,016 0 0 0 0 15,016 0 0 0 2,282 2,282 0 236,060 Expenditures Parks & Recreation Service 16603 Mowing - Parks 7,800 7,800 0 29,702 26,960 2,742 75,000 Total Parks & Recreation Service 7,800 7,800 0 29,702 26,960 2,742 75,000 Administrative Service 16703 Legal Fees 1,135 5,000 (3,865) 9,820 15,000 (5,180) 60,000 16705 Auditing Fees 12,600 13,500 (900) 12,600 13,500 (900) 13,500 16706 Engineering Fees 0 3,083 (3,083) 1,325 9,250 (7,925) 37,000 16712 Bookkeeping Fees 5,581 3,042 2,540 10,300 9,125 1,175 36,500 16713 Legal Notices & Other Publ. 0 83 (83) 0 250 (250) 1,000 16714 Printing & Office Supplies 64 167 (103) 537 500 37 2,000 16715 Filing Fees 57 17 40 109 50 59 200 16716 Delivery Expense 0 13 (13) 114 38 76 150 16717 Postage 9 11 (2) 12 32 (20) 130 16718 Insurance & Surety Bond 0 0 0 0 0 0 3,200 16722 Bank Service Charge 5 40 (35) 50 120 (70) 480 16723 Travel Expense 75 100 (25) 265 300 (35) 1,200 16737 SB 2 Expenses 250 250 0 750 750 0 3,000 Total Administrative Service 19,775 25,305 (5,530) 35,882 48,915 (13,033) 158,360 Other Expense 17802 Miscellaneous Expense 1,308 225 1,083 14,221 675 13,546 2,700 Total Other Expense 1,308 225 1,083 14,221 675 13,546 2,700 Total Expenditures 28,884 33,330 (4,446) 79,806 - 76,550 3,256 236,060 Total Revenues (Expenditures) Excess Revenues (Expenditures) (28,884) (33,330) 4,446 (77,523) (74,268) (3,256) (28,884) (33,330) 4,446 (77,523) (74,268) (3,256) 0 4 Gene -al Operating Fund Balance Sheet as of 08/31/2023 Rock Prairie MD No. 2 - GOF Assets Bank 11101 Cash in Bank Total Bank Receivables 11303 Maintenance Tax Receivable Total Receivables Interfund Receivables 11401 Due From Capital Projects 11403 Due From Tax Account Total Interfund Receivables $8,637 $8,637 $3,175 $3,175 ($19,143) (11,341) ($30,484) Total Assets ($18,672) Liabilities & Equity Liabilities Accounts Payable 12101 Accounts Payable $54,492 Total Accounts Payable $54,492 Interfund Payables 12401 Due To Capital Projects $4,500 12402 Due To Debt Service 20,000 Total Interfund Payables $24,500 Deferrals 12502 Deferred Inflows Property Taxes $3,175 Total Deferrals $3,175 Total Liabilities $82,167 Equity Unassigned Fund Balance 13101 Unassigned Fund Balance Total Unassigned Fund Balance Net Income Total Equity Total Liabilities & Equity ($23,315) ($23,315) ($77,523) (S100.839) ($18,672) General Operating Fund Monthly Financial Summary - Capital Projects Fund Rock Prairie MD No. 2 - CPF rd Account Balance Summary Balance as of 07/14/2023 $60,641 Receipts 5,316 Disbursements 0 Balance as of 09/14/2023 $65,957 Overall Revenues & Expenditures By Month (Year to Date) Current Year Revenues --•-- Prior Year Revenues Current Year Expenditures Prior Year Elaenditures $2.5M $2.0M $1.5M $1.0M $0.5M $0.0M ($0.5M) Jul Sep Nov Jan Mar May Jun Aug Oct Dec Feb Apr Account Balance By Month I September 2022 - August 2023 CAPITAL PROJECTS FUND $200.00K $150.00K $100.00K $50.00K $0.00K ($50.00K) Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 Jul 23 Aug 23 6 Capital Projects Fund District ❑ebt Summary as of 09/14/2023 Rock Prairie MD No. 2 - ❑SF Total $ Authorized $178.00M Total $ Issued $6.75M WATER, SEWER, DRAINAGE Authorized $71.40M Issued N/A PARK/ROAD/OTHER REFUNDING Authorized Authorized $106.60M $178.00M Issued Issued $6.75M N/A Yrs to Mat Rating $ Available To Issue $ Available To Issue $ Available To Issue 26 AA $71.40M $99.85M $178.00M *Actual 'Outstanding' Refunding Bonds issued below may differ from the 'Issued' total above pursuant to Chapter 1207, Texas Government Code. Outstanding Debt Breakdown Series Issued 2023 - Road 2022 - Road 2021 - Road Total Original Bonds Issued $1,750,000 $2,500,000 $2,500,000 $6,750,000 Maturity Date 2050 2050 2050 Principal Outstanding $1,750,000 ' $2,500,000 $2,370,000 $6,620,000 District Debt Schedule Rock Prairie MD No. 2 - ❑SF Paying Agent Series Principal I Interest Total Bank of New York 2023 - Road $0.00 $57,887.50 $57,887.50 Bank of New York 2022 - Road $0.00 $60,312.50 $60,312.50 Bank of New York 2021 - Road $0.00 $30,762.50 $30,762.50 Total Due 03/01/2024 $0.00 $148,962.50 $148,962.50 Paying Agent Series Principal Interest Total Bank of New York 2023 - Road $0.00 $39,468.75 $39,468.75 Bank of New York 2022 - Road $60,000.00 $60,312.50 $120,312.50 Bank of New York 2021 - Road $65,000.00 $30,762.50 $95,762.50 Total Due 09/01/2024 $125,000.00 $130,543.75 $255,543.75 ❑istiict Debt Schedule Investment Profile as of 09/14/2023 lick Prairie MD No. 2 General Operating Fund Capital Projects Fund Funds Available to Invest Funds Available to Invest ($47,605) Funds Invested so Percent Invested 0% Term On Demand $65,957 Funds Invested $65,957 Percent Invested 100 % Money Market Term 180 Days 270 Days 1 Yr 13 Mo 18 Mo 2 Yr Debt Service Fund Other Funds Funds Available to Invest Funds Available to Invest $250,669 Funds Invested $250,669 Percent Invested 100 % Certificate of Deposit *Rates are based on the most current quoted rates and are subject to change daily. 5.13 % 5.17 % 5.15 % 5.15 3.76 2.83 % N/A Funds Invested N/A Percent Invested N/A Term 180 Days 270 Days 1 Yr 13 Mo 18 Mo 2 Yr Investment Rates Over Time (By Month) I September 2022 - August 2023 5.50% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% MONEY MARKET CD-1 YEAR U.S. TREASURIES-1 Year U S. Treasuries 5.52 % 5.52 % 5.39 % N/A 5.39 % 4.99 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 Jul 23 Aug 23 Iiivestme'roflle Account Balance as of 09/14/2023 Rock Prairie MD No. 2 - Investment Detail FUND: General Operating Financial Institution (Acct Number) Issue Date Maturity Date Interest Rate Account Balance Notes Checking Account(s) CENTRAL BANK - CHECKING (XXXX6508) 0.00 % (47,604.65) Checking Account Totals for General Operating Fund ($47,604.65) FUND: Capital Projects Financial Institution (Acct Number) Issue Date I Maturity Date Money Market Funds TEXAS CLASS (XXXX0003) 06/27/2022 TEXAS CLASS (XXXX0004) 05/15/2023 Interest Rate 5.51 5.51 Account Balance I Notes 0.67 Seres 2022 Road 65,955.94 Seres 2023 Road Totals for Capital Projects Fund $65,956.61 FUND: Debt Service Financial Institution (Acct Number) Issue Date Maturity Date Interest Rate Account Balance Notes Money Market Funds TEXAS CLASS (XXXX0001) 04/06/2021 5.51 % 250,668.83 Road Totals for Debt Service Fund $250,668.83 Grand Total for Rock Prairie MD No. 2 : $269,020.79 Hs Account Balance Rock Prairie MD No. 2 Capital Projects Fund Breakdown 9/14/2023 Net Proceeds for All Bond Issues Receipts Series 2022 Road Series 2022 Road Series 2023 Road Series 2023 Road - Bond Proceeds - Interest Earnings - Bond Proceeds - Interest Earnings $2,500,000.00 815.06 1,750,000.00 1,490.80 Disbursements Series 2022 Road - Disbursements (Attached) (2,500,814.39) Series 2023 Road - Disbursements (Attached) (1,685,534.86) Total Cash Balance $65,956.61 Balances by Account Series 2022 Road - TX Class (0002) Series 2023 Road - TX Class (0004) Total Cash Balance Balances by Bond Series Series 2022 Road - Bond Proceeds Series 2023 Road - Bond Proceeds Total Cash Balance $0.67 $65,955.94 $65,956.61 $0.67 $65,955.94 $65,956.61 Remaining' r'nctq /Surplus By Bond Series Series 2022 Road - Remaining Costs Series 2023 Road - Remaining Costs Total Amount in Remaining Costs Series 2022 Road - Surplus & Interest Balance Series 2023 Road - Surplus & Interest Balance Total Remaining Costs/Surplus $0.00 $26,648.46 $26,648.46 $0.67 $39,307.48 $65,956.61 11 CONSTRUCTION COSTS Districts Items: Bird Pond Road Midtown Reserve Phase 100 Midtown Reserve Phase 102 Engineering & Geotechnical Total Constructions Costs Rock Prairie MD No. 2 Cost Comparison Series 2022 Road USE OF ACTUAL REMAINING VARIANCE PROCEEDS COSTS COSTS (OVER)/UNDER $1,215,648.00 $1,215,647.89 236,508.00 233,991.00 339,937.00 339,936.51 47,704.00 55,112.79 1,839,797.00 1,844,688.19 $0.00 0.00 0.00 0.00 0.00 $0.11 2,517.00 0.49 (7,408.79) (4,891.19) TOTAL CONSTRUCTION COSTS $1,839,797.00 $1,844,688.19 $0.00 ($4,891.19) NON -CONSTRUCTION COSTS Legal Fees Financial Advisor Fees Capitalized Interest Developer Interest Bond Discount Bond Issuance Expenses Attorney General Fee TOTAL NON -CONSTRUCTION COSTS TOTAL BOND ISSUE REQUIREMENT $72,500.00 $72,500.00 80.00 $0.00 50,000.00 50,000.00 0.00 0.00 125,000.00 120,625.00 0.00 4,375.00 291,764.00 303,801.59 0.00 (12,037.59) 75,000.00 69,434.55 0.00 5,565.45 43,439.00 37,265.06 0.00 6,173.94 2,500.00 2,500.00 0.00 0.00 $660,203.00 $656,126.20 $0.00 $4,076.80 $2,500,000.00 $2,500,814.39 $0.00 ($814.39) Interest 815 Bank Fees 0 Total Surplus & Interest 1 Total Projections, Surplus, & Interest $0.67 12 CONSTRUCTION COSTS Districts Items: Midtown Reserve Phase 104 Midtown Reserve Phase 200 Midtown Reserve Phase 201 Engineering & Geotechnical Total Constructions Costs Rock Prairie MD No. 2 Cost Comparison Series 2023 Road USE OF ACTUAL REMAINING VARIANCE PROCEEDS COSTS COSTS (OVER)/UNDER 272,003.82 272,003.82 536,649.08 536,649.08 314,665.00 314,665.00 131,271.01 131,271.01 1,254,568.91 1,254,588, 91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL CONSTRUCTION COSTS $1,254,588.91 $1,254,588.91 $0.00 $0.00 NON -CONSTRUCTION COSTS Legal Fees 553,899.60 $53,899.60 $0.00 $0.00 Financial Advisor Fees 38,912.38 38,912.38 0.00 0.00 Capitalized Interest 78,937.50 78,937.50 0.00 0.00 Developer Interest 208,758.00 170,941.32 0.00 37,816.68 Bond Discount 50,110.15 50,110.15 0.00 0.00 Bond Issuance Expenses 47,716.46 36,395.00 11,321.46 0.00 Attorney General Fee 1,750.00 1,750.00 0.00 0.00 Contingency 15,327.00 15,327.00 0.00 $495,411.09 $430,945.95 $26,648.46 $37,816.68 TOTAL NON -CONSTRUCTION COSTS $1,750,000.00 $1,685,534.86 $26,648.46 $37,816.68 TOTAL BOND ISSUE REQUIREMENT Interest 1,490.80 Bank Fees 0 Total Surplus & Interest 39,307.48 Total Projections, Surplus, & Interest $65,955.94 13 EXHIBIT "C" /// Rock Prairie Management District No. 2 Brazos County, Texas Independent Auditor's Report and Financial Statements.. May 31, 2023 Rock Prairie Management District No. 2 May 31, 2023 Contents Independent Auditor's Report 1 Management's Discussion and Analysis 4 Basic Financial Statements Statement of Net Position and Governmental Funds Balance Sheet 10 Statement of Activities and Governmental Funds Revenues, Expenditures and Changes in Fund Balances 11 Notes to Financial Statements 12 Required Supplementary Information Budgetary Comparison Schedule — General Fund 26 Notes to Required Supplementary Information 27 Supplementary Information Other Schedules Included Within This Report 28 Schedule of Services and Rates 29 Schedule of General Fund Expenditures 30 Schedule of Temporary Investments 31 Analysis of Taxes Levied and Receivable 32 Schedule of Long-term Debt Service Requirements by Years 34 Changes in Long-term Bonded Debt 37 Comparative Schedule of Revenues and Expenditures — General Fund and Debt Service Fund 38 Board Members, Key Personnel and Consultants 40 Independent Auditor's Report Board of Directors Rock Prairie Management District No. 2 Brazos County, Texas Opinions We have audited the financial statements of the governmental activities and each major fund of Rock Prairie Management District No. 2 (the District), as of and for the year ended May 31, 2023, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District, as of May 31, 2023, 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District's ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance, but is not absolute assurance Board of Directors Rock Prairie Management District No. 2 Page 2 and, therefore, is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison schedule, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers 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 certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods 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 of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Board of Directors Rock Prairie Management District No. 2 Page 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements. The accompanying schedules required by the Texas Commission on Environmental Quality listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audits of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Houston, Texas , 2023 Rock Prairie Management District No. 2 Management's Discussion and Analysis May 31, 2023 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 in a single governmental 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 not budgeted or accounted for as separate programs. The financial statements of special-purpose governments 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 the overall financial position and activities of the District. The District's government -wide financial 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 net position 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 the 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 the statement of activities is to present the revenues and expenses of the District. Again, the items presented on the 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. 4 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2023 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 directed 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 -related legal requirements established by external parties or governmental statutes or regulations. Governmental Funds Governmental -fund financial statements consist of a balance sheet and a statement of revenues, expenditures and changes in fund balances and are prepared on an accounting basis that 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 example, 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 fiscal year. The difference between a fund's assets, liabilities, and deferred inflows and outflows of resources is labeled the 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 expenditures that were collected in cash or paid with cash, respectively, during the current period or very shortly after the end of the fiscal year. Because the focus of the government -wide and fund financial statements is different, there are significant differences between the totals presented in these financial statements. For this reason, there is an ana:ysis in the notes to financial statements that describes 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 reconciles the total change in fund balances for all governmental funds to the change in net position, as reported in the 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. 5 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2023 Financial Analysis of the District as a Whole The District's overall financial position and activities for the past two years are summarized as follows, based on the information included in the government -wide financial statements. Summary of Net Position 2023 2022 Current and other assets $ 397,784 $ 165,072 Capital assets 595,072 595,072 Total assets $ 992,856 $ 760,144 Long-term liabilities $ 18,441,025 $ 16,179,648 Other liabilities 92,132 34,353 Total liabilities 18,533,157 16,214,001 Net position: Net investment in capital assets (17,771,233) (15,579,308) Restricted 251,073 140,400 Unrestricted (20,141) (14,949) Total net position $ (17,540,301) $ (15,453,8571 The total net position of the District decreased by $2,086,444 or about 14 percent. The majority of the decrease in net position is related to the conveyance of capital assets to another governmental entity for maintenance. Although the District's investment in its capital assets is reported net of related debt, it should be noted 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 2023 2022 Revenues: Property taxes $ 363,725 $ 216,945 Other revenues 11,314 2,145 Total revenues 375,039 219,090 6 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2023 Summary of Changes in Net Position (Continued) 2023 2022 Expenses: Services $ 273,037 $ 151,853 Conveyance of capital assets 1,869,145 667,293 Debt service 319,301 65,503 Total expenses 2,461,483 884,65? Change in net position (2,086,444) (665,563) Net position, beginning of year (15,453,857) (14,788,288) Net position, end of year $ (17,540,301) $ (15,453,857) Financial Analysis of the District's Funds The District's combined fund balances as of the end of the fiscal year ended May 31, 2023, were $338,180, an increase of $195,217 from the prior year. The general fund's fund balance decreased by $6,873, primarily due to service operations expenditures and debt issuance costs exceeding property tax revenues and developer advances received. The debt service fund's fund balance increased by $201,730 due to property tax revenues and proceeds received from the Series 2022 road bonds exceeding bond principal and interest requirements. The capital projects fund's fund balance increased by $360 due to proceeds received from the Series 2022 road bonds exceeding capital outlay expenditures and debt issuance costs. General Fund Budgetary Highlights There were several differences between the final budgetary amounts and actual amounts. The major 3ifferences between budget and actual were due to property tax revenues, professional fees expenditures, repairs and maintenance expenditures and developer advances being greater than anticipated. In addition, debt issuance costs incurred were not budgeted for. The fund balance as of May 31, 2023, was expected to be ($16,443) and the actual end -of -year fund balance was ($23,316). 