HomeMy WebLinkAboutFY Ended September 30, 2022TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO.1
AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
SEPTEMBER 30, 2022
ANNUAL FILING
AFFIDAVIT
THE STATE OF TEXAS }
COUNTY OF DENTON }
1, Kevin R. Carr
(Name of Duly Authorized Representative)
Of Trophy Club Municipal Utility District No. 1
(Name of District)
Hereby swear, or affirm, that the district named above has reviewed and approved at a meeting of
the Board of Directors of the District on the 18th day of January 2023, its annual audit report for
the fiscal year or period ended September 30, 2022 and that copies of the annual audit report have
been filed in the district office, located at 100 Municipal Drive, Trophy Club. Texas. 76262.
The annual filing affidavit and the attached copy of the annual audit report are being submitted to
the 'texas Commission on the Environmental Quality in satisfaction of the annual tiling
requirements of Texas Water Code Section 49.194.
Date: January 18 , 20 23 .
By:
(Signature of District Representative)
Kevin R. Carr, President, Board of Directors
(Typed Name & Title)
Sworn to and subscribed to before me this
'"", LAURIE SLAGHT
+P ��t+a)y Public. State of Texas
'� ", Comm. Expires 01.19-2024
aZ o' Notary 1D 12872053-4
My Commission Expires On:
Notary Public in and for the State of Texas
day of
(3L
(signature of notar
TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO.1
AUDITED FINANCIAL STATEMENTS
TABLE OF CONTENTS
Independent Auditor's Report 1
Required Supplementary Information
Management Discussion and Analysis 4
Basic Financial Statements
Government Wide Statements:
Statement of Net Position .11
Statement of Activities .12
Fund Financial Statements:
Balance Sheet - Governmental Funds 13
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position 14
Statement of Revenues and Expenditures, and Changes
in Fund Balances — Governmental Funds 15
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of Activities 16
Notes to the Financial Statements ..17
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund
Balance: Budgetary Comparison - General Fund 36
Schedule of Changes in Net Pension Liability and Related Ratios 37
Schedule of Pension Contributions 38
Schedule of Changes in the OPEB Liability and Related Ratios 39
Schedule of OPEB Contributions 40
Other Supplementary Information
Individual Schedules and Other Supplementary Information Required by the Texas
Commission on Environmental Quality (TCEQ)
TSI -1 Service and Rates .41
TSI -2 General Fund Expenditures and Other Financing Uses 43
TSI -3 Temporary Investments 44
TSI -4 Taxes Levied and Receivables 45
TSI -5 Long -Term Debt Service Requirements - By Year 47
TSI -6 Changes in Long -Term Bonded Debt ..52
TSI -7 Comparative Schedules of Revenues and Expenditures - Five Years 53
TSI -8 Board Members, Key Personnel, and Consultants 55
Rod L. Abbott, CPA PLLC
Certified Public Accountant
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Trophy Club Municipal Utility District No. 1
Trophy Club, Texas
Opinions
I have audited the accompanying financial statements of the governmental activities, each major fund, and
the remaining aggregate fund information of the Trophy Club Municipal Utility District No. 1 (the
"District"), as of and for the year ended September 30, 2022, and the related notes to the financial
statements, which collectively comprise the District's basic financial statements as listed in the table of
contents.
In my opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the remaining aggregate
fund information of the Trophy Club Municipal Utility District No. 1 as of September 30, 2022, and the
respective changes in financial position for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
I conducted my audit in accordance with auditing standards generally accepted in the United States of
America My responsibilities under those standards are further described in the Auditor's Responsibilities
for the Audit of the Financial Statements section of my report. I am required to be independent of the
District, and to meet my other ethical responsibilities, in accordance with the relevant ethical requirements
relating to my audit. I believe that the audit evidence I have obtained is sufficient and appropriate to provide
a basis for my audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the District's ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
1
P.O. Box 75 Tom Bean, TX. 75489 (214) 856-9603 rodabbottcpa@hotmail.com
Auditor's Responsibilities for the Audit of the Financial Statements
My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is
not a guarantee that an audit conducted in accordance with generally accepted auditing standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence the
judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, I:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit 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 District's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in my judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the District's ability to continue as a going concern for a reasonable
period of time.
I am required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control -related matters
that I identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, General Fund budgetary comparison schedule, pension schedules, and other post -
employment benefit schedules be presented to supplement the basic financial statements. Such information
is the responsibility of management and, 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. I 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 I
obtained during my audit of the basic financial statements. I do not express an opinion or provide any
assurance on the information because the limited procedures do not provide me with sufficient evidence to
express an opinion or provide any assurance.
2
P.O. Box 75 Tom Bean, TX. 75489 (214) 856-9603 rodabbottcpa@hotmail.com
Other Information
My audit was conducted for the purpose of forming an opinion on the basic financial statements of Trophy
Club Municipal Utility District No. 1. The Texas TCEQ Supplemental Information on pages 41-56 is
required by the Texas Commission on Environmental Quality as published in the Water District Financial
Management Guide. The Texas TCEQ Supplemental Information has not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, I do not express an
opinion or provide any assurance on it.
Sincerely,
6Lougtc
Rod L. Abbott, CPA PLLC
Tom Bean, Texas
January 18, 2023
3
P.O. Box 75 Tom Bean, TX. 75489 (214) 856-9603 rodabbottcpa@hotmail.com
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Trophy Club Municipal Utility District No. 1, Texas (the "District") Management's Discussion and Analysis
(MD&A) is a narrative overview and analysis designed to provide the reader a means to identify and
understand the financial activity of the District and changes in the District's financial position during the
fiscal year ended September 30, 2022.
The Management's Discussion and Analysis is supplemental to, and should be considered along with, the
District's financial statements.
Financial Highlights
• At the close of the fiscal year, the assets and deferred outflows of the District exceeded its liabilities
and deferred inflows by $39,074,449. Of this amount, $14,403,939 is unrestricted net position
and may be used to meet the District's ongoing commitments.
• The District's net position increased by $3,227,149 during 2022. Significant contributors to this
result were water and wastewater charges exceeding their related departmental expenses by
4,258,909.
• At the end of the fiscal year, the District's governmental type funds reported a combined fund
balance of $17,140,724. As of September 30, 2022, the unassigned fund balance of the General
Fund was $8,994,256. The unassigned fund balance is equal to 10.6 months of 2022 General Fund
expenditures and is considered a very healthy unassigned fund balance.
Overview of the Financial Statements
The MD&A is intended to introduce the reader to the District's basic financial statements, which are
comprised of three components: 1. Government -Wide Financial Statements, 2. Fund Financial Statements,
and 3. Notes to Basic Financial Statements. The report also contains other required supplementary
information in addition to the basic financial statements.
Government -Wide Financial Statements - the government -wide financial statements are designed to provide
the reader with a general overview of the District's finances in a way that is comparable with financial
statements from the private sector. The government -wide financial statements consist of two statements:
1. The Statement of Net Position - This statement presents information on all of the District's assets,
deferred inflows, deferred outflows, liabilities, and net position. The net position is the difference
between assets plus deferred outflows less deferred inflows plus liabilities. Over an extended
period, the increase or decrease in net position will serve as a good indicator of whether the financial
position of the District is improving or deteriorating.
2. The Statement of Activities — This statement gives information showing how the District's net
position has changed during the fiscal year. All revenues and expenses are reported on the full
accrual basis.
4
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED. SEPTEMBER 30, 2022.
Overview of the Financial Statements - Continued
Fund Financial Statements - Fund financial statements provide detailed information about the most
important funds and not about the District as a whole as in the government -wide financial statements.
The District uses fund accounting to demonstrate compliance with finance related legal requirements which
can be categorized as governmental fund activities.
Governmental Funds - All of the District's activities are reported in governmental funds. They are used to
account for those functions known as governmental activities. But unlike government -wide financial
statements, governmental fund financial statements focus on how monies flow into and out of those funds
and their resulting balances at the end of the fiscal year. Statements of governmental funds provide a detailed
short-term view of the District's general government operations and the basic services it provides. Such
information can be useful in evaluating a government's short-term financing requirements.
The District maintains three governmental funds. Information is presented separately in the Governmental
Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures, and Changes
in Fund Balances for the General Fund, Debt Service Fund and Capital Projects Fund.
The District adopts an annual appropriated budget for the General Fund. A budgetary comparison
statement is provided for the General Fund to demonstrate compliance with its budget.
Notes to the Basic Financial Statements - The notes provide additional information that is essential to a full
understanding of the data presented in the government -wide and fund financial statements.
Government -wide Financial Analysis
The Management's Discussion and Analysis highlights the information provided in both the Statement of
Net Position and Statement of Activities in the government -wide financial statements. It may serve over an
extended period of time, as a useful indicator of the District's financial position. At the end of the fiscal year,
the District's assets and deferred outflows exceeded liabilities and deferred inflows by $39,074,449. Of this
amount, $23,933,288 (61%) reflects the District's investment in capital assets (e.g., land, buildings,
machinery and equipment, net of accumulated depreciation), less any related outstanding debt used to
acquire those assets and unspent bond proceeds, $748,222 (2%) restricted for debt service and capital
projects, and the remaining $14,403,939 (37%) is unrestricted.
2022 governmental activities have increased the District's net position by $3,227,149, which amounts
to a nine -percent (9%) increase in net position for the year ended September 30, 2022.
5
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND. ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Government -wide Financial Analysis — Continued
District operational analysis - The following table provides a summary analysis
of the District's Statements of Net Position for the fiscal years ended September
30, 2022 and 2021.
Table 1
Condensed Statements of Net Position
Current and other assets
Capital assets
Total assets
Deferred outflows of resources
Long-term liabilities
Other liabilities
Total liabilities
Deferred inflows of resources
Net position:
Net investment in capital assets
Restricted
Unrestricted
Total net position
Governmental Activities
FY22 FY21
$ 18,749,584 $ 19,708,025
44,399,904 41,434,713
63,149,488 61,142,738
258,908 246,946
22,637,495 22,679,125
1,399,980 2,796,979
24,037,475 25,476,104
296,471 66,280
23,922,288 21,858,843
748,222 901,509
14,403,939 13,086,948
$ 39,074,449 $ 35,847,300
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Government -wide Financial Analysis - Continued
District operational analysis - The following table provides a summary analysis
of the District's consolidated operations for the fiscal years ended September 30,
2022 and 2021.
