HomeMy WebLinkAboutFY Ended September 30, 1989TABLE OF CONTENTS
Reoort of independent auditors
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
Combined statement of revenues, e.xpenditures,
and changes in fund balances - budget and actual -
General Water and Sewer Fund
Notes to combined financial statements
Su~~lementan 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 - five years
Insurance coverage
Board members, key administrative personnel
and consultants
Questio~aire to be completed by auditor
Certificate of the Board of Directors
CERTIFIED PUBLIC ACCOUNTANTS
3015 WEST FIFTH STREET FORT WORTH, TEXAS 76107
8171338-0061
DAVID E WELCH
JAMES L BUXTON
RANDAL R BOYTS
INDEPENDENT AUDITORS' REPORT
Board of Directors
Trophv Club Municipal Utility District No. 1
~ro~h; Club, Texas
We have examined the accompanying combined financial statements of Trophy
Club Municipal Utility District No. 1 at September 30, 1989, 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 considered necessary in the circumstances.
In our opinion, the combined financial statements referred to above present fairly
the financial position of Trophy Club Municipal Utility District No. 1 at September 30,
1989, and the results of its operations for the year then ended, in conformity with generally
accepted accounting principles applied on a basis consistent with that of the preceding year.
Our examin~tion 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 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 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 10, 1989
'TIIOPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
COMBINED BALANCE SHEET - ALL FUND TYPES
AND ACCOUNT GROUPS
September 30, 1989
Totals
Governmental fund tvnes Account - grouns (nieniorandum onlv)
General Debt Capital General General Year ended Year ended
Water and Service Projects fied long-term September 30, September 30,
ASSETS Sewer Fund Fund Fund assets debt 1989 1988
Current assets
Cash:
Unrestricted cash $240,404 $ 92,226 $ - $ - $ - $ 332,630 $ 453,606
Restricted cash 59.502 78.403 . - 137.905 81.592
Total cash 299.906 170,629 - - - 470,535 535.198
'I'eniporary investments, at cost:
Unrestricted 302,891 - 302,891 325,000
Restricted - - - - - 12.500
Total temporary investments 302.891 - - - - 302.89 1 337.500
Total cash and
temporary investments 602,797 170.629 773.426 872,698
Accounts receivable and accrued revenue,
less allowance for doubtful accounts
of $34,066 in 1989 and $8,899 in 1988 177,017 131,582 - - - 308,599 268,240
Interfund receivables - - - - 2,946
Total current assets 779.814 302.21 1 - - 1,082.025 1.143.884
General fixed assets (Notes 3, 4 and 8) - - - 7.725.900 - 7,725.900 7.489.202
Intangible and other assets - 148.969 - - - 148.969 157.481
Provision for bonded deb1
Amount to be provided for retirement
of general long-term debt - - - 5.544.750 5.544.750 5.575.500
Total assets $779.814 $451_,180 $ $7.725.900 $5.544.750 $14,501,644 $14,366,062
TROI'I-IY CLUB MUNICIPAL UTILITY DISTIilCT NO. I
COMBINED BALANCE SHEET - ALL FUND TYPES
AND ACCOUNT GROUPS
September 30, 1989
Totals
Governmental fund tvnes Account erouos - (memorandum onlv)
General Debt Capital General General Year ended Year ended
Water and Service Projects fixed long-term September 30, September 30,
LIABILITIES Sewer Fund Fund Fund assets debt I989 1988
Current liabilities
Accounts payable and accrued expenses $336,033 $ 13,518 $ - $ - $ - $ 349,551 $ 453,199
Refundable deposits 59,502 - - - 59,502 67,722
Interfund payables - - - - - - 2,936
Total current liabilities 395.535 13.518 - - 409,053 523.867
note^ navable - - - 33.750 33.750 40,500
Deferred income . 38.127 - - 38.127 91,634
Bonded debt oavahle (Note 5) - - - 5.51 1.000 5.51 1.000 5,535.000
Total liabilities 395,535 51.645 - - 5,544,750 5.991.930 6.191.001
Commitments (Note 7)
FUND EOUITY
Investment in general fixed assets - . - 7,725,900 - 7,725,900 7,489,202
Fund balances:
Reserved for customer deposits 59,502 - - - - 59,502 67,722
Reserved for debt service 399,535 . - 399,535 273,256
Unrestricted 324.777 - - - - 324,777 344.886
Total Fund balances 384.279 399,535 - - - 783.814 685.864
Total equity 384.279 399.535 - 7.725.900 - 8,509.714 8.175.066
Total liabilities and Fund equity $779.814 $451,180 $ - '7.725.900 $5.544.750 $14,501,644 $14,366,067
See accompanying notes.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND
CI-IANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
Year ended September 30, 1989
Governniental fund tvoes Totals (memorandum onlv)
General Debt Capital Year ended Year ended
Water and Service Projects September 30, September 30,
Sewer Fund Fund Fund 1989 1988
Revenues
Service revenues (Note 6) $1,089,259 $ - $ - $1,089,259 $1,065,028
Tap connection revenues 10,510 - - 10,510 12,600
Tax revenues (Note 9) 134,900 646,999 - 781,899 685,984
Penalty revenue 26,759 29,868 56,627 58,511
Miscellaneous 21,467 - 21,467 16,798
Interest on temporary investments 70,859 31,987 . 102,846 65,811
Special assessments - - - -
Total revenues 1.353.754 708.854 2.062.608 1.904.732
Exoenditures
Bulk water purchase 289,103 - . 289,103 226,250
Payroll expenses 367,246 - 367,246 362,782
Employee benefits 47,450 47,450 38,608
Professional fees 93,256 - 93,256 92,748
Capital o~itlay 236,698 - 236,698 63,384
Utilities 168,615 168,615 165,798
llecurring operating expenses 267,669 - 267,669 235,615
Tax assessor-collector 17,145 - 17,145 25,198
Miscellaneous 20,901 20,901 -
TROPI-IY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
Year ended September 30, 1989
(Continued)
Expenditures - continued
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Proceeds of p~~hlic property
finance obligations
Operating transfers in
Operating transfers out
Transfers from other
municipal utility districts
Total other financing
sources (uses)
Excess (deficiency) of revenues and
other financing sources over
expenditures and other uses
Fund balances at beginning of year
Fund balances at end of year
Governmental fund tvpes
General Debt Capital
Water and Service Projects
Sewer Fund Fund Fund
Totals (memorandum onlv)
Year ended Year ended
September 30, September 30,
1989 1988
See accompanying notes.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL WATER AND SEWER FUND
Year ended September 30, 1989
General Water and Sewer Fund
Variance
favorable -
Budget Actual (unfavorable)
Revenues:
Water and sewer service (Note 6)
Inspection and tap fees
Ad valorem tax revenues
Interest income
Bond proceeds
Miscellaneous and carryover
Total revenues
Expenditures:
Water and Sewer Department:
Salaries, wages, benefits and taxes
Water purchases and power (water,
sewer, utilities and telephone)
Consumable supplies
Maintenance and repairs
Capital expenditures
Other expenses
Total Water and Sewe~
Department
Administrative:
Salaries, wages, benefits and taxes
Professional fees:
Legal
Accounting and auditing
Engineering
Maintenance
Contract labor
Printing and office supplies
Postage
Utilities and telephone
Insurance and bonds
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL WATER AND SEWER FUND
Year ended September 30, 1989
(Continued)
General Water and Sewer Fund
Variance
favorable -
Budget [unfavorable)
Expenditures: (continued)
Administrative: (continued)
Travel and seminars
Tax office contract services
Legal notices and publications
Repairs and maintenance
Capital expenditures
Other expenses
Total administrative
Fire Department:
Salaries, wages, benefits and taxes
Utilities and telephone
Dispatch
Note payments
Schools and training
Uniforms
Fuel and supplies
Insurance and bonds
Capital expenditures
Other e.xpenses
Total Fire Department
Total expenditures
Excess (deficit) of revenues
over expenditures
Fund balances at beginning of year
Fund balances at end of year
See accompanying notes.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COMBINED FINANCIAL STATEMENTS
September 30, 1989
1. Surnrnarv of account in^ policies
a. Re~ortine entity - All pertinent documents, transactions, contracts, and correspondence
with other governmental agencies were reviewed to determine the reporting entity. Based
upon this review, only the activities of the Trophy Club Municipal 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 principles and the recommendations of the National Council
on Governmental Accounting, for the purpose of accounting for transactions in compliance
with 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 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 Proiects Fund - To account for the acquisition of capital facilities being
financed £rom bond proceeds.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COMBINED FINANCIAL STAEMENTS
September 30, 1989
1. Summarv of accounting policies (continued)
Account groups
General Fixed Assets Accounts - To account for property and equipment of the
District.