7 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2023 Capital Assets and Related Debt Capital Assets Capital assets held by the District at the end of the current and previous fiscal years are summarized as follows: Capital Assets Land and improvements 2023 2022 $ 595,072 $ 595,072 During the current year, there were no additions to capital assets. Developers within the District have constructed facilities on behalf of the District under the terms 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, if required. As of May 31, 2023, a liability for developer constructed capital assets of $13,210,785 was recorded in the government -wide financial statements. Since inception, a developer has advanced $417,800 to the Districtfor operations. The District does not have sufficient funds or anticipated revenues sufficient to liquidate these advances during the forthcoming fiscal year. These advances have been recorded as liabilities in the government -wide financial statements. Debt The changes in the debt position of the District during the fiscal year ended May 31, 2023, are summarized as follows: Long-term debt payable, beginning of year $ 16,179,648 Increases in long-term debt 4,198,469 Decreases in long-term debt (1,937,092) Long-term debt payable, end of year $ 18,441,025 At May 31, 2023, 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 systems within the District and $101,600,000 of unlimited tax bonds authorized, but unissued, for the purpose of constructing road and paving facilities. The District's bonds carry no underlying rating. The Series 2022 road bonds carry a "AA" rating from Standard & Poor's by virtue of bond insurance issued by Build America Mutual Assurance Company. 8 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2023 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. The District and the City entered into that certain Utility and Road Agreement dated February 17, 2015 (the Utility Agreement), which provides the terms for the provision of water, sewer, drainage and road facilities (=he Facilities) within the District. Pursuant to the Agreement, the Facilities are to be constructed by the developers and, with the exception of storm water detention and recreational facilities, subsequently conveyed to the City for operation. Water and sewer service to the District is provided by the City. The City has agreed to provide the District with its ultimate requirements for water supply and wastewater treatment capacity withou= capital charges of any kind. Under the Utility Agreement, the District is authorized to issue bonds to finance the construction and acquisition of the Facilities, and must obtain City consent for same which shall be granted to the extent such issuances comply with the City's terms of consent to the creation of the District. Lastly, the Utility Agreement restricts the City's ability to dissolve the District which may not occur until the termination or expiration of that certain Infrastructure and Economic Development Agreement between the City and College Station Town Center, Inc., effective July 10, 2015, as partially assigned to the District and College Station Downtown Residential, LLC. The City has agreed to afford the District the opportunity to discharge any remaining obligations under any existing reimbursement agreement with a developer in the District by authorizing the sale of bonds during a dissolution transition period or selling bonds of the City in an amount adequate to discharge the District's obligations. Contingencies Developers of the District are constructing water, sewer, drainage and road facilities within the bouncaries of the District. The District has agreed to reimburse the developers for a portion of these costs, plus interest, from the proceeds of future bond sales, to the extent approved by the Commission, if required. The District's engineer has stated that current construction contract amounts are approximately $3,010,000. This amount has not been recorded in the financial statements since the facilities are not complete or operational. Subsequent Event On June 7, 2023, the District sold its Series 2023 Unlimited Tax Road Bonds in the amount of $1,750,000 at a net effective interest rate of approximately 4.44 percent. The bonds were sold to finance construction of road facilities within the District. 9 Rock Prairie Management District No. 2 Statement of Net Position and Governmental Funds Balance Sheet May 31, 2023 Debt Capital Statement General Service Projects of Net Fund Fund Fund Total Adjustments Position Assets Cash $ 34,400 $ 46,650 $ - $ 81,050 $ - $ 81,050 Short-term investments - 303,145 360 303,505 303,505 Property taxes receivable 3,175 10,054 - 13,229 13,229 Interfund receivable 11,341 11,341 (11,341) - Capital assets, land and improvements - 595,072 595,072 Total assets $ 37,575 $ 371,190 $ 360 $ 409,125 $ . 583,731 $ 992,856 Liabilities Accounts payable $ 46,375 $ - $ - $ 46,375 $ - $ 46,375 Accrued interest payable - - - 45,757 45,757 Interfund payable 11,341 11,341 (11,341) Long-term liabilities: Due within one year - 65,000 65,000 Due after one year - 18,376,025 18,376,025 Total liabilities 57,716 0 0 57,716 18,475,441 - 18,533,157 Deferred Inflows of Resources Deferred property tax revenues 3,175 10,054 0 13,229 (13,229) 0 Fund Balances (Deficit)/Net Position Fund balances (Deficit): Restricted: Unlimited tax road bonds 361,136 - 361,136 (361,136) Roads - 360 360 (360) Unassigned (23,316) - - (23,316) 23,316 Total fund balances (Deficit) (23,316) 361,136 360 338,180 (338,180) Total liabilities, deferred inflows of resources and fund balances $ 37,575 $ 371,190 $ 360 $ 409,125 Net position: Net investment in capital assets Restricted for debt service Restricted for capital projects Unrestricted Total net position 0 (17,771,233) (17,771,233) 250,713 250,713 360 360 (20,141) (20,141) $ (17,540,301) $ (17,540,301) See Notes to Financial Statements 10 Rock Prairie Management District No. 2 Statement of Activities and Governmental Funds Revenues, Expenditures and Changes in Fund Balances Year Ended May 31, 2023 Debt Capital Satement General Service Projects of Fund Fund Fund Total Adjustments Activities Revenues Property taxes $ 85,613 $ 268,435 $ - $ 354,048 $ 9,677 $ 363,725 Penalty and interest - 3,660 - 3,660 - 3,660 Investment income 6,841 813 7,654 7,654 Total revenues 85,613 278,936 813 365,362 9,677 375,039 Expenditures/Expenses Service operations: Professional fees 116,642 1,134 117,776 4,500 122,276 Contracted services 26,967 14,460 41,427 - 41,427 Repairs and maintenance 87,212 - 87,212 87,212 Other expenditures 14,332 7,790 22,122 - 22,122 Capital outlay - 2,152,990 2,152,990 (2,152,990) - Conveyance ofcapital assets - 1,869,145 1,869,145 Debt service: Principal retirement 65,000 - 65,000 (65,000) Interest and fees 109,447 109,447 32,117 141,564 Debt issuance costs 20,333 - 157,404 177,737 - 177,737 Total expenditures/expenses 265,486 197,831 2,310,394 2,773,711 (312,228) 2,461,483 Excess (Deficiency) of Revenues Over Expenditures (179,873) 81,105 (2,309,581) (2,408,349) 321,905 Other Financing Sources (Uses) Developer advances received 173,000 - 173,000 (173,000) General obligation bonds issued 120,625 2,379,375 2,500,000 (2,500,000) Discount on debt issued - - (69,434) (69,434) 69,434 Total other financing sources 173,000 120,625 2,309,941 2,603,566 (2,603,566) Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures and Other Financing Uses (6,873) 201,730 360 195,217 (195,217) Change in Net Position (2,086,444) (2,086,444) Fund Balances (Defcit)/Net Position Beginning of year End of year (16,443) 159,406 142,963 (15,453,857) $ (23,316) $ 361,136 $ 360 $ 338,180 $ 0 $ (17,540,301) See Notes to Financial Statements 11 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Note 1: Nature of Operations and Summary of Significant Accounting Policies Rock Prairie Management District No. 2 (the District) was created pursuant to Section 52, Article III, and Section 59, Article XVI, of the Texas Constitution by an Act of the 83`d Legislature of the State of Texas, effective June 14, 2013, codified as Chapter 3909, Texas Special District Local Laws Code (the Act). The District operates in accordance with Chapter 375 of the Texas Local Government Code, and is subject to the continuing supervision of the Texas Commission on Environmental Quality (the Commission). The District was created to promote, encourage, develop and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, entertainment, economic development, safety 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 Station (the City). The Board sets the policies of the District. The accounting and reporting policies of the District conform to accounting principles generally accepted in the United States of America for state and local governments, as defined by the Governmental Accounting Standards Board. The following is a summary of the significant accounting and reporting 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. Accountability is defined as the District's substantive appointment of the voting majority of the component unit's governing board. Furthermore, to be financially accountable, the District must be able to impose its will upon the component unit or there must be a possibility that the component unit may provide specific financial benefits to, or impose specific financial burdens on, the District. Government -wide and Fund Financial Statements 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 in a single governmental program, such as the provision of water, wastewater, drainage and other related services. The financial statements of special-purpose governments 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 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. 12 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 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 funds: 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 from property taxes, charges for services and interest income. Debt Service Fund— The debt service fund is use to account for financial resources that are restricted, committed or assigned to expenditures for principal and interest related costs, as well as the f nancial resources being accumulated for future debt service. Capital Projects Fund — The capital projects fund is used to account for financial resources that are restricted, committed or assigned to expenditures for capital outlays. Fund Balances — Governmental Funds The fund balances for the District's governmental funds can be displayed in up to five components: Nonspendable — Amounts that are not in a spendable form or are required to be maintained ir_tact. Restricted — Amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may be changed or lifted only with the consent of resource providers. Committed — Amounts that can be used only for the specific 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 or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. Unassigned — The residual classification for the general fund and includes all amounts not contained in the other classifications. 13 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 The District considers restricted 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 committed amounts 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. 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 without 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. Intergovernmental revenues are recognized as revenues, net of estimated refunds and uncollectible amounts, in the accounting 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 estimated uncollectible amounts, as soon as all eligibility requirements imposed by the provider have been met. Amounts received before all eligibility requirements have been met are reported as liabilities. Fund Financial Statements Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and liabilities are generally included on the balance sheet. The statement of governmental funds revenues, expenditures and changes in fund balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing 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 modified accrual basis of accounting, revenues are recognized when both measurable and available. The District 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 accrual include 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 when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures when payment is due. 14 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Deferred Outflows and Inflows of Resources A deferred 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. Interfund Transactions Transfers from one fund to another fund are reported as interfund receivables and payables if there is intent to repay the amount and if there is the ability to repay the advance on a timely basis. Transfers represent legally authorized transfers from the fund receiving resources to the fund through which the resources are to be expended. Pension Costs The District does not participate in a pension plan and, therefore, has no pension costs. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions tha. 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, U.S. Government and agency securities, and certain popled 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 carried at fair value. Fair 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 fair value. Investment 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 Len attaches to property to secure the payment of all taxes, penalty and interest ultimately imposed for the year on the property. After the District receives its certified appraisal roll from the appraisal 15 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 district, the rate of taxation is set by the Board of the District based upon the aggregate appraisal value. Taxes are due and payable October 1 or when billed, whichever is later, and become delinquent after January 31 of the following year. In the governmental funds, property taxes are initially recorded as receivables and deferred inflows of resources at the time the tax levy is billed. Revenues recognized during the fiscal year ended May 31, 2023, include collections during the current period or within 60 days of year-end related to the 2022 and prior years' tax levies. In the government -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, 2023, the 2022 tax levy is considered earned during the current fiscal year. In addition to property taxes levied, any delinquent taxes are recorded net of amounts considered uncollectible. Capital Assets The District conveys title to all capital assets, with the exception of storm water detention and recreational facilities, to the City. Capital assets 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. Debt Issuance Costs Debt issuance costs, other than prepaid insurance, do not meet the definition of an asset or deferred outflows of resources since the costs are not applicable to a future period and, therefore, are recognized as an expense/expenditure in the period incurred. Long-term Obligations In the government -wide financial statements, long-term debt and other long-term obligations are reported as liabilities. Premiums and discounts on bonds are recognized as a component of long-term liabilities and amortized over the life of the related debt using the effective interest rate method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 16 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Net Position/Fund Balances Fund balances and net position are reported as restricted when constraints placed on them are either externally imposed by creditors, grantors, contributors or laws or regulations of other governments or are imposed by law through constitutional provisions or enabling legislation. When both restricted and unrestricted resources are available for use, generally, it is the Distr_ct'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 balances in the governmental funds balance sheet are different because: Capital assets used in governmental activities are not financial resources and are not reported in the funds. $ 595,072 Property tax revenue recognition and the related reduction of deferred inflows of resources are subject to availability of funds in the fund financial statements. 