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03-31-2000 district #2ANNUAL FINANCIAL REPORT OF THE GUACCO MUNICIPAL UTILITY DISTRICT NO. 2 YEAR ENDED MARCH 31, 2000 I [1 u I F 11 F 11 ANNUAL FINANCIAL REPORT OF THE GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 YEAR ENDED MARCH 31, 2000 k 11 L lei r 1 1 u F u PAGE NUMBER INDEPENDENT AUDITOR'S REPORT' 1 GENERAL PURSE FINANCIAL STAI EMENTS COMBINED BALANCE SHEET — ALL GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS 2 COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES.. ALL GOVERNMENTAL FUND TYPES 3 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL - GENERAL FUND 4 NOTES TO FINANCIAL STATEMENTS 5-13 �;�• C. AUDITOR'S REPORT ON SUPPLEMENTAL SCHEDULES 14 D. NOTES REQUIRED BY THE WATER DISTRICT ACCOUNTING MANUAL 5 E. SERVICES AND RATES 15 F. SCHEDULE OF GENERAL FUND EXPENDITURES 17 G. SCHEDULE OF TEMPORARY INVESTMENTS 18 H. ANALYSIS OF TAXES LEVIED AND RECEIVABLE 19 I. ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS 21 J. GENERAL LONG —TERM DEBT SERVICE REQUIREMENTS BY YEARS 22 K. ANALYSIS OF CHANGES IN GENERAL LONG —TERM DEBT 23 L. COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES, GENERAL FUND, AND DEBT SERVICE FUND — FIVE YEARS ENDED MARCH 31, 2000 24 M. INSURANCE COVERAGE 25 N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL, AND CONSULTANTS 26 i Jim Robertson CERTIFIED PUBLIC ACCOUNTANT 1 352 Landa St. New Braunfels, TX 78130 1 1 INDEPENDENT AUDITOR'S REPORT Board of Directors 1 Guadco Municipal Utility District No. 2 Guadalupe and Comal Counties, Texas I have audited the accompanying general purpose financial statements of Guadco Municipal Utility District No. 2 as of March 31, 2000, and for the year then ended as listed in the table 1 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. 1 I conduct my audit in accordance with generally accepted auditing standards and generally accepted government auditing standards. Those standards require that I plan and perform 1 the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing 1 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. 1 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 1 of March 31, 2000, and the results of its operations and changes in fund balances for the year then ended in conformity with generally accepted accounting principles. ,106 12, 2000 1 U 1 i i i 830- 625 -6073 830 - 625 -8225 (Fax) GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 COMBINED BALANCE SHEET - ALL GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS March 31. 2000 AS5ET5 Cash Temporary Cash Investments, at Cost Receivables Taxes Accounts Accrued Interest Prepaid Insurance Due from Other Funds 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 TOTALASSETS LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Regulatory Assessment Payable Advances from Developer Payable from Restricted Assets - Deposits Due to Other Funds Deferred Revenues General Obligations Bonds Payable Total Liabilities FUND EQUITY Investment in General Fixed Assets Fund Balances (Deficit) Reserved Unreserved Undesignated Total Fund Equity (Deficit) TOTAL LIABILITIES AND FUND EQUITY GOVERNMENTAL FUND TYPES DEBT CAPITAL GENERAL. SERVICE PROJECTS 45,486 19,423 5,232 - 35,604 258,568 - 1,466 11,773 - 1,283 3,586 55,168 117,296 56,493 263,800 1 4,703 175,307 - 5,320 - - 3,586 1,466 185,330 5,052 51,441 263,800 (68,034) - - (68,034) 51,441 263,800 117,296 56,493 263,800 The accompanying notes are an integral part of these financial statements. 2 ACCOUNT GROUPS GENERAL GENERAL TOTALS FIXED LONG.-TERM (MEMORANDUM ONLY) ASSETS DEBT 2000 1999 2,158 - 70,141 93,900 - 555,000 745,382 - 294,172 323,839 - - 1,466 2,158 - - 11,773 938,494 - 1,185,701 1,283 1,268 938,494 555,000 1,931,083 3,586 1,104 - 55,168 5,351 938,494 - 938,494 938,494 - 55,027 55,027 89,361 - 499,973 499,973 560,639 938,494 555,000 1,931,083 2,016,114 4,703 1,880 175,307 175,307 - 5,320 5,235 - 3,586 1,104 - 1,466 2,158 555,000 555,000 650,000 - 555,000 745,382 835,684 938,494 - 938,494 938,494 - 315,241 340,964 (68,034) (99,028) 938,494 - 1,185,701 1,180,430 938,494 555,000 1,931,083 2,016,114 2 ' GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES ' YEAR ENDED MARCH 31, 2000 GOVERNMENTAL FUND TYPES TOTALS DEBT CAPITAL (MEMORANDUM ONLY) GENERAL SERVICE PROJECTS 2000 1999 REVENUES ' Property Taxes 8,065 128,424 136,489 153,251 Water Service 66,456 - 66,456 63,958 Sewer Service 23,078 - •- 23,078 23,958 Penalty and Interest 431 - 431 1,193 Standby & Tap Connection Fees 4,724 - 4,724 9,457 Interest on Time Deposits 2,678 9,864 13,301 25,843 16,723 Other 493 - - 493 558 ' Total Revenue 105,925 138,288 13,301 257,514 269,098 EXPENDITURES ' Debt Service Principal Retirement - 95,000 - 95,000 75,000 Interest and Fiscal Charges - 58,573 - 58,573 79,740 Purchase Water and Sewer Services 31,577 31,577 35,894 Professional Fees 4,031 - - 4,031 7,230 ' Director Fees Contracted Services 1,800 