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Home My WebLink About10/18/2021 - Regular Minutes - Rock Prairie Management District No. 2ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 MINUTES OF SPECIAL PUBLIC MEETING OF BOARD OF DIRECTORS October 18, 2021 The Board of Directors (the "Board") of Rock Prairie Management District No. 2 (the "District") met in special session, open to the public on October 18, 2021, 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 Glover, thus constituting a quorum. Also present were James Murr of College Station Town Center, Inc. ("CSTC"); Cynthia Colondres of Municipal Accounts & Consulting, L.P. ("MAC"); Joshua Campbell of EHRA Engineering ("EHRA"); Avik Bonnerjee of B&A Municipal Tax Service, LLC ("B&A"); Stacey Vasquez of the City of College Station ("City"); John Nichols, City Council Member; Brian Krueger of BKD LLP ("BKD") and Christina Cole of Schwartz, Page & Harding, L.L.P. ("SPH"). The President called the meeting to order and declared same open for such business as might properly come before it. PUBLIC COMMENTS The Board began by opening the meeting for public comments. There being no members of the public present, the Board continued to the next item of business. APPROVAL OF MINUTES The Board next considered approval of the minutes of its regular meeting held on August 12, 2021. After review and discussion, Director Geva moved that the minutes for said Board meeting be approved, as written. Director Lindemulder seconded said motion, which unanimously carried. BOOKKEEPING REPORT Ms. Colondres presented to and reviewed with the Board a Bookkeeping Report, a copy of which report is attached hereto as Exhibit A, including checks presented therein for payment. Ms. Colondres also presented and reviewed with the Board a Quarterly Investment Report prepared by MAC for the reporting period ended August 31, 2021, a copy of which is attached to the Bookkeeping Report (Exhibit A). Following review and discussion, Director Geva moved that the (i) Bookkeeping Report be approved and that the checks presented be approved for payment, and (ii) Quarterly Investment Report be approved and the District's Investment Officer be authorized to execute same on behalf of the District. Director Lindemulder seconded the motion, which unanimously carried. TAX ASSESSOR/COLLECTOR'S REPORT Mr. Bonnerjee then presented to and reviewed with the Board the Tax Assessor -Collector Reports for the months ended August 31, 2021, and September 30, 2021, including checks presented therein for payment. Copies of such reports are attached hereto as Exhibit B. After discussion, Director Geva moved that the Tax Assessor -Collector Reports be approved and that the checks identified therein be approved for payment. Director Lindemulder seconded said motion, which unanimously carried. PUBLIC HEARING REGARDING ADOPTION OF THE DISTRICTS 2021 TAX RATE AND, LEVY OF THE DISTRICT'S 2021 TAX RATE AND ADOPTION OF AN ORDER IN CONNECTION THEREWITH The Board conducted a hearing regarding the imposition of proposed debt service and maintenance tax rates for 2021. Mr. Bonnerjee confirmed that notice of this hearing was duly published in The Eagle, as provided by law. It was noted that no taxpayers appeared at the hearing. Upon motion by Director Geva, seconded by Director Lindemulder and unanimously carried, the hearing was closed. The Board then discussed the setting of the 2021 tax rate. After discussion on the matter, Director Geva moved that: (i) the Board adopt the tax rate as proposed at the District's August 12, 2021, meeting and as reflected in the notice published by B&A; (ii) the Board levy a 2021 debt service tax rate of $0.33 per $100 of valuation, and a 2021 maintenance tax rate of $0.17 per $100 of valuation, resulting in a total 2021 tax rate of $0.50 per $100 of valuation; (iii) the Order Levying Taxes attached hereto as Exhibit C be adopted in connection therewith and that the President be authorized to execute and the Secretary to attest same on behalf of the Board and the District, and (iv) SPH be authorized to provide the City of College Station, Texas, with notice of the adoption of such tax rate in accordance with the City's ordinance consenting to the creation of the District. Director Lindemulder seconded said motion, which carried unanimously. AMENDMENT TO THE FIRST AMENDED AND RESTATED DISTRICT INFORMATION FORM RELATIVE TO THE DISTRICT'S 2021 TAX RATE Ms. Cole presented and discussed with the Board an Amendment to the First Amended and Restated District Information Form relative to the District's 2021 tax rate. After discussion regarding said Form, Director Geva moved that the Amendment to the First Amended and Restated District Information Form be approved and that the Board members present be authorized to 2 608317 execute same on behalf of the Board and the District. Director Lindemulder seconded said motion, which carried unanimously. APPROVE AUDIT REPORT Mr. Krueger next reviewed with the Board a draft of the District's audit report for the fiscal year ended May 31, 2021, a copy of which is attached hereto as Exhibit D. After discussion concerning the audit presented, Director Geva moved that the audit report for the fiscal year ended May 31, 2021, be approved, subject to final review and comment by SPH. Director Lindemulder seconded said motion, which unanimously carried. In connection with the District's audit, Mr. Krueger presented the Board with a draft Management Letter prepared by BKD, concerning the Board's internal controls over financial reporting (the "Management Letter"), a copy of which is attached hereto as Exhibit E. 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 Geva, 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. STATUS OF CONTINUING DISCLOSURE REPORT Ms. Cole presented the Continuing Disclosure Report ("Report") for the fiscal year ended May 31, 2021, 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 Geva moved that McCall be authorized to file the Report, upon receipt of the District's final audit report for fiscal year ended May 31, 2021. Director Lindemulder seconded the motion which carried by unanimous vote. ENGINEERING REPORT Mr. Campbell presented to and reviewed with the Board an Engineering Report dated October 2021, a copy of which is attached hereto as Exhibit F. Following such presentation, Director Geva moved to (i) authorize EHRA to advertise for bids for the Midtown City Center Utility Extension project, and (ii) accept and authorize the President to execute the Special Warranty Deed from College Station Town Center, Inc., relative to various recreational sites within the District, subject to receipt of title commitment and all lienholder releases. Director Lindemulder seconded the motion, which unanimously carried. DEVELOPER'S REPORT The Board considered the Developer's Report. Mr. Murr presented a verbal report on the status of development within the District. 3 608317 ATTORNEY'S REPORT Ms. Cole next advised that SPH will be relocating its offices in November 2021, and therefore, it is recommended that the Board adopt an Order Establishing Office Outside the District to establish 1300 Post Oak Boulevard, Suite 2400, Houston, Texas 77056 as the office of the District. Following discussion, Director Geva moved that (i) the Order Establishing Office Outside the District attached hereto as Exhibit G, be adopted, (ii) the President and Secretary be authorized to execute same on behalf of the Board and the District, and (iii) the appropriate filing of same be made by SPH. Director Lindemulder seconded said motion, which unanimously carried. FUTURE AGENDA ITEMS The Board considered items for placement on future agendas. No specific agenda items, other than routine and ongoing matters were requested to be placed on a future agenda. ADJOURNMENT There being no further business to come before the Board, on motion made by Director Geva seconded by Director Lindemulder, and unanimously carried, the meeting was adjourned. 4 608317 LIST OF ATTACHMENTS Rock Prairie Management District No. 2 Minutes of Meeting of October 18, 2021 Exhibit A Bookkeeping Report Exhibit B Tax Assessor -Collector Reports Exhibit C Order Levying Taxes Exhibit D Draft Audit Report for Fiscal Year ended May 31, 2021 Exhibit E Draft Management Letter from BKD, LLP Exhibit F Engineering Report Exhibit G Order Establishing Office Outside the District 5 608317 EXHIBIT "A" 17011 MUNICIPAL ACCOUNTS CONSULTING, LP Rock Prairie Management District No. 2 Bookkeeper's Report October 18, 2021 1281 Brittmoore Road • Houston, Texas 77043 • Phone: 713.623.4539 • Fax: 713.629.6859 Num Rock Prairie MD No. 2 - GOF Cash Flow Report - BBVA Checking Account As of October 18, 2021 Name Memo Amount Balance BALANCE AS OF 08/13/2021 $29,373.89 I Receipts Maintenance Tax Collections Total Receipts 5,000.00 Disbursements Wire BBVA USA Transfer to Central Bank (34,373.89) Total Disbursements 5,000.00 (34,373.89) BALANCE AS OF 10/18/2021 $0.00 BBVA USA -PREMIER - #XXXX0276 2 Num BALANCE AS OF 08/13/2021 Receipts Name Rock Prairie MD No. 2 - GOF Cash Flow Report - Checking Account As of October 18, 2021 Memo Amount Balance $0.00 Transfer from BBVA 34,373.89 Total Receipts 34,373.89 Disbursements 2000 B&A Municipal Tax Service SB 2 Compliance - 2 Months (500.00) 2001 BKD, L.L.P. Auditing Fees (10,800.00) 2002 EHRA Engineering Engineering Fees - 2 Months (1,235.74) 2003 Municipal Accounts & Consulting, LP Bookkeeping Fees - 2 Months (3,928.43) 2004 Schwartz, Page & Harding, L.L.P. Legal Fees - 2 Months (8,846.79) Total Disbursements (25,310.96) BALANCE AS OF 10/18/2021 $9,062.93 CENTRAL BANK - CHECKING - #00Of6508 3 Num Rock Prairie MD No. 2 - CPF Cash Flow Report - BBVA Checking Account As of October 18, 2021 Name Memo Amount Balance BALANCE AS OF 08/13/2021 $100.00 Receipts No Receipts Activity Total Receipts 0.00 Disbursements Wire BBVA USA Transfer to Central Bank (100.00) Total Disbursements 0.00 (100.00) BALANCE AS OF 10/18/2021 $0.00 BBVA USA -CHECKING - #XXXX7782 4 Rock Prairie MD No. 2 - CPF Num BALANCE AS OF 08/13/2021 Receipts Transfer from BBVA Transfer from Money Market Total Receipts Name Cash Flow Report - Checking Account As of October 18, 2021 Memo Amount Balance 100.00 481.55 Disbursements 2000 Municipal Accounts & Consulting L.P. Update CPF Analysis (358.75) 2001 Schwartz, Page & Harding, L.L.P. Legal Fees - 2 Months (122.80) Total Disbursements $0.00 581.55 (481.55) BALANCE AS OF 10/18/2021 $100.00 CENTRAL BANK - CHECKING - #100006486 5 Financial Institution (Acct Number) Fund: Operating Checking Account(s) BBVA USA -PREMIER (X)DX0276) CENTRAL BANK - CHECKING (XXXX6508) Fund: Capital Projects Money Market Funds TEXAS CLASS (X>=0002) Checking Account(s) BBVA USA -CHECKING (XXXX7782) CENTRAL BANK - CHECKING (XXXX6486) Fund: Debt Service Money Market Funds BBVA USA -DEBT (XXXX8126) TEXAS CLASS (X0001) Rock Prairie Management District No. 2 Account Balances As of October 18, 2021 Issue Maturity Interest Date Date Rate 0.00 0.00 Totals for Operating Fund: 04/06/2021 0.05 0.00 0.00 Totals for Capital Projects Fund: 01/15/2021 04/06/2021 Account Balance 0.00 BBVA Checking 9,062.93 Checking Account $9,062.93 78,935.75 2021 Road 0.00 BBVA Checking 100.00 Checking Account $79,035.75 0.00 % 500.00 Road 0.05 % 38,475.97 Road Totals for Debt Service Fund: $38,975.97 Grand total for Rock Prairie Management District No. 2: $127,074.65 Notes Rock Prairie MD No. 2 Capital Projects Fund Breakdown 10/18/2021 Net Proceeds for All Bond Issues Receints Series 2021 Road - Bond Proceeds Series 2021 Road - Interest Earnings Disbursements Series 2021 Road - Disbursements (Attached) Total Cash Balance Balances by Account Checking - Central Bank (6486) Series 2021 Road - TX