The URL can be used to link to this page

Home My WebLink AboutFY Ended September 30, 1996TROPHY CLUB MUNICIP?.L UTILITY DISTETCT NO. I GENERAL-PLRPOSE FINPXCI.ilZ, STATEMENTS APT3 SUPPLEMENT-U?Y SCHEDULES FOR T3E YEFR ENDED SEPTEMBER 30, 1996 with INDEPENDENT AUDITORS' REPORT TABLE OF CONTENTS General-Puroose ~inancial Siatements Combined balance sheets - all fund tlJpes and account groups Combined statements of revenue, expendi~ures and changes in fund balances - all governmental fund t~ypes Combined statements of revenue, expenditures and changes in fund balances (budget and actual) - General Fund Notes t.o general-purpose financial statements Sup~lementarv Schedules Supplementary schedules included within this report Schedule of services and rates Schedule of General Fund expenditures Schedule of temporary investments - all funds FLna1ys.i~ of tai:zs levied and receivable ~nalysis of changes in general fixed assets and organizational costs General 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 Management letter to Board of Directors Combining schedules Individual General Fund account financial statements MEMBERS: ilindnCOniNIJhl1~ of Ce,*fiedFubfk Acc0~'ntoob rero;sccfe~y at Cem~edPubflc .'~CcD~"lllO"~ SANFORD & BAUMEISTER, P.C. CERlFlED PUBUC ACCOUW.4,W 6300 RI~LEA PLACE, Sum 1111 Fom Worn, TEM 76116 TELEPHONE ($17) 377-1111 F.ACSI!.IILE ($1;) i37-8973 INDEPENDENT AUDITORS' REPORT Board of Directors Trophy Club ~unicipal Utility District No. I Trophy Club, Texas We have audited the accompanying general-purpose financial statements and the combining and individual fund and accounc group financial statements of Trophy Club Municipal Utility District No. I, as of and for the year ended September 30, 1996. 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, evideilce supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, rhe general-purpose financial statemenzs referred to above present fairly, in all material respects, the financial position of Trophy Club Municipal Utilicy District No. I as cf September 30, 1996, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. Also, in our opinion, the combining and individual fund and account group *. r~nancial statements referred to aboire present fairly, in all material respects, the financial position of each of the individual funds and account groups of Trophy Club Municipal Ucili~y DisKrict No. I as of September 30, 1996, 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 a prior period adjustment. Our audit was made for the purpose of forming an opinion on the general-purpose financial statemenis raken as a whole and on the combining and individual fund and account grou? 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 audicing procedures applied in the audit of the general-purpose, combining and individual fund and accoilnt 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. December 2, 1996 TROPHY CLUB MUNICIPAL UTILITY DISTliICI' NO. I COMBINED STATEMENTS OF REVENUE, EYPENDITURES AND CHtWIGES I?i FUND BAI-ANCE ALL GOVERNblENTtV. FUND TYPES for the year ended September 50, 1996 Govcrnruenhl Fund l'ypes Towls (memo i~dy) As restatcd, REVENUE General Debt Scnicc 1996 1995 Water, sewer and fie dept. service Inspection and tap connection fees Water and sewer xmce penalties and interest Ad valorem propcrt). taxes Ad valorem property hs penalties and interest Settlement Sale of waste\v;llcr connections Interest earned Miscellaneous - Totd revenue 2,318,680 654,751 2,977,Yil -- 2,627,074 EXPENDITURES Water and sewer senice Administrative Fire department Maintenance and operations Capital outlay Debt Serhce: Principal retirement Interest Fiscal cl~arges Total expei~di~ures Excess (deliciency) of revenue and financirlg sources over expenditures and other uses Fund balances, beginning of year as restated Fuiid b;~lance, end ofyear The accompanying notes are an integral part oi these iinancial statements TROPI-IY CLUB lvIUNICIPAL UTILITY DISTIIICTNO. I COhiBINED ST.4TEblENTS OF REVENUE, E.YPENDITURES AND CI-L4NGES IN FUND BALANCES (BUDGET AND ACTUAL) - GENERAL FUND for the year ended September 30, 1996 Water and Sewer Department: Water and sewer service Inspection and tap connection fees LVatcr and sewer service penalties and interest Interest earned lvliscellancous Total water andsewer revenue Fire Department: Service contracts Ad valorem property taxes Ad valorem property tax penalties and interest Interest earned Miscellaneous Tot11 fire department revenue Operations: Water and sewer senice Ad valorem property taxes Ad valorem property tax penalties and interest Sale of wastewater connections Interest earned bIiscellaneous Toull operations revenue Total revenue Variilnce f;l\,oi.lbie - Budrct Actual (unlut'or:~hlc) TROI'I-IY CLUB h1UNTClPAL UTILITY DDIS1-IIICI'NO. I COblBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALhVCES (BUDGET AND ACTUTUAL) - GENERAL FUND for he year ended Sfptemkr 30, 1996 Water and Sewer Department: Salaries, wages and employee benefits Engineering Operational costs: Consumable supplies Renflease equipment Regulatory fees Water meters Lab analysis Garbage service Miscelkaneous Water purchases Utilities and telephone Mantenance and repairs Capital outiay Total water andsewer department Administrative Department: Salaries, wages and employee benefits Professional fees: Legal Engineering Accounting and auditing I'rinting and office supplies Insurance and bonds Other: Contract labor Travel and seminars Misceilaneous Utilities and telephone Maintenance and repairs Gpital outlays Totil administrative Total water and sewer e.spenditures Continued 6 TROPI-IY CLUB MUNICIPAL UTILITY DISTRICTNO. I COMBINED STATEMENTS OF REVENUE, E,YPENDI?URES ,4ND CI-IXNGES IN FUND BALANCES (BUDGET AND ACTUtU) - GENERAL FUND for the year ended September 30, 1996 Fire Department: Salaries, wages and employce benefits Professional fees: Accounting and auditing 'Tax and adminis~ration services Printing and officesupplies Insurance and bonds Iient 1 lease equipment Other Utilities and telephone Maintenance and repairs Debt and interest payments Capital outlays Actual Total fire department expenditures 219,965 