mcgrath co., pllc · 2016-09-16 · mcgrath & co., pllc certified public accounlants f.o. box...

McGrath & Co., PLLCCertified Public Accounlants

F.O. Box 2?0148Hou*ton, Texas 77217

Mark W. Mccrath [email protected]

Colette M. Garcia CPAcciette@,rncgrath-co. com

Ortober 25,2A15

Jessica RichardsonAllen Boone Humphries Robinson LLP3200 Southwest FreewavSuite 2600Houston, Texas 77427

Enclosed please find the 2015 final Financial Report for Montgomery County Municipal Utility DistrictNo. 113. Please let us know if you have any questions or concerns.

Sincerely,

Gail SingerMcGrath & Co", PLLC, CPA'[email protected]

MOI'{TGOMERY COUNTY MUNI CIPATUTITITY DISTRICT NO. 113

MONTGOME,RY COUNTX TEXAS

FINAhICIAL REPORT

Mry 31,2415

MOII{TGOME RY C O UNTY MUI.{I C IIjALUTILITY NISTRICT I{O. 113

MONTGOMERY COUNTY, TTXAS

FINANCIAL REPORT

Mry 3lr ZA15

Table of Contents

lndependent ;\uditors' Report

Ilanagemcnt's l)iscussion and .\nalr'sis

BASIC FINANCIAT STATEMENTSStatemcnt r:f Ncr Posirion and (lor.ernmental I'iunds Ralance Sl:eetStatement of Actiritics and Gr:r-crnmeatal lrunds Revenucs, Expenditure .s

and Changes in lrund RalancesNotes to Basic lrinalcial Statements

REQUIREI) SUPTLEMTNTARY INFORMATIONBurlgetaq' Comparison Schcdule - General liundNotes to Required Supplementan' lnformatrt.rn

TEXAS SUPI'LEMENTARY INFORMATIONSen ices and RatesGenetal l"und llxpendifures]nYCStmCntS

Taxes Ler-ied and Receivablel,ong-Term Debt Sen.ice Requiren:ents by Years

Change in J,ong-Term Bonded l)ebtComparative Schedule ol Revenues and }ixpenditures - (]eneral FrundComparatir.e Schedulc of Revenues and lirpenditures * l)ebt Scl-icc llur:dlloard l{embers, I{e1 Personnel and Consultants

Schedule Pase+

1

)

71

L1

15

3135

151-t,IS1_2

TSI-3TSI_4TSI.5TS1,6TSI-7aTS1,7bTSI B

38,{0

11ta+1,

13

52545658

McGrath & Co., PLLCCertified Public i\ccountaats

P.( ). 1lo: lr{)1 -18

liousrtxr^ I nas a:::7

llarl, 1\'. 1ic{l:arh (.1)1

mark {{mcgrarh-co. c( )m

(.r:lcttc 11. (larcia {-P.\colcrtc(a)mcgrath-cc.cont

lndependent Auditors' Report

Roard of llirectorsI{onrgomen" Counn'}lunicipal UtlLitv l)is:rict No. 113

N{ontgomcry Countt', Tcxas

\\je have auclited the accompanying financial statrmfnts of the govcrnmental actir itie s and each

ma]or fund of Xonrgomery Countl,i\tunicipal Utilin- lJisrrict No" 113, as of and for thc )'car ended

i\Iat"31,2015, and the related rotes to the fiaancial statements,thich collcctir-elv comprisc the basic

financial statemfnts as Listed in the table of contents.

&lanagement's Responsibility fcr the Financial Statements

}{anagemenr is responsible for the preparation and fair pre sentation of these fi.nancial statements in

accordance with accounting prirciples generally accepted in thc United States of ,\merica; this

inciurles thc de sign, implcmentation, and maintcnance of intcrnal control relevanl to the preparation

aad fair p:esentatioa of financial statemerxs that are free from material nrisstatcment, rr'hether due

to fraud 0r erfof.

Auditor's Responsibility

Our responsibilin, is t,, csprcss opini,)ns on these basic financial statements based on our audi:. Sile

conducfecl our audit in accordance rvith auditing standards geretaliv acccpted in the United States of.\mcrica. Those standards require that t c plar: and perform the audit to <;btain reasonablc assurance

abr;ut rvhether the basic ftnancial statcx)ents are free cf material misstatement.

An audit inr-olvcs performing procedures to obtain audit evidence about the amounts aad

clisclosures in the {rnancial statements. The proccdutes selected deper:d otl the auditor's iudgment,inciudilg the asscssr:relt of the risks of material misstatement of thc iir:a:rcia1 slatemer"rts, whether

due to frauci or crror. In makins those risk assessments, the auditor considers internal control

relevaat to the entity's preparatir;n and fair presentation of the finaacial statcments in order lorlesign audit pxrceclures thar arc appropriate in the circumsaaflces, but not fr.,r thc purposc t,fexpressiag an opinion or rhe cffectiveness of the enti$'s internal control. ,\ccordingl,v, 'we expless

,-,o s.,ch opinion. An audlt alsc includes evaluating the app:opriatene ss of accounting principle s used

an<i the ieasonableness of signi{rcaat accounfing estimatcs made bv managemenq as well as

evaluating the overall prcsentatiol of the {inancial statements.

\Ye bclier-e rhat the audlt cr.idence we har-e obtained is sufficj"ent to prolidc a basis for our aurlit

opinir;ns.

1

Board o{I)ircctorsI{ontgomery. County "fr{unicipal Utiliry, District No. 113

Mcsntgomery County, Texas

Opinion

ln our opini*n, thc financial statements re ferred t<; abl ve present fairlr', in all marcrial re specrs, thercspective financial position r>f rhc ll{r1-ernmcrral acririties and cach major fund of l{cntgomen-(-ountr X{unicipal Urilin" I}istrict llic. 113, as of hfav 31,2*15, and the {especti\-r changes infinancial positirin therr:of fcr tLrc I'ear thc* endcd in confr;rmin rvith accounting principlcs gcnerallr'acccpted in the Uniteel States r;f ,ln:erica.

Other-Matters

:\ccountilg principlcs gencrallr- accepted in the i:'nitcd States of :\mcrica requirc rhat rhcmanagcmcnt's discussion and analrsis and budgetary comparison inf,rrmatiofi be prcscntcd tosupplcn:ent the basic linancial statemrnrs. Such ir:frrrlr-:ation, although ncl a part of the basicfinanciatr statemenrs, is required bv the (lovernmeltal ,lccounting Standarrls R<;ard, who cor:siders itbe an essential parr of liaancial rcporting fr;r placing :he basic financial statcnlcnts in an appr.prirrtcoperational, economic or hisrcrical context. 1X,'e have applied eefiain limited prccedures lo thfrequired supplcmentafi- ir:forn"raticn in accordance with auditing standards genr:rallr' accepted in rheUnited Srates ol ,\merica, *.'hich consisted of inquiries of managcmert ab*uf the methocls ofpreparing the infr.irmaticn and c*mparing thc information for consistenc! rvith management'srespoflses to {}L}r inquiries,'the basic financial sratcrnrnts aad other knclvledge rve obtained durinirour audit of the basic financial statcments. *,,'e do nqrt expfess an ()prni()n or providc ant: assufanccon the info:madon because thc limitcd procedurcs d* not proridc us with sr"rfficicnt eridence tcexpress an optnir;n or proride an1' assuraoce.

()ur audit rvas condnered for thc purpose of lorming opinions on the linancial statcments thatcollcctivelv comprisc rhe llisrrict's financial statcments as a x.hole. The Texas Supplementarvlnfirrmation is presen:ed lor purposes cf additional analr'sis and is nct a required part of the basicfin:lncial statemerts. The Tcxas Supplernentan- lnfcrmatinn is the responsibiliry of management andwas derir.ed from anrl r*lates direcril to ahc uncierlr-ing accounting and rither :ecords used tr: preparethe firancial staterncnts. Tht infcrmati<x has been subjcctcd to rhf auditing procedures apphcd tothe audit of lhe {rnaacial s:atements and ccrtain addiiioaal procedules, i:rcluding comparing andreconciling such informatir:n directl,v to the undedr-ing accouflting and other rccords used to prcparethe financial statemenrs or to the {rnancial saatr:menas them-cch-es, and other adrlitional procedures inaccordance wirh auditing standards generalh' accepred in the United Statcs of America. ln r;uropinion, tl'rc irformauon is fairlr- ,.tared in all material respects i* rclation to the financial saetemcnlstaken as a rvhole.