Class (0002) Total Cash Balance Balances bar Bond Series Series 2021 Road - Bond Proceeds Total Cash Balance $2,500,000.00 18.56 (2,420,982.81) $79,035.75 $100.00 78,935.75 $79,035.75 $79,035.75 $79,035.75 Remaining Costs/Surplus Bv Bond Series Series 2021 Road - Surplus & Interest Balance Total Remaining Costs/Surplus $79,035.75 $79,035.75 7 Rock Prairie MD No. 2 - GOF Actual vs. Budget Comparison September 2021 Actual September 2021 June 2021- September 2021 Annual Budget Over/(Under) Actual Budget Over/(Under) Budget Revenues 14100 Developer Advance 0 0 0 0 0 0 19,207 14350 Maintenance Tax Collections 0 0 0 5,000 5,000 0 115,323 14380 Interest Earned on Checking 0 4 (4) 0 15 (15) 45 Total Revenues 0 4 (4) 5,000 5,015 (15) 134,575 Expenditures 16330 Legal Fees 4,102 5,000 (899) 19,652 20,000 (348) 60,000 16340 Auditing Fees 10,800 10,800 0 10,800 10,800 0 11,800 16350 Engineering Fees 0 2,500 (2,500) 3,278 10,000 (6,722) 30,000 16430 Bookkeeping Fees 1,916 1,750 166 9,494 7,000 2,494 21,000 16450 Legal Notices & Other Publ. 0 0 0 0 0 0 1,000 16455 SB 2 Expenses 250 250 0 1,000 1,000 0 3,000 16460 Printing & Office Supplies 101 75 26 427 300 127 900 16470 Filing Fees 0 46 (46) 1,251 183 1,068 550 16480 Delivery Expense 62 42 20 574 167 408 500 16520 Postage 2 4 (2) 15 17 (1) 50 16530 Insurance & Surety Bond 0 0 0 0 0 0 3,800 16540 Travel Expense 0 108 (108) 0 433 (433) 1,300 16560 Miscellaneous Expense 10 56 (46) 55 225 (170) 675 Total Expenditures 17,243 20,631 (3,388) 46,547 50,125 (3,578) 134,575 Excess Revenues (Expenditures) ($17 243) (520,628) $3,385 ($41,547) (S45,110) $3,563 �0 8 Rock Prairie MD No. 2 - GOF Balance Sheet As of September 30, 2021 ASSETS Current Assets Checking/Savings 11100 • BBVA Checking Sep 30,21 34,374 Total Checking/Savings 34,374 Other Current Assets 11520 • Maintenance Tax Receivable 848 11750 • Due From Tax Account (8,171) Total Other Current Assets Total Current Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 12000 • Accounts Payable Total Accounts Payable Other Current Liabilities 12800 • Deferred Inflows Total Other Current Liabilities Total Current Liabilities Total Liabilities Equity 13010 • Unallocated Fund Balance Net Income (7,323) 27,051 27,051 25,061 25,061 848 848 25,909 25,909 42,689 (41,547) Total Equity 1,142 TOTAL LIABILITIES & EQUITY 27,051 9 Paying Agent Rock Prairie Management District No. 2 District Debt Service Payments 10/01/2021 - 10/01/2022 Series Date Due Date Paid Principal Interest Total Due Debt Service Payment Due 03/01/2022 Bank of New York 2021 - Road 03/01/2022 0.00 31,591.25 31,591.25 Total Due 03/01/2022 0.00 31,591.25 31,591.25 Debt Service Payment Due 09/01/2022 Bank of New York 2021 - Road 09/01/2022 65,000.00 31,591.25 96,591.25 Total Due 09/01/2022 65,000.00 31,591.25 96,591.25 District Total $65,000.00 $63,182.50 $128,182.50 10 MUNTc1PA1 ACCOUNTS &° COrNSuLUN LP, Rock Prairie Management District No. 2 Quarterly Investment Inventory Report Period Ending August 31, 2021 BOARD OF DIRECTORS Rock Prairie Management District No. 2 Attached is the Quarterly Investment Inventory Report for the Period ending August 31, 2021. This report and the District's investment portfolio are in compliance with the investment strategies expressed in the Districts's investment policy, and the Public Funds Investment Act . I, hereby certify that, pursuant to Senate Bill 253 and in connection with the preparation of the investment report, I have reviewed the divestment lists prepared and maintained by the Texas Comptroller of Public Accounts, and the District does not own direct or indirect holdings in any companies identified on such lists. Mark M. Burton (Investment Officer) Ghia Lewis (Investment Offices) Mohan .to .r1. :re A INn4le HB 675 states the Investment Officer must attend at least one training seminar for O six hours Within twelve months of taking office and requires at least (4) four hours training within each (2) two yearpseod thereafter. INVESTMENT OFFICERS Mark M. Burton Ghia Lewis 1281 Beittmoore Road • • Houston, Texas 77043 • Phone: 713.623.4539 • Fax: 713.629.6859 CURRENT TRAINING November 5, 2011 (Texpool Academy 10 Hours) November 5, 2013 (rrapool Academy 10 Hours) November 27, 2015 (Texpool Academy 10 Hours) December 26, 2017 (Texpool Academy 10 Hours) January 9, 2020 (Texpool Academy 12 Hours) October 25, 2011 (Texpool Academy 10 Hours) November 7, 2013 (Texpool Academy 10 Hours) November 5, 2015 (Texpool Academy 10 Hours) November 0, 2017 (Texpool Academy 10 Hours) November 5, 2019 (Texpool Academy 10 Hours) 11 Rock Prairie Management Diemet No. 2 Summary of Money Market Funds 06/01/2021- 08/31/2021 Fund: Capital Projects Financial Institution: TEXAS CLASS Account Number. 70ZXX0002 Date Opened: 94/06/2021 Current Interest Ratc 0.05% Date Desorption Begin Balance Cash Added Cash Withdrawn Iot. Earned End Balance 06/01/2021 84,612.49 06/10/2021 TO C J4ECKING (5,209.72) 06/30/2021 400 07/31/2021 4.16 08/31/2021 340 Totals for Account X3ZO0001 484,61149 5 (<,209.72) 811b4 579,414.41 Totals for Capital Projects Fund: $84,612.49 (45,209.72) 411.64 479,414.41 aleteS heed rw Araaepnr 9t ,139,n Gdfiem afDgwua Pare Value Plus Atta,ed loran Seaeric/Dian Gema.mt(AFpias• M&}etVlue Qmwdbr to Sher of the Seoul, .ad Cco6enrd'e 4tirt Pubic Fad lows.. PUd/MM Am,aa Mom = Book VAuc= Unma tehn 12 Rock Prairie Management District No. 2 Summary of Money. Market Funds 06/01/2021- 08/31/2,021 Fonda Debt Service Financial lneticrtion: BBVA USA -DEBT Account Number. 3000B126 Date Opened 01/15/2021 Current Interest Rate: 0.00Y. Dare Description Begin Balance Cash Added Cash Withdrawn Int. Earned End Balance 06/01/2021 50000 06/01/2021 004 06/15/2021 (0 04) 07/01/2021 000 08/01/2021 0.Q7 Total. forAccount )00001126: 5500.00 (SOA4) $0.04 5500 00 Financial Institution: TEXAS CLASS Account Number. 20CiX0001 Date Opened 04/06/2021 Correct Interest Rate: 0.05 % Date Dercrimion Begin Balance Cash Added Cash Withdrawn Int. Earned End Balance 06/01/2021 64,791.19 06/30/2021 327 07/31/2021 3.37 08/31/2021 2.75 08/31/2021 BOND PAYMENT BONY (2632605) Totals forAccount X XX0001 $64,791.19 (526,32605) $9.39 $38,474.53 Totals for Debt Service Fund $65,291.19 (526,32609) $9.43 538,97453 MrOMde Ves Pot Rmodee Maker V.I.. Ce,dame ofOcpori¢ Nu Vdw Plan Accord loaaat Scowde/lli.x. Coce,nant Obligamoc Mrdct Vale Qekdhr au Sam of[Plc Stonier and Gofiond in Wining Bth4c fund Beeneet Rd/hpd Accounts: Bd.re=Book Voluc= Cant Mod. 13 EXHIBIT "B" Honesty I Efficiency 1 Transparency I Accountability I Continuity MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE MONTH ENDING August 31, 2021 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN713-900-2680 TOLL FREE 1-888-598-7409 1 MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 8/31/21 RECEIVABLES SUMMARY 2020 Balance Forward Levy at 05/31/20 FYE CAD Changes / Uncollectible Outstanding Balance forward Prior Years (2019-2010) at 05/31/20 FYE CAD Changes / Uncollectible Total Levy to be collected Collection prior months (all years) 2020 Taxes Collected net NSF & KR Refunds during current month Taxes Collected for Prior Years net NSF & KR Refunds Total Outstanding Balance $847.78 $0.00 $0 00 $0 00 $0.00 $0.00 $0.00 847.78 0.00 847.78 0.00 847.78 TAX ACCOUNT Beginning Balance — Tax Account 11,954.86 Income Taxes Collected Current Year $0.00 Taxes Collected Prior Year $0.00 Penalties & Interest $0.00 Collection Fee Paid $0.00 Overpayments $0.00 NSF or Reversals, Bank Charges $0.00 Other Fees & Court Costs, Etc $0.00 Earned Interest $0.00 $0.00 Void Check 1092 Due To Stale Date $13.19 Expenses CK# 1085 Brazos CAD - 4th Qtr 2021 Assessment (Reporting Only) CK# 1116 DHI Title - Over Payment Refund (TY 2020) CK# 1117 B&A Municipal Tax Service, LLC - Invoice MD2-122 CK# 1118 B&A Municipal Tax Service, LLC - Invoice MD2-123 11,968.05 $243.00 $13.19 $662.00 $44.40 $962.59 Ending Balance —Tax Account 11,005.46 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 8/31/21 OUTSTANDING TAXES - YEAR TO DATE BALANCE FORWARD CAD TAX @ SUPPLEMENTS & YEAR 10/01/20 CORRECTIONS UNCOLLECTIBLE 2020 $116,563.08 $1,113.76 $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 2021 2020 2019 2018 2017 HOMESTEAD EXEMPTION 0.00% 0.00% 0.00% 0.00% 0.00% DISTRICT VALUES OVER 65 / DISABLED 0 0 0 0 0 TAX LAND & YEAR IMPROVEMENTS AG NET 2020 22,941,412 7,123 2019 14,898,546 14,370 2018 9,881,920 28,690 2017 4,069,643 27,010 COLLECTIONS $116,829.06 $73,299.93 $49,461.25 $19,962.78 DEBT SERVICE M & 0 RATE RATE 0.00000 0.00000 0.50000 0.00000 0.50000 0.00000 0.50000 0.00000 0.50000 0.00000 PERSONAL PROPERTY 617,829 909,670 309,850 0 EXEMPTIONS 30,971 1,162,600 328,210 104,096 OUTSTANDING COLLECTIONS TAXES PERCENTAGE $847.78 99.28% $0.00 $0.00 ($0.00) $847.78 100.00% 100.00% 100.00% CONTRACT TAX RATE TOTAL RATE 0.00000 0.00000 0.00000 0.50000 0.00000 0.50000 0.00000 0.50000 0.00000 0.50000 TOTAL VALUE 23,535,393 14, 659, 986 9,892,250 3,992,557 SR KR 32 32 50 50 76 76 87 87 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 ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 8/31/21 INCOME 10% Rendition Penalty Bad Check Charges CAD Refund Excess Allotment Collection Fee PROFIT & LOSS CURRENT MONTH 08/01/21 - 08/31/21 12,866.27 0.00 0.00 0.00 0.00 Earned Interest 0.00 Overpayments 0.00 Penalty & Interest 0.00 Rollback Tax Collected 0.00 Taxes Collected 0.00 Total Income 0.00 FISCAL YEAR 6/01/21 - 8/31/21 19,781.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 EXPENSES Annexation 0.00 100.00 Audit/Records 175.00 175.00 Bank Charges 0.00 0.00 Bond Premium 0.00 50.00 CAD Fees 0.00 243.00 Certificate of Value 0.00 0.00 Copies 14.20 52.60 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 45.00 Delinquent Tax Attorney Fee 0.00 0.00 Estimate of Value 0.00 0.00 Installment Tracking 0.00 0.00 Unclaimed Property Report 0.00 0.00 Legal Notices 0.00 0.00 Mailing & Handling 0.73 22.44 Meeting Travel & Mileage 43.88 131.64 Overpayment Refund (13.19) (13.19) Public Hearing 0.00 0.00 Records Retention 0.60 1.80 Roll Update & Processing 0.00 18.75 Supplies 0.00 0.00 Tax Assessor Collector Fee - AB 662.00 1,986.00 Tax Rate Preparation & Calculation 0.00 0.00 Transfer to Rollback Collected 0.00 0.00 Transfer to Maintenance & Operating 0.00 5,000.00 Transfer to Debt Service 0.00 0.00 898.22 7,813.04 ENDING BALANCE 11.988.05 11.968.05 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 8/31/21 YEAR TO YEAR COMPARISON 1 2020 October $678.59 November December January February March April May June July August September $1,138.23 $4,289.31 $91, 384.54 2019 0.58% $3,394.55 1.56% $569.00 5.24% $4,111.95 82.85% $459.42 83.24% $18, 353.63 $525.34 MOO $0.00 $0.00 $0.00 20201 20191 $0.00 $0.00 98.83% 99.28% 99.28% 99.28% 99.28%$0.00 99.28% $0.00 S0.00 MONTHLY COLLECTIONS 2018 $0.00 4.46% 5.41% 11.02% 67.55% 67.58% 67.58% 67.58% 100.00% -0.72% VARIANCE -3.88% - 3.85% - 5.78% 100.00%. .