03-31-1995 district #2
............u. ,l,. b,..... ('.Jv........s> Ie,.
K.S.
ANNUAL FINANCIAL REPORT
AND SUPPLEMENTAL INFORMATION
GUADCO MUNICIPAL UTILITY
DISTRICT NO.2
GUADALUPE AND
COMAL COUNTIES, TEXAS
YEAR ENDED MARCH 31, 1995
/
HARRY A. WERLAND
Cru{id <Abf1, dT-=ounl=t
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HARRY A. WERlAND
C",tifid PuG!io dtaaoun/ant
June 6, 1995
737 ISOM ROAD
SAN ANTONIO,TX 76216
(210) 306-0303
FAX: (210) 525-0340
The Board of Directors
Guadco Municipal Utility District No. 2
Guadalupe and Comal Counties, Texas
As part of my examination of your financial statements at March 3l,
1995, I reviewed and tested the District's system of internal accounting
control to the extent I considered necessary to evaluate the systems as
required by generally accepted auditing standards. Under these
standards the purpose of such evaluations is to establish a basis for
reliance thereon in determining the nature, timing, and extent of other
auditing procedures that are necessary for expressing an opinion on the
general purpose financial statements.
The objective of internal accounting control is to provide reasonable,
but not absolute, assurance as to the safeguarding of assets against
loss from unauthorized use or disposition, and the reliability of
financial records for preparing financial statements and maintaining
accountability for assets. The concept of reasonable assurance
recognizes that the cost of a system of internal accounting control
should no exceed the benefits derived and also recognizes that the
evaluation of these factors necessarily requires estimates and
judgements by management.
There are inherent limitations in that should be recognized in
considering the potential effectiveness of any system of internal
accounting control. In the performance of most control procedures,
errors an result form misunderstanding of instructions, mistakes of
judgement, carelessness, or other personal factors. Control can be
circumvented by collision. Similarly, control procedures can be
circumvented intentionally by management either with respect to the
estimates and judgements required in the preparation of financial
statements. Further, projection of any evaluation of internal
accounting control to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions, and
that the degree of compliance with the procedures may deteriorate.
My study and evaluation disclosed no condition that I believe to be a
material weakness, but did disclose the following condition on which I
believe some corrective action should be considered.
Oriqinal Documents in Files
In our review of the District's prior contracts and bond agreement as
part of our audit procedure, some of the original documents were not
available for review. The originals are important to management and to
the Board of Directors if a question arises in the future regarding
these documents and the user knows he is looking at the actual document.
These documents have probably been placed in other files throughout the
years. Management should take steps to locate the placement of the
original documents for future reference.
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Guadco Municipal Utility District No. 2
Page Two
This report is intended solely for the use of the management, Board of
Directors, and the Texas Natural Resource Conservation Commission and
should not be used for any other purpose.
The foregoing conditions were considered in determining the nature,
timing, and extent of the audit tests to be applied in my examination of
the financial statements, and this report of such conditions does not
modify my report dated June 6, 1995, on such financial statements.
June 6, 1995
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I President
I Vice President
Secretary
I Treasurer
Assistant Secretary
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ANNUAL FINANCIAL REPORT
OF THE
GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
YEAR ENDED MARCH 31, 1995
George E. Griffiths
George H. Gentry, Jr.
Bill F. Hackney
Dick Reavis
Henry L. Ward
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TABLE OF CONTENTS
INDEPENDENT AUDITOR'S REPORT
GENERAL PURPOSE FINANCIAL STATEMENTS
COMBINED BALANCE SHEET - ALL GOVERNMENTAL
FUND TYPES AND ACCOUNT GROUPS
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL
FUND TYPES
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND
NOTES TO FINANCIAL STATEMENTS
SUPPLEMENTAL INFORMATION
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SUPPLEMENTAL SCHEDULES INCLUDED WITHIN THIS REPORT
D.
E.
F.
G. (1)
G. (2)
H.
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I. (1)
J.
K.
L.
M.
OTHER INFORMATION
AUDITOR'S REPORT ON SUPPLEMENTAL SCHEDULES
NOTES REQUIRED BY THE WATER DISTRICT ACCOUNTING
MANUAL
SCHEDULE OF SERVICES AND RATES
SCHEDULE OF GENERAL FUND EXPENDITURES
SCHEDULE OF TEMPORARY INVESTMENTS
ANALYSIS OF CHANGES IN CASH AND TEMPORARY
INVESTMENTS - ALL FUNDS
ANALYSIS OF TAXES RECEIVABLE
ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS
ANALYSIS OF ORGANIZATIONAL COSTS
GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS
BY YEARS
ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT
COMPARATIVE STATEMENT OF REVENUES AND
EXPENDITURES, GENERAL FUND, AND DEBT SERVICE
FUND - FIVE YEARS ENDED MARCH 31, 1995
INSURANCE COVERAGE
INDEPENDENT AUDITOR'S REPORT ON OTHER
INFORMATION
N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL,
AND CONSULTANTS
O. AUDITOR'S QUESTIONNAIRE
P. CERTIFICATE OF THE BOARD OF DIRECTORS
PAGE
NUMBER
1
2
3
4
5
1
5
13
15
16
17
18
19
20
21
22
23
25
26
27
29
33
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HARRY A. WERlAND
C",ufid ~&[;" c4caounWnt
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737 ISOM ROAD
SAN ANTONIO,TX 78216
(210) 308-0303
FAX: (210) 525-0340
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Board of Directors
Guadco Municipal Utility District NO.2
Guadalupe and Comal Counties, Texas
Independent Auditor's Report
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I have audited the accompanying general purpose financial statements of Guadco
Municipal Utility District No. 2 as of March 31, 1995, and for the year then
ended as listed in the table of contents. These general purpose financial
statements are the responsibility of the Guadco Municipal Utility District No.
2 management. My responsibility is to express an opinion on these financial
statements based on my audit. The financial statements of the GUADCO Municipal
Utility District NO.2 were audited by other auditors whose report dated May 19,
1994 expressed an unqualified opinion. on those statements.
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I conducted my audit in accordance with generally accepted auditing standards and
generally accepted government auditing standards. Those standards require that
I plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examiningr on a test basis! evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. I believe that my audit
provides a reasonable basis for my opinion.
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In my opinion, the general purpose financial statements referred to above present
fairly, in all material respects, the financial position of Guadco Municipal
Utility District No.2 as of March 31, 1995, and the results of its operations
and changes in fund balances for the year then ended in conformity with generally
accepted accounting principles.
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My audit was made for the purpose of forming an opinion on the general purpose
financial statements taken as a whole. The accompanying financial information
listed as supplemental information is presented for purposes of additional
analysis and is not a required part of the general purpose financial statements
of Guadco Municipal Utility District NO.2. The information in these schedules
has been subjected to the auditing procedures applied in the audit of the general
purpose financial statements and, in my opinion, is fairly stated in all material
respects in relation to the general purpose financial statements taken as a whole
for the year ending March 31, 1995. The supplemental information contained for
the fiscal years prior to April 1, 1994 were audited by other auditors whose
reports at various dates expressed an unqualified opinion on those statements.
