Cibolo Creek Municipal Authority FY 2012 Audit Reportv 11
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ANNUAL FINANCIAL REPORT
CIBOLO CREEK MUNICIPAL AUTHORITY
GUADALUPE COUNTY, TEXAS
YEAR ENDED SEPTEMBER 30, 2012
CONTENTS
PAGE
NUMBER
BASIC FINANCIAL STATEMENTS
INDEPENDENT AUDITOR'S REPORT
1
MANAGEMENT'S DISCUSSION AND ANALYSIS
3
STATEMENT OF NET ASSETS - GOVERNMENTAL ACTIVITIES
4
STATEMENT OF ACTIVITIES
S
BALANCE SHEET - GOVERNMENTAL FUNDS
6
RECONCILIATION OF BALANCE SHEET - GOVERNMENTAL
FUNDS TO STATEMENT OF NET ASSETS
7
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
8
RECONCILIATION OF CHANGE IN FUND BALANCES
TO CHANGE IN NET ASSETS - GOVERNMENTAL FUNDS
9
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS -
GOVERNMENTAL ACTIVITIES - INTERNAL SERVICE FUND
10
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS - PROPRIETARY FUNDS -
GOVERNMENTAL ACTIVITIES -- INTERNAL SERVICE FUND
11
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS -
GOVERNMENTAL ACTIVITIES - INTERNAL SERVICE FUND
12
NOTES TO FINANCIAL STATEMENTS
13
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
25
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
27
REQUIRED SUPPLEMENTARY INFORMATION -
TEXAS REQUIREMENT
TSI -1. SERVICES AND RATES
28
TSI -2. GENERAL FUND EXPENDITURES
29
TSI -3. TEMPORARY INVESTMENTS
30
CONTENTS
PAGE
NUMBER
TSI -5. LONG -TERM DEBT SERVICE REQUIREMENTS
BY YEARS 31
TSI -6. CHANGES IN LONG -TERM BONDED DEBT 38
TSI -7. COMPARATIVE SCHEDULE OF REVENUES
AND EXPENDITURES - GENERAL FUND AND
DEBT SERVICE FUND - FIVE YEARS 39
TSI -8. BOARD MEMBERS, KEY PERSONNEL, AND
CONSULTANTS 40
N-1. ANNUAL FILING AFFIDAVIT 41
REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER
MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS 42
CIBOLO CREEK MUNICIPAL AUTHORITY
OFFICIALS
PRESIDENT
VICE PRESIDENT
SECRETARY /TREASURER
DIRECTOR
DIRECTOR
ERICH W. STREY
KEN GREENWALD
REGINNA AGEE
,JAMES C. HARDEN
RICHARD BRAUD
INDEPENDENT AUDITORS ALONZO, BACARISSE, IRVINE & PALMER, P.C.
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Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and budgetary comparison information on pages 3
through 3D and 2S through 27 be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming an opinion on the financial statements
that collectively comprise Cibolo Creek Municipal Authority's financial statements as a whole.
The accompanying financial information listed as Required Supplementary information -
Texas Requirement is presented for purposes of additional analysis and is not a required part
of the financial statements. The Required Supplementary Information - Texas Requirement is
the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the financial statements. The information has
been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In
our opinion, the information is fairly stated in all material respects in relation to the financial
statements as a whole.
Certified Public Accountants
San Antonio, Texas
January 10, 2013
CIBOLO CREEK MUNICIPAL AUTHORITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2012
This section of Cibolo Creek Municipal Authority's (Authority) annual audit is a discussion and analysis
of the Authority's financial activities for the fiscal year ended September 30, 2012. Readers are
encouraged to consider the information presented here in conjunction with accompanying basic
financial statements.
This discussion and analysis is designed to:
• Assist the reader in focusing on significant financial issues
• Provide an overview of the Authority's financial activity
• Identify changes in the Authority's financial position (its ability to address subsequent year
challenges)
Identify any material deviations from approved budget
Identify individual fund issues or concerns
FINANCIAL HIGHLIGHTS
• The Authority's assets exceeded its liabilities by $30,352,296 (net assets) for the fiscal year
reported. This compares to the previous year when assets exceed liabilities by $28,470,629.
Invested in capital assets, net of related debt, of $16,395,391 includes all property and
equipment, net of accumulated depreciation, and is reduced for outstanding debt that
has been spent for the purchase or construction of these assets.
Net assets of $36,267,146 are restricted by constraints imposed by external sources
such as grantors, laws, and regulations.
• The Authority's governmental funds reported combined ending fund balances of $39,303,095,
an increase of $25,000,718 over the September 30, 2011 fund balance of $14,302,377.
• At the end of the current fiscal year, the unassigned fund balance for the general fund was
$3,031 ,828 or 61 % of the total general fund expenditures.
• The capital projects fund balance increased by $24,000,867.
• The Authority's overall debt increased $23,737,620 or 221.3 %.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts:
• Management's discussion and analysis (this section)
• The basic financial statements,
• Required supplementary information
The basic financial statements include two types of statements that present different views of the
Authority, government -wide financial statements and fund financial statements.
Government -Wide Financial Statements
These statements provide both long -term and short -term information about the Authority's overall
financial status. Financial reporting at this level uses a perspective similar to that found in the private
sector with its basis in full accrual accounting and elimination or reclassification of internal activities.
3
The first of these two statements is the statement of net assets. This is the government -wide
statement of financial position presenting information that includes all of the government's assets and
liabilities, with the difference between the two reported as net assets.
The second government -wide statement is the statement of activities, which reports how the
Authority's net assets changed during the current fiscal year. All of the current year's revenue and
expenses are accounted for in this statement regardless of when cash is received or paid. Thus
revenues and expenses are reported in this statement for some items that will result in cash flows in
future fiscal periods.
Both of the government -wide financial statements distinguish functions of the Authority that are
principally supported by intergovernmental revenues (governmental activities). The single
governmental activity of the Authority is wastewater treatment. The government -wide financial
statements can be found on pages 4 and S of this report.
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds - not the
Authority as a whole. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The Authority, like other state
and local governments, uses fund accounting to control and manage money for particular purposes or to
show that it is meeting legal responsibilities for using public funds. Compared to prior years, the focus
is now on major funds rather than fund types.
The Authority has two types of funds:
Governmental Funds - The general, debt service, and capital projects funds are considered
governmental funds and are reported in the fund financial statements and contain essentially the same
functions as governmental activities in the government -wide financial statements. These statements
provide a short -term view that helps determine whether there are more or fewer financial resources
that can be spent in the near future to finance the Authority's programs. Because this information
does not encompass the additional long -term focus of the government -wide statements, additional
information is provided on schedules immediately following the governmental funds statements that
explain the relationship or differences between them.
The basic governmental fund financial statements can be found on pages 6 to 9 of this report:.
Internal Service Fund - Internal service funds are an accounting device used to accumulate and allocate
costs internally among the Authority's various functions. The Authority uses an internal service fund
to account for large unbudgeted emergency expenditures. Services of the internal service fund benefit
governmental functions and are included within governmental activities in the government -wide
financial statements.
Notes to the Financial Statements
The accompanying notes to the financial statements provide additional information that is essential to
a full understanding of the data provided in the government -wide and fund financial statements. The
notes to the financial statements can be found on pages 13 to 24 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents a
budgetary comparison schedule for the general fund as required supplementary information. This
schedule demonstrates compliance with the Authority's adopted and final amended budget. This
schedule can be found on pages 25 to 27 of this report.
3A
GOVERNMENT -WIDE FINANCIAL ANALYSIS
82,236
1,461,690
3,068,718
The Authority's net assets at fiscal year
end are $30,352,296. This is a
$1 881,667 increase
over last
year's net assets figure of $28,470,629.