�I 100.00% 100.00% 100.00% 15.30% 15.66% 31.25% 31.70% - 0.72% - 0.72% - 0.72% 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 ROCK PRAIRIE MANAGEMENT DISTRICT NO 2 FOR THE PERIOD ENDING 08/20/21 MUNICIPAL TAX SERVICE,LLC PLEDGED SECURITIES REPORT SECURITIES PLEDGED AT 105% OVER FDIC INSURED $250,000 COLLATERAL SECURITY AGREEMENT ON FILE : YES TAX BANK ACCOUNT HELD AT: WELLS FARGO / BANK OF NEW YORK MELLON COLLATERAL SECURITY REQUIRED: NO TYPE OF PLEDGED INVESTMENT: IN COMPLIANCE W/ DISTRICT INVESTMENT POLICY: YES B A MUNICIPAL TAX SERVICE 13333 NORTHWEST FREEWAY SUITE 620 HOUSTON TX 77040 MAIN 713.900-2680 TOLL FREE 1-888-598-7409 PS STATE OF TEXAS § COUNTY OF BRAZOS § Avik Bonnerjee, being duly sworn, says that he is the Tax Assessor -Collector for the above named District and the foregoing contains a true and correct report accounting for all taxes collected for said District during the month therein stated. Avik Bonnerjee, RTA SWORN TO AND SUBSCRIBED BEFORE ME, this 1st day of September 2021. •,_•cry, REBECCA LYNN BREWER Notary ID #1258819 My Commission Expires March 1, 2024 Rebecca Lynn Brewer Notary Public, State of Texas Notary ID #1258819 My Commission Expires March 1, 2024 BRAZOS CENTRAL APPRAISAL DISTRICT BRAZOS COUNTY, TEXAS cost PENDLETON DR RRY.4N, TX T7802-2465 Mr. Avik Bonnerjee Registered Texas Assessor Collector B&A Municipal Tax Service LLC 13333 Northwest Freeway, Suite 620 Houston, TX 77040 November 19, 2020 STATEMENT Mark W. Price Chief Appraiser (979)774-4100 (979)774-4196 Fax Rock Prairie Management District #2 Below are the quarterly payment amounts and due dates for the 2021 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, 2020 2nd Quarter due by March 31, 2021 3rd Quarter due by June 30, 2021 4th Quarter due by September 30, 2021 Total Allocation $243.00 $243.00 $243.00 $243.00 / $972.00 `IDA JoSs-F c2►E,.4.-ept cry - ►�N��` '`tie)) 2020 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 LIMA HEITOR RODRIGUES DE PAULA & RITA DE CASSIA PALMA CUNHA 1062 TOLEDO BEND DR COLLEGE STATION, TX 77845-7834 **RETURN SERVICE REQUESTED*` Appraised Values Land Non HS 100% Assessed Value Taxing Unit ROCK PRAIRIE MD NO. 2 Phone: 713-900-2680 Fax: 713-900-2685 Property Information 23,981 MIDTOWN RESERVE PH 102, BLOCK 5, LOT 32, ACRES 0.101 23,981 Acreage: 0.10100 Service Address TOLEDO BEND DR 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. Less Exemptions Payment Due Before Date Payment Paid By 12/17/2020 133.09 DHI TITLE AGENCY 01/01/2021 -13 19 DHI TITLE AGENCY - CK 1092 ✓ 08/31/2021 13.19 VOID CHECK 1092 - DUE TO STALE DATE GRAtik0*- �51 54 & K Doplen Leo? Ter I� T x 1(oda, Q al JUL piety meAt 4 13•/61 Taxes Paid 119.90 0.00 0.00 Jur No Stmt Date MD2 8/31/2021 Account No t. Delinquent Date 2/2/2021 Receipt No 112 41380010250320 TAXES ARE DUE UPON RECEIPT. TAXES WILL BECOME DELINQUENT AFTER February 01, 2021. PAYMENT MUST BE POSTMARKED BEFORE DELINQUENT DATE TO AVOID ADDITIONAL PENALTIES AND INTEREST. Taxes that remain delinquent on July 01, 2021 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 Year f 2020 i N/A N/A 011 N/A N/A I N/A Taxable Value Tax Rate CAD Penalties Paid 0.00 0.00 0.00 Appraised 23,981 N/A N/A N/A N/A N/A Comparisons of the last six (6) tax years Taxable Rate Taxes 23,981 0.500000 119.90 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 2020 and 2020 N/A I N/A N/A I N/A Tax Levy % Change N/A N/A N/A N/A N/A N/A 23,981 0.500000 per $100 119.90 Current Taxes Due 119.90 Other P & I Paid Attv Fee Paid Paid Total Payment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 pqd2_)cK lli0 133 09 -1319 1319 I. 2020 Paid in Full Total Paid 133.09 invoice Date Invoice # MUNICIPAL TAX SERVICE, LLC 9/1/2021 MD2-122 Bill To Rock Prairie Management District No. 2 13333 Northwest Freeway Suite 620 Houston TX 77040 Description Unit Count Rate Amount Avik Bonnerjee, RTA - Tax Assessor Collector Fee September 518.00 518.00 2021 2020 Additional Unit Count Invoiced 2021 160 0.90 144.00 Thank you for your business. Total .P6C 4.40k3i a I 117 $662.00 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 i Date I9/1/2021 Invoice Invoice # MD2-123 Description Unit Count Rate Amount Copies Records Retention Preparation of Delq. Atty. Electronic Files Thank you for your business. 144 0.20 0.60 15.00 28.80 0.60 15.00 Total $44.40 -P4 q.ol.07-i cx_fill 13333 Northwest Freeway, Suite 620 • Houston, TX 77040 • PH:713-900-2680 • www.bamunitax.com Honesty I Efficiency I Transparency I Accountability I Continuity MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE MONTH ENDING September 30, 2021 B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 MAIN 713-900-2680 1 HOUSTON, TX 77040 TOLL FREE 1-888-598-7409 MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 9/30/21 RECEIVABLES SUMMARY 2020 Balance Forward Levy at 05/31/20 FYE CAD Changes / Uncollectible Outstanding Balance forward Prior Years (2019-2010) at 05/31/20 FYE CAD Changes / Uncollectible Total Levy to be collected Collection prior months (all years) 2020 Taxes Collected net NSF & KR Refunds during current month Taxes Collected for Prior Years net NSF & KR Refunds Total Outstanding Balance TAX ACCOUNT Income Taxes Collected Current Year Taxes Collected Prior Year Penalties & Interest Collection Fee Paid Overpayments NSF or Reversals, Bank Charges Other Fees & Court Costs, Etc Earned Interest $847.78 $0.00 $0.00 $0.00 $0.00 ($413.68) $0.00 847.78 0.00 847.78 (413.68) 434.10 Beginning Balance — Tax Account 11,005.46 CAD Refund Excess Allotment Expenses CK# 1119 Perdue Brandon Fielder Collins & Mott -Attorney Fee Delq Coll (9/2021) CK# 1120 B&A Municipal Tax Service, LLC - Invoice MD2-125 CK# 1121 B&A Municipal Tax Service, LLC - Invoice MD2-126 $413.68 $0.00 $82.74 $99.28 $0.00 $0.00 $164.30 $0.00 $760.00 11,765.46 $99.28 $662.00 $1,099.88 $1,861.16 Ending Balance —Tax Account 9,904.30 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 9/30/21 OUTSTANDING TAXES - YEAR TO DATE BALANCE FORWARD CAD TAX @ SUPPLEMENTS & OUTSTANDING COLLECTIONS YEAR 10/01/20 CORRECTIONS UNCOLLECTIBLE COLLECTIONS TAXES PERCENTAGE 2020 $116,563.08 $1,113.76 $0.00 $117,242.74 $434.10 99.63% 2019 $73,299.93 $0.00 $0.00 $73,299.93 $0.00 100.00% 2018 $49,461.25 $0.00 $0.00 $49,461.25 $0.00 100.00% 2017 $19,962.78 $0.00 $0.00 $19,962.78 ($0.00) 100.00% $434.10 EXEMPTIONS & TAX RATES TAX HOMESTEAD OVER 65 / DEBT SERVICE CONTRACT TAX YEAR EXEMPTION DISABLED M & 0 RATE RATE RATE TOTAL RATE 2021 0.00% 0 0.00000 0.00000 0.00000 0.00000 2020 0.00% 0 0.50000 0.00000 0.00000 0.50000 2019 0.00% 0 0.50000 0.00000 0.00000 0.50000 2018 0.00% 0 0.50000 0.00000 0.00000 0.50000 2017 0.00% 0 0.50000 0.00000 0.00000 0.50000 DISTRICT VALUES TAX LAND & PERSONAL YEAR IMPROVEMENTS AG NET PROPERTY EXEMPTIONS TOTAL VALUE SR KR 2020 22,941,412 7,123 617,829 30,971 23,535,393 32 32 2019 14,898,546 14,370 909,670 1,162,600 14,659,986 50 50 2018 9,881,920 28,690 309,850 328,210 9,892,250 76 76 2017 4,069,643 27,010 0 104,096 3,992,557 87 87 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 ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 9/30/21 MUNICIPAL TAX SERVICE,LLC BEGINNING BALANCE INCOME 10% Rendition Penalty Bad Check Charges CAD Refund Excess Allotment Collection Fee Earned Interest Overpayments Penalty & Interest Rollback Tax Collected Taxes Collected PROFIT & LOSS CURRENT MONTH 09/01/21 - 09/30/21 11,968.05 0.00 0.00 164.30 99.28 0.00 0.00 82.74 0.00 413.68 Total Income 760.00 EXPENSES Annexation 0.00 Audit/Records 0.00 Bank Charges 0.00 Bond Premium 0.00 CAD Fees _ 243.00 Certificate of Value 0.00 Copies 28.80 Correction Roll Refunds 0.00 Correction Roll Rendition Refunds 0.00 Continuing Disclosure 0.00 Court Affidavits 0.00 Delinquent Tax Attorney Assistance 15.00 Delinquent Tax Attorney Fee _ 0.00 Estimate of Value 0.00 Installment Tracking 0.00 Unclaimed Property Report 0.00 Legal Notices 0.00 Mailing & Handling 0.00 Meeting Travel & Mileage _ 0.00 Overpayment Refund 13.19 Public Hearing 0.00 Records Retention 0.60 Roll Update & Processing 0.00 Supplies 0.00 Tax Assessor Collector Fee - AB 662.00 Tax Rate Preparation & Calculation 0.00 Transfer to Rollback Collected 0.00 Transfer to Maintenance & Operating 0.00 Transfer to Debt Service 0.00 962.59 ENDING BALANCE 11.765.46 FISCAL YEAR 6/01/21 - 9/30/21 19,781.09 0.00 0.00 164.30 99.28 0.00 0.00 82.74 0.00 413.68 760.00 100.00 175.00 0.00 50.00 486.00 0.00 81.40 0.00 0.00 0.00 0.00 60.00 0.00 0.00 0.00 0.00 0.00 22.44 131.64 0.00 0.00 2.40 18.75 0.00 2,648.00 0.00 0.00 5,000.00 0.00 8,775.63 11. 7,65.46 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 A. ril May June MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 9/30/21 YEAR TO YEAR COMPARISON 2020 % 2019 October $678.59 November $1,138.23 December $4,289.31 January $91,384.54 February $459.42 March $18,353.63 $525.34 July $0.00 $0.00 $0.00 August $0.00 September $413.68 20201 0.58%' 1.56% $3,394.55 $569.00 4.46% 5.41% 5.24% $4,111.95 11.02% $41,438.41 67.55% 83.24% $25.50 99.28% $0.00 $0.00 $23,760.52 $0.00 $0.00 $0.00 99.63% $0.00 MONTHLY COLLECTIONS 20191 2018 $413.68 $0.00 $0.00 67.58% 67.58% 67.58% 100.00% 100.00% 100.00% 100.00% 100.00% VARIANCE -3.88% - 3.85%I -5.78% 15.30% 15.66% 31.25% 31.70% -0.72% -0.72% - 0.72% - 0.72% - 0.37% B & A MUNICIPAL TAX SERVICE, LLC 13333 NORTHWEST FREEWAY, STE 620 HOUSTON, TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 5 MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT NO 2 FOR THE PERIOD ENDING 09/23/21 PLEDGED SECURITIES REPORT SECURITIES PLEDGED AT 105% OVER FDIC INSURED $250,000 COLLATERAL SECURITY AGREEMENT ON FILE : YES TAX BANK ACCOUNT HELD AT: WELLS FARGO / BANK OF NEW YORK MELLON COLLATERAL SECURITY REQUIRED: NO TYPE OF PLEDGED INVESTMENT: IN COMPLIANCE W/ DISTRICT INVESTMENT POLICY: YES B A MUNICIPAL TAX SERVICE 13333 NORTHWEST FREEWAY SUITE 620 HOUSTON TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 PS STATE OF TEXAS § COUNTY OF BRAZOS § Avik Bonnerjee, being duly sworn, says that he is the Tax Assessor -Collector for the above named District and the foregoing contains a true and correct report accounting for all taxes collected for said District during the month therein stated. Avik Bonnerjee, RTA SWORN TO AND SUBSCRIBED BEFORE ME, this 1st day of October 2021. REBECCA LYNN BREWER Notary !D P/258819 My Commission Expires 3 March 1, 2024 LW (AA., Rebecca Lynn Brewer Notary Public, State of Texas Notary ID #1258819 My Commission Expires March 1, 2024 ' Jurisdiction: MD2 Bank WELLS FARGO BANK GL Account Summary Taxes Paid P&I Paid Coll Fee Paid ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 Deposits Report For Dates 9/1/2021 thru 9/30/2021 Deposit Date Deposit No Ck/Cash CC WACH Deposit Amount 9/29/2021 2021026 0 1 0 595.70 Total Deposits 1 0 1 0 595.70 2020 Total Report 413.68 413.68 82.74 82.74 99.28 99.28 595.70 595.70 1E F Qom ?A io.oi.Ji Cg ilici Page 1 10/4/2021 12:38 PM 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 # 10/1/2021 MD2-125 Description Unit Count Rate Amount Avik Bonnerjee, RTA - Tax Assessor Collector Fee October 518.00 518.00 2021 2020 Additional Unit Count Invoiced 2021 160 0.90 144.00 Thank you for your business. Total Rtk /0.01,1 alcitac-) $662.00 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 Invoice Date Invoice # 10/ 1 /2021 MD2-126 Description Unit Count Rate Amount Copies 232 0.20 46.40 Postage, Mailing, and Handling (1) 0.75 0.75 Roll Update & Processing Hrs. (July Rolls and August 2021 2.5 75.00 187.50 Certified Rolls) Statement Mailing & Handling: 3rd Quarter Notices 0.25 75.00 18.75 (July -Sept 2021) Records Retention 0.60 0.60 Preparation of Delq. Atty. Electronic Files 15.00 15.00 Meeting Travel Time/Mileage/Time (August 2021) 43.88 43.88 The Eagle Invoice Ad #0000721002-01 (Legal Notice to 787.00 787.00 Publish 2021 Proposed Tax Rate) Thank you for your business. Total $1,099.88 '(3303 IlL,�L �rrc..a�l. �ccrru7, Giaiic/y2G 11-21, Tli !nu y64.6t6 .. r.e...u...re .CO --?et„ la•o►. 