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Home My WebLink About1982 04 30 Financial Report - Clearwoods improvement District 11 I! I! 1! 11 1! 401 11/ CLEARWOODS IMPROVEMENT DISTRICT REPORT ON FINANCIAL STATEMENTS (With Supplemental Material) WIR YEAR ENDED APRIL 30, 1982 >ai BQEEDLOVE oco CERTIFIED PUBLIC ACCOUNTANTS 4 1! TABLE OF CONTENTS 1! Exhibits Page ` Auditors' Report 1 11 Combined Balance Sheet - All Fund Types and A 2 Account Groups Combined Statement of Revenues, Expenditures B 4 Ill and Changes in Fund Balances - All Governmental Fund Types 411 Statement of Revenues, Expenditures and Changes C 6 im in Fund Balances - Budget and Actual - General Fund 111 Summary of Accounting Policies and Notes to 7 Financial Statements 44 Supplemental Schedules 4 Schedules 44 Auditors' Report on Other Financial Information 13 14 Analysis of Changes in Cash and Temporary A-1 15 Investments - All Governmental Fund Types m General Long-Term Debt and Debt Service A-2 16 Requirements m Analysis of Changes in General Long-Term Debt A-3 18 Schedule of Temporary Investments A-4 20 Analysis of Taxes Receivable A-5 21 Analysis of Organization Costs A-6 22 11 Analysis of Changes in General Fixed Assets A-7 23 it Comparative Schedule - Revenues and Expenditures - A-8 24 Five Years it Insurance Coverage A-9 26 Board Members, Key Personnel and Consultants A-10 28 Management Letter 31 II 11 WEEDLOVE oco CERTIFIED PUBLIC ACCOUNTANTS 3730 F.M. 1960 West, Suite 300 Houston, Texas 77068 RICHARD W.BREEDLOVE (713)440-3347 DONN A.LAND July 15, 1982 41/1 Board of Directors Clearwoods Improvement District 41 Harris County, Texas 40 We have examined the Combined Financial Statements - All Fund Types and Account Groups of Clearwoods Improvement District as of April 30, 1982, 0, and for the year then ended. Our examination was made in accordance with generally accepted auditing standards and accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. 4, In accordance with the suggestions of the Texas Water Rights Commission, the District did not depreciate its general fixed assets. We observed no departures by the District from the requirements of the bond orders or from applicable laws and regulations except as described in detail in Note 6 of the Notes to Financial Statements. In our opinion, the above-mentioned combined financial statements present fairly the financial position of Clearwoods Improvement District for all fund types and account groups as of April 30, 1982, and the results of ql its operations for the year then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceeding year, except for the change described in Note 12 of 44 the Notes to Financial Statements. We concur with these changes. a ql e/Le.togl 4 4 4 4 1! 1: Account Groups General Long-Term General Memorandum Debt Fixed Assets Total ''al $ - $ - $ 41 855 - - 100 000 - - 141 855 a - - 51 114 - - 3 226 10 - - 238 - - 196 433 Iii - 2 836 651 2 836 651 40 - 299 879 299 879 im 109 487 - 109 487 IN 2 250 513 - 2 250 513 A $2 360 000 $3 136 530 $5 692 963 MI 41 $ - $ - $ 68 537 - - 19 794 011 - - 12 250 - - 3 226 - - 103 807 10 2 360 000 - 2 360 000 2 360 000 - 2 463 807 iiii - 3 136 530 3 136 530 - 21 956 - - 109 487 (23 627) (15 190) - 3 136 530 3 229 156 $2 360 000 $3 136 530 $5 692 963 4 3 Exhibit B MI • CLEARWOODS IMPROVEMENT DISTRICT P * COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES OP FOR THE YEAR ENDED APRIL 30, 1982 4, Po Debt General Service Fund Fund 1.11 OPERATING REVENUES: Service revenue $ 238 366 $ - Tap connection fee 105 168 - ri Property taxes - 276 487 Penalty and interest revenues 6 613 13 122 Total Operating Revenues 350 147 289 609 r OPERATING EXPENSES: Purchased sewer services 104 230 - Fi Professional fees 21 271 2 504 Purchased and contracted services 60 725 7 177 k Consumable supplies and materials 