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Home My WebLink About1975 07 31 Financial Report - Harris county water control and improvement district No.133 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 1,14 For the Year Ended July 31, 1975 INDEX Page Opinion of Independent Certified Public Accountants 3 Financial Statements: Statement of Assets and Liabilities - All Funds 4 • Statement of Revenues, Expenses, and Fund Balances - All Funds 5 Statement of Sources and Uses of Cash - All Funds 6 Notes to Financial Statements 7 Supplemental Schedules: General Long-Term Debt Service Requirements - By Years 10 Analysis of Changes in General Long-Term Debt 13 Schedule of Temporary Investments 14 Analysis of Taxes Receivable 15 Analysis of Organizational Costs 16 Analysis of Changes in General Fixed Assets 17 Insurance Coverage 18 MELTON & MELTON 414 Certified Public Accountants Suite 400, Texas Bank + Trust Tower 6161 Savoy Drive • Houston, Texas 77036 Telephone: 713/789-6660 R. TALLEY MELTON 1975H. PALMER MELTON, JR. November 17, T. CONLAN PIERSON ROBERT L. ERWIN ASSOCIATES MILL ELSIK HAZEL HILDEBRANDT JOHN P. McCLURE TO the Board of Directors Of JOHN J. REED, JR. CLAYTON E. ROYCE Harris County Water Control and Improvement District No. 133 We have examined the financial statements and supplemental schedules of Harris County Water Control and Improvement District No. 133 noted in the index, as of July 31, 1975 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 our opinion, the accompanying financial statements present fairly the assets and liabilities of the District at July 31, 1975 and the revenues, expenses, and fund balances for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination also comprehended the supplemental schedules noted in the index, as of July 31, 1975. In our opinion, such supplemental schedules, when considered in relation to the basic financial statements, present fairly in all material respects the information shown therein. Vaivi-714 .01,44 (ph (3) HARRIS COUNTY WAThH CONTROL AND STATEMENT OF ASSE2S AND July 31 Debt General Service Tax Operating Fund Fund Fund ASSE] Current Assets: Cash - Unrestricted ; 1,206 $1,304 31 536 Total cash 1,206 1,304 31,53 Temporary investments - Unrestricted 255,884 Total temporary invest255,884 Total cash and tE investments 257,090 1,304 31,536 Accounts receivable and accrued 7,282 7,881 8,503 Inter-fund receivables 10,946 Total currer264,372 9,185 50,985 General Fixed Assets, at cost - Physical plant Total general fixed a: Intangible and Other Assets 127,661 Provision for Bonded Debt 50,000 Total asset8442,033 $9,185 $50,985 LIABILIT I k,S AND Current Liabilities: Accounts payable and accrued ex_p106,824 $12,010 Bonded debt payable - current me 50,000 Inter-fund payables Total currer156,824 12,010 Long-Term Liabilities - Bonded debt payable Total liabilities 156,824 12,010 Fund Balances: Unallocated fund balances 278,468 $1,304 38,975 Allocated - from net systems rev Investment in uncollected taxes 7,881 Allocated for bond interest duri period 6,741 Allocated from sale of bonds Total fund balances 285,209 9,185 38,975 Total liabil fund balar1442,033 $9,185 $50,985 (See Notes to Finan folk (4) HARRIS COUNTY WATER CONTROL AND Ip STATEMENT OF REVENUES, EXPENSES, For the Year Ende Total General Operating Ind Fund Operating Revenues: Service revenues $ 76,761 Tap connection fees 47,919 Tax revenues ),942 Penalty and interest revenues 64 1,984 Total operating reven57076. 