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HomeMy WebLinkAboutFY Ended September 30, 1995TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES FOR THE YEAR ENDED SEPTEMBER 30, 1995 with INDEPENDENT AUDITORS' REPORT TABLE OF CONTENTS Independent Auditors' Report General-Puraose Financial Statements Combined balance sheets - all fund types and account groups Combined statements of revenue, expenditures and changes in fund balances - all governmental fund types Combined statements of revenue, expenditures and changes in fund balances (budget and actual) General Fund Notes to general-purpose financial statements Supplementary Schedules Supplementary schedules included within this report Schedule of services and rates Schedule of General Fund expenditures Schedule of temporary investments - all funds Analysis of taxes levied and receivable Analysis of changes in general fixed assets and organizational costs G~neral long-term debt service requirement - by year Analysis of changes in general long-term debt Comparative schedules of revenue and expenditures - five years Insurance coverage Board members, key administrative personnel and consultants Combining schedules Individual General Fund account financial statements Certificate of the Board of Directors MEMBERS: Arnericon lnililule of CeniliedPutC AC~ounI~~nli remi SoCle1)iOf Certif!idPutlic A~~o~nionli INDEPENDENT AUDITORS' REPORT Board of Directors Trophy Club Municipal Utility District No, I Trophy Club, Texas We have audited the accompanying general-purpose financial statements and the combining and individual fund and account qroup financial statements of Trophy Club Municipil Utility District No. I, as of and for the year ended September 30, 1995. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significank estimates made by manayement, as well as evaluating the overall 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 Vtility District No. I as of September 30, 1995, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. ~lso, in our opinion, the combining and individual fund and account group financial statements referred to above present fairly, in all material respects, the financial position of each of the individual funds and account groups of Trophy Club Municipal Utility District No. I as of September 30, 1995, and the results of operations of such funds for the year then ended in conformity with generally accepted accounting principles. Board of Directors Trophy Club Municipal Utility District No. I Page 2 As discussed in Note 3 to the general-purpose financial statements, beginning fund balance-General Fund has been restated to reflect prior period adjustments. Our audit was made for the purpose of forming an opinion on the general-purpose financial statements taken as a whole and on the combining and individual fund and account group financial statements. The accompanying financial information listed as supplementary schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of Trophy Club Municipal Utility District No. I. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose, combining and individual fund and account group financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements of each of the respective individual funds and account groups taken as a whole. November 17, 1995, except Note 11 which is dated December 14, 1995. TROPHY CLUB MUNICIPAL unLm DISTRICT NO. I COMBINED BALANCE SHEETS -ALL FUND TYPES AND ACCOUNT GROUPS September 30,1995 Governmental Fund Types Account Groups General General Long- tern Debt Fixed Assets -- Total (memo only) 1995 1994 Geneml Debt Service ASSETS Current assets: Cash and cash equivalents Restricted cash Accounts receivable, net of allowance for doubtful accounts of 577,264 Ad valorem property tax receivable Prepaid expenditures Total current assets Geneml fixed assets Amount available in debt se~ice fund Amount to be provided for retirement of general long-term debt Total assets LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable and accrued liabilities Deferred income Refundable deposits Total current liabilities Capitalized lease Bonded debt payable Total liabilities lnvesbnent in general fixed assets Fund balances: Resewed for debt service UnreseNed Total fund equity Total liabilities and fund equity 51,382,939- 5273.173 -m@m 57,902,2~~ The accompanying notes are an integral part of these financial statements TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENTS OF REVENUE. EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES for the year ended September 30, 1995 Governmental Fund Types Totals (memo only) REVENUE General Debt Service 1995 1994 Water, sewer and fire dept. service Inspection and tap connection fees Water and sewer service penalties and interest Ad valorem property taxes Ad valorem property tax penalties and interest Settlement MUD II Contributions Interest earned Line relocation reimbursement Miscellaneous Total revenue EXPENDITURES Water and sewer service Administrative Fire department Maintenance and operations Capital outlay 142,287 0 142,287 78,917 Debt Service: Principal retirement 0 355,000 355,000 352,966 Interest 0 504,380 504,380 535,239 Fiscal charges 0 750 750 750 Total expenditures 1,633,094 860,130 2,493,224 2,475,761 Excess (deficiency) of revenue and financing sources over expenditures and other uses Fund balances, beginning of year as restated 960,168 422,901 1,383,069 1,163,325 Fund balance, end of year $1,220.644 $261.925 $1,482.569 $1,38= The accompanying notes are an integral part of these financial statements, TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENTS OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (BUDGET AND ACTUAL) - GENERAL FUND for the year ended September 30, 1905 REVENUE Water and Sewer Department: Water and sewer service Inspection and tap connection fees Water and sewer service penalties and interest Interest earned Miscellaneous Total water and sewer revenue Fire Department: Service contracts Ad valorem property taxes Ad valorem property tax penalties and interest lnterest earned Miscellaneous