The URL can be used to link to this page

Home My WebLink About2025-0115 January 15, 2025 Regular Meeting Agenda Packet BOARD OF DIRECTORS REGULAR MEETING TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 100 MUNICIPAL DRIVE TROPHY CLUB, TEXAS 76262 Wednesday, January 15, 2025 6:30 P.M. Svore Municipal Boardroom REGULAR MEETING AGENDA CALL TO ORDER AND ANNOUNCE A QUORUM CITIZEN COMMENTS This is an opportunity for citizens to address the Board on any matter whether or not it is posted on the agenda. The Board is not permitted to take action on or discuss any comments made to the Board at this time concerning an item not listed on the agenda. The Board will hear comments on specific agenda items prior to the Board addressing those items. You may speak up to four (4) minutes or the time limit determined by the President or presiding officer. To speak during this item, you must complete the Speaker’s form that includes the topic(s) of your statement. Citizen Comments should be limited to matters over which the Board has authority. REPORTS & UPDATES 1. Staff Reports a. Monthly Capital Improvement Projects b. Monthly Operations Reports c. Monthly Finance Reports Attachments: Monthly Staff Reports CONSENT AGENDA All matters listed as Consent Agenda are considered to be routine by the Board of Directors and will be enacted by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 2. Consider and act to approve the Consent Agenda. a. December 18, 2024, Regular Meeting minutes b. Quarterly Investment Report - 1st Quarter FY2025 c. Tax Collections Report – 1st Quarter FY2025 Attachments: December 18, 2024, Regular Meeting minutes Quarterly Investment Report - 1st Quarter FY2025 Tax Collections Report – 1st Quarter FY2025 January 15, 2025 Regular Meeting Agenda Packet 1 of 106 REGULAR SESSION 3. Consider and act to approve the Fiscal Year 2024 Annual Financial Audit Report prepared by Rod Abbott PLLC. Attachments: Audit Letter Audited Financials 4. Discussion and possible action regarding reserve balances. 5. Consider and act to approve the purchase and installation of a return pump from Smith Pump Company, Inc. Attachments: Staff Report 6. Consider and act to approve Order No. 2025-0115 declaring property of the District to be surplus and authorize staff to sell such property. Attachments: Order No. 2025-0115 7. Receive update from Strategic Committee members. (Carr/Rose) 8. Discussion regarding District Goals. (Carr) 9. Discussion and review of taxes and surcharges applied to properties located in the Trophy Club Public Improvement District (PID). (Carr) 10. Discussion regarding working with surrounding towns regarding fire services and assets. (Carr) EXECUTIVE SESSION 11. Pursuant to Section 551.071, to consult with its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the Open Meetings Act or to seek advice of counsel on legal matters involving pending or contemplated litigation or settlement offers on the following matters: a. Expansion of District boundaries. b. Possible transfer of District Assets. REGULAR SESSION 12. Consider and act regarding item(s) discussed in Executive Session. FUTURE AGENDA ITEMS Board Members may provide requests for discussion items for a future agenda in accordance with the board’s approved bylaws. No further discussion will be held related to topics proposed until they are posted on a future agenda in accordance with the Texas Open Meetings Act 13. Items for future agendas: January 15, 2025 Regular Meeting Agenda Packet 2 of 106 14. Next Regular Meeting date – February 19, 2025, at 6:30 p.m. Attachments: Meeting Calendar THE BOARD OF DIRECTORS RESERVES THE RIGHT TO ADJOURN INTO EXECUTIVE SESSION AT ANY TIME DURING THE COURSE OF THIS MEETING TO DISCUSS ANY MATTERS LISTED ON THE AGENDA, AS AUTHORIZED BY TEXAS GOVERNMENT CODE SECTION 551.071 (CONSULTATION WITH ATTORNEY), 551.072 (DELIBERATIONS ABOUT REAL PROPERTY), 551.073 (DELIBERATIONS ABOUT GIFTS AND DONATIONS), 551.074 (PERSONNEL MATTERS), 551.076 (DELIBERATIONS ABOUT SECURITY DEVICES), AND/OR 418.183 (HOMELAND SECURITY). ADJOURN January 15, 2025 Regular Meeting Agenda Packet 3 of 106 Capital Improvement Projects  Pump Station Improvement Project – This project is complete excluding any remaining punch list items and final cleanup.  FY 2025 Water Line Project – Design is in progress for the replacement of approximately 8,500 linear feet of water lines along and adjacent to Indian Creek Drive, Saint Andrews Court, Lake Forest Court, Turnbury Court, Glen Eagles Court, Alamosa Drive, Monterey Drive, Silver Rock Drive, and Durango Drive.  Lift Station Improvements – Bidding is underway for miscellaneous improvements at Lift Stations No. 2, 3, 5, and 6.  Southlake emergency connection – We are awaiting a response from the city of Southlake regarding whether they can accommodate the request for an emergency water connection. January 15, 2025 Regular Meeting Agenda Packet 4 of 106 FY October November December January February March April May June July August September Total Year 2016 108,951 41,936 39,028 39,622 44,551 49,498 55,181 50,827 65,390 115,687 119,611 98,945 829,227 2017 74,785 68,638 38,580 33,028 38,380 60,841 56,683 86,794 98,864 95,355 104,303 99,541 855,792 2018 83,228 69,099 48,144 34,592 40,658 43,411 60,079 89,802 118,899 126,588 125,531 73,735 913,766 2019 47,193 41,933 36,244 34,604 33,740 40,421 55,970 42,773 70,747 96,174 131,472 114,784 746,055 2020 102,150 40,988 43,946 36,418 31,000 34,047 53,755 67,030 96,195 123,309 118,522 83,570 830,930 2021 98,232 57,380 40,841 42,725 40,786 41,078 67,776 50,736 64,195 100,853 97,864 112,674 815,140 2022 78,390 54,635 48,488 49,322 40,021 44,588 72,448 85,474 119,711 141,177 143,845 108,377 986,476 2023 101,683 49,007 52,466 49,082 34,501 46,119 70,083 79,654 108,707 134,083 169,549 154,971 1,049,905 2024 112,006 61,555 48,355 35,861 36,716 44,722 58,565 53,386 79,766 131,629 150,584 114,340 927,485 2025 123,983 62,527 50,288 FY October November December January February March April May June July August September Total Year 2016 106,731 52,616 43,708 46,945 50,721 55,178 60,434 55,562 68,138 112,533 128,963 104,664 886,193 2017 82,677 77,937 43,792 43,207 43,024 69,549 65,723 94,452 103,867 101,184 114,872 109,769 950,053 2018 91,439 78,282 55,745 40,796 40,750 51,711 67,217 97,980 124,109 155,354 144,015 85,946 1,033,344 2019 60,576 53,119 45,651 45,552 39,014 43,048 61,238 48,787 79,167 102,887 144,299 130,752 854,090 2020 112,971 48,627 49,384 40,726 35,749 38,576 57,714 74,153 106,219 136,306 130,721 89,514 920,660 2021 106,660 66,304 46,962 50,538 47,733 44,191 75,866 56,985 73,907 113,015 109,492 123,206 914,859 2022 91,078 61,928 54,930 52,679 49,094 51,606 81,977 92,915 133,828 152,199 161,534 117,252 1,101,020 2023 114,089 54,777 57,827 57,758 39,309 50,124 77,261 84,019 120,932 145,657 184,972 169,227 1,155,952 2024 122,699 69,114 53,685 42,905 45,875 51,064 65,014 55,365 87,845 141,966 165,240 140,082 1,040,854 2025 138,130 71,155 58,502 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Water Billed 2021 2022 2023 2024 2025 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Water Pumped 2021 2022 2023 2024 2025 January 15, 2025 Regular Meeting Agenda Packet 5 of 106 0.750 0.950 1.150 1.350 1.550 1.750 1.950 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24Million GallonsWastewater Treated Daily Avg Flow Daily Max Flow Daily Avg Max 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Carbonaceous Biochemical Oxygen Demand (CBOD) CBOD Avg CBOD Max Daily Avg Max Daily Max 0 1 2 3 4 5 6 7 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24Million GallonsDec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Min 1.044 0.858 0.580 1.352 1.291 0.366 1.475 2.756 3.807 1.890 2.465 1.220 1.013 Max 2.476 2.051 2.571 2.867 3.223 3.569 5.800 6.369 7.296 5.958 5.573 3.131 2.616 Avg 1.772 1.462 1.592 1.848 2.119 2.119 3.494 4.887 5.390 4.107 4.164 3.131 1.770 Water Production January 15, 2025 Regular Meeting Agenda Packet 6 of 106 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Total Suspended Solids (TSS) TSS Avg TSS Max Daily Avg Max Daily Max 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Ammonia Nitrogen (NH3) NH3 Avg NH3 Max Daily Avg Max Daily Max 0.0 10.0 20.0 30.0 40.0 50.0 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Nitrate-Nitrogen (NO3) NO3 Avg NO3 Max Daily Avg Max Daily Max January 15, 2025 Regular Meeting Agenda Packet 7 of 106 6.00 6.50 7.00 7.50 8.00 8.50 9.00 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Potential of Hydrogen (pH) pH Min pH Max pH Avg Daily Avg Min Daily Avg Max 6.0 6.5 7.0 7.5 8.0 8.5 9.0 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Dissolved Oxygen (DO) DO Min DO Max DO Avg Daily Avg Min Daily Avg Max 1.0 1.0 1.0 4.1 1.0 1.0 1.0 3.1 1.0 2.0 1.0 3.0 3.1 0 50 100 150 200 250 300 350 400 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Escherichia coli (E. coli) E. coli Avg E. coli Max Daily Avg Max Daily Max January 15, 2025 Regular Meeting Agenda Packet 8 of 106 Payment Amount Number 465.35 10863 719.88 10864 10108.31 10865 52 10866 45316.67 10867 903.74 10868 282889.47 10869 2600 10870 2789.96 10871 8767.12 10872 920 10873 370 10874 50 10875 6666.27 10876 124.08 10877 828 10878 653 10879 7589.58 10880 2429.91 10881 175 10882 2000 10883 1557.08 10884 133445.55 10885 595 10886 2770.8 10887 2508.76 10888 1590 10889 225.4 10890 2133 10891 244532.48 10892 39 10893 1628.58 10894 1839.67 10895 5500 10896 2635 10897 11421.05 10898 645133.28 10899 221.93 10900 1575 10901 112.4 10902 38 10903 2963.49 10904 50 10905 24630 10906 85.18 10907 750 10908 4800 10909 13223.09 10910 3280 10911 338.4 10912 667.98 10913 2635.63 10914 Total Regular:0 1489344.09 1/6/2025 10:16:18 AM Page 1 of 3 1081 Tri County Electric 12/18/2024 Regular 0 2634 Valley Solvents & Chemicals 12/18/2024 Regular 0 1578 Smith Pump Company, Inc.12/18/2024 Regular 0 3156 Southern Petroleum Lab Inc 12/18/2024 Regular 0 3175 Red Letter General Contractor, LLC 12/18/2024 Regular 0 3176 Rey-Mar Construction 12/18/2024 Regular 0 3278 Kyocera Document Solutions 12/18/2024 Regular 0 4019 Peterson Pump & Motor Service LLC 12/18/2024 Regular 0 2606 Fiserv Solutions LLC 12/18/2024 Regular 0 2635 Halff Associates Inc.12/18/2024 Regular 0 2920 CareNow Corporate 12/18/2024 Regular 0 3184 Dataprose LLC 12/18/2024 Regular 0 1738 Ask McConnell, LLC 12/18/2024 Regular 0 1926 Badger Meter, Inc 12/18/2024 Regular 0 3300 2T Underground LLC 12/18/2024 Regular 0 2222 Aflac 12/18/2024 Regular 0 4088 Entech Sales & Service, LLC 12/10/2024 Regular 0 2943 JP Morgan Chase Bank NA 12/10/2024 Regular 0 3280 Watts Ellison LLC 12/10/2024 Regular 0 1738 Ask McConnell, LLC 12/10/2024 Regular 0 4031 Tronic LLC 12/10/2024 Regular 0 3225 US Bank Voyager Fleet Systems 12/10/2024 Regular 0 4085 The Liston Law Firm, P.C.12/10/2024 Regular 0 1001 Town of Trophy Club 12/10/2024 Regular 0 2440 Tarrant County Public Health Laboratory 12/10/2024 Regular 0 2696 Texas Excavation Safety System 12/10/2024 Regular 0 3156 Southern Petroleum Lab Inc 12/10/2024 Regular 0 2659 Tarrant Appraisal District 12/10/2024 Regular 0 3176 Rey-Mar Construction 12/10/2024 Regular 0 3231 SC Tracking Solutions, LLC 12/10/2024 Regular 0 3110 Pump Solutions Inc 12/10/2024 Regular 0 1737 PVS DX INC 12/10/2024 Regular 0 3115 Metlife Group Benefits 12/10/2024 Regular 0 2760 NDS Leasing 12/10/2024 Regular 0 3216 M3 Networks 12/10/2024 Regular 0 4089 Mas Talent LLC 12/10/2024 Regular 0 3278 Kyocera Document Solutions 12/10/2024 Regular 0 2754 Lower Colorado River Authority 12/10/2024 Regular 0 2606 Fiserv Solutions LLC 12/10/2024 Regular 0 2796 Garver 12/10/2024 Regular 0 4088 Entech Sales & Service, LLC 12/10/2024 Regular 0 3118 Toby Wayne Zachary 12/10/2024 Regular 0 3184 Dataprose LLC 12/10/2024 Regular 0 1018 Denton Central Appraisal District 12/10/2024 Regular 0 1030 City of Fort Worth 12/10/2024 Regular 0 4003 CW Janitorial Services 12/10/2024 Regular 0 4018 BP Energy Holding Company LLC 12/10/2024 Regular 0 2683 Charter Communications 12/10/2024 Regular 0 2772 Allied Waste Industries 12/10/2024 Regular 0 3197 BenefitMall 12/10/2024 Regular 0 Bank Code: Prosperity Bank-Prosperity Bank Payment Type: Regular 2222 Aflac 12/10/2024 Regular 0 2691 All Test Fire Protection LLC 12/10/2024 Regular 0 Check Report Trophy Club Municipal Utility District No. 1 By Check Number Date Range: 12/01/2024 - 12/31/2024 Vendor Number Vendor Name Payment Date Payment Type Discount Amount January 15, 2025 Regular Meeting Agenda Packet 9 of 106 Payment Amount Number 248.33 DFT0000216 9414.67 DFT0000217 12000.78 DFT0000218 -1041.2 DFT0000219 -1814.07 DFT0000220 1041.2 DFT0000221 1663.73 DFT0000222 248.33 DFT0000223 9800.15 DFT0000224 11955.32 DFT0000225 1/6/2025 10:16:18 AM Page 2 of 3 EFT's 0 0 0.00 0.00 82 62 0.00 1,532,861.33 Voided Checks 0 0 0.00 0.00 Bank Drafts 10 10 0.00 43,517.24 Regular Checks 72 52 0.00 1,489,344.09 Manual Checks 0 0 0.00 0.00 Total Bank Draft:0 43517.24 Bank Code Prosperity Bank Summary Payable Count Payment CountPayment Type Discount Payment 3113 TCDRS 12/31/2024 Bank Draft 0 3124 IRS Tax Payment 12/20/2024 Bank Draft 0 3124 IRS Tax Payment 12/06/2024 Bank Draft 0 3197 BenefitMall 12/20/2024 Bank Draft 0 3124 IRS Tax Payment 12/06/2024 Bank Draft 0 3113 TCDRS 12/31/2024 Bank Draft 0 3124 IRS Tax Payment 12/06/2024 Bank Draft 0 3113 TCDRS 12/31/2024 Bank Draft 0 Payment Type: Bank Draft 3197 BenefitMall 12/06/2024 Bank Draft 0 3113 TCDRS 12/31/2024 Bank Draft 0 Check Report Date Range: 12/01/2024 - 12/31/2024 Vendor Number Vendor Name Payment Date Payment Type Discount Amount January 15, 2025 Regular Meeting Agenda Packet 10 of 106 1532861.33 1/6/2025 10:16:18 AM Page 3 of 3 Fund Summary Fund Name Period Amount 996 MUD Consolidated Cash 12/2024 1532861.33 EFT's 0 0 0.00 0.00 82 62 0.00 1,532,861.33 Voided Checks 0 0 0.00 0.00 Bank Drafts 10 10 0.00 43,517.24 Regular Checks 72 52 0.00 1,489,344.09 Manual Checks 0 0 0.00 0.00 Check Report Date Range: 12/01/2024 - 12/31/2024 All Bank Codes Check Summary Payable Count Payment CountPayment Type Discount Payment January 15, 2025 Regular Meeting Agenda Packet 11 of 106 FY 2025 Combined Financials YTD as of 12/31/2024 Water Budget vs Actual 30,000,000 50,000,000 70,000,000 90,000,000 110,000,000 130,000,000 150,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Water Consumption Budget vs Actual Budget Consumption Actual Consumption $250,000 $350,000 $450,000 $550,000 $650,000 $750,000 $850,000 $950,000 $1,050,000 $1,150,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Water Revenue Budget vs Actual Budget Revenue Actual Revenue $6,925,430 $7,267,290 $4,167,870 $4,532,311 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 Total Water Revenue Adopted Budget Water Revenue Vs Projected Water Revenue Budgeted Water Revenue Projected Water Revenue Net Budgeted Water Revenue Minus Budgeted Expenses Net Projected Water Revenue Minus Projected Expenses $13,224,220 $13,240,355 $2,453,510 $3,061,828 Adopted Budget vs YTD Actuals Revenues & Expenses 135 YTD Revenues 135 YTD Expenses Adopted Revenues Adopted Expenses 895,700,599 924,001,581 - 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 800,000,000 900,000,000 1,000,000,000 Total Water Consumption Adopted Budget Water Consumption Vs Actual Water Consumption Budgeted Water Consumption Projected Water Consumption $1,472,675 60% $499,482 20% $453,529 19% $1,474 0% $26,350 1% YTD Expense- Water YTD Expense- WW YTD Expense- Admin YTD Expense- BOD YTD Expense- Non Dept Presented by: Finance Department January 15, 2025 Regular Meeting Agenda Packet 12 of 106 1/8/2025 9:55:49 AM Page 1 of 5 Budget Report Trophy Club Municipal Utility District No. 1 Account Summary For Fiscal: 2024-2025 Period Ending: 12/31/2024 Fiscal Activity Variance Favorable (Unfavorable) Percent Remaining Current Total Budget Period Activity Original Total Budget Fund: 135 - MUD 1 General Fund Revenue Department: 000 - Revenue, Asset, Liability, & Equity Property Taxes 85,620.00 36,230.66 -49,389.34 57.68 %33,878.08135-000-40000-000 85,620.00 Property Taxes/Delinquent 550.00 -271.51 -821.51 149.37 %-303.98135-000-40002-000 550.00 Property Taxes/P & I 500.00 -18.89 -518.89 103.78 %4.21135-000-40015-000 500.00 PID Surcharges 143,160.00 37,257.46 -105,902.54 73.97 %13,085.74135-000-40025-000 143,160.00 Water 6,925,430.00 1,877,884.65 -5,047,545.35 72.88 %442,315.66135-000-47000-000 6,925,430.00 Sewer 3,773,500.00 900,540.86 -2,872,959.14 76.14 %293,224.15135-000-47005-000 3,773,500.00 Penalties 105,800.00 38,271.17 -67,528.83 63.83 %10,729.63135-000-47025-000 105,800.00 Service Charges 3,350.00 850.00 -2,500.00 74.63 %450.00135-000-47030-000 3,350.00 Plumbing Inspections 300.00 1,650.00 1,350.00 550.00 %300.00135-000-47035-000 300.00 Sewer Inspections 100.00 500.00 400.00 500.00 %100.00135-000-47045-000 100.00 TCCC Effluent Charges 119,890.00 20,944.88 -98,945.12 82.53 %3,315.84135-000-47070-000 119,890.00 Interest Income 533,725.00 115,318.89 -418,406.11 78.39 %37,233.53135-000-49011-000 533,725.00 Cell Tower Revenue 50,930.00 8,487.20 -42,442.80 83.34 %4,243.60135-000-49016-000 50,930.00 Proceeds from Sale of Assets 25,000.00 15,000.00 -10,000.00 40.00 %0.00135-000-49026-000 25,000.00 GASB Reserves 285,000.00 0.00 -285,000.00 100.00 %0.00135-000-49036-000 285,000.00 Oversize Meter Reimbursement 2,100.00 4,708.00 2,608.00 224.19 %856.00135-000-49075-000 2,100.00 Interfund Transfer In 1,178,400.00 0.00 -1,178,400.00 100.00 %0.00135-000-49141-000 1,178,400.00 Miscellaneous Income 7,000.00 4,474.58 -2,525.42 36.08 %4,039.00135-000-49900-000 7,000.00 Department: 000 - Revenue, Asset, Liability, & Equity Total:3,061,827.95843,471.4613,240,355.00 13,240,355.00 -10,178,527.05 76.88% Revenue Total:3,061,827.95843,471.4613,240,355.00 13,240,355.00 -10,178,527.05 76.88% Expense Department: 010 - Water Salaries & Wages 448,840.00 94,201.78 354,638.22 79.01 %35,762.10135-010-50005-000 448,840.00 Overtime 17,000.00 2,948.10 14,051.90 82.66 %1,003.75135-010-50010-000 17,000.00 Longevity 6,540.00 6,537.50 2.50 0.04 %0.00135-010-50016-000 6,540.00 Certification 3,300.00 800.00 2,500.00 75.76 %250.00135-010-50017-000 3,300.00 Retirement 57,100.00 12,538.49 44,561.51 78.04 %4,441.90135-010-50020-000 57,100.00 Medical Insurance 105,150.00 20,407.00 84,743.00 80.59 %7,624.66135-010-50026-000 105,150.00 Dental Insurance 5,080.00 984.84 4,095.16 80.61 %368.03135-010-50027-000 5,080.00 Vision Insurance 980.00 190.92 789.08 80.52 %71.34135-010-50028-000 980.00 Life Insurance & Other 4,000.00 912.12 3,087.88 77.20 %338.74135-010-50029-000 4,000.00 Social Security Taxes 29,490.00 6,327.52 23,162.48 78.54 %2,223.84135-010-50030-000 29,490.00 Medicare Taxes 6,897.00 1,479.80 5,417.20 78.54 %520.09135-010-50035-000 6,897.00 Unemployment Taxes 1,260.00 0.00 1,260.00 100.00 %0.00135-010-50040-000 1,260.00 Workman's Compensation 13,200.00 3,410.70 9,789.30 74.16 %1,136.90135-010-50045-000 13,200.00 Pre-emp Physicals/Testing 400.00 0.00 400.00 100.00 %0.00135-010-50060-000 400.00 Employee Relations 300.00 111.80 188.20 62.73 %0.00135-010-50070-000 300.00 Maintenance & Repairs 222,000.00 