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Home My WebLink AboutFY Ended September 30, 1987TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES YEAR ENDED SEPTEMBER 30, 1987 with REPORT OF CERTIFIED PUBLIC ACCOUNTANTS ANNUAL FILING AFFIDAVIT THE STATE OF TEXAS 1 ) COUNTY OF DENTON 1 Before me, the undersigned authority, on this day personally appeared JEROElE H. SVORE , President or Chairman of the Governing Board of Trophy Club Municipal Utility District No. I, known to me to be the person whose name is here- under subscribed, and who, being by me duly sworn, upon oath says: I hereby duly swear that to the best of my knowledge the district named above has complied in full with all -- annual audit report filinq requirements of Section 50.374 of the Texas Water Code by filing copies of its annual audit report for the fiscal year endinq September 30, 1987, in the district's office and with - - the following city or county as listed below:, Dated: TOWN OF TROPHY CLUB (Typed Name of City or County) By: JEROPlE H. SVORE, PRESIDENT (Typed Name and Title) Sworn to and subscribed to before me this 20th day of JANUARY, 1988 (SEAL) px \/\ch&~ (.~>naturk-bf Notary) JUDY S. TANNEHILL (Typed Name of Notary) My commission expires on 9/6/89 Notary Public in and for the State of Texas. TABLE OF CONTERTS Report of certified public accountants 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 Con~bined statement of revenues, expenditures and changes in fund balance - budget and actual - General Water and Sewer Fund Notes to combined financial statements 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 'evenues and expenditures - four years and period Insurance coverage Board members, lrey administrative personnel and consultants Questionnaire to be completed by auditor Certificate of the Board of Directors Page - 1 CERTIFIED PUBLIC ACCOUNTANTS 3015 WEST FIFTH STREET FORT WORTH,TEXAS 76107 817/338-0061 GUlNN W. PHILLIPS DAVID E.WELCH JOE A. DILLARD CONNIE JO ROBERSON JAMES L. BUXTON RANDAL R. BOYTS Board of Directors Trophy Club Municipal Utility District No. 1 ~oahoke, Tesas We have examined the accompanying combined financial statements of Trophy Club Municipal Utility District No. 1 at September 30, 1987, 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 hlunicipal Utility District No. 1 at September 30, 1967, 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 esanlination was made for the purpose of forming a11 opinion on the combined financial statements, taken as a !vllole. The accompanying supplementary schedules listed in the table of contents, pages 17 through 36 are presented for 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 esamination of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements talren as a \\'hole. - TROPHY CLUB !,!UlilCIP,IL UTILITY DISTRICT KO. 1 CO>!BI:<LD BALXiCE SilEET - ALL TUhB TYPES ASD nccouivr GROUPS Currcnt assers Ca.511: Unrcstrlcred cvsb Restricted cash Totol cash Temporary invcstscnts, or cast: Unrsstricied Restricted Totnl tcmpornry investments Totnl c;rsh end tcnqmror) invcstmciirs Accaunrs recervvblc arid uccrued revenue Interfund recclvnbles Gcncrol fixed ossets (Notcs 3, i nnd 6) Intnnrible and orher nrscre Provision ior bonded debt Bmnunt io be provided for retirement of gencrrl long-tcrm debt Totol nsscis Totals Guvcrnsiental fund tl'pcs nccount crouils (~sciiiorsndum only) General Dcbr Capital Gcncral Grlicral Year ended Year ciidcd anier nnd Service Pro,jccts fixed long-term Septeiiibcr 30, Scptcnlbcr 30, Sewer Tund Fund BSSC~S dcbl. 1887 1886 TROPIIY CLUB LIURIC1P:lL OTILITY DISTRICT !<O. 1 COIlilIiiED U:ILBI<CE SHEET - ALL FU!<D TY12ES AND ACCOUNT GIIOUPS September 30, 1987 (Co~itlnucd) Current linbililice Accounis gnynblc and accrued ex1,cnses llefuodnblc deposits Interiund pnyablcs Totnl current liabilities Noics payable Deferred income Bonded debf pnynble (Note 5) Total linbilitics Comrnilnicnts (Note 7) FUND EQUITY Invesr!nenr in general Iiscd usscts Fund bnlnnces: ncscrvcd for cuslomcr dejlosiis Rcscrvcd for dcbr scrvicc nescrred for consrruction Unl'cstrici~d Totnl fund balnncca 'Total fund erluiLy Total liabililics and Iund ccjuity Totiils Goiiernmciiial fund types ilccoullt C~(OU]~S (n,cmor:ioduis uiily) Gciicral Debt CugiLt11 Generill Gclicral Ycnr endcd YUBI. cndcd sarcr and service Projccrs Iised loiig-lere SopLeznbcr 30, ScpLcml~cr 30, Scncr Fund Fund -- - I'und assets debt 1967 1986 TROPIIY CLUB !