harris county - hcmud359.comaug 31, 2013 · harris county municipal utility district no. 359...
TRANSCRIPT
Harris County Municipal Utility District No, 3SgAugust 3r,2813
Contents
lndependent Auditor's Report 1
ll[anagement's Discussion and Ana1ysis............ ............3
Basic Financial $tatements
Statement of Net Position and Governmental Funds Balance Sheet"..
Statement of Activities and Governmental Funds Revenues,Expenditures and Changes in Fund Balances....
Notes to Financial Statements
Required Supplementary lnformation
Budgetary Comparison Schedrle * General Pund.
Notes to Required Supplemontary lnf*rmation......
..9
11
t2
24
25
$upplementary I nformation
Supplementary Schedules Included Wi&in This Report
Schedule of Services and Rates...
Sched:"rle of Oeaeral Fund lxpenditures
Schedule of Temporary Investments ""
Analysis of Taxes Levied and Receivable
Schedule of Long-term Debt Service Requirements by Years..."
Changes in Long-term Bonded Debt.
Comparativs Schedule of Revenues and Expenditures - General Fundand Debt Service Fund * Five Years
Board Members, Key Personnel and Consultants.....
.."...26
......27
.,.....,32
28
29
30
36
,....,.'.37
?o
wKw$P&s & Advissrs
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lndependent Auditor's Repo*
Board of DirectorsHarris Ccurty Municipal Utility Diskict No. 359Haris Counlz, Texas
We have audited the accompanying financial statements of &e governmental activities of HarrisCounty Municipal Utility District No. 359 {the }istrict), which are comprised of a statement of netpositian as of August3t,2Dl3, and a statement of activities for the year then ended; as well as theaccompanying finalcial statements of eaeh major ftnd, which for gover:rmental funds are comprisedof a balance sheet as of August 3t,2AL3, and a statement of reverues, expenditures and changes infund balances for the year then ended, and the related rotes to the finaxcial statements, whichcollectively comprise the District's basic financial statements listed in the table of contents.
Man*gemenl's Resporsibiltty for the Ftnancial Statemenls
Management is responsible for the preparation and fair presentation of thsse flnancial statements inaecordance with accounting prilciples geaerally accepted in the United States of America; thisincludes the design, implementation and maintenance of internal control relevant to the preparationand fair presentation of financial statements that are fiee from material misstatement, whether due tofraud or error"
A uilitor's Re sp o ns i b ility
Our responsibility is to express opinions on thess financial statemelts based on our audit. Weco*dr:cted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Thcse standards require that we plan and perform the audit to obtain reasonable assuranee
about whether the finalcial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresia the financial statements. The procedures selected depend on the auditor's judgment, including theassessment cf the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers intemal control relevant to the entity'spreparation and fair presentation of the finaacial statements in order to design audit procedures thatare appropriate in th6 circumstances, br* not far the purpose of expressing an opinion on theeffectiveness of the entity's internal contrcl. Accordingly, ws express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant acco*ntirg estimates made by managemenl, as well as evalualing t}le overall presentationof the financial statements.
?€1:&*ar*!* * 4.4€\ n e-9.. "
Board of DirectorsEarris County Municipal Utiliry Districl No. 359Pagz2
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our ar:dit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all materiai respects, therespective financial position of the goverr*eatal activities, and each major fund of the District as cfAugust 31,2013, and the respective changes in Jinancial position thereof for the year then ended inaccordance with accounting principles generally accepted ir the United States of America"
Req uired S apptement*ry Inlormution
Accounting principles generally accepted in the United States of America require &at themanagement's discussion and analysis and budgetary inforrnation listed in the lable of contents bepresented to supplemeat the basic financial statements. Such inforrnation, although not part of thebasic financial statements, is required by the Governmental Accounting Standards Board, whoconsiders it to be an essential part of financial reporting for placing the basic financial statements inaa appropriate operational, economic or historical context. We have applied certain limitedprocedures to the required supplementary information i* accordance with auditing standards generallyaccepted in the United States of America, which consisted of inquiries of management about themethods of preparing the information and comparing tle informalion for consistency withmanagement's responses to our inquiries, the basic flnancial statements and other kncwledge weobtained during our audit of the basic financial statements. We do not expr€ss an opinioa or provideany assurance on the information because the limited procedures do not provide us with suf{icienteviderce t* express an opinion or provide any assurance.
S upp le me nt ary lxfo rmcti* n
Our audit was conducted for the purpose of forming opinions on the basic financial staternents as a
whole. The accompanying supplementary information listed in the table of contents is presented f*rpurposes af additional analysis and is not a required part of the basic financial statements. Suchinformation has not been subjected to the auditing procedures applied in the audit of the basicfinancial statements, and accardingly, we do not express an opinion or pravide ary assurance or it.
$H}*,rHolsto:r, TexasJanuary 6,2414
Harris County Municipal Utility District No. 359Management's Discussion and Analysis
August 3'1, 2013
Overvielv .of the Financial St*teme*ts
This discussicn and analysis is intended to serye as al inkodactior to the Districtns basic financial statements.The District's basic fiaancial stalements are comprised of three comporents: 1) government-wide financialstatements, 2) fund financial statements and 3) notes to {inancial statements" This repart alsc containssupplementary inforrnation required by the Governaental Accounting Staldards Board (CASB) and othersupplementary informaticn required by the District's state cversight agercy, the Texas Commission on
Environmental Quality (the Commissicn).
ln accordance rvith required reporting standards, the District reports its financial activities as a special-purposegovernment. Specialpurpose goverlments are governmental entities which engage in a single governmeltalprogram, such as the provision of water, sanitary sewer and drainage services. Other activities, such as thepravision of recreation facilities and solid waste ccllection, are minor activities and are not budgeted oraccounted for as separate programs. The financial statemclts of special-ptrpose governments combine fwo
Spes of financial statements into o:re statement. These two types of financial statexents are thegovernment-wide financial statements and the fund filancial statements. The fund financial staternents are
presented on the left side of the statements, a column for adustments is to the right of the fund financialstatements and the government-wide financial statements are presented 1o lhe right side of &e adjustments
column. The following sections describe the measurement focus of the two types of staternents and thesigtificant differelces in the information they provide"
Gove{nment'wide Finalcial Statements
The focus of government-wide financial statements is on the overall {inancial positioa and activities of theDistrict. The District's gcvemment-wids financial statements includs the statement of net position and
statement of activities, which are prepared using accounting principles that are similar to commercialenterprises. The purpose of the statement of not position is to attempt to report all of the assets and liabilities ofthe District. The District reports all of its assets when it acquires or begins to maintail the assets and reports allof its liabilities when they are incurred.
The difference between the District's total assets and total liabilities is labeled as net position and this differenceis similar to the total stockholders'equity presented by a commercial enterprise.
The purpose of the statement of activities is to present the revsnues and expenses of the District. Again, theitems presented on the statement of activities are measured in a manner similar to the approach used by acommercial enterprise in that revenues are recognized when oamed or established criteria are satis{ied and
expenses are reported when incurred by the District. All changes in net position ars reported when the
underlyiag event giving rise to the change oceurs, regardless of &e timing cf related cash flows. Thus, revenuesare reported even when they may not be collected for several months or years after the end of the accountingperiod and expenses are recorded even though they may not have used cash during the current year.
3
Harris County Municipal Utility District No. 359Management's Discussion and Analysis {Continued}
August 31,2013
Although the statement of activities looks diffbrent fiom a commercial enterprise's statemer:t cf income, thefinancial sra-tement is different only in format, not sr.:bstance. Whereas the bottom line in a commercialenterprise is its net income, the )istrict reports an amoult described as change in net position, essentially thesamc thing.
