HomeMy WebLinkAbout1982 04 30 Financial Report - Clearwoods Improvement District (2) CLEARWOODS IMPROVEMENT DISTRICT
REPORT ON FINANCIAL STATEMENTS
(With Supplemental Material)
YEAR ENDED APRIL 30, 1982
IIVEEDLOVE &co
Cr 10IFIFD PUBLIC ACCOUN1ANTb
TABLE OF CONTENTS
Exhibits Page
Auditors' Report 1
Combined Balance Sheet - All Fund Types and A 2
Account Groups
Combined Statement of Revenues, Expenditures B 4
and Changes in Fund Balances - All Governmental
Fund Types
Statement of Revenues, Expenditures and Changes C 6
in Fund Balances - Budget and Actual - General
Fund
Summary of Accounting Policies and Notes to 7
Financial Statements
Supplemental Schedules
Schedules
Auditors' Report on Other Financial Information 13
Analysis of Changes in Cash and Temporary A-1 15
Investments - All Governmental Fund Types
General Long-Term Debt and Debt Service A-2 16
Requirements
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
Analysis of Changes in General Fixed Assets A-7 23
Comparative Schedule - Revenues and Expenditures - A-8 24
Five Years
Insurance Coverage A-9 26
Board Members, Key Personnel and Consultants A-10 28
Management Letter 31
N2EEDLOVE oco
CERTIFIED Pt BIIC ACCOUNTANTS
3730 F.M. 1960 West, Suite 300
Houston,Texas 77068
RICHARD W.BREEDLOVE (713)440-3347
DONN A.LAND
July 15, 1982
Board of Directors Clearwoods Improvement District
Harris County, Texas
We have examined the Combined Financial Statements - All Fund Types and
Account Groups of Clearwoods Improvement District as of April 30, 1982,
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.
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
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
the Notes to Financial Statements. We concur with these changes.
Exhibit A I
CLEARWOODS IMPROVEMENT DISTRICT
COMBINED BALANCE SHEET - ALL FUND TYPES & ACCOUNT GROUPS I
APRIL 30, 1982
ASSETS [
Governmental Funds
Debt Capital
i :
General Service Projects
Fund Fund Fund
CURRENT ASSETS:
Cash $ 31 496 $ 10 062 $ 297
Temporary investments - restricted - 100 000 -
Total Cash & Temporary Investments 31 496 110 062 297
1:
Accounts receivable and accrued receivables 28 991 22 123 -
Due from other funds 3 226 - -
Prepaid Expenses 238 - -
Total Current Assets 63 951 132 185 297
GENERAL FIXED ASSETS
1-:
Physical plant - - -
INTANGIBLE AND OTHER ASSETS
Organization costs - - -
IT
AMOUNT AVAILABLE IN DEBT SERVICE FUND - - -
AMOUNT TO BE PROVIDED FOR RETIREMENT OF
GENERAL LONG-TERM DEBT - - - [
TOTAL ASSETS $ 63 951 $132 185 $ 297
LIABILITIES AND FUND EQUITY C
CURRENT LIABILITIES: .
Accounts payable and accrued expenses $ 66 891 $ 372 $ 1 274 [T
Contract retainage - - 19 794
Refundable deposits 12 250 - -
Due to other funds - 370 2 856 C
Total Current Liabilities 79 141 742 23 924
LONG-TERM LIABILITIES [7
Bonded debt payable - - -
Total Liabilities 79 141 742 23 924
FUND EQUITY: [7
Investment in general fixed assets - - -
Investment in uncollected taxes - 21 956
Fund balances: L-1-
Designated for debt service - 109 487 -
Designated for future capital projects - - (23 627)
Undesignated (15 190) - -
Total Fund Equity (15 190) 131 443 (23 627) .1
TOTAL LIABILITIES AND FUND EQUITY $ 63 951 $132 185 $ 297
M I
See the accompanying Summary of Accounting Policies and Notes to Financial Statements. —
Account Groups
General
Long-Term General Memorandum
Debt Fixed Assets Total
$ - $ - $ 41 855
100 000
- 141 855
51 114
3 226
238
196 433
2 836 651 2 836 651
299 879 299 879
109 487 - 109 487
2 250 513 - 2 250 513
$2 360 000 $3 136 530 $5 692 963
$ - $ - $ 68.537
- 19 794
12 250
3 226
103 807
2 360 000 - 2 360 000
2 360 000 - 2 463 807
3 136 530 3 136 530
- 21 956
109 487
(23 627)
(15 190)
3 136 530 3 229 156
S2 360 000 $3 136 530 $5 692 963
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Exhibit B
L .