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June 6, 1995
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
COMBINED BALANCE SHEET - ALL GOVERNMENTAL FUND TYPES
AND ACCOUNT GROUPS
MARCH 31, 1995
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ASSETS
ASSETS
Cash
Temporary Cash Investments,
at Cost
Receivables
Taxes
Accounts
Other
Accrued Interest
Prepaid Insurance
Due from Other Funds - Note 4
Restricted Assets
Cash and Temporary Cash
Investments, at Cost
Property, Plant, and Equipment,
Amount Available in Debt Service
Fund
Amount to be Provided for
Retirement of General Long-
Term Debt
TOTAL ASSETS
LIABILITIES AND FUND EOUITY
LIABILITIES
Accounts Payable
Regulatory Assessment Payable
Advances from Developer - Note 9
Due to GUADCO #1
Payable from Restricted Assets -
Deposits
Due to Other Funds
Deferred Revenues
General Obligations Bonds Payable - Note 5
Total Liabilities
FUND EOUITY
Investment in General Fixed Assets
Fund Balances (Deficit)
Reserved
Unreserved
Undesignated
Total Fund Equity (Deficit)
TOTAL LIABILITIES AND FUND EQUITY
GOVERNMENTAL FUND TYPES
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GENERAL
16,034
1,306
97
31
451
1,137
6,085
25.141
3,108
76
145,000
2,848
5,295
156,327
(131. 186)
(131. 186)
25 . 141
DEBT
SERVICE
15,854
122,047
1,014
608
139.523
1,137
1,014
2,151
137,372
137.372
139.523
CAPITAL
PROJECTS
5,563
213,690
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1,063
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220,316
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220,316
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220,316
220,316
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The accompanying notes are an integral part of these financial statements.
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I ACCOUNT GROUPS
GENERAL GENERAL TOTALS
I FIXED LONG-TERM I MEMORANDUM ONLY)
ASSETS DEBT 1995 1994
37,451 56,404
I 341,822 333,125
1,014 2,953
1,306 1,499
I 97
1,702 1,008
451
1,137 2,182
I 5,826
910,718 910,718 910,568
I 138,268 138,268 161,314
I 766,732 766.732 793.686
910.718 905.000 2,200.698 2.268.565
I 5,257
3,108
76
I 145,000 145,000
2,848
5,295 5,335
I 1,137 2,182
1,014 2,953
905.000 905.000 955.000
I 905,000 1,063,478 1,115,727
910,718 910,718 910,568
I 357,688 372,496
1131.186) 1130.226)
910.718 1.137.220 1.152.838
I 910.718 905.000 2.200,698 2.268.565
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED MARCH 31, 1995
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REVENUES
Property Taxes
Water Service
Sewer Service
Penalty and Interest
Tap Connection Fees
Interest on Time
Deposits
Total Revenues
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EXPENDITURES
Debt Service:
Principal Retirement
Interest and Fiscal
Charges
Purchased Water and
Sewer Services
Professional Fees
Director Fees
Contracted Services
Utilities
Materials and Supplies
Repairs and Maintenance
Tax Collection Services
Other Expenditures
Capital Expenditures
Total Expenditures
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Excess of Revenues
Over (Under)
Expenditures
GOVERNMENTAL FUND TYPES
DEBT CAPITAL
GENERAL SERVICE PROJECTS
10,596
50,365
21,935
200
2,400
456
85,952
37,814
7,747
3,100
18,170
1,193
13,601
5,137
150
86,912
960)
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FUND BALANCES (DEFICIT) AT
BEGINNING OF YEAR (130,226)
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FUND BALANCES
(DEFICIT) AT
END OF YEAR
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(131, 186)
133,694
6 ,118
139,812
9,134
9,134
TOTALS
(MEMORANDUM
1995
144,290
50,365
21,935
200
2,400
15,708
234,898
50,000
106,335
37,814
7,747
3,100
18,170
1,193
13,601
7,055
5,503
150
250,668
(15,770)
242 , 272
226,502
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The accompanying notes are an integral part of these financial statements.
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50,000
106,335
7,055
366
163,756
( 23,944)
9,134
161,316
211, 182
137 ,372
220,316
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ONLY)
1994
144,878
49,316
21,729
175
1,200
13 , 179
230,477
45,000
107,358
37,473
7,653
2,800
16,833
1,245
827
7,739
6,989
4,577
890
239,384
8,907)
251, 179
242,272
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND
YEAR ENDED MARCH 31, 1995
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GENERAL FUND
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REVENUES
Property Taxes
Water Service
Sewer Service
Penalty and Interest
Tap Connection Fees
Interest on Time Deposits
Total Revenues
11,100
53,251
21,745
178
12,010
396
98,680
10,596
50,365
21,935
200
2,400
456
85,952
VARIANeE-
FAVORABLE
(UNFAVORABLE)
504)
2,886)
190
22
9,610)
60
12,728)
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BUDGET
ACTUAL
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EXPENDITURES
Purchased Water
Water Maintenance and Repair
Water Pump Repair
Electric Utilities
Sewer Treatment
Sewer Maintenance and Repair
Sewer Inspection
Sewer Permit
Connection Fees
Director Fees
Legal Fees
Audit Fees
Election Expense
Data Processing
Management Fees
Legal Notices
Telephone
Insurance and Bonds
Printing and Office Supplies
Postage
Miscellaneous
Capital Expenditures
Major Repairs
Total Expenditures
26,878
7,735
360
1,355
16,780
1,264
360
20,611
6,225
1,022
1,193
16,726
3,695
6,267
1,510
662)
162
54
2,431)
360
377)
75
100)
9,753
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675
377
100
3,100
2,247
5,500
1,234
2,362
15,807
109
219
1,613
1,142
814
8
150
2,658
86 , 912
766
142)
1,182)
49)
81
1,027
542)
26
8)
525
2,658)
12 ,455
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175
3,000
12,000
5,500
2,000
2,220
14,625
60
300
2,640
600
840
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99,367
Excess of Revenues Over
(Under) Expenditures
687)
960)
273
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FUND BALANCE (DEFICIT) AT
BEGINNING OF YEAR
(130,226)
(130,226)
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FUND BALANCE (DEFICIT)
AT END OF YEAR
(130 , 913)
(131 , 186)
273
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The accompanying notes are an integral part of these financial statements.
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
II NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Renortina Entitv
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All significant activities and groups on which the District exercises oversight
responsibility have been included in the general purpose financial statements, for the
fiscal year ended. The following criteria regarding manifestation of oversight were
considered by the District in its evaluation of District organizations and activities:
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Financial Interdenendency - The District is responsible for it debts and entitled to
surpluses. No separate agency receives a financial benefit nor imposes a financial
burden on the District.
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Election of the GoverninG Authority - The locally elected Board of Directors is
exclusively responsible for all decisions and accountable for the decisions it makes.
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Desianation of Manaaement - The Board of Directors hires the management company. The
activities under the purview of management are within the scope of the reporting entity
and management is accountable to the Board of Directors for the activities being
managed.
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Ability to SiGnificantlv Influence Onerations - The Board of Directors has the
statutory authority under provision of state law, and specifically the Texas Water
Code, to significantly influence operations. This authority includes, but is not
limited to, adoption of the budget, control over assets, including facilities and
properties, short-term borrowings, signing contracts, and developing programs to be
provided by the District.
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Accountabilitv of Fiscal Matters - The responsibility and accountability over all funds
is vested in the District's management.
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Purchases and sales of water are provided through an interconnect shared by Guadco
Municipal Utility District No. 2 and another district, Guadco Municipal Utility
District NO.1. Both districts are managed by Cortes Contracting, Inc. and
administrative costs are allocated to each district. There is no oversight
relationship among any of the previously described entities, as each is controlled and
directed by its own independently elected governing body.
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B_ DescriDtion of Funds
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The District has established several funds, in conformance with generally accepted
accounting principles, for the purpose of accounting for transactions in compliance
with legal requirements. Funds and account groups in use by the District in accounting
for its financial activities are as follows:
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Governmental Funds
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General Fund - To account for all of the general water and sewer revenue of the
District and other revenues not specifically levied or collected for other District
funds, and for expenditures related to the maintenance of operations.