Fuxd Fiuaqcial $tatements
Unlike governffent-wide fi:raacial staternents, the fiocus of fund financial statements is directed tc specificactivities of the Diskict rather than the )istrict as a whole. Except for the ge*eral fund, a specific fund isestablished to satisfy managerial cortrol over resources or to satisfu finance-related legal requirementsestablished by external parties or goyemmental statutes or regulations.
Governmertal Funds
Covertmental-fund financial statemerts ccnsisl of a balance sheet and a statement of revenues, expendituresand changes in fund balances and are prepared on an accounliag basis that is significantly different from thatused to prepars the gcvernment-wide fiaancial staternents.
In general, these fina.ncial statements have a short-term emphasis and, for the most part, measure and account forcash and other assets fhat can easily be converted into cash. Fcr example, amounts reported on the balance sheetinclude i:ems sach as cash and receivables collectible wi&in avery short period of time, but do not iacludecapital assets such as land and water, sewer and drainage systems. Fund liabilities include amounts that are tobe paid within a very skcrt period ater the end of ths fiscal year. The diffsrence between a fund's total assetsand total liabilities is labeled the fund balance and generally indicates the amount that can be used to finance thenext fiscal year's activities. Likewise, the operating statemenl for governmental funds reports only thoserevenues and expenditures that were eollected in cash or paid with cash, respeclively, during the current periodor very shortly after the end of the flscal year.
Secause the focus of the govemment-wide and fund financial statements is different, there are significantdifferences between the totals presented in these financial slatements. For this reason, there is an analysis in thetrotes to financial statements that describes the adjustments to fund balances to arrive at net position presented inthe governmental activities column on the statement *f net position. Also, there is an analysis in the notes tofinancial statements that reconciles the total change in frrnd balances for all govemmental funds to the change innet position, as repo*ed in &e governmental activities column in the statement of activities.
Notes to Financial Statements
The notes to financial statsments provide additional informatiol that is essential to a fulI understanding cf thedata fbund in the govemment-wide and fund financial statements.
4
Harris County Municipal Utility District No. 35SManagement's Discussion and Analysis (Continued)
August 31,2013
Financial Analysis of the District as a-Whole
The District's overall financial position and operations fcr the past two years are summarized as follows, basedon the information included in the government-wide financiai statements.
Sum,marv of Net Positian
2413 2412
Current and other assets
Capital assets
$ 2,518,81 1
3,A66,474
$ 2,415,324
3,068,750
Total assets $ 5,585,281 $ 5,485,074
Long-term liabilitiesOther liabilities
Total liabilities
Nel position:
RestrictedUnrestricted
s 6,346,91581,437
6,953,252
95,254s
6,478,352 7,448,5A2
1,474,192
{2,317,263}
1,399,519
{2,962,947)
Total net posilion $ (843,071) $ (1,563,428)
The total net position of the District increased W $72A357, or approximately 46 percent. The majority of theiacrease in net position is related to tax revenues and rebates from the City of Eouston {the City) intended to payprincipal on the District's bonded indebtedness, which is shown as long-term liabilities in the goverament-widefinancial statements. Although the District's investment in its capital assets is reported net cf related debt, itshould be noted that the resources needed 1o repay this debt must be provided from other sources, siace thecapital assets themselves cannot be used to liquidate thsse liabilities"
At August 31, 2Ar3, unrestricted net position was $(2,3 1 7,263). This amount was negative because pursuant toa contract between the Diskict ald the City, all water, sanitary sewer and storrn sewer facilities purchased orconstructed by the District or its developers are conveyed to the City. In accordance with GASS StatemertNo. 34, expenditrres for boad issua:rce costs prior to the implementation of OASB Statement No. 34 onSeptember 1,2003,were not recorded as deferred charges, which would offset the related liability of long-termdebt.
5
Harris County Municipal Utility District No. 359Management's Discussion and Analysis {Continued}
August 31, 2013
$ummarv of Chanqes in Net Position
2013 2012Revenues:
Property taxas
City rebates
Other revenues
Total revenues
Expenses:
Services
D*preciationlnterest a:rd fees
$ $696,272
566,695
17,644
701,729442,&79
2l 179
1,280,601 1,165,787
209,862
2,,284
348,L42
259,579
2,279
368,137
Total expenses 564,244 629,935
Change in net position 7243s7 535,852
Net position, beginning of yea: (1,563,428) ,280)
Net position, end of yex $ (843,071) $ (1,563,428)
Financial A+alysis of the Distriet's Fands
The District's combined fund balances as of the end of &e fiscal year eaded August 3l,2013,were$2,141,27il,an increase of $83,75 I from the prior year.
The general fund's fund balance ilcreased by $72,341, primarily due to property tax revenue being greater thanservice expenditures.
The debt service furd's fund balance increased by $11,273 due to property tax revenue and City rebates beinggreater than principal and interest expenditures.
The capital projacts fund's fund balance increased by $137. This increase was due to investment income beinggreater than capital outlay expenditures.
6
Harris County Municipal Utility District No. 359Management's Discussion and Aralysis (Continued)
August 3't,2813
General I'und Budeetarv Hiehlishts
Thsre wers ssveral differences between the final budgetary amounts and actual arnoants. The major differencesbelween budget and actual were due to prcperty tax revenues being greater than anticipated and professionalfees expenditures being less than expected. The fund balance as of August 31,2013, was expected to be
$613,964 and the actual end-of-year fund balance was $677,098
Capital Assets and Related Delt
Capital Assets
Capital assets held by the District at the end of the current and previous fiscal years are summarized below:
Capital Assets (Net of Accumulated Depreqiqtiqn|
2A13 2412
Land and imprcvementsWastewater facilities
Long-term debt payable, beginning ofyearDecreases in long-lerm debt
$ s3,000,890
65,580
3,000,89067,860
Tctal capital assets fi 3,A66,47A $ 3,068,750
During the current year, there were no additians to capital assets.
Debt
The changes in the debt position of the Districl during the fiscal year ended August 31,2A13, are summarized as
follows:
$ 6,953,252(606,337)
Long-term debt payable, end ofyear s 6,346,915
At August 31, 2013, the District had $7,010,000 of unlimited tax bonds authorized, but unissued, for thepurposes of acquiritg, constructiag and improving the wator, sanitary sewer and drainage systems within theDistrict.
The District's bonds can:/ no underlying rating. The Series 199&,2**4 and 2005 bonds carry a UAA-" rating byvirtue of bond insurance issued by Assured Guaranty Municipal Corporation.
7
Harris County Municlpal Utility Bistrict No. 359Managemenfs Discussian and Analysis (Continued)
August 31, 2013
Other Relevant f,'actors
Con*act With the Ci? of Hqlstqt:
ln 1992, the District's developer entersd into a 40-year contract with the Cify, which was assigned by thedeveloper to the District oa March 1,1994, and amended in 1997, to provide water, wastewater and drainageservices to customers withkr and adjacent to the Diskict. Under the terrns of the conkacf the Diskict willconstruct or purchase all facilities necessary to provide water, wastewater aad drainage services and conveythose facilities to &e Ci:y. The District retains a security intryest in the facilities.
The Cif is the owner and operator of the facilities and is responsible frr all operating costs. The Ciff also billsall customers wi&in the District's boundaries at rates comparatrle to other in-City customers.