~IOSICIPAL UTILITY DISTRICT XO. 1 MIIBINED SThTEhlEliT OF REYWUES, E.WEh9I?'I'RES, ilND CIINiGTS IN FUND BALAlgCES - ALL GOYEIlMiIENTAL FU!\D TYPES Yesir ended Septelnbcr 30, 1987 nci-cnues Service revenues (liotc 6) Tnp connection revfnucs Tul revenues (Note 91 Pcnnlty revenue Niscellaneous Interest on iemporary investments Special usscssmcnts Total revenues Expenditures Bull; c.nrer purchases Poproll c:xpeiises En~ploycs benefits Prolcssional fees Cn1,itul ourlvy Uiilitics Recurring opcrnting expenses TLX ~Ssessor-~oll~~tor Lliscelliineous Debt service: Principal retircinerlt Iiitcrest and fiscal chnr~cs Excess (deficiciicg) of revcnucs over cvpcndiiurcs Coveriln~~lltill iund is'llcs General Debt Cul~~tol u:uLer and Scrricc Projccts Sci!,cr Fund Fund Fund Totals (mc~iiur:u~dus onl~) IPAL UTlLITY DISTRlCT KO. 1 IF REVENUES, ESPEhQITURES , AKD ,'ES - ALL GO\'EfiYhlENTAL FUXD TYPES i September 30, 1987 Continued) Totals Go\~e'nmental fund types (memoral?dum only) General Debt Capital Year ended lle:~r ended \\'atel- and Ser\lice Projects September 30, Septe~iiber 30, Sewer Fund Fund Fund 1987 19SG s and T13OPIlY CLUB i\lUNICIPAL UTILITY DISTRICT KO. 1 CO:IIB IRED STATEAIENT OF REVENUES, ESPEI\?)ITURES, AND CIiAliGES IN FUATE BALAitCES - .4LL GO\'ERXUENTAL TUhQ TYPES Year ended September 30, 1987 (Continued) )tI-ier financing sources (uses): Proceeds of general obligation bond refinancing Operating transfers in Operating transfers out Transfers from other municipal utility districts Total other financing sources (uses) Zscess (deficiency) of revenues and other financing sources over expenditures and other uses Fund balances at beginning of year Fund balances at end of year Totals Governmental fund types (memorandum only) General Debt Capital Year ended Year ended \'later and Serl~ice Projects September 30, September 3 Se\!'er Fund Fund Fund 1987 19SG TROPllT CLUB hlUNICIPAL UTILITY DISTRICT NO. 1 CO!\lB IRED STATEhiENT OF REVERUES , EAU'ENDI TURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL \VATER AMD SEKER FUhD Year ended September 30, 1987 General \\'atel- and Server Fund Variance favorable - Budget Actual (unfavorable) Revenues: \\'al:er and se\ver service (Note 6) Inspection and tap fees Ad valorem tax revenues hiiscellaneous and carryover Tot a1 revenues Esyenditures: \\later and Server Department: Salaries, wages, benefits and taxes \Yater purchases and power (water, sewer, utilities and telephone) Consumable supplies hlaintenance and repairs Capital ex~enditures Other expenses Total \\later and Se\i2er Department Administrative: Salaries, irlages, benefits and taxes Professional fees: Legal Accounting and auditing Engineering Maintenance Contract labor Printing and office supplies Post :1ge Utilities and telephone Insurance and bonds Travel and seminars Tax office contract services TROPIIY CLUB hlUNICIPAL UTILITY DISTRICT NO. 1 COMBINED STATEhIENT OF REVEITUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL WATER AND SEKER FUND Year ended September 30, 1987 (Continued) General Budget Expenditures: (continued) Administrative: (continued) Legal notices and publications S 500 Repairs and maintenance 950 Capital expenditures 2,500 Other expenses 3, 600 Total arlministrat ive Fire Department: Salaries, wages, benefits and taxes Utilities and telephone Tas collections expense Dispatch Note payments Schools and training Uni forms Fuel and sul~plies hlaintenance and repairs Insurance and bonds Capital improvements Other expenses Total Fire Department Total espenditures Excess of revenues over expenditures Fund balance at beginning of year l.'und balance at end of year Water and Selr'er Fund Variance favorable - Actual (unfavorable) See accoml>:inyiiig notes. -7- TROPHY CLUB illLINICIPAL UTILITY DISTRICT NO. 1 NOTES TO CORIBINED FINANCIAL STATEMENTS September 30, 1987 1. Summary of accounting pol~icies a. Reporting entity - A11 pertinent documents, transactions, contracts, and correspondence ~vith other governmental agencies were reviewed to determine the reporting entity. Based upon this review, only the activities of the Trophy Club 1,lunicipal Utility District No. 1 are included in this report. b. Description of funds - The District has established a number of funds, in conformance with generally