3,049.93 218,950.07 98.63 %1,632.06135-010-55080-000 222,000.00 Generator Maint. and Repair 2,000.00 0.00 2,000.00 100.00 %0.00135-010-55085-000 2,000.00 Vehicle Maintenance 5,000.00 2,464.63 2,535.37 50.71 %305.60135-010-55090-000 5,000.00 Maintenance-Backhoe/SkidLoader 1,000.00 0.00 1,000.00 100.00 %0.00135-010-55105-000 1,000.00 Lab Analysis 7,500.00 1,074.00 6,426.00 85.68 %1,074.00135-010-55135-000 7,500.00 Lab Analysis for PID 3,000.00 1,464.00 1,536.00 51.20 %1,344.00135-010-55135-001 3,000.00 Communications/Mobiles 7,500.00 335.05 7,164.95 95.53 %0.00135-010-60010-000 7,500.00 Electricity 216,400.00 44,892.00 171,508.00 79.26 %0.00135-010-60020-000 216,400.00 Schools & Training 3,000.00 111.00 2,889.00 96.30 %111.00135-010-60080-000 3,000.00 Travel & per diem 920.00 0.00 920.00 100.00 %0.00135-010-60100-000 920.00 TCEQ Fees & Permits 29,500.00 8,964.55 20,535.45 69.61 %0.00135-010-60135-000 29,500.00 TCEQ Fees & Permits for PID 500.00 0.00 500.00 100.00 %0.00135-010-60135-001 500.00 January 15, 2025 Regular Meeting Agenda Packet 13 of 106 Budget Report For Fiscal: 2024-2025 Period Ending: 12/31/2024 1/8/2025 9:55:49 AM Page 2 of 5 Fiscal Activity Variance Favorable (Unfavorable) Percent Remaining Current Total Budget Period Activity Original Total Budget Wholesale Water 2,757,560.00 282,889.47 2,474,670.53 89.74 %282,889.47135-010-60150-000 2,757,560.00 Lawn Equipment & Maintenance 12,500.00 1,800.00 10,700.00 85.60 %600.00135-010-60285-000 12,500.00 Interfund Transfer Out-Rev I&S 568,498.00 155,045.13 413,452.87 72.73 %103,363.42135-010-60332-000 568,498.00 Fuel & Lube 23,580.00 2,683.05 20,896.95 88.62 %1,285.65135-010-65005-000 23,580.00 Uniforms 4,360.00 1,458.64 2,901.36 66.54 %1,328.65135-010-65010-000 4,360.00 Chemicals 35,000.00 7,742.30 27,257.70 77.88 %1,557.08135-010-65030-000 35,000.00 Meter Expense 20,000.00 0.00 20,000.00 100.00 %0.00135-010-65050-000 20,000.00 Meter Change Out Program 130,000.00 0.00 130,000.00 100.00 %0.00135-010-65053-000 130,000.00 Capital Outlays 2,265,000.00 807,850.28 1,457,149.72 64.33 %807,850.28135-010-69005-000 2,265,000.00 GASB Reserve for Replacement 426,590.00 0.00 426,590.00 100.00 %0.00135-010-69195-000 426,590.00 Department: 010 - Water Total:1,472,674.601,257,082.567,440,945.00 7,440,945.00 5,968,270.40 80.21% Department: 020 - Wastewater Salaries & Wages 275,760.00 29,748.25 246,011.75 89.21 %10,968.54135-020-50005-000 275,760.00 Overtime 20,000.00 1,668.03 18,331.97 91.66 %555.24135-020-50010-000 20,000.00 Longevity 2,770.00 2,772.50 -2.50 -0.09 %0.00135-020-50016-000 2,770.00 Certification 5,700.00 625.00 5,075.00 89.04 %225.00135-020-50017-000 5,700.00 Retirement 36,500.00 4,177.65 32,322.35 88.55 %1,409.85135-020-50020-000 36,500.00 Medical Insurance 60,090.00 8,710.34 51,379.66 85.50 %3,260.33135-020-50026-000 60,090.00 Dental Insurance 2,790.00 319.17 2,470.83 88.56 %119.45135-020-50027-000 2,790.00 Vision Insurance 590.00 68.52 521.48 88.39 %25.65135-020-50028-000 590.00 Life Insurance & Other 3,000.00 515.85 2,484.15 82.81 %183.79135-020-50029-000 3,000.00 Social Security Taxes 18,860.00 2,072.65 16,787.35 89.01 %697.14135-020-50030-000 18,860.00 Medicare Taxes 4,411.00 484.74 3,926.26 89.01 %163.04135-020-50035-000 4,411.00 Unemployment Taxes 1,010.00 0.00 1,010.00 100.00 %0.00135-020-50040-000 1,010.00 Workman's Compensation 8,356.00 2,181.45 6,174.55 73.89 %727.15135-020-50045-000 8,356.00 Pre-emp Physicals/Testing 400.00 0.00 400.00 100.00 %0.00135-020-50060-000 400.00 Employee Relations 300.00 111.80 188.20 62.73 %0.00135-020-50070-000 300.00 Maintenance & Repairs 149,000.00 64,819.40 84,180.60 56.50 %5,189.29135-020-55080-000 149,000.00 Mainten & Repairs Collections 330,000.00 21,980.78 308,019.22 93.34 %8,219.42135-020-55081-000 330,000.00 Generator Maint. and Repair 11,000.00 0.00 11,000.00 100.00 %0.00135-020-55085-000 11,000.00 Vehicle Maintenance 4,600.00 0.00 4,600.00 100.00 %0.00135-020-55090-000 4,600.00 Veh Maintenance Collections 11,480.00 332.62 11,147.38 97.10 %0.00135-020-55091-000 11,480.00 Maintenance-Backhoe/SkidLoader 3,000.00 0.00 3,000.00 100.00 %0.00135-020-55105-000 3,000.00 Dumpster Services 103,000.00 16,898.54 86,101.46 83.59 %10,108.31135-020-55125-000 103,000.00 Lab Analysis 60,000.00 14,427.60 45,572.40 75.95 %3,109.20135-020-55135-000 60,000.00 Communications/Mobiles 5,000.00 200.60 4,799.40 95.99 %0.00135-020-60010-000 5,000.00 Electricity 314,100.00 44,880.68 269,219.32 85.71 %667.98135-020-60020-000 314,100.00 Schools & Training 2,420.00 0.00 2,420.00 100.00 %0.00135-020-60080-000 2,420.00 Travel & per diem 870.00 0.00 870.00 100.00 %0.00135-020-60100-000 870.00 TCEQ Fees & Permits 12,000.00 9,888.02 2,111.98 17.60 %0.00135-020-60135-000 12,000.00 Lawn Equipment & Maintenance 16,000.00 2,190.00 13,810.00 86.31 %770.00135-020-60285-000 16,000.00 Interfund Transfer Out-Tax I&S 115,708.00 31,556.73 84,151.27 72.73 %21,037.82135-020-60331-000 115,708.00 Interfund Transfer Out-Rev I&S 704,820.00 192,223.71 512,596.29 72.73 %128,149.14135-020-60332-000 704,820.00 Fuel & Lube 13,000.00 911.09 12,088.91 92.99 %342.93135-020-65005-000 13,000.00 Uniforms 3,520.00 0.00 3,520.00 100.00 %0.00135-020-65010-000 3,520.00 Chemicals 32,500.00 7,906.89 24,593.11 75.67 %2,635.63135-020-65030-000 32,500.00 Chemicals Collections 10,000.00 0.00 10,000.00 100.00 %0.00135-020-65031-000 10,000.00 Lab Supplies 33,000.00 22,561.25 10,438.75 31.63 %0.00135-020-65045-000 33,000.00 Office Supplies 0.00 0.00 0.00 0.00 %-167.40135-020-65085-000 0.00 Maintenance Supplies 0.00 0.00 0.00 0.00 %-51.81135-020-65095-000 0.00 Capital Outlays 1,140,000.00 15,247.91 1,124,752.09 98.66 %15,247.91135-020-69005-000 1,140,000.00 GASB Reserve for Replacement 337,380.00 0.00 337,380.00 100.00 %0.00135-020-69195-000 337,380.00 Department: 020 - Wastewater Total:499,481.77213,593.603,852,935.00 3,852,935.00 3,353,453.23 87.04% Department: 026 - Board of Directors Workman's Compensation 20.00 1.98 18.02 90.10 %0.66135-026-50045-000 20.00 Dues & Memberships 750.00 750.00 0.00 0.00 %-320.00135-026-60070-000 750.00 Meetings 1,500.00 231.88 1,268.12 84.54 %231.88135-026-60075-000 1,500.00 Schools & Training 4,000.00 490.00 3,510.00 87.75 %0.00135-026-60080-000 4,000.00 January 15, 2025 Regular Meeting Agenda Packet 14 of 106 Budget Report For Fiscal: 2024-2025 Period Ending: 12/31/2024 1/8/2025 9:55:49 AM Page 3 of 5 Fiscal Activity Variance Favorable (Unfavorable) Percent Remaining Current Total Budget Period Activity Original Total Budget Travel & per diem 5,000.00 0.00 5,000.00 100.00 %0.00135-026-60100-000 5,000.00 Miscellaneous Expenses 500.00 0.00 500.00 100.00 %0.00135-026-60245-000 500.00 Office Supplies 0.00 0.00 0.00 0.00 %-231.88135-026-65085-000 0.00 Department: 026 - Board of Directors Total:1,473.86-319.3411,770.00 11,770.00 10,296.14 87.48% Department: 030 - Administration Salaries & Wages 662,170.00 137,108.79 525,061.21 79.29 %52,497.59135-030-50005-000 662,170.00 Overtime 2,000.00 212.10 1,787.90 89.40 %18.44135-030-50010-000 2,000.00 Longevity 2,290.00 2,285.00 5.00 0.22 %0.00135-030-50016-000 2,290.00 Retirement 79,976.00 16,698.75 63,277.25 79.12 %6,283.93135-030-50020-000 79,976.00 Medical Insurance 105,150.00 17,470.43 87,679.57 83.39 %6,531.00135-030-50026-000 105,150.00 Dental Insurance 3,810.00 678.24 3,131.76 82.20 %253.55135-030-50027-000 3,810.00 Vision Insurance 830.00 148.08 681.92 82.16 %55.36135-030-50028-000 830.00 Life Insurance & Other 4,800.00 1,228.83 3,571.17 74.40 %432.88135-030-50029-000 4,800.00 Social Security Taxes 41,320.00 7,584.76 33,735.24 81.64 %2,349.45135-030-50030-000 41,320.00 Medicare Taxes 9,660.00 1,960.72 7,699.28 79.70 %736.32135-030-50035-000 9,660.00 Unemployment Taxes 1,510.00 21.87 1,488.13 98.55 %21.87135-030-50040-000 1,510.00 Workman's Compensation 1,703.00 431.13 1,271.87 74.68 %143.71135-030-50045-000 1,703.00 Pre-emp Physicals/Testing 400.00 38.00 362.00 90.50 %38.00135-030-50060-000 400.00 Employee Relations 4,000.00 491.37 3,508.63 87.72 %323.65135-030-50070-000 4,000.00 Software & Support 153,810.00 65,350.10 88,459.90 57.51 %2,641.21135-030-55030-000 153,810.00 Maintenance & Repairs 23,000.00 12,323.68 10,676.32 46.42 %4,404.47135-030-55080-000 23,000.00 Generator Maint. and Repair 1,000.00 0.00 1,000.00 100.00 %0.00135-030-55085-000 1,000.00 Cleaning Services 20,000.00 4,800.00 15,200.00 76.00 %2,600.00135-030-55120-000 20,000.00 Professional Outside Services 100,000.00 92,871.51 7,128.49 7.13 %7,589.58135-030-55160-000 100,000.00 Utility Billing Contract 9,000.00 1,328.73 7,671.27 85.24 %1,328.73135-030-55205-000 9,000.00 Telephone 6,000.00 885.70 5,114.30 85.24 %409.25135-030-60005-000 6,000.00 Communications/Mobiles 3,000.00 48.28 2,951.72 98.39 %0.00135-030-60010-000 3,000.00 Electricity/Gas 20,300.00 2,968.36 17,331.64 85.38 %0.00135-030-60020-000 20,300.00 Postage 30,000.00 4,818.97 25,181.03 83.94 %4,425.72135-030-60035-000 30,000.00 Service Charges & Fees 155,000.00 32,477.37 122,522.63 79.05 %10,806.97135-030-60040-000 155,000.00 Bad Debt Expense 13,000.00 0.00 13,000.00 100.00 %0.00135-030-60050-000 13,000.00 Insurance 129,860.00 31,922.07 97,937.93 75.42 %10,640.69135-030-60055-000 129,860.00 Dues & Memberships 2,560.00 420.00 2,140.00 83.59 %320.00135-030-60070-000 2,560.00 Schools & Training 3,550.00 350.00 3,200.00 90.14 %350.00135-030-60080-000 3,550.00 Travel & per diem 4,270.00 843.91 3,426.09 80.24 %843.91135-030-60100-000 4,270.00 Lawn Equipment & Maintenance 6,000.00 939.34 5,060.66 84.34 %469.67135-030-60285-000 6,000.00 Uniforms 530.00 0.00 530.00 100.00 %0.00135-030-65010-000 530.00 Hardware 50,000.00 0.00 50,000.00 100.00 %0.00135-030-65055-000 50,000.00 Office Supplies 5,000.00 1,402.40 3,597.60 71.95 %-466.83135-030-65085-000 5,000.00 Maintenance Supplies 6,000.00 3,073.17 2,926.83 48.78 %3,073.17135-030-65095-000 6,000.00 Capital Outlays 115,000.00 9,710.00 105,290.00 91.56 %9,710.00135-030-69005-000 115,000.00 Copier Lease Installments 4,000.00 637.56 3,362.44 84.06 %384.26135-030-69170-000 4,000.00 GASB Reserve for Replacement 25,000.00 0.00 25,000.00 100.00 %0.00135-030-69195-000 25,000.00 Department: 030 - Administration Total:453,529.22129,216.551,805,499.00 1,805,499.00 1,351,969.78 74.88% Department: 039 - Non Departmental Legal 65,000.00 6,537.25 58,462.75 89.94 %2,133.00135-039-55045-000 65,000.00 Auditing 30,000.00 4,500.00 25,500.00 85.00 %0.00135-039-55055-000 30,000.00 Appraisal 13,070.00 11,275.88 1,794.12 13.73 %11,275.88135-039-55060-000 13,070.00 Tax Admin Fees 5,000.00 4,037.00 963.00 19.26 %4,037.00135-039-55065-000 5,000.00 Department: 039 - Non Departmental Total:26,350.1317,445.88113,070.00 113,070.00 86,719.87 76.70% Expense Total:2,453,509.581,617,019.2513,224,219.00 13,224,219.00 10,770,709.42 81.45% Fund: 135 - MUD 1 General Fund Surplus (Deficit):608,318.37-773,547.7916,136.00 16,136.00 592,182.37 -3,669.95% Report Surplus (Deficit):-773,547.79 608,318.3716,136.00 16,136.00 592,182.37 -3,669.95% January 15, 2025 Regular Meeting Agenda Packet 15 of 106 Budget Report For Fiscal: 2024-2025 Period Ending: 12/31/2024 1/8/2025 9:55:49 AM Page 4 of 5 Group Summary Fiscal Activity Variance Favorable (Unfavorable) Period ActivityDepartmen… Current Total Budget Original Total Budget Percent Remaining Fund: 135 - MUD 1 General Fund Revenue 000 - Revenue, Asset, Liability, & Equity 3,061,827.95843,471.4613,240,355.00 13,240,355.00 -10,178,527.05 76.88% 3,061,827.95843,471.4613,240,355.00 13,240,355.00 -10,178,527.05Revenue Total:76.88% Expense 010 - Water 1,472,674.601,257,082.567,440,945.00 7,440,945.00 5,968,270.40 80.21% 020 - Wastewater 499,481.77213,593.603,852,935.00 3,852,935.00 3,353,453.23 87.04% 026 - Board of Directors 1,473.86-319.3411,770.00 11,770.00 10,296.14 87.48% 030 - Administration 453,529.22129,216.551,805,499.00 1,805,499.00 1,351,969.78 74.88% 039 - Non Departmental 26,350.1317,445.88113,070.00 113,070.00 86,719.87 76.70% 2,453,509.581,617,019.2513,224,219.00 13,224,219.00 10,770,709.42Expense Total:81.45% 608,318.37-773,547.7916,136.00 16,136.00 592,182.37Fund: 135 - MUD 1 General Fund Surplus (Deficit):-3,669.95% Report Surplus (Deficit):-773,547.79 608,318.3716,136.00 16,136.00 592,182.37 -3,669.95% January 15, 2025 Regular Meeting Agenda Packet 16 of 106 Budget Report For Fiscal: 2024-2025 Period Ending: 12/31/2024 1/8/2025 9:55:49 AM Page 5 of 5 Fund Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget 135 - MUD 1 General Fund 608,318.37-773,547.7916,136.00 16,136.00 592,182.37 Report Surplus (Deficit):-773,547.79 608,318.3716,136.00 16,136.00 592,182.37 January 15, 2025 Regular Meeting Agenda Packet 17 of 106 135-10250 TexPool O & M (XXXXX0002) General Fund Operating $0 $2,208,252 $2,208,252 135-10300 Prosperity Bank (XXXXX2660) General Fund Operating *$155,945 $5,145,379 $5,301,324 135-10305 Prosperity Bank Reserve-Savings Acct (XXXXX7724)$2,015,442 $0 $2,015,442 135-11100 Petty Cash Administration $0 $150 $150 135-11150 Petty Cash Utility Billing $0 $450 $450 137-10250 TexPool O & M (XXXXX0002) GASB Replacement $4,866,433 $0 $4,866,433 519-10300 Prosperity Bank (XXXXX2660) SWIFT $85,052 $0 $85,052 519-11155 Cash-Bond Escrow Bank of Texas (SWIFT)$863,070 $0 $863,070 520-10250 Texpool Revenue Bond Water & Waste Water Systems 2019 (XXXXX018)$0 $0 $0 520-10300 Prosperity Bank (XXXXX2660)- Construction Water & Waste Water Systems $0 $0 $0 528-10250 TexPool Revenue Bond Reserve (XXXXX014) WWTP Improvements $1,005,744 $0 $1,005,744 533-10250 TexPool Tax I & S (XXXXX0003)$225,121 $0 $225,121 533-10300 Prosperity Bank (XXXXX2660) Tax I&S $0 $0 $0 534-10250 TexPool Revenue I & S (XXXXX013) WWTP Improvements $222,813 $0 $222,813 535-10250 Texpool Revenue I & S (XXXXX017) SWIFT $94,078 $0 $94,078 536-10250 TexPool Revenue I & S (XXXXX020) Water & Waste Water Systems $117,036 $0 $117,036 $7,354,231 $17,004,964 Amount available in cash for spending (MUD Accounts)$7,354,231 *12/31/2024 Customer Water Deposits $155,945.00 122-10250 TexPool O & M (XXXXX0002)-Fire Operating Cash $0 $825,484 $825,484 122-10300 Prosperity Bank (XXXXX2660) Fire Operating $0 $140,543 $140,543 $0 $966,027 $966,027 Amount available in cash for spending (Fire Department Accounts)$966,027 5,145,379$ Prosperity General Fund 2,208,252$ Texpool General Fund 600$ Petty Cash Total General Fund 135 Available for Spending 7,354,231$ Nonspendable Fund Balance (Prepaids)5,130$ Assigned Fund Balance (FY2024 Capital Projects plus prior year carry forward)1,946,960$ Unassigned Fund Balance 7,612,994$ Current Year Revenue/Expenses 608,318$ Total Nonspendable, Assigned & Committed Fund Balances - General Fund 135 $10,173,403 General Fund 135 Available General Fund 135 Fund Balances Fire Department Cash CASH STATUS AS OF DECEMBER 2024 Restricted - Unable to be spent Unrestricted- Available for spending Total in Accounts (Restricted & Unrestricted) January 15, 2025 Regular Meeting Agenda Packet 18 of 106 December January February March April May June July August September October November December 2023 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 2024 ebills 1,737 1,736 1,734 1,744 1,741 1,738 1,724 1,720 1,719 1,721 1,720 1,713 1,710 Bills Mailed 3,742 3,726 3,729 3,737 3,747 3,753 3,758 3,768 3,774 3,759 3,772 3,815 3,785 Bank Draft 567 568 565 565 562 562 557 546 543 544 537 545 537 Online Payments 3,133 3,023 3,036 3,246 2,992 3,152 3,197 3,136 3,263 3,095 3,200 3,070 3,287 Late Notices 342 249 298 299 245 295 277 242 326 275 286 422 361 Disconnects 5 4 8 7 3 3 3 0 4 2 1 5 8 Connections MUD 3,395 3,395 3,395 3,394 3,394 3,394 3,394 3,394 3,394 3,396 3,396 3,396 3,396 Connections Town 1,446 1,446 1,447 1,447 1,450 1,453 1,453 1,454 1,456 1,457 1,457 1,466 1,468 Date of Permit Permit No.Customer Deposit Due to FW Water Oversize Meter Plumbing Inspections Sewer Inspections Fire Line Misc. Income Total 12/4/2024 2025-10 100.00$ 4,953.00$ 428.00$ 150.00$ 50.00$ 5,681.00$ 12/4/2024 2025-11 100.00$ 4,953.00$ 428.00$ 150.00$ 50.00$ 5,681.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 200.00$ 9,906.00$ 856.00$ 300.00$ 100.00$ -$ -$ 11,362.00$ December Utility Billing Report Fiscal Year 2024 - 2025 December Permits Fiscal Year 2024 - 2025 January 15, 2025 Regular Meeting Agenda Packet 19 of 106 REGULAR MEETING MINUTES TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD OF DIRECTORS December 18, 2024, at 6:30 p.m. Trophy Club Municipal Utility District No. 1 Board of Directors, of Denton and Tarrant Counties, met in a regular session meeting on December 18, 2024, at 6:30 p.m., in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. The meeting was held within the boundaries of the District and was open to the public. STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT § BOARD MEMBERS PRESENT: Kevin R. Carr President Doug Harper Secretary/Treasurer William C. Rose Director Jim Thomas Director BOARD MEMBERS ABSENT: Ben Brewster Vice President STAFF PRESENT: Alan Fourmentin General Manager Laurie Slaght District Secretary Mike McMahon Operations Manager Regina Van Dyke Finance Manager Betsy Deck Communications Specialist Pam Liston General Legal Counsel GUESTS PRESENT: Jason Wise Fire Chief Brandon Wright Town of Trophy Club Town Manager CALL TO ORDER AND ANNOUNCE A QUORUM President Carr announced the date of December 18, 2024, called the meeting to order and announced a quorum present at 6:30 p.m. CITIZEN COMMENTS There were no citizen comments. REPORTS & UPDATES 1. Staff Reports a. Monthly Capital Improvement Projects b. Monthly Operations Reports c. Monthly Finance Reports General Manager Alan Fourmentin presented the monthly staff reports and answered questions related thereto. The GM introduced Betsy Deck, who is the District’s new Communications Specialist. January 15, 2025 Regular Meeting Agenda Packet 20 of 106 Due to technical difficulties, the recording was stopped from 6:38 p.m. to 6:41 p.m. CONSENT AGENDA 2. Consider and act to approve the Consent Agenda. a. November 20, 2024, Regular Meeting minutes Motion made by Director Harper and seconded by Director Thomas to approve the consent agenda as presented. Motion carried unanimously. REGULAR SESSION 3. Consider and act regarding District repository and document management systems: a. Master Service Agreement with MCCI, Inc. (Contract 2024121801) b. Addendum No. 1 to Master Services Agreement. Motion made by Director Rose and seconded by Director Thomas to approve Contract No. 2024121801 Master Service Agreement and Addendum No. 1 with MCCI, Inc. for document management and repository services for an amount not to exceed $58,438.50 and utilize the contract which was forwarded to the Board under a redline and authorize the General Manager to execute the necessary documents. Motion carried unanimously. 4. Consider and act to approve Contract No. 2024121802 with Más Talent Human Resources for employee management services. Motion made by Director Thomas and seconded by Director Harper to approve Contract No. 2024121802 with Más Talent Human Resources for employment management services and authorize the General Manager to execute the necessary documents. Motion to amend made by Director Rose and seconded by Director Harper to change the last sentence of Section 6.4 of the contract to read “Any computers or other equipment furnished by the District to the Consultant, must be returned to the District immediately upon termination of this Agreement.” Amendment carried unanimously Motion as amended carried unanimously. 