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HomeMy WebLinkAboutFY Ended September 30, 1994ANNUAL FlLLNti AFFIDAVII' L TI-IE STATE OF TEXAS 1 COUNTY OF DENTON 1, RoEer A. Un~er (Name of President, Chairman. Director of Attorney1 of the Trophy Club Municipal Utility District No. I (Name of District] hereby swear, or affirm, that the district named above has reviewed and approved at a meeting of the Board of Directors of the 'Water District on the mhday of Jan- uary , 1995 its annual audit report of the fiscal year or period ended September 30, 1994 and that copies of the annual audit report have been filed in the district office and with the city or county listed below. The annual filing affidavit and the attached copy of the annual audit report are being submitted to the Texas Natural Resource Conservation Commission in satisfaction of all annual filing requirements within Section 50.374 of the Texas Water Code. Town of Trophy Club, (Name of City or County w ~~t~ February 6 ,192. Roger A. Unger, District Manager (Typed Name and Title of above Oislrict Officiail Sworn to and subscribed to before me this 6 day of February ,1925 Commission expires on q\ 3~ , B, Notary Public in the State of Texas. (Annual Filing Affidavil Rev. 8/34) Certified Public Accountant 5017 S. Hulen, Suite 4, 817-346-8315 Fort Worth, Texas 76132 To the Board of Directors Trophy Club Municipal Utility District No. I 100 Municipal Drive Trophy Club, Texas 76262 Directors: I have examined the financial statements of Trophy Club Municipal Utility District No. I for the year ended September 30, 1994, and have issued my report thereon dated November 11, 1994. As part of my examination, I made a study and evaluation of the District's system of internal accounting control to the extent I considered necessary to evaluate the system as required by generally accepted auditing standards. The purpose of my study and evaluation was to determine the nature, timing, and extent of the auditing procedures necessary for expressing an opinion on the District's financial statements. My study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole. The management of Trophy Club Municipal Utility District No. I is responsible for establishing and maintaining a system of internal accounting control. In fulfilling that responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with xeasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with procedures may deteriorate. My study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, I do not express an opinion on the system of internal accounting control of Trophy Club Municipal Utility District No. I taken as a whole. However, my study and evaluation disclosed the following recommendations. Trophy Club Municipal Utility District No. I Page Two Water Bill Receivables During the normal course of business amounts are adjusted periodically by the Water Department. In order to maintain control over billings and adjustments, I recommend that all adjustments be ~eviewed periodically (at least quarterly) by the Assistant District Manager. This report is intended solely for the use of management and should not be used for any other purpose. November 11, 1994 TABLEOFCONTENTS Independent Auditor's Report General Purpose Financial Statements Combined balance sheet - all fund types and account groups Combined stttement 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 Fund Notes to general purpose financial statements Sun~lementarv Schedules Supplementary schedul'es included within this report (E) Schedule of services and rates (F) Schedule oi General Fund expenditures (G) Schedule of temporary investments - all funds (H) Analysis of taxes levied and receivable (I) Analysis of changes in general fixed assets and organizational costs (1) General long-term debt service requirements - by years (K) Analysis of changes in general long-term debt (L) Comparative schedulz of revenues and expenditures - five years (M) Insurance coverage (N) Board members, key administrative personnel and consultants (0) Consolidating scheduli-s (P) Individual general fund account financial statements (Q) Net General fixed assets by funding source (R) Certificate of the Board of Directors JAhmS L. BUXTON, P.C. Certified Public Accountant 5017 S. Hulen, Suite 4, 817-346-8315 Fort Worth, Texas 76132 INDEPENDENT AUDITOR'S REPORT Board of Directors Trophy Club Municipal Utility District No. I Trophy Club, Texas I have audited the accompanying general purpose financial statements of Trophy Club Municipal Utility District No. I as of September 30, 1994, and for the year then ended as identified in the Table of Contents. These general purpose financial statements are the responsibility of Trophy Club Municipal Utility District No. 1's management. My responsibility is to express an opinion on these general purpose financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the general purpose fmancial 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 fmancial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my 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. I as of September 30, 1994, and the results of its operations for the year then ended, in conformity with accounting principles which utilize governmental fund types rather than an enterprise fund. My audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplementary schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of Trophy Club Municipal Utility District No. I. This information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in my opinion, is fairly presented in all material respects in relation to the general purpose financial statements mken as a whole. November 11. 1994 -2ccoonts receivable and accnld revenue, less ;~llowance lbr doubtful accounts of $78.109 in 1994 and $61,067 in 1993 Ad vi~lorrm propcrty taxes receivable Total current assets General tixd assets Amount ;~v;~ilahle in Debt Service Fund Provision for bonded debt Amount to he provided for retirement <:I general long-term debt 1'ot;il assets TROPHY CLUB MUNICIPAL UTILITY DISTRlCT NO. I COMBINED BALANCE SHEET - ALL FUND TYPES ANDACCOUNTGROUPS September 30, 1994 Governmental fund types Account groups Debt General General General Service Fixed Long-term Fund Fund Assets Debt Totals (memori~ndum only) September 30, September 30, 1994 1993 (Continued) -2- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COh4RINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30. 1994 (Continued) Governmental h~nd types Account arou~s Debt General General General Service Fixed Long-term Fund Fund Assets Debt LIABILITIES Totals (memor;indurn only) September 30, September 30, 1994 1993 C.:~~rrcnt liz~hilitics: ACCOLI~LS p~yiillle and ;!ccnred expenditures $ 91,237 $ $ $ . $ 91,237 Rcf~~nd;fil~lr: dclwsits 80,202 . 