accepted accounting princil)les and the recommendations of tlie National Council on Governmental Accounting, for the purpose of accounting.for transactions in compliance with legal requirements. Funds and account groups in use by tlie District in accounting for its financial activities are as follows: Governmental funds General Water and Selr'er Fund - To account for all of the general water and sewer revenue of the District not specifically levied or collected for other District funds, and for expenditures related to the maintenance of operations. Debt Service Fund - To account for the source and disposition of funds for paying interest and principal on general long-term debt Capital Projects Fund - To account for %he acquisition of capital facilities being financed from bond proceeds. TROPHY CLUB h1UNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COhlBINED FINAKCIAL STATEMENTS September 30, 19S7 1. Summary of accounting policies (continued) Account groups General Fised Assets Accounts - To account for property and equipment of the District. General Long-term Debt Accounts - To account for the unrnatured pi-incipal of outstanding bonds. c. Basis of accounting - The District maintains its accounting records on the modified accrual basis ivliereby 1-evenues and expenditures are recognized in the accounting period in ivliich they are earned or incurred i\,it11 the esception of interest on general long-term debt and tax revenues ivhich are recognized when due. d. Property, plant and equipment - Property, plant and equipment is recorded at cost when acquired. General. fised assets are recorded as expenditures in the General \Vater and Seiver Fund and Capital Projects Fund at the time of purchase and are capitalized in the General Fised Assets Account group. Costs related to repairs and maintenance are recorded as expenditures. Significant renovations and improvements are capitalized. e. Investments - Invesrments are carried at cost which approximates marliet. The District's intent is to hold these investments until maturity. TROPHY CLUB LIUKICIPAL UTILITY DISTRICT NO. 1 NOTES TO CO:\IBIEED FINANCIAL STATEUENTS September 30, 1987 1. Summary of accounting policies (continued) f. Total columns on combined sLatements - Total colulnns on the combined statements are captioned "Alemorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consol- dation. Interfund eliminations have not been made in the aggregation of these data. g. Retirement plan - The District adopted a defined contribution retirement plan in 1984. Under the terms of the plan, a certain percent of eligible salaries is contributed to the plan. 2. Creation of district - Trophy Club Alunicipal Utility District No. 1 mas created by an order of the Texas Water Rights Commission on hlarch 4, 1975, and confirmed by the electorate of Trophy Club hlunicipal Utility 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. 3. Gond interest - In accordance with the bond resolution dated October 39, 1975, a portion of the bond proceeds was deposited into the Debt Service Fund for the payment of bond interest during the construction period. This bond interest has been capitalized :is :in org:lnization:rl cost Sor ~hc: construction period. TROPHY CLUB AIUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COAIGINED FINANCIAL STATElrIENTS September 30, 1987 4. Organizational costs - The District, in conformance with reyuire- ments of the Tesas Water Rights Comniission , capitalized and charged to organization costs for the creation period all costs incurred in the creation of the District allowed by statute. The Tesas Water Rights Coin~nission also recluii-es capitalizatioli as organizational costs for the construction period all costs incurred in the issue and sale of bonds, bond interest and amortized bond premium and discount, losses on sales of invest- ments, accrued interest on investments ~u'chased, attorney fees and some administrative expenses until construction and acceptance or use of the first revenue producing facility has occurred. As the District purchased its facilities already completed by the developer, only those costs funded by bond proceeds wi-e capitalized. 5. General long-rerm debt - At September 30, 1987, the District's long-term debt consisted of: Rmge of General interest I.ong-telm Clu-rent Long-teim Maturity rntes debt maturities maturities Wter uorlrs and saver system conhjllat ion unlimited tas aid Serially revellue bnds througl? 