HomeMy WebLinkAboutFY Ended September 30, 2023TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO.1
AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
SEPTEMBER 30, 2023
ANNUAL FILING
AFFIDAVIT
THE STATE OF TEXAS }
COUNTY OF DENTON }
I, 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 17th day of January 2024, its annual audit report for
the fiscal year or period ended September 30, 2023 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 filing
requirements of Texas Water Code Section 49.194.
Date: January 17 , 20_24_
By: �..-1—
(Signature of District Representative)
Kevin R. Carr, President, Board of Directors
(Typed Name & Title)
Sworn to and subscribed to before me this 1
"'
) LAURIE SLAGHT
Notary Public, State of Texas
Comm. Expires 01-19-2024
%10% Notary ID 12872053-4
My Commission Expires On:1',�%
Notary Public in and for the State of Texas
day of 1W- 2004- .
(signature of n ta1-y)
Se -60,24)—
, 20
TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO.1
AUDITED FINANCIAL STATEMENTS
TABLE OF CONTENTS
Independent Auditor's Report
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 Other Post -Employment Benefits (OPEB)
Liability and Related Ratios 39
Schedule of Other Post -Employment Benefits (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 50
TSI -7 Comparative Schedules of Revenues and Expenditures - Five Years 51
TSI -8 Board Members, Key Personnel, and Consultants 53
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, 2023, 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, 2023, 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 my 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 41-54 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,
Rod L. Abbott, CPA PLLC
Tom Bean, Texas
January 17, 2024
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, 2023
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, 2023.
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 $43,237,459. Of this amount, $14,909,747 is unrestricted net position
and may be used to meet the District's ongoing commitments.
• The District's net position increased by $4,163,010 during 2023. Significant contributors to this
result were water and wastewater charges exceeding their related departmental expenses by
$4,596,651.
• At the end of the fiscal year, the District's governmental type funds reported a combined fund
balance of $17,722,802. As of September 30, 2023, the unassigned fund balance of the General
Fund was $10,030,878. The unassigned fund balance is equal to 10.2 months of 2023 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, 2023
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 govermnent-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 $43,237,459. Of this
amount, $27,323,898 (63%) 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, $1,003,815 (3%) restricted for debt service and capital
projects, and the remaining $14,909,747 (34%) is unrestricted.
2023 governmental activities have increased the District's net position by $4,163,010, which amounts
to a 10.6% increase in net position for the year ended September 30, 2023.
5
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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 ending on September 30, 2023 and 2022.
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
6
Governmental Activities
FY23 FY22
$ 18,827,852 $ 18,749,584
46,164,516 44,399,904
64,992,368 63,149,488
321,158 258,908
20,861,156 22,637,495
1,053,284 1,399,980
21,914,440 24,037,475
161,626 296,471
27,323,898 23,922,288
1,003,815 748,222
14,909,747 14,403,939
$ 43,237,459 $ 39,074,449
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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 ending on September 30, 2023 and 2022.
Table 2
Condensed Statements of Activities
Govermnental Activities
FY23 FY22
Revenues:
Program Revenues:
Charges for services $ 11,973,510 $ 10,937,443
Operating grants and contributions
Capital grants and contributions
General Revenues:
Property taxes 2,047,252 2,136,367
Other unrestricted contributions 151,357 164,890
Investment income 573,996 95,640
Gain on sold assets 103,373 21,001
Other 17,432 92,899
14,866,920 13,448,240
Expenses:
Water 4,621,529 4,160,522
Wastewater 2,706,051 2,495,767
Administration 1,544,270 1,593,047
Fire protection 1,157,569 1,251,603
Non -departmental and Board 71,379 102,472
Interest on long-term debt 603,112 617,680
10,703,910 10,221,091
Excess (deficiency) of revenues
over expenditures before transfers 4,163,010 3,227,149
Transfers In (Out)
Increase in net position 4,163,010 3,227,149
Net position - October 1 39,074,449 35,847,300
Net position - September 30 $ 43,237,459 $ 39,074,449
7
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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 $17,722,802, of which 57%, or $10,030,878, is unassigned
and available to the District for future spending.
General Fund budgetary highlights
The District's Board of Directors approved a budget amendment during fiscal year 2023
to largely account for the increase of water consumption and increased capital outlay
expense due to prior year projects being completed by fiscal year end. (page 36)
Revenue: Revenues were $980,914 (7.1%) more than budgeted
• Water charges totaled $8,001,954 and were $859,699 (10.7%) more than
budgeted.
Expenditures: Expenditures were $351,984 (3.0%) less than budgeted
• Capital Outlay expenditures were $380,904 (10.7%) less than budgeted.
• Water Operations were $133,376 (3.2%) more than budgeted.
• Wastewater operations expenditures were $77,187 (5.3%) less than budgeted.
Capital Assets
The District's investment in capital assets for its governmental activities as of
September 30, 2023 amounted to $46,164,516, 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.
Net capital assets increased $1,764,612 or 4.0% during 2023 primarily due to over
$3.3 million of new improvements to the District's water and wastewater system.
Additional information about capital assets may be found in Note 5 in the notes to
financial statements.
8
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
Debt administration
Long -Term Debt - at the end of the current fiscal year, the District had $20,747,398 of
general obligation bonds, revenue bonds, and type A financing leases, which is a decrease
of 7.9% from the previous fiscal year due to $1,782,648 of 2023 principal payments.
All 2023 debt service requirements were met and the District did not issue any new debt
during fiscal year 2023.
Economic factors and next year's budgets and rates:
General Fund 2023 - 2024 budgetary highlights:
Revenue: The District's 2024 General Fund budgeted revenues reflect a projected
increase of $2,690,579, or 22.93%, when compared to the District's 2023 adopted budget.
• Water revenue is budgeted to increase from $6,710,979 for fiscal year 2023 to $6,939,998
for fiscal year 2024 for a total projected increase of $229,019, or 3.41%.
• Sewer revenue is budgeted to decrease from $3,839,686 for fiscal year 2023 to $3,679,786
for fiscal year 2024 for a total projected decrease of ($159,900), or (4.16%).
• The District's M&O tax rate increased from fiscal year 2023 to fiscal year 2024. The fiscal
year 2024 segregated M&O property tax revenue is budgeted to increase by $67,366 for
Fire and decrease by ($2,222) for the MUD when compared to 2023.
