HomeMy WebLinkAboutFY Ended September 30, 2020CliftonLarsonAllen LLP
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Board of Directors
Trophy Club Municipal Utility District No. 1
Trophy Club, Texas
We have audited the financial statements of Trophy Club Municipal Utility District No. 1 as of and for
the year ended September 30, 2020, and have issued our report thereon dated January 18, 2021. We
have previously communicated to you information about our responsibilities under auditing standards
generally accepted in the United States of America, as well as certain information related to the
planned scope and timing of our audit. Professional standards also require that we communicate to you
the following information related to our audit.
Significant audit findings
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by Trophy Club Municipal Utility District No. 1 are described in Note 1 to the
financial statements.
No new accounting policies were adopted and the application of existing policies was not changed
during 2020.
We noted no transactions entered into by the entity during the year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events affecting them
may differ significantly from those expected. The most sensitive estimates affecting the financial
statements were:
• Management's estimate of depreciation expense on capital assets is based on management's
estimated useful lives of those assets. We evaluated the key factors and assumptions used to
develop the estimate in determining that it is reasonable in relation to the financial statements
taken as a whole.
• Management's estimate of the allowance for doubtful accounts is based on historical water and
sewer revenues, historical loss levels, and an analysis of the collectability of individual accounts.
We evaluated the key factors and assumptions used to develop the allowance in determining
that it is reasonable in relation to the financial statements taken as a whole.
Awk A member of
Nexia
International
Board of Directors
Trophy Club Municipal Utility District
Page 2
• Management's estimate of the Authority's net pension asset related to TMRS as well as the
related deferred inflows and outflows is based on guidance from GASB Statement No. 68 and
the plan's actuarial valuation. We evaluated the key factors and assumptions used to develop
the asset in determining that it is reasonable in relation to the financial statements taken as a
whole.
• Management's estimates of the Authority's total OPEB liability as well as the related deferred
inflows, deferred outflows and expense is based on guidance from GASB Statement No. 75 and
an actuarial valuation which itself includes assumptions regarding inflation, salary increases,
healthcare costs trend rates and mortality rates. We evaluated the key factors and assumptions
used to develop the liability in determining that it is reasonable in relation to the financial
statements taken as a whole.
Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. There were no particularly sensitive financial statement disclosures.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other
than those that are clearly trivial, and communicate them to the appropriate level of management.
Management did not identify and we did not notify them of any uncorrected financial statement
misstatements.
Corrected misstatements
None of the misstatements detected as a result of audit procedures and corrected by management
were material, either individually or in the aggregate, to the financial statements taken as a whole.
Disagreements with management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditors' report. No such disagreements arose during our audit.
Management representations
We have requested certain representations from management that are included in the management
representation letter dated January 18, 2021.
Board of Directors
Trophy Club Municipal Utility District
Page 3
Management consultations with other independent accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation
involves application of an accounting principle to the entity's financial statements or a determination of
the type of auditors' opinion that may be expressed on those statements, our professional standards
require the consulting accountant to check with us to determine that the consultant has all the relevant
facts. To our knowledge, there were no such consultations with other accountants.
Significant issues discussed with management prior to engagement
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to engagement as the entity's auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses
were not a condition to our engagement.
Other information in documents containing audited financial statements
With respect to the required supplementary information (RSI) accompanying the financial statements,
we made certain inquiries of management about the methods of preparing the RSI, including whether
the RSI has been measured and presented in accordance with prescribed guidelines, whether the
methods of measurement and preparation have been changed from the prior period and the reasons
for any such changes, and whether there were any significant assumptions or interpretations underlying
the measurement or presentation of the RSI. We compared the RSI for consistency with management's
responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained
during the audit of the basic financial statements. Because these limited procedures do not provide
sufficient evidence, we did not express an opinion or provide any assurance on the RSI.
With respect to the Texas supplemental information (collectively, the supplementary information)
accompanying the financial statements, on which we were engaged to report in relation to the financial
statements as a whole, we made certain inquiries of management and evaluated the form, content, and
methods of preparing the information to determine that the information complies with accounting
principles generally accepted in the United States of America, the method of preparing it has not
changed from the prior period or the reasons for such changes, and the information is appropriate and
complete in relation to our audit of the financial statements. We compared and reconciled the
supplementary information to the underlying accounting records used to prepare the financial
statements or to the financial statements themselves. We have issued our report thereon dated
January 18, 2021.
The Schedules of Services Rates (TSI -1) and Board Members, Key Personnel, and Consultants (TSI -8)
accompanying the financial statements, which is the responsibility of management, was prepared for
the purposes of additional analysis and is not a required part of the financial statements. Such
information was not subjected to the auditing procedures applied in the audit of the financial
statements, and, accordingly, we did not express an opinion or provide any assurance on it.
Our auditors' opinion, the audited financial statements, and the notes to financial statements should
only be used in their entirety. Inclusion of the audited financial statements in a document you prepare,
such as an annual report, should be done only with our prior approval and review of the document.
Board of Directors
Trophy Club Municipal Utility District
Page 4
***
This communication is intended solely for the information and use of the Board of Directors and
management of Trophy Club Municipal Utility District No. 1 and is not intended to be, and should not
be, used by anyone other than these specified parties.
CliftonLarsonAllen LLP
Fort Worth, Texas
January 18, 2021
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2020
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TABLE OF CONTENTS
YEAR ENDED SEPTEMBER 30, 2020
ANNUAL FILING AFFIDAVIT 1
INDEPENDENT AUDITORS' REPORT 2
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) 4
BASIC FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 11
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 12
STATEMENT OF CASH FLOWS 13
NOTES TO BASIC FINANCIAL STATEMENTS 14
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS 29
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS 30
SCHEDULE OF EMPLOYER PENSION CONTRIBUTIONS 31
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 32
REQUIRED TCEQ SUPPLEMENTAL INFORMATION
BUDGETARY COMPARISON SCHEDULE - ENTERPRISE FUND 33
NOTE TO BUDGETARY COMPARISON SCHEDULE - ENTERPRISE FUND 34
TEXAS SUPPLEMENTAL INFORMATION
TSI -1. SERVICE AND RATES - UNAUDITED 35
TSI -2. SCHEDULE OF ENTERPRISE FUND EXPENSES 38
TSI -3. SCHEDULE OF TEMPORARY INVESTMENTS 39
TSI -4. TAXES LEVIED AND RECEIVABLE 40
TSI -5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS 42
TSI -6. CHANGES IN LONG-TERM DEBT 47
TSI -7. COMPARATIVE SCHEDULE OF REVENUES AND EXPENSES ENTERPRISE
FUND 48
TSI -8. BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS 50
ANNUAL FILING AFFIDAVIT
THE STATE OF TEXAS }
COUNTY OF DENTON }
(Na e 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 21st day of January, 2021, its annual audit report
for the fiscal year or period ended September 30, 2020 and that copies of the annual audit report
have been filed in the district office, located at 100 Municipal Drive, Trophy Club, Texas, 76262.
The annual filing affidavit and the attached copy of the audit report arf being submitted to
the Texas Commission on the Environmental Quality in satisfactionfof the annual filing
requirements of Texas Water Code Section 49.194.
Date: January 18th , 2021 By:
Sworn to and subscribed to before me this
0141/1;,, ELLEN NICOLE D'ANDRIA
(SE 1�.• Notary Public, State of Texas
"E...';.3: -.,".•::;1"-t: Comm. Expires 03-21-2022
'o;)uOnNFs\.` Notary ID 12430777-6
U �C 61'.1 , 1/01 z
My Commission Expires On: 1 V l
Notary Public in the State of Texas
(Signature of District
epresentative)
Steve Flynn, President, Board of Directors
(Typed Name & Title of above District Representative)
dayof 1714102/ `/ , ().A)
AA, h�
(Signature of Notary)
CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS' REPORT
Members of the Board of Directors
Trophy Club Municipal Utility District No. 1
Trophy Club, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of Trophy Club Municipal Utility District No. 1
(the District), as of and for the year ended September 30, 2020, and the related notes to the financial
statements, which collectively comprise the District's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
The District's management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
VA member of
Nexia
International
(2)
Members of the Board of Directors
Trophy Club Municipal Utility District No. 1
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of Trophy Club Municipal Utility District No. 1, as of September 30, 2020,
and the respective changes in financial position and cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 4-10 and the schedule of changes in total OPEB
liability and related ratios, schedule of changes in net pension liability and related ratios, the schedule
of employer pension contributions, and notes to required supplementary information on pages 29-32 be
presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the basic financial statements of
Trophy Club Municipal Utility District No. 1. The Texas TCEQ Supplemental Information on pages 33-
34 and the Texas supplemental information on pages 35-50 is required by the Texas Commission on
Environmental Quality as published in the Water District Financial Management Guide. The Texas
supplemental information is presented for purposes of additional analysis and is not a required part of
the basic financial statements.
The Texas TCEQ Supplemental Information and Schedules TSI -1 through TSI -8 have not been
subjected to the auditing procedures applied in the audit of the basic financial statements, and
accordingly, we do not express an opinion or provide any assurance on it.
CliftonLarsonAllen LLP
Dallas, Texas
January 18, 2021
(3)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2020
As management of Trophy Club Municipal Utility District No. 1 (the District), we offer readers of the
District's financial statements this narrative overview and analysis of the financial activities of the
District for the fiscal year ended September 30, 2020.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the District exceed its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $33,159,346 (net position). Of
this amount, $4,351,576 (unrestricted net position) may be used to meet the government's
ongoing obligations to customers and creditors in accordance with the District's fiscal policies.
• The District's total net position increased by $2,724,195. This increase is primarily the result of
the District's operating revenues outpacing operating expenses by $1,765,517.
• The District's total debt decreased by $1,370,000, primarily due to total principal payments
during the current year of that amount.
OVERVIEW OF THE FINANCIAL STATEMENTS
Basic Financial Statements
This discussion and analysis is intended to serve as an introduction to the District's basic financial
statements. The District's basic financial statements are comprised of three statements: 1) statement of
net position which provide all of the District's assets, deferred outflows of resources, liabilities and
deferred inflows of resources and provides information about the nature and amounts of investments in
resources (assets) and obligations to creditors (liabilities); 2) statement of revenues, expenses, and
changes in net position shows the business -type activities of the District and provides information
regarding revenues and expenses, both operating and nonoperating, that affect the net position; and
3) statement of cash flows. The primary purpose of this statement is to provide information about the
District's cash receipts and cash payments during the period using the direct method of reporting cash
flows from operating, investing, and capital and noncapital financing activities. The basic financial
statements can be found on pages 11-13.
Notes to the Financial Statements
Integral to the financial statements are the notes to the basic financial statements. These notes provide
additional information that is essential to a full understanding of the financial data provided in the basic
financial statements. The District has prepared notes sufficient to provide the readers of these financial
statements a clear picture of the District's financial position and insight into the results of its operations.
These notes comply with the Texas Commission on Environmental Quality (TCEQ) standardized
reporting requirements and are in conformity with accounting principles generally accepted in the
United States of America (GAAP). The Notes to the financial statements can be found on pages 14-28.
(4)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2020
Other Information
In addition to the basic financial statements and the accompanying notes, this section presents certain
required and other supplementary information, much of which is required by TCEQ and GAAP, which
may be beneficial to the reader.
The supplementary information can be found on pages 33-50 of the report.
FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE
Our analysis below focuses on the District's net position (Table 1) and changes in net position (Table 2)
during the fiscal year ended September 30, 2020.
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the Trophy Club Municipal Utility District No. 1, assets and deferred outflows of
resources exceeded liabilities and deferred inflows of resources by $33,159,346 as of September 30,
2020.
The largest portion of the District's net position (68%) reflects its investments in capital assets (e.g.,
land, building, equipment, improvements, construction in progress, and infrastructure), less any debt
used to acquire those assets that is still outstanding. The District uses these capital assets to provide
services to customers; consequently, these assets are not available for future spending. Although the
District's investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate the liabilities. An additional portion of the District's net position
(19%) represents resources that are subject to external restrictions on how they may be used. The
remaining balance of unrestricted net position ($4,351,576, or 13%) may be used to meet the District's
ongoing obligations to customers and creditors.
Trophy Club Municipal District No. 1's Net Position — Table 1
Current and Other Assets
Capital Assets
Deferred Outflows of Resources
Total Assets and Deferred Outflows
of Resources
Current Liabilities
Long -Term Liabilities
Deferred Inflows of Resources
Total Liabilities and Deferred Inflows
of Resources
2020 2019 Change
$ 19,098,880 $ 17,473,509 $ 1,625,371
42,256,558 42,628,151 (371,593)
117,941 166,799 (48,858)
61,473,379
3,735,704
24,524,888
53,441
28,314,033
60,268,459 1,204,920
1,634,990
27,887,239
21,696
2,100,714
(3,362,351)
31,745
29,543,925 (1,229,892)
Net Position:
Net Investment in Capital Assets 20,803,435 20,735,143 68,292
Restricted 959,991 5,950,424 (4,990,433)
Unrestricted 11,395,920 3,749,584 7,646,336
Total Net Position $ 33,159,346 $ 30,435,151 $ 2,724,195
(5)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2020
Regarding restricted net position, $959,991 represents the portion restricted for debt service.
Unrestricted net position of $4,351,576 may be used to meet the government's ongoing obligations to
its customer and creditors.
As of September 30, 2020, the District is able to report positive balances in all categories of net
position. The same situation held true for the prior fiscal year.
The current and other assets increased by $1,573,509.
During the current year, the District's debt (its revenue and general obligation bonds) decreased by
$1,370,000. Also included in long-term liabilities is the requirement to report an OPEB (Other
Postemployment Benefits) liability of $24,818, which includes a $16,745 increase.
The District's net position increased by $2,724,195 during the current fiscal year. Net position invested
in capital assets, net of related debt, increased by $1,672,501. Unrestricted net position increased by
$601,992.
The following table provides a summary of the District's operations for the fiscal year ended
September 30, 2020, with comparative totals for the fiscal year ended September 30, 2019.
Trophy Club Municipal Utility District No. 1's Change in Net Position — Table 2
2020 2019 Change
Total Operating Revenues $ 9,194,478 $ 8,587,955 $ 606,523
Operating Expenses (7,428,961) (6,387,715) (1,041,246)
Nonoperating Revenue (Expense), Net 958,678 1,206,536 (247,858)
Excess of Revenues Over Expenses 2,724,195 3,406,776 (682,581)
Change in Net Position 2,724,195 3,406,776 (682,581)
Net Position - Beginning of Year 30,435,151 27,028,375 3,406,776
Net Position - End of Year $ 33,159,346 $ 30,435,151 $ 2,724,195
(6)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2020
THE DISTRICT'S FUNDS
The District has one activity, the Enterprise Fund. Unrestricted net position of the proprietary fund, the
Water and Sewer Fund, is $4,351,576. This fund's net position increased in the fiscal year ended
September 30, 2020 by $2,724,195.
Proprietary Fund Budgetary Highlights — The District made a budget amendment during the year to
account for the effects of COVID-19 which reduced revenues by approximately $814,000 and reduced
expenses by approximately $770,000 for a net impact of approximately $44,000.
Actual operating revenues were $991,229 lower than adopted budget amounts due in large part to the
impacts of COVID-19. Some of the significant revenue impacts were decreased water consumption
from commercial accounts, removal and suspension of late fees and disconnects for half the current
year and a decrease in interest earned throughout all accounts due to interest rates dropping.
Actual operating expenses were $1,605,803 below budgeted amounts largely due to the decrease in
water purchased from Fort Worth due to decreased consumption during the year, reduced repair and
maintenance due to reduced work load on the water system and a reduction in a combination of
salaries and employee benefits due to open positions throughout the current year.
Additional information on the comparison of the District's actual operations to its budget can be found in
the Budgetary Comparison Schedule — Enterprise Fund beginning on page 33.
CAPITAL ASSETS
The District's capital assets for its business -type activities as of September 30, 2020 totaled to
$42,256,558 (net of accumulated depreciation). Capital assets include land, building, equipment,
improvements, infrastructure, and construction in progress.
The District's capital assets decreased $371,593 during the current year.
The major capital asset events during the current fiscal year include transferring the substantially
complete Wastewater Treatment Plant from asset group CIP to Wastewater treatment system, and the
additions to the 16 -inch Waterline Interconnect project.
(7)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2020
Capital assets at year-end are as follows:
Construction in Progress
Land
Water Rights
Buildings
Improvements Other Than Buildings
Machinery and Equipment
Organization Costs
Vehicles
Water System
Wastewater Treatment System
Wastewater Collection System
Total
2020 2019
$ 4,311,836 $ 21,521,726
648,178 648,178 -
864,678 864,678 -
3,535,137 3,479,008 56,129
551,298 324,334 226,964
2,690,810 1,932,349 758,461
2,331,300 2,331,300 -
2,843,608 2,833,983 9,625
13,299,399 12,662,214 637,185
22,638,174 5,773,106 16,865,068
4,533,630 4,521,074 12,556
$ 58,248,048 $ 56,891,950 $ 1,356,098
Change
$ (17,209,890)
Accumulated depreciation at September 30, 2020 and 2019 was $15,991,490 and $14,263,799
respectively.
The following table summarizes the changes in capital assets:
Balance - Beginning of Year
Additions and Transfers
Depreciation
Disposals and Transfers
Balance - End of Year
2020
$ 42,628,151
19,154,606
(1,759,150)
(17,767,049)
$ 42,256,558
2019
$ 40,816,042
2,690,408
(878,299)
$ 42,628,151
Additional information on the District's capital assets can be found in Note 4 on page 18 of this report,
DEBT ADMINISTRATION
At the end of the current fiscal year, the District had total debt obligations of $25,595,000. The payoff
date of the District's bonds is during 2049.
Outstanding Debt at Year -End
Bonds, Capital Lease Obligations, and Note Payable
2020
Revenue Bonds/Notes Payable $ 25,595,000
Capital Lease Obligations 612,251
Total $ 26,207,251
(8)
2019
$ 26,965,000
839,966
$ 27,804,966
Change
$ (1,370,000)
(227,715)
$ (1,597,715)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2020
The District's revenue -supported debt was rated by Standard & Poor's Rating Services, A Division of
the McGraw-Hill Companies, Inc. in 2019 at AA-. Application for contract ratings on the Bonds has not
been made to any of the rating companies since that initial rating. Furthermore, the District did not
apply for municipal bond insurance.
Additional information on the District's long-term debt can be found beginning with Note 5 on pages 19-
20 of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
2020 budgetary highlights:
Revenue: The District's 2021 General Fund budgeted revenues reflect a projected decrease of
$417,800 from the District's 2020 budget due to the unknown longevity impacts of COVID-19.
• Water revenue is budgeted to decrease from $6,486,623 for fiscal year 2020 to $5,932,489
for fiscal year 2021 with a total projected decrease of $554,134.
• Sewer revenue is budgeted to increase from $3,503,885 for fiscal year 2020 to $3,677,146
for fiscal year 2021 with a total projected increase of $173,261.
• Even though the District's M&O tax rate decreased from fiscal year 2020 to fiscal year 2021,
the District is projected to collect a M&O tax revenue increase of $34,307. The segregated
M&O property tax revenue from fiscal year 2020 to fiscal year 2021 is budgeted to increase
by $32,647 for Fire and increase by $1,660 for the MUD.
Expenses: The District's 2021 General Fund budgeted expenses reflect a projected decrease of
$416,683 from the District's 2020 budget due to reduced or deferred expenses of several factors:
• Wholesale water purchase from City of Fort Worth decreasing by $118,415 due to the
continued impacts of COVID-19 consumption demands.
• Overall Capital Outlay decrease by $197,375 due to projects becoming substantially
completed in 2020 and fewer current capital projects projected for 2020.
• Wastewater salary and employee benefit increase by roughly 10%, in the amount of
$65,586, largely due to creating a new position to provide greater coverage and reduce
economic exposure.
Overall: The District's 2021 operational budget is anticipated to have revenues of $10,227,277 and
expenses of $10,222,170 netting a projected surplus of $5,107 for the year.
Debt Service Fund 2020 budgetary highlights:
• The District's Debt Service expenses are budgeted to decrease from $2,405,613 in fiscal
year 2020 to $2,256,798 budgeted for fiscal year 2021 for a total decrease of $148,815.
• Property tax revenues collected for Debt Service are budgeted to increase from $682,441 in
fiscal year 2020 to $694,010 budgeted in fiscal year 2021 for a total increase of $11,569.
Overall: The District's consolidated budget revenue decreased from $14,278,444 in fiscal year
2020 budget to $13,753,452 in fiscal year 2021 budget totaling a projected decrease of 3.68%. The
District's consolidated budget expenses decrease from $14,069,340 in fiscal year 2020 budget to
$13,725,845 in fiscal year 2021 budget totaling a projected decrease of 2.44%.
(9)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2020
Sewer and Water Rates highlights:
The District did not adopt a new water base or water volumetric rate during the fiscal year 2020.
Effective April 1, 2020 the sewer volumetric rates were increased for both the commercial and
residential customers by the District's Board of Directors to reflect the updated winter average
calculations. The sewer rate charges are calculated based on the average water consumption for
three months of billing: December, January, and February.
Legal highlights:
The District had two primary legal matters to navigate during Fiscal Year 2020. The first was a
potential litigation with Webber Cadagua Partners, that has since been resolved. Approval of a final
change order, acceptance of project completion, release of retainage, and final payment is
scheduled the January 18, 2021 Board of Directors meeting. Secondly, the District's legal action
against Acadia Services, Inc. and MRW Investors, LLC in connection with the unauthorized
construction of surface improvements within the District's wastewater easement is still pending.
While the Court granted the District's motion for summary judgement, the remaining dispute related
to the payment of legal representation expenses incurred by the District awaits jury trial selection,
which has continued to be postponed due to the COVID-19 pandemic.
REQUEST FOR INFORMATION
The financial report is designated to provide our residents, customers, investors, and creditors with a
general overview of the District's finances. If you have any questions about this report or need any
additional information, contact the General Manager or Finance Director, 100 Municipal Drive, Trophy
Club, Texas, 76262 or call 682-831-4600.