Table 2
Condensed Statements of Activities
Governmental Activities
FY22 FY21
Revenues:
Program Revenues:
Charges for services $ 10,937,443 $ 9,386,772
Operating grants and contributions -
Capital grants and contributions - -
General Revenues:
Property taxes 2,136,367 2,244,471
Other unrestricted contributions 164,890 -
Investment income 95,640 19,894
Gain on sold assets 21,001 23,975
Other 92,899 91,429
13,448,240 11,766,541
Expenses:
Water 4,160,522 3,194,919
Wastewater 2,495,767 2,574,458
Administration 1,593,047 1,656,575
Fire protection 1,251,603 903,326
Non -departmental and Board 102,472 80,631
Interest on long-term debt 617,680 668,678
10,221,091 9,078,587
Excess (deficiency) of revenues
over expenditures before transfers 3,227,149 2,687,954
Transfers In (Out)
Increase in net position
Net position - October 1
Net position - September 30
3,227,149 2,687,954
35,847,300 33,159,346
$ 39,074,449 $ 35,847,300
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Financial analysis of the District's funds
Governmental Funds - the main focus of the District's governmental funds is to
provide information on the flow of monies to and from the funds, and to note the
unassigned fund balance, which is a good indicator of resources available for
spending in the near term. The information derived from these funds is highly useful
in assessing the District's financial requirements. The unassigned fund balance may
serve as a useful measure of the District's net resources available for use at the fiscal
year-end.
At the end of the fiscal year, the District's governmental funds reported combined
ending fund balances of $17,140,724, of which 52%, or $8,994,256, is unassigned
and available to the District for future spending.
General Fund budgetary highlights
Revenue: Revenues were $1,065,591 (9.1%) more than budgeted
Water charges were $810,165 (13.4%) more than budgeted. An exceptional
Summer drought contributed to this result.
Expenditures: Expenditures were $147,734 (1.4%) less than budgeted
• Capital Outlay expenditures were $303,951 (13.2%) less than budgeted.
• Water Operations were $259,951 (6.9%) more than budgeted.
• Administration expenditures were $55,387 (4.0%) less than budgeted.
Capital Asset and Debt Administration
The District's investment in capital assets for its governmental activities as of
September 30, 2022 amounted to $44,399,904, net of accumulated depreciation. This
represents a broad range of capital assets including, but not limited to land, buildings,
improvements, machinery and equipment, vehicles, water, wastewater treatment, and
wastewater collection systems.
Capital assets increased $2,965,191 or 7.2% during 2022 primarily due to $4.6 million
of new construction in progress for the water and wastewater system. Additional
information about capital assets may be found in Note 5 in the notes to financial
statements.
Debt administration
Long -Term Debt - at the end of the current fiscal year, the District had $22,530,046 of
general obligation bonds, revenue bonds, and type A financing leases, which is a
decrease 7.6% from the previous fiscal year due to $1,863,948 of 2022 principal
payments. All 2022 debt service requirements were met and the District did not issue any
new debt during fiscal year 2022.
8
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Economic factors and next year's budgets and rates:
General Fund 2022 - 2023 budgetary highlights:
Revenue: The District's 2023 General Fund budgeted revenues reflect a projected increase of
$1,362,596, or 13.14%, when compared to the District's 2022 adopted budget.
• Water revenue is budgeted to increase from the $6,033,776 for fiscal year 2022's original
budget to $6,710,979 for fiscal year 2023 for a total projected increase of $677,203, or 11.22%.
• Sewer revenue is budgeted to increase from $3,824,473 for fiscal year 2022 budget to
$3,839,686 for fiscal year 2023 for a total projected increase of $15,213, or 0.40%.
• The District's M&O tax rate decreased from fiscal year 2022 to fiscal year 2023. The fiscal
year 2023 segregated M&O property tax revenue is budgeted to decrease by ($11,751) for Fire
and decrease by ($48,136) for the MUD when compared 2022.
Expenses: The District's 2023 General Fund budgeted expenses reflect a projected increase of
$1,362,596, or 13.14%, when compared to the District's 2022 adopted budget.
• Wholesale water purchases from the City of Fort Worth is budgeted to increase by $131,520,
or 5.24%, due to the consumption demands and increased cost for water.
• The capital outlay budgets collectively increased by $852,000, or 47.46% due to the District's
proactive asset replacement schedule and the continued inflation cost for service and materials.
• The maintenance and repair budgets collectively increased by $187,900, or 37.76% due to more
required repairs caused by an increased demand on the system.
• The electricity budgets collectively increased by $231,305, or 77.71% due the District's current
provider contract expiring and new significant rate increase.
• The District's budgeted personnel cost collectively decreased by ($158,698), or 7.23% due to
the reduction in FTE in both Wastewater and Water combined with COLA increase and new
employee benefit rates.
Overall: The District's 2023 General Fund operational budget is anticipated to have revenues
of $11,733,354 and expenses of $11,733,354 for a total projected net of $0 for the year.
Debt Service Fund 2022 - 2023 budgetary highlights:
• The District's Debt Service expenses are budgeted to increase from $2,264,892 in fiscal year
2022 to $2,269,673 budgeted for fiscal year 2023 for a total increase of $4,781, or 0.21%.
• Property tax revenues collected for Debt Service are budgeted to increase from $690,667 in
fiscal year 2022 to $696,446 budgeted in fiscal year 2023 for a total increase of 5,779, or 0.83%.
9
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Sewer and Water Rates highlights:
Effective April 1, 2022, the sewer volumetric rates were decreased for both the commercial and
residential customers by the District's Board of Directors to reflect the updated winter average
calculations. An increase in both the water base and volumetric rates were adopted for
residential and commercial customers effective October 1st, 2023.
Requests for information
This financial report is designed to provide a general overview of the District's
consolidated finances for all interested parties. Questions concerning any of the
information in this report or requests for additional information should be directed to
the Trophy Club Municipal Utility District No. 1, Finance Manager, 100 Municipal
Drive, Trophy Club, Texas 76262.
10
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
Statement of Net Position
September 30, 2022
Assets
Cash and cash equivalents
Investments
Restricted assets:
Restricted cash
Restricted investments
Prepaid assets
Receivables:
Accounts receivables - net
Property taxes
Net pension asset
Capital assets:
Non -depreciable capital assets
Depreciable capital assets (net)
Total assets
Deferred outflows of resources
Deferred outflows of resources - OPEB
Deferred outflows of resources - Pension
Total deferred outflows of resources
Liabilities
Accounts payable
Accrued liabilities
Interest payable
Customer meter deposits
Non-current liabilities:
Due within one year
Due in more than one year
OPEB liability
Total liabilities
Deferred inflows of resources
Deferred inflows of resources - OPEB
Deferred inflows of resources - Pension
Total deferred inflows of resources
Governmental
Activities
$ 6,071,244
7,444,400
328,600
3,273,422
3,880
1,368,491
21,474
238,073
10,162,805
34,237,099
63,149,488
10,051
248,857
258,908
993,236
27,478
50,666
328,600
1,782,648
20,821,601
33,246
24,037,475
6,204
290,267
296,471
Net Position
Net investment in capital assets 23,922,288
Restricted for:
Capital projects 660,318
Debt service 87,904
Unrestricted 14,403,939
Total net position $ 39,074,449
The accompanying notes are an integral part of these financial statements.
11
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
Statement of Activities
For the Year Ended September 30, 2022
Governmental Activities
Program Revenues
Net (Expense)
Revenue and
Changes in Net
Position
Operating Capital Total
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Primary government:
Governmental activities:
Water operations $ 4,160,522 $ 6,949,835 $ $ $ 2,789,312
Wastewater operations 2,495,767 3,965,364 1,469,597
Administration 1,593,047 22,245 (1,570,802)
Fire protection 1,251,603 - (1,251,603)
Non -departmental 99,721 (99,721)
Board of directors 2,751 (2,751)
Interest on long-term debt 617,680 - (617,680)
Total governmental activities $ 10,221,090 $ 10,937,443 $ $ 716,353
General revenues:
Property taxes 2,136,367
Contributions not restricted to specific programs 164,890
Investment earnings 95,640
Miscellaneous 92,899
Gain on sale of assets 21,001
Total general revenues 2,510,796
Change in net position 3,227,149
Net position - beginning 35,847,300
Net position - ending $ 39,074,449
The accompanying notes are an integral part of these financial statements.
12
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BALANCE SHEET -
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2022
Assets
Cash
Investments
Restricted assets:
Restricted cash
Restricted investments
Prepaid assets
Receivables:
Accounts receivable - net
Property taxes
Due from other funds
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued payroll liabilities
Customer deposits
Due to other funds
Total current liabilities
Deferred Inflows of Resources
Unavailable revenue - Property taxes
Total deferred inflows of resources
Fund Balances
Non -spendable:
Prepaid assets
Restricted for:
Debt service
Capital projects
Assigned for:
Capital projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
General
Fund
Debt
Service
Fund
$ 6,071,244 $
7,444,400
328,600
3,880
1,368,491
14,180
81,691
$ 15,312,486
87,904
7,294
Capital
Projects
Fund
3,185,518
Total
Governmental
Funds
$ 6,071,244
7,444,400
328,600
3,273,422
3,880
1,368,491
21,474
81,691
$ 95,198 $ 3,185,518 $ 18,593,202
$ 834,640 $
27,478
328,600
1,190,718
14,179
14,179
3,880
5,109,453
8,994,256
14,107,588
7,294
7,294
87,904
87,904
$ 158,596 $ 993,236
27,478
328,600
81,691 81,691
240,287
2,945,232
2,945,232
1,431,005
21,473
21,473
3,880
87,904
2,945,232
5,109,453
8,994,256
17,140,724
$ 15,312,486 $ 95,198 $ 3,185,518 $ 18,593,202
The accompanying notes are an integral part of these financial statements.
13
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
at September 30, 2022
Fund balances of governmental funds $ 17,140,724
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds. 44,399,904
Deferred outflows of resources related to pension and OPEB balances do not
provide current financial resources and, therefore, are not reported in the
governmental funds.