13,229 Accrued interest on long-term liabilities is not payable with current financial resources and is not reported in the funds. (45,757) Long-term liabilities are not due and payable in the current period and are not reported in the funds. (18,441,025) Adjustment to fund balances to arrive at net position. $ (17,878,481) Amounts reported for change in net position of governmental activities in the statement of activities are different from change in fund balances in the governmental funds statement of revenues, expenditures and change in fund balances because: Change in fund balances. Governmental funds report capital outlays as expenditures. However, for government -wide financial statements, the cost of capitalized assets is conveyed to the City for maintenance, exclusive of detention and recreational facilities. This is the amount by which capital outlay expenditures exceeded conveyed capital assets and noncapitali7Pd costs in the current year. $ 195,217 279,345 17 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Governmental funds report developer advances as other financing sources or uses as amounts are received or paid. However, for government -wide financial statements, these amounts are recorded as an increase or decrease in due to developer. Governmental funds report the effect of premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Governmental funds report proceeds from the sale of bonds because they provide current financial resources to governmental funds. Principal payments on debt are recorded as expenditures. None of these transactions, however, have any effect on net position. Revenues that do not provide current financial resources are not reported as revenues for the funds, but are reported as revenues in the statement of activities. $ (173,000) 69,434 (2,435,000) 9,677 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (32,117) Change in net position of governmental activities. $ (2,086,444) Note 2: Deposits, Investments and Investment Income Deposits Custodial credit risk is the risk that, in the event of a bank failure, a governments deposits may not be returned to it. The District's deposit policy for custodial credit risk requires compliance with the provisions of state law. 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 Districts deposits may be collateralized. At May 31, 2023, none of the District's bank balances were exposed to custodial credit risk. 18 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Investments The District may legally invest in obligations of the United States or its agencies and instrumentalities, direct obligations of Texas or its agencies or instrumentalities, 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 Stages, other obligations guaranteed as to principal and interest by the State of Texas or the United States or their agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States, obligations of states, agencies and counties and other political subdivisions with an investment rating not less than "A," insured or collateralized certificates of deposit, and certain bankers' acceptances, repurchase agreements, mutual funds, commercial paper, guaranteed investment contracts and investment pools. The District's investment policy may be more restrictive than the Public Funds Investment Act. The District invests in Texas CLASS, an external investment pool that is not registered with the Securities and Exchange Commission. A Board of Trustees, elected by the participants, has oversight of Texas CLASS. The District's investments may be redeemed at any time. Texas CLASS attempts to minimize its exposure to market and credit risk through the use of various strategies and credit monitoring techniques and limits its investment in any issuer to the top two ratings issued by nationally recognized statistical rating organizations. The District's investments in Texas CLASS are reported at net asset value. At May 31, 2023, the District has the following investments and maturities: Maturities in Years Less Than More Than Type Fair Value 1 1-5 6-10 10 Texas CLASS $ 303,505 $ 303,505 $ 0 $ 0 $ 0 Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates, the District's investment policy does not allow investments in certain mortgage -backed securities, collateralized mortgage obligations with a final maturity date in excess of 10 years and interest rate indexed collateralized mortgage obligations. The external investment pool is presented as an investment with a maturity of less than one year because it is redeemable in full immed_ately. Credit Risk. Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill its obligations. At May 31, 2023, the District's investments in Texas CLASS were rated "AAAm" by Standard & Poor's. 19 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Summary of Carrying Values The carrying values of deposits and investments shown previously are included in the balance sheet and statement of net position at May 31, 2023, as follows: Carrying value; Deposits $ 81,050 Investments 303,505 Total $ 384,555 Investment Income Investment income of $7,654 for the year ended May 31, 2023, consisted of interest income. Fair Value Measurements The District has the following recurring fair value measurements as of May 31, 2023: • Pooled investments of $303,505 are valued at fair value per share of the pool's underlying portfolio. Note 3: Capital Assets A summary of changes in capital assets for the year ended May 31, 2023, is presented as follows: Governmental Activities Capital assets, non -depreciable: Land and improvements Note 4: Long-term Liabilities Balances, Balances, Beginning End of Year Additions of Year $ 595,072 $ 0 $ 595,072 Changes in long-term liabilities for the year ended May 31, 2023, were as follows. 20 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Governmental Activities Bonds payable: General obligation bonds Less discounts on bonds Due to developer, advances Due to developers, construction Balances, Beginning of Year Increases Decreases $ 2,500,000 $ 2,500,000 $ 55,282 69,434 2,444,718 244,800 13,490,130 Balances, End of Year Amounts Due in One Year 65,000 $ 4,935,000 $ 55,000 2,156 122,560 2,430,566 62,844 173,000 1,594,903 1,874,248 Total governmental activities long-term liabilities $ 16,179,648 $ 4,198,469 $ General Obligation Bonds Amount outstanding, May 31, 2023 Interest rates Maturity dates, serially beginning/ending Interest payment dates Callable date* 4,812,440 417,800 13,210,785 55,000 1,937,092 $ 18,441,025 $ 65,000 Road Series 2021 $2,435,000 1.20% to 3.00% September 1, 2023/2050 September 1/March 1 September 1, 2027 Road Series 2022 $2,500,000 4.50% to 7.0C% September 1, 2024/2050 September 1/March 1 September 1, 2029 *Or any date thereafter, callable at par plus accrued interest to the date of redemption. Annual Debt Service Requirements The following schedule shows the annual debt service requirements to pay principal and interest on general obligation bonds outstanding at May 31, 2023: 21 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Year Principal Interest Total 2024 $ 65,000 $ 182,589 $ 247,589 2025 125,000 179,563 304,563 2026 130,000 174,148 304,148 2027 130,000 168,460 298,460 2028 135,000 162,625 297,625 2029-2033 750,000 728,250 1,478,250 2034-2038 850,000 584,779 1,434,779 2039-2043 925,000 424,896 1,349,896 2044-2048 1,090,000 242,292 1,332,292 2049-2051 735,000 41,475 776,475 Total $ 4,935,000 $ 2,889,077 $ 7,824,077 The bonds are payable from the proceeds of an ad valorem tax levied upon all property within the District subject to taxation, without limitation as to rate or amount. Bonds voted: Water, sewer and drainage facilities $ 71,400,000 Road and paving facilities 106,600,000 Refunding bond authorization 178,000,000 Bonds sold: Road and paving facilities 5,000,000 Due to Developers Developers of the District have constructed facilities on behalf of the District. With the exception of storm water detention and recreational facilities, the District conveys these facilities to the City for operation and the District has agreed to reimburse the developers for these construction costs and interest to the extent approved by the Commission, if required, from the proceeds of future bond sales. The District's engineer estimates reimbursable costs for completed projects are $13,210,785. These amounts have been recorded in the financial statements as long-term liabilities. 22 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Developer Advances Since inception, a developer has advanced $417,800 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 advances have been recorded as liabilities in the government -wide financial statements. Note 5: Significant Bond Order and Commission Requirements A. The Bond Orders requires that the District levy and collect an ad valorem debt service tax sufficient to pay interest and principal on bonds when due. During the year ended May 31, 2023, the District levied an ad valorem debt service tax at the rate of $0.3800 per $100 of assessed valuation, which resulted in a tax levy of $276,430 on the taxable valuation of $72,744,8L3 for the 2022 tax year. The interest and principal requirements to be paid from the tax revenues and available resources are $233,620 of which $77,106 has been paid and $156,514 is due September 1, 2023. B. In accordance with the Bond Orders, a portion of the bond proceeds was deposited into the debt service fund and reserved for the payment of bond interest during the construction period. This bond interest reserve is reduced as the interest is paid. Bond interest reserve, beginning of year Additions --Interest appropriated from bond proceeds, Road Series 2022 Deductions --Appropriation from bond interest paid: Road Series 2022 Road Series 2021 Bond interest reserve, end of year Note 6: Maintenance Taxes $ 5,268 120,625 (45,905) (5,268) $ 74,720 At an election held November 3, 2015, voters authorized a maintenance tax not to exceed $1.D0 per $100 of assessed valuation on all property within the District subject to taxation. During the year ended May 31, 2023, the District levied an ad valorem maintenance tax at the rate of $0.1200 per $100 assessed valuation, which resulted in a tax levy of $87,294 on the taxable valuation of $72,744,843 for the 2022 tax year. The maintenance tax is being used by the general fund to pay expenditures of operating the District. 23 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Note 7: 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 which the District carries commercial insurance. The District has not significantly reduced insurance coverage or had settlements which exceeded coverage amounts in the past three fiscal years. Note 8: Utility and Road Agreement The District and the City entered into that certain Utility and Road Agreement dated February 17, 2015 (the Utility Agreement), which provides the terms for the provision of water, sewer, drainage and road facilities (the Facilities) within the District. Pursuant to the Agreement, the Facilities are to be constructed by the developer and, with the exception of storm water detention and recreational facilities, subsequently conveyed to the City for operation. Water and sewer service to the District is provided by the City. The City has agreed to provide the District with its ultimate requirements for water supply and wastewater treatment capacity without capital charges of any kind. Under the Utility Agreement, the District is authorized to issue bonds to finance the construction and acquisition of the Facilities, and must obtain City consent for same which shall be granted to the extent such issuances comply with the City's terms of consent to the creation of the District. Lastly, the Utility Agreement restricts the City's ability to dissolve the District which may not occur until the termination or expiration of that certain Infrastructure and Economic Development Agreement between the City and College Station Town Center, Inc., effective July 10, 2015, as partially assigned to the District and College Station Downtown Residential, LLC. The City has agreed to afford the District the opportunity to discharge any remaining obligations under any existing reimbursement agreement with a developer in the District by authorizing the sale of bonds during a dissolution transition period or selling bonds of the City in an amount adequate to discharge the District's obligations. Note 9: Contingencies Developers of the District are constructing water, sewer, drainage and road facilities within the boundaries of the District. The District has agreed to reimburse the developers for a portion of these costs, plus interest, from the proceeds of future bond sales, to the extent approved by the Commission, if required. The District's engineer has stated that current construction contract amounts are approximately $3,010,000. This amount has not been recorded in the financial statements since the facilities are not complete or operational. 24 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2023 Note 10: Deficit Fund Balance At May 31, 2023, the District's general fund had a deficit fund balance of $23,316. The District anticipates that growth within the District will generate revenues sufficient to pay costs of operating the District. Note 11: Subsequent Event On June 7, 2023, the District sold its Series 2023 Unlimited Tax Road Bonds in the -amount of $1,750,000 at a net effective interest rate of approximately 4.44 percent-., The bonds were sold to finance construction of road facilities within the District. 25 Required Supplementary Information Rock Prairie Management District No. 2 Budgetary Comparison Schedule — General Fund Year Ended May 31, 2023 Variance Original Favorable Budget Actual (Unfavorable) Revenues Property taxes $ 75,700 $ 85,613 $ 9,913 Expenditures Service operations: Professional fees 103,500 116,642 (13,142) Contracted services 35,000 26,967 8,033 Repairs and maintenance 70,230 87,212 (16,982) Other expenditures 12,410 14,332 (1,922) Debt service, debt issuance costs - 20,333 (20,333) Total expenditures 221.140 265,486 (L4,346) Deficiency of Revenues Over Expenditures (145,440) (179,873) (34,433) Other Financing Sources Developer advances received 145,440 173,000 27,560 Deficiency of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (6,873) ."6,873) Fund Balance (Deficit), Beginning of Year (16,443) (16,443) Fund Balance (Deficit), End of Year $ (16,443) $ (23,316) $ :6,873) 26 Rock Prairie Management District No. 2 Notes to Required Supplementary Information May 31, 2023 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 2023. The District prepares its annual operating budget on a basis consistent with accounting principles generally accepted in the United States of America. The Budgetary Comparison Schedule - General Fund presents the original and revised budget amounts, if revised, compared to the actual amounts of revenues and expenditures for the current year. 27 Supplementary Information Rock Prairie Management District No. 2 Other Schedules Included Within This Report May 31, 2023 (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 12-25 [X] Schedule of Services and Rates [X] Schedule of General Fund Expenditures [X] Schedule of Temporary Investments [X] Analysis of Taxes Levied and Receivable [X] Schedule of Long-term Debt Service Requirements by Years [X] Changes in Long-term Bonded Debt [X] Comparative Schedule of Revenues and Expenditures — General Fund and Debt Service Fund [X] Board Members, Key Personnel and Consultants 28 Rock Prairie Management District No. 2 Schedule of Services and Rates Year Ended May 31, 2023 1. Services provided by the District: Retail Water _Wholesale Water X Drainage _Retail Wastewater _ Wholes ale 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 The City of College Station provides services to the District's customers pursuant to that certain Utility and Road Agreement dated February 17. 