'i al. iil&1 EXHIBIT "C" ORDER LEVYING TAXES WHEREAS, Rock Prairie Management District No. 2 (the "District") has heretofore issued bonds, payable in whole or in part from taxes, for the purposes of financing road facilities ("Road Bonds"), and certain of such bonds remain outstanding and unpaid; and WHEREAS, the order authorizing the issuance of such bonds authorizes a levy of an ad valorem tax for the purpose of providing interest and principal payments on such bonds, while any part of said principal or interest remains outstanding and unpaid; and WHEREAS, the District is authorized to levy a maintenance tax not to exceed $1.00 per each $100 of assessed valuation within the District in order to pay operation, maintenance and administrative expenses, including those related to recreational facilities in accordance with applicable law; and WHEREAS, it is necessary for the Board of Directors of the District to fix a specific rate of tax to be levied for the tax year 2021, based on the District's tax rolls for 2021, which have been prepared and certified by the Brazos Central Appraisal District. Now, Therefore; BE IT ORDERED BY THE BOARD OF DIRECTORS OF ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 THAT: Section 1: There is hereby levied an ad valorem tax of $0.33 on each $100 of assessed valuation of taxable property within the District, for the tax year 2021, for the purpose of providing interest and principal payments on the District's bonds. Section 2: There is hereby levied an ad valorem maintenance tax of $0.17 on each $100 of assessed valuation of taxable property within the District for the tax year 2021, for the purpose of providing funds for the payment of operation, maintenance and administrative expenses of the District and other purposes as allowed by law. Section 3: The District's tax assessor -collector is hereby authorized to collect the taxes of the District. Section 4: The taxes levied hereby shall become due and payable upon the receipt of the tax bill unless otherwise specifically provided by law and shall be paid on or before the 31 st day of January, 2022. All taxes not paid before February 1, 2022, shall become delinquent on that date, and there shall be added thereto such penalties, interest, court costs, expenses of foreclosure sales, attorneys' fees and other expenses as are provided by law. Section 5: The District's tax assessor collector and bookkeeper are hereby directed to deposit, from time to time, as collected, 100% of the taxes levied pursuant to Section 1 hereof, and any related penalties and interest thereon and collection expenses recovered in respect thereof, to the credit of that certain Bond Fund Road Bond Account within the Bond Fund, as defined in and created pursuant to the order authorizing the issuance of the Road Bonds. 499236-7 PASSED AND ADOPTED this the 18th day of October, 2021. President, Board of Directors ATTEST: Secretary, 1. • d of rectors 1j1H1IH1/,`R0 Alai' ...... ,0.: • � A _y 2�. x s�� r ••• ',,.' 'ate: --imam no 499236-7 EXHIBIT "D" Rock Prairie Management District No. 2 Brazos County, Texas Independent Auditor's Report and Financial Statements May 31, 2021 cc( N,5cc' BKD CPAs & Advisors Rock Prairie Management District No. 2 May 31, 2021 Contents Independent Auditor's Report 1 Management's Discussion and Analysis 3 Basic Financial Statements Statement of Net Position and Governmental Funds Balance Sheet 9 Statement of Activities and Governmental Funds Revenues, Expenditures and Changes in Fund Balances { 10 Notes to Financial Statements 11 Required Supplementary Information Budgetary Comparison Schedule — General Fund Notes to Required Supplementary Information Other Information Other Schedules Included Within This Report 26 Schedule of Services and Rates r 27 Schedule of General Fund Expendi 28 Lures,_ Schedule of Temporary Inyestments s 29 Analysis of Taxes Levied and Receivable 30 Schedule of Long -terra Debt S t ice Requirements by Years 32 Changes in Long-term Bonded Debt 33 Comparative Schedule of Revenues and Expenditures — General Fund and Debt Service Fund 34 Board Members, Key Personnel and Consultants 36 i 24 25 Independent Auditor's Report Board of Directors Rock Prairie Management District No. 2 Brazos County, Texas We have audited the accompanying financial statements of the gov fund of Rock Prairie Management District No. 2 (the District), as of an and the related notes to the fmancial statements, which collectively co statements as listed in the table of contents. Management's Responsibility for the Financial Stateme Management is responsible for the preparation and fair presentation'of these fmancial statements in accordance with accounting principles generally accepted in e United States of America; this includes the design, implementation and maintenance o r.+ tom., con ttt,0 relevant to the preparation and fair presentation of fmancial statements that are fre ~ om : misstatement, whether due to fraud or error. activiti :. ' d each major year en sti ay 31, 2021, Distri basic financial Auditor's Responsibility Our responsibility is to express opinions on th; financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and per£drm the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing, procedures to obtain audit evidence about the amounts and disclosures in the financial, tements. The procedures selected depend on the auditor's judgment, including the assessment'aerisks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentativn_of the financial statements 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 entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the fmancial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Board of Directors Rock Prairie Management District No. 2 Page 2 Opinions In our opinion, the fmancial statements referred to above 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, 2021, and the respective changes in fmancial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require: that the management's discussion and analysis and budgetary comparison schedule listed in the table of contents be presented to supplement the basic fmancial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who, considers it to be an essential part of fmancial reporting for placing the basic fmancial 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 themethods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic fmancial 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 theinformation because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the fmancial statements that collectively comprise the District's basic financial statements. The other information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic fmancial statements, and accordingly, we do not express an opinion or provide any assurance on it. Houston, Texas . 2021 Rock Prairie Management District No. 2 Management's Discussion and Analysis May 31, 2021 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 fmancial 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 .;_age in a' ' gle governmental program, such as the provision of water, sanitary sewer and drainage serv' .. Q.• I er acti e - such as the provision of recreation facilities and solid waste collection, are minor acti ties : 116 are not dgeted or accounted for as separate programs. The financial statements of special-purpose ge. ernments combine two types of financial statements into one statement. These two types of financialtate..et; are the government -wide fmancial statements and the fund financial stater e nts. T e-fund financial statements are presented on the left side of the statements, a column for adjuscrnentst to the right of the fund fmancial statements, and the government -wide fmancial statements are presented to the right side of the adjustments column. The following sections describe the measurement focus of the types of statements and the 41/ 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 positionwand 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. 3 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2021 Although the statement of activities looks different from a commercial enterprise's statement of income, the fmancial 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 fmancial statements, the focus of fund fmancial statementsis directed to specific activities of the District rather than the District as a whole. Except for the generabfund, 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 fmancial statements consist of a balance sheet and a ent pf revenues, expenditures and changes in fund balances and are prepared on an accountg base' that i significantly different from that used to prepare the government -wide fmancial statements. In general, these fmancial statements have a short--�ttetrethasisnd, Ale most part, measure and account for cash and other assets that can easily be converted into ea Fc# xample, 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 ofthe fiscal year. The difference between a fund's assets, liabilities, and deferred inflows and outflows of rwi�urces; labeled the fund balance and generally indicates the amount that can be used to finance the next fiscattar's�activitics. 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 die end of the fiscal year. Because the focus of the government -ride and fund fmancial statements is different, there are significant differences between the -totals presentedin these financial statements. For this reason, there is an analysis in the notes to financial statements that dcibes the adjustments to fund balances to arrive at net position presented in the governmental activities coIumn:on the statement of net position. Also, there is an analysis in the notes to fmancial statements that recoil -files 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. 4 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2021 Financial Analysis of the District as a Whole The District's overall fmancial position and activities are summarized as follows, based on the information included in the government -wide fmancial statements. Summary of Net Position 2021 2020 Current and other assets $ 237,336 48,382 Capital assets OU2 � 595,072 Total assets $ 832,408' $ 1 643,454 Long-term liabilities $ 15,647;988 $ 9,641,780 Other liabilities 31,379 14,556 Total liabilities 15,679,367 9,656,336 Net position: Net investment in capital assets (14,973,416) (9,046,708) Restricted 54,969 - Unrestricted 71,488 33,826 Total net position $ (14,846,959) $ (9.012.882) The total net position of the District.decreased by $5,834,077. 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 investmejit in itscapital assets is reported net of related debt, it should be noted that the resources needed to repays debt must be proiiided from other sources, since the capital assets themselves cannot be used to liquidate tli'ee liabilities. Summary of Changes in Net Position 2021 2020 Revenues: Property taxes $ 117,677 $ 73,312 Other revenues 1,810 14,302 Total revenues 119.487 87,614 5 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2021 Sununary of Chances in Net Position (Continued] Expenses: Services Conveyance of capital assets Debt service Total expenses Change in net position Net position, beginning of year Net position, end of year Financial Analysis of the District's Fund 2021 $ 133,532 $ 5,647,399 172,633 5,953,564'4, (9,012,882) 2020 125,449 6,574,008 6,699,457 (6,,611,843) (2,401,039) $, (14,8.,959) $ (9,012,882) The District's combined fund balances as of the end of the fiscal year ended May 31, 2021, were $213,327, an increase of $179,501 from the prior year. The general fund's fund balance increasedib , ;, ; aa'ly due to property tax revenues and developer advances received exceeding service o' era The debt service fund's fund balance increased by $63,185 due to proceeds received from the Series 2021 road bonds. 6,814, prim expenditures. The capital projects fund's fund balance increased by $79,502 due to proceeds received from the Series 2021 road bonds exceeding capital outlay expenditures and debt issuance costs. General Fund BudRetary HialiliAts There were several differences between the fmal budgetary amounts and actual amounts. The major differences between budget and actual were due to property tax revenues and contracted services expenditures being higher than anticipated. The fund balance as of May 31, 2021, was expected to be $33,826 and the actual end -of -year fund balance was $70,640. 