The following table provides a summary of the Authority's net
assets at September 30,
(14.54)
6.065.975
_ (653.969)
(10.78)
TABLE 1 - SUMMARY OF
NET ASSETS
2,468,907
(587,240)
(23.79)
GOVERNMENTAL ACTIVITIES
AMOUNT
PERCENTAGE
2011-2012
2010-2011
CHANGE
CHANGE
Current Assets and Other Assets
$ 40,967,997
S1 5,300,877
$25,667,120
167.7%
Capital Assets
24.242.291
24.089.474
1 52,817
.63
TOTAL ASSETS
65.210,288
39.390.351
25,819,937
65.55
Current Liabilities
1,846,928
879,959
966,969
109.89
Noncurrent Liabilities
33,01 1 .064
10.039,763
22.971.301_
228.80
TOTAL LIABILITIES
34.857.992
10,919,722
23.938.270
219.22
Invested in Capital Assets, Net
Of Related Debt
16,395,391
13,361,472
3,033,919
22.71
Restricted - Impact Fees
8,305,950
7,260,239
1 ,045,71 1
14.40
Restricted - Debt Service
1,342,474
1,249,135
93,339
7.47
Restricted - Capital Projects
26,61 8,722
2,61 7,855
24,000,867
916.81
Unrestricted
(2231 O 241
3.981.928
(26 292,169)
(660.29)
TOTAL NET ASSETS
$ 30,352,296
$28,470,629
$ 1,881 ,667
6.61
The Authority had a decrease of governmental revenues of $1,241,209, or 14.5 %, with expenses
decreasing $653,969, or 10.8 %. The decrease in revenue was primarily from the decrease in impact
fee revenue. The following table provides a summary of the Authority's changes in net assets for the
year ended September 30:
TABLE 2 - SUMMARY OF CHANGES IN NET ASSETS
GOVERNMENTAL ACTIVITIES AMOUNT PERCENTAGE
2011 -2012 2010.2011 CHANGE CHANGE
REVENUES
Program Revenues
Service Revenue
Reclaimed Water
Impact Fees
Investment Income
Miscellaneous Revenues
Total Revenues
EXPENSES
$ 5,602,616 $ 5,268,163
55,218
82,236
1,461,690
3,068,718
18,329
15,681
155,820
1.00084
7,293,673 8,534,882
$ 334,453
6.35%
(27,018)
(32.85)
(1,607,028)
(52.37)
2,648
16.89
55,736
55.69
(1,241,209)
(14.54)
Wastewater Treatment
4,717,971
5,209,281
(491,310)
(9.43)
Interest and Other l=ees
694,035
856,694
(162,659)
(18.99)
Total Expenses
5,412,006
6.065.975
_ (653.969)
(10.78)
Change in Net Assets
1,881,667
2,468,907
(587,240)
(23.79)
NET ASSETS - AS PREVIOUSLY REPORTED
RESTATEMENT OF NET ASSETS
BEGINNING NET ASSETS - RESTATED
28,470,629 27,480,049 990,580 3.60
- (1,478,327) 1,478,327
28,44706.29 26.001,722 2,468,907
ENDING NET ASSETS $30,352,296 $28,470,629 $1,881,667
(100.00)
9.50
6.61
3B
FUND FINANCIAL ANALYSIS
For the fiscal year ended September 30, 2012, the Authority's governmental funds reported combined
fund balances of $39,303,095. Of this year -end total, $3,031,828 is unassigned indicating availability
for continuing the Authority's service requirements. Restricted fund balance is $36,267,146 and
represents amounts dedicated to debt service and capital projects.
Total ending fund balance of governmental funds shows an increase of $25,000,718 over last year's
combined fund balance of $14,302,377.
Major Governmental Funds
The general fund is the Authority's primary operating fund. This fund is primarily funded through
service revenues and impact fees. Other notable revenue sources include reclaimed water revenues
and investment income. The general fund supports the Authority's single program, wastewater
treatment.
The debt service fund accounts for payments for principal and interest and other fees supporting
payment of the Authority's several bonds outstanding. Revenues for this fund come from transfers
from the general fund and water service revenues.
The capital projects fund is currently funded through investment income and revenue bonds, which are
used to repair, reconstruct, and replace capital assets required for the Authority's operations.
General Fund Budgetary Highlights
The original 2012 adopted budget was approximately $5.6 million.
The general fund adopted budget was amended during the 2012 fiscal year. The amendments
increased budgeted expenditures by approximately $408,932 for maintenance and repairs and capital
outlay.
The general fund budget complied with financial policies approved by the board of directors.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The Authority's investment in capital assets, net of accumulated depreciation, as of September 30,
2012, totaled $24,242,291, net of accumulated depreciation. Investments in capital assets include
land, construction in progress, wastewater systems, machinery and equipment, and building
improvements. See Note 3 for additional information.
TABLE 3 - CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION
Land
Construction in Progress
Wastewater System
Machinery and Equipment
Building Improvements
Accumulated Depreciation
TOTAL CAPITAL ASSETS
2011-2012
2010 -2011
AMOUNT PERCENTAGE
CHANGE CHANGE
$ 1,253,022
$ 1,1 96,719
S 56,303
4.70%
996,001
455,596
540,405
118.61
29,534,533
29,415,583
118,950
.40
1,688,667
1,532,166
156,501
10.21
72;837
72,837
(9,302,769)
(8.583,427)
(719.342)
8.38
$24,242,291
$24,089,474
$ 1 S2,81 7
.63
3C
Long -Term Debt
At the end of the fiscal year the Authority had total bonded debt principal outstanding of $34,505,000
and related interest outstanding $13,351,628. All bonds are supported by pledged revenue generated
by wastewater treatment fees. See Note 5 for additional information.
Bonds Payable - Principal
Bonds Payable - Interest
TOTALS
TABLE 4 -- LONG TERM DEBT OUTSTANDING
2011-2012
2010-2011
$34,505,000 $10,760,000
13,351.628 2,968.311
$47,856,628 $13,728,311
BUDGET, ECONOMIC ENVIRONMENT, AND PROJECTED PROJECTS
Cibolo Creek Municipal Authority (COMA) is preparing for a series of upgrades and expansions at the
regional water reclamation plant. These improvements are being driven by increasing growth and will
provide capacity for future development within CCMA's service area, while at the same time satisfying
increasingly stringent environmental standards. This project is being funded partially by Texas Water
Development Board Clean Water State Revolving revenue bonds, and partially by impact fees.
CCMA is also making improvements to the wastewater collection system by increasing capacity in a
number of interceptor mains and two major lift stations. Increasing capacity within the collection
system not only ensures the ability to handle future growth, but also allows CCMA to fulfill
requirements of the Sanitary Sewer Overflow Initiative. Both projects are being funded partially by
Texas Water Development Board Clean Water State Revolving revenue bonds, and partially by impact
fees.
REQUESTS FOR INFORMATION
This report is designed to provide the board of directors, citizens, customers, bond rating agencies,
investors, and creditors with a general overview of the Authority's finances and to show the Authority's
accountability for the money it receives. If you have questions about this report or need additional
financial information, contact:
General Manager
Cibolo Creek Municipal Authority
100 Dietz Road
Schertz, Texas 78154
(210) 658 -6241
3D
CIBOLO CREEK MUNICIPAL AUTHORITY
STATEMENT OF NET ASSETS - GOVERNMENTAL ACTIVITIES
SEPTEMBER 30,.2012
ASSETS
CURRENT ASSETS
Cash $28,082,195
Investments 11,298,259
Receivables
Service Accounts 666,798
Prepaids 4,121
Total Current Assets 401051 ,373
NONCURRENT ASSETS
65,076
Capital Assets
1,066,272
Land
1,253,022
Construction in Progress
996,001
Wastewater System
29,534,533
Machinery and Equipment
1,688,667
Building Improvements
72,837
Accumulated Depreciation
_(9,302,769)
Total Capital Assets
24,242..,.291
Deferred Charges
65,076
Bond Issue Costs
1,066,272
Accumulated Amortization
(149,648)_
Total Deferred Charges
916.624
Total Noncurrent Assets
25,1 58,91 5
Total Assets
65,210,288
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts Payable
65,076
Accrued Wages Payable
41,994
Compensated Absences
18,355
Accrued Interest Payable
21 1 ,881
Current Portion of Long -Term Debt
1,509,622
Total Current Liabilities
1,846,928
NONCURRENT LIABILITIES
Long -Term Debt 32,956,000
Compensated Absences 55,064
Total Noncurrent Liabilities 33,011,064
Total Liabilities 34,857,992
NET ASSETS
Invested in Capital Assets, Net
of Related Debt 16,395,391
Restricted - Impact Fees 8,305,950
Restricted - Debt Service 1,342,474
Restricted - Capital Projects 26,61 8,722
Unrestricted (22,31 0,241)
TOTAL NET ASSETS $30,352,296
(The Accompanying Notes are an Integral Part of these Financial Statements) 4
FU NCTIONS /PROD RAMS
Governmental Activities
Wastewater Treatment
interest and Other Fees
Total Governmental
Activities
CIBOLO CREEK MUNICIPAL AUTHORITY
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30 2012
EXPENSES
$4,717,971
694,035
$ 5,412,006
PROG RAM
REVENUES
CHARGES
FOR
SERVICES
$7,119,524
$7 J_ 119,524
NET (EXPENSES)
REVENUES
AND CHANGES
IN NET ASSETS
$ 2,401,553
(694,035)
1,707,518
General Revenues
Unrestricted Investment Earnings 18,329
Miscellaneous Revenue 15.5_,820
Change in Net Assets 1,881 ,667
NET ASSETS -- BEGINNING
NET ASSETS - ENDING
28,470,629
$30,352,296
(The Accompanying Notes are an Integral Part of these Financial Statements) 5
CIBOLO CREEK MUNICIPAL AUTHORITY
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30201.2
MAJOR FUNDS
DEBT CAPITAL TOTAL
GENERAL SERVICE PROJECTS FUNDS
ASSETS
Cash
$ 1,462,720
$ 753
$26,618,722 $28,082,195
Investments
9,323,663
1,333,388
10,657,051
Receivables
Service Accounts
658,465
8,333
666,798
Prepaids
4121
4,121
TOTAL ASSETS
$11,448,969
$1,342,474
$26,618,722 $39,410,165
LIABILITIES
Accounts Payable
$ 65,076
$
$ $ 65,076
Accrued Wages Payable
_412994
41,994
Total Liabilities
107,070
-
107,070
FUND BALANCES
Nonspendable 4,121 - 4,121
Restricted - Impact Fees 8,305,950 8,305,950
Restricted - Debt Service - 1,342,474 1,342,474
Restricted - Capital Projects 26,618,722 26,618,722
Unassigned 35031,828 3,031,828
Total Fund Balances _1 1,341,899 1,342,474_ 26,61 8,722 39,303,095
TOTAL LIABILITIES AND FUND BALANCES $11,448,969 $1,342,474 $26,618,722 $39,410,165
(The Accompanying Notes are an Integral Part of these Financial Statements) 6
CIBOLO CREEK MUNICIPAL AUTHORITY
RECONCILIATION OF BALANCE SHEET
GOVERNMENTAL FUNDS TO STATEMENT OF NET ASSETS
SEPTEMBER 30 2012
TOTAL FUND BALANCES - GOVERNMENTAL FUNDS $39,303,095
Amounts reported for governmental activities in the statement of
net assets are different because:
Capital assets used in governmental activities
are not financial resources and therefore are not
reported as assets in governmental funds. 24,242,291
internal service funds are used by the Authority to
manage risk. The assets and liabilities are included
with governmental activities in the statement of net assets
but are not included at the fund level. 641,208
Long -term liabilities, including bonds payable, are not due
and payable in the current period and therefore are not
reported as liabilities in the funds:
Bonds Payable (34,465,622)
Bond Issuance Cost (to be Amortized as Interest Expense) 916,624
Accrued Interest Payable (21 1 ,881)
Compensated Absences (73.419)
TOTAL NET ASSETS - GOVERNMENTAL ACTIVITIES $30,352,296
(The Accompanying Notes are an Integral Part of these Financial Statements) 7
CIBOLO CREEK MUNICIPAL AUTHORITY
STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30 2012
MAJOR FUNDS
DEBT CAPITAL TOTAL
GENERAL SERVICE PROJECTS FUNDS
REVENUES
Service Revenue
$ 5,502,616
$ 100,000
$
$ 5,602,616
Reclaimed Water
55,218
-
55,218
Impact Fees
1,461,690
1,461,690
Investment Income
10,311
2,495
4,794
17,600
Miscellaneous Revenues
155,.82.0
-
-
155,820
Total Revenues
7,185,655
102,495
X7.94
7,292,944
EXPENDITURES
Wastewater Treatment
Professional Services
104,245
-
-
104,245
Administration
2,541,953
-
2,541,953
OJR Plant
759,155
759,155
Collection Systems
183,041
183,041
Systems Support
294,473
-
294,473
Reclaimed Water System
17,011
17,011
Capital Outlay
872,159
-
872,159
Debt Service
Principal Retirement
715,000
715,000
Interest and Fiscal Charges
563,456
563,456
Bond Issue Costs
238,756
6,292 .
