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Home My WebLink About1973 07 31 Financial Report - Harris County water control and imoprovement District No.133 Aek MELTON & MELTON CERTIFIED PUBLIC ACCOUNTANTS 4040 SOUTHWEST FREEWAY HOUSTON, TEXAS 77027 R. TALLEY MELTON H. PALMER MELTON, JR. T. CONLAN PIERSON 626-5151 }, ASSOCIATES February 12, 1974 MILL. ELSIK DALE MICKELSEN • JOHN J. REED, JR. 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, 1973 and • the related statement of revenue and expenditures and state- ment 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 at July 31, 1973 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, except as noted in Note 4+. Our examination also comprehended the supplemental sched- ule of property as of July 31, 1973. In our opinion, such supplemental schedule, presents fairly in all material respects the information shown therein. HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT #133 BALANCE SHEET July 31, 1973 ASSETS Current Assets: Cash - Construction fund $ 23,139 Cash - Bond fund 19,675 Cash - Operating fund 10,887 Cash - Tax fund 784 54,485 Certificates of deposit 965,831 Accounts receivable: Service $ 3,121 Accrued interest 18,691 21,812 Total current assets 1,042,128 Property, at cost - (Note 7) Water, drainage and sanitary sewer systems and plants (Schedule) 2,460,225 Deferred Charge - Unamortized discount on sale of combination tax and revenue 132,750 $3,635,103 LIABILITIES AND SURPLUS Current Liabilities: Accounts payable $ 72,544 Retainage payable 11,675 Contribution - Northwest Harris County P.U.D. #1 (Note 7) 250,000 Accrued interest 110,974 Bonds payable (Note 2) 15,000 Customer deposits 250 Total current liabilities 460,443 Long-Term Debt - (Note 2) Combination tax and revenue bond (net of current portion) 3,210,000 Surplus (Note 4) ( 35,340) $3,635,103 11.14144., (See Notes to Financial Statements) HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT #133 STATEMENT OF REVENUES AND EXPENDITURES For the Year Ended July 31, 1973 Revenues: Water taps $ 29,195 Water revenue 15,223 Interest income 8,036 Sewer revenue 5,837 Tax revenue 4,575 Sewer inspections 980 Penalties 270 Other 129 64,245 Expenditures: Interest $53,459 Monthly services 13,823 Legal 13,514 Cost of water taps 11,980 Utilities 9,165 Repairs and maintenance 2,821 Bookkeeping 609 Other 1,429 106,800 Excess of expenditures over revenues $ 42,555 (See Notes to Financial Statements) WOO HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT #133 NOTES TO FINANCIAL STATEMENTS (CONTINUED) July 31, 1973 Note 7 - Contribution to Cover the Cost of Additional Capacity The District has entered into a contract to provide Northwest Harris County P. U. D. #1 with sanitary sewer services to receive, transport, treat and dispose of waste. Northwest #1 has contributed $250,000 to the District to cover the cost of the additional capacity needed to serve Northwest #1 at its anticipated maximum population. Ip the event the total costs exceed the $250,000, Northwest #1 shall contribute to WCID #133 the extra sum needed. If the total costs are lower than said amount, WCID #133 will refund the excess to Northwest #1. As of July 31, 1973, there were no costs incurred for this expansion. HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT #133 SCHEDULE OF PROPERTY July 31, 1973 Balance Balance July 31, 1972 Additions July 31, 1973 Drainage System - construction costs $ 417,996 $271,440 $ 689,436 Sewer System - construction costs 541,761 196,830 738,591 Water System - construction costs 283,396 92,661 376,057 Water Meters 7,480 9,160 16,640 Land 15,110 211 15,321 Other Costs During Construction: Interest - net 105,131 182,010 287,141 Engineering fees 139,456 64,396 203,852 Legal fees 76,829 44,736 121,565 Other 7,822 3,800 11,622 $1,594,981 $865,244 $2,460,225 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT #133 STATEMENT OF CHANGES IN SURPLUS For the Year Ended July 31, 1973 Balance, July 31, 1972 $27,086 Prior year adjustment (Note 4) ( 19,871) Excess of expenditures over revenues ( 42,555) Balance, July 31, 1973 ($35,340) (See Notes to Financial Statements) HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT #133 NOTES TO FINANCIAL STATEMENTS July 312 1973 Note 1 - Tax Assessment The total assessed valuation of land and improvements for the year 1972 was $3,286,590. The District's tax rate was $.60 per $100 valuation yielding tax revenues of $19,720. Note 2 - Bonds Outstanding The District had bonds outstanding at January 31, 1973 as follows: Interest Description Rate Amount Series 1971 combination tax and _ revenue bonds due serially beginning in 1974 8.2 % $1,675,000 Series 1971-A combination tax and revenue bonds due serially beginning in 1975 7.5 % $165,000 7.8 % 85,000 250,000 Series 1972 combination tax and reve- nue bonds due serially beginning in 1976 6.5 % 75,000 6.7 % 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 5.60% 70,000 5.70% 85,000 5.80% 100,000 5.90% 100,000 6.00% 275,000 900,000 Total $3,225,000 Note 3 - Customer Connections At July 31, 1973, there were 364 customer connections to the District's system. Amiamir HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT #133 NOTES TO FINANCIAL STATEMENTS (CONTINUED) July 31, 1973 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, 1973, interest on tax and revenue bonds of $223,588 less interest earned on certificates of deposit of $26,206 and net revenues from taxes levied of $14,972 was charged to the cost of the plant. At July 31, 1972, interest on certificates of deposit of $12,290 and net revenues from taxes of $7,581 were closed to surplus. The surplus account has been charged and the cost of the plant reduced for these amounts. Also, at that date, interest on the District's bonds accruing since the March 1, 1972 payment date was not accrued or capitalized as part of the construction costs. The interest was capi- talized when paid during the current year. Interest accruing since March 1, 1973 has been recorded. Note 5 - Debt Service The debt service requirements on the District's bonds are as follows: Year Ending Interest Princi al Total 1974 $ 249,692 15,000 $ 264,692 1975 253,693 30,000 283,693 1976 251,338 50,000 301,338 1977 247,910 60,000 307,910 1978 243,925 60,000 303,925 $1,246,558 $215,000 $1,461,558 Included in these amounts are the debt service requirements of the Series 1973-A bonds for $330,000 issued subsequent to July 31, 1973. Note 6 - Insurance The bond order requires that the District maintain insurance coverage on its property. Accordingly, the District has acquired an insurance policy on certain items of property. The total coverage under this policy is $197,000.