214576 5,389 Operations: Professional fees: Legal Enbjneering Accounting and auditing Tanadministration se~ces Directors' lees Printing and office supplies Insurance and bonds Other Total operations es~enditures 43,500 26,984 16,516 Excess revenue over e.xpenditures $41256 455,9S2 $414,726 Fund balances, beginning of year, as restated 1,249,999 Fund balances, end ofycnr S1,505,981 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENEFAL-PURPOSE FINAJJCIAL STATEMENTS September 30, 1995 1. Summarv of sianificanc accountica colicies A. The reuortinq entitv - Trophy Club Municipal Utility District -. No. 1's (the District) annual rlnancial report includes all funds and account groups which are used to report the Cistricr's financial position and activities. There are no - -= =-,ncies, - boards, commissions, or authorities which zre -. r~nancially accountable to the District. E. Plaster District - The District holds legal title to and o-,erates the central water supply system and the central isjaste disposal system as "Master District" for the benefit of the District and Trophy Club Municipal Utility District No. II (MUD 11) customers. The proportionate allocation of costs and related beneficial usage rights in the major assets is estimated as follows: The District MUD I1 Futiire percent uercent (A) Develo~ment (Ci Water plant and wells 40.91 27.14 31.95 Twency one (21) inch wacer line 60.00 40.00 00.00 Elevated tanlc 43.99 56.01 00.00 Original treatment plant and land 67.14 32.86 00.00 First expanded treatment plant 67.14 3 2 . 86 00 .OO Second expanded treatment plant 02.00 8.00 00.00 Administration building 23.38 0.00 (S) 76.62 (A) MUD I1 has not paid for its full shares. (9) I1 does not acknowledge any portion of the cost of the administration building as being their responsibility. (C) The developer's original intent was for five districts. 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 g TROPHY CLUS MUlJICIP.AL UTILITY DISTRICT NO. I NOTES TO GENEEU-PURPOSE FINANCIAL STATEMENTS Ssptember 30, 1996 1. Summarv of sionificant accountina nolicies - conrinued B. Master District - continued glant capaci~y and out of district sales as approved and required by Texas Natural Resources Conserva~ion Commission (TNRCC) . Based upon this arrangement, all financizl transactions relating to water and sewer operations are included in the financial statements of the District in the Water and Sewer Account, which is park of the General Fund. A summary of the Water and Sewer Account financial statements for the year ended September 30, 1996 is as follows: Total assets Total liabilities Total equity Total revenue $1,784,660 Total expenditures 1,621,138 Excess revenue over e:<penditures 163,522 Plus capital expenditures 115.331 Net revenue before capital expenditures S 278,853 C. Fund presentation - This financial report utilizes governmental fund types rather than an enterprise fund. D. Fund accountinq - The District has established separate governmental fund types to account for its transactions. Funds and account groups used by the District are as follows: Governmental funds General Fund - To account for all of the revenue of the District not specifically levied or collected for other District funds, and for expenditures related to the maintenance or operations and capital outlay which is not financed with bond proceeds. Debr Service Fund - To account for the source and disposition of monies for paying interest and principal on general long-term debt. >-?count arouws General Fixed Assets - To account for the property TROPHY CLUB MUNIC1P.U UTILIT'I' DISTRICT NO. I NOTES TO GENERU-PUXPOSE FI$TPATCIZL STATEPIENTS September 30, 1596 1. Summar-.., of sionif icant accouncina oolicies - coctinued Account Grouos - continued and equipment of the District. General Loncr-cerm Debt - To accounr. for che unmacureci principal of outstanding bords. Totals columns - Totals columns are captioned "memo only" to indicate that they are presented only to facilitate -. r~nancial analysis. Data in these columns do not preserlc financial position or results of operations in conformity with generally accepted accounting principles. Neither is 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 accountina - Basis of accounting reEers to wlien revenue and expenditures are recognized in the accounts and reported in the financial statements. It relaies to the timing of the measurements made, regardless of the measurement focus applied. Gov~rnmen~al funds are accounced 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 chey are generally not measurable until received. In~ergovernmental revenue and interest income earned but noL received by year-end are accrued when their receipt occurs soon enough afcer 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 in~eresc on general long-term debc which are recognized in the period in which they are due. TROPHY CLUB P!UNICIP.AL UTILITY DISTRICT NO. I NOTES TO GENEX~-L-PURPOSE FIN.bNCI.4L STATEMENTS September 30, 1996 1. Summarv of siqnificant accountina ~olicies - continued E. Basis of accountina - continued Generally, only current assets and current liabilities are included on a governmental fund' s balance sheet. Fund balance (nec currect assets) is considered a measure of xrailable spendable rssources. Gcvsrnmental fund operating statements present increases (revsnue and ocher financing sources) and decreases (e:ipenditures and other financing uses) in net currenc assets. Accordingly, they present a summary of sources and uses of available spendable resources during a period. Fixed assets used in governmental Eund t-ype operations are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets consistirlg 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 011 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. icepairs and maintenance are recognized as expenditures in the General Fund. Long-term assets and liabilities are generally excluded from governmental 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 he measurement of revenue in excess of expendi~ures. F. Budaets and budaetarv accountina - The Distric~ adheres to the following procedures in establishing the budgetary data reflected in the financial statements: TROPHY CLUB MTINICIPAL UTILITY DISTRICT NO. I NOTZS TO GENEKqL-P-URPOSE FIN.UiCI>L STATEMENTS Ss~tember 30, 1996 1. Summarv of sianificant accountino oolicies - continued F. Budsets and budsetarv accountina - continued 1. The Board of Directcrs adopt an annual budget for the General Fund on the modified accrual basis. 