HomeMy WebLinkAboutFY Ended September 30, 1979TABLE OF CONTENTS
Auditor's Opi.!iion
Balance Sheet - All Funds
Statement of Revenues, Expenses and Fund
Balances - All 17unds
Statement of Changes in Financial Position -
All Funds
General Long-ierm Debt Service Recluirements -
by Years
Analysis of Changes in General Long-term Debt
Schedule of Temporary Investments
Analysis of Taxes Receivable
Analysis of Organizational Costs
Analysis of Changes in General Fixed Assets
Notes to Financial Statements
supple me^^ tar'y Infor~maL i on:
Certificate of Board of Directors
Questionnaire to be Co~npleted by Auditor
Insurance Coverage
Schedule
Number - Page
- 1.
n 2- 3
Board Members, Iley Aclrnj nrstralive Personnel
and Legal Counsel
2200 FORT \VORTH NA~L BANI< BLDG.
FORT WORT!-1. TEXAS 76102
Board of Directors
Denton County Municipal Utility District No. I
Denton County, Texas
We have examined the ba.latlce siieets of all funds of Denton County
Municipal Utility District No. I as of March 31., 1979, all funds'
related statements of revenues, expenses and fuocl i~alances arid
changes in financial position for the year then ended and the
related exhibit and schedul.es (Exhibit D and Schedules A-l
through A-5). Our examination was made in accordance with
generally accepted auditing sl:anda.rds and, accordingly, included
such tests of the accounting records and such other auditing
procedures as we considered necessary in the ci.rcumstances.
In our opinion, the accotiipanyiiig iiinatlcial statements examined by
us present fairly the financial position of Lhe Denton County
Municipal Uti1i:ty District No. l for all. funds as of Mar'ch 31,
1979 and the results of its operati.ons and the changes in :finan-
cial position for %he year then ended, and in our opinion,
Exhibi.t D and Schedules A-l through A-5 present fairly the
information stated therein, in conformity with generally accep1:ed
accounting principles applied on a basis consistent with that o:f
the preceding year.
Our examination has been made priniar'ily :for the purpose of
expressing an opinion on the fi.nanc:ial statements, taken as a
whole. Tlie accompany i.ng supplementary io:forma t i.on j.s prese~?ted
:for analysis purposes anci is not necessary for a fair presenta-
Li.on of the financial itniio~~rnal:iotl referred to in the preceding
paragraph. It has beeti sub,jected to the tests and other audi.ting
procedures applied in the examit~ai-ion of the financi.al statements
rnenl.ioned above and, in OLII. opinion, i.s fairly stated in all
respects tnaterial in reial-ioi~ to the financial. statements taken
as a whole. -
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EXBIBIT A
DENTON COUNTY hlUNICIPAL UTILITY DISTRICT NO. 1
BALANCE SHEET - ALL FUNDS
As of hlarc!~ 31, 1979
(Coni inued)
LIABILITIES AND FUND BALANCES
Cul.i.ent. Livllil irles
ACCOUOLS Payoblc and Accrued Eipenscs
Rciundoble Deposlis
1nrel.iuiid Payables
Toiul Current Livbiiiiies
Ueierred Incomc
Bonded Debt Payablc - Scbcdule :$-I and Exhibit D;
NoLe 7
Total Llablliiies
Fund Balances
Unallocarcd Fund Balances
Allocaied from Nei Tas Revenues
Ailocared from Salc of Bonds
Conrlibured by Devclopcr
Tornl Fund Bulonccs
Tornl Liubilicics and Fund Onlnnces
