TAX ASSESSOR/COLLECTOR'S REPORT MINUTES OF MEETING OF THE BOARD OF DIRECTORS

Transcription

1 MINUTES OF MEETING OF THE BOARD OF DIRECTORS September 25,2018 THE STATE OF TEXAS COUNTY OF HARzuS HARRIS COUNTY MLINICIPAL UTILITY DISTzuCT NO. 364 $ $ $ The Board of Directors (the "Board") of Harris County Municipal Utility District ("MUD") No.364 (the "District") met in regular session, open to the public, at the Coles Crossing Community Center, Barker Cypress Road, Cypress, Texas, a designated meeting place outside the boundaries of the District, on Tuesday, September 25, 2018, at 4:00 p.m.; whereupon, the roll was called of the members of the Board, to-wit: Vince DeAngelis Dale R. Trevino Ross A. Crawford Lucinda Henrichson Erin Corken President Vice President S ecretary/investment Officer Assistant Secretary Director All members of the Board were present, thus constituting a quonrm. Also attending the meeting were: Mr. Greg Lentz of Masterson Advisors LLC ("Masterson"), financial advisor for the District; Ms. Erin Garcia of Myrtle Cruz, Inc. ("MCI"), bookkeeper for the District; Ms. Odett McMullen of Bob Leared Interests, Inc. ("Bob Leared"), tax assessor/collector for the District; Mr. Gary Hastings of Municipal Operations & Consulting, Inc. ("MOC"), operators for the District; Mr. John Peyton of Van De V/iele & Vogler, Inc. ("Van De Wiele"), engineers for the District; Ms. Kimberly Hill, resident of the District; and Ms. Robin S. Bobbitt and Ms. Monica A. Garza, attorneys, and Ms. Carla Christensen, paralegal, of Radcliffe Bobbitt Adams Polley PLLC ("RBAP"), attorneys for the District. WHEREUPON, the meeting was called to order at 4:07 p.m. and evidence was presented that public notice of the meeting had been given in compliance with the law. The posted notices of the meeting are attached hereto. This meeting was video recorded by Director Corken for her personal use. APPROVAL OF THE MINUTES The Board first considered approval of the minutes of the regular meeting of August 28, 2018, previously distributed to the Board. Upon motion by Director Crawford, seconded by Director Henrichson, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes of the August 28, 2018 meeting, as presented. TAX ASSESSOR/COLLECTOR'S REPORT Ms. McMullen next reviewed the Tax Assessor/Collector's Report for the month of August, a copy of which is attached hereto. Ms. McMullen reported that as of August 31,2018,

2 the District had collected99.93% of its 2016 tax levy artd99.63% of its 2017 tax levy, compared to 99.54Yo for this same time last year. Ms. McMullen went on to report that the District's 2018 certified value is approximately 5537,940,639 (including owners'opinion of protested value) with an additional $6,917,931 in value that has not yet been certified. Ms. McMullen noted that the current 2018 certified value is lower than the 2017 certified value of $550,972,065. Ms. Hill entered the meeting at this time. Upon motion by Director Cralvford, seconded by Director Henrichson, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax Assessor/Collector's Report, including the payment of the checks listed therein. DET,INOI]ENT TAX ATTORNEY'S REPOR T AND AI]THORTZE TERMINATION OF SERVICE AND COLLECTION OF DELINOUENT TAX ACCOUNTS Ms. McMullen next reviewed the Delinquent Tax Attomey's Report submitted by Perdue Brandon Fielder Collins & Mott, L.L.P. ("Perdue Brandon"), a copy of which is attached hereto. Ms. McMullen reported that letters regarding service termination to accounts eligible for termination due to non-paymefi of 2017 delinquent taxes had been sent out, and that two (2) accounts had been paid in full and one (1) account is on a payment plan. Director DeAngelis then opened the public hearing on the termination of service to the remaining delinquent tax accounts. There being no comments from the public, the public hearing was then adjoumed. In response to a question from Director DeAngelis, Ms. McMullen stated that she will contact Perdue Brandon to request status updates on the collection of the delinquent personal property taxes from Cypress Paints and BC Pharmacy Inc. for tax years 2014 through20i7. Upon motion by Director Crawford, seconded by Director Henrichson, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Delinquent Tax Attomey's Report and to authorize termination of water service to two (2) accounts due to non-payment of delinquent 2017 taxes, if such accounts have not yet been paid in tull. DISCUSS 2018 TAX RATE, HEAR FINANCIAL ADVISOÀ'S RECOMMENDATION. OF EFFECTIVE TAX ESTABLISH PUBLIC HEARING REGARDING 2018 TAX RATE Mr. Lentz then reviewed the 2018 Tax Rate Analysis with the Board, a copy of which is attached hereto. Mr. Lentz reported that the District's 2018 assessed taxable value is approximately $544,858,570 (of which 532,618,795 is still uncertified), which is a decrease from the2017 assessed taxable value of $550,972,065. }l4r.lentz went on to explain that the District's 2017 total tax rate was $0.455 per $100 of assessed valuation, comprised of $0.275 per $100 of assessed valuation for debt service purposes and $0.180 per $100 of assessed valuation for maintenance and operation purposes. }l4r.lentz noted that the 2018 rollback rate is $ oo26z3sr 2

