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Home My WebLink About1974 03 31 Single Audit Report - HArris county water control and improvement district No.108 --ooOoo-- HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 HARRIS COUNTY, TEXAS -o- MARCH 31 , 1974 --ooOoo-- ar■— --ooOoo-- C O N T E N T S Exhibit Schedule ACCOUNTANTS ' REPORT COMBINED BALANCE SHEET, ALL FUNDS A CERTIFICATES OF DEPOSIT A-1 REVENUES , EXPENSES AND FUND BALANCE , OPERATING FUND B REVENUES , EXPENSES AND FUND BALANCE , TAX FUNDimommin C TAXES RECEIVABLE C-1 REVENUES , EXPENSES AND FUND BALANCE, DEBT SERVICE FUND D BOND INTEREST RESERVE D-1 RECEIPTS AND DISBURSEMENTS, DEBT SERVICE FUND AND CONSTRUCTION FUND E GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS F GENERAL FIXED ASSETS G DISTRICT ORGANIZATIONAL COSTS H NOTES TO FINANCIAL STATEMENTS I WHITE, PETROV & MCHONE CERTIFIED PUBLIC ACCOUNTANTS ROBERT A.WHITE 600 JEFFERSON SUITE 1150 JOSEPH W.PETROV HOUSTON,TEXAS 77002 ROBERT W. MCHONE TELEPHONE (713) 224-7758 STEPHEN H.CORDILL,JR. JOHN B. MANTHEY July 18, 1974 MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Board of Directors Harris County Water Control and Improvement District No. 108 Harris County, Texas We have examined the combined balance sheet, all funds, of HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 as of March 31 , 1974, and the related statements of revenues , expenses and fund balances 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. mamma The District is in the developmental stage and construction of the fixed assets is not complete at the balance sheet date. In accordance with the suggestions of the Texas Water Rights Commission, the District did not depreci- ate its general fixed assets. We observed no departures by the District from the requirements of the bond orders except as described in detail in note 11 of the notes to financial statements. In our opinion, the accompanying combined balance sheet, all funds, and the related statements of revenues, expenses and fund balances present fairly the financial position of HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 as of March 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. The supplementary information contained in this report 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 relation to the financial statements taken as a whole. a.Z14 94-/t7c-iVvx.e Our certificate or report upon an audit or examination is delivered to client with the understanding that any publication, advertisement, or copy therefrom, in full or in part,of such certificate or report, shall be in the form to be approved by us. Exhibit A COMBINED BAL HAKR\S COUNTY WATER C0NTHU — MA General General struct|on Long-Term Fixed Fund Debt Assets ASSET3 Cash ]l 238 Certificate of Deposit , Schedule Accrued Interest Receivable, Sche Accounts Receivable, Water and Se Taxes Receivable, Schedule C-1 Prepaid Coupon Interest on Bonds, Prepaid Insurance Due From Other Funds 32 511 General Fixed Assets , Exhibit 8 l 954 396 District Organizational Costs, Ex 752 850 Amount to be Provided to Retire C 2 800 OUO TOTAL ASSETS 69 749 2 8UU O0O 2 707 246 LIABILITIES, RESERVES AND FUND 8ALA Liabilities Accounts Payab|e 940 Customer Deposits Due to Other Funds Bonds Payable, Exhibit F 2 800 000 Total Liabilities 940 % 800 000 -o- Raserves and Fund Balances Reserve For Uncollected Taxes Authorized Construction 62 809 Bond Interest , Schedu|d D-1 Investment in General Fixed A 2 707 2�� Fund Balances Total Reserves and Fund 862 809 -o- 2 707 246 TOTAL LIABILITIES , RE5ERV63 749 2 800 000 2707 246 The NOTES TO FINANCIAL 5TATEME Schedule A-1 CERTIFICATES OF DEPOSIT HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 MARCH 31 , 1974 Accrued Interest Interest Maturity Face Receivable Rate Date Amount March 31 , 1974 Debt Service Fund Certificate of Deposit No. 15491 9.25% 4/5/74 115 000 1 515 insimmig The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit B REVENUES, EXPENSES AND FUND BALANCE, OPERATING FUND HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 FOR THE YEAR ENDED MARCH 31 , 1974 OPERATING REVENUES Water Services , Note 7 42 742 Sewer Services, Note 7 24 565 Garbage Services 17 079 Sewer Inspections 755 Late Charges 2 120 Reconnections 50 TOTAL OPERATING REVENUES 87 311 OPERATING EXPENSES Paying Agent Fee 469 Bookkeeping Fees 1 075 Insurance 169 Audit Fee 1 250 ,...meinu Garbage Expense 14 857 Legal Fees 2 971 Monthly Services 15 786 Office Supplies 755 