Loading...
HomeMy WebLinkAboutFY Ended September 30, 1990TABLE OF CONTENTS Report 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, expenditures and changes in fund balances - budget and actual - General Water and Sewer Fund Notes to combined financial statements Supplementaw schedules Supplementary schedules included within this report Schedule of services and rates Schedule of general fund expenditures 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 Analysis of changes in general fixed assets Schedule of notes payable Comparative schedule of revenues and expenditures - five years Insurance coverage Board members, key administrative personnel and consultants Questionnaire to be completed by auditor Combining schedules Certificate of the Board of Directors DAVID E. WELCH JAMES L. BUXTON RANDAL R. BOYTS CERTIFIED PUBLIC ACCOUNTANTS 3015 WEST FIFTH STREET FORT WORTH, TEXAS 76107 8171338-0061 G. MARTIN PHILLIPS INDEPENDENT AUDITORS' REPORT Board of Directors Trophy Club Municipal Utility District No. 1 Trophy Club, Texas We have audited the accompanying combined financial statements of Trophy Club Municipal Utility District No. 1 as of September 30, 1990, and for the period then ended as listed in the foregoing table of contents under the caption "Financial Section". These general purpose financial statements are the responsibility of Trophy Club Municipal Utility District No. 1's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of Trophy Club Municipal Utility District No. 1 as of September 30, 1990, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. As discussed in Note 14 to the financial statements, the District changed from an unacceptable method of accounting for bond discount to an acceptable method. The change in accounting principles has been accounted for as a correction of an error and prior years' financial statements have been restated. Our audit was conducted for the purpose of forming an opinion on the combined financial statements taken as a whole. The statements and schedules listed in the table of contents, pages 19 through 42 are presented for purposes of additional analysis and are not a required part of the combined financial statements of Trophy Club Municipal Utility Districr No. 1. Such information has been subjected to the auditing procedures applied in the audit of the combined financial statements and, in our opinion, is fairly presented in all material respects in relation to the combined financial statements taken as a whole. November 2, 1990 ASSETS Current assels Cash: Unreslricted cash Restricled cash Total cash Temporary investments, at cost: Unreslric[ed Restricted Total temporary invcstments Total cash and lemporary investments Accounls receivable and accrued revenue, less allowance Sor doubtful accounts of $122,940 in 1990 and $34,066 in 1989 Prepaids Toral current asscls General lixed ;issets (Notes 3, 4 and 8) Amounl available in Debt Service Fund Provision for bonded deht Aruounl to be providcd lor retiren~ent 01 gencral long-lcrm debt TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1990 Totals Governmental fund tvnes Account ernups (memorandum onlv) General Deb1 Capilal General General Year ended Ycar ended Water and Service Projects fmed long-term September 30, Seplember 30, Sewer Fund - Fund Fund debt 1990 1989 LIABILITIES Current liabilities Accounts payable and accrued expenses Rehndable deposits Interfund payables Total current liabilities Notes anyable Deferred income Bonded debt payable (Note 5) Told liabilities Commilmenls (Note 7) FUND EOIIITY Investment in general bed assets Fund balances: Reserved for cuslomer deposits Reserved for debt service (Note 14) Unrcatricted Total fund balances Total eqt~ily Total liabilities and fund equity TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1990 Totals Governmental fund tvnes Accounl moups (memorandum only) General Debt Capital General General Year ended Year ended Water and Service Projects fixed long-term September 30, September 30, Sewer Fund - Fund debt 1990 1989 See accompanying notes I --- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended September 30, 1990 Revenues Se~cc revenues (Nole 6) Tap connection revenues Tax revenues (Note 9) Penalty revenues hliscellaneous Interest on temporary inveslmenls Total revenues Expenditures Bulk water purchase Payoll expenses Employee benelits Professional fees Capital oullay Utililies Recurring operating expenses Tax assessor-colleclor Bad debts Governmenla1 fund types Totals (memorandum onlv) General Debt Capital Year ended Year ended Waler and Service Projecls September 30, September 30, Sewer Fund Fund Fund 1990 1989 Expenditures - continued Debt service: Principal retirernenl Interest and fiscal charges Total expenditures TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended September 30, 1990 (Continued) Excess (delicit) of revenues over expenditures Other financing sources: Proceeds of public property finance obligations Operating transfers in Operating Lranslers out Total other financing sources Exceb5 uf revenues and other linancing sources over expendilures and othzr uses Fund balances at beginning of year (Note 14) Fund balances at end or year Governmental fund lvnes General Debt Capital Waler and Service Projects Sewer Fund Fund Fund Totals (memorandum only) Year ended Year ended September 30, September 30, I990 1989 See accompanying notes. 41- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHMVGES IN FUND BUVCES - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND Year ended September 30, 1990 General Water and Sewer Fund Variance favorable - Ad (unfavorahlc 1 Revenues: Water and sewer senice (Note 6) Inspection and tap fees Ad valorem tax revenues (Note 9) Penally revenues Interest income Miscellaneous and carryover Total revenues Expenditures: Water and Sewer Department: Salaries, wages, benefits and taxes Contract labor Water purchases Utilities and telephone Consumable supplies Maintenance and repairs Capital expenditures Engineering fees Rent lease equipment Bad debt expense Other expenses Total Watcr and Sewer Department Administrative: Salaries, wages, benefits and lawes Prolessional lees: Legal Accounling and auditing Engineering lvIaintenance and repairs Contract labor Printing and oKce supplies 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 - GENEW WATER AND SEWER FUND Year ended September 30, 1990 (Continued) General Water and Sewer Fund Variance Iavorable - &&e~ &&& [unfavorable I Expenditures: (continued) Administrative: (continued) Travel and seminars Tax office contract senices Legal notices and publications Capital expenditures Other expenses Total administrative Fie Department: Salaries, wages, benefits and taxes Ulilities and telephone Dispatch Note paymenls Schools and training Uniforms Fuel and supplies Insurance and bonds Capital expenditures Maintenance and repairs Remote communications Other expenses Total Fire Depzrtment Total expendilurcs Excess (deficit) of revenues over expnditures Fund balances a1 beginning of year Fund balances at end of year Sec accumpanying notcs. -s- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1990 1. Summarv of accountine ~olicies a. Reporting entity - For financial reporting purposes, in accordance with the criteria in National Council on Governmental Accounting (NCGA) Statement 3, Trophy Club Municipal Utility District (MUD) No. I (the District) includes all funds, account groups, agencies, boards, commissions, and authorities that are controlled by or financially dependent upon the municipal utility district. Control by or financial dependence is determined on the basis of obligation of the municipal utility district for financing deficits, guarantee of debt, selection of governing authority, approval of budget, authority to make a public levy, ownership of assets, and scope of public service and special financing relationships where there is only partial or no oversight responsibility. All pertinent documents, transactions, contracts, and correspondence with other governmental agencies were reviewed to determine the reporting entity. Based upon this review, using the forgoing criteria, no additional organizations are included in the accompanying financial statements. b. Description of funds -The District has established a number of funds, in conformance with generally accepted accounting principles and the recommendations of rhe NCGA, 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. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1990 1. Summarv of accountine policies (continued) 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 the acquisition of capital facilities being financed from bond proceeds. 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 mainrains its accounting records on the modified accrual basis. 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 tax revenues, which are recognized when received. d. Propertv, plant and equipment - Property, plant and equipment is recorded at cost when acquired. General fived 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. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATElvIENTS September 30, 1990 1. Summarv of accounting policies (continued) e. Investment5 - Investments are carried at cost, which approximates market. The District's intent is to hold these investments until maturity. 