20,247 - - 1,800 20,247 2,750 23,117 Utilities 3,641 - - 3,641 522 Repairs and Maintenance Tax Collection Services 8,716 - - 3,252 8,716 3,252 2,450 2,780 Other Expenditures 4,919 - - 4,919 4,253 Capital Expenditures - - - Total Expenditures 74,931 156,825 u 231,756 233,736 Excess of Revenues Over (Under) ' Expenditures 30,994 (18,537) 13,301 25,758 35,362 OTHER FINANCING SOURCE (USESI ' Proceeds from 1999 bonds - 650,000 650,000 - Retirement of 1984 bonds - (650,000) (650,000) Issuance costs - (20,487) (20,487) - ' Other financing (uses) - (20,487) _ (20,487) u - FUND BALANCES (DEFICIT) AT ' BEGINNING OF YEAR (99,028) 90,465 250,499 241,936 206,574 Transfers - - - - ' FUND BALANCES (DEFICIT) AT END OF YEAR (68,034) 51,441 263,800 247,207 241,936 ' The accompanying notes are an integral part of these financial statements. 3 1 GUADCO MUNICIPAL UTILITY DISTRICT NO.2 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN ' FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND YEAR ENDED MARCH 31, 2000 ' GENERALFUND VARIANCE- FAVORABLE , BUDGET ACTUAL (UNFAVORABLE) REVENUES Property Taxes 5,584 8,065 2,481 Water Service 62,768 66,456 3,688 Sewer Service 24,159 2.3,078 (1,081) Penalty and Interest 1,303 431 (872) Standby & Tap Connection Fees 5,250 4,724 (526) Interest on Time Deposits 1,161 2,678 1,517 Other Total Revenue 631 100,856 493 105,925 (138) 5,069 EXPENDITURES Purchase Water 21,041 15,691 5,350 Water Maintenance and Repair 4,448 8,213 (3,765) Repairs and Maintenance 3,156 503 2,653 ' Electric Utilities 1,591 3,641 (2,050) Sewer Treatment 16,048 15,886 162 Sewer Maintenance and Repair 2,855 - 2,855 Election Expenses - - - Director Fees 3,000 1,800 1,200 Legal Fees 10,000 31 9,969 Audit Fees 4,000 4,000 - Accounting Fees 1,740 1,678 62 Administration 6,276 3,500 2,776 Utility Operation 16,476 15,069 1,407 Legal Notices 72 110 (38) Telephone 408 406 2 Insurance and Bonds 2,691 2,696 (5) ' Printing and Office Supplies 600 650 (50) Postage and Rent 288 286 2 ` raxes TN RCC 304 585 (281) Miscellaneous 111 186 (75) Total Expenditures 95,105 74,931 20,174 Excess of Revenues Over (Under) Expenditures 5,751 30,994 25,243 ' FUND BALANCE (DEFICIT) AT BEGINNING OF YEAR (99,028) (99,028) - ' TRANSFERS - FUND BALANCE (DEFICIT) AT END OF YEAR (93,277) (68,034) 25,243 The accompanying notes are an integral part of these financial statements. 4 f NOTES TO FINANCIAL STATEMENTS March 31, 2000 B. Description of Funds 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: ' Governmental Funds 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. 1 All significant activities and groups on which the GUADCO Municipal Utility District No. 2 (District) exercises oversight responsibility have been included in the general purpose financial statements, for the fiscal year ended. The District is located in Comal and Guadalupe counties in Texas. The following criteria regarding manifestation of oversight were considered by the District in its evaluation of District organizations and activities: Financial Interdependency - The District is responsible for its debts and entitled ' to surpluses. No separate agency receives a financial benefit nor imposes a financial burden on the District. ' Election of the Governing Authority - The locally elected Board of Directors is exclusively responsible for all decisions and accountable for the decisions it ' makes. Designation of Management - 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. Ability to Significantly Influence Operations - 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. Accountability of Fiscal Matters - The responsibility and accountability over all funds is vested in the District's management. ' Purchase 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. 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. B. Description of Funds 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: ' Governmental Funds 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. 1 1 GUADCO MUNICIPAL DISTRICT NO. 2 ' NOTES TO FINANCIAL STATEMENTS March 31, 2000 ' NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Description of Funds (Continued) Governmental Funds 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. vital Project Funds -'To account for the acquisition of capital facilities being financed from bond proceeds. Accour�t r ups General Fixed Assets Accounts - To account for property, plant and equipment of the District. ' General Long -Term Debt Accounts - To account for the unmatured principal of outstanding bonds. C. Basis of Accountina 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. Measurable means the amount of the transaction can be determined, and available 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. ' D. Cash 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. These deposits and investments were authorized by legal provisions. ' E. Investments All investments during the fiscal year consisted of