Memorandum
Tulnl
Genc-rn! General
Long-iersl l:i red
Debi Fund Asser Fund
$l.530,000 $
Yii ,530,000 S
Deb1 Gcnc,';il
Service 'Tali Opcrnr log
Fund Furld - - Fund
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EXBIBIT B
DENTON COUNTY hlUNIClPAL UTILITY DISTRICT NO. 1
STATEMENT OF IIEVENUES. EXPENSES AND I'UND BALANCES - ALL FUNDS
Toral Nan-ope~aring Expenses
Incoiile (LOSS) Betore Opcrnting Ti.;iosfcr.s
Opevilring Ti.ansIrr.s [l'nu Rcvcnuea)
Nei lncarnc (Loss) - Noif 5
Fund Bnlanccs ar April 1, 1978
Fund Balnnccs ai hl;li.cb 31, 1979
Total - General Operating Fund
General Debi General
:ricmoi.anduin Flscd Consiruclion Service Tax Operating Wuier Serer
Tuial Asscr Fund Fund Fund Fund Fund Servlcc Sel.vlcc Oillei. - -
SCE. accompanying noics
-5-
EXtIIBIT C
UENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. I
STATEhlENT OF CHANGES IN FINANCIAL POSITLON - ALL FUNDS
For the yenr ended March 31, 1879
SoUrceS Of CiiSI,
Cilsll Receipts from 0pci.uLiuns
Ciisli Disburseniei~i s for Opcvutions:
ContrvcL Labor
llaintcnunce nud Rcpairs
ilcL~r Expense
Tnp Connection Expense
Professional Fees
Service Account CollccLion
Bool<lreepini:
Utilities
Recurring Opcfnrin~ Expenses
Tax Assessor-Collector
DcbL SBI.Y~CC Erpcnsc
Toinl Cnsh Disbursemenls fnr Operations
Net Ciisli from Opei'alioos
Cusrom~r DCPOS~~S
Increase (Decreusef 181 ciasli
Cash nnd Tcmporiiry Invcstmeiit Bulvncc aL
April 1, 1978
Cash and Temporary lnvestnieiii Balaiice at
hlai'cb 31, I979
Debt. Geoer;il
blemarandum Construcrion Sci'vlcc Tax Op~l'ibtiiiq
ToLul Fund Fund Fund Fund
See ;iccampnnyiog nolcs
-6-
EXI-IIUIT D
DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS
As 01 March 31, 1979
Due Series 1976
During
Fiscal Pr i.ncipa.1 Interest Due
Years Due (March 1 and
Ending (March 1) September 1)
1980 1; $ 137,675
1981 137,675
1982 15,000 137,675
1983 1.5,000 136,363
1984 20,000 135,050
1985 20,000 133,300
1986 25,000 131,550
1987 25,000 129,363
1988 30,000 127,175
1989 30,000 124,550
1990 35,000 121., 925
1991 ~10,000 1.18,863
1992 40, 000 1.15,363
1993 45,000 111,863
1994 50,000 1.07,925
1995 55,000 103,550
1996 60, 000 98,738
1.997 65,000 93,488
1998 70,000 87,800
1999 80,000 81,675
2000 85,000 74,475
2001 95,000 66,825
2002 105,000 58,275
2003 115,000 48,563
2004 125,000 37,925
2005 135,000 26,363
2006 150,000 13,875
Totals $1,53O,OOQ $2,697,867
Cash atid Temporary Investme11 t s Aal.ances
a.t March 31, 1979
Tax Fund $1 98,059
Debt Service Fund 127,113
Total $325,172 --
To t a1
Annual
Requirements
SCIII3DULE A-2
DENTON COUNTY LlUNICiPAL UTILITY DISTRICT NO. i
SCllEDULE 01' PEIIPOIIIIILY LNVESVLIENTS
For Lllr year clldcd Lltil~cb 31, 1979
Debl Service
1Kil"d -
Cercif icatc of Deposit
Ceriilicate oi Deposit
Ccr'i ificiiie of Depasi t
Cel'L if icatc of Dcposi L
Cerriiicnre of Deposil
Toiiris
Tar Fuod
CeriiSiCnLC of D~posir
CcrLificnic of Deposit
To~ilis
To~nl - All Funds
hliiLur~Iy Uniatices ai
Date End of Yeor
2-28-80 6.1, BOO
5126,500
SCHEDULE A-3
DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
ANALYSIS OF TAXES RECEIVABLE
As of March 31, 1979
Taxes Receivable at Beginning of Year
1978 Year-original Tax Roll
Less Abatements to Original Tax Roll
Adjusted Tax Roll.
