HomeMy WebLinkAboutFY Ended September 30, 2021TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2021
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TABLE OF CONTENTS
YEAR ENDED SEPTEMBER 30, 2021
ANNUAL FILING AFFIDAVIT 1
INDEPENDENT AUDITORS' REPORT 2
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) 4
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 (UNAUDITED)
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS 30
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS 31
SCHEDULE OF EMPLOYER PENSION CONTRIBUTIONS 32
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 33
TEXAS SUPPLEMENTARY INFORMATION (UNAUDITED)
BUDGETARY COMPARISON SCHEDULE - ENTERPRISE FUND 34
NOTE TO BUDGETARY COMPARISON SCHEDULE - ENTERPRISE FUND 35
TSI -1. SERVICE AND RATES 36
TSI -2. SCHEDULE OF ENTERPRISE FUND EXPENSES 39
TSI -3. SCHEDULE OF TEMPORARY INVESTMENTS 40
TSI -4. TAXES LEVIED AND RECEIVABLE 41
TSI -5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS 43
TSI -6. CHANGES IN LONG-TERM DEBT 48
TSI -7. COMPARATIVE SCHEDULE OF REVENUES AND EXPENSES ENTERPRISE 49
FUND
TSI -8. BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS 51
ANNUAL FILING AFFIDAVIT
THE STATE OF TEXAS
COUNTY OF DENTON
I, _ Steven 3, Flynn
(Name of Duly Authorized District Representative)
Of Trophy Club Municipal Utility District No. 1
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 19`h day of January 2022 its annual audit report for the fiscal year or
period ended September 30, 2021 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 fling affidavit and the attached copy of the audit report are being submitted to the Texas
Commission on Environmental Quality in satisfaction of the annufiling requirements of the Texas Water
Code Section 49.194.
Date: January 19th 2022
Sw
LAURIE SLAGNT
-atr,..t. Bcol Notary Public. Stew otTexas
$ Comm. Expires 01-19-2024
41/15r1",Noiary ID 12872063-4
By:
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(1)
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, 2021, 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
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 an opinion 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.
A member of
Nexia
International
.;LA is an independent member of Nexia International, a leading, global network of indepen,
accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.
(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, 2021,
and the respective changes in financial position and its cash flows 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 30-33 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 Supplementary Information on pages
34-52 is required by the Texas Commission on Environmental Quality (TCEQ) as published in the
Water District Financial Management Guide. The Texas Supplementary Information is presented
for purposes of additional analysis and is not a required part of the basic financial
statements. The Texas Supplementary Information has 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.
V67cia-t4'e-7o,ii/a-,c_./Z_)
CliftonLarsonAllen LLP
Fort Worth, Texas
January 18, 2022
(3)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2021
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, 2021.
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 $35,847,300 (net position). Of
this amount, $13,086,948 (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 $2,687,954. This increase is primarily the result of
the District's operating revenues outpacing operating expenses by $1,811,559.
• The District's total debt decreased by $1,813,257, primarily due to total principal payments on
bonds payable and capital lease obligations 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 14-29.
(4)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2021
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 36-52 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, 2021.
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 $35,847,300 as of September 30,
2021.
The largest portion of the District's net position (61%) 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
(3%) represents resources that are subject to external restrictions on how they may be used. The
remaining balance of unrestricted net position ($13,086,948, or 36%) may be used to meet the District's
ongoing obligations to customers and creditors.
Trophy Club Municipal District No. l'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
Net Position:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Net Position
2021 2020
$ 19,708,025 $ 19,098,880
41,434,713 42,256,558
246,946 117,641
61,389,684 61,473,079
2,796,979 3,735,704
22,679,125 24,524,888
66,280 53,441
25,542,384 28,314,033
21,858,843 20,803,435
901,509 959,991
13,086,948 11,395,920
$ 35,847,300 $ 33,159,346
(5)
Change
$ 609,145
(821,845)
129,305
(83,395)
(938,725)
(1,845,763)
12,839
(2,771,649)
1,055,408
(58,482)
1,691,028
$ 2,687,954
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2021
Regarding restricted net position, $901,509 represents the portion restricted for debt service.
Unrestricted net position of $13,086,948 may be used to meet the government's ongoing obligations to
its customer and creditors.
As of September 30, 2021, 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 $609,145, primarily due to an increase in cash, cash
equivalents, and investments. Operating revenues and operating expenses increased by 2% and 5%,
respectively, and interest expense decreased $328,064 resulting in an overall higher cash and
investments balance at September 30, 2021.
During the current year, the District's debt (its revenue and general obligation bonds) decreased by
$1,580,000. Also included in long-term liabilities is the requirement to report an OPEB (Other
Postemployment Benefits) liability of $30,591, which includes a $5,773 increase and Net Pension
Liability of $30,690, which includes a $82,552 increase.
The District's net position increased by $2,687,954 during the current fiscal year. Net position invested
in capital assets, net of related debt, increased by $1,055,408. Unrestricted net position increased by
$1,691,028.
The following table provides a summary of the District's operations for the fiscal year ended
September 30, 2021, with comparative totals for the fiscal year ended September 30, 2020.
Trophy Club Municipal Utility District No. l's Change in Net Position — Table 2
2021 2020 Change
Total Operating Revenues $ 9,386,772 $ 9,194,478 $ 192,294
Operating Expenses (7,575,213) (7,210,957) (364,256)
Nonoperating Revenue (Expense), Net 876,395 740,674 135,721
Excess of Revenues Over Expenses 2,687,954 2,724,195 (36,241)
Change in Net Position 2,687,954 2,724,195 (36,241)
Net Position - Beginning of Year 33,159,346 30,435,151 2,724,195
Net Position - End of Year $ 35,847,300 $ 33,159,346 $ 2,687,954
(6)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2021
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 $13,029,518. This fund's net position increased in the fiscal year ended
September 30, 2021 by $2,687,954.
Proprietary Fund Budgetary Highlights — The District Board of Directors approved a budget amendment
during the FY 2020-2021 to largely account for the continued effects of COVID-19 and recent
tendencies which reduced operational revenues by $468,488 and reduced operational expenses by
$867,388, for a net impact of $398,900 from the original adopted budget.
Actual operating revenues were decreased by $412,003 from the original adopted budget which totaled
$56,485 more than the amended budget. Some significant operating revenue impacts were the
decrease in water consumption sold compared to projected, reduction in utility billing revenue (penalties
and service charges) collected, and a significant non-operating revenue impact was the decrease in
interest earned throughout all accounts due to interest rates dropping to near zero.
Actual operating expenses were $393,139 above the original adopted budget which totaled $1,260,527
over the amended budget. The significant increase in expense is due to presenting depreciation
expense in the financial statements, $1,815,475, which is not directly presented in the adopted or
amended budget. Other operational expense impacts were decreased water purchased from Fort
Worth due to decreased consumption sold, reduced repair and maintenance due to reduced workload
on the water system, and a reduction in a combined salaries and employee benefits due to open
positions throughout the fiscal 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 34.
CAPITAL ASSETS
The District's capital assets for its business -type activities as of September 30, 2021 totaled to
$41,434,713 (net of accumulated depreciation). Capital assets include land, building, equipment,
improvements, infrastructure, water rights and construction in progress.
The District's capital assets decreased $821,845 during the current year.
The major capital asset events during the current fiscal year include the completion of Chimney
Rock/Carnoustie waterline project and transferring from asset group CIP to Water System, continued
additions to the 16 -inch Waterline Interconnect project, the project start of the District's water and
wastewater master plan and the emergency response plan.