1 599 - Recurring operating expenses 112 115 231 Water tap expense 1 585 - Total Operating Expenses 301 525 9 912 !II NET INCOME FROM OPERATIONS: 48 622 279 697 k Less: Debt service expenses - 157 510 Principal retirement - 80 000 r NET INCOME 48 622 42 187 ADDITIONS TO FUND BALANCE: I' i Transferred from debt service fund - - Total Additions to Fund Balance 48 622 42 187 r DEDUCTIONS FROM FUND BALANCE: Investment in uncollected taxes - 6 858 Transferred to general fixed assets - - rim Transferred to capital projects fund - 20 000 Total Deductions from Fund Balance - 26 858 NET CHANGE IN FUND BALANCES FOR THE YEAR 48 622 15 329 FUND BALANCE AT MAY 1, 1981 (63 812) 116 114 11, FUND BALANCE AT APRIL 30, 1982 $ (15 190) $ 131 443 F See the accompanying Summary of Accounting Policies and Notes to Financial Statements. 4 1! 1! Capital Projects Memorandum Fund Total $ $ 238 366 105 168 4 - 276 487 186 19 921 186 639 942 111 104 230 - 23 775 - 67 902 1 599 40 - 112 346 1 585 311 437 141 186 328 505 157 510 4 - 80 000 186 90 995 4 4 20 000 20 000 20 186 110 995 41 6 858 qi 47 856 47 856 - 20 000 47 856 74 714 41 4 (27 670) 36 281 410 4 043 56 345 $ (23 627) $ 92 626 RI qg 44 5 Exhibit C • CLEARWOODS IMPROVEMENT DISTRICT op STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND *} BALANCES - BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED APRIL 30, 1982 PP o OP Favorable (Unfavorable) Actual Budget Variance OP OPERATING REVENUES: i"' Service revenue $ 238 366 $ 249 562 $ (11 196) Tap connection fees 105 168 7 086 98 082 Penalty and interest revenues 6 613 6 689 (76) Total Operating Revenues 350 147 263 337 86 810 IIP OPERATING EXPENSES: o Purchased sewer services 104 230 20 286 (83 944) Professional fees 21 271 20 363 (908) FP Purchased and contracted services 60 725 66 370 5 645 Consumable supplies and materials 1 599 1 863 264 Recurring operating expenses 112 115 96 083 (16 032) Fp Water tap expense 1 585 100 (1 485) o Total Operating Expenses 301 525 205 065 (96 460) PP NET INCOME 48 622 58 272 (9 650) NET CHANGE IN FUND BALANCES FOR THE YEAR 48 622 58 272 (9 650) FUND BALANCE AT MAY 1, 1981 (63 812) (63 812) — o FUND BALANCE AT APRIL 30, 1982 $ (15 190) $ (5 540) $ (9 650) r F PP i F r b PP 1 r 6 See the accompanying Summary of Accounting Policies and Notes to Financial Statements. 6 CLEARWOODS IMPROVEMENT DISTRICT SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS APRIL 30, 1982 NOTE (1) CREATION OF DISTRICT 1! Clearwoods Improvement District, Harris County, Texas was created by Acts of the 59th Legislature, Regular Session 1965. The Board of Directors held its organizational meeting on August 10, 1965 , and the first bonds 11 were sold on March 21, 1967. NOTE (2) SIGNIFICANT ACCOUNTING POLICIES The accompanying financial statements have been prepared on the modified accrual basis of accounting applicable to governmental funds in accordance with the standards established by Statement No. 1 issued by the National Council on Governmental Accounting. Under this method, all expenditures, 411 except bond interest, and all revenues currently available are accrued. The transactions of the District are accounted for in the following funds 41 and account groups: Ai Governmental Funds General Fund - To account for all revenues and expenditures not required to be accounted for in other funds. Debt Service Fund - To account for the accumulation of financial resources for, and the payment of, general long-term debt principal and interest, paid principally from property taxes levied by the District. 11 Capital Projects Fund - To account for financial resources designated to construct or acquire capital facilities and improvements. Such resources are derived principally from proceeds of the sale of bonds. 