Expenses: The District's 2024 General Fund budgeted expenses reflect a projected
increase of $2,690,579, or 22.93%, when compared to the District's 2023 adopted budget.
• Wholesale water purchase from City of Fort Worth increased by $15,366, or 0.58%, due
to the consumption demands.
• The capital outlay collectively increased by $2,603,000, or 98.34% due to the District's
proactive asset replacement schedule and the completion of prior year projects.
• The maintenance and repairs collectively decreased by ($53,900), or (7.86%) due to
reduction in required repairs with the proactive replacement schedule.
• The electricity collectively decreased by ($85,132), or (16.09%) due the District's current
provider new contract rates effective December 2022.
• The District's personnel cost collectively increased by $72,796, or 3.58% due to the
COLA increase and new employee benefit rates.
Overall: The District's 2024 General Fund budget is anticipated to have revenues of
$14,372,315 and expenses of $16,485,079 for a total projected net spend down of fund
balance of ($2,112,764).
Debt Service Fund 2023 - 2024 budgetary highlights:
• The District's Debt Service expenses are budgeted to decrease from $2,269,673 in fiscal
year 2023 to $1,800,479 budgeted for fiscal year 2024 for a total decrease of $469,194, or
20.67%.
• Property tax revenues collected for Debt Service are budgeted to decrease from $696,446
in fiscal year 2023 to $219,481 budgeted in fiscal year 2024 for a total decrease of
($476,965), or (68.49%).
9
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
Sewer and Water Rates highlights:
Effective October 1 s`, 2022, the District's Board of Directors adopted an increase in both the
base and volumetric water rates, and effective April 1, 2023, adopted an increase in sewer
volumetric rates for commercial customers. The District did not adopt a water or sewer rate
increase for FY 2024.
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, 2023
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
Governmental
Activities
$ 6,086,438
7,652,770
146,955
3,081,580
3,880
1,757,383
12,341
86,505
6,084,233
40,080,283
64,992,368
7,531
313,627
321,158
Liabilities
Accounts payable 833,096
Accrued liabilities 26,155
Interest payable 47,078
Customer meter deposits 146,955
Non-current liabilities:
Due within one year 1,257,398
Due in more than one year 19,579,298
OPEB liability 24,460
Total liabilities 21,914,440
Deferred inflows of resources
Deferred inflows of resources - OPEB
Deferred inflows of resources - Pension
Total deferred inflows of resources
16,114
145,512
161,626
Net Position
Net investment in capital assets 27,323,898
Restricted for:
Capital projects 860,652
Debt service 143,163
Unrestricted 14,909,747
Total net position $ 43,237,459
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, 2023
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 $ 4,621,529 $ 8,079,155 $ $ $ 3,457,626
Wastewater operations 2,706,051 3,845,076 1,139,025
Administration 1,544,270 49,279 (1,494,991)
Fire protection 1,157,569 (1,157,569)
Non -departmental 68,637 (68,637)
Board of directors 2,742 (2,742)
Interest on long-term debt 603,112 - - (603,112)
Total governmental activities $ 10,703,911 $ 11,973,510 $ $ 1,269,599
General revenues:
Property taxes 2,047,252
Contributions not restricted to specific programs 151,357
Investment earnings 573,996
Miscellaneous 17,432
Gain on sale of assets 103,373
Total general revenues 2,893,411
Change in net position 4,163,010
Net position - beginning 39,074,449
Net position - ending $ 43,237,459
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, 2023
Debt Capital Total
General Service Projects Governmental
Fund Fund Fund Funds
Assets
Cash $ 6,086,438 $ $ $ 6,086,438
Investments 7,652,770 7,652,770
Restricted assets:
Restricted cash 146,955 146,955
Restricted investments - 143,162 2,938,418 3,081,580
Prepaid assets 3,880 3,880
Receivables:
Accounts receivable - net 1,757,383 1,757,383
Property taxes 8,957 3,384 12,341
Due from other funds 81,691 - 81,691
Total assets $ 15,738,074 $ 146,546 $ 2,938,418 $ 18,823,038
Liabilities
Current liabilities:
Accounts payable $ 833,096 $
Accrued payroll liabilities 26,155
Customer deposits 146,955
Due to other funds -
Total current liabilities 1,006,206
Deferred Inflows of Resources
Unavailable revenue - Property taxes
Total deferred inflows of resources
81,691
$ 833,096
26,155
146,955
81,691
81,691 1,087,897
8,956 3,383 12,339
8,956 3,383 12,339
Fund Balances
Non -spendable:
Prepaid assets 3,880 3,880
Restricted for:
Debt service 143,163 143,163
Capital projects 2,856,727 2,856,727
Assigned for:
Capital projects 4,688,154 4,688,154
Unassigned 10,030,878 - 10,030,878
Total fund balances 14,722,912 143,163 2,856,727 17,722,802
Total liabilities, deferred inflows of
resources, and fund balances $ 15,738,074 $ 146,546 $ 2,938,418 $ 18,823,038
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, 2023
Fund balances of governmental funds $ 17,722,802
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. 46,164,516
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.
321,158
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. (161,626)
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds. (20,861,156)
Accrued interest payable for governmental -type long-term debt is recognized
in the governmental activities in the statement of net position. (47,078)
The District's net pension asset balance does not provide current financial
resources and, therefore, is not reported in the governmental funds. 86,505
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. 12,338
Net position of governmental activities $ 43,237,459
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, 2023
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
Proj ects
Fund
$ 8,001,954 $ $
3,845,076 -
1,355,148 701,238
151,357 -
77,201
45,179
4,100
17,432 -
397,122 49,191 127,683
13,894,570
4,157,215
1,460,607
1,474,970
978,435
68,637
2,742
3,553,442
750,428 127,683
117,645 1,665,000
3,305 603,395
216,188
11,816,999 2,268,395 216,188
2,077,571 (1,517,967) (88,505)
110,979
(1,573,226)
1,573,226
Total
Governmental
Funds
$ 8,001,954
3,845,076
2,056,386
151,357
77,201
45,179
4,100
17,432
573,996
14,772,681
4,157,215
1,460,607
1,474,970
978,435
68,637
2,742
3,769,630
1,782,645
606,700
14,301,582
471,099
110,979
1,573,226
(1,573,226)
(1,462,247) 1,573,226 110,979
615,324 55,259 (88,505)
14,107,588 87,904 2,945,232
582,078
17,140, 724
$ 14,722,912 $ 143,163 $ 2,856,727 $ 17,722,802
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, 2023
Amounts reported for governmental activities in the statement of activities are different
because:
Net change in fund balances - total governmental funds $ 582,078
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.