5. Consider and act regarding approval of Contract No. 2024121803 with Insituform Technologies, LLC for wastewater manhole repairs. Motion made by Director Rose and seconded by Director Harper to approve Contract No. 2024121803 for wastewater collection system repairs to Insituform Technologies, LLC. for an amount not to exceed $106,325.00 and authorize the General Manager to execute any necessary documents. Motion carried unanimously. January 15, 2025 Regular Meeting Agenda Packet 21 of 106 6. Consider and take appropriate action to appoint two Directors to serve on a subcommittee to discuss funding options for future fire department capital equipment and infrastructure expenses. Motion made by Director Carr and seconded by Director Harper to appoint Director Carr and Director Rose to serve on subcommittee with the Town for the purpose of discussing funding options for future fire department capital equipment and infrastructure expenses. Motion carried unanimously. 7. Discussion regarding 50th anniversary of the District. (Carr) Director Carr stated the District is approaching its 50th anniversary and would like to make sure it is publicly recognized. Director Harper and Director Thomas volunteered to assist staff and direction was provided. The Board convened into Executive Session at 7:26 p.m. EXECUTIVE SESSION 8. Pursuant to Section 551. 076 of the Texas Government Code known as the Texas Open Meetings Act, the Board will convene into closed session for the following purpose: to deliberate the deployment of security devices on District-owned properties. The Board reconvened into Regular session at 8:32 p.m. REGULAR SESSION 9. Consider and act regarding item(s) discussed in Executive Session. Motion made by Director Rose and seconded by Director Thomas to authorize the purchase of security equipment and devices as discussed in executive session and authorize the General Manager to secure installation of those devices. Motion carried unanimously FUTURE AGENDA ITEMS 10. Items for future agendas: Director Duties and performance (Rose) District goals (Carr) 11. Next Regular Meeting date – January 15, 2025, at 6:30 p.m. ADJOURN President Carr called the meeting adjourned at 8:35 p.m. January 15, 2025 Regular Meeting Agenda Packet 22 of 106 ___________________________ Kevin R. Carr, President ____________________________ Doug Harper, Secretary/Treasurer (SEAL) ____________________________ Laurie Slaght, District Secretary January 15, 2025 Regular Meeting Agenda Packet 23 of 106 Restricted/ Investment Account Sec Beginning Value Ending Market Unrestricted Type Number Type Yield % 9/30/2024 Deposits Withdrawals Interest 9/30/2024 Maturity Unrestricted- 122 CK XXXX2660 Prosperity Bank Consolidated Cash-Fire Dept 0.35%55,363 339,199 (254,020) - 140,543 N/A Restricted- 122 PF TexPool Municipal Fund-Fire Dept 4.52% 576,838 587,846 (339,199) - 825,484 N/A Unrestricted- 135 CK XXXX2660 Prosperity Bank Consolidated Cash-General Fund 0.35% 5,500,875 3,884,486 (4,090,550) 6,513 5,301,325 N/A Unrestricted- 135 PF XXXXX0002 TexPool Municipal Fund-Operating 4.52% 2,462,580 36,355 (382,863) 92,179 2,208,252 N/A Restricted SA XXXXX7724 Prosperity Bank Cash Reserve- Money Mkt 3.19% 1,998,815 - - 16,626 2,015,442 N/A Restricted- 137 PF TexPool Municipal Fund-GASB Replacement 4.52% 4,866,433 - - - 4,866,433 N/A Restricted- 519 CK XXXX2660 Prosperity Bank Consolidated Cash-Tax SWIFT 0.35%85,052 - - - 85,052 N/A Restricted- 519 PF XXXXX00015 Texpool Revenue Bond Construction-SWIFT 4.52%- - - - - N/A Restricted- 519 ES 82-1747-01-1 Revenue Bond Series 2016 Escrow- BOK 3.19% 854,732 - - 8,338 863,070 Restricted- 520 PF XXXXX00018 Texpool Revenue Bond Construction Series 2019 4.52%- - - - - N/A Restricted- 528 PF XXXXX00014 Texpool Revenue Bond Reserve 4.52% 993,836 - - 11,908 1,005,744 N/A Restricted- 533 CK XXXX2660 Prosperity Bank Consolidated Cash-Tax I&S 0.35%- - - - - N/A Restricted- 533 PF XXXXX0003 TexPool Tax Debt Service 4.52% 102,140 121,484 - 1,497 225,121 N/A Restricted- 534 PF XXXXX00013 Texpool Revenue Bond I&S 4.52%52,955 168,419 - 1,438 222,813 N/A Restricted- 535 PF XXXXX00017 Texpool Revenue Bond I&S-SWIFT 4.52%18,149 75,353 - 577 94,078 N/A Restricted- 536 PF XXXXX00020 Texpool Revenue Bond I&S Series 2019 4.52%12,891 103,497 - 648 117,036 N/A CK Checking 17,580,659$ 5,316,639$ (5,066,631)$ 139,725$ 17,970,392$ MM Money Market PF Pools & Funds SA Savings Accounts ES Escrow/ Treasuries CD Certificate of Deposit Prepared By Regina Van Dyke DATE Investment Officer Alan Fourmentin DATE Investment Policy and the Public Funds Investment Act. Trophy Club Municipal Utility District No. 1 Quarterly Investment Report For Ending Period 12/31/2024 (October, November, December) I certify that this Investment Report complies with requirements of the District's January 15, 2025 Regular Meeting Agenda Packet 24 of 106 WHEN EXPERIENCE, REPUTATION AND PERFORMANCE MATTER COLLECTION REPORT TO THE TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 Submitted by: Andrew Brink 6301 Preston Road, Suite 700 Plano, Texas 75024 www.pbfcm.com January 2025 January 15, 2025 Regular Meeting Agenda Packet 25 of 106 •$1,623,338Original Tax Levy •$19,432 •1.20% Adj. Delinquent July 1, 2024 Turnover Collected Delinquent 98.80%1.20% 2023 TAX YEAR ANALYSIS Delinquent Turnover Source: Denton County Tax Office, Year-To-Date Summary Reports. Perdue Brandon Fielder Collins & Mott, LLP 2 January 15, 2025 Regular Meeting Agenda Packet 26 of 106 Base Tax Only – No Penalties or Interest Added •$19,432Adj. July 1 Turnover •$16,748 •86.19% Base Tax Collected •$2,684Base Tax Remaining 2023 TAX YEAR –DELINQUENT COLLECTIONS July 1, 2024 –December 31, 2024 Source: Denton County Tax Office, Year-To-Date Summary Reports. Turnover Accounts for Adjustments. Base Taxes Only - No Penalties or Interest Added. Perdue Brandon Fielder Collins & Mott, LLP 3 January 15, 2025 Regular Meeting Agenda Packet 27 of 106 ACCOUNT BREAKDOWN CHART 4Action Pending Accounts: Notification Letters, Telephone Collections, Lienholder Notification, Title Research, Property Inspection and Payment Agreements. Source: Perdue Brandon tape download on 6/29/2024 from the Denton County Tax Office. As of 1/3/2025 - Total Base Tax: $14,447 (2023 Tax Year & Prior) January 15, 2025 Regular Meeting Agenda Packet 28 of 106 Description # Properties Pct Of Total Base Tax Amount Pct Of Total In Bankruptcy 2 3.17%$123.83 0.86% In Deferral 4 6.35%$8,427.32 58.33% In Litigation 5 7.94%$1,560.13 10.80% In Uncollectable 16 25.40%$1,558.21 10.79% Action Pending 36 57.14%$2,778.27 19.23% Totals 63 100.00%$14,447.76 100.00% Dollar Range # Properties Pct Of Total Base Tax Amount Pct Of Total $0.01 - $100.00 41 69.49%$548.63 3.80% $100.01 - $250.00 8 13.56%$1,437.15 9.95% $250.01 - $500.00 6 10.17%$2,014.44 13.94% $500.01 - $1000.00 1 1.69%$597.63 4.14% $1000.01 - $2500.00 1 1.69%$2,020.40 13.98% $2500.01 - $5000.00 1 1.69%$2,643.44 18.30% $5000.01 - $10,000.00 1 1.69%$5,186.07 35.90% Totals 59 100.00%$14,447.76 100.00% Year # Transaction Pct Of Total Base Tax Amount Pct Of Total 2010 1 0.80%$414.60 2.87% 2011 1 0.80%$378.65 2.62% 2012 1 0.80%$295.79 2.05% 2013 4 3.20%$705.89 4.89% 2014 8 6.40%$857.40 5.93% 2015 10 8.00%$502.72 3.48% 2016 6 4.80%$485.70 3.36% 2017 8 6.40%$865.42 5.99% 2018 8 6.40%$1,283.95 8.89% 2019 10 8.00%$1,400.46 9.69% 2020 10 8.00%$1,265.72 8.76% 2021 13 10.40%$1,583.77 10.96% 2022 14 11.20%$1,604.42 11.10% 2023 31 24.80%$2,803.27 19.40% Totals 125 100.00%$14,447.76 100.00% AUTHORITY ACTIVITY ANALYSIS TROPHY CLUB MUNICIPAL UTILITY DISTRICT #1 As Of 1/2/2025, Tax Years Between 1997 And 2023 **Number of properties may differ in the first two sections because a property may reside in more than one category in the first section. January 15, 2025 Regular Meeting Agenda Packet 29 of 106 GEO Code D Primary Phone Tax Due N/A $4,864.02 D Primary Phone Tax Due N/A $2,332.99 L Primary Phone Tax Due N/A $1,796.51 Primary Phone Tax Due N/A $455.51 D Primary Phone Tax Due N/A $337.04 L Primary Phone Tax Due N/A $310.41 L Primary Phone Tax Due N/A $297.77 Primary Phone Tax Due N/A $297.12 L Primary Phone Tax Due N/A $218.76 Primary Phone Tax Due N/A $171.12 L Primary Phone Tax Due N/A $139.49 B Primary Phone Tax Due N/A $122.63 Primary Phone Tax Due N/A $45.93 Primary Phone Tax Due N/A $37.36 Primary Phone Tax Due N/A $36.66 Primary Phone Tax Due N/A $35.18 Primary Phone Tax Due N/A $20.53 Primary Phone Tax Due N/A $20.41 Primary Phone Tax Due N/A $20.23 Primary Phone Tax Due N/A $18.50 Primary Phone Tax Due N/A $14.43 Primary Phone Tax Due N/A $12.32 Primary Phone Tax Due N/A $9.1591664TABER JOHN K 2020 $16.91 701746DEN PERSONAL PROPERTY - SPECIAL TRADE CONTRACTORS: 99 TROPHY CLUB DR TROPHY CLUB <none> 72303DEN TROPHY CLUB # 6 LOT 528 ACRES: 0.266100 <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91068 HEART TEST LABORATORIES INC 2017-2019 $26.34 91619 7 MILES TASTE GROUP INC 2019 $29.78 13442112TAR HEART TEST LABORATORIES PERSONAL PROPERTY TANGIBLE COMMERCIAL UP 682747DEN PERSONAL PROPERTY - RESTAURANT LOCATION: 301 TROPHY LAKE DR STE 116 TROPHY CLUB UP Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91433 MILLER CRAIG 2019-2022 $34.40 1711 STYLES OF INDIA 2015-2016 $51.84 723199DEN PERSONAL PROPERTY - INSURANCE AGENT LOCATION: 2101 SH 114 STE B TROPHY CLUB <none> 563646DEN PERSONAL PROPERTY - MISC PERSONAL SERVICE LOCATION: 2003 SH 114 STE 340 TROPHY CLUB UP Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 92190 RUTLEDGE SHANNON AND GARNER KASIE 2022 $33.31 90858 FULLER CHRISTINA 2020-2022 $36.62 14689532TAR CROSSFIT SPT PERSONAL PROPERTY TANGIBLE COMMERCIAL <none> 676479DEN PERSONAL PROPERTY - DANCE & MUSIC LESSONS LOCATION: 905 TROPHY CLUB DR STE 204A TROPHY CLUB <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 1730 EARCARE HEARING AIDS 2014-2015 $95.20 92920 DYNAMIC ACTION INC 2021 $65.11 633172DEN PERSONAL PROPERTY - AUDIOLOGISTS LOCATION: 501 TROPHY LAKE DR, STE 318, TROPHY CLUB UP 14318755TAR DYNAMIC ACTION PERSONAL PROPERTY TANGIBLE COMMERCIAL <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91517 FUSE ENERGY LLC 2021-2022 $64.85 1164 WALJI SHANIF M 2014-2015 $124.28 14265180TAR FUSE ENERGY LLC PERSONAL PROPERTY TANGIBLE COMMERCIAL <none> 336817DEN PERSONAL PROPERTY - DRY CLEANERS DROP OFF LOCATION : 2003 SH 114 STE 390, TROPHY CLUB UP Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 1219 BINGHAM GENE C 2021 $217.79 90856 J.A.E.H.K. INC 2018-2021 $277.65 72034DEN TROPHY CLUB # 4 LOT 333 ACRES: 0.361600 <none>,BKR,EMP 676474DEN PERSONAL PROPERTY - DRY CLEANERS LOCATION: 2003 SH 114 STE 390 TROPHY CLUB <none>,SUIT Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 93256 MAYA WALDEMAR 2021-2022 $292.50 759 MORRISON AVIATION LLC 2014-2021 $503.24 42641576TAR KNOLLS AT SOLANA BLOCK B LOT 23 ACRES: 0.247900 <none> 339971DEN PERSONAL PROPERTY - AIRCRAFT CESSNA 150L 1972-N5428Q LOCATION : NORTHWEST REGIONAL AIRPORT L-52F SUIT Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 58 WEINBERGER DELI TWO LLC 2016-2019 $661.81 1242 FORD LESLIE 2013-2017 $778.19 11514205TAR WEINBERGERS DELICATESSEN PERSONAL PROPERTY TANGIBLE COMMERCIAL <none>,SUIT,UP 926478DEN PERSONAL PROPERTY - CHIROPRACTOR LOCATION : 100 TROPHY CLUB DR. STE 108 TROPHY CLUB <none>,SUIT,UP Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 1560 BURGAR BRANDON 2013-2014 $884.50 93245 PARKER CHARLES J AND PARKER SYLVIA A 2022 $369.33 620602DEN PERSONAL PROPERTY - DENTIST OFFICE LOCAITON : 301 TROPHY LAKE DR STE 120, TROPHY CLUB <none>,SUIT 40758281TAR TROPHY CLUB # 9 LOT 723 ACRES: 0.236200 DEFE Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 59 SUMMERS, JAMES M 2013-2014 $1,299.37 90829 MEMBERS ONLY DENTAL PA 2018-2022 $3,455.77 11514221TAR DIEGO'S TEX MEX KITCHEN PERSONAL PROPERTY TANGIBLE COMMERCIAL BKR,SUIT,UP 650109DEN PERSONAL PROPERTY - DENTIST LOCATION: 925 TROPHY CLUB DR TROPHY CLUB <none>,UP Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91176 PARROW JAMES J & ELENA 2017-2022 $2,832.08 968 BOREN BENJAMIN C & BEVERLY C 2010-2022 $7,020.98 71779DEN TROPHY CLUB # 2 LOT 77 ACRES: 0.253600 DEFE 71012DEN TROPHY CLUB #10 LOT 1219 ACRES: 0.235000 DEFE Taxpayer # Taxpayer Name Years Total Due Top Tax Due Report Top 100 Percent Properties - TROPHY CLUB MUNICIPAL UTILITY DISTRICT #1 Legal Description Status LPBD 1/2/2025 12:04:49 PM Page 1 January 15, 2025 Regular Meeting Agenda Packet 30 of 106 Primary Phone Tax Due N/A $6.51 Primary Phone Tax Due N/A $4.85 Primary Phone Tax Due N/A $4.31 Primary Phone Tax Due N/A $3.61 Primary Phone Tax Due N/A $2.76 Primary Phone Tax Due N/A $2.21 Primary Phone Tax Due N/A $1.98 Primary Phone Tax Due N/A $1.49 Primary Phone Tax Due N/A $0.95 Primary Phone Tax Due N/A $0.68 Primary Phone Tax Due N/A $0.61 Primary Phone Tax Due N/A $0.19 Primary Phone Tax Due N/A $0.15 Primary Phone Tax Due N/A $0.07 Primary Phone Tax Due N/A $0.04 Primary Phone Tax Due N/A $0.0190912RUANGSKUL VERONICA IND EXECUTOR FOR BOWO 2022 $0.02 70726DEN TROPHY CLUB #11 LOT 1467 ACRES: 0.293800 <none>,DEFE,QPAY Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91049 NEOPOST USA INC 2015 $0.10 1638 NATIONAL DEFAULT TITLE SERVICE 2017 $0.16 14448870TAR NEOPOST USA INC VARX COMMERCIAL UP 13661787TAR NATIONAL DEFAULT TITLE PERSONAL PROPERTY TANGIBLE COMMERCIAL UP Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 1290 SONIFI SOLUTIONS INC 2015 $0.36 91351 JJP TREVI LLC 2018 $0.42 14381350TAR SONIFI SOLUTIONS INC VARX COMMERCIAL UP 42345560TAR WESTLAKE ENTRADA BLOCK I LOT 13 REF PLAT D218192054 <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91207 DELL MARKETING LP 2016 $1.43 298 NORTHERN LEASING SYSTEMS INC 2020 $1.31 14461451TAR DELL MARKETING LP VARX COMMERCIAL UP 314763DEN PERSONAL PROPERTY - LEASED EQUIPMENT <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91387 TRUE MEDICINE PA 2022 $1.55 93915 CARDTRONICS USA INC 2022 $2.43 676477DEN PERSONAL PROPERTY - MEDICAL OFFICE LOCATION: 300 TROPHY CLUB DR STE 300 TROPHY CLUB <none> 14881042TAR CARDTRONICS USA INC VARX COMMERCIAL <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 92609 FOLEY BEVERLY 2020-2021 $3.66 90855 THE FORCE BY LUKE 2022 $3.61 727270DEN PERSONAL PROPERTY - INSURANCE OFFICE LOCATION: 99 TROPHY CLUB DR TROPHY CLUB <none> 676473DEN PERSONAL PROPERTY - PERSONAL TRAINER SERVICES LOCATION: 2003 SH 114 STE 90 TROPHY CLUB <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 90303 RANDSTAD US LP 2014-2015 $7.35 90372 RAY DERSTEIN 2015 $9.53 13730967TAR RANDSTAD RANDSTAD US LP PERSONAL PROPERTY TANGIBLE COMMERCIAL UP 659398DEN PERSONAL PROPERTY - BUSINESS SERVICES LOCATION: 99 TROPHY CLUB DR, TROPHY CLUB UP Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91389 SMITH CLINICAL SERVICES PLLC 2019 $8.90 91141 CHIP MUNDY INC 2017 $11.41 679913DEN PERSONAL PROPERTY - OFFICE LOCATION: 99 TROPHY CLUB DR TROPHY CLUB <none> 659388DEN PERSONAL PROPERTY - BUSINESS SERVICES LOCATION: 99 TROPHY CLUB DR TROPHY CLUB UP Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 93483 GRAY CAROL 2021-2022 $11.13 1/2/2025 12:04:49 PM Page 2 January 15, 2025 Regular Meeting Agenda Packet 31 of 106 GEO Code Primary Phone Tax Due N/A $399.46 D Primary Phone Tax Due N/A $322.05 D Primary Phone Tax Due N/A $310.45 D Primary Phone Tax Due N/A $260.59 Primary Phone Tax Due N/A $241.49 Primary Phone Tax Due N/A $228.41 L Primary Phone Tax Due N/A $223.89 Primary Phone Tax Due N/A $223.34 Primary Phone Tax Due N/A $148.96 Primary Phone Tax Due N/A $114.07 Primary Phone Tax Due N/A $96.95 Primary Phone Tax Due N/A $83.05 Primary Phone Tax Due N/A $43.80 Primary Phone Tax Due N/A $32.64 Primary Phone Tax Due N/A $24.39 Primary Phone Tax Due N/A $14.26 Primary Phone Tax Due $8.55 Primary Phone Tax Due $7.07 Primary Phone Tax Due N/A $4.30 Primary Phone Tax Due N/A $3.64 Primary Phone Tax Due N/A $3.61 Primary Phone Tax Due N/A $2.83 Primary Phone Tax Due N/A $2.1093483GRAY CAROL 2023 $3.12 701746DEN PERSONAL PROPERTY - SPECIAL TRADE CONTRACTORS: 99 TROPHY CLUB DR TROPHY CLUB <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91433 MILLER CRAIG 2023 $4.21 90855 THE FORCE BY LUKE 2023 $5.37 723199DEN PERSONAL PROPERTY - INSURANCE AGENT LOCATION: 2101 SH 114 STE B TROPHY CLUB <none> 676473DEN PERSONAL PROPERTY - PERSONAL TRAINER SERVICES LOCATION: 2003 SH 114 STE 90 TROPHY CLUB <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91517 FUSE ENERGY LLC 2023 $5.42 90858 FULLER CHRISTINA 2023 $6.40 14265180TAR FUSE ENERGY LLC PERSONAL PROPERTY TANGIBLE COMMERCIAL <none> 676479DEN PERSONAL PROPERTY - DANCE & MUSIC LESSONS LOCATION: 905 TROPHY CLUB DR STE 204A TROPHY CLUB <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 94625 THE COCA-COLA COMPANY 2023 $10.27 94609 HUNTINGTON NATIONAL BANK (EQUIPMENT FINA 2023 $12.52 943797DEN PERSONAL PROPERTY - LEASED EQUIPMENT - S11 <none> 1028287DEN PERSONAL PROPERTY - LEASED EQUIPMENT - S11 <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 92190 RUTLEDGE SHANNON AND GARNER KASIE 2023 $21.22 94325 TXRE PROPERTIES 2023 $36.29 14689532TAR CROSSFIT SPT PERSONAL PROPERTY TANGIBLE COMMERCIAL <none> 14924281TAR TXRE PROPERTIES PERSONAL PROPERTY TANGIBLE COMMERCIAL <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 94240 PREMIER MARTIAL ARTS TROPHY CLUB 2023 $48.57 92381 AMR WESTLAKE STORAGE OWNER LLC 2023 $65.17 1010181DEN PERSONAL PROPERTY - MARTIAL ARTS SCHOOL LOCATION: 2550 BOBCAT BLVD. 103 TROPHY CLUB <none> 42616725TAR WESTLAKE ENTRADA BLOCK C LOT 1B SCHOOL BOUNDARY SPLIT ACRES: 0.197000 <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 93256 MAYA WALDEMAR 2023 $123.58 94633 MRW INVESTORS LLC 2023 $144.26 42641576TAR KNOLLS AT SOLANA BLOCK B LOT 23 ACRES: 0.247900 <none> 42400404TAR WESTLAKE ENTRADA BLOCK C LOT 1A SCHOOL BOUNDARY SPLIT ACRES: 0.436000 <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 92381 AMR WESTLAKE STORAGE OWNER LLC 2023 $169.74 94516 BARRON ALEJANDRA 2023 $221.65 42616733TAR WESTLAKE ENTRADA BLOCK C LOT 1B SCHOOL BOUNDARY SPLIT ACRES: 0.513000 <none> 71202DEN TROPHY CLUB VILLAGE WEST SEC A LOT 893 ACRES: 0.206600 TPAY Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 94431 1 TIM 617 LLC 2023 $332.33 90829 MEMBERS ONLY DENTAL PA 2023 $333.15 42894164TAR WESTLAKE ENTRADA BLOCK G LOT 1R2 ACRES: 0.168000 <none> 650109DEN PERSONAL PROPERTY - DENTIST LOCATION: 925 TROPHY CLUB DR TROPHY CLUB <none>,UP Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 94416 JOHNSON CLAIR G 2023 $339.87 94633 MRW INVESTORS LLC 2023 $359.34 40758001TAR TROPHY CLUB # 3 LOT 254 BALANCE IN DENTON CO ACRES: 0.477400 <none> 42402369TAR WESTLAKE ENTRADA BLOCK C LOT 1A SCHOOL BOUNDARY SPLIT ACRES: 1.086000 <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 93245 PARKER CHARLES J AND PARKER SYLVIA A 2023 $272.53 91176 PARROW JAMES J & ELENA 2023 $324.67 40758281TAR TROPHY CLUB # 9 LOT 723 ACRES: 0.236200 DEFE 