The URL can be used to link to this page

Home My WebLink AboutFY Ended September 30, 1986TROPI-IY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 FINANCIAL STATEMENTS AND SUPPLEMENTARY SCI-IEDULES YEAR ENDED SEPTEMBER 30, 1986 with REPORT OF CERTIFIED PUBLIC ACCOUNTANTS ANNUAL FILING AFFIDAVIT THE STATE OF TEXAS 0 0 COUNTY OF TARRANT AND DENTON 0 Before me, the undersigned authority, on this day personally appeared John V. Peters , President or Chair- man of the Governing Board of Denton County Elunicipal Utility District No. 111, known to me to be the person whose name is hereunder subscribed, and who, being by me duly sworn, upon oath says: I hereby duly swear that to the best of my lcnowledge the district named above has complied ill full_ with all annual audit report filinx requirements of Section 50.374 of the Texas Water Code by filing copies of its annual audit report for the fiscal year endinp September 30, 1986, in the district's office and with the following city or county as listed below: CITY OF TROPHY CLUB (Typed Name of City or C:ouiit.;i .- Dated: 1, - . : ,.I .:7-+. .. , :' (Signature of President or Chairman) Pebruary 8, ,1957 .- John V. Peters, \'ice President (Typed Name and Titlz! Sworn to and subscribed to before me Lnis 8 day of IFel>~-uary - , 1087. . ->. , \ i. r., t' . , . . . .J. i.~ .\,.. ?\,\L,.:-, , ii 9 (S.~g?atur6cif ~. jV">ta~yj ' .-el 1 Judy S. T~iii1ieIii~l.1 ['Typed Nznie of Notary) 1,;). commission expires on 3-6-89 4 1 i in arid iol- the Scare of TE::OS TABLE OF CONTENTS Page - Report of certified public accountants 1 Financial section Combined balance sheet - all fund types and account groups Combined statement of revenues, expenditures, and changes in fund balances - all governmental fund types 4- 5 Combined statement of revenues, expenditures and changes in fund balance - budget and actual - General Water and Sewer Fund Notes to combined financial statements 6-16 Supplementary schedules Analysis of changes in cash and temporary investments - all funds General long-term debt service requirements - by years Analysis of changes in general long-term debt Schedule of temporary investments Analysis of taxes receivable Analysis of organizational costs Schedule of notes payable Analysis of changes in general fixed assets Comparative statement of revenues and expenditures - period and three years Insurance coverage Board members, key administrative personnel and consultants Questionnaire to be completed by auditor Certificate of the Board of Directors CERTIFIED PUBLIC ACCOUNTANTS 3015 WEST FIFTH STREET FORT WORTH,TEXAS 76107 817/338-0061 Board of Directors Trophy Club Municipal Utility District No. 1 Roanoke, Texas We have examined the accompanying combined financial statements of Trophy Club Municipal Utility Dist'ict No. 1 at September 30, 1986, and for the year then ended listed in the foregoing table of contents under the caption "Financial Section." Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we con- sidered necessary in the circumstances. In our opinion, the combined financial statements re- ferred to above present fairly the financial position of Trophy Club Municipal Utility District No. 1 at September 30, 1986, and the results of its operations for the year then ended, in con- formity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made for the purpose of forming an opinion on the combined financial statements, taken as a whole. The accompanying supplementary schedules listed in the table of contents, pages through are presented fo~ purposes of additional analysis and are not a required part of the combined financial statements. Such information has been subjected to the auditing procedures applied in the examination of the combined financial statements and, in our opinion, is fairly stated in all. material respects in relation to the financial statements taken as a whole. November 24, 1986 TROPtlY CLUB LIUNICIPAL UTILITY DISTRICT NO. I COhlQINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1986 ASSETS Current assets Casb: Unresrricted cnsh Restricted cash Total cnsh Temporary investments, at cost: Unresrrlcted Rcstrlctcd Tatol temporary investments Total cash and temporary investments Accounts receivable nnd nccrucd revenue Inrerfund receivables Total Current assets General iiacd nsscts (Notes 3, 4 and 8) Intangible and othcr assets Provision for bonded debr Amount to bc provided Tor rctirclnent 01 general long-term dcbt Totnl assets Governmental iund types General Debt Copit;rl \Voter and Service Projects Sewcr Fund Fund Fund General Gcnernl fixed long-term assets debt - Totals (memorandum only) Yenr ended Ycnr ended September 30, Septcmber 30, 1986 1985 TROPllY CLUB hlUNICIPAL UTILITY DISTRICT 110. 