€&*g- * &, r**ff-H0usfon, TexasScptember 21,2{}1,5

2

Management'$ Discussion and Analysis

IItrIIIIIIIIItIIIIt 3

IIIttT

IItIIItIItIT

t

(t'hi.r pqgt inkrti*r:*111, lt/i hlc&)

4

Mrsntgomery County Municipal Utility llistricr No. 113

Management's Discus sion an d AnalysisMay 31, 2015

Using this Annual Repott

\Yithin rhis sc*ion of the financial report r;f hlcntgcmcr-r' Counn' I{unicipal Utilin' l)istrict N<;. 113

(the "l)istrict"), the l)istrict's Board of Dj-rectors providcs a narratir-e discussir;n and anair-sis of thc

financial acri:-irir-s of thc l)istrict for rhe fisca1t'ear endcd h{ar'31,2015. This analrsis should be rcad

in conjunction rvirh the independcnt auditors' report and the basic {inancial statements that follorv

this scction.

la addirbn to this discussion and anah'sis, rhis annual report consists of,:

r The Di.srrict's basic financiai statements;

, l\Tores ro rhe basic {inancial statcment-s, rvhich provide additir:na1 infotmation csscndal to a

full understanding of tl"re data provided in rhe financial slatemenls;

. Suppiemcnrar\- inlormation recluircd br the Gor-crnmenlal ,\ccounting Staadards Roard

(G'\SR) conccrniag thc l)istrict's budget; and

o ()thcr Texas supplemcnran- inlormatiol required br" the llistrict's state oversight agencl', the

Tcxas Commission on l-inr-ironmcntal Qualitr' (TCEQ)

Overview of the Financial Statements

The l)istricr prepares its basic {inancial statcments using a format rhat combines fuad financial

statcinents and goverlmert,wide statemeilts onto onf financial statement. Thc combined statcments

are ihe Stalcruutt rlf \el l)*.riliatt ,snd Cat,ernnttn/a/ f;unds Ba/ance 5'/tcel and tine .\'laleruent ry''Aelit:ilit: arzd

Gaytrnnenlcl {;urd: Rcr,(nrt.r, l:xpenditure.r and (./tonge.r fu I;und Br;/aprc-r. Each staremcnl contains an

adjustmenrs column rvhich quanaiies the diffcrcnces beru.een the go\-ernmcnt-wide and find lcve1

sraremcnrs. Additional dctails of the adjustmcnrs are provided in Note 2 to the basic financial

stat(]ments.

Government-Wide Financial Statements

The focus of gorernment-wide financial statements is on the cverall finalcial position and activities

of the l)istrict, both long-term and short-term. The District's gor=ernmcnl-tvide {lnanclal statemeflts

consisa i;f the J-talement a;f i..ltt Pasition and the Sltsttrttrt af' Artirities, which ate prepared using the

accruai basis of accounring.The Statenrutl of Net Po-;ilirLn includcs all of thc District's assets, dcferred

outfLorvs of tesources, liabilities, and de lcrred inflows of resources q,'ith tlle residual reporred as retposition. ()rer time, changes in net position mal pror-ide a use iul indicator of rvl"rether the financial

position of the District as a rvhole is impror:ing or deterioraring.

,\ccounting standards establish three comp()nents of ncr posirion. The ncl in\:eslment in capital

asscts component reprcsents the l)istricr's inr.estments in capital asseas, less anv outstandir:g debr or

olhcr borrorvings uscd to acquire those assets. Resources needcd to repaY this dcbt must be

prolided from r:rther sources, since rhe capital assets themselves cannot be used to liquidate these

liabilitie s. The re stricted component of ner p()sjri()n c()nsists of financial lesources that are restricted

for a specific purpose br. enabling legislation or external parties. Thc unrestrictcd componrnr of net

positir:n represtnrs resourccs nor included in thc other compoflents.

5

Mantgornery Counry Municipal Utility Disrricr l{o. 113

Ma* agex ent's lli s c us si an and An alysi sMay 31, 2075

The .\talrnttrt rtf'lctit,ities rcports horv the l)istrict's net p<.isition has changed during the fisca1 l'ear,,\11 revcnues anrl expersrs are includcri on this statement, regardless of rvhcther cash has becnreceived or paid.

Fund Financial Staterner:ts

The fund financial starcmcflts inclurlc th<: {,at'rrstrtrnlo/ l;ard.t Brs/anrr .\"lteel and the {,,r.,rcrnrtrrksl l:urdsF.u,rnttr;, f:.xprndilurzs *rd ClLanws ir l:und lla/rtrx-r. The ii;cus of fur-ld financial statcments is onspcciiic actir"iries of rhc llistrict rather thaa the District as a whr;le, repr:rrccl r-rsiag nrr;eiified accrual

accounting. These siatfments rcix.)rt on thc llistrict's use of alailablc financial tcsfiurce.q and thebalances r.rf available flnancial rcsources at ahr cnd r;l thc lcar. Erccpr fr;r the {lencral l;und, a

specifrc iund is esral:lishccl tc sarisfv managcrial contrr:l o1-cr resourcrs .rr to sadstl finance-relatedlegal requircmcrts esrablished b; crternal parties, go1'ernmcnral statutes r;r tcgulaucrns.

lior furthcr di-rcussion {}o thc f{)!ernmcnt-rvide anr] lur"rd fir:ancial statcmcnls, plcasc rtfer to }ir:te 1

in the frnancial stalemrnts.

Finaaci*l A*alvsis of the District as a Whole

The l)istrict's nct positio* at llar'31,2fi15, :' as ncgativc S1(1.979,532. ,\ comparative,cumman cf rhe

District's cr.erall financial position, as of llar 31,2i)15 and2014,is as follcrvs:

201 5 2{}1,4

Current and t;ther asstts

Capital asscts

Total a.*sets

Current liabiliticsl-ong-rerm liabilities

Tt;rai liabilities

Nct positionl{et inreslment in capital assers

Re,srrictcd

Llnrestrictcd'fotal net position

s 14,443,303li lr( f7q

5!"869,i)82

16,306,87.1

;,1,541,7,$0711,8.18,61,tr

u3,946,235)1 ilfl 1,21

(s83,e2{l)

s Jl-r)xli36,2{i.1,218

4{},74,1,033

6,255.86U

43,93s,305

5{i,191,165

(9,788,7.17)

1,998,5,13

(1,656,928)s rltr0-()r17 q q4J- li2" \' . . \'.

6

Montgomery County Municipal {lrillty District No. 113Managemen t's Discussion and AnalysisMay 31,2015

Thc total nct position of the l)istrict decreased br' 51,532.4{)0. "\ comparative summafl, of thcl)istrict's .\'lt;kswnl *{lelh,ilirs for the past trvo lears is as fo11cu.s:

2015 2AURerenues

Serl-cr

Irroperh taxcs, pclaltics and inti:rcst

OtherTotal rcrcnucs 5,018,658 2,{r.18,918

S

Expenses

Curreat sen'ice r:pcratlonslnterest and fees

l)cbt issuance costs

1)cpte ciarionTotal expenses

Change in ntr position before orher item

Orl-u:r irernC1'range in csfimate of due to deleloper

Cl-range in ner positionNel position, beginning of vear

\et position, end o:L r-car

1,193,096

2,114,3941,'155,160

1,,188..1{}8

732.305

1.046,{}1(t

21{},211

S ,183,,172

2.$62,971

142.41a

916.{t61

1,596,7.19

136"17 5

155,805.1,'135,390

(1,186,412)

15,111

(1,7.+1,055)

(7,706,017)

1"

(;,551,058

(1,532,.,00)

(1"532..100)(9.411,132)

S I (1.9-().5 32, S ().+l-. I 12)

Financial Analysis of the District's $unds

The l)istrict's combined iund balances, as oi lfar.31,2015, were 514,1(;5.550, rvhich consists of51,781,795 in the General liund, S3,969,8!.t in rhc l)eb: Senice Fund and 58,.113.8(;1 in rhc (-apital

Proiecrs lrund.