CLEARWOODS IMPROVEMENT DISTRICT
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - ALL GOVERNMENTAL FUND TYPES IFOR THE YEAR ENDED APRIL 30, 1982
Debt
General Service `
Fund Fund
OPERATING REVENUES:
Service revenue $ 238 366 $ -
Tap connection fee 105 168 -
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 -
Professional fees 21 271 2 504 [ .
Purchased and contracted services 60 725 7 177
Consumable supplies and materials 1 599 -
Recurring operating expenses 112 115 231
Water tap expense 1 585 -
Total Operating Expenses 301 525 9 912 r
NET INCOME FROM OPERATIONS: 48 622 279 697 i�
Less: Debt service expenses - 157 510
Principal retirement - 80 000
1--'
NET INCOME 48 622 42 187
ADDITIONS TO FUND BALANCE: II
Transferred from debt service fund - -
Total Additions to Fund Balance 48 622 42 187
II
DEDUCTIONS FROM FUND BALANCE:
Investment in uncollected taxes - 6 858
Transferred to general fixed assets - -
[
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
[-1
FUND BALANCE AT APRIL 30, 1982 $ (15 190) $ 131 443
[I
See the accomnanvina Summary of Accounting Policies and Notes to Financial Statements. r
_
..� � .� --..�,..., .---y:---.------ - - - - -
Capital
Projects Memorandum
Fund Total
$ - $ 238 366
105 168
276 487
186 19 921
186 639 942
104 230
- 23 775
67 902
1 599
112 346
1 585
311 437
186 328 505
157 510
80 000
186 90 995
20 000 20 000
20 186 110 995
6 858
47 856 47 856
20 000
47 856 74 714
(27 670) 36 281
4 043 56 345
$ (23 627) $ 92 626
5
Exhibit C
1 i
CLEARWOODS IMPROVEMENT DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND L
BALANCES - BUDGET AND ACTUAL - GENERAL FUND I
FOR THE YEAR ENDED APRIL 30, 1982
1
Favorable C
(Unfavorable) 1
Actual Budget Variance
OPERATING REVENUES: l
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) i
Total Operating Revenues 350 147 263 337 86 810I
OPERATING EXPENSES: [-, '
Purchased sewer services 104 230 20 286 (83 944) •
Professional fees 21 271 20 363 (908) r
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)
Water tap expense 1 585 100 (1 485)
Total Operating Expenses 301 525 205 065 (96 460)
NET INCOME 48 622 58 272 (9 650) [
i_ lNET CHANCE IN FUND BALANCES FOR THE YEAR 48 622 58 272 (9 650)
FUND BALANCE AT MAY 1, 1981 • (63 812) (63 812) -
' FUND BALANCE AT APRIL 30, 1982 $ (15 190) $ (5 540) $ (9 650) [7,
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See the accompanying Summary of Accounting Policies and Notes to Financial Statements. 1
CLEARWOODS IMPROVEMENT DISTRICT
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1982
NOTE (1) CREATION OF DISTRICT
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
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,
except bond interest, and all revenues currently available are accrued.
The transactions of the District are accounted for in the following funds
and account groups:
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.
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.
Account Groups
General Fixed Assets - To account for the facilities of the District.
