harris county municipal utility district no. 275 …...2020/02/27 · 91275-002 461679v1 harris...

91275-002 461679v1

Harris County Municipal Utility District No. 275

Information Required by Section 26.18, Texas Tax Code

Date: February 27, 2020

(1) Name of each member of the governing body:

Geoffrey A. LongTrent ConnerGary WallaceSusan SpicerNancy Speich

(2) Mailing address, e-mail address, and telephone number:

2727 Allen Parkway, Suite 1100Houston, Texas [email protected]

(3) Official contact information for each member of the governing body:

Same as Item (2) above.

(4) District’s budget for the preceding two years:

See attached budgets for the fiscal years ending:August 31, 2018August 31, 2019

(5) Proposed or adopted budget for the current year:

See attached budget for the fiscal year ending:August 31, 2020

(6) Change in amount of District budget from the preceding year to current year, by dollaramount and percentage:

$62,500 less or 5.927% decrease

(7) Amount of property tax revenue budgeted for maintenance and operations for thepreceding two years and the current year:

See attached budgets.

91275-002 461679v1

(8) Amount of property tax revenue budgeted for debt service for the preceding two years

and the current year:

The District does not budget for debt service.

(9) Tax rate for maintenance and operations adopted by the taxing unit for the preceding two

years:

2019 $0.752018 $0.80

(10) The tax rate for debt service adopted by the taxing unit for the preceding two years:

2019 $0.002018 $0.00

(11) This information required by Section 26.18 is applicable only to school districts.

(12) Tax rate for maintenance and operations proposed by the taxing unit for the current year:

As of the date of the report, no proposed tax rate has been established for the current year.

(13) Tax rate for debt service proposed by the taxing unit for the current year:

As of the date of the report, no proposed tax rate has been established for the current year.

(14) This information required by Section 26.18 is applicable only to school districts.

(15) The most recent financial audit of the District.

See attached.

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AUGUST'1, 2018 HARRIS COUNTY MUD 275OPERATING BUDGETFYE 8-31-19

REVENUE

WATER REVENUE $50,000.00j SEWER REVENUE $95,000.00

PENALTY AND INTEREST $5,000.00NHCRWA SURCHARGE $140,000.00

I MAINTENANCE TAX $740,000.00I INSPECTIONS $6,500.00

INTEREST INCOME $18,000.00

$1,054,500.00

EXPENDITURES

DIRECTORS FEES $14,000.00OPERATOR FEES $20,000.00REPAIRS AND MAINTENANCE $175,000.00OFFICE EXPENSE $2,000.00LAB $5,000.00UTILITIES $25,000.00LEGAL $50,000.00LEGAL - ELECTRONIC RECORDS GONV $12,000.00ENGINEERING $18,000.00BOOKKEEPING $17,000.00INSURANCE . $7,500.00PERMITS $500.00AUDIT $18,000.00CHEMICALS $5,000.00PURCHASED SEWER $45,000.00PJPA CAPITAL EXPENDITURES $7,500.00SEWER INSPECTIONS $4,500.00TELEPHONE $2,500.00MISC. $10,000.00PAYROLL TAXES $1,070.00NHCRWA ASSESSMENTS $150,000.00NHCRWA CAP CONTRIB CREDIT . ($45,500.00)NHCRWA CHLORAM1NE CONV CREDIT ($23,500.00)ELECTION $0.00

$520,570.00

EXCESS REV (EXP) FROM OPERATIONS $533,930.00

CAPITAL EXPENDITURES:WATER PLANT MCC ($215,000.00)LIFT STATION ($37,000.00)WATER PLANT ($67,800.00)

EXCESS REVENUES (EXPENSES) $214,130.00

JULY 3, 2019 HARRIS COUNF^ MUD 275OPERATING BUDGETFYE 8-31-20

REVENUE

WATER REVENUE $50,000.00SEWER REVENUE $95,000.00PENALTY AND INTEREST $5,000.00NHCRWA SURCHARGE $140,000.00MAINTENANCE TAX $665,000.00INSPECTIONS $12,000.00INTEREST INCOME $25,000,00

$992,000.00

EXPENDITURES

DIRECTORS FEES $14,000.00OPERATOR FEES $20,000.00REPAIRS AND MAINTENANCE $175,000.00OFFICE EXPENSE $2,000.00LAB $5,000.00UTILITIES $20,000.00LEGAL $50,000.00LEGAL - ELECTRONIC RECORDS CONV $3,000.00ENGINEERING $18,000.00BOOKKEEPING $17,000.00INSURANCE $8,000.00PERMITS $500.00AUDIT $18,500.00CHEMICALS $2,500.00PURCHASED SEWER $50,000.00PJPA CAPITAL EXPENDITURES $7,500.00SEWER INSPECTIONS $10,000,00TELEPHONE $3,000.00MISC. $10,000.00PAYROLL TAXES $1,070,00NHCRWA ASSESSMENTS $150,000.00NHCRWA CAP CONTRIB CREDIT ($45,500.00)NHCRWA CHLORAMINE CONV CREDIT ($23.500.00)ELECTION $10,000.00

$526,070.00

EXCESS REV (EXP) FROM OPERATIONS $465,930.00

CAPITAL IXPENDITURES:LIFT STATION ($39,500.00)WATER PLANT ($113,000.00)

EXCESS REVENUES (EXPENSES) $313,430.00


Harris County, Texas

Independent Auditor's Report and Financial Statements

August 31, 2019

BKD CPAs & Advisors

Harris County Municipal Utility District No. 275 August 31, 2019

Contents

Independent Auditor's Report ............................................................................................ 1

Management's Discussion and Analysis ........................................................................... 3

Basic Financial Statements

Statement of Net Position and Governmental Funds Balance Sheet ............................................... 8

Statement of Activities and Governmental Funds Revenues,

Expenditures and Changes in Fund Balances .......................................................................... 10

Notes to Financial Statements ........................................................................................................ 11

Required Supplementary Information

Budgetary Comparison Schedule – General Fund ......................................................................... 24

Notes to Required Supplementary Information ............................................................................. 25

Other Information

Other Schedules Included Within This Report .............................................................................. 26

Schedule of Services and Rates ..................................................................................................... 27

Schedule of General Fund Expenditures ........................................................................................ 28

Schedule of Temporary Investments ............................................................................................. 29

Analysis of Taxes Levied and Receivable ..................................................................................... 30

Comparative Schedule of Revenues and Expenditures – General Fund

and Debt Service Fund – Five Years ....................................................................................... 32

Board Members, Key Personnel and Consultants .......................................................................... 34

Independent Auditor's Report

Board of Directors


Harris County, Texas

We have audited the accompanying financial statements of the governmental activities and each major

fund of Harris County Municipal Utility District No. 275 (the District), as of and for the year ended

August 31, 2019, and the related notes to the financial statements, which collectively comprise the

District's basic financial statements listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; this includes

the design, implementation and maintenance of internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement, whether due to fraud or

error.