(10)
BASIC FINANCIAL STATEMENTS
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
CURRENT ASSETS
Cash and Cash Equivalents $ 4,789,019
Investments 6,152,228
Accounts Receivable, Net of Allowance 1,279,222
Taxes Receivable 28,067
Due from Other Governments 24,595
Prepaid Expenses 62,041
Total Current Assets 12,335,172
RESTRICTED ASSETS
Cash and Cash Equivalents 4,989,212
Investments 1,722,634
Total Restricted Assets 6,711,846
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION
Construction in Progress, Nondepreciable
Land, Nondepreciable
Water Rights, Nondepreciable
Buildings and Other Improvements, Net
Machinery, Vehicles and Other Equipment, Net
Water System, Net
Organization Costs, Net
Total Capital Assets
OTHER ASSETS
Net Pension Asset
Total Other Assets
DEFERRED OUTFLOWS OF RESOURCES
Related to Pension
Related to OPEB
Total Deferred Outflows of Resources
Total Assets and Deferred Outflows of Resources
LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION
CURRENT LIABILITIES
Accounts Payable
Accrued Liabilities
Accrued Interest Payable
Customer Deposits
Current Portion of Long -Term Debt
Total Current Liabilities
LONG-TERM LIABILITIES
Long -Term Debt, Net of Current Portion
OPEB Liability
Total Long -Term Liabilities
DEFERRED INFLOWS OF RESOURCES
Related to Pension
Related to OPEB
Total Deferred Inflows of Resources
Total Liabilities and Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets
Restricted for Debt Service
Unrestricted
Total Net Position
Total Liabilities, Deferred Inflows of Resources, and Net Position
See accompanying Notes to Basic Financial Statements.
4,311,836
648,178
864,678
3,037,509
2,724,624
30,659,711
10,022
42,256,558
51,862
51,862
111,849
6,092
117,941
$ 61,473,379
$ 1,471,621
75,107
64,064
311,655
1,813,257
3,735,704
24,500,070
24,818
24,524,888
49,623
3,818
53,441
28,314,033
20,803,435
959,991
11,395,920
33,159, 346
$ 61,473,379
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
YEAR ENDED SEPTEMBER 30, 2020
OPERATING REVENUES
Charges for Water Service
Charges for Sewer Service
Tap Connection and Inspection Fees
Penalties and Interest
Total Operating Revenues
$ 5,768,789
3,343,636
10,350
71,703
9,194,478
OPERATING EXPENSES
Purchased Water Service 1,865,024
Salaries and Payroll Taxes 1,495,355
Benefits 410,280
Repairs and Maintenance 655,518
Professional Fees 221,219
Utilities 317,965
Depreciation 1,759,150
Water and Sewer System Maintenance 218,004
Insurance 99,679
Software and Annual Support 124,037
Office Expenses 32,457
Bank and Payment Fees 73,964
Dues and Subscriptions 6,578
Training and Travel 11,903
TCEQ Fees and Permits 35,794
Fuel and Lube 18,286
Other 83,748
Total Operating Expenses 7,428,961
OPERATING INCOME 1,765,517
NONOPERATING REVENUES (EXPENSES)
Property Taxes 2,229,770
Investment Earnings 133,579
Interest Expense (996,742)
Gain on Sale of Fixed Assets 12,520
Rental income 236,804
Other Income 61,404
Fire Department (718,657)
Total Nonoperating Revenues 958,678
INCREASE IN NET POSITION 2,724,195
Total Net Position - Beginning 30,435,151
TOTAL NET POSITION - ENDING $ 33,159,346
See accompanying Notes to Basic Financial Statements.
(12)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers
Cash Paid to Employees for Services
Cash Paid to Suppliers
Cash Paid for Other Expenses
Net Cash Provided by Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received
Purchases of Investments
Net Cash Provided by Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets
Principal Payments on Long -Term Debt
Proceeds from Sale of Capital Assets
Interest on Long -Term Debt
Net Cash Used by Capital and Related Financing Activities
CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES
Receipts of Property Taxes
Receipts of Rental Income
Other Receipts
Payments to the Town of Trophy Club for Fire Department
Net Cash Provided by Noncapital and Related Financing Activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents - Beginning of Year
CASH AND CASH EQUIVALENTS - END OF YEAR
CASH AND CASH EQUIVALENTS
RESTRICTED CASH AND CASH EQUIVALENTS
TOTAL CASH AND CASH EQUIVALENTS - END OF YEAR
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income
Adjustments to Reconcile Operating Income to Net Cash
Provided by Operating Activities:
Depreciation
Change in Accounts Receivable
Change in Due from Other Governments
Change in Prepaids
Change in Pension Liability/Asset
Change in Deferred Outflows Related to Pensions
Change in Deferred Inflows Related to Pensions
Change in OPEB Liability
Change in Deferred Outflows Related to OPEB
Change in Deferred Inflows Related to OPEB
Change in Accounts Payable
Change in Accrued Liabilities
Change in Customer Deposits
Net Cash Provided by Operating Activities
NONCASH ITEMS
Amortization of Bond Discount/Premium
See accompanying Notes to Basic Financial Statements.
(13)
$ 9,268,023
(1,895,589)
(1,876,359)
(1,976,290)
3,519,785
133,579
121,994
255,573
(1,387,287)
(1,503,147)
12,250
(1,005,431)
(3,883,615)
2,235,164
236,804
61,404
(718,657)
1,814,715
1,706,458
8,071,773
$ 9,778,231
$ 4,789,019
4,989,212
$ 9,778,231
$ 1,765,517
1,759,150
82,699
(23,583)
(53,555)
(105,882)
53,066
30,379
8,073
(4,208)
1,366
(11,335)
27,252
(9,154)
$ 3,519,785
$ 65,962
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
Denton County Municipal Utility District No. 1 (the District) was created by the Texas Water
Rights Commission (later known as Texas Commission on Environmental Quality (TCEQ))
on March 4, 1975 and confirmed by the electorate of the District at a confirmation election
on October 7, 1975. The Board of Directors 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.
Effective April 1, 1983, the District's name was officially changed by order from Denton
County Municipal Utility District No. 1 to Trophy Club Municipal Utility District No. 1.
On May 9, 2009, citizens voted to consolidate the District and Trophy Club Municipal Utility
District No. 2 (MUD2). As a result, the District reports consolidated activity and balances for
the District and the entities formerly known as MUD2 and the Trophy Club Master District
Joint Venture (a joint venture of MUD1 and MUD2).
The Governmental Accounting Stands 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.
Measurement Focus
The accompanying basic financial statements are reported using the economic resources
measurement focus and the full accrual basis of accounting. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of
the related cash flows. The District's operating revenues are derived from charges to users,
primarily for the transportation and sale of water and wastewater. The District constructs
facilities to provide services to others, which are financed in part by the issuance of its
revenue bonds and notes.
Basis of Presentation
The District presents its financial statements in accordance with Governmental Accounting
Standards Board (GASB) Statement No. 34, Basic Financial Statements—and
Management's Discussion and Analysis—for State and Local Governments, guidance for
governments engaged in business -type activities. Accordingly, the basic financial
statements and Required Supplementary Information (RSI) of the District consist of MD&A,
statement of net position, statement of revenues, expenses, and changes in net position,
statement of cash flows, notes to financial statements, schedule of changes in total OPEB
liability and related ratios, schedule of changes in net pension liability and related ratios, and
the schedule of employer pension contributions. Additionally, the District complies with the
reporting requirements promulgated by the "Water District Financial Management Guide"
published by the Texas Commission on Environmental Quality.
(14)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Revenues
Revenues are recognized as earned and generally result from providing water and sewer
services to customers. Property taxes attach as an enforceable lien on property as of
October 1. Taxes are levied each October 1 and are due and payable on or before
January 31 of the following year. All unpaid taxes become delinquent February 1 of the
following year. The Denton County Tax Assessor/Collector bills and collects the District's
property taxes.
Expenses
Direct charges attributable to the operations of the District's water and sewer systems,
including depreciation and amortization, are reported as operating expenses. Interest
expense and other similar charges not directly related to the systems' operations are
reported as nonoperating expenses. Restricted resources, if any, are used first to fund
related appropriations, before unrestricted resources are used.
Cash Equivalents
All highly liquid investments (including restricted assets) with original maturities of three
months or less when purchased are considered to be cash equivalents.
Accounts Receivable
Accounts receivable consists primarily of receivables related to water and sewer services.
Accounts receivable includes an accrual for unbilled revenue earned during the month of
September 2020. The unbilled revenue balance as of September 30, 2020 was $194,750.
Allowances for Doubtful Accounts
Trade accounts receivable are evaluated periodically for collectability based on customer
history and current economic conditions. When considered necessary, an allowance is
made for doubtful accounts. The allowance for doubtful accounts balance as of
September 30, 2020 was $12,051.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the basic financial statements and
accompanying notes. Actual results could differ from those estimates.
Capital Assets
All purchased capital assets are stated at historical cost unless they are determined to be
impaired based on GASB Statement No. 42, Accounting and Financial Reporting for
Impairment of Capital Assets and for Insurance Recoveries. Donated assets are stated at
their estimated acquisition values on the date donated.
Repairs and maintenance are recorded as expenses; renewals and betterments are
capitalized.
(15)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Capital Assets (Continued)
According to the District's capitalization policy, assets capitalized have an original cost of
$5,000 or more and two or more years of estimated useful life. Depreciation is calculated on
each class of depreciable property using the straight-line method. Estimated useful lives
range from 5 to 40 years for buildings and water and sewer equipment, 5 to 20 years for
machinery and equipment, and 10 to 40 years for engineering fees and purchased computer
software.
Compensated Absences
Employees are allowed to accumulate vacation within certain limitations. Payment for
accrued vacation (within limits) upon termination is subject to the employee leaving in good
standing. At September 30, 2020, a liability of $62,418 for unused vacation leave has been
accrued and is included in current liabilities within salaries and benefits payable.
NOTE 2 CASH AND INVESTMENTS
Legal provisions generally permit the District to invest in direct and indirect obligations of the
United States of America or its agencies, certain certificates of deposit, repurchase
agreements, public funds investment pools, and mutual funds. During the year ended
September 30, 2020, the District did not own any types of securities other than those
permitted by statute.
At September 30, 2020, the bank balance of the District's cash deposits totaled $5,187,804,
and the carrying value was $5,100,739. These amounts exclude the restricted cash amount
held in escrow which totaled $4,677,492 at September 30, 2020. The District has obtained a
pledge of securities in the amount of $5,914,065 from a financial institution in order to
mitigate credit and custodial risks associated with deposits. This amount plus the bank
depository insurance limits were sufficient to fully collateralize the District's deposits.
The following is a summary of cash and investments at September 30:
Credit Weighted
Quality Fair Average
Ratings Value Maturity
Unrestricted Cash and Investments
Deposits with a Financial Institution Not Rated $ 4,788,419 N/A
Petty Cash Not Rated 600 N/A
TexPool AAAm 6,152,228 30 Days
Total $ 10.941.247
Restricted Cash and Investments
Mutual Fund Not Rated $ 4,989,212 N/A
TexPool AAAm 1,722,634 30 Days
Total $ 6.711.846
(16)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
The following is a summary of cash restrictions as of September 30:
Restricted Cash and Investments
Restricted for Customer Deposits $ 311,720
Restricted for Capital Projects 5,440,135
Restricted for Debt Service 959,991
Total Restricted Cash and Equivalents $ 6,711,846
In compliance with the District's investment policy, the District limits exposure to credit risk
and interest rate risk by limiting the effective duration of securities to less than 12 months
and limiting investments to high quality rated securities. The District limits exposure to
custodial credit risk through a pledge of securities obtained from a financial institution.