(7)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2021
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
2021 2020
$ 4,351,712 $ 4,311,836
648,178 648,178
864,678 864,678
3,535,137 3,535,137
600,776 551,298
2,984,794 2,690,810
2,354,963 2,331,300
2,816,913 2,843,608
14, 019, 565 13, 299, 399
22,497,150 22,638,174
4,541,890 4,533,630
$ 59,215,756 $ 58,248,048
Change
$ 39,876
49,478
293,984
23,663
(26,695)
720,166
(141,024)
8,260
$ 967,708
Accumulated depreciation at September 30, 2021 and 2020 was $17,781,043 and $15,991,490
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
2021
$ 42,256,558
1,154, 549
(1,815,475)
(160,919)
$ 41,434,713
2020
$ 42,628,151
19,154,606
(1,759,150)
(17,767,049)
$ 42,256,558
Additional information on the District's capital assets can be found in Note 4 on page 19 of this report,
DEBT ADMINISTRATION
At the end of the current fiscal year, the District had total debt obligations of $24,393,994, which was
comprised of revenue bonds and notes payable and capital lease obligations. The payoff date of the
District's bonds and notes is during 2049.
Outstanding Debt at Year -End
Bonds, Capital Lease Obligations, and Note Payable
Revenue Bonds/Notes Payable
Capital Lease Obligations
Total
2021
$ 24,015,000
378,994
$ 24,393,994
(8)
2020 Change
$ 25,595,000 $ (1,580,000)
612,251 (233,257)
$ 26,207,251 $ (1,813,257)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2021
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
2022 budgetary highlights:
Revenue: The District's 2022 General Fund budgeted revenues reflect a projected increase of
$143,482, or 1.4%, when compared to the District's 2021 adopted budget.
• Water revenue is budgeted to increase from $5,932,489 for fiscal year 2021 to $6,033,776
for fiscal year 2022 with a total projected increase of $101,287, or 1.7%.
• Sewer revenue is budgeted to increase from $3,677,146 for fiscal year 2021 to $3,824,473
for fiscal year 2022 with a total projected increase of $147,327, or 4.0%.
• Even though the District's M&O tax rate decreased from fiscal year 2021 to fiscal year 2022,
the District is projected to collect a M&O tax revenue increase total of $27,178. The
segregated M&O property tax revenue from fiscal year 2021 to fiscal year 2022 is budgeted
to increase by $26,558 for Fire and increase by $620 for the MUD.
Expenses: The District's 2022 General Fund budgeted expenses reflect a projected increase of
$148,588, or 1.45%, when compared to the District's 2021 adopted budget.
• Wholesale water purchase from City of Fort Worth decreasing by $87,684, or 3.4%, due to
the continued impacts of COVID-19 consumption demands.
• Overall capital outlay increased by $532,000, or 42.1% due to the District's proactive asset
replacement schedule and the continued inflation cost for service and materials.
• The District's personnel cost collectively decreased by $45,168, or 2.0% due to the
reduction in FTE in both Wastewater and Admin combined with COLA increase and new
employee benefit rates.
Overall: The District's 2022 operational budget is anticipated to have revenues of $10,370,758 and
expenses of $10,370,758 for a total projected net of $0 for the year.
Debt Service Fund 2022 budgetary highlights:
• The District's Debt Service expenses are budgeted to increase from $2,256,798 in fiscal
year 2021 to $2,264,894 budgeted for fiscal year 2022 for a total increase of $8,096, or
0.36%.
• Property tax revenues collected for Debt Service are budgeted to decrease from $691,010
in fiscal year 2021 to $690,667 budgeted in fiscal year 2022 for a total decrease of $343, or
0.05%.
Overall: The District's consolidated budget revenue increased from $14,315,262 in fiscal year 2021
budget to $14,513,228 in fiscal year 2022 budget totaling a projected increase of 1.38%. The
District's consolidated budget expenses increased from $14,287,657 in fiscal year 2021 budget to
$14,513,228 in fiscal year 2022 budget totaling a projected decrease of 1.58%.
(9)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2021
Sewer and Water Rates highlights:
The District did not adopt new water or sewer rates during FY 2021 for either residential or
commercial.
Legal highlights:
The District has one primary legal matter outstanding during FY 2021; 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, 2021
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
CURRENT ASSETS
Cash and Cash Equivalents $ 5,156,204
Investments 7,092,105
Accounts Receivable, Net of Allowance 1,340,899
Taxes Receivable 23,947
Prepaid Expenses 4,956
Total Current Assets 13,618,111
RESTRICTED ASSETS
Cash and Cash Equivalents 1,097,321
Investments 4,992,593
Total Restricted Assets 6,089,914
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION
Construction in Progress, Nondepreciable 4,351,712
Land, Nondepreciable 648,178
Water Rights, Nondepreciable 864,678
Buildings and Other Improvements, Net 2,985,345
Machinery, Vehicles and Other Equipment, Net 2,580,015
Water System, Net 29,976,755
Organization Costs, Net 28,030
Total Capital Assets 41,434,713
DEFERRED OUTFLOWS OF RESOURCES
Related to Pension 238,457
Related to OPEB 8,489
Total Deferred Outflows of Resources 246,946
Total Assets and Deferred Outflows of Resources $ 61,389,684
LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION
CURRENT LIABILITIES
Accounts Payable $ 487,495
Accrued Liabilities 75,820
Accrued Interest Payable 57,355
Customer Deposits 312,360
Current Portion of Long -Term Debt 1,863,949
Total Current Liabilities 2,796,979
LONG-TERM LIABILITIES
Long -Term Debt, Net of Current Portion 22,617,844
Net Pension Liability 30,690
OPEB Liability 30,591
Total Long -Term Liabilities 22,679,125
DEFERRED INFLOWS OF RESOURCES
Related to Pension 61,184
Related to OPEB 5,096
Total Deferred Inflows of Resources 66,280
Total Liabilities and Deferred Inflows of Resources 25,542,384
NET POSITION
Net Investment in Capital Assets 21,858,843
Restricted for Debt Service 901,509
Unrestricted 13,086,948
Total Net Position 35,847,300
Total Liabilities, Deferred Inflows of Resources, and Net Position $ 61,389,684
See accompanying Notes to Basic Financial Statements.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
YEAR ENDED SEPTEMBER 30, 2021
OPERATING REVENUES
Charges for Water Service $ 5,610,887
Charges for Sewer Service 3,677,176
Tap Connection and Inspection Fees 400
Penalties and Interest 98,309
Total Operating Revenues 9,386,772
OPERATING EXPENSES
Purchased Water Service 1,893,513
Salaries and Payroll Taxes 1,504,251
Benefits 426,720
Repairs and Maintenance 936,260
Professional Fees 166,138
Utilities 316,690
Depreciation 1,815,475
Insurance 100,487
Software and Annual Support 96,552
Office Expenses 30,175
Bank and Payment Fees 90,222
Dues and Subscriptions 8,761
Training and Travel 8,756
TCEQ Fees and Permits 63,570
Fuel and Lube 28,348
Other 89,295
Total Operating Expenses 7,575,213
OPERATING INCOME 1,811,559
NONOPERATING REVENUES (EXPENSES)
Property Taxes 2,229,802
Investment Earnings 19,894
Interest Expense (668,678)
Gain on Sale of Fixed Assets 23,975
Rental income 14,146
Other Income 77,283
Fire Department (820,027)
Total Nonoperating Revenues 876,395
INCREASE IN NET POSITION 2,687,954
Total Net Position - Beginning 33,159,346
TOTAL NET POSITION - ENDING $ 35,847,300
See accompanying Notes to Basic Financial Statements.