80,202 C;!ilit;~l le~tses pavnble Ni~lcs p;*\,;thle Deferred income Bnndrd debt p;~y;ihle Ti~t~il li~~hilities FUND EQUITY lnvestn~cnl in rcneral fixed assets - 17,227,039 17,227,039 Fund halz~nces: Reserved ii~r prepziid expenditures 947 947 Ilcscrvrd lor dcht se~vice 422,901 - 422,901 tinreserved 983.389 983.389 Tt)till h~nd balances 984.336 422,901 - 1.407.237 Total eqoity 984,336 422.901 17.227.039 18.634.276 'I'otal li~ihilities and hind equity $1.170.052 $476.509 $17.227.039 $8,276,249 $27.149.849 The accompanying notes to the financial statements are an integral part of this statement. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Ke\'cnurs Water and sewer zmd fire department service lnspcction ;lnd lap cumrction fees \Vatcr and sewer service penalties arid interest Ad v;;lurrrn property i;ixas Ad valorem property tax penalties and irilerest h4UD II conlributions Inkiest wrncd S;iIe of essels Interest on temporary investments Line relocation reinihursm~ents M iscell;meous Total revenues En~cndilures Current: Water imd Sewer Departinanl Adrilinislralivc F~rr Department hlUD I Mainten;mce and Operations Year ended Sentember 30. 1994 Debt General Service Fund Fund Totals (mernor;tndum onlv) Yar ended Year ended September 30, September 30, 1994 1993 (Continued) Exnmrlitures - continued Debt senice: Princip;rl retirernent Interest Fiscal charges Total expenditures Exccss (deficit) of revenues over znpendil~rres Oll~er financing soorces (uses): Operating transfers in Operating trmsfers out Adjustment in note payable Procads of unlimited tax ;md revenue bond refunding nrt of issunnce costs and discount of $132,877 P;tymmt lo refunding bond escrow agent Total other financing sources (uses) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES (Continued) Excess (deficiency) of revenues and other Iinamcing sources over expendilures and other uses Fund lialanczs at beginning of year Fund b~tlances ;it end of year Year ended September 30, 1994 Debt General Service Fund Fund Totals (memorandum only) Ymr ended Year ended September 30, September 30, 1994 1993 The accompanying notes to financial statements are an integral part of this statement. -5- TROPHY CLUB MUNICIPAL UTILITY DISTIUCT NO. I COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (BUDGET AND ACTUAL) GENERAL FUND Year ended September 30, 1994 Variance favorable - (unfavorable) Revenues: Water and Sewer Departments: Water and sewer service Inspection and tap connection fees Water and sewer service penalties and inlerest Interest on temporary investments Miscellaneous Total Water and Sewer Department Fire Department: Service contracts Ad valorem property taxes Ad valorem property tax penalties and interest MUD I1 contributions Interest on temporary investments Miscellaneous Total Fire Department MUD I Maintenance and Operdtions: Ad valorem property taxes Ad valorem property tax penalties and interest Interest on temporary investments Line relocation reimbursements Total MUD I Maintenance and Operations Total all revenues (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (BUDGET AND ACTUAL) GENERAL FUND Year ended September 30, 1994 (Continued) Expenditures: Water and Sewer Department: Salaries, wages, benefits and taxes Engineering fees Administrative - other Consumable supplies Rent-lease equipment Bad debt Regulatory fee Water meters Lab analysis Garbage service Miscellaneous Water purchases Utilities and telephone Maintenance and repairs Capitnl expenditures Total Water and Sewer Department Administrative: Salaries, wages, benefits and taxes Professional fees: Lezal Engineering Auditing Directors' fees Printing and office supplies Insurance md bonds Administrative - other Contract labor Travel and seminars Misce1l;meous Utililies md telephone Maintenance and repairs Capital expenditures Total administr;iti\.e Budeet - Variance favorable - (unfavorable1 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (BUDGET AND ACTUAL) GENERAL FUND Year ended September 30, 1994 (Continued) Variance favorable - Lunfavorable) Expenditures: (continued) Fire Department: Salaries, wages, benefits and taxes Professional fees - Auditing Tax office contract services Office supplies Insurance and bonds Firefighting: Noteibondlcapital lease payments School and training Uniforms Fuel and supplies Remote communications Miscellaneous Utilities and telephone Maintenance and repairs Capital expenditures Total Fire Department MUD I Operations: Professional fees: Legal Engineering Auditing Tax office contract services Directors' fees Office supplies Insurance and bonds Administrative - other Mainrenancz :md repairs MUD I Operations Total expenditures Excess of rzvenues over expenditures Fund balances at beginning of year Fund balances at end of year $ 984.336 The ;~ccompanying notes lo 1inanci;li sixtements are an integral part of this statement TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 1. Summav of sienificant accountine uolicies a. The ~eportine entity - In accordance with generally accepted accounting principles, Trophy Club Municipal Utility District No. I's (the District's) annual financial report includes all funds and account groups which are used to report the District's financial position and activities. There are no agencies, boards, commissions, or authorities which are financially accountable to the District. b. Master District - The District holds legal title to and operates the central water supply system and the central waste disposal system as "Master District" for the Trophy Club real estate project for the benefit of Trophy Club MUD I and Trophy Club MUD II. The original ultimate build out of Trophy Club anticipated participation by additional Municipal Utility Districts. The proportionate allocation of costs and related beneficial usage rights in the major assets is as follows: MUD I percent Water plant and wells 40.91 Twentydne (21) inch water line 60.00 Elevated tank 43.99 Original treatment plan1 and land 67.14 First expanded treatment plant 67.14 Second expanded treatment plant 92.00 Adminislration building 23.38 MUD I1 (A) 27.14 40.00 56.01 32.86 32.86 8.00 0.00 (B) Future Development 31.95 m.00 00.00 00.00 00.00 00.00 76.62 (A) MUD 11 has not paid ibr its full shares. (B) MUD I1 docs not acknowledge any portion of the cost of the administration building as heing their responsibility. Pursuant to the provisions of the Master District Contract dated December 1, 1982, as amended, certain items have changed from prior years. The district serves as the managing district. Under a contract dated December 1, 1982 the managing district has financial responsibilities which include preparing and administering the budgets. MUD TI has the option to review their TROPHY CLUB MUNICIPAL UTILlTY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 1. Summarv of sienificant accountine policies - continued b. Master District - continued Based upon this arrangement, all financial transactions relating to water and sewer operations are included in the financial statements of the managing district in the Water and Sewer Account which is part of the General Fund. A summary of the most recent Water and Sewer account financial statements on the operations of the real estate project for the year ended September 30, 1994, is as follows: Total assets Total liabilities Total equity Totals revenues $1,456,458 Total expenditures 1.413.705 Operating income for the year 42,750 Plus capital expenditures 67.541 Net revenues before capital expenditures S 110.591 c. Fund uresentation - This financial reporr is in accordance with generally accepted accounting principles which utilize governmental fund types rather than an enterprise fund. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 1. Summaw of significant accounting policies - continued. d. Fund accountine, - The District has established separate governmental fund types, as typically used to report non-enterprise government financial activity, to account for bansactions in compliance with legal requirements imposed by the Texas Natural Resources Conservation Commission (TNRCC). Funds and account groups used by the District are as follows: Governmental funds General Fund - To account for all of the revenue of the District not specifically levied or collected for other District funds, and for expenditures related to the maintenance of operations and capital outlay which is not financed with Bond proceeds. Debt Service Fund - To account for the source and disposition of monies for paying interest and principal on general long-term debt. Account grouDs General Fixed Assets - To account for property and equipment of the District. General Lone-Term Debt - To account for the unmatured principal of outsranding General Long-Term Debt. e. Basis of accounting - Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the fmancial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 1. Summarv of significant accounting policies - continued e. Basis of accounting - continued All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Ad Valorem property taxes are recorded as revenue when received or expected to be received within sixty (60) days of year-end. Penalties and interest on property taxes and miscellaneous revenues are recorded when received in cash because they are generally not measurable until actually received. Intergovernmental revenue and interest income earned but not received by year-end are accrued, when their receipt occurs soon enough after the end of the accounting period so as to be both measurable and available. Expenditures are generally recognized under tlie modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general mle include principal and interest on general long-term debt which are recognized when due. f. General fixed assets and lone-tern debt - The accounting and reporting treahnent applied to fixed assets and long-tern liabilities associated with a fund are determined by the fund's measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and odier financing sources) and decreases (expenditures and other financing uses') in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 1. Summarv of sienificant accountine policies - continued f. General fixed assets and lone-term debt - continued Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings have not been capitalized. No depreciation has been provided on general fixed assets. All fixed assets are valued at llistorical cost, or estimated historical cost if actual historical cost is not available. Donated assets are valued at their estimated fair value on the date donated. Acquisition of general futed assets are reported at the time of purchase as an expenditure in the General Fund and capitalized in the General Fixed Assets Account Group. Repairs and maintenance are recognized as expenditures; renewals and betterments are capitalized. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group. The two account groups are not "funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 1. Summan, of sienificant accountine uolicies - continued g. Budeets and budeetan, accounting - The District follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The Board of Directors adopts an annual budget for the General Fund on the modified accrual basis. No budget is prepared for the Debt Service Fund. 2. The Board of Directors approves budget appropriations. Any revisions that alter the total appropriations of the General Fund must be approved by the Board of Directors. Therefore, the level of budgetary responsibility is by total appropriations of the General Fund. 3. Unused budget appropriations lapse at the end of each fiscal year. 4. No significant amendments to the budget occurred during the year. h. Cash and investments - The District maintains a separate bank account for each fund. Except for bond related transactions, the District conducts all its banking and investment transactions with its depository bank. Deuosits At year-end the carrying amount of the District's deposits was $1,293,431 and its total bank balance was $1,287,566, Of the bank balance, S100,000 was covered by federal depository insurance, and $300,607 was covered by collateral in the District's name held by the District's agent banks, which are different from the District's depository banks. The remaining $886,959 was held in TexPool Investments. The District does not carry any bank balance over and above the insured and secured amounts. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 1. Summarv of sienificant accountine oolicies - continued h. Cash and investments - continued In accordance with its policy, the District had no investments during the year other than interest bearing bank accounts;Certificates of Deposits, Treasury Bills and the State of Texas Texpool. Texpool is duly chartered and administered by the State Treasurer's office, and the portfolio normally consists of U. S. T-Bills, T-Notes, collateralized certificates of deposit, and repurchase agreements. Investments are stated at cost which approximates market. The District records all interest earned from investment activities in the respective funds. i. Revenue Recoenition - Ad Valorem Property taxes - Ad Valorem property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on October 1 and are due and payable by January 31, of the following year. All unpaid taxes levied October 1 become delinquent February I of the following year. The District receives most of its payments in December. The District's current tax rate is $.295 ($0.055 for operations and $0.24 for debt service) per $100 of assessed valuation, which is assessed at one hundred percent (100%) of actual value. Property taxes for the District are not Limited as to rate or amount. In an election held October 7, 1975, the electorate of the District authorized Lhe levy of up to $25 per $100 valuation for operations of the District. j. Total columns - Total columns are captioned "memorandum only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns does not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data cornparable to a consolidation. Interfund elimillations have not been made in the aggregation of these data. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 1. Summary of significant accounting policies - continued k. Comoarative Data - Total columns for the prior year are presented to provide an understanding of changes in the District's financial position and operations. Prior year information by fund type is not presented since their inclusion would make the statements unduly complex and difficult to read. 2. Creation of district - The District was created by an order of the TNRCC (formerly the Texas Water Commission) on March 4, 1975, and confirmed by the electorate of the District at a confirmation election held on October 7, 1975. The Board of Directors held its first meeting on April 24, 1975. The first bonds were sold on June 8, 1976. The District operates pursuant to Article XVI, Chapter 59 of the Texas Constitution and Chapter 54 of the Texas Water Code, as amended. 3. Oreanizational costs - The District, in conformance with requirements of the TNRCC, capitalized and charged to organizational costs, for the creation period, all costs incurred in the creation of the District allowed by statute. The TNRCC 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. 4. Reshicted assets General Fund - Restricted cash represents amounts deposited into an account specifically set aside for refund of customer water deposits. Debt Service Fund - Restricted cash represents amounts deposited into sinking fund accounts for the retirement of bond principal and interest. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 5. Chan~es in eeneral fixed assets - A summary of changes in general fixed assets foilows: Balance Balance September 30, September 30, 1993 Additions Deletions 1994 Land Buildings Water system Sanitary wastewater system Drainage system Machinery and equipment Autos and trucks Furniture and fixtures Engineering fees 16,632,491 Capitalized creation and construction period organizational costs 522.688 Total Provided by: Contributions by developers $ 6,850,741 Contributions by General Fund 1,566,832 Contributions by Debt Service Fund 242,343 Bond issues 8,214,918 Contriburions by Capital Project Fund 280.345 Total 6. Cauitalized interest - The District capitalizes net interest costs as part of the cost of constructing various water and sewer projects when material. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 7. General lone-term debt - The annual changes to general long-term debt for the year ended September 30. 1994 are as follows: Capital Leases Notes Bonded Debt Balance October 1, 1993 $14,465 $6,750 $8,608,000 Principal payments 4.216 6.750 342.000 Balance September 30, 1994 $10,249 - 0 = $8.266.M]0 Sa. Bonded debt - At September 30, 1994, the District's long-term bonded debt consisted of: Range of General Next interest long-term Year Subsequent A debt maturities maturities Water works and sewer system combination unlimited t;w (Paid by Debt Service Fund) and revenue Serially bonds series through 5.50 - 1987 1997 8.60 $ 690,000 $215,000 $ 475,000 Public Property (Paid by General Fund) Finance con- Serially tractual obli- through 7.60 - gations 1989 1999 9.00 76,000 Water works and sewer system combination unlimited Lax (Paid by Debt Service Fund) and revenue Serially bonds series through 5.50 - 1991 201 1 7.50 4,010,000 130,000 3,880,000 Water works and sewer system combination unlimited tax (Paid by Debt Service Fund) and revenue Serially bonds series through 3.25 - 1993 2007 5.90 3.490.000 10.000 3.480.000 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 8a. Bonded debt (Continued) A schedule of bond maturities is as follows: Year Principal Interest Total Tax and revenue bonds authorized and unissued as of September 30, 1994, amounted to $1,229,217. 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, 1994. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 8a. Bonded debt - Continued) The outstanding bonds are callable for redemption prior to maturity at the option of the District as follows: Series 1991 - All maturities from 2002 - 2011 are callable in principal increments of $5,000 on or after September 1, 1998 at par plus unpaid accrued interest to the fixed date for redemption. Series 1987 - All maturities from 1998 - 2007 are callable in principal increments of $5,000 on or after September 1, 1997 at par plus unpaid accrued interest to the fixed date for redemption. During 1987, the District issued bonds in the amount of $5,675,000. The proceeds, along with cash on hand in the Debt Service 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. Accordingly, the trust account assets and the liabilities for the defeased bonds are not included in the District's financial statements. At September 30, 1994, $1,610,000 in bonds outstanding are considered defeased. During 1993, the District issued $3,500,000 in General Obligation Bonds with an average interest rate of 5.58 percent to advance refund $3,805,000 of $4,695,000 outstanding 1987 Series bonds with an average interest rate of 7.89 percent. The net proceeds of $3,367,123 (after payment of $132,877 in undenvriung fees and other issuance costs) plus an additional $900,000 of MUD I Operating and Maintenance funds and $95,000 of Debt Service funds were used to purchase U. S. Securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1987 Series bonds at September 30, 1994. Accordingly, the trust account assets and the liabilities for the defeased bonds are not included in the District's financial statements. At September 30, 1994 S4,700,000 in bonds outstanding are considered deferised. The District is in compliance witti all provisions of the bond resolutions. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 8b. Notes uavable -The last scheduled annual payment of $6,750, plus accrued interest at 7.2%, which was secured by equipment was paid during this fiscal year. 8c. Capital lease uayables - The District has entered into a lease for equipment. The lease is accounted for as a capital lease. At the end of the lease, the District will own the equipment. Future minimum lease payments for the lease described are as follows: Fiscal Year 1995 1996 Total Amount Less amount representing interest (703) Present value of net minimum lease payments $10.249 9. Commitments - The District follows the guidelines of the TNRCC in its dealings with developers. 