The District invests in TexPool. The Slate Comptroller of Public Accounts exercises
oversight responsibility over TexPool, the Texas Local Government Investment Pool.
Oversight includes the ability to significantly influence operations, designation of
management, and accountability for fiscal matters. Additionally, the State Comptroller has
established an advisory board composed of both Participants in TexPool and other persons
who do not have a business relationship with TexPool. The Advisory Board members review
the investment policy and management fee structure. Finally, TexPool is rated AAAm by
Standard & Poor's. As a requirement to maintain the rating, weekly portfolio information
must be submitted to Standard & Poor's, as well as the office of the Comptroller for public
review.
TexPool operates in a manner consistent with the SEC's Rule 2a7 of the Investment
Company Act of 1940. TexPool uses amortized cost rather than market value to report net
position to compute share prices. Accordingly, the fair value of the position in TexPool is the
same as the value of TexPool shares.
The mutual fund held in escrow is invested in a fund operating a government money market
fund. As such, the fund: (1) invests at least 99.5% of its total assets in: cash; Iii) securities
issued or guaranteed by the United Sates or certain U.S. government agencies or
instrumentalities; and/or (iii) repurchase agreements that are collateralized fully;
(2) generally continues to use amortized cost to value its portfolio securities and transact at
stable $1.00 net asset value.
The TexPool and the mutual fund are measured at amortized cost and are exempt for fair
value reporting under GASB Statement No. 72, Fair Value Measurement and Application.
(17)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 3 ACCOUNTS RECEIVABLE
Accounts receivable arising from business activities at September 30 are as follows:
Accounts Receivable
Accrued Unbilled Receivables
Less: Allowance for Uncollectibles
Total Accounts Receivable, Net
NOTE 4 CAPITAL ASSETS
A summary of changes in capital assets follows:
Balance at
September 1,
2019
Capital Assets, Undepreciable:
Land $ 648,178
Construction in Progress 21,521,726
Water Rights 864,678
Total Nondepreciable Assets 23,034,582
Capital Assets, Depreciable:
Buildings
Improvements Other Than Buildings
Machinery and Equipment
Organization Costs
Vehicles
Water System
Wastewater Treatment System
Wastewater Collection System
Total Depreciable Assets
Less Accumulated Depreciation:
Buildings
Improvements Other Than Buildings
Machinery and Equipment
Organization Costs
Vehicles
Water System
Wastewater Treatment System
Wastewater Collection System
Total Accumulated
Depreciation
Total Depreciable Assets, Net
Capital Assets, Net
$
$ 1,096,523
194,750
(12,051)
$ 1,279,222
Additions
and
Transfers
557,639
557,639
3,479,008 56,129
324,334 226,964
1,932,349 758,461
2,331,300 570
2,833,983 40,034
12,662,214 637,185
5,773,106 16,865,068
4,521,074 12,556
33, 857, 368 18, 596, 967
680,091
277,691
1,124, 792
2,318,839
1,308,356
4,261,343
2,612,050
1,680,637
14,263,799
19,593,569
$ 42,628,151
(18)
75,498
15,646
156,865
2,439
251,240
233,680
943,375
80,407
1,759,150
16,837,817
$ 17,395,456
Disposals
and
Transfers
$ -
17,767,529
17,767,529
570
30,409
30,979
31,459
31,459
(480)
$ 17,767,049
Balance at
August 31,
2020
$ 648,178
4,311,836
864,678
5,824,692
3,535,137
551,298
2,690,810
2,331,300
2,843,608
13,299,399
22,638,174
4,533,630
52,423,356
755,589
293,337
1,281,657
2,321,278
1,528,137
4,495,023
3,555,425
1,761,044
15,991,490
36,431,866
$ 42,256,558
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 5 LONG-TERM LIABILITIES
Summary of long-term liabilities are summarized as follows:
GO Bonds
Revenue Bonds
Deferred Loss on Refunding
Net Bond Premium (Discount)
Capital Lease Obligations
Compensated Absences
Total Long -Term
Liabilities
Balance at
September 1,
2019
$ 7,970,000
18, 995, 000
(3,463)
(22,304)
839,966
37,275
Additions/
Issued
$ 1,220,000
25,143
Retired or
Refunded
$ (1,985,000)
(605,000)
3,463
65,962
(227,715)
Balance at
August 31,
2020
$ 7,205,000
18,390,000
43,658
612,251
62,418
Amount Due
Within
One Year
$ 810,000
770,000
233,257
$ 27.816.474 $ 1.245.143 $ (2.748.290) $ 26.313.327 $ 1.813.257
The bonds and notes are secured by the water and sewer system and any revenues
generated by the provision of water and sewer service through the use of this system.
Long-term debt includes the following issuances:
GO Bonds:
2010 Tax Bonds
2012 Refunding Bonds
2013 Tax Bonds
2014 Tax Bonds
2020 Refunding Series
Revenue Bonds:
2015 Series
2016 Series
2019 Series
Capital Lease Obligations:
Fire Truck Lease
Freightliner Truck
Camera Van
Net Bond Premium (Discount)
Total Long -Term Debt
Interest Maturity
Rate (%) Date
2.00-3.00% 8/31/2021
2.00-3.00% 8/31/2023
2.00-3.00% 8/31/2023
1.50-3.50% 8/31/2024
1.30% 8/31/2031
2.00-3.25% 8/31/2035
.50-2.20% 8/31/2036
3.00-3.5% 8/31/2049
2.50% 10/23/2021
2.95% 2/1/2023
3.95% 2/1/2024
(19)
Due Within
Outstanding One Year
$ 95,000 $ 95,000
720,000 230,000
630,000 205,000
4,540,000 265,000
1,220,000 15,000
7,510,000
3,800,000
7,080,000
245,070
219,216
147,965
43,658
$ 26.250.909 $ 1.813,257
400,000
215,000
155,000
121,022
72,005
40,230
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 5 LONG-TERM LIABILITIES (CONTINUED)
The annual requirements to retire revenue bonds and notes outstanding, including interest,
are:
Year Ending August 31,
2021
2022
2023
2024
2025
2026-2030
2031-2035
2036-2040
2041-2045
2046-2049
Total
General Obligation Bonds
Interest Principal
Amount Amount
$ 190,073 $ 810,000
168,203 835,000
147,808 860,000
124,988 410,000
116,178 415,000
436,267 2,235,000
133,800 1,640,000
$ 1,317,317 $ 7,205,000
Revenue Bonds
Interest Principal
Amount Amount
$ 482,624
468,340
453,514
438,140
422,118
1,813,640
1,175,499
614,043
389,350
121,469
$ 6,378,737
$ 770,000
790,000
805,000
825,000
850,000
4,575,000
5,315,000
1,560,000
1,505,000
1,395,000
$ 18,390,000
Total
Bond Service
Requirements
$ 2,252,697
2,261,543
2,266,322
1,798,128
1,803,296
9,059,907
8,264,299
2,174,043
1,894,350
1,516,469
$ 8,522,317
During the year ended September 30, 2020, the District issued $1,220,000 in Series 2020
General Obligation Refunding Bonds to refinance the outstanding portions of the Series
2010 General Obligation Tax Bonds. The refunding of these bonds resulted in cash savings
of $253,563 with a present value of savings of $169,687.
The District has entered into three capital lease agreements. Of the leased property under
capital leases, all are classified as vehicles. Total capitalized cost is $1,621,640 and
amortized value is $1,092,239 at September 30, 2020. Amortization expense has been
included in depreciation expense for the year ended September 30, 2020.
The following is a schedule of future minimum payments under the capital leases together
with the present value of the minimum lease payments as of September 30, 2020:
Year Ending September 30.
2021
2022
2023
2024
Total Payments
Less: Amount Representing Interest
Present Value of Net Minimum Lease Payments
(20)
Amount
$ 250,240
249,162
120,919
22,840
643,161
(30,910)
$ 612,251
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 6 RETIREMENT PLAN
The District provides retirement, disability, and death benefits for all of its full-time
employees through a nontraditional defined benefit pension plan in the statewide Texas
County and District Retirement System (TCDRS). The Board of Trustees of TCDRS is
responsible for the administration of the statewide agent multiple -employer public employee
retirement system consisting of 701 nontraditional defined benefit pension plans. TCDRS in
the aggregate issues a comprehensive annual financial report (CAFR) on a calendar -year
basis. The CAFR is available upon written request from the TCDRS Board of Trustees at
P.O. Box 2034, Austin, Texas 78768-2034.
The plan provisions are adopted by the governing body of the employer, within the options
available in the Texas state statutes governing TCDRS (TCDRS Act). Members can retire at
ages 60 and above with 10 or more years of service, with 30 years of service regardless of
age, or when the sum of their age and years of service equals 80 or more. Members are
vested after 10 years of service but must leave their accumulated contributions in the plan to
receive any employer -financed benefit. Members who withdraw their personal contributions
in a lump sum are not entitled to any amounts contributed by their employer.
Benefit amounts are determined by the sum of the employee's contributions to the plan, with
interest, and employer -financed monetary credits. The level of these monetary credits is
adopted by the governing body of the employer within the actuarial constraints imposed by
the TCDRS Act so that the resulting benefits can be expected to be adequately financed by
the employer's commitment to contribute. At retirement, death, or disability, the benefit is
calculated by converting the sum of the employee's accumulated contributions and the
employer -financed monetary credits to a monthly annuity using annuity purchase rates
prescribed by the TCDRS Act.
Contributions
The employer has elected the annually determined contribution rate (ADCR) plan provision
of the TCDRS Act. The plan is funded by monthly contributions from both employee
members and the employer based on the covered payroll of employee members. Under the
TCDRS Act, the contribution rate of the employer is actuarially determined annually. The
employer contributed using the actuarially determined rate of 9.02% for the 2019 plan year.
Total employer contributions for the year ended September 30, 2020 was $119,341.
The contribution rate payable by the employee members for calendar years 2018 and 2019
is the rate of 7.00% as adopted by the governing body of the employer. The employee
contribution rate and the employer contribution rate may be changed by the governing body
of the employer within the options available in the TCDRS Act.
(21)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 6 RETIREMENT PLAN (CONTINUED)
Actuarial Assumptions
The total pension liability in the December 31, 2019 actuarial valuation was determined
using the following actuarial assumptions:
Valuation Date: December 31, 2019
Actuarial Cost Method: Entry Age Normal
Asset Valuation Method:
Smoothing Period 5 Years
Recognition Method Non -asymptotic
Corridor None
Inflation: 2.75%
Salary Increase: 4.90%
Investment Rate of Return: 8.00%
Discount Rate
The discount rate used to measure the total pension liability was 8.10%. There was no
change in the discount rate since the previous year, The projection of cash flows used to
determine the discount rate assumed that contributions from plan members and those of the
contributing employers and the nonemployer contributing entity are made at the statutorily
required rates, Based on those assumptions, the pension plan's fiduciary net position was
projected to be available to make all future benefit payments of current plan members,
Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability. The long-
term rate of return on pension plan investments is 8.10%, The long-term expected rate of
return on pension plan investments was determined using a building-block method in which
best -estimates ranges of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting
the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation.
