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HomeMy WebLinkAboutFY Ended September 30, 2003TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 GENERAL PURPOSE FINANC1P.L STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2003 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 GENERAL PURPOSE FINANCIAL STATEMENTS September 30,2003 TABLE OF CONTENTS FINANCIAL SECTION Independent Auditors' Report General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups Comoined Statement of Revenues Ehpend:t-res and Cnanges in F~nd Balances -All Governmental F~nd Types Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (GAAP Basis) -General Fund Notes to General Pur~ose Financial Statements Supplementary Information - Information Required by Texas Commission on Environmental Quality (TCEQ) (C) Auditors' Report on Supplemental Schedules is incorporated in "Independent Auditors" Report on page 1. (D) Notes required by the TCEQ 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 Temporaty 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 THIS PAGE INTENTIONALLY LEFT BLANK RUTLEDGE CRAlN & COMPANY, PC CERTIFIED PUBLIC ACCOUNTANTS 2401 Garden Park Couri, Suile B ArlinQlon. 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 general purpose financial statements of Trophy Club Municipal Utility District No. 1, as of September 30, 2003 and for the year then ended. These general purpose financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on the generai purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall 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 ail material respects, the financial position of Trophy Club Municipal Utility District No. 1, as of September 30. 2003, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying supplemental information listed in the table of contents is presented for purposes of additional analysis and is 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 statements and, In our opinion, is fairly stated in all material respects in relation to the general purpose financiai statements taken as a whole. October 31, 2003 1 Members: Metro (817) 265-9989 American Institute of Certified Public Accountanls Fax (817) 861-9623 Texas Sociely of Certilied Public Accounlants . ..-t I I I v~uu trau8rlulrr\~ u 111-1 l I U13 1 K1L I NU. 1 COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2003 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2002) Governmental Fund Types General Debt Service ASSETSANDOTHERDEBITS Assets: Cash and cash equivalents Investments Receivables (net of allowances for uncollectibles): Taxes lntergovemmental Miscellaneous Prepaid items Note receivable Contract receivable Fixed assets Other Debits: Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total Assets LIABILITIES, EQUITY AND OTHER CREDITS Liabiiities: Accounts payable Accrued liabilities Compensated absences Liabiiities payable from restricted assets: Due to other governments Deferred revenue General obligation bonds payable Contractual obligations payable Notes payable Capital leases payable Total Liabilities Equity and other credits: investment in general fixed assets Fund balances: Reserved for note receivable Unreserved, undesignated Total equity and other credits Total Liabilities. Equity 8 Other Credits Fund Fund The accompanying notes are an integral part of this statement. 2 Totals Account Groups General General Lana- < Fixed Assets Term Oeht (Memorandum Only) September 30. September 30. This page intentionally left blank TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINED STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND lYPES YEAR ENDED SEPTEMBER 30. 2003 (WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2002) Totals Governmental Fund Types (Memorandum Only) General Debt Service September 30, September 30. Revenues: Ad valorem taxes, penalties and interest lntegovemmenlal Miscellaneous revenues Interest Total revenues Expenditures: Current: Administrelive Fire department Debt service: Principal Interest Paying agent fees Bond issuance cosls Total expenditures Fund Fund 2003 2002 -- Excess (deficiency) of revenues over (under) expenditures (1,086,575) (54.035) (1,140,610) 294.479 Olher financing sources (uses): Operating transfers in Operating lmnsfers out Proceeds of refunding bonds Payment to refunded bond escrow agent Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other financing uses (1,086,575) 59.231 (1.027.344) 294,479 Fund balances. October 1 Fund balances, September 30 The accompanying notes are an integral par1 of this statement. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEAIENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGETIGAAP BASIS) AND ACTdAL GENERAL FUND AND DEBT SERVICE FUND YEAR ENDED SEPTEMBER 30,2003 General Fund Variance Revenues: Ad valorem taxes, penalties and interest lntergovemmental Miscellaneous revenues lnterest Total revenues Expenditures: Current: Administrative Fire department Debt service: Principal Interest Paying agent fees Bond issuance costs Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of refunding bonds Payment to refunded bond escrow agenl Total other financing sources (uses) Excess oi revenues and other financing sources over (under) expenditures and other financing uses Fund balances, October 1 Fund balances, September 30 Budget Favorable Actual - (Unfavorable) The accompanying notes are an integral part of this statement. 6 EXHIBIT A-3 Debt Selvice Fund - Variance Favorable Budget Actual (Unfavorable) Totals (Memorandum Only) -- Variance Favorable Budget Actual (Unfavorable) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30,2003 C. Assets, Liabilities and Equity 1. Deposits and Investments 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 acquisition. 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 Deposit Insurance Corporation, or its successor; or, (B) 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 (l), pledged with third party selected or approved by the District, and placed through a primary government securities dealer. lnvestments 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 receivableslpayables" (i.e., the current portion of interfund loans) or "advances tolfrom other funds." All other outstanding balances between funds are reported as "due tohorn 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 1005'. 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, if 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 I, following the levy date. Taxes are due by January, 31, following the levy date. Property taxes are recorded as receivables when levied. Following is information regarding the 2001 tax levy: Adjusted taxable values $ 403.736.397 0&M tax levy 50.100015100 5 403.736 I&S tax levy $0.2000/$100 807,473 Total tax levy $0.3000/$100 5 1,211,209 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30,2003 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 general fixed assets account group at cost or estimated historical cost if purchased or constructed. Dedicated fixed assets are recorded at their estimated fair value at the date of dedication. Assets in the general fixed 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 TCEQ, capitalized costs Incurred in the creation of the District. The TCEQ requires capitalization as organizational costs for the construction period all costs incurred in the issue and sale of bonds, bond interest and amortized bond premium and discount, losses on sales of investments, accrued interest on investments purchased, attorney fees and some administrative expenses until construction and acceptance or use of the first revenue producing facility has occurred. 6. Compensated Absences It is the District's policy to permit employees to accumulate earned but unused vacation pay benefits. No liability is reported for unpaid accumulated sick leave. Vacation pay that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts not expected to be liquidated with expendable available financial resources are reported in the general long-term debt account group. No expenditure is reported for these amounts. 7. 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. 8. 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. 9. Memorandum Only-Total Columns Total columns on the general purpose financial statements are captioned as "memorandum only" because they do not represent consolidated financial 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. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30,2003 10. Comparative DatalReclassifications Comparative total data for the prior year have been presented in selected sections of the accompanying financial 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 year's presentation. II. 