(12)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2021
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 Used by Financing Activities
$ 9,325,800
(1,957,700)
(2,877,639)
(1,853,574)
2,636,887
19,894
(4,209,836)
(4,189,942)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (993,630)
Principal Payments on Long -Term Debt (1,813,257)
Proceeds from Sale of Capital Assets 23,975
Interest on Long -Term Debt (694,063)
Net Cash Used by Capital and Related Financing Activities (3,476,975)
CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES
Receipts of Property Taxes 2,233,922
Receipts of Rental Income 14,146
Other Receipts 77,283
Payments to the Town of Trophy Club for Fire Department (820,027)
Net Cash Provided by Noncapital and Related Financing Activities 1,505,324
NET DECREASE IN CASH AND CASH EQUIVALENTS (3,524,706)
Cash and Cash Equivalents - Beginning of Year 9,778,231
CASH AND CASH EQUIVALENTS - END OF YEAR $ 6,253,525
CASH AND CASH EQUIVALENTS $ 5,156,204
RESTRICTED CASH AND CASH EQUIVALENTS 1,097,321
TOTAL CASH AND CASH EQUIVALENTS - END OF YEAR $ 6,253,525
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income $ 1,811,559
Adjustments to Reconcile Operating Income to Net Cash
Provided by Operating Activities:
Depreciation 1,815,475
Change in Accounts Receivable (61,677)
Change in Due from Other Governments 24,595
Change in Prepaids 57,085
Change in Net Pension Liability/Asset 82,552
Change in Deferred Outflows Related to Pensions (126,608)
Change in Deferred Inflows Related to Pensions 11,561
Change in OPEB Liability 5,773
Change in Deferred Outflows Related to OPEB (2,397)
Change in Deferred Inflows Related to OPEB 1,278
Change in Compensated Absences 399
Change in Accounts Payable (984,126)
Change in Accrued Liabilities 713
Change in Customer Deposits 705
Net Cash Provided by Operating Activities $ 2,636,887
NONCASH ITEMS
Amortization of Bond Discount/Premium $ (18,676)
See accompanying Notes to Basic Financial Statements.
(13)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
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, 2021
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. Revenues resulting from other transactions are reported as
nonoperating revenues. 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, 2021 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, 2021 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, 2021
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, 2021, a liability of $62,817 for unused vacation leave has been
accrued and is included in current liabilities within salaries and benefits payable.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section
for deferred outflows of resources. Deferred outflows of resources represent a consumption
of net position that applies to a future period and so will not be recognized as an outflow of
resources until then. The District reports deferred outflows related to pensions and OPEB.
In addition to liabilities, the statement of net position will sometimes report a separate
section for deferred inflows of resources. Deferred inflows of resources represent an
acquisition of net position that applies to a future period and so will not be recognized as an
inflow of resources until that time. The District reports deferred inflows related to pensions
and OPEB.
Net Position
Net position is the residual of assets, plus deferred outflows of resources, less liabilities, less
deferred inflows of resources. The District maintains the following classifications of net
position:
• Net Investment in Capital Assets — This category of net position represents capital
assets, net of accumulated depreciation and outstanding principal balances of debt
attributable to the acquisition, construction, repair, or improvement of those assets.
• Restricted — This category of net position represents any net positions subject to
externally imposed conditions.
• Unrestricted — This category of net position represents any net position not recorded
as Net Investment in Capital Assets or Restricted.
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, 2021, the District did not own any types of securities other than those
permitted by statute.
(16)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
At September 30, 2021, the bank balance of the District's cash deposits totaled $5,790,525,
and the carrying value was $5,155,604. These amounts exclude the restricted cash amount
held in escrow, which totaled $1,097,321 at September 30, 2021. The District has obtained
a pledge of securities in the amount of $5,941,811 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 $ 5,155,604 N/A
Petty Cash Not Rated 600 N/A
TexPool AAAm 7,092,105 37 Days
Total $ 12,248.309
Restricted Cash and Investments
Mutual Fund Not Rated $ 1,097,321 N/A
TexPool AAAm 4,992,593 37 Days
Total $ 6.089.914
The following is a summary of cash restrictions as of September 30:
Restricted Cash and Investments
Restricted for Customer Deposits
Restricted for Capital Projects
Restricted for Debt Service
Total Restricted Cash and Equivalents
$ 312,285
4,818,690
958,939
$ 6,089,914
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 State 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.
(17)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
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. TexPool does not have any limitations or restrictions
on participants' withdrawals that would have to be stated in the notes to the financial
statements.
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: (i) cash; (ii) 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. 79, Certain External Investment Pools and Pool
Participants.
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
(18)
$ 1,234,425
118,525
(12,051)
$ 1,340,899
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 4 CAPITAL ASSETS
A summary of changes in capital assets follows:
Capital Assets, Undepreciable:
Land
Construction in Progress
Water Rights
Total Nondepreciable Assets
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
NOTE 5 LONG-TERM LIABILITIES
Balance at
October 1,
2020 Additions Disposals
$ 648,178 $ - $
4,311,836 423,027
864,678 -
5,824,692 423,027
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
49,478
118,126
536,536
19,122
8,260
731,522
80,890
20,752
203,804
5,655
234,016
242,969
946,982
80,407
1,815,475
(1,083,953)
$ (660,926) $
Summary of long-term liabilities are summarized as follows:
GO Bonds
Revenue Bonds
Net Bond Premium (Discount)
Capital Lease Obligations
Compensated Absences
Total Long -Term
Liabilities
Balance at
September 1,
2020
$ 7,205,000
18,390,000
43,658
612,251
62,418
$
$ 26,313,327 $
Additions/
Issued
(19)
399
26,695
160,146
186,841
25,922
Transfers
Balance at
September 30,
2021
$ - $ 648,178
(383,151) 4,351,712
- 864,678
(383,151) 5,864,568
25,922
160,919
160,919 $
- 3,535,137
- 600,776
175,858 2,984,794
23,663 2,354,963
- 2,816,913
183,630 14,019,565
- 22,497,150
- 4,541,890
383,151 53,351,188
- 836,479
- 314,089
- 1,485,461
- 2,326,933
- 1,736,231
- 4,737,992
- 4,502,407
- 1,841,451
- 17,781,043
383,151 35,570,145
- $ 41,434,713
Balance at
Retired or September 30,
Refunded 2021
$ (810,000) $ 6,395,000
(770,000) 17,620,000
(18,676) 24,982
(233,257) 378,994
62,817
Amount Due
Within
One Year
$ 835,000
790,000
238,949
399 $ (1,831,933) $ 24,481,793 $ 1,863,949
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 5 LONG-TERM LIABILITIES (CONTINUED)
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:
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% 8/31/2023
2.00-3.00% 8/31/2023
1.50-3.50% 8/31/2034
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
Due Within
Outstanding One Year
$ 490,000 $ 240,000
425,000 210,000
4,275,000 270,000
1,205,000 115,000
7,110,000 410,000
3,585,000 220,000
6,925,000 160,000
124,047 124,047
147,210 73,067
107,737 41,835
24,982
$ 24,418,976 $ 1,863,949
The annual requirements to retire revenue bonds and notes outstanding, including interest,
are:
Year Endina September 30.
