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HomeMy WebLinkAboutFY Ended September 30, 2000TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30,2000 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30,2000 TABLE OF CONTENTS FINANCIAL SECTION Independent Auditors' Report General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expendiiures and Changes in Fund Balances - All Governmental Fund Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (GAAP Basis) - General Fund Notes to General Purpose Financial Statements Supplementary Information - Information Required by Texas Natural Resources Conservation Commission (TNRCC) (C) Auditors' Report on Supplemental Schedules is incorporated in "independent Auditors" Report on page 1. (D) Notes required by the TNRCC in the Annual 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) 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 Annual Filing Affidavit Information Requested by Board of Directo~ Departmental Balance Sheet - General Fund Departmental Statement of Revenues. Expenditures and Changes in Fund Balance - General Fund Deoartmental Statement of Revenues. Exoenditures and Chanoes in Fund Balance - . , d Budget and Actual (GAAP Basis)- General Fund THIS PAGE INTENTIONALLY LEFT BLANK RUTLEDGE CRAlN & COMPANY, PC CERTIFIED PUBLIC ACCOUNTANTS 2401 Garden Park Court, Suile B Arlinglon. Texas 76013 INDEPENDENT AUDITORS REPORT To the Board of Directors Trophy Club Municipal Utility District No. 1 Trophy Club, Texas We have audited the accompanying generai purpose financial statements of Trophy Club Municipal Utility District No. 1, as of September 30. 2000 and for the year then ended. These general purpose financial statements are the responsibility of the Distries management. Our responsibility is to express an opinion on the general purpose financial statements based on our audit. Except as discussed in the following paragraph, 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 generai purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall 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 ell material respects, the financial position of Trophy Club Municipal Utility District No. 1, as of September 30. 2000, end the results of its operations for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial stetements taken as a whole. The accompanying supplemental information listed in the table of contents is presented for purposes of additional analysis and are not a required part of the general purpose financial statements of Trophy Club Municipal Utility District No. 1. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial stetements and, in our opinion, 6 fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. wfk.f~pLLIc_JIL December 22,2000 Members: Metro (817) 265-9989 Ameiican lnslilule ol Cerlified Public Accountants Texas Society ol Certiiied Public Accountants Fax (817) 861-9623 TROPHY CLUB MUNICIPAL UTlLlW DISTRICT NO. 1 COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30. 2000 Governmental Fund Types General Debt Service ASSETSANDOTHERDEBITS Assets: Cash and cash equivalents Investments Receivables ( net of allowances for uncollectibles): Taxes Accounts Miscellaneous Intergovernmental Due from other funds Prepaid items Restricted assets: Cash and cash equivalents Loan receivable from government Note receivable Conlrad receivable Fixed assets Other Debits: Amount available in debt service fund Amount to be provided for retirements of general long-term debt Total Assets LIABILITIES, EQUITY AND OTHER CREDITS Liabilities: Accounts payable Accrued liabilities Liabilities payable from restricted assets: Customer deposits Due to other funds Due to othergovernments Deferred revenue Notes payable General obligation bonds payable Contradual obligations payable Total Liabilities Equity and other credits: Investment in general fixed assets Fund balances: Reserved for prepaid items Reserved for loan receivable Resewed for note receivable Reserved Unreserved, undesignated Total equity and other credits Total Liabilities, Equity 8 Other Credii Fund Fund The accompanying notes are an integral part of this statement Totals (Memorandum Only) September 30, September 30, 2000 1999 Account Groups General General Long- Fixed Assets Term ~ebt TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENTOF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED SEPTEMBER 30,2000 Totals Revenue: Water, sewer, fire department Standby fees Inspection and tap connections Ad valorem taxes MisceNaneous revenues Interest Total revenues Expenditures: Current Administrative Water andsewer Fire department Contribution to Trophy ClubhVestlake DPS Total Current Expenditures Capital Outlay: Administrative Water and sewer Fire department Total Capital Outlay Debt service: Principal Interest -Total Debt Sewice Total expenditures Governmental Fund Types General Debt Service Fund Fund (Memorandum Only) September 30, September 30, 2000 1999 Excess (deficiency) of revenues (under) expendii 268,509 (120,850) 147.659 161,129 Other financing sources (uses): Debt proceeds - - - 105,000 Total other financing sources (uses) - - - 105,000 Excess of revenues and other financing sources over (under) expenditures and other financing uses 268,509 (120,850) 147,659 266,129 Fund balanceslequity, October 1 Fund balanceslequity, September 30 The accompanying notes are an integral part of this statement 4 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENT OF REVENUES, MPENDlTURES AND CHANGES IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30,2000 Revenue: Water, sewer, firre department Standby fees lnspedion and tap connections Ad valorem taxes Miscellaneous revenues lnterest Total revenues Expenditures: Current Administrative Water and sewer Contribution to Trophy ClubNestlake DPS Total Current Expenditures Capital Outlay: Administrative Water andsewer Total Capital Outlay Debt service: Total expenditures Excess (deficiency) of revenues (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other financing uses Fund balanceslequity, October 1 Fund balanc4equ'v,September 30 Budgeted General Funds Variance Favorable Budget Actual (Unfavorable) The accompanying notes are an integral part of this statement 5 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30,2000 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A Reporting Entity Trophy Club Municipal Utility District No. 1 (the District) was created by an order of the Texas Natural Resources Conservation Commission UNRCC) (formerly the Texas Water Commission) on March 4. 