Total fire department revenue Operations: Water and sewer service Ad valorem property taxes Ad valorem property tax penalties and interest Settlement lnterest earned Miscellaneous Total operations revenue Total revenue Variance favorable - Budget Actual (unfavorable) Continued 5 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENTS OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (BUDGET AND ACTUAL) - GENERAL FUND for the year ended September 30, 1995 EXPENDITURES Water and Sewer Department: Salaries, wages and employee benefits Engineering Operational costs: Consumable supplies Rentllease equipment Bad debt Regulatory fees Water meters Lab analysis Garbage service Miscellaneous Water purchases Utilities and telephone Maintenance and repairs Capital outlay Total water and sewer department Administrative Department: Salaries, wages and employee benefits Professional fees: Legal Engineering Accounting and auditing Printing and office supplies Insurance and bonds Other: Contract labor Travel and seminars Miscellaneous Utilities and telephone Maintenance and repairs Capital outlays Total administrative Total water and sewer expenditures Variance favorable - Budget Actual (unfavorable) Continued .,!!;:-L 8% p*; L+$L ,? " " u.. *-, cs %,.," 11 ; 2 ;?isi 2- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENTS OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (BUDGET AND ACTUAL) - GENERAL FUND for the year ended September 30,1995 Fire Department: Salaries, wages and employee benefits Professional fees: Accounting and auditing Tax administration services Printing and office supplies lnsurance and bonds Rent / lease equipment Other Utilities and telephone Maintenance and repairs Debt and interest payments Capital outlays Budget Actual Variance favorable - (unfavorable) Total fire department expenditures 188,555 193,874 (5,319) 0 perations: Professional fees: Legal Engineering Accounting and auditing Tax administration services Directors' fees Printing and office supplies lnsurance and bonds Other Total operations expenditures 30,175 42,657 (1 2,482) Total expenditures 1,689,227 1,633,095 56,132 Excess revenue over expenditures $161,948 260,476 998.528 Fund baiances, beginning of year, as restated 960,168 Fund balances, end of year $1,220,644 TROPHY CLUB MUNICIP-AL UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENTS September 30, 1995 1. Summarv of sisnificant accountins policies A. The reportina entity - Trophy Club Municipal Utility District No. 1's (the District) 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 benefit of the District and Trophy Club Municipal Utility District No. I1 (MUD 11) customers. The proportionate allocation of costs and related beneficial usage rights in the major assets is estimated as follows: Water plant and wells Twenty one (21) inch water line Elevated tank Original treatment plant and land First expanded treatment plant Second expanded treatment plant Administration building The District MUD I1 Future percent percent (A) Develoument 40.91 27.14 31.95 60.00 40.00 00.00 43.99 56.01 00.00 67.14 32.86 00.00 67.14 32.86 00.00 92.00 8.00 00.00 23.38 0.00 (B) 76.62 (A) MUD I1 has not paid for its full shares. (B) MUD I1 does not acknowledge any portion of the cost of the administration building as being 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 I1 has the option to review their budget. The agreement as amended provides that any net revenue from operations flows to the Master District. Agreements exist between the District and Mud I1 that compensate the District for water and sewer TROPHY CLUB MUNICIP.K, UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENTS September 30, 1995 1. Summarv of siqnificant accountinq policies - continued 8. Master District - continued plant capacity and out of district sales as approved and required by Texas Natural Resources Conservation Commission (TNRCC) . Based upon this arrangement, all financial transactions relating to water and sewer operations are included in the financial statements of the District in the Water and Sewer Account, which is part of the General Fund. A summary of the Water and Sewer Account financial statements for the year ended September 30, 1995 is as follows: Total assets Total liabilities Total equity Total revenue $1,509,118 Total expenditures 1,396,564 Excess revenue over expenditures 112,554 Plus capital expenditures 127,268 Net revenue before capital expenditures $ 239.822 C. Fund presentation - This financial report utilizes governmental fund types rather than an enterprise fund. D. Fund accountinq - The District has established separate governmental fund types to account for transactions in compliance with requirements of the 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 or 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 qroups General ~ixed Assets - To account for the property TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENTS September 30, 1995 1. Summarv of siqnificant accountinq policies - continued Account Groups - continued and equipment of the District. General Lonq-term Debt - To account for the unmatured principal of outstanding bonds. Totals columns - Totals columns are captioned "memo only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation or combination. Interfund eliminations have not been made in the aggregation of this data. Totals 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 or account group has not been presented. E. Basis of accountinq - Basis of accounting refers to when revenue and expenditures are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurements made, regardless of the measurement focus applied. Governmental funds are accounted for using the modified accrual basis of accounting. Revenue is recognized when it becomes measurable and available as a net current asset. Ad valorem property taxes are recorded as revenue when received or expected to be received within sixty days of the end of the year. Penalties and interest on property taxes and miscellaneous revenue are recorded when received, as they are generally not measurable until 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 to be both measurable and available. Expenditures are generally recognized under the modified accrual basis of accounting when the related liability is incurred. An exception to this rule includes principal and interest on general long-term debt which are recognized in the period in which they are due. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I MOTES TO GENERAL-PURPOSE FINANCI-IL STATEMETJTS September 30, 1995 1. Sunmarv of sionificant accountina policies - continued E. Basis of accountinq - continued Generally, only current assets and current liabilities are included on a governmental fund's balance sheet. Fund balance (net current assets) is considered a measure of available spendable resources. Governmental fund operating statements present increases (revenue and other financing sources) and-decreases (expenditures and other financing uses) innet current assets. Accordingly, they present a smmary of sources and uses of available spendable resources during a period. Fixed assets used in governmental fund type operations 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. General fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated assets are valued at their estimated fair values on the dates donated. Acquisitions, renewals and betterments of general fixed 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 in the General Fund. Long-term assets and liabilities are generally excluded from governmsntrl funds. Since they do not affect net current assets, long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as assets and liabilities in the General Fixed Assets and General Long-Term Debt Account Groups. General Fixed Assets and General Long-Term Debt Account Groups are not funds. They are concerned with the measurement of financial position and not with the measurement of revenue in excess of expenditures. F. Budqets and budqetarv accountinq - The District adheres to the following procedures in establishing the budgetary data reflected in the financial statements: 1. The Board of Directors adopt an annual budget for the TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENTS September 30, 1995 1. Summary of sisnificant accountins policies - continued F. Budsets and budsetarv accountinq - continued General Fund on the modified accrual basis. 2. The Board of Directors approve budget appropriations. Any revisions that alter the total appropriations of the General Fund must be approved by the Board of Directors. The level of budgetary responsibility is by total appropriations of the General Fund. 3. Unused appropriations of the budgeted fund lapse at the end of each fiscal year. 4. No significant amendments to the budget occurred during the year. G. Cash and cash equivalents - The District maintains a separate bank account for each fund. Except for bond related transactions, the District conducts all of its banking and investment transactions with a depository bank or TexPool Investments. In accordance with its policy, the District had no investments during the year other than interest bearing bank accounts and TexPool Investments. TexPool is duly chartered and administered by the Texas State Treasurer's office, and the portfolio typically 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. At year end, the carrying amount of the District's deposits was $1,386,824, and its total bank balance was $1,443,484. Of the bank balance, $100,000 was covered by federal depository insurance, and $306,157 was covered by collateral in the District's name held by the District's agent banks, which are different fromthe District's depository banks. The remaining $1,037,327 was held in TexPool Investments. The District does not carry any bank balance over and above the insured and secured amounts. H, Orqanizational costs - The District, in conformance with requirements of the Texas Natural Resources Conservation Commission (TNRCC), capitalized costs incurred in the creation of the District. The TNRCC 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 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENTS September 30, 1995 1. Summarv of accountins policies - continued construction and acceptance or use of the first revenue producing facility has occurred. I. Capitalized interest - The District capitalizes net interest costs as part of the cost of constructing various water and sewer projects. There was no interest capitalized for the year ended September 30, 1995. J. Revenue recoqnition - 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 1 of the following year. The District receives most of its payments in December. The District's current tax rate is $.3000 ($0.0667 for operations, which includes .05667 for the fire department, and $0.2333 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 the levy of up to $.25 per $100 valuation for the operations and maintenance of the District. K. Restricted assets - Restricted cash represents amounts deposited into an account set aside for refund of customer water deposits. 2. Creation of district - The District was created by an order of the TNRCC (formerly the Texas Water Commission) on March 4, 1955, 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. Prior ueriod adiustments - The District has restated its previously issued general-purpose financial statements to reflect adjustments related to an invalid receivable and overstated payable, respectively. This results in reducing fund balance-General Fund by $39,002 and increasing fund balance-General Fund by $14,835 for the years ended 1992 and 1994, respectively. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENT SEPTEMBER 30, 1995 4. General Fixed Assets - A summary of general fixed assets is as follows: Balance Balance 9-30-94 Additions Disposals 9-30-95 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 10,991 0 0 10,991 Filing fees, licenses, legal notices and permits 2,640 0 0 2.640 Legal fees 13,725 0 0 13,725 Director fees and per diem 400 0 0 400 Other costs 361 0 0 361 District Organizational Costs - Construction Period: Legal fees 103,492 0 0 103,492 Financial consulting fees 161,513 0 0 161,513 Operating 19,461 0 0 19,461 Bond interest 206,017 0 0 206,017 Amortized bond discount 4,088 0 0 4,088 Total District Organizational Costs 522,688 0 0 522,688 Total Physical Facilities and Organizational Costs $17,227,039 $142.287 $19,186 $17,350,140 Amounts Provided By: General Fund: Contributions by developers $6,850,741 $0 $0 $6,850,741 Contributions by general fund 1,638,692 142,287 19,186 1,761,793 Debt Service Fund : Contributions by debt service fund 242,343 0 0 242,343 Capital Projects Fund: Bond issues 8,214,918 0 0 8,214,918 Contibutions by capital projects fund 280,345 0 0 280,345 Total Amounts Provided 517,227,039 $142,287 $19,186 $17,350,140 - TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENTS September 30, 1995 5. General Lonq-term Debt - Changes to general long-term debt for the year ended September 30, 1995 are as follows: Caoital Bonded - Leases Debt Balance, beginning of year $10,249 $8,266,000 Principal payments ( 5.264) ( 368,000) Balance, end of year $ 4,985 $7,898.000 6. Bonded debt - At September 30, 1995, the District's long-term bonded debt consisted of: Due during fiscal General year ending Due Long-Term 1996 Thereafter Debt Water works and sewer system combination unlimited tax and revenue bonds, Series 1987 with interest rates ranging from 6.8% to 7.2%, due through 1997 $230,000 $ 245,000 $ 475,000 Water works and sewer system combination unlimited tax and revenue bond Series 1991 with interest rates ranging from 5.5% to 7.5%, due through 2011 140,000 3,740,000 3,880,000 Water works and sewer system combination unlimited tax and revenue bond Series 1993 with interest rates ranging from 4.0% to 5.9%, due through 2007 Total uaid bv Debt Public property finance contractual obligations 1989 with interest rates ranging from 7.6% to 9.0%, due through 1999, paid by General Fund 14,000 49,000 63,000 Total TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENTS September 30, 1995 6. Bonded debt (continued) A schedule of bond principal and interest maturities is as follows: 1996 1997 1998 1999 2000 Thereafter Total Interest Total Tax and revenue bonds authorized and unissued as of September 30, 1995, amounted to $1,229,217. The bonds are payable from the proceeds of ad valorem taxes 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 revenue to be received from the operation of the District's waterworks and sanitary sewer system. The provisions 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 year ended September 30, 1995. 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 Debc Service Fund, were used to extinguish three existing outstanding bond issues. Funds were deposited in an irrevocable trust and are adequate to fund principal and interest payments until the TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENTS September 30, 1995 6. Bonded debt - (continued) remaining bonds are callable. During the year ended 1995, defeased bonds totaling $1,610,000 were retired. The trust account assets and the liabilities for the defeased bonds were not included in the District's financial statements. At September 30, 1995, there were no defeased bonds outstanding on this refunding. During 1993, the District issued $3,500,000 in General Obligation Bonds to advance refund $3,805,000 of $4,695,000 outstanding 1987 Series bonds. The net proceeds of $3,367,123 plus an additional $900,000 of District General 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 bonds. The trust account assets and the liabilities for the defeased bonds are not included in the District's financial statements. At September 30, 1995 $3,805,000 in bonds outstanding are considered defeased. Capital lease payable - 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. The future minimum lease payment in 1996 is $5,439, of which $454 represents interest. 7. Commitments - The District follows the guidelines of the TNRCC in its dealings with developers. 8. 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 Investments. 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 of service. The District contribution rate was adopted by the governing board of the District at five percent 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. TROPHY CLUB MLJNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FINANCIAL STATEMENTS September 30, 1995 8. Retirement Plan - (continued) The District's total payroll, covered payroll and contributions for the year ended September 30, 1995 were as follows: District's total payroll s412.492 District's covered payroll $348,667 District's contribution required and paid $ 17,433 9. Risk Manaqement - 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, 1995. Post-Employment Health Care Benefits - The District 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 tenth (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, 1995. The District does not provide any other post-employment benefits other than pension benefits. 11. Settlement - During the fiscal year ended 1995, the District received a lump sum distribution of $54,901 from the bankruptcy estate of a previous developer in settlement of various claims between the District and the bankrupt developer. The Board of Directors, in its board meeting of December 14, 1995, resolved to recognize these settlement proceeds as part of the operations and maintenance of the General Fund. As part of this settlement, the District wrote off ad valorem property tax receivables of the bankrupt developer. SUPPLEMENTARY SCHEDULES The following supplementary schedules are included to satisfy reporting requirements of the Texas Natural Resources Conservation Commission. TROPHY CLUB MLJNICIPAL UTILITY DISTRICT NO. I SUPPLEMENTARY SCHEDULES INCLUDED WITHIN THIS REPORT for the year ended September 30, 1995 (D.) Notes required by the Water District accounting manual These are incorporated into the Notes presented as part of the General-Purpose Financial Statements. (E.) Schedule of services and rates (F.) Schedule of 