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.
1,772,218
3,588
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. 1,782,645
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 $9,134 decrease in
deferred revenue, a $15,092 increase in accrued compensated absences, 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
(31,832)
54,313
$ 4,163,010
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS.
FOR THE YEAR ENDED SEPTEMBER 30, 2023
NOTE I. 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
organizationto 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, 2023
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
An organization 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 on all 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 supportedby
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 2023, the major funds are
the General Fund, Debt Service Fund, and the Capital Projects 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 andother 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 fiords 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 the District.
18
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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 current 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.
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, 2023
NOTE 1. 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, 2023
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.
L 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 properly reported within one of the following fund
balance categories:
Nonspendabie - 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 restrictedor
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 funds 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, 2023
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 2023. 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 bankin 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, 2023, the carrying amount of the District's cash deposits was $6,232,793 and the bank
balance was $7,309,657. Of the District's cash deposits at September 30, 2023, $250,000 was insured
by FDIC and $7,059,657 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, 2023 consist of the following:
Deposits with financial institutions $ 6,232,793
Unrestricted TexPool investments 7,652,770
Restricted TexPool investments 2,264,563
Restricted escrow investments 817,017
Petty cash 600
Total Cash and Investments $ 16,967,744
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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, 2023, the District had the following investments:
Weighted Avg.
Investment Type Carrying Amount Maturity
TexPool Pooled Investments $ 9,917,333 26 days
BOK Financial - U.S. Securities $ 817,017 12 days
As of September 30, 2023, 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 $ 9,917,333 AAAm AAAm
BOK Financial - U.S. Securities $ 817,017 AAAm AAAm
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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 TexPool 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, 2023
NOTE 3. ACCOUNTS RECEIVABLE
Receivables as of September 30, 2023 are as follows:
Accounts Receivable:
Water sales
Wastewater sales
Unbilled receivables
Refuse (as an agent for the Town of Trophy Club)
Storm 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
$ 1,087,947
323,334
204,627
91,480
37,172
7,692
11,963
12,341
5,217
1,781,774
(12,051)
$ 1,769,723
Transfers between funds during the year -ended September 30, 2023 are as follows:
Transfers From
General Fund
Transfers To
Debt Service Fund
Total:
Amount Purpose
$ 1,573,226 Debt service assistance
$ 1,573,226
Interfund due to/due from balances as of September 30, 2023 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, 2023
NOTE 5. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2023, was as follows:
Governmental Activities:
Capital assets - Non -Depreciable
Land
Construction in progress
Water rights
Total non -depreciable assets:
Be inning
Balances
Retirements/
Additions Transfers
Ending
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 $
8,649,949
864,678
- $ - $ 648,178
3,668,405 (7,746,977) 4,571,377
864,678
10,162,805
3,535,137
600,776
3,044,563
2,643,563
2,787,645
14,056,578
22,497,150
4,541,890
53,707,302
917,369
336,310
1,589,866
2,342,353
1,926,797
4,991,590
5,444,050
1,921,868
19,470,203
34,237,099
3,668,405
101,225
(7,746,977) 6,084,233
101,225
93,653
478,753
32,593
391,394
5,488,506
268,605
825,059
7,578,563
3,535,137
694,429
3,523,316
2,676,156
3,280,264
19,545,084
22,765,755
5,366,949
61,387,090
81,102
24,331
202,713
70,555
236,046
351,973
943.294
87,398
1,997,412
(1,896,187)
998,471
360,641
1,792,579
2,412,908
(160,808) 2,002,035
5,343,563
6,387,344
2,009,266
(160,808) 21,306,807
7,739,371 40,080,283
$ 44,399,904 $ 1,772,218 $
(7,606) $ 46,164,516
26
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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
$ 72,312
482,418
1,176,150
179,134
87,398
$ 1,997,412
At September 30, 2023, the District's long-term debt issuances consisted of the following:
General Obligation Bonds
Series 2014 Tax Bonds
Series 2020 Refunding Bonds
Revenue Bonds
Series 2015 Bonds
Series 2016 Bonds
Series 2019 Bonds
Type A Financing Leases
Camera Van Lease
Total long-term debt:
Interest Maturity
Rate (%) Date Outstanding
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
3.95% 2/1/2024
27
$ 3,725,000
975,000
6,280,000
3,145,000
6,600,000
22,398
$ 20,747,398
Due Within
One Year
$ 290,000
120,000
435,000
220,000
170,000
22,398
$ 1,257,398
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
NOTE 6. LONG-TERM DEBT - CONTINUED
The following is a summary of long-term Iiabi
30, 2023:
Governmental activities:
General Obligation Bonds
Revenue Bonds
Type A Financing Leases
Compensated Absences
ies activity for the District for the year ended September
Beginning
Balance
Additions Reductions
Ending Balance
Due Within
One Year
$ 5,560,000 $
16,830,000
140,046
74,205 15,092
$ (860,000) $
(805,000)
(117,648)
4,700,000 $ 410,000
16,025,000 825,000
22,398 22,398
89,297
Total Governmental activities long-term liabilities: $ 22,604,251 $
The annual debt service requirements for
Fiscal Year Ending
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2043
201111-2048
2049
Totals:
15,092 $ (1,782,648) $ 20,836,695 $ 1,257,398
e District's bonds are as folio s:
General Obligation and Revenue Bonds
Principal Interest Totals
$ 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
1,360,000 452,287 1,812,287
7,165,000 1,715,615 8,880,615
3,650,000 790,985 4,440,985
1,415,000 482,456 1,897,456
1,660,000 235,444 1,895,444
365,000 12,775 377,775
$ 20,725,000 $ 5,785,487 $ 26,510,487
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
NOTE 6. LONG-TERM DEBT- CONTINUED
As of September 30, 2023, the District has one outstanding Type A financing lease. The leased asset is classified.
as a vehicle. The capitalized cost is $205,629 and amortized net book value is $45,928 at September 30, 2023.