short-term U.S. Treasury Bills and Investment Pool Securities held in the Districts name and carried at cost. It is the policy ' and practice of the District to hold all Treasury bills to maturity. F. Receivables All receivables are reported at gross values. There is no estimate for uncollectible amounts in the customer water, sewer, and stand -by fee accounts as the deposits have proven to be adequate to cover liabilities except in non - material amounts. ' G. Interest Receivable Interest on investments is recorded as revenue in the year the interest is earned and is ' available to pay liabilities of the current period. C GUADCO MUNICIPAL DISTRICT NO. 2 NOTES TO FINANCIAL STATEMENTS March 31, 2000 ' NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Pro ep jy Plant. and Equipment Property, plant, and equipment, including infrastructure assets, are recorded at costwhen ' 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. 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. 1. Employee Salaries. Taxes. and Pension Plans The District has engaged a municipality 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. ' J. Budaets The District follows these procedures in establishing the budgetary data reflected in the financial statements: ' 1. Formal budgetary integration is employed as a management control service during the year for the general fund and is presented to directors monthly in the internal accounting information. 2. The manager prepares the budget for Board review usually at the December ' meeting. The budget is discussed, any changes are made, and the final budget is presented at the March meeting. 3. The Board approved total budget appropriations. 4. Any unused appropriations in the budget lapse at the end of the fiscal year. K. Comparative Data Comparative totals for the prior year have been presented in the accompanying 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. L. Total Columns on Combined Statements 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. E I F H GUADCO MUNICIPAL DISTRICT NO. 2 NOTES TO FINANCIAL STATEMENTS March 31, 2000 NOTE 2: STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY A. Compliance with Bond Covenants The annual debt service requirements at March 31, 2000, of all bonds is $126,513, and the balance of the interest and sinking fund and all investment at March 31, 2000, is $55,027. The District met or exceeded the funding requirements of all bonds issues on a timely basis. Expenditures and resources of the interest and sinking fund were all of an authorized nature. B. Deposits with Financialelnstitutions All investments, demand deposits, and savings of the District were sufficiently covered through either FDIC insurance amounts, 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 Investment Pool Securities. The District records all interest revenue related to the investment activities in the respective fund in which they were earned. Deposits At March 31, 2000, the bank balance of the District's deposits was $70,141. This entire amount was covered by $100,000 federal depository insurance and collateral deposits held in the District's name. The collateral for the District's deposits is categorized to give an indication of the level risk assumed by the District at year end. Category 1 includes deposits that are insured, registered or for which the securities are held by the District or its agent in the District's name. Category 2 includes uninsured and unregistered deposits for which the securities are held by the counter party's trust department or agent, but not in the District's name. Category 3 includes uninsured and unregistered deposits for which the securities are held by department or agent, but not in the District's name. All deposits are Category 1. Investments ' The District's investments are categorized to give an indication of level of risk assumed by the District at year end. Category 1 includes investments that are insured or registered or for which the securities are held by the District or its agent 1 in the District's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counter party's trust department or agent in the District's name. Category 3 includes uninsured and unregistered investments ' for which the securities are held by the counter party's trust department or agent, but not in the District's name. The District is currently invested in an Investment Pool which is a pool of securities authorized by the Public Investment Act of Texas. ' CATEGORY CARRYING MARKET DESCRIPTION 1 2 3 AMOUNT VALUE Investment Pool Securities $ 349,340 $ - $ $ 349,340 $ 349,340 ' Investments are stated at cost plus accrued interest, and all investment activities are conducted through a security firm. Investment Pool Securities are bought and held at the security firm for safekeeping. ' 8 I GUADCO MUNICIPAL DISTRICT NO.2 NOTES TO FINANCIAL STATEMENTS March 31, 2000 NOTE 3: CREATION OF DISTRICT 