11 Account Groups General Fixed Assets - To account for the facilities of the District. a General Long-Term Debt - To account for the outstanding principal balance 41 of General Long-Term Debt obligations. Memorandum Totals The memorandum totals represent the aggregate amount of all governmental funds and account groups included in the statements. No eliminations have been made and this total does not present consolidated financial information. 41 I 4, 7 4 Or VP CLEARWOODS IMPROVEMENT DISTRICT SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS APRIL 30, 1982 OP Continued OP General Fixed Assets The District capitalizes all costs associated with the creation of the /, District. All costs directly associated with the sale of bonds are being capitalized. From the date of the sale of bonds, through the date of the completion of related improvements, interest revenues and interest expen- ditures related to bond proceeds are being capitalized. These amounts PP are shown on the Balance Sheet as District Organizational Costs. In accordance with the requirements of the Texas Department of Water Resources, the amounts are not being amortized. PP The District capitalized the cost of meters and boxes and residential lines as part of the water system in General Fixed Assets. The District IP does not maintain detailed fixed asset records, and thus detailed cost information on individual assets is not readily available. In accordance with the requirements of the Texas Department of Water Resources, fixed assets are not being depreciated. Accordingly, replacements of fixed assets and repairs are not capitalized. The full cost of facilities owned by the District is capitalized; funds provided by others are shown as contributions in the Balance Sheet. PP NOTE (3) WATER AND SEWER SERVICE RATES The District has established the following rates effective September 7, r 1978: Water Service Residential and Commercial Monthly Charge: First 8,000 Gallons of Water Used (minimum bill) $7.00 Each 1,000 Gallons of Water Used Thereafter .65 Sewer Service Residential and Commercial Monthly Charge: First 50,000 Gallons of Water Used (minimum bill) $8.00* 1111 Each 1,000 Gallons of Water Used Thereafter .25 r PP *Amended September 1, 1980 8 !! CLEARWOODS IMPROVEMENT DISTRICT SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS APRIL 30, 1982 Continued 11 41 Tap Fees Residential Tap Fee (3/4" Tap) $475.00 The above fee includes the cost of meter, box and installation. 11 For connections of over 3/4 inch, the District will establish tapping charges by separate order or agreement. 41 Commercial tap-on fee shall be a negotiated amount per square foot of land in addition to the cost of meter, box and installation. Residential and commercial sewer inspection fee $ 25.00 Deposits Per customer $ 15.00 The following rates were established effective June 1, 1982: 411 Water Service Residential and Commercial Monthly Charge: 441 Ai First 7,000 Gallons of Water Used (minimum bill) $ 7.00 Each 1,000 Gallons of Water Used Thereafter .75 11, Sewer Service 41 Residential and Commercial Monthly Charge: 'ty First 20,000 Gallons of Water Used (minimum bill) $ 10.00 Each 1,000 Gallons of Water Used Thereafter .50 011, Tap Fees Residential Tap Fee (3/4" Tap) $600.00 Residential Tap Fee (3/4" Tap) non-residents 750.00 4 The above fee includes the cost of meter, box, and installation 911 for connections of over 3/4 inch, the District will establish tapping charges by separate order or agreement. Commercial tap-on fee shall be five cents/square foot of land in addition to the cost of meter, box, and installation. 