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Home My WebLink About1976 07 31 Single Audit Report - Harris county Water control and improvement District No.133 Lt. „tit. --00000-- AUDIT REPORT HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 HARRIS COUNTY, TEXAS -o- JULY 31 , 1976 --ooOoo-- ta r --ooOoo-- !! C O N T E N T S !! Exhibit Schedule Ir FINANCIAL STATEMENTS 111 ACCOUNTANTS' REPORT AtP IF BALANCE SHEET, ALL FUNDS A STATEMENT OF REVENUES, EXPENSES AND FUND BALANCES, ALL FUNDS B STATEMENT OF CHANGES IN CASH, ALL FUNDS C ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT D 1! GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS, BY YEARS1! E NOTES TO FINANCIAL STATEMENTS F SUPPLEMENTAL INFORMATION SCHEDULE OF TEMPORARY INVESTMENTS 1 A ANALYSIS OF CHANGES IN TAXES RECEIVABLE 2 11 ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS 3 11 ANALYSIS OF CHANGES IN DISTRICT ORGANIZATIONAL COSTS 4 INSURANCE COVERAGE 5 --ooOoo-- 1 F WHITE, PETROV & MCHONE CERTIFIED PUBLIC ACCOUNTANTS ROBERT A.WHITE 600 JEFFERSON SUITE 1150 JOSEPH W.PETROV HOUSTON,TEXAS 77002 R OBERT W.MCHONE October 15, 1976 TELEPHONE (713) 659-1777 STEPHEN H.CORDILL,JR. JOHN B.MANTHEY MEMBERS AMERICAN INSTITUTE OF !! LORETTA M.TURNER CERTIFIED PUBLIC ACCOUNTANTS ORA F. HARRISON F Board of Directors Harris County Water Control and Improvement District No. 133 Harris County, Texas We have examined the financial statements of the various funds of HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 for the year ended 4! July 31 , 1976, listed in the foregoing table of contents. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing pro- cedures as we considered necessary in the circumstances. 11 In our opinion, the statements referred to above present fairly the finan- cial position of HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 1! at July 31 , 1976, and the results of its operations and the changes in its cash position for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preced- ing year, except for the changes described in note 8 of the notes to finan- l! cial statements. We concur with these changes. 11 The accompanying supplemental information (schedules 1 through 5) is not necessary for a fair presentation of the financial statements, but is pre- a sented as additional analytical data. This information has been subjected to the tests and other auditing procedures applied in the examination of the financial statements mentioned above and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. A aLP14 r7C- A Our report is delivered to the client with the understanding that any publication, advertisement, or copy therefrom, in full or in part, shall be approved by us. ]� Exhibit A Page l of 2 HARR|S COUNTY WATER CONTROL A ~� BALANCE SHE � JUL � � Debt General Service Tax Operating ASSETS AND Fund Fund Fund Current Assets Cash Unrestricted Cash ll 227 Restricted Cash, Note 5 614 4 097 Total Cash 614 4 09/ ll 227 Temporary Investments ]� Unrestricted Temporary Investments 48 goo Restricted Temporary Investments, N 402 065 l� Total Temporary Investments 402 065 -o- 48 goo J� Total Cash and Temporary |nve 402 679 4 09/ 60 137 Accounts Receivable and Accrued Revan 16 745 lO 662 J� Due from Other Districts, Note 9 2 804 Inter-Fund Receivables Prepaid Insurance 337 Total Current Assets 418 924 4 097 73 930 Taxes Receivable -u- l 222 -o- - Ganeral Fixed Assets, (At Lost) Physical Plant 0& Construction in Progress � Total General Fixed Assets -o- -o- -o- � |ntangibla and Other Assets � District Organizational Costs Bond Discount, Less Amortization of $ 139 854 � Total Intangible and Other As 139 854 -o~ -o- Provision for Bonded Debt 60 000 -o- -o- TOTAL ASSETS AND OTHER OE8|T5 618 778 5 319 73 930 The NOTES TO FINANCIAL STATEMENTS e Exhibit A Page 2 of 2 HARR|S COUNTY WATER CONTROL / BALANCE SH[ JULY Debt General Service Tau Operating LIABILITIES A Fund Fund Fund Currant Liabilities Accounts Payable and Accrued Expense! 