$34,446 of amortization expense has been included in depreciation expense for the year ended September 30,
2023.
The following is a schedule of future debt service requirements for this lease:
Fiscal Year Ending September 30 Principal Interest Totals
2024 $ 22,398 $ 442 $ 22,840
Total Financing Lease Debt Service: $ 22,398 $ 442 $ 22,840
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 (CAF.R) 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, 2023
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 sum of the employee's accumulated contributions and
the employer -financed monetary credits to a monthly annuity using annuity purchase rates prescribed by the
TCDRS Act.
Contributions
The employer has elected the annually determined contribution rate (ADCR) plan provision of the TCDRS
Act. The plan is funded by monthly contributions from both employee members and the employer based on
the covered payroll of employee members. Under the TCDRS Act, the contribution rate of the employer is
actuarially determined annually. The employer contributed using the actuarially determined rates of 10.92%
and 11.80% for calendar years 2022 and 2023, respectively. Total employer contributions for the year ended
September 30, 2023 was $158,013.
The contribution rate payable by the employee members for calendar years 2022 and 2023 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, 2022 actuarial valuation was determined using the following
actuarial assumptions:
Valuation Date: December 31, 2022
Actuarial Cost Method: Entry Age (level percentage of pay)
Asset Valuation Method:
Smoothing Period 5 Years
Recognition Method Level percentage of payroll, closed
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, 2023
NOTE 8. 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, 2022 are summarized below:
Asset Class
U.S. Equities
Global Equities
Int'1 Equities - Developed Markets
Intl 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
4.95%
4.95%
4.95%
4.95%
2.40%
3.39%
6.95%
7.60%
4.15%
5.30%
5.70%
7.95%
2.90%
0.20%
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) $
297,870 $
31
(86,505) $ (409,514)
Current
1% Decrease
Discount Rate
1% Increase
6.60%
7.60%
8.60%
Net pension liability (asset) $
297,870 $
31
(86,505) $ (409,514)
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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, 2023, the District reported ($86,505) for the net pension (asset) and pension expense
of $100,074 related to the December 31, 2022 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 12/31/2021:
Changes for the year:
Service cost
Interest
Effect of plan changes
$ 2,507,319 $
233,536
205,110
2,745,392 $
Effect of economic/demographic gains or losses (194,016)
Effect of assumptions changes or inputs
Refund of contributions (53,830) (53,830)
Benefit payments (31,818) (31,818)
Administrative expenses (1,613) 1,613
Member contributions 95,508 (95,508)
Net investment income (174,486) 174,486
Employer contributions 148,993 (148,993)
Other changes 24,660 (24,660)
Balances at 12/31/2022: $ 2,666,301 $ 2,752,806 $ (86,505)
(238,073)
233,536
205,110
(194,016)
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 Deferred Inflows Deferred Outflows
of Resources of Resources
Difference between expected and actual experience $ 145,512 $ 32,269
Changes of assumptions - 67,842
Net difference between projected and actual earnings - 93,072
Contributions subsequent to the measurement date N/A 120,'14'1
Totals: $ 145,512 $ 313,627
$120,444 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 2023 measurement
year.
32
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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:
2024 $ (23,477)
2025 (5,646)
2026 (1,191)
2027 77,985
Thereafter
$ 47,671
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 OPER 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 OPER 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: 3
Inactive employees entitled, but not yet receiving benefits: 5
Active employees: 15
Total: 23
Total OPEB Liability
The District's total OPEB liability was determined by an actuarial valuation dated December 31, 2022. 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, 2023
NOTE 9. OTHER POST -EMPLOYMENT BENEFITS - CONTINUED
Below is a schedule of significant assumptions used to estimate the District's ARC:
Valuation Date: December 31, 2022
Amortization Method: Straight -Line Over Expected Working Life
Discount Rate: 3.72%
Disability: Custom rates based on TCDRS experience
Mortality:
Depositing Members
RetireesBeneficiaries
Disabled Retirees
Discount Rate
135% of PUB -2010 General Employees Amount -Weighted Mortality
Table for males and 120% of the General Employees Amount -Weighted
Mortality Table for females, both projected with 100% of the MP -2021
Ultimate scale after 2010.
135% of PUB -2010 General Healthy Retirees Amount -Weighted
Mortality Table for males and 120% of the General Healthy Retirees
Amount -Weighted Mortality Table for females, both projected with
100% of the MP -2021 Ultimate scale after 2010.
160% of PUB -2010 General Disabled Retirees Amount -Weighted
Mortality Table for males and 120% of the General Disabled Retirees
Amount -Weighted Mortality Table for females, both projected with
100% of the MP -2021 Ultimate scale after 2010.
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, 2022 (measurement date under GASB 75). At this date, the discount rate was 3.72%.
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 (2.72%) or 1% point higher (4.72%) than the current rate, for measurement period ended December 31,
2022:
Total OPEB liability $
29,831 $
34
24,460 $
20,269
Current
1% Decrease
Discount Rate
1% Increase
2.72%
3.72%
4.72%
Total OPEB liability $
29,831 $
34
24,460 $
20,269
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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, 2023, the District recognized expense related to OPEB of $2,964.
As of September 30, 2023, 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 $ 7,219 $ -
Changes of assumptions 8,895 5,489
Net difference between projected and actual earnings -
Contributions subsequent to the measurement date N/A 2,042
Totals: $ 16,114 $ 7,531
The $2,042 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 OPER Liability in the subsequent
fiscal period.