4 9 CLEARWOODS IMPROVEMENT DISTRICT SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS OP APRIL 30, 1982 Continued PP NOTE (4) PLEDGE OF TAX AND OPERATING REVENUES The bonds are payable from the proceeds of an ad valorem tax levied upon IP all taxable property subject to taxation within the District, without limitation as to rate or amount, and are further payable from and secured • by a lien on and pledge of the net revenues to be received from the op- OP eration of the District's waterworks and sanitary sewer system. NOTE (5) BOND INTEREST RESERVE PP In accordance with the Bond Orders, a portion of the bond proceeds was deposited into the Debt Service Fund and reserved for the payment of bond interest during the construction period. This bond interest is being p capitalized as a district organizational cost as it is paid and the reserve account reduced accordingly. NOTE (6) ENGINEERING REPORT PP The Bond Order states that a complete engineering inspection report of the operations and physical condition of the plant and system shall be made P" each year by an independent qualified engineer. At the Balance Sheet date, said report had not been made. PP NOTE (7) REDEMPTION OF BONDS The outstanding bonds of Clearwoods Improvement District, Harris County, Texas, are callable for redemption prior to maturity at the option of therP District. The bonds may be called in whole or in part in inverse numerical order for the purpose of retirement or refunding, or both, at par, in addition to unpaid accrued interest. Bonds of the Series 1967, Seriesri 1967-A, Series 1972, and Series 1974 may be called on February 1, 1982, August 1, 1982, April 1, 1987, and September 1, 1989, respectively, or any interest date thereafter. rP NOTE (8) WATER AND SEWER SERVICE CUSTOMERS The following is a comparison of the number of metered water and sewer r service customers serviced by the District: April 30, 1981 1,220rP April 30, 1982 1,221 r r 10 MO OR CLEARWOODS IMPROVEMENT DISTRICT 411 SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS ,xn APRIL 30, 1982 Continued MR NOTE (9) OPERATING AND TAX FUND PAYMENTS TO DEBT SERVICE FUND MO The Bond Orders state that the District is to transfer on a monthly basis to the Debt Service Fund, commencing when any part of the water and sewer ,R system is placed in operation, an amount not less than one-sixth of the next maturing installment of interest and an amount not less than one- twelfth of the next maturing installment of principal. In addition, a sum equal to 20% of such monthly payments is to be paid to the Debt MR Service Fund until the fund balance is equal to the total principal and interest requirements for the current year and the next succeeding year. At the Balance Sheet date, the Operating and Tax Fund Revenues have not qi been sufficient to make payments required by the Bond Order. However, the ad valorem tax levied by the District and the restricted cash and temporary investments have been sufficient to meet the annual bond principal and MI interest payments, not provided by funds from the bond sales. NOTE (10) RESTRICTED CASH AND TEMPORARY INVESTMENTS 4, The following balances were restricted by the Bond Orders as of April 30, u 1982: IN Restricted For Servicing of Acquisition of Bonded Debt Fixed Assets 41 Cash $ 10 062 $ 297 Temporary Investments 100 000 - $110 062 $ 297 NOTE (11) INSURANCE me The Bond Orders state that so long as any of the bonds are outstanding, the District agrees to maintain insurance for the benefit of the holders of bonds, on the system of a kind and in an amount which usually would 44 be carried by private companies engaged in a similar type of business The District has physical damage coverage of $209,500 with an 80% co-insurance provision and flood coverage of $125,000. The District has comprehensive general liability coverage with a maximum limit of $300,000. Since no objective criteria has been established for insurance coverage a determination could not be made whether or not the District complied with the requirement. OR 4 MR 11 /1 f! O I I 4i 9 SUPPLEMENTAL SCHEDULES I 4 I 4 I 4 4 I I I 4 J3QEEDLOTE oco CERTIFIED