1975 and confirmed by the electorate of the District at a confirmation election held on October 7, 1975. The Board of Directoh held its first meeting on April 24, 1975. The bonds were first 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. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for the District. The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units As required by generally accepted accounting principles, these financial statements present the District only. There are no component units which satisfy requirements for blending within the District's financial statements or discrete presentation. 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. 2 (MUD 2) customers. The proportionate allocation of costs and related beneficial usage rights in the major assets is estimated as follows (the proportions were based on build-out and may not have been fully funded accordingly): (A) Future MUD 1 MUD2 Water plant and wells 40.91% 27.14% 31.95% Twenty-one inch water line 60.00% 40.00% 0.00% Elevated tank 43.99% 56.01% 0.00% Original treatment plant and land 67.14% 32.86% 0.00% First expanded treatment plant 67.1 4% 32.86% 0.00% Second expanded treatment plant 77.30% 22.70% 0.00% Administration building 23.38% (B) 0.00% 76.62% (A) The developer's original intent was for five districts. (B) MUD 2 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 2 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 2 that compensate the District for water and sewer plant capacity and out of district sales as approved and required by the TNRCC. TROPHY CLUB MUNICIPAL UTlLlN DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30,2000 Based upon this arrangement, all financial transactions relating to water and sewer operations are included in the financial statements of the District in the Master District Account, which is part of the General Fund. A summary of the Master District's financial statements for the year ended September 30, 2000 follows: Total assets Total liabilities Total equity Total revenue 5 2.587.950 Total expenditures (2,364,515) Excess of revenues over expenditures 223,435 Plus capital expenditures 107,433 Net revenue before capital expenditures 5 330,868 B. Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the District are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. TheDistrict utilizes governmental fund types to account for the District's activities and to prepare its financial statements. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the currant period or soon enough thereafter to pay liabilities of the current period. The District considers all revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Those revenues susceptible to accrual are ad valorem taxes, interest revenue and charges for services. Penalties and interest on property taxes and miscellaneous revenue are recorded when received, as they are generally not measurable until received. The District reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and 'available" criteria for recognition in the current period. Governmental funds include the following fund types: The general fund is the District's primary operating fund. It accounts for all financial resources of the general government. except those required to be accounted for in another fund. Debt service funds account for the servicing of general long-term debt not being financed by proprietary or nonexpendable trust funds. Account Groups include the following: The general fixed assets account group is used to account for all fixed assets of the District. The general long-term debt account group is used to account for general long-term debt and certain other liabilities of the District. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANClAL STATEMENTS SEPTEMBER 30.2000 C. Assets. Liabilities and Equity 1. Deposits and lnvestments The District's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisktion. State statutes authorize the District to invest in (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States: (4) obligations of states, agencies. counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (5) certificates of deposit by state and national banks domiciled in this state that are (A) guaranteed or insured by the Federal Deposi? Insurance Corporation, or its successor; or, (El) secured by obligations that are described by (1) - (4); or, (6) fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by (I), pledged with third party selected or approved by the District, and placed through a primary government securities dealer. Investments are stated at fair value. 2. Receivables and Payables Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or "advances to/from other funds." All other outstanding balances between funds are reported as "due tolfrom other funds." Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. Trade accounts receivables are shown net of an allowance for uncollectibles. Trade accounts receivable in excess of ninety days comprise most of the allowance for uncollectibles. Property taxes are levied as of October 1, on the assessed value listed as of the prior January 1, for all real and certain personal property located in the District. The appraisal of property within the District is the responsibility of Denton Appraisal District (Appraisal District) as required by legislation passed by the Texas legislature. The Appraisal District is required under such legislation to assess all property within the Appraisal District on the basis of 100% of its appraised value and is prohibited from applying any assessment ratios. The value of property within the Appraisal District must be reviewed every five years; however, the District may, at its own expense, require annual reviews of appraised values. The District may challenge appraised values established by the Appraisal District through various appeals and, f necessary, legal action. 