2. The Board of Directors approve budget appropriations. .Qy revisions that alter the total appropriarions 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 ~istri~t 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 $1,734,898 and ics total bank balance was $1,829,254. Of the bank balance, $100,478 was covered by federal depository insurance, and $408,196 was covered by collateral in the District's name held by the District's agent banks, which are different from the District's deposicory banks. The remaining $1,320,580 was held in TexPool Investments. The District does not carry any bank balance over and above the insured and secured amouncs. Amounts presented above included rescricted cash. H. Orqanizational costs - The District, in conformance with requirements of the Texas Natural Resources Conservation Commission ITNRCC), 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 e:rpenses until 12 TROPIiY CLUE MUTICIPPL UTILITY DIST-ZICT )TO. I bJOTES TO GENEIi.1.L-PURPOSE FIN>-NCIAL STAT5:bISNTS September 30, 1996 1. Summarv of accountina oolicies - continued conscruction and acceptance or use of the first revenue producing facility has occurred. I. Caoitalized interest - The District capitalizes net interest costs as parc of the Cost of constructing various water and sewer projects. There was no interesc capitalized for the year ended September 30, 1996. J. Revenue recoanition - Ad Valorem Prooertv Ta:.:r - 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 authcrized 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 discrict - The District was creaced by an order of the TNRCC (formeriy the Texas Water Commission) on March 4, 1975, and confirmed by the electorate of the Dis~rict at a confirmation election held on October 7, 1975. The Eoard of Directors held its first mee~ing on April 24, 1975. The first bonds viere sold on June 8, 1976. The District operates pursuant to J-r~icle XVI, Chapter 59 of the Texas Cons~icu~ion and Chapter 54 of the Texas Water Code, as amended. 3. Prior oeriod adjustment - The District has restated its previously issued general-purpose financial statements to reflect an adjustment related to the sale of water taps to MUD 2. This results in increasing fund balance-General Fund by $29,355 for the year ended 1995. TROPI-IY CLUBSIUNICIPAL UTIIlTY DISTlUCT NO. 1 NOTES TO GEERAL-PURPOSE FlNANCIALSTATESfENTS SEPTEMBER 30.1996 4. Grncrd Fked ,\sscu - A summniy of generd &xed meis is ;is folloivs: Bdmcc Bdusc 9-30-95 Additions Disposais 9-.70-9,j Physical Facilities: Land Buildings W:iter System Sanitary waste\vater s)3ten1 Drainage system Machineiy and equipment Autos and tmclts Furniture and Lxturcs Engineering fees Totd Physical Facilities District Organizational Costs - Creation I'eriod: Engineering and surveys Filing Eers, licenses, legal notices and permits Legd fees Director fees and per diem Olhcr costs Disvict Organizational Costs - Construction Period: Legal lees Financial consulting fes Operating Bond interest Aruorlized bond discaunt Total District Organizaliond Cosls Totd Physicd Facilities and Organizational Cosb Amounts Provided By: Grncral Fund: Contributions by derelopcrs Contributions by zencrd Fund Ilebt Service Fund : Contributions by debt service fund Capital Projects Fund: Bond issues Contibutions by capitnl projecrs fund Totd Amoui~ts Provided TROPIiY CLW MLTNICIPAL UTILITY DISTRICT NO. I NOTES TO C-ENERfiL-PURPOSE FIbTLniCIAL STATEHENTS September 30, 1996 5. General Lona-term Debt - Changes to general long-cerm debt for the year ended September 30, 1996 are as follows: Caaital Bonded A Leases Debt Balance, beginning of year $ 4,985 $7,898,000 Principal paymencs ( 4,985) ( 394,0001 Balance, end of yezr S 0 S7.504.000 6. Bonded debt - At September 30, 1996, che Districz's long-term bonded debt consisted of: Due during fiscal General year ending Due Long-Term 1997 Thereaf~er Debt Water works and sewer syscem combination unlimiced tax and revenue bonds, Series 1987 with interest rates ranging from 6.45% to 7.2%, due through 1997 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 Water works and sewer system combination unlimited tax and revenue bond Series 1993 with interest rates ranging from 3.25% to 5.9%, due through 2007 Total paid by Debt Service Fund Public property finance contractual obligations 1989 with interest rates ranging from 7.6% to 9.0%, due through 1999, paid by General Fund Tota! TROPHY CLUB MUNICIPF_L UTILITY DISTRICT NO. I NOTES TO GENERAL-PUTPOSE FINFNCIAL STATEMENTS September 30, 1996 6. Bonded debt (continued) A schedule of bond principal and interest maturities is as follows : - Year Princiual interest Total 1997 $ 420,000 $ 455,882 $ 875,882 1998 C51,OOO +25,366 876,366 1999 C78,OOO 399,656 877,656 2000 480,000 375,235 855,235 2001 510,000 349,075 859,075 Thereafcer 5,165.000 1.629.610 6,794,610 Total $7,504.000 $3,634,824 $11,138.824 Tax and revenue bonds authorized and unissued as of September 30, 1996, amounted to $1,103,217. The bonds are payable from the proceeds of ad valorem taxss 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, 1996. 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 ,accrusd 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 redemptl Ion. 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 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENEK4L- PURPOSE FIbJFNCIAL ST>-TENENTS September 30, 1996 6. Bonded debt - (continued) plcs an additional $900,000 of District General funds and $95,000 of Debc Service funds were used to purchase U.S. Securities. Those securities were deposited in an irrevocable trusz with an escrow agent to provide for all future debt serrice paymenzs on the bonds. The trust account assecs and the liabili~ies for the defeased bonds are not included in the Diszrict's financial statements. Ai Sepzember 30, 199G $3,805,000 in bonds outscanding are considered defeased. 