(22)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 6 RETIREMENT PLAN (CONTINUED)
Best estimates of geometric real rates of return for each major asset class included in the
Systems target asset allocation as of December 31, 2019 are summarized below:
Asset Class
U.S. Equities
Private Equity
Global Equities
International Equities - Developed
International Equities - Emerging
Investment -Grade Bonds
Strategic Credit
Direct Lending
Distressed Debt
REIT Equities
Master Limited Partnership (MLPs)
Private Real Estate Partnership
Hedges Funds
Benchmark
Dow Jones U.S. Total Stock Market Index
Cambridge Associates Global Private Equity
and Venture Capital Index(')
MSCI World (Net) Index
MSCI World Ex USA (Net)
MSCI Emerging Markets (Net) Index
Bloomberg Barclays U.S. Aggregate Bond Index
FTSE High -Yield Cash -Pay Capped Index
S&P/LSTA Leveraged Loan Index
Cambridge Associates Distressed Securities
Index(4)
67% FTSE NA REIT Equity REITs Index
+ 33% S&P Global REIT (Net) Index
Alerian MLP Index
Cambridge Associates Real Estate Index(b)
Hedge Fund Research, Inc. (HFRI) Fund of
Funds Composite Index
Target
Allocation(')
Geometric
Real Rate of
Return
(Expected
Minus Inflation)(`)
14.50% 5.20%
20.00%
2.50%
7.00%
7.00%
3.00%
12.00%
11.00%
8.20%
5.50%
5.20%
5.70%
-0.20%
3.14%
7.16%
4.00% 6.90%
3.00%
2.00%
6.00%
4.50%
8.40%
5.50%
8.00% 2.30%
(1) Target asset allocation adopted at the June 2020 TCDRS Board meeting.
(2) Geometric real rates of return equal the expected return minus the assumed inflation rate of 1.80%, per Cliffwater's
2020 capital market assumptions.
(3) Includes vintage years 2006 -present of Quarter Pooled Horizon IRRs.
(4) Includes vintage years 2005 -present of Quarter Pooled Horizon IRRs.
(5) Includes vintage years 2007 -present of Quarter Pooled Horizon IRRs.
Discount Rate Sensitivity Analysis
The following schedule shows the impact of the Net Pension Liability if the discount rate
used was 1% less than and 1% greater than the discount rate that was used (8.10%) in
measuring the 2017 Net Pension Liability:
Total Pension Liability
1%
Decrease
7.10%
$ 183,795
(23)
Current
Discount
Rate
8.10%
$ (51,862)
1%
Increase
9.10%
$ (249,217)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 6 RETIREMENT PLAN (CONTINUED)
Pension Assets/Liabilities, Pension Expense, and Deferred Outflows of Resources
and Deferred Inflows of Resources Related to Pensions
At September 30, 2020, the District reported $51,862 for the net pension asset and pension
expense of $94,976 related to the December 31, 2019 valuation. The breakdown of the
components of the total pension liability, plan fiduciary net position, and the net pension
liability follows:
Balance - December 31, 2018
Changes in Pension Liability
Service Cost
Interest on Total Pension Liability(1)
Effect of Economic/Demographic
Gains or Losses
Refund of Contributions
Benefit Payments
Administrative Expenses
Member Contributions
Net Investment Income
Employer Contributions
Other(2)
Balance - December 31, 2019
Total Pension
Liability
(a)
$ 1,347,031
164,365
121,767
8,770
(7,391)
(9,141)
$ 1,625,401
Increase (Decrease)
Plan Fiduciary
Net Position
(b)
$ 1,293,011
(7,391)
(9,141)
(1,278)
80,287
212,168
103,641
5,965
$ 1,677,262
(1) Reflects the change in the liability due to the time value of money.
TCDRS does not charge fees or interest.
(2) Relates to allocation of system -wide items.
Net Pension
Liability
(a) -(b)
$ 54,020
164,365
121,767
8,770
1,278
(80,287)
(212,168)
(103,641)
(5,965)
$ (51,861)
The District reported deferred outflows of resources and deferred inflows of resources
related to the pension from the following sources:
Differences Between Expected and Actual
Experience
Changes in Assumptions
Net Difference Between Projected and Actual
Earnings
Contributions Made Subsequent to Measurement Date
Total
(24)
Deferred
Inflows
of Resources
$ 22,807
26,816
Deferred
Outflows
of Resources
$ 16,475
5,868
- 89,506
$ 49,623 $ 111,849
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 6 RETIREMENT PLAN (CONTINUED)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions (Continued)
$89,506 reported as deferred outflow of resources for contributions made subsequent to the
measurement date will be recognized as an addition to the net pension asset in 2021. The
net amounts of the employer's balances of deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
Year Ending September 30, Amount
2021 $ (6,392)
2022 (8,501)
2023 2,524
2024 (16,371)
2025 1,460
Thereafter
Total $ (27,280)
NOTE 7 OTHER POSTEMPLOYMENT BENEFITS
Plan Description
The District participates in the retiree Group Term Life program for the Texas County &
District Retirement System (TCDRS), which is a statewide, multiple -employer, public
employee retirement system.
All full and part-time non -temporary employees participate in the plan, regardless of the
number of hours they work in a year and are eligible for the TCDRS pension plan. Only
employers that have elected participation in the retiree Group Term Life program are
included in the OPEB plan.
The plan provides a $5,000 post-retirement death benefit to beneficiaries of service retirees
and disability retirees of employers that have elected participation in the retiree GTL
program. The OPEB benefit is a fixed $5,000 lump -sum benefit. No future increases are
assumed in the $5,000 benefit amount.
Benefit terms are established under the TCDRS Act. Participation in the retiree GTL
program is optional and the employer may elect to opt out of (or opt into) coverage as of
January 1 each year. The District's contribution rate for the retiree GTL program is
calculated annually on an actuarial basis, and is equal to the cost of providing a one-year
deal benefit equal to $5,000.
Membership information is shown in the chart below.
Inactive Employees or Beneficiaries Currently Receiving Benefits 1
Inactive Employees Entitled to But Not Yet Receiving Benefits 6
Active Employees 19
Total 26
(25)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 7 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Total OPEB Liability
The District's total OPEB liability was determined by an actuarial valuation dated
December 31, 2019.
Estimates include assumptions about future employment, mortality, and the healthcare cost
trend. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revisions as actual results are
compared with past expectations and new estimates are made about the future.
Below is a schedule of significant assumptions used to estimate the District's ARC:
Valuation Date:
Amortization Method:
Discount Rate:
Disability:
Mortality:
Depositing Members
Service Retirees, Beneficiaries and
Nondepositing Members
Disabled Retirees
December 31, 2019
Straight -Line Over Expected Working Life
2.74%
Custom rates based on TCDRS experience
90% of the RP -2014 Active Employee Mortality Table
for males and 90% of the RP -2014 Active Employee
Mortality Table for females, projected with 110% of
the MP -2014 Ultimate scale after 2014.
130% of the RP -2014 Healthy Annuitant Mortality
Table for males and 110% of the RP -2014 Healthy
Annuitant Mortality Table for females, both projected
with 110% of the MP -2014 Ultimate scale after 2014.
130% of the RP -2014 Disabled Annuitant Mortality
Table formulas and 115% of the RP -2014 Disabled
Annuitant Mortality Table for females, both projected
with 110% of the MP -2014 Ultimate scale after 2014.
Discount Rate
The discount rate is based on a yield or index for 20 -year, tax-exempt general obligation
municipal bonds with an average rating of AA/Aa or better for benefits not covered by plan
assets.
The 20 Year Bond GO Index published by bondbuyer.com was used in determining the
discount rate used to measure the Total OPEB Liability as of December 31, 2019
(measurement date under GASB 75). At this date, the discount rate was 2.74%.
(26)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 7 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Change in the OPEB Liability
The changes in the total OPEB liability for the Plan are as follows:
Total OPEB Liability:
Service Cost $ 2,241
Interest on Total OPEB Liability 778
Effect of Economic/Demographic Gains
or Losses (1,422)
Effect of Assumptions Changes or Inputs 6,476
Employer Contributions
Total Change in Total OPEB Liability 8,073
Total OPEB Liability - Beginning 16,745
Total OPEB Liability - Ending $ 24,818
Sensitivity of the Total OPEB Liability to Chances in the Discount Rate
The following presents the District's Total OPEB Liability if it were calculated using a
discount rate that is 1% point lower (1.74%) or 1% point higher (3.74%) than the current
rate, for measurement period ended December 31, 2019:
1% Decrease Current Discount Rate 1% Increase
1.74% 2.74% 3.74%
Total OPEB Liability $ 31,538 $ 24,818 $ 19,820
Recoanition of Deferred Outflows and Deferred Inflows of Resources
Gain and losses related to the changes in total OPEB liability is recognized in OPEB
expense systematically over time.
Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The
remaining amounts are categorized as deferred outflows and deferred inflows of resources
related to OPEB and are recognized in future OPEB expense. These amounts are
amortized straight-line over expected working life.
(27)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
NOTE 7 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended September 30, 2020, the District recognized expense related to
OPEB of $3,347. As of September 30, 2019, the District reported deferred inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Inflows Outflows
of Resources of Resources
Differences Between Expected and Actual
Experience $ 1,886 $
Changes in Assumptions 1,932 6,092
Total $ 3,818 $ 6,092
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
Year Ending September 30, Amount
2021 $ 328
2022 328
2023 328
2024 330
2025 238
Thereafter 722
Total $ 2,274
(28)
REQUIRED SUPPLEMENTARY INFORMATION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
YEAR ENDED SEPTEMBER 30, 2020
2019 2018 2017
Total OPEB Liability:
Service Cost $ 2,241 $ 2,503 $ 2,889
Interest on Total OPEB Liability 778 669 595
Effect of Assumption Changes or Inputs 6,476 (2,704) 946
Effect of Economic/Demographic (Gains) or Losses (1,422) (678) (321)
Benefit Payments/Refunds of Contributions -
Net Change in Total OPEB Liability 8,073 (210) 4,109
Total OPEB Liability - Beginning 16,745 16,955 12,846
Total OPEB Liability - Ending $ 24,818 $ 16,745 $ 16,955
Covered Employee Payroll $ 1,146,956 $ 1,055,433 $ 1,140,976
Total OPEB Liability as a % of Covered Payroll 2.16% 1.59% 1.49%
See accompanying Note to Required Supplementary Information.