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, resclts 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 - The District wGa created by an order of the Texas Water Commission on March 4, 1975, and confirmed by the e!ectorate of the District 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 UmITr' DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1990 4. Oreanizational costs - The District, in conformance with requirements of the Texas Water Commission, capitalized and charged to organization costs, for the creation period, a11 costs incurred in the creation of the District allowed by statute. The Texas Water Commission also requires capitalization as organizational costs for the ccnstruction 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 long-term debt - At September 30, 1990, 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 sysxern combination unlimited tax and revenue Serially bonds series through 5.50 - 1987 2007 8.60 $5,230,000 5105,000 $5,065,000 Public Property Finance con- Serially tractual obli- through 7.60 - gations 1989 1999 9.00 11 5.000 9.000 109.000 TROPHY CLUB MUNICIPAL umLIn DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1990 5. General lono-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 1991 1992 1993 1994 1995 Thereafter Less interest Principal Tax and revenue bonds authorized and unissued as of September 30, 1990, amounted to $5,579,217. The bonds are payable from the proceeds of an ad valorem YAY 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 service requirements for the fiscal year ended September 30, 1990. 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. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1990 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.(1@ Water service only: Treated water: First 3,000 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 20,000 Irrigation water: First 300,000 gallons of water used - minimum bill Each 1,000 gallons of water used in excess of 300,000 Standby fee per month 6.00 Sewer charge per month - minimum bill Sewer charge per month - masimum bill (residential only) Each 1,000 gallons of water used - in excess of 3,000 TROPHY CLUB MUNICIPAL UTILlTY DISTRICT NO. 1 NOTES TO COMBINED FINANCWL STATEMENTS September 30, 1990 Commitments - The District follows the guidelines of the Texas Water Commissioil in its dealings with developers. During 1990, the District made application with the Texas Water Commission to sell up to $4,350,000 in bonds. The bonds have not been sold. At year end, the District entered into a lease for equipment which wili become effective on October 1, 1990. The lease will be accounted for as a capital lease in the amount of $23,001. The lease is for sixty (60) months, at which time the District will own the equipment. Future minimum lease payments for the lease described are as follows: Year Amount 1991 1992 1993 1994 1995 Total Less amount representing interest Present value of net minimum lease payments TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1990 8. Chances in eeneral fixed assets - A summary of changes in general fixed assets follows: Land Buildings Water system Sewage system Drainage system Machinery and equipment Autos and trucks Furniture and fixtures Engineering fees Capitalized construction period costs Construction in progress Balance September 30, 1989 $ 140,372 223,086 2,403,503 1,730,757 972,898 273,631 280,946 40,097 763,324 Additions (deletions) Balance September 30. 1990 140,372 223,086 * 2,477,977 * 1,760,465 972,898 * 277,320 280,946 30,097 763,321 *Expenditures from general water and sewer fund 9. Propertv txes - Properly taxes attach as an enforceable lien on property as of January 1, are due October 1. and become delinquent the following February 1. Property tases for the District are not limited as to rate or amount. The District's current tm rate is S.380 per $100 of assessed valuation, which is approxirnately one hundred percent (100%) of actual value. 10. Retirement plan - The District, Trophy Club Municipal Utility District No. 11, and the developers participate in a defined contribution retirement pension plan. iU1 full time employees twenty-one (21) years old or older are covered after a preliminary period. After five (5) years of employment employees are fully vested. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1990 11. Joint venture - The District, Trophy Club MUD 11, 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: Land on which treatment plant is located Water plant Twenty-one (21) inch Fort Worth water lime Elevated tank Original treatment plant Expanded treatment plant MUD 1 DerCenl MUD 2 The developers and the districts have an agreement making the District the managing district. The managing district has financial responsibilities which include preparing and administering the budget. The developers and other districts review and consent to same. The developers have 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 managing district. The developers have funded their share of the joint venture. In the event that the municipal utility districts using the system sell more bonds, the developers will sell their interest to those districts. * In escrow but not yet paid. '* Twenty percent (20%) in escrow but not yet paid. TROPHY CLUB MUNICIPAL UTILITY DISTXICT NO. 1 NOTES TO COMBINED FINANCWL STATEMENTS September 30, 1990 12. Extineuishment 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, 1990, $5,795,000 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. 