General Long-term Debt Accounts - To account for the unrnatured principal of
outstanding bonds.
c. Basis of accounting - The District maintains its accounting records on the modified accrual
basis whereby revenues and expenditures are recognized in the accounting period in which
they are earned or incurred with the exception of interest on general long-term debt,
which is recognized when due and taw revenues, which are recognized when received.
d. Property, plant and equipment - Property, plant and equipment is recorded at cost when
acquired. General fixed assets are recorded as expenditures in the General Water and
Sewer Fund and Capital Projects Fund at the time of purchase and are capitalized in the
General Fixed Assets Account group.
Costs related to repairs and maintenance are recorded as expenditures.
Significant renovations and improvements are capitalized.
e. Investments - Lnvestments are carried at cost, which approximates market. The District's
intent is to hold these investments until maturity.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COMBINED FINANCIAL STATEMENTS
September 30, 1989
1. Summary of accountinc. policies (continued)
f. Total columns on combined statements - Total columns on the combined statements are
captioned "memorandum 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 consolidation. 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 Municipal Utility District No. 1 was created by an order of
the Texas Water Commission on March 4, 1975, and confirmed by the electorate of Trophy
Club Municipal 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. Bond interest - In accordance with the bond resolution dated October 29, 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 as an organizational
cost for the construction period.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COMBINED FINANCIAL STATEMENTS
September 30, 1989
4. Organizational costs - The District, in conformance with requirements of the Texas Water
Commission, capitalized and charged to organization costs, for the creation period, all costs
incurred in the creation of the District allowed by statute. The Texas Water Commission also
requires capitalization 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 investments, accrued interest on investments purchased, 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 were capitalized.
5. General lone-term debt - At September 30, 1989, the District's long-term debt consisted of:
Range of General
interest long-term Current Long-term
Maturity rates debt maturities maturities
Water works and
sewer system
combination
unlimited tax
and revenue Serially
bonds series through 5.50 -
1987 2007 8.60 $5,385,000 $163,000 $5,222,000
Public Property
Finance con- Serially
tractual obli- through 7.60 -
oations 1989 1999 9.00 126.000 8,000 118.000
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COMBINED FINANCIAL STATEMENTS
September 30, 1989
5. General lonrr-term debt (continued)
A schedule of bond maturities for the next five (5) years is as follows:
Tax and Tax and
revenue bonds revenue bonds
Year Series 1989 Series 1987 Total
1990 $ 18,199 $ 570,438 $ 588,637
1991 18,434 571,137 589,571
1992 18,579 575,990 594,569
1993 18,634 574,650 593,284
1994 18,599 572,395 590,994
Thereafter 91.835 7.470.680 7.562.515
Less interest -
Principal
Tax and revenue bonds authorized and unissued as of September 30, 1989,
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 waterworks and sanitary sewer system.
The provision of the bond resolutions relating to debt service requirements have
been met and the cash allocated for these purposes is sufficient to meet debt senrice
requirements for the fiscal year ended September 30, 1989.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COMBINED FINANCIAL STATEMENTS
September 30, 1989
5. General lono-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 Utility District No. 1 has
established the following water and sewer service rates:
Tap fee $350.00
Sewer inspection fee 25.00
Water service only:
Treated water:
First 4,000 gallons of water used -
minimum bill
Each additional 1,000 gallons of
water used thereafter
Each 1,000 gallons of water used
in excess of 25,000
Untreated water - each 1,000 gallons
of water used
Irrigation water - each 1,000 gallons
of water used
Standby fee per month
Sewer charge per month - minimum bill
Sewer charge per month - maximum bill
Each 1,000 gallons of water used -
in excess of 4,000
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COMBINED FINANCIAL STATEMENTS
September 30, 1989
7. Commitments -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, improvements, 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 the project plus accrued interest from
the date of the progress payments to the developer.