443,927
688,975
Total Expenditures
5010..,793
1,284,748
443,927
_ 6,739,468
Excess (Deficiency) of Revenues
Over (Under) Expenditures
2,1174,862
(1,182,253)
(439,133)
553,476
OTHER FINANCING SOURCES (USES)
Proceeds from Bonds
-
1,080,000
24,440,000
25,520,000
Payment to Escrow Agent
(1,072,758)
-
(1,072,758)
Transfers in
1,268,350
1,268,350
Transfers Out
(1,268,350)
-
-
(1,268,350)
Total Other Financing Sources (Uses)
(1,268,350)
1,275,592
24,440,000
24447,242
Net Change in Fund Balances
906,512
93,339
24,000,867
25,000,718
FUND BALANCES • BEGINNING
10,435,387
1,249,135
2,617,855_
14,302,377
FUNDBALANCES - ENDING
$11,341,899
$1,342,474
$26,618,722
$39,303,095
(The Accompanying Notes are an Integral Part of these Financial Statements) 8
CIBOLO CREEK MUNICIPAL AUTHORITY
RECONCILIATION OF CHANGE IN FUND BALANCES TO
CHANGE IN NET ASSETS - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2012 ..
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $25,000,718
Amounts reported for governmental activities in the statement
of activities are different because:
Governmental funds report capital outlays as expenditures.
However in the statement of activities the cost of those
assets is allocated over their estimated useful lives and
reported as depreciation expense.
Capital Outlay 872,159
Depreciation Expense (719,342)
The internal service fund is used to manage risk. The net revenue
(expense) is reported with governmental activities. 729
Certain long -term liabilities are accrued at the government -wide level
but not at the fund level. This is the current year change in those
liabilities, reported as expense in the statement of activities. (173,056)
Bond proceeds provide current financial resources to governmental funds.
Repayment of bond principal is an expenditure in the governmental
funds, but the repayment reduces long -term liabilities in the statement
of net assets. Also, governmental funds report the effect of issuance
costs when debt is first issued whereas these amounts are deferred
and amortized in the statement of activities.
Bond Proceeds (25,520,000)
Cost of New Debt 688,975
Bond Principal Repayments 1,787,758
Amortization of Issuance Costs (50,896)
Amortization of Loss on Refunding (5378)
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES 11,881,667
(The Accompanying Notes are an Integral Part of these Financial Statements) 9
CIBOLO CREEK MUNICIPAL AUTHORITY
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
GOVERNMENTAL ACTIVITIES -.INTERNAL SERVICE FUND
SEPTEMBER 30 2.012
ASSETS
CURRENT ASSETS
Investments
NET ASSETS
NET ASSETS
Unrestricted
$ 641.1208
$ 641,208
(The Accompanying Notes are an Integral Part of these Financial Statements) 10
CIBOLO CREEK MUNICIPAL AUTHORITY
STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
GOVERNMENTAL ACTIVITIES - INTERNAL SERVICE FUND
YEAR ENDED SEPTEMBER 30, 2012
NONOPERATING REVENUES
Investment Income
NET ASSETS - BEGINNING
TOTAL NET ASSETS - ENDING
g 729
640,479
$ 641 ,208
(The Accompanying Notes are an Integral Part of these Financial Statements) 1 1
CIBOLO CREEK MUNICIPAL AUTHORITY
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
GOVERNMENTAL ACTIVITIES -..INTERNAL SERVICE FUND
YEAR ENDED SEPTEMBER 30 2012
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income
Purchase of Investments
Net Cash Used in Investing Activities
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS - END OF YEAR
$ 729
(729)
(The Accompanying Notes are an integral Part of these Financial Statements) 12
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2012
NOTE 1: SUMMARY OF SIGNIFICANT ACCOINTING POLICIES
A. Reporting Entity
The Cibolo Creek Municipal Authority (the Authority) is a governmental agency created
and established by the Texas Legislature in the passage of H.B. 1 339 and approved by
the Governor on May 24, 1971. The creative act confers on the Authority the rights,
powers, privileges, authority, and functions of the general laws of Texas applicable to
municipal utility districts under Chapter 54, Title 4 of the Water Code, The Authority
operates under the control of the board of directors consisting of five (5) directors
elected on a staggered basis. The purpose of the Authority is to conserve and treat
wastewater in the appointed area.
B. Government -Wide and f=und Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the activities of the Authority. For the
most part, the effect of interfund activity has been removed from these statements.
The statement of activities demonstrates the degree to which the direct expenses of a
given function are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function. Program revenues include 1) charges of customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function. Other items not
properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds.
Major governmental funds and an individual internal service fund are reported as separate
columns in the fund financial statements.
C. Measurement Focus Basis of Accountin and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
financial statements. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered
to be available when they are collectible within the current period or soon thereafter to
pay liabilities of the current period. For this purpose, the Authority considers revenues to
be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is
due.
13
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS CONTINUED
SEPTEMBER 30, 2012
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CQNTINUUD
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Service revenue, impact fees, and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the
current fiscal period. All other revenue items are considered to be measurable and
available only when cash is received by the Authority.
The Authority reports the following major governmental funds:
The general fund is the Authority's primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
The debt service fund accounts for the resources accumulated and payments
made for principal and interest on long -term debt of governmental funds.
The capital projects fund accounts for financial resources to be used for the
acquisition and construction of major capital facilities and is principally
financed by the sale of revenue bonds.
The government also reports the following non major proprietary fund:
The internal service fund accounts for large, unexpected capital asset
expenditures.
As a general rule the effect of interfund activity has been eliminated from the
government -wide financial statements. Exceptions to this are charges between the
Authority's general government function and various other functions of the Authority.
Eliminations of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include (1) charges to customers or applications
for goods, services, or privileges provided, (2) operating grants and contributions, and (3)
capital grants and contributions.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods or services. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Authority's
policy to use restricted resources first, then unrestricted resources as they are needed.
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS CONTINUED
SEPTEMBER 30, 2012
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT__INUED
D. Cash and Cash .E uivalents
Cash includes amounts in demand deposits and interest - bearing deposits. Cash in
excess of current requirements is invested in various interest - bearing instruments and is
disclosed as part of investments.