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 Debt Service Fund on the modified accrual basis. 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. Ill. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Cash, Cash Equivalents, and lnvestments At year end, the District's carrying amount of deposits was $52,144 and the bank balance was $52,159. 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. 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. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30,2003 At year end, the District's investments were as follows: GarrVinq &&& lnvestments not subject to categorization: Texas Local Government Pool System (TexPool) 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, 2003, the fair value of the position in TexPool approximates fair value of the shares. 8. Fixed Assets Activity in the general fixed assets account group for the District was as follows for the year ended September 30, 2003: Balance Balance Land Buildings Furniture and fixtures Machinery and equipment Autos and trucks Water system Sanitary wastewater system Drainage system Construction in progress Engineering fees District Organization Total 9/30/2002 Additions Disposals 9/30/2003 $ 248.093 $ - $ $ 248.093 C. Long-Term Debt 1. Combination Tax and Revenue Bonds/Contractuai Obligations 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 refunding bonds, Series 1997, with interest rates ranging from 3.25% to 5.90%, due through 201 1, including related capital appreciation bonds. $2,670,000 Water works and sewer system unlimited tax refunding bonds, Series 2003, with interest rates ranging from 4.0'3 to 5.0%, due through 2011, including related capital appreciation bonds. 1.790.000 Total combination tax and revenue bonds Less unaccreted discount Total long-term bonds TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30,2003 7. Advance Refunding During 2003, the District issued Series 2003 Unlimited Tax Refunding Bonds to advance refund the remaining $1,950,000 of 1993 Tax Revenue bonds then outstanding on April 9, 2003. The refunding will produce an additional $82,958 cash outflow over the life of the refunding bonds and produce an economic gain of $34,910. IV. OTHER INFORMATION A. Risk Management The District is exposed to various risks 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 risks 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. 6. Commitments The District follows the guidelines of the TCEQ in its dealings with developers. The District leases certain equipment and a modular building under the provisions of operating leases. Future minimum rental payments are $3,600 for 2003. C. 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 management's opinion that resolution of these matters will not have a material adverse effect on the financial condition of the District. D. Concentration Of Credit Risk Property taxes and accounts receivable for utilities are due from citizens and businesses within the District's boundaries. Risk of loss is immaterial due to wide dispersion of receivables and policies which address procedures for filing property tax liens or utility service cut-off. E. Contracts Under the terms of a contract whereby MUD 1 and MUD 2 sold an unused portion of the water supply system to the City of Roanoke, Texas, the City of Roanoke will make annual payments to the of $11,832, including interest, each to the districts' respective debt service funds through 2006. At September 30, 2003, the District's share (50%) of the receivable was $31,335. SUPPLEMENTARY INFORMATION This page intentionally left blank. TROPHY CLUB MUNiClPAL UTILITY DISTRICT NO. 1 SUPPLEMENTARY SCHEDULES INCLUDED WITHIN THIS REPORT September 30,2003 (D) Notes required by the TCEQ 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. (0) Management letter to Board of Directors. Annual Filing Affidavit This page intentionally left blank. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (E) SERVICES AND RATES September 30,2003 1. Sewices provided by the District: Retail Water [7 Wholesale Water rn Drainage Retail Wastewater $Vholesale Wastewater Irrigation ParksIRecreation Fire Protection Security [7 Solid WasteIGarbage Flood Control [7 Roads Participates in joint venture, regional system and/or wastewater service (other than emergency interconnect) Other 2. Retail Rates Based on 516 Meter: Retail Rates Not Applicable Most prevalent type of meter (if not a 518") NIA Flat Rates per 1 .OW Minimum Minimum Rate Gallons Over Charge Usage YIN Minimum Usage Levels WATER: $ 11.00 0 No $ 2.00 0 to 6,000 No 2.30 6,000 to 12,000 No 250 12,000 to 25,000 No 2.60 More than 25,OW NOTE: Out of district water rates are determined by contract, WASTEWATER: 11 .OO 0 No $ 2.00 0 to 6,000 No 2.30 6,000 to 12,000 No 2.30 More than 12,OW GOLF COURSE: 0 Yes /$I ,OW NIA 0 to 300,000 2.60 300,001 to + STORM DRAIN ASSESSMENT: $ 1.00 NIA Yes NOTE: All rates above were amended effective September 1, 2W2 District employs winter averaging for wastewater usage? Yes No l8 Total water and wastewater charges per 10,000 gallons usage (including surcharges) - effective September 30. 2002. First 10.000 gallons used $65.40 Next 10,000 gallons used 29.20 Next 10,000 gallons used and subsequent 25.50 Maximum residential wastswater charge is for 12,000 gallons or $36.20 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (E) SERVICES AND RATES (Continued) September 30,2003 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 1,167 1,167 0 Multi-Family 11 132 0 Commercial 79 245 0 Other - recreational centers, government 8 VFD 16 56 0 TOTAL 1.275 1,600 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. 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 iees? For the most recent full fiscal year, FY 2003: Debt Service Operations and maintenance Total levy $0 Total Collected $0 Percentage Collected 0% Total levy $1,211 Total Collected $1,188 Percentage Collected 98% Have standby fees been levied in accordance with Water Code Section 49.231, thereby constituting a lien on property? Yes No N* Standby fees are levied by the District and constitute a lien under recorded deed restrictions or covenants pursuant to Section 293.150 of Title 30 of Texas Administrative Code. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (E) SERVICES AND RATES (Continued) September 30,2003 6. Anticipated sources oifunds to be used ior debt service payments in the District's following fiscal year: a. Debt Service Tax Receipts $789,718 b. Surplus Construction Funds 0 c. Water andlor Wastewater Revenue d. Standby fees e. Debt Service Fund Balance To Be Used i. interest Revenues g. Other (Describe) 0 TOTAL ANTICIPATED FUNDS TO BE USED $_18D 7. Location of District: Counties in which district is located: Denton, Tarrant. Is the District located entirely within one county? Yes No lxl Is the District located within a city? Not at alln Entirely q Partially Ed City in which district is located. Town of Troohv Club. Town oi Westlake. Is the District located within a city's extra territorial jurisdiction (ETJ)? Entirely Partially Not at all Unknown Ed 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? TROPHY CLUB MUNICIPAL UTlLlN DISTRICT NO. 1 (F) SCHEDULE OF GENERAL FUND EXPENDITURES September 30,2003 CURRENT Personnel Professional fees: Auditing Legal Engineering Purchased services for resale: Bulk water purchases Contract services: Tax administration fee Fire Operating Department Department Current Year Prior Year Utilities and telephone 15,130 15.130 7.289 Repairs and maintenance 43.209 DPS Joint Venture Contribution Other operating costs Administrative expenditures: Directors fees 9.800 9,800 Office supplies 964 177 1,141 667 Insurance and bands 5,924 (370) 5,554 7.376 Other admin.expenditures 142,244 47,023 189.267 71,608 Capital outlay 991.374 991,374 461,564 Debt service TOTAL EXPENDITURES $ 751,696 $ 1,099,457 $ 1,851,153 $ 1,197.253 Number of employees employeed by the District: Full time Pari time None None Note: During 2002, MUD1 resumed responsibility for fire protection upon termination of the TC I W DPS Joint Venture. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I (G) SCHEDULE OFTEMPORARY INVESTMENTS September 30,2003 Identification Interest Maturity Balance Accrued Interest Funds Number Rate Date End of Year End of Year General Fund TexPool TexPool Total 61 3300002 1.31% Demand S 152.405 Paid daily 61 3300004 1.31 56 Demand 51,399 Paid daii; 203.804 Debt Service Fund TexPool 613300003 1.31% Demand 206.953 Paid Daily Total -All Funds $ 410.757 Taxes receivable, beginning of year 2002 tax levy Total to be accounted for Less collections, write ofis & adjustments: Current year Prior years Total TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (H) ANALYSIS OFTAXES LEVIED AND RECEIVABLE September 30, 2003 General Fund Debt Operations Fire Total Service Total Taxes receivable, end of year Taxes receivable by year 1993 and prior 1994 1995 1996 1997 Taxes receivable, end of year Properly valuations (in 000's): Land Improvements Personal property Exemptions Tax rate per $1 00 valuation: operations Fire Department Debt Service Total tax rate per $100 valuation Tax Levy: Percent of taxes collected to taxes levied: TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (H) ANALYSIS OFTAXES LEVIED AND RECEIVABLE (Continued) September 30,2003 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 5 Tax rates (per $100 net taxable value) for all overlapping jurisdictions. Include any taxing entities which overlap 10% or more of the District. Denton Tarrant County County County Dentonrrarrant 5 0.24897 $ 0.27250 City Town of Trophy Club 0.44051 School District Northwest iSD/Carroll ISD 1.83481 1.93500 2.52429 2.20750 Special Districts not included above Hospital District 0.23240 ~arrint County Comrn. College 0.1 3938 Total Special Districts 0.37178 Total District Tax Rate 0.30000 0.30000 Total Overlapping Tax District 5 2.82429 5 2.87928 Physical Facilities: Land Buildings Water system Sanitary wastewater system Drainage system Machinery and equipment Autos and trucks Furniture and fixtures TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (I) ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS September 30,2003 Balance 9/30/2002 Addilions Disposals Balance 9/30/2003 S 248,093 249.686 5,643,753 7,618,616 1,996,730 622.1 51 713,604 64.414 Engineering fees 837,127 837.127 Construction in Progress 531,359 963.191 1,494,550 Total Physical Facilities 18,805,330 963,191 (279.797) 19,488,724 District Orqanizational Costs - Creation Period: ~ngineering and surveys 10,991 Filing fees, licenses, legal notice &permits 2.640 Legal fees 13,725 Director fees and per diem 400 Other costs 361 District Organizational Costs - Construction Period: Legal fees 103.492 Financial consulting fees 161.513 Operating 19.461 Bond interest 206,017 Amortized bond discount 4.088 Total District Organizational Costs 522.668 Total Physical Facilities & organization costs S 19,328,018 $ 963,191 S (279.797) Amounts Provided By: General Fund: Dedicated by developers Revenue Debt Service Fund - Revenue Capilai Projects Fund: Bond proceeds Revenue Total Amounts Provided Balance Balance 9/30/2002 Disposals Additions 9/30/2003 $ (6,850,741) $ S $ (6.850.741) (3,283,105) 279.797 (3,003.308) (242,343) (242.343) (8,671,484) (963,191) (9,634,675) (280,345) (280.345) S (19,328,016) $ 279.797 $ (963.191) $ (20,Ol 1.412) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS September 30,2003 Series 2003 Unlimited Tax Bonds Due Durino Fiscal Princioal Due Interest Due Years ~iding 1 -5ep Mar 1ISep 1 Total Unaccreted discount TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (Continued) September 30,2003 Series 1996 Public Properly Finance Contractual Obligations Due During Fiscal Principal Due Interest Due Years Ending 1 -Sep Mar 11Sep 1 Total TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (Continued) September 30,2003 Series 1997 Combination Tax Bonds Due During Fiscal Principal Due Interest Due Years Ending I-Sep Mar 1ISep 1 Total 201 0 365.000 36,505 401,505 201 1 380.000 18,620 398,620 2,670,000 $ 524.315 3 3,194.315 -- Unaccreted discount (72.445)_ TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS -BY YEARS (Continued) September 30,2003 Series 1999 Public Property Finance Contractual Obligations Due During Fiscal Principal Due Interest Due Years ~ndin~ l-kep Mar 11Sep 1 Total TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (J) GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (Continued) September 30,2003 Annual Requirements for All Series Due Durino Fiscal Total Total Total Princi~al - Years Ending Principal Due Interest Due & Interest due 201 1 625.000 26,583 651,583 4,732,000 S 786.873 S 5,518,873 Unaccreted discount (79,436) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (K) ANALYSIS OF CHANGES IN GENERAL LONG-TERM September 30,2003 Series Series Series Series Series 1993 1996 CO's 1997 Tax 1999 CO's 2003 Tax Total Interest rate 3.25-5.9% 5.50% 3.25-5.9% 5.505'. 