Total to be Accounted For
Less Collections:
Current Year
Prior Years' Taxes
Taxes Receivable at End of Year
Taxes Receivable by Years
Assessed Valuation Summary
1979 1978
Property Valuations:
Land $15,570,387 $12,515,967
Improvements 4,189,163 1,700,840
Total Valuat~ons $19,759,550 u16,807 -
Tax Rate Per $LOO
Valuatiol~ -- $0.95
Tax Year: From: January 1: 1978 lo December 31, 1978
Percent of the Assessed Valuation Lo Fair Market Value J 00.0%
Percent of Current Tases Collected to Current Tases Levied 88.3%
Percent of Current and Delinquenr, Taxes Collected to Current
and Delinquent Taxes Outstandi.ng at the Beginning of I-he
Tax Year 86.5%
SCIIEDULE A-4
DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. l
ANALYSIS OF ORGANIZATIONAL COSTS
For the year ended March 31, 1979
Bala~lces at
Begi.nning and
End of Year
Organizational Costs - Creation
Period
Engineering and Surveys
Filing Fees, Licenses, Legal Noti.ces, and Permi.ts
Legal Fees
Director Fees and Per Diem
Other Costs
Total Organizational
Costs - Creation Period
Organizational. Costs - Construction Period
Legal Fees
Financial Consulting Fees
Operati.ng Expenses
Bond Interest Expense
Amortized Bond Discount
Total. Organizational. Costs - Construction
Period
Total Organizational Costs
A~nounts Provi.ded :
For District Organizatj.ona1 Costs - Crealiion
Period by Construct ion Fund
For Di.stri.ct Orga~lizatio~lal Costs - Construction
Period:
By Construction Fund
By Debt Service Fund
Total District 0rgani.za.ri.onal. Costs -
Construction Period
Total Provided
SCHEDULE A-5
DENTON COUNTY h4UNICTPAL UTILITY DISTRICT NO. 1
ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS
For the year ended March 31: 1979
Land
Water System
Sewage System
Drai.nage System
Engineering 1- 4ees
Totals
Addit ions Provided by:
Construction Fund
Contributions by
Developers
Balances at
Beginning and
End of Year
$ 23,675
380,839
429,730
31 5,198
128,171
'Total
DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
hiarch 31. 1979
Note I: Creation of District - Denton County Municipal Utility
District No. 1 was created by an order of the Texas Water
Rights Commission on March 4, 1975 and confirmed by the
electorate of Denton County Municipal Uti1i.t~ District
No. 1 at a confirmation election held on October 7, 1975.
The Board of Directors held its first meeting on April 24,
1975, and the first bonds were sold on June 8, 1976.
Note 2: Basis of Accounting - The exhibits and supporting schedules
contained in this report were prepared on the accrual basis
of accounting except for the statement of changes in finan-
cial position--all. funds, which is a cash basis statement.
F~~rti~ermore, tax revenues, purchases of supplies for inven-
tory and bond interest are noi: accrued and the amounts
shoivn for these items I-ef1.ect cash basis accounti.ng treat-
ment. General fi.xed assets are not dep~'ec.iai;ed in accorcl-
arice wit11 suggestions of the Texas Water Rights Cornmissi.on.
Note 3: Uotid L~lterest - In accovda~ice with the bond i.esol~~.~tion
dated October 29, 1975, a portion of the bond proceeds was
deposited into the Debt Service Fund for rlie payment of
bond i literest diiring the cousl~~~~c tion period. Tilis h(;lcjd
i.nl:erest has been capitalized as an orgaliizarjonal cost
1'01' llie colistruction peri.od.