The Authority is authorized to invest in (1) obligations of the United States or its agencies
and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other
obligations, the principal of and interest on which are unconditionally guaranteed or
insured by the State of Texas of the United States; (4) obligations of states, agencies,
counties, cities, and other political subdivisions of any state having been rated of not less
than "AA" or its equivalent; (5) certificates of deposit issued by state and national banks
domiciled in Texas that are guaranteed or insured by the Federal Deposit Insurance
Corporation (FDIC) or its successor, or secured by obligations mentioned above; and (6)
fully collateralized direct repurchase agreements having a defined termination date. In
addition, the Authority is authorized to invest in local government investment pools. The
investment pools operate in accordance with appropriate state laws and regulations and
have regulatory oversight from the Texas Public Funds Investment Act Sec. 2256.0016,
The fair value of the Authority's position in each pool is the same as the fair value of the
pool shares.
E. Receivables
Accounts receivable are reported net of allowances for uncollectible accounts. The
allowance account represents management's estimate of uncollectible accounts based
upon experience and historical trends.
F. Investments
Investments are separately held by the Authority's various funds. Investments are stated
at amortized cost, which approximates fair value.
G. Capital Assets
Capital assets, which include land, wastewater system, buildings and improvements,
machinery, equipment, and vehicles, are reported in the governmental activities column
in the government -wide financial statements. Capital assets are defined by the Authority
as assets with an initial, individual cost of more than $2,000, and an estimated useful life
in excess of one year. When capital assets are purchased, they are capitalized and
depreciated in the government -wide financial statements. Capital assets are recorded as
expenditures of the current period in the governmental fund financial statements.
15
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED
SEPTEMBER 30. 201 2
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
G. Capital Assets Continued
Capital assets are valued at cost where historical records are available and at an estimated
cost where no records exist. Donated capital assets are valued at their estimated fair
market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.
Improvements to capital assets that materially extend the life of the asset or add to the
value are capitalized. Major outlays for capital assets and improvements are capitalized
as projects are constructed. Interest incurred during construction will not be capitalized
in the governmental activities on the government -wide financial statements.
Capital assets are depreciated over their useful lives on a straight -line basis as follows:
ASSETS
Wastewater System
Machinery and Equipment
Building Improvements
H. Compensated Absences
YEARS
20- 50
4 -30
10 -20
Authority employees are entitled to certain compensated absences based on their length
of employment. With minor exceptions, compensated absences for sickness do not vest
or accumulate and are recorded as fund expenditures when they are paid. Compensated
absences for vacation pay does have a vesting portion based on hours accumulated
times the current rate of pay to be paid upon retirement, release from employment, or
resignation. A liability for this amount is reported in government -wide financial
statements and is adjusted annually.
Long -Term Obligations
In the government -wide financial statements, long -term debt is reported as a liability in
the governmental activities statement of net assets. Bond premiums and discounts,
losses on defeasance, as well as issuance costs, are deferred and amortized over the life
of the bonds using the effective interest method. Bonds payable are reported net of the
applicable bond premium or discount and losses on defeasance. Bond issuance costs are
reported as deferred charges and amortized over the term of the related debt.
16
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS CONTINUED
SEPTEMBER 30, 2012
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
J. Fund Balance
Beginning with fiscal year 2011, the Authority implemented GASB Statement 54 "Fund
Balance Reporting and Governmental Fund Type Definitions ", This statement provides
more clearly defined fund balance categories to make the nature and extent of the
constraints placed on a government's fund balance more transparent. The following
classifications describe the relative strength of the spending constraints placed on the
purposes for which resources can be used:
Nonspendable fund balance - amounts that are not in a spendable form (such as
prepaids) or are required to be maintained intact;
• Restricted fund balance - amounts constrained to specific purposes by their providers
(such as grantors, bondholders, and higher levels of government), through
constitutional provisions, or by enabling legislation;
• Committed fund balance - amounts constrained to specific purposes by a government
itself, using its highest level of decision - making authority, to be reported as
committed, amounts cannot be used for any other purpose unless the government
takes the same highest level action to remove or change the constraint;
• Assigned fund balance -- amounts a government intends to use for a specific purpose;
intent can be expressed by the governing body or by an official or body to which the
governing body delegates the authority;
• Unassigned fund balance - amounts that are available for any purpose, positive
amounts are reported only in the general fund.
The Board of Directors establishes (and modifies or rescinds) fund balance commitments
by passage of an ordinance or resolution. Assigned fund balance is delegated by the
Board to the general manager.
K. ' Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those
estimates.
17
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS CONTINUED)
SEPTEMBER 30, 201 2
NOTE 2: DEPOSITS AND INVESTMENTS
As of September 30, 2012, the Authority had the following investments:
WEIGHTED
AVERAGE
MATURITY
INVESTMENT TYPE FAIR VALUE (YEARS)
TexPool $1 1 ,101,716 $
LOGIC Investment Pool 196,543 -
TOTAL $1 1,298,2 59
Portfolio Weighted Average Maturity $
Credit Risk is the risk that an insurer or other counterparty to an investment will not fulfill its
obligations. Investing is performed in accordance with the investment policies adopted by
the board of directors in complying with state statutes. State law limits investments in
investment pools to those continuously rated no lower than AAA or an equivalent rating by at
least one nationally recognized rating service. The Authority's investment policy does not
further limit its investment choices. As of September 30, 2012 the Authority's pooled
investments were rated AAA by Standard and Poor's.
Custodial Credit Risk is the risk that in the event of a bank failure, the Authority's deposits
may not be returned or the Authority will not be able to recover collateral securities in the
possession of an outside party. The Authority's policy requires deposits to be collateralized
by securities pledged by the Authority's agent, the Authority's financial institution, or the
financial institution's trust department, less the amount of the Federal Deposit Insurance
Corporation insurance (FDIC). The board of directors approves and designates all authorized
depository institutions.
As of September 30, 2012, the Authority's carrying value of bank deposits is $28,081,995,
and the bank balance of those deposits is $28,205,751. At September 30, 2012, all bank
balances were fully collateralized.
Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value
of an investment. Investments held for longer periods are subject to increased risk of
adverse interest rate changes. The Authority's policy provides that investments are matched
with anticipated cash flows to provide for adequate and timely availability of funds necessary
to pay obligations as they become due.
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2012
NOTE 3: CAPITAL. ASSETS
Capital asset activity for the year ended September 30, 2012 was as follows:
Governmental Activities
Capital Assets, not being Depreciated
Land
Construction in Progress
Total Capital Assets not being
Depreciated
Capital Assets, being Depreciated
Wastewater System
Machinery and Equipment
Building Improvements
Total Capital Assets being
Depreciated
Less Accumulated Depreciation for
Wastewater System
Machinery and Equipment
Building Improvements
Total Accumulated Depreciation
Total Capital Assets, being
Depreciated - Net
GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS - NET
BEGINNING
ENDING
BALANCE
INCREASE DECREASE
BALANCE
$ 1,1 96,719
$ 56,303 $ -
$ 1,253,022
455,596
540,405 -
996,001
1,652,.3.1
596,708 -
2,24 023
29,415,583
118,950 -
29,534,533
1,532,166
156,501 -
1,688,667
72,837
- -
72,837
31,020,586
275,451 -
31,296,037
(8,048,889)
(597,144) -
(8,646,033)
(511,411)
(117,342) -
(628,753)
(23,127)
(4,856)
27 983
(8,583,427)
(719,342)
(9,302 769
22,437,159 (443,891) 21 993 268
$24 089,474 $152,817 $ 124,242,291
Depreciation expense was charged to functions /programs of the Authority as follows:
Governmental Activities
Wastewater Treatment
NOTE 4: INTERFUND TRANSFERS
171=9 34 2
In the fund financial statements, the transfer from the general fund to the debt service fund
was to fund costs associated with debt service payments, Transfers between governmental
activities are eliminated in the government -wide financial statements.
TRANSFER OUT
General Fund
TRANSFER IN
DEBT
SERVICE
$1,268,350
IN's'
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS CONTINUED)
SEPTEMBER 30, 2012
NOTE 5: LONG -TERM DEBT
The Authority had the following changes in long -term debt for the year ended September 30,
2012:
UNLIMITED TAX
AND REVENUE ORIGINAL
BONDS AMOUNT
1998 Series $ 2,250,000
2002 Series
1,500,000
2004 Series
6,415,000
2010 Series
2,745,000
2010 Series
OUTSTANDING
Refunding
1,475,000
Unamortized
AMOUNT
Loss on Refunding
OCTOBER 1,
2012 Series
SEPTEMBER 30,
Refunding
1,080,000
Unamortized
ISSUED
Loss on Refunding
2012
2012 Series 24,440,000
TOTALS
During the year, the Authority issued Revenue Refunding Bonds, Series 2012 for $1,080,000
to refund the Revenue Bonds, Series 1998 in the amount of $1,060,000 by placing the
proceeds of the new bonds in an irrevocable trust to provide for all future debt service
payments on the old bonds. Accordingly, the trust account assets and liabilities for the
defeased bonds are not included in the Authority's financial statements. The reacquisition
price exceeded the net carrying amount of the old debt by $12,758. This amount is being
netted against the new debt and amortized over the remaining life of the refunded debt. As a
result of the advanced refunding, the Authority reduced its total debt service requirements by
$66,375 and resulted in an economic gain of $61,211. At September 30, 2012, the
outstanding balance of the defeased bonds is $ -0 -.