2022
2023
2024
2025
2026
2027-2031
2032-2036
2037-2041
2042-2046
2047-2049
Total
General Obligation Bonds
Interest
Amount
$ 168,203
147,808
124,988
116,178
107,243
381,848
80,975
$ 1,127,241
Principal
Amount
$ 835,000
860,000
410,000
415,000
420,000
2,300,000
1,155,000
$ 6,395,000
Revenue Bonds Total
Interest Principal Bond Service
Amount Amount Requirements
$ 468,340 $ 790,000 $ 2,261,542
453,514 805,000 2,266,321
438,140 825,000 1,798,127
422,118 850,000 1,803,295
404,313 865,000 1,796,555
1,701,205 4,710,000 9,093,053
1,026,232 4,830,000 7,092,207
568,281 1,330,000 1,898,281
340,038 1,550,000 1,890,038
73,931 1,065,000 1,138,931
$ 5,896,110 $ 17,620,000 $ 31,038,350
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 $927,697 at September 30, 2021. Amortization expense has been
included in depreciation expense for the year ended September 30, 2021.
(20)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 5 LONG-TERM LIABILITIES (CONTINUED)
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, 2021:
Year Endina September 30. Amount
2022 $ 249,162
2023 120,919
2024 22,840
Total Payments 392,921
Less: Amount Representing Interest (13,927)
Present Value of Net Minimum Lease Payments $ 378,994
NOTE 6 RETIREMENT PLAN
Plan Description
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 an annual comprehensive financial report (ACFR) on a calendar -year
basis. The ACFR 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.
Membership information is shown in the chart below.
Inactive Employees or Beneficiaries Currently Receiving Benefits 2
Inactive Employees Entitled to But Not Yet Receiving Benefits 12
Active Employees 20
Total 34
(21)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 6 RETIREMENT PLAN (CONTINUED)
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 9.0% during the fiscal year.
Total employer contributions for the year ended September 30, 2021 was $130,699.
The contribution rate payable by the employee members for the fiscal year 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.
Actuarial Assumptions
The net pension liability was measured as of December 31, 2020, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation
as of that date. The actuarial assumptions that determined the total pension liability as of
December 31, 2020 were based on the results of an actuarial experience study for the
period January 1, 2013 through December 31, 2016. The total pension liability in the
December 31, 2020 actuarial valuation was determined using the following actuarial
assumptions:
Valuation Date
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Smoothing period
Recognition method
Corridor
Inflation
Salary Increases
Investment Rate of Return
Turnover
Retirement Age
Mortality
Depositing members
Service retirees, beneficiaries and
non -depositing members
Disabled retirees
Cost -of -Living Adjustments
December 31, 2020
Entry Age
Straight -Line amortization over Expected Working Life
20.0 years (based on contribution rate calculated in 12/31/2020 valuation)
5 -year smoothed market
5 years
Non -asymptotic
None
2.50%
Varies by age and service. 4.6% average over career including inflation.
7.60% (Gross of administrative expenses)
New employees are assumed to replace any terminated members and have similar
entry ages.
61 years (average)
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 for males and 115% of the
RP -2014 Disabled Annuitant Mortality Table for females, both projected with 110% of
the MP -2014 Ultimate scale after 2014
Cost -of -Living Adjustments for Trophy Club Municipal Utility District No 1 are not
considered to be substantively automatic under GASB 68. Therefore, no assumption
for future cost -of -living adjustments is included in the GASB calculations.
(22)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 6 RETIREMENT PLAN (CONTINUED)
Discount Rate
The discount rates used to measure the total pension liability is 7.60%. The discount rate
used in the prior year was 8.00%. 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 7.60%. 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.
Best estimates of geometric real rates of return for each major asset class included in the
Systems target asset allocation as of December 31, 2020 are summarized below:
Asset Class
U.S. Equities
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
Private Equity
Hedge Funds
Cash Equivalents
Benchmark
Dow Jones U.S. Total Stock Market Index
MSCI World (Net) Index
MSCI World Ex USA (Net) Index
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'
67% FTSE NA REIT Equity REITs Index
+ 33% S&P Global REIT (Net) Index
Alerian MLP Index
Cambridge Associates Real Estate Index`'
Cambridge Associates Global Private Equity
and Venture Capital Index'
Hedge Fund Research, Inc. (HFRI) Fund of
Funds Composite Index
90 -Day U.S. Treasury
Target
Allocation'"
Geometric
Real Rate of
Return'"
11.50% 4.25%
2.50% 4.55%
5.00% 4.25%
6.00% 4.75%
3.00% -0.85%
9.00% 2.11%
16.00% 6.70%
4.00% 5.70%
2.00% 3.45%
2.00% 5.10%
6.00% 4.90%
25.00% 7.25%
6.00% 1.85%
2.00% -0.70%
(1) Target asset allocation adopted at the March 2021 TCDRS Board meeting.
(2) Geometric real rates of return equal the expected return minus the assumed inflation rate of 2.00%, per Cliffwater's
2021 capital market assumptions.
(3) Includes vintage years 2005 -present of Quarter Pooled Horizon IRRs.
(4) Includes vintage years 2007 -present of Quarter Pooled Horizon IRRs.
(5) Includes vintage years 2006 -present of Quarter Pooled Horizon IRRs.
(23)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 6 RETIREMENT PLAN (CONTINUED)
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 (7.60%) in
measuring the 2020 Net Pension Liability:
Net Pension Liability/(asset)
Current
1% Discount
Decrease Rate
6.60% 7.60%
$ 335,239 $ 30,690
1%
Increase
8.60%
$ (223,801)
Pension Assets/Liabilities, Pension Expense, and Deferred Outflows of Resources
and Deferred Inflows of Resources Related to Pensions
At September 30, 2021, the District reported $30,690 for the net pension liability and
pension expense of $98,043 related to the December 31, 2020 valuation. The breakdown of
the components of the total pension liability, plan fiduciary net position, and the net pension
liability follows:
Balance - December 31, 2019
Changes in Pension Liability
Service Cost
Interest on Total Pension Liability(')
Effect of Economic/Demographic
Gains or Losses
Effect of assumptions changes or inputs
Refund of Contributions
Benefit Payments
Administrative Expenses
Member Contributions
Net Investment Income
Employer Contributions
Other(2)
Balance - December 31, 2020
Total Pension
Liability
(a)
$ 1,625,400
183,103
145,931
21,485
127,091
(4,908)
(9,141)
$ 2,088,961
Increase (Decrease)
Plan Fiduciary Net Pension
Net Position
(b)
$ 1,677,261
(4,908)
(9,141)
(1,506)
94,695
173,686
122,021
6,163
$ 2,058,271
Liability (Asset)
(a) -(b)
$ (51,861)
183,103
145,931
21,485
127,091
1,506
(94,695)
(173,686)
(122,021)
(6,163)
$ 30,690
(1) Reflects the change in the liability due to the time value of money. TCDRS does not charge fees or interest.
(2) No plan changes valued.
(1) Relates to allocation of system -wide items.