258,908
Deferred inflows of resources related to pension and OPEB balances do not
require the use of current financial resources and, therefore, are not reported
in the governmental funds. (296,471)
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds. (22,637,495)
Accrued interest payable for governmental -type long-term debt is recognized
in the governmental activities in the statement of net position. (50,666)
The District's net pension asset balance does not provide current financial
resources and, therefore, is not reported in the governmental funds. 238,073
Property tax receivables not received within sixty days after fiscal year-end
are deferred income on the fund financial statements, but these amounts are
realized as income on the government -wide financials. 21,473
Net position of governmental activities $ 39,074,449
The accompanying notes are an integral part of these financial statements.
14
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
For the Year Ended September 30, 2022
Revenues
Water charges
Wastewater charges
Property taxes
Intergovernmental
Late charges
Rental income
Inspections and other charges for services
Other revenue
Investment earnings
Total revenues
Expenditures
Current:
Water
Wastewater
Administration
Fire
Non -departmental
Board of directors
Capital outlays
Debt service:
Principal retirement
Interest and fees
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Proceeds from sold assets
Transfers in
Transfers (out)
Total other financing sources(uses)
Net changes in fund balances
Fund balances - beginning
Fund balances - ending
General
Fund
Debt
Service
Fund
Capital
Projects
Fund
$ 6,843,941 $ $
3,965,364
1,434,197 704,644
164,890
105,893
14,146
8,099
92,899
66,251 7,980 21,410
12,695,679
4,025,300
1,530,667
1,322,101
918,658
99,721
2,751
2,000,049
712,624 21,410
238,950 1,625,000
10,213 639,139
2,705,843
10,148,410 2,264,139 2,705,843
2,547,269
21,001
(1,574,226)
(1,551,515)
1,574,226
Total
Governmental
Funds
$ 6,843,941
3,965,364
2,138,841
164,890
105,893
14,146
8,099
92,899
95,640
13,429,712
4,025,300
1,530,667
1,322,101
918,658
99,721
2,751
4,705,892
1,863,950
649,352
15,118,392
(2,684,434) (1,688,680)
21,001
1,574,226
(1,574,226)
(1,553,225) 1,574,226 21,001
994,044 22,711 (2,684,434)
13,113,544 65,193 5,629,665
(1,667,678)
18,808,403
$ 14,107,588 $ 87,904 $ 2,945,232 $ 17,140,724
The accompanying notes are an integral part of these financial statements.
15
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds
To the Statement of Activities
For the Year Ended September 30, 2022
Amounts reported for governmental activities in the statement of activities are different
because:
Net change in fund balances - total governmental funds $ (1,667,678)
Governmental funds report capital outlays as expenditures. However, in the statement of activities,
the cost of those assets is allocated over their estimated useful lives and reported as depreciation
expense. This is the amount by which capital outlay expense exceeded depreciation expense in the
fiscal year.
2,981,933
Accrued interest does not require the use of current financial resources and, therefore, is not
reported as an expenditure in the governmental funds. This is the (increase) decrease in accrued
interest. 6,689
Principal payments on long-term debt are an expenditure for the governmental funds, but this
expenditure is a reduction of long-term debt for the government -wide financial statements. 1,863,950
Various other reclassifications and eliminations are necessary to convert from the modified accrual
basis of accounting to accrual basis of accounting. These include recognizing a $2,474 decrease in
deferred revenue, and various other smaller items. The net effect of these reclassifications is to
decrease net position.
Modifications are necessary to convert from the modified accrual basis of accounting to accrual
basis of accounting for OPEB and pension expense. The net effect of these adjustments is to
increase net position.
Change in net position of governmental activities:
The accompanying notes are an integral part of these financial statements.
16
(5,623)
47,879
$ 3,227,149
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. General Statement
Denton County Municipal Utility District No. I (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
Director's 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. I 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
(MUD 2). As a result, the District reports consolidated activity and balances for the District and the entities
formerly known as MUD 2 and the Trophy Club Master District Joint Venture (a joint venture of MUD 1 and
MUD 2).
The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for the District.
The financial statements of the District have been prepared in conformity with generally accepted accounting
principles (GAAP) as applied to government units.
B. Financial Reporting Entity
As required by accounting principles generally accepted in the United States of America, these financial
statements include the activities of the District and any organizations for which the District is financially
accountable or for which the nature and significance of their relationship with the District are such that
exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
The definition of the reporting entity is based primarily on the notion of financial accountability. A primary
government is financially accountable for the organizations that make up its legal entity. It is also financially
accountable for legally separate organizations if its officials appoint a voting majority of an organization's
governing body and either it is able to impose its will on that organization or there is a potential for the
organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary
government. A primary government may also be financially accountable for governmental organizations that
are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can significantly influence the
programs, projects, or activities of, or the level of services performed or provided by, the organization. A
financial benefit or burden relationship exists if the primary government (a) is entitled to the organization's
resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide
financial support to, the organization; or (c) is obligated in some manner for the debt of the organization. Some
organizations are included as component units because of their fiscal dependency on the primary government.
17
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Anorganization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes,
set rates or charges, or issue bonded debt without approval by the primary government. The District has
determined it has no component units.
C. Government -Wide and Fund Financial Statements
The government -wide financial statements (the Statement of Net Position and the Statement of Activities)
report information onall of the activities of the District, except for fiduciary funds. The effect of interfund
activity has been removed from these statements. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a
significant extent on fees and charges for support. The activities of the District are comprised only of
governmental activities.
The Statement of Activities demonstrates the degree to which the direct expenses of a given program are offset
by program revenues. Direct expenses are those that are clearly identifiable with a specific program. Program
revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given program and 2) operating or capital grants and contributions that
are restricted to meeting the operational or capital requirements of a particular program. Taxes and other items
not properly included among program revenues are reported instead as general revenues.
Fund Financial Statements
The District segregates transactions related to certain functions or activities in separate funds in order to aid
financial management and to demonstrate legal compliance. These statements are required to present each
major fund in a separate column on the fund financial statements. For fiscal year 2022, the major funds are
the General Fund, Capital Projects Fund, and the Debt Service Fund.
Governmental funds are those funds through which most governmental functions typically are financed. The
measurement focus of governmental funds is on the sources, uses and balance of current financial resources.
The District has presented the following governmental funds:
General Fund
The General Fund is the main operating fund of the District. This fund is used to account for all.
financial resources not accounted for in other funds. All general tax revenues and other receipts that
are not restricted by law or contractual agreement to some other fund are accounted for in this fund.
General operating expenditures, fixed charges and capital improvement costs that are not paid
through other funds are paid from the General Fund.
Debt Service Fund
The Debt Service Fund is used to account for resources accumulated and payments made for
principal and interest on the long-term debt of governmental funds.
18
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Capital Projects Fund
The Capital Projects Fund is used to account for funds received and expended for the acquisition and
construction of infrastructure and other capital assets.
D. Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting
relates to the timing of the measurement made, regardless of the measurement focus applied.
The government -wide statements are reported using the economic resources measurement focus and the
accrual basis of accounting.
The economic resources measurement focus means all assets and liabilities (whether current or non-current)
are included on the Statement of Net Position and the operating statements present increases (revenues) and
decreases (expenses) in net total position. Under the accrual basis of accounting, revenues are recognized
when earned. Expenses are recognized at the time the liability is incurred.
Governmental fund financial statements are reported using the current financial resources measurement focus
and are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of
accounting, revenues are recognized when susceptible to accrual; i.e., when they become both measurable
and available.
"Measurable" means the amount of the transaction can be determined and "available" means collectible within
the current period or soon enough thereafter to be used to pay liabilities of the c urrent period. The District
considers receivables collected within sixty days after year-end to be available and recognizes them as
revenues of the current year. Expenditures are recorded when the related fund liability is incurred. However,
debt service expenditures are recorded only when payment is due.
The revenues susceptible to accrual are interest income and ad valorem taxes. All other governmental fund
revenues are recognized when received.
E. Cash and Investments
The District's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments of three months or less from the date of acquisition,
19
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
The District's investment policy requires that all monies be deposited with the authorized District depository
or in (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State
of Texas or its agencies; (3) other obligations, the principal of and interest on which are unconditionally
guaranteed or insured by the State of Texas or the United States; (4) obligations of states, agencies, counties,
cities, and other political subdivisions of any state having been rated as to investment quality by a nationally
recognized investment rating firm and having received a rating of not less than A or its equivalent; (5)
certificates of deposit by state and national banks domiciled in this state that are (A) guaranteed or insured by
the Federal Deposit Insurance Corporation, or its successor; or, (B) secured by obligations that are fully
collateralized.
All investments are recorded at fair value based on quoted market prices. Fair value is the amount at which a
financial instrument could be exchanged in a current transaction between willing parties.
F. Capital Assets
Capital assets, which include property, plant, and equipment, are reported in the government -wide financial
statements. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is
not available. Donated assets are valued at their fair value on the date donated. Repairs and maintenance are
recorded as expenses. Renewals and betterments are capitalized.
Assets capitalized have an original cost of $5,000 or more and over one year of useful life. Depreciation has
been calculated on each class of depreciable property using the straight-line method. Estimated useful lives
are as follows:
Depreciable
Asset Category Life in Years
Buildings 50
Improvements other than Buildings 15-30
Machinery and Equipment 5-15
Vehicles 6-12
Water & Wastewater Infrastructure 30-65
G. Compensated Absences
Employees earn vacation pay based upon seniority that accrues at various rates up to a maximum four
weeks per year. Upon termination, employees will be paid for their unused earned vacation. The District
accrues a liability for the value of these compensated absences on the full -accrual basis statement of net
position.
20
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
H. Net Position
Net position represents the difference between assets and deferred outflows of resources, less deferred
inflows of resources and liabilities. Net position invested in capital assets, net of related debt consists of
capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing
used for the acquisition, construction or improvements of those assets, and adding back unspent
proceeds. Net position is reported as restricted when there are limitations imposed on their use either
through the enabling Legislations adopted by the District or through external restrictions imposed by
creditors, grantors or laws or regulations of other governments.
I. Estimates
In preparing financial statements in conformity with accounting principles generally accepted in the
United States of America, management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities, and the
reported amounts of revenue and expenses/expenditures. Actual results could differ from those
estimates.