1 COLIBINED BALANCE SIIEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1986 LIABILITIES Current liabilities Accounts payable and mccrucd expenses Refundable deposirs Interiund pnyirblcs Total current liabilities Nares pnynblc Deferred income Bonded dcbt paynble (Note 5) Totnl linbilities Commitments (Note 7) FUND EQUITY Investanent in general fixed assets Fund bnlnnces: Reserved Ior customer dcposlts Reserved Tor dcbt aervzce Reserved lor construction Unrestricted Torn1 Iund balances Totnl iund equity Total liabiliries and fund equity Gavernrncntnl fund types General Debt Capital Water and Service Projects Se~er Fund Fund Fund Account Croups General General fixed long-term assets debt - Tatols (mcmornndum only) Yenr ended Year ended September 30, September 30, 1986 1985 See accampiinping notes. -3- TROPIIY CLUB hlUNICIPAL UTILITY DIS'I'RICT NO. 1 COhlBINED STATEhlENT OF REVENUES, EXPENDITURES, AND CIILVGES IN FUND BALANCES - ALL GOIl3RNhlENTAL FUND TYPES Ycar ended September 30, 1986 Totills Govcrnmcnral Iund types (memorandum only) General Debt Capital Ycar ended Ycnr ended IV~ter and Service Projccts September 30, September 30, Sciver rund Fund Fun$ 1986 1985 Revenues Service revenues (Note 6) Tap connection revenues Tux revenues (Note 9) Penalty revenue Expense reimbursements hliscellaneaus Interest on temporary investments Total revenues Expenditures Bull[ u'ater purchases Payroll expenses Ernplogee benefits Proiessionnl Iecs Capital outlay Utilities Recurring operating expenses TRS nSsCS~or-~~lle~tor h~iscellancous Debt service: Principal retirement Intrrrai and fiscal charges Excess over (deficiency) expenditures revenues TROPIIY CLUB hlUNICIPAL UTILITY DISTRICT NO. 1 COhlBINED STATELENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GO\'ERNIIENTAL FUND TYPES Year ended September 30, 1986 (Conrinucd) Orher financing sources (uses): Operating trnnsfers in Operating tmnsiers out Total other financing sources (uses) Excess (deiiciency) of revenues and other financin~ sources aver ezpendirurcs aid other uscs Fund bnlnnccs nt beginning oi year Fund balances ot end of year Governmental iund types General Dcbl Capital Ciator and Service Projects Fund Sewer Fund Fund Totals (memornndum only) Year ended Ycnr ended September 30, September 30, 1986 1985 See occompnnqing norcs. - j- TROPHY CLUB mNICIPAL UTILITY DISTRICT NO. 1 C0.m INED STATEbENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND Year ended September 30, 1986 General Water and Sewer Fund Variance favorable - Budget Actual (unfavorable) Revenues : Water and sewer service (Note 6) $ 637,782 $ 615,544 $ (22,238) Inspection and tap fees 83,225 44,851 (38,374) Ad valorem tax revenues 45,870 44,684 (1,186) ~1iscellaneous and carryover 3,750 14,620 10,870 Total revenues 770,627 719,699 (50,928) Expenditures: Water and Sewer Department: Salaries, wages, benefits and taxes Water purchases and power (water, sewer, utilities and telephone) Consumable supplies Maintenance and repairs Other expenses Total Water and Sewer Department Administrative: Salaries, wages, benefits and taxes Professional fees: Legal Auditor Engineering Maintenance Contract labor Printing and off ice supplies Post age Utilities and telephone Insurance and bonds Travel and seminars TROPHY CLUB kKJNICIPAL UTILITY DISTRICT NO. 1 COMBINED STATEMENT OF REVENUES, EXPEITDITLRES AITE CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL WATER .XYD SEWER FUND Year ended September 30, 1986 (Continued) General Water and Sewer Fund Variance favorable - Budget Actual (unfavorable) Expenditures: (continued) Administrative: (continued) Legal notices and publications Repairs and maintenance Other expenses Total administrative Capital improvements Fire Department: Fuel and supplies Maintenance and repairs Insurance and bonds Capit a1 improvements Other expenses Tot a1 Fire Department Total expenditures