10. Permit renewal - During 1994 the District renewed its permit with the TNRCC. Park Cities Municipal Utility District filed protests relating to this renewal. The District's permit was renewed. However, the District incurred approximately $54,000 in non-recurring legal and engineering fees defending the protest. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 11. Retirement Plan - The District provides retirement benefits for all of its full time employees through a defined contribution single employer Simplified Employee Pension - Individual Retirement Contribution agreement plan administered by the First National Bank of Grapevine, Texas and Fidelity Investment. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are eligible to participate after completion of six (6) months service. The District contribution rate was adopted by the governing board of the District at five percent (5%) of participating employees' actual compensation. By Board approval and Internal Revenue Service regulations the contribution rates are established annually. There is no vesting period. Employees do not have the option to contribute to the plan. The plan, as established does not recognize prior service costs as it is based exclusively on current compensation earned by participants. The District's total payroll, covered payroll and contributions for 1994 were as follows: District's total payroll $389,565 District's covered payroll 349,449 District's contribution required and paid 17,475 12. Risk Manaoement - The District protects itself from risks of loss by obtaining insurance policies in the following potential risk areas: health and disability, automobile, general liability, worker's compensation and unemployment compensation. All policies have specific limits and were in effect at September 30, 1994. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1994 13. Post-Emplovment Health Care Benefits - The District only provides post-employment health care benefits under COBRA. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the District makes health care benefits available to eligible former employees and eligible dependents. Certain requirements are outlined by the federal government for this coverage. The premium plus a 2% administration fee is paid in full by the insured on or before the tentli (10th) day of the month for the actual month covered. This program is offered for a duration of 18 months after the employee's termination date. There is no associated cost to the District under this program, and there are no participants in the program as of September 30, 1994. The District does not provide any other post-employment benefits other than pension benefits. SUPPLEMENTARY SCKEDLJLES The following supplementary schedules are included to satistj, reporting requirements of the Texas Natural Resources Conservation Comn~ission. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I SUPPLEMENTARY SCHEDULES INCLUDED WITHIN THIS REPORT September 30, 1994 Notes Reouired bv the Water District Accounting Manual These are incorporated into the Notes presented as part of the General Purpose Financial Statements. Schedule of Services and Rates Schedule of General Fund Expenditures Schedule of Tem~orarv Investments - All Funds Analvsis of Taxes Levied and Receivable Analvsis of Chan~es in General Fixed Assets and Oreanizational Costs General Lone-Term Debt Service Requirements - by Years Analvsis of Chanees in General Lone-Term Debt Comparative Schedule of Revenues and Expenditures - Five Years Insurance Coveraee Board Members. Kev Administrative Personnel and Consultants Individual General Fund Account Financial Statements Net General Fixed Assets bv Fundine Source Certificate of the Board of Directors TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (E) SCHEDULE OF SERVICES AND RATES Year ended September 30, 1994 1. Services provided by the District: X Retail Water - - X Wholesale Water X Drainage - X Retail Wastewater - - X Wholesale Wastewater - Irrigation - ParksIRecreation - X Fire Protection - Security - Solid WastelGarbage - Flood Control Roads X Participates in joint venture, regional system andlor waste water service (other than emergency interconnect) - Other (specify): 2. Retail rates (based on 518" meter) Most prevalent type of meter (if not 518") - Retail rates not applicable Minimum Administrative Usage Flat Rate per Usage levels Fee fin eallons) Rate 1.000 eallons (in eallons) Water $9.00 0 No $0.47 1 - 3,000 0 No $1.92 3,001 - 20,000 0 No $2.18 Over 20,000 Wastewater $9.00 Irrigation 0 Yes $1000 1 - 300,000 0 No $2.18 Over 300,000 Surcharge None District employs winter averaging for wastGwater usage? Yes - No x Total water and sewer charges per 10,000 gallons usage: First 10,000 gallons used (including administrative fee) Nest 10,000 gallons used Nest 10,000 gallons used and subsequent 3. Standby Fees: Does the District assess standby fees? Yes X No - If yes, specify amount and basis of ille assessment. $6.00 per lot $0.00 per acre - Other or non-unifornl rates (Check One) - Per year - Per quarter - X Per month Percentaee allocated to: General Fund Debt Service Fund N;ive the standby fees been approved by the Texas Water Commission? Yes - N~ +* I-Iave standby fees been levied in accordance with Water Code Szction 50.056, thereby constituling a lien on property? Yes - No *' Maximum residential wastewater charge is for 12,000 gallons or $26.52. "' Standby fees are levied and do constitute a lien under covenants and restrictions pursuant to Section 293.149- 150 of Title 30 of Texas Administrative Code and do not require approval of the TNRCC. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (E) SCHEDULE OF SERVICES AND RATES Year ended September 30, 1994 (Continued) 4. Total water consumption (rounded to the nearest 1,000) during the fiscal year: Gallons pumped into system: 358,370 Gallons billed to customers: 356.830 5. Number of retail water and/or wastewater connections within the District as of the fiscal year end. Connections Active Connections Inactive Connections Single Family 956 Multi-Family 55 Commercial 63 Other - recreational centers, government & VFD 6 TOTAL - 1.080 - - . 6. Anticipated sources of funds to be used for debt service payments in the district's following fiscal year: Amount a. Debt Service Tax Receipts $649,603 b. Surplus Construction Funds - c. Water andlor Wastewater Revenue 87,000 d. Standby Fees . e. Beginning Debt Service Fund Balances 114,251 f. Interest Revenues 27,000 g. Other - TOTAL ANTICIPATED FUNDS TO BE USED $877.853 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (F) SCHEDULE OF GENERAL FUND EXPENDITURES Year ended September 30, 1994 Water and Fire MUD I Actual Sewer Department Operations - Total Current: Salaries, wages, benefits and taxes $ 415,698 $ 68,752 $ - $ 484,450 Professional fees: Legal Engineering Auditing Tax office contracted services - 2,000 16,811 18,811 Administrative expenditures: Directors' fees 1,000 - 1,550 2,550 Office supplies 9,882 3 02 65 10,249 Insurance and bonds 34,715 16,296 5,475 56,486 Other 135,703 - 1,137 136,840 Fire fighting - 74,658 (A) - 74,658 Purchased services for resale Bulk water and sewer service purchases 408,372 - . 