5.50 - series 1987 2007 S.GO 5 Sl'l0,OOO A$-5,535,000 - TROPIIY CLUB hIUXICIPAL UTILITY DlSTRICT KO. 1 XOTES TO COhlBlRED FINANCIAL STATEAIEKTS Septeinber 30, 1987 5. General long-term debt (continued) A schedule of bond maturities for the nest five (5) gears is as follows: Year - 1988 1989 1990 Thereafter Tax and revenue bonds series 1987 Total $ 571,763 $ 571,763 574,062 574,062 570,438 570,438 571,137 571,137 575,990 575,990 8,617,725 8,617,725 Less interest 5, SOG ,115 5, 806, 115 Tax and revenue bonds authorized and unissued as of September 30, 1987, amounted to $5,579,217. The bonds are payable from the proceeds of an ad valorem tax levied upon all property subject to taxation within the District, without limitation as to rate or amount, and are further payable from and secured by a lien on and pledge of the net revenues to be received from the operation of the District's ~~:ater\~:oi-lis and sanitary sewer system. The provision of xhe bond resolutions relating to debt service requirements have been met and the cash allocated for these purposes is suf ficj enx to rlieet debt scr\.ice recluireniei~ts for the fiscal year eirded SepLember 30, 11)SS. TROPHY CLUB hlUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COhlBINED FINANCIAL STATEMENTS Septenlber 30, 1987 5. General long-term debt (continued) The outstanding bonds are callable for redemptio~~ prior to maturity at the option of the District. The bonds may be called in whole or in part for the purpose of retire~nent or refunding, or both, at par in addition to unpaid accrued interest. G. Water and sewer service rates - The Trophy Club hlunicipal Util-ity District No. 1 has established the follo~i'i11g \!later and sewer service rates: Tap fee 6350.00 Sewer inspect ion fee 25.00 Water service only: Treated water: First 4,000 gallons of water used - minimum bill Each 1,000 gallons of water used Each 1,000 gallons of i2!aLer used in excess of 25,000 Untreated water - each 1,000 gallons of water used Irrigation water - each 1,000 gallons used 1.25 Standby fee per month 7.00 Se\r:er charge per month - minlniuo~ bill Semer charge per month - rnaximunl bill Each 1,000 gal Ions of water used - in ezcess of 4,000 TROPIIY CLUB AlUKICIPAL UTILITY DISTRICT KO. 1 NOTES TO COhIBIKED FIi<ANCIAL STATEhiENTS September 30, 1987 7. Commitments - The District has an agreement with a developer whereby the developer awards contracts and malies progress payments to independent contractors for the construction of works, improve- ments, facilities, plants, equipment and appliances necessary to provide a mater\\,orlts system, sanitary sewer system, s-torm se\?'er and drainage system ttjithin said District. Upon the completion of a project and the authorization of a bond issue, the District is obligated to a percentage of the total cost of the project plus accrued interest from the date of the progress payments to the developer. 8. Changes in general fised assets - A sulwary of changes in general fised assets follows: Balance September 30, 1986 Land % 140,372 Buildings 223,013G Yiat er system 2,403,503 Sewage system 1,727,062 Drainage system 972,898 Alachinery and equil~ment 129,058 Autos and trucks 109,627 Furniture and fixtures 39,122 Engineering fees 761,690 Capitalized construct ion period costs 522, GSS Construction in progress - Additions (deletions) Balance September 30, 1987 $ 140,372 223, OSG 2,403,503 1,730,757 972,898 146,593 119,916 40,097 763,324 522, GSS 374,598 'kEspenditures fro111 genc.r:11 water and sewer fund TROPHY CLUB h1UNICIPAL UTILITY DISTRICT KO. 3 NOTES TO COMBINED FINANCIAL STATERIGKTS September 30, 19S7 9. Property taxes - Prol~erty taxes attach as an enforceable lien oil property :IS of January 1, are due October 1, and become delinclue~~t on February 1. Property taxes for the District are not limited as to rate of amount. The District's current tax rate is $. 598 per $100 of assessed val.uation, which is al)proxi.mately one hundred percent (100%) actual ualue. 10. Retirement plan - The District participates in a defined contribution retirement pension plan. All fulltime employees (tufenty-one (21) years old) are covered after a preliminary period. Vesting starts after four (4) years. 