71779DEN TROPHY CLUB # 2 LOT 77 ACRES: 0.253600 DEFE Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 968 BOREN BENJAMIN C & BEVERLY C 2023 $336.80 895 SEAY MARK SR & TERRI 2023 $594.40 71012DEN TROPHY CLUB #10 LOT 1219 ACRES: 0.235000 DEFE 526096DEN CHURCHILL DOWNS BLK A LOT 1 ACRES: 0.258300 <none>,EMP,PPAY,TPAY Taxpayer # Taxpayer Name Years Total Due Top Tax Due Report Top 100 Percent Properties - TROPHY CLUB MUNICIPAL UTILITY DISTRICT #1 Legal Description Status LPBD 1/2/2025 12:03:04 PM Page 1 January 15, 2025 Regular Meeting Agenda Packet 32 of 106 Primary Phone Tax Due N/A $1.75 B Primary Phone Tax Due N/A $1.20 D Primary Phone Tax Due N/A $0.18 Primary Phone Tax Due N/A $0.16 Primary Phone Tax Due N/A $0.03 Primary Phone Tax Due N/A $0.03 Primary Phone Tax Due N/A $0.01 Primary Phone Tax Due N/A $0.011585HALL TERRY & TAEKO 2023 $0.01 72180DEN TROPHY CLUB # 3 LOT 154 ACRES: 0.520600 <none>,QPAY Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 90911 MOREY BRUCE 2023 $0.01 90794 LHK HOLDINGS LLC 2023 $0.04 70685DEN TROPHY CLUB #11 LOT 1455 ACRES: 0.325100 <none>,QPAY 536970DEN PERSONAL PROPERTY - CHIROPRACTIC OFFICE LOCATION: 501 TROPHY LAKE DR STE 322 TROPHY CLUB <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91663 STAFFEL CARL ALLEN & DESIREE J 2023 $0.04 94326 GKN AEROSPACE 2023 $0.24 72301DEN TROPHY CLUB # 3 LOT 176 ACRES: 0.350400 <none>,DEFE,QPAY 14924302TAR GKN AEROSPACE PERSONAL PROPERTY TANGIBLE COMMERCIAL <none> Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 91487 HICKS JAMES O 2023 $0.18 94223 REDBOX AUTOMATED RETAIL LLC 2023 $1.79 72496DEN TROPHY CLUB # 6 LOT 545 ACRES: 0.284400 DEFE,QPAY 1030803DEN PERSONAL PROPERTY - LEASED EQUIPMENT - S11 BKR Taxpayer # Taxpayer Name Years Total Due Taxpayer # Taxpayer Name Years Total Due 92936 NTT DATA SERVICES LLC 2023 $2.52 14635955TAR NTT DATA SERVICES LLC VARX COMMERCIAL <none> 1/2/2025 12:03:04 PM Page 2 January 15, 2025 Regular Meeting Agenda Packet 33 of 106 TP #Taxpayer Name Base Due 93245 GEO Code Client Name Tax Year Tran Type Start Date Condition Base Tax 40758281TAR 2022 TAX 12/06/2021 Defer $337.04 40758281TAR 2023 TAX 12/06/2021 Defer $260.59 $597.63 $597.63 968 GEO Code Client Name Tax Year Tran Type Start Date Condition Base Tax 71012DEN 2010 TAX 06/30/2010 Defer $414.60 71012DEN 2011 TAX 06/30/2010 Defer $378.65 71012DEN 2012 TAX 06/30/2010 Defer $295.79 71012DEN 2013 TAX 06/30/2010 Defer $300.56 71012DEN 2014 TAX 06/30/2010 Defer $325.30 71012DEN 2015 TAX 06/30/2010 Defer $355.07 71012DEN 2016 TAX 06/30/2010 Defer $367.89 71012DEN 2017 TAX 06/30/2010 Defer $385.38 71012DEN 2018 TAX 06/30/2010 Defer $380.30 71012DEN 2019 TAX 06/30/2010 Defer $404.59 71012DEN 2020 TAX 06/30/2010 Defer $401.84 71012DEN 2021 TAX 06/30/2010 Defer $437.04 71012DEN 2022 TAX 06/30/2010 Defer $417.01 71012DEN 2023 TAX 06/30/2010 Defer $322.05 $5,186.07 $5,186.07 91176 GEO Code Client Name Tax Year Tran Type Start Date Condition Base Tax 71779DEN 2017 TAX 11/03/2017 Defer $276.37 71779DEN 2018 TAX 11/03/2017 Defer $412.53 71779DEN 2019 TAX 11/03/2017 Defer $416.50 71779DEN 2020 TAX 11/03/2017 Defer $404.55 71779DEN 2021 TAX 11/03/2017 Defer $421.13 71779DEN 2022 TAX 11/03/2017 Defer $401.91 71779DEN 2023 TAX 11/03/2017 Defer $310.45 $2,643.44 $2,643.44 91487 GEO Code Client Name Tax Year Tran Type Start Date Condition Base Tax 72496DEN 2023 TAX 12/03/2020 Defer $0.18 $0.18 $0.18 TROPHY CLUB MUNICIPAL UTILITY DISTRICT #1 Defer $8,427.32 Taxpayer Base Due Total Base Due $8,427.32 Trophy Club MUD 1 DEFE 12/01/2099 Property Base Due Taxpayer Base Due HICKS JAMES O Status End Date Trophy Club MUD 1 DEFE 12/01/2099 Property Base Due Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 PARROW JAMES J & ELENA Status End Date Property Base Due Taxpayer Base Due Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 BOREN BENJAMIN C & BEVERLY C Status End Date Property Base Due Taxpayer Base Due Trophy Club MUD 1 DEFE 12/01/2099 Trophy Club MUD 1 DEFE 12/01/2099 PARKER CHARLES J AND PARKER SYLVIA A Status End Date Deferral Detail Report Locator: Denton Tax Clients: Trophy Club MUD 1 1/2/2025 11:59:47 AM Page 1 of 1 January 15, 2025 Regular Meeting Agenda Packet 34 of 106 553 Ridgewood Dr. Van Alstyne, TX. 75495 (214) 856-9603 rodabbottcpa@hotmail.com Rod L. Abbott, CPA PLLC Certified Public Accountant January 15, 2025 To the Board of Directors of Trophy Club Municipal Utility District No. 1 Trophy Club, Texas I have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Trophy Club Municipal Utility District No. 1 (the “District”) for the year ended September 30, 2024. Professional standards require that I provide you with information about my responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of my audit. I have communicated such information in my letter to you dated July 15, 2022. Professional standards also require that I communicate to you the following information related to my audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the District are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended September 30, 2024. I noted no transactions entered into by the District during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the government-wide financial statements was: Management’s estimate of the useful lives of long-term assets for which to base depreciation expense. The District’s estimates are based on prior experience with actual useful lives performance for District infrastructure, equipment, and other assets. I evaluated the key factors and assumptions used to develop the useful lives estimates in determining that they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit I encountered no significant difficulties in dealing with management in performing and completing my audit. Corrected and Uncorrected Misstatements Professional standards require me to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all material and immaterial misstatements as shown at Attachment 1. RLA January 15, 2025 Regular Meeting Agenda Packet 35 of 106 553 Ridgewood Dr. Van Alstyne, TX. 75495 (214) 856-9603 rodabbottcpa@hotmail.com Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to my satisfaction, that could be significant to the financial statements or the auditor’s report. I am pleased to report that no such disagreements arose during the course of my audit. Management Representations I have requested certain representations from management that are included in the management representation letter dated January 15, 2025. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the District’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, my professional standards require the consulting accountant to check with me to determine that the consultant has all the relevant facts. T o my knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues I generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the District’s auditor. However, these discussions occurred in the normal course of my professional relationship and my responses were not a condition to my retention. Other Matters I applied certain limited procedures to management’s discussion and analysis, the General Fund’s budget versus actual schedule, and the TCDRS pension and OPEB schedules, which are required supplementary information (RSI) that supplements the basic financial statements. My procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. I was engaged to report on the individual schedules and other supplementary information required by the Texas Commission on Environmental Quality, which accompany the financial statements, but are not RSI. With respect to this supplementary information, I made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to my audit of the financial statements. I compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Restriction on Use This information is intended solely for the information and use of the Board of Directors and management of Trophy Club Municipal Utility District No. 1 and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Rod L. Abbott, CPA PLLC January 15, 2025 Regular Meeting Agenda Packet 36 of 106 ATTACHMENT 1 AJE#DESCRIPTION DEBIT CREDIT AJE #1 316-26100-000-000 Net Pension Liability 118,869 316-16100-000-000 Deferred Outflows of Resources - TCDRS Pension Contributions 660 316-16102-000-000 Deferred Outflows of Resources - Change in Pension Assumptions 22,615 316-16103-000-000 Deferred Inflows of Resources - Pension Diff. in Projected/Actual Earnings 60,321 316-16101-000-000 Deferred Inflows of Resources - PensionDiff. in Expected/Actual Experience 48,504 316-16104-000-000 Deferred Outflows of Resources - Diff. in Expected/Actual Experience 2,936 316-16000-000-000 Amount to be Provided 82,161 168,033 168,033 TO PROPERLY UPDATE PENSION BALANCES IN THE L-T DEBT ACCOUNT GROUP. AJE #2 316-26110-000-000 Total OPEB SDBF Liability-Asset 7,519 316-16110-000-000 Deferred TCDRS OPEB Subseq Contributions 179 316-16112-000-000 Deferred Outflows- Difference in Assumptions OPEB 477 316-16113-000-000 Deferred Inflows - Difference in Assumptions OPEB 2,010 316-16111-000-000 Deferred Expected/Actual OPEB 3,340 316-26015-000-000 Capital Leases 265 316-16000-000-000 Amount to be Provided 1,606 7,698 7,698 TO PROPERLY UPDATE OTHER POST-EMPLOYMENT BENEFIT BALANCES IN THE L-T DEBT ACCOUNT GROUP. AJE #3 316-16000-000-000 Amount to be Provided 11,289 316-26020-000-000 Compensated Absences 11,289 11,289 11,289 TO UPDATE THE VACATION TIME LIABILITY BALANCE IN THE L-T DEBT ACCOUNT GROUP. AJE #4 135-000-20070-000 Retainage Payable 132,098 135-69005-010-000 Capital Outlays 132,098 136-15065-000-000 Construction in Progress 132,098 136-33005-000-000 Investment in Gen Fixed Assets 132,098 264,196 264,196 TO RECORD RETAINAGE AT FISCAL YEAR-END 2024. AJE #5 519-31100-000-000 Assigned Fund Balance 81,691 519-49900-000-000 Miscellaneous Income (new)3,361 519-69005-010-000 Capital Outlays 85,052 85,052 85,052 TO PROPERLY STATE CAPITAL OUTLAYS FOR THE CAPITAL PROJECTS FUND. AJE #6 135-000-10996-000 Claim On Cash 22,596 135-20200-000-000 Accrued Payroll 22,596 22,596 22,596 TO PROPERLY STATE WAGES PAYABLE AT FISCAL YEAR-END 2024. AJE #7 135-31070-000-000 Non-spendable Fund Balance 1,250 135-31100-000-000 Assigned Fund Balance 4,569,047 135-31110-000-000 Unassigned Fund Balance 4,567,797 137-31110-000-000 Unassigned Fund Balance 537,542 137-32111-000-000 Assigned/Water Replacement 920,912 137-32113-000-000 Assigned/Sewer Replacement 383,370 5,489,959 5,489,959 ADJUSTMENT PROVIDED BY CLIENT TO UPDATE ASSIGNED FUND BALANCES. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ADJUSTING AUDIT ENTRIES FOR THE YEAR ENDED SEPTEMBER 30, 2024 January 15, 2025 Regular Meeting Agenda Packet 37 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1 AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 January 15, 2025 Regular Meeting Agenda Packet 38 of 106 ANNUAL FILING AFFIDAVIT THE STATE OF T EXAS } 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 15th day of January 2025, its annual audit report for the fiscal year or period ended September 30, 2024 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 15 , 20 25 . By: (Signature of District Representative) Kevin R. Carr, President, Board of Directors (Typed Name & Title) Sworn to and subscribed to before me this day of ____________, 20 . (SEAL) (signature of notary) My Commission Expires On: , 20 . Notary Public in and for the State of Texas January 15, 2025 Regular Meeting Agenda Packet 39 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1 AUDITED FINANCIAL STATEMENTS TABLE OF CONTENTS Independent Auditor's Report……………………………………………………………….l 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 January 15, 2025 Regular Meeting Agenda Packet 40 of 106 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 January 15, 2025 Regular Meeting Agenda Packet 41 of 106 553 Ridgewood Dr. Van Alstyne, TX. 75495 (214) 856-9603 rodabbottcpa@hotmail.com Rod L. Abbott, CPA PLLC Certified Public Accountant INDEPENDENT AUDITOR’S REPORT To the Board of Directors of 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, 2024, 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, 2024, 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 RLA January 15, 2025 Regular Meeting Agenda Packet 42 of 106 553 Ridgewood Dr. Van Alstyne, TX. 75495 (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 January 15, 2025 Regular Meeting Agenda Packet 43 of 106 553 Ridgewood Dr. Van Alstyne, TX. 75495 (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 Van Alstyne, Texas January 15, 2025 3 January 15, 2025 Regular Meeting Agenda Packet 44 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 4 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, 2024. 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 $46,694,490 (net position). Of this amount, $15,468,690 is unrestricted net position and may be used to meet the District's ongoing commitments. • The District's net position increased by $3,375,340 during 2024 on the Statement of Activities. The Statement of Activities is on the full-accrual basis of accounting, which capitalizes the $4,835,000 of capital outlays that are expensed on the fund financial statements. This capitalization of new long-term assets is the main reason for the healthy 7.8% increase in net position in 2024. • At the end of the fiscal year, the District's governmental type funds reported a combined fund balance of $17,102,140. As of September 30, 2024, the unassigned fund balance of the General Fund was $8,733,510. The unassigned fund balance is equal to 8.3 months of 2024 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. January 15, 2025 Regular Meeting Agenda Packet 45 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 5 Overview of the Financial Statements - Continued Fund Financial Statements - Fund financial statements provide detailed information about the most important funds and not about the District as a whole as in the government-wide financial statements. The District uses fund accounting to demonstrate compliance with finance related legal requirements which can be categorized as governmental fund activities. Governmental Funds - All of the District's activities are reported in governmental funds. They are used to account for those functions known as governmental activities. But unlike government-wide financial statements, governmental fund financial statements focus on how monies flow into and out of those funds and their resulting balances at the end of the fiscal year. Statements of governmental funds provide a detailed short-term view of the District's general government operations and the basic services it provides. Such information can be useful in evaluating a government's short-term financing requirements. The District maintains three governmental funds. Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Debt Service Fund and Capital Projects Fund. The District adopts an annual appropriated budget for the General Fund. A budgetary comparison statement is provided for the General Fund to demonstrate compliance with its budget. Notes to the Basic Financial Statements - The notes provide additional information that is essential to a full understanding of the data presented in the government-wide and fund financial statements. Government-wide Financial Analysis The Management's Discussion and Analysis highlights the information provided in both the Statement of Net Position and Statement of Activities in the government-wide financial statements. It may serve over an extended period of time, as a useful indicator of the District's financial position. At the end of the fiscal year, the District's assets and deferred outflows exceeded liabilities and deferred inflows by $46,694,490. Of this amount, $30,127,934 (65%) 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, $1,097,867 (2%) restricted for debt service and capital projects, and the remaining $15,468,690 (33%) is unrestricted. Governmental activities have increased the District's net position by $3,375,340, which amounts to a 7.8% increase in net position for the year ended September 30, 2024. January 15, 2025 Regular Meeting Agenda Packet 46 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 6 Government-wide Financial Analysis – Continued District operational analysis - The following table provides a summary analysis of the District's Statements of Net Position for the fiscal years ending on September 30, 2024 and 2023. Table 1 Condensed Statements of Net Position FY24 FY23 Current and other assets 19,379,240$ 18,827,852$ Capital assets 48,888,256 46,164,516 Total assets 68,267,496 64,992,368 Deferred outflows of resources 236,244 321,158 Long-term liabilities 20,861,156 20,861,156 Other liabilities 840,322 1,053,284 Total liabilities 21,701,478 21,914,440 Deferred inflows of resources 107,772 161,626 Net position: Net investment in capital assets 30,127,934 27,323,898 Restricted 1,097,867 1,003,815 Unrestricted 15,468,690 14,909,747 Total net position 46,694,490$ 43,237,459$ Governmental Activities January 15, 2025 Regular Meeting Agenda Packet 47 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 7 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 end ing on September 30, 2024 and 2023. Table 2 Condensed Statements of Activities FY24 FY23 Revenues: Program Revenues: Charges for services 11,144,460$ 11,973,510$ Operating grants and contributions - - Capital grants and contributions - - General Revenues: Property taxes 1,625,152 2,047,252 Other unrestricted contributions 145,031 151,357 Investment income 675,135 573,996 Gain on sold assets 51,450 103,373 Other 71,692 17,432 13,712,919 14,866,920 Expenses: Water 4,110,091 4,621,529 Wastewater 2,530,521 2,706,051 Administration 1,655,338 1,544,270 Fire protection 1,399,134 1,157,569 Non-departmental and Board 79,562 71,379 Interest on long-term debt 562,933 603,112 10,337,579 10,703,910 Excess (deficiency) of revenues over expenditures before transfers 3,375,340 4,163,010 Transfers In (Out)- - Increase in net position 3,375,340 4,163,010 Net position - October 1 43,237,459 39,074,449 Prior period adjustments 81,691 - Net position - September 30 46,694,490$ 43,237,459$ Governmental Activities January 15, 2025 Regular Meeting Agenda Packet 48 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 8 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 infor mation 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 $1 7,102,140, of which 51%, or $8,733,510, is unassigned and available to the District for future spending. General Fund budgetary highlights The District’s General Fund budget versus actual schedule is presented on page 36. Revenue: Revenues were $707,305 (5.6%) more than budgeted • Investment earnings totaled $521,771 and were $371,771 (248%) more than budgeted. Expenditures: Expenditures were $1,094,113 (8.0%) less than budgeted • Capital Outlay expenditures were $415,000 (7.9%) less than budgeted. • Water Operations were $436,085 (10.8%) less than budgeted. • Wastewater operations expenditures were $223,666 (15.3%) less than budgeted. Capital Assets The District's investment