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 $0.25 per $100 valuation for the operations and maintenance of the District. Property taxes attach as an enforceable lien on property as of January 1, following the levy date. Taxes are due by January, 31, following the levy date. Property taxes are recorded as receivables when levied. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30,2000 Following is information regarding the 1999 tax levy: Adjusted taxable values $ 378,519,327 O&M tax levy $0.0803/$100 $ 303,951 l&S tax levy 50.1597/$100 604,495 Total tax levy $0.240015100 $ 908,446 3. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are therefore recorded as prepaid items. 4. Fixed Assets Fixed assets used in governmental fund types of the District are recorded in the generai fixed assets account group at cost or estimated historical cost if purchased or constructed. Dedicated futed assets are recorded at their estimated fair value at the date of dedication. Assets in the general qxed assets account group are not depreciated. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not included in the general fixed assets account group. Public domain ('infrastructure") general fixed assets consisting primarily of drainage systems have been capitalized. 5. Organizational Costs The District, in conformance with requirements of the TNRCC, capitalized costs incurred in the creation of the District. The TNRCC requires capitalization as organizational costs for the construction period ail costs incurred in the issue and sale of bonds, bond interest and amortized bond premium and discount, losses on sales of investments, accrued interest on investments purchased, attorney fees and some administrative expenses until construction and acceptance or use of the first revenue producing facility has occurred. 6. 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 30.2000. 7. Compensated Absences Effective October 1, 1998, the District transferred its employees to the Town of Trophy Club under an agreement whereby the Town provides the employees necessary to continue the District operations. Accordingly, no provision for compensated absences is provided for at September 30, 2000. 8. Long-term Obligations The District reports long-term debt of governmental funds at face value in the general long-term debt account group. Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the general long-term debt account group. For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as an other financing source net of the applicable premium or discount. issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30,2000 9. Fund Equity Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific purpose. Reserved fund balance represents the amount of prepaid items. 10. Memorandum Only-Total Columns Total columnson the general purpose financial statements are captioned as "memorandum only" because they do not represent consolidated financiai information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position, results of operations or cash flows in accordance with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. 11. Comparative Data/Reclassifications Comparative total data for the prior year have been presented in selected sections of the accompanying financiai statements in order to provide an understanding of the changes in the District's financial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current yeah presentation. 11. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary information Annual budgets are adopted on a basis consistent with generally accepted accounting principles as follows: 1. The Board of Directors adopts an annual budget for the General Fund on the modified accrual basis. The Board of Directors budgets revenue but does not budget expenditures for the Debt Service Fund. 2. The Board of Directors approves all budget appropriations. Any revisions which 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. All annual appropriations lapse at fiscal year end 4. No significant amendments to the budget occurred during the year, B. BudgeVGAAP Reconciliation The budget is adopted on the modified accrual basis of accounting, thus there are no reconciling items between the Budget basis and the GAAP basis of accounting. C. Excess of Expenditures Over Appropriations For the year expenditures exceeded appropriations for the following funds: General Fund $204.634 Ill. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A Cash, Cash Equivalents, and Investments At year end, the District's carrying amount of deposits was $312,474 ($126,932 restricted) and the bank balance was $363,780. All of the bank balance was covered by federal depository insurance or by collateral held by the District's agent in the District's name. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL SJAEMENJS SEPJEMBER 30,2000 lnvestments lnvestments are categorized into these three categories of credit risk: 1. insured or registered, or securities held by the District or its agent in the District's name. 2. Uninsured and unregistered, with securities held by the counter party's trust department or agent in the District's name. 3. Uninsured and unregistered, with securities held by the counter party's, or by its trust department or agent but not in the District's name. At year end, the District's investments were as follows: Carryinq Fair Value lnvestments not subject to categorization: Texas Local Government Pool System (TexPool) $tas? $_tB9,141 Investments categorized as cash equivalents $1&9LlAl TexPool is an external investment pool operated by the Texas Comptroller of Public Accounts and is not SEC registered. The Texas Interlocal Cooperation Act and the Texas Public lnvestments Act provide for creation of public funds investment pools and permit eligible governmental entities to jointly invest their funds in authorized investments. The fair value of investments in the pool is independently reviewed monthly. At September 30, 2000, the fair value of the position in TexPool approximates fair value of the shares. B. Receivables Receivables as of year end, including the applicable allowances for uncollectible accounts, are as follows: General Debt Service Total Property taxes receivable $ 3,560 $ 9.768 $ 13.328 Trade accounts receivable $ 589.835 $ 5 589,835 Less: allowance for uncollectibles (133,403) (1 33.403) S 456.432 $ $ 456,432 Receivable from other governments $ 19,555 $ $ 19.555 Miscellaneous receivables $ 36,558 5 5 36,558 C. Fixed Assets Activity in the general fixed assets account group for the District was as follows for the year ended September 30,2000: Balance Balance Land Buildings Furniture and fixtures Machinery and equipment Autos and trucks Water system Sanitary wastewater system Drainage system Engineering fees District Organization Total ~~ 9130199 Additions Disposals 9/30/00 $ 248,093 $ - $ 5 248.093 TROPHY CLUB MUNICIPAL UTlLlW DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30,2000 D. Interfund Receivables and Payables There were no interfund receivable balances as of September 30. 