6 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2021 Capital Assets and Related Debt Capital Assets Capital assets held by the District at the end of the current fiscal year are summarized as follows: Capital Assets Land and improvements 2021 2020 $ 595,072 3 595,072 During the current year, there were no additions to capital assets. The developer within the District has constructed facilities on bebal of the District under the terms of the contracts with the District. The District has agreed to purchase these acilities from the proceeds of future bond issues subject to the approval of the Commission. As of May al, 202 a liability for developer constructed capital assets of $12,959,839 was recorded in the government -wide fman ial statements. Debt The changes in the debt position of the District during the fiscal year ended May 31, 2021, are summarized as follows: iP Long-term debt payable, beginning of year $ 9,641,780 Increases in long-term debt 8,140,781 Decreases in long-term t- . (2,134,573) Long-term debt payable. end of ye $ 15,647,988 At May 31, 2021, 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 $104,100,000 of unlimited tax bonds authorized, but unissued, for the purpose of constructing road and paving facilities. Other Relevant Factors Relationship to the City of Colleue 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 7 Rock Prairie Management District No. 2 Management's Discussion and Analysis (Continued) May 31, 2021 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 developers and, with the exception of stonn 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 fmance 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 no ur until the termination or expiration of that certain Infrastructure and Economic Development Agreement beep the City and College Station Town Center, Inc., effective July 10, 2015, as partially assigned to,t istnct an College Station Downtown Residential, LLC. The City has agreed to afford the District tlapptunity to , harge any remaining obligations under any existing reimbursement agreement with a eveloper in the 'strict by authorizing the sale of bonds during a dissolution transition period or selling bonds of City in an amount adequate to discharge the District's obligations. Economic Dependency The District's developer owns the majority of the taxable property in the ' 'ct. The District's ability to meet its obligations is dependent on the developer's abilityto=.pay property taxes. As of May 31, 2021, the developer has advanced $244,800 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 record'eilasliabilities in thegovernment-wide fmancial statements. Contimzencies The developer of the District is constructing water; sewer, drainage and road facilities within the boundaries of the District. The District has agreed to reimburse the developer for a portion of these costs, plus interest, from the proceeds of future bond sales, to the extent approved by the Commission. The District's engineer has stated that current constructiontontract amounts are approximately $1,150,000. This amount has not been recorded in the fmancial statements since the facilities are not complete or operational. 8 Rock Prairie Management District No. 2 Statement of Net Position and Governmental Funds Balance Sheet May 31, 2021 Debt Capital Statement General Service Projects of Net Fund Fund Fund Total Adjustments Position Assets Cash $ 86,485 $ 500 $ 100 $ 87,085 $ - $ 87,085 Short-term investments 64,791 84,612 149,403 149,403 Property taxes receivable 848 - 848 - 848 Capital assets, land and improvements - - 595,072 595,072 Total assets $ 87,333 $ 65,291 $ 84,712 $ 237;336 $ 595.072 $ 832,408 Liabilities Accounts payable $ 15,845 $ - $ 5,210 ki 1,055 $ - $ 21,055 Accrued interest payable - 2,106 106 Y• 8,218 10,324 Long-term liabilities: 1, Due within one year - - Due after one year A - 00'- 15,647,988 15,647,988 Total liabilities 15,845 2,106 5 23,161 15,656,206 15.679,367 Deferred Inflows of Resources , Deferred property taxrevenues 848 0 848 (848) 0 Fund Balances/Net Position Fund balances: Restricted: . Unlimited tax bonds111)14_ o3,185 - 63,185 (63,185) Roads - - 79,502 79,502 (79,502) - Unassigned 70,640 70,640 (70,640) - i' Total fund balances 70_6.40' 63,185 79,502 213,327 (213,327) 0 Total ics and fund balances b 87.333 $ 65,291 $ 84,712 $ 237,336 Net position: Net investment in capital assets (14,973,416) (14,973,416) Restricted for debt service 54,967 54,967 Restricted for capital projects 2 2 Unrestricted 71,488 71,488 Total net position $ (14,846,959) $ (14,846,959) See Notes to Financial Statements 9 Rock Prairie Management District No. 2 Statement of Activities and Governmental Funds Revenues, Expenditures and Changes in Fund Balances Year Ended May 31, 2021 Debt Capital Statement General Service Projects of Fund Fund Fund Total Adjustments Activities Revenues Property taxes $ 116,829 $ $ $ 116,829 $ 848 $ 117,677 Penalty and interest 1,738 - - 1,738 - 1,738 Investment income 66 3 3 72 72 Total revenues 118,633 3 3 118,639 848 119,487 Expenditures/Expenses Service operations: Professional fees 94,471 - " 94,471 1,679 96,150 Contracted services 23,538 - 23,538 - 23,538 Other expenditures 13,843 I? 13,844 - 13,844 Capital outlay 2,136,252. 2,136,252 (2,136252) - Conveyance of capital assets - 5,647,399 5,647,399 Debt service: Interest and fees 8 218 8,218 Debt issuance costs 64.415 1 S YR 15 164,415 Totalexpenditures/expenses 131,852 0 2,300,668 2,432,520 3,521,044 5,953,564 Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Developer advances received General obligation bonds issued Discount on debt issued Total other financing sources Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Change in Net Position Fund Balances/Net Position Beginning of year End of year (13,219) ,41141111116. 3 50,033 - 50,033 (50,033) 63,1 i 2,436,818 2,500,000 (2,500,000) (56,651) (56,651) 56,651 174 r ` S0,03 i 63,182 2,380,167 2,493,382 (2,493,382) (2,313,881) (3,520,196) 36,51.1 63,185 79,502 179,501 (179,501) (5,834,077) (5,834,077) 33,826 - 33,826 - (9,012,882) $ 70,640 $ 63,185 $ 79,502 $ 213,327 $ 0 $ (14,846,959) See Notes to Financial Statements 10 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 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 83rd 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, thearts, 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 pe sans 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 olicies of the District conform to accounting principles generally accepted in the United Iates.oftnerica for state and local governments, as defined by the GovernmentaI,Accounting SFandards Board. The following is a summary of the significant accounting and reporting policies of the District: Reporting Entity The accompanying government -wide fin ncial stater nts present the financial statements of the District. There are no component units that arc legally separate entities for which the District is considered to be fmancially accountable. Accountability is defined as the District's substantive appointment of the voting majoritys9Pthe compone t unit's governing board. Furthermore, to be fmancially accountable, the I]istricf 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. urpose government . Special-purpose governments are governmental entities which engage in a sin movernmental program, such as the provision of water, wastewater, drainage and other related servicges. The financial statements of special-purpose governments combine two types of financial stameuts`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 fmancial statements. The government -wide fmancial 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. 11 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 The fund fmancial statements provide information about the District's governmental funds. Separate statements for each governmental fund are presented. The emphasis of fund fmancial 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 fmancial 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 fmancial resources being accumulated for future debt service. Capital Projects Fund — The capital projects fund is us0d to account for financial resources that are restricted, committed or assigned to expenditures for capi j outlays. Fund Balances — Governmental Funds The fund balances for the District's gov eutal funds can be displayed in up to five components: Nonspendable — Amounts that are not in a spendable form or are required to be maintained intact. 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 us 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 gov ;rnnientai funds other than the general fund, assigned fund balance represents the amount thatis not reystricted or committed. This indicates that resources in other governmental funds are, at a minimuin;?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. 12 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 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 Ash, The government -wide fmancial statements are reported using the economic reso rces measurement focus and accrual basis of accounting. Revenues are recorded when earned and Tenses are recorded at the time liabilities are incurred, regardless of the timing of related cashilows. Nonexchange transactions, in which the District receiv:,, or gives) ialue tncithout directly giving (or receiving) equal value in exchange, include property a' a .and donations:, Recognition standards are based on the characteristics and classes of nonexcha'ge • `kactis. Revenues from property taxes are recognized in the period for which the taxes are levied. I itergovernmental revenues are recognized as revenues, net of estimated refunds and uncolleccble amounts, in the accounting period when an enforceable legal claim to the a 'arises andthe use of resources is required or is first permitted. Donations are recognized�' as r�venues;ne(of estimated uncollectible amounts, as soon as all eligibility requirements imposed by th'rovider.have been met. Amounts received before all eligibility requirements have been met are reported as liabilities. Fund Financial Statements Governmental funds are reported using tfi current financial resources measurement focus and the modified accrual basis o tccountingfith this measurement focus, only current assets and liabilities are generally included tithe balance'sheet. The statement of governmental funds revenues, expenditures and changes in fund balances presents increases (revenues and other financing sources) and decrease(expenditures and other fmancing 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. 13 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 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. Operating 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, ha"s'no pension costs. Use of Estimates The preparation of fmancial statements inEcon o i with accdtintin principles generally accepted P P -.