Excess (deficit) of revenues over expenditures Fund balance at beginning of year Fund balance (deficit) at end of year See accompanying notes - -1- TROPIlY CLUB MUNICIPAL UTILITY DISTRICT :.TO. 1 NOTES TO COlvIBINED FIKASCISL STSTEA'IESTS September 30, 1986 1. Summary of accounting policies a. Reporting entity - All pertinenr documents, transacrions, contracrs, and correspondence mlrh orher governmental agencies were reviewed to derermine rhe reporting entlty. Based upon rhis review, only the activities of the Trophy Club Municipal Utiliry District No. 1 are included in this report. b Descriprion of funds - The Disrricr has established a number of funds, in conformance with generally accepred accounting prin- ciples and the recommendations of the Narional Council on Governmenral Accounring, for the purpose of accounting for transactions in compliance wirh legal requirements. Funds and account groups in use by the District in accounting for its financial activities are as follows: Governmental funds General Water and Sewer Fund - To accounr for all of the general warer and sewer revenue of the Districr not specifically levied or collected for orher Dlsrrict funds, and for expenditures relared ro rhe maintenance of operations. Debt Service Fund - To account for the source and disposirion of funds for paying interest and principal on general long-rerm debt. Capi~al Projects Fund - To accounx for rhe acquisirion of capital facilities being financed from bond proceeds. TROPHY CLUB !YIUNICIPAL UTILITY DIST9TCT !TO. 1 NOTES TO COMBINED FINhVCIAL STSTEAlL>;\;TS September 30, 1986 1. Summary of accounting policies (continued) Account groups General Fixed Assets iccounts - To accounz for property and equipment of xhe Districz. General Long-xerm Debt Accouncs - To accounc for the unmatured principal of ouxstanding bonds. c. Basis of accounting - The District maintains its accounting records on the modified accrual basis whereby revenues and expenditures are recognized in xhe accnunting period in which they are earned or incurred wixh the exception of interest on general long-term debt and tax revenues which are recognized ivhen due. d. Property, plant and equipment - Property, plant and equipmeox is recorded at cost when acquired. General fixed assecs are 'ecorded as expenditures in the General Water and Sewer Fund and Capital Projects Fund ax the xime of purchase and are capitalized in the General Fixed Assexs iccounz group. Cosxs related to repairs and mail;tenance are recorded as expenditures. Significant renovations and improvemenxs are capitalized. e. Investmenxs - Investments are carried at cost *,vhich approximates market. The District's inxenr is zo hold rhese investments until maturity . 'p~T.Tad UOT13nJlSU03 3ql JOJ 1503 TBUO~?CZTU€?~JO 11% SE pazTioigdz3 uaaq svq isa~ain~ puoq s~q& 'po~zad uo~i3n.1isuo3 aqi Burdnp isa.~aiur punq ;o iuamivd aqi .TO$ pun2 asrA.xa~ iqaa aqi oiug pairsodap seM spaaso.76 puoq aqi 30 uo~i.rod e '~~61 '6~ xaqolso Damp noTinIosaa puoq aui qi~u. 33uepx033v UI - isaxaiur puoa .€ '9~6~ '5 aunr uo pios a.Iafi. spuoq TSZTJ aql pue 'SLGT '92 ~r.~dv uo Bu~iaam 1s.x~~ SIT p~aq s~ozsa~~a $0 pxeog aq& '~~61 'L .zaqol30 uo praq UOTl32-ja noTieul.T~~uo2 E 12 1 'OK l3TZlSTa Sl~i7lfl TB~T~T~~I~Y qnT3 dqdox& jo aieJoisaTa aqi Sq pamJTjuo3 pue '~LGT 'P qs.TeI,y uo uo~ss~mo3 slqz~~ .zaivd\ sesa& ayr; 30 .Tap20 u-e bq pal-eaza sen\ T 'OK 13T-11STa filj~Kl9 TU~S~TU~IV 9nT3 dqd0.I~ - 13TbT1S?P $0 UOTlPaZ3 'Z -uc~d aqz 01 painqTxiuo3 s? S~T'E~FS axqy3~xa 30 iuaazad nT-eTJas e 'ue?d aqi 30 srn.12: aqx Japufi '+861 u~ ue~d luamax7la.1 uc)yinq~.~zuos pauTgap E psiciopn 3sTxr;sTa aqL - uv~d Xuamaz'tlaH .3 .er;ep asaqi jo uo~ie8a~8S-2 aq? GT apvm uaaq iou al~ey suo~ieu~m~~a punjzaiu~ 'uo~iep~-josuo:~ E or; a~qvxedmo3 slep qans axe xaqlyaH .sa~d~3u~.xcI Zu~iunozsc paldasse h~~e~aua3 q1r.M b$~mxo~uo3 KT? uo~i7soci ~BT3UFU~J US S~BUV~~ JO 'SUOT~BJ~~O $0 S71nSa.I 'uo~~~sod Israueurj ?uasa.id lou op smun103 asaqi u~ slea .sgshyeue TeTsueuTj aieiT~~3ej or; b~uo paquasa~d are Aaqi ley$ aieagpu~ 01 ,,L~uo mnpun.Iomar;,, pazo~~de3 3.18 sluama~exs paurqmos aqi uo suumTos Telo; - s~uamai~ls paurqmoa uo surunTos ~eio~ -3 (panr;Tiuoa) says~~od 3u~r;unoas.e jo Lxeruum~ .T -- 000 '~SF' z 000 '0s 000'0EX) '€ 00.01 %0Oz €331 sar.Tas - 00 ' 8 r1Zno.rrl,$ spuocl an~a~1a.r zc~~U~.Tas UO~J~tl~~lUO3 U@?S& .rah\as prm sr[..ro,\\ 000LGT6'T 000'GE 000'0GG'I OG'G LOOZ 0861 sar.ras - 09.8 rl.Sno.rrll spuq anua;~a.r i-[~-c~;ta~ prm ST? palnurxrm mC-lnrl > + L.L* :F(&Z3 LIJZ~"~ .. sa,\\as pmm sq.ro,i\ .razeL\\ o0o'or~'rb 000'~~ S OOO'S€P‘T$ GZ'G SQ0Z 9~61 say.ras - ~L'S tp3no.rtli spuq an~1ana.r iS~.