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 24, 1979, and the first bonds were sold February 1, 1984. ' NOTE 4: INTERFUND RECEIVABLES AND PAYABLES The following is a summary of amounts due from and due to other funds at year end: ' DUE FROM DUE TO General Fund Debt Service Fund 3,586 Capital Projects Fund Capital Projects Fund General Fund - Debt Service Fund General Fund - 3,586 TOTAL ALL FUNDS 3,586 3,586 NOTE 5: GENERAL LONG -TERM DEBT ' The following is a summary of changes in general long -term debt: BONDS ADD LESS BONDS PAYABLE AT BONDS BONDS PAYABLE Kr April 1, 1999 ISSUED RETIRED March 31, 2.000 Water Works and Sewer J System Combination Unlimited Tax and Revenue Bonds Series 1984 650,000 650,000 Water Works and Sewer System Combination ' Unlimited Tax and Revenues Bonds Refunding ' Series 1999 650,000 95,000 555,000 L 1 9 I I I I I I I I I I I I GUADCO MUNICIPAL DISTRICT NO. 2 NOTES TO FINANCIAL STATEMENTS March 31, 2000 At March 31, 2000, the District's long -term debt consisted of: 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 Refunding through Bonds Series 1999 2005 5.25% 555,000 100,000 455,000 A schedule of bond maturities for the next five (5) years is as follows: YEAR ENDING MARCH 31, 2001 2002 2003 2004 2005 Total Principal Interest Total TAX AND REVENUE BONDS SERIES 199 126,513 126,131 125,488 124,581 128,281 630,994 555,000 75,994 630,994 Tax and revenue bonds authorized and unissued as of March 31, 2000 amounted to $9,025,000. During June 1999 the Series 1999 Revenue Bonds were approved and sold in the aggregate amount of $650,000 to refund the Series 1984 Revenue Bonds. The District refunded the bonds to reduce its total debt service payments over future years by $118,000. 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. 1 I U F 1 10 1 GUADCO MUNICIPAL DISTRICT NO. 2 ' NOTES TO FINANCIAL STATEMENTS March 31, 2000 ' NOTE 6: WATER AND SEWER SERVICE RATES The Guadco Municipal Utility District No. 2 has established the following water and sewer service rates for residential or multi - family customers in effect for the fiscal year ending March 31, 2000: FOR FISCAL YEAR 1999 -20.00 Water Service Only First 3,000 Gallons of Water Used - Minimum Bill 23.00 Each 1,000 Gallons of Water Used from 3,001 to 6,000 1.59 Increasing the Base by $1.59 by $.24 for ' Each 3,000 Gallons Thereafter Sewer Service Only First 5,000 Gallons of Water Used - Minimum Bill 14.85 Each 1,000 Gallons of Water Used Thereafter 0.55 Deposits Refundable Deposits - Owner 40.00 Refundable Deposits - Renter 75.00 Tap Fees Standard Home 2,000.00 Stand by Fees - Per Undeveloped Lot per month 50.00 There vya'semetered water and sewer customers at March 31, 2000. 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 $0.0645 per $100 in the current year and provided the District approximately $8,065 in spendable general fund revenues. NOTE 7: CHANGES IN GENERAL FIXED ASSETS IA summary of changes in general fixed assets follows: BALANCE NET APRIL 1, ADDITIONS 1999 (DELETIONS) BALANCE MARCH 31, 2000 435,155 - Water System 125,731 - Sewage System 129,207 - Drainage System 80,824 - Engineering Fees 166,921 - Organizational Costs (See Page 20) 656 - Furniture and Fixtures 938,494 - TOTAL BALANCE NET APRIL 1, ADDITIONS 1999 (DELETIONS) BALANCE MARCH 31, 2000 435,155 - 435,155 125,731 - 125,731 129,207 - 129,207 80,824 - 80,824 166,921 - 166,921 656 - 656 938,494 - 938,494 11 P GUADCO MUNICIPAL DISTRICT NO.2 NOTES TO FINANCIAL STATEMENTS March 31, 2000 NOTE 8: PROPERTY TAXES 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 $1.2187 per $100 of assessed valuation and assessed valuation is approximately 100% of actual values. Of the $1.2187 per $100 of assessed valuation, $1.1542 is designated for debt service and $.0645 is designated for maintenance. NOTE 9: ADVANCES FROM DEVELOPER 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. No advances were made during 2000. NOTE 10: FUND EQUITY RESERVES AND TRANSFERS FROM CAPITAL PROJECTS FUND tThe 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: 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. ' Reserved for Capital Projects An account used to indicate that certain assets are generally legally restricted to be used for specific purposes. Management has researched this fund balance and has concluded that $100,800 is restricted for the purpose of capital projects. The balance of the fund has arisen from interest on the investments of the fund. ' NOTE 11: FXCESS QE EXPENDITURES OVER REVENUES During the current fiscal year 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 or a decrease in operating costs. jNOTE 12: COMMITMENTS AND CONTINGENCIES 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 Districts share of the construction and ' engineering costs is approximately $130,700 plus interest. ' 12 I U I 1 I h I GUADCO MUNICIPAL DISTRICT NO. 2 NOTES TO FINANCIAL STATEMENTS March 31, 2000 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. During 