6 462 5 229 Bonded Debt Payable, Currant Maturit) 60 OOO Refundable Deposits 2 810 Inter-Fund Payables lU OOO Deferred Tap Fees l 125 l� Total Currant Liabilities 76 462 -o- 9 164 � Long-Tenn Liabilities Bonded Debt Payable, Exhibit D Total Liabilities 76 462 -0- g 164 J� Fund Balances � Unallocated Fund Balances 64 766 Investment in Uncollected Taxes l 222 Unamortlzed Discount on Sale of BondE 139 854 Interest Earnings Not Transferred, Nc Contribution by Other District, Note Allocated from Net System Revenues � Allocated from Sale of Bonds w^ Allocated from Sale of Bonds for AutF Allocated for Bond Interest During Cc 168 340 7� Allocated for RatiremantofBondad Inc 234 122 4 087 � Total Fund Balances 542 316 5 319 64 766 � TOTAL LIABILITIES AND FUND 8A 618 778 5 319 73 930 � The NOTES TO FINANCIAL STATEMENTS a Exhibit B HARRIS COUNTY WATER CONTROL i IrSTATEMENT OF REVENUES, EXPEN' FOR THE YEAR El IIbt General rice Tax Operating r nd Fund Fund Operating Revenues Water Service, Note 6 66 008 Sewer Service, Note 6 28 497 Taxes Collected 196 883 Penalty and Interest 1 536 2 828 Reimbursement of Administrative Exper 1 200 r Total Operating Revenues -o- 198 419 98 533 Operating Expenses Professional Fees 200 5 826 I! Contracted Services 4 565 6 323 Utilities 6 857 Repairs and Maintenance 8 795 Recurring Operating Expense 361 9 605 II Contribution for Operation of Joint I 26 644 Total Operating Expenses _o- 5 126 64 050 Net Revenues from Operations -o- 193 293 34 483 Non-Operating Revenues (Expenses) Tap Connection Fees 49 500 Interest Earned, Note 4(C) 601 II Miscellaneous Revenues 229 Tap Connection Expense (40 465) Bond Interest 350) Amortization of Bond Discount 300) 11 Bond Principal 000) Paying Agent Fees 563) Total Non-Operating Revenues 612) -o- 9 264 II Net Revenues (Expenses) , Note612) 193 293 43 747 Additions to Fund Balances Tap Connection Expense Capitalized Discount on Sale of Bonds 900 11 Allocated for Bond Interest During Cc340 Allocated from Sale of Bonds for AutF Transferred from Construction Fund 999 11 731 IP Transferred from Tax Fund 500 Transferred from General Operating Fc563 Total Additions to Fund Balar690 193 293 55 478 IP Deductions from Fund Balances Decrease in Uncollected Taxes 6 659 Transferred to General Fixed Asset FL Transferred to Debt Service Fund 190 500 20 563 1! Transferred to General Operating Func Total Deductions from Fund BE_o_ 197 159 20 563 Net Changes in Fund Balances for the YE690 ( 3 866) 34 915 11 Fund Balances at August 1 , 1975 209 9 185 38 975 Prior Period Adjustments, Note 8 417 -o- ( 9 124) Adjusted Fund Balances at August 1 , 1626 9 185 29 851 1! Fund Balances at July 31 , 1976 316 5 319 64 766 The NOTES TO FINANCIAL STATEMENTS Ir Exhibit C !!: HARRIS COUNTY WATER CONTROL A STATEMENT OF CHANGE !! FOR THE YEAR EN r, General ir Tax Operating Fund Fund Sources of Cash !! Cash Receipts from Operations 198 419 120 056 Cash Disbursements for Operations 5 126 82 126 * Net Cash from Operations 193 293 37 930 A. Cash Received from Non-Operating Reve 50 829 Advance from Other Fund 4 Cash Transfers from Other Funds Proceeds from Sale of Bonds 1! Accrued Interest Received on Bonds at Inter-Fund Receivables Repaid Overpayments from Taxpayers 332 Customer Deposits 2 310 1! Total Cash Provided 193 625 91 069 11 Application of Cash Non-Operating Expenses 41 915 11 Acquisition of Fixed Assets Payment