14. Unamortized bond discount - Previously, bond discount had been accounted for as an intangible asset, and was being amortized over the life of the bond issue. During the year, management discovered that according to Generally Accepted Accounting Principles, the bond discount is to be treated as a reduction in bond proceeds. Accordingly, the discount is not recorded nor amortized in any governmental fund. To reflect this change, beginning fund balance has been reduced by $148,969. Had the discount been amortized over the life of the bond issue, current income would be decreased by $8,512 for amortization expense. SUPPLEMENTARY SCHEDULES TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 SUPPLEMENTARY SCHEDULES INCLUDED WITHIN THIS REPORT September 30, 1990 D. Notes Required bv the Water District Accounting Manual These are incorporated into the Notes presented as part of the General Purpose Financial Statements. D.(1) Schedule of Services and Rates D.(2) Schedule of General Fund Expenditures E. Analysis of Chanees in Cash and Temporary Investments - All Funds F. General Lone-Term Debt Service Reauirements - bv Years G. Analysis of Chanees in General Lonn-Term Debt H. Schedule of Temporan, Investments I. Analvsis of Taxes Receivable J. Analysis of Oreanizational Costs IS. Analysis of Changes in General Fixed Assets L. Schedule of Notes Payable M. Comparative Schedule of Revenues and Expenditures - five vears N. !nsurance Coverage 0. Board Members. Key Administrative Personnel and Consultants P. Questionnaire to be Comoleted by Auditor Q. Cornbinine Schedules R. Certificate of the Board of Directors TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF SERVICES AND RATES Year ended September 30, 1990 1. Services provided by the District: X Retail water - Wholesale water - Drainage X Retail sewer - - X Wholesale sewer - Irrigation - Parks/Recreation - X Fire Protection - Security - Solid Waste/Garbage - Flood Control - Eoads X Participates in joint venture, regional system and/or waste water service (other than - emergency interconnect) - Other 2. Total water consumption (rounded to the nearest 1,000) during the fiscal year: Gallons pumped into system: 412,694 Gallons billed to customers: 401,666 3. Retail rates (based on 5/5" meter) based on rate order dated January 17, 1990: Minimum Rate per Minimum Usage Flat 1,000 gallons Usage levels Charee (in gallons) over minimum (in ~allonsL Water 59.00 0-3000 No $1.65 3,001 to 20,000 $1.35 over 20,000 Sewer $9.00 0-3000 No $1.65 3,001 to QCUX:" Surcharge: None Sewer usage does nor employ winter averaging. Total water and sewer charges per 10,000 gallons usage: First 10,000 gallons used $40.05 Next 10,000 gallons used 19.50 Next 10,000 gallons used 18.50 Maximum sewer charge is for 12,000 gallons (residential only) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF SERVICES AND RATES Year ended September 30, 1990 4. Number of retail water and/or waste water comections within the District as of fiscal year ended September 30, 1990: 1,512 Connections Active Connections Inactive Connections Single family 1,466 None Single family equivalents (SFE's) for: Number of Active SFE Inactive SFE Active Connections Connections Connections Multi family Commercial Other-recreational centers, government & VFD Total 5. Standby fees: The District currently assesses a standby fee of $6.00 to any lot which has water and sewer service available, but not connected. 6. Other rates for retail services provided: For reconnection following disconnection for nonpayment: Disconnect or reconnect at customer request: Accuracy reading (if meter is Found to be correct): Customer deposit (owner of property): Customer deposit (renter of property): Customer deposit (builder): Name of contact person: Roger Unger Title: District Manager Phone number: (817) 430-1911 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF GENERAL FUND EXPENDITURES Year ended September 30, 1990 General Water and Sewer Current: Personnel (including benefits) $ 418,773 Professional fees: Auditing Legal Engineering Purchased services for resale Bulk water and sewer service purchases 334,808 Contracted senices: Tax collector Utilities Repairs and maintenance 84,321 Administrative expenditures: Directors' fees 2,300 Office supplies 5,306 Insurance 41,547 Other administrative expenses 18,959 Capital outlay - Acquisition of fixed assets Solid waste disposal Fire fighting Parks and recreation Other expenditures 122,568 Total expenditures $1,253.348 Fire Department MUD 1 O~eratin~ Number of persons employed by the Disrrict: Full-time: 12 Part-time: 1 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF CHANGES IN CASH AND TEMPORARY INVESTMENTS - ALL FUNDS Year ended September 30, 1990 Totals (memorandum onlvl General Debt Year ended Year ended Water and Service September 30, September 30, Sewer Fund Fund 1990 1989 Sources of cast1 and temporarv investments: Cash receipts from revenues Cash transfers from other funds Refundable deposits Proceeds from sale of bonds Interest income Miscellaneous revenues Total cash and temporilry investments provided Ap~lications of cash and lemporarv investments: Cash disbursements for currenl expcnditurcs Cash transfers to