11. Joint Venture - The District and Gibraltar Savings Association are joint venturers in various assets used to provide \Vater and Sewer services to persons who live in Troply Club, Texas. Ownership of the assets is as follo\vs: District Gibraltar l~ercent percen-t Land on which treatment plant is located 60.0% 40.0% \Vatel- plant 23.6 76.4 Twenty-one (21) inch Fort \Sorth water line 37.0 63.0 Elevated tank 40.0 60.0 Land and hlunicipal Coml~lex 23.6 76.4 Treatment plant (based on number of taps) 30.0 70.0 The developer (Gibraltar Savings) and the District have nn agl.eement nialiing the District the managing Di.st~-ict. TROPLIY CLUB h1UKICIPAL UTILITY DISTRICT NO. 1 NOTES TO COhlEINED FINANCIAL STATEBIENTS September 30, 1987 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 revenues belong to the districts using the system. Based upon this arrangement, the entire project is included in the records 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 revenues from the residents. The developer has funded its share of the joint venture. In the event that the o-ther municipal utility districts using the systenr sell bonds, the developer will sell its interest to those districts. 12. Extinguishment of debt - During 1987, the District issued bonds in the amount of $5,675,000. The proceeds, along with cash on hand in the Interest and Sinking Fund, were used to extinguish the three (3) existing outstanding bond issues. Funds so deposited in an irrevocable trust are adequate to fund principal and interest payments until the remaining bonds are callable. At that time, all outstanding bonds \!.ill be retired. At September 30, 1967, $6,305,000 in bonds \vui-e outstanding. SUPPLEBIENTAEY SCIIEDULES PAL UTILITY DISTRICTS NO. 1 AN? TEBiPOR-4RY INVESThiENTS - ALL FUL-S September 30, 1987 General \\later and Se~!;er Fund rary investments nt expenditures 905,829 s - - 16.117 General Water 32,494 applied 954,440 Totals (memorandum oilly ) Debt Capital Year ended Year eilded Service Projects September 30, September 30, Fund Fund 1987 1986 1,532, OSS 54,891 1,657,565 1,769,340 balances, S-~G7-?~, ~~ 7x3 TROPIIY CLUB b1Uf;ICIPAL UTILITY DISTRICT NO. 1 GENERAL LONG-TERM DEBT SERVICE REQUIREIIIENTS - BY YEARS Pear ended September 30, 1987 Due during fiscal years cliding September 30, Series 1987 Principal Interest due due March and September 1 September 1 Cash and temporary investment balances at September 30, 1986: Debt Service Fund C:ls11 and temporary in\~estment ba1:lnces at Septelllber 30, 1987: Debt Service F~11id Tot a1 S 571.763 Total annual requirements all series :LOB illUKICIPAL UTILITY DISTRICT NO. 1 OF CHANGES IN GEXERAL LONG-TERM DEBT Year ended September 30, 1987 Bond issues Series Series Series Series 1976 1980 1983 1987 Tot a1 beginning $1,435,000 $1,950,000 $3,060,000 $ - $6,445,000 la1 end Series 1976: First RepublicEankIFort \Vorth Fort \ilorth, Texas Series 1980: First RepublicBankIFort \Vorth Fort IYorth, Texas Series 1983: First RepublicBank/Fort \Yorth Fort \'Yorth, Texas Series 19S7: First I?epublicBank/Fort IYorth 5'01-t or, Texas Donds sold: $6,765,000 TROPIIY CLUE AIUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF TEhlPORARY INVESThlENTS Pear ended September 30, 1967 Identification or certificate lnterest l\Iaturity Funds i~urnber rate date - Gel] era1 \\'at el- and Sewer Fund Certificate of deposit 20.163 11.00 04-18-90 Certificate of deposit SO55 7.15 12-28-67 Certificate of deposit 34SG 7.20 12-26-87 Certificate of deposit SO21 6.45 11-16-87 Certificate of deposit GO3 G.GO 11-22-67 Certificate of deposit 12471 G. GO 10-2G-S7 Certificate of deposit 15635 G.595 10-01-87 Accrued interest Balances receivable at end at eild of year of year TROPHY CLUB AIUNICIPAL UTILITY DISTRICT KO. 1 ANALYSIS OF TAXES RECEI\'AGLG September 30, 1987 Operat ions and hlaintenance Taxes - Total Taxes receivable at beginning of year $ 2,018 $ 32,998 $ 35,016 1986 tax roll 191,499 636,328 829,827 Total to be accounted for 193,517 671,326 864,843 Less collections: Current year 173,830 580,097 753,927 Prior years 1,219 22,066 23,285 Tases receivable at end of year - $ 18 2.- 468 -163 $ 87,631 Taxes receivable by years: 1980 $ 42 $ 353 $ 395 1981 142 533 675 1982 - 303 303 1983 43 640 683 1984 16 1 2,369 2,530 1985 412 6, 071 6,463 1986 17, 668 58,894 76,562 $ 18,4G& S 69,163 &87,631 -- - Property valuations: Five years ended September 30, (in thousands) 1987 198G 1985 1984 1983 - - - - - Land $ 33,704 $ 32,332 $ 21,235 $ 21,702 $ 21,503 Improvements 102,062 84,646 73,070 59,731 58,482 Personal property 3,018 2,427 2,113 1,863 - Exemptions (17) (17) - (17) (15) (12) Total property valuations .