Repairs and Maintenance 8 572 Utilities 3 821 Sewer Service Expense, Note 14 20 109 Directors' Per Diems 1 450 Bad Debt Expense 278 Other 20 TOTAL OPERATING EXPENSES 71 582 NET OPERATING REVENUES 15 729 OTHER REVENUES (EXPENSES) Water Tap Fees 19 105 Water Tap Expense ( 8 600) 10 505 NET REVENUE FOR THE PERIOD, Note 6 26 234 FUND BALANCE, MARCH 31 , 1973 18 745 Transfers to Debt Service Fund (49 000) Prior Period Reclassification, Note 15 ( 2 709) FUND BALANCE, MARCH 31 , 1974 ( 6 730) The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit C REVENUES, EXPENSES AND FUND BALANCE, TAX FUND HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 FOR THE YEAR ENDED MARCH 31 , 1974 REVENUES Taxes Collected 138 350 Penalty and Interest 253 TOTAL REVENUES 138 603 EXPENSES Tax Assessor-Collector Fees 4 269 Board of Equalization 100 Preparation of Tax Roll 335 Fidelity Bond 30 Other 7 TOTAL EXPENSES 4 741 NET REVENUES, Note 6 133 862 FUND BALANCE, MARCH 31 , 1973 14 191 Transfers to Debt Service Fund (140 000) FUND BALANCE, MARCH 31 , 1974 8 053 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule C-1 msgoamo TAXES RECEIVABLE HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 MARCH 31 , 1974 Taxes Receivable, March 31 , 1973 18 710 Prior Year Correction ( 2) 1973 Original Tax Roll 128 500 Total to be Accounted For 147 208 Tax Collections: Current Year 123 686 Prior Years 14 664 138 350 Taxes Receivable, March 31 , 1974 8 858 Taxes Receivable by Years 1973 Taxes Receivable 4 814 vilimMUMF 1972 Taxes Receivable 3 025 1971 Taxes Receivable 979 1970 Taxes Receivable 40 Total Taxes Receivable 8 858 Property Valuations 1973 1972 1971 1970 Land 4 357 850 3 946 313 2 023 822 1 561 863 Improvements 9 769 390 4 975 675 1 816 375 17 500 Personal Property 150 550 75 820 -o- -o- Total Valuations 14 277 790 8 997 808 3 840 197 1 579 363 Tax Rate Per $100 Valuation .90 0.75 0.45 0.45 ANIMMINNIF The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit D REVENUES , EXPENSES AND FUND BALANCE, DEBT SERVICE FUND HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 FOR THE YEAR ENDED MARCH 31 , 1974 REVENUES Appropriation From Bond Interest Reserve, Schedule D-1 , Note 4 145 200 Interest Earned on Certificates of Deposit , Note 3 14 991 Transfers From Tax Fund 140 000 Transfers From Operating Fund 49 000 TOTAL REVENUES 349 191 EXPENSES Bond Interest 265 700 NET REVENUES 83 491 FUND BALANCE, MARCH 31 , 1973 151 129 Prior Period Reclassification, Note 15 2 709 FUND BALANCE, MARCH 31 , 1974 237 329 mwommi- The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule D-1 BOND INTEREST RESERVE HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 MARCH 31 , 1974 Bond Interest Reserve, March 31 , 1973 175 146 Deductions : Bond Interest Transferred to Debt Service Fund, Note 4 $1 ,300,000 Series 1971A 97 500 $530,000 Series 1972 47 700 Total Deductions 145 200 Bond Interest Reserve, March 31 , 1974 29 946 Bond Interest Reserve $1 ,300,000 Series 1971A -0- $530,000 Series 1972 29 946 Total , March 31 , 1974 29 946 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit E RECEIPTS AND DISBURSEMENTS , DEBT SERVICE FUND AND CONSTRUCTION FUND HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 FOR THE YEAR ENDED MARCH 31 , 1974 Debt Service Construction Fund Fund RECEIPTS Redemption of Certificates of Deposit 283 067 157 194 Interest Received on Certificates of Deposit 16 806 3 68o Transfers From Tax Fund 140 000 Transfers From Operating Fund 49 000 Interest Received on Certificates of Deposit Transferred From Construction Fund 7 891 TOTAL RECEIPTS 496 764 160 874 ..ass DISBURSEMENTS Interest Received on Certificates of Deposit Transferred to Debt Service Fund 7 891 Construction of System 13 349 Purchase of Certificates of Deposit 214 119 2 982 Payment of Prior Year' s Accounts Payable 103 017 Payments for Other Funds 17 906 Bond Interest , Note 12 267 173 TOTAL DISBURSEMENTS 481 292 145 145 EXCESS OF RECEIPTS OVER DISBURSEMENTS 15 472 15 729 CASH BALANCE, MARCH 31 , 1973 742 15 509 CASH BALANCE , MARCH 31 , 1974 16 214 31 238 MINNININNOIr- The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit F Page 1 of 2 GENERAL LONG-TERM DEBT HARRIS COUNTY WATER CONTRO MAR Debt Service Requirements For The Year Ending For The Year Ending March 31 , 1975 March 31 , 1976 Description E Principal Interest Principal Interest Harris County Water Control and Impr District No. 108 Waterworks and Se Combination Tax and Revenue Bonds, 30 945 30 945 Harris