of Payables, Prior Year Inter-Fund Payables Repaid 1! Payment for Construction in Progress Advance to Other Fund Cash Transfers to Other Funds 190 500 20 000 Expenses Paid for Other Funds 563 Il Refund of Taxpayers' Overpayments 332 A Total Cash Applied 190 832 62 478 ill Increase (Decrease) in Cash 2 793 28 5g1 Cash and Temporary Investment Balances , 1 304 31 536 A Cash and Temporary Investment Balances , 4 097 60 127 1 a 117 The NOTES TO FINANCIAL STATEMENTS al 11 4 Exhibit D HARR|S COUNTY WATER CONTROL / ANALYSIS OF CHANGES | FOR THE YEAR D Debt Service � Requlrmmente � For The Year Ending July 31 , 1977 Description Paying Agent Principal Interest Harris County Water Control and Improve 0S mant District No. 133 Waterworks and Sewer System Combination Tan and Allied Bank of Texas Revenue Bonds, Series 1971 Houston, Texas 25 DUO 133 660 =° Harris County Water Control and Improve mant District No. 133 Waterworks and Sewer System Combination Tax and Allied Bank of Texas J� Revenue Bonds, Series 197/A Houston" Texas 15 OOO 16 755 Harris County Water Control and Improve ment District No. 133 Waterworks and Sewer System Combination Unlimited Allied Bank of Texas Tax and Revenue Bonds, Series 1472 Houston, Texas S OUO 26 325 w� Harris County Water Control and Improve mant District No. 133 Waterworks and Sewer System Combination Unlimited Allied Bank of Texas Tan and Revenue Bonds , Series 1973 Houston, Texas 15 000 50 502 Harris County Water Control and Improve ment District No. 133 Waterworks and Sewer System Combination Unlimited Allied Bank of Texas Tax and Revenue Bonds, Series 1973A Houston, Texas 20 677 w� Harris County Water Control and Improve ment District No. 133 Waterworks and Sewer System Combination Unlimited Allied Bank of Texas � Tax and Revenue Bonds, Series 1975 Houston, Texas 91 909 Harris County Water Control and Improve � ment District No. 133 Waterworks and � Sewer System Combination Unlimited Allied Bank of Texas Tax and Revenue Bonds, Series 1976 Houston, Texas _ 19 081 J� TOTALS, Note 7 60 000 358 909 Bonds Voted 5 SUO OOO mw Bonds Approved for Sale 4 625 000 Bonds Sold 4 625 000 The NOTES TO FINANCIAL STATEMENTS a Exhibit E Page 1 of 2 HARRIS COUNTY WATER CONTROL P IrGENERAL LONG-TERM DEBT SEI 1/16 DULY Seri Series 1973 Due During Principal Inte Principal Interest Due 110, Fiscal Years Due Septa Due September ], Ending July 31 March 1 Ma March 1 March 1 Total 1r 1977 25 000 1 15 000 50 502 65 502 1978 25 000 1 15 000 49 753 64 753 1979 25 000 1 15 000 49 002 64 002 11 1980 30 000 1 15 000 48 253 63 253 1981 30 000 1 25 000 47 503 72 503 1982 30 000 1 25 000 46 190 71 190 1983 35 000 1 25 000 44 878 69 878 1! 1984 35 000 1 25 000 43 565 68 565 1985 35 000 1 25 000 42 190 67 190 1986 45 000 1 35 000 40 815 75 815 11 1987 45 000 1 35 000 38 890 73 890 1988 45 000 1 35 000 36 965 71 965 1989 65 000 1 35 000 35 005 70 005 11 1990 65 000 35 000 33 045 68 045 1991 65 000 50 000 31 050 81 050 1992 90 000 50 000 28 200 78 200 1993 90 000 50 000 25 300 75 300 11 1994 90 000 50 000 22 400 72 400 1995 12a o00 5a ooa 19 450 69 450 1996 120 000 55 000 16 500 71 500 1! 1997 120 000 55 000 13 200 68 200 1998 120 000 55 000 9 900 64 900 1999 140 000 55 000 6 600 61 600 2000 140 000 55 000 3 300 58 300 1! 1 6 0 000 2 1 885000 782 456 1 667 456 TOTALS 3 11 Cash and Temporary Investment Balances Debt Service Fund 402 679 Tax Fund 4 097 Total 406 776 11 The NOTES TO FINANCIAL STATEMENTS a 11 I: Exhibit E Page 2 of 2 IrHARRIS COUNTY WATER CONTROL A GENERAL LONG-TERM DEBT SEI I! JULY I. es 1976 Due During Principal erest Due Total Fiscal Years Due tember 1 , Annual Ending July 31 March 1 arch 1 Total Requirements 1977 19 081 19 081 418 909 1978 22 898 22 898 387 841 1979 22 898 22 898 403 590 1! 