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Home My WebLink About1974 07 31 Financial Report - Harris county water control and improvement District No.133 MELTON 8e MELTON CERTIFIED PUBLIC ACCOUNTANTS 4040 SOUTHWEST FREEWAY HOUSTON, TEXAS 77027 R. TALLEY MELTON H. PALMER MELTON, JR. 626-5151 T. CONLAN PIERSON 1, ASSOCIATES November 4, 1974 MILL. ELSIK ROBERT L. ERWIN HAZEL HILDEBRANDT DALE MICKELSEN JOHN J. REED, JR. CLAYTON E. ROYCE To the Board of Directors of Harris County Water Control and Improvement District #133 We have examined the balance sheet of Harris County Water Control and Improvement District #133 as of July 31, 1974 and the related statement of revenue and expenditures and statement of changes in surplus 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 financial position of the District as July 31, 1974 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 preceding year. Our examination also comprehended the supplemental schedule of property as of July 31, 1974. In our opinion, such supplemental schedule when considered in relation to the basic financial state- ments, presents fairly in all material respects the information show therein. 41 a � JP� HARRIS COUNTY WATER CONTROL AND ,,N IMPROVEMENT DISTRICT #133 BALANCE SHE& July 31, 1974 ASSETS Current Assets: Cash - construction fund $ 20,214 Cash - bond fund 505 Cash - operating fund 37,194 Cash - tax fund 4,862 62,775 Certificates of deposit 441,673 Accounts receivable: Service $9,765 . Accrued interest 4,878 14,643 Total current assets 519,091 Property, at cost- (Note 4) Water, drainage and sanitary sewer systems and plants (Schedule) 2,927,835 Deferred Charge- Unamortized discount on sale of combination tax and revenue bonds 119,082 $3,566,008 LIABILITIES AND SURPLUS Current Liabilities: Accounts payable $ 16,143 Retainage payable 11,020 Accrued interest 114,718 Bonds payable (Note 2) 30,000 Customer deposits 500 Total current liabilities 172,381 Long-Term Debt- (Note 2) Combination tax and revenue bonds (net of current portion) 3,510,000 Surplus (Deficit) ( 116,373) $3,566,008 (See Notes to Financial Statements) HARRIS COUNTY WATER CONTROL AND 41M IMPROVEMENT DISTRICT #133 STATEMENT OF REVENUES AND EXPENDITURES For the Year Ended July 31, 1974 Revenues: Water taps $ 36,143 Tax revenue 33,370 Water revenue 27,468 Interest income 26,319 Sewer revenue 16,734 Penalties 1,889 141,923 Expenditures: Interest $126,477 Cost of water taps 20,240 Monthly services 19,626 Repairs and maintenance 18,914 Legal 10,533 Utilities 9,858 Amortization of bond discount 3,868 Bookkeeping 3,586 Financial advisory fee 3,485 Laboratory expenses 2,200 Insurance 1,433 Other 2,736 222,956 Excess of expenditures over revenues $ 81,033 41 (See Notes to Financial Statements) HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT #133 STATEMENT OF CHANGES IN SURPLUS For the Year Ended July 31, 1974 Balance, July 31, 1973 ($ 35,340) Excess of expenditures over revenues ( 81,033) Balance, July 31, 1974 ($116,373) (See Notes to Financial Statements) HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT #133 NOTES TO FINANCIAL STATEMENTS July 31, 1974 Note 1 - Tax Assessment The total assessed valuation of land and improvements for the year 1973 was $8,131,160. The District's tax rate was $.80 per $100 valuation yielding tax revenues of $65,049. Note 2 - Bonds Outstanding The District had bonds outstanding at July 31, 1974 as follows: Interest Description Rate Amount Series 1971 combination tax and revenue bonds due serially beginning in 1974 8.20% $1,660,000 Series 1971-A combination tax and revenue bonds due serially beginning in 1975 7.5 o% $165,000 7.8o% 85,000 250,000 Series 1972 combination tax and revenue bonds due serially beginning in 1976 6.50% 75,000 6.70% 325,000 400,000 Series 1973 combination tax. and revenue bonds due serially beginning in 1976 5.00% 75,000 5.25% 75,000 5.50% 120,000 • 5.6oa% 70,000 5.7o% 85,000 5.8o% loo,000 5.9o% loo,000 6.00% 275,000 900,000 Series 1973-A combination tax and revenue bonds due serially beginning in 1988 6.25% 225,000 6.30% 105,000 330,000 $3,540,000 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT #133 NOTES TO FINANCIAL STATEMENTS (CONTINUED) July 31, 1974 Note 3 - Customer Connections At July 31, 1974, there were 512 customer connections to the District's system. Note 4 - Capitalization of Interest During Construction Bond interest accruing during the first two years subsequent to the sale of the District' s bonds is paid from proceeds set aside in the bond fund in accordance with provisions of the applicable bond orders. Accordingly, this bond interest is charged to the cost of the plant, net of interest income earned on the unused funds and net of revenue from taxes levied during construction. For the period ended July 31, 1974, interest on tax and revenue bonds of $120,066 less interest earned on certificates of deposit of $24,985 and net revenues from taxes levied of $30,258 was charged to the cost of the plant. Note 5 - Debt Service The debt service requirements on the District's bonds are as follows: Year Ending Interest Principal Total 1975 $ 253,705 $ 30,000 $ 283,705 1976 251,35o 50,000 301,350 1977 247,96o 60,000 307,960 1978 243,67o 60,000 303,670 1979 239,42o 6o,000 299,420 $1,236,105 $260,000 $1,496,105 Note 6 - Insurance The bond order requires that the District maintain insurance coverage on its property. Accordingly, the District has acquired insurance policies on certain items of property. The total coverage under these policies is $197,000. Note 7 - 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, thereby 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. HARRIS COUNTY WATER CONTROL AND 01 . IMPROVEMENT DISTRICT #133 NOTES TO FINANCIAL STATEMENTS (CONTINUED) July 31, 1974 Note 7 - Regional Sewage Treatment Agreement (Continued) 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 sum (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. HARRIS COUNTY WATER CONTROL AND Pm IMPROVEMENT DISTRICT #133 SCHEDULE OF PROPERTY July 31, 1974 Balance, Additions Balance, July 31, 1973 (Reimbursement) July 31, 1974 Drainage System - construction costs $ 689,436 $254,738 $ 944,174 Sewer System - construction costs 738,591 107,170 Reimbursed costs ( 250,000) 738,591 ( 142,830) 595,761 Water System - construction costs 376,057 209,037 585,094 Water Meters 16,64o 8,471 25,111 Land 15,321 15,321 Other Costs During Construction: Interest - net 287,141 64,823 351,964 Engineering fees 203,852 35,650 239,502 Legal fees 121,565 10,712 132,277 Amortization - bond discount 19,700 19,700 Other 11,622 7,309 18,931 $2,460,225 $467,610 $2,927,835 ‘