7

M**tgome4t Crsunty Municipal Utility llistri* No. 113Man agem en t's Ili s c u s sicn an d An alysi sMay 31,2015

{,rnrra/ l;anr/

Comparative sumrnaries of the (]cncral l;und's financial position as of llar'31,21]15 and 2{)1.i arc as

fr.l1lou.s:

201 5 2At+Total assets S 1,9,{8,730 S 85,},,}r'l

Total liabihtiesTotal clel erred .inflos"s

Tiital fund balance

Totai liabiiitics- dcierrecl infir;rvs ar:d fund balance

'lirtal rclenue s

1-ora1 expcndiruresRcrenucs or-er expeadi*res

T<;tal lia}:ilirie s

Toral rL:ferred infl or.r's

Tt;tal fund Lralance

Tirtal liabilirics, delerred inflorvs and funcl balancc

S 150,785

16,150

181 795

88.612I oga

760,760

S

1

S l.() 18.-1t) S R5+.-l:+

Cr:mpararilc sumlnarics of the Clenerai Fu*d's acti:-i:ics fiir rhc currenf aarl prior fiscal vear are as

fi-illolr,s:

2t)15 2{}11

5 1 ,951 ,'l'15(93U,'t10)

1,121,354

(66e,3.+{))

S

: l,{12l,r)j. S 152.Ul-i

The l)istrict manages its actir-iries rvith thc objectives of ensuring that exprndirures rvill bcadequa:elv cor-ered bv revenues each l'ear and that al adequate fund balance is mainrained. ;\s a

result, fund balance in thc Gcneral l;und for thc current year aad prior vear has increascd.

Dtbt.\'enlice llund

(iomparatir-e summaries of thc l)cbr Sr:n-ice l-und's Snancial position as of hfar' 31,2{}15 and 201r1

are as follolr.s:

201 5 2414

T<;tal asscts S 4,028,6.15

q 1*r?51,{i39

3,9(;9,89,1

$ 2,300,905

S

16,583) 2P,t \))

s -1.{128,615 S 2,3r)0,9r)5

I

Monrgonzery Caunty Municipal Utility District No. tr13Man agetn e* t's Oi s c u s si on an d An alysi sluIay 31, 2015

Comparative summaries of the l)cbt Sen-icc Irund acdviries the current and prior &scal lear are as

follows:

2015 2014Tr>ta1 rer-enues

Total expcnclitursRer-enues r;ver expenditurcs()rher changcs in funcl balanceNcr change in funri balancr

Toral liabiliriesTotal fund balanceTotal liabilitres and fund baiance

Total rerenucsTotal expendiruresRer-enucs under expenditures()ther changes in fund balanceNet change in fund balance

5 3,016,(r(;0

(1,88,1.1.1'1)

1 51() 7?1

(1,066,851)S

1,1 32,51{,

553,056

412.812

50i),58t)

Thc District's finaacial lesourccs in the Debt Ser-r.icc Fund in both the current r-ear and prior t'carare frcm proper.r aax tcl-enues and capitalizcd interest fror:r the sale of bonds. The differenceberureen rhese financial tesourccs and debt sen-ice rcquiremcats resulted in an increasc in fundbalance each lear. 1r is imporrant ro n()te that the l)istrict scts its annual dcbt scn-rce rax ratc as

recommended bv its financial advisor, rvho monitors projected cash flows in the l)eb: Sen{ce L-undto eilsure that rhe l)istricr rvill be able to meet its future debt se n'icc rcquiremt'nts.

C api ta / P rai e ct"r F' u n d

Comparatir-c summaries of the Capital Projects liuad's flnancial position as of L{ar. 31, 2{}15 anrl2{}11 art as follorvs:

2t)15 2014Jirtal assets

s 1.6H5,5-l s ,)-.1,+52

$ 8,465,928 $ 1,32:1,.+56

S 52,461

8,413,861

S 8,465,928 S 1,32:1,.156

5 169,886

1.154,570

Comparatile summarie s oi activities in the Capital Proiects lrund fcr the curreat and prior fiscal yearare as follorvs:

2015 2{}14

S 1{),859()) )17 )1)\

? 0l()(1 1.827.139)

S

(22,2*6,413)

29 165"70.4

(11,824,190)i 1 iJ? 141

s 1,259.291 5 718,153

The l)istrict has had considcrable capital asset ac[ivity in the last tx.o lears, rvhich includes :heissuancc of a bond anticipation note and thc sale of bonds in the current lear and in the prior lcar.

9

M*ntgomery County Manicipal Utili4, Districr N*. 113

Man age men t's "{)i s c tr s sion an d An al},si slVlay 31, 2015

General Fund Budgeta:y Hightights

The lloard of lJirectr;rs adoprs ar annual unappropriated budget lor the (ieneral Fund prior to thebcgir:ning of each fisca1 rear. The Roard amerderl the budget rluring thc year tc; rellect changc-r inaaticipated rcl-enues and expendifurcs.

Sir:ce rhe l)isrict's budgct is primarilv a pianning aor.,l. actual results varied &orn tire burlgetedaffrounts. ..lcrual nct change in luad balance was 5396,:47 grt-:ater than budgcted. The Burlgttary

Con$ttrisots .\'cbdafu on pagr 3,1 of tl'ris rcpr;:t pr*r'ides r-ariance infr,irmatioa prr linancial statcmenrline item.

Capital Assets

{iapital assets hcld bt thc l}istrict at }{at-31,2ii15 and 2{li4 arc summarize,-las follcrv-c:

2{t15 2{}11

Capital assels n()r being deprcciarcrl

l-anii and ir:plr:-ementsConstruction in progress

851.886 951,241

5 366,139,185,7.t7

298,{$9659" 1,15

$

Capital assets being cleprcciared

Scrvcr and drainage sl'sfems

Roads

Parks and rccreational facitdes

I-ess accumulared dcpreciatir:nSe*'cr anrl drainagc srstems

Roads

Parks anrl recreatiexal faciliries

Dcpreciablc capital assets, nlra

Capital asscts, net

34,:73,91q11,188,53'

2,583,5(r8

27,3(t1,212

8,'1'15,r39

2,583,568

49,14{>,{14{t 38,390,719

(2,388.:59)(1,768.{r96)

t414,698)

(1,609,345)

(1,1 88,1 59)

(28{;,241)11 1 / la \l (3,083,745)

44,573,8r3 3:,30(; 974

S -i.i,-12:,--9 S 1r,.26-1.218

The lJistrict completed ccnsrucdon of the loliowing during the current vcar:

e Sewer and drainage to serre Woodforest Secrions 1{}.12,.15 through 41,49 through 54

o Siloodforesa Parkx,av Northwest lfxtension ffi,'oodforest Section ,1.{ through SfoodforestSecuon 29; drainagr'

o Wor;dforesr Parkrvar- South }fxtension (W-oodforcst Secdon ,{5 to \Yoodforest Sectior-r 46) *sewer and drainage

r \Yoodforest Section 45 exterior roadsr Woodforest Pffk\\,ar South Extcasio* (Si'oodforest Section ,l(r to Woodf,crest Sectir;n 53) -

rr:ads

10

Montgomeq, Counry* Municipal Urility District l\fo. 713Man agem en t's llis c u s sion an d An alysisMay 31,2CI15

r V/or;dforest Parkvar- Northx.est l'lxtension (CISD to \\/oodforcst Scction 29) , roadsr \Yoodforcst Parkura.-v South llriclge ar Fish Creek - roadse Woodfores. Trails - 2{}11

The llistrict's crlflstruction in progrfss is ir;r the construction of signal and lighring for }rish Creekthorough fare and \{'i;od fcre s I l}arkrvav N or:h.

,\s discussed in Note 7 rhe lfistrict has contractual commirlnents in the amount {}{ 512,7t)2,1ii6 forconstructioa of -.erver, draina5;c and road facilities. The l)istrict rvill owc its dtr,cloper for thesepro]ects upon completion of consar-uctioa.

Long-Term Debt

,\t \{av 31,2015 and 201-1. thc I}istrict had total bonded debt outstaading a.. shorvn belorv:

Series 2415 2011201{)

2011 Road

24122012 Road

2413

2013 Road

2014

2{}1:l Road

s 3,535,{)001 -1li {)r}0

1,69s,000

3.515,{100

5,805,000

5,650,000t - r00 nOo

4,1ti0,u00

3.620.0{J0

3,515,000I -10 000

3.7{i0,000

5,935,000

5,65{).000

S

s 45,035,000 s 24,150,000

l)uring the r-ear, the llisrrict issued ,$21,300,000 in unLimited tar bonds. At l{ar 31,2015, the I)istricthad 51,,11,620,000 unlimitcd tax bonds authorized, but unissued for the purposes of acquirir-rg,constructing aad improvlng thf water, sanitarv sewcr and draiaagf srstflrls u.ithin the l)istricr;530,360,00{l for road impror.ements and $1(;,,145,1}00 for parks and recreatjonal iacilitics.