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
II NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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B. DescriDtion of Funds (Continued)
Governmental Funds
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Debt Service Funds - To account for the source and disposition of funds for
paying interest and principal on general long-term debt and fiscal agents' expenses.
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Canital Prolect Funds - To account for the acquisition of capital facilities being
financed from bond proceeds.
Account Grauns
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General Fixed Assets Accounts - To account for property, plant, and equipment of the
District.
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General Lonq-Term Debt Accounts - To account for the unmatured principal of
outstanding bonds.
C. Basis of Accountinq
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The District maintains its accounting records on the modified accrual basis. The
modified accrual basis recognized revenues that are suspectable to accrual when
measurable and available, and recognizes expenditures when incurred including expenses
that normally qualify as prepaid expenses. lIMeasurablel' means the amount of the
transaction can be determined, and "availablell means collectible within the current
period or soon enough thereafter to be used to pay liabilities of the current period.
Property taxes remaining uncollected at year end are reported as deferred revenues,
since they are not considered to be available.
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D. Cash
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Cash includes amounts in demand deposits, and interest-bearing deposits held by the
District. Cash in excess of current requirements is invested in various interest-
bearing instruments and is disclosed as part of investments, primarily in U. s.
obligations. These deposits and U. S. obligations were authorized by legal provisions.
E. Investments
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All investments during the fiscal year consisted of short-term U.S. Treasury Bills held
in the District's name and carried at cost. (See Page 16.)
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F. Receivables and Revenue
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All receivables are reported at gross values. There is no estimate for uncollectible
amounts in the customer water and sewer accounts as the deposits have proven to be
adequate to cover liabilities except in non~material amounts. Revenues are reported
based on the utilities used monthly.
G. Interest Receivable
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Interest on investments is recorded as revenue in the year the interest is earned and
is available to pay liabilities of the current period.
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
NOTES TO FINANCIAL STATEMENTS
MAReH 31, 1995
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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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H~ Pronertv, Plant, and Eauioment
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Property, plant, and equipment, including infrastructure assets, are recorded at cost
when acquired. General fixed assets are recorded as expenditures in the general fund
and capital projects fund at the time of purchase and are capitalized in the General
Fixed Asset Account Group. No depreciation is provided for on the general fixed assets
of the District.
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Costs related to repairs and maintenance are recorded as expenditures. Significant
renovations and improvements are capitalized when incurred. Interest costs are not
capitalized on projects financed by government grants, third-party donations! or on
assets that will be reported in the General Fixed Assets Account Group.
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I. Emolovee Salaries. Taxes. and Pension Plans
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The District has engaged a management firm to oversee the monthly operations in a
manner dictated by the Board of Directors. Thus, the District has no employees and is
not required to pay salaries, payroll taxes, or amounts to pension plans.
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J. Budqets
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Budgeted amounts are as adopted and amended by
budget is prepared on a modified accrual basis.
end of each fiscal year.
the District's Board of DinKtors. ~
All budget appropriations lapse at the
K. Comoarative Data
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Comparative totals for the prior year have been presented in the a c com pan y i n 9
financial statements in order to provide an understanding of changes in the District's
financial position and operations. However, comparative data by fund type has not been
presented in each of the statements since their inclusion would make the statements
unduly complex and difficult to read.
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L. Total Columns on Combined Statements
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Total columns on the combined statements are captioned Memorandum Only to indicate that
they are presented only to facilitate financial analysis. Data in these columns does
not present financial position, results of operations, or changes in financial position
in conformity with generally accepted accounting principles. Neither is such data
comparable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
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NOTE 2: STEWARDSHIP. COMPLIANCE. AND ACCOUNTABILITY
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A. COffioliance with Bond Covenants ~ The annual debt service requirements at March 31,
1995, of all bonds is $152,166, and the balance of the interest and sinking fund at
March 31, 1995, is $137,901. The District met or exceeded the funding requirements of
all bond issues on a timely basis. Expenditures and resources of the interest and
sinking fund were all of an authorized nature.
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
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NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED)
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B. Deoosits with Financial Institutions - All investments, demand deposits, and savings
of the District were sufficiently covered through either FDIC insurance amounts I
collateralized deposits in the District's name, held by other banks, or by nature of
the investment (purchase of U.S. Treasury Bills). Throughout the fiscal year, the
District's only investments were in the form of u.s. Treasury Notes and Bills~
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NOTE 3:
CREATION OF DISTRICT
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Guadco Municipal Utility District No. 2 was created by an order of the Texas Water
Rights Commission on October 28, 1975, and confirmed by the electorate of Guadco
Municipal Utility District NO.2 at a confirmation election held on April 4, 1981. The
District is operating pursuant to the provisions of Chapter 54, Texas Water Code, as
amended. The Board of Directors, consisting of five elected property owners, held its
first meeting on April 2, 1979, and the first bonds were sold on February 1, 1984.
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NOTE 4:
INTERFUND RECEIVABLES AND PAYABLES
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The following is a summary of amounts due from and due to other funds at year end:
DUE FROM
DUE TO
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General Fund
Debt Service Fund
Debt Service Fund
General Fund
1.137
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TOTAL ALL FUNDS
1.137
1.137
1.137
NOTE 5:
GENERAL LONG-TERM DEBT
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The following is a summary of changes in general long-term debt:
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BONDS
PAYABLE AT
APRIL 1, 1994
ADD
BONDS
ISSUED
LESS
BONDS
RETIRED
BONDS
PAYABLE AT
MARCH 31, 1995
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Water Works and Sewer
System Combination
Unlimited Tax and
Revenue Bonds Series
1984
955,000
50,000
905,000
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At March 31, 1995, the District's long-term debt consisted of:
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RANGE OF GENERAL
INTEREST LONG-TERM CURRENT LONG-TERM
MATURITY RATES DEBT MATURITIES MATURITIES
Water Works and Sewer
System Combination
Unlimited Tax and Serially
Revenue Bonds through 9.00%;
Series 1984 2005 10.75%- 905,000 55,000 850,000
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
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NOTE 5:
GENERAL LONG-TERM DEBT (CONTINUED)
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A schedule of bond maturities for the next five (5) years is as follows:
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YEAR ENDING MARCH 31.
TAX AND
REVENUE
BONDS
SERIES 1984
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1996
1997
1998
1999
2000
Thereafter
151,577
150,858
149,558
152,700
149,750
767.219
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TOTAL
1.521.662
905,000
616.662
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Principal
Interest
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TOTAL
1. 521. 662
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Tax and revenue bonds authorized and unissued as of March 31, 1995 f amounted to
$9,025.000.
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The bonds are payable from the proceeds of an ad valorem tax levied upon all 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 the pledge of the net revenues to be
received from the operation of the District's waterworks and sanitary sewer system~
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Outstanding bonds which mature in the years 1999 through 2005, are callable for
redemption on September 1, 1998, or any interest payment due thereafter at the option
of the District. The bonds may be called in whole or in part for the purpose of
retirement or refunding, or bothj at par in addition to unpaid accrued interest.
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-9-
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
NOTES TO FINANCIAL STATEMENTS
MAReH 31, 1995
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NOTE 6:
WATER AND SEWER SERVICE RATES
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The Guadco Municipal Utility District No. 2 has established the following water and
sewer service rates for residential or multi-family customers.
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FOR FISCAL
YEAR 1994-1995
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Water Service Only
First 3,000 Gallons of Water Used -
Minimum Bill
Each 1,000 Gallons of Water Used from 3,001 to 6,000
Increasing the Base of $1.37 by
$.24 for Each 3,000 Gallons Thereafter
18.00
1.37
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Sewer Service Only
First 5,000 Gallons of Water Used -
Minimum Bill
Each 1,000 Gallons of Water Used Thereafter
13.85
.55
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Deposits
Refundable Deposit - Owner
Refundable Deposit - Renter
40.00
75.00
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Tap Fees
Standard Home
1,315.00
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There were 128 metered water and sewer customers at March 31, 1995.