(24)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 6 RETIREMENT PLAN (CONTINUED)
The District reported deferred outflows of resources and deferred inflows of resources
related to the pension from the following sources:
Deferred Deferred
Inflows Outflows
of Resources of Resources
Differences Between Expected and Actual
Experience $ 14,898 $ 30,612
Changes in Assumptions - 109,821
Net Difference Between Projected and Actual
Earnings 46,286 -
Contributions Made Subsequent to Measurement Date 98,024
Total $ 61,184 $ 238,457
Pension Liabilities. Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions (Continued)
$98,024 reported as deferred outflow of resources for contributions made subsequent to the
measurement date will be recognized as an addition to the net pension liability in 2022. 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
2022 $ 10,343
2023 21,368
2024 2,473
2025 20,304
2026 24,761
Thereafter
Total $ 79,249
NOTE 7 OTHER POSTEMPLOYMENT BENEFITS
Plan Description
The District participates in the retiree Group Term Life (GTL) program for the Texas County
& District Retirement System (TCDRS), which is a statewide, multiple -employer defined
benefit plan. For TCDRS, the retiree death benefit paid from the GTL program is an OPEB
benefit. The OPEB program is treated as an unfunded trust because the GTL trust covers
both actives and retirees and is not segregated. Contributions made to the retiree GTL
Program are held in the GTL Fund. The GTL fund does not meet the requirements of a trust
under Paragraph 4b of GASB 75, as the assets of the GTL fund can be used to pay active
GTL benefits which are not part of the OPEB plan.
(25)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 7 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Plan Description (Continued)
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. TCDRS in the aggregate issues an annual comprehensive
financial report (ACFR) on a calendar -year basis. The ACFR is available upon written
request from the TCDRS Board of Trustees at P.O. Box 2034, Austin, Texas 78768-2034.
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 2
Inactive Employees Entitled to But Not Yet Receiving Benefits 5
Active Employees 20
Total 27
Contributions
Employer contributions to the GTL program for the reporting period for active members and
retirees was 0.24% and 0.00%, respectively. The contributions for retiree GTL coverage are
assigned to the OPEB plan under GASB 75 and are used to determine the benefit
payments.
Total OPEB Liability
The total OPEB liability was measured as of December 31, 2020, using an actuarial
valuation as of that date. The actuarial assumptions that determined the total OPEB liability
as of December 31, 2020 were based on the results of an actuarial experience study for the
period January 1, 2013 through December 31, 2016. The total OPEB liability in the
December 31, 2020 actuarial valuation was determined using the following actuarial
assumptions:
(26)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 7 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Valuation Date
Actuarial Cost Method
Amortization Method
Recognition of economic/demographic
gains or losses
Recognition of assumptions changes or
inputs
Investment Rate of Return
(Discount Rate)
Disability
Mortality
Depositing members
Service retirees, beneficiaries and non -
depositing members
Disabled retirees
Retirement
Other Termination of Employment
December 31, 2020
Entry Age Normal
Straight -Line amortization over Expected Working Life
Straight -Line amortization over Expected Working Life
2.12%
20 Year Bond GO Index published by bondbuyer.com as of December 31, 2020
Rates of disability are in a custom table 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 for males and 115% of the
RP -2014 Disabled Annuitant Mortality Table for females, both projected with 110%
of the MP -2014 Ultimate scale after 2014
Members eligible for service retirement are assumed to retire at the rates shown on
a custom table provided by TCDRS.
The rate of assumed future termination from active participation in the plan for
reasons other than death, disability or retirement are illustrated in a custom table
provided by TCDRS. The rates vary by length of service, entry -age group (age at
hire) and gender. No termination after eligibility for retirement is assumed.
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, 2020
(measurement date under GASB 75). At this date, the discount rate was 2.12%. The
discount rate as of December 31, 2019 was 2.74%.
Sensitivity of the Total OPEB Liability to Changes 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 (1.12%) or 1% point higher (3.12%) than the current
rate, for measurement period ended December 31, 2020:
1% Decrease Current Discount Rate 1% Increase
1.12% 2.12% 3.12%
Total OPEB Liability $ 38,873 $ 30,591 $ 24,419
(27)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 7 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Chance in the OPEB Liability
The changes in the total OPEB liability for the Plan are as follows:
Total OPEB Liability:
Service Cost $ 3,314
Interest on Total OPEB Liability 771
Effect of Economic/Demographic Gains
or Losses (2,345)
Effect of Assumptions Changes or Inputs 4,033
Employer Contributions -
Total Change in Total OPEB Liability 5,773
Total OPEB Liability - Beginning 24,818
Total OPEB Liability - Ending $ 30.591
Recognition 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.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended September 30, 2021, the District recognized expense related to
OPEB of $4,654. As of December 31, 2020, the District reported deferred outflows of
resources and 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 $ 3,550 $
Changes in Assumptions 1,546 8,489
Total $ 5,096 $ 8,489
(28)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 7 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
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
2022 $ 569
2023 569
2024 571
2025 479
2026 963
Thereafter 242
Total $ 3,393
(29)
REQUIRED SUPPLEMENTARY INFORMATION - UNAUDITED
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
YEAR ENDED SEPTEMBER 30, 2021
2020 2019 2018 2017
Total OPEB Liability:
Service Cost $ 3,314 $ 2,241 $ 2,503 $ 2,889
Interest on Total OPEB Liability 771 778 669 595
Effect of Assumption Changes or Inputs 4,033 6,476 (2,704) 946
Effect of Economic/Demographic (Gains) or Losses (2,345) (1,422) (678) (321)
Benefit Payments/Refunds of Contributions -
Net Change in Total OPEB Liability 5,773 8,073 (210) 4,109
Total OPEB Liability - Beginning 24,818 16,745 16,955 12,846
Total OPEB Liability - Ending $ 30,591 $ 24,818 $ 16,745 $ 16,955
Covered Employee Payroll $ 1,352,780 $ 1,146,956 $ 1,055,433 $ 1,140,976
Total OPEB Liability as a % of Covered Payroll 2.26% 2.16% 1.59% 1.49%
See accompanying Note to Required Supplementary Information.
(30)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
YEAR ENDED SEPTEMBER 30, 2021
2020 2019 2018 2017 2016 2015 2014
Total Pension Liability:
Service Cost $ 183,103 $ 164,365 $ 153,752 $ 176,975 $ 200,990 $ 150,689 $ 170,600
Interest on Total Pension Liability 145,931 121,767 100,515 83,553 57,230 41,351 27,449
Effect of Plan Changes (22,086)
Effect of Assumption Changes or Inputs 127,091 5,971 7,686
Effect of Economic/Demographic (Gains)
or Losses 21,485 8,770 13,723 (25,170) (9,790) (11,320) (7,057)
Benefit Payments/Refunds of Contributions (14,049) (16,533) (15,970) (1,695) (2,091) (1,902) (3,156)
Net Change in Total Pension Liability 463,561 278,369 252,020 239,634 246,339 164,418 187,836
Total Pension Liability - Beginning 1,625,400 1,347,031 1,095,011 855,377 609,038 444,620 256,784
Total Pension Liability- Ending (a) $ 2.088.961 $ 1,625,400 $ 1,347,031 $ 1,095,011 $ 855,377 $ 609,038 $ 444,620
Fiduciary Net Position:
Employer Contributions $ 122,021 $ 103,641 $ 94,803 $ 102,802 $ 95,185 $ 97,043 $ 93,694
Member Contributions 94,695 80,287 73,880 79,868 78,388 78,171 74,784
Investment Income Net of Investment Expenses 173,686 212,168 (19,840) 126,587 46,440 (15,011) 18,561
Benefit Payments/Refunds of Contributions (14,049) (16,533) (15,970) (1,695) (2,091) (1,902) (3,156)
Administrative Expenses (1,506) (1,278) (1,039) (769) (505) (394) (285)
Other 6,162 5,966 4,666 2,418 19,889 (47) (21)
Net Change in Fiduciary Net Position 381,009 384,251 136,500 309,211 237,306 157,860 183,577
Fiduciary Net Position - Beginning 1,677,262 1,293,011 1,156,511 847,300 609,994 452,134 268,557
Fiduciary Net Position - Ending (b) $ 2.058.271 $ 1,677,262 $ 1,293.011 $ 1,156,511 $ 847,300 $ 609,994 $ 452,134
Net Pension Liability (Asset) - Ending <=(a) -(b) $ 30.690 $ (51,862) $ 54,020 $ (61.500) $ 8.077 $ (956) $ (7.514)
Fiduciary Net Position as a % of Total
Pension Liability 98.53% 103.19% 95.99% 105.62% 99.06% 100.16% 101.69%
Pensionable Covered Payroll $ 1,352,780 $ 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 2.27% -4.51% 5.12% -5.39% 0.72% -0.09% -0.70%
Note: Only seven years of data are presented as prior years are not available.