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted

our audit in accordance with auditing standards generally accepted in the United States of America.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether

the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the financial statements. The procedures selected depend on the auditor's judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity's preparation

and fair presentation of the financial statements in order to design audit procedures that are appropriate in

the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's

internal control. Accordingly, we express no such opinion. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of significant accounting estimates

made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinions.

BKD CPAs & Advisors

2700 Post Oak Boulevard, Suite 1500 I Houston, TX 77056-5829

713.499.4600 I Fax 713.499.4699 I bkd.com

~PRAXITV ~~ Empower1n1 8u11n .. , Globally

Board of Directors


Page 2

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the

respective financial position of the governmental activities and each major fund of the District as of

August 31, 2019, and the respective changes in financial position thereof for the year then ended in

accordance with accounting principles generally accepted in the United States of America.

Other Matters


Accounting principles generally accepted in the United States of America require that the management's

discussion and analysis and budgetary comparison schedule listed in the table of contents be presented to

supplement the basic financial statements. Such information, although not part of the basic financial

statements, is required by the Governmental Accounting Standards Board, who considers it to be an

essential part of financial reporting for placing the basic financial statements in an appropriate

operational, economic or historical context. We have applied certain limited procedures to the required

supplementary information in accordance with auditing standards generally accepted in the United States

of America, which consisted of inquiries of management about the methods of preparing the information

and comparing the information for consistency with management's responses to our inquiries, the basic

financial statements and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures

do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively

comprise the District's basic financial statements. The other information as listed in the table of contents

is presented for purposes of additional analysis and is not a required part of the basic financial statements.

Such information has not been subjected to the auditing procedures applied in the audit of the basic

financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Houston, Texas

February 21, 2020

Harris County Municipal Utility District No. 275 Management's Discussion and Analysis

August 31, 2019

3

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the District's basic financial statements.

The District's basic financial statements are comprised of three components: 1) government-wide financial

statements, 2) fund financial statements and 3) notes to financial statements. This report also contains

supplementary information required by the Governmental Accounting Standards Board and other information

required by the District's state oversight agency, the Texas Commission on Environmental Quality (the

Commission).

In accordance with required reporting standards, the District reports its financial activities as a special-purpose

government. Special-purpose governments are governmental entities which engage in a single governmental

program, such as the provision of water, sanitary sewer and drainage services. Other activities, such as the

provision of recreation facilities and solid waste collection, are minor activities and are not budgeted or

accounted for as separate programs. The financial statements of special-purpose governments combine two

types of financial statements into one statement. These two types of financial statements are the

government-wide financial statements and the fund financial statements. The fund financial statements are

presented on the left side of the statements, a column for adjustments is to the right of the fund financial

statements and the government-wide financial statements are presented to the right side of the adjustments

column. The following sections describe the measurement focus of the two types of statements and the

significant differences in the information they provide.

Government-wide Financial Statements

The focus of government-wide financial statements is on the overall financial position and activities of the

District. The District's government-wide financial statements include the statement of net position and

statement of activities, which are prepared using accounting principles that are similar to commercial

enterprises. The purpose of the statement of net position is to attempt to report all of the assets, liabilities, and

deferred inflows and outflows of resources of the District. The District reports all of its assets when it acquires

or begins to maintain the assets and reports all of its liabilities when they are incurred.

The difference between the District's assets, liabilities, and deferred inflows and outflows of resources is labeled

as net position and this difference is similar to the total stockholders' equity presented by a commercial

enterprise.

The purpose of the statement of activities is to present the revenues and expenses of the District. Again, the

items presented on the statement of activities are measured in a manner similar to the approach used by a

commercial enterprise in that revenues are recognized when earned or established criteria are satisfied and

expenses are reported when incurred by the District. All changes in net position are reported when the

underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues

are reported even when they may not be collected for several months or years after the end of the accounting

period and expenses are recorded even though they may not have used cash during the current year.

Harris County Municipal Utility District No. 275 Management's Discussion and Analysis (Continued)

August 31, 2019

4

Although the statement of activities looks different from a commercial enterprise's statement of income, the

financial statement is different only in format, not substance. Whereas the bottom line in a commercial

enterprise is its net income, the District reports an amount described as change in net position, essentially the

same thing.

Fund Financial Statements

Unlike government-wide financial statements, the focus of fund financial statements is directed to specific

activities of the District rather than the District as a whole. Except for the general fund, a specific fund is

established to satisfy managerial control over resources or to satisfy finance-related legal requirements

established by external parties or governmental statutes or regulations.

Governmental Funds

Governmental-fund financial statements consist of a balance sheet and a statement of revenues, expenditures

and changes in fund balances and are prepared on an accounting basis that is significantly different from that

used to prepare the government-wide financial statements.

In general, these financial statements have a short-term emphasis and, for the most part, measure and account for

cash and other assets that can easily be converted into cash. For example, amounts reported on the balance sheet

include items such as cash and receivables collectible within a very short period of time, but do not include

capital assets such as land and water, sewer and drainage systems. Fund liabilities include amounts that are to

be paid within a very short period after the end of the fiscal year. The difference between a fund's assets,

liabilities, and deferred inflows and outflows of resources is labeled the fund balance and generally indicates the

amount that can be used to finance the next fiscal year's activities. Likewise, the operating statement for

governmental funds reports only those revenues and expenditures that were collected in cash or paid with cash,

respectively, during the current period or very shortly after the end of the fiscal year.

Because the focus of the government-wide and fund financial statements is different, there are significant

differences between the totals presented in these financial statements. For this reason, there is an analysis in the

notes to financial statements that describes the adjustments to fund balances to arrive at net position presented in

the governmental activities column on the statement of net position. Also, there is an analysis in the notes to

financial statements that reconciles the total change in fund balances for all governmental funds to the change in

net position, as reported in the governmental activities column in the statement of activities.

Notes to Financial Statements

The notes to financial statements provide additional information that is essential to a full understanding of the

data found in the government-wide and fund financial statements.


August 31, 2019

5

Financial Analysis of the District as a Whole

The District's overall financial position and activities for the past two years are summarized as follows, based on

the information included in the government-wide financial statements.

2019 2018

Current and other assets 2,870,126$ 2,692,142$

Capital assets 853,041 673,749

Total assets 3,723,167$ 3,365,891$

Other liabilities 54,994$ 180,378$

Net position:

Net investment in capital assets 853,041 673,749

Restricted 50,282 50,260

Unrestricted 2,764,850 2,461,504

Total net position 3,668,173$ 3,185,513$

Summary of Net Position

The total net position of the District increased by $482,660, or about 15 percent. The majority of the increase in

net position is related to property taxes and charges for services exceeding service operations expenses.

2019 2018

Revenues:

Property taxes 652,892$ 712,879$

Charges for services 296,346 270,380

Other revenues 204,251 137,084

Total revenues 1,153,489 1,120,343

Summary of Changes in Net Position


August 31, 2019

6

2019 2018

Summary of Changes in Net Position (Continued)

Expenses:

Services 611,185$ 583,422$

Depreciation 59,644 43,089

Total expenses 670,829 626,511

Change in net position 482,660 493,832

Net position, beginning of year 3,185,513 2,691,681

Net position, end of year 3,668,173$ 3,185,513$

Financial Analysis of the District's Funds

The District's combined fund balances as of the end of the fiscal year ended August 31, 2019, were $1,996,657,

an increase of $329,231 from the prior year.