126,664 Less: Operating expenses: Purchased water and sewer 22,510 Repairs and maintenance 13,567 Professional fees ?,882 1,245 Consumable supplies and ma 2,377 Recurring operating expens 682 16,111. Tap connection expenses 27,925 Total operating expenT57E4 83,735 Net income (loss) from operatio5,442 42,929 Add: Non-operating revenues - Miscellaneous revenues Total non-operating r Net income (loss) before non-opS,442 42,929 Less: Non-operating expenses: Debt service and related e: Miscellaneous expenses Total non-operating e: Net income (loss5,442 42,929 Additions to Fund Balances: Investment in uncollected taxes+,826 Transferred from general operat: Transferred from debt service ft Transferred from tax fund Transferred from construction ft Total additions to ful7726 Deductions from Fund Balances: Transferred to general fixed as Transferred to debt service funcD,000 36,884 Total deductions fromD,000 36,884 Net changes in ft for the year L,268 6,045 Fund Balances, at August 1, 1974 7,917 32,930 Fund Balances, at July 31, 1975 9,185 S 38,975 (See Notes to Finar (5) HARRIS COUNTY WATER CONTROL AND STATEMENT OF SOURCES AND Ti For the Year Ended General Operating Fund Sources of Cash: Cash receipts from operations )o6 $124,107 Cash disbursements for operatior Purchase of water and sewer 21,060 Repairs and maintenance 11,177 Professional fees i82 Consumable supplies and mat 2,377 Tap connection expenses 22,650 Recurring operating expense"82 14,908 Debt service and related e)‹ Miscellaneous expenses Total cash disbursemen 72,172 Net cash from operations 1-42 51,935 Collection of cash on inter-fund 3,626 Cash transfers from other funds Total cash provided k42 55,561 Application of Cash: Payment on inter-fund receivable 10,250 Purchase of District organizatio transferred to general fixed a Payment of accounts payable 14,084 Cash transfers to other funds - )00 36,885 Total cash applied )00 61,219 Increase (decrea0-g) ( 5,658) Cash and Temporary Investment Balance362 37,194 Cash and Temporary Investment Balancd2ii $ 31,536 (See Notes to Finan (6) HARRIS C T C-i) , R0L AND IMPROVEMENT DISTRICT NO. 133 NOTES TO FfdANCIAL STATEMENTS July 31, 1975 Note 1 - Creation of District Harris County Water Control and Improvement District No. 133 was created by an order of the Texas Water Rights Commission on March 26, 1970 and confirmed by the electorate of Harris County Water Control and Improvement District No. 133 at a confirmation election held on July 6, 1970. The Board of Directors held its first meeting on May 26, 1970 and first bonds were sold on March 16, 1971. Note 2 - Basis of Accounting The exhibits and supporting schedules contained in this report were prepared on the accrual• basis of accounting, except for the statement of sources and uses of cash - all funds, which is a cash basis statement. Furthermore, tax revenues are not accrued and the amounts shown for these items reflect cash basis accounting treatment. Note 3 - Bond Interest In accordance with Section VIII, paragraph 3 of the bond order dated March 16, 1971, the bond order dated October 4, 1971, the bond order dated July 26, 1972, the bond order dated December 11, 1972, and the bond order dated September 14, 1973, a portion of the bond proceeds was deposited into the Debit Service Fund for the payment of bond interest during the construc- tion period. This bond interest has been capitalized as an organizational cost for the construction period. Note 4 - Organizational Costs The District, in conformance with requirements of the Texas Water Rights Commission, capitalizes and charges to organizational costs for the creation period all costs incurred in the creation of the District allowed by statute. The District capitalizes and charges to organiza- tional costs for the construction period all costs incurred in the issue and sale of bonds, bond interest and amortized bond premium and discount, losses on sales of investments, accrued interest on investments purchased, attorney fees and some administrative expenses until construction and acceptance or use of the first revenue producing facility has occurred. Investment interest earnings and gains on sales of investments are capital- ized as a reduction to organizational costs for the construction period. Note 5 - Pledge of Revenues 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 operation of the District' s waterworks and sanitary sewer system. (7) -,-Z,RIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 