(29)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
YEAR ENDED SEPTEMBER 30, 2020
2019 2018 2017 2016 2015 2014
Total Pension Liability:
Service Cost $ 164,365 $ 153,752 $ 176,975 $ 200,990 $ 150,689 $ 170,600
Interest on Total Pension Liability 121,767 100,515 83,553 57,230 41,351 27,449
Effect of Plan Changes - - - - (22,086) -
Effect of Assumption Changes or Inputs - 5,971 - 7,686
Effect of Economic/Demographic (Gains)
or Losses 8,770 13,723 (25,170) (9,790) (11,320) (7,057)
Benefit Payments/Refunds of Contributions (16,533) (15,970) (1,695) (2,091) (1,902) (3,156)
Net Change in Total Pension Liability 278,369 252,020 239,634 246,339 164,418 187,836
Total Pension Liability -Beginning 1,347,031 1,095,011 855,377 609,038 444,620 256,784
Total Pension Liability- Ending (a) $ 1,625,400 $ 1,347,031 $ 1,095,011 $ 855,377 $ 609,038 $ 444,620
Fiduciary Net Position:
Employer Contributions $ 103,641 $ 94,803 $ 102,802 $ 95,185 $ 97,043 $ 93,694
Member Contributions 80,287 73,880 79,868 78,388 78,171 74,784
Investment Income Net of Investment Expenses 212,168 (19,840) 126,587 46,440 (15,011) 18,561
Benefit Payments/Refunds of Contributions (16,533) (15,970) (1,695) (2,091) (1,902) (3,156)
Administrative Expenses (1,278) (1,039) (769) (505) (394) (285)
Other 5,966 4,666 2,418 19,889 (47) (21)
Net Change in Fiduciary Net Position 384,251 136,500 309,211 237,306 157,860 183,577
Fiduciary Net Position - Beginning 1,293,011 1,156,511 847,300 609,994 452,134 268,557
Fiduciary Net Position - Ending (b) $ 1,677,262 $ 1,293,011 $ 1,156,511 $ 847,300 $ 609,994 $ 452,134
Net Pension Liability (Asset) - Ending <=(a) -(b) $ (51,862) $ 54,020 $ (61,500) $ 8,077 $ (956) $ (7,514)
Fiduciary Net Position as a % of Total
Pension Liability 103.19% 95.99% 105.62% 99.06% 100.16% 101.69%
Pensionable Covered Payroll $ 1,150,893 $ 1,055,433 $ 1,140,976 $ 1,119,822 $ 1,116,721 $ 1,068,342
Net Pension Liability as a % of Covered Payroll -4.51% 5.12% -5.39% 0.72% -0.09% -0.70%
Note: Only six years of data are presented as prior years are not available.
See accompanying Note to Required Supplementary Information.
(30)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF EMPLOYER PENSION CONTRIBUTIONS
YEAR ENDED SEPTEMBER 30, 2020
Actuarially Actual
Year Ending Determined Employer
December 31, Contribution Contribution
2010 Not Available Not Available
2011 Not Available Not Available
2012 Not Available Not Available
2013 $ 84,476 $ 198,219
2014 93,694 93,694
2015 97,043 97,043
2016 97,875 97,875
2017 102,802 102,802
2018 92,561 94,803
2019 97,337 103,641
Contribution
Deficiency
(Excess)
Not Available
Not Available
Not Available
$ (113,743)
(2,242)
(6,304)
(1) Payroll is calculated based on contributions as reported to TCDRS.
See accompanying Note to Required Supplementary Information.
(31)
Pensionable
Covered
Payroll'
Not Available
Not Available
Not Available
$ 963,243
1,068,342
1,116,721
1,119, 822
1,140,976
1,055,433
1,146,956
Actual
Contributions
as a % of
Covered
Payroll
Not Available
Not Available
Not Available
20.6%
8.8%
8.7%
8.7%
9.0%
9.0%
9.0%
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2020
NOTE 1 OPEB AND PENSION LIABILITY
The District has not accumulated assets in a Trust to pay the OPEB liability.
Chance in Benefit Terms
There were no changes of benefit terms that affected the measurement of the total OPEB or
pension liability during the measurement period.
Chance in Assumptions
There were no changes in assumptions or other inputs that affected the measurement of the
total OPEB during the measurement period. Changes in assumptions affecting the
measurement of the net pension liability included new inflation and mortality tables during
the 2015 plan year and new mortality assumptions during the 2017 plan year.
(32)
OTHER INFORMATION - UNAUDITED
(REQUIRED TCEQ SUPPLEMENTAL INFORMATION)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BUDGETARY COMPARISON SCHEDULE - ENTERPRISE FUND
(UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2020
OPERATING REVENUES
Charges for Water Service
Charges for Sewer Service
Tap Connection and Inspection Fees
Penalties and Interest
Total Operating Revenues
OPERATING EXPENSES
Purchased Water Service
Salaries and Payroll Taxes
Benefits
Repairs and Maintenance
Professional Fees
Utilities
Depreciation
Water and Sewer System Maintenance
Insurance
Software and Annual Support
Office Expenses
Bank and Payment Fees
Dues and Subscriptions
Training and Travel
TCEQ Fees and Permits
Fuel and Lube
Other
Total Operating Expenses
OPERATING INCOME
NONOPERATING REVENUES (EXPENSES)
Property Taxes
Investment Earnings
Interest Expense
Gain on Sale of Fixed Assets
Rental Income
Other Income
Fire Department
Total Nonoperating Revenues
INCREASE IN NET POSITION
Total Net Position - Beginning
TOTAL NET POSITION - ENDING
Original
Budget
$ 6,500,814
3,553,885
3,250
127,758
10,185, 707
2,714,710
1,737,185
555,685
796,135
284,400
340,803
215,979
102,000
134,681
47,000
67,000
9,900
36,202
78,000
27,500
128,434
7,275,614
2,910,093
2,204,929
111,400
(560,855)
13,000
194,833
7,000
(674,452)
1,295,855
4,205,948
30,435,151
$ 34.641.099
Amended
Budget
$ 6,014,191
3,280,000
7,000
70,000
9,371,191
2,299,249
1,532,701
490,774
774,212
264,400
340,803
215,979
98,419
154,681
42,000
67,000
9,900
15,036
45,000
27,500
127,134
6,504,788
2,866,403
2,204,929
71,400
(560,855)
13,000
194,833
21,000
(674,452)
1,269,855
Actual
$ 5,768,789
3,343,636
10,350
71,703
9,194,478
4,136, 258
30,435,151
$ 34.571.409 $
See accompanying Note to Budgetary Comparison Schedules - Enterprise Fund.
(33)
1,865,024
1,495,355
410,280
655,518
221,219
317,965
1,759,150
218,004
99,679
124,037
32,457
73,964
6,578
11,903
35,794
18,286
83,748
7,428,961
1,765,517
2,229,770
133,579
(996,742)
12,520
236,804
61,404
(718,657)
958,678
2,724,195
30,435,151
33.159.346
Variance
Positive
(Negative)
$ (245,402)
63,636
3,350
1,703
(176,713)
434,225
37,346
80,494
118,694
43,181
22,838
(1,759,150)
(2,025)
(1,260)
30,644
9,543
(6,964)
3,322
3,133
9,206
9,214
43,386
(924,173)
747,460
24,841
62,179
(435,887)
(480)
41,971
40,404
(44,205)
(311,177)
436,283
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTE TO BUDGETARY COMPARISON SCHEDULE — ENTERPRISE FUND
SEPTEMBER 30, 2020
The District adopts an accrual basis budget annually. The budget is prepared by management and
approved by the Board of Directors. The adopted budget is not a spending limitation under the law but
rather a tool used in controlling and administering the management and operation of the District. The
District does not historically budget for depreciation expense. Charges for water service were under
budget due to changes in usage. Interest expense was over budget because of fees for the Series
2020 Refunding Bonds issued during the current fiscal year.
(34)
TEXAS SUPPLEMENTAL INFORMATION
(UNAUDITED)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -1. SERVICES AND RATES
SEPTEMBER 30, 2020
(UNAUDITED)
1. Services Provided by the Authority during the Fiscal Year:
X Retail Water
X Retail Wastewater
2. Retail Service Providers
a. Retail Rates for a 5/8" meter (or equivalent):
Water:
Rate Per
Flat 1,000 Gallons
Minimum Minimum Rate Over Minimum
Charge Usage Y/N Usage Usage Levels
$ 32.00 N $ 5.00 0 to 8,000
$ 6.50 8,0001 to 20,000
$ 8.40 20,001 to 45,000
$ 10.90 45,001 and Above
Individuals over the age of 65 receive 3,000 gallons in the monthly minimum.
Wastewater:
Residential $ 33.00 - N $ 5.60 0 and Above
Individuals over the age of 65 receive 2,000 gallons in the monthly minimum.
Commercial $ 36.00 - N $ 5.60 0 and Above
Authority employs winter averaging for wastewater usage? Yes
Total Charges per 10,000 Gallons Usage: Wastewater $ 100.29
(35)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -1. SERVICES AND RATES (CONTINUED)
SEPTEMBER 30, 2020
(UNAUDITED)
1. Services provided by the District:
a) Retail Water
b) Retail Wastewater
c) Wholesale Water
d) Wholesale Wastewater Treatment
e) Fire Protection
f) Irrigation
g) Participates in regional system and/or wastewater service (other than
emergency interconnect)
2. Retail service providers: Current Rates
Water Base Rates
Residential and Commercial
1
Water Volumetric Rates
Meter Size Base Rate Rates per 1,000 Gallons
5/8" $18.15
1" $34.11 $3.96 0 to 6,000
1.5" $60.26 $4.61 6,001 to 17,000
2" $91.63 $5.34 17,001 to 25,000
3" $164.84 $6.20 25,001 to 50,000
4" $269.43 $7.21 50,001 +
6" $530.89
Sewer Base Fee 1 1 Sewer Volumetric Rates
Base Rate Rates per 1,000 Gallons
Residential* $22.15 $4.10 0 to 4,000
$5.85 4,001 to 8,000
$8.25 8,001 to 12,000
$11.75 12,000 +
Commercial** $22.15 $6.94 1,000 +
*Effective October 1, 2016 Winter Averaging for Sewer Rates were adopted for Residential Customers. Residential
sewer rates each year are based on average water usage for the months of December, January, and February.
**Commercial sewer usage is billed based on actual water usage per month
NOTE: all rates noted above were amended effective April 1, 2020.
District employs winter averaging for wastewater usage? Yes
***Total water and wastewater charges per 10,000 gallons usage (including surcharges)
effective April 1, 2020 (based on 5/8" & 3/4")
First 10,000 gallons used 10,000 $ 138.80
Next 10,000 gallons used 20,000 $ 187.09
Next 10,000 gallons used 30,000 $ 244.79
Next 10,000 gallons used 40,000 $ 306.79
Next 10,000 gallons used 50,000 $ 368.79
Next 10,000 gallons used and subsequent 60,000 $ 440.89
*** The above sewer calculations are based on a Winter Average of 10,000 gallons per month.
(36)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -1. SERVICES AND RATES (CONTINUED)
SEPTEMBER 30, 2020
(UNAUDITED)
b) 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).
Meter Size
Connections ESFC Active
Total Active Factor ESFC's
Unmetered - 1
Less than 3/4" 2,500 2,487 1 2,487
1" 701 696 3 1,740
1 1/2" 28 27 5 135
2" 106 95 8 760
3" 42 42 15 630
4" 15 15 25 375
6" 5 5 50 250
8" 1 1 80 80
10" - 115 -
Total Water 3,398 3,368 6,457
Total Wastewater 3,403 3,371 1 3,371
* Number of connections relates to water service if provided. Otherwise, the number of wastewater
connections should be provided.
Note: Total water connections does not include Fire Lines or Portable meters
Note: "inactive" means that water and wastewater connections were made, but service is not
being provided.