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 (J.) General long-term debt service requirements - by year (K.) Analysis of changes in general long-term debt (L.) Comparative schedule of revenues and expenditures - five years (M.) Insurance coverage (N.) Board members, key administrative personnel and consultants (0.) Combining schedules (P.) Individual General Fund account financial statements (Q.) Certificate of Board of Directors TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (E) SCHEDULE OF SERVICES AND RATES Year ended September 30, 1995 1. Services provided by the District: X Retail Water - - X Wholesale Water Drainage X Retail Wastewater 2 Wholesale Wastewater - - Irrigation Parks/Recreation 2 Fire Protection - Security - Solid Waste/ - Flood Control - Roads Garbage X Participates in joint venture, regional system and/or waste - water service (other than emergency interconnect) - Other (specify) : 2. Retail rates (based on 518" meter) - Retail rates not Most prevalent type of meter (if applicable not 5/811) Adminis- Minimum Rate trative Usage Flat per 1,000 Usage levels Fee (in qal) Rate sallons (in sallons) Water $9.00 o No $0.47 0-3,000 0 No $1.92 3,000-20,000 0 No $2. 18 Over 20,000 Wastewater $9.00 0 No $0.47 0-3,000 0 NO $1.79 3,001-12,OOOX Golf course irrigation 0 Yes/$1,000 1-300,000 0 No $2.18 Over 300,000 Surcharge: Certain contracts allow for a demand charge during peak usage periods. District employs winter averaging for wastewater usage? Yes - No Total water and sewer charges per 10,000 gallons usage: First 10,000 gallons used (including administrative fee) $46.79 Next 10,000 gallons used 22.78 Next 10,000 gallons used and subsequent 21.80 * Maximum residential wastewater charge is for 12,000 gallons or $26.52. 3. Standby Fees: Does the District assess standby fees? Yes - No - If yes, specify amount and basis of the assessment. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (E) SCHEDULE OF SERVICES AND RATES Year ended September 30, 1995 3. Standby Fees - continued $6.00 per lot $0.00 per acre - Other or non- (Check one) uniform rates - Per year - Per quarter - X Per month Percentage allocated to: General Fund 100% Debt Service Fund 0 % Have standby fees been levied in accordance with Water Code Section 50.056, thereby constituting a lien on property? Yes - No X** ** Standby fees are levied by the District and constitute a lien under recorded deed restrictions or covenants pursuant to Section 293.150 of Title 30 of Texas Administrative Code and do not require approval of the TNRCC. 4. Total water consumption (rounded to the nearest 1,000) during the fiscal year: Gallons pumped into system: Gallons billed to customers: 5. Number of retail water and/or wastewater connections within the District as of the fiscal year end. Active Inactive Connections Connections Single Family 975 Multi-Family 55 Commercial* 5 6 Other - recreational centers. aovernment . - & VFD* Total Connections 0 0 0 * In prior years, connections for the Town of Trophy Club were included with Commercial, 14 connections for the year ended September 30, 1995 were included with other. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (E) SCHEDULE OF SERVICES AND RATES Year ended September 30, 1995 6. Anticipated sources of funds to be used for debt service payments in the District's following fiscal year: a. Debt Service Tax Receipts b. Surplus Construction Funds c. Water and/or Wastewater Revenue d. Standby Fees e. Beginning Debt Service Fund Balances f. Interest Revenues g. Other Total anticipated funds to be used Amount $600,141 0 0 0 3,414 38,525 235,912 $877,992 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. (F) SCHEDULE OF GENERAL FUND EXPENDITURES for the year ended September 30, 1995 Current: Personnel Professional fees: Accounting and auditing Engineering Legal Contract services: Tax administration fee Administrative expenditures: Directors' fees Office supplies Insurance and bonds Other Firefighting Purchased services for resale: Bulk water and sewer Utilities and tele~hone Capital outlay Total expenditures Water and Fire Sewer Department Operations Total Number of persons employed by the District: Full-time: 16 Part-time: 1 TROPHY CLUB MUNICIPALUTILITY DISTRICT NO. I (G) SCHEDULE OF TEMPORARY INVESTMENTS - ALL FUNDS for the year ended September 30, 1995 Identification Interest Maturity Balance Accrued Interest Number Rate Date End of Year End of Year General Fund Money Market Account - TexPool 06133-9296 5.77% Demand $1 73,120 Paid Daily Money Market Account - TexPool 06133-1200 5.77% Demand $50,535 Paid Daily Money Market Account - TexPool 06133-2489 5.77% Demand $557,132 Paid Daily Debt Service Fund Money Market Account - TexPool 06133-3333 5.77% Demand $256,540 Paid Daily Total All Funds $1,037,327 $0 TROPHY CLUB MUNICIPAL UTIUN DISTRICT NO. I (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEAR for the year ended September 30, 1995 Series 1991 Due During Fiscal Year Ending Interest Due Principal Due March 1, - September 1, September 1, Total $398,790 398,290 397,040 395,040 394,670 398,510 401,225 402,785 403,160 402,320 405,235 401,535 401,525 404,825 406,375 406,175 $6,417,500 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEAR for the year ended September 30, 1995 Series 1993 Due During Fiscal Year Ending 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Interest Due Principal Due March 1, September 1, September 1, Total $1 97,105 196,705 461,280 463,905 460,565 460,565 459,185 461,365 457,115 461,675 459,445 460,665 $4,999,575 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEAR for the year ended September 30, 1995 Annual Requirements Due During Fiscal Year Ending Total Total Principal Due Interest Due Total $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 $1 2,016,816 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (K) ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT for the year ended September 30, 1995 Series 1987 Series 1989 Series 1991 Series 1993 Total Interest rate 7.0 - 7.2% 7.6 - 9.0% 5.5 - 7.5% 3.25 - 5.9% Date interest payable Mar 1 & Sep 1 Jan 1 & Jul 1 