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The rates above have not been sufficient to fund operating costs. During 1987, a
maintenance tax of $0.06 per $100 valuation was levied to help defray part of the cost
of operations. This levy was $.088 per $100 in the current year and provided the
District approximately $10,596 in spendable general fund revenues.
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NOTE 7:
CI~GES IN GENERAL FIXED ASSETS
A summary of changes in general fixed assets follows:
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TOTAL
BALANCE
APRIL 1,
1994
412,152
121,464
129,207
80,824
166,921
910.568
NET
ADDITIONS
(DELETIONS)
150
150
BALANCE
MARCH 31,
1995
412,302
121,464
129,207
80,824
166.921
910.718
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Water System
Sewage System
Drainage System
Engineering Fees
Organizational Costs (See Page 21)
NOTE 8:
PROPERTY TAXES
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Property taxes attach as an enforceable lien on property as of January 1, are due
October 1 and become delinquent on February 1. Property taxes for the District are not
limited as to rate or amount. The District's current tax rate is $1.193 per $100 of
assessed valuation and assessed valuation is approximately 100* of actual values. Of
the $1.193 per $100 of assess valuation, $1.105 is designated for debt service and
$.088 is designated for maintenance.
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-10-
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
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NOTE 9:
ADVANCES FROM DEVELOPER
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The District has entered into several reimbursement agreements for advances from a
developer to use for payment of general administrative, operations, and maintenance
expenditures. It also entered into a construction agreement for advances for
construction. These advances, plus interest, are to be repaid from the proceeds of a
subsequent bond issue pursuant to the approval by the Texas Water Commission. An
agreement was entered into July of 1994 which could allow cancellation of $100,000 plus
all associated accrued interest upon issuance of a subsequent bond issue by the
District.
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NOTE 10:
FUND EOUITY RESERVES
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The District records one (1) general type of reserve. The one (1) type is used to
indicate that a portion of the fund equity is legally restricted for a specific future
use.
Following is a list of all reserves used by the District and a description of each:
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Reserved for Debt Service - An account used to indicate that certain assets
are legally restricted by the bond indenture to be used for specific purposes.
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Reserved for Canital PrOl8cts - An account used to indicate that certain
assets are legally restricted to be used for specific purposes.
NOTE 11: EXCESS OF EXPENDITURES OVER REVENUES
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During the current fiscal year the general fund and the debt service fund incurred
expenditures in excess of revenues earned. This excess is expected to continue for the
next few years until either property values increase, a tax rate increase is approved,
or an increase in water and sewer rates are approved.
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NOTE 12:
COMMITMENTS
lP
. ~}r,j
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The District entered into an agreement during 1985, to construct a 1,145,850~gallon
water storage facility. The water tank was completed during 1986 and was approved by
the City of Schertz and the Texas Water Commission in May, 1986. The DistrictJs share
of the construction and engineering costs is approximately $130,700 plus interest.
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During 1985/ the District entered into an agreement authorizing the Guadalupe-Blanco
River Authority to apply on the behalf of the District for a wastewater discharge
permit from the Texas Water Commission. The permit, which was granted in 1987,
authorized the District, by itself or in combination with others, to discharge 700,000
gallons per day of treated effluent. The District's estimated cost of the permit is
$74,300 plus interest.
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During 1986, the District entered into an agreement with a developer to construct the
underground water lines, sewer lines, and related facilities to serve a 240-acre
development project, of which 87~ of the project lies within the service area of the
District. The preliminary design phase work was completed in 1987. The District's
total estimated cost of the facilities that lie within its service area is
approximately $120,100.
/--~----..
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All three of the preceding paragraphs are subject tot he terms and conditions set forth
in the separate contracts, which describe the conditions for reimbursements. The
conditions of payment, in summary, include the approval by the Water Commission of any
new bonds that might be sold for the above stated purposes, the issuance and saTe~()f
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j'l [) (i ~O
r l.-i'~ , 7'JU
~J,) ,
~/
/
~;\
~11~
" ",i,',
'v:.y.j',c'
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
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NOTE 12:
COMMITMENTS (CONTINUED)
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the bonds and most notably, the issuance of the bonds will not occur until such time
as the development of the 240 acres will support the retirement of principal and
interest on the new bonds. Growth in the District in recent years does not indicate
that this requirement will be achieved in the near future.
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The developer in claiming certain additional costs associated with the above mentioned
proj ects, plus other costs claimed to be reimbursable from work allocated to this
District. All of these costs are subject to review and audit at some future date prior
to payment. Therefore,. costs wil~ be considered by the Board after reviewing
documentation presented by the developer ( should a future bond issue be approved to pay
these claimed costs.
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The District purchases its water supply from the City of Schertz under a contract date
May 25, 1975. The contract is for a term of 30 years, at which time it is renewable
for a maximum of 15 years.
NOTE 13:
FUND DEFICIT
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The District is attempting to recover the general fund deficit through revenues
generated by the increase in metered water and sewer customers and income from the
maintenance tax. To the extent that the increase in customers is not sufficient, water
and sewer rate increases will be considered to help defray the cost of operations.
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-12-
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SUPPLEMENTAL INFORMATION
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
SUPPLEMENTAL SCHEDULES INCLUDED WITHIN THIS REPORT
YEAR ENDED MARCH 31, 1995
YES NO
-z- C. AUDITOR'S REPORT ON SUPPLEMENTAL SCHEDULES
-z- D. NOTES REQUIRED BY THE WATER DISTRICT
ACCOUNTING MANUAL - ALL NOTES REQUIRED
BY THE WATER DISTRICT ACCOUNTING MANUAL
HAVE BEEN FULLY DISCLOSED IN THE GENERAL
PURPOSE FINANCIAL STATEMENTS
-z- E. SCHEDULE OF SERVICES AND RATES
-z- F. SCHEDULE OF GENERAL FUND EXPENDITURES
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-z-
G. (1) SCHEDULE OF TEMPORARY INVESTMENTS
-z-
G. (2) ANALYSIS OF CHANGES IN CASH AND TEMPORARY
INVESTMENTS - ALL FUNDS
-z-
H. ANALYSIS OF TAXES RECEIVABLE
-z-
I. ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS
-z-
I. (1) ANALYSIS OF ORGANIZATIONAL COSTS
-z-
J. GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS
BY YEARS
-z-
K. ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT
-z-
L. COMPARATIVE STATEMENT OF REVENUES AND
EXPENDITURES, GENERAL FUND, AND DEBT SERVICE
FUND - FIVE YEARS ENDED MARCH 31, 1995
-z-
M. INSURANCE COVERAGE
-z-
N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL,
AND CONSULTANTS
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-z- O.
AUDITOR'S QUESTIONNAIRE
CERTIFICATE OF THE BOARD OF DIRECTORS
-z- P.
-z- Q.