DENTON COUNTY MUNICIPAL UTILlTY DlSTRlCT NO. l
NOTES TO FINANCIAL STATEdIENTS
March 31, 1979
Note G: Compliance wit11 Debt Servi.ce Requiremenrs - The provisions
of the bond resolution relating to debt service requirements
have bee11 111et and the cash allocated for these purposes is
sufficient to meet debt service requirements for the fiscal
year ending March 31, 1980. The ability of the District to
meet f~lture debt service require~nents depends primarily on
successful collection of taxes levied against property with-
in the District and operations of the waterworks and
sanitary sewer system.
Note 7: Rede~nption of Bor~ds - The outstanding bonds of Denton Cou~~ty
Mu~licipal Utility District- No. 1 are callable for redemption
prior to maturi-ty at the option of the District. The bonds
rnay be called in w11ol.e or in part for the purpose of reti~re-
rneut or refunding, or both, at par j~n addition to unpaid
accrued i.nterest.
DENTON COUNTY MUNICIPAL UTILITY DlSTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
March 31, 1979
Note 8: Water and Sewer Service Rates - The Denlon County Municipal
Utili.ty District No. l has establisiled the foilowi~?g water
and sewer service rates wl~icl~ l~ecnme effec-tive as of April
'rap Fee $275 .OO
Sewer Inspect ion Fee $ 15.00
Water Servi~ce Only
Treated Water -
l?i.rsl 8,000 Gallons of Water Used -
Minimum Rill $ 8.00
Each 1,000 Gallons of Water Used
Thereafter 1.00
Untreated Water -
First 8,000 Gallons of Water Used -
Minimum Bill
Each 1,000 GalLons of \\'atel- Used
Thereafter to 15,000 Gallons of
Water Used
Each 1,000 Gallons of Water Used
Thereafter
Standby Fee Per Month
Sewer Charge Per Month
SUPPLEMENTARY INFORMATION
CERTIFICATE OF THE BOARD OF DIRECTORS
Denton County Municipal. Utility Districl. No. 1
Name of Water District
Dentoll
County
We, the undersigned, do hereby certify ihal tile audit report or the
above named Water District for the fisca1 year elided March 31, 1979
was received by the Board of Directors on the
1979 and was reviewed and appproved disapproved at a meeti~-ig
of the Board of Directors of the Water Disrrict on the
, 1979.
Signature of Board P~,esideut Signature 01 Board Secretary
QUESTIONNAlRE TO BE COMPLETED BY AUDITOR
For ihe year ended Mal,~h 31, 1979
Denton County Municipal Utility District No. 1
Name of Water District
Dent on
Coun 1 y
1. At the time that your firin was engaged by the Board of
Directors of t,he above-named water distri.ct to perform
this audit, was a copy of the Water District Accounting
Manual. made available to you? x --
Yes No
2. The Water District Accounting Manual prescribes account-
ing principles and policies. After taking these i.nto
consideration, did the local water district:
a. Maintain a proper cLassiPication of expenses and
revenues? x --
Yes No
b. Record expenses and revenues on the basis of full
accrual accounting except for the specific revenue
and expense items required to be maintained on the
cash basis by t,he Water District Accour~ling
Manual? x --
Yes No
c. Maintain the double eiitry systelii of accounting? x --
Yes NO
d. Keep a general ledger in accordance with the
~ioiform classifj.cat:ion of general iedger' accoui~~s
presc~'ibed in Wal.er District Acco~tliting Manua.l.? x --
Yes No
e. Adhere to other ~rovisioi~s of Water District
Accounting Manual? . . --
Yes No
3. Did the Board of Directors of 1:iie iir;~i.e~, dis1:rict i.n~pose
on vour firm anv audit renuirenienis in addj~tion lo
those rnillinlurn audi1: i~eclili.~~eineiiis of llic! Water Distriicl
Accoui~t i~ig Manua:l. '7 s --
Yes No
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
For the pear ended March 31: 1979
(Continued)
4. Did you identify, duri.ng the course of your exaini~lation
of the financial statements of the water district, any
areas pertaining to accounting matters in which action
should be taken by the Board of Di1,ectors of the wa.l.er
disr:~ct? x --
Yes NO
5. Did you obtain representation fro111 I:he Uoarcl of
Directors of the water district that all records of -
the water district were made available to you for
your examination? -- x
Yes No
6. Did the water district:
a. Use the construction fund, tax fund and debt
service fund only for purposes authorized by the
Board of Directors of the water district and/or
withiu the provisions of applicable bo~id resolu-
t ious? x --
Yes No
b. Properly segregate and rnaii1t:ain the required
amount of cash escrowed by the Texas Water
Rights Commissio~~ or disburse (-he escrowed cash
according to the terms prescribed by the Texas
Water Rights Cornmission'?