J. Fund Balances
Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions (GASB 54) defines the different types of fund balances that a
governmental entity must use for financial reporting purposes in the fund financial statements for
governmental type funds. It does not apply for the government -wide financial statements.
GASB 54 requires the fund balance amounts to be property reported within one of the following fund
balance categories:
Nonspendable - such as fund balance associated with inventories, prepaids, long-term loans and notes
receivable, and property held for resale (unless the proceeds are restricted, committed, or assigned),
Restricted - fund balance category includes amounts that can be spent only for the specific purposes
stipulated by constitution, external resource providers, or through enabling legislation,
Committed - fund balance classification includes amounts that can be used only for the specific purposes
determined by a formal action of the Board of Directors (the District's highest level of decision-making
authority),
Assigned - fund balance classifications are assigned by the District Manager with the intentions to be
used by the government for specific purposes but do not meet the criteria to be classified as restricted or
committed, and
Unassigned - fund balance is the residual classification for the District's General Fund and includes all
spendable amounts not contained in the other classifications, and other fund's that have total negative
fund balances.
21
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
K. Accounts Receivable and Allowances for Bad Debt
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 2022. 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.
NOTE 2. CASH AND INVESTMENTS
The funds of the District must be deposited and invested under the terms of a contract, contents of which
are set out in the Depository Contract Law. The depository bank places approved pledged securities for
safekeeping and trust with the District's agent bank in an amount sufficient to protect District funds on
a day-to-day basis during the period of the contract. The pledge of approved securities is waived only to
the extent of the depository bank's dollar amount of Federal. Deposit Insurance Corporation (FDIC)
insurance.
At September 30, 2022, the carrying amount of the District's cash deposits was $6,399,204 and the bank
balance was $7,113,691. Of the District's cash deposits at September 30, 2022, $250,000 was insured
by FDIC and $6,863,691 was covered by pledged securities,
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the
areas of investment practices, management reports and establishment of appropriate policies. Among
other things, it requires the District to adopt, implement, and publicize an investment policy. That policy
must address the following areas; (1) safety of principal and. liquidity, (2) portfolio diversification, (3)
allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable
stated maturity of portfolio investments, (7) maximum average dollar -weighted maturity, allowed based
on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid
solicitation preferences for certificates of deposit.
Cash and investments as of September 30, 2022 consist of the foliowing:
Deposits with financial institutions $ 6,399,211
Unrestricted TexPool investments 7,444,400
Restricted TexPool investments 2,486,201
Restricted BOK Financial investments 787,221
Petty cash 600
Total Cash and Investments $ 17,117,665
72
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 2. CASH AND INVESTMENTS — CONTINUED
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value
to changes in market interest rates. One of the ways that the District manages its exposure to interest rate
risk is by investing mainly in investment pools which purchase a combination of shorter -term investments
with an average maturity of less than 60 days thus reducing the interest rate risk. The District monitors the
interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The
District monitors its interest rate risk, which is governed by adopted Investment Policies.
As of September 30, 2022, the District had the following investments:
Weighted Avg.
Investment Type Carrying Amount Maturity
TexPool Pooled Investments $ 9,930,600 24 days
BOK Financial - U.S. Securities $ 787,221 13 days
As of September 30, 2022, the District did not invest in any securities which are highly sensitive to interest
rate fluctuations.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. Presented below is the minimum rating required by (where applicable) the Public
Funds Investment Act, the District's investment policy, or debt agreements, and the actual rating as of year-
end for each investment type.
Minimum Rating at
Investment Type Carrying Amount Legal Rating Year -End
TexPool Pooled Investments $ 9,930,600 AAAm AAAm
BOK Financial - U.S. Securities $ 787,221 AAAm AAAm
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 2. CASH AND INVESTMENTS — CONTINUED
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution,
a government will not be able to recover its deposits or will not be able to recover collateral securities that are
in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of
the failure of the counterparty to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The Public Funds Investment
Act and the .District's investment policy have the following provision for deposits: They require that a financial
institution secure deposits made by state or local governmental units by either 1) pledging securities in an
undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental
unit), or 2) an irrevocable standby letter of credit with the District named as the beneficiary. The market value
of pledged securities in the collateral pool or the value of the letter of credit must equal at least the bank
balance less .FDIC insurance at all times.
Investment in State Investment Pools
The District is a voluntary participant in TexPool. The State Comptroller of Public Accounts exercises
responsibility over TexPool. This 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. TexPool operates in a manner consistent with the SEC's Rule 2a7 of the
Investment Company Act of 1940. TexPool uses amortized costs rather than market value to report net assets
to compute share prices. Accordingly, the fair value of the position in TexPooI is the same as the value of
TexPool shares. The TexPool and the mutual fund investments are measured at amortized cost and are exempt for
fair value reporting under GASB Statement No. 72, Fair Value Measurement and Application.
24
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 3. ACCOUNTS RECEIVABLE
Receivables as of September 30, 2022 are as follows:
Water sales
Wastewater sales
Unbilled receivables
Refuse (as an agent for the Town of Trophy Club)
Stone drainage (as an agent for the Town of Trophy Club)
Refuse tax (as an agent for the Town of Trophy Club)
PID surcharge (as an agent for the Town of Trophy Club)
Property taxes
Other
Gross receivables
Less: Allowance for uncollectables
Net receivables
NOTE 4. INTERFUND TRANSFERS AND BALANCES
$ 730,810
335,935
158,082
87,867
42,217
7,537
14,132
21,474
3,963
1,402,016
(12,051)
$ 1,389,965
Transfers between funds during the year -ended September 30, 2022 are as follows:
Transfers From
General Fund
Transfers To
Debt Service Fund
Total:
Amount Purpose
$ 1,574,226 Debt service assistance
$ 1,574,226
Interfund due to/due from balances as of September 30, 2022 are as follows:
Due From
Fund Other Funds
General Fund $ 81,691
Capital Projects Fund
$ 81,691
Due To Other
Funds
81,691
$ 81,691
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 5. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2022, was as follows:
Governmental Activities:
Capital assets - Non -Depreciable
Land
Construction in progress
Water rights
Total non -depreciable assets:
Beginning
Balances
Retirements/ Ending
Additions Transfers Balance
Capital assets - Depreciable
Buildings
Improvements other than buildings
Machinery and equipment
Organization costs
Vehicles
Water system
Wastewater treatment system
Wastewater collection system
Total capital assets being depreciated:
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Organization costs
Vehicles
Water system
Wastewater treatment system
Wastewater collection system
Total accumulated depreciation:
Total depreciable capital assets, net:
Capital assets, net:
$ 648,178 $ - $
4,351,712 4,668,922
864,678
- $ 648,178
(370,685) 8,649,949
864,678
5,864,568
3,535,137
600,776
2,984,794
2,354,963
2,816,913
14,019,565
22,497,150
4,541,890
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
4,668,922 (370,685) 10,162,805
3,535,137
600,776
18.476 41,293 3,044,563
288,600 2,643,563
(29.268) 2,787,645
37,013 14,056,578
22,497,150
4,541,890
55,489 300,625 53,707,302
80,890
22,221
110,986
15,420
218,784
253,598
941,643
80,417
1,723,959
35,570,145 (1,668,470)
917,369
336,310
(6,581) 1,589,866
2,342,353
(28,218) 1,926,797
4,991,590
5,444,050
1,921,868
(34,799) 19,470,203
335,424 34,237,099
$ 41434,713 $ 3.000 452 $ (35,261) $ 44,399,904
26
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 5. CAPITAL ASSETS - CONTINUED
Depreciation expense was charged as direct expense to programs of the primary government as follows:
Governmental activities:
General government
Water operations
Wastewater operations
Fire department
Wastewater collection systems
Total depreciation expense
NOTE 6 LONG-TERM DEBT
$ 332,945
258,773
981,059
83,299
67,883
$ 1,723,959
At September 30, 2022, the District's Tong -term debt issuances consisted of the following:
General Obligation Bonds
Series 2012 Refunding Bonds
Series 2013 Tax Bonds
Series 2014 Tax Bonds
Series 2020 Refunding Bonds
Revenue Bonds
Series 2015 Bonds
Series 2016 Bonds
Series 2019 Bonds
Type A Financing Leases
Freightliner Truck Lease
Camera Van Lease
Total long-term debt:
Interest
Rate (%)
Maturity
Date
2.0-3.0% 8/31/2023
2.0-3.0% 8/31/2023
1.5-3.5% 8/31/2034
1.30% 8/31/2031
2.0-3.25% 8/31/2035
0.5-2.2% 8/31/2036
3.0-3.5% 8/31/2049
2.95% 2/1/2023
3.95% 2/1/2024
27
Due Within
Outstanding One Year
$ 250,000
215,000
4,005,000
1,090,000
6,700,000
3,365,000
6,765,000
$ 250,000
215,000
280,000
115,000
420,000
220,000
165,000
74,144 74,144
65,902 43,504
$ 22,530,046 $ 1,782,648
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 6. LONG-TERM DEBT - CONTINUED
The following is a summary of long-term transactions of the District for the year ended September 30,
2022:
Governmental activities:
General Obligation Bonds
Revenue Bonds
Net Bond Premium (Discount)
Type A Financing Leases
Compensated Absences
Total Governmental activities long-term debt:
Beginning
Due Within
Balance Additions Reductions Ending Balance One Year
$ 6,395,000 $
17,620,000
24,982
378,994
62,817
$ (835,000) $ 5,560,000 $ 860,000
(790,000) 16,830,000 805,000
(24,982) -
(238,948) 140,046 117,648
11,388 74,205
$ 24,481,793 $ 11,388 $ (1,888,930) $ 22,604,251 $ 1,782,648
The annual debt service requirements for the District's bonds are as follows:
Fiscal Year Ending
2023
2024
2025
2026
2027
2028-2032
2033-2037
2038-2042
2043-2047
2048-2049
Totals:
General Obligation and Revenue Bonds
Principal Interest Totals
$ 1,665,000 $ 601,321 $ 2,266,321
1,235,000 563,127 1,798,127
1,265,000 538,295 1,803,295
1,285,000 511,555 1,796,555
1,325,000 482,948 1,807,948
7,085,000 1,904,154 8,989,154
4,835,000 932,696 5,767,696
1,370,000 526,331 1,896,331
1,605,000 288,850 1,893,850
720,000 37,531 757,531
$ 22,390,000 $ 6,386,808 $ 28,776,808
28
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 6. LONG-TERM DEBT- CONTINUED
As of September 30, 2022, the District has two outstanding Type A financing leases. Both leased assets are
classified as vehicles. Total capitalized cost is $565,604 and amortized net book value is $204,853 at September
30, 2022. $94,054 of amortization expense has been included in depreciation expense for the year ended
September 30, 2022.