201$, between the District and the City of College Station. 29 Rock Prairie Management District No. 2 Schedule of General Fund Expenditures Year Ended May 31, 2023 Personnel (including benefits) $ Professional Fees Auditing $ 12,300 Legal 68,386 Engineering 35,956 Financial advisor Purchased Services for Resale Bulk water and wastewater service purchases Regional Water Fee Contracted Services Bookkeeping General manager Appraisal district Tax collector Security Other contracted services 26,967& Utilities Repairs and Maintenance Administrative Expenditures Directors' fees - Office supplies 2,311 Insurance 3,065 Other administrative expenditures 8,956 Capital Outlay Capitalized assets Expenditures not capitalized, Tap Connection rrlpenditures Solid Waste,Disposal Fire Fighting Parks and Recreation Other Expenditures Total expenditures 116,642 26,967 87,212 14,332 20,333 $ 265,486 30 Rock Prairie Management District No. 2 Schedule of Temporary Investments May 31, 2023 Accrued Interest Maturity Face Interest Rate Date Amount Receivable Debt Service Fund Texas CLASS 5.24% Demand 303,145 Capital Pro je cts Fund Texas CLASS 5.24% Demand 360 Totals $ 303,505 $ 0 31 Rock Prairie Management District No. 2 Analysis of Taxes Levied and Receivable Year Ended May 31, 2023 Receivable, Beginning of Year Additions and corrections to prior years' taxes Adjusted receivable, beginning of year Debt Maintenance Service Taxes Taxes $ 1,494 $ 2,058 1 1,494 2,059 2022 Original Tax Levy 87,954 278,521 Additions and corrections (660) (2,091) Adjusted tax levy 87,294 276,430 Total to be accounted for 88,788 278,489 Current year tax collections (84,119) (266,376) Prior years (1,494) (2,059) Receivable, end of year $ 3,175 $ 10,054 Receivable, by Year 2022 $ 3,175 $ 10,054 32 Rock Prairie Management District No. 2 Analysis of Taxes Levied and Receivable (Continued) Year Ended May 31, 2023 2022 2021 2020 2019 Property Valuations Land $ 28,331,916 $ 25,709,367 $ 14,785,710 $ 14,912,916 Improvements 45,817,587 17,711,363 8,162,825 - Personal property 120,621 608,274 617,829 909,670 Exemptions (1,525,281) (637,793) (30,971) (1,162,600) Total property valuations $ 72,744,843 $ 43,391,211 $ 23,535,393 $ 14,659,986 Tax Rates per $100 Valuation Debt service tax rates $ 0.3800 $ 0.3300 $ $ - Maintenance tax rates* 0.1200 0.1700 0.5000 0.5000 Total tax rates per $100 valuation $ 0.5000 $ - 0.5000 $ 0.5000 $ 0.5000 Tax Levy $ 363,724 $ 216,955 $ 117,677 $ 73,300 Percent of Taxes Collected to Taxes Levied** 96% 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. 33 Rock Prairie Management District No. 2 Schedule of Long-term Debt Service Requirements by Years May 31, 2023 Road Series 2021 Due During Principal Interest Due Fiscal Years Due September 1, Ending May 31 September 1 March 1 Total 2024 $ 65,000 $ 61,964 $ 126,964 2025 65,000 61,038 126,038 2026 65,000 59,998 124,998 2027 65,000 58,860 123,860 2028 70,000 57,575 127,575 2029 70,000 56,140 126,140 2030 70,000 54,635 124,635 2031 70,000 53,060 123,060 2032 70,000 51,415 121,415 2033 75,000 49,638 124,638 2034 80,000 47,700 127,700 2035 80,000 45,650 125,650 2036 90,000 43,419 133,419 2037 75,000 41,253 116,253 2038 80,000 39,219 119,219 2039 80,000 37,118 117,118 2040 85,000 34,953 119,953 2041 90,000 32,656 122,656 2042 90,000 30,238 120,238 2043 95,000 27,694 122,694 2044 100,000 25,012 125,012 2045 100,000 22,262 122,262 2046 105,000 19,443 124,443 2047 110,000 16,350 126,350 2048 115,000 12,975 127,975 2049 120,000 9,450 129,450 2050 125,000 5,775 130,775 2051 130,000 1,950 131,950 Totals $ 2,435,000 $ 1,057,440 $ 3,492,440 34 Rock Prairie Management District No. 2 Schedule of Long-term Debt Service Requirements by Years (Continued) May 31, 2023 Road Series 2022 Due During Principal Interest Due Fiscal Years Due September 1, Ending May 31 September 1 March 1 Total 2024 $ - $ 120,625 $ 120,625 2025 60,000 118,525 178,525 2026 65,000 114,150 179,150 2027 65,000 109,600 174,500 2028 65,000 105,050 170,350 2029 70,000 100,325 170,325 2030 75,000 96,187 171,187 2031 80,000 92,700 172,700 2032 85,000 88,988 173,388 2033 85,000 85,162 170,162 2034 85,000 81,338 166,338 2035 85,000 77,512 162,512 2036 85,000 73,688 158,588 2037 95,000 69,637 164,537 2038 95,000 65,363 160,363 2039 95,000 61,087 156,387 2040 95,000 56,813 151,813 2041 95,000 52,537 147,537 2042 100,000 48,150 148,150 2043 100,000 43,650 143,550 2044 100,000 39,150 139,150 2045 110,000 34,425 144,425 2046 110,000 29,475 139,475 2047 120,000 24,300 144,300 2048 120,000 18,900 138900 2049 120,000 13,500 133500 2050 120,000 8,100 128:100 2051 120,000 2,700 122;700 Totals $ 2,500,000 $ 1,831,637 $ 4,331.637 35 Rock Prairie Management District No. 2 Schedule of Long-term Debt Service Requirements by Years (Continued) May 31, 2023 Annual Requirements For All Series Due During Total Total Total Fiscal Years Principal Interest Principal and Ending May 31 Due Due Interest Due 2024 $ 65,000 $ 182,589 $ 247,589 2025 125,000 179,563 304,563 2026 130,000 174,148 304,148 2027 130,000 168,460 298,460 2028 135,000 162,625 297,625 2029 140,000 156,465 296,465 2030 145,000 150,822 295,822 2031 150,000 145,760 295,760 2032 155,000 140,403 295,403 2033 160,000 134,800 294,800 2034 165,000 129,038 294,038 2035 165,000 123,162 288,162 2036 ' 175,000 117,107 292,107 2037 170,000 110,890 280,890 2038 175,000 104,582 279,582 2039 175,000 98,205 273,205 2040 180,000 91,766 271,766 2041 185,000 85,193 270,193 2042 190,000 78,388 268,388 2043 195,000 71,344 266,344 2044 200,000 64,162 264,162 2045 210,000 56,687 266,687 2046 215,000 48,918 263,918 2047 230,000 40,650 270,650 2048 235,000 31,875 266,875 2049 240,000 22,950 262,950 2050 245,000 13,875 258,875 2051 250,000 4,650 254,650 Totals $ 4,935,000 $ 2,889,077 $ 7,824,077 36 Rock Prairie Management District No. 2 Changes in Long-term Bonded Debt Year Ended May 31, 2023 Interest rates Dates interest payable Maturity dates Bonds outstanding, beginning of current year Bonds sold during current year Retirements, principal Bonds outstanding, end of current year Interest paid during current year Paying agent's name and address: Series 2021 - The Bank of New York Mellon Trust Company, N.A., Dallas, Texas Series 2022 - The Bank of New York Mellon Trust Company, N.A., Dallas, Texas Bond authority: Road Series 2021 1.20% to 3.00% September 1/ March 1 September 1, 2023/2050 Bond Issues Road Series 2022 4.50% to 7.00% September 1/ March 1 September 1, 2024/2050 Amount authorized by voters Amount issued Remaining to be issued $ 2,500,000 2,500,000 65,000 Totals $ 2,500,000 2,500,000 65,000 $ 2,435,000 $ 2,500,000 $ 4,935,000 $ 62,792 Water, Sewer and Drainage Tax Bonds Road and Paving Tax Bonds $ 45,905 $ 108,697 Refunding Bonds $ 71,400,000 _ $ 106,600,000 $ 178,000,0)0 $ - $ 5,000,000 $ $ 71,400,000 $ 101,600,000 $ 178,000,0)0 Debt service fund cash and temporary investment balances as of May 31, 2023: $ 349,7)5 Average annual debt service payment (principal and interest) for remaining term of all debt: $ 279,431 37 Rock Prairie Management District No. 2 Comparative Schedule of Revenues and Expenditures - General Fund Four Years Ended May 31, 2023 General Fund Amounts 2022 2021 2020 Revenues Property taxes $ 85,613 $ 73,108 $ 116,829 $ 73,312 Penalty and interest - - 1,738 3,092 Investment income 66 54 Other income - 11,156 Total revenues 85,613 73,108 118,633 87,614 Expenditures Service operations: Professional fees 116,642 86,214 94,471 97,192 Contracted services 26,967 26,452 23,538 19,256 Repairs and maintenance 87,212 8,084 - Other expenditures 14,332 11,489 13,843 9,001 Debt service, debt issuance costs 20,333 - - Total expenditures 265,486 132,239 131,852 125,449 Deficiency of Revenues Over Expenditures (179,873) (59,131) (13,219) (37,835) Other Financing Sources (Uses) Interfund transfer out (27,952) Developer advances 173,000 50,033 67,490 Total other financing sources (uses) 173,000 (27,952) 50,033 67,490 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (6,873) (87,083) 36,814 29,655 Fund Balance (Deficit), Beginning of Year (16,443) 70,640 33,826 4,171 Fund Balance (Deficit), Fnd of Year $ (23,316) $ (16,443) $ 70,640 $ 33,826 Total Active Retail Water Connections N/A N/A N/A N/A Total Active Retail Wastewater Connections N/A NIA NIA NIA Percent of Fund Total Revenues 2023 2022 2021 2020 100.0 % 100.0 % 98.5 % 83.7 % - - 1.4 3.5 0.1 0.1 - - 12.7 100.0 100.0 100.0 100.0 136.2 117.9 31.5 36.2 101.9 11.1 16.7 15.7 23.8 - 310.1 180.9 (210.1) % (80.9) % 79.6 19.8 11.7 110.9 21.9 10.3 143.1 (43.1) % 38 Rock Prairie Management District No. 2 Schedule of Revenues and Expenditures — Debt Service Fund Three Years Ended May 31, 2023 Amounts Percent of Fund Total Revenues 2023 2022 2021 2023 2022 2021 Debt Service Fund Revenue Property taxes $ 268,435 $ 141,133 $ Penalty and interest 3,660 1,941 Investment income 6,841 181 Total revenues 3 98.5 % 1.4 0.1 98.5 % 1.4 0.1 100.0 278,936 143,255 3 100.0 100.0 100.0 Expenditures Current: Professional fees 1,134 704 0.4 .0.5 Contracted services 14,460 11,651 5,2 8.1 Other expenditures 7.790 6,070 2.8 4.2 Debt Service: Principal retirement 65,000 23:3 Interest and fees 109,447 56,561 39.2 39.5 Total expenditures 197,831 7.1,986 70.9 52.3 0.0 Excess of Revenues Over Expenditures % 81,105 68.,269 3 29.1 % 47.7 % 100.0 % Other Financing Sources General obligation bonds issued 120425 63,182 Interfund transfers in - 27.952 Total other financing sources 120,625 27,952 63,182 Excess of Revenues and Transfers In Over Expenditures and Transfers Out ' e 201,730,, 96,221 63,185 r , Fund Balance, Beginning of Year ' 1591406 63,185 Fund Balance, End ,of Year ,, $ 361,1.36 $ 159,406 63,185 39 Rock Prairie Management District No. 2 Board Members, Key Personnel and Consultants Year Ended May 31, 2023 Complete District mailing address: Rock Prairie Management District No. 2 c/o Schwartz., Page & Harding, L.L.P. 1300 Post Oak Boulevard, Suite 2400 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): June 16, 2021 Limit on fees of office that a director may receive during a fiscal year: $ 0 Term of Office Elected & Expense Title at Board Members Expires Fees* Reimbursements Year-end Appointed 06/19- Uri Geva 06/23 $ 0 $ 0 President Appointed 06/19- Vice Hays Glover 06/23 0 0 President Appointed Assistant 06/21- Vice Logan Lee 06/25 0 0 President Appointed 06/19- Mark Lindemulder 06/23 0 0 Secretary Appointed 06/21- Assistant Samual Kerbel 06/25 0 0 Secretary *The District is a management district, therefore, no directors' fees are paid. 40 Rock Prairie Management District No. 2 Board Members, Key Personnel and Consultants (Continued) Year Ended May 31, 2023 Fees and Expense Consultants Date Hired Reimbursements Title Tax Assessor/ B&A Municipal Tax Service, LLC 05/02/17 $ 17,350 Collector Legislative Brazos Central Appraisal District Action 4,027 Appraiser EHRA Engineering 08/18/15 a45;1.39 Engineer FORVIS, LLP 10/08/20 30,400r Auditor Financial Masterson Advisors LLC 05/12/22 53,856 Advisor Municipal Accounts & Consulting, L.P. Perdue, Brandon, Fielder, Collins & Mott, L.L.P. Vx�¥. Schwartz, Page & Harding, L.L.P. Investment Officers 08/18/15 31,683 Bookkeeper Delinquent 07/07/17 I.134 Tax Attorney 07/30/15 69,957 General Counsel 72,814 Bond Counsel Mark M. Burtpn.and Ghia Lewis 08/18/15 N/A Bookkeepers 41 EXHIBIT "D" Board of Directors Rock Prairie Management District No. 2 Brazos County, Texas As part of our audit of the financial statements of Rock Prairie Management District No. 2 (the District) as of and for the year ended May 31, 2023, we wish to communicate the following to you. Auditor's Responsibility Under Auditing Standards Generally Accepted in the United States of America An audit performed in accordance with auditing standards generally accepted in the United States of America is designed to obtain reasonable, rather than absolute, assurance about the financial statements. In performing auditing procedures, we establish scopes of audit tests in relation to the opinion unit being audited. Our engagement does not include a detailed audit of every transaction. Our contract more specifically describes our responsibilities. These standards require communication of significant matters related to the financial statement audit that are relevant to the responsibilities of those charged with governance in overseeing the financial reporting process. Such matters are communicated in the remainder of this letter or have previously been communicated during other phases of the audit. The standards do not require the auditor to design procedures for the purpose of identifying other matters to be communicated with those charged with governance. An audit of the financial statements does not relieve management or those charged with governance of their responsibilities. Our contract more specifically describes your responsibilities. Qualitative Aspects of Significant Accounting Policies and Practices Significant Accounting Policies The District's significant accounting policies are described in Note 1 of the audited financial statements. We call your attention to the following topics: • The fund financial statements are reported using the current financial resources focus and the modified accrual basis of accounting. • The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Alternative Accounting Treatments No matters are reportable. Board of Directors Rock Prairie Management District No. 2 Page 2 Management Judgments and Accounting Estimates Accounting estimates are an integral part of financial statement preparation by management, based on its judgments. The following area involves significant estimates for which we are prepared to discuss management's estimation process and our procedures for testing the reasonableness of those estimates: • Amounts due to developers Significant Unusual Transactions No matters are reportable. Financial Statement Disclosures The following areas involve particularly sensitive financial statement disclosures for which we are prepared to discuss the issues involved and related judgments made in formulating those disclosures: • Subsequent event • Contingent liability for developer construction Audit Adjustments During the course of any audit, an auditor may propose adjustments to financial statement amounts. Management evaluates our proposals and records those adjustments which, in its judgment, are required to prevent the financial statements from being materially misstated. A misstatement is a difference between the amount, classification, presentation or disclosure of a reported financial statement item and that which is required for the item to be presented fairly in accordance with the applicable financial reporting framework. Some adjustments could be proposed and not recorded because their aggregate effect is not currently material; however, they involve areas in which adjustments in the future could be material, individually or in the aggregate. Areas in which adjustments were proposed include: Proposed Audit Adjustments Recorded • Capital assets • Accrued liabilities • Long-term liabilities Proposed Audit Adjustments Not Recorded No matters are reportable. Auditor's Judgments About the Quality of the District's Accounting Principles No matters are reportable. Board of Directors Rock Prairie Management District No. 2 Page 3 Other Material Communications Listed below are other material communications between management and us related to the audit: • Management representation letter • Management letter This letter is intended solely for the information and use of the Board of Directors, and is not intended to be, and should not be, used by anyone other than these specified parties. 