SCHEDULE OF NOTES PAYABLE - THERE ARE NO
NOTES PAYABLE OUTSTANDING AT MARCH 31, 1995
OR DURING THE CURRENT YEAR AUDITED
PAGE
NUMBER
1
5
13
15
16
17
18
19
20
21
22
23
25
27
29
33
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
E. SCHEDULE OF SERVICES AND RATES
YEAR ENDED MARCH 31, 1995
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1. Services Provided by the District:
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~ Retail Water Wholesale Water
~ Retail Wastewater Wholesale Wastewater
Parks/Recreation Fire Protection
Solid Waste/Garbage _____ Flood Control
Participates in joint venture, regional system,
(other than emergency interconnect)
Other (specify):
Drainage
Irrigation
Security
Roads
and/or wastewater
service
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2. Retail Rates Based on 5/8" Meter
~ Retail Rates Not Applicable
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Most prevalent type of meter (if not a 5/8"): N/A
FLAT RATE PER 1,000
MINIMUM MINIMUM RATE GALLONS OVER
CHARGE USAGE Jill MINIMUM USAGE LEVELS
WATER $18.00 3,000 N $1. 37 3,001 to 6,000
WASTEWATER $13.85 5,000 N $ .55 5,001 to Thereafter
SURCHARGE: $ -0- 0
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District employs winter averaging for wastewater usage? Yes
No~
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Total water and wastewater charges per 10,000 gallons usage
(including surcharges)
48.68
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3. Standby Fees: Does the District assess standby fees? Yes
If yes, specify amount and basis of the assessment.
No
.2L-
$_._ Per Lot
$_._ Per Acre
Other or Non-Uniform Rates
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(check one)
Per Year
Per Quarter
Per Month
Percent allocated to: General Fund
% Debt Service Fund
%"
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Have the standby fees been approved by the Texas Water Commission? Yes
No
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Have standby fees been levied in accordance with Water Code Section 50.056, thereby
constituting a lien on property? Yes No
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The accompanying notes are an integral part of these financial statements.
-13-
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
E. SCHEDULE OF SERVICES AND RATES (CONTINUED)
YEAR ENDED MARCH 31, 1995
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4. Total water consumption (rounded to the nearest 1,000) during the fiscal year:
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Gallons pumped into system:
Gallons billed to customers:
16,627,000
14,829,000
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5. Number of retail water and/or wastewater* connections within the District as of fiscal
year end~
CONNECTIONS
ACTIVE CONNECTIONS
INACTIVE CONNECTIONS"
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Single Family
Multi-Family
Commercial
Other - Recreational
Centers, Government,
and VFD
128
17
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--1.
TOTALS
146
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* Number of connections relates to water service, if provided.
wastewater connections should be provided.
Otherwise, number of
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** IIInactivell means that water and wastewater connections were made, but service is not
being provided.
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6. Anticipated sources of funds to be used for debt service payments in the District's
following fiscal year:
a. Debt Service Tax Receipts
Amount
144,290
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b. Surplus Construction Funds
c. Water and/or Wastewater Revenue
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d. Standby Fees
8. Beginning Debt Service Fund Balances
1,168
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f. Interest Revenues
6,119
g. Other (Describe)
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TOTAL ANTICIPATED FUNDS TO BE USED
151,577
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The accompanying notes are an integral part of these financial statements.
-14-
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
F. SCHEDULE OF GENERAL FUND EXPENDITURES
YEAR ENDED MARCH 31, 1995
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CURRENT
Personnel (Including Benefits)
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PROFESSIONAL FEES
Auditing
Legal
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PURCHASED SERVICES FOR RESALE
Bulk Water and Sewer Service Purchases
Tap Connection Expenses
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CONTRACTED SERVICES
Bookkeeping
General Manager
Appraisal District
Tax Collector
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UTILITIES
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REPAIRS AND MAINTENANCE
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ADMINISTRATIVE EXPENDITURES
Directorsr Fees
Office Supplies
Insurance
Other Administrative Expense (Data Processing)
Election Expenses
Legal Notices
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CAPITAL OUTLAY
Acquisition of Fixed Assets
SOLID WASTE DISPOSAL (Sewer Only Not Garbage)
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FIRE FIGHTING
PARKS AND RECREATION
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OTHER EXPENDITURES
TOTAL EXPENDITURES
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Number of persons employed by the District:
(Do not include independent contractors or consultants)
5,500
2,247
48,655
100
15,807
1,412
2,658
3,100
1,956
1,614
2,363
1,234
109
86,912
All Services in District Provided by Contractors or Management Company.
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-15-
The accompanying notes are an integral part of these financial statements.
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150
8
Full-ti.me
Part-time
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GUADCO
G. (1)
MUNICIPAL UTILITY DISTRICT NO. 2
SCHEDULE OF TEMPORARY INVESTMENTS
YEAR ENDED MARCH 31, 1995
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IDENTIFIeATION INTEREST MATURITY
NUMBER RATE DATE
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FUNDS
GENERAL FUNDS
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U.S. Treasury Bill #912794T20
6.112
8-24-95
DEBT SERVICE FUNDS
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U.S. Treasury Bill #912794T20
6.112
8-24-95
CAPITAL PROJECTS FUND
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U.S. Treasury Bill #912794T20
6.112
8-24-95
TOTAL - ALL FUNDS
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BALANCES
AT END OF YEAR
COST MARKET
6,085
122,047
213.690
341. 822
6,119
122,720
214,867
343.706
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-16-
The accompanying notes are an integral part of these financial statements.
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ACCRUED
INTEREST AT
END OF YEAR
31
608
1.063
1.702
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
G. (2) ANALYSIS OF CHANGES IN CASH AND TEMPORARY INVESTMENTS - ALL FUNDS
YEAR ENDED MARCH 31, 1995
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SOURCES OF CASH AND TEMPORARY
INVESTMENTS
Cash from Revenues
Refundable Deposits
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Total Cash and Temporary
Investments Provided
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APPLICATIONS OF CASH AND
TEMPORARY INVESTMENTS
Cash Disbursements for
Current Expenditures
Debt Service
Total Cash and Temporary
Investments Applied
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Increase (Decrease) In
Cash and Temporary
Investments
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CASH AND TEMPORARY INVESTMENT
BALANCES AT BEGINNING OF YEAR
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TOTAL CASH AND TEMPORARY
INVESTMENT BALANCES
AT END OF YEAR
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GENERAL
FUND
DEBT
SERVICE
FUND
CAPITAL
PROJECTS
FUND
TOTALS
(MEMORANDUM ONLY)
1995 1994
84,974 148,241
( 40)
8,683 241,898
( 40)
84,934 148,241
84,483
84,483
451
21,668
22 ,119
8,683 241,858
21,730
151 , 728
106,213
151,728
173,458
257,941
(25,217) 8,683 (16,083)
163,118 210,570 395,356
137,901 219,253 379,273
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The accompanying notes are an integral part of these financial statements.
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-17-
228,443
85
228,528
84,821
151,318
236.139
(7,611)
402,967
395,356
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
H. ANALYSIS OF TAXES RECEIVABLE
YEAR ENDED MARCH 31, 1995
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MAINTENANCE
TAXES
DEBT
SERVICE
TAXES
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Taxes Receivable at April 1, 1994
1994 Year Original Roll
Adjustments to Roll
Total to be Accounted for
208
10,495
2,745
131,339
10.000
134.084
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10.703
Tax Collections
Current
Deliquent
Total Collections
10,439
189
10.628
TAXES RECEIVABLE AT MARCH 31, 1995
75
130,639
2,506
133.145
939
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1995
1994
1993
1992
1991
PROPERTY VALUATIONS
Land
Improvements
Personal Property
2,468,180
9,257,330
163.364
2,489,330
7,932,140
169.398
2,495,230
7,696,250
172.175
2,485,250
7,588,230
30,095
2,837,000
7,739,580
111.092
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TOTAL PROPERTY
VALUATIONS
11.888.874
10,590.868
10.363.655
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TAX RATES PER S100 VALUATION
Debt Service Tax Rates
Maintenance Tax Rates
1995
10.103.575
1994
10.687.672
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1.105
.088
1.199
.091
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TOTAL TAX RATE PER $100
VALUATION
1.193
1.290
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TAX ROLLS
Adjustment to Roll
TOTALS
141,834
136,622
10.000
146.622
ALL TAXES
141.834
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FOR THE YEAR ENDED MARCH 31. 1995
Percent of Current Taxes Collected
to Current Taxes Levied
99.47%"
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Percent of Current and Deliquent
Taxes Collected to Current Taxes
Levied and Deliquent Taxes
Outstanding at the Beginning of the
Year
99.30%"
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The accompanying notes are an integral part of these financial statements.