7. Contracts - For the year ended 1996, $155,495 of revenue resulted from a contract dated September 19, 1991 between the District and Mud 2 whereby the District purchased 3,382 unused wastewater taps from a bankrupt developer. The District has agreed to hold and eventually sell to MUD 2 not less than 1,082 of those taps for the purchase price paid by the District. plus interest from date of purchase at a rate of 6.7969%. Mud 2 has an exclusive right to purchase these taps until September 19, 1998 at which time Mud 2 will have the first right of refusal on future purchases of the unused taps. Through September 30, 1996, Mud 2 has purchased 240 waste water connections. $28,754 of revenue for the year ended September 30, 1996 resulted from a contract between the District and Maguire Thomas Partners (MTP) whereby the District has set aside 900 wastewater taps for use by MTP for the future development of the Solana complex. At the point the tax revenue from new construction in the Solana complex exceeds the carrying cost of these 900 connections, this revenue stream will cease. During the year ended September 30, 1996 $9,600 of revenue resulted from a contract between Southwestern Bell Communications (Sac) and the District whereby SYC is allowed to utilize the Trophy Club water tower as an antenna platform for cellular phone antennas. Acring as agent for the City of Fort Worth, Texas, the District collected $42,247 in impact fees and remitted the fees to the City of Fort Worth during the year ended September 30, 1996. -1 lnls has not been recorded as revenue or expenses of the District. 8. Related Partv Transactions - The Districts' employees assist in maintaining the books and records of MUD 11 and the Town of Trophy Club, including payment of invoices and payables. The District does not assess a management fee for services TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL-PURPOSE FIN-UTCI?& STATEMENTS September 30, 1996 8. Related Partv Transactions (continued) performed. Certain costs, ie; copies, phone, postage supplies are charged to the respective entity as incurred. Related party receivables and (payables) by fund at September 30, 1936 are as follows: Fund $ Related uartv ...L Water and sewer 152 M-UE 2 (152) Water and sewer (1189) Town of Trophy Clllb 1189 Fire department 217 MUD 2 (217) At September 30, 1996, interfund receivables and ipayables) by fund are as follows: Fur?.d - S Fund S Water and sewer 31,721 Fire department (31, 721) Water and sewer (60,172) Operations 60,172 Operations 8,369 Fire department ( 8;369) 9. Commitments - The District follows the guidelines of the TNRCC in its dealings with developers. The District leases certain equipment and a modular building under the provisions of operating leases. One half of the monthly rent ($450 per month) on the modular buildings lease is repaid to the District by the Town of Trophy Club. Future minimum rental payments are : 1997 $19,812 1998 11,251 1999 3,500 Total $34,663 The District has an outstanding purchase commitment to purchase a Quint Apparatus fire truck for approximately $390,000. 10. 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 I 1 nvestment 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. 18 TROPHY CLUE MLINICIPAL UTILITY DISTRICT NO. I NOTES TO GENEXROSE FINMTCIhL ST?ATEE;!ENTS September 30, 1996 10. Retirement Plan (con~inued) There is no vesting period. Enployees do not have the option to contribute to the plan. The plan, as established, does not recognize prior service COSES, as it is based exclusively on current compensation earned by participants. The District's total payroll, coversd payroll and contributions for the year ended Sep~ember 30, 1996 were as follows: District's total payroll $4110.956 District's covered payroll $362.361 District's contribution required and paid $ 18,118 11. Risk Manaaement - The District protects itself from risks of loss by obtaining insurance policies or contribu~ing to federal and state agencies in the following potential risk areas: health and disability, automobile, general liability, worker's compensation and unemployment compensation. All policieshave specific limits and were in effect at September 30, 1996. 12. Post-Employment Health Care Benefits - Tile District provides post-employment health care benefits under COBW. Under tile Consolidated Omnibus Budget Reconciliation Act (COBMI, 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 coversd. 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 participan~s in the program as of September 30, 1996. The District does not provide any other post-employment benefits other than retirement plan benefits. SUPPLEMENTARY SCHEDULES The following supplementary schedules, (E) to (0) are included to satisfy reporting requirements of the Texas Natural Resources Conservation Commission. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I SUPPLEMENT-XRY SCHEDULES INCLUDED WITHIN THIS REPORT for the year ended September 30, 1996 (D.) Notes required by the TNRCC in the Fmnual Audit Report Requirements for Texas Water Districts and Authorities 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.) Fxalysis of taxes levied and receivable (I.) M-alysis of changes in general fixed assets and organizational costs (J.) General long-term debt service requirements - by year (I<.) Lnalysis 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.) Management letter to Board of Directors The following supplemental information is provided for the Board of Directors' additional analysis and is not part of the information required by the TNiCC. (P.) Combining schedules (Q.) Individual General Fund account financial statements TROPHY CLUB MUN1CIP.G UTILITY DISTRICT NO. I (El SCHEDULE OF SERVICES AND R4TES for the year ended September 30, 1996 1. Services provided by the District: Retail Water - X Wholesale Water X Drainage Retail Wastewater 2 Wholesale Was~ewater _ilL Irrigation Parks/Recreation Fire Protection - Sec~rity Solid Waste/ - Flood Control -- Roads Garbage Participates in joint venture, regional