During 1988, the District made application with the Texas Water Commission
to sell up to $1,587,000 in bonds. The actual amount has not been determined.
8. Chanees in general fixed assets - A summary of changes in general fixed assets follows:
Balance Balance
September 30, Additions September 30,
1988 (deletions) 1989
Land
Buildings
Water system
Sewage system
Drainage system
hlachine and equipment
Autos and trucks
Furniture and fixtures
Engineering fees
Capitalized construction
period costs
Construction in progress
"Expenditures from general water and sewer fund
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COMBINED FINANCIAL STATEMENTS
September 30, 1989
9. Property taxes - Property taxes attach as an enforceable lien on property as of January 1, are
due October 1, and become delinquent the following February 1. Property taxes for the
District are not limited as to rate or amount. The District's current tax rate is $.349 per $100
of assessed valuation, which is approximately one hundred percent (100%) of actual value.
10. Retirement plan - The District, Denton County Municipal Utility District No. 11, Denton
County Municipal Utility District No. I11 and the developer participates in a defined
contribution retirement pension plan. All full time employees twenty-one (21) years old or
older are covered after a preliminary period. Vesting starts after four (4) years.
11. Joint venture - The District and various developers are joint venturers in various assets used
to provide water and sewer services to persons who live in Trophy Club, Texas. Ownership of
the assets is as follows:
District MUD 2 MUD 3 Developer
~ercent Dercent Dercent ~ercent
Land on which treatment
plant is located 67.14% 0.0% 5.7 %' 27.16%
Water plant 40.92 0.0 27.97 31.11
Twenty-one (21) inch Fort Worth
water he 23.48 0.0 17.12 59.4
Elevated tank 43.99 0.0 0.0 56.01
OriGnal trenlment plant 67.14 0.0 20.64 U.22
Expanded treatment plant 0.0 0.0 0.0 100.00
The Developer and the Districts have an agreement making the District the
managing district.
The District prepares and administers the budget and financial responsibilities,
with the Developer and the other districts reviewing and consenting to same.
* In escrow but not paid yet.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COMBINED FINANCIAL STATEMENTS
September 30, 1989
11. Joint venture (continued)
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 other municipal utility districts using the system 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 will be retired. At September 30, 1989, $5,980,000
in bonds were outstanding.
13. Subsequent event - The District has initiated negotiations to acquire ownership in the
treatment plant in excess of the original agreement. This excess ownership will be purchased
from the Developer when contract negotiations are completed.
SUPPLEMENTARY SCHEDULES
TIZOPI-IY CLUB MUNICIPAL UTlLlTY DISTRICT NO. I
ANALYSIS 01; Cl-IANGES IN CASH AND TEMPORARY INVESTMENTS - ALL I'UNIIS
Year ended September 30, 1989
Totals
(men~orantlum onlv)
General Debt Year ended Year ended
Water and Service September 30, September 30,
Sewer Fund Fund 1989 1988
Sources of cash and temporan, investments:
Cash receipts from revenues
Cash transfers from other funds
Refundable deposits
Proceeds from sale of bonds
Total cash and
temporary investments provided
Applications of cash and temporarv investments:
Cash disbursements for current expenditures
Cash transfers to other funds
Payment of bond principal
Refi~nd of customer deposits
Purchase of fixed assets by General Water
and Sewer Fund
Total cash and
temporary investments applied
Increase (decrease) in cash and
temporary investments
Cash and temporary investment balances,
beginning of year
Cash and temporary investment balances,
end of year
TROPHY CLUB MUNICIPAL UTILlTY DISTRICT NO. 1
GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS
Year ended September 30, 1989
Series 1987 Series 1989
Duc during