Annual requirements to retire long -term debt as of September 30, 2012, are as follows:
YEAR ENDED
SEPTEMBER 30,
REVENUE BONDS TOTAL
PRINCIPAL INTEREST REQUIREMENTS
2013
BALANCE
$ 926,924
$ 2,441 ,924
BALANCE
1,535,000
909,223
OUTSTANDING
2015
1,545,000
OUTSTANDING
AMOUNT
INTEREST
OCTOBER 1,
DURING YEAR
SEPTEMBER 30,
DUE IN
RATE
2011
ISSUED
(RETIRED)
2012
ONE YEAR
2.75 -- 4.2%
$ 1,190,000
5
$ (1,190,000)
$ -
$
.3 - 3.10
880,000
7,885,156
(70,000)
810,000
75,000
.75 -4.05
4570,000
(285,000)
4,285,000
295,000
.25 -4.15
2,645,000
(100,000)
2,545,000
105,000
3.26
1,475,000
(130,000)
1,345,000
125,000
(31.998)
3,555
(28,443)
(3.555)
1.00 -2.25
1,080,000
-
1,080,000
150,000
(1 2,758)
1 ,823
(10,935)
(1 ,823)
.25 -3.75
-
24,440,000
24,440,000
765,000
$ 10,728,002
525,507,242
$ (1,769,622?
$34,465,622
$1,5622
During the year, the Authority issued Revenue Refunding Bonds, Series 2012 for $1,080,000
to refund the Revenue Bonds, Series 1998 in the amount of $1,060,000 by placing the
proceeds of the new bonds in an irrevocable trust to provide for all future debt service
payments on the old bonds. Accordingly, the trust account assets and liabilities for the
defeased bonds are not included in the Authority's financial statements. The reacquisition
price exceeded the net carrying amount of the old debt by $12,758. This amount is being
netted against the new debt and amortized over the remaining life of the refunded debt. As a
result of the advanced refunding, the Authority reduced its total debt service requirements by
$66,375 and resulted in an economic gain of $61,211. At September 30, 2012, the
outstanding balance of the defeased bonds is $ -0 -.
Annual requirements to retire long -term debt as of September 30, 2012, are as follows:
YEAR ENDED
SEPTEMBER 30,
REVENUE BONDS TOTAL
PRINCIPAL INTEREST REQUIREMENTS
2013
$ 1,515,000
$ 926,924
$ 2,441 ,924
2014
1,535,000
909,223
2,444,223
2015
1,545,000
889,956
2,434,956
2016
1,585,000
866,901
2,451 ,901
2017
1,605,000
840,072
2,445,072
2018-2022
7,940,000
3,685,263
11,625,263
2023 -2027
6,190,000
2,706,246
8,896,246
2028 -2032
6,095,000
1,790,156
7,885,156
2033 -2037
6,495,000
736,887
7,231 ,887
TOTALS
$34 505,000
$13,351 628
$ 47,856 62.8
20
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL- STATEMENTS {CONTINUED)
SEPTEMBER 30, 2012
NOTE 5: LONG -TERM DEBT CONTINUED?
Bond Redemptions
Revenue Bonds - 2002 Series
These bonds are not subject to optional redemption prior to their stated maturity dates.
Revenue Bonds - 2004 Series
Obligations having stated maturities on and after July 10, 2015 shall be subject to
redemption prior to stated maturity, at the option of the Authority, in inverse order of stated
maturity, on January 10, 2015, or on any date thereafter, in whole or in part, in principal
amounts of $5,000 or any integral multiple thereof at the redemption price of par plus
accrued interest to the redemption date.
Revenue Bonds...- 2010 Series
Obligations having stated maturities on and after July 10, 2021 shall be subject to
redemption prior to stated maturity, at the option of the Authority, in inverse order of stated
maturity, on January 10, 2020, or on any date thereafter, in whole or in part, in principal
amounts of $5,000 or any integral multiple thereof at the redemption price of par plus
accrued interest to the redemption date.
Revenue Refundin Bonds - Series 2010
Obligations having stated maturities on and after January 10, 2013 shall be subject to
redemption prior to stated maturity, at the option of the Authority, on January 20, 2012, or
on any interest payment date thereafter, in whole or in part, in principal amounts of $5,000
or any integral multiple thereof at the redemption price of par, plus a redemption premium
of 1 %, plus accrued interest to the redemption date.
Revenue Refunding Bonds - Series 2012
Obligations having stated maturities on and after July 10, 2023 shall be subject to
redemption prior to stated maturity, at the option of the Authority, in inverse order of stated
maturity, on January 10, 2022, or on any date thereafter, in whole or in part, in principal
amounts of $5,000 or any integral multiple thereof at the redemption price of par plus
accrued interest to the redemption date.
Revenue Bonds - Series 2012
Obligations having stated maturities on and after July 10, 2023 shall be subject to
redemption prior to stated maturity, at the option of the Authority, in inverse order of stated
maturity, on January 10, 2022, or on any date thereafter, in whole or in part, in principal
amounts of $5,000 or any integral multiple thereof at the redemption price of par plus
accrued interest to the redemption date.
21
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30 2012
NOTE 5: LONG -TERM DEBT CONTINUED)
Compensated Absences
Changes in compensated absences for the year ended September 30, 2012 were as follows:
Balance at October 1, 2011 $ 30,942
Additions 50,213
Deletions (7,735)
BALANCE AT SEPTEMBER 30, 2012 $ 73,419
Of this balance $18,355 is due in the current year.
NOTE 6: COMPLIANCE WITH DEBT SERVICE REQUIREMENTS
The debt service fund is managed in accordance with related bond resolutions. The
Authority maintains cash deposits in one bank account and three local government
investment pools. Management deems the Authority is in compliance with debt service
requirements.
Debt Service Fund Detail
Cash
Investments
TOTAL
NOTE 7: PENSION PLANS
$ 753
1333388
Iii
The Authority has two separate plans created under two different sections of the Internal
Revenue Service Code. A 403(a) plan will receive all employer contributions and a 457 plan,
established in 1980 as a qualified deferred compensation plan, will receive all employee
contributions.
The Authority has a master contract with a major insurance company to provide services for
the convenience of the employer, including the maintenance of individual accounts and other
necessary recordkeeping. The insurance company offers each employee a group of variable
or fixed annuity products which are approved in this State, to choose from and which
provides for periodic payments at regular intervals, whether for a period certain or during
one or more lives.
The Authority has adopted certain changes to the 457 plan in order to comply with the
benefit requirements of the Small Business job Protection Act of 1996, the most significant
change being the employer renouncing any claim or right which it may have retained to use
amounts held under the plan for its own benefit or for the benefit of its creditors.
22
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2012
NOTE 7: PENSION PLANS (CONTINUED)
The plans are administered by a committee composed of the board of directors and the
general manager, with the general manager being a non - voting member /recorder.
Participation in the plans by an employee begins when they begin work with the Authority.
The employee must agree to defer a minimum of 6% of normal compensation (a) as a
condition of employment and (b) in return for the benefits specified in the plan. The
employer agrees to contribute 16.5% of each employee's normal compensation and to cause
such amount to be invested in the participant's individual account. In addition, the employer
agrees to contribute to the 403(a) portion of the plan a matching amount ($1 for each $1) for
voluntary contribution in excess of the mandatory 6% (with an option to increase up to 10 %)
made by the participant to the 457 plan up to an additional 4% of normal compensation. Any
voluntary contributions the employee may wish to make in excess of the 4% will not be
matched. Matching contribution amounts must be in whole percentage increments.
Basis and matching employer contributions will vest to the employee's ownership based upon
the employee's length of service as follows:
End
of Year 1
0%
End
of Year 2
50%
End
of Year 3
50%
End
of Year 4
100%
All participant contributions are always 100% vested.
Investments are all in annuity type contracts with a major insurance company.
The plans' benefits are paid out at normal retirement age of 65, according to the method the
participant has selected with the insurance company. The plans also have provisions for
disability or emergency withdrawals. Loans can be made to a participant from the vested
employer basic and matching contributions after meeting various conditions for withdrawal
and repayment.
The maximum amounts deferred by the 457 plan by a participant in any year shall be
adjusted for cast -of- living increases under Internal Revenue Service Code 457(e) 0 5).
The maximum limitation by the 403(a) plan that may be legally contributed by the employer
is the lesser of $49,000 or 100% of the employee's includible compensation for their most
recent year of service. The actual amount is established by the committee following the
above guidelines. The total payroll for the fiscal year September 30, 2012 was $1 ,721 ,503.
The Authority's contribution to the plan was $319,298 in the current year.
23
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2012
NOTE 8: RISK MANAGEMENT
The Authority is exposed to various risks of loss related to theft of, damage to, and
destruction of assets (i.e., boiler and machinery, vehicles, and other equipment). The
Authority purchases commercial liability insurance, real and personal property insurance on
the administrative offices, plant office and lab, plant garage and tool house, plant
maintenance building, plant chemical building and worker's compensation insurance through
the Texas Political Subdivisions joint Property and Liability Pool, a public entity risk pool
currently operating as a common risk management and insurance program. The agreement
for formation of the Texas Political Subdivisions joint Property and Liability Pool provides that
the pool will be self - sustaining through member premiums and will be adjusted annually
through an experience modifier. This pooling agreement requires the pool to be self -
sustaining. it is not possible to estimate the amount of any losses for which the Authority
might be liable.