1980 22 898 22 898 402 740 1981 22 898 22 898 411 480 1982 22 898 32 898 414 332 I! 1983 22 277 37 277 416 564 1984 21 310 41 310 413 040 1985 20 020 40 020 404 130 1986 18 680 38 680 420 169 1987 17 340 37 340 409 440 1988 25 000 15 940 35 940 423 649 1989 25 000 14 540 34 540 436 263 11 1990 25 000 13 100 33 100 421 800 1991 25 000 11 660 36 660 417 313 1992 25 000 9 822 34 822 427 392 1! 1993 25 000 7 985 37 985 425 310 1994 25 000 5 735 45 735 421 996 1995 25 000 2 695 37 695 427 397 1996 25 000 385 690 11 1997 25 000 385 658 1998 25 000 378 982 1999 25 000 381 070 11 2000 30 000 371 105 1! TOTALS 330 000 314 675 634 675 9 805 860 ll ii 111 The NOTES TO FINANCIAL STATEMENTS 1/ 4 Ir Exhibit F Page 1 of 8 I! HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 NOTES TO FINANCIAL STATEMENTS I! JULY 31 , 1976 111, Note 1 : Creation of District !! Harris County Water Control and Improvement District No. 133 was organized pursuant to an order of the Texas Water Rights Commission effective March 26, 1970. The Board of Directors held its first meet- ing on May 26, 1970, and the first bonds were sold on March 16, 1971 . !! Note 2: Significant Accounting Policies 11 The exhibits contained in this report were prepared on the accrual basis of accounting except for the statement of changes in cash, all 11 funds, which was prepared on a cash basis. Tax revenues and bond interest payments are reported on the cash basis of accounting. This report was prepared in accordance with the WATER DISTRICT ACCOUNTING 1! MANUAL published by the Texas Water Rights Commission and utilizing fund accounting principles. This Manual was published pursuant to Texas State statutes. 11 The District capitalized 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 11 the date of the completion of related improvements, interest expense and interest income related to these funds are being capitalized. These amounts have been shown on the balance sheet as district 1! organizational costs. In accordance with the requirements of the Texas Water Rights Commission, these amounts are not being amortized. Bond discounts have been deferred and are being amortized over the 11 life of the applicable bond issue in relation to the principal amount outstanding. Customer deposits are considered to be an adequate allowance for uncollectible accounts and accordingly, no separate allowance has been recorded. 11 The District capitalizes the cost of meters and boxes and residential lines as a part of the water system in the general fixed asset fund. 11 The District does not maintain detailed fixed asset records and thus detailed cost information on individual assets is not readily avail- able. In accordance with the requirements of the Texas Water Rights 11 Commission, fixed assets are not being depreciated. Accordingly, replacements of fixed assets and repairs are not capitalized. is11, iii I Ir Exhibit F Page 2 of 8 I! HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 NOTES TO FINANCIAL STATEMENTS JULY 31 , 1976 Note 2: Significant Accounting Policies (Continued) I! Amounts paid by one fund for another fund have been transferred to the appropriate fund by adjusting fund balance. Any subsequent repayment is reported as a contra-adjustment of fund balance. Loans by one fund I! to another fund are reported as inter-fund receivables and payables in the balance sheet if there is intent to repay the amount and if the creditor fund has the ability to repay the advance timely. 1! Note 3: Pledge of Revenues 11 The bonds are payable from the proceeds of an an 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 11 from the operation of the District's waterworks and sanitary sewer system. 