---- $138 767 -2. 9119 388 . $ 96 401 _- S 83 281 S 79 .A 973 -- p~p - -- Tax rate per $100 \':~lunt ion SO. 598 . . . . . - -. - SO. 598 - SO. -- 598 SO. 598 SO. ~- ~ 56 ~- Trl:; 1.ol1.s s?.?.,S-LY ~- 7.. .. 9 -~ - 9.1" 3 - ,~37G_,i-16.:1 sr &-2G,GG7 S?J.:!7,~9St? Pol: the year cndcd September 30, 1987: All taxes Percent of current taxes collected to current taxes levied 91% Percent of current and delinquent tases collected to current and delinquent taxes outstanding at beginning of tax year 90% TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 -4NALYSIS OF ORGANIZATIONAL COSTS Year ended September 30, 1987 Balances at beginning of year Balances at end of year Additions (decreases) Organizational costs - creation period Engineering and surveys Filing fees, licenses, legal notices and permits Legal fees Director fees and per diem Other costs Total ovganizational costs - creation period Organizational costs - construction period Legal Sees Financial consulting Sees Operating expenses Bond interest expense Amortized bond discount Total organizational costs - construction period Total organizational costs L--A.- ('527 668 Amounts provided: For district organizational costs - creation period by construction fund $ 26,117 For district or gnnizat ional costs - construction period: By Capital Pro,jects 17und 2552,228 By Dcbr Service fund 232,343 Tot:>] distric~ ol~g:~iiizntioiinl costs - construction period 494,571 Toral provided -,-LYA_- S537 GSS - TROPBY CLUB AIUNICIPAL UTILITY DISTRICT RO. 1 SCHEDULE OF KOTES PAYABLE September 30, 1987 Payable Accrued Interest hlaturiry at end interest rate date 01 year on notes General long-term debt: FhiC Corporation Totals - All funds TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 AiiALYSIS OF CIiANGES IN GENERAL FIXED ASSETS Year ended September 30, 1987 General f lsed assets: Land Buildings \\later system Sewage system Drainage system Machinery and equipment Autos and trucks Furniture and fixtures Engineering fees Construction in progress Addit ions provided by : Debt Service Fund Contributions by developer Contributions by General Water and Sewer Fund Balances at beginning of year Additions (deletions) Balances at end of year TROPliY CLUB biUNICIPilL UTILITY DIS'PRICT NO. 1 COIIPtiRllTIVE STATEIIENT OF REVENUES AND EWLNDITURES Ycilrs ended September 30, 1987, 1986, 1985 ~nd IDS.! and jpcriod ciidud Scptcmbcr 30, 19S3 liiIi"Ui1 t PcrceilL 0l l,,,,il Liii;,! I.*:.I2II"E Year cridcd Period coded Year eiidrd Pc~'iod ended Smptember 30. Scprcinbcr 30, Sepiciriber 30. Sapceinber 30. 1987 - 1986 1985 1981 - - - 1983 - 1987 1996 1985 198.1 ---- 1983 General Water nnd Sewer Fund revenues Service revenues Tsp connection fees Pcnillty and interest rcvcnucs E:<pease reimburscacn ts 'Porn1 Gencrnl ii'aLcr. und Srirer Fund revcnucs 1,515,952 719.699 705,391 GG5.645 100.0 271,595 100.0 100.0 1oo.o 1uo.o - General \VaLer and Seivor Fund espcnditurcs Purchased wutcr and sewer services Payroll cspenditurcs ProIessional fees necurring operating espcnditurei CnpiLnl outlay bliscellaneous Torol General Tlotcr and Sc?vcr Fund expenditures Excess (dclicicncy) of Gcncral Bntcr and Sewer Fund reveliilcs over e:ipenditures Debt Service Fund rcvenucs Tax TCYUIILICS PcnulLy niid iniol.cst InLfresL on invcsLr~~esLs \Iiscclli~neous Tots1 Dcbt Service Fund reveoucs Dcbc Scri'icc Fund es~wlidirures Tax collcctiun crpcnditurcs Capirnl auilop OebL aerviac: Principal rctirsmcot Intcrcat and fiscnl chargcs Toccrl Debt Service Fund e:ipcndiiurcs Escess (dciiciency) of Debt Scrricc Fund rcvenues over esDendirurei Arnouii L Percent of lund cotnl revenue znded Period ended Tear elided Period ended ier 30, September 30, Sepre~nber 30, September 30, 1955 198.1 1953 1987 19SG 1955 198.1 1983 - - - - - - + W." 0 0 0000 r 0 r "2 7 7 mmmm r m 0 1 I I I W W 0 0 0 ?_I I I I I I m m mmmm m m m. E! 0 m m mmm" .a m m C -i m r. CY 0 0 0000 b- 0 r omm mmmm r m 0 I I I I g? WY ' WWWY A ;&i 1: r 0 0 OooO ? -, , .z I I I I m m mmmm oj m LC -1 4 4 4 -1 ./ -7 -4 -1 lill r r. w. CCC O " m rrw . r. *. - " + r .z C nnn g 2 "ZZ ggg Ic C CI - g : 2 z In 3 r 5 li i C. C -. Or C r. D i: ii =. r c w. c m v. f w. e L 'i Vi 0 Y. V a r. : P : 3 r. 5 m r; 7.u- m or eoa -"a3 m P 1-(n - n ., rid. a,? 