Mar 1 & Sep 1 Mar 1 81 Sep 1 Maturity date Sep 1 to 1997 Jan 1 to 1999 Sep 1 to 201 1 Sep 1 to 2007 Bonds outstanding at beginning of year $690,000 $76,000 $4,010,000 $3,490,000 $8,266,000 Bonds sold during current year 0 0 0 0 0 Retirements of principal (215,000) (13,000) (1 30,000) (1 0,000) (368,0001 Bonds outstanding at end of year $475,000 $63,000 $3,880,000 $3,480,000 $7,898,000 Retirements of interest Paying agent's name and address: Series 1987, Series 1989, Series 1991 and Series 1993: Ameritrust Texas, N.A., P.O. Box 2320, Dallas, Texas 7521 1 Bond Authority: Tax Bonds Other Bonds Refunding Bonds Amount authorized by voters $1 2,344,217 $0 $0 Amount issued 1 1,115,000 Remaining to be issued $1,229,217 $0 $0 REVENUE Water and sewer se~ce Inspection and tap connection fees Ad valorem property taxes Ad valorem property tax and water and sewer penalties and interest Settlement Interest earned Miscellaneous and other Total revenue EXPENDKURES TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (L) COMPARATIVE SCHEDULES OF REVENUE AND EXPENDrrURES - GENERAL FUND forthe five years ended September 30,1995, 1994, 1993,1992 and 1991 Amounts 1995 1994 1993 1992 1991 -- -- Purchased water and sewer services 362,107 408,372 438,076 411,456 368,700 Salaries, wages and employee benefits 506,151 484,450 501,669 461,294 436,485 Professional fees 72,553 90,749 73,860 79,990 52,142 Recurring operating expenditures 584,365 550,933 549,410 522,699 555,043 Capital outlay 107,919 78,917 144,129 47,166 64,531 Tranfer to interest and sinking fund 0 0 992,883 0 4,796 Miscellaneous - 0 4,685 5,595 1,413 0 Total expenditures 1,633,095 1,618,106 2,705,622 1,524,018 1,481,697 Excess of revenue over expenditures $260,476 3136,763 -1 $977,119 $340,g Percent of total revenue 1995 1994 1993 1992 1991 -- -- - ~.~ REVENUE Ad valorem property taxes Ad valorem property tax penalties and interest Interest earned Miscellaneous and other Other financing sources Total revenue EXPENDKURES Principal retirement lnterest and fiscal charges Payment to refunding bond agent Total expenditures Excess (deficiency) of revenue over expenditures TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (L) COMPARATIVE SCHEDULES OF REVENUE AND EXPENDKURES - DEBT SERVICE FUND forthe five years ended September 30,1995, 1994, 1993, 1992 and 1991 Amounts 1995 1994 1993 1992 1991 Percent of total revenue 1995 1994 1993 1992 1991 -- - TROPHY CLUB MUNICIP-AL UTILITY DISTRICT NO. I (M) INSURANCE COVERAGE SEPTEHBER 30, 1995 Type of Policy corporation clause Amount of stock/ CO- Type of coveraqe coverage Name mutual insurance Employee honesty, Hartford etc. : Company Stock None Tax assessor- collector $ 10,000 Public official - (each director) 50,000 Bookkeeper bond 10,000 Director and office Colonial liability 5,000,000 Insurance Co. Stock None Building and American contents and Protection Stock None water system 5,318,000 Liability: General: Mid-Continent Casualty Stock None Bodily injury 1,000, OOO/ 2,000,000 Environmental 300,000 Property damage 1,000,000 Automotive Mid-Continent (non-owned) : Casualty Stock None Bodily injury 1,000,000 Property damage 1,000,000 Contractor's equipment Umbrella 40,500 Mid-Continent Casualty Stock None 4,000,000 Mid-Continent Stock None Casualty 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) 3 6 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (M) INSURANCE COVERAGE SEPTEMBER 30, 1995 (continued) Amount of Tvoe of coveraqe coveraqe Name Workman' s Compensation TML Type of Policy corporation clause stock/ CO- mutual insurance Mutual None Fire Department : Errors and omissions Cigna liability 1,000,000 Insurance Co. Stock None Excess Errors and Omissions Cigna liability 1,000,000 Insurance Co. Stock None Umbrella Cigna liability 3,000,000 Insurance Co. Stock None Liability: General : Bodily injury 1,000,000/ Cigna Stock None 2,000,000 Insurance Co. Property damage 1,000,000 Automotive (non-owned) : Bodily injury 1,000,000 Cigna Stock None Property damage 1,000,000 Insurance Co. 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. 3 7 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (N) BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS September 30, 1995 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 Title Resident and expires or reimbursement at of Name and address date hired 09-30-95 vear-end District? Board members Constance S. White 119 Trophy Club Drive Trophy Club, TX 76262 5/94 - 5/98 $ 650 President Yes T .A. Neidenberger 1033 Sunset Drive Trophy Club, TX Vice 76262 5/92 - 5/96 $ 600 President Yes John V. Peters 402 Hilltop Court Trophy Club, TX 76262 1/92 - 5/96 $ 0 Director Yes R. Peter Reincke, Jr. 1111 Wilshire Trophy Club, TX 76262 5/94 - 5/98 $ 600 Director Yes Susan H. McCabe 1136 Sunset Drive Trophy Club, TX Secretary/ 76262 5/94 - 5/98 $ 550 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, TX District 76262 04/15/86* $65,064 Manager Yes * Assumed responsibility of District Manager on 10/15/89 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (N) BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS September 30, 1995 (Continued) Term of Fees office elected and expense Title Resident and expires or reimbursement at o f Name and address date hired 09-30-95 vear-end District? Key administrative personnel - continued Cathy Morgas Assistant 2158 Wedgwood Drive District Grapevine, TX 76051 02/01/91 $41,585 Manager No Consultants Denton County Appraisal District P.O. Box 2816 Denton, TX 76202 04/01/81 James L. Buxton, P.C. 5017 S. Hulen, Ste. 4 Fort Worth, TX 76132 1983 Carter & Burgess 1100 Macon Street Fort Worth, TX 76102 1983 Michener, Larimore, Swindle, L.L.P. 3500 City Center Tower I1 Fort Worth, TX 76102 02/01/93 Booth and Dillon, P.C. 2020 1st City Centre 816 congress Avenue Austin, Texas 78701 1993 Appraiser Certified Public Accountant No Consulting Engineer No Legal Counsel Legal Counsel TROPHY CLUB MUI\IICIPALUTILITY DISTRICT NO. I (0) COMBINING BALANCE SHEET September 30, 1995 Water and Fire Combining Combined ASSETS Sewer Department Operations Entries Total Current