The following is a schedule of future debt service requirements for these leases:
Fiscal Year Ending September 30 Principal Interest Totals
2023 $ 117,648 $ 3,271 $ 120,919
2024 22,398 442 22,840
Total Financing Lease Debt Service: $ 140,046 $ 3,713 $ 143,759
NOTE 7. RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
business interruption; errors and omissions; injuries to employees; employee health benefits; and other claims of
various nature. Commercial insurance is purchased for the risks of loss to which the District is exposed. Any
losses reported but unsettled or incurred and not reported, are believed to be insignificant to the District's basic
financial statements.
Additionally, the District must operate in compliance with rules and regulations mandated for public water supply
systems by federal and state governments. The District is subject to compliance oversight by the Texas
Commission on Environmental Quality (TCEQ).
NOTE 8. RETIREMENT PLAN
The District provides retirement, disability, and death benefits for all of its full-time employees through a
nontraditional defined benefit pension plan in the statewide Texas County and District Retirement System
(TCDRS). The Board of Trustees of TCDRS is responsible for the administration of the statewide agent multiple -
employer public employee retirement system consisting of nontraditional defined benefit pension plans. TCDRS
in the aggregate issues a comprehensive annual financial report (CAFR) on a calendar -year basis. The CAFR is
available upon written request from the TCDRS Board of Trustees at P.O. Box 2034, Austin, Texas 78768-2034.
The plan provisions are adopted by the governing body of the employer, within the options available in the Texas
state statutes governing TCDRS (TCDRS Act). Members can retire at ages 60 and above with 10 or more years
of service, with 30 years of service regardless of age, or when the sum of their age and years of service equals 80
or more. Members are vested after 10 years of service but must leave their accumulated contributions in the plan
to receive any employer -financed benefit. Members who withdraw their personal contributions in a lump sum
are not entitled to any amounts contributed by their employer.
29
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 8. RETIREMENT PLAN - CONTINUED
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 sumof the employee's accumulated contributions and
the employer -financed monetary credits to a monthly annuity using annuity purchase rates prescribed by the
TCDRS Act.
Contributions
The employer has elected the annually determined contribution rate (ADCR) plan provision of the TCDRS
Act. The plan is funded by monthly contributions from both employee members and the employer based on
the covered payroll of employee members. Under the TCDRS Act, the contribution rate of the employer is
actuarially determined annually. The employer contributed using the actuarially determined rates of 9.00%
and 10.92% for calendar years 2021 and 2022, respectively. Total employer contributions for the year ended
September 30, 2022 was $148,867.
The contribution rate payable by the employee members for calendar years 2021 and 2022 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 total pension liability in the December 31, 2021 actuarial valuation was determined using the following
actuarial assumptions:
Valuation Date: December 31, 2021
Actuarial Cost Method: Entry Age Normal
Asset Valuation Method:
Smoothing Period 5 Years
Recognition Method Non -asymptotic
Corridor None
Inflation: 2.50%
Salary Increase: 4.70%
Investment Rate of Return: 7.50% (net)
30
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE & RETIREMENT PLAN - CONTINUED
Discount Rate
The discount rate used to measure the total pension liability was 7.60%. There was no change in the discount rate
since the previous year, The projection of cash flows used to determine the discount rate assumed that contributions
from plan members and those of the contributing employers and the non -employer 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, 2021 are summarized below:
Asset Class
U.S. Equities
Global Equities
Int'I Equities - Developed Markets
Int'1 Equities - Emerging Markets
Investment Grade Bonds
Strategic Credit
Direct Lending
Distressed Debt
REIT Equities
Master Limited Partnerships
Private Real Estate Partnerships
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 NAREIT Equity REITs Index + 33% S&P Global REIT Index
Alerian MLP Index
Cambridge Associates Real Estate Index
Cambridge Associates Global Private Equity & Venture Capital Index
Hedge Fund Research, Inc. Fund of Funds Composite Index
90 -Day U.S. Treasury
Target
Allocation
11.50%
2.50%
5.00%
6.00%
3.00%
9.00%
16.00%
4.00%
2.00%
2.00%
6.00%
25.00%
6.00%
2.00%
Geometric
Real Rate
of Return
3.80%
4.10%
3.80%
4.30%
-0.85%
1.77%
6.25%
4.50%
3.10%
3.85%
5.10%
6.80%
1.55%
-1.05%
Discount Rate Sensitivity Analysis
The following schedule shows the impact of the Net Pension Liability (Asset) if the discount rate used was 1% less
than and 1% greater than the discount rate that was used (7.60%) in measuring the Net Pension Liability:
Net pension liability (asset) $
148,894 $ (238,073) $ (560,957)
31
Current
1% Decrease
Discount Rate
1% Increase
6.60%
7.60%
8.60%
Net pension liability (asset) $
148,894 $ (238,073) $ (560,957)
31
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 8. RETIREMENT PLAN - CONTINUED
Pension Assets/Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At September 30, 2022, the District reported ($238,073) for the net pension (asset) and pension expense
of $90,383 related to the December 31, 2021 valuation. The breakdown of the components of the total
pension liability, plan fiduciary net position, and the net pension liability follows:
Changes in the Net Pension Liability (Asset)
Increase (Decrease)
Total
Pension
Liability (a)
Plan
Fiduciary
Net Position
(b)
Net Pension
Liab./(Asset)
(a) - (b)
Balances at 12/31/2020:
Changes for the year:
Service cost
Interest
Effect of plan changes
$ 2,088,961 $
227,965
175,365
Effect of economic/demographic gains or losses 27,195
Effect of assumptions changes or inputs 7,163
Refund of contributions (3,339)
Benefit payments (15,991)
Administrative expenses
Member contributions
Net investment income
Employer contributions
Other changes
Balances at 12/31/2021: $ 2,507,319 $
2,058,271 $
(3,339)
(15,991)
(1,485)
98,621
475,821
127,080
6,414
2,745,392 $
30,690
227,965
175,365
27,195
7,163
1,485
(98,621)
(475,821)
(127,080)
(6,414)
(238,073)
The District reported deferred outflows of resources and deferred inflows of resources related to the
pension from the following sources:
Deferred Inflows / Outflows of Resources
Difference between expected and actual experience
Changes of assumptions
Net difference between projected and actual earnings
Contributions subsequent to the measurement date
Totals:
Deferred Inflows
of Resources
$ 7,007
283,260
N/A
Deferred Outflows
of Resources
$ 45,038
92,413
111,406
$ 290,267 $ 248,857
$111,406 reported as deferred outflow of resources for contributions made subsequent to the
measurement date will be recognized as an addition to the net pension asset in the 2022 measurement
year.
32
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 8. RETIREMENT PLAN - CONTINUED
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:
Fiscal Year Ending:
2023 $ (34,062)
2024 (52,957)
2025 (35,126)
2026 (30,671)
2027
Thereafter
$ (152,816)
NOTE 9. OTHER POST -EMPLOYMENT BENEFITS
Plan Description
The District participates in the retiree Group Term Life program for the Texas County & District
Retirement System (TCDRS), which is a statewide, multiple -employer, public employee retirement
system.
All full and part-time non -temporary employees participate in the plan, regardless of the number of hours
they work in a year and are eligible for the TCDRS pension plan. Only employers that have elected
participation in the retiree Group Term Life program are included in the OPEB plan.
The plan provides a $5,000 post-retirement death benefit to beneficiaries of service retirees and disability
retirees of employers that have elected participation in the retiree GTL program. The OPEB benefit is a
fixed $5,000 lump -sum benefit. No future increases are assumed in the $5,000 benefit amount.
Benefit terms are established under the TCDRS Act. Participation in the retiree GTL program is optional
and the employer may elect to opt out of (or opt into) coverage as of January 1 each year. The District's
contribution rate for the retiree GTL program is calculated annually on an actuarial basis, and is equal to
the cost of providing a one-year deal benefit equal to $5,000.
Membership information is shown in the chart below:
Inactive employees or beneficiaries currently receiving benefits: 2
Inactive employees entitled, but not yet receiving benefits: 5
Active employees: 19
Total: 26
Total OPEB Liability
The District's total OPEB liability was determined by an actuarial valuation dated December 31, 2021. Estimates
include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer are subject to
continual revisions as actual results are compared with past expectations and new estimates are made about the
future.
33
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 9. OTHER POST -EMPLOYMENT BENEFITS - CONTINUED
Below is a schedule of significant assumptions used to estimate the District's ARC:
Valuation Date:
Amortization Method:
Discount Rate:
Disability:
Mortality:
Depositing Members
Retirees/Beneficiaries
Disabled Retirees
Discount Rate
December 31, 2021
Straight -Line Over Expected Working Life
2.06%
Custom rates based on TCDRS experience
90% of RP -2014 Active Employee Mortality Table for males and 90%
of the RP -2014 Active Employee Mortality Table for females, projected
with 110% of the MP -2014 Ultimate scale after 2014.
130% of the RP -2014 Healthy Annuitant Mortality Table for males and
110% of the RP -2014 Healthy Annuitant Mortality Table for females,
both projected with 110% of the MP -2014 Ultimate scale after 2014.
130% of the RP -2014 Disabled Annuitant Mortality Table formulas and
115% of the RP -2014 Disabled Annuitant Mortality Table for females,
both projected with 110% of the MP -2014 Ultimate scale after 2014.
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, 2021 (measurement date under GASB 75). At this date, the discount rate was 2.06%.
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 (1.06%) or 1% point higher (3.06%) than the current rate, for measurement period ended December 31,
2021:
Total OPEB liability $
41,880 $
34
33,246 $
26,685
Current
1% Decrease
Discount Rate
1% Increase
1.06%
2.06%
3.06%
Total OPEB liability $
41,880 $
34
33,246 $
26,685
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 9. OTHER POST -EMPLOYMENT BENEFITS - CONTINUED
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended September 30, 2022, the District recognized expense related to OPEB of $5,059.