The other amounts reported as deferred inflows/outflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Fiscal Year Ending:
2024
2025
2026
2027
Thereafter
NOTE 10. SUBSEQUENT EVENTS
(2,078)
(2,170)
(1,686)
(2,407)
(2,284)
$ (10,625)
The District has evaluated all events and transactions after September 30, 2023 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, 2023
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 (out)
Total other financing sources (uses)
Net changes in fund balances
Fund balances - beginning
Fund balances - ending
Original Budget
$ 6,710,979
3,899,686
1,346,135
145,029
78,000
14,146
8,058
7,000
20,000
12,229,033
4,063,174
1,534,411
1,508,250
978,893
116,740
11,750
2,647,000
Final Budget
$ 7,142,255
3,770,000
1,346,135
145,029
78,000
37,179
8,058
7,000
380,000
12,913,656
4,023,839
1,537,794
1,495,467
978,893
74,940
2,785
3,934,346
117,648 117,648
3,271 3,271
10,981,137 12,168,983
1,247,896 744,673
25,000
(1,845,796)
(1,820,796)
(572,900)
14,107,588
$ 13,534,688
50,000
(1,845,796)
(1,795,796)
(1,051,123)
14,107,588
$ 13,056,465
Actual
Amounts
$ 8,001,954
3,845,076
1,355,148
151,357
77,201
45,179
4,100
17,432
397,122
13,894,570
4,157,215
1,460,607
1,474,970
978,435
68,637
2,742
3,553,442
117,645
3,305
11,816,999
2,077,571
110,979
(1,573,226)
Variance with
Final Budget -
Positive
(Negative)
$ 859,699
75,076
9,013
6,328
(799)
8,000
(3,958)
10,432
17,122
980,914
(133,376)
77,187
20,497
458
6,303
43
380,904
3
(34)
351,984
1,332,898
60,979
272,570
(1,462,247) 333,549
615,324 $ 1,666,447
14,107,588
$ 14,722,912
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, 2023
December December December December December December December December December
31, 2022 31, 2021 31, 2020 31, 2019 31, 2018 31, 2017 31, 2016 31, 2015 31, 2014
Total Pension Liability
Service cost $ 233,536 $ 227,965 $ 183,103 $ 164,365 $ 153,752 $ 176,975 $ 200,990 $ 150,689 $ 170,600
Interest on total pension liability 205,110 175,365 145,931 121,767 100,515 83,553 57,230 41,351 27,449
Effect of plan changes - - - - - - (22,086) -
Difference between expected and actual experience (194,016) 27,195 21,485 8,770 13,723 (25,170) (9,790) (11,320) (7,057)
Effect of assumptions changes or inputs 7,163 127,091 - 5,971 7,686
Benefit payments/Refund of contributions (85,649) (19,329) (14,049) (16,533) (15,970) (1,695) (2,091) (1,902) (3,156)
Net Change in Total Pension Liability 158,981 418,359 463,561 278,369 252,020 239,634 246,339 164,418 187,836
Total pension liability, beginning
2,507,320 2,088,961 1,625,400 1,347,031 1,095,011 855,377 609,038 444,620 256,784
Total pension liability, ending $ 2,666,301 $ 2,507,320 $ 2,088,961 $ 1,625,400 $ 1,347,031 $ 1,095,011 $ 855,377 $ 609,038 $ 444,620
Fiduciary Net Position
Employer contributions 148,993 127,080 122,021 103,641 94,803 102,802 95,185 97,043 93,694
Member contributions 95,508 98,621 94,695 80,287 73,880 79,868 78,388 78,171 74,784
Investment income (net of expenses) (174,486) 475,821 173,686 212,168 (19,840) 126,587 46,440 (15,011) 18,561
Benefit payments/Refund of contributions (85,649) (19,329) (14,049) (16,533) (15,970) (1,695) (2,091) (1,902) (3,156)
Administrative expenses (1,613) (1,485) (1,506) (1,278) (1,039) (769) (505) (394) (285)
Other 24,660 6,414 6,162 5,966 4,667 2,418 19,889 (47) (21)
Net Change in Fiduciary Net Position 7,413 687,122 381,009 384,251 136,501 309,211 237,306 157,860 183,577
Fiduciary Net Position, beginning 2,745,393 2,058,271 1,677,262 1,293,011 1,156,510 847,300 609,994 452,134 268,557
Fiduciary Net Position, ending 2,752,806 2,745,393 2,058,271 1,677,262 1,293,011 1,156,511 847,300 609,994 452,134
Net pension liability / (asset), ending $ (86,505) $ (238,073) $ 30,690 $ (51,862) $ 54,020 $ (61,500) $ 8,077 $ (956) $ (7,514)
Fiduciary net position as a percentage of total pension
liability 103.24% 109.50% 98.53% 103.19% 95.99% 105.62% 99.06% 100.16% 101.69%
Covered -employee payroll $ 1,364,405 $ 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
-6.34% -16.90% 2.27% -4.51% 5.12% -5.39% 0.72% -0.09% -0.70%
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
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, 2023
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Contractually required contributions $ 158,013 $ 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 158,013 148,867 122,021 103,641 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 $ 1,364,747 $ 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 11.6% 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.
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, 2023
December December December December December December
31, 2022 31, 2021 31, 2020 31, 2019 31, 2018 31, 2017
Total OPEB Liability
Service cost $ 4,273 $ 4,121 $ 3,314 $ 2,241 $ 2,503 $ 2,889
Interest on total pension liability 771 736 771 778 669 595
Effect of plan changes - - - - - -
Difference between expected and actual experience (3,949) (2,610) (2,345) (1,422) (678) (321)
Effect of assumptions changes or inputs (9,745) 408 4,033 6,476 (2,704) 946
Benefit payments/Refund of contributions (136) -
Net Change in Total OPEB Liability (8,786) 2,655 5,773 8,073 (210) 4,109
Total OPEB liability, beginning 33,246
Total OPEB liability, ending
30,591 24,818 16,745 16,955 12,846
$ 24,460 $ 33,246 $ 30,591 $ 24,818 $ 16,745 $ 16,955
Covered payroll $ 1,364,405 $ 1,408,871 $ 1,352,780 $ 1,150,893 $ 1,055,433 $ 1,140,976
Total OPEB liability as a percentage of covered payroll
1.79% 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, 2023
Contractually required contributions
Contributions in relation to the contractually required
contributions
Contribution deficiency (excess)
2023 2022 2021 2020 2019 2018
$ 3,005 $ 3,964 $ 3,886 $ 4,552 $ 2,635 $ 2,673
3,005 3,964
3,886 4,552
2,635 2,673
$ - $ $ - $ $ $
District's covered -employee payroll $ 1,364,747 $ 1,436,437 $ 1,352,780 $ 1,146,956 $ 1,055,433 $ 1,140,976
Contributions as a percentage of covered employee payroll 0.22% 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, 2023
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"
Base Rate
$20.26
$38.08
$67.54
$108.06
$204.80
$337.68
$675.38
Water Volumetric Rates
Rates per 1,000
$4.60
$5.35
$6.19
$7.19
$8.36
Gallons
0 to 6,000
6,001 to 17,000
17,001 to 25,000
25,001 to 50,000
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 $8.57 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, 2022 and the Wastewater rates effective April 1, 2023.