During thc r-ear, the District issued a S1.i,,176,000 bond anricipation ncte (RAN) to pror.ide shortterm financing lor der.eloper reimburseurents. The Disrict intrnds to repay the BAN with proceedsirom the issualce of long term debt. See ){otes 6 and 13 for additional information.

11

Montgomery County Munlcipal Utiliry,lllstrict Nc. 113

"&{an agemext's I}isc ussion and An alysisMay 31, 20tr5

Next Year's Budget

In establishir:g the budget for the next Itscal vear, the Roard considered larious economic factorsthat rna:' affcct the l)istrict, most notablr" prr;iectcrl rfreilucs from property taxes and server sen-ices

and the projccted cost of operating the lJisrrict and pror-idinq scri-jces I() cust()tners. ,'\ comparisonof nrxt ),ear's }:udgct to cllrrcllt 1-car acaual amoults for tl"rc Gencral Fund i-c a*c fr;llo*.s:

20i5 r\crual 2{}16 I}udget

Total rcr.enues

Total expenrlitures

Rc-n"cnues or-er cxpenditr,rrc.r

Reginning Iund balance

}'.r":ding fur:rl L:ala::rcc

s 1,951.445

(930..110)

S 1,{r81,00{)

(1,200,6(r5)

f .i)21,035?6('},r50

+xt t!-)-)l

1 ,781,795$ 1,r81 ";9: S 2"2(:2,13{.1

Property Taxes

The Disrrict's propertv tax l:ase incrcased apprcximatelr'S22.f.143,(X)0 frrr the 2{)15 rax lear ftom$3(10,132".155 to 558.1,215,938. ?his incrcase rvas primarilv duc ro 1rc\\ cunstrlrction in rhe l)isrnt.

12

Basic Financial Statements

13

Montgorue4, Ccunq. Mcnicipa| Uriliry District No. 1x3

Statement of h{et Position and Gover**enta} Funds Ba}ance SheetMa;,31, 2015

tItIttIIIIIttttII)

I

( i eneral

1;und

l)cbtScn'icc1;ur-rd

(-apitai

1)roiccts

liund Toral .\dlustmcntsSta:cncnt ofNc: Positior:

I )O:

851,886.1+,5;3,893

Assets(lash

Invcs trr:tnts'faxe s rcccilable(-usnrmcr scn'ice reccir-ables

I)ue from opcratorlnrcr*al balances()tl.rc:: rcccilablcsl)rcpaid irerns(-apital asscts ri()l bci*g r-ic;::cciatr:d

{-apiral assets, nct

Total ,\sscrs

Liabilities-!ccour-:ts par-able

Retainai:e par-ab1c

()ther palablesBuildcr dcposits

,\ccrued intercst palablcRr;nr"l andcipation note par:aL:lc

l)uc to devclopers

l,ong-term dcbtl)ue *-it.irin {)rc \-ear

i)r-ie after {}n. 1'.ar

Total l.iabilitics

5 2,932,117 5 B,,l(r.N,8.18 S i 2,8rr.836 S

1 "0,1.1.81 3 1 ,441 "67

1

51,f39 73,189

21,238

4-0,i32((,.35it)

4.2t, 1 i11

,1,285

q I 16' a-1

396,858

16,15t)

21,238

"1*,532(:l,i 3i)

1,{J.16

4,285

s 12,859,836

1,411 ,61173,i it921,238,l(i,532

1.{180

851"88(r.i.1.r13,893

S 1,9,18,73{J S.1,ii28,6.15 5 8,.i6r,928 5 1.1,.1.13,303 15,12i"119 59,869,08:

$ 139,466 5 5,,+05 $

46,6*2

5 14.t,87l

16,662

3"296'/, -)f

14,|..811

46,662

3,2t)6

9,133

51(r,31tl

1.1,-17(;,(X]0

11,515,652

1,58.1q ?ii

I -ll

516,3 i i)

1,1,'176,000

1 1,575,652

1 ,1 I 0,{i{10

.12,966,0881.1 1 0,i](){}

:12,966,(i88

150.r85 1,712 52"t)61 .(r.l.i6J -fr,f,l-l,l.)1(r -0,8-18,6 1+

Deferred Inflc;ws of Resourcesl), lt rr, J lr{ ,l( fi\ ra\( :

Fund Balances/Net PositionFund 3alances)*r:nspcadablcl{csrictedL'nassigncd

Tri:a1 lrund }]alanccs'fotal l.iabilitics, l)cfcrrcd lnfkru.soi llesr:urccs and liuad l]aiar-rces

Net PositionNct inlcsrmcnt in capital asscrts

I{t.tricruri fur J. lrt:tnicrLlnrestricted

Total Net Position

150 5?,{13'16 l3 189 (73,1 8e)

4."28i r lQt

1 1 tRi ;iiI :-- ilrl

ll lRir\..-. '/(12,383,7ss)/i --.* ilo\\-r ."-"/

3,969,89.1 8,'113,861

1,77r.510

1,781,795

S 1,9:18,730

3,t69,89,i 8,,113,861 1,+,165,55i1 (1-1,165,350)

: -l,r rlx,6+5 : i.+65.01R \ ll. I I 1.lil1

(13,906,235)

3,510,623

(583.e20)

( 13,906,235)

3,510,623

(s83,920)

5 , lrt.!-0,i 1J S 10.9*C.i 11,

Scc :roacs to basic financial statclncnts.

14

Monrgome4, Counfi, Municipal Utiliry,.District Nrs. 113Statement o{Activities and Gover**tenta} Funds Revenues, Expenditures and Changes in,Fund fialancesFot rhe Year E*ded May 31, 2015

(leneral

liunrl

DcbtScn'icc

l jund

(-apital

Prolcctsl;uncl Tr;ral \ rlju: tmcnts

Statcmcnt of. \crir-iries

Revenues

Scu,er scn'icci)ropcrtr- taxcs

l)cnalrics and intcrcstTap cr;nnection and inspcction

-\ccrucd intcre st on bor,r-ls soldIliscellancousInr"es:mcnt carnings

Totai lLcr-cnucs

Expenditures/Expenses(lur:e nt scrr'ice opcrations

Prolcssional fccs(-ontractcd scfl.iccsllcpairs and mail:cr-raaccI'rilirics. \drr-rinistratlvc

Othcr(iapiral outiar

lJebt scn"icc

Principal

lntcrest and fees

l)cbt issurnce costs

llepreciationTotal lrxpcnditures/i ixpcnses

Revenues Over (Under)Expenditures

, s 732,305 S

3,983,108

11,111

247 $13i 1,8i011,132

s 712,385 S

997,306 2,985,802

1 1 ,.|'l.f

1 1,830

:15.196

6,328

(1 1,830)

5 73:,3i]5J { l)B lr )-l

1a 114

207,.1'13:07.:l-t3

1 1,,132

? ()io

S

7,58.i 10,859 21,'+{}2

1i Ji-))1 J(r)

1 ,95 1 ..1.15 3,016,6(ril 10,859 1,978,9{,1 39,69'f 5,018,658

1,12,208

383,85.t

268,035

76,6331{,117

9,358

.15,:160

) q2R

,115,000

1,120,746

214,298

1t,798,3:9

7.19,.185

1,.155,1641

356,506.42r.311

2(r8,035

76,633il1i09,358

I0 -qx lrc)

356,506

129,314

268,03576,633

53,250

9.358

;l15.000

? 1-l))-LI

1,.155,160

(19,798,329)

(.115,000)

244,153 2,414"394

1,:155,1 6{)

1,488,.1081,.188,.t08

930,-t10 1,88,t,1.1.1 22,217,272 25,031,826 (1 -68) 6.551.i)58

1,021,035 1.132,515 (22"2{X:,413) (20,052,862) 20,052,8(t2

0ther Financiag Sources/ (Uses)Proceeds from salc of boncls

lJrxd discount

l)r',t..d. lr,,m ll,,nd anticiP:rtr,)n fl()t(lltprr mtnt,,f lrr,nJ,tnticip.rrr,,n notL

Rcpalmcnt ol dclckrper adr-anccs

Net Change in Fund BalancesChange in Net Position

I unJ ll.tl.tnc, \r t l),,:iri,,nReginnirg r;f thc r-car

End of the year

5s3.ii56 20.716,944

(.1'13,2.10)