As of September 30, 2022, the District reported deferred inflows of resources related to OPEB from the
following sources:
Deferred Inflows / Outflows of Resources Deferred Inflows Deferred Outflows
of Resources of Resources
Difference between expected and actual experience $ 5,044 $
Changes of assumptions 1,160 7,193
Net difference between projected and actual earnings
Contributions subsequent to the measurement date N/A 2,858
Totals: $ 6,204 $ 10,051
The $2.858 contributions made after the measurement date of the total OPEB liability but before the end of
the District's reporting period will be recognized as a reduction of the total OPEB liability in the subsequent
fiscal period.
The other amount reported as deferred outflows of resources related to OPEB will be recognized in OPEB
expense as follows:
Fiscal Year Ending:
2023
2024
2025
2026
2027
Thereafter
NOTE 10. SUBSEQUENT EVENTS
202
204
112
596
(125)
$ 989
The District has evaluated all events and transactions after September 30, 2022 up through the audit report
date, which is the date the financial statements were issued. The District has no subsequent events to disclose.
35
REQUIRED SUPPLEMENTARY INFORMATION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual - General Fund
For the Year Ended September 30, 2022
Revenues
Water charges
Wastewater charges
Property taxes
Intergovernmental
Late charges
Rental income
Inspections and other charges for services
Other revenue
Investment earnings
Total revenues
Expenditures
Current:
Water
Wastewater
Administration
Fire
Non -departmental
Board of directors
Capital outlays
Debt service:
Principal retirement
Interest and fees
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Proceeds from sold assets
Transfers in
Transfers (out)
Total other financing sources (uses)
Net changes in fund balances
Fund balances - beginning
Fund balances - ending
Original Budget Final Budget
$ 6,033,776
3,874,473
1,406,022
165,537
94,826
14,146
19,308
7,000
15,000
11,630,088
$ 6,033,776
3,874,473
1,406,022
165,537
94,826
14,146
19,308
7,000
15,000
Actual
Amounts
$ 6,843,941
3,965,364
1,434,197
164,890
105,893
14,146
8,099
92,899
66,251
11,630,088 12,695,679
Variance with
Final Budget -
Positive
(Negative)
$ 810,165
90,891
28,175
(647)
11,067
(0)
(11,209)
85,899
51,251
1,065,591
3,725,349 3,765,349 4,025,300 (259,951)
1,572,960 1,517,960 1,530,667 (12,707)
1,377,488 1,377,488 1,322,101 55,387
919,700 919,700 918,658 1,042
185,705 150,705 99,721 50,984
11,780 11,780 2,751 9,029
1,795,000 2,304,000 2,000,049 303,951
237,344 237,344 238,950 (1,606)
11,818 11,818 10,213 1,605
9,837,144 10,296,144 10,148,410 147,734
1,792,944 1,333,944 2,547,269 1,213,325
10,000
(1,860,644)
(1,850,644)
(57,700)
13,113,544
$ 13,055,844
25,000 21,001 (3,999)
(1,860,644)
(1,835,644)
(501,700)
13,113,544
$ 12,611,844
(1,574,226) 286,418
(1,553,225) 282,419
994,044 $ 1,495,744
13,113,544
$ 14,107,588
The accompanying notes are an integral part of these financial statements.
36
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (LAST TEN MEASUREMENT YEARS)
TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Total Pension Liability
Service cost
Interest on total pension liability
Effect of plan changes
Difference between expected and actual experience
Effect of assumptions changes or inputs
Benefit payments/Refund of contributions
Net Change in Total Pension Liability
Total pension liability, beginning
Total pension liability, ending
Fiduciary Net Position
Employer contributions
Member contributions
Investment income (net of expenses)
Benefit payments/Refund of contributions
Administrative expenses
Other
December December
31, 2021 31, 2020
$ 227,965 $
175,365
27,195
7,163
(19,329)
418,359
2,088,961
$ 2,507,320
127,080
98,621
475,821
(19,329)
(1,485)
6,414
December December
31, 2019 31, 2018
183,103 $
145,931
164,365 $
121,767
21,485 8,770
127,091
(14,049) (16,533)
463,561 278,369
1,625,400
$ 2,088,961
122,021
94,695
173,686
(14,049)
(1,506)
6,162
Net Change in Fiduciary Net Position 687,122 381,009
Fiduciary Net Position, beginning 2,058,271 1,677,262
Fiduciary Net Position, ending 2,745,393 2,058,271
December
31, 2017
153,752 $
100,515
December
31, 2016
December December
31, 2015 31, 2014
176,975 $ 200,990 $
83,553 57,230
13,723 (25,170)
5,971
(15,970) (1,695)
252,020 239,634
1,347,031 1,095,011
(9,790)
(2,091)
246,339
150,689
41,351
(22,086)
(11,320)
7,686
(1,902)
164,418
$ 170,600
27,449
(7,057)
(3,156)
187,836
855,377 609,038 444,620 256,784
$ 1,625,400 $ 1,347,031 $ 1,095,011 $ 855,377 $ 609,038 $ 444,620
103,641
80,287
212,168
(16,533)
(1,278)
5,966
94,803
73,880
(19,840)
(15,970)
(1,039)
4,667
102,802
79,868
126,587
(1,695)
(769)
2,418
384,251 136,501 309,211
1,293,011 1,156,510 847,300
1,677,262
Net pension liability / (asset), ending $ (238,073) $ 30,690 $
1,293,011 1,156,511
95,185 97,043
78,388 78,171
46,440 (15,011)
(2,091) (1,902)
(505) (394)
19,889 (47)
237,306 157,860
609,994 452,134
847,300 609,994
(51,862) $ 54,020 $ (61,500) $ 8,077
93,694
74,784
18,561
(3,156)
(285)
(21)
183,577
268,557
452,134
(956) $ (7,514)
Fiduciary net position as a percentage of total pension
liability 109.50% 98.53% 103.19% 95.99% 105.62% 99.06% 100.16% 101.69%
Covered -employee payroll $ 1,408,871 $ 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 percentage of covered payroll -16.90% 2.27% -4.51% 5.12%
-5.39%
0.72%
-0.09%
Note 1 - GASB 68 requires that information on this schedule be presented on the measurement date basis, which is on a calendar year basis. This schedule will also ultimately present the
last ten years of information. The measurement year 2014 is the first year for which this information is available.
37
-0.70%
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF EMPLOYER PENSION CONTRIBUTIONS (LAST TEN FISCAL YEARS)
TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Contractually required contributions
2022 2021 2020 2019 2018 2017 2016 2015 2014
$ 148,867 $ 117,151 $ 97,337 $ 92,561 $ 102,802 $ 97,875 $ 97,043 $ 93,694 $ 84,476
Contributions in relation to the contractually
required contributions 148,867 122,021 103,641 94,803 102,802 97,875 97,043 93,694 198,219
Contribution deficiency (excess) $ $ (4,870) $ (6,304) $ (2,242) $ $ $ $ $ (113,743)
District's covered -employee payroll $ 1,436,437 $ 1,352,780 $ 1,146,956 $ 1,055,433 $ 1,140,976 $ 1,119,822 $ 1,116,721 $ 1,068,342 $ 963,243
Contributions as a percentage of covered
employee payroll 10.4% 9.0% 9.0%
9.0%
9.0% 8.7%
8.7% 8.8% 20.6%
GASB 68 requires that information on this schedule be presented on the District's fiscal year basis. This schedule will also ultimately present the last ten years of information. 2014 is the first
year for which this information is available.
38
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS (LAST TEN MEASUREMENT YEARS)
TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2022
December December December December December
31, 2021 31, 2020 31, 2019 31, 2018 31, 2017
Total OPEB Liability
Service cost $ 4,121 $ 3,314 $ 2,241 $ 2,503 $ 2,889
Interest on total pension liability 736 771 778 669 595
Effect of plan changes -
Difference between expected and actual experience (2,610) (2,345) (1,422) (678) (321)
Effect of assumptions changes or inputs 408 4,033 6,476 (2,704) 946
Benefit payments/Refund of contributions - - -
Net Change in Total OPEB Liability 2,655 5,773 8,073 (210) 4,109
Total OPEB liability, beginning
Total OPEB liability, ending
30,591 24,818
16,745 16,955 12,846
$ 33,246 $ 30,591 $ 24,818 $ 16,745 $ 16,955
Covered payroll $ 1,408,871 $ 1,352,780 $ 1,150,893 $ 1,055,433 $ 1,140,976
Total OPEB liability as a percentage of covered payroll 2.36% 2.26% 2.16% 1.59% 1.49%
Note 1 - GASB 75 requires that information on this schedule be presented on the measurement date basis, which is on a calendar year basis. This schedule
will also ultimately present the last ten years of information. The measurement year 2017 is the first year for which this information is available.
39
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF EMPLOYER OPEB CONTRIBUTIONS (LAST TEN FISCAL YEARS)
TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Contractually required contributions
2022 2021 2020 2019 2018
$ 3,964 $ 3,886 $ 4,552 $ 2,635 $ 2,673
Contributions in relation to the
contractually required contributions 3,964 3,886 4,552 2,635 2,673
Contribution deficiency (excess)
District's covered -employee payroll
Contributions as a percentage of covered
employee payroll
$
$ 1,436,437 $ 1,352,780 $ 1,146,956 $ 1,055,433 $ 1,140,976
0.28% 0.29% 0.40% 0.25% 0.23%
Note 1 - GASB 75 requires that information on this schedule be presented on the District's fiscal year basis. This schedule will also
ultimately present the last ten years of information. 2018 is the first year for which this information is available.
40
OTHER SUPPLEMENTARY INFORMATION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -1 SERVICES AND RATES
SEPTEMBER 30, 2022
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
Meter Size
5/8"
1"
1.5"
2"
3"
4"
6"
Water Volumetric Rates
Base Rate Rates per 1,000 Gallons
$18.54
$34.84
$61.79
$98.87
$185.37
$308.95
$617.91
$4.09 0 to 6,000
$4.76 6,001 to 17,000
$5.51 17,001 to 25,000
$6.40 25,001 to 50,000
$7.44 50,001 +
Sewer Base Fee
Residential*
Base Rate
$22.15
Sewer Volimetric Rates
Rates per 1,000
$3.57
$5.09
$7.18
$10.22
Gallons
0 to 4,000
4,001 to 8,000
8,001 to 12,000
12,000 +
Commercial** $22.15 $6.78 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 usuage for the months of December, January, and February.