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 $
140.41
196.43
263.33
335.23
407.13
490.73
*** 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, 2023
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 2,503 1 2,503
1" 707 702 3 1,755
1 1/2" 28 28 5 140
2" 105 105 8 840
3" 42 42 15 630
4" 17 17 25 425
6" 5 5 50 250
8" 1 1 80 80
10" - 115
Total Water 3,412 3,403 6,623
Total Wastewater 3,417 3,407 1 3,407
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 1,443 connections
3. Total water consumption (in thousands) during the fiscal year:
Gallons pumped into the system
Gallons billed to customers
Water accountability ratio
1,155,952
1,049,905
90.83%
4. Standby Fees:
Does the District assess standby fees? No
For the most recent fiscal year, FY2023:
Total Total Percentage
Levy Collected Collected
Debt Service $ 696,446 $ 690,063 99.00%
Operations and Maintenance $ 1,345,535 $ 1,332,824 99.00%
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, 2023
Current Year Prior Year
2023 2022
Administrative $ 1,546,349 $ 1,424,573
Water Operations 4,157,215 4,025,300
Wastewater Operations 1,460,607 1,530,667
Contribution to Trophy Club Fire Dept 978,435 918,658
Capital Outlay 3,553,442 2,000,049
Transfers Out and Debt Service 1,694,176 1,823,389
Total Expenditures $ 13,390,224 $ 11,722,636
Number of employees employed by the District:
Full time Equivalents (FTEs) 14 15
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.
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, 2023
Identification Interest Maturity Balance Accrued Interest
Number Rate Date End of Year Paid Term
Reserve Fund
Prosperity Bank XXXXX7724 3.20% Demand $ 1,936,872 Paid monthly
(Money Market)
General Fund
Prosperity Bank XXX8701 0.35% Demand $ 4,295,920 Paid monthly
General Fund, Fire Fund, & GASB Reserves
TexPool XXXXX0002 5.32% Demand $ 7,652,770 Paid daily
Debt Service Fund
TexPool XXXXX0003 5.32% Demand $ 85,835 Paid daily
Debt Service -Revenue
Bond
Texpool XXXXX0013 5.32% Demand $ 39,137 Paid daily
Revenue Bond
Reserve
Texpool XXXXX0014 5.32% Demand $ 942,343 Paid daily
SWIFT Revenue Bond
Debt Service
Texpool XXXXX0017 5.32% Demand $ 11,714 Paid daily
W&WW 19 Revenue Bond
Construction
Texpool XXXXX0018 5.32% Demand $ 1,179,059 Paid daily
W&WW 19 Revenue Bond
Debt Service
Texpool XXXXX0020 5.32% Demand $ 6,476 Paid daily
SWIFT Revenue Bond
Escrow Account
Bank of Texas BOKF 82-1747-01-1 5.32% Demand $ 817,017 Paid daily
TCEQ Revenue Bond
Escrow Account
Bank of Texas BOKF
Total - All Funds
82-3288-01-4 4.76% Demand $ Paid daily
44
$ 16,967,143
Taxes receivable beginning of year
2022 tax levy
Total to be accounted for
Less collections and adjustments:
Current year
Prior years
Total to be accounted for
Taxes receivable, end of year
Taxes receivable by year
1999 and prior
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Property valuations (in 000's)
Land
Improvements
Personal property
Exemptions
Tax rate per $100 valuation
Operations
Fire department
Debt service
Tax rate per $100 valuation
Tax levy:
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -4 TAXES LEVIED AND RECEIVABLE
SEPTEMBER 30, 2023
General Fund
Operations
$ 1,288
84,337
85,626
Fire
Debt
Total Service
$ 12,891 $
1,207,118
14,180 $
1,291,455
Total
7,294 $ 21,474
668,475 1,959,930
1,220,009
(84,163) (1,204,621)
626 (8,521)
(83,537) (1,213,141)
1,305,635
(1,288,784)
(7,895)
$ 2,089 $ 6,868 $
(1,296,678)
675,769
(667,092)
( 5,292)
8,956 $
1,981,403
(1,955,876)
(13,187)
(672,384) (1,969,063)
3,384 $ 12,341
$ - $ - $ $ - $
$ - $ $ $ - $
$ $ $ $ - $
$ - $ $ $ $ -
$ $ $ $ - $ -
$ $ - $ $ - $
$ $ $ $ - $
$ - $ $ $ - $ -
$ - $ $ $ $
$ - $ $ - $ - $
$ - $ $ - $ - $ -
$ 33 $ 410 $ 443 $ 289 $ 732
$ 37 $ 414 $ 451 $ 212 $ 663
$ 42 $ 445 $ 487 $ 83 $ 570
$ 54 $ 501 $ 555 $ 210 $ 765
$ 91 $ 471 $ 562 $ 251 $ 813
$ 18 $ 274 $ 292 $ 206 $ 498
$ 17 $ 281 $ 298 $ 183 $ 481
$ 63 $ 546 $ 609 $ 347 $ 956
$ 104 $ 914 $ 1,018 $ 562 $ 1,580
$ (237) $ (2,132) $ (2,369) $ (1,198) $ (3,567)
$ 134 $ 1,228 $ 1,362 $ 680 $ 2,042
$ 150 $ 1,399 $ 1,549 $ 761 $ 2,310
$ 174 $ 2,497 $ 2,671 $ 1,383 $ 4,054
$ 680 $ 7,248 $ 7,928 $ 3,969 $ 11,897
FY FY FY FY FY
21/22 20/21 19/20 18/19 17/18
$ 963,053 $ 824,647 $ 823,775 $ 800,425 $ 667,906
1,268,107 1,239,177 1,159,708 1,042,035 981,366
116,148 108,942 101,998 109,764 103,985
(260,389) (162,059) (152,776) (140,704) (81,906)
$ 2,086,919 $ 2,010,707 $ 1,932,705 $ 1,811,520 $ 1,671,351
0.00687 0.00709 0.00748 0.00765 0.00788
0.06412 0.06476 0.06738 0.06719 0.06870
0.03489 0.03589 0.03787 0.04134 0.04363
0.10588 0.10774 0.11273 0.11618 0.12021
$ 2,039,976 $ 2,056,855 $ 2,052,305 $ 1,919,984 $ 1,870,008