There has been no significant reduction in insurance coverage from coverage in the prior
year by major category of risk. There were no settlements in excess of the insurance
coverage in any of the prior three fiscal years.
NOTE 9: PROPERTY TAXES
The Authority has the right to levy and collect property taxes. However, this right has never
been exercised, and the Authority presently has no plans to levy such taxes. There is no
statutory limit on the possible tax rate the Authority may levy. The only limit to the flax rate is
that any rate for maintenance and operations must be approved by voters and the rate for
debt service is dependent on the amount of bonded debt approved by the voters.
NOTE 10: SUBSEQUENT EVENT
Subsequent to year end, the Authority approved a settlement offer from San Antonio Water
System (SAWS). Due to coding errors within the SAWS billing system approximately 900
Authority service connections were being billed as SAWS accounts. It was determined SAWS
had collected approximately $465,422 that will be remitted to the Authority,
24
REQUIRED SUPPLEMENTARY INFORMATION
CIBOLO CREEK MUNICIPAL AUTHORITY
GENERAL FUND
SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 201.2
EXPENDITURES
Professional Services
240,515 240 515 104,24S 136,270
Administration
2,100
84,024
87,024
VARIANCE
Salaries and Wages
1,765,116
1,850,116
1,741,407
WITH FINAL
Supplies and Materials
29,610
29,610
28,154
BUDGET
Contractual Services
ORIGINAL
FINAL
710,042
POSITIVE
Maintenance and Repairs
BUDGET
BUDGET
ACTUAL
(NEGATIVE}
REVENUES
Service Revenue
$5,510,256
$5,510,256
$ 5,502,616
$ (7,640)
Reclaimed Water
210,499
210,499
55,218
(155,281)
Impact Fees
1,260,000
1,260,000
1,461,690
201,690
Investment Income
20,184
20,184
10,311
(9,873)
Miscellaneous Revenues
-
-
155,820_
155 820
Total Revenues
7,000,939 __ _
7,000,939
7,185,655
184,716
EXPENDITURES
Professional Services
240,515 240 515 104,24S 136,270
Administration
2,100
84,024
87,024
81,694
Salaries and Wages
1,765,116
1,850,116
1,741,407
108,709
Supplies and Materials
29,610
29,610
28,154
1,456
Contractual Services
853,808
878,808
710,042
168,766
Maintenance and Repairs
5,250
5,250
3,436
1,814
Insurance
84,460
84,460
58,914
25,546
Bond Issue Costs
-
-
238,756
(238,756)
2,738,244
2,848,244
2,780,709
67,535
QJR Plant
Supplies and Materials
145,000
170,000
161,155
8,845
Contractual Services
318,900
318,900
346,425
(27,525)
Maintenance and Repairs
115,800
249,772
251,575
(1,803)
Contingency
31,528
31,528
-
31,528
Capital Outlay
50,850
92,800
94,872
(2,072)
662,078
863,000
854,027,
8,973
Collection Systems
Supplies and Materials
Contractual Services
Maintenance and Repairs
Contingency
Capital Outlay
Systems Support
Supplies and Materials
Contractual Services
Maintenance and Repairs
Contingency
Capital Outlay
2,100
2,100
84,024
87,024
81,694
125,944
8,391
8,391
176,209 _ 223,459
117,120
104,410
73,780
16,416
33,000
344,726
137,120
108,410
81,340
16,416
52,200
395,486
2,438
69,211
111,392
4,750
187,791
1 47,831
89,535
57,107
56,878
351_,351
(338)
17,813
14,552
8,391
(4,750)
...3.S,668
(10,711)
18,875
24,233
16,416
(4,678)
44.,1.3 5
25
CIBOLO CREEK MUNICIPAL AUTHORITY
GENERAL FUND
SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE --
BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED SEPTEMBER_30. 201 2
EXPENDITURES (CONTINUED
Reclaimed Water System
Supplies and Materials
Maintenance and Repairs
Contingency
Plant Expansion
Capital Outlay
Total Expenditures
Excess of Revenues Over
Expenditures
OTHER FINANCING_ SOURCES (USES]
Transfer Out
Net Change in Fund Balance
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
VARIANCE
WITH FINAL
BUDGET
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
$ 4,700 $ 4,700 $ 2,537 $ 2,163
23,800 23,800 14,474 9,326
1,425 1,425 ___....1._,425
29.925 299.2.5. 17,011 12,914
1,500,000 1,500,000_ µ715,659 784.341_
5,691.697 6,100,629 5,010.793 1,089,836
1,309,242 900,310 2,174,862 1,274,552
(1, 68,350) (1.268.350)
$1,309,242 $ 900,310 906,512 $ 6,202
10,435.387
$ 1113411899
26
CIBOLO CREEK MUNICIPAL AUTHORITY
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2012
NOTE 1: BUDGETARY INFORMATION
The budget for the general fund is adopted on a basis consistent with generally accepted
accounting principles. Annual appropriations lapse at fiscal year end.
The original budget for the general fund was adopted by the board of directors in September
2011. Budgetary preparation and control is exercised at the functional level. Any transfer or
supplemental appropriation that amends the total expenditures of a department or total
budget requires board of directors' approval. Both the original and final amended budget is
included.
27
REQUIRED SUPPLEMENTARY INFORMATION -
TEXAS REQUIREMENT
CIBOLO CREEK MUNICIPAL AUTHORITY
TEXAS SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2012
TSI -1 .
SERVICES AND RATES
28
TSI -2.
GENERAL FUND EXPENDITURES
29
TSI -3.
TEMPORARY INVESTMENTS
30
TSI -4,
TAXES LEVIED AND RECEIVABLE - NO TAXES ASSESSED OR COLLECTED
TSI -5.
LONG -TERM DEBT SERVICE REQUIREMENTS BY YEARS
31
TSI -6.
CHANGES IN LONG -TERM BONDED DEBT
38
TSI -7.
COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES --
GENERAL FUND AND DEBT SERVICE FUND - FIVE YEARS
39
TSI -8.
BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS
40
N-1.
ANNUAL FILING AFFIDAVIT
41
CIBOLO CREEK MUNICIPAL_ AUTHORITY
TSH . SERVICES AND RATES
YEAR ENDED SEPTEMBER 30 201 2
1. Services Provided by the District during the Fiscal Year:
Retail Water Wholesale Water Drainage
Retail Wastewater X Wholesale Wastewater Irrigation
Parks /Recreation Fire Protection Security
Solid Waste /Garbage Flood Control Roads
Participates in joint venture, regional system, and /or wastewater service (other than
emergency interconnect)
X Other Reclaimed Water
2. Retail service providers
Not Applicable
3. Total Water Consumption during the Fiscal Year (Rounded to the Nearest Thousand)
Gallons Pumped into System: N ZA..
Gallons Billed to Customers: N/A
4. Standby Fees (Authorized Only Under TWC Section 49.231)
Does the District have debt service standby fees?
Yes
No
X
Does the District have operation and maintenance standby fees?
Yes
No
X
5, Location of District
County(ies) in which the District is located: Guadalupe, Comal, and Bexar
Is the District located entirely within one county? Yes No X
Is the District located within a City? Entirely Partly X Not at all
City(ies) in which the District is located: San Antonio Live Oak Universal City, Schertz,
Cibolo Selma Randolph Air force Base
Is the District located within a City's extra territorial jurisdiction (ETJ)?