assets: Cash and cash equivalents $423,337 $52,104 $560,676 $0 $1,036,117 Restricted cash 89,032 0 0 0 89,032 Accounts receivable, net 21 6,438 0 28,754 0 245,192 Prepaid expenses 9,765 0 0 0 9,765 Ad valorem property tax receivable 0 1,953 880 0 2,833 lnterfund receivable 0 0 85,028 ($85,028) 0 - Total assets $738.572 $54,057 $675,338 ($85,028) $1,382,939 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable $69,847 $28 $480 0 70,355 Refundable deposits 89,107 0 0 0 89,107 Deferred income 0 1,953 880 0 2,833 Interfund payable 55,025 30,003 0 ($85,028) 0 Total current liabilities 213,979 31,984 1,360 (85,028) 162,295 Fund balance 524,593 22,073 673,978 0 1,220,644 Total liabilities and fund equity $738,572 $54,057 $675,338 ($85,028) $1,382,939 Note: Combining entries eliminate interiund receivables and payables arising from out of district water sales and payment for the fire department building. TROPHY CLUB MUNICIPALUTILITY DISTRICT NO. I (P) COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended September 30,1995 Water and Fire Combining Combined Sewer Department Operations Entries - Totals REVENUE Water and sewer service Inspection and tap connection fees Service contracts Water and sewer service penalties and interest Ad valorem property taxes Ad valorem property tax penalties and interest Settlement Interest earned Miscellaneous Total revenue EXPENDITURES Water and Sewer Department: Salaries, wages and employee benefits Engineering Operational costs: Consumable supplies Rentllease equipment Bad debt Regulatory fees Water meters Lab analysis Garbage service Miscellaneous Water purchases Utilities and telephone Maintenance and repairs Capital outlay - Total water and sewer department 1,073,089 Continued 41 TROPHY CLUB MUNICIPAL UTlLlN DISTRICT NO. I (H) ANALYSIS OF TAXES LEVIED AND RECEIVABLE for the year ended September 30.1995 General Fund Debt Fire Dept. Operations Service Total Taxes receivable, beginning of year $9,348 54,929 $53,608 567,885 1994 tax roll Total to be accounted for Less collections and write-offs: Current year (1 54,160) (27,189) (634.31 2) (81 5,661) Prior years (8.061) (4,166) (45,103) (57,330) Taxes receivable, end of year $1,953 $880 $1 1,248 $1 4.081 Taxes receivable by year 1984 and prior 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Taxes receivable, end of year Property valuations (in 000's): Five years ended September 30,1995 1994 1993 1992 1991 1990 Land Improvements Personal arooertv .., , ~ - . ~- -.,-. - Exemptions (2,690) (2,319) (1,844) (1 7) (1 41 Total property valuations $273,062 5339,448 $339,757 $353,104 $342.260 Tax rate per $1 00 valuation: Fire Department 0.0567 0.0450 0.0450 0.0450 0.0450 Operations 0.0100 0.01 00 0.01 00 0.01 00 0.0350 Debt Sewice Total Tax rolls (total) Percent of current taxes collected to current taxes levied: 99.6% Percent of current and delinquent taxes collected to current and delinquent taxes outstanding at beginning of tax year: 98.4% TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (H) ANALYSIS OF TAXES LEVIED AND RECEIVABLE for the year ended September 30, 1995 (Continued) Tax rate for any other special district which (a) encompass less than a county, (b) provide water, wastewater collection, drainage or roads to property in the district and (c) tax property in the district. Name of Special Districts Service Provided Tax Rate None L L Total rate (s) of special district (s) L Tax rate for all overlapping jurisdictions. Include any taxing entities which overlap 10% or more of the District. Denton Tarrant Countv Countv a. County DentonITarrant $ 0.27838 $ 0.57302 b. City Town of Trophy Club $ 0.42610 $ c. School District Northwest ISDICarroll ISD $ 1.58800 $ 1.62950 d. Special Districts not included above: None $$ e. Total Special District $$ f. Total District Tax Rate $ 0.30000 $ 0.30000 g. Total Overlapping Tax Rate $ 2.59248 $ 2.50252 TROPHY CLUE MUNICIPAL UTILITY DISTRICT NO. I (I) ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS AND ORGANIZATIONAL COSTS for the year ended September 30, 1995 Balance Balance 9-30-94 Additions Disposals 9-30-95 Physical Facilities: Land S248,093 $0 $0 $248.093 Buildings 227,978 0 0 227,978 Water system 5,559,568 76,000 0 5,635,568 Sanitary wastewater system 7,210,032 5,424 0 7,215,456 Drainage system 1,996,730 0 0 1,996,730 Machinery and equipment 356,544 25,694 0 382,238 Autos and trucks 301,985 25,479 19,186 308,278 Furniture and fixtures 40,097 9,690 0 49,787 Engineering fees 763,324 0 0 763,324 Total Physical Facilities 16,704,351 142,287 19,186 16,827,452 District Organizational Costs - Creation Period: Engineering and surveys 10,991 0 0 10,991 Filing fees, licenses, legal notices and permits 2,640 0 0 2,640 Legal fees 13,725 0 0 13,725 Director fees and per diem 400 0 0 400 Other costs 361 0 0 361 District Organizational Costs - Construction Period: Legal fees 103,492 0 0 103,492 Financial consulting fees 161,513 0 0 161,513 Operating 19,461 0 0 19,461 Bond interest 206,017 0 0 206,017 Amortized bond discount 4,088 0 0 4,088 Total District Organizational Costs 522,688 0 0 522.688 Total Physical Facilities and Organizational Costs $17,227,039 $142,287 $1 9,186 $17,350,140 Amounts Provided By: General Fund: Contributions by developers $6,850,741 $0 $0 $6,850,741 Contributions by general fund 7,638,692 142,287 19,186 1,761,793 Debt Service Fund : Contributions by debt service fund 242,343 0 0 242,343 Capital Projects Fund: Bond issues 8,214,918 0 0 8,214,918 Contibutions by capital projects fund 280,345 0 0 280,345 Total Amounts Provided $17,227,039 $142.287 $19,186 517,350,140 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEAR for the year ended Septmeber 30,1995 Series 1987 Due During Interest Due Fiscal Year Principal Due March 1, Ending September 1, September 1, Total Series 1988 Due During Interest Due Fiscal Year Principal Due January 1, Ending January 1, July 1, Total 1996 $1 4,000 $4,357 $1 8,357 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE for the year ended September 30,1995 Water and Fire Combining Combined - Sewer Department Operations Entries Totals EXPENDITURES (Continued) Administrative Department: Salaries, wages and employee benefits Professional fees: Legal Engineering Accounting and auditing Tax administration services Directors' fees Printing and office supplies Insurance and bonds Other: Contract labor Travel and seminars Miscellaneous Utilities and telephone Maintenance and repairs Debt payments Interest payments Capital outlays - Total administrative 323,475 193,874 42,656 (4,035) 555,970 Total expenditures 1,396,564 193,874 42,656 (4,035) 1,629,059 Excess of revenue over expenditures $1 12,554 ($9,480) $157,402 - $0 $260,476 Note: Combining entries eliminate interfund interest income and interest expense. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) BALANCE SHEET - WATER AND SEWER ONLY September 30, 1995 ASSETS Current assets: Cash and cash equivalents Restricted cash Accounts receivable, net Prepaid expenses Total current assets LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable Refundable deposits Interfund payable Total current liabilities Fund balance Total liabilities and fund equity Note: Funds are administered by MUD 1 as "Master District" per contract, as amended. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) STATEMENTS OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE WATER AND SEWER (BUDGET AND ACTUAL) for the year ended September 30, 1995 Variance favorable - Budget Actual (unfavorable) REVENUE Water and sewer service $1,503,812 $1,381,201 ($1 22,611) Inspection and tap connection fees 48,550 73,869 25,319 Water and sewer service penalties and interest 29,000 30,406 1,406 Interest earned 3,000 11,035 8,035 Miscellaneous 12,700 12,607 (93) Total revenue 1,597,062 1,509,118 (87,944) EXPENDITURES Water and Sewer Department: Salaries, wages and employee benefits 304,702 Engineering 2,000 Operational costs: Consumable supplies 47,700 Rent/lease equipment 1,450 Bad debt 0 Regulatory fees 16,090 Water meters 17,000 Lab analysis 21,300 Garbage service 11,200 Miscellaneous 5,650 Water purchases 414,000 Utilities and telephone 177,000 Maintenance and repairs 35,500 Capital outlay 1 12,000 Total water and sewer department 1,165,592 Continued 44 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) STATEMENTS OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE WATER AND SEWER (BUDGET AND ACTUAL) for the year ended September 30, 1995 Variance favorable - Budget Actual (unfavorable) EXPENDITURES (Continued) Administrative Department: Salaries, wages and employee benefits 170,605 Professional fees: Legal 9,500 Engineering 0 Accounting and auditing 4,750 Printing and office supplies 12,400 Insurance and bonds 35,000 Other: Contract labor 6,000 Travel and seminars 7,000 Miscellaneous 5,750 Utilities and telephone 22,100 Maintenance and repairs 21,750 Capital outlays 10,100 Total administrative 304,955 Total expenditures 1,470,547 bcess of revenue over expenditures $126,515 Fund balance, beginning of year lnieriund transfer Fund balance, ~nd of year TROPHY CLUB blUNlClPAL UTILITY DISTRICT NO. I (P) BALANCE SHEET - FIRE DEPARTMENT ONLY September 30, 1905 ASSETS Current assets: Cash and cash equivalents Ad valorem property taxes receivable Total assets LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable Deferred income lnterfund payable Total current liabilities Fund balance Total liabilities and fund equity TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) STATEMENTS OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE FIRE DEPARTMENT (BUDGET AND ACTUAL) for the year ended September 30, 1995 REVENUE Service contracts Ad valorem property taxes Ad valorem property tax penalties and interest lnterest earned Miscellaneous Total revenue EXPENDITURES Administrative: Salaries, wages and employee benefits Accounting and auditing Tax administration sewices Office supplies Insurance and bonds Rent / lease equipment Firefighting: Debt payments lnterest payments School and training Uniforms Fuel and supplies Remote communications Miscellaneous Utilities and telephone Maintenance and repairs Capital outlays Variance favorable - Budget Actual (unfavorable) - Total expenditures 188,555 Excess of revenue over expenditures Fund balance, beginning of year, as restated Fund balance, end of year TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) BALANCE SHEET - MUD 1 0 & 1\11 ONLY September 30, 1995 ASSETS Current assets: Cash and cash equivalents Accounts receivable Ad valorem property tax receivable Interfund receivable Total current assets LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable Deferred income Total current liabilities Fund balance Total liabilities and fund equity Note: Assets owned by MUD 1 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) STATEMENTS OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE MUD 1 0 & M ONLY (BUDGET AND ACTUAL) for the year ended September 30, 1995 Variance favorable - (unfavorable) REVENUE Budget Actual Out of district water and sewer service $0 Ad valorem property taxes 26,288 Ad valorem property tax penalties and interest 400 Settlement 0 Interest earned 26,035 Miscellaneous 14,835 Total revenue 67,558 EXPENDITURES Administrative: Legal Engineering Accounting and auditing Tax administration services Directors' fees Office supplies Insurance and bonds Other Total expenditures 30,175 Excess of revenue over Fund balance, beginning of year, as restated Interfund transfer Fund balance, end of year TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (Q) CERTIFICATE OF THE BOARD OF DIRECTORS Year ended September 30, 1995 Trouhv Club Municiual Utilitv District No. I DentonfTarrant Name of Water District County We, the undersigned, do hereby certify that the audit report of the above- named Water District for the fiscal year ended September 30, 1995, was received by the Board of-Directors on the loth day of January, 1996, and was reviewed and (X) approved; ( ) disapproved at a meeting of the Board of Directors of the Water District on the loth day of January, 1996 . * ,44+ Pt .I.cw.er. Signature of Board Secretary Signature of~oard President