PURER ACCOUNTANTS 3730 F.M. 1960 West, Suite 300 Houston,Texas 77068 RICHARD W. BREEDLOVE (713)440-3347 4 DONNA. LAND 10 July 15, 1982 Board of Directors Clearwoods Improvement District Harris County, Texas I, ski In our opinion, the accompanying information is stated fairly in all ma- ll terial respects in relation to the financial statements taken as a whole, of Clearwoods Improvement District for the year ended April 30, 1982, which 4 are covered by our opinion presented in the first section of this report. The accompanying information is supplemental to the financial statements 111 and is not essential for a fair presentation of the financial position and ' results of operations. Our examination, which was made primarily for the purpose of forming an opinion on the financial statements taken as a whole, 111 included such tests of the accounting records, from which the supplementary information was compiled, and such other auditing procedures as we consider- ed necessary in the circumstances. eittecep.-c 6. I, Schedule A-1 CLEARWOODS IMPROVEMENT DISTRICT Me ANALYSIS OF CHANGES IN CASH AND TEMPORARY INVESTMENTS - ALL GOVERNMENTAL FUND TYPES . FOR THE YEAR ENDED APRIL 30, 1982 M Debt Capital General Service Projects Memorandum Fund Fund Fund Total SOURCES OF CASH AND TEMPORARY INVESTMENTS: Cash receipts from revenues $253 726 $298 711 $ 186 $552 623 ,R Cash transfers from other funds - - 22 856 22 856 Total Cash and Temporary Investments 253 726 298 711 23 042 575 479 ▪ APPLICATIONS OF CASH AND TEMPORARY INVESTMENTS: Cash disbursements for - Current expenditures 256 630 16 851 - 273 481 Debt service - 237 510 - 237 510 Transfer to other funds 2 856 20 000 47 856 70 712 Total Cash and Temporary Investments 4114 Applied 259 486 274 361 47 856 581 703 " INCREASE (DECREASE) IN CASH AND TEMPORARY INVESTMENTS (5 760) 24 350 (24 814) (6 224) gip . CASH AND TEMPORARY INVESTMENT BALANCES BEGINNING OF YEAR 37 256 85 712 25 111 148 079 CASH AND TEMPORARY INVESTMENT BALANCES END OF YEAR $ 31 496 $110 062 $ 297 $141 855 111 15 Schedule A-2 s CLEARWOODS IMPROVEMENT DISTRICT oir GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS APRIL 30, 1982 OP Series 1967 Series 1967A Principal Interest Due Principal Interest Due IP For the Years Due August 1, Due August 1, Ending April 30 February 1 February 1 Total February 1 February 1 Total p► 1983 $ 75 000 $ 20 000 $ 95 000 $ 10 000 $ 39 000 $ 49 000 1984 75 000 16 250 91 250 10 000 38 400 48 400 1985 75 000 12 500 87 500 10 000 37 800 47 800 P► 1986 75 000 8 750 83 750 10 000 37 200 47 200 1987 75 000 5 000 80 000 10 000 36 600 46 600 1988 25 000 1 250 26 250 75 000 36 000 111 000 P 1989 - - - 75 000 31 500 106 500 1990 - - - 75 000 27 000 102 000 1991 - - - 75 000 22 500 97 500 1992 - - - 100 000 18 000 118 000 A"' 1993 - - - 100 000 12 000 112 000 1994 - - .- 100 000 6 000 106 000 1993 - - - - - - p. 1996 - - - - - - 1997 - - - - - - 1998 - - - - - - PIP 1999 - - - - - - 2000 - - - - - - 2001 - - - - - - 2002 - - - - - - P` 2003 - - - - - - , 2004 - - - - - - /" TOTALS $400 000 $ 63 750 $463 750 $650 000 $342 000 $992 000 a PP , CASH AND TEMPORARY INVESTMENTS BALANCES AT APRIL 30, 1982 PP Debt Service Fund $110 062 /' PP /' p' 16 0 li 11 ii Series 1972 Series 1974 Principal Interest Due Principal Interest Due Total 11 Due October 1, Due September 1, Annual April 1 April 1 Total March 1 March 1 Total Requirements 11 $ 10 000 $ 37 800 $ 47 800 $ 10 000 $ 56 035 $ 66 035 $ 257 835 10 000 37 125 47 125 10 000 55 360 65 360 252 135 41 15 000 36 500 51 500 20 000 54 685 74 685 261 485 15 000 35 438 50 438 20 000 53 335 73 335 254 723 20 000 34 425 54 425 20 000 51 985 71 985 253 010 20 000 33 075 53 075 30 000 50 635 80 635 270 960 20 000 31 725 51 724 30 000 48 565 78 565 236 790 20 000 30 375 50 375 30 000 46 465 76 465 228 840 30 000 29 025 59 