General Long-Term Debt - To account for the outstanding principal balance
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.
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CLEARWOODS IMPROVEMENT DISTRICT. [ '
j
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS 1
APRIL 30, 1982
Continued L
1
General Fixed Assets l
The District capitalizes all costs associated with the creation of the I
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 i
completion of related improvements, interest revenues and interest expen-
ditures related to bond proceeds are being capitalized. These amounts r:
are shown on the Balance Sheet as District Organizational Costs. In 4
accordance with the requirements of the Texas Department of Water Resources,
the amounts are not being amortized. r
The District capitalized the cost of meters and boxes and residential
F i
lines as part of the water system in General Fixed Assets. The District
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.
Ci
NOTE (3) WATER AND SEWER SERVICE RATES 1
The District has established the following rates effective September 7,
1978: -
Water Service -
Li
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* [
Each 1,000 Gallons of Water Used Thereafter .25
L
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k.
*Amended September 1, 1980
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CLEARWOODS IMPROVEMENT DISTRICT
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1982
Continued
Tap Fees
Residential Tap Fee (3/4" Tap) $475.00
The above fee includes the cost of meter, box and installation.
For connections of over 3/4 inch, the District will establish
tapping charges by separate order or agreement.
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:
Water Service
Residential and Commercial Monthly Charge:
First 7,000 Gallons of Water Used (minimum bill) $ 7.00
Each 1,000 Gallons of Water Used Thereafter .75
Sewer Service •
Residential and Commercial Monthly Charge:
First 20,000 Gallons of Water Used (minimum bill) $ 10.00
Each 1,000 Gallons of Water Used Thereafter .50
Tap Fees
Residential Tap Fee (3/4" Tap) $600.00
Residential Tap Fee (3/4" Tap) non-residents 750.00
The above fee includes the cost of meter, box, and installation
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.
9
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CLEARWOODS IMPROVEMENT DISTRICT
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1982
Continued
NOTE (4) PLEDGE OF TAX AND OPERATING REVENUES 1 '
The bonds are payable from the proceeds of an ad valorem tax levied upon
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-
eration of the District's waterworks and sanitary sewer system.
NOTE (5) BOND INTEREST RESERVE
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
capitalized as a district organizational cost as it is paid and the
reserve account reduced accordingly.
NOTE (6) ENGINEERING REPORT
The Bond Order states that a complete engineering inspection report of the
operations and physical condition of the plant and system shall be made
each year by an independent qualified engineer. At the Balance Sheet date,
said report had not been made. l
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 the [i
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, Series
E:
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.
NOTE (8) WATER AND SEWER SERVICE CUSTOMERS I
The following is a comparison of the number of metered water and sewer T
service customers serviced by the District:
April 30, 1981 1,220
April 30, 1982 1,221 Lw
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CLEARWOODS IMPROVEMENT DISTRICT
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1982
Continued
NOTE (9) OPERATING AND TAX FUND PAYMENTS TO DEBT SERVICE FUND
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
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
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
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
interest payments, not provided by funds from the bond sales.
NOTE (10) RESTRICTED CASH AND TEMPORARY INVESTMENTS
The following balances were restricted by the Bond Orders as of April 30,
1982:
Restricted For
Servicing of Acquisition of
Bonded Debt Fixed Assets
Cash $ 10 062 $ 297
Temporary Investments 100 000 -
$110 062 $ 297
NOTE (11) INSURANCE
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
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.
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CLEARWOODS IMPROVEMENT DISTRICT
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1982
Continued
rt
NOTE (12) ACCOUNTING CHANGES
During the year ended April 30, 1982, the District made changes in r-
its accounting and financial reporting principles to comply with
Statement No. 1 issued by the National Council on Governmental r
Accounting. Changes in accounting principles are as follows: - '
Bond discount and related amortization recorded in prior
years were written off and are no longer being recorded.