11 Note 4: Legal and Bond Order Requirements 11 A. 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 reserve is reduced as the interest is paid. Trans- actions for the current year are summarized as follows: Bond Interest Reserve, August 1 , 1975 6 741 11 Additions: Two Years' Interest During Construction Period Series 1975 122 545 11 Series 1976 45 795 168 340 Deduction: Appropriation for Bond Interest Paid 6 741 Bond Interest Reserve, July 31 , 1976 Series 1975 122 545 Series 1976 45 795 168 340 1! B. The Bond Orders state that a complete engineering inspection report of the operations and physical conditions of the plant and system shall be made each year by an independent qualified engineer. At the balance sheet date, the report had not been made. Exhibit F Page 3 of 8 IrHARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 NOTES TO FINANCIAL STATEMENTS I! DULY 31 , 1976 Note 4: Legal and Bond Order Requirements (Continued) C. In accordance with the WATER DISTRICT ACCOUNTING MANUAL, all interest earned on construction fund investments should be trans- ferred to the debt service fund when received. At the balance Ir sheet date investment interest earnings received this year by the construction fund was $21 ,162, of which $16,999 was trans- ferred to the debt service fund. The interest not transferred of $4,163 and $4,103 of accrued interest have been shown in the balance 1! sheet as interest earnings not transferred. D. The Bond Orders state that the District is to transfer on a monthly basis to the debt service fund 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 princi- pal . In addition, a sum equal to 20% of such monthly payments 11 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 July 31 , 1976, 11 the cumulative requirement of these provisions was $265,612. The combined cash balances of the debt service and the tax fund at July 31 , 1976 amounted to $238,436 (exclusive of $168,340 allo- 11 cated for bond interest during construction) . E. The Bond Orders state that so long as any of the bonds are out- standing, the District agrees to maintain insurance for the 11 benefit of the holder or holders of the 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 11 has physical damage coverage on its sewer plant of $197,000 and general liability coverage and automobile liability coverage with a maximum limit of $300,000. Since no objective criteria have 1! been established for insurance coverage, a determination could not be made whether or not the District had complied with this requirement. 11 F. In accordance with the WATER DISTRICT ACCOUNTING MANUAL, the Dis- trict should require that security (par value basis) be provided by depositories for all funds held by them. At July 31 , 1976, Federal 11 insurance and the par value of securities were less than the Dis- trict's deposits at one depository. No determination was made of the market value of pledged securities. 11 11 4P Exhibit F Page 4 of 8 `e HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 NOTES TO FINANCIAL STATEMENTS JULY 31 , 1976 is Note 5: Restricted Cash and Temporary Investments Restricted by State Statutes and Bond Orders: For construction of fixed assets and all costs necessary for creation and organization of the District 4. Cash 18 766* Temporary Investments 354 163'%; For payment of bonded debt principal and interest, paying agent fees and cost of assessing and col- lecting taxes Cash 4 711 Temporary Investments 402 065 "g Total Restricted Cash and Temporary Investments 779 705 * The Bond Orders provide that any cash remaining after completion