Percent of taxes collected to taxes levied 99.85% 99.71% 99.76% 99.48% 99.75%
45
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -4 TAXES LEVIED AND RECEIVABLE
SEPTEMBER 30, 2023
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 0.217543 0.224
City Town of Trophy Club 0.434799 0.434799
School District Northwest ISD/Carroll ISD 1.2746 1.2188
1.926942 1.877599
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 0.09134 0.09134
Total Overlapping Tax District 2.018282 2.323538
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1
TSI -5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS
SEPTEMBER 30, 2023
Due During Fiscal
Years Ending
All Bonded Debt Series
Principal Due
1 -Sep
Interest Due
Mar 1/ Sep 1
Total
2024 $ 1,235,000 $ 563,128 $ 1,798,128
2025 1,265,000 538,296 1,803,296
2026 1,285,000 511,556 1,796,556
2027 1,325,000 482,948 1,807,948
2028 1,360,000 452,287 1,812,287
2029 1,400,000 419,307 1,819,307
2030 1,440,000 383,809 1,823,809
2031 1,485,000 344,703 1,829,703
2032 1,400,000 304,049 1,704,049
2033 1,440,000 263,749 1,703,749
2034 1,500,000 221,124 1,721,124
2035 1,130,000 175,675 1,305,675
2036 515,000 142,612 657,612
2037 250,000 129,538 379,538
2038 255,000 122,038 377,038
2039 265,000 114,069 379,069
2040 275,000 105,788 380,788
2041 285,000 96,850 381,850
2042 290,000 87,588 377,588
2043 300,000 78,163 378,163
2044 310,000 68,413 378,413
2045 320,000 58,338 378,338
2046 330,000 47,538 377,538
2047 345,000 36,400 381,400
2048 355,000 24,756 379,756
2049 365,000 12,775 377,775
Due During Fiscal
Years Ending
$ 20,725,000
$ 5,785,489 $ 26,510,489
General Obligation Bonds - Series 2014
(5,765,000)
Principal Due Interest Due
1 -Sep Mar 1/ Sep 1
Total
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
$ 3,725,000
$ 753,575 $ 4,478,575
47
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1
TSI -5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (CONTINUED)
SEPTEMBER 30, 2023
Due During Fiscal
Years Ending
Unlimited Tax Refunding Bonds, Series 2020
Refunded Bond: M1 Series 2010
(1,220,000)
Principal Due Interest Due
1 -Sep Mar 1/ Sep 1
Total
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
Due During Fiscal
Years Ending
$ 975,000
$ 57,655
Revenue Bonds - Series 2015
(9,230,000)
Principal Due Interest Due
1 -Sep Mar 1/ Sep 1
$ 1,032,655
Total
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
Due During Fiscal
Years Ending
$ 6,280,000
$ 1,286,963 $ 7,566,963
Revenue Bonds - Series 2016
(4,635,000)
Principal Due Interest Due
1 -Sep Mar 1/ Sep 1
Total
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
$ 3,145,000
$ 429,909 $ 3,574,909
48
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1
TSI -5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (CONTINUED)
SEPTEMBER 30, 2023
Revenue Bonds - Series 2019
(7,080,000)
Due During Fiscal Principal Due Interest Due
Years Ending 1 -Sep Mar 1/ Sep 1 Total
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
$ 6,600,000 $ 3,257,388 $ 9,857,388
49
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, 2023
Series 2012 Series 2013 Series 2014 M1 GO Series 2020 Series 2015
GO Bonds GO Bonds GO Bonds
Series 2016 Series 2019
GO Bonds Revenue Bonds Revenue Bonds Revenue Bonds
2.00-3.00% 2.00-3.50% 1.50-3.50% 1.3%
3/1 & 9/1 3/1 & 9/1 3/1 & 9/1
9/1/2023 9/1/2023 9/1/2034
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
$ 250,000 $ 215,000 $ 4,005,000 $ 1,090,000 $ 6,700,000 $ 3,365,000 $ 6,765,000 $ 22,390,000
$ 250,000 $ 215,000 $ 280,000 $ 115,000 $ 420,000 $ 220,000 $ 165,000 $ 1,665,000
$ $ $ 3,725,000 $ 975,000 $ 6,280,000 $ 3,145,000 $ 6,600,000 $ 20,725,000
$ 7,500 $ 7,525 $ 118,613 $ 14,170 $ 184,238 $ 55,139 $ 214,138 $ 601,323
The Bank of New
York Mellon
Newark, NJ
General
Obligation
Bonds
$ 34,859,217
$ 34,855,000
$ 4,217
The Bank of New The Bank of TX
York Mellon Corporate Trust
Newark, NJ Austin, TX
The general obligation bonds were authorized on October 7, 1975
Debt Service Fund cash and cash equivalents balance as of September 30, 2023:
Average annual debt service payment (principal & interest) for remaining term of debt:
JP Morgan
Chase
New York, NY
$ 1,085,505
$ 1,811,527
50
The Bank of TX
Corporate Trust
Austin, TX
The Bank of TX
Corporate Trust
Austin, TX
The Bank of TX
Corporate Trust
Austin, TX
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TS1-7 COMPARATIVE SCHEDULES OF REVENUES AND EXPENDITURES -FIVE YEARS
GENERAL FUND
SEPTEMBER 30, 2023
Amounts Percentage
REVENUE 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019
Ad valorem property taxes $ 1,355,148 $ 1,434,197 $ 1,378,844 $ 1,371,466 $ 1,231,580 9.7% 11.3% 12.5% 12.6% 11.6%