other lunds Payment of bond principal Refund of customer deposits Purchase of fixed assets by General Water and Sewer Fund Other Total cash and tcmporary investments applicd locreasc (decrease) in cash and temporary investlnents Cash nnd temporary invcstr~~cnl balances, beginning of year C;thh and tcmptrrilry invcslment bi~lanccs, cnd ol' ycnr Due during fiscal years ending Senternher 30 1Wl 1YW 1993 1994 1095 1996 1997 1998 199 2000 2001 2002 2003 2004 2005 2000 2007 Principal due Se~ternher 1 $ 165,000 180,000 190,000 200,000 215,000 230,000 245,000 265,000 285,000 305,000 330,000 355,000 385,000 415,000 450,000 485,000 530,0i10 TROPI-IY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 GENERAL LONG-TERM DEBT SERVICE REQULREMENTS - BY YEARS Year ended September 30, 1990 Series 1987 Interest due March and Seplernhcr 1 % 406,137 395,990 384,650 372,395 359,195 344,575 328,475 310,835 291,225 269,565 245,775 219,375 190,620 159,050 124,605 86,805 45,580 - Total - 571,137 575,990 574,650 572,395 574,195 574,575 573,475 575,835 576,225 574,565 575,775 574,375 575,620 574,050 574,605 571,805 - 575.580 Principal due January 1 $ 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 18,000 Series 1989 Intercst due January and Julv 1 $ 9,434 8,579 7,634 6,599 5,474 4,357 3,247 2,016 711 Anni~al requirements for all series Total Total Total principal Principal I~lterest and interest due due due $ 174,000 $ 415,571 $589,571 190,000 404,569 594,569 201,000 392,284 593,284 212,OM) 378,994 590,994 228,000 3G4,669 592,669 244,WO 348,932 592,932 260,000 331,722 591,722 281,000 312,881 593,881 303,000 291.9% 594,936 305,000 269,565 574,565 330,000 245,775 575,775 355,000 219,375 574,375 365,000 190,620 575,620 415,000 159,050 574,050 450,000 124,605 574,605 485,000 86,805 571,805 530.000 45,580 575,580 Cash and temporary investrncnt bal;~nccs at Septeniber 30, 1990: Dcbl Servicc Fund X30S.134 - TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 Interest rate ANALYSIS OF CHANGES IN GENEEWL LONG-TERM DEBT Year ended September 30, 1990 Bond issues Series 19S9 Series 1987 Total Dates interest payable 1/1;7/1 3/1;9/1 Maturity dates Bonds outstanding at beginning of current year $126,000 $5,385,000 $53 11,000 Bonds sold during current year Retirements: Principal 5,000 155,000 163,000 Bonds outstanding at end of current year 118,000 Retirements: Interest 10,199 415,438 425,637 Paying agent's name and address: Series 1989 and Series 1987: NCNB of Texas, Fort Worth, P. 0. Box 830040, Dallas, Texas 75253-0040 Refunding Bond Authority: Tax Bonds Other bonds Bonds Amount authorized by voters $12,344,217 $ - $ Amount issued 6,765,000 Remaining to be issued 4,580,000 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF TEMPORARY INVESTMENTS Year ended September 30, 1990 Identification or certificate Interest Maturity Funds number rate date General Water and Sewer Fund: MUD 1 Operating Certificate of deposit Accrued interest Balances receivable at end at end of year of vear TROPHY CLUB MUNICrPAL UTILITY DISTRICT NO. 1 ANALYSIS OF TAXES RECEIVABLE September 30, 1990 Fire MUD 1 Department MUD 1 Debt Operations O~erating Service Taxes receivable at beginning of year $ 3,268 $ 2,556 $ 32,303 1989 tax roll 118.930 118.931 594.652 Total to be accounted for 122,198 121,487 626,955 Less collections: Current year 114,958 114,957 574,788 Prior years 1.136 633 10.576 Taxes receivable at end of year $ 6,104 $ 5.897 $ 41.591 Taxes receivable by years: 1980 $ - $ 42 $ 353 1981 - 112 420 1982 - - 235 1983 23 - 336 1984 105 - 1,544 1985 40 583 1986 539 1,419 6,528 1987 398 88 3,823 1988 1,027 264 7,906 1989 3,972 3.972 19.863 $ 41.591 Property valuations: Five vears ended Seotember 30. (in thousands except for tax roll amount) 1990 - - 1989 - 1988 Land $ 58,395 $ 54,000 $ 43,998 $ 33,704 Improvements 235,886 144,964 113,125 102,062 Personal property 3,159 2,750 2,508 3,018 Exemptions --..Am (13) (15) (17) Total property valuations $297.326 $201.701 $159.616 $138.767 Tax rate per $100 valuation - $0.349 - $0.417 $0.598 7 Tax rolls (total) $832.513 $700,958 $665.599 $529,827 For the year ended September 30, 1990: Percent of current tixxes collected to current taxes levied Percent of current and delinquent taxes collected to current and delinquent taxes outstanding at beginning of tax year TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF ORGANIZATIONAL COSTS Year ended September 30, 1990 Balances at beginning of vear Organizational costs - creation oeriod Engineering and surveys $ 10,991 Filing fees, licenses, legal notices and permits 2,640 Legal fees 13,725 Director fees and per diem 400 Other costs 361 Total organizational costs - creation period 28.117 Organizational costs - construction oeriod Legal fees 103,492 Financial consulting fees 161,513 Operating expenses 19,461 Bond interest expense 206,017 Amortized bond discount 4.088 Total organizational costs - construction period 494.571 Total organizational costs 16522.688 Amounts provided: For district organizational costs - creation period