[v:.ras pm 1x7 palrurc~un uoJ~Fu~quo3 uaq sics 'pazy~e$:de3 a.IaM spaaoo.16 puoq dq papun3 siso3 asoqx 5~~0 '.racIo~a~~ap aqT LC[ pa1a~clmo3 iSpea.r~e saylTTr3eJ ST: pascqnxncl ~3r.1lsra aql sg 'pa.r.In3no seq 617~~3733 2uy3npo.~d anuana.7 $s.~rj aqT jo asn .TO a3uslcTaa~e pue aor?anLrTsno3 rrlun sasuaclsa aar'$a.Ils:uympe amos puz saaj Sausoxle 'pasuy3.Ind sluamTsaAuy uo isasalur pan-133~ 'sluaulsa~~~ri ,TO saTvs uo sassoT 'Tunoas~p pue ~~in~1ua.~cI puoq pazyl-roun pu~ Tsasalur puoq 'spuoq jo aTes pue [~rro~~~z~r~zZ.ro st: uo:lezrTz1-~cle3 sa.rruba.r osTe rroTssruriuo3 siq3~8 saxe,\\ sera6 aqL .aTnasxs iiq ~JA\O~IF 13r.1~s:a aqx jo uoy~ea.rn aql. a? pas.rn,Jur slso3 .[IT poy~ad uorTea.ro aqx .roj slso3 uoylezTue2.10 01 paZ.r~qo pue paz~rel~cIc3 'uoyss~umo3 s~q2r~ saleM szsa& aql 30 sluatu -asrnba.~ ~~TAI anuvursojuo3 a: '~3~alsra aqL - slso3 IeuoT%ezrue2.~0 .b TROPHY CLUB h4UNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1986 5. General. long-term debt (continued) A schedule of bond maturities for the nest five years is as follows: Tax and revenue bonds Year series 1976 - 1987 $ 153,269 1988 155, 863 1989 153,238 1990 155,394 1991 157,113 Thereafter 2,344,021 Tax and revenue bonds series 1980 Tax and revenue bonds series 1983 Total - Less interest 1,683,898 2,580,139 2,954,725 7,21S,7G2 Tax and revenue bonds authorized and unissued as of September 30, 1986, amounted to $5,579,217. The boilds are payable from the proceeds of an ad valorem tax levied upon all property subjecc to taxation within the District, without limitation as to rate or amount, and are further payab1.e from and secured by a lien oil and pledge of the net revenues to be received from the operation of the District's wa.ter\rorlcs and sanitary sewer system. The provisions of the bond resolutio~is reln~i.ng lo clel~r service require~neuts have been met and the cash allocated for xhesc- purposes is sufficient to oleex debt service reyuirernents for the fiscal year ending Sepcen~ber 30, 1987. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1986 5. General long-term debt (continued) The outstanding bonds are callable for redemption prior to maturity at the option of the District. The bonds may be called in whole or in part for the purpose of retirement or refunding, or both, at par in addition to unpaid accrued interest. 6. Water and sewer service rates - The Trophy Club Municipal Urility District No. 1 has established the following water and sewer service rates: Tap fee $325.00 Sewer inspection fee 15.00 Water service only: Treated water: First 4,000 gallons ol water used - minimum bill Each 1,000 gallons of water used Untreared water - each 1,000 gallons of water used Irrigation wter - each 1,000 gallons used - Standby fee per month Semer charge per inc~nth - n~inimum bill Each 1,000 gallons of warer used - in excess of 4,000 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEhlENTS September 30, 1986 7. Comnitments - The District has an agreement with a developer whereby the developer awards contracts and makes progress payments to independent contractors for the construction of works, improve- ments, facilities, plants, equipment and appliances necessary to provide a waterworks system, sanitary sewer system, storm sewer and drainage system within said District. Upon the completion of a project and the authorization of a bond issue, the District is obligated to reimburse a percentage of the total cost of xhe project plus accrued interest fro111 the date of the progress payments to the developer. 8. Changes in general fixed assets - A summary of changes in general fixed assets follows: Balance September 30, Addit ions 1985 (deletions) La11 d $ 140,372 6 - Buildings 72,906 150, 180* Water system 2,403,503 - Sewage system 1,727,062 - Drainage system 972,898 - i\lacl~inei-y and ecluipment 93,621 35,437* Autos and trucks 102,570 7,057* Furniture and fistuves 37,385 1,737* Engineering fees 761,690 - Capitalized cons~rucxion period costs 522,688 - - SG,S34,695 -- $194,411 *Expenditures froin general water and sewer fund Balance Septembel. 