The general fund's fund balance increased by $329,209, primarily due to property taxes and service revenues

being greater than service operation expenditures.

The debt service fund's fund balance remained the same.

The capital projects fund's fund balance increased by $22 due to investment income in the current year.

General Fund Budgetary Highlights

There were several differences between the final budgetary amounts and actual amounts. The major differences

between budget and actual were due to property taxes revenues and capital outlay expenditures being less than

anticipated, as well as investment income revenues and contracted services expenditures being greater than

anticipated. In addition, tap connection revenue and expenditures were not budgeted in the current year. The

fund balance as of August 31, 2019, was expected to be $1,824,796 and the actual end-of-year fund balance was

$1,946,375.


August 31, 2019

7

Capital Assets and Related Debt

Capital Assets

Capital assets held by the District at the end of the current and previous fiscal years are summarized below:

2019 2018

Land and improvements 10,369$ 10,369$

Construction in progress 134,147 226,288

Water facilities 415,203 113,816

Wastewater facilities 293,322 323,276

Total capital assets 853,041$ 673,749$

Capital Assets (Net of Accumulated Depreciation)

During the current year, additions to capital assets were as follows:

Motor control center project 190,071$

Construction in progress related to generator project at the Ponderosa Plant 48,865

Total additions to capital assets 238,936$

Debt

At August 31, 2019, the District had $5,150,000 of unlimited tax bonds authorized, but unissued, for the

purposes of acquiring, constructing and improving the water, sanitary sewer and drainage systems within the

District.

Other Relevant Factors

Relationship to the City of Houston

Under existing Texas law, since the District lies wholly within the extraterritorial jurisdiction of the City of

Houston (the City), the District must conform to the City ordinance consenting to the creation of the District. In

addition, the District may be annexed by the City without the District's consent. If the District is annexed, the

City must assume the District's assets and obligations (including the bonded indebtedness) and abolish the

District within 90 days.

Harris County Municipal Utility District No. 275 Statement of Net Position and Governmental Funds Balance Sheet

August 31, 2019

See Notes to Financial Statements 8

Debt Capital Statement

General Service Projects of Net

Fund Fund Fund Total Adjustments Position

Assets

Cash 91,145$ -$ -$ 91,145$ -$ 91,145$

Certificates of deposit 439,193 - 50,173 489,366 - 489,366

Short-term investments 1,434,129 101 - 1,434,230 - 1,434,230

Receivables:

Property taxes 14,396 - - 14,396 - 14,396

Service accounts 25,647 - - 25,647 - 25,647

Accrued penalty and interest - - - - 6,024 6,024

Accrued interest 780 - 8 788 - 788

Due from North Harris County

Regional Water Authority 7,355 - - 7,355 798,055 805,410

Operating deposit 3,120 - - 3,120 - 3,120

Capital assets (net of accumulated

depreciation):

Land and improvements - - - - 10,369 10,369

Construction in progress - - - - 134,147 134,147

Infrastructure - - - - 708,525 708,525

Total assets 2,015,765$ 101$ 50,181$ 2,066,047$ 1,657,120$ 3,723,167$

Harris County Municipal Utility District No. 275 Statement of Net Position and Governmental Funds Balance Sheet (Continued)

August 31, 2019



General Service Projects of Net

Fund Fund Fund Total Adjustments Position

Liabilities

Accounts payable 51,929$ -$ -$ 51,929$ -$ 51,929$

Customer deposits 2,645 - - 2,645 - 2,645

Due to others 420 - - 420 - 420

Total liabilities 54,994 0 0 54,994 0 54,994

Deferred Inflows of Resources

Deferred property tax revenues 14,396 0 0 14,396 (14,396) 0

Fund Balances/Net Position

Fund balances:

Restricted:

Unlimited tax bonds - 101 - 101 (101) -

Water, sewer and drainage - - 50,181 50,181 (50,181) -

Assigned, operating deposit 3,120 - - 3,120 (3,120) -

Unassigned 1,943,255 - - 1,943,255 (1,943,255) -

Total fund balances 1,946,375 101 50,181 1,996,657 (1,996,657) 0

Total liabilities, deferred inflows of

resources and fund balances 2,015,765$ 101$ 50,181$ 2,066,047$

Net position:

Net investment in capital assets 853,041 853,041

Restricted for debt service 101 101

Restricted for capital projects 50,181 50,181

Unrestricted 2,764,850 2,764,850

Total net position 3,668,173$ 3,668,173$

Harris County Municipal Utility District No. 275 Statement of Activities and Governmental Funds Revenues,

Expenditures and Changes in Fund Balances

Year Ended August 31, 2019



General Service Projects of

Fund Fund Fund Total Adjustments Activities

Revenues

Property taxes 653,537$ -$ -$ 653,537$ (645)$ 652,892$

Water service 46,046 - - 46,046 - 46,046

Sewer service 104,065 - - 104,065 - 104,065

Regional water fee 146,235 - - 146,235 - 146,235

Penalty and interest 10,523 - - 10,523 (523) 10,000

Tap connection and inspection fees 115,825 - - 115,825 - 115,825

Investment income 103,099 - 22 103,121 (24,695) 78,426

Total revenues 1,179,330 0 22 1,179,352 (25,863) 1,153,489

Expenditures/Expenses

Service operations:

Purchased services 53,412 - - 53,412 - 53,412

Regional water fee - surface water 142,238 - - 142,238 - 142,238

Regional water fee - pumpage fee 1,052 - - 1,052 - 1,052

Professional fees 101,730 - - 101,730 - 101,730

Contracted services 50,355 - - 50,355 - 50,355

Utilities 14,237 - - 14,237 - 14,237

Repairs and maintenance 167,412 - - 167,412 - 167,412

Other expenditures 35,574 - - 35,574 - 35,574

Tap connections 45,175 - - 45,175 - 45,175

Capital outlay 238,936 - - 238,936 (238,936) -

Depreciation - - - - 59,644 59,644

Total expenditures/expenses 850,121 0 0 850,121 (179,292) 670,829

Excess of Revenues O ver Expenditures 329,209 - 22 329,231 (329,231)

Change in Net Position 482,660 482,660

Fund Balances/Net Position

Beginning of year 1,617,166 101 50,159 1,667,426 - 3,185,513

End of year 1,946,375$ 101$ 50,181$ 1,996,657$ 0$ 3,668,173$

Harris County Municipal Utility District No. 275 Notes to Financial Statements

August 31, 2019

11

Note 1: Nature of Operations and Summary of Significant Accounting Policies

Harris County Municipal Utility District No. 275 (the District) was created by an order of the Texas

Water Commission, now known as the Texas Commission on Environmental Quality (the

Commission), effective July 16, 1986, in accordance with the Texas Water Code, Chapter 54. The

District operates in accordance with Chapters 49 and 54 of the Texas Water Code and is subject to

the continuing supervision of the Commission. The principal functions of the District are to finance,

construct, own and operate waterworks, wastewater and drainage facilities and to provide such

facilities and services to the customers of the District.