-18-
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
I. ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS
YEAR ENDED MARCH 31, 1995
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Water System
Sewage System
Drainage System
Engineering Fees
Capitalized Construction
Period Costs
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TOTALS
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ADDITIONS PROVIDED
BY OPERATIONS
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BALANCES
APRIL 1, 1994
412,152
121,464
129,207
80,824
166,921
910,568
910,568
ADDITIONS
150
150
150
DELETIONS
BALANCES
MARCH 31, 1995
412,302
121,464
129,207
80,824
166,921
910,718
910,718
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The accompanying notes are an integral part of these financial statements.
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-19-
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GUADCO
I. (1)
MUNICIPAL UTILITY DISTRICT NO. 2
ANALYSIS OF ORGANIZATIONAL COSTS
YEAR ENDED MARCH 31, 1995
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ORGANIZATIONAL COSTS - CREATION PERIOD
Filing Fees, Licenses, Legal Notices
and Permits
Engineering Studies
Other Costs
Total Organizational Costs -
Creation Period
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ORGANIZATIONAL COSTS - CONSTRUCTION
PERIOD
Election Costs
Legal Fees
Director Fees
Operating Costs
Fiscal Agent Fee
Bond Issue Expense
Total Organization Costs -
Construction Period
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TOTAL ORGANIZATIONAL COSTS
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AMOUNTS PROVIDED
For District Organizational Costs -
Creation Period
By Capital Projects Fund
Por District Organizational Costs -
Construction Period
By Capital Projects Fund
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TOTAL PROVIDED
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BALANCE
AT
APRIL 1,
1994
1,051
21,357
115
22.523
2,470
59,408
900
3,980
3,943
73.697
144.398
166.921
22,523
144.398
166,921
ADDITIONS
(DECREASES)
BALANCE
AT
MARCH 31,
1995
1,051
21,357
115
22.523
2,470
59,408
900
3,980
3,943
73.697
144.398
166.921
22,523
144.398
166.921
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The accompanying notes are an integral part of these financial statements.
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-20-
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J.
GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS
YEAR ENDED MARCH 31, 1995
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DUE DURING
FISCAL YEARS
ENDING
MARCH 31.
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
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TOTALS
SERIES 1984
PRINCIPAL INTEREST
DUE DUE
03-01 03-01. 09-01 TOTAL
55,000 96,577 151,577
60,000 90,858 150,858
65,000 84,558 149,558
75,000 77,700 152,700
80,000 69,750 149,750
90,000 61,230 151,230
100,000 51,600 151,600
115,000 40.850 155,850
125,000 28,488 153,488
140.000 15.051 155.051
905,000 616,662 1.521,662
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Cash and Temporary Investment
Balances at March 31, 1995
Debt Service Fund
138.509
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The accompanying notes are an integral part of these financial statements.
-21-
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
K. ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT
YEAR ENDED MARCH 31, 1995
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BOND ISSUE -
SERIES 1984
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Interest Rate
9.50% to 10.75%
Dates Interest Payable
March 1; September 1
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Maturity Dates
Bonds Outstanding at Beginning
of Current Period
March 1, 1988 to March 1, 2005
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955,000
Bonds Sold During Current Period
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Retirements - Principal
50,000
Bonds Outstanding at End of
Current Period
905.000
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Retirements - Interest
101. 728
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PAYING AGENT'S NAME AND ADDRESS
Series 1984
Texas Commerce Bank} Post Office Box 2558/
Houston, TX 77252
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BOND AUTHORITY
TAX BONDS
OTHER BONDS
REFUNDING BONDS
Amount Authorized by Voters
10,200,000
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Amount Issued
1,1751000
Remaining to be Issued
9,025,000
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The accompanying notes are an integral part of these financial statements.
-22 -
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L.
GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES
GENERAL FUND AND DEBT SERVICE FUND
FIVE YEARS ENDED MARCH 31, 1995
GENERAL FUND REVENUES
Property Taxes
Water Services
Sewer Services
Penalty and Interest
Tap Connections Fees
Interest on Time Deposits
Contribution from Developer
Total Revenues
EXPENDITURES
Purchased Water and Sewer
Services
Professional and Director
Fees
Contracted Services
Utilities
Materials and Supplies
Repairs and Maintenance
Other Expenditures
Capital Outlay
Total Expenditures
EXCESS REVENUES
(EXPENDITURES)
DEBT SERVICE FUND REVENUES
Property Taxes
Penalty and Interest
Interest on Time Deposits
Total Revenues
EXPENDITURES
Tax Collection Services
Debt Service, Interest,
and Fees
Other Expenditures
Total Expenditures
EXCESS REVENUES
(EXPENDITURES)
1995
10,596
50,365
21,935
200
2,400
456
85.952
37,814
10,847
18,170
1,193
13,601
5,137
150
86.912
960)
133,694
6.118
139.812
7,055
156,335
366
163.756
(23,944)
AMOUNTS
1994 1993
9,503
49,316
21,729
175
1,200
737
82,660
37,473
10,453
16,833
1,245
827
7,739
3,088
890
78,548
4.112
135,375
5,568
140.943
6,989
152,358
1. 489
160,836
(19,893)
8,731
42,322
21,298
81
448
2,035
74,915
32,445
8,963
15,330
1,291
606
12,426
6,572
77,633
{2.7181
128,751
7,497
136 , 248
6,758
154,342
1,874
162.974
(26,7261
1992
8,600
43,960
21,393
139
1,200
649
75.941
34,792
8,700
15,595
1,308
435
9,984
4,278
75.092
849
136,993
802
11. 065
148,860
7,475
151,033
457
158 , 965
(10,105)
The accompanying notes are an integral part of these financial statements.
-23-
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1991
9,078
40,879
20,897
196
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622
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71,672
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33,947
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9,884
15,223
1,760
585
9,590
4,341
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75,330
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(3.658)
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134,953
214
15,108
150,275
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7,575
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149,496
321
157 ,392
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(7 , 117)
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PERCENT OF FUND TOTAL REVENUES
I 1995 1994 1993 1992 1991
12.86%' 11.50%' 11.65%' 11.32 %' 12.67 %'
58.60 59.66 56.49 57.89 57.04
I 25.52 26.29 28.43 28.17 29.16
.23 .21 .11 .18 .27
2.79 1. 45 1.58
.89 .60 .86 .86
I 2.72
100.00%' 100.00 %' 100.00 %' 100.00 %' 100.00 %'
I 44.00%" 45.33 %' 43.31 %' 45.81 %' 47.36 %
12.62 12.65 11. 96 11.46 13.79
21.14 20.36 20.46 20.54 21.24
I 1.39 1.51 1.72 1. 72 2.46
1. 00 .81 .57 .82
15.82 9.36 16.59 13 .15 13.38
5.98 3.74 8.77 5.63 6.05
I .17 1.08
101.12% 95.03 %' 103.62 %' 98.88 %' 105.10 %
I (1.12) %' 4.97 % (3.62) % 1.12 % (5.10) %
95.62 % 96.05 % 94.50 % 92.03 % 89.80 %
I .54 .14
4.38 3.95 5.50 7.43 10.06
100.00 % 100.00 % 100.00 % 100.00 % 100.00 %
I 5.05 %' 4.96 % 4.96 % 5.02 % 5.04 %
111.82 108.10 113.28 101. 46 99.48
I .26 1. 05 1.38 .31 .22
117.13 % 114.11 %' 119.62 %' 106.79 % 104.74 %
I (17.13) %' (14.111% (19.62) %' (6.79) %' (4.74) %
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES
GENERAL FUND AND DEBT SERVICE FUND (CONTINUED)
FIVE YEARS ENDED MARCH 31, 1995
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Average Annual Debt Service
Requirements for Unpaid
Principal and Interest
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Excess Revenues from General
Fund and Debt Service Fund
Before Expenditures for
Debt Service
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Coverage (Excess Revenues as
Adjusted Divided by Annual
Debt Service Requirement)
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Number of Water and Sewer
Connections at End of Year
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Total Amount of Water Billed
To Customers (In Thousands
of Gallons)
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Total Amount of Water
Pumped Into System (In
Thousands of Gallons)
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Percentage of Water Billed
to Water Pumped
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1995
152,166
131,430
.86
128
14,829
16,627
89
1994
152,126
136,577
.90
127
17,705
19,309
91. 7
AMOUNTS
1993
152,059
124,898
.82
126
13,407
16,418
81. 7
1992
151,928
141,777
.93
123
14,495
17,932
80.8
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The accompanying notes are an integral part of these financial statements.