in capital assets for its governmental activities as of September 30, 2024 amounted to $48,888,256, 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 $2,723,740 or 5.9% during 2024 primarily due to over $4 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. January 15, 2025 Regular Meeting Agenda Packet 49 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 9 Debt administration Long-Term Debt - at the end of the current fiscal year, the District had $19,490,000 of outstanding general obligation bonds and revenue bonds, which is a decrease of 6.1% from the previous fiscal year due to $1,257,398 of 2024 principal payments. All 2024 debt service requirements were met and the District did not issue any new debt during fiscal year 2024. Economic factors and next year's budgets and rates: General Fund 2024 - 2025 budgetary highlights: Revenue: The 2025 General Fund budgeted revenues for the District reflect a projected decrease of $1,183,578, or 8.21%, when compared to the adopted 2024 budget. • Water revenue is budgeted to decrease from $6,939,998 for fiscal year 2024 to $6,925,430 for fiscal year 2025 for a total of $14,568. • Sewer revenue is budgeted to increase from $3,679,786 for fiscal year 2024 to $3,773,500 for fiscal year 2025 for a total of $93,714. • The District’s M&O tax rate decreased from fiscal year 2024 to fiscal year 2025. The fiscal year 2025 segregated M&O property tax revenue is budgeted to increase by $73,083 for Fire and decrease by $114 for the MUD when compared to 2024. Expenses: The 2025 General Fund budgeted expenses for the District reflect a projected decrease of $1,199,713, or 8.32%, when compared to the 2024 adopted budget. • Wholesale water expenses from the City of Fort Worth increased by $102,063, or 3.85%, due to the consumption demands and the pass thru rate increase. • The capital outlay collectively decreased by $1,730,000, or 32.96% due to the proactive asset replacement schedule in the prior years. • The maintenance and repairs collectively decreased by $278,129, or 44.05% due to reduction in required repairs with the proactive replacement schedule. • The electricity collectively increased by $106,327, or 23.93%. • The personnel cost collectively decreased by $52,554, or 2.5% due to the salary savings from vacant positions. Overall: The 2025 General Fund budget for the District is anticipated to have revenues of $13,240,355 and expenses of $13,224,220 for a total projected net surplus of $16,135. Debt Service Fund 2024 - 2025 budgetary highlights: • The Debt Service expenses are budgeted to increase from $1,800,479 in fiscal year 2024 to $1,805,645 in fiscal year 2025 for a total of $5,166. • Property tax revenues collected for Debt Service are budgeted to decrease from $219,481 in fiscal year 2024 to $217,408 in fiscal year 2025 for a total of $2,073. Rates highlights: Effective October 1st, 2024, the Board of Directors for the District adopted an increase in effluent and volumetric water rates. Base water rates and sewer rates remained the same. January 15, 2025 Regular Meeting Agenda Packet 50 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2024 10 Requests for information This financial report is designed to provide a general overview of the District's consolidated finances for all interested parties. Questions concerning any of the information in this report or requests for additional information should be directed to the Trophy Club Municipal Utility District No. 1, Finance Manager, 100 Municipal Drive, Trophy Club, Texas 76262. January 15, 2025 Regular Meeting Agenda Packet 51 of 106 Governmental Activities Assets Cash and cash equivalents 7,520,536$ Investments 7,905,851 Restricted assets: Restricted cash 148,950 Restricted investments 2,034,288 Prepaid assets 5,130 Receivables: Accounts receivables - net 1,544,017 Property taxes 15,095 Net pension asset 205,374 Capital assets: Non-depreciable capital assets 4,553,192 Depreciable capital assets (net)44,335,064 Total assets 68,267,496 Deferred outflows of resources Deferred outflows of resources - OPEB 7,829 Deferred outflows of resources - Pension 228,415 Total deferred outflows of resources 236,244 Liabilities Accounts payable 1,863,821 Accrued liabilities 43,862 Interest payable 44,858 Customer meter deposits 148,950 Non-current liabilities: Due within one year 1,264,998 Due in more than one year 18,303,010 OPEB liability 31,979 Total liabilities 21,701,478 Deferred inflows of resources Deferred inflows of resources - OPEB 10,764 Deferred inflows of resources - Pension 97,008 Total deferred inflows of resources 107,772 Net Position Net investment in capital assets 30,127,934 Restricted for: Capital projects 912,146 Debt service 185,721 Unrestricted 15,468,690 Total net position 46,694,490$ TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 Statement of Net Position September 30, 2024 The accompanying notes are an integral part of these financial statements. 11 January 15, 2025 Regular Meeting Agenda Packet 52 of 106 Net (Expense) Revenue and Changes in Net Program Revenues Position Operating Capital Total Charges for Grants and Grants and Governmental Functions/Programs Expenses Services Contributions Contributions Activities Primary government: Governmental activities: Water operations 4,110,091$ 7,368,914$ -$ -$ 3,258,823$ Wastewater operations 2,530,521 3,711,300 - - 1,180,779 Administration 1,655,338 64,246 - - (1,591,092) Fire protection 1,399,134 - - - (1,399,134) Non-departmental 77,194 - - - (77,194) Board of directors 2,368 - - - (2,368) Interest on long-term debt 562,933 - - - (562,933) Total governmental activities 10,337,579$ 11,144,460$ -$ -$ 806,881 General revenues: Property taxes 1,625,152 Contributions not restricted to specific programs 145,031 Investment earnings 675,135 Miscellaneous 71,692 Gain on sale of assets 51,450 Total general revenues 2,568,460 Change in net position 3,375,340 Net position - beginning 43,237,459 Prior period adjustments 81,691 Net position - ending 46,694,490$ TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 Statement of Activities For the Year Ended September 30, 2024 Governmental Activities The accompanying notes are an integral part of these financial statements. 12 January 15, 2025 Regular Meeting Agenda Packet 53 of 106 Debt Capital Total General Service Projects Governmental Fund Fund Fund Funds Assets Cash 7,435,484$ -$ 85,052$ 7,520,536$ Investments 7,905,851 - - 7,905,851 Restricted assets: Restricted cash 148,950 - - 148,950 Restricted investments - 185,720 1,848,568 2,034,288 Prepaid assets 5,130 - - 5,130 Receivables: Accounts receivable - net 1,544,017 - - 1,544,017 Property taxes 10,776 4,319 - 15,095 Due from other funds 81,691 - - 81,691 Total assets 17,131,898$ 190,039$ 1,933,620$ 19,255,557$ Liabilities Current liabilities: Accounts payable 1,863,821$ -$ -$ 1,863,821$ Accrued payroll liabilities 43,862 - - 43,862 Customer deposits 148,950 - - 148,950 Due to other funds - - 81,691 81,691 Total current liabilities 2,056,633 - 81,691 2,138,324 Deferred Inflows of Resources Unavailable revenue - Property taxes 10,775 4,319 - 15,094 Total deferred inflows of resources 10,775 4,319 - 15,094 Fund Balances Non-spendable: Prepaid assets 5,130 - - 5,130 Restricted for: Debt service - 185,721 - 185,721 Capital projects - - 1,851,929 1,851,929 Assigned for: Capital projects 6,325,851 - - 6,325,851 Unassigned 8,733,510 - - 8,733,510 Total fund balances 15,064,490 185,721 1,851,929 17,102,140 Total liabilities, deferred inflows of resources, and fund balances 17,131,899$ 190,039$ 1,933,620$ 19,255,559$ TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BALANCE SHEET - SEPTEMBER 30, 2024 GOVERNMENTAL FUNDS The accompanying notes are an integral part of these financial statements. 13 January 15, 2025 Regular Meeting Agenda Packet 54 of 106 Fund balances of governmental funds 17,102,140$ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.48,888,256 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.236,244 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.(107,772) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.(19,599,987) Accrued interest payable for governmental-type long-term debt is recognized in the governmental activities in the statement of net position.(44,858) The District's net pension asset balance does not provide current financial resources and, therefore, is not reported in the governmental funds.205,374 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.15,092 Net position of governmental activities 46,694,490$ Amounts reported for governmental activities in the statement of net position are different because: TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 Reconciliation of the Governmental Funds Balance Sheet at September 30, 2024 to the Statement of Net Position The accompanying notes are an integral part of these financial statements. 14 January 15, 2025 Regular Meeting Agenda Packet 55 of 106 Debt Capital Total General Service Projects Governmental Fund Fund Fund Funds Revenues Water charges 7,274,883$ -$ -$ 7,274,883$ Wastewater charges 3,711,300 - - 3,711,300 Property taxes 1,404,929 217,202 - 1,622,131 Intergovernmental 145,031 - - 145,031 Late charges 94,031 - - 94,031 Rental income 49,320 - - 49,320 Inspections and other charges for services 14,926 - - 14,926 Other revenue 68,329 - 3,363 71,692 Investment earnings 521,771 42,885 110,479 675,135 Total revenues 13,284,519 260,087 113,842 13,658,448 Expenditures Current: Water 3,599,392 - - 3,599,392 Wastewater 1,239,627 - - 1,239,627 Administration 1,616,384 - - 1,616,384 Fire 1,220,000 - - 1,220,000 Non-departmental 77,194 - - 77,194 Board of directors 2,368 - - 2,368 Capital outlays 4,835,000 - - 4,835,000 Debt service: Principal retirement 22,132 1,235,000 - 1,257,132 Interest and fees 426 564,727 - 565,153 Total expenditures 12,612,524 1,799,727 - 14,412,251 Excess of revenues over (under) expenditures 671,995 (1,539,640) 113,842 (753,803) Other financing sources (uses) Proceeds from sold assets 51,450 - - 51,450 Transfers in - 1,582,198 - 1,582,198 Transfers (out)(381,867) - (1,200,331) (1,582,198) Total other financing sources(uses)(330,417) 1,582,198 (1,200,331) 51,450 Net changes in fund balances 341,578 42,558 (1,086,489) (702,353) Fund balances - beginning (restated)14,722,912 143,163 2,938,418 17,804,493 Fund balances - ending 15,064,490$ 185,721$ 1,851,929$ 17,102,140$ TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds For the Year Ended September 30, 2024 The accompanying notes are an integral part of these financial statements. 15 January 15, 2025 Regular Meeting Agenda Packet 56 of 106 To the Statement of Activities Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds (702,353)$ 2,723,740 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.2,220 1,257,132 Various other reclassifications and eliminations are necessary to convert from the modified accrual basis of accounting to accrual basis of accounting. These include recognizing a $2,755 decrease in deferred revenue, an $11,289 increase in accrued compensated absences, and various other smaller items. The net effect of these reclassifications is to decrease net position.14,310 80,291 Change in net position of governmental activities:3,375,340$ TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 Reconciliation of the Statement of Revenues, For the Year Ended September 30, 2024 Expenditures, and Changes in Fund Balances of Governmental Funds 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. 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. 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. The accompanying notes are an integral part of these financial statements. 16 January 15, 2025 Regular Meeting Agenda Packet 57 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 17 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. General Statement Denton County Municipal Utility District No. I (the District) was created by the Texas Water Rights Commission (later known as Texas Commission on Environmental Quality (TCEQ)) on March 4 , 1975 and confirmed by the electorate of the District at a confirmation election on October 7, 1975. The Board of Director's held its first meeting on April 24, 1975. The Bonds were first sold on June 8, 1976. The District operates pursuant to Article XVI, Chapter 59 of the Texas Constitution and Chapter 54 of the Texas Water Code, as amended. Effective April 1, 1983, the District's name was officially changed by order from Denton County Municipal Utility District No. I to Trophy Club Municipal Utility District No. 1 . On May 9, 2009, citizens voted to consolidate the District and Trophy Club Municipal Utility District No. 2 (MUD 2). As a result, the District reports consolidated activity and balances for the District and the entities formerly known as MUD 2 and the Trophy Club Master District Joint Venture (a joint venture of MUD 1 and MUD 2). The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for the District. The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. B. Financial Reporting Entity As required by accounting principles generally accepted in the United States of America, these financial statements include the activities of the District and any organizations for which the District is financially accountable or for which the nature and significance of their relationship with the District are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects, or activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government (a) is entitled to the organization's resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the organization. Some organizations are included as component units because of their fiscal dependency on the primary government. January 15, 2025 Regular Meeting Agenda Packet 58 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 18 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 supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The activities of the District are comprised only of governmental activities. The Statement of Activities demonstrates the degree to which the direct expenses of a given program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific program. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given program and 2) operating or capital grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Taxes and other items not properly included among program revenues are reported instead as general revenues. Fund Financial Statements The District segregates transactions related to certain functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. These statements are required to present each major fund in a separate column on the fund financial statements. For fiscal year 20 24, 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 and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. Debt Service Fund The Debt Service Fund is used to account for resources accumulated and payments made for principal and interest on the long-term debt of the District. January 15, 2025 Regular Meeting Agenda Packet 59 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 19 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 withi n 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. January 15, 2025 Regular Meeting Agenda Packet 60 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 20 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 m aintenance 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: Asset Category Depreciable 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. January 15, 2025 Regular Meeting Agenda Packet 61 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 21 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED H. Net Position Net position represents the difference between assets and deferred outflows of resources, less deferred inflows of resources and liabilities. Net position invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislations adopted by the District or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. I. Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabi lities, 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: Nonspendable - such as fund balance associated with inventories, prepaids, long -term loans and notes receivable, and property held for resale (unless the proceeds are restricted, committed, or assigned), Restricted - fund balance category includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation, Committed - fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the Board of Directors (the District's highest level of decision -making authority), Assigned - fund balance classifications are assigned by the District Manager with the intentions to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed, and Unassigned - fund balance is the residual classification for the District's General Fund and includes all spendable amounts not contained in the other classifications, and other funds that have total negative fund balances. January 15, 2025 Regular Meeting Agenda Packet 62 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 22 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 2024. Trade accounts receivable are evaluated periodically for collectability based on customer history and current economic conditions. When considered necessary, an allowance is made for doubtful accounts. NOTE 2. CASH AND INVESTMENTS The funds of the District must be deposited and invested under the terms of a contract, contents of which are set out in the Depository Contract Law. The depository bank places approved pledged securities for safekeeping and trust with the District's agent bank in an amount sufficient to p rotect 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, 2024, the carrying amount of the District's cash deposits was $7,668,886 and the bank balance was $7,692,489. Of the District's cash deposits at September 30, 2024, $250,000 was insured by FDIC and $7,442,489 was covered by pledged securities, The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things, it requires the District to adopt, implement, and publicize an investment policy. That policy must address the following areas; (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar -weighted maturity, allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. Cash and investments as of September 30, 2024 consist of the following: Deposits with financial institutions 7,668,886$ Unrestricted TexPool investments 7,905,851 Restricted TexPool investments 1,179,556 Restricted escrow investments 854,731 Petty cash 600 Total Cash and Investments 17,609,624$ January 15, 2025 Regular Meeting Agenda Packet 63 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 23 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, 2024, the District had the following investments: Weighted Avg. Investment Type Carrying Amount Maturity TexPool Pooled Investments 9,085,407$ 31 days BOK Financial - U.S. Securities 854,731$ 53 days As of September 30, 2024, 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 9,085,407$ AAAm AAAm BOK Financial - U.S. Securities 854,731$ AAAm AAAm January 15, 2025 Regular Meeting Agenda Packet 64 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 24 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 l) 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. January 15, 2025 Regular Meeting Agenda Packet 65 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 25 NOTE 3. ACCOUNTS RECEIVABLE Receivables as of September 30, 2024 are as follows: Accounts Receivable: Water sales 854,494$ Wastewater sales 319,383 Unbilled receivables 224,126 Refuse (as an agent for the Town of Trophy Club)94,898 Storm drainage (as an agent for the Town of Trophy Club)38,681 Refuse tax (as an agent for the Town of Trophy Club)7,975 PID surcharge (as an agent for the Town of Trophy Club)12,199 Property taxes 15,095 Other 4,312 Gross receivables 1,571,163 Less: Allowance for uncollectables (12,051) Net receivables 1,559,112$ NOTE 4. INTERFUND TRANSFERS AND BALANCES Transfers between funds during the year-ended September 30, 2024 are as follows: Fund Transfers to Other Funds Transfers from Other Funds Purpose General Fund (1,582,198)$ Debt service assistance General Fund 1,200,331$ Transfer of remaining 2019 bond funds Capital Projects Fund (1,200,331) - Transfer of remaining 2019 bond funds Debt Service Fund 1,582,198$ Debt service assistance (2,782,529)$ 2,782,529$ Interfund due to/due from balances as of September 30, 2024 are as follows: Fund Due From Other Funds Due To Other Funds General Fund 81,691$ Capital Projects Fund 81,691 81,691$ 81,691$ January 15, 2025 Regular Meeting Agenda Packet 66 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 26 NOTE 5. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2024, was as follows: Governmental Activities: Beginning Balances Additions Retirements/ Transfers Ending Balance Capital assets - Non-Depreciable Land 648,178$ -$ -$ 648,178$ Construction in progress 4,571,377 2,820,851 (4,351,892) 3,040,336 Water rights 864,678 - - 864,678 Total non-depreciable assets:6,084,233 2,820,851 (4,351,892) 4,553,192 Capital assets - Depreciable Buildings 3,535,137 - - 3,535,137 Improvements other than buildings 694,429 - - 694,429 Machinery and equipment 3,523,316 - (57,480) 3,465,836 Organization costs 2,676,156 - - 2,676,156 Vehicles 3,280,264 98,701 (26,264) 3,352,701 Water system 19,545,084 527,011 4,011,575 24,083,670 Wastewater treatment system 22,765,755 318,567 - 23,084,322 Wastewater collection system 5,366,949 1,069,870 340,317 6,777,136 Total capital assets being depreciated:61,387,090 2,014,149 4,268,148 67,669,387 Less accumulated depreciation for: Buildings 998,471 81,102 - 1,079,573 Improvements other than buildings 360,641 24,663 - 385,304 Machinery and equipment 1,792,579 214,575 (57,480) 1,949,674 Organization costs 2,412,908 70,556 - 2,483,464 Vehicles 2,002,035 247,614 (26,264) 2,223,385 Water system 5,343,563 396,830 - 5,740,393 Wastewater treatment system 6,387,344 963,336 7,350,680 Wastewater collection system 2,009,266 112,584 - 2,121,850 Total accumulated depreciation:21,306,807 2,111,260 (83,744) 23,334,323 Total depreciable capital assets, net:40,080,283 (97,111) 4,351,892 44,335,064 Capital assets, net:46,164,516$ 2,723,740$ -$ 48,888,256$ January 15, 2025 Regular Meeting Agenda Packet 67 of 106 27 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 NOTE 5. CAPITAL ASSETS - CONTINUED Depreciation expense was charged as direct expense to programs of the primary government as follows: Governmental activities: General government 77,006$ Water operations 537,462 Wastewater collections and treatment 1,317,658 Fire department 179,134 Total depreciation expense 2,111,260$ NOTE 6. LONG-TERM DEBT At September 30, 2024, the District's long-term debt issuances consisted of the following: Interest Maturity Due Within Rate (%) Date Outstanding One Year General Obligation Bonds Series 2014 Tax Bonds 1.5-3.5% 8/31/2034 3,435,000$ 295,000$ Series 2020 Refunding Bonds 1.30% 8/31/2031 855,000 120,000 Revenue Bonds Series 2015 Bonds 2.0-3.25% 8/31/2035 5,845,000 450,000 Series 2016 Bonds 0.5-2.2% 8/31/2036 2,925,000 225,000 Series 2019 Bonds 3.0-3.5% 8/31/2049 6,430,000 175,000 Total long-term debt:19,490,000$ 1,265,000$ January 15, 2025 Regular Meeting Agenda Packet 68 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 28 NOTE 6. LONG-TERM DEBT - CONTINUED The following is a summary of long-term liabilities activity for the District for the year ended September 30, 2024: Beginning Balance Additions Reductions Ending Balance Due Within One Year Governmental activities: General Obligation Bonds 4,700,000$ -$ (410,000)$ 4,290,000$ 415,000$ Revenue Bonds 16,025,000 - (825,000) 15,200,000 850,000 Type A Financing Leases 22,398 - (22,398) - - Compensated Absences 89,297 - (11,289) 78,008 - Total Governmental activities long-term liabilities: 20,836,695$ -$ (1,268,687)$ 19,568,008$ 1,265,000$ The annual debt service requirements for the District’s bonds are as follows: Fiscal Year Ending Principal Interest Totals 2025 1,265,000$ 538,295$ 1,803,295$ 2026 1,285,000 511,555 1,796,555 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 2030-2034 7,265,000 1,517,432 8,782,432 2035-2039 2,415,000 683,930 3,098,930 2040-2044 1,460,000 436,800 1,896,800 2045-2049 1,715,000 179,806 1,894,806 Totals:19,490,000$ 5,222,360$ 24,712,360$ General Obligation and Revenue Bonds January 15, 2025 Regular Meeting Agenda Packet 69 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 29 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 i s responsible for the administration of the statewide agent multiple - employer public employee retirement system consisting of nontraditional defined benefit pension plans. TCDRS in the aggregate issues a comprehensive annual financial report (CAFR) on a ca lendar-year basis. The CAFR is available at www.tcdrs.org. 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 t heir personal contributions in a lump sum are not entitled to any amounts contributed by their employer. Benefit amounts are determined by the sum of the employee’s contributions to the plan, with interest, and employer-financed monetary credits. The level of these monetary credits is adopted by the governing body of the employer within the actuarial constrai nts 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 accumul ated contributions and the employer -financed monetary credits to a monthly annuity using annuity purchase rates prescribed by the TCDRS Act. Membership information is shown in the chart below: Inactive employees or beneficiaries currently receiving benefits: 8 Inactive employees entitled, but not yet receiving benefits:13 Active employees:14 Total:35 January 15, 2025 Regular Meeting Agenda Packet 70 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 30 NOTE 8. RETIREMENT PLAN - CONTINUED Contributions The employer has elected the annually determined contribution rate (ADCR) plan provision of the TCDRS Act. The plan is funded by monthly contributions from both employee members and the employer based on the covered payroll of employee members. Under the TCDRS Act, the contribution rate of the employer is actuarially determined annually. The employer contributed using the actuarially determined rate s of 11.8% and 11.82% for calendar years 2023 and 2024, respectively. Total employer contributions for the year ended September 30, 2024 was $159,654. The contribution rate payable by the employee members for calendar years 20 23 and 2024 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, 2023 actuarial valuation was determined using the following actuarial assumptions: Valuation Date: December 31, 2023 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) 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. January 15, 2025 Regular Meeting Agenda Packet 71 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 31 NOTE 8. RETIREMENT PLAN - CONTINUED Best estimates of geometric real rates of return for each major asset class included in the Systems target asset allocation as of December 31, 2023 are summarized below: Geometric Target Real Rate Asset Class Benchmark Allocation of Return U.S. Equities Dow Jones U.S. Total Stock Market Index 11.50% 4.75% Global Equities MSCI World (net) Index 2.50% 4.75% Int'l Equities - Developed Markets MSCI World Ex USA (net) Index 5.00% 4.75% Int'l Equities - Emerging Markets MSCI Emerging Markets (net) Index 6.00% 4.75% Investment Grade Bonds Bloomberg Barclays U.S. Aggregate Bond Index 3.00% 2.35% Strategic Credit FTSE High-Yield Cash-Pay Capped Index 9.00% 3.65% Direct Lending Morningstar LSTA US Leveraged Loan TR USD Index 16.00% 7.25% Distressed Debt Cambridge Associates Distressed Securities Index 4.00% 6.90% REIT Equities 67% FTSE NAREIT Equity REITs Index + 33% S&P Global REIT Index 2.00% 4.10% Master Limited Partnerships Alerian MLP Index 2.00% 5.20% Private Real Estate Partnerships Cambridge Associates Real Estate Index 6.00% 5.70% Private Equity Cambridge Associates Global Private Equity & Venture Capital Index 25.00% 7.75% Hedge Funds Hedge Fund Research, Inc. Fund of Funds Composite Index 6.00% 3.25% Cash Equivalents 90-Day U.S. Treasury 2.00% 0.60% 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: Current 1% Decrease Discount Rate 1% Increase 6.60% 7.60% 8.60% Net pension liability (asset)214,234$ (205,374)$ (558,505)$ January 15, 2025 Regular Meeting Agenda Packet 72 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 32 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, 2024, the District reported ($205,374) for the net pension (asset) and pension expense of $77,493 related to the December 31, 20 23 valuation. The breakdown of the components of the total pension liability, plan fiduciary net position, and the net pension liability follows: Changes in the Net Pension Liability (Asset) Plan Total Fiduciary Net Pension Pension Net Position Liab./(Asset) Liability (a)(b)(a) - (b) Balances at 12/31/2022:2,666,301$ 2,752,806$ (86,505)$ Changes for the year: Service cost 217,433 217,433 Interest 216,080 216,080 Effect of plan changes - - Effect of economic/demographic gains or losses 13,112 13,112 Effect of assumptions changes or inputs - - Refund of contributions (11,957) (11,957) - Benefit payments (70,711) (70,711) - Administrative expenses (1,690) 1,690 Member contributions 94,318 (94,318) Net investment income 304,225 (304,225) Employer contributions 158,994 (158,994) Other changes 9,647 (9,647) Balances at 12/31/2023:3,030,258$ 3,235,632$ (205,374)$ Increase (Decrease) 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 97,008$ 29,333$ Changes of assumptions - 45,227 Net difference between projected and actual earnings - 32,751 Contributions subsequent to the measurement date N/A 121,104 Totals:97,008$ 228,415$ $121,104 reported as deferred outflow of resources for contributions made subsequent to the measurement date will be recognized as an addition to the net pension asset in the 2024 measurement year. January 15, 2025 Regular Meeting Agenda Packet 73 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 33 NOTE 8. RETIREMENT PLAN - CONTINUED The net amounts of the employer’s balances of deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Measurement Year Ending: 2024 (20,038)$ 2025 (15,583) 2026 63,593 2027 (17,669) Thereafter - 10,303$ NOTE 9. OTHER POST-EMPLOYMENT BENEFITS Plan Description The District participates in the retiree Group Term Life program for the Texas County & District Retirement System (TCDRS), which is a statewide, multiple -employer, public employee retirement system. All full and part-time non-temporary employees participate in the plan, regardless of the number of hours they work in a year and are eligible for the TCDRS pension plan. Only employers that have elected participation in the retiree Group Term Life program are included in the OPEB plan. The plan provides a $5,000 post-retirement death benefit to beneficiaries of service retirees and disability retirees of employers that have elected participation in the retiree GTL program. The OPEB benefit is a fixed $5,000 lump -sum benefit. No future increases are assumed in the $5,000 benefit amount. Benefit terms are established under the TCDRS Act. Participation in the retiree GTL program is optional and the employer may elect to opt out of (or opt into) coverage as of January 1 each year. The District’s contribution rate for the retiree GTL program is calculated annually on an actuarial basis, and is equal to the cost of providing a one -year deal benefit equal to $5,000. Membership information is shown in the chart below: Inactive employees or beneficiaries currently receiving benefits: 7 Inactive employees entitled, but not yet receiving benefits: 3 Active employees:14 Total:24 Total OPEB Liability The District’s total OPEB liability was determined by an actuarial valuation dated December 31, 2023. Estimates include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions (ARC) of the employer are subject to continual revisions as actual results are compared with past expectations and new estimates are made about the future. January 15, 2025 Regular Meeting Agenda Packet 74 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 34 NOTE 9. OTHER POST-EMPLOYMENT BENEFITS - CONTINUED Discount Rate The discount rate is based on a yield or index for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or better for benefits not covered by plan assets. The 20 Year Bond GO Index published by bondbuyer.com was used in determining the discount rate used to measure the Total OPEB Liability as of December 31, 2023 (measurement date under GASB 75). At this date, the discount rate was 3.26%. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the District’s Total OPEB Liability if it were calculated using a discount rate that is 1% point lower (2.26%) or 1% point higher (4.26%) than the current rate, for measurement period ended December 31, 2023: Current 1% Decrease Discount Rate 1% Increase 2.26% 3.26% 4.26% Total OPEB liability 38,792$ 31,979$ 26,632$ OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended September 30, 202 4, the District recognized expense related to OPEB of $1,692. As of September 30, 2024, the District reported deferred inflows of resources related to OPEB from the following sources: Deferred Inflows / Outflows of Resources Deferred Inflows Deferred Outflows of Resources of Resources Difference between expected and actual experience 5,446$ 1,567$ Changes of assumptions 6,885 5,966 Net difference between projected and actual earnings - - Contributions subsequent to the measurement date N/A 1,863 Totals:12,331$ 9,396$ The $1,863 of contributions made after the measurement date of the total OPEB liability but before the end of the District's reporting period will be recognized as a reduction of the total OPEB liability in the next measurement year. January 15, 2025 Regular Meeting Agenda Packet 75 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 35 NOTE 9. OTHER POST-EMPLOYMENT BENEFITS – CONTINUED The other amounts reported as deferred inflows/outflows of resources related to OPEB will be recognized in OPEB expense as follows: Measurement Year Ending: 2024 (1,420)$ 2025 (936) 2026 (1,657) 2027 (1,534) 2028 749 Thereafter - (4,798)$ NOTE 10. PRIOR PERIOD ADJUSTMENTS The District’s fund balances and net position at the beginning of fiscal year 2024 were restated as follows: Governmental Fund Types Capital Projects Fund - Fund balance - beginning 2,856,727$ Prior period adjustment for understated receivables 81,691 Capital Projects Fund - Fund balance - beginning as restated 2,938,418$ Governmental-Type Activities Net Position Net position - beginning 43,237,459$ Prior period adjustment for understated receivables 81,691 Net position - beginning as restated 43,319,150$ NOTE 11. SUBSEQUENT EVENTS The District has evaluated all events and transactions after September 30, 202 4 up through the audit report date, which is the date the financial statements were issued. The District has no subsequent events to disclose. January 15, 2025 Regular Meeting Agenda Packet 76 of 106 REQUIRED SUPPLEMENTARY INFORMATION January 15, 2025 Regular Meeting Agenda Packet 77 of 106 Original and Final Budget Actual Amounts Variance with Final Budget - Positive (Negative) Revenues Water charges 6,939,998$ 7,274,883$ 334,885$ Wastewater charges 3,749,786 3,711,300 (38,487) Property taxes 1,411,279 1,404,929 (6,350) Intergovernmental 143,223 145,031 1,808 Late charges 105,800 94,031 (11,769) Rental income 49,320 49,320 - Inspections and other charges for services 5,808 14,926 9,118 Other revenue 22,000 68,329 46,329 Investment earnings 150,000 521,771 371,771 Total revenues 12,577,214 13,284,519 707,305 Expenditures Current: Water 4,035,477 3,599,392 436,085 Wastewater 1,463,293 1,239,627 223,666 Administration 1,587,937 1,616,384 (28,447) Fire 1,222,254 1,220,000 2,254 Non-departmental 113,071 77,194 35,877 Board of directors 11,765 2,368 9,397 Capital outlays 5,250,000 4,835,000 415,000 Debt service: Principal retirement 22,398 22,132 266 Interest and fees 442 426 16 Total expenditures 13,706,638 12,612,524 1,094,113 Excess of revenues over (under) expenditures (1,129,423) 671,995 1,801,418 Other financing sources (uses) Proceeds from sold assets 25,000 51,450 26,450 Transfers in 1,228,400 1,200,331 (28,069) Transfers (out)(2,221,740) (1,582,198) 639,542 Total other financing sources (uses)(968,340) (330,417) 637,923 Net changes in fund balances (2,097,763) 341,578 2,439,341$ Fund balances - beginning 14,722,912 14,722,912 Fund balances - ending 12,625,149$ 15,064,490$ 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, 2024 The accompanying notes are an integral part of these financial statements. 