2023 EXHIBIT "E" FORV/S 2700 Post Oak Boulevard, Suite 1500 / Houston, TX 77056 P 713.499.4600 / F 713.499.4699 forvis.com September 14, 2023 Board of Directors Rock Prairie Management District No. 2 Brazos County, Texas We appreciate your selection of FORVIS, LLP as your service provider and are pleased to confirm the arrangements of our engagement in this contract. Within the requirements of our professional standards and any duties owed to the public, regulatory, or other authorities, our goal is to provide you an Unmatched Client Experience. In addition to the terms set forth in this contract, including the detailed Scope of Services, our engagement is governed by the following, incorporated fully by this reference: • Terms and Conditions Addendum Summary Scope of Services As described in the attached Scope of Services, our services will include the following: Rock Prairie Management District No. 2 • Agreed -Upon Procedure Services relative to the District's surplus road bond funds Engagement Fees Our fees for the above services will be computed at our standard rates. Our pricing for this engagement and our fee structure are based upon the expectation that our invoices will be paid promptly. Payment of our invoices is due upon receipt. Contract Agreement Please sign and return this contract to indicate your acknowledgment of, and agreement with, the arrangements for our services including our respective responsibilities. FORVIS, LLP Fo rW 15, L? FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U S Patent and Trademark Office ��� PR�1XIP Empow.ring Bualn.aa Globally Rock Prairie Management District No. 2 September 14, 2023 Page 2 Acknowledged and agreed to as it relates to the entire contract, including the Scope of Services and Terms anitions Aum, on behalf of Rock Prairie Management District No. 2. BY Bea-sident' DATE Rock Prairie Management District No. 2 September 14, 2023 Page 3 The following apply for all services: Assistance Responsibility for Outcomes Performance of Nonattest Services — SEC and PCAOB Scope of Services Our timely completion of services depends on the assistance you, or the responsible party(ies), provide us in accumulating information and responding to our inquiries. Inaccuracies or delays in providing this information or the responses may result in untimely filings or inability to meet other deadlines. We may perform additional services for you that are not covered by this contract. You agree to assume full responsibility for the substantive outcomes of the contracted services and for any other services we may provide, including any findings that may result. You also acknowledge these services are adequate for your purposes, and you will establish and monitor the performance of these services to ensure they meet management's objectives. All decisions involving management responsibilities related to these services will be made by you, and you accept full responsibility for such decisions. We understand that the Board is responsible and accountable for overseeing the performance of these services and that the Board is qualified to conduct such oversight. Our performance of certain nonattest services may not be permitted under the SEC and PCAOB independence rules, to which we are not currently subject. Accordingly, if we perform services that are not permitted under those rules, you would not be permitted to use our reports in a registration statement or other document requiring compliance with those rules. You agree to inform us promptly if you are considering any future public offering of securities, use of our reports to comply with the Investment Advisers Act custody rule, or other action that would necessitate our future compliance with the independence rules of the SEC and PCAOB. Rock Prairie Management District No. 2 September 14, 2023 Page 4 Scope of Services — Agreed -Upon Procedure Services We will apply the agreed -upon procedures described below to statements submitted by the developers for costs paid or incurred on behalf of Rock Prairie Management District No. 2 (the District). This engagement is solely to assist you in determining amounts to be paid by the District to the developers from the proceeds of the District's surplus road bond funds. The appropriateness of the procedures is solely the responsibility of the parties to be specified in our report. Consequently, we make no representation regarding the appropriateness of the procedures described below for the purpose for which our reports have been requested or for any other purpose. Our proposed procedures are as follows: • We will vouch copies of checks and invoices supporting amounts expended by the developers. The computations of certain costs will be recalculated to determine that the amounts required to be paid by the developers, in accordance with the rules of the Texas Commission on Environmental Quality (the Commission), are not included in the amount to be reimbursed. • We will recalculate the computations of interest requested by the developers, on a test basis, and determine that they are in compliance with rules of the Commission. The interest rate to be utilized is from the District's Series 2023 Road Bonds. • We will compare the costs submitted by the developer to the cost summary approved by the District. • Estimates of costs remaining to be incurred, if any, will be obtained through discussion with the District's other consultants. Because we have not been engaged to conduct an examination or review, we will not express an opinion or conclusion, respectively. In addition, we have no obligation to perform any procedures beyond those listed above. Sherri Greenwood is responsible for supervising the engagement and authorizing the signing of the report or reports. We will submit reports listing the procedures performed and the results of those procedures. These reports are solely for the use of the District and should not be used by those who did not agree to the procedures. Our reports will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you. The following apply for the agreed -upon procedure services described above: Our Responsibilities District Responsibilities Our engagement to apply agreed -upon procedures will be performed in accordance with attestation standards established by the American Institute of Certified Public Accountants as required by Rule 30 TAC, Section 293.70 of the Commission, "Audit of Payments to Developer." To facilitate our engagement, the District is responsible for supplying us with all necessary information and for allowing us access to personnel to assist in performing our services. It should be understood that the District is responsible for the accuracy and completeness of these items and for the subject matter. At the conclusion of our engagement, the District will provide to us a letter confirming the availability of this information, certain representations made during the engagement, and acknowledging certain responsibilities outlined in this contract. Rock Prairie Management District No. 2 September 14, 2023 Page 5 GENERAL 1. Overview. This addendum describes FORVIS LLP's standard terms and conditions ("Terms and Conditions") applicable to Our provision of services to the Client ("You"). The Terms and Conditions are a part of the contract between You and FORVIS, LLP. For the purposes of the Terms and Conditions, any reference to "Firm," "We," "Us," or "Our" is a reference to FORVIS, LLP ("FORVIS"), and any reference to "You" or "Your" is a reference to the party or parties that have engaged Us to provide services and the party or parties ultimately responsible for payment of Our fees and costs. BILLING, PAYMENT, & TERMINATION 2. Billing and Payment Terms. We will bill You for Our professional fees and costs as outlined in Our contract. Interest will be charged on any unpaid balance after 30 days at the rate of 10 percent per annum, or as allowed by law at the earliest date thereafter, and highest applicable rate if less than 10 percent. All fees, charges, and other amounts payable to FORVIS hereunder do not include any sales, use, excise, value-added, or other applicable taxes, tariffs, or duties, payment of which shall be Your sole responsibility, and do not include any applicable taxes based on FORVIS' net income or taxes arising from the employment or independent contractor relationship between FORVIS and FORVIS' personnel. We reserve the right to suspend or terminate Our work for this engagement or any other engagement for nonpayment of fees. If Our work is suspended or terminated, You agree that We will not be responsible for Your failure to meet governmental and other deadlines, for any penalties or interest that may be assessed against You resulting from Your failure to meet such deadlines, and for any other damages (including but not limited to consequential, indirect, lost profits, or punitive damages) incurred as a result of the suspension or termination of Our services. Our fees may increase if Our duties or responsibilities are increased by rulemaking of any regulatory body or any additional new accounting or auditing standards. Our engagement fees do not include any time for post -engagement consultation with Your personnel or third parties, consent letters and related procedures for the use of Our reports in offering documents, inquiries from regulators, or testimony or deposition regarding any subpoena. Charges for such services will be billed separately. 3. Billing Records. If these services are determined to be within the scope and authority of Section 1861(v)(1)(I) of the Social Security Act, We agree to make available to the Secretary of Health and Human Services, or to the U.S. Comptroller General, or any of their duly authorized representatives, such of Our books, documents, and records that are necessary to certify the nature and extent of Our services, until the expiration of four (4) years after the furnishing of these services. This contract allows access to contracts of a similar nature between FORVIS, LLP Terms and Conditions Addendum subcontractors and related organizations of the subcontractor, and to their books, documents, and records. 4. Termination. Either party may terminate these services in good faith at any time for any reason, including Your failure to comply with the terms of Our contract or as We determine professional standards require. Both parties must agree, in writing, to any future modifications or extensions. If services are terminated, You agree to pay FORVIS for time expended to date. In addition, You will be billed costs and fees for services from other professionals, if any, as well as an administrative fee of five (5) percent to cover certain technology and administrative costs associated with Our services. Unless terminated sooner in accordance with its terms, this engagement shall terminate upon the completion of FORVIS' services hereunder. DISPUTES & DISCLAIMERS 5. Mediation. Any dispute arising out of or related to this engagement will, prior to resorting to litigation, be submitted for nonbinding mediation upon written request by either party. Both parties agree to try in good faith to settle the dispute in mediation. The mediator will be selected by agreement of the parties. The mediation proceeding shall be confidential. Each party will bear its own costs in the mediation, but the fees and expenses of the mediator will be shared equally. 6. Indemnification. Unless disallowed by law or applicable professional standards, You agree to hold FORVIS harmless from any and all claims which arise from knowing misrepresentations to FORVIS, or the intentional withholding or concealment of information from FORVIS by Your management or any partner, principal, shareholder, officer, director, member, employee, agent, or assign of Yours. To the extent allowed by law, but without any requirement that You establish or maintain a separate interest and sinking fund therefore, You also agree to indemnify FORVIS for any claims made against FORVIS by third parties, which arise from any wrongful actions of Your management or any partner, principal, shareholder, officer, director, member, employee, agent, or assign of Yours. The provisions of this paragraph shall apply regardless of the nature of the claim. 7. Statute of Limitations. [Deleted] 8. Limitation of Liability. You agree that FORVIS' liability, if any, arising out of or related to this contract and the services provided hereunder, shall be limited to the amount of the fees paid by You for services rendered under this contract. This limitation shall not apply to the extent it is finally, judicially determined that the liability resulted from the gross negligence or intentional or willful misconduct of FORVIS or if enforcement of this provision is disallowed by applicable law or professional standards. 9. Waiver of Certain Damages. Except with respect to claims of gross negligence or intentional or willful misconduct, or a breach of confidentiality, in no event shall FORVIS be liable to Rock Prairie Management District No. 2 September 14, 2023„ Page 6 You or a third party for any indirect, special, consequential, punitive, or exemplary damages, including but not limited to lost profits, loss of revenue, interruption, loss of use, damage to goodwill or reputation, regardless of whether You were advised of the possibility of such damages, regardless of whether such damages were reasonably foreseeable, and regardless of whether such damages arise under a theory of contract, tort, strict liability, or otherwise. 10. Choice of Law. You acknowledge and agree that any dispute arising out of or related to this contract shall be governed by the laws of the State of Texas, without regard to its conflict of laws principles. 11. WAIVER OF JURY TRIAL. THE PARTIES HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT, OR ANY CLAIM, COUNTERCLAIM, OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY THE PARTIES, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. 12. Severability. In the event that any term or provision of this agreement shall be held to be invalid, void, or unenforceable, then the remainder of this agreement shall not be affected, and each such term and provision of this agreement shall be valid and enforceable to the fullest extent permitted by law. 13. Assignment. You acknowledge and agree that the terms and conditions of this contract shall be binding upon and inure to the parties' successors and assigns, subject to applicable laws and regulations. 14. Disclaimer of Legal or Investment Advice. Our services do not constitute legal or investment advice. RECORDS, WORKPAPERS, DELIVERABLES, & PROPRIETARY INFORMATION 15. Maintenance of Records. All audit and/or agreed -upon procedure reports generated by Us hereunder shall be Your property upon finalization of same. We acknowledge that the requirements of Chapter 552, Texas Government Code, as amended (the "Public Information Act"), and Chapters 201-205, Texas Local Government Code, as amended (the "Local Government Records Act," and together with the Public Information Act, the "Acts"), each apply to all public information, as defined by the Public Information Act, and all local government records, as defined by the Local Government Records Act, related to the relationship between the You and Us, and to any work carried out thereunder. We covenant that We will comply with all requirements of the Acts, Your Record Management Program, and all applicable rules, regulations, policies, and retention schedules adopted thereunder. You agree to assume full responsibility for maintaining Your original data and records and that FORVIS has no responsibility to maintain this information. You agree You will 1 1 not rely on FORVIS to provide hosting, electronic security, or backup services, e.g., business continuity or disaster recovery services, to You unless separately engaged to do so. You understand that Your access to data, records, and information from FORVIS' servers, i.e., FORVIS portals used to exchange information, can be terminated at any time and You will not rely on using this to host Your data and records. 