3 Mr. Lentz further explained that setting a 2018 total tax rate of would mean the average homeowner would pay approximately the same in District taxes as they paid in20l7. An extensive discussion ensued regarding setting an appropriate tax rate that balances taxpayers' concerns while also maintaining the District's operating reserves. It was the consensus of the Board to publish a proposed 2018 total tax rate of $0.455 per $100 of assessed valuation, comprised of $0.275 per $100 of assessed valuation for debt services puqposes and $0.180 per $100 of assessed valuation for maintenance and operation purposes. Ms. Bobbitt then explained that Section , Texas V/ater Code, as amended, requires utility districts to call a public hearing to discuss the proposed tax rate and to publish notice of the proposed tax rate before levying the tax rate. Ms. Bobbitt stated that such hearing will be held at the Board's next regular meeting, which will be held on Tuesday, October 23'd, and that the Order Setting Rate and Levying Tax for 2018 will be adopted at such Board meeting after the conclusion of the public hearing. Upon motion by Director Crawford, seconded by Director Trevino, after full discussion and the question being put to the Board, the Board voted unanimously to authorize the Tax Assessor/Collector to publish notice of the proposed 2018 total tax rate as $0.455 per $100 assessed valuation, and notice of the public hearing on such tax rate in a newspaper with general circulation in the area of the District at least seven (7) days prior to the public hearing date of October 23,2018. BOOKKEEPER'S REPORT Ms. Garcia next reviewed the Bookkeeper's Report with the Board, including the revenues and expenses of the District, the budget comparison, the investment report and the checks being presented for payment, copies of which are atlached hereto. In response to a previous question from Director DeAngelis, Ms. Garcia presented to and reviewed with the Board a spreadsheet of fees the District has paid to Harris County Municipal Utility District No. 360 ("HC 360") and Hanis County Municipal Utility District No. 365 ("HC 365") over the previous 12 months for water and wastewater capacity, a copy of which is attached to the Bookkeeper's Report. An extensive discussion ensued. Ms. Bobbitt agreed to contact HC 365's bookkeeper and attorney to request that invoices be provided to the District on a timelier basis. In response to a question from Director Trevino, Ms. Christensen stated that the District is currently paying HC , per year ($68.93 per day) for the lease of water capacity pursuant to the Agreement for the Lease of Interim V/ater Capacity in the Coles Crossing Joint V/ater Facilities (the "Joint WP") by and between the District and HC 365. Ms. Garcia then presented to and reviewed with the Board a spreadsheet comparison of fees the District has collected and paid to HC 365 over the previous 12 months for the North Harris County Regional Water Authority pumpage fees, a copy of which is attached to the Bookkeeper's Report. A brief discussion ensued. Ms. Garcia went on to report that MCI has renewed the District's Certificate of Deposit at Spirit of Texas Bank for 2.35yo, which is an increase from 1.I0% t 3