Entirely Partly X Not at all
ETJs in which the District is located: San Antonio Live Oak Universal City, Schertz,
Cibolo, Selma
Are board members appointed by an office outside the District? Yes No X
28
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -2. GENERAL FUND EXPENDITURES
YEAR ENDED SEPTEMBER 30, 2012
PERSONNEL EXPENDITURES includin Benefits *
PROFESSIONAL FEES
Auditing
Legal
Engineering
Financial Advisor
PURCHASED SERVICES FOR RESALE
Bulk Water and Wastewater Service Purchases
CONTRACTED SERVICES
Bookkeeping
General Manager
Appraisal Authority
Tax Collector
Other Contracted Services
UTILITIES
REPAIRS AND MAINTENANCE
ADMINISTRATIVE EXPENDITURES
Director's Fees
Office Supplies
Insurance
Other Administrative Expenditures
CAPITAL OUTLAY
Capitalized Assets
Expenditures not Capitalized
TAP CONNECTION EXPENDITURES
SOLID WASTE DISPOSAL
FIRE FIGHTING
PARKS AND RECREATION
OTHER EXPENDITURES
TOTAL EXPENDITURES
Number of Persons Employed by the District:
35 Part -Time
$2,060,704
13,900
48,540
24,610
17,195
491,305
340,125
434,548
31,590
58,914
64,485
872,159
552,718
$5,010,793
0
29
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -3. TEMPORARY INVESTMENTS
YEAR ENDED SEPTEMBER 30 2012
30
ACCRUED
INTEREST
IDENTIFICATION
BALANCE
RECEIVABLE
OR CERTIFICATE
INTEREST
MATURITY
AT END OF
AT END
FUNDS
NUMBER
RATE
DATE
YEAR
OF YEAR
GENERAL FUND
TexPool
00940200001
Various
N/A
$ 1,017,713
$
TexPool
00940200008
Various
N/A
8,305,950
9,323,663
DEBT SERVICE FUND
LOGIC
1738624050
Various
N/A
196,543
-
TexPool
00940200003
Various
N/A
1,111,108
TexPool
00940200004
Various
N/A
25,737
-
1,333,388
INTERNAL SERVICE FUND
TexPool
00940200006
Various
N/A
641208
-
TOTAL - ALL FUNDS
$ 11,298,259
$
30
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -5a LONG -TERM DEBT SERVICE REQUIREMENTS - BY YEARS
YEAR ENDED SEPTEMBER 30 2012
TOTALS
$ 810,000 $130,823 $ 940,823
31
REVENUE SERIES 2002
DUE DURING
PRINCIPAL
INTEREST
FISCAL YEARS
DUE
DUE
ENDING
7 -10
_1 -10; 7-10
2013
$ 75,000
$ 21,885 $
96,885
2014
75,000
20,235
95,235
2015
75,000
18,510
93,510
2016
80,000
16,673
96,673
2017
80,000
14,632
94,632
2018
80,000
12,513
92,513
2019
85,000
10,312
95,312
2020
85,000
7,890
92,890
2021
85,000
5,383
90,383
2022
90,000
2,790
92,790
TOTALS
$ 810,000 $130,823 $ 940,823
31
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -5b. LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS CONTINUED
YEAR ENDED SEPTEMBER 30 201
DUE DURING
FISCAL YEARS
ENDING
REVENUE SERIES 2004
PRINCIPAL INTEREST
DUE DUE
7 -10 _ 1_ -10; 7 -10 TOTAL
2013
$ 295,000
$ 154,920
$ 449,920
2014
305,000
145,923
450,923
2015
315,000
1 36,31 5
4S],315
2016
325,000
126,077
451,077
2017
335,000
115,027
450,027
2018
345,000
103,303
448,303
2019
360,000
91,055
451,055
2020
370,000
77,915
447,915
2021
385,000
64,040
449,040
2022
400,000
49,410
449,410
2023
41 5,000
34,010
449,010
2024
435,000
17,618
452.618
TOTALS
$4,285,000
$1.11_1 5,613
$5,400,613
32
CIBOL.O CREEK MUNICIPAL AUTHORITY
TSI -5c. LONG -TERM DEBT SERVICE REQUIREMENTS -- BY YEARS CONTINUED
YEAR ENDED SEPTEMBER 30 2012
DUE DURING
FISCAL YEARS
ENDING
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
TOTALS
REVENUE SERIES 2010
PRINCIPAL INTEREST
DUE DUE
7 -10 1 -10; 7 -10 TOTAL
$ 105,000
105,000
105,000
110,000
110,000
115,000
115,000
120,000
12S,000
130,000
135,000
140,000
145,000
150,000
155,000
160,000
165,000
175,000
180,000
L_2,545,000
$ 82,429
81,300
79,830
77,808
75,250
72,294
69,045
65,517
61,S95
57,290
52,651
47,700
42,426
36,820
30,871
24,610
18,028
11,058
3,735
$ 990,257
$ 187,429
186,300
184,830
1 87,808
185,250
187,294
184,045
185,517
186,595
1 87,290
187,651
1 87,700
187,426
186,820
185,871
184,610
183,028
186,058
183,735
$31535.257
33
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -5d. LONG -TERM DEBT SERVICE REQUIREMENTS - BY YEARSICONTINUI D
YEAR ENDED SEPTEMBER 30 201 2
34
REFUNDING SERIES 2010
DUE DURING
PRINCIPAL
INTEREST
FISCAL YEARS
DUE
DUE
ENDING
7 -10
1-10; 7 -10
TOTAL
2013
$ 125,000
$ 41,810 $
166,810
2014
135,000
37,572
172,572
2015
135,000
33,171
168,171
2016
145,000
28,607
173,607
2017
150,000
23,798
173,798
2018
155,000
18,827
173,827
2019
165,000
1 3,61 1
178,611
2020
165,000
8,232
173,232
2021
170,000
2,771
172 771
TOTALS
$ 1,345,000
$ 208,399 $1,553.,
399
34
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -5e, LONG -TERM DEBT SERVICE REQUIREMENTS - BY YEARS CONTINUED)
YEAR ENDED SEPTEMBER 30 2012
DUE DURING
FISCAL YEARS
ENDING
REFUNDING SERIES 2012
PRINCIPAL
DUE
1 -10
INTEREST
DUE
1 -10; 7 -10 TOTAL
2013
$ 150,000
$ 17,728
$ 167,728
2014
150,000
16,040
166,040
2015
150,000
1 3,977
1 63,977
2016
155,000
11,496
1 66,496
2017
155,000
8,590
163,590
2018
160,000
5,320
165,320
2019
1601000
1,800
161,800
TOTALS
$110 $ 74,951 $1 ,1 54,951
3 5
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -5f. LONG TERM DEBT SERVICE RE UIREMENTS - BY YEARS ((CONTINUED)
YEAR ENDED SEPTEMBER 30 2012
DUE DURING
FISCAL YEARS
ENDING
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
TOTALS
REVENUE SERIES 2012
PRINCIPAL INTEREST
DUE DUE
7 -10 1 -10; 7 -10 TOTAL
$ 765,000
765,000
765,000
770,000
775,000
785,000
800,000
810,000
830,000
850,000
870,000
895,000
920,000
950,000
980,000
1,010,000
1,045,000
1,080,000
1,120,000
1,160,000
1,205,000
1,250,000
1,295,000
1,345,000
1,400,000
$24,4401000
$ 608,152
608,153
608,153
606,240
602,775
598,125
590,275
579,075
566,115
550,760
533,335
513,325
490,950
466,570
439,970
41 1 ,550
381,250
348,855
314,295
276,775
237,335
1 94,557
149,558
102,937
52,500
$10,831 ,585
S 1 ,373,1 52
1,373,153
1,373,153
1,376,240
1,377,775
1,383,125
1,390,275
1,389,075
1 ,396,1 1 5
1,400,760
1,403,335
1,408,325
1,410,950
1,416,570
1,419,970
1 ,421 ,550
1,426,250
1,428,855
1,434,295
1,436,775
1,442,335
1,444,S57
1,444,558
1,447,937
1,452,500
$35,271,585
36
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -5 . LONG -TERM DEBT SERVICE REQUIREMENTS= BY YEARS CONTINUED
YEAR ENDED SEPTEMBER 30, 2012
DUE DURING
FISCAL YEARS
ENDING
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
TOTALS
ANNUAL REQUIREMENTS FOR ALL SERIES
TOTAL TOTAL, TOTAL PRINCIPAL
PRINCIPAL INTEREST AND INTEREST
DUE DUE DUE
$ 1,51 5,000
1,535,000
1,545,000
1,585,000
1,605,000
1,640,000
1,685,000
1,550,000
1,595,000
1,470,000
1,420,000
1,470,000
1,065,000
1,100,000
1,135,000
1,170,000
1,210,000
1,255,000
1,300,000
1,160,000
1,205,000
1,250,000
1,295,000
1,345,000
1 A00,000
$34,505,000
$ 926,924
909,223
889,956
866,901
840,072
810,382
776,098
738,629
699,904
660,250
619,996
578,643
533,376
503,390
470,841
436,160
399,278
359,913
318,030
276,775
237,335
194,557
149,558
102,937
52 500
$13,3511628
$ 2,441 ,924
2,444,223
2,434,956
2,451 ,901
2,445,072
2,450,382
2,461 ,098
2,288,629
2,294,904
2,130,250
2,039,996
2,048,643
1,598,376
1,603,390
1,605,841
1,606,160
1,609,278
1,614,913
1,618,030
1,436,775
1,442,335
1,444,557
1,444,558
1,447,937
1,452,500
$ 47,856,62.8
37
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -6, CHANGES IN LONG -TERM BONDED DEBT
YEAR ENDED SEPTEMBER 30 2012
BOND
SERIES 1998 SERIES 2002
Interest Rate 2.75 - 4.2% 3 - 3.10%
Dates Interest Payable 02-01; 08 -01 01 -10; 07 -10
Maturity Dates 2019 2022
Beginning Bonds Outstanding $ 1,190,000 $ 880,000
Bonds Sold During the Fiscal Year - -
Bonds Retired During the Fiscal Year 1,190.000 70.000
Ending Bonds Outstanding $ - $ 810,000
Interest Paid During Fiscal Year S 24 =439 SS X3,32_0
PAYING AGENT'S NAME AND ADDRESS,
Series 2002
Bank of New York
Tower Marc Plaza 3rd Floor it
10161 Centurion Parkway
Jacksonville, Florida 32256
Series 1998
Chase Bank of Texas National Association
711 Navarro
San Antonio, Texas 78205
Series 2004 and 2010
Wells Fargo Bank, N.A.