of mg construction shall be transferred to the debt service fund. Note 6: Rates and Customers 0 The District established the following water and sewer rates effective February 15, 1974: Water Service Only Residential Monthly Charge: First 5,000 Gallons of Water Used (Minimum Bill ) $5.00 4 Each 1 ,000 Gallons of Water Used Thereafter .45 Apartments Monthly Charge: The rate above shall be applicable to each occupied apartment, provided, however, that water to an apartment project may be furnished through a master meter and the rate per unit shall be calculated by dividing the total number of gallons used by the units occupied. At the time that a project's occupancy has reached 85% of capacity, the operator shall calculate the amount due using a master meter on 85% of occupancy using the following formula: Total Number of Gallons Used x 85% Total Number of Units in Project 4 MO 0 I! Exhibit F Page 5 of 8 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 !! NOTES TO FINANCIAL STATEMENTS !! DULY 31 , 1976 !! Note 6: Rates and Customers (Continued) !! Sewer Service Only Residential Monthly Charge: First 50,000 Gallons of Water Used (Minimum Bill ) $3.00 11 Each 1 ,000 Gallons of Water Used Thereafter .25 Apartments Monthly Charge: Included in Base Water Rate 11 Tap-on and Sewer Inspection Fees 11 Residential : All residences within the District shall be charged a tap-on and sewer inspection fee of $230.00 per connection to the District's sanitary sewer system. 11 Commercial : A commercial consumer shall be charged a tap-on and connection fee of .03 per square foot of land when both water and sewage 11 connections are made. In the event that only water or sewage connections are made, a fee of 1-1/2 per square foot shall be charged for each. The above rate shall be in addition to the cost of the meter and box for water taps and a sewer inspec- 11 tion fee of $5.00 per sewer tap. IIIDeposits The District established a policy requiring a deposit of $15.00 for all water and sewer customers effective February 15, 1974. 1! Water and Sewer Service Customers The following is a comparison of the number of metered water and 11 sewer service customers serviced by the District: July 31 , 1976 952 July 31 , 1975 719 July 31 , 1974 512 July 31 , 1973 364 July 31 , 1972 165 1 1 1 qv Exhibit F Page 6 of 8 4111 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 NOTES TO FINANCIAL STATEMENTS qv JULY 31 , 1976 MR Note 7: 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, 411 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 1971 , Series 1971A, Series 1972, Series 1973, Series 1973A, Al Series 1975, and Series 1976 may be called on March 1 , 1986, September 1 , 1986, March 1 , 1987, March 1 , 1987, March 1 , 1988, March 1 , 1990, and March 1 , 1990, respectively, or on any interest payment date thereafter. qv Note 8: Accounting Changes If In order to comply with the accounting policies enumerated in note 2, the following adjustments were made: qv A. General Fixed Asset Fund 0 Pre-operating costs capitalized ( 15 423) „v Reduction of capitalized interest on construction (405 497) Interest earned on investments during construction 5 057 Accrued interest received at time of sale transferred to debt service fund 27 624 7 Other cost related to bond sales capitalized 20 792 Capitalization of residential lines 69 615 Bond discount amortization capitalized ( 124) qv Decrease in Fund Balance (297 956) B. Construction Fund qv Adjustment of prior year inter-fund payable 10 946* To record prior year inter-fund payable ( 20 000) +v Decrease in Fund Balance ( 9 054) C. Debt Service Fund qU Recognition of bond interest when paid 106 824 Amortization