c. Do business o111y ~ith Ijirn~s or corporai:io~~s in
which members of 1:he Board of Directors had no
pecuniary .in i- erest?
d. Observe the co~~ditioiis 1'01. obtaining grants,
gifts, etc., or observe agreements uli.th
govern1nen1:a.l agencies i.'or rhu purpose of
securing fiincis or services?
S --
Yes No
\7 ~. --
Yes No
0: See Page 6 of 6 for i-:rp!:iliat ioi~ ol' !.efereilites (I. - (5)
-1st-
QUESTIONNAlRE TO BE COMPLETED BY AUDITOR
For rhe !leal, ended March 31, 1979
6. Did che water district: (continued)
e. Have a contract for Social Security coverage
for its employees with the Tesas Departinent
of Public Welfare, Social Security Division? -- (5)
Yes No
f. Make remittances of Social Security taxes
according to the terms of the contract for
Social. Security coverage with the Social
Security Division of the Texas Department
of Public Welfare?
g. Deposit receip~s to the proper funds kept
by the approved depository bank?
h. Draw checks only on funds approved by the
Board of Directors and signed by authorized
personnel?
7. Do you issue a management letter' to administrative
officials of the water discrict aL leasr annually
which sets forth your commeuts (based on rnat,\:ers
which came to your attention duri ng YOLII. examina-
tion) for strengthening internal accounting controls
procedures?
If Yes is checked for question 7:
a. M'ere your re(:,oillmei1darions esplai~~erl to and
discussed mi th admii,isr rai lve of l'i.cial s of
the water district'?
(5) --
Yes No
X
Yes
X --
Yes No
x --
Yes No
x --
Yes NU
b. The date of youl. Inosi 1'el:eilr n1an:lgeirient
Let~er was July 22, !Y77.
Page - -1 of - G
QUESTIONNAIRE TO RE COkIPLETED BY AUDITOR
For the year ended March 31, 1979
(Continued)
7. (continued)
c. Is there evidence indi.cating that your
previous year(s) reconimendaiions have been or
are being implemented? -- x
Yes No
d. Has a copy of the management letter been
filed with the Texas Water Rights Commission -- x
Yes No
8. The Texas Water Code malies specific provisions
relating to security provided by depository banks.
After consideration of the applicable laws pertain-
i.ng to the speci.fi.c water district, dj.d the
depository bank provide adequate security of the
correct type? S --
Yes No
Please indicate for - each depository: (2)
a. The name of the depository bank - Fi~rst
National. Bank, Fort Worth;
b. Amount of F.D.Z.C. coverage (i.f member baiilr) $40,000 ;
c. Amount of bond or other security pledged as of
the end of the fiscal year $469,034 ;
d. Largest cash balance $ (3).-;
e. Date of largest cash baiaoce (3)-;
f. The arnoun~ of bond or seci~l'izy pledged at the
t inie of the i.arges t casl-r bal.ailce (excluding
F.D. L.C. coverage) $ (.3)-
b. The county ~:ax assessor-~~ l lc~i:!.or
Page - 5 ol' - G
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
1r'oi. the year ended March 31.: 1~979
(Continued)
9. (coot inued)
c. A city or other Las assessor-collector x
d. More than one of the above
1.0. Was the tax assessor-collector bo~lded as 1,eclitired
by law? x -- Yes No
11.. What was:
a. The tax assessor-collector bonded for?