I l, l-6,000(5,280,000)

(3.t,0ii0)

2'1,300,00i)

(113,240)

14,.176,000

(5,280,000)(34,000)

(21,300,000)ll1 rto

(14,.176,004,

r lRa) l)00

3,+,000

1,021,03-r 1,68r,572 7,2.9,291 9,965,898 (9,963.898)

11,532,.100) (1,532,.t00)

(9,441,132)764,760 )aFll)1 I liJ;-(l 1.199,652 (11.6+6.-8+)s 3,969,89,t $ 8,.113,861 S 14,165,550 S

Sce notcs t<; basic {inancirl saaac.ncrts.

l -R1 -ai

15

q /)i t-Lio.q)\ $,979 53

(l-l:i"t prtgt inlrnlir.,ra/11' lrft b/cnk)

I (r

Montgomery County Municipal Utility District lYo. 113Notes to Basic .Financial StatesnentsMay 31, 2015

Note 1 * Summary of Signi{icant Accounting Policies

Thc accounting poLicics r;f i\k:ntgomcn'Courtr h{unicipal UtiLiq,'I)istrict No. 113 (thc "I)isrrict")conform with accr;unring principles eener:llh' acccptcd in the Unircd Statcs of ;\merica as

promulgated br ;hs (lclcrnmertal ,'lccaunring Standards Roard. Thc follorving is a sur::man, cf thcm<,st :ignificanl policit s:

Creation

The District was orgaaized, created and estabLished pursuant to Senate Ri11 No. 1963 in rhe 80'h

Regular Session of the Texas Legislature, codified as Chapter 8212, Special District Local Larvs Code(the "Acr') datedJune 15,2807, in accordance rrithArticle 11I, Secrion 52and Article X\'1. Section59 of the Texas Coastitution and the -{ct. The tsoard of Dkectors held irs irst meeting on ;\ugust31,2AA7 , aad the first bonds rvere sold on l)ecemb er 23. 2010.

The District's primarr. activities include c()nstructi()n, maintenance and operation of rvastervater,drakage, toads, parks and recrcational facilities. The District has contracted rvirh r-aricus consuitanrsto prrivide scn'ices to operatt: and administer the affairs of the l)istrict. The l)istricr has noempk;vces, relate d par-rol1 or pclsion cr.rsts"

Reporting Entity

Tire l)istrict is a polirical subdir.isior"r of the State of Texas 5lor.erned b,v an elected fivc-mcmbcrboard. Thc Gor-ernmentai ,\ccounting Srandards Board has esrabLished thc criteria for determiningrvhether or not an endtr- is a primar\- qor,ernment or a component unit of a priman' g()\'rrnrncnr.The primary criteria a:e that it has a separatel-v elected gor.erning bod,r'; it is legallr sepa:ate; and ir isfiscaliv independent of other state and local governmerts. Under these criteria, the Disrrict isconsidered a primary gor-ernment aad is not a component uait of an-v other governmena.Additionally, no other enrities meet ahe criteria for inclusion in the District's fiaaacial statemenrs as

componeat units.

Govemment-Wide and Fund Financial Statements

(]or.ernment-wide financial s.a:ements displav information about the l)istrict as a rvhole. Thesestatements focus on the sustainabilj:r <;f the l)istrict as afl endry, and thc changc in ag4rcgarcfinanciai position re suldng lrom rhe acdvitics of rhe fiscal period. Jnterfund activin, if an--v, has beenren:r;r'cd irom these statemfnts. These agryega:cd statemrnfs consist of rhc SlaluNnl, o/-X$ Posilianand the .\' laluruent of' Actiritie"r.

Iund {rnancial statements displal information at the ir"rdiviclual fund ler.cl. A fund is a grouping ofrelated accounts rhat is used !c maintain ci ntrol oyer resources that have bcen segregatcd for a

spccific purpose. Ilach fund ts considered to be a separate accounting r:ntirr'. t{ost gor.etnmenrstlpicallr, hat e maa1, funds; holeve r, gorernmental financial statemelts locus on thr mosa ilnportafltor "maior" lunds u,ith ncn*major fun<ls aggregated in a single column. The District has three

Ilorernrnental funds, thich are all considered mair:r funds"

17

Mrsxtgomeq, Counry Municipal Utility llistrict Na. fi3I*lotes to Basic Financial StatememtsMay 31, 2015

Note 1 - Sumrnary of Significant Accounting Falicies (continued)

Goverrme*t-Wide and Fur:d Financial St*terr:ents (continued)

The fi;ihwing is a rle scription c;f thc various funds uscd bl the l)isrricr:

'fhe (lcfle{all_uld is uscd to acc()u1lt ior the r>pcratiixs of the l)isrnct's sewcr and elrainagc

-crsrcm and all othcr linancial transacrions not reported in rther Lunr1s. Tl"rc principai soutce-* r;frfy.nlle arrj pr{}pefiy taxes and scrvcr scn'iec fecs. }ixpcnclitures includc costs associatcd with theeiailv r:pcratir:ns <;f rhc llistrict.The llebl Seltiee-lurd is uscd to accounr lor the pa1'ment of intercst and principai on thcDi-ctricr's general long-term debt. The priman- source cf rer-enue for debt sen-icu is propcrtrtaxe-s. llxpenditr:res include costs incurred in asses-sing an<1 cr:l1ecrir:g the,se taxes.

The Capitai Prcjects Fund is used to acccunt for ti:e expenditures of boad proceeds for the

construction of the District's \tr/ater, sewer, drainage and road facilitie s.

,

a

a

;ls a special-purpose $l{rrernment engaged in a single gol-.rcfitntal program, thc l}istrict has cptedto combinc irs goreramcnt-wide and funcl financial statemrnts in a columnar format showing an

adjustments c*lumn fi;r rcconciling items betrveea rhe nr.o.

Measareme::t Fqrc*s and Basis of Accounting

The governmcnt-rvide financial saa:emerts use thc cconcmic rcsourccs measuremcilt tocus and the

accrual basis cf accounting. Revc:rucs are recordcd rvh*n earn*d and expenses are reco:ded rvhen a

liabilin' is incurrcd, regardlcss of the timir:g of rhe relared cash llorvs. Propertl' taxe s are recognizedas reyt:nuc in the v*ar lor whicl': thev arc lcvied.

The fund Snancial statemcnts are reported using ahe current financ.ia1 rcsources measurement focus

and the modified accrual basis ol accounting. Revenue is recognized ir: the accounting period inrvhich it L:ecarnes borh available and measurable to fir:ance erpenditures of the curreflt period. Irorthis purpose, the gcl-ernmert considers reyenues ti: l:e ar-ailable if ther are collected within sixwdar-s of the end of the current {rscal period. Rereaues susceprible to accrual include p:opert\. taxes,

interest earned on investrnents and income from District operations. Prope:tv tares leceir.,able at the

end of the fiscal yr.ar ^re

treated as deferred inflox's because thev are not considered ar.ailabie to pa\-

liabilities of the current period. Ilxpenditurcs arc rccognizcd in :he accounting period i:r which the

liabilin is incurred. if measurable, except for unmatured interest on 1or:g term debt, rvhich isrecognized rvhen due.

Fiote 2 further details the adjustrnents from the golernmental fund presentation to the gol,erflmentrvide preseltation.

LJse of Restricted Resources

When both restricted and unrestdcted resources are alailablc for usc, rhe l)istrict uses restricredre-courccs first, thrn unrestricted res{lurccs as thcv are needcei.

i8

Montgome4, Coanty Municipal Utikty Disrrtct No. 113I{rstes to Basic Financial StatementsMa.v 31, 2015

Note l" - Summary of Signi{icar:t Accounting Policies (conrinued)

Prepaid ftems

(-ertaia parmcnts made br- thc l]istricr reflect costs applicable to future accounting pericds and arcrecr;rded as prepaid items in borh thc go\-ernmenr-w-idc and fr:nd {inancial statemenrs.

Receivables

r\11 receir"ables are rcpr;rted at thei: gross r-alue and, x,hclc appropriatc, arc rcduced br thc esrimaredpottion that is expcctcd to be uncollcctible.,\r i\Iar.31,2015, an allorvarce for uncr;ilectibleaccousts was not considered necessara-.