**Commercial sewer usage is billed based on actual water usage per month
NOTE: Water rates noted above were effective October 1, 2021 and the Wastewater rates effective April 1, 2022.
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 $
133.27
183.12
242.67
306.67
370.67
445.07
*** The above sewer calculations are based on a Winter Average of 10,000 gallons per month.
41
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -1 SERVICES AND RATES
SEPTEMBER 30, 2022
b) Retail service providers: number of retail water and/or wastewater* connections within the District as
of the fiscal year end. Provide actual numbers and single family equivalents (ESFC).
Meter Size
Connections ESFC Active
Total Active Factor ESFC's
Unmetered - - 1 -
Less than 3/4" 2,497 2,481 1 2,481
1" 707 706 3 1,765
1 1/2" 28 27 5 135
2" 107 97 8 776
3" 42 42 15 630
4" 17 17 25 425
6" 5 5 50 250
8" 1 1 80 80
10" - - 115 -
Total Water 3,404 3,376 6,542
Total Wastewater 3,409 3,379 1 3,379
* 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
1,101,020
986,476
89.60%
4. Standby Fees:
Does the District assess standby fees? No
For the most recent fiscal year, FY2022:
Total Total Percentage
Levy Collected Collected
Debt Service $ 704,212 $ 703,218 99.85%
Operations and Maintenance $ 1,432,847 $ 1,430,823 99.85%
Have standby fees been levied in accordance with Water Code Section 49.231, thereby
constituting a lien on property? No
5. Location of District:
Counties in which District is located: Denton
Tarrant
Is the District located entirely in one county? No
is the District located within a city? Partially
Cities in which District is located: Town of Trophy Club
Town of Westlake
Is District located within a city's extra territorial jurisdiction (ETJ)? Unknown
ETJ's in which District is located: Unknown
Is the general membership of the Board appointed by an office outside No
the District?
42
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI 2
General Fund Expenditures and Other Financing Uses
Year End September 30, 2022
Current Year Prior Year
2022 2021
Administrative $ 1,424,573 $ 1,405,997
Water Operations 4,025,300 2,949,552
Wastewater Operations 1,530,667 1,418,868
Contribution to Trophy Club Fire Dept 918,658 839,816
Capital Outlay 2,000,049 1,034,637
Transfers Out and Debt Service 1,823,389 2,981,346
Total Expenditures $ 11,722,636 $ 10,630,215
Number of employees employed by the District:
Full time Equivalents (FTEs) 16 20
Part time 0 0
** The Town of Trophy Club handles the operations of the Fire Department based on an
Interlocal Agreement with Trophy Club Municipal Utility District No.1 effective 10/1/21.
The District reimburses the annual Town's Fire Budget in equal monthly payments.
43
Funds
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -3 TEMPORARY INVESTMENTS
September 30, 2022
Identification Interest Maturity Balance Accrued Interest
Number Rate Date End of Year Paid Term
Reserve Fund
Prosperity Bank 216267724 0.760 Demand $ 1,882,637 Paid monthly
(Money Market)
General Fund
Prosperity Bank 7318701 0.260 Demand $ 4,516,399 Paid monthly
General Fund
TexPool 613300002 2.85 Demand $ 7,444,400 Paid daily
Debt Service Fund
TexPool 613300003 2.85 Demand $ 51,961 Paid daily
Debt Service -Revenue
Bond
Texpool
Revenue Bond
Reserve
Texpool
Capital Projects
SWIFT Revenue Bond
Construction
Texpool
SWIFT Revenue Bond
Debt Service
Texpool
613300013
613300014
613300015
613300017
2.85 Demand $ 27,958 Paid daily
2.85 Demand $ 900,604 Paid daily
2.85 Demand $ Paid daily
2.85 Demand $ 6,555 Paid daily
W&WW 19 Revenue Bond
Construction
Texpool 613300018 2.85 Demand $ 1,497,693 Paid daily
W&WW 19 Revenue Bond
Reserve
Texpool 613300019 2.85 Demand $ Paid daily
W&WW 19 Revenue Bond
Debt Service
Texpool 613300020 2.85 Demand $ 1,429 Paid daily
SWIFT Revenue Bond
Escrow Account
Bank of Texas BOKF 82-1747-01-1 2.350 Demand $ 787,221 Paid daily
TCEQ Revenue Bond
Escrow Account
Bank of Texas BOKF 82-3288-01-4 2.350 Demand $
Total - All Funds $ 17,116,857
44
Paid daily
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -4 TAXES LEVIED AND RECEIVABLE
SEPTEMBER 30, 2022
General Fund Debt
Operations Fire Total Service Total
Taxes receivable beginning of year $ 1,452 $ 14,359 $ 15,811 $ 8,136 $ 23,947
2021 tax levy 132,363 1,235,391 1,367,755 672,221 2,039,976
Total to be accounted for 133,815 1,249,750 1,383,566 680,357 2,063,922
Less collections and adjustments:
Current year (132,167) (1,233,563) (1,365,730) (671,226) (2,036,956)
Prior years (360) (3,296) (3,656) ( 1,837) (5,493)
Total to be accounted for (132,527) (1,236,859) (1,369,386) (673,063) (2,042,449)
Taxes receivable, end of year $ 1,288 $ 12,891 $ 14,180 $ 7,294 $ 21,474
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 $ 246 $ 272 $ 518
2008 $ 35 $ 273 $ 308 $ 222 $ 530
2009 $ 66 $ 264 $ 330 $ 166 $ 496
2010 $ 128 $ 1,593 $ 1,721 $ 1,122 $ 2,843
2011 $ 132 $ 1,463 $ 1,595 $ 748 $ 2,343
2012 $ 140 $ 1,471 $ 1,611 $ 276 $ 1,887
2013 $ 144 $ 1,346 $ 1,490 $ 565 $ 2,055
2014 $ 247 $ 1,285 $ 1,532 $ 686 $ 2,218
2015 $ 71 $ 1,082 $ 1,153 $ 812 $ 1,965
2016 $ 67 $ 1,142 $ 1,209 $ 742 $ 1,951
2017 $ 63 $ 549 $ 612 $ 349 $ 961
2018 $ 138 $ 1,213 $ 1,351 $ 746 $ 2,097
2019 $ (210) $ (1,888) $ (2,098) $ (1,061) $ (3,159)
2020 $ 66 $ 601 $ 667 $ 333 $ 1,000
2021 $ 196 $ 1,828 $ 2,024 $ 995 $ 3,019
$ 1,330 $ 12,556 $ 13,886 $ 7,145 $ 21,031
Property valuations (in 000's)
FY FY FY FY FY
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
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%
45
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -4 TAXES LEVIED AND RECEIVABLE
SEPTEMBER 30, 2022
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 0.233086 0.229
City Town of Trophy Club 0.445 0.445
School District Northwest ISD/Carroll ISD 1.292 1.2686
1.970086 1.9426
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 0.10588 0.10588
Total Overlapping Tax District 2.075966 2.403079
46
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1
TSI -5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS
SEPTEMBER 30, 2022
Due During Fiscal
Years Ending
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
All Bonded
Principal Due
1 -Sep
$ 1,665,000
1,235,000
1,265,000
1,285,000
1,325,000
1,360,000
1,400,000
1,440,000
1,485,000
1,400, 000
1,440,000
1,500,000
1,130, 000
515,000
250,000
255,000
265,000
275,000
285,000
290,000
300,000
310,000
320,000
330,000
345,000
355,000
365,000
$ 22,390,000
Debt Series
Interest Due
Mar 1/ Sep 1
$ 601,322
563,128
538,296
511,556
482,948
452,287
419,307
383,809
344,703
304,049
263,749
221,124
175,675
142,612
129,538
122,038
114,069
105,788
96,850
87,588
78,163
68,413
58,338
47,538
36,400
24,756
12,775
Total
$ 2,266,322
1,798,128
1,803,296
1,796,556
1,807,948
1,812,287
1,819,307
1,823,809
1,829, 703
1,704,049
1,703,749
1,721,124
1,305,675
657,612
379,538
377,038
379,069
380,788
381,850
377,588
378,163
378,413
378,338
377,538
381,400
379,756
377,775
$ 6,386,811 $ 28,776,811
47
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1
TSI -5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (CONTINUED)
SEPTEMBER 30, 2022
Due During Fiscal
Years Ending
2023
Due During Fiscal
Years Ending
2023
General Obligation Bonds - Series 2012
(2,355,000)
Principal Due Interest Due
1 -Sep Mar 1/ Sep 1 Total
$ 250,000 $ 7,500 $ 257,500
$ 250,000 $ 7,500 $ 257,500
General Obligation Bonds - Series 2013
(1,905,000)
Principal Due Interest Due
1 -Sep Mar 1/ Sep 1 Total
$ 215,000 $ 7,525 $ 222,525
$ 215,000 $ 7,525 $ 222,525
48
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1
TSI -5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (CONTINUED)
SEPTEMBER 30, 2022
Due During Fiscal
Years Ending
General Obligation Bonds - Series 2014
(5,765,000)
Principal Due Interest Due
1 -Sep Mar 1/ Sep 1
Total
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
$ 4,005,000
$ 872,188 $ 4,877,188
Unlimited Tax Refunding Bonds, Series 2020
Refunded Bond: M1 Series 2010
(1,220,000)
Due During Fiscal Principal Due Interest Due