4 DRAFT Upon motion by Director Trevino, seconded by Director Crawford, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Bookkeeper's Report and to authorize payment of the checks reflected therein. OPERATOR'S REPORT Mr. Hastings then reviewed with the Board the Operator's Report for the period ending August 16,2018, along with a list of delinquent accounts, copies of which are attached hereto. Mr. Hastings reported that there are currently 1,836 connections in the District and that the water accountability for the month was 104.3o/o. Mr. Hastings added that no operational issues had been encountered in the District during the prior month. Mr. Hastings next addressed various billing questions from Director DeAngelis. Mr. Hastings agreed to check the accuracy of the address of Barrow Cove where a new concrete driveway had been installed. In response to a question from Director DeAngelis, Mr. Hastings stated he would follow up on the repairs done at Barrow Cove. Mr. Hastings then reported that the Sampson Lift Station flow meter gauge needs to be repaired at an estimated cost of $700 or replaced at an estimated cost of $4,500. A brief discussion ensued regarding whether HC 365 still needs flow data from the Sampson Lift Station flow meter. It was then determined that the meter would be repaired. Mr. Hastings next stated that he will coordinate with Director Henrichson regarding holding a Water Smart Program approved presentation in the near future. Mr. Hastings then reviewed with the Board a list of delinquent accounts recommended for termination. Upon motion by Director Crawford, seconded by Director Trevino, after full discussion and the question being put to the Board, the Board voted unanimously to: 1) approve the Operator's Report; 2) authorize the repair of the Sampson Lift Station flow meter gauge at an estimated cost of $700; and 3) authorize termination of service to the delinquent accounts in accordance with the provisions of the District's Rate Order. ENGINEER'S REPORT Mr. Peyton then reviewed the Engineer's Report with the Board, a copy of which is attached hereto. Mr. Lentz exited the meeting at this time. JOINT FACILITIES F PROPOSED EXPANSIONS O Mr. Peyton first reported that Schier Construction ("Schier") has begun construction of the new Joint WP water well. Mr. Peyton stated that Schier had submitted Pay Estimate No. 1 in the amount of $76,338 for erection of the drilling sound wall. Mr. Peyton went on to report that the pilot hole for the new water well has also been drilled and logged r 4

5 Mr. Peyton next reported that HC 365's engineer, Sander Engineering ("Sander"), is continuing to work on the plan preparation for the Joint Wastewater Treatment Plant (the "Joint WWTP") expansion to 0.97 million gallons per day. Mr. Peyton added that Sander had previously submitted the Joint V/WTP expansion plans to the City of Houston (the "City") for approval and received comments on June 25, Mr. Peyton further reported that he had contacted Sander regarding the Board's frustration and disappointment with the amount of time it has taken for Sander to respond to the City's comments. Mr. Peyton stated that Sander is currently addressing the City's comments and has submiued the revised plans to the Texas Commission on Environmental Quality (the "TCEQ"), but is awaiting completion of the structural/mechanical modifications to the electrical drawings prior to resubmitting to the City. Mr. Peyton next reminded the Board that Sander had completed the survey work on the Joint Detention Channels and is preparing plans to regrade such channels to the original flow lines. Mr. Peyton added that construction on the project is expected to commence in November. Mr. Peyton then reported that Harris County (the "County") anticipates selecting a consultant sometime in December in order to plan for the flood mitigation and drainage improvement projects to be funded with future County bonds and FEMA grant funds. Mr. Peyton further reported that the County is currently focused on getting flood and drainage projects qualified for the FEMA }Jazard Mitigation Grant Program prior to the applicable deadlines. Director Henrichson then reported on her attendance at recent meetings regarding the County's proposed flood mitigation and drainage improvement projects. Director Henrichson then informed the Board that Mr. Jim Blackburn, a lawyer and professor at Rice University, is hosting a meeting on October 2nd to discuss flooding matters and proposed flood mitigation projects. Upon motion by Director Crawford, seconded by Director Henrichson, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer's Report. Ms. Garcia exited the meeting at this time REVIEW ADOPTION OF ED RATE ORDER An extensive discussion then ensued regarding the District's current rate structure for Residential Users (as defined in the District's Rate Order) and specifically whether the cunent flat monthly sanitary sewer rate of $11.00 is sufhcient to cover the District's treatment costs. Upon motion by Director Henrichson, seconded by Director Crawford, after full discussion and the question being put to the Board, the Board voted four (a) votes in favor and one (1) vote opposed, with Director Corken voting in opposition, to increase the District's Residential monthly sanitary sewer usage rate from $11.00 to $13.00 effective October 1,2018. A copy of the Amended Rate Order is attached hereto

6 OF PRO Ms. Bobbitt next reported that her office is in the process of revising and updating the District's current Policy, Procedures and Application for Water and Sewer Service/Annexation (the "Policy") and anticipates providing the proposed Policy to the Board prior to the next meeting. Ms. Hill exited the meeting at this time Ms. Bobbitt next reminded the Board and consultants that the next meeting is scheduled for Tuesday, October 23,2018. There being no further business to come before the Board, the meeting was adjourned at 5:57 p.m. PASSED, APPROVED AND ADOPTED this 23'd day of October,2018 (D tè5 o (J #.L -{ c) Board of *