by construction fund 16 28.117 For district organizational costs - construction period: By Capital Projects Fund 252,228 By Debt Service Fund 242.343 Total district organizational costs - construction period 494,571 Total provided - $522.688 Additions (decreases) Balances at end of vear TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS Year ended September 30, 1990 General Fixed assets: Land Buildings Water system Sewage system Drainage system Machinery and equipment Autos and trucks Furniture and fixtures Engineering fees Construction in progress Additions provided by: Debt Senice Fund Contributions by developer Contributions by General Water and Sewer Fund Balances at beginning of vear Additions (deletions] Balances at end of vear TROPI-IY CLUB MUNICIPK UTILITY DISTRICT NO. 1 SCHEDULE OF NOTES PAYABLE September 30, 1990 Payable Accrued Interest Maturity at end interest rate - date of year on notes General lone-term debt: FMC Corporation Totals - All funds TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMPARATIVE SCHEDULE OF REVENUES .4ND EXPENDITURES Years ended September 30, 1990, 1989, 1988, 1987 and 1986 Amount Year ended Percent of fund total revenue Year ended Sentemher 30. 1990 1989 1988 1987 1986 General Water and Sewer Fund revenues Service revenues Tap connection fees Penalty and interest revenues Expense reimbursements Tax revenues Miscellaneous Toial General Water and Sewer Fund revenues General Warer and Sewer Fund expenditures Purchased water and sewer services Payroll expenditures Professional fees Recurring operating expendilures Capital ouilay Miscellaneoi~s Total General Water and Sewer Fund expenditures Esccss (delicit) of General Water and Sewcr Fund revenues over expendilures TIiOPNY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES Years ended September 30, 1990, 1989, 1988, 1987 and 1986 (Continued) Debt Service Fund revenues Tau revenues Penalty and interest Interest on investmenls Miscellancous Total Debt Service Fund revenues Dchl Service Fund exoendilures Tm collection expenditures Capital outlay Debt senice: Principal retiremen1 Interest and fiscal charges Total Debt Service Fund expenditures Excess of Debt Service Fund revenues over exoendilurcs Caniial Prcliecis Fund Revenue Miscellaneous expenses Total Capital Projects Fund expenditures Exccss or Capital Projects Fund rc\.cntlcs ovcr exnendilures Amount Year ended Percent of fund total rcvenue Year ended Sentember 30, 1990 1989 1988 1986 - TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMPARATIVE SCHEDULE OF REVENUES ,4ND EXPENDITURES Years ended September 30, 1990, 1989, 1988, 1987 and 1986 (Continued) Aniount Percent of fund total revenue Year ended Year ended September 30, September 30. 1990 - - 1989 1988 - 1987 p& 1990 198') 1988 1987 l'lR6 - Average annual debt service requirement for unpaid principal and interest $ 584,172 $ 584,421 $ 574,176 $ 574,056 $ 650,655 .O% .O% .O% ,076 .O% Excess revenues from General Fund and Debt Service Fund before expenditures for debt service 665,236 475,481 694,349 938,446 589,196 .O% .O% .O% .O% .O% Coverage (excess revenucs as adjusted divided by annual debt service requirement) Number of water and sewer connections at end of year Toti11 amount of water billed to customers (in iliousands of gallons) 431,666 344,356 351,730 272,206 258,324 .O% .O% .O% .0% 0% Total amount of water pumped into system (in thousands of gallons) 412,694 437,313 404,147 282,795 290,960 .O% .O% .O% ,076 .O% Pcrcentage of water billed to water pumped 97.3% 78.7% 87.0% 96.3% 88.8% ,076 .O% .U% .O% .O% (1) During 1985 and 1989, (lie calibration cquipmenl had rnechanici~l malfunctions. As a result, the totals of waler pumped into the system are nol corrccl. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I INSURANCE COVERAGE September 30, 1990 Insurer Type of Policy Amount of corporation clause Tvne of coverage From - To coverage Name stock/mutual co-insurance Employee honesty, etc.: Tax assessor-collcctor 01-13-YO 01-13-91 $ 10,000 Hartford Company Public nflicial (each director) 10-03-89 10-03-90 50,OW Fidelity & Deposit Company Bookkeeper bond 10-03-89 10-03-90 50,000 Fidelity & Deposit Company Director and officer liability 10-03-90 10-03-91 1,000,000 Colonial Insurance Company Umbrella liability 09-3(1-90 09-30-91 1,000,000 U. S. Fire Insurance Company Electronic equipment 09-30-90 09-30-91 23,150 Kemper Lloyds Building and contents and water system Boiler and machinery Pension bond Liahili~y: General: Bodily injury Property damage Automotive (nonowned): Bodily injury Property damagc 09-30-88 09-30-91 7,015,000 American Proteclion 09-30-YO 09-30-91 500,000 The Hartford Steam Boiler 01-01-90 01-01-91 10,WO I-Iartford Company 09-30-90 09-30-91 $l,WO,000/ U. S. Fire Insura~~ce 2,000,WO Company $1,000,000 09-30-90 03-30-91 $1,000,000 U. S. Fire Insurance $1,000,000 Company Stock None Stock None Stock None Stock None Stock None Stock None Stock None Stock None Stock None Stock None Stock None ?'hi5 slatcment, prepared from the policies, is