The District is governed by a Board of Directors (the Board) consisting of five individuals who are

residents or owners of property within the District and are elected by voters within the District. The

Board sets the policies of the District. The accounting and reporting policies of the District conform

to accounting principles generally accepted in the United States of America for state and local

governments, as defined by the Governmental Accounting Standards Board. The following is a

summary of the significant accounting and reporting policies of the District:

Reporting Entity

The accompanying government-wide financial statements present the financial statements of the

District. There are no component units that are legally separate entities for which the District is

considered to be financially accountable. Accountability is defined as the District's substantive

appointment of the voting majority of the component unit's governing board. Furthermore, to be

financially accountable, the District must be able to impose its will upon the component unit or there

must be a possibility that the component unit may provide specific financial benefits to, or impose

specific financial burdens on, the District.

Government-wide and Fund Financial Statements

In accordance with required reporting standards, the District reports its financial activities as a

special-purpose government. Special-purpose governments are governmental entities which engage

in a single governmental program, such as the provision of water, wastewater, drainage and other

related services. The financial statements of special-purpose governments combine two types of

financial statements into one statement. These two types of financial statements are the

government-wide financial statements and the fund financial statements. The fund financial

statements are presented with a column for adjustments to convert to the government-wide financial

statements.

The government-wide financial statements report information on all of the activities of the District.

As a general rule, the effect of interfund activity has been eliminated from the government-wide

financial statements. Governmental activities generally are financed through taxes, charges for

services and intergovernmental revenues. The statement of activities reflects the revenues and

expenses of the District.


August 31, 2019

12

The fund financial statements provide information about the District's governmental funds. Separate

statements for each governmental fund are presented. The emphasis of fund financial statements is

directed to specific activities of the District.

The District presents the following major governmental funds:

General Fund – The general fund is the primary operating fund of the District which accounts for all

financial resources not accounted for in another fund. Revenues are derived primarily from property

taxes, 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 interest related costs, as well as

the financial resources being accumulated 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 Balances – Governmental Funds

The fund balances for the District's governmental funds can be displayed in up to five components:

Nonspendable – Amounts that are not in a spendable form or are required to be maintained intact.

Restricted – Amounts that can be spent only for the specific purposes stipulated by external resource

providers, constitutionally or through enabling legislation. Restrictions may be changed or lifted

only with the consent of resource providers.

Committed – Amounts that can be used only for the specific purposes determined by resolution of

the Board. Commitments may be changed or lifted only by issuance of a resolution by the District's

Board.

Assigned – Amounts intended to be used by the District for specific purposes as determined by

management. In governmental funds other than the general fund, assigned fund balance represents

the amount that is not restricted or committed. This indicates that resources in other governmental

funds are, at a minimum, intended to be used for the purpose of that fund.

Unassigned – The residual classification for the general fund and includes all amounts not contained

in the other classifications.

The District considers restricted amounts to have been spent when an expenditure is incurred for

purposes for which both restricted and unrestricted fund balance is available. The District applies

committed amounts first, followed by assigned amounts, and then unassigned amounts when an

expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance

classifications could be used.


August 31, 2019

13

Measurement Focus and Basis of Accounting

Government-wide Financial Statements

The government-wide financial statements are reported using the economic resources measurement

focus and accrual basis of accounting. Revenues are recorded when earned and expenses are

recorded at the time liabilities are incurred, regardless of the timing of related cash flows.

Nonexchange transactions, in which the District receives (or gives) value without directly giving (or

receiving) equal value in exchange, include property taxes and donations. Recognition standards are

based on the characteristics and classes of nonexchange transactions. Revenues from property taxes

are recognized in the period for which the taxes are levied. Intergovernmental revenues are

recognized as revenues, net of estimated refunds and uncollectible amounts, in the accounting period

when an enforceable legal claim to the assets arises and the use of resources is required or is first

permitted. Donations are recognized as revenues, net of estimated uncollectible amounts, as soon as

all eligibility requirements imposed by the provider have been met. Amounts received before all

eligibility requirements have been met are reported as liabilities.

Fund Financial Statements

Governmental funds are reported using the current financial resources measurement focus and the

modified accrual basis of accounting. With this measurement focus, only current assets and

liabilities are generally included on the balance sheet. The statement of governmental funds

revenues, expenditures and changes in fund balances presents increases (revenues and other

financing sources) and decreases (expenditures and other financing uses) in spendable resources.

General capital asset acquisitions are reported as expenditures and proceeds of long-term debt are

reported as other financing sources. Under the modified accrual basis of accounting, revenues are

recognized when both measurable and available. The District considers revenues reported in the

governmental funds to be available if they are collectible within 60 days after year-end. Principal

revenue sources considered susceptible to accrual include taxes, charges for services and investment

income. Other revenues are considered to be measurable and available only when cash is received

by the District. Expenditures are recorded when the related fund liability is incurred, except for

principal and interest on general long-term debt, which are recognized as expenditures when

payment is due.

Deferred Outflows and Inflows of Resources

A deferred outflow of resources is a consumption of net position that is applicable to a future

reporting period and a deferred inflow of resources is an acquisition of net position that is applicable

to a future reporting period.


August 31, 2019

14

Interfund Transactions

Transfers from one fund to another fund are reported as interfund receivables and payables if there is

intent 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 the

fund through which the resources are to be expended.

Pension Costs

The District does not participate in a pension plan and, therefore, has no pension costs.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted

in the United States of America requires management to make estimates and assumptions that affect

the reported amounts of assets, liabilities, and deferred inflows and outflows of resources and

disclosure of contingent assets and liabilities at the date of the financial statements and the reported

amounts of revenues and expenses/expenditures during the reporting period. Actual results could

differ from those estimates.

Investments and Investment Income

Investments in certificates of deposit, mutual funds, U.S. Government and agency securities, and

certain pooled funds, which have a remaining maturity of one year or less at the date of purchase, are

recorded at amortized cost. All other investments are carried at fair value. Fair value is determined

using quoted market values.

Investment income includes dividends and interest income and the net change for the year in the fair

value of investments carried at fair value. Investment income is credited to the fund in which the

investment is recorded.

Property Taxes

An appraisal district annually prepares appraisal records listing all property within the District and

the appraised value of each parcel or item as of January 1. Additionally, on January 1, a tax lien

attaches to property to secure the payment of all taxes, penalty and interest ultimately imposed for

the year on the property. After the District receives its certified appraisal roll from the appraisal

district, the rate of taxation is set by the Board of the District based upon the aggregate appraisal

value. Taxes are due and payable October 1 or when billed, whichever is later, and become

delinquent after January 31 of the following year.


August 31, 2019

15

In the governmental funds, property taxes are initially recorded as receivables and deferred inflows

of resources at the time the tax levy is billed. Revenues recognized during the fiscal year ended

August 31, 2019, include collections during the current period or within 60 days of year-end related

to the 2018 and prior years' tax levies.