408,372 Utdities and telephone 189,334 7,036 - 196,370 Maintenance and repairs 70,719 7,705 100 78,524 Capital outlay - Acquisition of fixed assets 67.841 11.076 78.917 Total expenditures $1.41 3.708 $188.825 $34.443 S1.636.976 Number of persons employed by the District: Full-time: 15 Part-time: 1 it!) Includes S5.361 of inrerest paid to IVUD 1 and $13,609 adjustment in note payable; both eliminated in consolidation. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (G) SCHEDULE OF TEMPORARY INVESTMENTS - ALL FUNDS Year ended September 30, 1994 Accrued Identification Interest of Received Certificate Interest Maturity Balance at at End Number Rate Date End of Year of Year General Fund MUD I Maintenance: Money Market Account Texpool 06133-1111 4.4% Demand $134,073 Paid Daily Money Marlcet Account Texpool 06133-2489 4.4% Demand 426.059 Paid Daily Total Debt Service Fund Money Market Account Texpool 06133-3333 4.4% Demand $326.827 Paid Daily Total - All Funds $886.959 $ - TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (@ ANALYSIS OF TAXES LEVIED AND RECEIVABLE Year ended September 30, 1994 Taxes receivable at beginning of year 1993 tax roll Total to be accounted for Less collections: Cunent year Prior years Taxes receivable at end of year Taxes receivable by years: 1984 and prior 1985 1986 1987 1988 1989 1990 1991 1992 1993 Property valuations: Fire MUD I Department MUD I Debt Maintenance Maintenance Service $ 8,181 $ 5,212 $ 47,853 152,633 33.918 814.041 160,814 39,130 861,894 Five vears ended Se~tember 30. (in thousands except for tax roll nmount) 1993 - 1992 - 1991 - 1990 hd $ 51,057 $ 53,998 $ 58,887 $ 57,533 $ 58,295 Improvements 179.834 191,740 204,761 224,165 235,886 Personal property 110,876 95,863 89,473 60,576 3,159 Exemptions (2.319) 11.844) (17) (1J) (14) Total property valua[ions $ 339.448 $ 339.757 $ 353,104 $342.260 $ 297.326 Tax rate per $100 valuation: Fire maintenance $.045 $.045 Maintenance .010 ,010 Debt service - ,240 - ,240 Total $.295_ - $.295 - Tax rolls (total) For the yzar endcd September 30, 1994: Percent of current taxes collected to current taxes levied Percent of current and delinquent taxes collected to current and delinquent taxes outstmding at heginning of tax yenr All taxes 98.7% (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (H) ANALYSIS OF TAXES LEVIED AND RECEIVABLE Year ended September 30, 1994 (Continued) Tax rate for any other special district which (a) encompass less than a county, @) provide water, wastewater collection, drainage or roads to property in the district (c) taw property in the district. Name of Special Districts Service Provided Tax Rate None $-.z.- $-Z.L TOTAL RATE(S) OF SPECIAL DISTRICT(S) $-..L..-....L Tax rate for all overlapping jurisdictions. Include any taxing entities which overlap 10% or more of the district. Denton Tarran t Countv Countv a. County DentonITmant $ 0. 2994 $ 0. 60302 b. City Town of Trophy Club $ 0. 3361 $L.- c. School District Nonhwest ISDICarroil ISD $ 1. 4950 $ 1. 62950 d. Special Districts not included above: None $-.Z.-...L $2.- e. Total Special District $L.L $L.~ f. Total District Tax Rate $ 0. 2950 $ 0. 29500 g. TOTAL OVERLAPPING TAX RATE $ 2. 4255 $2.- -- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (I) ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS AND ORGANIZATIONAL COSTS Year ended September 30, 1994 PHYSICAL FACILITIES: Land Buildings Water system Sanitary wastewater system Drainage system Machinery and equipment Autos and trucks Furniture and fixtures Engineering fees TOTAL PHYSICAL FACILITIES DISTRICT ORGANIZATIONAL COSTS: Creation period: Engineering and surveys Filing fees, licenses, legal notices and permits Legal fees Director fees and per diem Other costs Construction period: Legal fees Financial consulting fees Operating Bond interesr Amortized bond discount TOTAL DISTRICT ORGANIZATIONAL COSTS TOTAL GENERAL FIXED ASSETS AND ORGANIZATIONAL COSTS Balance 9130193 $17.155.179 (Continued) Additions $ - Balance Deletions 9130194 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (I) ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS AND ORGANIZATIONAL COSTS Year ended September 30, 1994 (Continued) AMOUNTS PROVIDED BY: General Fund: Contributions by developers Contributions by General Fund Debt Service Fund - Contributions by Debt Service Fund Capital Projects Fund - Bond issues Contributions by Captial Projects Fund TOTAL AMOUNTS PROVIDED Balance 9130193 Additions Balance Deletions 9130194 Due during fiscal years ending Seotember 30 1995 1996 1997 1998 1999 2000 200 1 2002 2003 2004 2005 2006 2007 2008 2009 2110 2111 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS September 30, 1994 Series 1987 Principal Interest due due March and Seotember 1 Seotember 1 - Total Series 1989 Principal due Januarv 1 $13,000 14,000 15,000 16,000 18,000 - - Interest due January and Julv 1 Total (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS September 30, 1994 (Continued) Series 1991 Due during fiscal years Principal Interest due ending due March and September 30 September 1 September 1 Total 1995 130,000 268,540 398,540 1996 140,000 258,790 398,790 1997 150,000 248,290 398,290 1998 160,000 237,040 397,040 1999 170,000 225,040 395,040 2000 180,000 214,670 394,670 200 1 195,000 203,510 398,510 2002 210,000 191,225 401,225 2003 225,000 177,785 402,785 2001 240,000 163,160 403,160 2005 255,000 147,320 402,320 2006 275,000 130,235 405,235 2007 290,000 111,535 401,535 2008 310,000 91,525 401,525 2009 335,000 69,825 404,825 2110 360,000 46,375 406,375 2111 385.000 21,175 406,175 $4.010.000 $2.806.040 $6.816.040 (Continued) Series 1993 Principal due September 1 10,000 10,000 10,000 275,000 290,000 300,000 315,000 330,000 350,000 365,000 390,000 410,000 435,000 - - Interest due March and Se~tember 1 187,480 187,105 186,705 186,280 173,905 160,565 145,565 129,185 111,365 92,115 71,675 49,445 25,665 - Due during fiscal years ending Seulelnber 30 1995 1996 1997 1998 1999 2000 200 1 2002 2003 2004 2005 2006 2007 2008 2009 2110 2111 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS September 30, 1994 (continued) Total Principal due 368,000 394,000 420,000 45 1,000 478,000 480,000 510,000 540,000 575,000 605,000 645,000 685,000 725,000 310,000 335,000 360,000 385.000 $8.266.000 Annual Requirements Total Interest due 509,854 483,992 455,882 425,366 399,656 375,235 349,075 320,410 289,150 255,275 218,995 179,680 137,200 91,525 69,825 46,375 21,175 $4.628.670 Total Principal and Interest due 877,854 877,992 875,882 876,366 877,656 855,235 859,075 860,410 864,150 860,275 863,995 864,680 862,200 401,525 404,825 406,375 406.175 $12.894.670 Cash and temporary investment balances at September 30, 1994: Deb1 Service Fund $363.454 Interest rate TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (K) ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT Year ended September 30, 1994 Bond issues Series Series Series Series 1987 1989 1991 1993 Total Dates interest payable Maturity dates Bonds outstanding at beginning of current year Bonds sold during current year Retirements: Principal Bonds outstanding at end of current year Retirements: Interest Paying agent's name and address: Series 1987, Series 1989, Series 1991 and 1993: Ameritrust Texas, N. A,, P. 0. Box 2320, Dallas, Texas 75211 Bond Authority: Refunding Tau Bonds Other bonds Bonds Amount autlionzed by vorers $12,344,217 3 . S Amount issued 11,115.000 Remain~ng lo be issued 1 ,--,.