fiscal years Principal Interest due Principal Interest due Total annual
cnding due March and due January and requirements
Se~tcmbcr 50 Seotember 1 Se~tember 1 Total Januarv 1 July 1 Total all series
Cash and temporary investment balances
at September 30, 1988:
Debt Service Fund
Cash and temporary investment balances
at September 30, 1989:
Debt Service Fund
Interest rate
AYALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT
Year ended September 30, 1989
Bond issues
Series Series
1989 1987 Total
Dates interest payable 1/1;7/1 3/1;9/1
Maturity dates
Bonds outstanding at beginning
of current year $ - $5,535,000 $5,535,000
Bonds sold during
current year
Retirements: Principal 150,000 150,000
Bonds outstanding at end
of current year 126,000
Retirements: Interest 5,279 424,062 429,341
Paying agent's name
and address Series 1989 and Series 1987: NCNB of Texas, Fort Worth, Texas
Bonds voted: Bonds approved: Bonds sold:
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF TEMPORARY INVESTMENTS
Year ended September 30, 1989
Accrued
interest
Identification Balances receivable
or certificate Interest Maturity at end at end
Funds number rate date of vear of vear
General Water
and Sewer Fund
Certificate
of deposit
Certificate
of deposit
U. S. Treasury
Bill
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
ANALYSIS OF TAXES RECEIVMLE
September 30, 1989
Operations
and
Maintenance Taxes Total
T&xes receivable at beginning of year $ 15,241 $ 76,393 $ 91,634
1988 tax roll 98.437 602.521 700.958
Total to be accounted for 113,678 678,914 792,592
Less collections:
Current year 96,417 590,306 686,723
Prior years 11.437 56,305 67,742
Taes receivable at end of year $ 5.824 $ 32.303 $ 38,127
Tues receivable by years:
1980 $ 42 $ 353 $ 395
1981 112 420 532
1982 - 235 235
1983 23 336 359
1984 105 1,544 1,649
1985 109 1,605 1,714
1986 2,500 8,336 10,836
1957 864 6,806 7,670
1988 2.069 12.668 14.737
$ 5.824 $ 32.303 $ 38,127
Property valuations:
Five years ended September 30.
(in thousands except for tax roll amount)
1989 1988 - 1987 - 1986 - 1985
Land $ 54,000 $ 43,998 $ 33,704 $ 32,332 $ 21,235
Improvements 144,964 113,125 102,062 84,646 73,070
Personal property 2,750 2,508 3,018 2,427 2,113
Exemptions (13) .-...fG) (17) (17) /17)
Total property valuations $201,701 $159.616 2133,767 $119,388 $ 96.401
Tu rate per $100 valuation %0.349 u $0.598 - $0.598 $0.598 -
Tax rolls (total) - $700.958 $665.599 $829.827 $713,943 $576.484
For the year ended September 30, 1989: All ta~es
Percent of current taxes collected to current taxes levied 95%
Percent of current and delinquent taxes collected to current
and delinquent taxes outstanding at beginning of tax year SiLTo
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
ANALYSIS OF ORGANIZATIONAL COSTS
Year ended September 30, 1989
Balances
at beginning
of year
Balances
at end
of vear
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 organizational costs -
creation period
Organizational costs -
construction ~eriod
Legal fees
Financial consulting fees
Operating expenses
Bond interest expense
Amortized bond discount
Total organizational costs -
construction period
Total organizational costs
Amounts provided:
For district organizational
costs - creation period
by construction fund
For district organizational
costs - construction period:
By Capital Projects Fund
By Debt Service Fund
Total district organizational
costs - construction period
Total provided
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF NOTES PAYABLE
September 30, 1989
Payable Accrued
Interest Maturity at end interest
rate date - of vear on notes
General lone-term debt:
FblC Corporation 7.2% 6-25-95 $ 33.750 $ -
Totals - All funds $ 33.750 $
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS
Year ended September 30, 1989
General fixed assets:
Land
Buildings
Water system
Sewage system
Drainage system
Machinery and equipment
Autos and trucks
Furniture and fivtures
Engineering fees
Construction in progress