3.25% Date interest payable 311 8 911 1211 B 611 311 8 911 411 311 8 911 Maturity date Bonds outstanding a1 beginning of year 5 1,950,000 $ 258.000 $ 2,660,955 $ 40,000 5 $ 5,108,955 Accretion of capital appreciation bonds Bonds sold during current year 2,058,009 2.068.009 Retirements of principal (1.950.000) (46.000) (290,000) (10.000) (285,000) (2,581,000) Bonds outstanding at end of year 5 $ 212.000 5 2.597.555 $ 30.000 $ 1,783,009 $ 4,622.564 Retirements of interest 5 67,438 $ 12.890 S 110.460 5 2,200 5 21.761 5 214,749 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (K) ANALYSIS OF CHANGES IN GENERAL LONG-TERM (Continued) September 30,2003 Paying agents Name 8 City: Series 1989, Series 1997, and Series 2003 Series 1996 and 1999 General Obligation Bond Authority Bonds Amount authorized by voters $ 12,344,217 Amount issued (1 1,115,000) Remaining to be issued $ 1,229,217 The general obligation bonds were authorized on October 7, 1975 JP Morgan Chase P.O. Box 21 9053 Dallas. Texas 75221 -9053 First Financial Bank P.O. Box 92840 Southlake, Texas 76092 Debt Service Fund cash and cash equivalents balance as of September 30.2003: Average annual debt service payment (principal &interest) for remaining term of debt: REVENUE Water and sewer service lnspectlon &tap connsction fees Ad valorem property taxes Penalties and Interest Intergovernmental lntarest earned Sate of asssts Mlscwltaneous and other Proceeds from debt Total revenue TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (L) COMPARATIVE SCHEDULES OF REVENUE AND EXPENDITURES - GENERAL FUND September 30,2003 EXPENDITURES Purchased water and sewer services Salaries, wages and employee benefits Professlonsl fees Recurring apsrallng expenditures Contribution to Trophy Club I Wesllaks Dept. of Public Safety Joint Venture Capitnl outlay Debt service Payment to escrow agent Tatai Expandilures Excess (deficioncy) of revenues ovel (under) expenditures Total Active Retail Water and/or Waslewater Connections Amounts Percent of total revenue 2003 2002 2001 2000 1999 2002 2001 2000 1999 1996 ----- $ 5 S S 2,384,991 S 2,100,956 0.0% 0.0% 0.096 79.3% 73.1% 64,403 94,455 0.0% 0.0% 0.096 2.1% 3.396 (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (L) COMPARATIVE SCHEDULES OF REVENUE AND EXPENDITURES - DEBT SERVICE FUND (Continued) September 30,2003 Arnounts Percent ot total revenue REVENUE 2003 2002 2001 2000 1999 2002 2001 2000 1999 1998 Ad valorem property taxes S 792.142 S 753.137 $ 740,089 S 604.423 S 738,181 27.596 98.2% 91.5% 95.596 96.7% Penalties and interest 4.344 3.211 4,984 4,800 4,836 0.2% 0.4% 0.656 069b 0.6% interesl earned 6,958 10,458 23.352 23,642 20,326 0.306 1.4% 2.9% 3.796 2.796 Miscellaneous and other 9,197 40.295 0.3% 0.0% 5.0% 0.0% 0.0% Proceeds frorn deb1 issue 2,063,266 71.795 0.0% 0.056 0.00b 0.0% Total revenue 2,877,907 768,806 608,720 632,865 783,343 100.096 100.0% 100.0% 100.0% 100.096 EXPENDITURES Principal retirement 575,000 585,000 515,000 455,000 400,000 20.096 76.3% 63.7% 71.996 52.4% Interest and fiscal charges 200.344 252,ll 1 277.091 288,715 316,260 7.0% 32.94 34.3% 47.296 41.4% Payment to relundlng bond agent 1,950,000 67.896 0.0% 0.096 0.0% 0.096 Deb1 Issue costs 83.332 3.2% 0.0% 0.096 0.0% 0.0% Total Expendilures 2,818,676 837.111 792,091 753,715 716.260 97.9% 109.206 97.906 119.1% 93.9% Excess (deficiency) of revenues over (under) expenditures S 59.231 S (70,305) 9i 16,629 $ (120,850) S 47.083 2.1% -9.2% 2.195 -19.1% 8.2% TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (M) INSURANCE COVERAGE September 30,2003 Type of Policy Amount of Corporation Clause Type of coverage Coverage Name Stock/Mutual co-insur. Crime Declaralions: Texas Municipal League (TML) Mutual None Blanket employee dishonesty and bond forgery or alteration % 10,000 Director and offlcers liability 3,000,000 Texas Municipal League (TML) Mutual None Comprehensive and General Uability: Texas Municipal League (TML) Mutual None General aggregale 6,000,000 Products & completed operations aggregale Included Personal B advertising injury Included Fire damage Included Medical expense Included Each occurance 3,000,000 Pollution Liability 2,000,000 Texas Municipal League (TML) Mutual None Commercial Automobile Uability 1,000,000 Texas Municipal League (TML) Mutual None Building and contents, and water system 11,088,400 Texas Municipal League (TML) Mutual IOOSb Contractots equipment 280,950 Texas Municipal League (TML) Mutual 90% Trophy Club Master District Joint Venture has acquired insurance for risk of loss with MUD1 and MUD2 named as additional insureds. This statement, prepared from insurance policies and records is intended only as a descriptive summary; no expression of opinion as to the adequacy of the coverage is intended. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (N) BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS September 30,2003 Complete District Mailing Address: District Business Telephone Number: Name and address Board Members Constance S. White 119 Trophy Club Drive Trophy Club, TX 76262 Jim Hase 209 lnverness Trophy Club. TX 76262 Dean Henry 308 Oakmont Drive Trophy Club, TX 76262 Wesley W. Obermeier 207 Oakmont Trophy Club. TX 76262 Ted Neidenberger 1033 Sunset Trophy Club, TX 76262 100 Municipal Drive, Trophy Club, Texas 76262 Metro (682) 831-4600 Fees and Term of Office Expense Title Resident ElectedIExoires Reimbursement at of . , or Date Hired 913012003 Year End District? 5/02 - 5/06 $ 1,800 Director Yes Secretary1 5100 - 5104 $ 2,000 Treasurer Yes 5/00 - 5/04 $ 2,800 President Yes 5/02 - 5/06 $ 3,200 Vice-President Yes Appointed 6/02 - 5/06 $ - Director Yes Note: No director is disqualified from serving on this board under the Texas Water Code. (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (N) BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS (Continued) September 30,2003 Fees and Term of Office Expense Title Resident Elected/Expires Reimbursement at of Name and address or Date Hired 9/30/2003 Year End District? Key Administrative Personnel Cathy Morgas 2158 Wedgewood Drive Grapevine. TX 76051 'Resigned 2/14/03 District 51112000 S Manager No Walter R. Fitzpatrick. Jr. 7 Creekmere Dr District Trophy Club. Texas 76262 2/1/2003 $ Manager Yes "Assumed responsibility of District Manager on 2/1/2003 Denton County Appraisal District P.O. Box 2816 Denton. TX 76202 Rutledge Crain B Company. PC 1601 E. Lamar. Suite 109 Arlington. TX 7601 1 Camp, Dresser & McKee. Inc P.O. BOX 74594 Dept. Member 44 Chicago, iL 60690 Whitaker. Chalk, Swindle B Sawyer, LLP. 3500 City Center. Tower II Fort Wollh. TX 76102 41111 981 $ 10,733 Appraiser No 91511 997 $ 4,900 Auditors No Consulting 10/1/2000 $ 18.567 Engineer No Legal io/i/i999 s 21.328 Counsel NO ANNUAL FILING AFFiDAVlT THE STATE OF TEXAS COUNTY OF DENTON (Name of Duly Authorized District Representative) of the Tro~hv Club Munici~al Utilitv 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 - day of , 20- its annual audit report of the fiscal year or period ended Se~tember 30. 2003 and that copies of the annual audit report have been filed in the district office, located at 100 Municipal Drive. Trophy Club. Texas, 76262. This annual filing affidavit and the attached copy of the annual audit report are being submitted to the Texas Commission on Environmental Quality in satisfaction of all annual filing requirements within Section 49.194 of the Texas Water Code. Date: ,20- (Signature of District Representative) Vyped Name and Title of District Official) Sworn to and subscribed to before me this - day of ,20-. (Seal) (Signature of Notary) My Commission Expires On: , 20-, Notary Public in and for the State of Texas ANNUAL FILING AFFIDAVIT 'P THE STATE OF TEXAS 1 1 COUNTY OF DENTON 1 Walter Fitzpatricb I, (Name of Duly Authorized District Representative) of the Tro~hv Club Municipal Utiiitv 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 10 day of February ,2004 its annual audit report of the fiscal year or period ended Se~ternber 30. and that copies of the annual audit report have been filed in the district office, located at 100 Municipal Drive. Trophy Club. Texas. 76262. _...'. ..- This annual filing affidavit and the attached copy of Environmental Quality in satisfaction of all annual fili Date:February 13,2024 -- Sworn to and subscribed to before me this 2 day of February ,20&. >o? CAROL S. McLEOD c G-L-.z-.C c/ . I ' ' . al) Notary Public (Signature of NotaryJ STATE OF TEXAS My commission Expires On: August S , 20%. Notary Public in and for the State of Texas.