- 770 717 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (L) COMPARATIVE SCHEDULE OF REVENUES AND EXF'ENDITURES Five Years ended September 30 (Continued) Amount Percent of htnd revenue 1994 - - 1993 1991 1990 ----- 1994 1993 1992 1991 1990 Debt Service Fund revenues Ad valorem property taxes Ad valorem property tax penalties and interest Interest wrned hliscellanmus Other financing sources Total Debt Service Fund revenues Dcht Sen3icc Fund exnendit~tres Principal retirement Intcrest ;ad fiscal charges Payment to refunding bond agent Total Debt Service Fund expenditure Excess (deficiency) of Debt Service Fund revenues over (under) expenditures Note: Revenues include operating transfers in and expenditures include operating transfers out. -38- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 Employrz honesty, etc.: Tax assessor-collector Public official (wch director) Bookkeeper bond Director and office liability Building and conteiils and water sysrcrn Liability: Gener:tl: Bodily injury Property damage Automotive (nonowned): Bodily injury Property damage Contractor's equipment (M) INSURANCE COVERAGE September 30, 1994 Amount of CoYeraPe $ 10,000 Hartford Compnny 50,000 Hartford Company 10,000 Hartford Company 1,000,000 Colonial Insurance Company 5,468,000 American Protection 1,000,000 Mid-Continent Casualty 2,000,000 Type of corporation stocklmutual Stock Stock Stock Stock Stock Stock 1,000,000 Mid-Continent Casualty Stock 1,000,000 Mid-Continent Casualty Stock 60,500 Phoenix Assurance Company Stock Policy clause co-insurance None None None Nonc None None None None None This statement, prepared from the policies, is intended only as a descriptive summary; no expression of opinion as to the adequacy of the coverage is intended. (Continued) Tvne of coverace Volunteer Fire Dzpartlnent: Errors and omissions liability Excess Errors and Omissio~is liability IJ~nhrella 1i;tbility Llabtlily: Generel: Rldily injury Property damage Autom~llive (nonownad): Bodily injury Properly damage TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (M) INSURANCE COVERAGE September 30, 1994 (Continued) Amount of co\'erape Cigna Insurance Company Cigna Insurance Company Cigna Insurance Company Cigna Insurance Company Cigna Insurance Cigna Insurance Type of corporation stocklmutual Stock Stock Stock Stock Stock Stock Policy clause co-insurance None None None None None None l'his slztlement, prepared from the policies, is intended only as a descriptive summary; no expression of opinion as to the adequacy of the coverage is intended. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (N) BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS September 30, 1994 Complete district mailing address: 100 Municipal Drive, Trophy Club, Texas 76262 District business telephone number: (817) 430-1921 Term of Fees office elected and expense Resident and expires or reimbursement of Name and address date hired 09-30-94 Title at vear-end District? Board members Constance S. White 119 Trophy Club Drive Trophy Club, Texas 76262 5/94 - 5/98 $ 650 President Yes T. A. Neidenberger 1033 Sunset Drive Trophy Club, Texas 76262 5/92 - 5/96 $ 600 Vice-president Yes John V. Peters 402 Hilltop Court Trophy Club, Texas 76262 1/92 - 5/96 $ 0 Director Yes R. Peter Reincke, Jr. 3 Colonial Court Trophy Club, Texas 76262 5/94 - 5/98 $ 650 Director Yes Susan H. McCabe 1136 Sunset Drive Trophy Club, Texas 76262 5194 - 5/98 $ 650 Secretary-Treasurer Yes 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. Key administrative personnel Roger Unger 102 Carnoustie Trophy Club, Texas 76262 04115/86'* $56,800 General Manager Yes ." Assumed responsibility of General Manager on 10115189 (Continuedj TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (N) BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS September 30, 1994 (Continued) Term of office elected and expires or date hired Fees and expense reimbursement 09-30-94 Resident of District? Name and address Title at vear-end Consultants Denton County Appraisal District P. 0. Box 2816 Denton, Texas 76202 Appraiser No Yes No No Donna Welsh 100 Municipal Drive Trophy Club, Texas 76262 Tax Assessor/ Collector James L. Buxton, P.C. 5017 S. Hulen Suite 4 Fort Worth, Texas 76132 Certified Public Accountant Carter & Burgess 1100 Macon Street Fort Worth, Texas 76102 Consulting Engineer Michener, Larimore, Swindle Whitaker, Flowers, Sawyer, Reynolds and Chalk, L.L.P. 3500 City Center Tower I1 Fort Worth, Texas 76102 Legal Counsel Booth and Dillon, P.C. 2020 1st City Centre 816 Congress Avenue Austin, Texas 78701 Legal Counsel Current assets Cash: Unrestricted Restricted Total cash Accounts receivable less allowance of $78,109 Ad valorem property taxes receivable Interfund receivables Prepaid expenditures Total current assets LIABILITIES Current iiabilites: Accounts ~avnble and accrued liabilities Interfund baiables Refundable deposits Deferred income Total liabilities FUND EOUITY Fund Balance Reserved for prepaid expenditure Unreserved Tolal fund balance TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (0) CONSOLIDATING BALANCE SHEET September 30, 1993 Water and Sewer Fire MUD l Svstems Department Operations Eliminations Consolidated Totals TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (0) CONSOLIDATING SCHEDULE OF REVENUES AND EXPENDITURES September 30, 1993 Revenues Service Service contracts Inspection and Lap cotinection fees Water und sewer service penalties and interest Ad valorem properly taxes .Ad valorem property tax penalties and interest Interest on temporary investtnrnts MUD 11 contributions Line location rein~hiirsement hliscellat~rous Total revenurs Expenditures Water and Sewer Department: Salaries, wages, benefits and taxes Engineering fees Administrative - other: Consumable supplies Rentllease equipment Bad debts Other Water purcl~ases Utilities and telephone Maintenance and repairs Capit111 expmditures Total Water and Scwer Department ex[~e~~ditures Water and Sewer Fire MUD I Systenls Department Opemtinns Eliminations Consolidated Totals TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (0) CONSOLIDATING