The contract provides for monthly revenue paymerts to be paid to the District by the City based on net revenuescoliecled, and, also provides fcr annual tax paSrnents to be paid to the District by the Cif" Both fpes ofpaymeats are calculated based on formul*s set for& in the co*tract. During the currer:t year, the Districtrecorded revenus of $566,685 from the City.
I
Harris County Municipal Utility District No. 353$tatement of Net Position and Sovernmental Funds Balance $heet
August 31,2A13
6eneral
Fund
Debt
Service
Fund
Capital
Projects
Fund Total Adiustments
Statement
of Net
Position
Assets
Cash
Certifieates ofdeposit
Receivables:
Propeny taaes
Tax rebates
Accrugd penally ad interest
Accrued inlerest
lnterfuld receivable
Capital assets (net of accrxnula{ed
depreciation):
Land and improvements
lnfraslructure
lleferred Lrond issuance cosls
$ 231,944 $
450,000
4,316
544
6,237
273,538 $
780,000
321,944
1,946
1,468 $
95,000
s06,950 $
r,32s,000
13,64'1
321,940
2,634
6111
$ 506,950
1,325,000
,3"647
394,215
4,4i 8
2,634
65,580
3,000,890
27t,947
144
72,275
4,418
{6,217)
65,580
3,000,890
271,947
Total alselq -$_g3p1l* J__ltsJ5_ $ 96,6 i2 $ 2,176,4A8 $ 3308,873 $ 5,s85,281
ISee &lofes ta Financial Sfafernenfs
Harris County Municipal Utility District No. 359Statement of Net Position and Governmental Funds Balance Sheet {Continued}
August 3't,2013
General
Fund
Debt
Service
Fund
Capital
Projects
Fund Adjustments
Statemsnt
of I'let
PositionTolal
Liabilities
Accounts payable
Accrued interest payable
Deferred propffrfy tax revenue
Interfund payable
Long-term liabilities:
Due wilhin on* year
Due ater one year
Total liabilities
Fund BalanceslNet Position
Fuld balances:
Restricted:
Debt service on unlimitsd 1ax bonds
Water, sewer and drainage
Ulassigned
$ n,627 $ 3,627 $ $ 15,254 $
66,183
(13.647)
(6J37)
475,000
15
15,254
66,1 83
$
4,3 l6 9,331
6,237
13,647
6,231
475,000
5,871,915
1s,943 1 9,1 95 0 3s, I 38 t4 6,428,352
t,367,560 t,36',7,s64
96,612
677,A98
(1,367,560)
t96,612)(677.098)
96,6t2
6"/7,498
Total fuird balances 677,098 I,367,564 96,612 2,14r,270 (2,141,210) 0
Total liabilities and fund balances $ 693,041 $ 1,386,755 $ 95"612 $ 2,176,408
Net position:
Restricted for debt service
Restricted for eapital projects
Unrestricted
1,387,40 I
86;t9t
Q.117.263)
1,387,401
86,791
(2,3t7,263)
Total net position $ (843,0?r) $
See Nofes to Financial Sfalernen/s 1A
Harris County Municipal Utility District No. 35SStatement of Activities and Governmental Funds Revenue$,
Expenditures and Changes in Fund BalancesYear Ended August 31,2413
General
Fund
Debt
Servics
Iund
Capital
Projects
Fund
Statemsnt
Total Adiustments Activitiesof
Reveruc*
Propgrty taxes
Penalty ard interest
Investmeat income
City ofHoustor rebatos
Other ineome
$ 251,231 $ 446,5A? $
8,444
6,3s0
508,42&
$ 697,133 $
&,444
8,963
508,428
85
(r,461) $
152
58,257
696,272
8,s96
8,963
565"685
85
2,t46 467
85
Total revsrues 253,462 969 724 40t 1,223,653 56,948 1,280,601
Ixpendituresl3xperses
Service operations:
Professional fees
Coatracted services
Repairs and rnaintenance
Other expendilures
Capital outlay
Iepreciation
Debt service;
Principal retirement
lnterest and lees
66,417
51,414
30,439
32,831
2,851
19,170
6,390
640,000
290,A40
69,268
7C,604
34,49
39,221
330
640,000
294,440
(330)
2,280
(640,000)
58,062
69,26e
74,%4
34,*939,221
22eA
348,102
330
330
?otal expgnditures/expenses 181,r21 qs8"4s 1 330 1,139,942 (57e,658) s60,244
Exeess of Reverues Over Oxpenditlres
Clrrngc in ltlet Pcsition
Fuld 3al*nces/Net Position
Beginni:rg ofyear
End ofyear
604,757 1,356,287
137 &3,751
96,475 2.457,519
(83,7s 1 )
7243s',? 7243s'l
(1,563,428)
0 $ (843,07r)
72,341 11,273
$ 577,098 $ r,367,550 S 96,612 $ 2,141,2',10 $
See Nofes ta Financial Statements 11
Harris County Municipal Utility District No. 359Notes to Financial Statements
August 31, 2013
Note t: Nature of Operations and $umrnary of Significant Accounting Palicies
Harris Caanty Municipal Utility Diskict No, 359 {the Dis*ict} was created by an order of &e TexasWater Ccrnmission, now known as the Texas Commission on E:rvi:olxental Quality (theCommission), elfective lurre24,1993, in accorda:rce with the Texas Water Code, Chapter 54. TheDistrict operates in accordance with Chapters 49 and 54 of tho Texas Water Code and is subject tothe continuing supervision of the Commission. The principal functions of the District are to financeand construct waterworks, wastewater and drainage facilities and to provide such facilities andservi*es to the customers of the District.
The District lies wilhin lhe corporate limits of the City of Houston (the City). The District hascontracted with the Cfu to supply water and wastewater treatment services to the District'scustomers"
The District is governed by a Soard of Directors (the Board) consisting of five individuals who areresidents or owners of prcperty within the District and are elected by voters within the District. TheBoard sets the policies of the }iskiet. The accounting and reporting policies of th* Districl conformto accounting principles gsnerally aecepted in the United States of America for state and localgovernments, as defined by the Covernmental Accourting Standards Board. The following is asu:nmary of the significant accounting and repo*ing policies of the District:
Reporting Entity
Tke accompanying goverrment-wide financial statements present the financial statements of theDistrict. There are no component units that are legally separate entities for which the Dishict isconsidered to be financially accountable. Accountability is defined as the District's substantiveappointment of the voting majority of the component unit's governing board. I'u*hermore, to behnancially accountable, the District must be able to impose its will upon the eamponent unit or theremust be a possibility that the cornponeat unit may provide specific financial benefits to, or imposespecifie financial burdens on, the District.
Q ov e rn m e nt-w i d e a n d F u n d F i n a n c i al Sfafemenfs
ln accordance with required reporting standards, the District reports its financial activities as aspecial-purpose govenlment. Special-purpose governments ar6 govsrnmental entities which engagein a single governmental program, such as the prcvision of waler, wastewater, drainage and otherrelated services. The financiai statements of special-puryose governments combine two types offinancial statements iatc one statement. These two types of fiaancial statsmsnts are lhegovernment-wide financial statements and &e fund financial statements. The fund financialstatements are preselted wilh a colurm fbr adjustments to convert to t}te government-wide financialstatements.
12
Harris County Muaicipal Utility District No. 359Notes to Financial Statements
August 31, 2013
The goverament-wide financial statements report information on all of &e activities of the District.As a general rule, the effect of interfund activity has been eliminated from the government-wideflnancial statements. Governrnental activities generally are finalced through taxes, charges forservices and intergovernmental revenues. The statement of activities reflects ths revenues and
expenses of the District.