30, 19SG 'la~.~~sya 2t1?2euew aql $3.!alsTa aql 2~1yqecu zaarnaa-r2e tie ah=[{ l>r.r?sra at11 pue (sZu~d~es .re?Te.rq?f)) .racIoyai\ap at16 O'OL O'OE (sclel $0 ;raqrnnu tro paseq) ~LI~TCI $uaul$ca.r& P ' 9L 9'EZ sa~cIuro3 ~ecIr3~unm pue pue7 0'09 0'05 quel paleaa~x O'E9 O'LE aur~ .~a$e,ii g$~o&\ laoj qaar (TZ) auo-blua2\i& P'9L 9'EZ xue~d .raxe,$\ ;,'O'OT7 20.09 pa~eao~ sy lue~cl $uaurnea.r$ a.Tarlhi pue? $0 cI~t~s.rau,+\o 'sesaA 'qn13 LqcIo.r& uy aA;T oqhj soos.~ad 01 saayA.ras .~a.na~ pue -raleh\ apyl\o.rd 03 pasn slasse snor-T~A tty s-ra.~nxua~ XLITOC axe LIOJ~BTSOSSV SSUTAGS .~exye~q~3 pue ~3y.rls~a aq& - a.Tn$uah xuTor 'TT $uanhu~lap amosaq pue .Iaqolao anp a.Te '1 Szenuer $0 se L?-.~aclo~d uo uaT1 ayqea3.rojua ue se qaelle sasel h$.~acIo.~d - sasel ~C$.~acio.~d .ij TROPHY CLUB klUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 19SG 11. Joint venture (continued) The District prepares and administers the budget and financial responsibilities with the Developer reviewing and consenting to same. The developer has agreed that any net 'evenues belong to the districts using the system while deficits are financed by the developer for its pro rata share. Based upon this arrangement, the entire project is included in the 'ecords of the District and all financial data is included in the financial section of the report, thus it is not included here. Joint venture debt is secured by tax 'evenues from the residents. The developer has funded its share of the joint venture. In the event that the other municipal utility districts using the system sell bonds, the developer will sell its interest to those districts. SUPPLEMENTARY SCHEDULES TROPllY CLUB UUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF CIIANGLS IN CASll AND TELIPORBRY INVESTIIENTS - ALL 17UNDS Year ended Sepietnbcr 30. 198G Sources 01 casli and icmpornry lnocsiments Cash lecclpts from reveiiries CRS~ tl'an~iCT.5 11.0m o~~>cI. funds Refundable depaslts Tatnl cash und temporary lnvcsLmenis pravlded Applic~tions 01 cash nnd temporary investments C~sll disbu~.s~inmt~ 101- csirrent espci~dirurcs Cnsll Ll.nnsiers to orher iunds Poymcat of bond priiicipol Rciund oi customer deposits Refund of tns ovcrpnymc-nts Purchnse of Iisrd ossels by Gencrnl BoLer and Semcr 7und Total cash nnd temporary in\.estmcnLs ;%]>plied Incrcnsc (dccrcssc-) in casb and tcapur;~ry irivcstments Cash and temporal.)- invcstrsent b;il;inccs, beginning ui year Caall ;ad te~ui~ilf.i~l.y iui.t:sL~iie~lL I~i~lilrb~es, end of yea]. General DC~T liatcr niid Service Sc>vcr Fund Fund Torals (inemarandiim only) Ycnr ended Ycnr ended September 30, September 30, 1986 - 1985 TROI'IIY CLUB LIUSICIP+\L UTLLI'L'P DIS'L'IIIC'P NO. I GERERBL LONG-TERII DEBT SERI'ICE REQ1?'IREhlE?ITS - UP TCAllS Tcnr endcd Scprciiibcl. 30, 1981; Scrics 19iG Series 1980 -- Series 1963 Due durilli: riscnl yciirr Priliciptil 1iiLci.c~~ P~incil*:~L IIILCL.CS~ I'riiicipill IIILCI.US~ 'T,JL;LI tulnut~l etlllili~ due lluc rI~ic1 due clue duc reqt~i re:~~hc!nr.s Sej,iciiibcr 110, -jlNl SrpLcaibcr 1 .- ili~l~~h I Sej~L~ll~bel. I -! iliircli 1 Sejireliibei. 1 a1 I .><:vieh C:isii nnll Lclilpororl~ inresiment balances nL Scjltcmber 30, 1985: Dcbt Service Fuocl U,Al&,_R013 ~- ~ ~ - Ciisli ilnd trililliirarg inresLn~rni bo1aoct.s nr Sellrcmbcr 30, 1966: Drbr Service Fuiirl - SL,53~?A6s ~ TROPHY CLUB MTJNICIPAL UTILITY DISTRICT NO. 1 Interest rate ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT Year ended September 30, 1986 Bond issues Series Series Series 1976 1980 1983 Total Dates interest payable Maturity dates Bonds outstanding at beginning of current year Bonds sold during current year Retirements: Principal Bonds out st anding at end of current year Retirements: Interest Paying agent's name and address Bonds voted: $12,344,217 Series 1976: InterFirst BankIFort Worth Fort Worth, Texas Series 1980: InterFirst BankIFort Worth Fort Worth, Texas Series 1983: Interfirst BankIFort Worth Fort Worth, Texas Bonds approved : $ 6,765,000 Bonds sold: $ 6,765,000 Funds TROPHY CLUB MTJNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF TEMPORARY INVESTMENTS Year ended September 30, 1986 Accrued interest Identification Balances receivable or