6. FORVIS Workpapers. Our workpapers and documentation (except final audit and/or agreed -upon procedure reports) retained in any form of media for this engagement are the property of FORVIS. We can be compelled to provide information under legal process. In addition, We may be requested by regulatory or enforcement bodies (including any State Board) to make certain workpapers available to them pursuant to authority granted by law or regulation. Unless We are prohibited from doing so by law or regulation, FORVIS will inform You of any such legal process or request. You agree We have no legal responsibility to You in the event We determine We are obligated to provide such documents or information. We will cooperate with You in responding to any subpoena where FORVIS is not a party and will provide You with a fee estimate based on the estimated time required to comply. You agree to compensate FORVIS for the time expended complying with the subpoena or other legal process based on the agreed -upon estimates. 7. Subpoenas or Other Legal Process. In the event FORVIS is required to respond to any such subpoena, court order, or any government regulatory inquiry or other legal process relating to You or Your management for the production of documents and/or testimony relative to information We obtained or prepared incident to this or any other engagement in a matter in which FORVIS is not a party, You shall compensate FORVIS for all time We expend in connection with such response at normal and customary hourly rates and to reimburse Us for all out-of-pocket expenses incurred in regard to such response. 18. Use of Deliverables and Drafts. You agree You will not modify any deliverables or drafts prepared by Us for distribution to third parties. You also understand that We may on occasion send You documents marked as draft and understand that those are for Your review purpose only, should not be distributed in any way, and should be destroyed as soon as possible. Draft documents are subject to potentially material changes until such time as they are marked final, and We shall not be liable to You in Your use of such draft documents. Our report on any financial statements must be associated only with the financial statements that were the subject of Our engagement. You may make copies of Our report, but only if the entire financial statements (exactly as attached to Our report, including related footnotes) and any supplementary information, as appropriate, are reproduced and distributed with Our report. 19. Proprietary Information. You acknowledge that proprietary information, documents, materials, management techniques, and other intellectual property are a material source of the services We perform and were developed prior to Our association with You. Any new forms, software, documents, or intellectual property We develop during this engagement for Rock Prairie Management District No. 2 September 14, 2023 Page 7 Your use (except final audit and/or agreed -upon procedure reports) shall belong to Us, and You shall have the limited right to use them solely within Your business. All reports, templates, manuals, forms, checklists, questionnaires, letters, agreements, and other documents which We make available to You are confidential and proprietary to Us. This provision will apply to all materials whether in digital, "hard copy" format, or other medium. REGULATORY 20. U.S. Securities and Exchange Commission ("SEC") and other Regulatory Bodies. Where We are providing services either for (a) an entity that is registered with the SEC, (b) an affiliate of such registrant, or (c) an entity or affiliate that is subject to rules, regulations, or standards beyond those of the American Institute of Certified Public Accountants ("AICPA"), any term of this contract that would be prohibited by or impair Our independence under applicable law or regulation shall not apply to the extent necessary only to avoid such prohibition or impairment. 21. Offering Document. You may wish to include Our report(s) on financial statements in an exempt offering document. You agree that any report, including any auditor's report, or reference to Our firm, will not be included in any such offering document without notifying Us. Any agreement to perform work in connection with an exempt offering document, including providing agreement for the use of the auditor's report in the exempt offering document, will be a separate engagement. Any exempt offering document issued by You with which We are not involved will clearly indicate that We are not involved by including a disclosure such as, "FORVIS, LLP, our independent auditor, has not been engaged to perform and has not performed, since the date of its report included herein, any procedures on the financial statements addressed in that report. FORVIS, LLP also has not performed any procedures relating to this offering document." 22. FORVIS Not a Municipal Advisor. FORVIS is not acting as Your municipal advisor under Section 15B of the Securities Exchange Act of 1934, as amended. As such, FORVIS is not recommending any action to You and does not owe You a fiduciary duty with respect to any information or communications regarding municipal financial products or the issuance of municipal securities. You should discuss such matters with internal or external advisors and experts You deem appropriate before acting on any such information or material provided by FORVIS. 23. FORVIS Not a Fiduciary. In providing Our attest services, We are required by law and our professional standards to maintain our independence from You. We take this mandate very seriously and thus guard against impermissible relationships which may impair the very independence which You and the users of Our report require. As such, You should not place upon Us special confidence that in the performance of Our attest services We will act solely in Your interest. Therefore, You acknowledge and agree We are not in a fiduciary relationship with You and We have no fiduciary responsibilities to You in the performance of Our services described herein. TECHNOLOGY 24. Electronic Sites. In the event You place Our report(s), including any reports on Your financial statements, along with other information, such as a report by management or those charged with governance on operations, financial summaries or highlights, financial ratios, etc., on an electronic site, You agree to notify Us. You recognize that We have no responsibility to review information contained in electronic sites. 25. Electronic Signatures and Counterparts. This contract and other documents to be delivered pursuant to this contract may be executed in one or more counterparts, each of which will be deemed to be an original copy and all of which, when taken together, will be deemed to constitute one and the same agreement or document, and will be effective when counterparts have been signed by each of the parties and delivered to the other parties. Each party agrees that the electronic signatures, whether digital or encrypted, of the parties included in this contract are intended to authenticate this writing and to have the same force and effect as manual signatures. Delivery of a copy of this contract or any other document contemplated hereby, bearing an original manual or electronic signature by facsimile transmission (including a facsimile delivered via the internet), by electronic mail in "portable document format" (".pdf') or similar format intended to preserve the original graphic and pictorial appearance of a document, or through the use of electronic signature software, will have the same effect as physical delivery of the paper document bearing an original signature. 26. Electronic Data Communication and Storage. In the interest of facilitating Our services to You, We may send data over the internet, temporarily store electronic data via computer software applications hosted remotely on the Internet, or utilize cloud -based storage. Your confidential electronic data may be transmitted or stored using these methods. In using these data communication and storage methods, We employ measures designed to maintain data security. We use reasonable efforts to keep such communications and electronic data secure in accordance with Our obligations under applicable laws, regulations, and professional standards. You recognize and accept that We have no control over the unauthorized interception or breach of any communications or electronic data once it has been transmitted or if it has been subject to unauthorized access while stored, notwithstanding all reasonable security measures employed by Us. You consent to Our use of these electronic devices and applications during this engagement. OTHER MATTERS 27. Cooperation. You agree to cooperate with FORVIS in the performance of FORVIS' services to You, including the provision to FORVIS of reasonable facilities and timely access to Your data, information, and personnel. You shall be responsible for the performance of Your employees and agents. 28. Third -Party Service Providers. FORVIS may from time to time utilize third -party service providers, including but not Rock Prairie Management District No. 2 September 14, 2023, Page 8 limited to domestic software processors or legal counsel, or disclose confidential information about You to third -party service providers in serving Your account. FORVIS maintains, however, internal policies, procedures, and safeguards to protect the confidentiality and security of Your information. In addition, FORVIS will secure confidentiality agreements with all service providers to maintain the confidentiality of Your information. If We are unable to secure an appropriate confidentiality agreement, You will be asked to consent prior to FORVIS sharing Your confidential information with the third -party service provider. 29. Independent Contractor. When providing services to You, We will be functioning as an independent contractor; and in no event will We or any of Our employees be an officer of You, nor will Our relationship be that of joint venturers, partners, employer and employee, principal and agent, or any similar relationship giving rise to a fiduciary duty to You. Decisions regarding management of Your business remain the responsibility of Your personnel at all times. Neither You nor FORVIS shall act or represent itself, directly or by implication, as an agent of the other or in any manner assume or create any obligation on behalf of, or in the name of, the other. 30. Use of FORVIS Name. Any time You intend to reference FORVIS' firm name in any manner in any published materials, other than in connection with Our audit report or other deliverables, You agree to provide Us with draft materials for review and approval before publishing or posting such information. 31. Praxity. FORVIS is an independent accounting firm allowed to use the name "Praxity" in relation to its practice. FORVIS is not connected, however, by ownership with any other firm using the name "Praxity." FORVIS will be solely responsible for all work carried out on Your behalf. In deciding to engage FORVIS, You acknowledge that We have not represented to You that any other firm using the name "Praxity" will in any way be responsible for Our work. 32. Entire Agreement. The contract, including this Terms and Conditions Addendum and any other attachments or addenda, encompasses the entire agreement between You and FORVIS and supersedes all previous understandings and agreements between the parties, whether oral or written. Any modification to the terms of this contract must be made in writing and signed by both You and FORVIS. 33. Force Majeure. We shall not be held responsible for any failure to fulfill Our obligations if such failure was caused by circumstances beyond Our control, including, without limitation, fire or other casualty, act of God, act of terrorism, strike or labor dispute, war or other violence, explosion, flood or other natural catastrophe, epidemic or pandemic, or any law, order, or requirement of any governmental agency or authority affecting either party, including without limitation orders incident to any such epidemic or pandemic, lockdown orders, stay-at-home orders, and curfews. 34. Representations. (a) As required by Chapter2271, Government Code, We represent that We, including any wholly owned subsidiary, majority -owned subsidiary, parent company, or affiliate of Us, do not boycott Israel and will not boycott Israel through the term of this engagement. The term "boycott Israel" in this paragraph has the meaning assigned to such term in Section 808.001 of the Texas Government Code, as amended. (b) Pursuant to Chapter 2252, Texas Government Code, We represent and certify that, at the time of execution of this contract, neither We, nor any wholly owned subsidiary, majority -owned subsidiary, parent company, or affiliate of the same is a company listed by the Texas Comptroller of Public Accounts under Sections 2270.0201 or 2252.153 of the Texas Government Code. (c) To the extent the engagement to which this Terms and Conditions Addendum is attached has a value of $100,000 or more, pursuant to Section 2274.002, Texas Government Code (as added by Senate Bill 13, 87th Texas Legislature, Regular Session), as amended, We hereby verify that We, including a wholly owned subsidiary, majority -owned subsidiary, parent company, or affiliate of Us, does not boycott energy companies, and will not boycott energy companies during the term of this Agreement. As used in the foregoing verification, "boycott energy companies" shall have the meaning assigned to the term "boycott energy company" in Section 809.001, Texas Government Code. (d) To the extent the engagement to which this Terms and Conditions Addendum is attached has a value of $100,000 or more, pursuant to Section 2274.002, Texas Government Code (as added by Senate Bill 19, 87th Texas Legislature, Regular Session), as amended, We hereby verify that We, including a wholly owned subsidiary, majority -owned subsidiary, parent company or affiliate of Us: (i) do not have a practice, policy, guidance or directive that discriminates against a firearm entity or firearm trade association, and (ii) will not discriminate against a firearm entity or firearm trade association during the term of the Agreement. As used in the foregoing verifications, "discriminate against a firearm entity or trade association" shall have the meaning assigned to such term in Section 2274.001(3), Texas Government Code. CERTIFICATE OF INTERESTED PARTIES FORM 1295 Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. FORVIS, LLP Houston, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. Rock Prairie Management District No. 2 3 Provide the identification number used by the governmental entity or state agency to track or identify description of the services, goods, or other property to be provided under the contract. 09142023 Agreed -upon procedures engagement relative to the Districts surplus road bond funds 4 Cole, Abe Graham, Frank Snow, Matt Watson, Tom Name of Interested Party 5 Check only if there is NO Interested Party. 6 UNSWORN DECLARATION My name is My address is 1 of 1 OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2023-1069628 Date Filed: 09/08/2023 Date Acknowledged: 09/15/2023 the contract, and provide a City, State, Country (place of business) Springfield, MO United States Charlotte, NC United States Charlotte, NC United States Dallas, TX United States , and my date of birth is (street) (city) (state) I declare under penalty of perjury that the foregoing is true and correct. Executed in County, State of , on the day of Nature of interest (check applicable) Controlling intermediary (zip code) (country) , 20 (month) (year) Signature of authorized agent of contracting business entity (Declarant) Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V3.5.1.99923476 CERTIFICATE OF INTERESTED PARTIES FORM 1295 a Complete Nos. 1 - 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. FORVIS, LLP Houston, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. Rock Prairie Management District No. 2 1 of 1 OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2023-1069628 Date Filed: 09/08/2023 Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. 09142023 Agreed -upon procedures engagement relative to the District's surplus road bond funds 4 Cole, Abe Graham, Frank Snow, Matt Watson, Tom Name of Interested Party City, State, Country (place of business) 5 Check only if there is NO Interested Party. 