Interfund Activity

During thc course of opcrations, traflsacticns occur benveen individual funds. This can inclucleinternal :ransfers, pavables and receir-ablcs. This acti\-itt is combiaed as inrcrnal balances and iseliminatcd in borh the gor-ernment-wide and fund financial strtcmcnt prcse nrali()n.

Capital Assets

Capital assets, rvhich primariiv ccnsist of iafrasrrucrure (i.e., wastt:water, drainage a::d road faciliries)and parks ancl recreatjonal faciLirifs, are reported in the Eloyernment*r.vide financial starements. TheDistrict defines capital assets as assets rvith aa initial cost ol $5,000 or more and an csrimared usefullile in excess of one vear. Capital assets are recorded at historical ccst cr estimated historical cost.I)onated capital asstts are recorded at the estimatcd fair marker value at the date of donation. ThelJistrict has not capi:alized iaterest incurred during the construcrion of its capital assets. "l'he costs ofnormal maintenance and repairs that do lot add to the lalue of the asscts or materiallv cxtcnd assetlivcs arc not capitalizcd.

Capital assets are deprcciatcd using the s:raight-line method as follorvs;

Assets Uselul l-ifeSewer ar:d drainagf sl-stems

RoadsParks and recrearional faciliries

.15 r.ears20 1.s21"

l[J-20 r'ears

Deferred lnflows and Outflows of Financial Resources

A de{erred ir-rfli:rv of financial resources is rhe acquisition of resources in one period tha; isappiicabie to a future period, rvhile a deferred outflow of financial tesources is the consumprion offinancial resources in cne period that is applicablc to a future period. A deferred infk;rv resulrs fromthe acquisitica of an asset without a coresponding revenue or assulnprion of a Liabiliq-. ,\ deferredoutflow results from the use of atr asset rvithour a co:respondine expcnrliture or rccluction of a

liabi1in..

79

Mcntgomer,v County Municipal Utility l)lstrict 7{o. 113

Notes to Sasic Financial StatementsMay 31, 2015

Ncte 1 * Summary of Significant Accounting Policies (continued)

Deferred Infl*ws and Outflows of Iinancial Resources (continued)

At the lund 1evci, pr{.}pefiy raxes rcceivable not cr;llccted within 60 davs cf Itscal r-ear cnd do notmcct the availabilin' criteria required lilrr rcr enuc ruc(,gnition ancl are recorded as de ferrcd inflorvs offir:aacial resources.

Fund Balances * Gover*rnentai Funds

(lorernmrnral acccr:arin.q standalds establish the foilowing funrl balance classiiic;Ltrons;

|ionspcndable - amounts rhat canooa l:c spcnt cirher becausc thev are i* nonspendable form orbecause rher" are lcgallr. {.), contractualh' ruquired t{} bc maintaine d intact. The District'snonspcndablc fund balancc cr:nsists of prcpaid itetns.

Restrictccl , amcunts that can be spcr:t ixlv for specific pur?oses because cf consdrutionalprovisions or enabling lcgislaticn or L:ecause of constraints that are extcrnailr' imposed bv creditor.c,

llranrors, contributors, or the laws or regula;ions of othcr iloyernments. The llistict's :estrictedfund balances consist r;f unspeat br,:nd proceeds in thc Capitai Projects l;und ard propcrtr taxes

levied fcrr debt scn'ice in the Debt Scn'ice Fund.

Committed * amount"q thar can be used only for specific purposes determrned by a fi;rmal action ofthc l]oard of l)irecro:s. The lJoard is the highest level of decision-making authorin' firr the Disrric.(lonmitments mav be established, modified, or rescinded onlv tl'rrough ordinances cr re.colutiorsapprcved bv the Bcard. Commirted fuad balancc also incorporates contractual r:bligatiors to thcextclrt that eristing resources in the fund have bren specificalh'committed for use in sa;isfi,ing thosrcontractual requirements. The lJistrict does nr;t have an1' committcd fund balanccs.

,\ssigned - amouflts tha: do *ot mt:ea the criteria to be classified as restricted or committed brt thatare intended ro be usecl for spccific pury{isrs. The l}istrict has nor adoptcd a formal policv regardrngthe assignment of fund f-ialances and does not har-e anl assigned fund balance s.

Unassigned - all other spcnrlabie amounts ia the General liund and deficir balanccs in other funds.

When an expenditure is incurred fcr rvhicl'r committed, assigned, or u*assigaed fund balances are

availal;le, the District considers arnounts tc have becn spent f:rst out of cr;mmitted funds, thenassigned fuads, and final-ll unassigned funds.

2A

Mrsntgomery County Municipal Urility Oistrict No. 113l$otes to Basic Financial StatetnefitsMay 31, 2015

Nnte 1 * Summary af Signi{icant Accoundng Pcliciss (continued)

Use of Estimates

The preparation of financial statcrxcnts ia confirrrnin. with generalll acccpred accountlng principlesrequires management to make cstimate s and assumptions that affect the reporred arnounts of assrrsand Liabi[tie s, the disclosure oi ccrrtingent as.sets and liabilitie s at the date of the financial statements,and ter-enues and expenses/expenditures during the period reported. These estimates include,among others, the collectibiliti- of receivables; the useful lir-es and impairment of capital assets; ther-a1ue of amounts due to devetropers and the value of capital assets for rvhich the developers har-e no,been fuilt reimbursed. Estimates and assumptions are revieled periodicalll aad the effects ofrertsions are reflected in the ftnanciai statements in the period the\, are determined to be necessan..Actual results could differ from the estimares.

21

Monrgomery County Municipal Utility District No. 113hkstes to Basic Finaneiai StatementsMay 31, 2015

Note 2 * Adjustment frorn Governmental to Governrnent-wide Basis

Rectrncilia:ion olthe Governrnental .Funds Bala*ce Slteet to the Statement rsf Net Position

'foral iu*ri balancc, g()r-crnl"l-lcntal funcls $ 1,1"165,55()

IItIIIIIT

ItItT

IIItI

Capiial assrrs useri in gr;r'crnn:enta1 actir-itics arc ilr.lt financial resoxrccs and,

rhere i<>re , alr n(,t rcported as assets in gorcrnnental funris.

llistorical cosr

1-ess accunulaicd dcprcciadon{ihangc due to capital asscts

Long-term habiliries are not rluc and palable in the currcnt period and,

rherefore, are aor rep<;rred as liabilities in rhe g<>rernmental funds. Thcdif{brence corsisrs of:

Bor:ds paral:le, r:et

Bord anricipaai{xl il{xcr par:ablc

lnteres! palable

Changc dur: to k;ng-tcrm debr

Amounts rluc tr; rhc ]-)istrict's devcloper frrr prr:fundcd cr;nstrucrion a.rd

<;peradng arlr-arccs arc rect;r*erl as a liabi.lirv lnthc 5tu;ltl?/nl rtl'Xd jltttilian

Prrpcr&'taxes receirlrblc and rrlatcd pcnakics anrl intcrcst havc been lclicdand are duc, br:t iirc fi()r availablc sor>n cn<iugh r() pa1' cllrrcnt perir:d

expcnditure s anrl, thcre fi;rc) are dcfcrrccl in thc funds"

Proper&' raxes rcceitablcPenaln- and intcrcst receirable

C1'rangc duc to pr(,,pcrfy taxes

Tr;tal net pr;sition - g()1'ern:rlefltal actir.itics

s 4r,rt)1,932(4,r12,153)

(.+'t,076,t)88)

(1-1,,176,000)

(51 6,3 10)

64,366

8,823

45 -l1i 1:r)

(59,0(r8,398)

(11.575.65t,

73,18'

S fln070 il2r

22

Montgomeryl Counq/ Municipal Utility District IVo" 113A/o/es ro Basic Financial StaternefitsMa;,31, 2075

Note 2 * Adj;stment from Governmental to Government-wide Basis (crintinued)

Reconciliation of tlte Governmental Funds Statement of Revenues, Expenditures and Changesip Fcnd Balafices to tlte Statement of Actirities

Nct change in funrl balances - rotal grx-crnmeatai funrls

(iovcrnmental lunrls r1c nr>t reilorf r.\'enues that are not iivailable to parcurrrnt r;bligatir;ns. ]r: cr>ntrast. such rcvcnues are rep{)rterl in r}re .f tattru,tt/o.f';lrtiitits u-hen eamrd. The difletence is *;r px)perr1- raxes and relatedpcnalrics and intercst.