1986, the District entered into an agreement with a developer to construct the underground waterlines, 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. All three of the preceding paragraphs are subject to the 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 sale of 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. The developer in claiming certain additional costs associated with the above mentioned projects, plus other costs claimed to be reimbursable from work allocated to this District. These costs will be considered by the Board after reviewing documentation presented by the developer, should a future bond issue be approved to pay these claimed costs. The District purchases its water supply form 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. INOTE 13: FUND DEFICIT The District is attempting to recover the general fund deficit through revenues generated by the increase in metered water and sewer customers, income from the maintenance tax, and reduction of operating expenses. 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. F LJ 1 13 I I I 1 0 I ll D F F LJ p SUPPLEMENTAL INFORMATION GUADCO MUNICIPAL DISTRICT NO.2 SUPPLEMENT SCHEDULES INCLUDED WITHIN THIS REPORT YEAR ENDED MARCH 31. 2000 PAGE YES NO NUMBER X C. INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTAL SCHEDULES 14 X 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 FINANICAL. STATEMENTS 5 X E. SERVICES AND RATES 15 X F. SCHEDULE OF GENERAL FUND EXPENDITURES 17 X G. SCHEDULE OF TEMPORARY INVESTMENTS 18 X H. ANALYSIS OF TAXES LEVIED AND RECEIVALBE 19 X I. ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS 21 X J. GENERAL LONG -TERM DEBT SERVICE REQUIREMENTS BY YEARS 22 X K. ANALYSIS OF CHANGES IN GENERAL LONG -TERM DEBT 23 X L. COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES, GENERAL FUND, AND DEBT SERVICE FUND - FIVE YEARS ENDED MARCH 31, 2000. 24 X M. INSURANCE COVERAGE 25 X N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL, AND CONSULTANTS 26 I ' 352 Landa St. New Braunfels, TX 78130 U 1 1 11 I I I d 1 1 1 Jinn Robertson CERTIFIED PUBLIC ACCOUNTANT INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTAL, SCHEDULES Board of Directors GUADCO Municipal Utility District No. 2 Guadalupe and Comal Counties, Texas In my opinion, the accompanying information is stated fairly in all material respects in relation to the general purpose financial statements, taken as a whole, of GUADCO Municipal Utility District No. 2 for the year ended March 31, 2000, which are covered by my opinion presented in the first section of this report. The accompanying information is supplemental to the general purpose financial statements and is not essential for a fair presentation of the financial position, and the results of operations. My examination, which was made primarily for the purpose of forming an opinion of the combined financial statements taken as a whole, included such tests of accounting records, from which the supplementary information was complied, and such other auditing procedures as I considered necessary in the circumstances. The information prior to April 1, 1997 was audited by other auditor's whose unqualified audit reports -,were issued -at- various dates prior to April 1, 1997. J� Junfe 72,2000 14 830- 625 -6073 830 -625 -8225 (Fax) I 1 1 GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 E. SERVICES AND RATES YEAR ENDED MARCH 31, 2000 1. Services Provided by the District: X Retail Water Wholesale Water Drainage X Retail Wastewater Wholesale Wastewater Irrigation Parks /Recreation _ Fire Protection Security Solid Waster /Garbage Flood Control Roads Participates in joint venture, regional system, and /or wastewater service (other than emergency interconnect) Other (specify) : 1 2. Retail Rates Rased on 5I8 Meter NIA Retail Rates Not Applicable ' Most prevalent type of meter (if not a 5/8) : NIA FLAT RATE PER 1,000 MINIMUM MINIMUM RATE GALLONS OVER 'CHARGE USAGE Y/N MINIMUM USAGE LEVELS WATER $ 23.00 3,000 N $1.59 * 3,0001 To 6,000* WASTEWATER $ 14.85 5,000 N $0.55 5,001 To Thereafter 'SURCHARGE: $ - - * Increase $.24 per 1,000 gallons for each 3,000 gallons thereafter ' District employs winter averaging for wastewater usage ? Yes No X Total water and wastewater charges per 10,000 gallons usage ' (including surcharges) 52.93 3. Retail Service Providers: Number of retail water and/or wastewater* connections within the District as of fiscal year end. Provide actual numbers and single family equivalents (ESFC) as noted: INACTIVE ACTIVE ACTIVE CONNECTIONS 'ONNECTION ESFC (ESFC).A_ ". Single Family 133 1 Multi- Family - ' Commercial 17 Other - Recreational Centers, Government, and VFD 1 ' TOTALS 151 1 * Number of connections relates to water service, if provided. Otherwise, number of wastewater connections should be provided. ** Inactive means that water and wastewater connections were made, but service is not being provided. 