�,� tY g P P g Y P in the United States of America requires.manageFnent to make estimates and assumptions that affect the reported amounts of assets, liabil.ities;.and deferred inflows and outflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates. Investments and Investment Income Investments in certificates of deposit, mutual funds, U.S. Government and agency securities, and certain pooled funds, which have a remaining maturity of one year or less at the date of purchase, are recorded at amortized cost. All other investments are carried at fair value. Fair value is determined using qr uited 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 lien 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 14 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 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, 2021, include collections during the current period or within 60 days of year-end related to the 2020 and prior years' tax levies. In the government -wide statement of net position, property taxes are con'side ed earned in the budget year for which they are levied. For the District's fiscal year ended ay 31, 202-1 the 2020 tax levy is considered earned during the current fiscal year. In addition toy roperty taxes eevied, any delinquent taxes are recorded net of amounts considered uncolleetible. Capital Assets The District conveys title to all capital assets, with thexception storm water detention and recreational facilities, to the City. Capital assets are reporte the government -wide financial statements. Capital assets are defined by the District as assets ith an individual cost of $5,000 or more and an estimated useful life of two years or more. Purcha ed 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 defmition 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 fmancing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other fmancing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 15 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 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 District's policy to use restricted resources first. Reconciliation of Government -wide and Fund Financial Stateme14464,. n Amounts reported for net position of governmental activities in the,statenxent of net position and fund balances in the governmental funds balance sheet are differ' be 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 reduption ofdeferred. inflows of resources are subject to availability of funds in the financial statements. t? 848 Accrued interest on long-term Iiabilities'is not payable -with current financial resources and is not reported in. ds;• (8,218) Long-term liabilities are not dru•• and payable in the current period and are not reported in the finds. - (15,647,988) Adjustment to fund balances to arrive at net position. $ (15,060,286) Amounts reported for change in net position of governmental activities in the statement of activities are different from change-infund 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-wfile 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 conveyed capital assets and noncapital costs exceeded capital outlay expenditures in the current year. 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. $ 179,501 (3,512,826) (50,033) 16 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 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. $ 56,651 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 fmancial resources are not reported as revenues for the funds, but are reported as revenues in the statement of activities. A 848 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. (8,218) Change in net position of governmental activities. -' $ (5,834,077) (2,500,000) 4 Note 2: Deposits, Investments and Investment Income Deposits Custodial credit risk is the risk that, in the event Oa a bank failure, a government's deposits may not be returned to it. The District's deposit:. olicy for custodial credit risk requires compliance with the provisions of state law. • State law requires collatealization off all deposits with federal depository insurance; a surety bond; bonds and other obligations pf th 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`lgited States, the underlying security for which is guaranteed by an agency or ins entality of the United States or letters of credit issued by a federal home loan bank. The District'has entered into dine or more collateral security agreements with depository institutions that are more restrictive than state laws as to the type of securities with which the District's deposits may be collateralized. At May 31, 2021, none of the District's bank balances were exposed to custodial credit risk. Investments The District may legally invest in obligations of the United States or its agencies and instrumentalities, direct obligations of Texas or its 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 States, 17 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 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 deemed at any tune. Texas CLASS attempts to minimize its exposure to market and credit risk through the uke ofivarious strategies and credit monitoring techniques and limits its investment irony issuer to the: top';vo ratings issued by nationally recognized statistical rating organizations. , At May 31, 2021, the District has the following investments nd maturities: Maturities inYears Less Than Type Fair Value 1-5 6-10 More Than 10 Texas CLASS $ 149,403 5 149.403 $ 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 mod gge obligations with a final maturity date in excess of 10 years and interest rate indexed collke ed tndrtgage obligations. The external investment pool is presented as an investment with a ma ty of less than one year because it is redeemable in full immediately. CreditBisk. Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill its obligations. At May 31, 2021, the District's investments in Texas CLASS were rated "AAAm„ Standard & Poor's. Summary of Carrying Values The carrying values of deposits and investments shown previously are included in the balance sheet at May 31, 2021, as follows: Carrying value: Deposits Investments Total $ 87,085 149,403 $ 236,488 18 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 Investment Income Investment income of $72 for the year ended May 31, 2021, consisted of interest income. Fair Value Measurements The District has the following recurring fair value measurements as of May 31, 2021: • Pooled investments of $149,403 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, 2021, is*esenied as follows: Governmental Activities Capital assets, non -depreciable: Land and improvements rfp Note 4: Long-term Liabilities 'Balances, Balances, Beginning End of Year Additions of Year 1 595,072 $ 0 $ 595,072 Changes in long-term liabilities for the year ended May 31, 2021, were as follows: Balances, Balances, Amounts Beginning End Due in Governmental Activities of Year Increases Decreases of Year One Year Bonds payable: General obligation bonds $ $ 2,500,000 $ - $ 2,500,000 $ Less discounts on bonds 56.651 - 56,651 Due to developer, advances Due to developer, construction 0 2,443,349 2,443,349 194,767 50,033 244,800 9,447,013 5,647,399 2,134,573 12,959,839 0 Total governmental activities long-termliabilities $ 9,641,780 $ 8,140,781 $ 2,134,573 $ 15,647,988 $ 0 19 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 General Obligation Bonds Road Series 2021 Amount outstanding, May 31, 2021 $2,500,000 Interest rates 1.20% to 3.00% Maturity dates, serially September 1, beginning/ending 2022/2050 Interest payment dates March 1/ September 1 Callable date* September 1, 2027 *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 3I, 2021: Year Principal Interest Total 2022 2023 2024 2025: 2026 2027-2031 2032-2036 2037-2041 2042-2046 2047-2051 - $ 57,917 $ 57,917 65,000 62,793 127,793 65,000 61,964 126,964 65,000 61,038 126,038 65,000 59,998 124,998 345,000 280,270 625,270 395,000 237,822 632,822 410,000 185,199 595,199 490,000 124,649 614,649 600,000 46,500 646,500 Total $ 2,500,000 $ 1,178,150 $ 3,678,150 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. 20 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 Bonds voted: Water, sewer and drainage facilities Road and paving facilities Refunding bond authorization Bonds sold: Road and paving facilities Due to Developer The developer of the District has constructed facilities on beha the of storm water detention and recreational facilities, the District c nveys operation and the District has agreed to reimburse the developer for thes1 co interest to the extent approved by the Commission from,tke proceeds of fn District's engineer estimates reimbursable costs for cainple ed pro amounts have been recorded in the fmancial statements as I $ 71,400,000 106,600,000 178,000,000 2,500,000 istrict. 'Yx r the exception ese facilities to the City for ction costs and e bond sales. The ects are $12,959,839. These g-term liabilities. Note 5: Significant Bond Order and Commission"Requirements The Bond Order 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, 2021, the District did not levy an ad valorem debt serir.tax rate. The j istrict anticipates levying a debt service tax during the year ending May 3 I , 2022 . Note 6: Maintenance Taxes At an election held November 3, 2015, voters authorized a maintenance tax not to exceed $1.00 per $100 valuation on all property within the District subject to taxation. During the year ended May 31, 2021, the District levied an ad valorem maintenance tax at the rate of $0.50 per $100 assessed valuation, which resulted'in a tax levy of $117,677 on the taxable valuation of $23,535,393 for the 2020 tax year. The maintenance tax is being used by the general fund to pay expenditures of operating the District. 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. 21 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 Note 8: Economic Dependency The District's developer owns the majority of the taxable property in the District. The District's ability to meet its obligations is dependent on the developer's ability to pay property taxes. Since inception, the developer has advanced $244,800 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 fmancial statements. Note 9: Utility and Road Agreement The District and the City entered into that certain Utility and Road Agree -men dated February 17, 2015 (the Utility Agreement) which provides the terms for the provi ion'a :.rater, sewer, drainage and road facilities (the Facilities) within the D i strict,.rsuant to thA ement, the Facilities are to be constructed by the developer and, with the exceptiian of Storm eater detention and recreational facilities, subsequently conveyed to the City for operation. ater and sewer service to the District is provided by the City. The City has agreed to provide the Distr.ct with its ultimate requirements for water supply and wastewater treatment calla iwithout'�apital charges of any kind. Under the Utility Agreement, the District is author* to issue blinds 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 ermsof consent to the creation of the District. Lastly, the Utility Agreement restrict e' Cit +'s ability toilifissolve 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 agreemeritwith 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 10: Contingencies The developer ofthe District is constructing water, sewer, drainage and road facilities within the boundaries of the District. The District has agreed to reimburse the developer for a portion of these costs, plus interest, from the proceeds of future bond sales, to the extent approved by the Commission. The District's engineer has stated that current construction contract amounts are approximately $1,150,000. This amount has not been recorded in the fmancial statements since the facilities are not complete or operational. 