Note: District provides wholesale services to the Town of Trophy Club through 1,444 connections
3. Total water consumption (in thousands) during the fiscal year:
Gallons pumped into the system 926,776
Gallons billed to customers 830,970
Water accountability ratio 89.66%
4. Standby Fees:
Does the District assess standby fees? No
For the most recent fiscal year, FY2020:
Debt Service
Operations and Maintenance
Total Total Percentage
Levy Collected Collected
$ 689,442 $ 687,823 99.8%
$ 1,362,863 $ 1,359,663 99.8%
Have standby fees been levied in accordance with Water Code Section 49.231, thereby
constituting a lien on property? No
5. Location of District:
Counties in which District is located:
Denton
Tarrant
Is the District located entirely in one county? No
Is the District located within a city? Partially
Cities in which District is located: Town of Trophy Club
Town of Westlake
Is District located within a city's extra territorial jurisdiction (ETJ)? Unknown
ETJ's in which District is located: Unknown
Is the general membership of the Board appointed by an office
outside the District? No
(37)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -2. SCHEDULE OF ENTERPRISE FUND EXPENSES
(UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2020
OPERATING EXPENSES
Purchased Water Service $ 1,865,024
Benefits 410,280
Repairs and Maintenance 655,518
Professional Fees 221,219
Utilities 317,965
Depreciation 1,759,150
Water and Sewer System Maintenance 218,004
Insurance 99,679
Software and Annual Support 124,037
Office Expenses 32,457
Bank and Payment Fees 73,964
Dues and Subscriptions 6,578
Training and Travel 11,903
TCEQ Fees and Permits 35,794
Fuel and Lube 18,286
Other 83,748
TOTAL EXPENSES $ 7,428,961
*Number of persons employed by the Authority: 21 Full -Time, 0 Part -Time
(Not including independent contractors or consultants.)
(38)
Financial Institution
Prosperity Bank
Prosperity Bank
TexPool
TexPool
TexPool
TexPool
TexPool
TexPool
TexPool
TexPool
Bank of Texas BOKF
Bank of Texas BOKF
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -3. SCHEDULE OF TEMPORARY INVESTMENTS
(UNAUDITED)
SEPTEMBER 30, 2020
Identification Interest Maturity
Number Rate Date
216267724 1.220 Demand
7318701 0.500 Demand
613300002 2.1371 Demand
613300003 2.1371 Demand
613300011 2.1371 Demand
613300013 2.1371 Demand
613300014 2.1371 Demand
613300017 2.1371 Demand
613300018 2.1371 Demand
613300020 2.1371 Demand
82-1747-01-1 1.560 Demand
82-3288-01-4 1.300 Demand
Balance
End of Year
$ 1,844,602
3,343,202
6,152,229
34,511
492,391
25,988
893,867
5,625
269,721
531
784,967
3,892,525
Total -AII Funds $ 17,740,158
(39)
Accrued Interest
End of Year
Paid Monthly
Paid Monthly
Paid Daily
Paid Daily
Paid Daily
Paid Daily
Paid Daily
Paid Daily
Paid Daily
Paid Daily
Paid Daily
Paid Daily
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -4. TAXES LEVIED AND RECEIVABLE
SEPTEMBER 30, 2020
(UNAUDITED)
Operations
General Fund
Fire
Total
Debt
Service
Total
Taxes receivable beginning of year $ 2,088 $ 19,523 $ 21,610 $ 11,850 $ 33,461
2019 tax levy 131,748 1,186,791 1,318,540 667,020 1,985,560
Total to be accounted for 133,836 1,206,314 1,340,150 678,870 2,019,020
Less collections and adjustments:
Current year (1319,429) (1,188f3,911) (1,315,340) (665,401) (1,9980,741)
PriorTotal to years
accounted for (132,085) (1,189,60 (1,321,687) (669,266) (1,990,953)
Taxes receivable, end of year $ 1,751 $ 16,712 $ 18,463 $ 9,603 $ 28,067
Taxes receivable by year
1996 and prior $ $ - $ $ $
1997
1998
1999
2000
2001
2002
2003
2004
2005 - - - - -
2006 24 111 135 172 307
2007 23 223 245 272 517
2008 57 448 505 364 869
2009 172 693 865 436 1,301
2010 132 1,645 1,778 1,159 2,936
2011 132 1,463 1,595 748 2,343
2012 140 1,471 1,611 276 1,887
2013 144 1,346 1,491 565 2,055
2014 247 1,286 1,534 687 2,221
2015 71 1,084 1,155 814 1,969
2016 67 1,142 1,209 742 1,951
2017 90 785 875 499 1,374
2018 232 2,034 2,266 1,251 3,517
2019 320 2,880 3,200 1,619 4,819
$ 1,852 $ 16,612 $ 18,464 $ 9,603 $ 28,067
F/Y F/Y F/Y F/Y F/Y
Property valuations (in 000's) 19/20 18/19 17/18 16/17 15/16
Land $ 800,425 $ 667,906 $ 620,210 $ 562,280 $ 497,482
Improvements 1,042,035 981,366 908,581 798,401 719,295
Personal property (140,704)109,764 103,985 105,783 99,772 71,096
Exemptions $ 1,811,520 $ 1,7 ) ) 1,351 $ 1,552,019 $ 1,4) 02,708 $ 1,2)
6 30,568
(40)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -4. TAXES LEVIED AND RECEIVABLE (CONTINUED)
SEPTEMBER 30, 2020
(UNAUDITED)
Tax rate per $100 valuation
Operations 0.00748 0.00765 0.00788 0.00438 0.00472
Fire department 0.06738 0.06719 0.06870 0.07445 0.07222
Debt service 0.03787 0.04134 0.04363 0.04839 0.05420
Tax rate per $100 valuation 0.11273 0.11618 0.12021 0.12722 0.13114
Tax levy:
$ 2,052,305 $ 1,919,984 $ 1,870,008 $ 1,779,098 $ 2,000,874
Percent of taxes collected to taxes levied 99.76% 99.48% 99.75% 99.60% 99.70%
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
None $
Total rate(s) of special districts $
Tax rates (per $100 net taxable value) for all overlapping jurisdictions. Include any taxing entities which overlap 10% or more
of the District.
Denton County Tarrant County
County Denton/Tarrant 0.225278 0.234
City Town of Trophy Club 0.446442 0.446442
School District Northwest ISD/Carroll ISD 1.42 1.3
2.09172 1.980442
Special Districts not included above
Hospital District 0 0.224429
Tarrant County Comm. College 0 0.13017
Total Special Districts 0 0.354599
MUD 1 District Tax Rate 0.11273 0.11273
Total Overlapping Tax District 2.20445 2.447771
(41)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS
(UNAUDITED)
SEPTEMBER 30, 2020
Due During Fiscal Years Ending
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
All Bonded Debt Series
Principal Due
September 1
$ 1,580,000
1,625,000
1,665,000
1,235,000
1,265,000
1,285,000
1,325,000
1,360,000
1,400,000
1,440,000
1,485,000
1,400,000
1,440,000
1,500,000
1,130,000
515,000
250,000
255,000
265,000
275,000
285,000
290,000
300,000
310,000
320,000
330,000
345,000
355,000
365,000
Interest Due
March 1 and
September 1
$ 672,697
636,543
601,322
563,128
538,296
511,556
482,948
452,287
419,307
383,809
344,703
304,049
263,749
221,124
175,675
142,612
129,538
122,038
114,069
105,788
96,850
87,588
78,163
68,413
58,338
47,538
36,400
24,756
12,775
$ 25,595,000 $
Total
$ 2,252,697
2,261,543
2,266,322
1,798,128
1,803,296
1,796,556
1,807,948
1,812,287
1,819,307
1,823,809
1,829,703
1,704,049
1,703,749
1,721,124
1,305,675
657,612
379,538
377,038
379,069
380,788
381,850
377,588
378,163
378,413
378,338
377,538
381,400
379,756
377,775
7,696,050 $ 33,291,050
General Obligation Bonds - Series 2010 (Fire Station)
($2,000,000)
Due During Fiscal
Years Ending
2021
Principal Due
1 -Sep
$ 95,000
Interest Due
March 1 and
September 1
$ 3,325
$ 95,000 $
(42)
Total
$ 98,325
3,325 $ 98,325
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI-5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS (CONTINUED)
(UNAUDITED)
SEPTEMBER 30, 2020
General Obligation Bonds - Series 2012
(2,355,000)
Interest Due
Due During Fiscal Principal Due March 1 and
Years Ending September 1 September 1 Total
2021 $ 230,000 $ 21,600 $ 251,600
2022 240,000 14,700 254,700
2023 250,000 7,500 257,500
$ 720,000 $ 43,800 $ 763,800
General Obligation Bonds - Series 2013
(1,905,000)
Interest Due
Due During Fiscal Principal Due March 1 and
Years Ending September 1 September 1 Total
2021 $ 205,000 $ 19,975 $ 224,975
2022 210,000 13,825 223,825
2023 215,000 7,525 222,525
$ 630,000 $ 41,325 $ 671,325
General Obligation Bonds - Series 2014
(5,765,000)
Interest Due
Due During Fiscal Principal Due March 1 and
Years Ending September 1 September 1 Total
2021 $ 265,000 $ 129,313 $ 394,313
2022 270,000 124,013 394,013
2023 280,000 118,613 398,613
2024 290,000 112,313 402,313
2025 295,000 105,063 400,063
2026 305,000 97,688 402,688
2027 315,000 90,063 405,063
2028 325,000 81,400 406,400
2029 335,000 72,463 407,463
2030 345,000 62,413 407,413
2031 360,000 51,200 411,200
2032 370,000 39,500 409,500
2033 385,000 27,475 412,475
2034 400,000 14,000 414,000
$ 4,540,000 $ 1,125,513 $ 5,665,513
(43)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS (CONTINUED)
(UNAUDITED)
SEPTEMBER 30, 2020
Unlimited Tax Refunding Bonds, Series 2020
Refunded Bond: M1 Series 2010
(1,220,000)
Interest Due
Due During Fiscal Principal Due March 1 and
Years Ending September 1 September 1 Total
2021 $ 15,000 $ 15,860 $ 30,860
2022 115,000 15,665 130,665
2023 115,000 14,170 129,170
2024 120,000 12,675 132,675
2025 120,000 11,115 131,115
2026 115,000 9,555 124,555
2027 120,000 8,060 128,060
2028 125,000 6,500 131,500
2029 125,000 4,875 129,875
2030 125,000 3,250 128,250
2031 125,000 1,625 126,625
$ 1,220,000 $ 103,350 $ 1,323,350
Revenue Bonds - Series 2015
(9,230,000)
Interest Due
Due During Fiscal Principal Due March 1 and
Years Ending September 1 September 1 Total
2021 $ 400,000 $ 200,438 $ 600,438
2022 410,000 192,438 602,438
2023 420,000 184,238 604,238
2024 435,000 175,838 610,838
2025 450,000 167,138 617,138
2026 460,000 157,013 617,013
2027 475,000 145,513 620,513