NOTES TO FINANCIAL STATEMENTS (C ONT INUFD) July 31, 1975 Note 6 - Redemption of Bonds The outstanding bonds of Harris County Water Control and Improvement District No. 133 are callable for redemption prior to maturity at the option of the District. The bonds may be called in whole or in part for the purpose of retirement or refunding, or both, at par in addition to unpaid accrued interest. Note 7 - Water and Sewer Service Rates Harris County Water Control and Improvement District No. 133 has established the following water and sewer service rates effective as of July 31, 1975. Combined Water and Sewer Service Rate First 5,000 gallons of water used - minimum bill $5.00 Each 1,000 gallons of water used thereafter $ .45 or: Water Service Only First 5,000 gallons of water used - minimum bill $5.00 Each 1,000 gallons of water used thereafter $ .4+5 Sewer Service Only Sewer service - minimum bill $3.00 Over 50,000 gallons $ .25/1,000 Note 8 - Regional Sewage Treatment Agreement The District has entered into a four party contract with Northwest Harris County PUD #1, #2, and #3 under which the contribution of $250,000 made by Northwest Harris County PUD #1 for future plant expansion was applied to their portion of the construction costs. Therefore, Northwest Harris County PUD #1 has access to 500,000 gallons of the 1,000,000 gallons per day capacity of the plant for the life of the forty year contract. In this agreement, a provision was created for future plant expansion whereby the Districts involved would contribute an amount determined by the Districts' engineer for plant expansion when additional capacity is needed. Operations of the expanded facility are to be maintained separately from the plant in existence and all parties are to • contribute $10,000 to the operations account upon the signing of the contract or at the time each District ties into the facilities. The contribution of $10,000 is to be maintained on an impress basis and each year, one month after the anniversary date, each District will be required to contribute an amount sufficient to bring its share back up to $10;000. In the event the fund becomes depleted, the operator may ask each District for a sufficient stun (not to exceed $5,000 each) to pay the estimated expenses for the balance of the operating year. At this time, no contribution to the operating account for expanded facilities has been made and no cost has been incurred for expansion of the facility. (8) ► Ri _ i_;7.= CONTROL AND IMPROVEMENT DISTRICT NO. 133 NOTES TO FINANCIAL STATEMENTS (CONTINUED) July 31, 1975 Note 9 - Customer Connections At July 31, 1975, there were 719 customer connections to the District's system. Note 10 - Subsequent Event Subsequent to July 31, 1975, the District authorized a bond order to be issued in the amount of $750,000, to be called "Harris County Water Control and Improvement District No. 133 Waterworks and Sewer System Combination Unlimited Tax and Revenue Bonds Series 1975", dated September 1, 1975, maturing 1979 through 2000 bearing an effective interest rate of 8.3833%. The debt service requirement for the next 5 years is as follows: Fiscal Year Ended Principal Interest Total 1976 1977 $ 91,909 $ 91,909 1978 61,273 61,273 1979 $20,000 61,273 81,273 198o 20,000 59,673 79,673 $4o,000 $274,128 $314,128 (9) HARRIS COUNl'Y WATEti. CONTROL AND GENERAL LONG-TERM DEBT SERVIC July 31, Due During Fiscal Years Ending _ Total 1976 $ 32,880 1977 31,755 1978 30,63o 1979 29,505 198o 28,38o 1981 27,255 1982 26,13o 1983 25,005 1984 23,88o 1985 22,755 1986 21,630 1987 20,46o 1988 19,290 1989 23,12o 1990 21,56o 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Totals $384,235 A1► (10) HARRIS COUNTY WATER CONTROL AND GENERAL LONG-TERM DEBT SERVICE REQU July 31, Total 1976 $ 66,253 1977 65,502 1978 64,753 1979 64,002 1980 63,253 1981 72,503 1982 71,190 1983 69,878 1984 68,565 1985 67,190 1986 75,815 1987 73,890 1988 71,965 1989 70,005 1990 68,045 1991 81,050 