system and/or wastt water service (other than emergency interconnect) - Other (specify) : 2. Retail rates based on 5/8" meter: - Retail rates not Most prevalent tlype of meter (if applicable not 5/8") hJ /A Minimum Rate Minimum Usaqe Flat per 1,000 Usaqe levels - - Charqe (in aal) Rate - salldns (in aallons) 0 Water $9.00 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, 0OOi 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 X Total water and sewer charges per 10,000 gallons usage: First 10,000 gallons used $46.79 Next 10,000 gallons used 22.7fi ~ext 10,000 gallons used and subsequent 21.80 * Maximum residential wastewater charge is for 12,000 gallons or $26.52. TROPHY CLUE MLTNICIPPL UTILITY DISTRICT NO. I (E) SCHEDULE OF SERVICES P!D RATES for the year ended September 30, 1996 6. m-ticipated sources of funds to be used for debt service pa.yments in the District's following fiscal year: a. Debt Service Tax Receipts b. Surplus Construction Funds c. Water and/or Wastewater Revenua d. Standby Fees e. Beginning Debt Service Fund Balances f. Interest Revenues g. Other Total anticipated funds to be used 7. Location of District: Counties in which district is located. Tarrant, Denton Is the District located entirely within one county? Yes - No X Is the District located within a city? Entirely Partly X Not at all - City in which district is located. Town of Troui-r? Club, Town of Westlake Is the District located within a city's extra territorial jurisdiction (ETJ)? Entirely .- Partly - Not zt all - Unknown ETJ's in which district is located. Is the general membership of the Board appointed by an office outside the district? Yes - No If Yes, by whom? Personnel Professional fees: Auditing Legal Engineering TROPI-IY CLUB h1IIUNICIPAL UITLITY DISll~ICTNO. I (F) SCI-IEDULE 01' GENERAL FUND EXPENDITURES for the year ended September 30, 1996 Purchased senices for resale: Bulk watcr Sr w;x!ewate service purchases Contract services: TLY administration fee Utilities and telephone Repairs and m:iintenancc Administrative e.spenditures: Directors' fees Oliice supplies Insurance and bonds Other adminisliative es~enditures Capital outlay: Acquisilion of &xed assets Firelighting (see column) Other operating wsis Total e.ylendimres W;ter and Fire Sewer Department Operations To~nl Number of persons employed by the District: Full-lime: 16 Par[- time: 7 (includes 3 lull time equivalent fiielighlers) TROPI-lY CLUB MUNICIPAL UITLl1-f DIS'TllICTNO. I (G) SCHEDULE 01;'TEhlPOIlNZY IN\'ESTMENTS - ALL FUNDS September 30,1996 Idcn tification In~crcst hlaturity Balance Accrued Inicresi Number Rate Date End of Year End of\-e~r General Fund Ivloncy klarket Account - TesPool 06133 -9296 .5.23470 Demand $323,429 Paid Daily Money Market Account - TesPool 06133-1200 5.234% Dcmand Sj7,016 Paid Daii! Money Ivlarkct Account - TesPool 06133 -2489 5.234% Demand SS64,SSJ Paid Daily Money Market Account - TeliPool 06133-3821 5.234% Demand $46,684 Paid Daily Debt Service Fund Money Market Account - TexPool 06133-3333 5.234% Demand $28,667 I'aid D:lily Total .411 Funds 81,320.6SO 80 TROPI-1Y CLUB MUhlCIFAI. UTILI'RDISTRICTNO. I Tmcs receivable, beginning of year 1995 tax le\y Total to 1-e accounted for Lcss: colleclions and write-offs: Current year Prior years Taxes rcceii~ahle, end of year Tak:es receiizahle hy year: 1985 and prior 19 86 1987 19S8 1989 1990 1991 1992 1993 1994 1995 Tmes receivable, end of yeai L~nd improi,emenu I'rrsonxl property i:~tnlp!ions 'rota1 property i.aluotions Tu 13rc pcr Sl00 valuation: 17irc Eepartnient 0pwatio::s Dch! Se~ice TUL~I t2x r:,v2 per S1O.l valuation (I-I) ANALYSIS OF TAXES LEVIED AND RECEIVABLE' for 111e gear ended Scpteml~r 30,1996 General Fund Debt Fire Dcpl. Operations Senice Total TROPHY CLLQ IbfUNICIPAL UTILITY DISTRICT NO. I (HI ANALYSIS OF TAXES LEVIED .AND RECEIVABLE for the year ended September 30, 1996 (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) taxes property in the district. Name of Special Districts Service Provided Tax Rate None S Total rate(s) of special district(s) s N/A Tax rate for all overlapping jurisdictions. Include any taxing entities which overlap 10% or more of the District. Denton Tarrant County Countv a. County Denton/Tarrant $07836 S 0.256603 b. City Town of Troohy Club S 0.41110 S c. School District 'Northwest ISD/Carroll ISD $ 1.58800 $ 1.52950 d. Special Districts not included above: Hosoital Districc S $ .23984 Tarranc Councy Junior Colleae 9 $ ,05546 e. Total Special Discrict S S ,2530 f. Total District Ti- ?t:e ~0.30000 9 0.30000 g. Total Overlapping TPX Rate S 2.57743 S 2.796703 TROPI~Y CLUB MUNICIPALUTILITY DISI'RICTNO. I (I) ANALYSIS OF CI-L4NGES IN GENERALFIXEDASSETS AhQ ORGANI&\TIONAL COSTS for the year ended September 30.19516 Bdance Bdance 9-30-95 Additions Disposds 9-30-96 I'h!l;ical Facilities: Land Buildings Water s!stem Sanilaryu,r6tewater s).;tem Drainage system h,Lachinei). and equipment Auios and trucks Furniture arid lixrurr, En-~eering ices Totd Ph)sical Facilities District Organizational Costs - Creation Period: Engineering and surveys Filing fees, licenses, legal notices and permits Legal fees Director fees and per diem Oiher cosls District Organizationd Costs - Construction Period: Legal fees Financial consulru~g ier, Operatins Bond inrrresi .\mortized ho~iii discount 1-uid District Organizational Cosls Toid Physical Facilities and Cirf:~izi~!iond Costs An!ounlr Pmvided By: Gcncrzl 1:uli:J: (-or.