6 UNSWORN DECLARATION My name is BRIAN K. KRUEGER My address is 2700 POST OAK BLVD., SUITE 1500 (street) I declare under penalty of perjury that the foregoing is true and correct. Executed in HARRIS Forms provided by Texas Ethics Commission Nature of interest (check applicable) Controlling Intermediary Springfield, MO United States X Charlotte, NC United States X Charlotte, NC United States X Dallas, TX United States X HOUSTON (city) County, State of TEXAS and my date of birth is 04/1 1 /67 TX 77056 USA (state) (zip code) (country) _, on the 14th day ofSEPTEMBER20 23 (month) (year) Signature of authorized agent of contracting business entity (Declarant) www.ethics.state.tx.us Version V3.5.1.99923476 EXHIBIT "F" Honesty I Efficiency I Transparency I Accountability I Continuity MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE MONTH ENDING JULY 31, 2023 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 MAIN 713-900-2680 HOUSTON, TX 77040 TOLL FREE 1-888-598-7409 1 Total Outstanding Balance CAD Changes / Uncollectible Total Levy to be collected MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 7/31/23 RECEIVABLES SUMMARY 2022 Balance Forward Levy at 05/31/23 FYE CAD Changes / Uncollectible $13,228.60 $219.07 13,447.67 Outstanding Balance forward Prior Years (2021-2010) at 05/31/23 FYE $0.00 $0.00 0.00 13,447.67 Collection prior months (all years) ($3,564.60) 2022 Taxes Collected net NSF & KR Refunds during current month ($478.30) Taxes Collected for Prior Years net NSF & KR Refunds $0.00 (4,042.90) 9,404.77 TAX ACCOUNT Beginning Balance — Tax Account 25,001.44 Income Taxes Collected Current Year $863.97 Taxes Collected Prior Year $0.00 10% Rendition Penalty $0.00 Penalties & Interest $27.82 Collection Fee Paid $36.48 Overpayments $0.00 NSF or Reversals, Bank Charges $0.00 Other Fees & Court Costs, Etc $0.00 CCI Overpayment $0.00 Earned Interest $0.00 $928.27 Expenses CK# 1221 Rock Prairie Management Distrct 2 - Operating CK# 1222 Perdue Brandon Fielder Collins & Mott- Delq Atty Coll (7/2023) CK# 1223 Jesus Ochoa, Jr. - Correction Roll 30 Refund (TY 2022) CK# 1224 Ryan David Siefert - Correction Roll 30 Refund (TY 2022) CK# 1225 Yolanda Patterson - Correction Roll 30 Refund (TY 2022) CK# 1226 B&A Municipal Tax Service, LLC - Invoice MD2-193 CK# 1227 B&A Municipal Tax Service, LLC - Invoice MD2-194 25,929.71 $114.79 $36.48 $132.76 $176.09 $76.82 $824.90 $497.94 $1,859.78 Ending Balance —Tax Account 24,069.93 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 2 MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 7/31/23 OUTSTANDING TAXES - YEAR TO DATE BALANCE FORWARD CAD TAX @ SUPPLEMENTS & YEAR 10/01/22 CORRECTIONS UNCOLLECTIBLE 2022 $366,474.63 ($2,531.30) $0.00 2021 $216,956.04 $0.00 $0.00 2020 $117,666.69 $0.00 $0.00 2019 $73,299.93 $0.00 $0.00 2018 $49,461.25 $0.00 $0.00 2017 $19,962.78 $0.00 $0.00 EXEMPTIONS & TAX RATES TAX YEAR 2022 2021 2020 2019 2018 2017 HOMESTEAD EXEMPTION 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% DISTRICT VALUES TAX LAND & YEAR IMPROVEMENTS 2022 2021 2020 2019 2018 2017 74,235,602 43,412,055 22,941,412 14,898,546 9,881,920 4,069,643 OVER 65 / DISABLED 0 0 0 0 0 0 AG NET 8,296 8,675 7,123 14,370 28,690 27,010 COLLECTIONS $354,538.56 $216,956.04 $117,666.69 $73,299.93 $49,461.25 $19,962.78 DEBT SERVICE M&ORATE RATE 0.12000 0.17000 0.50000 0.50000 0.50000 0.50000 PERSONAL PROPERTY 120,621 608,274 617,829 909,670 309,850 0 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 EXEMPTIONS 1,575,865 637,793 33,002 1,162,600 328,210 104,096 OUTSTANDING TAXES $9,404.77 $0.00 $0.00 $0.00 $0.00 $0.00 $9,404.77 ROAD BOND DEBT RATE 0.38000 0.33000 0.00000 0.00000 0.00000 0.00000 TOTAL VALUE 72,788,654 43,391,211 23,533,362 14,659,986 9,892,250 3,992,557 COLLECTIONS PERCENTAGE 97.42% 100.00% 100.00% 100.00% 100.00% 100.00% TOTAL RATE 0.50000 0.50000 0.50000 0.50000 0.50000 0.50000 SR KR 37 37 65 65 85 85 99 99 105 105 101 101 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 3 MUNICIPAL TAX SERVICE,LLC BEGINNING BALANCE INCOME 10% Rendition Penalty Collection Fee Earned Interest Overpayments Penalty & Interest Rollback Tax Collected Taxes Collected ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 7/31/23 PROFIT & LOSS CURRENT MONTH 07/01/23 - 07/31/23 27,195.87 0.00 36.48 0.00 0.00 27.82 0.00 863.97 Total Income 928.27 FISCAL YEAR 6/01/23 - 7/31/23 46,650.66 0.00 36.48 0.00 0.00 482.70 0.00 4,428.57 4,947.75 EXPENSES_ Audit/Records 0.00 0.00 Bank Charges 0.00 0.00 Bond Premium 0.00 50.00 CAD Fees 0.00 _ _ 812.75 Certificate of Value 0.00 0.00 Copies 64.20 144.00 _Correction Roll Refunds 0.00 0.00 Correction Roll Rendition Refunds 0.00 0.00 Continuing Disclosure _ 0.00 _ 0.00 Court Affidavits _ 0.00 0.00 Delinquent Tax Attorney Assistance 15.00 30.00 Delinquent Tax Attorney Fee 0.00 0.00 Estimate of Value 0.00 0.00 Financial Advisor Assistance 0.00 0.00 Unclaimed Property Report 0.00 0.00 Legal Notices 0.00 0.00 Mailing & Handling 20.39 49.79 Meeting Travel & Mileage 290.04 520.08 NSF, Reversals, Stop Pay _ 0.00 0.00 Overpayment Refund _ 0.00 0.00 Public Hearing 0.00 0.00 Records Retention 1.64 7.26 Research 0.00 0.00 Roll Update & Processing 18.75 18.75 Senate Bill 2 to CAD (5 Yr History) 0.00 0.00 Supplies 104.01 104.01 Tax Assessor Collector Fee - AB 824.90 1,649.80 Transfer to Rollback Collected 0.00 0.00 Transfer to Maintenance & Operating 855.50 2,282.26 Transfer to Road Debt Service 0.00 20,000.00 2,194.43 25,668.70 ENDING BALANCE 25.929.71 25.929.71 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 4 MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 7/31/23 2022 October $19,553.67 November $25,643.23 December $50,710.36 January $221,635.93 _.I February March April May June July August $10,057.86 $5,972.86 $10,976.90 $5,944.85 $3,564.60 Se tember 20221 $863.97 YEAR TO YEAR COMPARISON % 2021 1 % VARIANCE I 5.34% 12.33% 26.17% $0.00 $27,879.54 $47,161.03 86.66% $96,284.05 90.07% H $32,143.07 91.71% $1,284.59 94.73% $0.00 96.36% $9,110.62 97 34% $25.55 $863.97 97.42% $1,447.70 $1,497.71 $0.00 MONTHLY COLLECTIONS 20211 2019 I $0.00 $0.00 0.00% 5.34% 12.87% -0.54% 34.64% -8.47% 79.10% 7.56% 93.94% -3.87% 94.53% -2.82% 94.53% 0.20% 98.56% -2.20% 98.57% -1.23% 99.24%I-1.82%. 99.93% 99.93% B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 5 MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MGT DIST NO. 2 FOR THE PERIOD ENDING 07/24/2023 PLEDGED SECURITIES REPORT SECURITES PLEDGED AT 105% OVER FDIC INSURED $250,000 COLLATERAL SECURITY AGREEMENT ON FILE : YES TAX BANK ACCOUNT HELD AT: WELLS FARGO / BANK OF NEW YORK MELLON COLLATERAL SECURITY REQUIRED: NO TYPE OF PLEDGED INVESTMENT: IN COMPLIANCE W/ DISTRICT INVESTMENT POLICY: YES B A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY SUITE 620 HOUSTON, TX 77040 MAIN 713-900-2680 FAX 713-900-2685 PS STATE 0 F TEXAS § COUNTY OF BRAZOS § Avik Bonnerjee, being duly sworn, says that he is the Tax Assessor -Collector for the above named District and the foregoing contains a true and correct report accounting for all taxes collected for said District during the month therein stated. Avik Bonnerjee, RTA SWORN TO AND SUBSCRIBED BEFORE ME, this 1st day of August 2023. e 11 REBECCA LYNN BREWER �f1 r-r. Notary ID 4125E819 My Commisson Expires ) March 1, 2024 Rebecca Lynn Brewer Notary Public, State of Texas Notary ID #1258819 My Commission Expires March 1, 2024 MUNICIPAL TAX SERVICE,LLC TAX YEAR 2022 2021 2020 2019 2018 2017 M&ORATE 0.120000 0.170000 0.500000 0.500000 0.500000 0.500000 ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 7/31/23 MAINTENANCE & OPERATING LESS PENALTIES & CORRECTION PERCENTAGE COLLECTIONS INTEREST ROLLS LESS REVERSALS 24.00% $863.97 $0.00 $385.67 $0.00 34.00% $0.00 $0.00 $0.00 $0.00 100% $0.00 [ $0.00 $0.00 $0.00 100% $0.00 I $0.00 $0.00 $0.00I 100% $0.00 I $0.00 $0.00 $0.00I 100% $0.00 I $0.00 $0.00 $0.00 1_ DATE: 8.01.23 PAID CHECK# O�vc B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 505 HOUSTON, TX 77040 0.00 LESS TRANSFER $114.79 $0.00 $0.00 $0.00 $0.00 $0.00 SO.-- $0.00 $114.79 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 1 Jurisdiction: MD2 ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 Page 1 Deposits Report 8/1/2023 For Dates 7/1/2023 thru 7/31/2023 12:03 PM Bank WELLS FARGO BANK Deposit Date Deposit No Ck/Cash CC WACH Deposit Amount 7/7/2023 2023057 0 1 0 338.59 7/10/2023 2023058 3 0 0 0.00 7/11/2023 2023059 1 0 0 218.86 7/31/2023 2023060 0 0 1 370.82 Total Deposits 4 4 1 1 928.27 GL Account Summary 2022 Total Report Taxes Paid 478.30 478.30 P&I Paid 27.82 27.82 Coll Fee Paid 36.48 36.48 Refund 385.67 385.67 928.27 928.27 FC l aga Report Prepared by B&A Municipal Tax www.bamunitax.com 2022 TAX RECEIPT ROCK PRAIRIE MANAGEMENT DISTRICT 2 AVIK BONNERJEE, TAX ASSESSOR/COLLECTOR 13333 NORTHWEST FREEWAY, SUITE 620 HOUSTON, TX 77040 Hours: MON - THU 8 - 4 FRI 8 - 12 Web: WWW.BAMUNITAX.COM Owner Name and Address OCHOA JESUS JR 807 DOUBLE MOUNTAIN RD COLLEGE STATION, TX 77845 **RETURN SERVICE REQUESTED** Appraised Values Improvement HS Land HS 100% Assessed Value Taxing Unit ROCK PRAIRIE MD NO 2 Phone: 713-900-2680 Fax: 713-900-2685 Property Information 95,948 MIDTOWN RESERVE PH 104, BLOCK 6, LOT 27, Undivided Interest 50 0000000000% 25,000 120,948 Service Address DOUBLE MOUNTAIN RD IF YOU ARE 65 YEAF+S OF AGE OR OLDER OR ARE DISABLED AND THE PROPERTY DESCRIBED IN THIS DOCUMENT IS YOUR RESIDENCE HOMESTEAD, YOU SHOULD CONTAC r THE APPRAISAL DISTRICT REGARDING ANY ENTITLEMENT YOU MAY HAVE TO A POSTPONEMENT IN THE PAYMENT OF THESE TAXES Payment Due Before Date Payment Paid By 01/02/2023 737.50 CORELOGIC ,/ 07/10/2023 0.00 OCHOA JESUS JR Less Exemptions CORRECTION ROLL - # 3� TAX YEAR: 0.0,3 _ Rc -ko 1115aC , Jur No Stmt Date Delinquent Date Receipt No MD2 8/1/2023 2/1/2023 170 'Account No I 41380010460270 TAXES ARE DUE UPON RECEIPT. TAXES WILL BECOME DELINQUENT AFTER January 31, 2023. PAYMENT MUST BE POSTMARKED BEFORE DELINQUENT DATE TO AVOID ADDITIONAL PENALTIES AND INTEREST. Taxes that remain delinquent on July 01, 2023 will incur an additional penalty to defray costs of collection per Section 33.07,33.08 and/or 33.11 of the Texas Property Tax Code. Please contact the Appraisal District concerning any corrections in appraised value, ownership, address changes or any application for exemptions. Brazos County Appraisal District www.brazoscad.org 979-774-4100 Comparisons of the last six (6) tax years Year Taxable Rate Taxes % Change 12022 0.500000 604 74 367 70% 2021 0.500000 129.30 N/A1 N/A N/A N/A N/A1 Ali N/A N/A N/A N/AI i N/A N/A N/A N/AI { N/A N/A N/A N/AI Appraised 120,948 120,948 25,860 25,860 N/A N/A N/A N/A N/A N/A N/A N/A % Change between 2022 and 2021 367.70% I 367 70% I 0.00% I 367.70% Taxable Value Tax Rate Tax Levy 120,948 0.500000 per $100 604,74 Current Taxes Due 604.741 j 1 CAD Taxes Paid Penalties Paid P & I Paid Atty Fee Paid f 737.50 0.00 0.00 0.00 -132.76 0.00 0 00 0 00 Other Paid Total Payment 0.00 737.50 0 00 0 00 c',Vc. I'P.- 3 2022 Paid in Full Total Paid 737.50 2022 TAX RECEIPT ROCK PRAIRIE MANAGEMENT DISTRICT 2 AVIK BONNERJEE, TAX ASSESSOR/COLLECTOR 13333 NORTHWEST FREEWAY, SUITE 620 HOUSTON, TX 77040 Hours: MON - THU 8 - 4 FRI 8 - 12 Web: WWW.BAMUNITAX.COM Owner Name and Address SIEFERT RYAN DAVID 829 MINERAL WELLS IN COLLEGE STATION, TX 77845-2167 **RETURN SERVICE REQUESTED** Phone: 713-900-2680 Fax: 713-900-2685 Appraised Values Property Information Improvement HS 43,816 MIDTOWN RESERVE PH 105, BLOCK 5, LOT 14 Land HS 30,489 100% Assessed Value 74,305 Taxing Unit ROCK PRAIRIE MD NO. 2 Service Address MINERAL WELLS LN Disabled Vet HS IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND THE PROPERTY DESCRIBED IN THIS DOCUMENT IS YOUR. RESIDENCE HOMESTEAD, YOU SHOULD CONTACT THE APPRAISAL DISTRICT REGARDING ANY EN'i ITLEMENT YOU MAY HAVE TO A POSTPONEMENT IN THE PAYMENT OF THESE TAXES. Payment Date 03/29/2023 4 07/10/2023 Due Before Payme/it Paid By 404 96 Ryan Siefert 0.00, SIEFERT RYAN DAVID CORRECTION ROLL - # TAX YEAR: a41.01_011 Less Exemptions h c- f imik o 116.09 Jur No Stmt Date Delinquent Date Receipt No MD2 8/1/2023 2/1 /2023 192 Account No 41380010550140 TAXES ARE D E UPON RECEIPT. TAXES WILL BECOME DELINQUENT AFTER January 31, 2023. PAYMENT MUST BE POSTMARKED BEFORE DELINQUENT DATE TO AVOID ADDITIONAL PENALTIES AND INTEREST. Taxes that remain delinquent on July 01, 2023 will incur an additional penalty to defray costs of collection per Section 33.07,33.08 and/or 33.11 of the Texas Property Tax Code. Please contact the Appraisal District concerning any corrections in appraised value, ownership, address changes or any application for exemptions. Brazos County Appraisal District www.brazoscad.org 979-774-4100 Al 35,219 Year 2022 2021 N/A N/A N/A N/A Comparisons of the last six (6) tax years Appraised Taxable Rate Taxes 74,305 39,086 0.500000 195 43 26,952 26,952 0.500000 134 76 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A % Change between 2022 and 2021 175.69% I 45.02% I 0 00% 1 45 02% Taxable Value Tax Rate Tax Levy 39,086 0.500000 per $100 195.43 CAD Taxes Paid Penalties Paid 371.52 0.00 -176.09 0 00 % Change 45 02% N/A N/A N/A N/A N/A Current Taxes Duel 195.43 Other P & I Paid Atty Fee Paid Paid Total Payment 33.44 0.00 0 00 404 96 0 00 0 00 0 00 0 00 .40 2022 Paid in Full Total Paid 404.96 2022 TAX RECEIPT ROCK PRAIRIE MANAGEMENT DISTRICT 2 AVIK BONNERJEE, TAX ASSESSOR/COLLECTOR 13333 NORTHWEST FREEWAY, SUITE 620 HOUSTON, TX 77040 Hours: MON - THU 8 - 4 FRI 8 - 12 Web: WWW.BAMUNITAX.COM Owner Name and Address PATTERSON YOLANDA 1242 AMISTAD LP COLLEGE STATION, TX 77845-2722 **RETURN SERVICE REQUESTED** Phone: 713-900-2680 Fax: 713-900-2685 Jur No Stmt Date Delinquent Date Receipt No I MD2 8/1/2023 2/1/2023 322 'Account No 1 41380021230050 TAXES ARE DUE UPON RECEIPT. TAXES WILL BECOME DELINQUENT AFTER January 31, 2023. PAYMENT MUST BE POSTMARKED BEFORE DELINQUENT DATE TO AVOID ADDITIONAL PENALTIES AND INTEREST. Taxes that remain delinquent on July 01, 2023 will incur an additional penalty to defray costs of collection per Section 33.07,33.08 and/or 33.11 of the Texas Property Tax Code. Please contact the Appraisal District concerning any corrections in appraised value, ownership, address changes or any application for exemptions. Brazos County Appraisal District www.brazoscad.org 979-774-4100 Appraised Values Property Information Comparisons of the last six (6) tax years Improvement HS 23,435 MIDTOWN RESERVE PH 201, BLOCK 23, LOT 5 Year Appraised Taxable Rate Taxes % Change Land HS 30,489 2022 53,924 38,559 0.500000 192.80 49 11% 2021 25,860 25,860 0.500000 129 30 N/A N/A N/A N/A N/A N/A N/A Al N/A N/A N/A N/A N/A N/A Service Address N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A AMISTAD LOOP 100% Assessed Value 53,924 Taxing Unit Less Exemptions ROCK PRAIRIE MD NO. 2 Disabled Vet HS 15,365 IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND THE PROPERTY DESCRIBED IN THIS DOCUMENT IS YOUR RESIDENCE HOMESTEAD, YOU SHOULD CONTACT THE APPRAISAL DISTRICT REGARDING ANY ENTITLEMENT YOU MAY HAVE TO A POSTPONEMENT IN THE PAYMENT OF THESE TAXES % Change between 2022 and 2021 108.52% I 49.11 % I 0 00% I 49 11% Taxable Value Tax Rate Tax Levy 38,559 0.500000 per$100 192.80 Current Taxes Due 192.80 Payment Due Before CAD Other Date Payment Paid By _ Taxes Paid Penalties Paid P & I Paid Atty Fee Paid Paid Total Payment 01/02/2023 269 62 CORELOGIC 269.62 0 00 0 00 0 00 0.00 269.62 f 07/10/2023 0 00 PATTERSON YOLANDA 1 -76 82 0.00 0 00 0 00 0 00 0.00 CORRECTION ROLL - # 30 TAX YEAR: abaa e-PctIA f(o g.a(. G13 c h2 5 2022 Paid in Full Total Paid 269.62 MUNICIPAL TAX SERVICE, LLC Bill To Rock Prairie Management District No. 2 13333 Northwest Freeway Suite 620 Houston TX 77040 Invoice Date Invoice # 8/1/2023 MD2-193 Description Unit Count Rate Amount Avik Bonnerjee, RTA - Tax Assessor Collector Fee August 817.70 817.70 2023. 2022 Additional Unit Count Invoiced 2023 8 0.90 7.20 Thank you for your business. Total $824.90 S.ol-,.3 cK. i axo 13333 Northwest Freeway, Suite 620 • Houston, TX 77040 • PH:713-900-2680 • www.bamunitax.com MUNICIPAL TAX SERVICE, LLC Bill To Rock Prairie Management District No. 2 13333 Northwest Freeway Suite 620 Houston TX 77040 Date I8/1/2023 Invoice Invoice # MD2-194 Description Unit Count Rate Amount Copies Postage, Mailing, and Handling (1) Roll Update & Processing - June Rolls 2023 Records Retention Preparation of Delq. Atty. Electronic Files Audit FYE May 31, 2023 Thank you for your business. 