The fund financial statements pravide information about the District's governrRental funds. Separate
statemenls for each governmental fund are presented. The ernphasis of fund financial statements is
directed to speci{ic activities of the District"
The District presents the following major governmental fuads:
General Fund * The ge::eral ftnd is the primary operatirg fund of the Diskict, which accounts for allfirancial resources not accounted for in alother fi-:nd. Reve[ues are derived primarily from properlytaxes, charges for services and interest income.
Debt Service Fund * The debt service fund is used to account for financial resources that are
restricted, committed or assigned to expenditures for principal and kterest related costs, as well as
the financial rescurces being acc:rmulated for future debt service.
Capital Projects Fund - The capital projects fund is used to account for financial resources that are
restricted, committed or assigned to expenditures for capital outlays.
Fund Ealance * Governmental Funds
The fund balances for the District's governmental funds can be displayed in up to five components:
Nanspendable - Amounts that are not in a spendable form or are required to be maintainsd intact.
Restricted * Amounts that can be spent only for the specific purposes stipulated by externai resourceproviders, constitutionally or tkough enabling legislation. Restrictions may be changed or liftedoaly with the consent of resource providers.
Committed * Arnounts that can be used only for the specific plrposes determined by resolution ofthe Board. Commitments may be changed cr 1i*ed only by issuance of a resolution by the District'sBoard.
Assigned * Amcunts intended to be used by the District for specific purposes as determined bymanagement. In governmeltal funds other than the general fund, assigned fund balance represents
the amount that is not restricted or committed. This indicates that resources in other governmentalfunds are, at a minimum, intended to be used for the purpose of that fund.
(Jnassigned * The residtal classification for the general fund and includes all amounts not containedin the other classifications.
13
Harris County Municipal Utility District No. 359Notes to Financial Statements
August 31, 2013
The Diskict considers restricted amounts to have been spent when an expenditure is incurred forpurposes for which both reskicted and unrestricted fund balance is available. The District appliescommitted amourtts {irst, fbllowed by assigned amounts, axd then unassig:ed amounts when anexpenditure is incurred for purposes for which amounts in any of those unrestricted fund balanceclassifications could be r.rse*.
Measuremenf Foc{rs andBasis of Accaunting
Govornment-wide Fixaneial Statements
The gcvemment-wide financial statements are reported using the eccnomie resources msasurementfocus and accrual basis ofaccounting. Revenues are recorded when earned and expenses ar*recorded at th* time liabilitiss are incurred, regardless of the timing of related cash flows.
Nonexcharge transactions, in which the Diskict receives (or gives) value:ryithout directly giving (orreceiving) equal value in exchange, include property taxes and donations. Recognition standards arebased on the characteristics and classes ofnonexchange kansacticr:s. Revenues from properly taxesare recognized in the period &r which &e taxes ars lsvied. Intergovernmental levenues arerecognized as revetses, net of estirnated refunds and uncollectible amounts, in the accounting periodwhen an enforceable legal elaim t* the assets arises and the use of resources is required or is firstpermilted. Donations are recognized as revenues, net of estimated unccllectible amounts, as soon asall eligibiliry requirements imposed by the provider have been met. Amounts received before alleligibility req:rirements have bsen met are reported as deferred revenues.
Fund I'ina:rciql Statements
Goverxnental funds are reported using the current financial resources measlremert focus and themodified accrual basis of accounting. lVith thi$ mea$urement fccus, only current assets a:rdliabilities are generally included on the balance sheet. The state$snt of governmental fundsrevenues, expenditures and changes in fund balances presents increases (revenues and otherfinancing sources) and decreases (expenditures and other fina:icing uses) in spendable resources.General capital asset acq*isitions are reported as expenditures and proceeds oflcng-term debt arereported as other finaacing sources. Under the modified accrual basis of accounting, revenues arerecognized when both measilrable and available. The Dishict considers revenues reported in thegovernmental firnds to be available if they are collectible withia 60 days after year-end. Principalrevenue sources considered susceptible to accrual include taxes, charges for services and investmentincome. Other revenues are considered to be measurable and available only when cash is receivedby the Diskict. Expenditures are recorded when the related fund liability is incurred, except forprincipal and interest on general long-term debt, which are recognized as expenditures whenpayment is due.
14
Harris County Municipal Utility District No. 359Notes ts Financial Statements
August 31,2413
I nte rf u n d Tran s a cti a n s
Transfers from one ftnd tc another fund are reported as interfund receivables a:rd payables if there isintent to repay the amount and if there is the ability to repay the advance on a timely basis.
Operating transfers represent legally authorized transfers from the fund receiving resources to thefund through which the rssources are to be expended.
Pension Cosfs
The District does not pa*icipat* in a pension plan and, therefore, has no pension ccsts"
Use of Estimates
The preparation of financial statements in confbrmity with accountiag principles generally acceptedin the United States cf Arnerjca requires management to make estimates and assumptions that affectthe reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at thedate of the financial statements and ths reported amounts of reveaues and expelseslexpe:dituresduring the reporting period. Actual results could differ from those estimates.
lnvestments and lnvestment lncame
Investments in certificates of deposit, mutual funds, U.S. Government and agency securities, andpooled funds, which have a remaining maturity of one year or less at the date of purchase, arerecorded at amortized cost. All other investments are carried at fair value . Fair value is determinedusing quoted market values.
Investment income includes dividends and interest income and the net change for the year in the fairvalue of inv€stments carried at fak value. Investment income is credited to the fund in which theinvestment is recorded.
Property laxes
An appraisal diskict annually prepares appraisal records listing all property within the Diskict andthe appraised value cf each parcel or item as of January 1. Additionally, on January 1, a tax lienattaches to properly tc secure the payment of all taxes, penalty and interest ultimately iniposed forthe year on the proporty. Aftsr the District receives its certified appraisal roll from the appraisaldistrict, the rate of taxation is set by the Board of the District based upon tle aggregate appraisalvalue. Taxes are due and payable October I or when billed, whichever is later, and becomsdelinquent after January 3l of the fcllowing year.
In the governmental funds, property taxes are initially recorded as receivables and defer:ed reyenueat the time the tax levy is billed. Revenues recognized during the fiscal year ended August 31,2A13,include collections during the curreat period or within 60 days of year-end related to the 2012 andprior years' tax levies.
74
Harris County Municipal Utility District No. 359Notes to Financial $tatements
August 31, 2013
In the gcvernment-wide statement of net posilion, properfy tax*s ars considered earned in the budgetyear for which they are levied. For the District's fiseal year ended August 31,2013,the2A12Mxlevy is considered earned during the current fiscal year. In addition to property taxes levied, anydelinquent taxes are recorded net of amounts considered uncollectible.
Capital Assets
Capital assets, which include properfy, pla:rt, eqr:iprnent ald iafrastructure, are reported in thegovernment-wide financial statements. Capital assets are defined by the District as assets with anindividual cost of $5,000 or more and an estimated useful li& of two years or more. Purchased orconslructed capitzl assets are reported at cost or eslimated historical cost. Doaated capital assets arerecorded at &eir estimated fair value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of tlle asset or materiallyextend the asset lives are not capitalized.
Capital assets are depreciated using the straight-iine method over their estimated useful Iives as
follows:
Years
Wastewater collection and ffeatrnent facilities 10-45
Long-term Obligatians
In &e governmsnt-wide financial statements, loag*term debt and other long-term obligations arereporled as liabilities. Gains on refundings ars ge:rerally deferred and amortized using the effectiveinterest rate method over the life of the bonds. Long-term debt is reported net of the unamortizedgain on refundings- Bond premiums and discounts, as well as issualce costs, are deferred andarnortized over the life of the related debt using the effective i*terest rate method. Bonds payable arereported net of the applicable bond premium or discount. Bond issuance costs are reported asdeferred charges and arnortized over the term ofthe debt.