3: .: ,4..* ,ws =wn La&G =la- oom OFF or0 F -',a EO.5 ?WE g 2 C 7w - - - - - s o ;: o-o a*r o= o &. Fyim Tc; F*" rr-w FP = "E'. ,.. . ,., .m:y n:_ m:: nzr ~1 urn rm -7 rim r.0 r 402 ri-0 4-r- 403 erw r -,w m r. $4 d. m 5 rm tz c x + m cc. rr c 4 o -i r- -I )J -7 -1 o r~ m m-: me m m a F m ti, ,* m 1 . IY r* + w. 3 m m mc m m 0 i m $0 P-l IU m LO to l r. 0 5 1 - - " : m m 0 1' F r = C -" ; LC 3 *O ; ; "'" " c u r mu* Fmz "4.. m C C*n; m - mc 0 2. 4 lj- PC s n .? ICf " i g 0; >X ri 0 r. 03 # -! Oh 2 ; rm or. r - 1% sm F 0 mF ZC 0 6 01 m r o m CI Prj r% 5 )i.z 5C 0 H 01F CC m Ce m+- " e m r. - yq 0 -! w. ? b- m * c < g " m - CI TROPHY CLUB hlUNICIPAL UTILITY DISTRICT KO. 1 QUESTIONNAIRE TO BE COAIPLETED BY AUDITOR Year ended September 30, 1987 1. On the following chart, ])rovicle the appropriate checli marlis for each listed accounting record. Under the "USED?" bloclc for each record indicate either "NO" (it is not used) or "YES" (it is used). Under the "I-IO\V ICEPT?" blocli indicate if records are maintained manually, by hand, or if data are input to a computer. Under the "\ilHEN UPDATED?" bloclc show how often entries are made to each record. If entries are made less oftell than monthly, write in the fre- quency under "Bow Often?". Indicate who provided the information for the table below: Becky Thurston USED? HO\V EFT? BY BY \\FEN UPDArn? HOW RECORD NO YES FIND CONPUTER DAILY \\EWLY hyDIONTi3LY OFTEN? --- Description of accounts X X X Ch-t of accounts X X X General journal X X X Cash receipts journal X X X Cash disbursenlents journal X X X Checli register X X X General ledger X X X Customer subsidiary ledger X X X Fixed assets ledger X X Banlc reconcilia-tion X X Trial balance X X 2. Does the district use double entry accounting? 3. What is the usual location of the accounting records? 100 Municipal Drive, Trophy Club, Texas 4. Did you identify, during the course of your examination of the financial statements of the water district, any areas 1)el.tclining to accounting matters in n,hich nctjon should be talien by the Eonrd of Directors of the water district? X -- YES NO x -- YES 11'0 If Yes is checked for Question 4, have these topics been discussed in a hlanagement Letter to the rvater district's Board of DirecLors? TROPHY CLUB UUNlCIPBL UTILITY DlSTRICT KO. 1 QUESTIONNAIRE TO BE COhlPLETED BY AUDITOR Year ended September 30, 1987 (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 pour examinat ion? G. Did the water district: a. Use the Capital Projects Fund and DebL Service Fund only for l?urposes 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 \\later Commission? c. Do business only nith 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 ~vith governrne~ltal agencies for the purpose of securing funds or services? e. Have a contract lor Social Security coverage for its employees ~vith rhe Texas Employees Retirement System? f. Make remittances of Social Security taxes according to the terms of the contract for Social Security coverage \::ith the Social Security Division of the Texas Employees Retireme~lt Sys-Leln? g. Deposit receipts to the proper funds kept by the approved depository bank? h. Draw checlis only on funds appl-oved by the Board of Directors and si~ned by :luthorized personnel? X - - YES NO X - - YES NO X - - YES NO X - - YES NO (1) - - YES NO X -- YES NO X - - YES NO h - - YES NO n - - YES NO (1) No intergovernmental transactions TROPHY CLUB hlUiVIC1PBL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COhlPLETED BY AUDITOR Year ended September 30, 1967 (Continued) 7. Note: A man:lgenient letter is an audit scope requirement of the Water District Accounting Manual. a. The date of the most recent management letter was December 4, 1967. b. \\'ere 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? x - - YES NO X - - YES NO 6. The Texas Water Code malres specific provisions relating to security provided by depository banks. After consideration of the applicable laws pertaining to the specific water district, did the depository - - X bank provide adequate security of the correct type? 