In the government-wide statement of net position, property taxes are considered earned in the budget

year for which they are levied. For the District's fiscal year ended August 31, 2019, the 2018 tax

levy is considered earned during the current fiscal year. In addition to property taxes levied, any

delinquent taxes are recorded net of amounts considered uncollectible.

Capital Assets

Capital assets, which include property, plant, equipment and infrastructure, are reported in the

government-wide financial statements. Capital assets are defined by the District as assets with an

individual cost of $5,000 or more and an estimated useful life of two years or more. Purchased or

constructed capital assets are reported at cost or estimated historical cost. Donated capital assets are

recorded at their estimated acquisition value at the date of donation.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially

extend the asset lives are not capitalized.

Capital assets are depreciated using the straight-line method over their estimated useful lives as

follows:

Years

Water production and distribution facilities 10-45

Wastewater collection and treatment facilities 10-45

Net Position/Fund Balances

Fund balances and net position are reported as restricted when constraints placed on them are either

externally imposed by creditors, grantors, contributors, or laws or regulations of other governments,

or are imposed by law through constitutional provisions or enabling legislation.

When both restricted and unrestricted resources are available for use, generally, it is the District's

policy to use restricted resources first.


August 31, 2019

16

Reconciliation of Government-wide and Fund Financial Statements

Amounts reported for net position of governmental activities in the statement of net position and

fund balances in the governmental funds balance sheet are different because:

Capital assets used in governmental activities are not financial resources

and are not reported in the funds. 853,041$

Amounts due from the North Harris County Regional Water Authority

(the Authority) are not receivable in the current period and are not

reported in the funds. 798,055

Property tax revenue recognition and the related reduction of deferred

inflows of resources are subject to availability of funds in the fund

financial statements. 14,396

Penalty and interest on delinquent taxes is not receivable in the current

period and is not reported in the funds. 6,024

Adjustment to fund balances to arrive at net position. 1,671,516$

Amounts reported for change in net position of governmental activities in the statement of activities

are different from change in fund balances in the governmental funds statement of revenues,

expenditures and changes in fund balances because:

Change in fund balances. 329,231$

Governmental funds report capital outlays as expenditures. However, for

government-wide financial statements, the cost of capitalized assets is

allocated over their estimated useful lives and reported as depreciation

expense. This is the amount by which capital outlay expenditures

exceeds depreciation expense in the current period. 179,292

Revenues collected in the current year, which have previously been

reported in the statement of activities, are reported as revenues in

the governmental funds. (25,863)

Change in net position of governmental activities. 482,660$


August 31, 2019

17

Note 2: Deposits, Investments and Investment Income

Deposits

Custodial credit risk is the risk that, in the event of a bank failure, a government's deposits may not

be returned to it. The District's deposit policy for custodial credit risk requires compliance with the

provisions 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 instrumentalities of the State of

Texas; or certain collateralized mortgage obligations directly issued by a federal agency or

instrumentality of the United States, the underlying security for which is guaranteed by an agency or

instrumentality of the United States.

At August 31, 2019, none of the District's bank balances were exposed to custodial credit risk.

Investments

The District may legally invest in obligations of the United States or its agencies and

instrumentalities, direct obligations of Texas or its agencies or instrumentalities, collateralized

mortgage obligations directly issued by a federal agency or instrumentality of the United States, the

underlying security for which is guaranteed by an agency or instrumentality of the United States,

other obligations guaranteed as to principal and interest by the State of Texas or the United States or

their agencies and instrumentalities, including obligations that are fully guaranteed or insured by the

Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States,

obligations of states, agencies and counties and other political subdivisions with an investment rating

not less than "A," insured or collateralized certificates of deposit, and certain bankers' acceptances,

repurchase agreements, mutual funds, commercial paper, guaranteed investment contracts and

investment pools.

The District's investment policy may be more restrictive than the Public Funds Investment Act.

The District invests in TexPool, an external investment pool that is not registered with the Securities

and Exchange Commission. The State Comptroller of Public Accounts of the State of Texas has

oversight of TexPool.

At August 31, 2019, the District had the following investments and maturities:

Maturities in Years

Type Amortized

Cost Less Than 1 1-5 6-10 More Than

10

TexPool $ 1,434,230 $ 1,434,230 $ 0 $ 0 $ 0


August 31, 2019

18

Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising

interest rates, the District's investment policy does not allow investments in certain mortgage-backed

securities, collateralized mortgage obligations with a final maturity date in excess of 10 years and

interest rate indexed collateralized mortgage obligations. The external investment pool is presented

as an investment with a maturity of less than one year because it is redeemable in full immediately.

Credit Risk. Credit risk is the risk that the issuer or other counterparty to an investment will not

fulfill its obligations. At August 31, 2019, the District's investments in TexPool were rated "AAAm"

by Standard & Poor's.

Summary of Carrying Values

The carrying values of deposits and investments shown previously are included in the balance sheet

at August 31, 2019, as follows:

Carrying value:

Deposits 580,511$

Investments 1,434,230

Total 2,014,741$

Included in the following statement of net position captions:

Cash 91,145$

Certificates of deposit 489,366

Short-term investments 1,434,230

Total 2,014,741$

Investment Income

Investment income of $78,426 for the year ended August 31, 2019, consisted of $34,175 of interest

income on deposits and investments and $44,251 of interest on capital contributions with the

Authority.

Note 3: Capital Assets

A summary of changes in capital assets for the year ended August 31, 2019, is presented as follows.


August 31, 2019

19

Governmental Activities

Balances,

Beginning

of Year Additions

Reclassifi-

cations

Balances,

End

of Year

Capital assets, non-depreciable:

Land and improvements 10,369$ -$ -$ 10,369$

Construction in progress 226,288 48,865 (141,006) 134,147

Total capital assets, non-depreciable 236,657 48,865 (141,006) 144,516

Capital assets, depreciable:

Water production and distribution facilities 726,450 190,071 141,006 1,057,527

Wastewater collection and treatment facilities 1,026,088 - - 1,026,088

Total capital assets, depreciable 1,752,538 190,071 141,006 2,083,615

Less accumulated depreciation:

Water production and distribution facilities (612,634) (29,690) - (642,324)

Wastewater collection and treatment facilities (702,812) (29,954) - (732,766)

Total accumulated depreciation (1,315,446) (59,644) 0 (1,375,090)

Total governmental activities, net 673,749$ 179,292$ 0$ 853,041$

Note 4: Long-term Liabilities

General obligation bonds:

Bonds voted $ 10,000,000

Bonds sold 4,850,000

Note 5: Maintenance Taxes

At an election held August 9, 1986, voters authorized a maintenance tax not to exceed $1.00 per

$100 valuation on all property within the District subject to taxation. During the year ended

August 31, 2019, the District levied an ad valorem maintenance tax at the rate of $0.8000 per $100

of assessed valuation, which resulted in a tax levy of $655,357 on the taxable valuation of

$81,864,802 for the 2018 tax year. The maintenance tax is being used by the general fund to pay

expenditures of operating the District.


