HomeMy WebLinkAboutFY Ended September 30, 2024TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO.1
AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
SEPTEMBER 30, 2024
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
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
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
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
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
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.
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 $3,375,340, which amounts to a
7.8% increase in net position for the year ended September 30, 2024.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
6
Government-wide Financial Analysis – Continued
District operational analysis - The following table provides a summary analysis of the District's
Statements of Net Position for the fiscal years ending on September 30, 2024 and 2023.
Table 1
Condensed Statements of Net Position
FY24 FY23
Current and other assets 19,379,240$ 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
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
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.
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 $2,073.
Rates highlights:
Effective October 1st, 2024, the Board of Directors for the District adopted an increase in
effluent and volumetric water rates. Base water rates and sewer rates remained the same.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
10
Requests for information
This financial report is designed to provide a general overview of the District's
consolidated finances for all interested parties. Questions concerning any of the
information in this report or requests for additional information should be directed to
the Trophy Club Municipal Utility District No. 1, Finance Manager, 100 Municipal
Drive, Trophy Club, Texas 76262.
Governmental
Activities
Assets
Cash and cash equivalents 7,520,536$
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
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
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
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
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
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
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.
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.
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.
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.
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.
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$
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
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.
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$
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$
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$
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
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
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.
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)$
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$
$121,104 reported as deferred outflow of resources for contributions made subsequent to the
measurement date will be recognized as an addition to the net pension asset in the 2024 measurement
year.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
33
NOTE 8. RETIREMENT PLAN - CONTINUED
The net amounts of the employer’s balances of deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Measurement Year Ending:
2024 (20,038)$
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 $5,000.
Membership information is shown in the chart below:
Inactive employees or beneficiaries currently receiving benefits:7
Inactive employees entitled, but not yet receiving benefits:3
Active employees:14
Total:24
Total OPEB Liability
The District’s total OPEB liability was determined by an actuarial valuation dated December 31, 2023. Estimates
include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer are subject to
continual revisions as actual results are compared with past expectations and new estimates are made about the
future.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
34
NOTE 9. OTHER POST-EMPLOYMENT BENEFITS - CONTINUED
Discount Rate
The discount rate is based on a yield or index for 20-year, tax-exempt general obligation municipal bonds with an
average rating of AA/Aa or better for benefits not covered by plan assets. The 20 Year Bond GO Index published
by bondbuyer.com was used in determining the discount rate used to measure the Total OPEB Liability as of
December 31, 2023 (measurement date under GASB 75). At this date, the discount rate was 3.26%.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the District’s Total OPEB Liability if it were calculated using a discount rate that is 1%
point lower (2.26%) or 1% point higher (4.26%) than the current rate, for measurement period ended December 31,
2023:
Current
1% Decrease Discount Rate 1% Increase
2.26%3.26%4.26%
Total OPEB liability 38,792$ 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 $1,863 of contributions made after the measurement date of the total OPEB liability but before the end of
the District's reporting period will be recognized as a reduction of the total OPEB liability in the next
measurement year.
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
35
NOTE 9. OTHER POST-EMPLOYMENT BENEFITS – CONTINUED
The other amounts reported as deferred inflows/outflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Measurement Year Ending:
2024 (1,420)$
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.
REQUIRED SUPPLEMENTARY INFORMATION
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
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
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
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
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
OTHER SUPPLEMENTARY INFORMATION
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
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
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
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
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
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 $100 net taxable value) for all overlapping jurisdictions. Include any taxing entities which overlap 10% or more
of the District.
Denton County Tarrant County
County Denton/Tarrant 0.189485 0.1945
City Town of Trophy Club 0.415469 0.415469
School District Northwest ISD/Carroll ISD 1.0902 1.0025
1.695154 1.612469
Special Districts not included above
Tarrant County Hospital District 0 0.1875
Tarrant County Comm. College 0 0.11217
Total Special Districts 0 0.29967
MUD 1 District Tax Rate 0.06381 0.06381
Total Overlapping Tax District 1.758964 1.975949
Service Provided Tax Rate
46
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1
TSI-5 LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS
SEPTEMBER 30, 2024
Due During Fiscal Principal Due Interest Due
Years Ending 1-Sep Mar 1/ Sep 1 Total
2025 1,265,000 538,296 1,803,296
2026 1,285,000 511,556 1,796,556
2027 1,325,000 482,948 1,807,948
2028 1,360,000 452,287 1,812,287
2029 1,400,000 419,307 1,819,307
2030 1,440,000 383,809 1,823,809
2031 1,485,000 344,703 1,829,703
2032 1,400,000 304,049 1,704,049
2033 1,440,000 263,749 1,703,749
2034 1,500,000 221,124 1,721,124
2035 1,130,000 175,675 1,305,675
2036 515,000 142,612 657,612
2037 250,000 129,538 379,538
2038 255,000 122,038 377,038
2039 265,000 114,069 379,069
2040 275,000 105,788 380,788
2041 285,000 96,850 381,850
2042 290,000 87,588 377,588
2043 300,000 78,163 378,163
2044 310,000 68,413 378,413
2045 320,000 58,338 378,338
2046 330,000 47,538 377,538
2047 345,000 36,400 381,400
2048 355,000 24,756 379,756
2049 365,000 12,775 377,775
19,490,000$ 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
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
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
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
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
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
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
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
ANNUAL FILING
AFFIDAVIT
THE ST A TE OF TEXAS }
COUNTY OF DENTON }
I, Kevin R. Carr -----------------(Name of Duly Authorized Representative)
Of Trophy Club Municipal Utility District No. 1
(Name of District)
Hereby swear, or affirm, that the district named above has reviewed and approved at a meeting of
the Board of Directors of the District on the 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 repo1i 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--2.i_.
By:���-":..J_, 1�£:'.'.:.:_ _ __:c_=---=G � .... �-==--
(�of District Representative)
Kevin R. Carr, President, Board of Directors
(Typed Name & Title)
Sworn to and subscribed to before me this It:>�
My Commission Expires On: J� 3r4
Notary Public in and for the State of Texas
, 202zi_.