The effect of the changes in accounting principles on the fund
balances of the affected funds is summarized as follows:
Debt Service Fund
Fund balanace - beginning of year $150 073 r
Elimination of unamortized bond discount (33 959) L_
Adjusted Fund Balance - beginning of year $116 114
NOTE (13) TAP CONNECTION FEES L
In prior years, large commercial tap fees of $95,000 were considered
as deferred revenue due to the contingent nature of the tap fee.
tr-
During the year ending April 30, 1982, it was deemed to have been
earned and has therefore been recorded as tap connection fees in the
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current year.
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SUPPLEMENTAL SCHEDULES
BQEEDLOVE 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
Board of Directors
Clearwoods Improvement District
Harris County, Texas
In our opinion, the accompanying information is stated fairly in all ma-
terial respects in relation to the financial statements taken as a whole,
of Clearwoods Improvement District for the year ended April 30, 1982, which
are covered by our opinion presented in the first section of this report.
The accompanying information is supplemental to the financial statements
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,
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.
Schedule A-1
CLEARWOODS IMPROVEMENT DISTRICT
ANALYSIS OF CHANGES IN CASH AND TEMPORARY INVESTMENTS -
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED APRIL 30, 1982
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
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
Applied 259 486 274 361 47 856 581 703
INCREASE (DECREASE) IN CASH AND TEMPORARY
INVESTMENTS (5 760) 24 350 (24 814) (6 224)
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
15
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Schedule A-2
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CLEARWOODS IMPROVEMENT DISTRICT :
a
GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS
1 i
APRIL 30, 1982
[ -1„
Series 1967 Series 1967A
Principal Interest Due Principal Interest Due
For the Years Due August 1, Due August 1,
1 1
Ending April 30 February 1 February 1 Total February 1 February 1 Total
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
I 5
1985 75 000 12 500 87 500 10 000 37 800 47 800
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
1989 - - - 75 000 31 500 106 500 [1
1990 - - - 75 000 27 000 102 000
1991 - - - 75 000 22 500 97 500
1992 - - - 100 000 18 000 118 000
1993 - - - 100 000 12 000 112 000
1994 - - - 100 000 6 000 106 000
11
1995 - - - - - - -, A
1996 - - - - - -
a
1997 - - - - - -
1998 - - - - - - ,
,
1999 - - - - - -
2000 - - - - - -
2001 - - - - - - - -
2002 - - - - - - r- .
2003 - - - - - -
2004 _ - - - - - -
TOTALS • $400 000 $ 63 750 $463 750 $650 000 $342 000 $992 000 1
CASH AND TEMPORARY INVESTMENTS BALANCES
AT APRIL 30, 1982
Debt Service Fund $110 062 i •
-:,
, - - -
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IN ,.
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16
Series 1972 Series 1974
Principal Interest Due Principal Interest Due Total
Due October 1, Due September 1, Annual
April 1 April 1 Total March 1 March 1 Total Requirements
$ 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
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
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
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
17
Schedule A-3
CLEARWOODS IMPROVEMENT DISTRICT
ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT
FOR THE YEAR ENDED APRIL 30, 1982
Transactions for
The Year Ended
Bonds April 30, 1982
Outstanding Retirements
Description Rate Payable May 1, 1981 Principal Interest
f
Clearwoods Improvement District 5.00% 8/1,2/1 $ 450 000 $50 000 $ 22 500
Waterworks and Sewer System
Combination Tax and Revenue _ •
Bonds, Series 1967 r
Clearwoods Improvement District 6.00% 8/1,2/1 660 000 10 000 39 500 '
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 E
Waterworks and Sewer System
— i
Combination Tax and Revenue
Bonds, Series 1972 E .