County Water Control and Impr District No. 108 Waterworks and Se Combination Tax and Revenue Refunc Series 1971 60 000 60 000 Harris County Water Control and Impr District No. 108 Waterworks and Se Combination Tax and Revenue Bonds, 130 000 96 337 Harris County Water Control and Impr District No. 108 Waterworks and SE Combination Tax and Revenue Bonds, 47 700 47 700 TOTALS , Notes 6, 9 and 13 -o- 268 645 -o- 234 982 The NOTES TO FINANCIAL STATEMEt Exhibit F """mw' Page 2 of 2 GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO, 108 MARCH 31 , 1974 Principal Principal Interest Interest Total For The Years Due Due Due Due Annual Ending March 31 , April 1 October 1 April 1 October 1 Requirements 1975 134 323 134 322 268 645 1976 117 491 117 491 234 982 1977 30 000 5 000 117 491 110 441 262 932 1978 30 000 5 000 110 229 109 141 254 370 1979 3o 000 10 000 108 929 101 028 249 957 1980 35 000 to 000 too 603 99 398 245 001 1981 45 000 to 000 98 973 97 341 251 314 1982 45 000 to 000 96 916 95 285 247 201 1983 50 000 10 000 94 860 93 048 247 908 1984 5o 000 15 000 92 623 90 810 248 433 1985 60 000 15 000 90 173 87 985 253 158 1986 60 000 15 000 87 347 85 160 247 507 ""r 1987 70 000 15 000 84 523 81 985 251 508 1988 75 000 15 000 81 385 78 654 25o 039 1989 80 000 15 000 78 o54 75 141 248 195 1990 90 000 15 000 74 541 71 191 25o 732 1991 95 000 15 000 7o 591 67 073 247 664 1992 105 000 15 000 66 442 62 543 248 985 1993 110 000 15 000 61 912 57 825 244 737 1994 120 000 20 000 57 195 52 645 249 84o 1995 130 000 20 000 51 805 46 892 248 697 1996 14o 000 20 000 46 052 40 753 246 805 1997 160 000 20 000 39 912 33 913 253 825 1998 175 000 20 000 33 073 26 516 254 589 1999 t95 000 20 000 25 676 18 370 259 046 2000 220 000 20 000 17 53o 9 305 266 835 2001 230 000 20 000 8 465 84o 259 305 TOTALS 2 430 000 370 000 2 047 114 1 945 096 6 792 210 wimmramr— The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit G GENERAL FIXED ASSETS HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 MARCH 31 , 1974 Balances Balances April 1 , 1973 Additions March 31 , 1974 Drainage System 622 564 650 623 214 Sewer System 707 038 4 772 711 810 Water System 433 702 9 836 443 538 Engineering 174 132 27 174 159 Land 1 675 1 675 TOTAL , Notes 10 and 11 1 939 111 15 285 1 954 396 Additions Provided By Construction Fund Disbursed 13 349 Reimbursable Transfer From Operating Fund 1 936 Total Amount Provided 15 285 wwwwwww— The NOTES TO FINANCIAL STATEMENTS are an integral part of this report . Exhibit H 41111010111/1 DISTRICT ORGANIZATIONAL COSTS HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 MARCH 31 , 1974 Balances Balances April 1 , 1973 Additions March 31 , 1974 Directors ' Per Diems 4 925 4 925 Bond Coupon Interest , Note 4 345 861 145 200 491 061 Legal Fees 127 688 127 688 Fiscal Advisory Fees 44 000 44 000 Bond Discount 79 154 79 154 Publication of Legal Notices 2 516 2 516 Creation of District 1 123 1 123 - Bond Printing Expense 1 560 1 560 Election Expense 616 616 Other 207 207 TOTAL, Note 5 607 650 145 200 752 850 Additions Provided By Debt Service Fund 145 200 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit I Page 1 of 4 NOTES TO FINANCIAL STATEMENTS HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 MARCH 31 , 1974 Note 1 : Creation of District Harris County Water Control and Improvement District No. 108 was created by an order of the Texas Water Rights Commission effective October 22, 1968. The Board of Directors held its first meeting on November 7, 1968, and the first bonds were sold on August 31 , 1970. Note 2: Accounting Methods The exhibits and supporting schedules contained in this report were prepared on the accrual method of accounting except for Exhibit C which was prepared on the modified accrual method and Exhibit E which was prepared on the cash basis. ....�.