22 Rock Prairie Management District No. 2 Notes to Financial Statements May 31, 2021 Note 11: Uncertainties As a result of the spread of the SARS-CoV-2 virus and the incidence of COVID-19, economic uncertainties have arisen which may negatively affect the financial position and results of operations of the District. The duration of these uncertainties and the ultimate fmancial effects cannot be reasonably estimated at this time. 23 Required Supplementa , Information y ,01 •�5 0)1 sycz'J Rock Prairie Management District No. 2 Budgetary Comparison Schedule — General Fund Year Ended May 31, 2021 Variance Original Favorable Budget Actual (Unfavorable) Revenues Property taxes $ 60,000 $ 116,829 $ 56,829 Penalty and interest 1,738 1,738 Investment income 30 66 36 Total revenues 60,030 118,633 58,603 Expenditures Service operations: Professional fees 90,000 Contacted services \:6,600 Other expenditures 13,463 Total expenditures , 110,063 94,471 (4,471) 23,538 (16,938) 13,843 (380) 131,852 (21,789) Deficiency ofRevenues Over Expenditures (50,033) (13,219) 36,814 Other Financing Sources Developer advances received ' Excess ofRevenues and Other Financing Sources Ove r Expe nditu re s and Other Financing Uses 36,814 36,814 50,033 50,033 Fund Balance, Beginning of Year 33,826 33,826 Fund Balance, End of Year $ 33,826 $ 70,640 $ 36,814 24 Rock Prairie Management District No. 2 Notes to Required Supplementary Information May 31, 2021 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 2021. 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. C*4::1C))f 25 Other Informaf on cY Rock Prairie Management District No. 2 Other Schedules Included Within This Report May 31, 2021 (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 11-23 [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 Ye [X] Changes in Long-term Bonded Debt [X] Comparative Schedule of Revenues and Expenditures General Fund and Debt Service Fund 3 [X] Board Members, Key Personnel and Consultants 26 Rock Prairie Management District No. 2 Schedule of Services and Rates Year Ended May 31, 2021 1. Services provided by the District: _Retail Water _ Wholesale Water Drainage _ Retail Wastewater _ Wholesale Wastewater _ Irrigation X Parks/Recreation Fire Protection Security Solid Waste/Garbage Flood Control X Roads _ Participates in joint venture, regional system and/or wastewater service (other than emergency interconnect) Other The City of College Station provides services to the District's customers pursuant to that certain Utility and Road Agreement dated February 17, 2015. between the District and the City of.College Station. 27 Rock Prairie Management District No. 2 Schedule of General Fund Expenditures Year Ended May 31, 2021 Personnel (including benefits) $ Professional Fees Auditing Legal Engineering Financial advisor Purchased Services for Resale Bulk water and wastewater service purchases Regional Water Fee Contracted S ervices Bookkeeping General manager Appraisal district Tax collector Security Other contracted services Utilities Repairs and Maintenance Administrative Expenditures Directors' fees Office supplies Insurance Other administrative expenditures Capital Outlay Capitalized assets Expenditures not capitalized Tap Connection Expenditures SolidWaste Disposal Fire Fighting Parks and Recreation Other l+Ependitures =Aar $ 10,800 58,929 24,742 )00t ;�14,538 F. 98 7 202 934 3,536 9,373 94,471 23,538 13,843 Total expenditures $ 131,852 28 Rock Prairie Management District No. 2 Schedule of Temporary Investments May 31, 2021 Accrued Interest Maturity Face Interest Rate Date Amount Receivable Debt Service Fund Texas CLASS 0.07% Demand $ 64,791 $ Capital Projects Fund Texas CLASS 0.07% Demand 84,612 Totals $ 149,403 A\4111" 29 Rock Prairie Management District No. 2 Analysis of Taxes Levied and Receivable Year Ended May 31, 2021 Receivable, Beginning ofYear Maintenance Taxes $ 0 2020 Original Tax Levy 116,563 Additions and corrections 1,114 Adjusted tax levy Total to be accounted for Current year tax collections Receivable, end of year 117,677 117,677 (116,829) $ 848 Receivable, by Year 2020 $ 848 30 Rock Prairie Management District No. 2 Analysis of Taxes Levied and Receivable (Continued) Year Ended May 31, 2021 2020 2019 2018 2017 Property Valuations Land $ 14,785,710 $ 14,912,916 $ 9,910,610 $ 4,096,653 Improvements 8,162,825 - - Personal property 617,829 909,670 309,850 Exemptions (30,971) (1,162,600) (328,210) (104,096) Total property valuations $ 23,535,393 $ 14,659,986 $ 9,892,250 $ 3,992,557 Tax Rates per $100 Valuation Maintenance tax rates* Tax Levy Percent of Taxes Collected to Taxes Levied** $ 0.5000 $ 0.5000' r$ 0.5000 $ 0.5000 $ 117,677 1,300:.: $ ' 49,461 $ 19,963 99% 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. 31 Rock Prairie Management District No. 2 Schedule of Long-term Debt Requirements by Years May 31, 2021 Road Series 2021 Due During Principal Interest Due Fiscal Years Due June 1, Ending May 31 December 1 December 1 Total 2022 $ - $ 57,917 $ 57,917 2023 65,000 62,793 127,793 2024 65,000 61,9 •; _, t 126,964 2025 65,000 61,038 n, 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 56,140126,140 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 $ 2,500,000 $ 1,178,150 $ 3,678,150 32 Rock Prairie Management District No. 2 Changes in Long-term Bonded Debt Year Ended May 31, 2021 Interest rates Dates interest payable Maturity dates Bonds outstanding, beginning of current year Bonds sold during current year 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 Bond authority: Amount authorized by voters Amount issued Remaining to be issued Tax Bonds $ 71,400,000 $ $ $ $ 71,400,000 $ Road and Paving Bonds Debt service fund cash and temporary investment balances as of May 31, 2021: Bond Issue Road Series 2021 1.20% to 3.00% March 1/ September 1 September 1, 2022/2050 $ - 2.500,000 $ 2,500,000 Refunding Bonds 106,600,000 $ 178,000,000 2,500,000 $ 104,100,000 $ 178,000,000 $ 65,291 Average annual debt service payment (principal and interest) for remaining term of all debt: $ 122,605 33 Rock Prairie Management District No. 2 Comparative Schedule of Revenues and Expenditures — General Fund Two Years Ended May 31, Amounts Percent of Fund Total Revenues 2021 2020 2021 2020 General Fund Revenues Property taxes $ 116,829 $ 73,312 98.5 % 83.7 % Penalty and interest 1,738 3,092 1.4 3.5 Investment income 66 54 0.1 0.1 Other income 11,156 12.7 Total revenues 118,633 87,614 ,sue '3 00 0 100.0 Expenditures Service operations: Professional fees 94,471 97,192 79.6 110.9 Contracted services 23,538 19,256 . # 19.8 21.9 Other expenditures 13,843 ,_, 9,001 11.7 10.3 1. Total expenditures 131,852 125JA9 111.1 143.1 Deficiency of Revenues Over Expenditures (•33,219] [37,835) (11.1) % (43.1) Other Financing Sources . t Developer advances "0,Q3 67,490 Excess oiRevenues and Other Financing Sour Over Expenditures and Other Financing ii� 36,814 29,655 Fund Balance, Beginning of Year 33,826 4,171 Fund Balance, End of Year $ 70,640 $ 33,826 Total Active Retail Water Connections ilb N/A N/A 11 Total Active Retail Wastewater Con nee ens N/A N/A 34 Rock Prairie Management District No. 2 Schedule of Revenues and Expenditures — Debt Service Fund Year Ended May 31, 2021 Amounts Debt Service Fund Percent of Fund Total Revenues Revenue Investment income $ 3 100.0 % Other Financing Sources General obligation bonds issued 63,182 Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses 63.185 Fund Balance, Beginning of Year Fund Balance, End of Year 63,_I S 35 Rock Prairie Management District No. 2 Board Members, Key Personnel and Consultants Year Ended May 31, 2021 Complete District mailing address: Rock Prairie Management District No. 2 c/o Schwartz, Page & Harding, L.L.P. 1300 Post Oak Boulevard, Suite 1400 Houston, Texas 77056 District business telephone number: 713.623.4531 Submission date of the most recent District Registration Form (TWC Sections 36.054 and 49.054): July 11, 2019 Limit on fees of office that a director may receive during a fiscal year: $ 0 Term of Office Elected & Expense Title at Board Members Expires Fees* XReimbursements Year-end Appointed 06/19- Uri Geva 06/23 $, 0 $ 0 President Appointed 06/19- Vice Hays Glover 06/23 0 0 President Appointed 06/19- Assistant Mark L ndeniulder 06/23 0 0 Secretary Appointed 02/20- Term William Lewis 05/21 0 0 Expired Appointed 06/17- Term Jonathan Stark 05/21 0 0 Expired *The District is a management district, therefore, no directors' fees are paid. 36 Rock Prairie Management District No. 2 Board Members, Key Personnel and Consultants (Continued) Year Ended May 31, 2021 Fees and Expense Consultants Date Hired Reimbursements Title Tax Assessor/ B&A Municipal Tax Service, LLC 05/02/17 $ 11,902 Collector BKD, LLP 10/08/20 21.200 Auditor Legislative Brazos Central Appraisal District Action .1,798 Appraiser Edminster, Hinshaw, Russ and Associates, Inc. 08/18/15 34,098 Engineer Municipal Accounts & Consulting, L.P. 08/18/15 19,068 Bookkeeper Post Oak Municipal Advisors LLC Schwartz, Page & Harding, L.L.P. Investment Officers Mark M. Burton and Ghia Lewis Financial 05/10/18 73,229 Advisor 62,187 General Counsel 07/30/15 73,229 Bond Counsel 08/18/15 N/A Bookkeepers 37 EXHIBIT "E" Board of Directors Rock Prairie Management District No. 2 Brazos County, Texas In planning and performing our audit of the financial statements of Rock Prairie Management District No. 2 (the District) as of and for the year ended May 31, 2021, in accordance with auditing standards generally accepted in the United States of America, we considered the District's internal control over fmancial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the p ose .of expres,, g an opinion on the effectiveness of the District's internal control. Accordingly, we do no express a 'opinion on the effectiveness of the District's internal control. Our consideration of internal control was for the limited •. i • se descried ' :i e preceding paragraph and was not designed to identify all deficiencies in intern: f con 1 tha `u. ight e significant deficiencies or material weaknesses and, therefore, there can be no ass ce that all deficiencies, significant deficiencies or material weaknesses have been identified. Howe se as discussed below, we identified certain deficiencies in internal control that we to b.eiateriallveaknesses. A deficiency exists when the design or operatiariof a ::a trol does not allow management or employees, in the normal course of performing their a edfunctions, to prevent or detect and correct misstatements of the District's financ a control necessary to meet a contol so that, even if the control operate operation exists when a properly dest�ged c performing the control does not*possesslb enecessary authority or competence to perform the control effectively. A material weaknessis ak is a reasonable2possibility, prevented or detected and, Corr tatements on a timely basis. A deficiency in design exists when ve is missing or an existing control is not properly designed a control objective would not be met. A deficiency in ntrol does not operate as designed or when the person a combination of deficiencies, in internal control, such that there material misstatement of the District's fmancial statements will not be d on a timely basis. A significant deficiency Iva deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We observed the following matters that we consider to be material weaknesses. Material Weaknesses The District's management consists of an elected Board of Directors (the Board). Day-to-day operations are performed by private entities (Consultants) under contract with the District. The Board supervises the performance of the Consultants; however, although Consultants can be part of the District's system of internal control, the Consultants are not members of management. Per auditing standards, management is responsible for design and implementation of the District's system of internal controls. Board of Directors Rock Prairie Management District No. 2 Page 2 Per auditing standards, one of the primary controls within the system of internal controls is related to the preparation of the fmancial statements. Management of the District is responsible for either preparing the fmancial statements or having the knowledge to determine whether the fmancial statements have been