1
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 E
Bonds, Series 1974 7.10
7.25
7.40 ` ..1
7.50
7.60
7.70 r p
TOTALS (Note 9) $ 2 440 000 $ 80 000 $157 285
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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
$ 400 000 $75 000 $ 20 000 $ 75 000 $ 16 250 Allied Bank of Texas
Houston, Texas
650 000 10 000 39 000 10 000 38 400 Allied Bank of Texas
Houston, Texas
560 000 10 000 37 800 10 000 37 125 Allied Bank of Texas
Houston, Texas
750 000 10 000 56 035 10 000 55 360 Allied Bank of Texas
Houston, Texas
•
$2 360 000 $105 000 $152 835 $105 000 $147 135
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Schedule A-4
CLEARWOODS IMPROVEMENTS DISTRICT
SCHEDULE OF TEMPORARY INVESTMENTS
FOR THE YEAR ENDED APRIL 30, 1982
Accrued
Interest
Interest Maturity Face Receivable
Rate Date Amount April 30, 1982
Debt Service Fund
Certificate of Deposit:
No. 460281535 15.25% 7/26/82 $100 000 $ 167
t..
Schedule A-5
CLEARWOODS IMPROVEMENT DISTRICT
ANALYSIS OF TAXES RECEIVABLE
AS OF APRIL 30, 1982
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
Tax Collections - Current year 252 519
Prior year 23 968 276 487
Taxes Receivable, April 30, 1982 $ 21 956
Taxes Receivable by Years:
1981 $ 19 053
1980 1 658
1979 418
1978 235
1977 226
1976 -
1975 -
1974 183
1973 183
Total Taxes Receivable $ 21 956
Assessed Valuation Summary
Property Valuations 1981 1980 1979 1978 1977
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
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
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%
Percent of current and deliquent taxes collected to current
and delinquent taxes outstanding at beginning of tax year 92.7%
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Schedule A-6
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CLEARWOODS IMPROVEMENT DISTRICT
DISTRICT ORGANIZATIONAL COSTS
APRIL 30, 1982
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Balances Balances
May 1, 1981 April 30, 1982
Financial Advisors Fees $ 16 250 $ 16 250
Discount on Sale of Bonds 14 414 14 414
Bond Issue Costs 1 821 1 821
Bond Interest (Note 5) 245 349 245 349 e'.
Other Costs 3 066 3 066
Interest on Temporary Investments (135 825) (135 825)
Legal Fees 154 804 154 804
TOTAL $ 299 879 $ 299 879
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Schedule A-7
CLEARWOODS IMPRO,EMENT DISTRICT
ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS
APRIL 30, 1982
May 1, 1981 Additions April 30, 1982
Drainage System $ 608 329 $ - $ 608 329
Sewer System 1 244 873 45 000 1 289 873
Water System 653 800 - 653 800
Engineering 252 171 2 856 255 027
Land 29 622 - 29 622
TOTAL S2 788 795 S 47 856 $2 836 651
Amounts Provided By:
Construction Fund $ 47 856
•
23
Schedule A-8
[
,
CLFARWOODS IMPROVEMENT DISTRICT
F COMPARATIVE SCHEDULE - REVENUES AND EXPENDITURES
FIVE YEARS ENDED APRIL 30, 1982
Amount [
1982 1981 1980
GENERAL FUND REVENUES: ,-
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 -
Total General Fund Revenues 350 147 244 897 259 979 '
GENERAL FUND EXPENDITURES: -
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
Recurring operating expense 112 115 151 860 112 136 .
Water tap expense 1 585 2 175 4 545
Total General Fund Expenditures 301 525 240 704 186 634
EXCESS GENERAL FUND REVENUES
OVER EXPENDITURES $ 48 622 $ 4 193 $ 73 345 .,
DEBT SERVICE FUND REVENUES:
i
Tax revenues $276 487 $290 178 $289 630 ...
Penalty and interest 6 911 2 300 5 264
- 1
Interest on investments 6 211 20 578 12 197
. ,
Total Debt Service Revenues 289 609 313 056 307 091
. i
DEBT SERVICE FUND EXPENDITURES:
Tax collection expenditures 9 912 9 973 8 900 . 1
f .
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 i
1
ow
EXrFSS 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
. .