In the fund financial statements, governmental fund fypes recognize bond premiums and discounts,as well as bond issuance costs, during the current period. The face amount of debt issued is reportedas other financing sources. Premiums received on debt issuances are reported as other financingsources whils discounts on debt issuances are repo*ed as other financing uses. Issuance costs,whether or not withheld from the actual debt proceeds received, are reported as debt serviceexpenditures.
16
Harris County Municipal Utility District No. 3$9Notes to Financial Statement
August 3't, 2013
N et Positi o n/F u n d 8,al an ce
Fund balaaces and aet position are reported as restricted when constraints placed on them are eitherexternally imposed by creditors, gr&ntors, contributors, or laws or regulations of other governmeats,or are imposed by law through constitutional provisiols or enabling legislation.
When both restricted and unrestricted resources are available lcr use, generally, it is the Diskict'spolicy to use restricted resources first.
The compcneats of unrestricted net position at August 31,2A13, are as follows:
General fund, unrestricted fund balance, including deferred taxes $ 681,414
Bold issuance costs for govemmenlal activities 271,947
Long-term debt in excess ofcapital assets and unexpended
bond proceeds {3,27*,624}
Total s {7,317,263)
The District has financed water, waslewater and drainage facilities, which have been colveyed to theCity pursuant to a contract between the City and the District, whieh has caused long-term debt to bein excess ofcapital assets.
Reconciliation of Government-wide and Fund Financial Sfalements
Amounts reported for net position of governmental activities in the statement of net position andfund balances in the governmental fimds balance sheet are different because:
Capital assets used in govemmental activities are not flnancial resources and are
not reported in the funds. $ 3,066,470
Properly taxes are not recognized until collected in the funds. 13,647
Penalty and interest on delinquent laxes is not receivable in the current period
and is not reported in the funds" 4,479
Bond issuance eosts for governmental activities are not financial resourc*s and
are not reported in the funds. 271,947
17
Harris County Municipal Utility District No. 359Notes to Financial Statements
August 31, 2013
Accrued inlerest on long-term liabililies is not payable with current financialresources and is not reported in the funds. $ (66,183)
Tax rebates receivable are not receivable in the current period and are notreported in the funds" 't) )"7<
Long-term dcbt obligalions are not due and payable in the current period and are
not reported in the funds. (6,346,91s)
Adjustment to fund balance to arrive at net position. l_*__sffI;luAmounts reported for change in net position of governmental activities in the statement of activitiesare different &om change in fund balance in the governme:rtal funds statement of revenues,expenditures and changes in fund balances because:
Change in fund balanee"
Govemmental funds rcport capital outlays as expenditures. However, forgovernment*wide finaneial statements, the cost oicapitalized assets is allocatedover their estimated useful lives and reporled as depreciation expense. This isthe amou*l of depreciation expenditures in the currentyeat.
Govemmental funds report principal payments on debt as expenditures. For theslatemenl of aclivities, thess transactions, however do not have any effect on netposition.
Revelues that do not provide current financial resources are not reportedas revenues for the funds, but are repcrted as revenues in the statementof activities-
Some expenses reported in the statement olactivities do not require the use ofcurrent financial rosources and, therefore, ate not reported as expenditures ingovernmental funds.
$ 83,751
(2,280)
640,000
56,948
(58,062)
$ 720,357Change in net position of govemmental activities
18
Harris County Municipal Utility District No. 359Notes to Financial Statements
August 31,2413
Note 2: Deposits, lnvestments and lnvestment Inccme
Oeposifs
Custodial credit risk is the risk that, in the event of a bank failure, a goven:ment's deposits may notbe returned to it. The District's deposit policy for custcdial credit risk requires compliance with theprcvisioas of state law.
State law requires collateralization of all deposits with federal depository insurance; a surety bond;bonds and other obligations of the U.S. Treasury, U.S. agencies or instrumentaiities of the State ofTexas; or certain collateralized mortgage obligations directly issued by a fcderal agency arinstrumentaliry of the United States, the underlying security for which is guaranteed by a:r agency orinstrumentality of the United States.
At Augcst 31,2A13, none of the Diskict's bank balances were exposed to custodial credit risk.
lnvestments
The District may legally invest in obligations of the United States or its agercies and
instrumentalities, direct obligations of Texas or its agencies or instrumentalities, collateralizedmodgage obligations directly issued by a federal agency or instrumentality of the United States, thennderlying security for which is guaranteed by an agency or ins?umentality of the United States,other obligations guaranteed as to principal and interest by the State of Texas or the United States ortheir agenciss and instrumentalities, including obligations that are fully guaranteed or insured by theFederal Deposit Insurancs Corporation or by the explicit full faith and credit cf the United States,obligations of states, agencies and counties and other political subdivisions rarith an investrrrent ratingnot less than "A," iasared or collateralized certificates of deposit, and certain bankers'acceptances,repurchase agreements, mut;al funds, commercial pap€r, guaranteed invesknent contracts and
investment pools.
?he District's investment policy may be rnore reskictive than the Public Funds Investment Acl.
At August 3L,2013, the Diskict had no investments, other than certificates of deposit.
lnvestment lncame
Iavestrnelt income of $8,963 for the year ended August 31,2013, consisted of interest income.
t9
Harris County Municipal Utility District No. 359Notes to Flnancial Statements
August 31,2813
Note 3: Capital Assets
A summary of cha:rges in capital assets for the year ended August 31,2*13, is presented below:
Governmental Activities
Balances,Beginning
of Year Additions
Balances,End
of Year
Capital assets, ncn-depreciable :
Land and improvements $ 3,000,890 $ $ 3,000,890
Capital assets, depreciable:
Wastewater collection and treatment facilities 142,59A 1 02,590
Less accumulated depreciation:Wastewater collection and treatment faci lities {34,',fiA}
$ 3,068,750
{2,280) (37,010)
Total governmenlal activities, net $ (2,280) $ 3,A66,470
Note 4: Long-term Liabilities
Changes in l*ng-term liabilities for the year ended August 31,2}13,1ryere as follows:
Governmental Activities
3alances,Beginning
of Year Decreases
Balances,End
of Year
AmountsDue in
One Year
Bonds payable:
General obligation bonds
Less deferred amount on
refunding
Total govemmental
activities long-termliabilities
g 7,27A,A00 $ 640,000 $ 6,630,000 s 475,000
316,748 33,663 283,085
s 6,346,915 $ 475,000fi 6,953,252 $ 5A6337
2A
Harris County Municipal Utility District No. 359Notes to Financial Statements
August 31,2013
Generat Obti gation Bonds
Series 1998Refunding
Series 2004
Amounts outstanding, August 31, 2013
Interest rates
Maturity dates, seriallybegiru:ing/ending
lnterest payment dates
Callable dates*
Amount outstanding, August 31, 2Al3
Interest rates
Maturity dates, seriallybeginning/ending
December 1/ June 1 December l/ June I
June 1,2007 June 1,2013
RefundingSeries 2005
$4,290,000
3.85%to 4.10o/o
June 1,
201412023
$465,000
4.2s%
June 1,
201712A18
$1,875,000
3.64% lo 4.104/o
June l,z}t4l20r8
Interest payment dates December 1/ June 1
Callable date* June 1,2014
*Or any date thereafter; callable at par plus accrued interest 1o the date of redernption. Series 2004term bond maturir:g on June I , 201 8, is subject to mandatory redemption by random selectionbeginning June 1,2017. Series 2005 term bonds maturing on June 1,2AI5, June 1,2018, andJnne 1, 202A, are subject to mandatory redemption by random selection beginning June 1, 2014,June 1,2016, and June 1,2019, respectively.