inlendcd only as a dcscriptivc summary; no cxprcssio~~ of opinion :is lo llic xcleilll:icy (>I the c~ver:rgc is inlcn~lcrl TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS September 30, 1990 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 Residenr and expires or reimbursement of Name and address date hired 09-30-90 Title at vear-end District'? Board members Jerome H. Svore 250 Oak Hill Drive Trophy Club, Texas 76262 05-90105-94 $ 1,100 President Yes Constance S. White 119 Trophy Club Drive Trophy Club, Texas 76262 05-90105-94 $ 1,200 Vice-president Yes Ted Neidenberger 1033 Sunset Drive Trophy Club, Texas 76262 05-88/05-92 $ 1,300 Secretary-Treasurer Yes David A. Weaver 109 Inverness Trophy Club, Texas 76262 05-88/05-92 $ 1,000 Director Yes George Knowles 102 Fresh Meadows Trophy Club, Texas 76262 05-90/05-91 $ 300 Director Yes Kev administrative personnel Roger Unger 102 Carnoustie Trophy Club, Texas 76262 04-15-86 $42,000 General Manager Yes TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS September 30, 1990 (Continued) Term of Fees office elected and expense Resideni and expires or reimbursement of Name and address date hired 09-30-90 Title at vear-end Districll Consultants Denton County Appraisal District P. 0. Box 2816 Denton, Texas 04-01-81 $ 8,273 Assessor No Doma 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 $ 25,923 Legal Counsel No Phillips and Welch, P.C. 3015 West Fifth Street Ce- 1 tli~ed ' " Public Fort Worth, Texas 76107 03-31-83 $ 8,250 Accc~untants No Carter & Burgess 1100 Macon Street Consulting Fort Worth, Texas 76102 1983 $ 65,635 Engineers Nu Note: No director has any business or family relationsl~ips (as defined by the Texas Water Code) wit11 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, 1990 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 frequency under ''HOIl' OFTEN?". Indicate who provided the information for the table below: Judv Tannenhill USED? HOW KEPT? WHEN UPDATED? BY BY HO\V RECORD -- NO YES - HAND COMPUTER DAILY WEEKLY MONTHLY OFTEN Description of accounts Chart of accounts General journal Cash receipts journal Cash disbursements journal Check register General ledger Customer subsidiary ledger Fixed 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? 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, 1990 (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 irs employees with the Texas Employees Retirement System? f. h4ake rernitta~lces of Social Security taws 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 U - YES NO 7. - - YES NO X - - YES NO X - - YES NO X - - YES NO (1) No intergovernmental transactions TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1990 (Continued) 7. Note: A management letter is an audit scope requirement of the Water District Accountine Manual. a. The date of the most recent management letter was November 21, 1990. 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? 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 clish 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 K - - YES NO X - - YES NO NONE $142,441 04/21/90 TROPHY CLUB MUNICIPAL UTILITY DISTRIm NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1990 (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 - 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 tau assessor-collector bonded as required by law? 11. What was: a. The tax assessor-collected bonded for? b. The greatest amount of the district's taxes in the ta?c assessor-colle~~tor's possession at any one time? c. The frequency of tax receipts deposits with the bonded depository? 12. We (check one): a. Actually examined the records of the tau 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 X - - YES NO (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, 1990 (Continued) 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? 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 X - - YES NO COMBINING BMCE SHEET - GENERAL WATER AND SEWER FUND September 30, 1990 Cash: Unrestricted cash Restricted cash Water and Sewer Total cash 93.462 Temporary investments, at cost: Unrestricted Restricted - Total temporary investments - Total cash and temporary investments 93,462 Accounts receivable and accrued revenue, less allowance for doubtful accounts of $122,940 in 1990 and $34,066 in 1989 172,006 Due from/to tax fund Due to/from Systems 118,234 Due to/from operations and maintenance Prepaid fuel 1,246 Total assets $384.948 Fire Department MUD 1 O~eratinq Combined Total TROPHY CLUE IviLTNICIPAL UTILITY DISTRICT NO. 1 COMBINING BALANCE SHEET - GENERAL WATER AND SEWER FUND September 30, 1990 Current liabilities: Accounts payable and accrued expenses Refundable deposits Total current liabilities Deferred income Total liabilities Fund balances: Unallocated fund balance Net income (loss) Allocated fund balance Total fund balances Total liabilities and fund balance Water and Sewer Fire Department MUD 1 Operating Combined Total TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINING STATEMENT OF REVENUES, EXPENDITURES