certificate Interest Maturity at end at end number rate date of year of year Debt Service Fund American Capit a1 Governmental Securities On 123,998 shs. 29-670479846-3 11.10% demand $1,477,093 $17,930 General Water and Sewer Fund Certificate of deposit TROPHY CLUB MTJNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF TAXES RECEIVABLE September 30, 1986 Operat ions and Maintenance Taxes Tot a1 - Taxes receivable at beginning of year $ 1,334 $ 20,768 $ 22,102 Adjustments (3) (3) 1985 tax roll 45,368 668,575 713,943 Total to be accoun~ed for 46,702 689,340 736,042 Less collections: Current year Prior years Taxes receivable at end of year Taxes receivable by years: 1980 1981 Property valuations: Land Improvements Personal property Exemptions Total property valuations Tax rate per $100 valuation Tax rolls Five years ended September 30, (in thousands) 1986 1985 1984 1983 1982 - - - - - $ 32,332 $ 21,235 $ 21,702 $ 21,503 $21,731 84,646 73,070 59,731 58,482 26,304 2,427 2,113 1,863 - 232 (17) (17) (15) (12) (n For the year ended September 30, 1986: A1 1 taxes Percent of current taxes collected to current taxes levied 97% Percent of current and delinquent taxes collected to current and delinquent taxes outstanding at beginning of tax year 95% (1) The audit for 1982 mas prepared by other auditors and this information was not included in the report; consequently, it is not provided. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF NOTES PAYABLE September 30, 1986 Payable Accrued Interest Maturity at end interest rate date of year on notes General long-term debt: FMC Corporation Totals - All funds TROPHY CLUB ?LUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS Year ended September 30, 1986 General fixed assets: Land Buildings Water system Sewage system Drainage system Machinery and equipment Autos and trucks Furniture and fixtures Engineering fees Additions provided by: Debt Service Fund Contributions by developer Contributions by General Water and Sewer Fund Balances at beginning of year Balances Addit ions at end (deletions) of year TROPIIY CLUB LIUNICIPAL UTILITY DISTRICT NO. 1 COIIPARATI\% STATELICNT OF REVENLICS AND EXPENDITUllCS Years cnded September 30, 1986, 1985 and 19S.l and perlod cnded Scptornbcr 30, 1983 and onc year cnded Llarch 31, 1883 ~ :\l~~mul~_i_~-. -~ ~ PE~.CC~~. of sltiid io~al raranilc___ Pcriail Yew Sc:*l' enclec! Periorl oitderl Yfnr ei~detl Sei~r ended cildcd tertrler! Scpteslll_cr 30, ~ .. - - -. September 30, I1!ilrcI1 31, Septcml,er 30. scpi. 30, Mnrc!, 31. -. 1986 1985 1984 - -- 1983 -~ 1883 1986 1985 19S.J ,- - - - - I883 1953 Gooern1 1VaLcr nnd Sewer Fund revcnuez Service rcvcnucs Tap cosnecrion Sees Pcnnlty nsd inl.crcst revcnues Esoense rrirnbursemcnts ~ak rcvenucs hliscellaneous Tociii Gcncrill milei. and Seti'cr Fund i't?vcoiies Genernl Water snd Sewcr Fund cxpenditures Purchnsed moter nnd sewer services Pnyroll espenditurcs ~riicssionil fees Recurring operntinf cspeoditurcs Capital 0ut1:iv ~li&cellancous. Total Gen~rnl. Wnter and Sewer Fund expenditures Escess (deficiency) oS General Wntcr and Scwcr Fund revenues ovcr cxpenditurcs Dspt Service Fund rcvcnues Tns revenues Penalty and interest Interest on investmeilta Miscellaneous Total Dcbt Service Fund revenues Debt Service Fund espenditures Tns collection expenditures Capitol outlny ncbr service:. Prinoipnl retiresicnt Interest and Siscnl charges Total Debt Service Fund esgenditures Excess (deiiciencyl of Dcbt Servicc Fund rcvenucs ovcr expenditures $ i.~5=,.?89 S~iL?>_s_s_sSs33~ $;&52.>1j99) S[.2>Oo 9s) SBl-,=%%G 8 -- 3. 2. I.. 7 lfi.:l': 'L'ROPBY CLUE LIUNICIPAL UTILITY DIS1'RICT NO. 1 CO!~IPARxVL'IVT. STATEIIENT OF REVENUES AND ESPLNDI'I'UPES Yenrs cndcd September 30, 1986, 1985 ond 1989 and period cnded September 30, 1983 nnd one year ended !,lnrch 31, 1983 (Continued) Amouni - -- IlerCent 0s ruiid totrll revsouc- Pcriod yeas YC~P ciidetl Period ended Year ended Ycnr ended cnded cnded Scptemb~r 30, Septcntber 30L Scpt:. 30, !~I:%rch 31, SCPZ!X!!?~L?OL .wL% - 1988 - 1985 -. 1884 - 1983 -- 1983 -. 1983 1983 - 1118j - Cu~itz1 llrojccts Fund ReYC"Ue3 - S - S S 23,723 S 4,080 S . - - - - - -- Cilpitnl oullnp . '13,873 --.z ?,590,8G9 - Tot;il Cnnitnl Projects Fund expenditures - -12,872 -_-; 2,59O08G~ - ~scess (deficiency) of Callital Prolecrs Fund revcnucs over expenditures --- -. S~-?3,721 $238,713) S .;_-: !