025 30 000 44 335 74 335 230 860 30 000 27 000 57 000 30 000 42 160 72 160 247 160 30 000 24 975 54 975 30 000 39 940 69 940 236 915 30 000 22 850 52 850 40 000 37 690 77 690 236 540 III 40 000 20 925 60 925 40 000 34 650 74 650 135 575 40 000 18 225 58 225 40 000 31 570 71 570 129 795 40 000 15 525 55 525 40 000 28 490 68 490 124 015 40 000 12 825 52 825 40 000 25 410 65 410 118 235 MI 50 000 10 125 60 125 40 000 22 330 62 330 122 455 50 000 6 750 56 750 50 000 19 250 69 250 126 000 50 000 3 375 53 375 50 000 15 400 65 400 118 775 - - - 50 000 11 550 61 550 61 550 - - - 50 000 7 700 57 700 57 700 - - - 50 000 3 850 53 850 53 850 $560 000 $468 063 $1 028 063 $750 000 $781 390 $1 531 390 $4 015 203 11, 1, 111 4 1 4 1 17 4 Schedule A-3 ow CLEARWOODS IMPROVEMENT DISTRICT ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT FOR THE YEAR ENDED APRIL 30, 1982 p Transactions for The Year Ended p Bonds April 30, 1982 Outstanding Retirements Description Rate Payable May 1, 1981 Principal Interest 10 Clearwoods Improvement District 5.00% 8/1,2/1 $ 450 000 $50 000 $ 22 500 Waterworks and Sewer System PP Combination Tax and Revenue Bonds, Series 1967 k Clearwoods Improvement District 6.00% 8/1,2/1 660 000 10 000 39 500 PP Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967-A ■ Clearwoods Improvement District 6.75% 10/1,4/1 570 000 10 000 38 475 Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1972 Clearwoods Improvement District 6.75% 9/1,3/1 760 000 10 000 56 710 Waterworks and Sewer System 6.90 Combination Tax and Revenue 7.00 Bonds, Series 1974 7.10 p 7.25 7.40 7.50 7.60 7.70 TOTALS (Note 9) $ 2 440 000 $ 80 000 $157 285FP P r • p p 18 1111 11 1 41 11 Debt Service Requirements Bonds For the Year Ending For the Year Ending Outstanding April 30, 1983 April 30, 1984 April 30, 1982 Principal Interest Principal Interest Paying Agent 11 'i $ 400 000 $75 000 $ 20 000 $ 75 000 $ 16 250 Allied Bank of Texas Houston, Texas Mi MI 650 000 10 000 39 000 10 000 38 400 Allied Bank of Texas Houston, Texas 4111 560 000 10 000 37 800 10 000 37 125 Allied Bank of Texas Houston, Texas 11, 750 000 10 000 56 035 10 000 55 360 Allied Bank of Texas Houston, Texas 4 4 $2 360000 $105 000 $152 835 $105 000 $147 135 4 4, M 4 1, 4 1 4 19 Schedule A-4 up CLEARWOODS IMPROVEMENTS DISTRICT SCHEDULE OF TEMPORARY INVESTMENTS FOR THE YEAR ENDED APRIL 30, 1982 PP 111 Accrued Interest Interest Maturity Face Receivable Rate Date Amount April 30, 1982 Debt Service Fund 111r Certificate of Deposit: No. 460281535 15.25% 7/26/82 $100 000 $ 167 p A r 10. r r r r r r 20 Schedule A-5 4 CLEARWOODS IMPROVEMENT DISTRICT 4 ANALYSIS OF TAXES RECEIVABLE AS OF APRIL 30, 1982 4. Taxes Receivable, May 1, 1981 $ 29 059 1981 Original Tax Roll $272 061 Adjustments 2 677 269 384 Total to be accounted for 298 443 A Tax Collections - Current year 252 519 # Prior year 23 968 276 487 Taxes Receivable, April 30, 1982 $ 21 956 1 4 Taxes Receivable by Years: 1981 $ 19 053 41 1980 1 658 1979 418 1978 • 235 41 1977 226 1976 - 1975 - 1974 183 40 1973 183 4 Total Taxes Receivable $ 21 956 4 Assessed Valuation Summary Property Valuations 1981 1980 1979 1978 1977 411 Land $ 7 716 700 $ 8 167 700 $ 7 998 200 $ 8 087 200 7 939 700 Personal Property 795 600 910 800 777 900 718 400 674 000 Improvements 33 343 300 37 100 600 35 572 700 33 430 600 30 316 000 MI Total Valuations $41 855 600 $46 179 100 $44 348 800 $42 236 200 $38 929 700 Tax Rate per $100 Valuation $0.65 $0.65 $0.65 $0.65 $0.65 qi Tax Year: January 1, 1981 to December 31, 1981 Percent of the assessed valuation to fair market price 100.0% Percent of current taxes collected to current taxes levied 93.0% II Percent of current and deliquent taxes collected to current and delinquent taxes outstanding at beginning of tax year 92.7% 4 Ili 41 21 4, Schedule A-6 CLEARWOODS IMPROVEMENT DISTRICT • DISTRICT