Years Ending 1 -Sep Mar 1/ Sep 1 Total
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
$ 1,090,000 $ 71,825 $ 1,161,825
49
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1
TSI -5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (CONTINUED)
SEPTEMBER 30, 2022
Due During Fiscal
Years Ending
Revenue Bonds - Series 2015
(9,230,000)
Principal Due Interest Due
1 -Sep Mar 1/ Sep 1
Total
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
6,700,000
$ 1,471,200 $ 8,171,200
Revenue Bonds - Series 2016
(4,635,000)
Due During Fiscal Principal Due Interest Due
Years Ending 1 -Sep Mar 1/ Sep 1 Total
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
$ 3,365,000 $ 485,048 $ 3,850,048
50
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1
TSI -5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (CONTINUED)
SEPTEMBER 30, 2022
Revenue Bonds - Series 2019
(7,080,000)
Due During Fiscal Principal Due Interest Due
Years Ending 1 -Sep Mar 1/ Sep 1 Total
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
$ 6,765,000 $ 3,471,525 $ 10,236,525
51
Interest rate
Date interest payable
Maturity date
Bonds outstanding at
beginning of year
Retirements of principal
Bonds outstanding at end of
fiscal year
Retirements of interest
Paying agent's name & city:
Bond Authority
Amount authorized by voters
Amount issued
Remaining to be issued
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -6 CHANGES IN LONG-TERM BONDED DEBT
SEPTEMBER 30, 2022
Series 2012 Series 2013 Series 2014 M1 GO Series 2020 Series 2015
GO Bonds GO Bonds GO Bonds
2.00-3.00% 2.00-3.50% 1.50-3.50%
3/1 & 9/1 3/1 & 9/1 3/1 & 9/1
9/1/2023 9/1/2023 9/1/2034
$ 490,000 $ 425,000 $
$ 240,000 $ 210,000 $
250,000 $ 215,000
Series 2016 Series 2019
GO Bonds Revenue Bonds Revenue Bonds Revenue Bonds
1.3%
3/1 &9/1
9/1/2031
2.0-3.25%
3/1 & 9/1
9/1/2035
0.53-2.12%
3/1 & 9/1
9/1/2036
3.00-3.50%
3/1 & 9/1
9/1/2049
Total
4,275,000 $ 1,205,000 $ 7,110,000 $ 3,585,000 $ 6,925,000 $ 24,015,000
270,000 $ 115,000 $ 410,000 $ 220,000 $ 160,000 $ 1,625,000
4,005,000 $ 1,090,000 $ 6,700,000 $ 3,365,000 $ 6,765,000 $ 22,390,000
$ 14,700 $ 13,825 $
124,013 $ 15,662 $
The Bank of New The Bank of New The Bank of TX
York Mellon York Mellon Corporate Trust
Newark, NJ Newark, NJ Austin, TX
General
Obligation
Bonds
$ 34,859,217
$ 34,855,000
4,217
The general obligation bonds were authorized on October 7, 1975
Debt Service Fund cash and cash equivalents balance as of September 30, 2022:
Average annual debt service payment (principal & interest) for remaining term of debt:
JP Morgan
Chase
New York, NY
$ 988,507
$ 2,288,833
52
192,438 $ 56,965 $ 218,938 $ 636,541
The Bank of TX
Corporate Trust
Austin, TX
The Bank of TX
Corporate Trust
Austin, TX
The Bank of TX
Corporate Trust
Austin, TX
REVENUE
Ad valorem property taxes
Water and wastewater charges
Inspection and tap fees
Interest earned
Debt proceeds
Transfers In
Proceeds from Sale of Assets
Capital Lease Financing
Miscellaneous and other
Total revenue
EXPENDITURES
Administrative
Water operations
Wastewater operations
Contribution to Trophy Club Fire Dept
Capital outlay
Transfers Out and Debt Service
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Total active retail water and/or
wastewater connections
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TS1-7 COMPARATIVE SCHEDULES OF REVENUES AND EXPENDITURES -FIVE YEARS
GENERAL FUND
SEPTEMBER 30, 2022
Amounts
2022
$ 1,434,197
10,809,305
8,099
66,251
21,001
377,827
$ 12,716,680
$ 1,424,573
4,025,300
1,530,667
918,658
2,000,049
1,823,389
$ 11,722,636
$ 994,044
3,379
2021
$ 1,378,844
9,222,445
12,500
18,386
2020
$ 1,371,466
9,109, 566
20,300
81,518
23,975 12,520
359,189 300,746
$ 11,015,339 $10,896,116
$ 1,405,997 $ 1,388,918
2,982,828 2,919,210
1,508,659 1,252,392
839,816 738,348
1,034,637 931,856
2,858,279 2,405,409
$ 10,630,215 $ 9,636,133
$ 385,124 $ 1,259,983
Percent of total revenue
2019 2018 2022 2021 2020 2019 2018
$ 1,231,580 $ 1,197,949 11.3% 12.5%
8,539,760 9,286,714 85.0% 83.7%
6,900 8,000 0.1% 0.1%
139,388 61,283 0.5% 0.2%
(7,080) 0.0% 0.0%
32,080 797,834 0.0% 0.0%
52,600 15,400 0.2% 0.2%
204,004 358,600 0.0% 0.0%
376,822 245,392 3.0% 3.3%
$10,576,054 $11,971,172 100.0% 100.0% 100.0% 100.0% 100.0%
12.6% 11.6% 10.0%
83.6% 80.7% 77.6%
0.2% 0.1% 0.1%
0.7% 1.3% 0.5%
0.0% -0.1% 0.0%
0.0% 0.3% 6.7%
0.1% 0.5% 0.1%
0.0% 1.9% 3.0%
2.8% 3.6% 2.0%
$ 1,304,577
3,001,947
1,048,445
692,347
2,036,172
1,619,062
$ 9,702,550
$ 1,275,394 11.2% 12.8% 12.7% 12.3% 10.7%
3,173,225 31.7% 27.1% 26.8% 28.4% 26.5%
1,026,693 12.0% 13.7% 11.5% 9.9% 8.6%
625,637 7.2% 7.6% 6.8% 6.5% 5.2%
665,773 15.7% 9.4% 8.6% 19.3% 5.6%
1,522,582 14.3% 25.9% 22.1% 15.3% 12.7%
$ 8,289,304 92.2% 96.5% 88.4% 91.7% 69.2%
$ 873,504 $ 3,681,868
3,374 3,371 3,330 3,284
53
7.8%
3.5%
11.6% 8.3% 30.8%
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -7 COMPARATIVE SCHEDULES OF REVENUES AND EXPENDITURES -FIVE YEARS (Continued)
DEBT SERVICE FUND
SEPTEMBER 30, 2022
Amounts Percentage
REVENUE 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018
Ad valorem property taxes $ 704,644 $ 688,651 $ 693,604 $ 677,477 $ 679,678 30.8% 30.5% 31.0% 31.8% 32.5%
Penalties and interest 2,010 2,010 0.0% 0.0% 0.0% 0.1% 0.1%
Transfers in from other funds 1,574,226 1,565,786 1,535,035 1,413,156 1,390,151 68.8% 69.4% 68.6% 66.3% 66.4%
Interest earned 7,980 286 6,776 37,255 21,903 0.3% 0.0% 0.3% 1.7% 1.0%
Miscellaneous and other - 1,220 - - 0.0% 0.0% 0.1% 0.0% 0.0%
Total revenue 2,286,850 2,254,723 2,236,635 2,129,898 2,093,742 100.0% 100.0% 100.0% 100.0% 100.0%
EXPENDITURES
Principal retirement 1,625,000 1,580,000 1,370,000 1,350,000 1,315,000 71.1% 70.1% 61.3% 63.4% 62.8%
Interest and fiscal charges 636,539 665,987 837,477 543,396 569,530 27.8% 29.5% 37.4% 25.5% 27.2%
Bond admin fees 2,600 3,350 3,292 2,950 2,950 0.1% 0.1% 0.1% 0.1% 0.1%
Total expenditures 2,264,139 2,249,337 2,210,769 1,896,346 1,887,480 99.0% 99.8% 98.8% 89.0% 90.1%
Excess (deficiency) of revenues
over (under) expenditures $ 22,711 $ 5,386 $ 25,865 $ 233,552 $ 206,262 1.0% 0.2% 1.2% 11.0% 9.9%
54
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -8 BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS
September 30, 2022
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 FY2022 FY2022 Year End
Kevin Carr
15 Edgemere Drive
Trophy Club, TX 76262 11/20-5/24 $ $ President
William Rose
219 Inverness Drive
Trophy Club, TX 76262 11/20-5/24 $ - $ - Director
Doug Harper
16 Fair Green Drive
Trophy Club, TX 76262 5/22-5/26 $ - $ Secretary/Treasurer
Ben Brewster
222 Fresh Meadow Drive
Trophy Club, TX 76262 5/22-5/26 $ - $ Vice -President
Tracey Hunter
19 Monterrey Drive
Trophy Club, TX 76262 5/22-5/26 $ $ Director
Steve Flynn
417 Ramsey Trail
Trophy Club, TX 76262 5/18-5/22 $ - $ Director
Kelly Castonguay
402 Parkview Drive
Trophy Club, TX 76262 5/18-5/22 $ $ - Director
Mark Chapman
197 Durango Dr
Trophy Club, TX 76262 5/18-5/22 $ - $ Director
55
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -8 BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS (Continued)
SEPTEMBER 30, 2022
Name and Address
Consultants/Legal:
Date of Contract Total Paid Out Type of
or Vendor Created FY 2022 Vendor
Denton Central Appraisal District
P.O. Box 2816
Denton, TX 76202 4/1/1981 $ 9,084 Appraiser
Tarrant Appraisal District
2500 Handley-Ederville Rd.
Fort Worth, TX 76262 10/1/2007 $ 5,498 Appraiser
CliftonLarsonAllen LLP
P.O. Box 679342
Dallas, TX 75267-9487 8/27/2020 $ 25,375
Auditors
Halff Associates, Inc.
P.O. Box 678316
Dallas, TX 75267-8316 1/1/2017 $ 184,303 Engineers
Garver
P.O. Box 736556
Dallas, TX 75373-6556 12/3/2021 $ 195,731 Engineers
McLean & Howard, L.L.P.
901 S. Mopac Expressway
Building 2, Suite 225
Austin, TX 78746 3/1/2017 $ 22,565 Legal/Bond Counsel
Whitaker Chalk Swindle & Schwartz PLLC
301 Commerce St, Suite 3500
Fort Worth, TX 76102-4186 4/30/2018 $ 33,325 Legal Counsel
New Gen Strategies & Solutions
1300 E. Lookout Dr. Suite 100
Richardson, TX 75082 7/1/2013 $ 9,175 Rate Consultant
56