-.. ,~it?utiiiris by developers Rei'enus Diht Service Fund : TROPHY CLUB MUNICIPAL UnLIn DISTRICTNO. I (J) GENERAL LONG-'ERhf DEBTSERVICE REQUIREMENTS - BY YEAIZ for the year ended September 30, 1996 Series 1987 Due During Interest Due Fis~ll Year Principal Due March 1, September 1, Ending September 1, (50% each date) Total Series 1989 Duc During Interest Due Fiscl~l Ycar I'rincipal Due January 1, July 1, Ending January 1: (50% each date) Total -- 1ROPIJY CLUB MUNICIPAL. UnL17Y DISTIZICTNO. I (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY \TNZ for the year ended September 30, 199b Due During Fiul Year Ending Inlcrest Duc Principal Due hlarch 1, Septenlbcr 1, September 1, (50% each date) Total 398,290 397,040 395,040 394,670 398310 401,275 402,785 403,160 402,320 405,235 401,535 401,i25 404,825 406,375 406.1 75 S6,01S,710 TROPI-IY CLUB MUNICIPAL WllLITY DISTRICTNO. I (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YE.4R for the year ended September 30, 1996 Scrics 1993 Due During Fiscal Year Ending Interest Due Principal Due March 1, September 1, September 1, (50% each date) Total 196,705 461,280 463,905 460,565 460,565 459,185 461,165 457,115 461,675 459,445 460,665 $4,801,470 TROPI3Y CLUB MUNICIPAL UTILITY DISTRILTNO. I (.I) GENERAL LONG-TERM DEBTSERVICE REQUIREMENTS - BY YEAR lor the year ended September 30, 1996 Annual Requiremen& Due During Fiscal Ycar Ending Tolal Total Principal Due Interest Due Total 375,8S2 576,366 377,656 655235 859,075 Sh0,410 864,130 860,275 563,995 864,680 S622Oil 401,575 404,825 4063'7.7 406,17:i $ll.l38,fg~ TROPI-IY CLUB ivlUNICIPAL UTILITY DISTRICr NO. 1 (K) 4NALYSIS OF CIm'GES IN GENERAL LONG-TERM DEB7 for tlic ycar ended Septcmher 30,1996 Scries 1987 Series 1989 Series 1991 Series 1993 Total Ir~icresr rale 6.45 - 7.2% 7.6 - 9.0% 5.5 - 7.570 3.25 - 5.9% ihte iiltcrcst payable Mar I S: Sep 1 Jan 1 S: Jul 1 Mar 1 S: Scp 1 Mar 1 6: Sep 1 hlaturily date Scp 1 lo 1997 Jan I to 1999 Scp 1 to 2011 Sep 1 to 2007 Yonds outstanding at brpinniug of year $475,000 963,000 $3,S80,000 $3,4SO,OOO $7,S58,LlOil Uouds sold during current year Retirements of priucipal (230,000) (14,000) - (1 40,000) (10,000) ---- (3!14,OiJO) Bouds outrtandiug at end of year .- $245,000 $49.000 $3,740,000 - $3,470,000 -. $7,504,000 Retircmel~lr; of interest $33.740 $4,357 $258.790 7 S;JS3.3?2 IJnying ageut'cnamc aiid address: Serics 1987, Scries 1989, Series 1991 itnd Series 1993: 'I'csa:: Commerce Uad. N.A., P.O. Box 2520, Dallas, Tcxas 753.31 D~rnd Autllority 'Tax Bonds Othcr Bonds - Rcfundiny Bonds i~moui~t authari-cd by votcrs $12,344,217 $0 $0 Amount irsucd ll.?41,000 -- - . - P.i.ln:iin!nz to he issued -- %1,103.217 $0 $0 - Cch! S;:,ict Fuild cash ~nd cash ~;quiv:~!c~its hnla~icc ;IS <I[ Scp!c~nhcr 30, 1'196 $55,7?;2 .- ,?v:iasc ;ini~~a! dcht si.n.ice liaynteiit (prilicipnl ZL iintcrcst) for renlainii~g term of dcbt: %il~,~S:~_ ojg'ot, %2'6 ?bVS 4;rz 51'11 LSL'666 S6Pa991 91E'S6 OS!'Z> L8C9SZ 96'500 4bP'E 24 1 ?XZ ?bL'Z 0 ZM'Z9 ZLL'SZ 6PL'LP aIb'C9 0, .. ?60'0 050'0 I5VO 466'2 YbVO 0 0 0 11fi'L.S il %L'E YIVE %S'I U5L'I o%V1 1ZE816 I G'T Z, '48 92 Lb'd'li LSII'EE -. , 2661 ptlC E661 'b661 '5661 '9661 '(]EJJL[IL~~IL!JS pJPlll ~1l!5,( a,\?) Jill 101 ClNfl:l~lV>l3N~l!> - S~l>lfl,l~CIN~l~lKI CINV~lflNIA~1~r:lC~ STl~lfl~l~lll~>S~~,~l,l.VllV~li~~l;1 PI) 1 'ON .l>l>1.lSlCl A.l.~1l.l~~lVtll~>lNflL~ llfl'l:) All~llJ~l.l. , - b: g L? b? t2 c! qC!qq , =,mo &? z 0 L? L? i? n-0 mmo CI U m' m .c r. ? - TROPHY CLUB WLlNICIP.AL UTILITY DISTRICT NO. I (M) INSURANCE COVERAGE for the year ended September 30, 1996 Amount of Type of ?olicy corporation clause stock/ CO- Tyue of coverase coverage Name mutual insurance Hartford Employee honesty, Casualty etc. : Company Stock None Tax assessor- collector $ 10, 000 Public official (each director) 10,000 Bookkeeper bond 50,000 Director and officers Colonial liability 5,000,000 Insurance Co. Stock None Building and American contents and Protection water system 5,474,000 Insurance Co. Stoclc 100%- Comprehensive General and Contractual Liability: Mid-Continent Casualty Co. Stock None Products & Completed Operations Aggregate: 1,000,000 -Personal & Advertising Injury: 1,000,000 Fire Damage: 50,000 Medical Expense: 5,000 Automobile 1,000,000 Mid-Continent Casualty Co. Stock None Contractor' s 40,500 Mid-Continent equipment Casualty Co. Stock No!le Umbrella 4,000,000 Mid-Continent Stock None Casualty Co. Pollution liability 300,000 Mid-Continent Stock None Casualty Co. (continued) TROPHY CLUB IWNICIPAL UTILITY DISTRICT NO. I (M) INSURANCE COVERAGE for the year ended September 30, 1996 Twe of coveracre Workman' s Compensation Fire Department : Management liability policy General liability policy Commercial umbrella Commercial Auto: Bodily injury Property damage (continued) Type of Policy corporation clause Amount of stock/ CO- coveraae Name mutual insurance Based on Salaries TML Mutual None Cigna 2,000,000 Insurance Co. Stock None 1,000,000/ Cigna 2,000,000 Insurance Co. Stock None Cigna 3,000,000 Insurance Co. Stock None IN&- County 1,000,000 Mutual Mutual None 1,000,000 Insurance Co. This statemeniz, prepared from insurance confirmations is inrended only as a descriptive summary; no expression of opinion ES ro the adeq~acy of che coverage is intended. 3 8 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (N) BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULT.&NTS for the year ended September 30, 1996 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 o f Name and address date hired 09-30-96 vear-end District? Board members Constance S. White 119 Trophy Club Drive Trophy Club, TX 76262 5/94 - 5/98 $ 550 President Yes T.A. Neidenberger 1033 Sunset Drive Trophy Club, TX Vice 76262 5/96 - 5/00 $ 600 President Yes Joha V. Peters 402 Hilltop Court Trophy Club, TX '76262 5/96 - 5/00 $ 0 Director Yes R. Peter Reincke, Jr. 1111 Wilshire Trophy club, TX 76262 5/94 - 5/98 $ 550 Secretary/ Treasurer Yes Susan H. McCabs 1136 Sunset Drive Trophy Club, TX 76262 5/91 - 5/96 $ 300 N/A Yes .