b. The greatest amount of the district's taxes
in the tax assessor-collector's possession
at any one time?
c. The frequency of tax receipts deposits with
the bonded depository? (check one)
(I) Daily
(2) Weekly
(3) Monthly
d. The percent of the assessed va.luation to
fair market valiie'?
12. We (check one):
a. Actua1l.y exa~~iitled r11e records of fhe tax
assessor-collector.
b. Received wrii~ieti i-o~lfirniaiion for tas data
Prom the <:ax iissessor-collLec tor. x
13. As a resu:Lt, mere !ocaJ i:ax i.evei~ues (:i nclucijng
delinquer~l ta:.:es aiid iln1el.esi atid i~enallries 011
{:axes) jproperly se;,:ira!ed for debt siii.vi~ce? -- :.
Ye..; No
Page - G of - G
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
For the year ended March 31, 1979
(Continued)
14. Was the water district in compliance ivith
applicable bond resolutions with the general
or special legislation under wl~ich the district
was created and with the specific sratutes
excerpted and included in Lhe Legal Compliance
Guidelines in Section 70-03-1 of the - Water
District Accounting kianual'?
15. Other Commenls of the Auditor:
None
(I No i~~tergove~~~~mental brans:lcti.ons.
(2) The Disl:r.ict also maintains a tas
depository account at Jetero Bank,
Wesl.:ield, Texas. It i.s l11e polj~cy
of the Di.stric~ that deposits held
in the account are not to esceed
F.D. I .C. coverage of $40,000.
(3) Based on audit review, security
pledged exceeded cash and cem-
porary ii~vesl:nient bal~ances at
a:II times.
(4) Receipts are deposiceci as reie~ived
into di: accouut.
(5) The D!~str ic~ has one einployee whc~ is
exenlip!. f ro111 Sol: i al Secui'ily coverage.
X --
Yes No
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DCNTON COUNTY hlUNICIPAL U'PILITY DISTRICT NO. i
BOARD LIEhIBCRS, IKEY ADhlINlSTRnTIVE PCRSONNEI. ,AND LEGAL COUNSEI
hlurch 31, 1879
~ ~
llcsicy Wayne 0bet.mclci'
207 Ook!amnl. Dl'lvc
Ruthiiolic, Texas 76262
Dennis C. Diiiriiorid
302 invcrness Dr.
Roaiiolrc, 'Texas 76262
Scot L T. hlassic
i15 Inverness Dv.
Ronnohc, Tcrns 76262
Ronald J. Lowry
119 cai'nousiio
Roanoke, Tesas 76262
Willis F. Brown
1200 Sun,",; t
For$, lYor.ih. Texas
LlcGomn, Godirey, Decker.
hlchlacliin, Sb ipirian & hlcClunc
1800 Corsscl.cc Building
Fort Worlh. Teras
Tc iin aeIai ioriiiilip wiih hli~jor
of Office B00t.d hleinbci's ~esidcni Land Olrliers, Cngirlefr,
Elected and Annuri of Ai.101.11cy and 7:11
Expircs Sulni-y Title Districi? Assessnr-Cullc~ior -
1- 2-77 Per Diein i'i-esldcn!. Ycs Nalle
4- 7-79
Date
ii11.cd
Per Dics Vii~ Presidenl Yea
Pc- 8. D i eili Secl~e~lv~I Yes
Treesurer
Pcr Diclii Divcci.or Yes
Diairicr Le~nl Counsel
Fees Paid
$11,9'iS NO