‹ Harris County Improvement District No. 14 · All districts' issues
question
Bonds
$18,000,000
2 conflict questions
Obtain the auditor's engagement terms and fee for the developer reimbursement report.
30 TAC §293.70 (CPA procedures before reimbursement). Good practice: an independent review of the report by someone without a stake in the payment.
The board action behind it
2025-10-21: Approved Preliminary Official Statement and Official Notice of Sale for the $10,000,000 Series 2025A Unlimited Tax Bonds and $8,000,000 Series 2025B Unlimited Tax Recreational Bonds; appointed Bank of New York Mellon Trust Company, N.A. as Paying Agent/Registrar; authorized advertisement of the sale for November 18, 2025; engaged the auditor to prepare a developer reimbursement report; authorized the engineer to request TCEQ inspection
What else happened at that meeting
The Board held a public hearing on the 2025 tax rate, at which no members of the public spoke, and adopted a total rate of $1.35 per $100 of assessed valuation: $0.50 for water, sanitary sewer, and drainage debt service, $0.12 for road debt service, and $0.73 for operations and maintenance. It approved the preliminary official statement and authorized advertising the sale of $10,000,000 Series 2025A Unlimited Tax Bonds and $8,000,000 Series 2025B Unlimited Tax Recreational Bonds for November 18, 2025. The Board approved two Storm Water Solutions proposals, for extra swale maintenance and for two signs, and authorized letters to homeowners about use of the Blue Stem Manor overflow swale. It also accepted a deed conveying landscape reserves in Sections 15 and 16 to the District.The law and guidance in force on 2025-10-21
| CPA performs set procedures on every developer item before bond money is paid; report to TCEQ within 10 days of board approval 30 TAC §293.70
§293.70: Same text in force then and now |
Shown | The Board engaged the district's auditor to prepare the developer reimbursement report (p.2). For the 2025B park bonds, which need no TCEQ approval (Local Gov't Code §375.208), the rule may not apply; doing it anyway is good practice. |
| TCEQ approval of the water, sewer and drainage bonds §375.208: Same text in force then and now§49.181: Same text in force then and now | Not shown in the record | The Board authorized BGE to request a TCEQ inspection; the TCEQ order approving bond application no. 4 is not mentioned in the 2025 minutes. |
| Professional services on qualifications Gov't Code §2254.003
§2254.003: Same text in force then and now |
Not shown in the record | Paying agent appointed on the financial advisor's recommendation; fee not stated. |
Who's involved
Masterson Advisors LLC (financial advisor)
The Bank of New York Mellon Trust Company, N.A. (paying agent/registrar)
Forvis Mazars, LLP (auditor)
BGE, Inc. (district engineer (presented and recommended))
Allen Boone Humphries Robinson LLP (ABHR) (general counsel)
Dunham Pointe Development LLC (developer)
Possible conflicts
Forvis Mazars, LLP: The same firm audits HCID 14 and HCID 13 and prepares the developer reimbursement report. (Consultant schedules in the FY2025 audits of HCID 14 (annual-financial-report_FYE-2025-11-30.pdf, PDF p.48) and HCID 13 (hcid013_financereport_20251130.pdf, PDF p.38); minutes Dec. 16, 2025 p.2 (reimbursement report))
Masterson Advisors LLC: Financial advisor to both districts; its fiscal agent fee ($170,000 on 2025A, $140,000 on 2025B) is paid from bond proceeds, so it is paid only if bonds are sold. (Use and Distribution of Bond Proceeds, Nov 2025 official statement (HCID14_Series2025A_FOS_SAMCO.pdf, PDF p.17-18); consultant schedules in the FY2025 audits of HCID 14 (annual-financial-report_FYE-2025-11-30.pdf, PDF p.48) and HCID 13 (hcid013_financereport_20251130.pdf, PDF p.38))
Cost to the district
$18,000,000 Authorizes marketing $18M of new debt; issuance costs about $2.15M of the proceeds (2025A $1,104,378; 2025B $1,046,397).Why the board approved it
Recorded: “Ms. Eastland (Masterson) presented the Preliminary Official Statement and Notice of Sale and recommended BONY as paying agent; Board approved all five items.”
These are the standard steps before a competitive bond sale. The record does not summarize what the bonds pay for or how much goes to the developer; the Preliminary Official Statement does.