2000 E. LONG-TERM DEBT 1. Combination Tax and Revenue Bonds The District periodically issues combination tax and revenue bonds for general uses and expansions of the system. This debt for the bonds is recorded in the general long-term debt account group (to be repaid from a combination of property tax revenue and revenues of the water and waste water utility system). Combination bonds are as follows: Water works and sewer system combination unlimited tax and revenue bonds, Series 1993, with interest rates ranging from 3.25% to 5.9%, due through 2007. $2,595,000 Water works and sewer system combination unlimited tax and revenue refunding bonds. Series 1997, with interest rates ranging from 4.096 to 5.0%. due through 2011. including related capital appreciation bonds. 3.415.000 Total combination tax and revenue bonds Less unaccreted discount Total general long-term debt net 2. Other general long-term debt The District periodically issues other forms of long-term debt including contractual obligations. and public property finance contractual obligations, which are unsecured. The debt for the bonds is recorded in the general long-term debt account group (to be repaid from revenues of the water and waste water utility system). Such other debt is as follows: Public property finance contractual obligations, Series 1996, with interest rate of 5.50%, due through 2006. $ 344.000 Public property finance contractual obligations, Series 1999, with interest of 5.5096, due through 2006. 60,000 Total other general long-term debt $ 404.000 3. Changes in General Long-Term Debt During the year, the following changes in general long-term debt occurred: Balance Balance 9/30/99 Additions Payments 9/30/00 Combination tax 8 revenue bonds $ 6,465,000 $ $ (455,000) $ 6,010,000 Discount on bonds (1 71.470) 22,971 (1 48.499) Net combination bonds 6,293,530 (432,029) 5,861,501 Other general long-term debt 454,000 (50,000) 404,000 6,747,530 (482,029) 6,265,501 Note payable 33,630 (1,404) 32,226 $ 6,781,160 $ $ (483.433) $ 6,297.727 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEhiBER 30,2000 4. Debt Service Requirements The requirements to amortize all bonds and contractual obligations outstanding as of September 30. 2000 are summarized below: Year Endinq September 3%. Principal Interest Total 2001 $ 567.000 $ 296.913 $ 863.913 2002 639,000 268;973 907;973 2003 696,000 236.915 932,915 2004 729,000 201,484 930,484 2005 699.281 231,413 930,694 Thereafter 3,083,719 506,135 3,589.854 Total 6,414,000 $ 1,741.833 $ 8.155.833 Discount (1 48.499) 5. Defeased Debt In prior years, the District has advance refunded previously issued debt. As a result, the refunded bonds were considered to be defeased and the liability was removed from the general long-term debt account group. At year end $3,080,000 defeased debt remained outstanding. 6. Additional Long-term Debt Disclosure Tax and revenue bonds authorized and unissued as of September 30,2000 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 outstanding bonds are callable for redemption prior to maturity at the option of the District as follows: Series 1993 -All maturities from 2003 to 2007 are callable in principal increments of $5.000 on or after September 1, 2002 at par plus unpaid accrued interest to the fixed date for redemptions. Series 1996 -All maturities are callable at anytime in principal increments of $1,000 plus unpaid accrued interest to the fixed date for redemptions. Series 1997 -All maturities from 2008 to 2011 are callable in principal increments of $5,000 on or after September 1, 2007 at par plus unpaid accrued interest to the fixed date for redemptions. 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 setvice requirements for the year ended September 30,2000. IV. OTHER INFORMATION A. Risk Management The District is exposed to various risk of loss related to torts; theft of, damage to, and destruction of assets; business interruption: errors and omissions; injuries to employees; employee health benefits; and other claims of various nature. Commercial insurance is purchased for the iiks of loss to which the District is exposed. Any losses reported but unsettled or incurred and not reported, are believed to be insignificant to the District's general purpose financial statements. TROPHY CLUB MUNICIPAL UTlLlN DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30,2000 B. 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 $3,600 for 2000. C. Related Party Transactions All employees of the Trophy Club Entities (MUDI. MUDI, and the Town of Trophy Club. Texas) (the 'Town") are provided by and shared with the Town. The Town does not assess the MUDS operating funds for incidental costs, including maintenance of books and records. Related party receivables and payables at September 30. 2000 were as follows: Fund Related Party Due From (To) General Fund MUD 2 $ 5,710 General Fund Town of Trophy Club 5 13.845 General Fund Town of Trophy Club 5 (94,956) As discussed in Note G below, Trophy Club/Wastlake Department of Public Safety (DPS) began operations on October 7. 