496 2.75 0.20 0.85 75.00 1.64 15.00 175.00 99.20 0.85 206.25 1.64 15.00 175.00 Total $497.94 T..0i d)c �aa� 13333 Northwest Freeway, Suite 620 111 Houston, TX 77040 • PH:713-900-2680 w www.bamunitax.com MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE MONTH ENDING AUGUST 31, 2023 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 1 Total Outstanding Balance MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 8/31/23 RECEIVABLES SUMMARY 2022 Balance Forward Levy at 05/31/23 FYE CAD Changes / Uncollectible $13,228.60 $219.07 13,447.67 Outstanding Balance forward Prior Years (2021-2010) at 05/31/23 FYE $0.00 $0.00 0.00 13,447.67 CAD Changes / Uncollectible Total Levy to be collected Collection prior months (all years) ($4,042.90) 2022 Taxes Collected net NSF & KR Refunds during current month ($5,043.07) Taxes Collected for Prior Years net NSF & KR Refunds $0.00 (9,085.97) 4,361.70 TAX ACCOUNT Beginning Balance — Tax Account 24,069.93 Income Taxes Collected Current Year $5,043.07 Taxes Collected Prior Year $0.00 10% Rendition Penalty $0.00 Penalties & Interest $432.79 Collection Fee Paid $888.45 Overpayments $0.00 NSF or Reversals, Bank Charges $0.00 Other Fees & Court Costs, Etc $0.00 CCI Overpayment $0.00 Earned Interest $0.00 $6,364.31 Expenses CK# 1196 Brazos CAD - 2023 4th Qtr Assessment Invoice (Reporting Only) CK# 1228 Rock Prairie Management Distrct 2 - Operating CK# 1229 Perdue Brandon Fielder Collins & Mott- Delq Atty Coll (8/2023) CK# 1230 B&A Municipal Tax Service, LLC - Invoice MD2-196 CK# 1231 B&A Municipal Tax Service, LLC - Invoice MD2-197 30,434.24 $812.75 $1,210.34 $888.45 $824.90 $824.68 $4,561.12 Ending Balance —Tax Account 25,873.12 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 2 MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 8/31/23 OUTSTANDING TAXES - YEAR TO DATE BALANCE FORWARD CAD TAX @ SUPPLEMENTS & YEAR 10/01/22 CORRECTIONS UNCOLLECTIBLE 2022 $366,474.63 ($2,531.30) $0.00 2021 $216,956.04 $0.00 $0.00 2020 $117,666.69 $0.00 $0.00 2019 $73,299.93 $0.00 $0.00 2018 $49,461.25 $0.00 $0.00 2017 $19,962.78 $0.00 $0.00 EXEMPTIONS & TAX RATES TAX YEAR 2022 2021 2020 2019 2018 2017 HOMESTEAD EXEMPTION 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% DISTRICT VALUES TAX LAND & YEAR IMPROVEMENTS 2022 74,235,602 2021 43,412,055 2020 22,941,412 2019 14,898,546 2018 9,881,920 2017 4,069,643 OVER 65 / DISABLED 0 0 0 0 0 0 AG NET 8,296 8,675 7,123 14,370 28,690 27,010 COLLECTIONS $359,581.63 $216,956.04 $117,666.69 $73,299.93 $49,461.25 $19,962.78 DEBT SERVICE M & O RATE RATE 0.12000 0.00000 0.17000 0.00000 0.50000 0.00000 0.50000 0.00000 0.50000 0.00000 0.50000 0.00000 PERSONAL PROPERTY 120,621 608,274 617,829 909,670 309,850 0 EXEMPTIONS 1,575,865 637,793 33,002 1,162,600 328,210 104,096 OUTSTANDING TAXES $4,361.70 $0.00 $0.00 $0.00 $0.00 $0.00 $4,361.70 ROAD BOND DEBT RATE 0.38000 0.33000 0.00000 0.00000 0.00000 0.00000 TOTAL VALUE 72,788,654 43,391,211 23,533,362 14,659,986 9,892,250 3,992,557 COLLECTIONS PERCENTAGE 98.80% 100.00% 100.00% 100.00% 100.00% 100.00% TOTAL RATE 0.50000 0.50000 0.50000 0.50000 0.50000 0.50000 SR KR 37 37 65 65 85 85 99 99 105 105 101 101 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 3 MUNICIPAL TAX SERVICE,LLC BEGINNING BALANCE INCOME ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 8/31/23 10% Rendition Penalty PROFIT & LOSS CURRENT MONTH 08/01/23 - 08/31/23 25,929.71 FISCAL YEAR 6/01/23 - 8/31/23 46,650.66 0.00 0.00 Collection Fee Earned Interest Overpayments Penalty & Interest 888.45 924.93 0.00 0.00 0.00 0.00 432.79 915.49 Rollback Tax Collected - 0.00 0.00 Taxes Collected 5,043.07 9,471.64 Total Income 6,364.31 11,312.06 EXPENSES Audit/Records Bank Charges Bond Premium CAD Fees Certificate of Value Copies Correction Roll Refunds Correction Roll Rendition Refunds Continuing Disclosure Court Affidavits Delinquent Tax Attorney Assistance Delinquent Tax Attorney Fee Estimate of Value Financial Advisor Assistance Unclaimed Property Report Legal Notices Mailing & Handling Meeting Travel & Mileage NSF, Reversals, Stop Pay Overpayment Refund Public Hearing Records Retention Research Roll Update & Processing Senate Bill 2 to CAD (5 Yr History) Supplies Tax Assessor Collector Fee - AB Transfer to Rollback Collected Transfer to Maintenance & Operating Transfer to Road Debt Service ENDING BALANCE 175.00 0.00 0.00 0.00 0.00 99.20 385.67 0.00 0.00 0.00 15.00 36.48 0.00 0.00 0.00 0.00 0.85 0.00 0.00 0.00 0.00 1.64 0.00 206.25 0.00 0.00 824.90 0.00 114.79 0.00 1,859.78 19,4;4.24 175.00 0.00 50.00 812.75 0.00 243.20 385.67 0.00 0.00 0.00 45.00 36.48 0.00 0.00 0.00 0.00 50.64 520.08 0.00 0.00 0.00 8.90 0.00 225.00 0.00 104.01 2,474.70 0.00 2,397.05 20, 000.00 27,528.48 30.434.24 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 4 MUNICIPAL TAX SERVICE,LLC. ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 8/31/23 October November December January February March 2022 $19,553.67 $25,643.23 YEAR TO YEAR COMPARISON 2021 5 34% $0.00 12.33% $27,879.54 $50,710.36 $221,635.93 $10,057.86 $5,972.86 April 1 $10,976.90 May June July August September 20221 $5,043.07 $5,944.85 $3,564.60 $863.97 $5,043.07 26.17% $47,161.03 86.66% $96,284.05 90.07% $32,143.07 91.71% $1,284.59 94.73% $0.00 96.36% 97.34% 91.42% 98.80% 0.00% 12.87% 34.64% 79.10% VARIANCE 5.34% - 0.54% - 8.47% 7.56 I 93.94%1 -3.87% 94.53% -2.82% 94.53% 0.20% $9,110.62 98.56% -2.20% $25.55 98.57% $1,447.70 { 99.24% $1,497.71 99.93% $0.00 99.93% MONTHLY COLLECTIONS 20211 2019 $0.00 $0.00 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 5 MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MGT DIST NO. 2 FOR THE PERIOD ENDING 08/23/2023 PLEDGED SECURITIES REPORT SECURITES PLEDGED AT 105% OVER FDIC INSURED $250,000 COLLATERAL SECURITY AGREEMENT ON FILE : YES TAX BANK ACCOUNT HELD AT: WELLS FARGO / BANK OF NEW YORK MELLON COLLATERAL SECURITY REQUIRED: NO TYPE OF PLEDGED INVESTMENT: IN COMPLIANCE W/ DISTRICT INVESTMENT POLICY: YES B A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY SUITE 620 HOUSTON, TX 77040 MAIN 713-900-2680 FAX 713-900-2685 PS STATE OF TEXAS § COUNTY OF BRAZOS § Avik Bonnerjee, being duly sworn, says that he is the Tax Assessor -Collector for the above named District and the foregoing contains a true and correct report accounting for all taxes collected for said District during the month therein stated. Avik Bonnerjee, RTA SWORN TO AND SUBSCRIBED BEFORE ME, this 1st day of September 2023. REBECCA LYNN BREWER t' ( -\11 Notary ID #1258819 p.� 1.;_ My Commission Expires fJ� March 1 . 2024 6-v Rebecca Lynn Brewer Notary Public, State of Texas Notary ID #1258819 My Commission Expires March 1, 2024 BRAZOS CENTRAL APPRAISAL BISTRO BRAZOS COUNTY, TEXAS 4051 PENDLETON DR BRYAN, TX 77802-2465 • Mr, Avik Bonnerjee Registered Texas Assessor Collector B&A Municipal Tax Service LLC 13333 Northwest Freeway, Suite 620 Houston, TX 77040 November 21, 2022 STATEMENT Dana Horton Chief Appraiser Phone (979) 774-4100 Fax (979) 774-4196 ROCK PRAIRIE MGMT DIST #2 Below are the quarterly payment amounts and due dates for the 2023 Brazos Central Appraisal District Operating Budget, as mandated by State Law, Section 6,06 State Property Tax Code states: "Unless the governing body of a unit and the chief appraiser agree to a different method of payment, each taxing unit shall pay its allocation in four equal payments to be made at the end of each calendar quarter, and the first payment shall be made before January 1 of the year in which the budget takes effect. A payment is delinquent if not paid on the date it is due. A delinquent payment incurs a penalty of 5 percent of the amount of the payment and accrues interest at an annual rate of 10 percent, If the budget is amended, any change in the amount of a unit's allocation is apportioned among the payments remaining- " 1st Quarter due by December 31, 2022 2nd Quarter clue by March 31, 2023 3rd Quarter due by June 30, 2023 4th Quarter due by September 30, 2023 Total Allocation $812.75 $812.75 $812.75 $812.75 $3,251.00 v, Pd_ q,p1,5 119140 � �J ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 8/31/23 MUNICIPAL TAX SERVICE,LLC TAX YEAR M & O RATE PERCENTAGE 20221 0.120000 24.00% 2021 0.170000 34.00% 2020 0.500000 100% 2019 0.500000 100% 2018 0.500000 100% 2017 0.500000 100% DATE: 9.01.23 PAIDCHECK# MAINTENANCE & OPERATING LESS PENALTIES & CORRECTION COLLECTIONS INTEREST ROLLS LESS REVERSALS $5,043.07 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 ,I TRANSFER $1,210.34 $0.00 $0.00 $0.00 $0.00 $0.00 LESS $0.- 0.00 j $0.00 $1,210.34 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 505 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 1 Jurisdiction: MD2 ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 Deposits Report For Dates 8/1/2023 thru 8/31/2023 Page 1 8/31/2023 4:35 PM Bank WELLS FARGO BANK GL Account Summary Taxes Paid P&I Paid Coll Fee Paid Deposit Date Deposit No Ck/Cash CC WACH Deposit Amount 8/14/2023 2023061 1 0 0 1,801.53 8/22/2023 2023062 0 0 1 1,835.78 8/22/2023 2023063 0 0 1 466.10 8/28/2023 2023064 1 0 0 357.00 8/30/2023 2023065 1 0 0 593.81 8/30/2023 2023066 1 0 0 1,310.09 Total Deposits 6 4 0 2 6,364 31 2022 Total Report 5,043.07 5,043.07 432.79 432.79 888.45 888.45 6,364.31 6,364.31 �a3F'cw w1 q.0(-? 5 Iaa9 Report Prepared by B&A Municipal Tax www.bamunitax.com MUNICIPAL TAX SERVICE, LLC Bill To Rock Prairie Management District No. 2 13333 Northwest Freeway Suite 620 Houston TX 77040 Invoice Date Invoice # 9/1/2023 MD2-196 Description Unit Count Rate Amount Avik Bonnerjee, RTA - Tax Assessor Collector Fee 817.70 817.70 September 2023. 2022 Additional Unit Count Invoiced 2023 8 0.90 7.20 Thank you for your business. Total $824.90 Pd 4. ot •P-3 CK-- la-3-D 13333 Northwest Freeway, Suite 620 ■ Houston, TX 77040 a PH:713-900-2680 a www.bamunitax.com MUNICIPAL TAX SERVICE, LLC Bill To Rock Prairie Management District No. 2 13333 Northwest Freeway Suite 620 Houston TX 77040 Invoice Date Invoice # 9/1/2023 MD2-197 Description Unit Count Rate Amount Copies Records Retention Preparation of Delq. Atty. Electronic Files Meeting Travel Time/Mileage/Time (July 2023) Estimate of Value as of August 1, 2023 Thank you for your business. 340 0.20 1.64 15.00 290.04 450.00 68.00 1.64 15.00 290.04 450.00 Total $824.68 '491 •a3 ag. 1a5/. 13333 Northwest Freeway, Suite 620 • Houston, TX 77040 • PH:713-900-2680 ■ www.bamunitax.com EXHIBIT "G" EHRA ENGINEERING THE FUTURE SINCE 1938 ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 ENGINEERING REPORT SEPTEMBER 2023 11. Engineering Report, including: TBPE No. F-726 TBPLS No. 10092300 a. Authorize the design and/or advertisement of bids for construction of facilities within the District and approval of related storm water plans, including: 1. Status of design of Preliminary Plan for Midtown City Center, Phase 406A & 406B The Design Engineer is the design phase for construction documents. 2. Advertisement of Midtown City Center, Phase 111 The Project is being advertised for bids on September 9th and 16th with bids to be opened on September 20, 2023. Board Action: None. b. Authorize the award of/or concurrence in award of contracts for the construction of facilities within the District, authorizing acceptance of Texas Ethics Commissions ('TEC") Form 1295, and approval of any storm water permits. Board Action: None. c. Status of construction of facilities to serve land within the District, including the approval of any pay estimates and change orders and authorize acceptance of TEC Form 1295, including: 1. Midtown Subdivision, Phase 109 and 112 by Greens Prairie Investors, Ltd. Contractor: Greens Prairie Investors, Ltd. Contract Time: 150 Days Pay Request No. Five is attached in the amount of $536,278.95. Board Action: Approve Pay Request EHRA Engineering 1 10011 Meadowglen Lane I Houston, Texas 77042 I t 713.784.4500 I 1713.784.4577 L_tZ1hG vISiLstr3 , OES+ Rock Prairie Management District No. 2 September 2023 Page 2 2. Midtown City Center, Phase 404A by Terra Bella Construction, LLC. No additional Pay Requests have been received for processing. The project was approximately 85% completed as of the last Pay Estimate. There was a long lead time for street lights but they are currently under construction. Board Action: None d. Acceptance of site and/or easement conveyances for facilities to be constructed for the District and acceptance of facilities for operation and maintenance purposes. Board Action: None e. Status of acceptance by the City of College Station, Texas for maintenance of streets. Board Action: None. ,„.......„ EHRA ‘...., EHRA Engineering 1 10011 Meadowglen Lane 'Houston, Texas 77042 1 t 713.784.4500 1 f 713.784.4577 ENGINEERING THE FUTURE SINCE 1936 INVITATION TO BID Sealed bids, in duplicate will be received by College Station Downtown Residential, on behalf of Rock Prairie Management District No. 2, at the office of Schultz Engineering at 911 Southwest Parkway East, College Station, Texas 77840 until 2:00 p.m. Wednesday, September 27, 2023, at which time all bids will be publicly opened and read for the construction of the project: ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 MIDTOWN CITY CENTER SUBDIVISION PHASE 111 PROJECT NO: 151-068-15 CPS A Mandatory Pre -Bid Conference will be held on Wednesday, September 20, 2023, at 2:00 p.m. at the office of Schultz Engineering at 911 Southwest Parkway East, College Station, Texas 77840. Project scope shall include the installation of approximately 405 LF of 4"-8" PVC water line; 310 LF of 18"- 24" RCP and HDPE storm sewer; and 2,020 SY of 6" reinforced concrete pavement. The project is located in College Station, Texas. The above described construction will be performed in accordance with plans and specifications and any addenda thereto which may be issued prior to the opening of bids. Plans, specifications and bid documents may be viewed and downloaded free of charge or the option to purchase hard copies on the CivCastUSA Website (www.CivCastUSA.com). Documents are also available for review at the office of the Engineer or Houston area plan rooms. Each Bid must be accompanied by a Certified or Cashier's Check, from a responsible bank in the State of Texas, or a Bid Bond, issued by a surety legally authorized to do business in the State of Texas, equal to five percent (5%) of the total bid amount. Make the Cashier's Check, Certified Check or Bid Bond payable to the Owner. The Owner reserves the right to reject any or all bids or to accept any bid deemed advantageous to it and waive informalities in bidding. All bids received after the closing time above designated will be returned unopened. DATES ADVERTISED: 09/09/2023 & 09/16/2023 EHRA FNpA Fnainaarino 1 1lf111 hbarinwolan I aria I Nnnctnn TPYaC 77f1d7 I t 717 7Ad dSflf I f 717 7Rd d577 ENGINEERING Mk FI.mjr EHRA TBPE No. F-726 Construction Progress Report and Pay Request No. Five Date: September 6, 2023 Owner: College Station Downtown Residential, LLC 1140 Midtown Drive College Station, Texas 77845 Notice to Proceed Date: Contract Days: Percent Project Complete: February 1, 2023 Project No.: 151-068-14 CPS Project: Rock Prairie Management District No. 2 Midtown Reserve Subdivision Phase 109 & 112 Contractor: Greens Prairie Investors, Ltd. 1140 Midtown Drive College Station, TX 77845 Original Contract Amount: Contract Quantity Adjustment No. 1: Change Order No. 1: Contract Quantity Adjustment No. 2: 150 Total Contract Amount To Date: 98% Total Amount In Place To Date: Less 10% Retainage: Balance: Less Previous Payments: Total Amount Due this Report: $2,192,937.50 ($65,320.00) 812,000.00 $8,160.00 $2,147,777.50 $2,105,097.50 ($210,509.75) $1,894,587.75 ($1,358,299.80) $536,287.95 Enclosed is a copy of the Contractor's Affidavit of Bills Paid and a copy of the Contractor's Waiver and Lien Release Upon Partial Payment in the amount of this Construction Progress Report No. Five An EHRA Representative has conducted an on -site inspection to verify that all quantities have been installed and approved. Recommended For Approval: EDMINSTER, HINSHAW, RUSS & ASSOCIATES, INC. d/b/a EHRA Jarou 4. Keel" Jason Keeling Senior Construction Project Manager Please Remit Payment To: Greens Prairie Investors, Ltd. 1140 Midtown Drive College Station, TX 77845 Date: 09 / 06 / 2023 Rokne-4 kucrou Robert D. Atkinson, Jr., P.E. Practice Area Leader - District Services CC: 09 / 07 / 2023 Date: Rock Prairie Management District No. 2 c/o Schwartz, Page & Harding, LLP Texas Commission on Environmental Quality - Reg 12 P:\151-068-14\CPS\Midtown Ph 109 & 112\Pay Request \Pay Request No. 05\Greens Prairie - Pay Regest No. 05 Document R.F. OOABR-DPPRF-U5WCC-3NWHY Page 1 of