%23ji104s.!%i) S-- - vcroae nonun1 debt service rcqllirrlncnt far nnpnid princip:~l and inieresr S 650,655 $ 654,453 S 656,716 S 658.074 $372,002 Excess revenues from Gcnrrvl Fund and Debt Service Fund before espenditures for debt service 733,880 608,380 634,810 100,211 389.23-1 Covcrngc (escess revenues ns adjusted divided by annunl debt service requirement) 1.13 0.92 0.97 0.15 1.07 Number ai mnter nnd sewer cannoctions Rt end af year 1,257 1,114 9.11 7.1'1 750 Total amount 01 motcr billed to customers (in thouaoi~ds 01 gallonal 358,321 269,108 210,787 91,895 121,918 Totnl amouiir or mnter pumpcd into system (in thousands of gallons) 290,960 266.76511) 180,102 107.445 152,531 Pfrccntafie a1 wnLer billed ro water pi~mped 88.8X 100.97(11 75.251 88. 32l: i9.93: (1) During 1984-1985, rhc calibration equipment had mechanical mnlfuactions. As ;\ result, the totals oi antcr pumped into the system arc not correct. 0 kx ., k > r 0 i C D z 0 0 L 0 0 , 1 .- z 000 0 00 0 00 00 C. 000 0 mo 0 00 00 .- 999 ? 99 9 "0 '"0 8. -- w- B 000 0 mo 0 .O .O iLnd 0 niLn 0 00 00 i! 0 C 1" Ori Oit - " om 0- i 0, c u. 0 0 0 Ln i PI - +, '3 >. 7 rY DISTRICT NO. 1 3RSONNEL AND CONSULTANTS 1986 Term of Fees office elected and ex~ellse and expires or reimbursement date hired -- 09-30-86 Kesiclcnl; 0 r Title at year-end District? President Yes Vice-Presiden t Yes Secret ary-Treasui-er Yes Director Yes Director Yes General Manager Nu Incept ion $ 6,387 Legal Counsel No Certified Public 03-31-83 S 9,190 Accountants No ily relationshil?~ (21s defined by the Texas Water Code) with nia,:ior e District's developer or with any of the District's consultants. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1986 1. On the following chart, provide the appropriate check marks for each listed accounting record. Under the "USED?" block for each record indicate either "NO" (it is not used) or "YES" (it is used). Under the "HOW KEPT?" block indicate if records are maintained manually, by hand, or if data are input to a computer. Under the "WHEN UPDATED?" block show how often entries are made to each record. If entries are made less often than monthly, write in the fre- quency under "How Often?". Indicate who provided the information for the table below: Sherry Johnson USED? HOW KEPT? WHEN UPDATED? BY BY HOW RECORD NO YES HAND COblPUTER DAILY WEEKLY MONTHLY OFTEN? --- Description of accounts X X X Chart of accounts X X X General journal X X X Cash receipts journal X X X Cash disbursements journal X X X Check register X X X General ledger X X X Customer subsidiary ledger X Fixed assets ledger X X Yearly Bank reconciliation X X X Trial balance X X X X -- 2. Does the district use double entry accounting? YES NO 3. What is the usual location of the accounting records? 100 Waterplant Road, Trophy Club, Texas 4. Did you identify, during the course of your examination of the financial statements of the water district, any areas pertaining to accounting matters in which action should be taken by the Board of Directors of the water district? X -- YES NO If Yes is checked for Question 4, have these topics been discussed in a Management Letter to the water district's Board of Directors? TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1986 (Continued) 5. Did you obtain representation from the Board of Directors of the water district that all records of the water district were made available to you for your examination? 6. Did the water district: a. Use the Capital Projects Fund and Debt Service Fund only for purposes authorized by the Board of Directors of the water district and/or within the provisions of the applicable bond resolutions? b. Properly escrow the required amount of cash as prescribed by the Texas Water Commission or disburse the escrowed cash according to the terms prescribed by the Texas Water Commission? c. Do business only with firms or corporations in which members of the Board of Directors had no pecuniary interest? d. Observe the conditions for obtaining grants, gifts, etc., or observe agreements with governmental agencies for the purpose of securing funds or services? e. Have a contract for Social Security coverage for its employees with the Texas Employees Retirement System? 