1999. During the year. MUD 2 contributed 5346,209 for DPS operations (including 519,780 to replace worn equipment). DPS paid $78,031 to MUD 1 as operating lease payments sufficient to make scheduled payments to MUD1 equipment creditors. Asurnrnary of DPSfinancial position and results of operations is provided in Note G. D. Contingent Liabilities The District is currently not subject to any pending litigation. However, the District is an interested party to several administrative hearings at year end. Although the outcome of these matters is not presently determinable, it is the opinion of the District's counsel that resolution of these matters will not have a material adverse effect on the financial condition of the District. E. Concentration Of Credit Risk Property taxes and accounts receivable for utilities are due from citizens and businesses within the District's boun anes Risk of loss is immaterial due to wide dispersion of receivables and policies which address procedures for filing propeqtyiai liens or utility service cut-off. F. Contracts Under the terms of a contract dated September 19, 1991, MUD 1 purchased 3,382 unused waste water taps from a bankrupt developer. MUD1 had agreed to hold and sell to MUD 2 not less than 1,082 taps for the purchase price paid by MUD 1 plus interest from the date of purchase at a rate of 6.7989%. MUD 2 had an exclusive right to purchase these taps until September 19, 1998, after which time MUD 2 has the right of first refusal on future purchase of unused taps. Through September 30,2000. MUD 2 has purchased 540 taps. $28,754 of revenue for the year ended September 30, 2000 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 tax revenue from new construction in the Salana complex exceeds the carlying cost of these 900 connections, this revenue stream will cease. Under the terms of a contract whereby MUD 1 and MUD 2 sold an unused portion of the water supply system to the Cty of Roanoke, Texas, the City of Roanoke will make annual payments to the Master District account of 523,663 including interest through 2006. At September 30, 2000, the District's share (60%) of the receivable was $68.730. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STAEMENTS SEPTEMBER 34 2000 G. Change in OperationsjJoint Venture Effective October 1, 1999, the District entered into a joint venture in participation with MUD 2, the Town of Trophy Club. (the "Trophy Club Entities") and the City of Westlake, Texas. Each of the Trophy Club Entities made contributions of assets with related long-term liabilities to the Trophy Club~Westlake Department of Public Safety Joint Venture (DPS"). Each entity is obligated to contribute a prorata share DPS operating budget based upon the relationship of their respective assessed real and personal propelty values (police protection -Town of Trophy Club and Town of Westlake; fire protection -Trophy Club Entities and Town of Westlaka with certain adjustments). The initial term of the venture is for five years and renews annually for another five year term until notice of withdrawal by a venturer. Upon termination of the venture, the Trophy Club Entities are entitled to have contributed assets with related debt returned to them. The agreement determining the appointment of the venture's board of directors precludes any single entity from imposing its will on the operations of the venture. Each of the entities provided equipment to be used by DPS. Certain equipment contributed is encumbered by debt. DPS is responsible for making operating lease payments in amounts sufficient to make required payments to creditors. The following is a summary of financial position and results of operations for DPS as of and for the year ended September 30, 2000: Assets Liabilities Equity 5 407,717 Revenue Service revenue 458.725 Intergovernmental grant 201,700 Contributions from participants 1,736,603 Interest and miscellaneous 8,423 2.405.451 Expenditures Public safety and court 2.1 73,436 Excess of Revenue Over Expenditures 232,015 Debt Proceeds 175,702 $ 407,717 H. Subsequent Event Reorganization of Water and Sewer Operations MUD1 has consistently accounted for the operations of the water and sewer systems of MUD1 and MUM in the Master District Fund. Effective October 1. 2000. MUD1 and MUD2 created a Master District Joint Venture that is external to MUD1. This new entity, will operate the water and sewer activities as well as maintain all records relating to such operations. Other operations of the MUDS will continue as before. MUD1 and MUD2 will each appoint 3 representatives to the Master District. In the future, the Master District will prepare financial statements for its exclusive operations. THIS PAGE INTENTIONALLY LEFT BLANK SUPPLEMENTARY INFORMATION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 SUPPLEMENTARY SCHEDULES INCLUDED WITHIN THIS REPORT SEPTEMBER 30,2000 (D) Notes required by the TNRCC in the Annual Audit Report Requirements for Texas Water Districts and Authorities are incorporated into the notes presented as part of the General Purpose Financial Statements. (EJ 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 fvted assets and organizational costs. (J) General long-term debt service requirements - by year (Q 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) 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 TNRCC. (P) Combining schedules (Q) Individual General Fund account financial statements, TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (E) SERVICES AND RATES SEPTEMBER 30,2000 1. Services provided by the District: rn Retail Water rn Wholesale Water rn Drainage Retail Wastewater Wholesale Wastewater Irrigation ParkslRecreation Fire Protection Security Solid WasteIGarbage Flood Control Roads Participates in joint venture, regional system and/or wastewater service (other than emergency interconnect) Other 2. Retail Rates Based on 518" Meter: Retail Rates Not Applicable Most prevalent type of meter (i not a 518") NIA Flat Rates per 1,000 Minimum Minimum Rate Gallons Over Charge Usage Y/N Minimum Usage Levels WATER: 5 9.00 0 No 0.47 0 to 3,000 0 No 1.92 3,001 to 20,000 0 No 2.18 20,001 to + Note: Out of district rates are determined by contract. WASTEWATER: 9.00 0 No 0.47 0 to 3,000 No 1.79 3,001 to 10.000 GOLF COURSE: SURCHARGE: District employs winter averaging for wastewater usage? Yes No rn Total water and wastewater charges per 10,000 gallons usage (including surcharges). First 10,000 gallons used Next 10,000 gallons used Next 10,000 gallons used and subsequent Maximum residential wastewater charge is for 10,000 gallons or $26.52. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (E) SERVICES AND FlATES (Continued) SEPTEMBER 30,2000 3. Retail Service Providers: Number of retail water and/or wastewater* connections within the District as of the fiscal year end. Provide actual numbers and single family equivalents (ESFC) Inactive Active Active Connections Connections (ESFC) (ESFC) " Single Family 1,127 1.127 0 Multi-Family 12 99 0 Commercial 64 1276 0 Other - recreational centers, qovernment & 28 165 0 TOTAL 1,231 2.667 0 Number of connections relates to water service, if provided. Otherwise, the number of wastewater connections should be provided. * "Inactive" means that water and wastewater connections were made, but service is not being provided. * Certain groupings of the active connections have been changed to more accurately reflect the descriptions. Thus, prior year and current year totals are not consistent. 4. Total water consumption (in thousands) during the fiscal year: Gallons pumped into system: Gallons billed to customers: 5. Standby Fees: Does the District Assess standby fees? Yes El No I7 For the most recent full fiscal year, FY 2000: Debt Service Operations and maintenance Total levy Total Collected Percentage Collected Total levy Total Collected Percentage Collected Have standby fees been levied in accordance with Water Code Section 49.231, thereby constituting a lien on property? yes C] No [Xlm * Standby fees are levied by the District and constitute a lien under recorded deed restrictions or covenants pursuant to Section 293.149 of Title 30 of Texas Adminktrative Code. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (E) SERVICESAND RATES (Continued) SEPTEMBER 30,2000 6. Anticipated sources of funds to be used for debt service payments in the District's following fiscal year: a. Debt Service Tax Receipts 5 752,574 b. Surplus Construction Funds 0 c. Water and/or Wastewater Revenue d. Standby fees e. Debt Service Fund Balance To Be Used 0 f. Interest Revenues 0 g. Other (Describe) Proceeds from instalment Sale of System Assets 14.197 Annual Contractual Payment from Developer 28,574 TOTAL ANTICIPATED FUNDS TO BE USED $L9&345 7. Location of District: Counties in which district is located: Denton. Tarrant. Is the District located entirely within one county? Yes No €4 Is the District located within a city? Not at all Entirely Partially El City in which district is located. Town of Trophv Club. Town of Westlake. Is the District located within a city's extra territorial jufisdiction (ETJ)? Entirely [7 Partially [7 Not at all Unknown H ETJs in which district is located. Is the General Membe~hip of the Board appointed by an office outside the District? Yes No H If yes. by whom? CURRENT Personnel Professional fees: Auditing Legal Engineering TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (9 SCHEDULE OF GENERAL FUND EXPENDITURES SEPEMBER 30.2000 Master District Fire Operating Department Department Department Current Year Prior Year Purchased services for resale: Bulk water purchases 753.487 753,487 610,959 Contract services: Tax administration fee Utilities and telephone Repairs and maintenance Other operating costs Administrative expenditures: Directors fees 4,944 4,944 2,861 Office supplies 9,256 369 9,625 7,760 Insurance and bonds 18,445 3,100 21,545 40,136 Other admin.expendiures 128,421 322 5,288 134,031 66,948 Contribution to Trophy Club1 Westlake Department of Public Safety Joint Venture 326,439 326,439 Capital outlay Debt service 80,404 TOTAL EXPENDITURES Number of employees employed by the District: Full time None * Part time None * * The District contracts with the Town of Trophy Club, Texas which provides all necessary employee positions TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (GI SCHEDULE OF TEMPORARY lNVESTMENTS SEPTEMBER 30,2000 ldentiiication Interest Maturity Balance Accrued Interest Funds Number Rate Date End of Year End of Year General Fund TexPool . - . . . - - . TexPool TexPool TexPool Total 061 33-9296 6.5573% Demand $ 844.444 Paid daily 06133-1200 6.5573% Demand 5.550 Paid daily 06133-3821 6.5573% Demand 21 0 Paid daily 061 33-2489 6.5573% Demand 1,035,351 Paid daily 1,885.555 Debt Service Fund TexPool 06133-3333 6.5573% Demand 3.586 Paid Daily Total - All Funds $ 1,889,141 TROPHY CLUB MUNICIPAL UTlLlN DISTRICT NO. 1 (H) ANALYSIS OF TAXES LNlED AND RECEIVABLE SEPTEMBER 34 2000 General Fund Debt Operations Fire Total Service Total Taxes receivable, beginning of year 1999 tax levy Total to be accounted for Less collections, write offs 8 adjustments: Current year Prior years Total Taxes receivable, end of yea1 Taxes receivable by year 1988 and prior 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Taxes receivable, end of yea1 Properly valuations (in 000's): Land Improvements Personal property Exemptions Tax rate per $100 valuation: Operations Fire Department Debt Service Total tax rate per $100 valuation Tax Levy: Percent of taxes collected to taxes le\n'ed: TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (H) ANALYSIS OF TAXES LEVIED AND RECEIVABLE (Continued) SEPTEMBER 30.2000 Tax rate for any other special district which (a) encompass less than a county, (b) provides 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 Total rate (s) of special districts $ Tax rates for all overlapping jurisdictions. Include any taxing entities which overlap 10% or more of the District Denton Tarrant County County County Dentonflarrant 0.23504 0.26484 City Town of Trophy Club 0.46051 School District Northwest ISD/Carroll ISD 1.70472 1.79000 2.40027 2.05484 Special Districts not included above Hospital District 0.23407 Tarrant County Junior College 0.10641 Total Special Districts 0.34048 Total District Tax Rate 0.24000 0.24000 Total Overlapping Tax District 2.64027 2.63532 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (I) ANALYSIS OF CHANGES IN GENERAL FIXED ASSflS SEPTEMBER 30,2000 Balance 9/30/99 Balance Additions Disposals Physical Facilities: 9/30/00 Land $ 305,103 $ $ Buildings 249,686 $ 305.103 Water system 5,622,701 249,686 7.907 Sanitary wastewater system 5,630,608 7,600,060 18,555 Drainage system 7,618,615 1,996,730 1,996,730 Machinery and equipment 552,589 24,153 Autos and trucks 929.074 576.742 24,980 Furniture and fixtures 954,054 66,392 Engineering fees 763.324 66,392 Total Physical Facilities 18,085,659 763.324 75,595 18,161,254 District Organizational