See accompanying Note to Required Supplementary Information.
(31)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF EMPLOYER PENSION CONTRIBUTIONS
YEAR ENDED SEPTEMBER 30, 2021
Actual
Contributions
Actuarially Actual Contribution Pensionable as a % of
Year Ending Determined Employer Deficiency Covered Covered
December 31, Contribution Contribution (Excess) Payroll(') Payroll
2010 Not Available Not Available Not Available Not Available Not Available
2011 Not Available Not Available Not Available Not Available Not Available
2012 Not Available Not Available Not Available Not Available Not Available
2013 $ 84,476 $ 198,219 $ (113,743) $ 963,243 20.6%
2014 93,694 93,694 1,068,342 8.8%
2015 97,043 97,043 1,116,721 8.7%
2016 97,875 97,875 1,119,822 8.7%
2017 102,802 102,802 1,140,976 9.0%
2018 92,561 94,803 (2,242) 1,055,433 9.0%
2019 97,337 103,641 (6,304) 1,146,956 9.0%
2020 117,151 122,021 (4,870) 1,352,780 9.0%
(1) Payroll is calculated based on contributions as reported to TCDRS.
See accompanying Note to Required Supplementary Information.
(32)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2021
NOTE 1 OPEB AND PENSION LIABILITY
The District has not accumulated assets in a trust to pay the OPEB liability.
Change 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.
Change 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 , new mortality assumptions during the 2017 plan year and new inflation,
mortality and other assumptions during the 2019 plan year.
(33)
OTHER INFORMATION - UNAUDITED
(TEXAS SUPPLEMENTARY INFORMATION)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BUDGETARY COMPARISON SCHEDULE - ENTERPRISE FUND
YEAR ENDED SEPTEMBER 30, 2021
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
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
$ 5,939,221
3,727,146
3,250
129,158
9,798,775
2,596,295
1,676,655
594,303
1,027,403
323,725
337,414
105,000
126,854
47,000
67,000
9,900
36,292
75,000
27,500
131,733
7,182,074
2,616,701
2,241,743
119,500
(693,781)
5,000
14,146
7,000
(820,027)
873,581
3,490,282
33,159,346
$ 36.649.628
Amended
Budget
$ 5,642,387
3,602,000
400
85,500
9,330,287
2,316,841
1,515,295
465,738
942,246
180,925
334,484
105,000
96,500
38,418
82,000
9,811
12,675
75,000
27,500
112,253
6,314,686
3,015,601
2,242,057
37,590
(693,781)
19,575
14,146
18,488
(820,027)
818,048
3,833,649
Actual
Variance
Positive
(Negative)
$ 5,610,887 $ (31,500)
3,677,176 75,176
400 -
98,309 12,809
9,386,772 56,485
1,893,513 423,328
1,504,251 11,044
426,720 39,018
936,260 5,986
166,138 14,787
316,690 17,794
1,815,475 (1,815,475)
100,487 4,513
96,552 (52)
30,175 8,243
90,222 (8,222)
8,761 1,050
8,756 3,919
63,570 11,430
28,348 (848)
89,295 22,958
7,575,213 (1,260,527)
1,811,559 1,317,012
2,229,802 (12,255)
19,894 (17,696)
(668,678) 25,103
23,975 4,400
14,146 -
77,283 58,795
(820,027)
876,395 58,347
2,687,954 1,375,359
33,159,346 33,159,346
$36,992,995 $ 35.847.300 $ 1.375.359
See accompanying Note to Budgetary Comparison Schedules - Enterprise Fund.
(34)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTE TO BUDGETARY COMPARISON SCHEDULE — ENTERPRISE FUND
SEPTEMBER 30, 2021
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.
(35)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -1. SERVICES AND RATES
SEPTEMBER 30, 2021
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
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
Base Rate
Residential* $22.15
Sewer Volumetric Rates
Rates per 1,000 Gallons
$4.10 0 to 4,000
$5.85 4,001 to 8,000
$8.25 8,001 to 12,000
$11.75 12,000 +
Commerciar $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 $
Next 10,000 gallons used 20,000 $
Next 10,000 gallons used 30,000 $
Next 10,000 gallons used 40,000 $
Next 10,000 gallons used 50,000 $
Next 10,000 gallons used and subsequent 60,000 $
(36)
138.80
187.09
244.79
306.79
368.79
440.89
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -1. SERVICES AND RATES (CONTINUED)
SEPTEMBER 30, 2021
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
Unmetered
Less than 3/4"
1"
1 1/2"
2"
3"
4"
6"
8"
10"
Total Water
Total Wastewater
Connections
Total Active
2,499
702
28
107
42
17
5
1
3,401
3,406
2,480
701
27
98
42
17
5
1
3,371
3,374
ESFC
Factor
1
1
3
5
8
15
25
50
80
115
1
Active
ESFC's
2,480
1,753
135
784
630
425
250
80
6,537
3,374
* 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
Gallons billed to customers
Water accountability ratio
4. Standby Fees:
Does the District assess standby fees?
For the most recent fiscal year, FY2021:
Debt Service
Operations and Maintenance
Total
Levy
$ 685,173
$ 1,371,682
Total
Collected
$ 683,190
$ 1,367,712
926,776
830,970
89.93%
Percentage
Collected
99.7%
99.7%
No
Have standby fees been levied in accordance with Water Code Section 49.231, thereby
constituting a lien on property? No
(37)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -1. SERVICES AND RATES (CONTINUED)
SEPTEMBER 30, 2021
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
(38)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -2. SCHEDULE OF ENTERPRISE FUND EXPENSES
SEPTEMBER 30, 2021
OPERATING EXPENSES
Purchased Water Service $ 1,893,513
Benefits 426,720
Repairs and Maintenance 936,260
Professional Fees 166,138
Utilities 316,690
Depreciation 1,815,475
Insurance 100,487
Software and Annual Support 96,552
Office Expenses 30,175
Bank and Payment Fees 90,222
Dues and Subscriptions 8,761
Training and Travel 8,756
TCEQ Fees and Permits 63,570
Fuel and Lube 28,348
Other 89,295
TOTAL EXPENSES $ 7,575,213
*Number of persons employed by the Authority: 20 Full -Time, 0 Part -Time
(Not including independent contractors or consultants.)