36 January 15, 2025 Regular Meeting Agenda Packet 78 of 106 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, 2024 December December December December December December December December December December 31, 2023 31, 2022 31, 2021 31, 2020 31, 2019 31, 2018 31, 2017 31, 2016 31, 2015 31, 2014 Total Pension Liability Service cost 217,433$ 233,536$ 227,965$ 183,103$ 164,365$ 153,752$ 176,975$ 200,990$ 150,689$ 170,600$ Interest on total pension liability 216,080 205,110 175,365 145,931 121,767 100,515 83,553 57,230 41,351 27,449 Effect of plan changes - - - - - - - - (22,086) - 13,112 (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 (82,668) (85,649) (19,329) (14,049) (16,533) (15,970) (1,695) (2,091) (1,902) (3,156) Net Change in Total Pension Liability 363,957 158,981 418,359 463,561 278,369 252,020 239,634 246,339 164,418 187,836 Total pension liability, beginning 2,666,301 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 3,030,258$ 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 158,994 148,993 127,080 122,021 103,641 94,803 102,802 95,185 97,043 93,694 Member contributions 94,318 95,508 98,621 94,695 80,287 73,880 79,868 78,388 78,171 74,784 Investment income (net of expenses)304,225 (174,486) 475,821 173,686 212,168 (19,840) 126,587 46,440 (15,011) 18,561 Benefit payments/Refund of contributions (82,668) (85,649) (19,329) (14,049) (16,533) (15,970) (1,695) (2,091) (1,902) (3,156) Administrative expenses (1,690) (1,613) (1,485) (1,506) (1,278) (1,039) (769) (505) (394) (285) Other 9,647 24,660 6,414 6,162 5,966 4,667 2,418 19,889 (47) (21) Net Change in Fiduciary Net Position 482,826 7,413 687,122 381,009 384,251 136,501 309,211 237,306 157,860 183,577 Fiduciary Net Position, beginning 2,752,806 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 3,235,632 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 (205,374)$ (86,505)$ (238,073)$ 30,690$ (51,862)$ 54,020$ (61,500)$ 8,077$ (956)$ (7,514)$ 106.78%103.24%109.50%98.53%103.19%95.99%105.62%99.06%100.16%101.69% Covered-employee payroll 1,347,404$ 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$ -15.24%-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. Difference between expected and actual experience Fiduciary net position as a percentage of total pension liability Net pension liability as a percentage of covered payroll 37 January 15, 2025 Regular Meeting Agenda Packet79 of 106 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, 2024 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Contractually required contributions 159,654$ 158,013$ 148,867$ 117,151$ 97,337$ 92,561$ 102,802$ 97,875$ 97,043$ 93,694$ 159,654 158,013 148,867 122,021 103,641 94,803 102,802 97,875 97,043 93,694 Contribution deficiency (excess)-$ -$ -$ (4,870)$ (6,304)$ (2,242)$ -$ -$ -$ -$ 1,351,263$ 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$ 11.8%11.6%10.4%9.0%9.0%9.0%9.0%8.7%8.7%8.8% GASB 68 requires that information on this schedule be presented on the District's fiscal year basis. Contributions in relation to the contractually required contributions District's covered-employee payroll Contributions as a percentage of covered employee payroll 38 January 15, 2025 Regular Meeting Agenda Packet80 of 106 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, 2024 December December December December December December December 31, 2023 31, 2022 31, 2021 31, 2020 31, 2019 31, 2018 31, 2017 Total OPEB Liability Service cost 2,034$ 4,273$ 4,121$ 3,314$ 2,241$ 2,503$ 2,889$ Interest on total pension liability 986 771 736 771 778 669 595 Effect of plan changes - - - - - - - 1,880 (3,949) (2,610) (2,345) (1,422) (678) (321) Effect of assumptions changes or inputs 2,619 (9,745) 408 4,033 6,476 (2,704) 946 Benefit payments/Refund of contributions - (136) - - - - - Net Change in Total OPEB Liability 7,519 (8,786) 2,655 5,773 8,073 (210) 4,109 Total OPEB liability, beginning 24,460 33,246 30,591 24,818 16,745 16,955 12,846 Total OPEB liability, ending 31,979$ 24,460$ 33,246$ 30,591$ 24,818$ 16,745$ 16,955$ Covered payroll 1,347,404$ 1,364,405$ 1,408,871$ 1,352,780$ 1,150,893$ 1,055,433$ 1,140,976$ 2.37%1.79%2.36%2.26%2.16%1.59%1.49% Difference between expected and actual experience Total OPEB liability as a percentage of covered payroll 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 January 15, 2025 Regular Meeting Agenda Packet81 of 106 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, 2024 2024 2023 2022 2021 2020 2019 2018 Contractually required contributions 2,516$ 3,005$ 3,964$ 3,886$ 4,552$ 2,635$ 2,673$ 2,516 3,005 3,964 3,886 4,552 2,635 2,673 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ 1,351,263$ 1,364,747$ 1,364,747$ 1,436,437$ 1,352,780$ 1,146,956$ 1,055,433$ 0.19%0.22%0.29%0.27%0.34%0.23%0.25% Contributions in relation to the contractually required contributions District's covered-employee payroll Contributions as a percentage of covered employee payroll 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 January 15, 2025 Regular Meeting Agenda Packet82 of 106 OTHER SUPPLEMENTARY INFORMATION January 15, 2025 Regular Meeting Agenda Packet 83 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TSI-1 SERVICES AND RATES SEPTEMBER 30, 2024 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 Residential and Commercial Meter Size Base Rate Rates per 1,000 Gallons 5/8"$20.26 1"$38.08 $4.60 0 to 6,000 1.5"$67.54 $5.35 6,001 to 17,000 2"$108.06 $6.19 17,001 to 25,000 3"$204.80 $7.19 25,001 to 50,000 4"$337.68 $8.36 50,001 + 6"$675.38 Base Rate Rates per 1,000 Gallons Residential*$22.15 $3.57 0 to 4,000 $5.09 4,001 to 8,000 $7.18 8,001 to 12,000 $10.22 12,000 + Commercial**$22.15 $8.57 1,000 + **Commercial sewer usage is billed based on actual water usage per month NOTE: Water rates noted above were effective October 1, 2022 and the Wastewater rates effective April 1, 2023. District employs winter averaging for wastewater usage?Yes ***Total water and wastewater charges per 10,000 gallons usage (including surcharges) effective April 1, 2020 (based on 5/8" & 3/4") First 10,000 gallons used 10,000 140.41$ Next 10,000 gallons used 20,000 196.43$ Next 10,000 gallons used 30,000 263.33$ Next 10,000 gallons used 40,000 335.23$ Next 10,000 gallons used 50,000 407.13$ Next 10,000 gallons used and subsequent 60,000 490.73$ *** The above sewer calculations are based on a Winter Average of 10,000 gallons per month. Water Base Rates Water Volumetric Rates Sewer Base Fee Sewer Volimetric Rates *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. 41 January 15, 2025 Regular Meeting Agenda Packet 84 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TSI-1 SERVICES AND RATES SEPTEMBER 30, 2024b)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). ESFC Active Meter Size Total Active Factor ESFC's Unmetered - - 1 - Less than 3/4"2,497 2,509 1 2,509 1"707 698 3 1,745 1 1/2"28 28 5 140 2"105 102 8 816 3"42 40 15 600 4"17 17 25 425 6"5 4 50 200 8"1 1 80 80 10"- - 115 - Total Water 3,402 3,399 6,515 Total Wastewater 3,407 3,404 1 3,404 *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 1,040,854 Gallons billed to customers 927,485 Water accountability ratio 89.11% 4.Standby Fees: Does the District assess standby fees?No For the most recent fiscal year, FY2024: Total Total Percentage Levy Collected Collected Debt Service 218,531$ 218,113$ 99.8% Operations and Maintenance 1,404,807$ 1,402,119$ 99.8% Have standby fees been levied in accordance with Water Code Section 49.231, thereby constituting a lien on property?No 5.Location of District: Counties in which District is located: Denton Tarrant Is the District located entirely in one county?No Is the District located within a city?Partially Cities in which District is located:Town of Trophy Club Town of Westlake Is District located within a city's extra territorial jurisdiction (ETJ)?Unknown ETJ's in which District is located:Unknown Is the general membership of the Board appointed by an office outside No the District? Connections 42 January 15, 2025 Regular Meeting Agenda Packet 85 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TSI - 2 General Fund Expenditures and Other Financing Uses Year End September 30, 2024 Current Year Prior Year 2024 2023 Administrative 1,695,946$ 1,546,351$ Water Operations 3,599,392 4,157,215 Wastewater Operations 1,239,627 1,460,607 Contribution to Trophy Club Fire Dept.*1,220,000 978,435 Capital Outlay 4,835,000 3,553,442 Transfers Out and Debt Service 404,425 1,694,176 Total Expenditures 12,994,390$ 13,390,226$ Number of employees employed by the District: Full time Equivalents (FTEs)14 14 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 January 15, 2025 Regular Meeting Agenda Packet 86 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TSI-3 TEMPORARY INVESTMENTS September 30, 2024 Identification Interest Maturity Balance Accrued Interest Number Rate Date End of Year Paid Term Reserve Fund Prosperity Bank XXXXX7724 3.19%Demand 1,998,815$ Paid monthly (Money Market) General Fund Prosperity Bank XXX2660 0.35%Demand 5,693,674$ Paid monthly General Fund, Fire Fund, & GASB Reserves TexPool XXXXX0002 4.98%Demand 7,905,564$ Paid daily Debt Service Fund TexPool XXXXX0003 4.98%Demand 102,084$ Paid daily Debt Service-Revenue Bond Texpool XXXXX0013 4.98%Demand 52,955$ Paid daily Revenue Bond Reserve Texpool XXXXX0014 4.98%Demand 993,836$ Paid daily SWIFT Revenue Bond Debt Service Texpool XXXXX0017 4.98%Demand 18,149$ Paid daily W&WW 19 Revenue Bond Debt Service Texpool XXXXX0020 4.98%Demand 12,891$ Paid daily SWIFT Revenue Bond Escrow Account Bank of Texas BOKF 0500-0004577.1 4.01%Demand 854,731$ Paid daily Total - All Funds 17,632,700$ Funds 44 January 15, 2025 Regular Meeting Agenda Packet 87 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TSI-4 TAXES LEVIED AND RECEIVABLE SEPTEMBER 30, 2024 Debt Operations Fire Total Service Total Taxes receivable beginning of year 2,089$ 6,868$ 6,868 3,384$ 12,341$ - 2023 tax levy 85,479 1,319,328 1,404,807 218,531 1,623,338 Total to be accounted for 87,568 1,326,197 1,413,764 221,915 1,635,679 Less collections and adjustments: Current year (85,283) (1,316,310) (1,401,594) (218,031) (1,619,625) Prior years (1,375) (19) (1,395) 435 (959) Total to be accounted for (86,659) (1,316,330) (1,402,988) (217,596) (1,620,584) Taxes receivable, end of year 909$ 9,867$ 10,776$ 4,319$ 15,095$ Taxes receivable by year 2009 and prior -$ -$ -$ -$ -$ 2010 19$ 232$ 251$ 164$ 415$ 2011 21$ 236$ 258$ 121$ 379$ 2012 22$ 231$ 253$ 43$ 296$ 2013 54$ 501$ 554$ 210$ 765$ 2014 90$ 470$ 561$ 251$ 812$ 2015 18$ 274$ 292$ 206$ 498$ 2016 17$ 281$ 298$ 183$ 480$ 2017 56$ 484$ 540$ 307$ 847$ 2018 82$ 717$ 798$ 441$ 1,239$ 2019 90$ 806$ 896$ 453$ 1,349$ 2020 80$ 731$ 811$ 405$ 1,216$ 2021 98$ 917$ 1,015$ 499$ 1,514$ 2022 68$ 969$ 1,037$ 537$ 1,574$ 2023 196$ 3,018$ 3,214$ 500$ 3,713$ 909$ 9,867$ 10,776$ 4,319$ 15,095$ FY FY FY FY FY Property valuations (in 000's)23/24 22/23 21/22 20/21 19/20 Land 637,372$ 581,303$ 458,430$ 453,286$ 448,076$ Improvements 2,231,649 1,834,151 1,603,969 1,499,313 1,405,356 Personal property 83,718 76,823 121,053 108,700 111,040 Exemptions (407,769) (272,548) (165,072) (152,209) (143,923) 2,544,970$ 2,219,729$ 2,018,380$ 1,909,090$ 1,820,549$ Tax rate per $100 valuation Operations 0.00336 0.00393 0.00687 0.00709 0.00748 Fire department 0.05186 0.05625 0.06412 0.06476 0.06738 Debt service 0.00859 0.03115 0.03489 0.03589 0.03787 Tax rate per $100 valuation 0.06381 0.09134 0.10588 0.10774 0.11273 Tax levy: 1,623,946$ 2,027,500$ 2,137,060$ 2,056,855$ 2,052,305$ Percent of taxes collected to taxes levied 99.77%99.80%99.85%99.71%99.76% General Fund 45 January 15, 2025 Regular Meeting Agenda Packet 88 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TSI-4 TAXES LEVIED AND RECEIVABLE SEPTEMBER 30, 2024 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 None $ Total rate(s) of special districts $ Tax rates (per $100 net taxable value) for all overlapping jurisdictions. Include any taxing entities which overlap 10% or more of the District. Denton County Tarrant County County Denton/Tarrant 0.189485 0.1945 City Town of Trophy Club 0.415469 0.415469 School District Northwest ISD/Carroll ISD 1.0902 1.0025 1.695154 1.612469 Special Districts not included above Tarrant County Hospital District 0 0.1875 Tarrant County Comm. College 0 0.11217 Total Special Districts 0 0.29967 MUD 1 District Tax Rate 0.06381 0.06381 Total Overlapping Tax District 1.758964 1.975949 Service Provided Tax Rate 46 January 15, 2025 Regular Meeting Agenda Packet 89 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1 TSI-5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS SEPTEMBER 30, 2024 Due During Fiscal Principal Due Interest Due Years Ending 1-Sep Mar 1/ Sep 1 Total 2025 1,265,000 538,296 1,803,296 2026 1,285,000 511,556 1,796,556 2027 1,325,000 482,948 1,807,948 2028 1,360,000 452,287 1,812,287 2029 1,400,000 419,307 1,819,307 2030 1,440,000 383,809 1,823,809 2031 1,485,000 344,703 1,829,703 2032 1,400,000 304,049 1,704,049 2033 1,440,000 263,749 1,703,749 2034 1,500,000 221,124 1,721,124 2035 1,130,000 175,675 1,305,675 2036 515,000 142,612 657,612 2037 250,000 129,538 379,538 2038 255,000 122,038 377,038 2039 265,000 114,069 379,069 2040 275,000 105,788 380,788 2041 285,000 96,850 381,850 2042 290,000 87,588 377,588 2043 300,000 78,163 378,163 2044 310,000 68,413 378,413 2045 320,000 58,338 378,338 2046 330,000 47,538 377,538 2047 345,000 36,400 381,400 2048 355,000 24,756 379,756 2049 365,000 12,775 377,775 19,490,000$ 5,222,362$ 24,712,362$ Due During Fiscal Principal Due Interest Due Years Ending 1-Sep Mar 1/ Sep 1 Total 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 3,435,000$ 641,263$ 4,076,263$ All Bonded Debt Series General Obligation Bonds - Series 2014 (5,765,000) 47 January 15, 2025 Regular Meeting Agenda Packet 90 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1 TSI-5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (CONTINUED) SEPTEMBER 30, 2024 Due During Fiscal Principal Due Interest Due Years Ending 1-Sep Mar 1/ Sep 1 Total 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 1,625 126,625 855,000$ 44,980$ 899,980$ Due During Fiscal Principal Due Interest Due Years Ending 1-Sep Mar 1/ Sep 1 Total 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 5,845,000$ 1,111,125$ 6,956,125$ Due During Fiscal Principal Due Interest Due Years Ending 1-Sep Mar 1/ Sep 1 Total 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 2,925,000$ 376,794$ 3,301,794$ Revenue Bonds - Series 2015 (9,230,000) Revenue Bonds - Series 2016 (4,635,000) Unlimited Tax Refunding Bonds, Series 2020 (1,220,000) Refunded Bond: M1 Series 2010 48 January 15, 2025 Regular Meeting Agenda Packet 91 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1 TSI-5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS (CONTINUED) SEPTEMBER 30, 2024 Due During Fiscal Principal Due Interest Due Years Ending 1-Sep Mar 1/ Sep 1 Total 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 6,430,000$ 3,048,200$ 9,478,200$ (7,080,000) Revenue Bonds - Series 2019 49 January 15, 2025 Regular Meeting Agenda Packet 92 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TSI-6 CHANGES IN LONG-TERM BONDED DEBT SEPTEMBER 30, 2024 Series 2014 M1 GO Series 2020 Series 2015 Series 2016 Series 2019 GO Bonds GO Bonds Revenue Bonds Revenue Bonds Revenue Bonds Total Interest rate 1.50-3.50%1.3%2.0-3.25%0.53-2.12%3.00-3.50% Date interest payable 3/1 & 9/1 3/1 &9/1 3/1 & 9/1 3/1 & 9/1 3/1 & 9/1 Maturity date 9/1/2034 9/1/2031 9/1/2035 9/1/2036 9/1/2049 Bonds outstanding at beginning of year 3,725,000$ 975,000$ 6,280,000$ 3,145,000$ 6,600,000$ 20,725,000$ Retirements of principal 290,000$ 120,000$ 435,000$ 220,000$ 170,000$ 1,235,000$ Bonds outstanding at end of fiscal year 3,435,000$ 855,000$ 5,845,000$ 2,925,000$ 6,430,000$ 19,490,000$ Retirements of interest 112,313$ 12,675$ 175,838$ 53,115$ 209,188$ 563,127$ Paying agent's name & city:The Bank of TX JP Morgan The Bank of TX The Bank of TX The Bank of TX Corporate Trust Chase Corporate Trust Corporate Trust Corporate Trust Austin, TX New York, NY Austin, TX Austin, TX Austin, TX General Obligation Bond Authority Bonds Amount authorized by voters 34,859,217$ Amount issued 34,855,000$ Remaining to be issued 4,217$ The general obligation bonds were authorized on October 7, 1975 Debt Service Fund cash and cash equivalents balance as of September 30, 2024:1,179,971$ Average annual debt service payment (principal & interest) for remaining term of debt:1,822,847$ 50 January 15, 2025 Regular Meeting Agenda Packet93 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TS1-7 COMPARATIVE SCHEDULES OF REVENUES AND EXPENDITURES-FIVE YEARS GENERAL FUND SEPTEMBER 30, 2024 REVENUE 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 Ad valorem property taxes 1,404,929$ 1,355,148$ 1,434,197$ 1,378,844$ 1,371,466$ 10.5%9.7% 11.3%12.5%12.6% Water and wastewater charges 10,986,183 11,847,030 10,809,305 9,222,445 9,109,566 82.4%84.6%85.0%83.7%83.6% Inspection and tap fees 14,926 4,100 8,099 12,500 20,300 0.1%0.0%0.1%0.1%0.2% Interest earned 521,771 397,122 66,251 18,386 81,518 3.9%2.8%0.5%0.2%0.7% Debt proceeds - - - - - 0.0%0.0%0.0%0.0%0.0% Transfers In - - - - - 0.0%0.0%0.0%0.0%0.0% Proceeds from Sale of Assets 51,450 110,979 21,001 23,975 12,520 0.4%0.8%0.2%0.2%0.1% Type A Lease Financing - - - - - 0.0%0.0%0.0%0.0%0.0% Miscellaneous and other 356,710 291,169 377,827 359,189 300,746 2.7%2.1%3.0%3.3%2.8% Total revenue 13,335,969$ 14,005,548$ 12,716,680$ 11,015,339$ 10,896,116$ 100.0%100.0%100.0%100.0%100.0% EXPENDITURES Administrative 1,695,946$ 1,546,349$ 1,424,573$ 1,405,997$ 1,388,918$ 13.1%11.5%12.2%13.2%14.4% Water operations 3,599,392 4,157,215 4,025,300 2,982,828 2,919,210 27.7%31.0%34.3%28.1%30.3% Wastewater operations 1,239,627 1,460,607 1,530,667 1,508,659 1,252,392 9.5%10.9%13.1%14.2%13.0% Contribution to Trophy Club Fire Dept.1,220,000 978,435 918,658 839,816 738,348 9.4%7.3%7.8%7.9%7.7% Capital outlay 4,835,000 3,553,442 2,000,049 1,034,637 931,856 37.2%26.5%17.1%9.7%9.7% Transfers Out and Debt Service 404,426 1,694,176 1,823,389 2,858,279 2,405,409 3.1%12.7%15.6%26.9%25.0% Total expenditures 12,994,391$ 13,390,224$ 11,722,635$ 10,630,215$ 9,636,133$ 100%100.0%100.0%100.0%100.0% Excess (deficiency) of revenues over (under) expenditures 341,578$ 615,324$ 994,045$ 385,123$ 1,259,983$ 2.6% 4.4%7.8%3.5%11.6% Total active retail water and/or wastewater connections 3,404 3,407 3,379 3,374 3,371 Amounts Percentages of total revenues/expenses 51 January 15, 2025 Regular Meeting Agenda Packet94 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TSI-7 COMPARATIVE SCHEDULES OF REVENUES AND EXPENDITURES-FIVE YEARS (Continued) DEBT SERVICE FUND SEPTEMBER 30, 2024 REVENUE 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 Ad valorem property taxes 217,202$ 701,238$ 704,644$ 688,651$ 693,604$ 11.8%30.2%30.8%30.5%31.0% Penalties and interest - - - - - 0.0%0.0%0.0%0.0%0.0% Transfers in from other funds 1,582,198 1,573,226 1,574,226 1,565,786 1,535,035 85.9%67.7%68.8%69.4%68.6% Interest earned 42,885 49,191 7,980 286 6,776 2.3%2.1%0.3%0.0%0.3% Miscellaneous and other - - - - 1,220 0.0%0.0%0.0%0.0%0.1% Total revenue 1,842,285 2,323,655 2,286,850 2,254,723 2,236,635 100.0%100.0%100.0%100.0%100.0% EXPENDITURES Principal retirement 1,235,000 1,665,000 1,625,000 1,580,000 1,370,000 68.6%73.4%71.8%70.2%62.0% Interest and fiscal charges 562,627 601,296 636,539 665,987 837,477 31.3%26.5%28.1%29.6%37.9% Bond admin fees 2,100 2,100 2,600 3,350 3,292 0.1%0.1%0.1%0.1%0.1% Total expenditures 1,799,727 2,268,396 2,264,139 2,249,337 2,210,769 100.0%100.0%100.0%100.0%100.0% Excess (deficiency) of revenues over (under) expenditures 42,558$ 55,259$ 22,711$ 5,386$ 25,865$ 2.3%2.4%1.0%0.2%1.2% ` Amounts Percentage of total revenues/expenses 52 January 15, 2025 Regular Meeting Agenda Packet95 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TSI-8 BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS September 30, 2024 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:$0 (Set by Board Resolution - TWC Section 49.060) Term of Office Fees of Expense Title Elected/Expires Office Paid Reimbursements at Name and Address or Date Hired FY2024 FY2024 Year End Board Members: Kevin Carr 15 Edgemere Drive Trophy Club, TX 76262 5/24-5/28 -$ -$ President Ben Brewster 222 Fresh Meadow Drive Trophy Club, TX 76262 5/22-5/26 -$ -$ Vice-President Doug Harper 16 Fair Green Drive Trophy Club, TX 76262 5/22-5/26 -$ -$ Secretary/Treasurer William Rose 219 Inverness Drive Trophy Club, TX 