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 SGSS, 127 e. Date of largest cash balance 03-24-87 f. The amount of bond or security pledged at the time of the largest cash balance (escluding 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) $200,000 c. Amount of bond or other securiry pledged as of the end of the fiscal period (par value) None d. L,argest casll b:~l;liice $12S,916 c. Date 01 1~11-gust cash balance 03-2s-87 f. The anlount 01 bond or security 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 COhlPLETED BY AUDITOR Year ended September 30, 1987 (Continued) a. The name of the deposirory bank - American Capital Government Securities b. Amount of F.D.I.C. coverage (if member ba111i) $I 100,000 c. Amount of bond or other security pledged as of -the end of the fiscal period (par value) None d. Largesr cash balance I $1 594,527 e. Date of largest cash balance 05-27-87 f. The amount of bond or security pledged at the time of the largest cash balance (excluding F.D.I.C. coverage) $1,494,527 a. The name of tlie depository bank - American Bank of Commerce b. Amount of F.D.I.C. coverage (if member bank) $200,000 c. Amount of bond or other security pledged as of the end of the fiscal period (par value) None d. Largest cash balance $365,635 e. Date of largest cash balance OG-30-87 f. The amount of bond or security pledged at Lhe time of the largest cash balance (escluding F.D. I .C. coverage) a. The name of the depository bank - American Bani; hlid-Cities b. Amount of F.D. I .C. coverage (if member banlr) $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 e. Date of largest cash balance f. The amount of bond or security pledged at Lhe time of tlie largest cash balance (excluding F.D.I.C. coverage) None TROPHY CLUB hlUXICIP9L UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO EE COi!PLETED BY AUDITOR Year ended September 30, 1987 (Cant inued) a. The name of the depository bank - Haltom Bank b. Aniount 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 val.ue) None d. Largest cash balance S100,OOO e. Date of largest cash balance 09-30-87 f. The amount of bond or secu~ity pledged at the time of the largest cash balance (excluding F.D.I.C. coverage) None a. The name of the depository bank - Riverbend Bank, Fort \'forth b. Amount of F.D.I.C. coverage (if member bank) S100,OOO c. Amount of bond or other security pledged as of the end of the fiscal period (par value) None d. Largest cash balance $100,000 e. Date of largest cash balance 09-30-87 f. The amount of bond or security pledged at the time of the largest cash balance (excluding F.D.I.C. coverage) None a. The name of the deposiuor)~ banli - First RepublicIFort \\'orth 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 $ 12,7FG e. Date of largest cash balance 03-30-87 f. The amount of bond or security pledged at the time of the largest cash balance (escluding F.D. I. C. coverage) None TROPHY CLUE h1UNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COIIPLETED BY AUDITOR Pear ended September 30, 19S7 The \\later district ' s taxes were collected by a district employee. Was the tax assessor-collector bonded as required by law? What was: X -- YES NO 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? Weelily \Ye (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 \Yere local tax revenues (including delinquent taxes and interest and penalties on taxes) properly -- X separated for debt service? YES NO Was the water district in compliance with applicable bond resolutions, with the general or special legislation under which the district mas created and with the specific statutes excerpted and ilicluded in the Legal Compliance Guidelines in Section 70-03-1 of the \\'ater District Accounting !!lanual? Full and complete czp1an:~tions ~~~id/or I:~.~~YCIIC~S to notes, schedules (01' coli~rneiil,s in Llic :!.uclitorfs report letter) i'o~ responses i!i:~rl:.ed ( *). 1Iccc.jpts are dcl~osired as received into distl'ici account. X -- YES II'O CERTIFICATE OF THE BOARD OF DIRECTORS Trophy Club hlunicipal Utility District No. 1 Name of Water District Denton County \\'e, the undersigned, do hereby certify that the audit report of the above-named Water District for the fiscal year ended September 30, 1967, was received by the Board of Directors on the 15th day of December , 1967, and was reviewed and ( X) approved; ( ) disapproved at a meeting of the Board of Directors of the \\later District on the 15th day of December , 1967. Signature of Board Secretary Signature of Board President