Total Water Pumped into System
(1000's gallons) 136,810 159,466 122,346 .
Total Water Billed to Customers .
( '000's gallons) 123,595 139,394 112,372
IN.
nA 'AISO
.
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
215 410 176 810 100.0 100.0 100.0 100.0 100.0
- - 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
2 230 2 150 0.5 1.2 1.0 1.0 1.2
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
$ 52 457 $ 32 041 13.8% 1.8% 28.3% 24.5% 18.1%
$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
295 338 252 958 100.0 100.0 100.0 100.0 100.0
11 132 7 698 3.4 3.2 2.9 3.8 3.0
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
245 776 245 804 85.4 81.4 82.2 83.2 97.1
$ 49 562 $ 7 154 14.6% 18.6% 17.8% 16.8% 2.9% y
$189 403 $191 129
1.67 1.40
1 117 1 021
146,404 119,329
139,432 113,647
25
/
y
rya
Schedule A-9
e
CLEARWOODS IMPROVEMENT DISTRICT —
INSURANCE COVERAGE
APRIL 30, 1982
Amount
of
Type of Coverage From To Coverage
PLANT AND EQUIPMENT
Fire and lightning, extended coverage, 6-14-80 6-14-83 $209,500
explosion, vandalism and malicious
mischief
EMPLOYEE HONESTY, ETC.
Tax Assessor/Collector 1-01-82 12-31-82 5,000
Directors Various dates depending 5,000
on term of office each director
FLOOD INSURANCE
Sewer Pump Building and one Lift Station - 7-17-81 7-17-82 25,000
Building Contents 100,000
COMPREHENSIVE AND GENERAL LIABILITY, AUTO
Liability and Contractual Liability 6-22-81 6-22-82
Bodily injury, per person and aggregate 300,000
Property damage, per person and aggregate 100,000
8
d
Insurer
Type of Policy
Corporation Clause
Stock/Mutual Co-Insurance
National Surety Corporation Stock Yes
4
- i
Fidelity and Deposit Company of Maryland Stock No
Fidelity and Deposit Company of Maryland Stock No
National Flood Insurers Corporation Stock No
National Surety Corporation Stock No
27
l
t Schedule A-10
4.
L
CLEARWOODS IMPROVEMENT DISTRICT I
BOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS l i
APRIL 30, 1982
Relationship
with Major Land r EE-
Term of Board Members Owners, Engi- I`
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 -
Friendswood, Texas 77546
Thomas J. Linbeck 4-4-81 Per Diem Vice Pres. Yes None _
5114 Conventry Ct. 4-4-83
Friendswood, Texas 77546
Peter S. Cunningham 5-1-82 Per Diem Secretary Yes None
5219 Shady Oaks Lane 4-30-84
Friendswood, Texas 77546
Herman M. Bayley 5-1-82 Per Diem Yes None
5315 Shady Oaks 4-30-84
Friendswood, Texas 77546
M. Greg McCaffrey 4-4-81 Per Diem Yes None 6. -
5115 Regal Pineway 4-4-83
Friendswood, Texas 75546
F .
Fees
Date Paid
Hired District Operator r
LI .
Water District Service Co. 2-15-67 $59 400 No
4234 Richmond G _ ; ;'
Houston, Texas 77027 C
District (Legal Counsel) r
W. James Murdaugh 4-29-66 $12 920 No L
(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
rp
MANAGEMENT LETTER
V
a
PDEEDLO_ VE oco
CEk1IFIEU VUNLI( A(CUUNTANTS
3730 F.M. 1960 West, Suite 300
Houston, Texas 77068
RICHARD W.BREEDLOVE (713)440-3347
DONN A. LAND
July 15, 1982
Board of Directors
Clearwoods Improvement District
Harris County, Texas _
t
RE: Year ended April 30, 1982
Dear Board Members:
We have examined the financial statements of the above named District. As A
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
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
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.
Very truly yours,
Richard W. Breedlove
ysm