of bond discount initiated ( 9 407) To record prior year inter-fund receivable 20 000 'v Increase in Fund Balance 117 417 qv qv !! Exhibit F Page 7 of 8 1r HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 NOTES TO FINANCIAL STATEMENTS 11 JULY 31 , 1976 Note 8: Accounting Changes (Continued) D. General Operating Fund Adjustment of prior year inter-fund receivable ( 10 946)* Recognition of income earned in prior year 1 822 11 Decrease in Fund Balance ( 9 124) Effect of above adjustments on prior year's net revenues not considered practical to determine. ;; Various amounts recorded in prior years were not liquidated by appli- 11 cable funds. Note 9: Regional Sewage Treatment Contract !I On October 24, 1974, the District entered into a regional sewage treat- ment authority contract which continues for a term of forty years with 11 Northwest Harris County Public Utility District No. 1 and two other districts which have not yet been funded. District No. 133 has con- structed the sewage treatment facilities to which District No. 1 con- tributed $250,000 for one-half of the present plant capacity. Each 11 district has the option of leasing its excess capacity. Cost of expansion of the facility is to be allocated to the district requesting the expansion. Ownership, plant capacity, and the cost of any necessary 11 improvements will be on the basis of each district's contribution to the total cost of facilities. 11 Each district, upon connection to the facilities, is to contribute $10,000 which will be restored annually into an operating account for maintenance and operations. The operator should apportion each dis- trict' s share based on its percentage ownership of capacity. 11 As of July 31 , 1976, the District had not contributed $10,000 into the operating account. 1! Proration of expenses in accordance with this contract approximates the method used by the District. The net contribution by District No. 133 for the joint operation of the plant of $26,641 has been shown in the financial statements as an operating expense. Reimburse- ment of expenses due from District No. 1 has been shown in the balance sheet as due from other districts. Exhibit F Page 8 of 8 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 NOTES TO FINANCIAL STATEMENTS JULY 31 , 1976 ■1 Note 10: Engineer's Projection 411 Because the engineer' s projection included a prior year bond issue as well as the bond issue sold this year, no statement of comparison of actual construction costs to approved engineering estimates has ql been included. 4 411 011 4 I 4 111 4111 A 41, RI 4 4 r Schedule 1 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 SCHEDULE OF TEMPORARY INVESTMENTS 1/1 JULY 31 , 1976 r Accrued rInterest 411 Interest Maturity Face Receivable Rate Date Amount July 31 , 1976 11 Construction Fund Certificates of Deposit 410! No. 48-140-342-7 7.50% 8/08/76 80 000 7.50% 8/08/76 21 479 1 003 No. 01-0319-188 269 No. 48-220-520-1 7.75% 8/26/76 70 000 981 Na. 2628 4 No. 100-302-076 7.00% 8/27/76 40 000 499 7.00% 8/10/76 100 000 41 1 170 No, 200-358 6.75% 10/06/76 42 684 181 11 Totals, Construction Fund 354 163 4 103 11 Debt Service Fund Certificates of Deposit 1! No. 2183 7.00% 8/16/76 85 000 7.75% 8/16/76 2 412 3 733 No. 200-345 94 No. 001-38-931 7.75% 8/20/76 75 000 2 500 11 No. 49245-611-9 No. 48-140-185-0 6.25% 2/17/77 3 130 80 7.50% 2/17/77 20 000 419 No. 302060 7.00% 2/17/77 7 318 110 No. 100-302075 7.00% 2/17/77 50 000 623 741 No. 48-220-354-5 7.75% 8/20/76 24 423 52 7.75% 8/24/76 7 282 No. 136504-8 111 No. 2046 8.00% 8/16/76 127 500 8 523 141 Totals, Debt Service Fund 402 065 16 245 1.1 General Operating Fund II Savings No. 300-052-4 5.00% Not