SCHEDULE OF REVENUES AND EXPENDITURES September 30, 1993 Water and Sewer Fire Department MUD I Operations Consolidated Totals Eliminations Administrative Expenditures: Salaries, wages and benefits and txxes Professional fees: Legal Engineering Auditing Tax office contract services Directors' fees Office supplies Insurance and bonds Administrative - other: Contract labor Travel and seminars Notelbondlcapital lease payments Schools and training Uniforms Legal notices and publications Printing Fuel and supplies Remote communications Miscellaneous Utilities and telephone Mait~tenance and repairs Capital expenditures Total administrative expenditures Total expenditures Excess of revenues over expenditures TROPHY CLUB MUNICIPAL UTILlTY DISTRICT NO. I (P) WATER AND SEWER ACCOUNT ONLY BALANCE SHEET September 30, 1994 ASSETS Current Assets Cash: Unrestricted Restricted Total cash Accounts receivable less allowance of $78,109 Prepaid expenditures Total current assets LIABILITIES Current Liabilities Accounts payableiaccmed expenditures Refundable deposits Total current liabilities FUND EOUITY Fund balance Reserved for prepaid expenditure Unreserved Total fund balance Total liabilities and fund equity TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (F') WATER AND SEWER ACCOUNT ONLY BUDGET AND ACTUAL Year ended September 30, 1994 Budget Actual Revenues: Water and sewer service $1,425,691 $1,384,990 Inspection and tap connection fees 19,400 36,351 Water and sewer service penalties and interest 19,100 25,799 Interest on temporary investments 3,200 2,071 Miscellaneous 7,675 7.247 Total revenues 1.475.066 1.456.458 Expenditures: Water and Sewer Department: Salaries, wages, benefits and taxes Engineering fees Administrative - other: Consumable supplies Rentllease equipment Bad debt Regulatory fees Water meters Lab analysis Garbage service Miscellaneous Water purchases Utilities and telephone Maintenance and repairs Capital expenditures Total Water and Sewer Department Variance favorable - [unfavorable) (Continued) -47- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) WATER AND SEWER ACCOUNT ONLY BUDGET AND ACTUAL Year ended September 30, 1994 (Continued) Expenditures: (continued) Administrative: Salaries, wages, benefits and taxes Professional fees: Legal Engineering Auditing Directors' fees Printing and office supplies Insurance and bonds Administrative - other: Contract labor Travel and seminars Miscellaneous Utilities and telephone Maintenance and repairs Capital expenditures Total administrative Budget Total expenditures 1.464.848 1.413.708 Excess (deficiency) of revenues over (under) expenditures $ 10.218 42,750 Fund balance at beginning of year Fund balance at end of year Variance favorable - [unfavorable) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) FIRE DEPARTMENT ACCOUNT ONLY BALANCE SHEET September 30, 1994 ASSETS Current Assets: Unrestricted cash Ad Valorem property taxes receivable Accounts receivable Total current assets LIABILITIES Current Liabilities: Accounts payable/accrued expenditures Interfund payables Total current liabilities Deferred Income Total liabilities FUND EOUITY Fund balance - Unreserved Total liabilities and fund equity TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) FIRE DEPARTMENT ACCOUNT ONLY BUDGET AND ACTUAL Year ended September 30, 1994 Revenues: Service contracts Ad valorem property taxes Ad valorem property tax penalties and interest MUD I1 contributions Interest on temporary investments Miscellaneous Total revenues Expenditures: Administrative Salaries, wages, benefits and taxes Professional fees - Auditing Tax office contract services Office supplies Insurance and bonds Firefighting: Note/bondlcapital lease payments School and training Uniforms Fuel and supplies Remote communications Miscellaneous Utilities and telephone Maintenance and repairs Capital expenditures Budeet - 44,909 (A) 4,467 733 2,778 2,247 19,524 (B) 7,036 7,705 11,076 Variance favorable - (unfavorable) Total expenditures 196,479 188.825 7.654 Excess of revenues over expenditures S - 1,454 --c $ 1 453 Adjustment in note payable 13,609 Fund balance at beginning of year 1.655 Fund balance at end of year $ 16.718 (A) Includes $13,609 adjustment in note payable. (B) Includes $5,261 of interest expense paid to MUD 1 and eliminated in consolidation. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) MUD I MAINTENANCE AND OPERATIONS ACCOUNT ONLY BALANCE SHEET September 30, 1994 ASSETS Current Assets: Unrestricted cash Accounts receivable Ad Valorem property taxes receivable Interfund receivables Total current assets Current Liabilities - Accounts payable Deferred Income Total labilities FUND EOUITY Fund balance - unreserved Total liabilities and fund equity TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) MUD I MAINTENANCE AND OPERATIONS ACCOUNT ONLY BUDGET AND ACTUAL Year ended September 30, 1994 Variance favorable - Budeet [unfavorablel Revenues: Ad valorem property taxes $30,500 $ 33,986 $ 3,486 Ad valorem property tax penalties and interest 1,000 253 (747) Interest on temporary investments 16,700 27,031 (A) 10,331 Line location reimbursement 11,455 52.123 40.668 Total revenues 59.655 113.393 53,738 Expenditures: Administrative Professional fees: Legal Engineering Auditing Tax office contract services Directors' fees Office supplies Insurance and bonds Administrative - other Travel and seminars Legal notices and publications Printing Miscellaneous Maintenance and repairs Total expenditures 38.750 34.443 4.307 Net Income $20.905 78,950 $58.045 - Fund balance at beginning of year 61 1.850 Fund balance at end of year $690.800 (A) Includes $5,261 of interest income received from Fire Department and eliminated in consolidatioli Land Buildings Water system Sanitary wastewater system Drainage system Machinery and equipment Autos and trucks Furniture and fixtures Engineering fees Capitalized creation and construction period costs Less accumulated depreciation Net General Fixed Assets Estimated Useful Lives: WaterISewer System Automobile All other assets TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (Q) NET GENERAL FIXED ASSETS BY FUNDING SOURCE September 30, 1994 Water and Sewer Department and Administrative 40 years 3 years 10 years Fire Department MUD I Operations MUD I Bonds and Develo~ers Total TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (R) CERTIFICATE OF THE BOARD OF DIRECTORS Year ended September 30, 1994 Tro~hv Club Municiual Utilitv District No. I Name of Water District Denton/Tarrant County We, the undersigned, do hereby certify that the audit report of the above-named Water District 1994, was received by the Board of Directors on the and was reviewed and ( ) approved; ( ) disapproved of the Water District on the A day of shdlt~6? Y , 199 j Signature of Ez3EzL'r Signature of ~oard President