Additions 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 vear
wmo-om m m i
vi
69
mwi CQC -
mmm mn N
w
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'I'IZOPI-IY CLUB MUNICIPAL UTILITY DISTIZICT NO. 1
Dcht Service Fund revenues
Tax rcvenues
Penalty and interest
lnlerest on investments
Miscellaneous
Total Debt Service Fund revenues
CO~JIPARATIVE STATEMENT OF REVENUES AND EXPENDITURES
Years ended September 30, 1989, 1988, 1987, 1986 and 1985
(Continued)
Amount Percent of fund total revenue
Year ended Year ended
Seotember 30. September 30,
1989 - 1988 1987 2986 1985 1989 1988 1987 1986 1985 - -----
I)cl)t Service Fund exncndiiures
Tax colleclion cxpcndilures
Capital outlay
Deb1 service:
Principal r~t. a ~rernent
Intcrest and fiscal charges
Total Debt Service Fund expendilures
Exccss (deficiency) of Debt Service Fund
rcvenues over exnenditures
TIIOPI-1Y CLUB MUNICIPAL UTILITY DISTRICT NO. 1
Caoital Proiecls Fund
Revenue
Miscellaneous expenses
COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES
Years ended September 30, 1989, 1988, 1987, 198(j and 1985
(Continued)
Amount Percent of fund total revenue
Year ended Year ended
Seutember 30. Seuternber 30,
1989 - - 1988 1987 - 1985 ----- 1989 1988 1987 1986 1985
Total Capital Projecls Fund expenditures 42 - 42.873
Excess (deficiency) oi Capital Projects Fund
rcr2enues over exnendirures $ $ - $ 2,973 $ 23,723 $ (38,793)
Average arinual debt service rcquirenient
Cur unpaid principal and interest $ 584,421 $ 574,176 $ 574,056 $ 650,655 $ 654,453
Excess revenues frorn General Fund and Debt
Service Fund before expenditures for debt service 475,481 694,349 938,446 589,196 604,380
Coverage (excess revenues as adjusted divided
by annual deb[ service requirement) 0.81 1.21 1.63 0.91 0.92
Number of water and sewer connections
31 end of year
Total aniount of watcr billed to customers
(in thousands of gallons) 344,356 351,730 272,206 258,324 269,208
ToVal amount of water pumped into system
(in thousands of gallons) 437,313 404,147 282,795 290,960 266,765 (1)
Percentage of water billed to water pumped 78.7% 87.0% 96.3% 88.8% 100.9%(l)
(1) During 3985 and 1989, the calibration equipment had mechanical maliunctions. As a resull, the totals of waler pumped inlo Lhc syslcm arc not correct.
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TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BOARD MEMBERS. KEY ADIvIINISTRATIVE PERSONNEL AND CONSULTANTS
September 30, 1989
Complete district mailing address: 100 Municipal Drive, Trophy Club, Texas 76262
District business telephone number: (817) 430-1911
Term of Fees
office elected and expense Resident
and expires or reimbursement of
Name and address date hired 09-30-89 Title at vear-end District?
Board members
Jerome 13. Svore
250 Oak Hill Drive
Trophy Club, Texas 76262 04-56/04-90 $ 950 President Yes
John V. Peters
402 Hilltop
Trophy Club, Texas 76262 04-56/04-90 $ 800 Vice-president Yes
Constance S. White
119 Trophy Club Drive
Trophy Club, Texas 76262 04-86/04-90 $ 950 Secretary-Treasurer Yes
David A. Weaver
109 Inverness
Trophy Club, Texas 76262 05-58/05-92 tF 950 Director Yes
Ted Neidenberger
1033 Sunset Drive
Trophy Club, Texas 76262 05-88/05-92 $ 950 Director Yes
Key administrative personnel
Thomas R. Pine
1005 Western Trail
Keller, Texas 76248 04-15-86 $ 42,990 General Manager No
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BOARD IVIEMBERS. KEY ADMINISTRATIVE PERSONNEL &IUD CONSULTAYTS
September 30, 1989
(Continued)
Term of Fees
office elected and expense Resident
and expires or reimbursement of
Name and address date hired 09-30-89 Title at vear-end District?
Consultants
Denton County Appraisal District
P. 0. Box 2816
Denton, Texas 04-01-81 $ 8,860 Assessor No
Donna Welsh
P. 0. Box 130
Trophy Club, Texas 76262 12-01-87 $ 8,000 Tax Collector Yes
Godfrey, Decker, McMackin,
Shipman, McClane & Bourland
3200 Continental Plaza
Fort Worth, Texas 76102 Inception $ 30,304 Legal Counsel No
Phillips and Welch, P.C.