GENERAL WATER AND SEWER FUND Year ended September 30, 1990 Water and Fire MUD 1 Combined Sewer Department Ooerating Total Revenues Service revenues (Note 6) Tap connection revenues Tax revenues (Note 9) Penalty revenues Miscellaneous Interest on temporary investments Total revenues Expenditures Water and Sewer Department: Salaries, wages, benefits and taxes Contract labor Water purchases Utilities and telephone Consumable supplies Maintenance and repairs Capital expenditures Engineering fees Rentllease equipment Bad debt expense Other expense Administrative: Salaries, wages, benefits and taxes Professional Eees Legal Auditing Engineering Maintenance and repairs Contract labor Printing and office supplies Utilities and telephone TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINING STATEMENT OF REVENUES, EXPENDITURES GENERAL WATER AND SEWER FUND Year ended September 30, 1990 (Continued) Water and Sewer Expenditures - continued Administrative: (continued) Lnsurance and bonds 41,547 Travel and seminars 3,968 Tax office contract senices 3 14 Legal notices and publications 157 Capital expenditures 753 Directors' fees 2,300 Other expenses 11.929 Total administrative expenses 306,547 Fire Department: Salaries, wages, benefits and tmes 592 Utilities and telephone - Dispatch - Note and bond payments - Schools and training Uniforms Fuel and supplies Insurance and bonds Capital expenditures (non capitalized) Maintenance and repairs Remote communications Professional fees: Legal - Auditing Tax office contract services Other expenses Total Fire Department expenses 592 Total expenditures 1.253.348 Net income (loss) $ 58.043 Fire De~artment MUD 1 O~eratinz Combined Total TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINING STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL WATER AND SEmR FUND Year ended September 30, 1990 Revenues Water and sewer service Inspection and tap fees Penalty revenue Interest income Miscellaneous and carryover Expenditures Water and Sewer Department: Salaries, wages, benefits and taxes Contract labor Water purchases Utilities and telephone Consumable supplies Maintenance and repairs Capital expenditures Engineering fees Rentllease equipment Bad debt expense Other expense Administrative: Salaries, wages, benefits and taxes Professional fees Legal Auditing Engineering Maintenance and repairs Contract labor Printing and office supplies Utilities and telephone General Water and Sewer Fund Variance Favorable Budget Actual /Unfavorable) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINING STATEMENT OF REVENUES AND EXPENDITliRES - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND Year ended September 30, 1990 Continued General Water and Sewer Fund Variance Favorable Budset &&&I (Unfavorable] E.upenditures - continued Administrative: (continued) Insurance and bonds Travel and seminars Legal notices and publications Directors' fees Other expenses Total administrative expenses Fire Department: Salaries, wages, benefits and taxes Total e.xpenditures Net income Revenues Ad valorem tues Interest income Miscellaneous E.upenditures Administrative expenses: Professional fees Legal Auditing Engineering Maintenance and repairs Budget $ 220,103 MUD #1 Variance Favorable Actual iUnfavorable) TROPHY CLUB IvlUNICIPAL UTILITY DISTRICT NO. 1 COMBINING STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND Year ended September 30, 1990 Continued MUD #1 Variance Favorable Budpet Actual (Unfavorable) Expenditures - continued Administrative: (continued) Printing and office supplies Insurance and bonds Travel and seminars Tax office contract services Legal notices and publications Capital expenditures Directors' fees Other expenses Total administrative expenses Net income Revenues Service revenues Ad valorem taxes Penalty income Interest income Other income Total revenues Emenditures Fire Department: Salaries, wages, benefits and taxes Utilities and telephone Dispatch Note and bond payments Fire Department Variance Favorable Budoet Actual (Unfavorablel TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINING STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND Year ended September 30, 1990 Continued Fire Deuartment Variance Favorable Budeet Actual /Unfavorable) Expenditures - continued Fire Department: (continued) Schools and training Uniforms Fuel and supplies Insurance and bonds Capital e.xpenditures Maintenance and repairs Remote communications Professional fees: Legal Auditing Taw office contract services Other expenditures Total Fire Department Net income CERTIFICATE OF THE BOARD OF DIRECTORS Trophy Club Municipal Utility District No. 1 Name of Water District Denton County We, the undersigned, do hereby certify that the audit report of the above-named Water District for the fiscal year ended September 30, 1990, was received by the Board of Directors on the& da!? , 1991, and was reviewed and approved; ( ) disapproved at a meeting of the the Water District on the day of Signature of Board ~ecrethr~ ggnature of Board President