August 31, 2019

20

Note 6: Regional Sewage Treatment Contract

On July 20, 1977, Ponderosa Joint Powers Agency (the Agency) was formed by an agreement

between Cypresswood Utility District (Cypresswood), Harris County Water Control and

Improvement District No. 132 (District No. 132), Ponderosa Forest Utility District (Ponderosa

Forest) and Westador Municipal Utility District (Westador) for the purpose of sharing the costs of

operating a regional sewage treatment plant and sharing the construction costs of expanding the

existing facilities. On January 3, 1978, the Agency admitted Klein Public Utility District (Klein) as a

member of the Agency. On February 5, 1985, September 6, 1994, April 25, 1995 and October 6,

1999, the participating districts entered into revised interlocal contracts, which provided for the

operation and expansion of the Ponderosa Central Wastewater Treatment Plant (Ponderosa Plant),

the admission of the District in 1985 and the admission of Harris County Water Control and

Improvement District No. 91 (District No. 91) in 1995. The term of the contract is 40 years.

Construction costs were shared based on the pro rata share of capacity acquired by the districts. The

District has contributed approximately $500,000 for its share of construction costs.

Under the terms of the amended agreements, each district owns an undivided pro rata interest in the

Agency's waste disposal system as defined in the agreement. A Board of Trustees (Board) appointed

by the participants manages the affairs of the Agency. The Board is empowered to execute contracts

on behalf of the Agency and to expand and operate the waste disposal system. The Board is

composed of two members of the Board of Directors of each participant.

Represented below is each participant's capacity and percent of ownership.

Capacity

Percentage of

Ownership

Cypresswood 727,600 14.940 %

District No. 132 700,316 14.380

Ponderosa Forest 1,318,780 27.080

Westador 909,504 18.676

Klein 450,000 9.240

District No. 91 400,000 8.214

The District 363,800 7.470

Totals 4,870,000 100.000 %

The following schedule is condensed audited financial information, excerpted from financial

statements audited by another independent accounting firm of the Agency, as of and for the year

ended December 31, 2018.


August 31, 2019

21

Total assets 331,465$

Total liabilities 231,465$

Total net position 100,000

Total liabilities and net position 331,465$

Total revenues 1,201,066$

Total expenses 1,201,066

Change in net position 0$

Agency

General Fund

Operation and maintenance costs are shared based on gallons of sewage treated for each participant,

except for electricity costs, which are billed according to the percentage of capacity owned by each

district. The District incurred operating and maintenance costs of $53,412 during the current year.

Note 7: Joint Facilities

On May 17, 1985, District No. 132, Cypresswood, Klein and the District entered into a contract to

share maintenance and repair costs of certain sanitary sewer lines, the lift station and the force main.

Costs of maintaining the sanitary sewer lines are to be shared based on various percentages and

based upon where the maintenance is to be performed. Maintenance costs, except for the electricity

bills, are to be shared as follows.

Cypresswood 32.63 %

District No. 132 31.41

Klein 19.65

The District 16.31

Total 100.00 %

Electricity bills are to be shared based on gallons of sewage treated for each district. The District

incurred maintenance costs of $23,371 during the current year.

Note 8: Regional Water Authority

The District is within the boundaries of the Authority, which was created by the Texas Legislature.

The Authority was created to provide a regional entity to acquire surface water and build the

necessary facilities to convert from groundwater to surface water in order to meet conversion


August 31, 2019

22

requirements mandated by the Harris-Galveston Subsidence District, which regulates groundwater

withdrawal. As of August 31, 2019, the Authority was billing the District $3.85 per 1,000 gallons of

water pumped from its wells, and $4.30 per 1,000 gallons of surface water purchased. These

amounts are subject to future increases.

In 2003, the District entered into a capital contribution agreement (the Agreement) with the

Authority. The Agreement required the District to make a capital contribution to the Authority of

$170,806 and the District will receive repayment through credits for District pumpage fees and water

payments as they become due each year. In addition, any amounts owed to the District that remains

after the credits will be paid to the District. These repayments accrue interest at 5.0575 percent per

year and will be repaid with interest-only payments from 2004 through 2009 and principal and

interest from 2010 through 2034. In 2005, the District entered into a second capital contribution

agreement with the Authority and contributed $100,823. Repayments under the second agreement

accrue interest at 4.8087 percent and are repaid with interest-only payments through 2009 and

principal and interest from 2010 through 2035. In 2008, the District entered into a third capital

contribution agreement with the Authority and contributed $355,658. These repayments under the

third agreement accrue interest at 5.3755 percent per year and will be repaid with interest-only

payments from 2009 through 2013 and principal and interest from 2014 through 2038. In 2011, the

District entered into another agreement with the Authority for equipment purchased for the

chloramine conversion project. Repayments under this agreement accrue interest at 6.0 percent and

are repaid with interest-only payments through 2012 and principal and interest from 2013 through

2041.

At August 31, 2019, the repayments outstanding are as follows:

Year Amount

2020 68,946$

2021 68,946

2022 68,946

2023 68,946

2024 68,946

2025-2029 344,728

2030-2034 338,505

2035-2039 235,603

2040-2041 37,095

1,300,661

Less interest 502,606

Remaining principal 798,055$


August 31, 2019

23

Note 9: Risk Management

The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of

assets; errors and omissions; and natural disasters for which the District carries commercial

insurance. The District has not significantly reduced insurance coverage or had settlements which

exceeded coverage amounts in the past three fiscal years.

Harris County Municipal Utility District No. 275 Budgetary Comparison Schedule – General Fund


24

Original

Budget Actual

Variance

Favorable

(Unfavorable)

Revenues

Property taxes 740,000$ 653,537$ (86,463)$

Water service 50,000 46,046 (3,954)

Sewer service 95,000 104,065 9,065

Regional water fee 140,000 146,235 6,235

Penalty and interest 5,000 10,523 5,523

Tap connection and inspection fees - 115,825 115,825

Investment income 87,000 103,099 16,099

Total revenues 1,117,000 1,179,330 62,330

Expenditures

Service operations:

Purchased services 45,000 53,412 (8,412)

Regional water fee - surface water 150,000 142,238 7,762

Regional water fee - pumpage fee - 1,052 (1,052)

Professional fees 98,000 101,730 (3,730)

Contracted services 37,000 50,355 (13,355)

Utilities 25,000 14,237 10,763

Repairs and maintenance 189,500 167,412 22,088

Other expenditures 37,570 35,574 1,996

Tap connections - 45,175 (45,175)

Capital outlay 327,300 238,936 88,364

Total expenditures 909,370 850,121 59,249

Excess of Revenues Over Expenditures 207,630 329,209 121,579

Fund Balance, Beginning of Year 1,617,166 1,617,166 -

Fund Balance, End of Year 1,824,796$ 1,946,375$ 121,579$

Harris County Municipal Utility District No. 275 Notes to Required Supplementary Information

August 31, 2019

25

Budgets and Budgetary Accounting

An annual operating budget is prepared for the general fund by the District's consultants. The budget

reflects resources expected to be received during the year and expenditures expected to be incurred. The

Board of Directors is required to adopt the budget prior to the start of its fiscal year. The budget is not a

spending limitation (a legally restricted appropriation). The original budget of the general fund was not

amended during fiscal 2019.