2028 490,000 133,638 623,638
2029 510,000 120,163 630,163
2030 525,000 106,138 631,138
2031 545,000 90,388 635,388
2032 565,000 74,038 639,038
2033 585,000 57,088 642,088
2034 610,000 39,538 649,538
2035 630,000 20,475 650,475
$ 7,510,000 $ 1,864,075 $ 9,374,075
(44)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI-5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS (CONTINUED)
(UNAUDITED)
SEPTEMBER 30, 2020
Revenue Bonds - Series 2016
(4,635,000)
Interest Due
Due During Fiscal Principal Due March 1 and
Years Ending September 1 September 1 Total
2021 $ 215,000 $ 58,599 $ 273,599
2022 220,000 56,965 276,965
2023 220,000 55,139 275,139
2024 220,000 53,115 273,115
2025 225,000 50,893 275,893
2026 225,000 48,463 273,463
2027 230,000 45,875 275,875
2028 230,000 42,862 272,862
2029 235,000 39,619 274,619
2030 240,000 35,671 275,671
2031 245,000 31,303 276,303
2032 250,000 26,624 276,624
2033 250,000 21,749 271,749
2034 260,000 16,749 276,749
2035 265,000 11,262 276,262
2036 270,000 5,724 275,724
$ 3,800,000 $ 600,612 $ 4,400,612
(45)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS (CONTINUED)
(UNAUDITED)
SEPTEMBER 30, 2020
Revenue Bonds - Series 2019
(7,080,000)
Interest Due
Due During Fiscal Principal Due March 1 and
Years Ending September 1 September 1 Total
2021 $ 155,000 $ 223,588 $ 378,588
2022 160,000 218,938 378,938
2023 165,000 214,138 379,138
2024 170,000 209,188 379,188
2025 175,000 204,088 379,088
2026 180,000 198,838 378,838
2027 185,000 193,438 378,438
2028 190,000 187,888 377,888
2029 195,000 182,188 377,188
2030 205,000 176,338 381,338
2031 210,000 170,188 380,188
2032 215,000 163,888 378,888
2033 220,000 157,438 377,438
2034 230,000 150,838 380,838
2035 235,000 143,938 378,938
2036 245,000 136,888 381,888
2037 250,000 129,538 379,538
2038 255,000 122,038 377,038
2039 265,000 114,069 379,069
2040 275,000 105,788 380,788
2041 285,000 96,850 381,850
2042 290,000 87,588 377,588
2043 300,000 78,163 378,163
2044 310,000 68,413 378,413
2045 320,000 58,338 378,338
2046 330,000 47,538 377,538
2047 345,000 36,400 381,400
2048 355,000 24,756 379,756
2049 365,000 12,775 377,775
$ 7,080,000 $ 3,914,050 $ 10,994,050
(46)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -6. CHANGES IN LONG-TERM DEBT
(UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2020
Series 2010 Series 2012 Series 2013 Series 2014 M1 GO Series 2020 Series 2015 Series 2016 Series 2019
GO Bonds GO Bonds GO Bonds GO Bonds GO Bonds Revenue Bonds Revenue Bonds Revenue Bonds Total
Interest Rate 3.50-5.00% 2.00-3.00% 2.00-3.50% 1.50-3.50% 1.3% 2.0-3.25% 0.53-2.12% 3.00-3.50%
Date Interest Payable 3/1 & 9/1 3/1 & 9/1 3/1 & 9/1 3/1 & 9/1 3/1 &9/1 3/1 & 9/1 3/1 & 9/1 3/1 & 9/1
Maturity Date 9/1/2031 9/1/2023 9/1/2023 9/1/2034 9/1/2031 9/1/2035 9/1/2036 9/1/2049
Bonds Outstanding at
Beginning of Year $ 1,405,000 $ 945,000 $ 825,000 $ 4,795,000 $ $ 7,900,000 $ 4,015,000 $ 7,080,000 $ 26,965,000
Bonds Issued $ - $ $ - $ $ 1,220,000 $ $ - $ - $ 1,220,000
Retirements of Principal $ 1,310,000 $ 225,000 $ 195,000 $ 255,000 $ $ 390,000 $ 215,000 $ - $ 2,590,000
Bonds Outstanding at End of
Fiscal Year $ 95,000 $ 720,000 $ 630,000 $ 4,540,000 $ 1,220,000 $ 7,510,000 $ 3,800,000 $ 7,080,000 $ 25,595,000
Retirements of Interest $ 33,191 $ 28,350 $ 25,825 $ 133,775 $ 3,260 $ 208,238 $ 60,125 $ 326,686 $ 819,450
Paying Agent's Name & City: The Bank of New The Bank of New The Bank of New The Bank of TX JP Morgan The Bank of TX The Bank of TX The Bank of TX
York Mellon York Mellon York Mellon Corporate Trust Chase Corporate Trust Corporate Trust Corporate Trust
Newark, NJ Newark, NJ Newark, NJ Austin, TX New York, NY Austin, TX Austin, TX Austin, TX
General
Obligation
Bond Authority Bonds
Amount Authorized by Voters $ 34,859,217
Amount Issued $ 34,855,000
Remaining to be Issued $ 4,217
(47)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -7. COMPARATIVE SCHEDULE OF REVENUES
AND EXPENSES ENTERPRISE FUND
(UNAUDITED)
FIVE YEARS ENDED SEPTEMBER 30, 2020
2020 2019 2018 2017 2016
OPERATING REVENUES
Charges for Water Service $ 5,768,789 $ 5,358,205 $ 6,169,279 $ 5,958,412 $ 4,325,300
Charges for Sewer Service 3,343,636 3,181,555 3,117,435 2,674,335 2,404,626
Tap Connection and Inspection Fees 10,350 -
Penalties and Interest 71,703
Total Operating Revenues 9,194,478 8,539,760 9,286,714 8,632,747 6,729,926
OPERATING EXPENSES
Purchased Water Service 1,865,024
Salaries and Payroll Taxes 1,495,355
Benefits 410,280
Repairs and Maintenance 655,518
Professional Fees 221,219
Utilities 317,965
Depreciation 1,759,150
Water and Sewer System Maintenance 218,004
Insurance 99,679
Software and Annual Support 124,037
Office Expenses 32,457
Bank and Payment Fees 73,964
Dues and Subscriptions 6,578
Training and Travel 11,903
TCEQ Fees and Permits 35,794
Fuel and Lube 18,286
Other 83,748 -
Water Operations 3,325,173 3,385,244 3,217,030 3,254,882
General Government 1,561,141 1,395,655 1,336,409 1,302,074
Wastewater Operations 1,250,940 1,149,853 1,209,579 1,175,588
Non -Departmental 179,748 190,494 294,196 380,317
Wastewater Collection System 68,213 67,858 67,830 68,016
Directors 2,500 9,811 6,497 15,782
Total Operating Expenses 7,428,961 6,387,715 6,198,915 6,131,541 6,196,659
OPERATING INCOME 1,765,517 2,152,045 3,087,799 2,501,206 533,267
NONOPERATING REVENUES (EXPENSES)
Property Taxes 2,229,770 1,918,080 1,878,557 1,785,407 2,038,634
Investment Earnings 133,579 233,313 112,040 54,791 44,116
Interest Expense (996,742) (567,032) (569,293) (584,186) (553,343)
Gain on Sale of Fixed Assets 12,520 52,600 9,477 1,906 48,083
Rental Income 236,804 - - -
Contribution Not Restricted to Specific Programs - 298,654 195,528 103,619 146,125
Other Income 61,404 85,068 91,972 136,863 142,027
Capital Grants and Contributions - - 584,570
Fire Department (718,657) (765,952) (698,845) (702,943) (1,098,445)
Total Nonoperating Revenues 958,678 1,254,731 1,019,436 795,457 1,351,767
INCREASE IN NET POSITION 2,724,195 3,406,776 4,107,235 3,296,663 1,885,034
Total Net Position - Beginning 30,435,151 27,028,375 22,921,140 19,624,477 17,739,443
TOTAL NET POSITION - ENDING $ 33,159,346 $ 30,435,151 $ 27,028,375 $ 22,921,140 $ 19,624,477
Total Active Retail Water and/or
Wastewater Connections 3,371 3,330 3,284 3,244 3,422
(48)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -7. COMPARATIVE SCHEDULE OF REVENUES
AND EXPENSES ENTERPRISE FUND (CONTINUED)
(UNAUDITED)
FIVE YEARS ENDED SEPTEMBER 30, 2020
2020 2019 2018 2017 2016
OPERATING REVENUES
Charges for Water Service 63% 63% 66% 69% 64%
Charges for Sewer Service 36% 37% 34% 31% 36%
Tap Connection and Inspection Fees 0% 0% 0% 0% 0%
Penalties and Interest 1% 0% 0% 0% 0%
Total Operating Revenues 100% 100% 100% 100% 100%
OPERATING EXPENSES
Purchased Water Service 20% 0% 0% 0% 0%
Salaries and Payroll Taxes 16% 0% 0% 0% 0%
Benefits 4% 0% 0% 0% 0%
Repairs and Maintenance 7% 0% 0% 0% 0%
Professional Fees 2% 0% 0% 0% 0%
Utilities 3% 0% 0% 0% 0%
Depreciation 19% 0% 0% 0% 0%
Water and Sewer System Maintenance 2% 0% 0% 0% 0%
Insurance 1% 0% 0% 0% 0%
Software and Annual Support 1% 0% 0% 0% 0%
Office Expenses 0% 0% 0% 0% 0%
Bank and Payment Fees 1% 0% 0% 0% 0%
Dues and Subscriptions 0% 0% 0% 0% 0%
Training and Travel 0% 0% 0% 0% 0%
TCEQ Fees and Permits 0% 0% 0% 0% 0%
Fuel and Lube 0% 0% 0% 0% 0%
Other 1% 0% 0% 0% 0%
Water Operations 0% 39% 36% 37% 48%
General Government 0% 18% 15% 15% 19%
Wastewater Operations 0% 15% 12% 14% 17%
Non -Departmental 0% 2% 2% 3% 6%
Wastewater Collection System 0% 1% 1% 1% 1%
Directors 0% 0% 0% 0% 0%
Total Operating Expenses 81% 75% 67% 71% 92%
OPERATING INCOME 19% 25% 33% 29% 8%
NONOPERATING REVENUES (EXPENSES)
Property Taxes 24% 22% 20% 21% 30%
Investment Earnings 1% 3% 1% 1% 1%
Interest Expense -11% -7% -6% -7% -8%
Gain on Sale of Fixed Assets 0% 1% 0% 0% 1%
Rental Income 3% 0% 0% 0% 0%
Contribution Not Restricted to Specific Programs 0% 3% 2% 1% 2%
Other Income 1% 1% 1% 2% 2%
Capital Grants and Contributions 0% 0% 0% 0% 9%
Fire Department -8% -9% -8% -8% -16%
Total Nonoperating Revenues 10% 15% 11% 9% 20%
INCREASE IN NET POSITION 30% 40% 44% 38% 28%
(49)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -8. BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS
SEPTEMBER 30, 2020
(UNAUDITED)
Complete District Mailing Address: 100 Municipal Drive, Trophy Club, Texas 76262
District Business Telephone Number: Metro (682) 831-4600
Limit of Fees of Office that a Director may receive during a fiscal year: $0
(Set by Board Resolution - TWC Section 49.060)
Name and Address
Board Members:
Term of Office Fees of Expense Title
Elected/Expires Office Paid Reimbursements at
or Date Hired FY19 FY19 Year End
Gregory Wilson
2013 Churchill Downs Lane
Trophy Club, TX 76262 05/16-05/20 $ - $ - Director
William Rose
219 Inverness Drive
Trophy Club, TX 76262 05/16-05/20 $ $ Director
Steve Flynn
417 Ramsey Trail
Trophy Club, TX 76262 05/18-05/22 $ $ President
Kelly Castonguay
402 Parkview Drive
Trophy Club, TX 76262 05/18-5/22 $ - $ - Secretary/Treasurer
Mark Chapman
197 Durango Dr
Trophy Club, TX 76262 05/18-05/22 $ $ Vice -President
(50)