(lor-crnmcntal lunds rrp{}rt capiral outlal-s frrr der-ek>per reimbursemenrsand ccnstrucdon c{}sts as expendirures in the funds; hou'cver, in thcSlolurestl afActit.,ities, the cost of capital assers is charged to expensr rtler rherstimatcd usefui life of the asse t.

Capiral outlarsDeprcciation expense

The issuancc r;f long-tern:r dcbt plx.ides current financial res.rurces t()gorernmental funds, u.hile thc rcparment of principal uses currenr financialre-s()urces. Ho$.el'cr, neither transacri{)n has anr- e Ffect ,rn ncr asscts. ()thcrelcn-rents of debt linancing are reportcd differentll betu.cen the fund ancl

g()vernmert u.ide slatements.

ls,suance of lor:rg tcrm debtProceeds from issuance rif boncl anticipation notc11t;nd discountPrincipai parmenas

Repar-ment of bond andciparion n{xelntetest expense accrual

Amounts rcpaid to the I)istrict's der.eloper for opetating adr-ances providefinancial res{)urces at the fund level. but are rccorded as a liabiLin.in theJ ta le ruer I of' li d Po.ritio a.

Change in nct posirion of gor-ernrncntal actirirics

S 1 q -98 1?q

(1,.'88,,1i18)

s 9,965.898

r I i2-1

18,309,921

(29,893,113)

3.t.000

(21"300,000)

(14,476,000)

143,240,t15,000

5,280,000i?ii c)R1\

S 1,532,

21

Montgomery County Municipal Utility llissrict }fo. 113

Notes to flasic Financial StatementsMay 31, 2015

Note 3 * Deposits and Investrnents

Deposit Custodial Credit Risk

Custodial credit risk as ir applies to deposits (i.e. cash an<i certifica:es of deposit) is thc risk that, inthc cvent of the lailurc of the dcpositorr instituti,rn, e g()\-ernment will not be able to rcccr-er itsclcposirs or will not be able :o xcc{;r'cr collateral securirie-c. The Palt/ic };and.r Callcsrro/ ,\rt {t,bapter2257"Ttxzs (lovcrnmert {-odc) rcquires that all of :he l}istrict's rlcpr;sirs with financial instirutic;nsbe cor-ered br" fcdcral depositorl, insuraace and, if necessarr-, plcelgcd collateral hekl bv a third parrvcustodian. Thc acr furthcr spccifie s the tr-pcs , ,f st'curirics that can be uscd as collateral. ThcI)istrict's rvri*cn investment policl establislrcs addidonal requircmcnts for coilatcralization erl

deposits.

lnvestments

The District is authcrizcd bv the Pab/icliand,r Inyulnxnl Arr {{"l-rapter 22's(:,Trxas (lr;vernmcnt Codc)

to inycst in :he iollowing: {1) i;bligations rif the Uni:cd Starus or its arlcncics anrl instrumcntalides,(2) direct c;bligations of the State oi Tcxas c;r its agencies and instrumenralities, (3) ccrtaincollatcralized mortgagc ribLigations, {r}) othr:r obligations, rvhich are unconditionallv guarantced orinsurcd bt. the State ol Texas or the Unitcd States or its nlrcncies or inslrumel.aliries, incluriingobligations that are {ullv guaranteed or insurcd bt' the l,ederai Deposir Insurance Corporation or bv

the cxpliclt full fairh and credit of the l-lnited States, (5) certain ..1 rated r:r higher obligations ofstates and polirical subdivisions of anv statc, (6) i:onds issued, assumcd {}r suaraflteed L;r- the State of}srae1, (7) insurcd or ccllateralized cerdficates of deposit, (8) certain fu1lt' collateralized repurchaseagrcemenrs. (9) bankcrs' acceprances :vith tmitarions, (i0) commercial paper rated ,\-1 or P-1 r:rlrigher and a maturitv of 270 days cr 1ess, (11) nr:-1cad money market muaual funrls and no-loadrnutual funds, rvith 1ir:ritatior-rs, (12) ce:tain guaranteed inrestmcnr c{}ntracas, (13) certain qualiiied

l{or-ernmental iavestment pc;ols ancl (1rl) a qualificd securities lending program.

The l)istrict has adopted a :l,rittea i.nlestmert poiicv to establish the principlts br' t'hich theDistrict's in\iesamcot program shi;uld be n:ana5;cd. This policv further rcstricts the npcs ofinr.estmenrs in rvhich the Dis:rict rrlay inve st.

As c;f llai- 31, 2015, the l)istrict's investments coasist of the firlkrrvirg:

I;undCarn ing

Yalue

Ccrtificates of dcpo-.ir GeneralDebt Sen-ice

S 1,,1,11,611

The l)istrict's invcstrnents in cerdficates of deposit are stated aa cost, rvhich approrimates fair value.

T'l-p.s 396,858

1,0;1,1,813

24

Montgomerv County Municipal Utitity l)istricr No. 113It{otes ta Basic Financial StatementsMay 31,2015

Note 4 - Amounts l)ue to/from Other Funds

;\r-t-touats duc to/from orher funds at h{ar, 31,2{}13, consist of rhc follou.in{r:

lr"rrerfund

Rcccilable Par-able

Geleral FundDebt Sen-ice lrund 6,350

$ 6,350 $

s 6,350 S 6,350

:\mounts teported as due toffrom betrveen lunds are considered temporat loals needed iirrnormal operations and u,'ill bc rcpaid during the folbwing fiscai vear.

Note5-CapitalAssets

a summafl' oI changcs in capiral asse ts, ior the r ear ende d i{av 31, 2015, firllolvs:

ReginningSalance s .,\dditions Retirements

EndingRalances

Capital asscts n()i being depreciatedl-and and imprr;r-cments{lonstr-rctior: in progress

Capital assets being depreciatedSewer and rlrainage srsternsRoadsParks and recreational lacilides

Less accumulated deprecratt<;n

Seu,er and drainage sl-stemsRciads

Patks and tecreational facilidcs

$ 298,499 S

659,11568.{).1{) S 366,139

185,147$

73 1

957 "244

f;8,040 851,886

27 ,3(t1,2728,445,9392,583,568

7ll?-n;3,342,620

34,713,9191 1,788,5592,583,568

3i,i-J(){r.- I () 10,-55,327 49,146,046

(1,609.3,15)

(1,1 88,1 59)

(779,414)(58U,537)

28,4

r2 3RR -rr)t\-._ '. "-/(1,168,696)

111,6986,211

Subtotal depreciable capital asscts, net

Capiral 253sf-*, ret

I)epreciation cxpcnsc for the current year was S1,488,408.

S 35,26,ir,21B S 9,334,959 $ (173,398) S 45,425,779

,.)

Montgomery County Municipal Utilit;, Districr No. 113

Nestes to Basic -?i*ancial StatementsMay 31, 2015

Note 5 * Capital Assets (continued)

ln addition, the l)istrict has the follou,rng contractual commitments lor constluction projtcts

Contract,\mount

AmountsPaiti

Remaining(lorrrmitmr:nt

liish Creck Thoroughiare, cr;ss*'aik, turn lanes and

signal

I)rainage facilitics t() scl1-e 1&,ix;dforcst rlctcntion pond

ilcgnning balance

Amount borri;*,erlImount repaidEnding baiance

s 51 1,746 S .+19,958 S 91,j88

319,93{} 3.19,r30S 8(11,(116 S ,119.958 S .l-11,718

Nerte 6 * Bond A*ticipation l{o.e

The l)istrict Lrscs a bcad anticipation note (lJ.\lii) to prolirlc short term finarcing forreimbur.cerncilts to its developer for constfuction r:f capital improvcments. l)espite its short termnaturc, a R:\i{ is aot rccorded as a fund liabrlirv, sinec it x.,ill *r;t bc rcpaid from current financialr.sourccs and rvill bc r*paicl through the issuance of lcng term rlebt or an{ither R;\i{. It is, horver-et,reccrded as a liabilir xr thc government r.vide ler-cl.

,\t the beginning cf the fisca1 r'ear, the District had a R'\lJ outstanding in the amount of 55,28{1,000.

This BalJ rvas repairl on Septer:rber 1,?{}ll wirh pr*ceeds from rhc issuarce of rhe l}rstrict's Series

201,1 Unlirnited Tax lloads.