properly prepared and are free from potential misstatement. The absence of this expertise within management, or a Consultant of the District hired to perform this service, is considered by auditing standards to be a material weakness in internal control over fmancial reporting. During the course of performing an audit, it is not unusual for the auditor to prepare various journal entries to correct and present the fmancial statements on the government -wide basis of accounting. Additionally, we noted adjustments to various accounts, such as fund balance, interfund transfers and other expenditures, which were necessary in order for the fund fmancial stat-r� -nts to be in conformity with generally accepted accounting principles. The inability of management a Consultant of the District hired to perform this service) to detect these necessary adjus as is c o 'dered by auditing standards to be a material weakness in internal control over financial redo tk Finally, management, or a Consultant of the District, does not prepare the capital asset register or post adjustments related to the presentation of the capital assets ' $. i e gov ent-wide fmancial statements. As management is not preparing or reviewing and does ,,co si ve th- .' xpertise to prevent, detect and correct related significant potential misstatements, this '{ con dere ' by auditing standards to be a material weakness. The material weaknesses noted above, if n omission of a required disclosure in the financi Management's Response The District responds that the au. therein, are prepared in response to . prompted by any other circ District's Board. Psr As you know, the_ Board has, sincehe inception of the District, engaged the auditor to perform the District's audjtrand to prepare the financial statements and capital asset schedules upon which the audit is based. It is r_• understantding that this is the usual and customary practice for smaller special districts in Texas, as it is more cost effective to engage Consultants to perform such services than to employ persons (who would constitute district management) to perform same. It is also the Board's understanding that, under the requirements of SAS 115, the engagement of the auditor to perform these services resulted in the Management Let{er because (1) the Board members are not able to prevent, detect and correct a misstatement in the preparation of the District's fmancial statements or its capital asset schedules or to make adjustments to same, and (2) the Board has not implemented controls to prevent, detect and correct a misstatement in the preparation of the District's fmancial statements or capital asset schedules, such as the hiring of an employee or the engagement of another Consultant to prepare the District's fmancial statements or capital asset schedules. ected, scould result in a material misstatement or r:11. = g • ent Letter, and the material weaknesses identified men' '$ $ Auditing Standards No. 115 (SAS 115) and are not entified during the course of the audit and disclosed to the Board of Directors Rock Prairie Management District No. 2 Page 3 With respect to items (1) and (2) identified above, the Board responds that its members are appointed or elected in accordance with the requirements set forth in the Texas Water Code, and that such members do not necessarily have the ability to prevent, detect and correct a misstatement in the preparation of the District's fmancial statements or its capital asset schedules or to make adjustments to same. Further, the Board responds that it is a small government unit and that it engages the auditor based upon the auditor's professional qualifications, and in light of such qualifications, does not feel that the addition at this time of an employee or the engagement of a Consultant to prepare the District's fmancial statements and capital asset schedules (as a form of control) would be cost effective. Additionally, the Board adds that the District does not have any employees, but rather engages Consultants who possess industry knowledge and expertise to provide fmancial services, including its bookkeeper, auditor and fmancial advisor, as well as Consultants that provide legal, engineering, and operation and maintenance services. In particular, the District's bookkeeper presents periodic fmanc'alinformation (unaudited) to the Board for review, which information generally reflects income, disbursemmee adjustments, and the status of investments relative to the District's various accounts. Management's written response to the material weaknesses identified in bur audit has not been subjected to the auditing procedures applied in the audit of the financial stag cents, and accordingly, we express no opinion on it. This communication is intended solely for the info—. ation and use of management, the Board of Directors and the Texas Commission on Environmental v uali , dais not intended to be, and should not be, used 14. by anyone other than these specified parties. 2021 EXHIBIT "F" n EHRA ‘.... ENGINEERING THE FUTURE SINCE 1936 ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 ENGINEERING REPORT OCTOBER 2021 10. Engineering Report, including: TBPE No. F-726 TBPLS No. 10092300 a. Authorize the design and/or advertisement of bids for construction of facilities within the District and approval of related storm water plans, including District. 1. Status of design of Lakeway Drive Reserve, Phase 200 Board Action: None. 2. Midtown City Center Utility Extension Board Action: Authorize advertisement to bid. b. Authorize the award of/or concurrence in award of contracts for the construction of facilities within the District, authorizing acceptance of Texas Ethics Commissions ("TEC") Form 1295 and approval of any storm water permits. Board Action: None. EHRA Engineering 1 10011 Meadowglen Lane l Houston, Texas 77042 1 t 713.784.4500 1 f 713.784.4577 REALIZING VISIONS • DESIGNING COMMUNITIES • ENGINEERING THE FUTURE www.EHRAinccom Rock Prairie Management District No. 2 October 2021 Page 2 c. Status of construction of facilities to serve land within the District, including the approval of any pay estimates and change orders and authorize acceptance of TEC Form 1295, including: 1. Irrigation of Phase I Park Development by Green Teams, Inc. Contractor Contract Days Approved Extensions Contract Completion Date Contract Bid Amount Change Order No. 1 Change Order No. 2 Change Order No. 3 Total Contract Amount Pay Request No. 1 Pay Request No. 2 Total Pay Requests Remaining on Contract Green Teams, Inc. 45 0 5/10/2020 $435,305.00 $5,760.00 $5,756.00 $16,400.00 $463,221.00 $231,304.50 S157.208.40 $388,512.90 $74,708.10 days days Date Annroved 3/27/2020 9/10/2020 9/10/2020 9/10/2020 7/9/2020 9/10/2020 Comment Notice to Proceed Issued Sleeves & Meter Sieves & Irr. Heads Bore Under Road 16.13% of Contract Remaining Construction is complete - waiting for Final Pay Request to be submitted by contractor. Board Action: None. 2. Midtown Reserve, Phase 106 by Greens Prairie Investors, Ltd. Contractor Contract Days Approved Extensions Contract Completion Date Contract Bid Amount Total Contract Amount Greens Prairie Investors, Ltd. 160 0 Total Pay Requests Remaining on Contract Board Action: None. S684.947.80 $684,947.80 $0.00 $684,947.80 days days Date Anoroved Comment 100.00% of Contract Remaining EHRA Engineering 110011 Meadowglen Lane I Houston, Texas 77042 I t 713.784.4500 I f 713.784.4577 EHRA ENGINEERING THE FUTURE SINCE 1936 Rock Prairie Management District No. 2 October 2021 Page 3 3. Midtown Reserve, Phase 107 by Greens Prairie Investors, Ltd. Contractor Greens Prairie Investors, Ltd. Contract Days 120 days Approved Extensions 0 days Contract Completion Date Date Annroved Comment Contract Bid Amount 5728.238.70 Total Contract Amount 5728,238.70 Total Pay Requests $0.00 Remaining on Contract $728,238.70 100.00% of Contract Remaining Board Action: None. d. Acceptance of site and/or easement conveyances for facilities to be constructed for the District and acceptance of facilities for operation and maintenance purposes. 1. Special Warranty Deed(s) conveying various recreational sites to the District. Board Action: Approve Special Warranty Deed(s). e. Status of acceptance by the City of College Station, Texas for maintenance of streets. Board Action: None. EHRA Engineering 10011 Meadowglen Lane' Houston, Texas 77042 t 713.784.4500 f 713.784.4577 EHRA ENGINEERING THE FUTURE SINCE 1936 riCTIMOT SCA t ' •1 ME aft rrll . 1++ a fear Sims. 1f Mr Or ft NT1 .1 w a. a, I I MAE VP r ft3 r. .4111 10,a VS]17 n 1r- K fT are N Mall sw .1" art I N War 10F a re ✓ Wale er•fr Wei r .d.1 .rr a7i 41 :w r r e.; A SS* leer WI AI wdr in al Iair l.A.41 *Tv cc Co•lwR Yp y um a..an IeaHll vert MAC 11.t 1910 LIU le 'AT mit i•1•r 4+0' 1µa. t. un » 11 •CK diet' aa.fs/r f �rl 1:. -'i.I rra[t ::m 'S. .:1...,. • i.'% -nt. 1•.. ar> .w lea 4 Y>1 AM 1:[t ILL uta4i fear aaR d1rit 7%7 7ElL• - • r I N •rr L l•tms. r>a Mal; WM.% /Crr 1 feel i � Y � SHEET INDEX 0a101AfIc`4 ,.: Y Sal 1P 1MILL w 4. 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Yar> aV/.. rear lawarry,our,v:lttaa, 4 if I or 4t#W.ap ai,a lean arao le.µ. r trw-weir 1411." id se err era aa.�31� c.AerO[1n:4. 4M1Fe•laa 1W..Kre•w. lea die1r_ri rill. Tom.. Y! 1R.41 erOldrt Mirada. R.EVL W PRELIMINARY PLAN MIDTOWN RESERVE SUBDIVISION 109.600 ACRES - 563 LOTS P4131r 1N 7.11' Mara Ai-crl3ya9$MaLi CR1 MOM Ri rPAe4llt lei WA Sat 4114 La] asr/.'1t LZ If Ile A4126 • S•1.'rl•1 /r 4o01K.15 11a.10 y 11r .t7.1. IL 1Sf11 e Gte,rr.71 R; 11L11CM 1 L041711 1LOU VOW .1Qa 1: 11V314.1.10.TK ii NIUll Al/>rOatG.1 RUM NI *Ht ALMS xIJZIr ILMESC*I ria4 Ill Waafa0130 lc fella 1af44m UI NO*:t le 411 401.11 1.. A I. IR Ir-Ntri;4] 1.10i1447 11}e1w4C ./ All 1R/ CR] L iar M Lief?LEM !Malt=AL t1 LSj-"r.A1Z. 1>iOXm-]SLOZ, [I10M L..! MIDTOWN art CENTER SUBDIVISION 109.538 ACRES - 31 LOTS M41B!w 141atAi4Ei a1LYU ,Dale Iam.an IL n '14411R e)et rr01!S-.1 194XYta. fRt.C*41 (Arta FAA& FM LYiK 0•01.16 11A111 Irma R1 1111.Wt3 :Loa 1lalld 4.1 4 Cl .ale 1 1OT O WE Ma 1 a•..v.la• :LOT MOM rt. ILIA pries :Lear MACE K 1 rat.Q75 1171 RIM waa11D1 MOP 4n 11I1 a ads 1 terra °itot:CI .lee *Ora R 1D1] Pal0a aK 114! MCt6.4 • 1 tall Mirtld .R e W .KT01 I LOT T UMAS CARLTHERS LEAGUE, A-9 COLLTC3E STATldN.•ARAZOS COUNTY •TExa1S. EtAr► 'y l wel:'�I§TTiY` + P.M 129FITIR fMRf or .1.LLlirrelrn 1.10•11•1. CM. leer Imo 1..•MIME llr a..VL.a It pear 1.. s.lfrrr lit a.41 .IW 'w.1�ar.ad...alr •w1i11.1.1r.r 0.wr- .f.ra.erya r..Yi►n1rg f ma-r datYr �'-M1 '+Air i NI ,d > .. %SAWA air EXHIBIT "G" ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 ORDER ESTABLISHING OFFICE OUTSIDE THE DISTRICT The Board of Directors of the captioned District met at a meeting of said Board held on October 18, 2021, in accordance with the duly posted notice of meeting, with a quorum of Directors present, 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 Glover, thus constituting a quorum when the following business was transacted. It was moved by Director Geva, seconded by Director Lindemulder and unanimously carried that the office of the District for the Board of Directors of Rock Prairie Management District No. 2 be changed to 1300 Post Oak Blvd., Suite 2400, Houston, Texas 77056, which is located outside the boundaries of the District. Said office may be used as the mailing address for the District, and for the transaction of such business as is not required to be done within the District. The aforesaid office is hereby declared to be a public place. The President is authorized to execute and the Secretary to attest this Order on behalf of the Board and District. Passed, ordered and adopted, this 18th day of October, 2021. ATTEST: Secretar , Bo of Directors -2- 599643_2 President, Board of Directors