4. Total Water Consumption (In Thousands) During The Fiscal Year: Gallons pumped into system: 19,765,250 'Gallons billed to customers: 17,722,400 The accompanying notes are an integral part of these financial statements. 15 n ' GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 E. SERVICES AND RATES (CONTINUED) YEAR ENDED MARCH 31, 2000 ' 5. Standby Fees: Does the District assess standby fees? Yes X No For the most recent full fiscal year, FYE 33- 31 -00, Debt Service: Total levy Total Collected - Percentage Collected -- Operation & Maintenance: Total levy $ 4,664 Total Collected $ 4,664 Percentage Collected 100.00% 'Have standby fees been levied in accordance with Water Code Section 50.056, thereby constituting a lien on property? Yes X No n H 1 1 LJI 1 1 6. Anticipated sources of funds to be used for debt service payments in the District's following fiscal year: Amount a. Debt Service Tax Receipts 126,513 b. Surplus Construction Funds - c. Water and /or Wastewater Revenue _ d. Standby Fees _ e. Debt Service Fund Balance to be Used - f. Interest Revenues _ g. Other (Describe) _ TOTAL ANTICIPATED FUNDS TO BE USED * 126,513 *This total should equal the District's annual debt service for the fiscal year following the fiscal year reported or in the audited financial statements. 7. Location of District: Counties in which district is located. QOadalupe and Camel C un s. Is the District located entirely within one county? Yes No X Is the District located within a city? Entirely Partly�XX Not at all City (ies) in which district is located. Is the District located within a city's extra territorial jurisdication (ETJ)? Entirely Partly X Not at all ETXs in which district is located. Schertz. Texas Is the general membership of the Board appointed by an office outside the district? Yes No X If Yes, by whom? The accompanying notes are an integral part of these financial statements. 16 1 GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 F. SCHEDULE OF GENERAL FUND EXPENDITURES YEAR ENDED MARCH 31, 2000 CURRENT Personnel (Including Benefits) PROFESSIONAL FEES Auditing Legal Engineering PURCHASED SERWCES FOR RESALE Bulk Water and Sewer Service Bookkeeping Utility Operator Appraisal District Tax Collector Administrator UTILITIES ADMINISTRATIVE EXPENDITURES Directors Fees Office Supplies and Printing Insurance Other Administrative Expense Taxes TNRCC Legal Notices Telephone Repairs and Maintenance CAPITAL OUTLAY Acquisition of Fixed Assets SOLID WASTE DISPOSAL (Sewer Only Not Garbage) FIRE FIGHTING PARKS AND RECREATION OTHER EXPENDITURES TOTAL EXPENDITURES Number of persons employed by the District: (Do not include independent contractors or consultants) All Services in District Provided by Contractors or City of Schertz, Texas. The accompanying notes are an integral part of these financial statements. 17 4,000 31 31,577 1,678 15,069 3,500 3,641 1,800 936 2,696 186 585 110 406 8,716 74,931 - Full -time - Part-time 1 E NDa GENERALFUND Investment Pool Securities DEBT SERVICE FUND Investment Pool Securities CAPITAL PROJECIS PROJECTS FUND Investment Pool Securities GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 G. SCHEDULE OF TEMPORARY INVESTMENTS YEAR ENDED MARCH 31, 2000 ACCOUNT INTEREST NUMBER RATE #742294649 -20 #742294649 -50 #742294649 -10 COST BALANCES AT FUNDS END OF YEAR GENERAL FUND Investment Pool Securities 55,168 DEBT SERVICE FUND Investment Pool Securities 35,604 CAPITAL PROJECTS FUND Investment Pool Securities 258,568 TOTAL- ALLFUNDS 349,340 5.987 5.987 5.987 MARKET BALANCES AT END OF YEAR The accompanying notes are an integral part of these financial statements. it 55,168 35,604 258,568 349,340 MATURITY DATE None None None RECEIVABLE AT END OF YEAR Percent of Taxes Collected to Taxes Levied' 98.97% 100.00% 100.00% 100.00% * Calculated as taxes collected in current and previous years divided by tax levy. In 2000 total tproperty valuations are reduced by homestead exemptions (2,338,840), and disabled veterans exemption (324,500). ' The accompanying notes are an integral part of these financial statements. 19 1 GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 H. ANALYSIS OF TAXES LEVIED AND RECEIVABLE YEAR ENDED MARCH 31, 2000 DEBT ' MAINTENANCE SERVICE TAXES TAXES Taxes Receivable at April 1, 1999 90 2,068 ' 1999 Original Tax Levy 7,147 127,898 Adjustments to Roll 906 (154) Total to be Accounted for 8,143 129,812 Tax Collections: t Current Year Prior Years 7,918 147 125,790 2,634 Total Collections 8,065 128,424 TAXES RECEIVABLE AT MARCH 31, 2000 78 1,388 ' Taxes Receivable, By Years 2000 78 1,388 TAXES RECEIVABLE AT MARCH 31, 2000 78 1,388 2000 1999 1998 1997 ' PROPERTY VALUATIONS Land 2,610,877 2,483,307 2,481,907 2,391,972 Improvements 10, 863,560 10,503,108 10,361,021 10,325,138 Personal Property 270,000 299,210 164,920 155,807 TOTAL PROPERTY VALUATIONS 13,744,437 13,285,625 13,007,848 12,872,917 2000 1999 1998 1997 TAX RATES PER $100 VALUA`riON Debt Service Tax Rates 1.1542 1.36 1.1244 1.1297 Maintenance Tax Rates 0.0645 0.06 0.09 0.0922 TOTAL TAX RATE PER $100 VALUATION 1.2187 1.42 1.2144 1.2219 1 Original Tax Levy: 135,045 151,831 147,118 153,379 Percent of Taxes Collected to Taxes Levied' 98.97% 100.00% 100.00% 100.00% * Calculated as taxes collected in current and previous years divided by tax levy. In 2000 total tproperty valuations are reduced by homestead exemptions (2,338,840), and disabled veterans exemption (324,500). ' The accompanying notes are an integral part of these financial statements. 