Water and wastewater charges 11,847,030 10,809,305 9,222,445 9,109,566 8,539,760 84.6% 85.0% 83.7% 83.6% 80.7%
Inspection and tap fees 4,100 8,099 12,500 20,300 6,900 0.0% 0.1% 0.1% 0.2% 0.1%
Interest earned 397,122 66,251 18,386 81,518 139,388 2.8% 0.5% 0.2% 0.7% 1.3%
Debt proceeds - - (7,080) 0.0% 0.0% 0.0% 0.0% -0.1%
Transfers In - - 32,080 0.0% 0.0% 0.0% 0.0% 0.3%
Proceeds from Sale of Assets 110,979 21,001 23,975 12,520 52,600 0.8% 0.2% 0.2% 0.1% 0.5%
Capital Lease Financing - 204,004 0.0% 0.0% 0.0% 0.0% 1.9%
Miscellaneous and other 291,169 377,827 359,189 300,746 376,822 2.1% 3.0% 3.3% 2.8% 3.6%
Total revenue $ 14,005,548 $ 12,716,680 $ 11,015,339 $ 10,896,116 $10,576,054 100.0% 100.0% 100.0% 100.0% 100.0%
EXPENDITURES
Administrative $ 1,546,349 $ 1,424,573 $ 1,405,997 $ 1,388,918 $ 1,304,577 11.5% 12.2% 13.2% 14.4% 13.4%
Water operations 4,157,215 4,025,300 2,982,828 2,919,210 3,001,947 31.0% 34.3% 28.1% 30.3% 30.9%
Wastewater operations 1,460,607 1,530,667 1,508,659 1,252,392 1,048,445 10.9% 13.1% 14.2% 13.0% 10.8%
Contribution to Trophy Club Fire Dept 978,435 918,658 839,816 738,348 692,347 7.3% 7.8% 7.9% 7.7% 7.1%
Capital outlay 3,553,442 2,000,049 1,034,637 931,856 2,036,172 26.5% 17.1% 9.7% 9.7% 21.0%
Transfers Out and Debt Service 1,694,176 1,823,389 2,858,279 2,405,409 1,619,062 12.7% 15.6% 26.9% 25.0% 16.7%
Total expenditures $ 13,390,224 $ 11,722,635 $ 10,630,215 $ 9,636,133 $ 9,702,550 100% 100.0% 100.0% 100.0% 100.0%
Excess (deficiency) of revenues
over (under) expenditures $ 615,324 $ 994,045 $ 385,123 $ 1,259,983 $ 873,504 4.4% 7.8% 3.5% 11.6% 8.3%
Total active retail water and/or
wastewater connections
3,407 3,379 3,374 3,371 3,330
51
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -7 COMPARATIVE SCHEDULES OF REVENUES AND EXPENDITURES -FIVE YEARS (Continued)
DEBT SERVICE FUND
SEPTEMBER 30, 2023
Amounts Percentage
REVENUE 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019
Ad valorem property taxes $ 701,238 $ 704,644 $ 688,651 $ 693,604 $ 677,477 30.2% 30.8% 30.5% 31.0% 31.8%
Penalties and interest 2,010 0.0% 0.0% 0.0% 0.0% 0.1%
Transfers in from other funds 1,573,226 1,574,226 1,565,786 1,535,035 1,413,156 67.7% 68.8% 69.4% 68.6% 66.3%
Interest earned 49,191 7,980 286 6,776 37,255 2.1% 0.3% 0.0% 0.3% 1.7%
Miscellaneous and other - - 1,220 - 0.0% 0.0% 0.0% 0.1% 0.0%
Total revenue 2,323,655 2,286,850 2,254,723 2,236,635 2,129,898 100.0% 100.0% 100.0% 100.0% 100.0%
EXPENDITURES
Principal retirement
Interest and fiscal charges
Bond admin fees
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
1,665,000 1,625,000 1,580,000 1,370,000 1,350,000 73.4% 71.8% 70.2% 62.0% 71.2%
601,296 636,539 665,987 837,477 543,396 26.5% 28.1% 29.6% 37.9% 28.7%
2,100 2,600 3,350 3,292 2,950 0.1% 0.1% 0.1% 0.1% 0.2%
2,268,396 2,264,139 2,249,337 2,210,769 1,896,346 100.0% 100.0% 100.0% 100.0% 100.0%
$ 55,259 $ 22,711 $ 5,386 $ 25,865 $ 233,552 2.4% 1.0% 0.2% 1.2% 11.0%
52
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -8 BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS
September 30, 2023
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 FY2023 FY2023 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
Doug Harper
16 Fair Green Drive
Trophy Club, TX 76262
Ben Brewster
222 Fresh Meadow Drive
Trophy Club, TX 76262
Tracey Hunter
19 Monterrey Drive
Trophy Club, TX 76262
11/20-5/24 $
5/22-5/26 $
5/22-5/26 $
5/22-5/26 $
53
$
Director
Secretary/Treasurer
Vice -President
Director
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TSI -8 BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS (Continued)
SEPTEMBER 30, 2023
Name and Address
Consultants/Legal:
Date of Contract Total Paid Out Type of
or Vendor Created FY 2023 Vendor
Denton Central Appraisal District
P.O. Box 2816
Denton, TX 76202 4/1/1981 $ 8,655 Appraiser
Tarrant Appraisal District
2500 Handley-Ederville Rd.
Fort Worth, TX 76262 10/1/2007 $ 2,609 Appraiser
Rod L Abbott CPA LLC
P.O. Box 75
Tom Bean, Tx 75489 8/27/2020 $ 22,064
Halff Associates, Inc.
P.O. Box 678316
Dallas, TX 75267-8316 1/1/2017 $ 94,679
Auditors
Engineers
Garver
P.O. Box 736556
Dallas, TX 75373-6556 12/3/2021 $ 217,154 Engineers
Bickerstaff Heath Delgado Acosta LLP
901 S. Mopac Expressway
Building #1, Suite 300
Austin, TX 78746 4/1/2023 $ 19,993 Legal Counsel
McLean & Howard, L.L.P.
901 S. Mopac Expressway
Building 2, Suite 225
Austin, TX 78746 3/1/2017 $ 10,170 Legal/Bond Counsel
Whitaker Chalk Swindle & Schwartz PLLC
301 Commerce St, Suite 3500
Fort Worth, TX 76102-4186 4/30/2018 $ 1,100 Legal Counsel
New Gen Strategies & Solutions
1300 E. Lookout Dr. Suite 100
Richardson, TX 75082 7/1/2013 $ 5,058 Rate Consultant
54