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-24-
1991
151,708
138,721
1. 04
123
15,565
21,211
73.4
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GUADCO MUNICIPAL UTILITY NO. 2
M. INSURANCE COVERAGE
YEAR ENDED MARCH 31, 1995
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TYPE OF COVERAGE
AMOUNT OF COVERAGE FROM TO
$10,000 Each 04-20-94 04-20-97
$50,000 Aggregate
$10,000 Each
$30,000 Aggregate 09-01-94 09-01-95
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Public Officials Faithful
Performance (5 Directors)
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Employee Dishonesty Bonds -
(3 Employees) Management
Company
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Liability:
Automotive -
Property Damage and
Bodily Injury
Comprehensive:
General
Personal Injury
Fire
Medical
$500,000 08-21-94 08-21-95
$500,000 08-21-94 08-21-95
$500,000 08-21-94 08-21-95
$ 50,000 08-21-94 08-21-95
$ 5,000 08 -21-94 08-21-95
$1,000,000 08-21-94 08-21-95
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Umbrella
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The accompanying notes are an integral part of these financial statements.
-25-
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TYPE OF COVERAGE
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Public Officials Faithful
Performance (5 Directors)
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Employee Dishonesty Bonds -
(3 Employees) Management
Company
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Liability:
Automotive -
Property Damage and
Bodily Injury
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Comprehensive:
General
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Personal Injury
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Fire
Medical
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Umbrella
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TYPE OF
INSURER
POLICY
CORPORATION
STOCK/MUTUAL
NAME
CLAUSE
CO-INSURANCE
Ohio Casualty
Insurance Company
Stock
No
Ohio Casualty
Insurance Company
Stock
No
Ohio Casualty
Insurance Company
Stock
NO
Ohio Casualty
Insurance Company Stock No
Ohio Casualty
Insurance Company Stock No
Ohio Casualty
Insurance Company Stock No
Ohio Casualty
Insurance Company Stock No
Ohio Casualty
Insurance Company Stock No
-25-
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OTHER INFORMATION
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HARRY A. WERlAND
Ce<tiftd <PuCCw c4aaoun/ant
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737 ISOM ROAD
SAN ANTONIO,TX 78216
(210) 308.0303
FAX: (210) 525.0340
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Board of Directors
Guadco Municipal Utility District No. 2
Guadalupe and Coma 1 Counties, Texas
IndeDendent Auditor's Reoort on Other Information
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I have audited the general purpose financial statements of Guadco Municipal Utility District
No. 2 as of and for the year ended March 31, 1995, and have issued my report theron dated
June 6, 1995. My audit was made in accordance with generally accepted auditing standards
and, accordingly t included such tests of the accounting records and such other audit
procedures as I considered necessary in the circumstances.
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In connection with my audit nothing came to my attention during the course of my examination
to indicate that the questions listed herein were not answered correctly, and in addition,
nothing came to my attention that indicated the District has departed from general or special
legislation under which the District was created or from laws and regulations excerpted and
included in the Water District Accountino Manual, as amended September 1, 1983, in Section
70-03-1 or from requirements of the Bond Resolutions. However, my examination was not
directed primarily toward obtaining such knowledge.
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The information contained in the schedule of Board Members, Key Administrative Personnel and
Consultants was provided by the District, and therefore, I express no opinion thereon.
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June 6, 1995
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)~W~
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GUADCO MUNICIPAL UTILITY DISTRICT NO.2
N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL, AND CONSULTANTS
YEAR ENDED MARCH 31, 1995
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Complete District Mailing Address: Post Office Box 18348
San Antonio, Texas 78218
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District Business Telephone Number: (210) 656-1310
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TERM OF FEES
OFFICE ELECTED AND EXPENSE RESIDENT
AND EXPIRES REIMBURSEMENTS TITLE AT OF
NAME AND ADDRESS OR DATE HIRED MARCH 31, 1995 YEAR END DISTRICT?
BOARD MEMBERS
George E. Griffiths
3913 Pecan Court 05-94 to 05-98 668.10 President Yes
Cibolo, TX 78108
George H. Gentry, Jr.
3752 Hunters Glen 05-92 to 05 - 96 700.00 Vice Yes
Cibolo, TX 78108 president
Bill F. Hackney
3605 Chestnut Court 05-94 to 05-98 500.00 Secretary Yes
Cibolo, TX 78108
Dick Reavis
3717 Scenic Drive 05-94 to 05-98 550.00 Treasurer Yes
Cibolo, TX 78108
Henry L. Ward
3732 Hunters Glen 08-94 to 05-96 400.00 Assistant Yes
Cibolo, TX 78108 Secretary
Past Board Members
James A. Knight, Jr.
3925 Pecan Court 05-92 to 08-94 250.00 president Yes
Cibolo, TX 78108
Jack Overstreet
4013 Oak Court 05-90 to 05-94 100.00 Vice Yes
CiboloJ TX 78108 President
George McCollough, Jr.
3745 Hunters Glen 05-90 to 05-94 100.00 Treasurer Yes
Cibolo, TX 78108
KEY ADMINISTRATIVE PERSONNEL
Louis A. Cortes
4827 Whirlwind 02-81 None General No
San Antonio, TX 78217 Manager
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(See Auditor's Report on Other Information)
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL, AND CONSULTANTS (CONTINUED)
YEAR ENDED MARCH 31, 1995
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NAME AND ADDRESS
TERM OF
OFFICE ELECTED
AND EXPIRES
OR DATE HIRED
CONSULTANTS
FEES
AND EXPENSE
REIMBURSEMENTS
MARCH 31. 1995
TITLE AT
YEAR END
RESIDENT
OF
DISTRICT?
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Glenn Opel
Vinson & Elkins
First City Centre
816 Congress Avenue
Austin, TX 78701-2496
04-84
623 . 12
Attorney
No
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Civil Engineering
Consultants
9901 Broadway
San Antonio, TX 78217
02-94
933.00
Project
Engineer
No
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John W. Green, CPA
Thompson, Williams,
Biediger, Kastor, &
Young, L.C.