ORGANIZATIONAL COSTS APRIL 30, 1982 PP Balances Balances May 1, 1981 April 30, 1982 p Financial Advisors Fees $ 16 250 $ 16 250 Discount on Sale of Bonds 14 414 14 414 Bond Issue Costs 1 821 1 821 p Bond Interest (Note 5) 245 349 245 349 Other Costs 3 066 3 066 /P Interest on Temporary Investments (135 825) (135 825) Legal Fees 154 804 154 804 TOTAL $ 299 879 $ 299 879 0110 r r p 22 Schedule A-7 CLEARWOODS IMPROVEMENT DISTRICT ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS APRIL 30, 1982 -- = 11 May 1, 1981 Additions April 30, 1982 OM Drainage System $ 608 329 $ - $ 608 329 Sewer System 1 244 873 45 000 1 289 873 111 Water System 653 800 - 653 800 Engineering 252 171 2 856 255 027 4 Land 29 622 - 29 622 11 TOTAL S2 788 795 $ 47 856 $2 836 651 1 A Amounts Provided By: MO Construction Fund $ 47 856 4 MR 4 4 4 4 2 1 1 4 1 11 11 23 Schedule A-8 VA CLEARWOODS IMPROVEMENT DISTRICT COMPARATIVE SCHEDULE - REVENUES AND EXPENDITURES FIVE YEARS ENDED APRIL 30, 1982 PIP Amount 1982 1981 1980 GENERAL FUND REVENUES: PO Service revenues $238 366 $231 304 $227 463 Tap connection revenues 105 168 3 100 10 552 Penalty and interest revenues 6 613 10 493 21 964 PP Total General Fund Revenues 350 147 244 897 259 979 f GENERAL FUND EXPENDITURES: 0. Purchased sewer services 104 230 - - Professional fees 21 271 20 414 24 979 Purchased & contracted services 60 725 63 245 42 434 Consummable supplies and materials 1 599 3 010 2 540 00 Recurring operating expense 112 115 151 860 112 136 Water tap expense 1 585 2 175 4 545 p Total General Fund Expenditures 301 525 240 704 186 634 EXCESS GENERAL FUND REVENUES OVER EXPENDITURES $ 48 622 $ 4 193 $ 73 345 011. DEBT SERVICE FUND REVENUES: Tax revenues $276 487 $290 178 $289 630 Pl" Penalty and interest 6 911 2 300 5 264 e Interest on investments 6 211 20 578 12 197 Total Debt Service Revenues 289 609 313 056 307 091 pa DEBT SERVICE FUND EXPENDITURES: Tax collection expenditures 9 912 9 973 8 900 Pli Debt service interest and fees 157 510 164 713 168 693 Debt service principal 80 000 80 000 75 000 Total Debt Service Expenditures 247 422 254 686 252 593 101 i EXCESS DEBT SERVICE REVENUES OVER EXPENDITURES $ 42 187 58 370 54 498 Average Annual Unpaid Bond Principal and interest $182 509 $184 890 $187 260 Coverage (Excess General Fund Revenue plus net Tax Revenue 1 Average Annual Unpaid Bond Principal and Interest) 1.73 1.54 1.89 No. of Water & Sewer Customers (year end) 1 221 1 220 1 210 till Total Water Pumped into System ('000' s gallons) 136,810 159,466 122,346 Total Water Billed to Customers ('000' s gallons) 123,595 139,394 112,372 24 1! 11 44 111 Percent of Fund Totals 1979 1978 1982 1981 1980 1979 1978 $193 956 $158 022 68.1% 94.4% 87.5% 90.0% 89.3% 13 580 14 625 30.0 1.3 4.1 6.3 8.3 7 874 4 163 1.9 4.3 8.4 3.7 2.4 111 215 410 176 810 100.0 100.0 100.0 100.0 100.0 m - - 29.8 - - - - 22 250 22 483 6.1 8.3 9.6 10.3 12.7 37 275 35 325 17.3 25.8 16.3 17.3 20.0 MU 2 230 2 150 0.5 1.2 1.0 1.0 1.2 4 94 873 84 811 32.0 62.0 43.1 44.0 48.0 6 325 - 0.5. 0.9 1.7 2.9 - 162 953 144 769 86.2 98.2 71.7 75.5 81.9 4 IN $ 52 457 $ 32 041 13.8% 1.8% 28.3% 24.5% 18.1% "R $275 212 $244 061 95.5% 92.7% 94.3% 93.2% 96.5% 3 258 1 048 2.4 0.7 1.7 1.1 0.4 16 868 7 849 2.1 6.6 4.0 5.7 3.1 4 295 338 252 958 100.0 100.0 100.0 100.0 100.0 II 1.1 132 7 698 3.4 3.2 2.9 3.8 3.0 A 169 644 173 106 54.4 52.6 54.9 57.4 68.4 65 000 65 000 27.6 25.6 24.4 22.0 25.7 III 245 776 245 804 85.4 81.4 82.2 83.2 97.1 A a $ 49 562 $ 7 154 14.6% 18.6% 17.8% 16.8% 2.9% 4 ,# $189 403 $191 129 7 1.67 1.40 4111 1 117 1 021 146,404 119,329 40 139,432 113,647 °w 25 Schedule A-9 *� CLEARWOODS IMPROVEMENT DISTRICT OP INSURANCE COVERAGE APRIL 30, 1982 PP Amount PP of Type of Coverage From To Coverage p PLANT AND EQUIPMENT Fire and lightning, extended coverage, 6-14-80 6-14-83 $209,500 0. explosion, vandalism