19 1 GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 ' H. ANALYSIS OF TAXES LEVIED AND RECEIVABLE (CONTINUED) YEAR ENDED MARCH 31, 2000 Tax rate for any other special district which encompasses less than a county, (b) provides water, wastewater collection, drainage or roads to property in the District and (c) taxes property in the District. ' Name of Special District (s) Service Provide Tax Rate 'N/A-- N/A $ Total Rate (s) of Special District (s) ' Tax rates for all overlapping jurisdiction Tax Rate ' a. County Guadalupe $ 0.337 ' b. City N/A - c. School District Schertz I.S.D. 1.4299 ' d. Special District (s) not included above: e. Total Special District (s) (from top of this page) - ' f. Total District (from previous page) 1.2187 Total Overlapping Tax Rate (Sum of a -f 2.9856 1 1 ' The accompanying notes are an integral part of these financial statements. 20 1 1 1 1 GUADCO MUNICIPAL UTILITY DISTRICT NO .2 ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS YEAR ENDED MARCH 31, 2000 AMOUNTS PROVIDED BY: BALANCES BALANCES Capital Projects Fund: April 1, 1999 ADDITIONS DELETIONS March 31, 2000 PHYSICAL FACILITIES: 166,921 166,921 Water System 435,155 - - 435,155 Sewage System 125,731 - - 125,731 Drainage System 129,207 - - 129,207 Engineering Fees 80,824 - 80,824 Capitalized Construction - - Furniture and Fixtures 656 - 656 Contribution - TOTAL PHYSICAL FACILITIES 771,573 - 771,573 PROVIDED ORGANIZATIONAL COSTS: 938,494 The accompanying notes are an integral part of these financial statements. Fiscal Agent Fees 3,943 - - 3,943 Legal Fees 59,408 - - 59,408 Director Fees 900 - - 900 Operations During Construction Period 80,147 - - 80,147 Creation Cost 22,523 - - 22,523 TOTAL ORGANIZATIONAL COSTS 166,921 - - 166,921 TOTAL GENERAL FIXED ASSETS 938,494 - - 938,494 AMOUNTS PROVIDED BY: Capital Projects Fund: Bonds Proceeds 166,921 166,921 Revenues Debt Service Fund: Revenues 716,364 716,364 General Fund: Revenues 55,209 55,209 Developer Contribution - - TOTAL AMOUNTS PROVIDED 938,494 - 938,494 The accompanying notes are an integral part of these financial statements. 21 1 1 1 GUADCO MUNICIPAL UTILITY DISTRICT NO.2 J. GENERAL LONG -TERM DEBT SERVICE REQUIREMENTS - BY YEARS YEAR ENDED MARCH 31, 2000 DUE DURING SERIES 1999 FISCAL YEARS PRINCIPAL INTEREST ENDING DUE DUE MARCH 31, Mar -01 Mar -01, Sep -01 TOTAL 2001 100,000 26,513 126,513 2002 105,000 21,131 126,131 2003 110,000 15,488 125,488 2004 115,000 9,581 124,581 2005 125,000 3,281 128,281 TOTALS 555,000 75,994 630,994 The accompanying notes are an integral part of these financial statements. 22 GUADCO MUNICIPAL UTILITY DISTRICT NO.2 ' K. ANALYSIS OF CHANGES IN GENERAL LONG -TERM DEBT YEAR ENDED MARCH 31, 2000 BOND ISSUE- BOND ISSUE - SERIES 1999 SERIES 1984 ' Interest Rate 5.25% 9.60% to 10.75% Dates Interest Payable March 1; September 1 March 1; September 1 ' Maturity Dates March 1, 2000 to March 1, 2005 March 1, 1989 to March 1, 2005 ' Maturity Outstanding at Beginning of Current Period Bonds Sold During Current Period 650,000 Retirements - Principal 95,500 Bonds Outstanding at End of Current Period 555,000 ' Interest Paid During the Current Year 23,698 PAYING AGENT'S NAME AND ADDRESS Series 1984 & 1999 Chase Bank N.A., Post Office Box 2320, Dallas, TX 75221 BOND AUTHORITY TAX BONDS OTHER BONDS ' Amount Authorized by Voters 10,200,000 Amount Issued 1,175,000 Remaining to be Issued 9,025,000 - ' Debt Service Fund Cash and Temporary Investments balances as of March 31, 2000: Average annual Debt Service payment (Principal & Interest) for remaining term of all debt: The accompanying notes are an integral part of these financial statements. 