The District prepares its annual operating budget on a basis consistent with accounting principles

generally accepted in the United States of America. The Budgetary Comparison Schedule - General Fund

presents the original and revised budget amounts, if revised, compared to the actual amounts of revenues

and expenditures for the current year.

Other Information

Harris County Municipal Utility District No. 275 Other Schedules Included Within This Report

August 31, 2019

26

(Schedules included are checked or explanatory notes provided for omitted schedules.)

[X] Notes Required by the Water District Accounting Manual

See "Notes to Financial Statements," Pages 11-23

[X] Schedule of Services and Rates

[X] Schedule of General Fund Expenditures

[X] Schedule of Temporary Investments

[X] Analysis of Taxes Levied and Receivable

[ ] Schedule of Long-term Debt Service Requirements by Years – Not Applicable

[ ] Changes in Long-term Bonded Debt – Not Applicable

[X] Comparative Schedule of Revenues and Expenditures – General Fund and Debt Service Fund –

Five Years

[X] Board Members, Key Personnel and Consultants

Harris County Municipal Utility District No. 275 Schedule of Services and Rates


27

1. Services provided by the District:

X Retail Water Wholesale Water X Drainage

X Retail Wastewater Wholesale Wastewater Irrigation

Parks/Recreation Fire Protection Security

Solid Waste/Garbage Flood Control Roads

X Participates in joint venture, regional system and/or wastewater service (other than emergency interconnect)

Other

2. Retail service providers

a. Retail rates for a 5/8" meter (or equivalent):

Flat

Minimum RateCharge Y/N

Water: 11.00$ N 1.00$ 8,001 to 100,000

1.25$ 100,001 to 250,000

1.50$ 250,001 to No Limit

Wastewater: 17.00$ N 2.00$ 5,001 to No Limit

Regional water fee: 4.30$ N 4.30$ 1,001 to No Limit

Does the District employ winter averaging for wastewater usage? Yes No X

Total charges per 10,000 gallons usage (including fees):

b. Water and wastewater retail connections:

ESFCFactor

Unmetered x1.0

≤ 3/4" x1.0

1" x2.5

1 1/2" x5.0

2" x8.0

3" x15.0

4" x25.0

6" x50.0

8" x80.0

10" x115.0

Total water

Total wastewater x1.0

3. Total water consumption (in thousands) during the fiscal year:

Gallons pumped into the system:

Gallons billed to customers:

Water accountability ratio (gallons billed/gallons pumped):

*"ESFC" means equivalent single-family connections

36,802

34,412

93.51%

5

-

-

25

5

23

70

40 40

603

320

-

4

-

160

-

53

42

10

ConnectionsActive

14

-

1

Total Connections

-

-

55

-

4

1

-

Meter Size

1

21

9

14

20

5

-

5,000

ActiveESFC*

-

27.00$ Wastewater56.00$ Water

MinimumUsage Usage Levels

Rate Per 1,000

Gallons Over

Minimum

8,000

Harris County Municipal Utility District No. 275 Schedule of General Fund Expenditures


28

-$

17,800$

61,233

22,697

- 101,730

Purchased Services for Resale

53,412

143,290

14,708

-

5,005

10,086

-

20,556 50,355

14,237

167,412

10,800

1,872

7,578

15,324 35,574

238,936

- 238,936

45,175

-

-

-

-

850,121$

Contracted Services

Auditing

Legal

Engineering

Financial advisor

Personnel (including benefits)

Professional Fees

Bulk water and wastewater service purchases

Regional Water Fee

Security

Other contracted services

Utilities

Repairs and Maintenance

Bookkeeping

General manager

Appraisal district

Tax collector

Other administrative expenditures

Capital Outlay

Capitalized assets

Expenditures not capitalized

Administrative Expenditures

Directors' fees

Office supplies

Insurance

Other Expenditures

Total expenditures

Tap Connection Expenditures

Solid Waste Disposal

Fire Fighting

Parks and Recreation

Harris County Municipal Utility District No. 275 Schedule of Temporary Investments

August 31, 2019

29

Interest

Rate

Maturity

Date

Face

Amount

Accrued

Interest

Receivable

General Fund

Certificates of Deposit

No. 4012365 0.25% 01/05/20 95,000$ 155$

No. 4012340 0.25% 12/06/19 75,000 42

No. 4012357 0.25% 09/05/19 75,000 90

No. 32297 1.40% 02/28/20 95,000 4

No. 35470 2.40% 12/16/19 99,193 489

TexPool 2.16% Demand 1,434,129 -

1,873,322 780

Debt Service Fund

TexPool 2.16% Demand 101 0

Capital Projects Fund

Certificates of Deposit

No. 76295 0.10% 10/20/19 21,528 8

No. 3367 0.04% 02/27/20 28,645 -

50,173 8

Totals 1,923,596$ 788$

Harris County Municipal Utility District No. 275 Analysis of Taxes Levied and Receivable


30

Debt

Maintenance Service

Taxes Taxes

12,176$ 2,865$

(2,465) -

9,711 2,865

2018 Original Tax Levy 633,258 -

22,099 -

655,357 0

665,068 2,865

(650,789) -

(1,384) (1,364)

12,895$ 1,501$

Receivable, by Years

4,568$ -$

2,400 -

2,230 -

2,322 -

411 388

964 1,113

12,895$ 1,501$

Receivable, Beginning of Year

Receivable, end of year

Receivable, end of year

2018

2016

2013

Current year

2015

2017

Additions and corrections to prior years' taxes

Additions and corrections

Adjusted tax levy

Adjusted receivable, beginning of year

Total to be accounted for

Tax collections:

2014

Prior years

Harris County Municipal Utility District No. 275 Analysis of Taxes Levied and Receivable (Continued)


31

Total tax rates per $100 valuation

Percent of Taxes Collected to

99% 99% 99% 99%

**Calculated as taxes collected for a tax year divided by taxes levied for that tax year.

Property Valuations

Land

Improvements

Personal property

Maintenance tax rates*

Exemptions

Total property valuations

Tax Rates per $100 Valuation

Debt service tax rates

0.9000

0.9000$

27,199,149$

44,064,936

12,575,458

0.8000$

(1,974,741)

81,864,802$

-$

0.8000

80,038,395$

-$

26,499,470$

42,903,963

12,607,798

(1,972,836)

2015

21,327,957$

37,705,296

12,677,518

2018 2017 2016

21,459,337$

45,971,483

11,941,673

0.9000

(1,382,870)

77,989,623$

-$

0.9000

(1,312,345)

70,398,426$

-$

*Maximum tax rate approved by voters: $1.00 on August 9, 1986

0.9000$

634,174$ 720,911$ 655,357$

Taxes Levied**

0.9000$

702,534$ Tax Levy

Harris County Municipal Utility District No. 275 Comparative Schedule of Revenues and Expenditures – General Fund