(39)
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
SEPTEMBER 30, 2021
Identification Interest Maturity
Number Rate Date
216267724 0.300 Demand
7318701 0.250 Demand
613300002 0.037 Demand
613300003 0.037 Demand
613300011 0.037 Demand
613300013 0.037 Demand
613300014 0.037 Demand
613300017 0.037 Demand
613300018 0.037 Demand
613300020 0.037 Demand
82-1747-01-1 0.010 Demand
82-3288-01-4 0.010 Demand
Balance
End of Year
$ 2,000,890
3,466,999
7,092,105
32,911
26,061
894,311
5,656
4,033,089
565
785,036
Total - All Funds $ 18,337,623
(40)
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, 2021
Operations
General Fund
Fire
Total
Debt
Service
Total
Taxes receivable beginning of year $ 1,751 $ 16,712 $ 18,463 $ 9,603 $ 28,066
2020 tax levy 129,913 1,186,622 1,316,535 657,626 1,974,160
Total to be accounted for 131,664 1,203,334 1,334,998 667,229 2,002,226
Less collections and adjustments:
Current year (129,521) (1,183,044) (1,312,565) (655,642) (1,968,207)
Prior years (691) (5,931) (6,622) ( 3,451) (10,073)
Total to be accounted for (130,212) (1,188,975) (1,319,187) (659,093) (1,978,280)
Taxes receivable, end of year
$ 1,452 $ 14,359 $ 15,811 $ 8,136 $ 23,947
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 35 273 308 222 530
2009 66 264 329 166 495
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 1,083 1,153 812 1,966
2016 67 1,142 1,209 742 1,951
2017 63 549 612 349 961
2018 139 1,216 1,355 748 2,103
2019 (181) (1,627) (1,808) (915) (2,722)
2020 392 3,578 3,970 1,983 5,953
$ 1,494 $ 14,024 $ 15,518 $ 7,986 $ 23,504
Property valuations (in 000's)
F/Y F/Y F/Y F/Y F/Y
20/21 19/20 18/19 17/18 16/17
Land $ 823,775 $ 800,425 $ 667,906 $ 620,210 $ 562,280
Improvements 1,159,708 1,042,035 981,366 908,581 798,401
Personal property 101,998 109,764 103,985 105,783 99,772
Exemptions (152,776) (140,704) (81,906) (82,556) (57,745)
$ 1,932,705 $ 1,811,520 $ 1,671,351 $ 1,552,018 $ 1,402,708
(41)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -4. TAXES LEVIED AND RECEIVABLE (CONTINUED)
SEPTEMBER 30, 2021
Tax rate per $100 valuation
Operations 0.00709 0.00748 0.00765 0.00788 0.00438
Fire department 0.06476 0.06738 0.06719 0.06870 0.07445
Debt service 0.03589 0.03787 0.04134 0.04363 0.04839
Tax rate per $100 valuation 0.10774 0.11273 0.11618 0.12021 0.12722
Tax levy: $ 2,056,855 $ 2,052,305 $ 1,919,984 $ 1,870,008 $ 1,779,098
Percent of taxes collected to taxes levied 99.71
99.76% 99.48% 99.75% 99.60%
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 0.224985 0.234
City Town of Trophy Club 0.446442 0.446442
School District Northwest ISD/Carroll ISD 1.4663 1.2864
2.137727 1.966842
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 0.10774 0.10774
Total Overlapping Tax District 2.245467 2.429181
(42)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS
SEPTEMBER 30, 2021
All Bonded Debt Series
Interest Due
Principal Due March 1 and
Due During Fiscal Years Ending September 1 September 1 Total
2022 $ 1,625,000 $ 636,543 $ 2,261,543
2023 1,665,000 601,322 2,266,322
2024 1,235,000 563,128 1,798,128
2025 1,265,000 538,296 1,803,296
2026 1,285,000 511,556 1,796,556
2027 1,325,000 482,948 1,807,948
2028 1,360,000 452,287 1,812,287
2029 1,400,000 419,307 1,819,307
2030 1,440,000 383,809 1,823,809
2031 1,485,000 344,703 1,829,703
2032 1,400,000 304,049 1,704,049
2033 1,440,000 263,749 1,703,749
2034 1,500,000 221,124 1,721,124
2035 1,130,000 175,675 1,305,675
2036 515,000 142,612 657,612
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
$ 24,015,000 $ 7,023,353 $ 31,038,353
(43)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS (CONTINUED)
SEPTEMBER 30, 2021
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
2022 $ 240,000 $ 14,700 $ 254,700
2023 250,000 7,500 257,500
$ 490,000 $ 22,200 $ 512,200
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
2022 $ 210,000 $ 13,825 $ 223,825
2023 215,000 7,525 222,525
$ 425,000 $ 21,350 $ 446,350
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
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
$ 4,275,000 $ 996,200 $ 5,271,200
(44)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS (CONTINUED)
SEPTEMBER 30, 2021
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
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
$ 1,205,000 $ 87,490 $ 1,292,490
Revenue Bonds - Series 2015
(9,230,000)
Interest Due
Due During Fiscal Principal Due March 1 and
Years Ending September 1 September 1 Total
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
$ 7,110,000 $ 1,663,638 $ 8,773,638
(45)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS (CONTINUED)
SEPTEMBER 30, 2021
Revenue Bonds - Series 2016
(4,635,000)
Interest Due
Due During Fiscal Principal Due March 1 and
Years Ending September 1 September 1 Total
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
$ 3,585,000 $ 542,013 $ 4,127,013
(46)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -5. LONG-TERM DEBT SERVICE REQUIREMENTS BY YEARS (CONTINUED)
SEPTEMBER 30, 2021
Revenue Bonds - Series 2019
(7,080,000)
Interest Due
Due During Fiscal Principal Due March 1 and
Years Ending September 1 September 1 Total
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
$ 6,925,000 $ 3,690,463 $ 10,615,463
(47)
Interest Rate
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -6. CHANGES IN LONG-TERM DEBT
YEAR ENDED SEPTEMBER 30, 2021
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
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 $ 95,000 $ 720,000 $ 630,000 $ 4,540,000 $ 1,220,000 $ 7,510,000 $ 3,800,000 $ 7,080,000 $ 25,595,000
Bonds Issued $ - $ - $ - $ - $ - $ - $ - $ - $ -
Retirements of Principal $ 95,000 $ 230,000 $ 205,000 $ 265,000 $ 15,000 $ 400,000 $ 215,000 $ 155,000 $ 1,580,000
Bonds Outstanding at End of
Fiscal Year
Retirements of Interest
$ - $ 490,000 $ 425,000 $ 4,275,000 $ 1,205,000 $ 7,110,000 $ 3,585,000 $ 6,925,000 $ 24,015,000
$ 3,325 $ 21,600 $ 19,975 $ 129,313 $ 15,860 $ 200,438 $ 58,599 $ 223,588 $ 672,698
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
Bond Authority
Amount Authorized by Voters