Costs - Creation Period: Engineering and surveys 10,991 10,991 Filing fees, licenses, legal notice 8 permits 2,640 Legal fees 13.725 2,640 Director fees and per diem 400 13,725 Other msts 400 361 361 District Organizational Costs - Construction Period: Legal fees 103,492 Financial consulting fees 161.513 103,492 Operating 161.513 19,461 Bond interest 206,017 19,461 Amortized bond dismunt 206,017 4,088 Total District Organizational Costs 4.088 522.688 522,688 Total Physical Facilities 8 organization costs $ 18,608,347 $ 75,595 $ $ 18,683,942 Amounts Provided By: General Fund: Cedicated by developers Revenue Debt Service Fund - Revenue Capital Projects Fund: Bond proceeds Revenue Total Amounts Provided Balance 9/30/99 Balance Disposals Additions 9/30/@3 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS SEPTEMBER 30,zooo Series 1993 Combination Tax Bonds Due During Fiscal Principal Due Interest Due Years Ending I-~ep Mar 11Sep 1 Total TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (J) GENERAL LONG-TERM DEBTSERVICE REQUIREMENTS - BY YEARS (Continued) SEPTEMBER 30,2000 Series 1996 Public Property Finance Contractual Obligations Due Durina Fiscal Princioal Due Interest Due Years D id in^ l-'Sep Mar 1ISep 1 Total TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (Continued) SEPTEMBER 30.2000 Series 1997 Combination Tax Bonds Dm During Fiscal Principal Due Interest Due Years Ending I -Sep Mar 1ISep 1 Total Discount TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (Continued) SEPEMBER 30,21700 Series 1999 Public Property Finance Contractual Ob 'gatons DLe Ding Fisca. Princpal DL~ Interest DJ~ Years End'ng I-Sep Mar 1ISep 1 Total TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (Continued) SEPTEMBER 30,2000 Annual Requirements for All Series Due During Fiscal Total Total Total Princi~al Years idi in^ Principal Due Interest Due & Interest due 201 1 380,000 18;620 398i620 6,414,000 5 1,593,334 $ 8,007.334 Discount (1 48,499) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (q ANALYSIS OF CHANGES IN GENERAL LONG-TERM SEPTEMBER 30,2000 Series Series Series Series 1 993 1996 CO's 1997 Tax 1999 CO's Total Interest rate 3.25-5.9% 5.50% 3.25-5.9% 5.50% Date interest payable 311 & 911 1211 & 611 311 & 911 411 9/1/00 to 12/1/99 to 9/1/98 to Maturity date 9/1/1 I 12/1/06 911 /I I 4/1/06 Bonds outstanding at beginning of year $2,895,000 $ 384.000 $3,398,530 $ 70,000 $6,747,530 Accretion of capital appreciation bonds 22,971 22.971 Bonds sold during current vear Retirements of principal (300,000) (40.000) (155,000) (1 0,000) (505,000) Bonds outstanding at end of year $2,595,000 $ 344.000 $3,266,501 $ 60,000 $6,265,501 Retirements of interest $ 160,565 $ 20,017 5 136,790 $ 3,850 $ 321,222 TROPHY CLUB MUNICIPAL UTlLlN DISTRICT NO. 1 (KJ ANALYSIS OF CHANGES IN GENERAL LONG-TERM (Continued) SEPTEMBER 30,2000 Paying agents Name & City: Series 1989, Series 1993, and Series 1997 Series 1996 and 1999 Chase Bank of Texas, N.A P.O. Box 219053 Dallas, Texas 75221-9053 Texas National Bank P.O. BOX 92840 Southlake, Texas 76092 Tax Other Refunding Bond Authorii Bonds Bonds Bonds Amount authorized by voters $ 12,344,217 $ 5 Amount issued (1 1 ,1 15,000) Remaining to be issued 5 1,229,217 $ $ The general obligation bonds were authorized on October 7, 1975. Debt Service Fund cash and cash equivalents balance as of September 30.2000: Average annual debt service payment (principal & interest) for remaining term of debt: REVENUE AND OTHER SOURCES Water end sewer service Inspection B tap connection fees Ad valorem property taxes Penalties and Interest Settlement interest earned Miscellaneous and other Proceeds from debt Total Revenue and Other Sources TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (L) COMPARATIVE SCHEDULES OF REVENUE AND EXPENDITURES - GENERAL FUND SEPTEMBER 30,2000 EXPENDITURES AND OTHER USES Purchased water and sewer services Salaries, wages and employee benefits Professional fees Recurring operaling expenditures Contribution lo Trophy Club / Westlake Dept. of Public Safety Joint Venture Capital outlay Debt service Payment lo escrow agent Total Expendilures and Other Uses Excess (Deficiency) of Revenues and Other Sources Over (Under) Expenditures and Other Uses Amounts Percent of total revenue 2000 1999 1998 1997 1996 2000 1999 1998 1997 1996 ----- $ 2,384,991 $ 2,100,966 $ 2,062,330 S 1,660,973 S 1,747,518 79.3% 73,156 77.8% 58.056 83.7% 64.403 94.455 83,981 63.805 39.583 2.1% 3.356 3.256 2.256 1.9% (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (L) COMPARATIVE SCHEDULES OF REVENUE AND EXPENDITURES - DEBTSERVICE FUND (Continued) SEPTEMBER 30,2000 Amounls Percent of tolal revenue REVENUE AN0 OTHER SOURCES 2000 1999 1998 1997 1996 2000 1999 1998 1997 1996 Ad valorem property laves $ 604,423 $ 738.181 $ 700.912 $ 649.257 $ 825,730 95.5% 96,756 96.50:. 15.956 95.6% Penalties and inlerest 4,800 4,836 7,033 2.158 1.537 0.8% 0.6% 1.056 0.156 0,276 Interest earned 23.642 20,326 18.601 17,174 26,984 3.7% 2.7% 2.6% 0.4% 4.1% Miscellaneous and other 0.0% 0.0% O.OSb 0.056 0.0% Proceeds from debt Issue 3,403,433 0.0% 0.05'. 0.0% 83.6% 0.0% Total Revenue and Other Sources 632,865 763.343 726.546 4.072.022 654,251 100.0% 100.0% 100.0% 100.0% 100.0% EXPENDITURES AND OTHER USES Principal reliremenl 455.000 400,000 300.000 405.000 380.000 71.9% 52.4% 41.3% 9.996 58.156 Interest and fiscal charges 298,715 316,260 341.996 330,772 480,414 47.256 41.4% 47.1 % 8.1 ?& 73.4% Payment to refunding bond agent 3,337,787 0.0% 0.0% 0.056 82.00:. 