- - wesley W. Gbsrmeier 2 07 i3akmont Trophy Club, TX 76262 9/96 - 5/98 $ 5 0 Director Yes >Jot?.: No dir;ctor is disqualified from serving on this board ~nder the Te:.:as i,? - -. yc;icr Code. TROPHY CLUB WUNICIPAL UTILITY DISTRICT NO. I (N) BO-LID MEMBERS, KEY ADMINISTRkTIVE PERSONNEL AND CONSULTANTS for the year ended September 30, 1996 (Continued) Term of Fees office elected and expense Title Resident and expires or reimbursement at o f Name and address date hired 09-30-96 vear-end District? Kev administrative uersonnel Roger Unger 102 Carnoustie Trophy Club, TX District 76262 04/15/a6* $61,450 Manager * Assumed responsibility of District Manager on 10/15/89 Cathy Morgas Assistant 2158 Wedgwood Drive District Grapevine, TX 76051 02/01/91 $40,227 Manager Consultants Denton County Appraisal District P.O. Box 2816 Denton, TX 76202 04/01/81 Sanford & Baumeister, P.C. 6300 Ridglea Place, Suite 1111 for^ Worth, TX 76116 1995 CarLer L Eurgess 1100 Macon Streec Forc Worth, TX 76102 1983 Michener, Larimor?, - - =L al, L.L.P. 3500 City Center Tower I1 Fsri iYorth, TX 76102 02/01/93 Bosth and Dillon, P.C. 2020 1st Ci~y Cenrre 816 Congress .kvenue Auscin, Texas 78701 1993 Yes Appraiser No Auditors No Consulting Engineer No Legal Counsel Legal Counsel SANFORD & BAUMEISTER, P.C. CEKnFlED PUBLIC ACCOUkT.ANE 6300 RIDZLLA PMCE, Sum 1111 Fom I~'om, TEXAS 76116 TELEPHOSE (617) 37-1111 FACSI&!ILE (817) 737-8973 To the Board of Directors Trophy Club Municipal Utility District No. I 7-7 ve 100 Municipal D-L Trophy Club, Texas 76262 Directors: We have examined the financial statements of Trophy Club Municipal Utility District No. I for the year ended September 30, 1996 and have issued our report thereon dated December 2, 1996. As part of our examination, we made a study and evaluation of the District's system of internal accounting control to the extent we 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 auditingprocedures necessary for expressing an opinion on the District's financial statements. Our study and evaluation vias 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 requi-red to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, 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 permic the preparation of financial statements in accordance with generally accepted accounting principles. 7. *. Because or inherent limitations in any system or internal accounting concrol, errors or irregularities may nevertheless occur and not be detec~ed. Also, projection of any evaluation of he system to future periods is subject to the risk hat procedures may become inadequate because of changes in conditions or that the degree of compliance with procedures may deteriorat?. Our s~udy and 2valsa~ion made for the limited purpose described in the first paragraph would not necessarily 4 1 To the Soard of Directors Trophy Club Municipal Utility District No. I 100 Municipal Drive Trophy Club, Texas 76262 disclose all material weaknesses in the system. Accordingly, we 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, our study and evaluation disclosed the following recommendations. The District does not currently have a written organizational chart describing the duties, responsibilities, and authorization abilities of the employees. It is our recommendation that the District design a chart that describes the above. In addition, we would like to recommend that they establish a policy and procedures manual identifying controls that have been put in place to limit access to data, assets and computer programs. There is a lack of segregation of duties due to the limited number of employees. It is generally not recommended that the same personnel who performs the general accounting/general ledger/journal entry function also perform the detail recording functions of accounts receivable, accounts payable, and purchasing. We recognize thac, due to personnel limitations, little can be done to furchsr segregate thsse duties, hut I do want to make management aware that this is a potential problem that should be corrected if further personnel becomes available. ASSETS TROPI-lY CLUB MUNICIPAL UTILITY DISTRICT NO. I (P) COMBINING BALANCE SliEET September 30, 1\86 Water and Fire Cornhining Contbined Sewer Departmelit Operatio~ls Entries Total Current assets: Cash and cash equivalents $623,274 $62.471 $897,714 $1,5=,4.59 Restricted cash 95,927 0 0 95,927 Accounls receivahle, net 186,370 284 28,75.?i 215,407 Prepaid ex~e~tses 7,414 1,878 401 9,703 Ad valorem property lax receivable 0 2,268 SO6 3,074 Interfund receivable 43,m 0 68,i42 (llZ,llO) (1 Tom1 assets $956,563 S66,901 $996,216 fSll1.l~ $1,907,570 LIABILITIES AND FUND EQUITY Current liabilities: Accuunts payable Refundable deposits Delerred income Interfund payahle Total current liabilities 268,447 44,032 1,220 (113,110) ?01,5S9 Fund balance 688,116 32,869 994,996 - 1,705,9S1 Total liabilities and fund equity $956,563 S66.901 $996,216 - (S111.110') __ S;1.907.570 Note: Combining entries clirni~~atc interlund receirahles and payables arising from out of district w:lter sales and palncn~ for the fire department building. T'ROPHY CLUB MUNICIPAL UTlLllY DISTRILT NO. I (P) COMBINING STATEMENT OF REVENUE, EXPENDPTURES AND CI-lAh'GES IN FUND BALANCE lor the gear ended Septcnibcr 30, 1996 Water and Fire Cornhining Combined Sewer Department Operations Entries Totals REVENUE Water slid sewer service Insjicction and tap connection lees Service contracts Water and sciver ser\,ice penalties and interest Sale of wastewater connections Ad valorcnt property taxes Ad \2alorcm property tax penalties and interest Interest earned Miscellnneous Total revenue 1,784,660 215,373 318,617 0 2,31S,6SO -- EXPENDITURES Water and Sewer Department: Salaries, wages and cmpioyee beneliu Engineering. Operational costs: Coixurnable suplllies Rciit/le;tse equipmertt Bad debt Regulatory fees M'atrr niciers Lsh au;iiy:is Garbage service ivlixellancous \\'aler purcliasss Iliilities ar~d telcpiloiic itlaintcnancc arid repairs Caliiial oui1;ty TROPHY CLUB MUNICII'AL UTILITY DISTIIICTNO. I (P) COhlUINING STATEhENT OF REVENUE, EXPENDITURES AND CIIrWGES IN FUND BALAh'CE lor the year ended Septenibcr 30, 1996 Water and Fire Combining Combined Sewer Deparlmcnr Operations Entries Tolals Adminisrrative Dcpartmcnt: Salaries, wages and employee benelits Prolessional lees: Legal Engineeril~g Accouniing and auditing Tasadminislration scnices Directors' fces Printing and ollicc supplies Insurance and bonds Other: Contract labor Travcl and seminars Miscellaneous Utilities and telephone M;linter?ance and repairs Deb1 paymenls Interest payments C~pital out1a)~s Totnl administralive 366317 211.576 26,984 0 607,887 CXCCSS 01 revenue over expenditures S163,522 - $797 S291,663 $&5,~~2 - - -- SO Note: I.