Annual Debt Service Rsquirernenfs
The schedule on the following page shows the annual debt service requirements to pay principal andinterest on general obligation boads outstanding at August 31,2A13.
21
Harris County Municipal Utility District No" 359Notes to Financial $taternents
August 3"1,2013
Year Principal lnterest Total
241424L52Arc24fi2018
2419-2023
$ 475,000490,000
510,000
745,AAA
780,000
3,630,000
264,730
247,11'228,397
248,763
,78,245510,950
n9,73A737,111
738,397
953,763
958,205
4,140,950
$ $
The bonds are payable from the p:cceeds of an ad valorem tax levied upon all prope*y within tleDistrict subject to taxation, withor:l limitation as to rate or amount.
Total
Boads votedBonds sold
Refunding bcnds votedRefunding b*nd auth*rization used
$ 6,630,000 $ 1,639,156 S 9,269,156
$ 20,790,000
13,780,000
2A,790,AA0
900,000
Note 5: Signlficant Bond Order and Commission Requirements
The Bond Orders require that the District levy and collect an ad valorem debt service tax sufficient topay interest and principal on bands when due- During the year ended August 31,2*13, the Districtlevied an ad valorem debt service tax at ths rate of $0.1950 per $100 of assessed valuation, whiehresulted in a tax levy of $446,440 oa the taxabl* valuation of $228,944,823 for the2Al2 lax year.Tle interest and principal requirements to be paid from the tax revenues are $916,698 of which$784,333 has been paid and $132,365 is due Decerber l,2Al3. The District will utilize contractualpayments &om the Ci[z and available debt servics fund resources to satisfy the requirements.
Note 6: Maintenance Taxes
At an eleclion held November 2,1993, voters authorized a maintenance tax not to exceed $0.50 per$100 valuation on all property within the Diskict subject to taxaticn. During the year endedAugnst 3r,2013, the Districl levied an ad valorem maintenance tax at the rats of $0.1 100 per $100of assessed valuatioa, which resulted in a tax levy of $251,837 on the taxable valuation *f$228,944,823 for the 2012 taxyear. The mailtenance tax is being used by the general fund to payexpeaditures of operating the District.
t2
Harris County Munlclpal Utility Dlstrict No. 359Hotes to Financial Statements
August 31, 2013
Note 7: Contract With the City of Houston
lrt 1992, the District's developer entered into a 40-year contract wi& the City, which was assigned bythe developer to the District on March 1, 1994, and amended in 1997, to provide water, wastewaterand storm sewer services to cuslomers of the District. Under the terms of the coctract, the Districtwill construct or purchase all facilities necessa:y to provide water supply, wastewater and drainageservices and convey those facilities to the Cfu. The Diskict retains a securif,y iaterest in thefacilities.
The City is the owner and operator of the facilities and is responsible for all operating costs. TheCity also bills all customers within the District's boundaries at rates comparable tc other in-Citycustcmers"
The eontract provides for monthly revenue paymcrts tc be paid to the District by the City based onnet revenues collected and also provides for annual tax payments to be paid to the District by theCity. Both types of payments are calculated based upon formulas set fo{h in the contract. Durirgthe current year, the District recorded reyenue of $566,685 from the City aad recorded $394,215 as a
receivable from the City.
Note 8: Risk Management
The District is exposed to various risks of loss related to torts; theft od damage to and destruction ofassets; errors and omissions; and natural disasters for which the District carries commercialinsurance" The District has not significantly reduced insurance coverage or had settlements whichexceeded coverago amounts in the past three fiscal years.
23
Required $upplementary lnformation
Harris County llllunicipal Utility District No. 359Budgetary Comparison Schedule - General Fund
Year Ended August 31,2013
OriginalBudget Actual
VarianceFavorable
{Unfavorable}
Reyenues
Properly taxes
Investment income
Other income
Total rsvenues
ExpendituresService operations:
Professional fees
Contracted services
Repairs and maintenance
Other expenditures
Total expenditures
Excess expenditures
Fund Balance, Beginning of Year
Fund Balalce, End of Year
243,535 181 121 22,414
9,247 72,341 63,r34
644,757 644 757
$ 613,964 $ 677,098 $ 63,134
$ $ $209,742
3,000
251,2312,146
85
41,489
(8s4)85
212,742 253.462 40,724
86,300
53,000
33,535
700
66,41',7
5r,43434,439
32,831
19,883
1,566
3,096(2,t31)
24
Harris County Municipal Utility District No. 359Notes to Required Supplementary lnformation
August 31, 2013
Budgets and Eudgetary Accounting
An annual operating budget is prepar*d for the general fund by the District's cansultants. The br:dgetreflecls resources expected to be received during the year and expenditures expected to be iacurred. TheBoard of Directors is req::ired to adopl the budget prior to the start of its fiscal year. The budget is not aspeading limitation (a legally restricted appropriatior). The ariginal budget of the general fund was notamended during fiscal 2013.
The District prepatos its annual operating budget on a basis consistent with acco::nting principlesge*erally accepted in the Unitsd States of America. The $udgetary Comparison Schedule - Ge*eralFund presenls the original anti revised budget amounts, if revised, compared to the actual arnounts ofrevenuss and expenditures for the eurrenl year.
25
Supplementary lnformation
Harris County Municipal Utility Oistrict No. 359Supplementary Schedules lncluded Within This Report
August 31,2813
(Schedules included are checked or explanatory notes provided {trr r:miued schedules.)
txl Notes Required by the Water Diskict Accounting ManualSee "Notes to Financial Statemurts," Pages 12-23
lxl Schedule of Services and Rates
lxl Schedule of Seneral Fund Expenditures
lxl Schedule of Temporary lnvestments
lxl Analysis of Taxes Levied and Receivable
lxl Schedule of Lcng-term Debt Service Requirements by Years
ixl Changes in Long-term Bonded Debt
tX] Comparative Schedulo of Revenues and Expenditu:es * General Fund and Debt Service Fund *Five Years
lX] Board Mexbers, Key Personnel and Consultants
to
Harris County Municipal Utility District No. 359Schedule of Services and Rates
Year Ended August 31, 2013
:. Services provided by the )istrict:
_Retail Waler Wholesale Water _Drainage-Retail
Vy'astewater Wholesale Wastewater -IrrigationParkslRecrealion -Fire Protection Security
_Solid lYaste/Garbage _Flood Control _Roads_Participates in joint venture, regional system an#or wastewater service (otler than emergency interconnect)X Other The Dis*icl provides water. wxtswater ald stotm sewer services to i1s customers throush a
contract wifh the City of Houston.