0.0% Debt issue cosls 59.663 0.0% 0.0% 0.096 1.556 0.096 Total Expendilures and Olher Uses 753.715 716,260 641,998 4,133,202 860,414 119.155 93.8% 88.4% 101.5% 131.546 Excess (Deficiency) of Revenues and Other Sources Over (under) Expenditures and Other Uses $ (120,850) $ 47.083 $ 84,548 $ (61.180) $ (206,163) -19.1% 6.2% 11.6% -1.5% -31,5?6 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (M) INSURANCE COVERAGE SEPEMBER 30,2000 Amount of Type of awerage Coverage Type of Policy Corporation Clause Name StocWMutualWnsurano DISTFiICT Employee Honesty, Uc.: Tax assessor/mlledor Public H~dal (each director) Bookkeeper bond Redland Stock None Director and Officers Liability 5,000,000 BuiMing 8 Contents and Water System 5,724,000 Comprehensive General and Contractual Liabilii: General Aggregate 4,000,000 Products &Completed Operations Aggregate 4,000,000 Personal &Advertising Injury 2,000,000 Fire Damage %,Ow Medical Expense 5.000 Contrador's equipment 58.573 Umbrella Liability General Aggregate 4,000,000 Products 8 Completed Operations Aggregate 2,000,000 Pollution liability 300,000 Commercial Automobile Liabilky 1,0(10,0W National Union Stock None New Hampshire Stock 100% New Hampshire Stock None New Hampshire Stock 90% New Hampshire Stock None New Hampshire Stock None New Hampshire Stock None TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (N) BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS SEPTEMBER 30,2000 Complete District Mailing Address: 100 Municipal Drive. Trophy Club. 'Texas 76262 District Business Telephone Number: Metro (817) 430-101 1 Fees and Term of Office Expense Title Resident ElectedIExpires Reimbursement a: of Name and address or Date Hired 9/30!00 Year End District? -- -- Board Memberr Constance S. White 119 Trophy Club Drive Trophy Club. TX 75262 5/98 - 5/02 1 1.080 Director Yes James Hase 1033 Sunset Drive Secretaby: Trophy Club, TX 75262 5/00 - 5/04 5 300 Treasurer Yes Dean Henry 308 Oakmont Drive - I rophy Club, TX 76262 5/00 - 5/04 5 894 ?resiclent Ye3 Dave Robison 2 Crickett Court Trophy Club, TX 7662 5/98 - 5/02 $ 1,320 Director Y €5 Wesley W. Obermeier 207 Oakmont Trophy Club. TX 76262 5/98 - 5/02 $ 1.400 Vice President YES Note: No director is disqualiied from serving on this board under the Texas Water Ccde (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (N) BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS (Continued) SEPTEMBER 30,2000 Fees and Term oi Office Expense Title Elected/Expires Reimbursement at PIame and address or Date Hired 9/30k Year End Key Administrative Personnel Cathy Morgas 2158 Wedgewood Drive District Grapevine, TX 76051 211 191 $ 75,290 Manager Assumed responsibility of District Manager on May 8. 2000 Denton County Appraisal District P.0. BOX 2816 Denton, TX 76202 4/1/81 $ 9,724 Appraiser Rutledge Crain 8 Company. PC 2401 Garden Park Court. Suite B Arlington. TX 76013 Carter 8; Burgess P.O. BOX 985006 Fort Worth, TX 76185-5006 Whitalier, Chalk, Swindle 8 Sawyer. LL.P. 3500 City Center, Tower II Fort Worth, TX 76102 Booth 8 Dillon 106 Saliish Ct. Aransas Pass, TX 78336 Cowles &Thompson 4000 Nations Bank Plaza 901 Main Street Dallas, TX 75202 Booth. Ahrens & Werkenthin. P.C. 515 Congress Avenue Austin, TX 78701 9/5/97 $ 6,750 Auditors Consulting Engineer Legal Counsel Legal 1 0/1/99 5 1.526 Counsel Resident Of District? Legal 10/1/99 5 885 Counsel No ANNUAL FILING AFFIDAVIT THE STATE OF TEXAS 1 } COUNTY OF DENTON 1 , .. . .... . . .. . .~ . . .~ 1, , . ...s. . ~ean tIenry, President (Name of Duly Authorized District Representative) of the Trophy 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 xtilay of February . 200L its annual audit report of the fiscal year or period ended Se~tember 30. 2000 and that copies of the annual audit report have been filed in the district office, located at 100 Municipal Dr~e, Trophy Club. Texas. 76262. This 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. i / Date: Feb. 23 ,2001 f District Representative) DeanHenry ! (Typed Name and Title of District Official) Sworn to and subscribed to before me this %day of February h , k~ignature of Notary) !, My Commission Expires On: 10 ) .200). Notary Public in and for the State of Texas. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 DEPARTMENTAL BALANCE SHEET GENERAL FUND SEPTEMBER 30, 2000 Master District ASSETS Assets: Cash and cash equivalents Investments Receivables (net of allowances for uncollectihles): Taxes Accounts Miscellaneous lnfergovemmental Due from other funds Prepaid items Restricted assek: Cash and cash equivalents Loan receivable fmm government Note receivable Contract receivable Total Assets LIABILITIES AND EQUITY Liabilities: Accounts payable Accruedllabilities Liabilities payable from restricted assek: Customer deposifs Due to other funds Due to othergovernments Deferred revenue Total Liabilities Equiw Fund balances: Reserved forprepaid items Reserved for loan receivable Reserved fornote receivable Reserved Unreserved, undesignated Total equity Total Liabilities 8 Equity Fire Department Operating Fund Interdepartmental Eliminations Totals Se~tember 30. Se~tember 30. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 DEPARTMENTATSTATEMENTOF REVENUES, EXPENDITURES AND CHANGES INFUNDBALANCES-GENERALFUND YEAR ENDED SEPTEMBER 30,2000 Revenue: Water. sewer, fire department Standby fees Inspection and tap connections Ad valorem taxes Miscellaneous revenues Interest Total revenues Expenditures: Current Administrative Water and sewer Fire department Contribution to Trophy ClubhVestlahe DPS Total Current Expenditures Capital Outlay: Administrative Water and sewer Fire department Total Capital Outlay Debt service: Principal Interest Total Debt Service Total expenditures Excess (deficiency) of revenues (under) expenditures Other financing sources (uses): Debt pmceeds Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other financing uses Fund balanceslequity. October 1 Fund balancedequity, September 30 Master Disbict Fire Department Totals September 30, September 30. 2000 1999 Operating Fund Interdepartmental Eliminations TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 DEPARTMENTAL STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET (GAAP BASIS) AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30,2000 Master District Variance Favorable (Unfavorable) Revenue: Water, sewer, fire department Standby fees Inspection and tap connedions Ad valorem taxes Miscellaneous revenues Interest Total revenues Budget Actual Expenditures: Current Administrative Water and sewer Contribution to Trophy Club/Westlake DPS Total Current Expenditures Capital Outlay: Administrative Water and sewer Total Capital Outlay Debt service: Total expenditures Excess (deficiency) of revenues (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expentiires and other financing uses Fund balances/equity, October 1 Fund balanceslequity, September 30 Operating Fund Variance Favorable Budget Actual (Unfavorable) Totals Budget Actual Variance Favorable (Unfavorable)