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 Employees Retirement System? g. Deposit receipts 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? X - -- YES NO X -- YES NO X -- YES NO X -- YES NO (1) -- YES NO X -- YES NO X -- YES NO '1 -- YES NO .? -- YES NO (1) Xo intergovernmental transactions -30- TROPHY CLUB MU?lICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1986 (Continued) 7. Note: A management letter is an audit scope requirement of the Water District Accounting Manual. a. The date of the most recent management letter was November 24, 1986. b. Were recommendations explained to and discussed with administrative officials of the water district? c. Is there evidence indicating that the previous year's recommendations have been or are being implemented? 8. The Texas Water Code makes specific provisions relating to security provided by depository banks. After consideration of the applicable laws pertaining to the specific water district, did the depository bank provide adequate security of the correct type? X -- YES NO X -- YES NO y7 h -- YES NO Please indicate for - each depository: a. The name of the depository bank - Northwest Bank b. Amount of F.D.I.C. coverage (if member bank) $300,000 c. Amount of bond or other security pledged as of the end of the fiscal period (par value) $200,000 d. Largest cash balance $981,491 e. Date of largest cash balance 02-26-86 f. The amount of bond or security pledged at the time of the largest cash balance (excluding F.D.I.C. coverage) a. The name of the depository bank - First National Bank of Grapevine b. Amount of F.D.I.C. coverage (if member bank) $100,000 c. Amount of bond or other security pledged as of the end of the fiscal period (par value) None d. Largest cash balance $104,045 e. Date of largest cash balance 04-30-86 f. The amount of bond or securiry pledged at the time of the largest cash balance (excluding F.D.I.C. coverage) None TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1986 (Continued) a. The name of the depository bank - InterFirstIFort Worth b. Amount of F.D.I.C. coverage (if member bank) $100,000 c. Amount of bond or other security pledged as of the end of the fiscal period (par value) $2,000,000 d. Largest cash balance e. Date of largest cash balance f. The amount of bond or security pledged at the time of the largest cash balance (excluding F.D.I.C. coverage) 9. The water district's taxes were collected by a district employee. 10. Was the tax assessor-collector bonded as required by law? X - - YES NO 11. What was: a. The tax assessor-collected bonded for? $ 10,000 b. The greatest amount of the district's taxes in the tax assessor-collector's possession at any one time? (2) c. The frequency of tax receipts deposits with the bonded depository? Weekly 12. We (check one): a. Actually examined the records of the tax assessor-collector X b. Received written confirmation for tax data from the tax assessor-collector c. Accepted tax data furnished by the district's administrative offices (2) Receipts are deposited as received into district account. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COWLETED BY AUDITOR Year ended September 30, 1986 (Continued) 13. Were local tax revenues (including delinquent taxes and interest and penalties on taxes) properly - X - separated for debt service? YES NO 14. Was the waTer district in compliance with applicable bond resolutions, with the general or special legislation under which the district was created and with the specific statutes excerpted and included in the Legal Compliance Guidelines in Section 70-03-1 of the Water District Accounting Manual? 15. Full and complete explanations and/or references to notes, schedules (or comments in the auditor's report letter) for responses marked (*). X -- YES NO CERTIFICATE OF THE BOARD OF DIRECTORS Trophy Club Municipal Utility District No. 1 Name of Water District Denton County We, the undersigned, do hereby cer~ify hat the audit report of the above-named Water District for the period ended September 30, 1986, was received by the Board of Directors on the day of 1988, and was reviewed and ( ) approved; ( ) disapproved at a meetlng of the Board of Directors of the Water District on the day of , 1988. , > ;. i .,,' ! /.' , . . : ' ,,. < .: <.,. /<,:. (, Signature of Board Secretary Signature of Board President