�.r Note 3: Interest Earned on Investments The District has adopted the policy of transferring interest earned on investments of the construction fund permanently to the debt service fund. Interest on construction fund investments amounted to $2,315 ' for the current year. Note 4: Bond Interest Reserve In accordance with Section VIII of 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 5: District Organizational Cost The District has elected to capitalize and charge to district organizational costs all costs incurred in the issue and sale of bonds , costs of creating and organizing the District and some adminis- trative costs until construction of fixed assets is completed. r Exhibit I Page 2of4 NOTES TO FINANCIAL STATEMENTS HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 MARCH 31 , 1974 Note 6: Pledge of Tax and Operating Revenue 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. Note 7: Water and Sewer Service Rates The District has established the following water and sewer service • rates: Residential and Commercial Combined Water and Sewer Service First 8,000 Gallons of Water Used (Minimum Bill )- 8.75 Each 1 ,000 Gallons of Water Used Thereafter .45 Water Service Only First 8,000 Gallons of Water Used (Minimum Bill ) 5.00 Each 1 ,000 Gallons of Water Used Thereafter .45 Sewer Service Only Sewer Service (Minimum Bill ) 3.75 * Master metered townhouses are based on first 5,000 gallons of water used times the number of units. Note 8: Water and Sewer Service Customers The following is a comparison of the number of metered water and sewer service customers serviced by the District : March 31 , 1972 220 March 31 , 1973 383 March 31 , 1974 654 arwr— Exhibit I Page 3of4 NOTES TO FINANCIAL STATEMENTS HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 MARCH 31 , 1974 Note 9: Redemption of Bonds The outstanding bonds of Harris County Water Control and Improvement District No. 108 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. Bonds of the Series 1970A, 1971 , 1971A and 1972 may be called on October 1 , 1985, April 1 , 1985, April 1 , 1986 and April 1 , 1987, respectively, or any interest date thereafter. Note 10: Insurance Coverage Bond Order dated March 3, 1970, Section X, Paragraph E, requires that as long as any of the bonds are outstanding, the District will maintain insurance on its facilities for the benefit of bondholders of a type and in an amount which usually would be carried by private companies engaged in a similar type of business. At the balance sheet date the District carried the following insurance: Insuror: National Standard Insurance Co. Policy Number: 7314614 Policy Period: November 12, 1973 to November 12, 1976 Amount of Coverage: $170 ,000 Type of Coverage: Fire and Lightning, Extended Coverage, Vandalism and Malicious Mischief Description of Property Covered : Water and Sewer Plants Note 11 : Engineering Report The Bond Order dated March 3, 1970, Section X, Paragraph I , states 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 said report had not been made. Note 12: Prepaid Coupon Interest "'sawamill— Coupon interest in the amount of $134,323, was transmitted to the bond paying agent in March , 1974, for the interest due April 1 , 1974. Exhibit I .�..�.. Page 4 of 4 NOTES TO FINANCIAL STATEMENTS HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 MARCH 31 , 1974 Note 13: Supplemental Coupons All bonds of the Series 1970A and Series 1971A have supplemental coupons attached so that the total interest paid on each bond shall be 10% per annum from January 1 , 1971 to October 1 , 1973, on the Series 1970A and from October 1 , 1971 to October 1 , 1974, on the Series 1971A. All bonds of the Series 1971 Refunding Bonds shall have supplemental coupons attached so that the total interest paid on each bond will be equal to eight and one-half per cent (8-1/2%) per annum from July 1 , 1971 to October 1 , 1973, and ten per cent (10%) per annum from October 1 , 1973 to April 1 , 1978. Bonds of the Series 1972 maturing in the years 1982 through 2000, aggregating $490,000, have supplemental coupons attached so that the total interest paid on each bond shall be nine per cent (9%) per annum from June 1 , 1972 to April 1 , 1976. Note 14: Contract With City of Friendswood On October 19, 1971 , the District entered into a waste disposal contract with the City of Friendswood , Texas. Under the terms of this contract , the District constructed lines and facilities to transport waste to the sanitary sewer trunk line facilities of the City. Also, on March 30, 1972, the District paid the City $239,000 for expansion and improvement of the City' s sewage treatment facilities to meet all state and federal regulations. Under this contract the District is entitled to have up to 460,000 gallons per day treated by the City. The City is responsible for all maintenance and operation of the plant. As of June 15 , 1972 , the District must pay $3.00 per connection , per month for sewer treatment service. Note 15: Prior Period Reclassification This reclassification results from a transfer of funds from the operating fund to debt service fund in a prior period.