27
Harris County Municipal Utility Oistrlct No. 359Scledule of General Fund Expenditure$
Year Ended August 31, 2013
Personnel (intluding benefits)
Professional Fees
AuditingLegalEngineeringFinancial advisor
Purchased Services for ResaleBulk water and wastewater service purchases
Regional Water tr'ee
Contracted ServicesBookkeepingGeneral manager
Appraisal districlTax collectorSecurityOther contracted services
Utilities
Repairs and Maintenance
Administrative Expenditu res
Directors'feesOffice supplies
IasuranceOther administrative expendifures
Capital OutlayCapitalized assets
Expenditures aot eapitalized
Tap Connection f,xpenditures
Solid Waste Disposal
Fire Fighting
Parks and Recreation
Other Expenditures
$
$ 14,30046,809
5,308
15,530
35,904
10,200
1,7607,464
."""" 13,447
66,417
51,434
34,439
32,831
$ 181,12:Total expenditures
28
Harris County Municipal Utility District No. 359$chedule of Temporary lnvestments
August 3't, 2013
lnterestRate
MaturityDate
FaceAr*ount
Accruedlnterest
ReceivableGencral Fund
Certificates of Deposit
No. 1002111928
Nc. 1002329555
No.9009010231No.311,{,AA2822
No" 3216000020
No.3216000019No.4150186No.4150185
Detrt Service FandCsrtificates of Seposit
No.530851No. 303 124465
No.4150258N*.2003061
Capital Projects I'undCertificate of Depcsit
No.4150314
Totals
a3a%a3a%A35o/a
a3s%0.35%035%a3s%0.35%
0.45%435%0.95%432%
435%
a2111114
tzlt0l13tuzalt3aurTlt4a4t02tr4$/a5114a9DU13tazllt3
100,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
$$ 87
69
to63
t227
10s
105
450,000 544
t1/zAlnaznBfi4azlzBlt4*2128114
tltzt/t3
150,000
150,000
24*,040240,000
52,s
265
1,149
7
780,000 1,946
95,000 144
$ 1,325,000 $ 2,634
29
Harris County Municipal Utility District No. 359Analysis of Taxes Levied and Receivable
Year Ended August 31, 2013
MaintenanceTaxes
q s
DebtServiceTaxes
Receivable, Beginnirg of YearAdditions and corrections to prior years'taxes
Adjusted receivable, beginning of year
2Sl2 Original Tax LevyAdditicns and corrections
Adjusted tax levy
Total to be accounted for
Tax collections: CurrentyearPrior years
Receivable, end ofyear
Reeeivable, by Years2At22011
2010
2AA9
2008
204'7
2046
Rec*ivable, end ofyear
4,318
(608)14,790
(7,397)
) 7W
246,9974,846
9,393
437,*47
8,593
251,837 446,444
255,547
{249,129){2,142\
455,833
{441,637)(4,865)
s 4,316 $ 9,331
$ 2,748q47
,87165
136
84
94
$ 4,316 $ 9,331
$ 4,803
2,092469
445
s69
485
468
3A
Harris County Municipal Utility District No. 359Analysis of Taxes Levied and Receivable {Continued}
Year Ended August 31, 2013
2812 aoa1 2010 2009Property Valuations
Land
ImpravernentsPersonal properlyExemptions
Total property valuations
Tax }lates per $100 ValuationDebt service tax rates
Maintenance tax rates*
fi 228,944,923 $ 230,063,950 s 23A,278,7A4 $ 236,003,s30
$ 58,981,?70
171,427,177
2,349,451
{3,413,569)
$ 60,212,22A
17l,ggg,g27
3,095,051
$ 60,097,817
,71,562,89A
3,224,574
t4,5A2,577)
$ 65,886,994
175,047,75&
3,460,104(s.13 2,14&> (8.351 ,216\
$ 0.19s00.1 100
$ 0.2100
0.0950
0_220a
0.08s00.2150
0.0800
$ s
Total tax rates per S100 valuation $ 0.30s0 $ 0.3050 $ 0.30s0 $ 0.29s0
Tax Levy $ 698,2?7 $ 701,690 $ 702,346 $
Percent of Taxes Collected taTaxes Levied** 99% 99%
*Maximum tax rate approved by volers: 50.50 on November 2, 1993**Calculated as taxes collected far a tax year divided by taxes levied for that tax year
696,7A7
99% 99%
31
Harris County Municipal Utility District No. 359$chedule of Long-term Debt $ervlce Requirements by Years
August 31,2CI13
Series 1998
Due DuringFiscal Years
Ending August 31
PrincipalDue
June t
lnterest DueDecember 1,
June 1 Total
2014
2475
zAt62077
201 I
s$ 19,7$3
79,763
19,763
19,763
10,200
19,76319,763
79,763
244,76325A,2AA
$
225,044
24A,A0A
Totals $ 465,000 s 89,252 $ 554,252
32
Harris County Municipal Utility District No" 359Schedule of Long-term Debt Service Requirements by Years {Continued}
August 31, 2013
Refunding Series 2004
Oue DuringFiscalYears
Ending August 31
PrincipalDue
June I
lnt*rest }ue)ec*mber 1,
June { Total
201420152A16
24fi2AlB
ss 345,000
355,000
375,000
390,000
410,000
$ 1,875,000
72,974
60,55047 )77
32,800
16,810
417,97A
415,550
422,237
422,844
426,910
$
Totals $ 23A367 $ 2,105,36?
33
Harris County Municipal Utility District No. 359Schedule of Long-term Sebt Service Requirements by Years {Continued}
August 31,2413
Refunding Series 2005
CIue DuringFiscal Years
Ending August 31
PrincipalDue
June 1
lnterest OueDecember 1,
June t Total
20142075
2416
2017
2018
20192420
2A2t
2422
2423
$$ 130,000
135,000
135,000
I30,000i30,000390,000
390,000
910,000
950,000
990,000
$ 4,290,000
171,997
166,798
167,397
156,240
151,195
146,194
130,590
114,990
78,590
4A,5gA
3B1,gg7
301,798296,397
286,200
287,795s36,190
520,590
,,824,990l,*28,5901,030,590
s
Totals $ 1,318,537 p." - ." 5,608,537
34
Harris County Municipal Utility District No. 359$chedule of Long-term Debt Service Requirements by Years (Continued)
August 31, 2013
Annual Requirernents For All $eries
Due DuringFiscal Year*
Ending August 31
TotalPrincipal
Due
Totallnterest
Due
TotalPrincipal andlnterest Due
20142*t52*1674fi2018
24192A?0
2A2t
2AZ2
2*23
475,000
490,000
510,000
745,484
780,000
390,000
390,000
910,000
950,000
990,000
264,730
247,111228,397
2A8,763
fi8,245146,190
130,590
114,990
78,59440,590
'139,73A
737,111
738,397
953,763
958,205
536,190
520,590
l,a24,gga
1"028,590
1,030,590
s$$
Totals $ 6,630,000 $ 1,63&,156 $ 8,268,156
35
Harris County Municipal Utility District No. 359Changes in Long-term Bonded Debt
Year Ended August 31, 2013
Bond lssues
$eries 1998Refunding
Series 2004Refurding
$eries 2005 Totals
Interest rates 4.25Yo
December l/ December l/Dates interest payable June 1 Jule I
Maturi$ dates June l, June 1,
281712{l& 201412018
Bonds outstanding, beginning ofcurrentyear $ 650,000 $ 2,205,000
Retirements, principal
Bonds outstarding, eld ofcurrent year
Interest paid during current year
Paying ageat's name and address:
3.60o/oto 4.10o/o 3.91Yota 4.1AYo
Deeember 1lJune i
Jule 1,
2AU/2A23
$ 4,415,000
125,000
$ 7,274,CIAA
640"000185,000 330,000
$ 465,000 $ 1,875,000 $ 4,290,000 $ 6,630,000
q )7 A)\rc $ 84,355 _s___*l:g{s:* $ 288,655
Series 1998 - The Bank ofNew York Mellon Trust Comoanv" hl.A.. Dallas, Texas
Series 2004 - The Bank ofNew York Mellon Trust Cornpany, N.A., Dallas, TexasSeries 2005 - The Bank ofNew York Mellon Trust Company, N.A., Dal1as, Texas
Bond authority: RefundingBondsTax Bonds Other Bonds
Amount authorized by voters
Amount issued
Remaining to be issued
$ 20,790,000
$ 13,780.000
$ 7,010,000
Debt service fund cash aad temporary investrient balaacss as of August 31,2A13
Average annual debt service payment (prilcipal and interest) for remaining term of all debt:
0 $ 20,790.0000 $ 900,0000 $ 19,890,000
$ 1,053,538
$ 826.8r6
36
Harris County Municipal Utility District No. 359Comparative Schedule of Revenues and Expenditures * General fund
Five Years Ended August 31,
4mounts
2013 2A12 2011 2010 2009
Gen*r*l Fund
Ii.eyenacs
Property taxes
Penalty and inlerest
Investment iacome
Other income
Total revenues
Expenditurcs
Service operations:
P:ofessional fe*s
Contracted seryices
Sepairs al d maintena:rce
Other expenditures
Capilal r:utlay
Total expenditures
Excess revenues (expenditures)
Othcr Finaneing Sources
Lnterfund transfers in
Excex sources {uses)
Fund 3*lantc, Seginning ofYear
Fund 3ala*cc, Xld ofYsar
Totel Active Retail \Yater Connections
Total Aetive Rttail lUastewater Cor!€ctions
$ 251,231
2,1,46
85
3,186
25,071
5,056 5"855
11
129,5"70
2
1 3,590
$ 216,319 $ 196"044 $ 187,649 $
253,462 244,5?6 20 1,1 00 193.515 143,162
66,417
5 i "434
30,439
32,&31
99,89?