3015 West Fifth Street Certified Public
Fort Worth, Texas 76107 03-31-83 $ 8,675 Accountants No
Carter Sc Burgess
1100 Macon Street Consulting
Fort Worth, Texas 76102 19 83 16 29,503 Engineers No
Note: No director has any business or family relationships (as defined by the Texas Water Code) with
major landowners in the District, with the 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, 1989
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 "HOWKEPT?" 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 frequency under "HOW
OFTEN?". Indicate who provided the information for the table below: Becky Thurston
USED? HOW KEPT? WHEN UPDATED?
BY BY HOW
RECORD -- NO YES - HAND COMPUTER DAILY WEEKLY MONTHLY
Description of accounts
Chart of accounts
General journal
Cash receipts journal
Cash disbursements
journal
Check register
General ledger
Customer subsidiary
ledger
Fived assets ledger
Bank reconciliation
Trial balance
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 pertaining
to accounting matters in which action should be taken by the
Board of Directors of the water district?
Yearly
X
X
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, 1989
(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. I-Iave 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?
11. 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
111 -
YES NO
X - -
YES NO
X - -
YES NO
X - -
YES NO
X - -
YES NO
(1) No intergovernmental transactions
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
Year ended September 30, 1989
(Continued)
7. Note: A manauement letter is an audit scope requirement of 4 the Water Distnct Accountine Manual.
a. The date of the most recent management letter was
November 28, 1989.
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 depositoq bank provide adequate security of the correct
type?
Please indicate for depository:
a. The name of the depository bank - Northwest Bank
b. Amount of F.D.I.C. coverage (if member bank)
c. Amount of bond or other security pledged as of the end of
the fiscal period (par value)
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)
a. The name of the depository bank - First National Bank of
Grapevine
b. Amount of F.D.I.C. coverage (if member bank)
c. Amount of bond or other security pledged as of the end of
the fiscal period (par value)
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)
X - -
YES NO
X - -
YES NO
X - -
YES NO
NONE
$ 86.285
01/26/89
NONE
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
Year ended September 30, 1989
(Continued)
a. The name of the depository bank - AMBC Grapevine
b. Amount of F.D.I.C. coverage (if member bank)
c. Amount of bond or other security pledged as of the end of
the fiscal period (par value)
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)
a. The name of the depository bank - ABC Riverside Bank,
Fort Worth
b. Amount of F.D.I.C. coverage (if member bank)
c. Amount of bond or other security pledged as of the end of
the fiscal period (par value)
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)
a. The name of the depository bank - NCNB Texas
b. Amount of F.D.I.C. coverage (if member bank)
c. Amount of bond or other security pledged as of the end of
the fiscal period (par value)
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?
11. What was:
a. The ta?c assessor-collected 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?
NONE
$229.735
10/25/88
NONE
$100.000
09130189
NONE
NONE
$625.608
02/28/89
X - -
YES NO
$ 10,000
A
WEEKLY
(1) Receipts are deposited as received into district accounts.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
Year ended September 30, 1989
(Continued)
12. We (check one):
a. Actually examined the records of the tax assessor-collector
b. Received written confirmation for tax data from the tax
assessor-collector
c. Accepted tax data furnished by the district's administrative
offices
13. Were local tax revenues (including delinquent taxes and
interest and penalties on taxes) properly separated for debt
service?
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?
X -
YES NO
X - -
YES NO
15. Full and complete explanations and/or references to notes,
schedules (or comments in the auditor's report letter) for
responses marked (*).
CERTIFICATE OF THE BOARD OF DIRECTORS
Trophv Club blunicipal Utilitv District No. 1
Name of Water District
Denton
County
We, the undersigned, do hereby certiiy that the audit report of the above-named Water District for
the fiscal year ended September 30, 1989, was received by the Board of Directors on the - 13th day
of December , 1989, and was reviewed and ( x) approved; ( ) disapproved at a meeting of the
Board of Directors of the Water District on the - 13th day of December , 1989. -
/,7; < ..
, .
, [.' '.;-Z:.. (7 ,: . ;.. ,7,. ;#. . .,., .
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Signature of Board Secretary dgnature of Board President