Amount Issued
General
Obligation
Bonds
$ 34,859,217
$ 34,855,000
Remaining to be Issued $ 4,217
(48)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -7. COMPARATIVE SCHEDULE OF REVENUES
AND EXPENSES ENTERPRISE FUND
FIVE YEARS ENDED SEPTEMBER 30, 2021
OPERATING REVENUES
Charges for Water Service
Charges for Sewer Service
Tap Connection and Inspection Fees
Penalties and Interest
Total Operating Revenues
2021 2020 2019 2018 2017
$ 5,610,887 $ 5,768,789 $ 5,358,205 $ 6,169,279 $ 5,958,412
3,677,176 3,343,636 3,181,555 3,117,435 2,674,335
400 10,350 -
98,309 71,703 -
9,386,772 9,194,478 8,539,760 9,286,714 8,632,747
OPERATING EXPENSES
Purchased Water Service 1,893,513 1,865,024
Salaries and Payroll Taxes 1,504,251 1,495,355
Benefits 426,720 410,280
Repairs and Maintenance 936,260 655,518
Professional Fees 166,138 221,219
Utilities 316,690 317,965
Depreciation 1,815,475 1,759,150
Insurance 100,487 99,679
Software and Annual Support 96,552 124,037
Office Expenses 30,175 32,457
Bank and Payment Fees 90,222 73,964
Dues and Subscriptions 8,761 6,578
Training and Travel 8,756 11,903
TCEQ Fees and Permits 63,570 35,794 -
Fuel and Lube 28,348 18,286 -
Other 89,295 83,748 -
Water Operations - - 3,325,173 3,385,244 3,217,030
General Government - - 1,561,141 1,395,655 1,336,409
Wastewater Operations - - 1,250,940 1,149,853 1,209,579
Non -Departmental - - 179,748 190,494 294,196
Wastewater Collection System - - 68,213 67,858 67,830
Directors - - 2,500 9,811 6,497
Total Operating Expenses 7,575,213 7,210,957 6,387,715 6,198,915 6,131,541
OPERATING INCOME
1,811,559 1,983,521 2,152,045 3,087,799 2,501,206
NONOPERATING REVENUES (EXPENSES)
Property Taxes 2,229,802 2,229,770 1,918,080 1,878,557 1,785,407
Investment Earnings 19,894 133,579 233,313 112,040 54,791
Interest Expense (668,678) (996,742) (567,032) (569,293) (584,186)
Gain on Sale of Fixed Assets 23,975 12,520 52,600 9,477 1,906
Rental Income 14,146 18,800 - - -
Contribution Not Restricted to Specific Programs - - 298,654 195,528 103,619
Other Income 77,283 61,404 85,068 91,972 136,863
Capital Grants and Contributions - - - - -
Fire Department (820,027) (718,657) (765,952) (698,845) (702,943)
Total Nonoperating Revenues 876,395 740,674 1,254,731 1,019,436 795,457
INCREASE IN NET POSITION 2,687,954 2,724,195 3,406,776 4,107,235 3,296,663
Total Net Position - Beginning 33,159,346 30,435,151 27,028,375 22,921,140 19,624,477
TOTAL NET POSITION - ENDING $ 35,847,300 $ 33,159,346 $ 30,435,151 $ 27,028,375 $ 22,921,140
Total Active Retail Water and/or
Wastewater Connections 3,374 3,371 3,330 3,284 3,244
(49)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -7. COMPARATIVE SCHEDULE OF REVENUES
AND EXPENSES ENTERPRISE FUND (CONTINUED)
FIVE YEARS ENDED SEPTEMBER 30, 2021
2021 2020 2019 2018 2017
OPERATING REVENUES
Charges for Water Service 60% 63% 63% 66% 69%
Charges for Sewer Service 39% 36% 37% 34% 31%
Tap Connection and Inspection Fees 0% 0% 0% 0% 0%
Penalties and Interest 1% 1% 0% 0% 0%
Total Operating Revenues 100% 100% 100% 100% 100%
OPERATING EXPENSES
Purchased Water Service 20% 22% 0% 0% 0%
Salaries and Payroll Taxes 16% 18% 0% 0% 0%
Benefits 5% 5% 0% 0% 0%
Repairs and Maintenance 10% 8% 0% 0% 0%
Professional Fees 2% 3% 0% 0% 0%
Utilities 3% 4% 0% 0% 0%
Depreciation 19% 21% 0% 0% 0%
Insurance 1% 1% 0% 0% 0%
Software and Annual Support 1% 1% 0% 0% 0%
Office Expenses 0% 0% 0% 0% 0%
Bank and Payment Fees 1% 1% 0% 0% 0%
Dues and Subscriptions 0% 0% 0% 0% 0%
Training and Travel 0% 0% 0% 0% 0%
TCEQ Fees and Permits 1% 0% 0% 0% 0%
Fuel and Lube 0% 0% 0% 0% 0%
Other 1% 1% 0% 0% 0%
Water Operations 0% 0% 39% 36% 37%
General Government 0% 0% 18% 15% 15%
Wastewater Operations 0% 0% 15% 12% 14%
Non -Departmental 0% 0% 2% 2% 3%
Wastewater Collection System 0% 0% 1% 1% 1%
Directors 0% 0% 0% 0% 0%
Total Operating Expenses 81% 84% 75% 67% 71%
OPERATING INCOME 19% 16% 25% 33% 29%
NONOPERATING REVENUES (EXPENSES)
Property Taxes 24% 26% 22% 20% 21%
Investment Earnings 0% 2% 3% 1% 1%
Interest Expense -7% -12% -7% -6% -7%
Gain on Sale of Fixed Assets 0% 0% 1% 0% 0%
Rental Income 0% 0% 0% 0% 0%
Contribution Not Restricted to Specific Programs 0% 0% 3% 2% 1%
Other Income 1% 1% 1% 1% 2%
Capital Grants and Contributions 0% 0% 0% 0% 0%
Fire Department -9% -8% -9% -8% -8%
Total Nonoperating Revenues 9% 9% 15% 11% 9%
INCREASE IN NET POSITION 28% 24% 40% 44% 38%
(50)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -8. BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS
SEPTEMBER 30, 2021
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
Kevin Carr
15 Edgemere Drive
Trophy Club, TX 76262 11/20-05/24 $ $ Director
William Rose
219 Inverness Drive
Trophy Club, TX 76262 11/20-05/24 $ $ 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
Name and Address
Key Personnel:
Date of Contract Total Paid Out Type of
or Vendor Created FY 2021 Vendor
City of Fort Worth
200 Texas St
Fort Worth, Texas 9/30/2000 $ 2,334,038 Wholesale Water
Consultants/Legal:
Denton Central Appraisal District
P.O. Box 2816
Denton, TX 76202
Tarrant Appraisal District
2500 Handley-Ederville Rd.
Fort Worth, TX 76262
4/1/1981
10/1/2007
(51)
8,591
2,638
Appraiser
Appraiser
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -8. BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS (CONTINUED)
SEPTEMBER 30, 2021
Key Personnel (Continued):
CliftonLarsonAllen LLP
P.O. Box 679342
Dallas, TX 75267-9487 8/27/2020 $ 21,000 Auditors
Halff Associates, Inc.
P.O. Box 678316
Dallas, TX 75267-8316 1/1/2017 $ 419,433 Engineers
Wiss Janney Elstner
P.O. Box 678316
Dallas, TX 75267-8316 1/1/2017 $ 12,173 Engineers
McLean & Howard, L.L.P.
901 S. Mopac Expressway
Building 2, Suite 225
Austin, TX 78746 3/1/2017 $ 38,138 Legal/Bond Counsel
DuBois Bryant Campbell LLP
303 Colorado, Suite 2300
Austin, TX 78701 5/18/2017 $ 680 Legal Counsel
Whitaker Chalk Swindle & Schwartz PLLC
301 Commerce St, Suite 3500
Fort Worth, TX 76102-4186 4/30/2018 $ 6,429 Legal Counsel
New Gen Strategies & Solutions
1300 E. Lookout Dr. Suite 100
Richardson, TX 75082 7/1/2013 $ 45,244 Rate Consultant
(52)