23 650,000 650,000 34,875 REFUNDING BONDS 55,027 126,199 GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 L. COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES GENERAL FUND AND DEBT SERVICE FUND FIVE YEARS ENDED MARCH 31, 2000 EXPENDITURES 3,252 2,780 AMOUNTS 6,032 11,278 Purchase Water and Sewer Services 2000 1999 1998 43,048 1996 GENERAL FUND REVENUES 5,831 9,980 _ _1997 8,100 Property Taxes 8,065 6,519 10,963 11,475 10,413 Water Services 66,456 63,958 59,326 55,499 56,997 Sewer Services 23,078 23,958 25,682 22,714 22,496 Penalty and Interest 431 1,193 296 520 158 Standby & Tap Conn. Fees 4,724 9,457 8,055 2,750 1,200 Interest on Time Deposits 2,678 1,249 969 615 532 Other 493 558 415 - - Total Revenues 105,925 106,892 105,706 93,573 91,796 EXPENDITURES 3,252 2,780 946 6,032 11,278 Purchase Water and Sewer Services 31,577 35,894 41,692 43,048 41,380 Professional and Director Fees 5,831 9,980 23,713 11,681 8,100 Contracted Services 20,247 23,117 18,157 18,231 18,484 Utilities 3,641 522 1,816 2,746 1,639 Repairs and Maintenance 8,716 2,450 - 16,049 18,236 Other Expenditures 4,919 4,253 3,471 4,181 4,791 Capital Outlay - - 656 - 27,122 Total Expenditures 74,931 76,216 89,505 95,936 119,752 EXCESS REVENUES (EXPENDITURES) 30,994 30,676 16,201 (2,363) (27,956) DEBT SERVICE FUND REVENUES Property Taxes 128,424 146,732 136,626 144,225 135,433 Penalty and Interest - - - _ Interest on Time Deposits 9,864 4,396 4,697 4,625 6,150 Total Revenue 138,288 151,128 141,323 148,850 141,583 EXPENDITURES Tax Collection Services 3,252 2,780 946 6,032 11,278 Debt Service, Interest, and Fees 153,573 154,740 149,557 150,858 153,600 Other Expenditures - - - - - Total Expenditures 156,825 157,520 150,503 156,890 164,878 EXCESS REVENUES (EXPENDITURES) (18,537) (6,392) (9,180) (8,040) (23,295) TOTAL ACTIVE RETAIL WATER AND/ OR WASTEWATER CONNECTIONS 151 151 147 147 146 The accompanying notes are an integral part of these financial statements. 24 i PERCENT OF FUND TOTAL REVENUE 2000 1999 1998 1997 1996 7.62 6.10 10.37 12.26 11.34 62.74 59.83 56.13 59.31 62.09 21.79 22.41 24.29 24.27 24.49 0.40 1.12 0.28 0.56 0.17 4.46 8.85 7.62 2.94 1.31 2.53 117 0.92 - 0.60 0.46 0.52 0.39 0.66 130.73 100.00 100.00 c- 100.00 100.00 100.00 29.80 33.58 39.44 46.00 45.18 5.51 9.34 22.43 19.48 8.84 19.12 21.63 17.18 19.48 20.18 3.44 0.49 1.72 2.93 1.78 8.23 2.29 - 17.15 19.91 4.64 3.97 3.28 4.47 5.23 - - 0.62 - 29.61 70.74 71.30 84.67 109.51 130.73 29.26 92.87 7.13 100.00 28.70 97.09 2.91 100.00 15.33 96.68 3.32 100.00 96.89 3.11 100.00 (30.73) 95.66 2.35 1.84 0.67 4.05 7.97 111.05 102.39 105.83 101.35 108.49 - - - - 0.00 113.40 104.23 106.50 105.40 116.46 (13.40) (4.23) (6.50) (5.40) (16.46) 24 i i GUADCO MUNICIPAL UTILITY DISTRICT NO, 2 i M. INSURANCE CONVERGE YEAR ENDED MARCH 31, 2000 i No Stock No Stock No Stock AMOUNT iTYPE OF COVERAGE OF COVERAGE NAME Public Officials Faithful Performance (5 Directors) $10,000 Each Hartford Insurance Employee Dishonesty Bonds - Bookkeeper, Operator & iAttorney $10,000 Each Hartford Insurance Liability: Automotive - i Property Damage and Bodily Injury $2,000,000 New Hampshire Ins. i Comprehensive: General $4,000,000 New Hampshire Ins. iPersonal Injury $2,000,000 New Hampshire Ins. Fire $50,000 New Hampshire Ins. iMedical New $5,000 Hampshire Ins. Directors & Officers i Liability $1,000,000 Mid Continent iBusiness Travel $50,000 AIG Life Ins. 1 i iThe accompanying notes are an integral part of these financial statements. i25 1 INSURER CORPORATION CLAUSE STOCKIMUTUAL COINSURANCE Stock No Stock No Stock No Stock No Stock No Stock No Stock No Stock No Stock No GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL, AND CONSULTANTS YEAR ENDED MARCH 31, 2000 Complete District Mailing Address: 4820 Scenic Drive Cibolo, Texas 78108 District Business Telephone Number: (210) 629 -0688 TERM OF FEES OFFICE ELECTED AND EXPENSE RESIDENT AND EXPIRES REIMBURSEMENTS TITLE AT OF NAME AND ADDRESS OR DATE HIRED March 31, 2000 YEAR END DISTRICT ? iSH_1c��l�l Howard F. Judson 3624 Chestnut Court Cibolo, TX 78108 05 -98 to 05 -02 512.35 President Yes John Emmering 3833 Greenridge Cibolo, TX 78108 05 -96 to 05 -00 550.00 Treasurer Yes Betty Zander 3817 Greenridge Cibolo, TX 78108 05 -98 to 05 -00 406.60 Vice President Yes Jerald Newman 3613 Chestnut Court Cibolo, TX 78108 05 -98 to 05 -02 400.00 Secretary Yes Walter Egbert, Jr. 3808 Greenridge Cibolo, TX 78108 03-99 to 05 -02 250.00 Director Yes The accompanying notes are an integral part of these financial statements. 26 1 1 1 1 1 GUADCO MUNICIPAL UTILITY DISTRICT NO. 2 N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL, AND CONSULTANTS YEAR ENDED MARCH 31, 2000 TERM OF FEES OFFICE ELECTED AND EXPENSE RESIDENT AND EXPIRES REIMBURSEMENTS TITLE AT OF NAME AND ADDRESS OR DATE HIRED March 31, 2000 YEAR END DISTRICT ? CONSULTANTS c Guadalupe County Appraisal District Central 3000 North Austin Appraisal Seguin, `fX 78155 Nov -80 $1,907.98 District No Guadalupe County Tax Office Tax 307 W. Court Assessor - Seguin, TX 78156 Jan -96 $100.00 Collector No City of Shertz Utility 10 Commercial Place System Schertz, TX 78154 Jan -97 $15,069.78 Operator No Jane Olm 4005 Oak Court Ci bolo, TX 78108 Feb -97 $4,205.11 Administrator Yes Charles T. Allen, CPA 831 Landa St., Suite E New Braunfels, TX 78130 Oct -97 $1,678.30 Bookkeeper No Bill Corsbie, P.C. 3708 Clawson Road Austin, TX 78704 Apr-99 $10,401.86 Attorney No Jim Robertson, CPA 352 Landa St. New Braunfels, TX 78130 Dec -97 $4,000.00 Auditor No Samco Capital Markets 1111 Katy Freeway, Ste 725 Financial Houston, TX 77079 Mar -99 $6,527.25 Advisor No The accompanying notes are an integral part of these financial statements. 27