Five Years Ended August 31,

2019 2018 2017 2016 2015

General Fund

Revenues

Property taxes 653,537$ 714,259$ 696,322$ 632,898$ 288,588$

Water service 46,046 48,155 39,855 46,284 43,208

Sewer service 104,065 95,577 93,884 94,275 93,956

Regional water fee 146,235 126,648 88,945 90,390 78,540

Penalty and interest 10,523 6,023 9,239 3,138 6,165

Tap connection and inspection fees 115,825 66,506 - 17,975 4,775

Investment income 103,099 86,836 74,054 71,368 69,660

Other income - - - 70,602 -

Total revenues 1,179,330 1,144,004 1,002,299 1,026,930 584,892

Expenditures

Service operations:

Purchased services 53,412 66,092 43,545 214,794 55,148

Regional water fee - surface water 142,238 133,497 106,056 100,268 76,163

Regional water fee - pumpage fee 1,052 9,256 7,438 3,634 20,038

Professional fees 101,730 98,933 75,316 78,491 76,702

Contracted services 50,355 50,357 47,959 27,651 28,401

Utilities 14,237 17,901 18,502 18,259 19,357

Repairs and maintenance 167,412 155,499 161,434 243,418 195,017

Other expenditures 35,574 29,835 31,292 35,003 36,551

Tap connections 45,175 22,052 - 5,800 1,500

Capital outlay 238,936 226,288 - - -

Total expenditures 850,121 809,710 491,542 727,318 508,877

329,209 334,294 510,757 299,612 76,015

Other Financing Sources (Uses)

Interfund transfers in (out) - - 89,377 (469,500) (207,500)

Excess (Deficiency) of Revenues and

Transfers In Over Expenditures

and Transfers Out 329,209 334,294 600,134 (169,888) (131,485)

Fund Balance, Beginning of Year 1,617,166 1,282,872 682,738 852,626 984,111

Fund Balance, End of Year 1,946,375$ 1,617,166$ 1,282,872$ 682,738$ 852,626$

Total Active Retail Water Connections 53 51 47 52 50

Total Active Retail Wastewater Connections 40 38 36 47 48

Amounts

Excess of Revenues Over Expenditures

32

2019 2018 2017 2016 2015

55.5 % 62.4 % 69.5 % 61.6 % 49.3 %

3.9 4.2 4.0 4.5 7.4

8.8 8.4 9.4 9.2 16.1

11.8 11.1 8.8 8.8 13.4

0.9 0.5 0.9 0.3 1.1

9.8 5.8 - 1.8 0.8

9.3 7.6 7.4 6.9 11.9

- - - 6.9 -

100.0 100.0 100.0 100.0 100.0

4.5 5.8 4.3 20.9 9.4

12.1 11.7 10.6 9.8 13.0

0.1 0.8 0.7 0.3 3.4

8.6 8.6 7.5 7.6 13.1

4.3 4.4 4.8 2.7 4.9

1.2 1.6 1.9 1.8 3.3

14.2 13.6 16.1 23.7 33.3

2.9 2.6 3.1 3.4 6.3

3.8 1.9 - 0.6 0.3

20.3 19.8 - - -

72.0 70.8 49.0 70.8 87.0

28.0 % 29.2 % 51.0 % 29.2 % 13.0 %

Percent of Fund Total Revenues

Harris County Municipal Utility District No. 275 Comparative Schedule of Revenues and Expenditures – Debt Service Fund

Five Years Ended August 31,

2019 2018 2017 2016 2015

Debt Service Fund

Revenues

Property taxes -$ -$ -$ 4,155$ 272,080$

Penalty and interest - - - 1,874 6,082

Investment income - - - 61 81

Other income - - - 1,796 -

Total revenues 0 0 0 7,886 278,243

Expenditures

Current:

Professional fees - - - - -

Contracted services - - - 14,271 14,281

Other expenditures - - 1,291 6,054 5,459

Debt service:

Principal retirement - - - 445,000 425,000

Interest and fees - - - 22,250 44,069

Total expenditures 0 0 1,291 487,575 488,809

- - (1,291) (479,689) (210,566)

O ther Financing Sources (Uses)

Interfund transfers in (out) - - (75,584) 469,500 207,500

Deficiency of Revenues and Transfers

In O ver Expenditures and Transfers

O ut - - (76,875) (10,189) (3,066)

Fund Balance, Beginning of Year 101 101 76,976 87,165 90,231

Fund Balance, End of Year 101$ 101$ 101$ 76,976$ 87,165$

Amounts

Deficiency of Revenues O ver Expenditures

33

2019 2018 2017 2016 2015

- % - % - % 52.7 % 97.8 %

- - - 23.7 2.2

- - - 0.8 0.0

- - - 22.8 -

0.0 0.0 0.0 100.0 100.0

- - - - -

- - - 181.0 5.1

- - 0.0 76.8 2.0

- - - 5,642.9 152.7

- - - 282.1 15.9

0.0 0.0 0.0 6,182.8 175.7

0.0 % 0.0 % 0.0 % (6,082.8) % (75.7) %

Percent of Fund Total Revenues

Harris County Municipal Utility District No. 275 Board Members, Key Personnel and Consultants


34

Complete District mailing address: Harris County Municipal Utility District No. 275

c/o Smith, Murdaugh, Little & Bonham, L.L.P.

2727 Allen Parkway, Suite 1100

Houston, Texas 77019

District business telephone number:

Submission date of the most recent District Registration Form

(TWC Sections 36.054 and 49.054):

Limit on fees of office that a director may receive during a fiscal year:

Term of

Office

Elected & Title at

Board Members Expires Fees* Year-end

Elected

05/18-

Geoffrey Long 05/22 1,650$ 0$ President

Elected

05/18-

Trent Conner 05/22 2,850 171 Secretary

Elected

05/18- Assistant

Gary Wallace 05/22 3,300 130 Secretary

Appointed

08/19-

Nancy Speich 05/20 0 0 Director

Elected

05/16-

Susan Spicer 05/20 1,650 0 Director

Elected

05/16-

Deborah Bessire 06/19 1,350 0 Resigned

*Fees are the amounts actually paid to a director during the District's fiscal year.

713.652.6500

June 28, 2018

7,200$

Reimbursements

Expense

Harris County Municipal Utility District No. 275 Board Members, Key Personnel and Consultants (Continued)


35

Consultants Date Hired Title

BKD, LLP 09/07/87 17,800$ Auditor

Kenneth R. Byrd 07/21/86 11,437

Tax Assessor/

Collector

Legislative

Harris County Appraisal District Action 5,005 Appraiser

M. Marlon Ivy & Associates, Inc. 07/06/12 109,388 Operator

Municipal Business Services, Inc. 07/21/86 13,611 Bookkeeper

General

Smith, Murdaugh, Little & Bonham, L.L.P. 07/21/86 46,662 Counsel

Terra Associates, Inc. 07/21/86 20,409 Engineer

Financial

U.S. Capital Advisors LLC 06/05/13 0 Advisor

Investment Officer

Robert L. Ideus 10/06/99 N/A Bookkeeper

Reimbursements

Expense

Fees and

harris county municipal utility district no. 275 …...2020/02/27 · 91275-002 461679v1 harris...

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