800 NW Loop 410
Suite 300
San Antonio, TX 78216
02-93
5,500.00
Bookkeeper
No
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Cortes Contracting, Ine
4827 Whirlwind
San Antonio, TX 78217
02-81
26,225.25
Operator
No
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Bob Leared Interests
11111 Katy Freeway, #725
Houston, TX 77079
06-86
5,041.38
Tax
Assessor-
Collector
No
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Comal County
Appraisal District
PO Box 1222
New Braunfels, TX 78130
11-80
2,013.29
Central
Appraisal
District
No
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Ronald J. Freeman
301 Congress, Suite 1400
Austin, TX 78701
02 - 94
3,385.40
Attorney
No
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Harry Werland, CPA
737 180m Road
San Antonio, TX 78216
04-95
Auditor
No
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(See Auditor's Report on Other Information)
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-28-
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
O. AUDITOR'S QUESTIONNAIRE
YEAR ENDED MARCH 31, 1995
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GUADCO MUNICIPAL UTILITY DISTRICT NO.2
Name of Municipal Utility District
GUADALUPE AND COMAL
Counties
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1. On the following chart, provide the appropriate check marks for each listed accounting
record. Under the 11 USED? II block for each record, indicate either II NOli (it is not used) or
nYES" (it is used). Under the I1HOW KEPT?'l block indicate if records are maintained manually,
by hand, or if data are input to a computer. Under the "WHEN UPDATED?" block show how
often entries are made to each record. If entries are made less often than monthly, write
in the frequency under ltHOW OFTEN?lI. Indicate who provided the information for the table
below: District Manager, Cortes Contracting, Inc.
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USED? HOW KEPT?
BY BY
NO ~ HAND COMPUTER
Description of
Accounts X
Chart of Accounts X X
General Journal X X
Cash Receipts
Journal X X
Cash Disbursement
Journal X X
Check Register X X
General Ledger X X
Customer Subsidiary
Ledger X X
Fixed Assets
Ledger X X
Bank Reconciliation X X
Trial Balance X X
WHEN UPDATED?
HOW
DAILY WEEKLY MONTHLY OFTEN?
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x
As Needed
As Needed
Water Manual Used
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x
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x
X
X
Three Times Monthly
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Annually
X
X
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2. Does the District use double entry accounting?
Yes
3. What is the usual location of the accounting records?
4827 Whirlwind
San Antonio, Texas
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(All questions with responses marked by an asterisk (*) should be explained at the end of
this Questionnaire in Item 15.)
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4. Did you identify, during the course of your examination
of the financial statements of the water district, any
areas pertaining to the accounting matters in which action
should be taken by the Board of Directors of the Water
District?
No
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4. If Yes is checked for question 4} have these topics been
discussed in the management letter to the Water District's
Board of Directors?
N!A
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(See Auditor's Report on Other Information)
-29-
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GUADCO MUNICIPAL UTILITY DISTRICT NO.2
O. AUDITOR'S QUESTIONNAIRE (CONTINUED)
YEAR ENDED MARCH 31, 1995
5. Did you obtain representation from the Board
of Directors of the Water District that all
records of the Water District were made
available to you for your examination?
Yes
6. Did the Water District:
a. Use the capital projects fund, and debt service fund
only for purposes authorized by the Board of Directors
of the Water District and/or within the provisions of
applicable bond resolutions?
Yes
b. Properly escrow the required amount of cash as prescribed
by the Texas Water Commission or disburse the escrowed cash
according to the terms prescribed by the Texas Water
Commission?
Yes
c. Do business only with firms or corporations in which members
of the Board of Directors had not pecuniary interest?
Yes
d. Observe the conditions for obtaining grants, gifts, etc.,
or observe agreements with governmental agencies for the
purpose of securing funds or services?
Yes
8. Have a contract for Social Security coverage for its
employees with the Texas Employees Retirement System.
(See #15)
NO
f. Make remittances of Social Security taxes according to the
terms of the contract for Social Security coverage with the
Social Security Division of the Texas Employees Retirement
System? (See #15)
No
g. Deposit receipts to the proper funds kept by the approved
depository bank?
Yes
h. Draw checks only on funds approved by the Board of Directors
and signed by authorized personnel?
Yes
7. Note - A management letter is an audit scope requirement of
the Water District Accounting Manual.
a. The date of your most recent management letter was June 6,
1995.
b. Were your recommendations explained to and discussed with
administrative officials of the Water District?
Yes
c. IS there evidence indicating that your previous years'
recommendations have been or are being implemented?
Yes
(See Auditor's Report on Other Information)
-30-
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
O. AUDITOR'S QUESTIONNAIRE (CONTINUED)
YEAR ENDED MARCH 31, 1995
8. The Texas Water Code makes specific provisions relating to
security provided by depository banks. After consideration
of the applicable laws pertaining to the specific water
district, did the depository bank provide adequate security of
the correct type?
Please indicate for each depository:
Yes
a. The name of the depository bank
Victoria Bank & Trust
b. Amount of FDIC coverage (if member bank)
$100,000
c. Amount of bond or other security pledged
as of the end of the fiscal year
$100,000
d. Largest cash balance
$122,074
e. Date of largest cash balance
February 28, 1995
f. Amount of bond or security pledged at
the time of the largest cash balance
(excluding FDIC coverage)
$100,000
9. The Water District's taxes were collected by:
Bob Leared Interests. Inc., Houston, Texas
10. Was the tax assessor-collector bonded as required by law?
Yes
11. What was:
a. The tax assessor-collector bonded for?
25,000
b. The greatest amount of the District's taxes
in the tax assessor-collector's possession at
anyone time?
$ 17,477
c. The frequency of tax receipts deposits with
the bonded depository? (check one)
(1) Daily (or as Amounts Accumulate)
x
(2) Weekly
(3) Monthly
(See Auditor's Report on Other Information)
-31-
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
O. AUDITOR'S QUESTIONNAIRE (CONTINUED)
YEAR ENDED MARCH 31, 1995
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12. We (Check One):
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a. Actually examined the records of the tax
assessor-collector (work down after June 6, 1995)
b. Received written confirmation for tax data
from the tax assessor-collector.
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c. Accepted tax data furnished by the District's
administrative offices.
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13. As a result, were local tax revenues (including delinquent
taxes and interest and penalties on taxes) properly separated
for debt services?
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14. Was the Water District in compliance with applicable bond
resolutions, with the general or special legislation under
which the District was created and with the specific statutes
excerpted and included in the Legal Compliance Guidelines in
Section 70-03-1 of the Water District AccountinG Manual?
(See explanation below.)
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:5. Full and complete explanations and/or references to notes,
schedules (or comments in the Auditor's Report Letter) for
responses marked (*).
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Explanation for items 6e and 6f - The District has no employees.
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Explanation for Item 14 - The District's bond order states that the
funds required to pay the current payments, of principal, interest
and fiscal and agents fees should be delivered to the paying agent
banks five (5) days prior to the payment due date. The District
usually remits these monies the day before the payment date
by wire transfer, taking maximum advantage of the investment
income earned on these funds. The paying agent banks have not
objected to this procedure.
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(See Auditor's Report on Other Information)
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,32-
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x
Yes
No
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 2
GUADALUPE AND COMAL COUNTIES, TEXAS
P. CERTIFICATE OF THE BOARD OF DIRECTORS
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We, the undersigned, do hereby certify that the audit report of the above
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named Water District for the fiscal y~ar end~9/Mirc~ 31, 1995, was received
by the Board of Directors on the 14fI/day of~ lL/i~C~, 1995, and was
1/ .J
reviewed and ,/ approved disapp~ved at a/'"feting of the Board
/tt! 1 ;", /J -
of ict on the "l--PJY Of'----Y;L~! /995.
'_l.;- II .<Cc, i 11/ .," / /. .
I i,_ (j _,-"" t,";",_ // I' ;_>_~/
/./:.CL..--:/i--;;:,,/-: ./:____: ;-<-i--~C,Ll~:_"/ L_-'t:';,,({f
Signature of Board Signatur.$1of Board"PrefsVdent
~ fi '
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