MAC N9303 -1 10
Sixth and Marquette E
Minneapolis, Minnesota 55479
BOND AUTHORITY TAX BONDS
Amount Authorized by Voters $
Amount Issued $
Remaining to be Issued $ -
Debt Service Fund - Cash and Temporary Investments: $1.334141
Average Annual Debt Service Requirement: $1,914L265
$ 4,285,000 $ 2,545,000 $ 1 ,345,000 $ 1,080,000 $24,440,000 $34,505,000
$ 163,043 $ 83,578 $ 45,966 $ 3,439 $ 217,921 $ 561,706
Series 2010, Refunding
Branch Bank & Trust Company
Governmental Finance
223 West Nash Street
Wilson, North Carolina 27893
Series 2012, Refunding
BOKA, NA dba Bank of Texas
1 1 1 Congress, Suite 400
Austin, Texas 78701
Series 2012
BOKA, NA dba Bank of Texas
1 11 Congress, Suite 400
Austin, Texas 78701
38
ISSUES
SERIES 2004
_
SERIES 2010
SERIES 2010
SERIES 2012
SERIES 2012
TOTAL
.75 -4.05%
.25 -4.15%
3.26%
1 -2.25%
.25 -3.7S%
01 -10; 07 -10
01 -10; 07 -10
01 -10; 07 -10
01 -10; 07 -10
01 -10; 07 -10
2024
2031
2021
2019
2037
$ 4,570,000
$ 2,645,000
$ 1 ,475,000
$ -
$ -
$10,760,000
-
-
-
1,080,000
24,440,000
25,520,000
285,000
100.000
130,000
-
1,775,000
$ 4,285,000 $ 2,545,000 $ 1 ,345,000 $ 1,080,000 $24,440,000 $34,505,000
$ 163,043 $ 83,578 $ 45,966 $ 3,439 $ 217,921 $ 561,706
Series 2010, Refunding
Branch Bank & Trust Company
Governmental Finance
223 West Nash Street
Wilson, North Carolina 27893
Series 2012, Refunding
BOKA, NA dba Bank of Texas
1 1 1 Congress, Suite 400
Austin, Texas 78701
Series 2012
BOKA, NA dba Bank of Texas
1 11 Congress, Suite 400
Austin, Texas 78701
38
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -7 COMPARATIVE SCHEDULE» OF REVENUES AND EXPENDITURES
GENERAL FUND AND DEBT SERVICE FUND
FIVE YEARS ENDED SEPTEMBER 30, 2012
GENERAL FUND EXPENDITURES
Payroll Expenditures
2,060,704
AMOUNTS
1,900,010
Professional Fees
2012
2011
2010
GENERAL FUND REVENUES
895,915
1,199,423
852,072
Wastewater Service Revenues
$ 5,557,834
$ 5,260,399
$ 5,152,416
Impact Fees
1,461,690
3,068,718
1,537,304
Miscellaneous Revenue
166,131
__.....110,485
48,878
Total General Fund Revenues
7,185,655
8,439,602
6,738,598
GENERAL FUND EXPENDITURES
Payroll Expenditures
2,060,704
1,926,656
1,900,010
Professional Fees
104,245
164,338
129,633
Purchased and Contracted Services
895,915
1,199,423
852,072
Consumable Supplies and Materials
584,308
327,291
219,439
Recurring Operating Expenditures
493,462
298,787
302,781
Capital Outlay
872,159
617,762
928,524
Total General Fund Expenditures
5,010,793
4,5341257
4,332,459
EXCESS GENERAL FUND REVENUES
OVER EXPENDITURES
$ 2,174,862
$ 3,905 345
$ 2,406,139
DEBT SERVICE FUND REVENUES
Wastewater Service Revenues
$ 100,000
$ 90,000
$ 148,500
Interest on Time Deposits
2,495
1,937
2.,849
Total Debt Service Fund Revenues
102,495
91,937
151,349
DEBT SERVICE FUND
EXPENDITURES
Debt Service, Interest, and Fees
569,748
1,038,756
1,006,231
Debt Service, Principal
715,000
951,629
_ 843,348
Total Debt Service Fund Expenditures
1,284,748
1 990 385
1,849,579
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Average Annual Debt Service Requirement for
Unpaid Principal and Interest
Excess Revenues from General Fund and Debt
Service Fund before Expenditures for Debt
Service
Coverage (Excess Revenues as Adjusted Plus
Annual Debt Service Requirements)
Number of Wastewater Connections at
End of Year
$(1,182,253) $ (1,898,448) $ {1,698,230)
$ 1,914,265 $ 686,416 $ 753,487
$ 2,277,357 $ 3,997,282 $ 2,557,488
1.19%
35,568
5.82%
34,756
3.39%
33,233
2009
2008
2012
$ 4,130,656
$ 3,853,911
77.35%
1,270,160
1,970,232
20.34
153,45.3
285,135
2.31
5,554,269
6,109,278
100.00
PERCENT OF FUND TOTAL. REVENUES
2011
2010
2009
62.33%
74.37%
74.37%
36.36
22.87
22.87
1.31
2.76
2.76
100.00
100.00
100 -00
2008
63.08%
32.25
4.67
100.00
1,753,691
1,475,849
28.68
22.83
28.20
31.57
24.16
365,921
80,935
1.45
1.95
1.92
6.59
1.33
1,532,621
1,276,009
12.46
14.21
12.64
27.59
20.88
232,054
217,658
8.13
3.88
3.26
4.18
3.56
427,918
341,421
6.87
3.54
4.49
7.70
5.59
169,488
454,162
12.14
7.32
13.78
3.05
7.43
4,481
3,846,034
69.73
53.73
64.29
80.69
62.95
,693
$ 1,072,576
$ 2,2632244
_....30.27%
46.271
35.71 %
_19.31%
$ 207,000 $
10,761
49,307
(a) Cibolo Creek Municipal Authority
217,761
49,307
does not receive tax revenue, since
it does not levy taxes upon its
district, but pledges net service
revenue to satisfy its long -term
976,829
983,704
debt requirements. Percentage
838,977
837,611
comparisons on these Debt figures
1,81 5x806
1,821,315
have no significance and are,
therefore, omitted.
$(1,598,045) $(1,772,008)
$ 915,665 $ 971,663
$ 1,290,337 $ 2,312,551
1.41%
32,379
2.38%
31,674
CIBOLO CREEK MUNICIPAL AUTHORITY
TSI -8 BOARD MEMBERS KEY PERSONNEL AND CONSULTANTS
YEAR ENDED SEPTEMBER 30, 201.2
Complete Authority Mailing Address:
Post Office Box 930
$ 96,533 $
Schertz, Texas 78154
Authority Business Telephone Number:
(210) 658 -6241
Submission Date of the most recent District
Registration Form: June 15, 2007
Limit on Fees of Office that a Director May
Receive during a Fiscal Year $ -0
TERM OF OFFICE
EXPENSE
(ELECTED OR
FEES OF OFFICE REIMBURSEMENTS
APPOINTED)
SEPTEMBER 30, SEPTEMBER 30, TITLE AT
NAME OR DATE HIRED
2012 2012 YEAR END
BOARD MEMBERS
Erich W. Strey - Elected 05/09 - 11/13
$ $ - President
Ken Greenwald - Elected 05/07 - 11/15
Vice- President
Reginna Agee - Elected 05/07 - 11/15
- Secretary/Treasurer
James C. Harden - Elected 05/09 - 11/13
Director
Richard Braud - Appointed 08/12 - 11/13
- Director
KEY ADMINISTRATIVE PERSONNEL
Clint Ellis
8/13/2009
$ 96,533 $
- General Manager
Mr. Ellis also serves as Tax Assessor
/Collector,
although no taxes were assessed
or collected in current year.
CONSULTANTS
Alonzo, Bacarisse, Irvine & Palmer,
P.C.
(formerly Thompson, Williams,
Biediger, Kastor & Young, L.C.)
1/1/2013
$ 13,900 $
Auditors
Janice Lubel
2/12/2008
6,300
Financial Consultant
Lloyd Gosselink
7/23/2007
27,342
Attorneys at Law
The Gardner Law Firm
5/9/2006
17,482
Attorneys at Law
Alan Plummer Associates, Inc.
4/11/2007
334,786
Consulting Engineers
Southwest Securities, Inc.
6/20/1977
134,724
Financial Advisor
Cox Smith Matthews, Inc.
3/13/2009
2,289
Attorneys at Law
Adams & Flake, Inc.
7/8/2009
5,010
Attorneys at Law
Marsh Law Firm
10/29/2010
10,381
Attorneys at Law
Moeller Ingalls, LLC
5/13/2011
185,614
Consulting Engineers
Fulbright & Jaworski
3/15/1993
109,674
Bond Counsel
40
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Ilk -Jim, �- Ilr
I IP. 'IT
Ivr, aY;il Wjp"� lq{+ '.-. "., --
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all
deficiencies in internal control over financial reporting that might be deficiencies, significant
deficiencies, or material weaknesses. We did not identify any deficiencies in internal control
over financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements
are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of
our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
We noted certain matters that we reported to management of the Authority, in a separate
letter dated ,January 10, 2013.
This report is intended solely for the information and use of management, the board of
directors, others within the entity, and federal and state awarding agencies and pass - through
entities and is not intended to be and should not be used by anyone other than these
specified parties.
aaz4w�� /&ZAtf4 l
Certified Public Accountants
San Antonio, Texas
January 10, 2013
43