52,t3t32,702
49,321
91,657
51,354
44,490
30,140
70,119
50,694
30,455
29"'t37
6,340
72"420
49,914
39,3S5
30,1 12
181 t2l 234,059 21'1,241 t87.34s 101 431
72,341 i 0,517
t0,000
(r6,r4r) 6,17A
6,1'70
(4*,269)
t4e,269)1) 1,t1
604,757
24,517 (16,14:)
600,38 I584,240 594,211 642,480
$ 677,09S $ 644,7s? _s_____58189_
NiA
N/A
N/A
N/A
$ s943:1
N/A
N/A
N/A
N/A
N/A
NIA
Percent of Fund Total Revenues
2013 2012 204,, 20r0 2AAg
99.t % 88.4 %
1.3
10.3
97.5 %
100.0
97.4 o/a 90.5 %0.0
9.5
100.0
0.9
0.0
,< 3.0
0.0
100.0 100.0 100.0
26.2
lu.)12.0
13.0
40.8
/t,J
13.4
)n7
45.6
25.5
21.9
15.0
36.2
26.2
15.1
! 5.4
3.3
50.3
14.9
27.5
21.0
7:.5 9s.7 108.0 968 133.7
%4.3%,c( (8.0) % 5.2 7a {3}.7} 0/a
37
Harris County Municipal Utility District No. 359Cornparative Schedule of Revenues and Expenditures - Debt Service Fund
Five Years Ended August 31,
Amounts
2013 2012 2014 2o1C 200s
Dcbt Scrviee Fund
Revenues
Propedy taxes
Penalty arrd interest
lnvestrnent arcoms
City of Xouston rebates
Tolal revenues
Expeaditures
Cl:rrent:
Professional fees
Contracled services
0tier expendilures
Debt service:
Principal retiremert
lnterest and fees
Total expendi[.res
Excess revelues
Suld B*lance, Beginning ofYear
Surd Batalcen End ofYear
$ M6,502
8,444
6;350
5A&"428
478,503
7,7&4
7,791
550,044
507,8"10
11,053
r 1"093
464,496
545,'',/2
9,436
15,094
503,206
542"609
19,546
26""147
438,758
$ $ $ $
969,724 1,044,122 ,98,5t2 r,033,308 \427,6s9
2,85 I
19,17A
6,390
1,784
16,0?S
7,258
615,000
312,426
3"462
20,022
14,262
1, A'))
t9.144
9"780
3,602
18,932
13" 101
640,000
290"040
5r5,000
334,57&
570,000
356,1 59
550,000
375,343
9s8.45 I 952,546 96'1,324 ,s8,505 960,978
11,273
1.356.287
91,s76 23,1 88 74,&03
,,264,711 t,241,523 ,,,t66,724
66,68 1
$ 1,166,720$ 1.36?.560 s 1.3s6.287 $ 1,264,711 $ 1,241,s23
Percent of Fund Total Revenues
2A13 2412 z0a1 2010 2009
46.0 %
0.9
4.7
52.4
48.9 %
a91.5
4*7
51"3 %
1"1
1 t
46.5
48.9 %0.E
1.5
48.'7
52.8 %1.9
2.6
42.1
r00.0 t00.0 t00.0 100.0 100.0
0.3
2.0
4.7
U^J
7.0
1.4
0.3
1.9
0.9
0.4
:,8
l1
0.2
t.5
4.7
6s.9 58.9
29.9
60.1
33.8
53.s
36.514.529.9
92.&988 91.2 97.6
1.2 o/a 8.8 % 2.4 % 72 %
93.5
6.s %
38
Harris County Municipal Utility District No. 359Board Members, Key Personnel and Consultants
Year Inded August 31, 2013
Complete District mailing address :
Districl business telephone number:
Harris County Municipal Utility District No. 359
c/o Schwartz, ?age & Harding, L.L.P.1300 Post Oak Boulevard, Suite 1400
Houston, Texas 77056'713.623"4s31
Submission date of ths most recsnt District Registration Form
{TV/C Sections 36.054 and 49.054):
Limit on fees of office that a director may receive during a fiscal year:
May 72,2A12
$ 7,200
Soard Members
Term ofOffice
Eleetad &Expires
ExpenseReimbursements
Title atYear-endFges*
M. Gracie Jones
Barbara Trebino
Wanda Kras
Elected
05110-
05/14
Elected
ayn-a5lt6
Appcintedas/n-05114
$ 1,950
2,254
$ 494 President
Vic*President
Secretary
AssistantSecretary
Assistant
Secretary
7,488
3,191
123
3,000
Ann Ambrosi
Elected
a9n-0s/16 1,500
Zu Broadwater
Elected
05110-
05/14 1,500
*Fees are the amounts actually paid to a director during the District's fiscal year.
124
39
Harris County Municipal Utility District No. 359Board Members, Key Personnel and Consultants {Ccntinued}
Year Ended August 31,2413
Consultants Date Hired
Fees andExpense
Reimbursements Title
BKD, LLP
First Southwest Company
a8l]q194
1UA6lA2
Legislative
Action
$ 14,300
5,619
17,229
2,851
5,308
51,189
19,201
Auditor
FinancialAdvisar
Appraiser
Bookkeeper
DelinquentTax Attomey
Ingineer
Attarney
Tax AssessorlCollector
Bookkeepers
0
Harris Counly Appraisal District
Municipal Accounts & Consulting, L.P a7129193
Perdue,3randon, Fielder, Collins & Mott, L.L.P. a4t*196
R.G. Miller Engiaeers, Inc. 08lrqlq4
Schwartz, ?age & Xarding, L.L.P. a7129193
Wheeler & Associates, Inc" wasla7
lnvestment Officers
Mark M. Burton and Ghia Lewis 08104/04 0
40