76262 5/24-5/28 -$ -$ Director Jim Thomas 7 Meadowbrook Lane Trophy Club, TX 76262 12/23-5/26 -$ -$ Director 53 January 15, 2025 Regular Meeting Agenda Packet 96 of 106 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TSI-8 BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS (Continued) SEPTEMBER 30, 2024 Date of Contract Total Paid Out Type of Name and Address or Vendor Created FY 2024 Vendor Consultants/Legal: Denton Central Appraisal District P.O. Box 2816 Denton, TX 76202 4/1/1981 7,871$ Appraiser Tarrant Appraisal District 2500 Handley-Ederville Rd. Fort Worth, TX 76262 10/1/2007 2,143$ Appraiser Rod L Abbott CPA LLC 553 Ridgewood Dr. Van Alstyne, TX 75495 8/27/2020 21,784$ Auditors Halff Associates, Inc. P.O. Box 678316 Dallas, TX 75267-8316 1/1/2017 124,726$ Engineers Garver P.O. Box 736556 Dallas, TX 75373-6556 12/3/2021 127,079$ Engineers Bickerstaff Heath Delgado Acosta LLP 901 S. Mopac Expressway Building #1, Suite 300 Austin, TX 78746 4/1/2023 25,181$ Legal Counsel The Liston Law Firm, P.C. PO Box 188 Rowlett, TX 75030 4/16/2024 16,274$ Legal Counsel New Gen Strategies & Solutions 1300 E. Lookout Dr. Suite 100 Richardson, TX 75082 7/1/2013 6,480$ Rate Consultant Mas Talent LLC 3801 Island Court Carrollton, TX 75007 6/6/2024 13,688$ HR Consultant 54 January 15, 2025 Regular Meeting Agenda Packet 97 of 106 STAFF REPORT AGENDA ITEM: Consider and act to approve the purchase and installation of a return pump from Smith Pump Company, Inc. DESCRIPTION. This request is to replace an existing Wilo return pump in MBR 6 with a Landia pump, including installation. This is the third return pump being replaced as part of the planned replacement of all five MBR return pumps. Pricing is provided utilizing Buyboard Purchasing Cooperative contract #672-22 and included as part of the FY 2025 budget. RECOMMENDATION: Staff recommends approval of pump purchase from Smith Pump Company, Inc. in the amount of $48,050.00 and authorize the General Manager to execute the necessary documents. January 15, 2025 Regular Meeting Agenda Packet 98 of 106 Smith Pump Company, Inc. 301 MB Industrial Blvd Waco, TX 76712 US 800-299-8909Phone: 254-776-0023Fax: www.smithpump.com Monday, November 18, 2024 Quote No: 1Page: 40153 Trophy Club M.U.D. finance@tcmud.org 100 Municipal Drive Trophy Club, TX 76262 Phone: 682-831-4600 Fax: 682 831 0913 Trophy Club M.U.D. finance@tcmud.org 100 Municipal Drive Trophy Club, TX 76262 Mike McMahon Bestway FOB Destination Net 30 Days TXNW - Eduardo Garcia *** QUOTE IS PER BUYBOARD CONTRACT # 672-22 *** Eduardo Garcia eduardog@smithpump.com Landia Wall Pump Landia Wall Pump Model AXD-I 3000 6.5 HP, 900rpm, 460V/3ph, - CI Motor - Thermal Sensors in Windings - 2-Component Epoxy Coating - Moisture Sensor & Seal Control Relay - SS Propeller - Polypropylene Cable Mesh - SS Suspension Bracket - Grab-Link Lifitn Chain/Wire - Coupling flange for bolting onto 12" ANSI Flange - Upper Fixing Bracket - Guide Pipe - Start-Up and Training by Landia Lead Time: 9-10 weeks ARO 1.00 EA $25,120.0025,120.00000 * Installation Rey-Mar Construction to complete: - Demo out existing pump, concrete support, guide rail, minor dewatering. welder to cut existing horizontal piece of spool - labor intense due to being inside of a tank. extra clean. - Installation of proposed pump. Install new concrete base, weld additional 12" SS 304 piece with (1) 12" SS flange, bolts and gaskets / install new guide rails, anchors & epoxy. minor disinfection Exclusions: - Full Tank disinfection, RMC start-up, major dewatering of existing tank January 15, 2025 Regular Meeting Agenda Packet 99 of 106 Smith Pump Company, Inc. 301 MB Industrial Blvd Waco, TX 76712 US 800-299-8909Phone: 254-776-0023Fax: www.smithpump.com Monday, November 18, 2024 Quote No: 2Page: 40153 1.00 EA $22,930.0022,930.00000 * Total: $48,050.00* Indicates which quantity price is included in the Total Prices are Valid Until Wednesday, December 18, 2024 ACCEPTED BY: ____________________________________________________ PRINTED NAME: ___________________________________________________ PURCHASE ORDER (IF APPLICABLE): ___________________________________ SIGNED ON DATE: __________________________________________________ This quotation is made in accordance to BuyBoard Contract Number 672-22. January 15, 2025 Regular Meeting Agenda Packet 100 of 106 Smith Pump Company, Inc. 301 MB Industrial Blvd Waco, TX 76712 US 800-299-8909Phone: 254-776-0023Fax: www.smithpump.com Monday, November 18, 2024 Quote No: 1Page: 40153 Terms and Conditions 1.Applicability - These Terms and Conditions of Sale (“Terms”) shall govern all sales of equipment or services to Customer. These Terms supersede any prior written or oral agreement, understanding, representation or promise and any pre-printed or standard terms and conditions contained in Customer’s request for quote, purchase order, invoice, order acknowledgement or similar document. These Terms may not be amended, supplemented, changed or modified except by concurrent or subsequent written agreement signed by an authorized representative of both Smith Pump Company (“SPCO”) and Customer. SPCO’s acknowledgement of Customer’s purchase order shall not constitute acceptance of any terms or conditions contained therein which are in any way inconsistent with the Terms. Any additional or different terms or conditions included in any acceptance of this quotation are expressly disclaimed and rejected in advance, and unless there is prior mutual agreement otherwise, shall not become a part of any contract resulting from this quotation. 2.Price - Unless otherwise stated in this quotation, all prices are FOB shipping point. All transportation, insurance and similar charges incident to delivery shall be borne by the Customer. This quotation is valid for thirty (30) days only. Shipping dates are approximate and are based on prompt receipt of all necessary information . In the case of delay in furnishing complete information to SPCO, dates of shipment may be extended for a reasonable time. In the event SPCO provides transport services, these will be quoted as a lump sum price based on destination and shipping mode. In the event Customer requests a delay or suspension in the completion and/or shipment of equipment or services covered by this quotation, or any part thereof, for any reason, the parties shall agree upon any cost and/or scheduling impact of such delay and all such costs to Customer’s account. Any delay period beyond thirty (30) days after original scheduled shipment date shall require Customer to (i) take title and risk of loss of any equipment covered by this quotation, and (ii) make arrangements for the storage of such equipment with SPCO or other party. SPCO’s invoice, which is contractually based on shipment, shall be issued upon SPCO’s readiness to ship the equipment covered by this quotation. SPCO shall not be liable for delay and delivery due to causes beyond its reasonable control including, but not limited to, acts of God, acts of government, acts of Customer, fires, labor disputes, boycotts, floods, epidemics, quarantine restrictions, war, insurrection, terrorism, riot, civil or military authority, freight embargos, transportation shortages or delays, unusually severe weather or inability to obtain necessary labor, materials or manufacturing facilities due to such causes. In the event of any such delay, the date of delivery shall be extended for a length of time equal to the period of the delay. 3.Warranty - SPCO warrants new equipment or parts to be free from defects in materials and workmanship for a period of eighteen (18) months from the date of shipment or twelve (12) months from the date of startup or initial use, whichever comes first. SPCO SHALL NOT BE RESPONSIBLE FOR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL OR LIQUIDATED DAMAGES. NO EXPRESSED OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE SHALL APPLY. Repairs performed by SPCO are warranted against defects in workmanship and/or materials for a period of twelve (12) months from the date of shipment. SPCO will not be responsible for any removal or reinstallation charges or transportation charges in cases where equipment has failed under these warranty conditions. SPCO’s sole obligation and Customer’s sole remedy under this warranty is repair or replacement at SPCO’s election. Customer agrees to provide SPCO reasonable and clear access to any equipment covered by this warranty which may include removal or materials or structures as well as supplying any equipment, materials or structures which are necessary to provide reasonable access to the equipment being repaired or replaced. Costs to remove and/or reinstall equipment for warranty purposes shall be the responsibility of Customer. Replacement parts or repairs furnished under this warranty shall be subject to warranty provisions herein for the remaining warranty period. All equipment repaired or replaced will be re-warranted only for the remainder of the original warranty period. SPCO does not warrant the equipment covered by this quotation or any repair/replacement part against the effects of erosion , corrosion , or normal wear and tear due to operation or the environment. The warranty and remedies set forth herein are conditioned upon proper storage, installation, use and maintenance of the equipment covered by this quotation in all material respects, and in accordance with SPCO’s written recommendations . Customer must notify SPCO in writing of any warranty claim during the warranty period or within thirty (30) days thereafter. SPCO will not be liable under this warranty if warranted goods have been exposed or subjected to any (1) maintenance, repair, installation, handling, packaging, transportation , storage, operation, or use which is improper or otherwise not in compliance with SPCO’s instructions, (2) alteration, modification or repair by anyone other than SPCO or those specifically authorized by SPCO, (3) accident, contamination, foreign object damage, abuse, neglect, or negligence after shipment to Customer, (4) damage caused by failure of a SPCO supplied product not under warranty or by any hardware or software not supplied by SPCO, (5) use of counterfeit or replacement parts that are not manufactured by the manufacturer of goods provided by SPCO or approved by SPCO for use in goods provided by SPCO, or (6) goods which are normally consumed in operation or which have normal life inherently shorter than the warranty period including, but not limited to, consumables (e.g. lamps, batteries, storage capacitors). 4.Payment - All prices are net cash to be paid thirty (30) days after date of invoice. Customer agrees to make payment within that period . Discounts will apply only as stated on the invoice. Invoices unpaid for thirty (30) days after issuance shall bear interest at the highest lawful rate due and payable on any invoiced account, which is delinquent and not paid within the stated terms. Should Customer for any reason fail to pay in accordance with these terms, Customer agrees to pay all collection costs, attorney’s fees and expenses incurred in collecting payment. If Customer’s financial condition is or becomes unsatisfactory to SPCO, SPCO reserves the right to (a) require payment from Customer on a cash in advance basis, (b) require a letter of credit or other acceptable security before shipment, (c) cancel shipment at any time prior to delivery without further obligation or liability on SPCO’s part, (d) terminate any contract or obligation on the part of SPCO, or (e) require other special payment terms acceptable to SPCO to assure payment. All extensions of credit are subject to the approval of SPCO’s credit department and management. 5.Joint Check Agreement - If Customer fails to pay laborers and materialmen within thirty (30) days after payment by SPCO, SPCO will have the right to make future payments by check payable jointly to Customer and laborers or materialmen to the extent of unpaid indebtedness arising out of the job. SPCO will credit joint checks against the contract sum on the next payment application. 6.Taxes - The amount of all federal, state or local taxes applicable to the sale, use, delivery or transportation of the equipment or services sold hereunder and all duties, imports, tariffs, and other similar levies shall be added to the contract price and paid by the Customer except where the Customer shall furnish an appropriate certificate of exemption. 7.Property Damage - SPCO shall not be responsible for damage to topsoil or groundcover in connection with the work or service performed under this contract. SPCO shall not be responsible for claims arising from the pumping of water onto the ground which is necessary in connection with the service or work provided by SPCO. The customer agrees to hold SPCO harmless from claims arising out of damage caused by the pumping of water onto the ground. 8.Startup - If the equipment supplied pursuant to this quotation has a warranty requirement, qualified SPCO personnel must be present during the initial equipment startup and commissioning . Failure to request and assure the presence of qualified SPCO personnel will void any warranty herein. Requests for startup must occur at least seven (7) days prior to the scheduled date of the startup. 9.Limitation of Liability - The remedies set forth herein are exclusive and the total liability of SPCO with respect to this quotation, and any contract for goods or services arising from this quotation, or for any breach thereof, whether based on contract, warranty, torts (including negligence), indemnity, strict liability or otherwise, shall not exceed the quotation or sales price of the specific equipment or service which gives rise to the claim. 10.Setoff - All amounts that Customer owes SPCO under this quotation shall be due and payable in accordance with the terms of the quotation. Customer shall not setoff such amounts or any portion thereof, whether or not liquidated, against sums which Customer asserts are due to it, its parent, affiliates, subsidiaries or other division under other transactions with SPCO. 11.Customer Cancellation - Customer may cancel this order only upon written notice and payment to SPCO of reasonable and proper cancellation charges. In the event of cancellation, Customer must pay for all material, expense and labor costs incurred by SPCO in connection with the materials and services to be provided pursuant to this quotation, as well as all expenses relating to any specially fabricated materials and restocking charges. 12.Assignment - Neither party may assign this order or any portion thereof without the advance, written consent of the other party, which consent shall not be unreasonably withheld. 13.Waiver /Severability - Failure by SPCO to assert all or any of its rights upon any breach by Customer shall not be deemed a waiver of such rights either with respect to such breach or any subsequent breach, nor shall any waiver be implied from the acceptance of any payment. No waiver of any right shall extend to or affect any other right Customer may possess nor shall such waiver extend to any subsequent similar or dissimilar breach. If any portion of these Terms are determined to be illegal, invalid or unenforceable for any reason, such provision shall be deemed stricken for the purposes of the dispute in question and all other provisions shall remain in full force and effect. 14.Applicable Law - The contract involving the sale of the equipment and services covered by this quotation shall be interpreted in accordance with the laws of the State of Texas. This contract is performable in McLennan County, Texas and venue for any court action in any way relating to or arising out of this contract shall be McLennan County, Texas. January 15, 2025 Regular Meeting Agenda Packet 101 of 106 STAFF REPORT AGENDA ITEM: Consider and act to adopt Order No. 2025-0115 declaring the following vehicle and CIP trailer to be surplus property of the District and authorize staff to sell such property. DESCRIPTION: This vehicle currently has 83,355 miles and has met the criteria set forth in the Vehicle Replacement Policy and its replacement is included as part of the FY 2025 Capital Improvements. The CIP trailer is no longer needed due to the CIP tank project. And the loading forks are no longer needed due to the purchase of the new skid steer loader. a. 2017 Dodge 2500 b. CIP trailer c. Loading forks RECOMMENDATION: Approve Order No. 2025-0115 declaring the operations vehicle, CIP trailer and backhoe forks as surplus property. ATTACHMENTS: Order No. 2025-0115 January 15, 2025 Regular Meeting Agenda Packet 102 of 106 ORDER NO. 2025-0115 ORDER DECLARING PROPERTY SURPLUS AND AUTHORIZING DISPOSITION THEREOF WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is a conservation and reclamation district, a body corporate and politic and governmental agency of the State of Texas, created under Article XVI, Sec. 59 of the Texas Constitution by order of the Texas Water Commission, now the Texas Commission on Environmental Quality (“TCEQ”), and the District operates under Chapters 49 and 54 of the Texas Water Code, as amended; WHEREAS, Section 49.226 of the Texas Water Code provides that any personal property valued at more than $300 which is found by the board to be surplus and is not needed by the district may be sold under order of the board either by public or private sale; WHEREAS, the District owns that certain property more particularly described in Exhibit “A” attached hereto, which property is surplus and no longer used, useful or needed by the District for its operations (the “Property”); and WHEREAS, the Board of Directors desires to declare the Property to be surplus and not needed by the District and further desires to authorize the disposal thereof. NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: Section 1. The facts and recitations in the preamble of this Order are hereby found and declared to be true and correct and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. Section 2. The Board of Directors of the District hereby finds and declares that the Property is surplus and not needed by the District. Section 3. The Board of Directors hereby orders and directs that the Property be disposed of by public sale. Section 4. The General Manager is hereby authorized to take any and all actions necessary to effectuate this Order. Section 5. Upon adoption of this Order, an original Order shall be filed in the permanent records of the District. January 15, 2025 Regular Meeting Agenda Packet 103 of 106 PASSED AND APPROVED this 15th day of January, 2025. _________________________________ Kevin R. Carr, President _________________________________ Doug Harper, Secretary/Treasurer (SEAL) _________________________________ Laurie Slaght, District Secretary January 15, 2025 Regular Meeting Agenda Packet 104 of 106 Exhibit “A” Surplus Property 1. 2017 Dodge 2500 (Water) 2. CIP Trailer 3. Forks for backhoe January 15, 2025 Regular Meeting Agenda Packet 105 of 106 January 15, 2025 Regular Meeting Agenda Packet 106 of 106