~orniiir,ing i:iiiries eliminate interlund iiitc1.er1 income and interest cxpcnse, TROPI-IY CLUB MUNICIPAL UT1LIl-x' DISTRICTNO. I (Q) BALANCE SHEET - WATER AND SE\\'ER ONLY Seplembcr 30, 1996 ASSETS Current assets: Cash and cashequivalents Rcstrjcted cash Accounts receivable, net Prepaid expenses Interfund receivable Total current assels 121hDILITIES AND FUND EQUITY Current liabilities: Accounts payable Relundahle deposits Intcrhnd payable Total current liabilities 1:un.l balance Toul ii3 bililics and fund equity Note. Funds ;Ire administcrcd by MUD 1 as "Master Dis~rict" per contr;ict, as amended TROI'I-IY CLUB MUNICII'AL UTILITY DISTRICTNO. I (Q) STATEMENT OF REVENUE, EXPENDITURES .4h1D CXFANGES IN FUND BALANCE WA1XR AiVD SE\X'ER (BUDGET ACTUAL) lor the year ended September 30,1996 \\'ater and scwer sen'ice Inspection and tap connection lees Water and senrcr senrice penalties and interest Interest earned Miscellaneous Total rcvenuc EXPENDITURES Water and Sewer Ilepartment: Salaries, \\!ages and employee benefits Engineering Operational costs: Consumable supplies Rentilease equipment Bad dehl Regulatoefees Water meters Lab annhsis G:lrhage service hlisccllaneous Water purch:lscs Utilities and telcpliooe h4iiintcnancc and repnirs C?piwl oullap 71-uL~l \\:itel. and sewcr department Variancc favorable - Budget Actual (unfavorable) - 1,115,173 Continued 1-ROI'I-IY CLUB MUNICIPAL unLIn DISTRICTNO. I (Q) STA?FhlENT OF REVENUE, EXPENDITURES Ah'D CHANGES IN FUND BALANCE WATER AND SEtVER (BUDGET AND ACTUAL) lor the year ended September 30, 1996 Variance [avorable - Budget Actual (unlavorable) EXPENDITURES (Continued) Administrative Department: Salaries, \$'ages and cniployee benelits 1'rofes:~ional fees: Legal Engineering Accounting and auditing Printing and officc supplies Insurance and bonds Other: Contract labor Travel and seminars Miswllaneous Utilities and telephone M:lintcnancc and repairs C1pita outlays ToLd administrative kscess ol rcvenue over eqm!diturcs Fund balance, bcgincing al year Ihd hal:incc, cnd ulyear TI1OPI-IY CLUB MUNICIPAL UTILIIY DISTILICTNO. I (Q) BALANCE SHEET - FIRE DEI'ARThtENT ONLY Scptcmber 30, 1996 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Prepaid cxpenses .4d valorem property raws receivable Tohl assets LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable Deferred income Interfund payable Toul current liabilities Fund balance Toul liabilities and fund cquiiy TROPI-IY CLUB MUNICIPAL u.rlLlm DISTRICT NO. I (Q) STATEMENTS OF REVENUE, EXPhYDITURES AND CI-IANGES IN FUND BAL.kNCE FIRE DEPARTMENT (BUDGET AND ACTUAL) for the year ended September 30, 1996 REVENUE Senice contracts Ad valor en^ propcrty taxes Ad valorem praperl), tax penalties and interest luterest earned Miscellaneous Total revenue EXPENDITURES Adn~inistrati\'c: Salaries, wages and 'mployee lxnelits Accounting and auditing Tax adminislration sen8ices Office supplies Insurance and bonds Rent / lease equipment Fireligllting: Debt paynleuts Interest pa)~mcn;.; Siiiool and training Llliiiorr~ls Fucl aud supplies Remote communic;~?ions Misccllnneous U~ilities arid ?el~:plionc Maintenance and repairs Capital outlays Varia~~ce favorable - Budget Actual (unfa\'arable) TROPHY CLUB MUNICIPAL UTILITY DISTRICTNQ. I (Q) BALANCE SHEET - MUD 1 O Sr M ONLY September 30,1996 Currcnl assets: Cash and cash equivalents Accounts receivable, net Ad ~ralorem properly tax receivable I'rcpaid expenses Interlund receivable Total current assets LIABILITIES AND FUND EQUITf Current liabilities: Accounts payable Deferred income Total current liabilities Fund balance Total liabilities and [und equity Note: Assets owned by hIUD 1. TROPHY CLUB MUNICIPAL U'nLI?Y DISTRICTNO. I (0) STATEMENTS OF REVENUE, EXPENDITURES W'D CIWGES IN FUND BALkNCE MUD 1 0 fi: M OhZY (BUDGET AND ACIUAL) lor the year ended September 30,1996 Variance favorable - Budget Actual (unla\rorahle) Out of district water and sewer service $0 $66,978 $66,978 S;lle of a.aste\vater conneclions 20,000 155,495 135,495 Ad \,alorem property lases 2.5,186 26,813 1,627 Ad valorem property lax penalties and interest 400 64 (336) Interest earned 23,000 10,543 17,543 Miscellaneous 16,170 28,751 12,564 Total revenue 84,756 318,647 233,891 EXPENDITURES Administmti\,e: Legal Engineering A-ccounting and auditing Tas administration services Dirrctois' lees Office supplies Insurance and bonds Other .row1 cspcnditures 43,500 - 26,984 16.516 Excess 01 revenue over c!?enditures $41,256 191,663 250,407 Fund ualance, heginning 01 ycar, as reslated 703;333 Fund halancc, cnd olycar $994,996 ANNUAL. FILING AFFIDAVIT THE STATE OF TEXAS ) COUNTY OF: ~enton/Tarrant ) 1, Constance S. White (Name of Duly Authorized District Representative) of the Troahv Club Municipal Utility District No. 1 (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 District on the 28 day of Januarv , 1997 its annual audit report for the fiscal year or period ended September 30, 1996 and that copies of the annual audit report have been filed in the district office, located at 100 Municipal Drive, Trophy Club, Texas 76262 (Address of District) 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 49.194 of the Texas Water Code. - Date: J0-h (~ianatuge of District 4 Representative) Constance S. White, President (Twed Name & Title of above District Representative) Sworn to and subscribed to before me this 2% day of Odk,h .!L,dQ% (Signature of ~otad~) My Commission Expires On: 30 , 1qq7 , Notary Public in and for the State of Texas. TEXAS NATURAL RESOURCE ~ONSEWAT~ON GOMMISSlON Prolecling Tcxus bg Reducing orid Prei~onting Pullulion February 13, 1997 Tr0P.y- 100 Municipal Drive Trophy Club, Texas 76262 RE: Fiscal Year Ended September 30, 1996 Audit Report and Filing Affidavit for Trophy111uhMMU Report was received &(;me ( ) late. Dear Board Members: The documents referenced above were received on February 12, 1997. The report will be reviewed by the Commission staff for compliance with generally accepted accounting principles and the "Annual Audit Report Requirements for Texas Water Districts and Authorities" (AARR, March 1996). If the staff has any comments or questions after reviewing the report, we will notify you and your independent auditor. Otherwise, the report and associated documents will be directly filed with the records of the Texas Natural Resource Conservation Commission for future reference and analysis. Reports and Supervision Team Water Utilities Division