1992 78,200 1993 75,300 1994 72,400 1995 69,450 1996 71,500 1997 68,200 1998 64,900 1999 61,600 2000 58,300 $1,733,709 41" (11) HARRIS COUNTY WATER CONTROL AEI GENERAL LONG-TERM DEBT SERVICE REc July 31 nts 1976 50 1977 19 1978 7o 1979 19 198o 7o 1981 10 1982 62 1983 15 1984 57 1985 37 1986 17 1987 27 1988 37 1989 5o 1990 28 1991 - 8o 1992 -98 1993 15 1994 38 1995 oo 1996 !o8 1997 -95 1998 7o 1999 45 2000 !97 Cash and temporary investment balance Tax fund $ 1,3C Debt service fund 257,09 $258,35 411i (12 HARRIS COUNTY WATER CONTROL AND ANALYSIS OF CHANGES IN For the Year Endec Bonds it standing At End Description Of Year Paying Agents Waterworks and Sewer System Combination Tax and Revenue Bonds: Series 1971 $1,645,000 Series 1971A 150,000 Series 1971A 85,000 Waterworks and Sewer System Combination Unlimited Tax and Revenue Bonds: Series 1972 75,000 Series 1972 325,000 Series 1973 75,000 Series 1973 75,000 Series 1973 120,000 Series 1973 70,000 Series 1973 85,000 Series 1973 100,000 Series 1973 100,000 Series 1973 275,000 Series 1973A 225,000 Series 1973A 105,000 • Totals S3,510,000 Bonds Voted Bonds Approved Bonds Sold (13) 111-, HARRIS COUNTY WATER. CONTROL AND SCHEDUTR. OF TEMPO For the Year Ernie Accrued Interest Receivable At ?.ar End Of Year Debt Service Fund: • Certificate of deposit $5,893 Certificate of deposit 1,000 Certificate of deposit 314 Certificate of deposit 46 Certificate of deposit 29 Totals 4 7,282 Total - all funds 1 $7,282 41/1' ( 14 0111 HARRIS COUNTY l':_.7F= CONTROL E L L,PROVEMENT DISTRICT NO. 133 -J ALY SIS OF TAXES RECEIVABLE For the Year Ended July 31, 1975 Taxes receivable at beginning of year $ 3,055 1974 year - original tax roll $125,037 Less: Abatements to original tax roll 269 • Adjusted tax roll 124,768 Total to be accounted for 127,823 Less: Collections - Current year 119,942 Taxes receivable at .end of year $ 7,881 Taxes Receivable in Prior Years: 1973 $ 2,768 1972 -0- Total tax receivable in prior years $ 2,768 ASSESSED VALUATION SUMMARY 1974 1973 1972 1971 Property Valuation: Land $ 3,332,910 $3,3i8,330 $3,072,274 $2,415,593 Improvements 9,083,180 4,793,346 278,007 12,000 Personal property 87,600 59,000 Total valuations $12,503,690 $8,170,670 $3,350,281 $2,427,593 Tax Rate Per $100 Valuation $ 1.00 $ .80 $ .60 $ .50 Tax Year: From August 1, 1974 to July 31, 1975 Percent of the assessed valuation to fair market value 100.00% Percent of current taxes collected to current tax levied 95.83% (15) HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 ANALYSIS OF ORGANIZATIONAL COSTS For the Year Ended July 31, 1975 Balance At Balance At Beginning Of End Of • Year Additions Year Organizational Costs - Construction Period: Financial advisory fees $ 3,309 $ 3,309 Filing fees, licenses, legal notices and permits 1,419 1,419 Legal fees 132,276 132,276 Director fees 3,996 3,996 Operating costs 562 562 Bond interest 496,281 $6,848 503,129 Other legal and pro- fessional costs 5,426 5,426 Accrued interest - bond issuance ( 27,624) ( 27,624) Interest on temporary investments ( 59,172) ( 59,172) Other costs 4,220 4,220 Amortization of bond discount 3,672 3,672 Total organizational costs - construction period 564,365 6,848 571,213 Total organiza- tional costs $564,365 $6,848 $571,213 (16) HARRIS COUNTY WATER CONTROL AND IMPROVEMENT. DISTRICT NO. 133 ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS For the Year Ended July 31, 1975 Balances At Balances At Beginning End Of Year Additions Of Year Land, easements and right-of-way $ 15,320 $ 15,320 Water system 585,094 $18,756 603,850 Sewage system 595,761 6,730 602,491 Drainage system 944,174 39,222 983,396 Engineering fees 239,502 6,372 245,874 Meters 25,111 10,250 35,361 Totals $2,404,962 $81,330 $2,486,292 00 (17) HARRIS COUNTY WATER CONTROL Al IEBURANCJ July : Insurer Type Of Name Corporation Fire and Lightning: Plant al Security Stock Contents al Security Stock Liability: Bodily injury nsurance Co. Stock Property damage nsurance Co. Stock (18