Stated 48 900 -o- 1! TOTALS 805 128 20 348 441 11 Ti Schedule 2 I HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 ANALYSIS OF CHANGES IN TAXES RECEIVABLE II FOR THE YEAR ENDED JULY 31 , 1976 w Taxes Receivable, August 1 , 1975 7 881 ti 1975 Original Tax Roll 190 224 41 Total to be Accounted For 198 105 Tax Collections: Current Year 189 366 4! Prior Years 7 517 (196 883) Taxes Receivable, July 31 , 1976 1 222 Taxes Receivable, by Years 1973 60 1974 305 II 1975 857 1 222 I, Property Valuations !I 1975 1974 1973 1972 Land 7 071 840 3 332 910 3 318 330 3 072 274 111 Improvements 11 798 620 9 083 180 4 793 340 278 007 Personal Property 151 900 87 600 59 000 -o- Total Valuations 19 022 360 12 503 690 8 170 670 3 350 281 111 Tax Rate Per $100 Valuation 1 .00 1 .00 _ .80 .60 11 1 I ql r Schedule 3 1r HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 m6 ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS 11 FOR THE YEAR ENDED JULY 31 , 1976 I Balances 17 As 41 Originally Adjusted Reported Accounting Balances Balances 11 August 1 , Changes, August 1 , July 31 , 1975 Note 8 1975 Additions 1976 Land 15 320 15 320 15 320 Water System 639 211 69 615 708 826 53 910 762 736 Sewage System 602 491 602 491 602 491 11 Drainage System 983 396 983 396 983 396 Engineering Fees 245 874 245 874 1 345 247 219 Totals 2 486 292 69 615 2 555 907 55 255 2 611 162 Amounts Provided By: Construction Fund, 11 Bonds Sales 2 450 931 (250 000) 2 200 931 14 790 2 215 721 General Operating Fund, Net System Revenues 35 361 69 615 104 976 40 465 145 441 III Contribution by Other 4 District, Note 9 250 000 250 000 250 000 Total Amounts Provided 2 486 292 69 615 2 555 907 55 255 2 611 162 4 I 41 4 I 1 IN k ' ` Schedule 4 11, HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 133 ANALYSIS OF CHANGES IN DISTRICT ORGANIZATIONAL COSTS 41 FOR THE YEAR ENDED JULY 31 , 1976 S - Balances As Originally Adjusted Reported Accounting Balances Balances August 1 , Changes, August 1 , July 31 , qi 1975 Note 8 1975 Additions 1976 Legal Fees 132 276 15 924 148 200 47 650 195 850 ql Bond Interest 503 129 (405 497) 97 632 97 632 Amortized Bond Discount 3 672 ( 124) 3 548 3 548 Fiscal Agent Fees 3 309 3 291 6 600 20 150 26 750 Bond Issue Expenses 1 577 1 577 1 004 2 581 Other Costs ( 12 001 ) 12 201 200 467 667 Interest on Temporary Investments ( 59 172) 5 057 ( 54 115) ( 54 115) 1111 Totals 571 213 (367 571 ) 203 642 69 271 272 913 41.1 Amounts Provided By: General Long-Term Debt Fund, Discount on Sale of Bonds 3 672 ( 3 672) 41 Construction Fund, Bond Sales 151 208 8 917 160 125 69 271 229 396 Debt Service Fund, Bond Sales 416 333 (372 816) 43 517, 43 517 q 4 Total Amounts 41 Provided 571 213 (367 571 ) 203 642 69 271 272 913 4 411 41 4 1117 4 rHARRYS COUNTY WATER CONTROL Schedule S INSURA| The Bond Orders state that so long as agrees to maintain insurance for the | N� on the system of a kind and in an amo/ companies engaged in a similar type o been established for insurance covera' N� or not the District had complied with r e r Type of Policy Corporation Clause Type of Coverage Stock/Mutual Coinsurance '- Employee Honesty, Etc' : Tax Assessor and Collector Stock No 0Q Directors: Howard L. Martin Stuck No ~~ Jacquelyn Randall Stock No Avery M. Murrah Stock No Bennie Nagy Stock No James E. Harding Stock No -� Fire, Lightning, Extended Coverage, V\ and Malicious Mischief: lms Stock 80% Water Plants and Sewage Treatment and Deductible Per Claim $lOO Comprehensive and General Liability, / 0K Liability and Contractual Liability Stock No Bodily Injury, Per Occurrence and Property Damage, Per Occurrence a/ * Coverage required by Texas State sti subsequent to year end. �