and malicious mischief EMPLOYEE HONESTY, ETC. PP Tax Assessor/Collector 1-01-82 12-31-82 5,000 Pi Directors Various dates depending 5,000 on term of office each director FP FLOOD INSURANCE Sewer Pump Building and one Lift Station - 7-17-81 7-17-82 25,000 Building Contents 100,000 P` COMPREHENSIVE AND GENERAL LIABILITY, AUTO Pi Liability and Contractual Liability 6-22-81 6-22-82 b Bodily injury, per person and aggregate 300,000 Property damage, per person and aggregate 100,000 Pm r e PP PP w P 26 /111 I ill Ai MR Insurer Type of Policy Aii Corporation Clause Stock/Mutual Co-Insurance 1 National Surety Corporation Stock Yes III I, 4 Fidelity and Deposit Company of Maryland Stock No Fidelity and Deposit Company of Maryland Stock No 1 National Flood Insurers Corporation Stock No 11 4 National Surety Corporation Stock No 1 4 II 4 11 11 141 ill 27 4 Schedule A-10 wo CLEARWOODS IMPROVEMENT DISTRICT OP BOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS APRIL 30, 1982 OP Relationship with Major Land pp Term of Board Members Owners, Engi- Office Resident neer, Attorney Elected & Annual of & Tax Assessor- Expires Salary Title District Collector E. A. Kiessling 4-4-81 Per Diem President Yes None 15402 Wandering Trail 4-4-83 11. Friendswood, Texas 77546 Thomas J. Linbeck 4-4-81 Per Diem Vice Pres. Yes None PP 5114 Conventry Ct. 4-4-83 Friendswood, Texas 77546 Peter S. Cunningham 5-1-82 Per Diem Secretary Yes None P 5219 Shady Oaks Lane 4-30-84 Friendswood, Texas 77546 Po Herman M. Hayley 5-1-82 Per Diem Yes None 5315 Shady Oaks 4-30-84 Friendswood, Texas 77546 Pi M. Greg McCaffrey 4-4-81 Per Diem Yes None 5115 Regal Pineway 4-4-83 Friendswood, Texas 75546 Fees Date Paid Hired District Operator p Water District Service Co. 2-15-67 $59 400 No 4234 RichmondrP Houston, Texas 77027 District (Legal Counsel) W. James Murdaugh 4-29-66 $12 920 No (Smith & Murdaugh) 1811 Houston Natural Gas Bldg. Houston, Texas 77002 District Tax (Assessor-Collector) William Spencer 3-07-73 $ 7 951 No 5318 Pasadena Blvd. Deer Park, Texas 77536 p 28 C:4 41 H 43 H 2 i ii i W---i W 1 Wr 1 IV/ 1111 1 r , reis ro—, fr-1 11-4 r—I rwi F-91 r , trr 1 gll b EEDIOVE oco 40 CERTIEIED PI Rit I(:ACCOUNTANTS 3730 F.M. 1960 West, Suite 300 Houston, Texas 77068 411 RICHARD W.BREEDLOVE (713)440-3347 Y DONN A.LAND ill July 15, 1982 141 41 Board of Directors 11, Clearwoods Improvement District Harris County, Texas 111 RE: Year ended April 30, 1982 4 Dear Board Members: We have examined the financial statements of the above named District. As part of our examination, we made a study and evaluation of the District's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. Under these standards, the purpose of such evaluation is to establish a basis for reliance thereon in determining the nature, timing, and extent of IIII other auditing procedures that are necessary for expressing an opinion on the financial statements. There are inherent limitations that should be recognized in considering the 11 potential effectiveness of any system of internal accounting control. Pro- jection of any evaluation on internal accounting control to future periods is subject to the risk that the procedures may become inadequate because of changes in conditions and that the degree of compliance with the procedures may deteriorate. Our study and evaluation of the District's system of internal accounting control for this specific year ended, which was made for the purposes set forth in the first paragraph above was not designed for the purpose of ex- pressing an opinion on internal accounting control, and it would not neces- sarily disclose all weaknesses in the system. No major internal control weaknesses were noted during the examination of the District's financial statements for the period then ended. 441 Very truly yours, 141 et cr Richard W. Breedlove ysm