On December 17,2i11,1, rhc llisrrict issued a S14,,17(;,{}[i0 BAN with an irteresi rate of ].08!.'r,, rvhichis due or Decembcr 16,2015. ;ls discussed in l'iote 13, the District rr,ill repay this i};\i'l withproceeds from the issuance r;f rts Scries 2015 ualimited tax bonds.

The effects of these tralsacticn,c $n the llisrricr's short fcrm obligation,s are as lollorvs

s 5.28i),0ilii14,.tr76,000

r5 2R(l 000\'_'--''''_7

s 1.1,476,0iX1

Note 7 * Due to Developers

The District has cntcrcd into fina::cing agreemenrs *,irh its elcr.clopcrs fi;r the flnancing of theconstrucaion of rvafcr, sewer, drainage , park, recreaticnal and road facilities. Under the agreements,the developers will advarcc funds inr the construction of facilities to scn:c the lfistrict. Theder.elopers rvill bc reimburscd from prr;ceeds cf future bond issues or ()thcr larvfully ayailable funds,subiect to appro\.al bv T(ilr.Q (as requirecl). The District does not record the capital asset and relatedIiabiliry or the governmcrt rvide statements untii construction of the faciLitie s is complete.

The District's developers hale also advanced funds to ahe l)istrict for operadng expcnses

2{\

Montgomery County Municipal Utility Disrtct lr{n. 713Nctres * Basic Financial SraternentsMay 31,2015

Note 7 - Due to Developers {continued)

Changes in amounts due to developers during thc r-ear are as follr;rvs

llue to der-e1t;pers, beginnilg of learller-eioper reimbursementsI)er-eloper lunded con,strucdon and arlius tmentsRepar-ment of developcr adr-ances

l)ue tr; derreir>pers, cnrl cf r-ear

CrutractAmount

Pine Island at liToodlore st Se ctkrn I. seu,er and

drainage

Wood{orest Section 57 - scrrcr and drainageBonterra at Wsxldf(xest Section 2 * seu'er and

clrainage

\\'ooclforest Central Pine Street - seu,cr and

drainage\X/oodfr;rest Cearal Pine Street - roacl

lleerbourne Ridge llrive to Woodlorest Scction 57

- roadWoodforest Section 55 - seu.er and draina::eWor;dfrrrest Sectir>n 58 - scg,er and drainase$7ood{iire st Lift Station No. ,1

Woodf<rrest Secticn 59 - seg,er and draiaageWor>dirxesr Parkrrar- South Extension - seu,cr and

drainageBonterra at Wri<;dforest Scctiofl 2 collector toads

Pine Island at !(/oodforest Section 2 sex.cr and

drainageBoaterra ar \{/or>dlorest , land.*capingWo<;dforest Scction 63 - ses.cr and drainageWoodfixest Trails - 2015Central Pine Strcet - se\irer and drainage

\trirodfore s t Parkv,ay So uth ]\tcn sion ftVood lore -s tSection 53 to lrish Creek Thoroughfare) and FishCteck Improlcrnenas - road

q .o 7iR ()1 1

(18.759,(,18)

9,611.25{}

(3.+,000)q ll i7(^<,

ln addition, the l)istric. will olve the der-elopers approximateiy 912,79r,10(; rvhich is includcd in thefollowing schedule of c{}nuacaual comrnitments. The exact amounr is not knot'n undl appr(}vcd b,v

the TCI.Q and auditcd br the District's auditor. As prcliouslr. noted, rhesc projects nill bc rcportedin the g{lrcrnment-wide linancial staaemerts upon complet.ion of constr*ction.

ArnountsPaid

RemainlngComr-rritment

S 1,098,176 S (;3'|,1)5.tr S 161,122

1R{ ) tlq ?

2 031130

247,887

350,058

.150,540

943,693138,439421,893)-11 )ct)

,{.x),4}l}l)

441,8{}7

1 ,77 8,37 6

387,965503,(;5(r.154,98,+

612"850

1,140,468

1,637 ,91(t

1 15,157

\7) \))109,303

378,951

142,541

380,992395,114

I i? -10

350,058

450,540

r-l 1-1

2{},L36.+21,893

7")7 )())

900,i,)00

{:2,856

1,778,376

215.421,

503,656,+54,984

692,830

1,140,468

5 12"792,106 5 3.3ru,2-+- S 9,401,859

27

Mrs*tgomery Crsunry, Municipal Urility llisr$ct No. 113

JVores to llasic -Financia| StatementsMay 31, 281.5

NcteS-Long-TermDebt

I-ong rern debt is comprised of the follorving:

Bonds parableUlamortized discounrs

llue rr,ithin ()ilc \ ear

S ,1,5,035,0111)

r()ix q 1 ?,\.-""\- --/$ 4.1,076,t)88

s 1,110.000

Tl're District's bonds palable at }lar 31,2015, cr;nsists of unlimitcd tar boads as follorvs:

Scrics

Amounts()utstanding

( )riginal

lssue

I ntcrestitr ates

hlaturiry l)ate,i\r111ll\.

Bt;nnning/Enciing

I ntercstPar.n:e nt

Dates

Call

Datcs

201{l

2011 Rriad

2{}12

2{}12 Road

2013

2013 Road

2014

2014 Roael

$ 3,535,00{]

3,435.0tX1

1,6r5"i.101)

3,615,000

5,805,000

5,65il,txiti

17,200,000

4,101),il0l,

s 3.700,ti0ti

3,590,{100

i,7(r5,00i)

3."i)0,|il)0

5,r33,000

5.{r50"0{-it)

17,2i)0,01)0

4,1{ii},{il}ii

4"{}(}"/a to 6.25u,4:

3.50% to 6.llll(fiir

3.0ti% to 5.LlLl'f i

2.5t)0,lt to 4.20t1/o

2.50'lta t<; 5.i10'%

3.{J(}'),'o to 5.1i0'%

2.$tf/o to 4.01)%

2 "{}{}tl, t: * t 1.{X}'/a

Scpternber 1,

2013 - 2035

Septcmbcrr 1,

2413 - 2$35

Scptember 1,

2413 - 2436

Septernbcr 1,

2414 - 2036

Septcmbcr 1,

2411 - 2t|31

Seprember 1,

2')15 - 2{.}3i

September 1,

2{)15 - 2438

Scprcmber 1,

2{}15 - 2038

llarch 1,

Scprembcr 1

hlarch 1.

Scpteml;er 1

I{arch 1,

Scprernber 1

Ilarch 1,

Seprernber 1

ltarch 1,

Septembcr 1

Xlarch 1,

September 1

llarch 1,

Seprcmbcr 1

5farch 1,

Septcmber 1

Scpte mber 1.

2{i18

Sepre rnl:er 1,

2{.}18

September 1,

2419

Scpternber 1,

2{}19

September 1.

2421

$cptember 1,

2421

September 1,

2{}22

September 1,

2422

s 45,035,000

Payments of principal and interest on ali series of bonds are .o be pror-ided lrom taxes levied r;n allproperties withir t1":e District. Ir:vesrmert iocome rcalized by the llcbt Senice Fund frominvestmenl o{ idle funds urill be used to par' ourstanding i:ond principai and interest. The District is

in compliance rvith :he terms of its bond lesoludcns.

Ar N{ar 31,2075, rhe l}isrrict haci authorized but unissued boads ia thc amour. of St+t,6ztt,t)00 forwater, sewer and drainage facllitres; S3i),360,000 lor road impror.ements and S16,4,15,00ii for park andrecreational facili:ies.

28

Montgomery Co*nty Municipal Utiliry District b{o. 113Atroles to Basic Financial StatemefitsMay 31,2015

Note I - Long-Term Debt (continued)

()n Septembcr'1, 201;1, thc l)istrict issucd its 517,20{1,000 Series 2{11.1 Unihlred Tax Ronds at a ncrcflecdvc iaterest ratc of 3.8G19{)(r2t:/o tr; (1) rcimburse the developers for rhc cosl r;f capital assctsconstructed rvithin the District plus intcrest cxpense at thc net e ffectirc intercst tatc rt{ the bonds;(21 to rrpav a $5,280,000 Rr\N issued in the prer-ious fiscal r-ear and (3) to construcr Phase I o{ a

prrmancnl xvastfwatef treatment plant to ser1'e the llistr:ict.

Oa Octr;bcr 7f ,2A14. the lli,srricr issued its S.1,100,000 Serics 201;i Unlimired'Iax Road Bonds ar aner cffective intcre st rate of 3.652500% to (1) reimbursc the der-eiopcrs ft:: the cosr of capital asscrscc.,nstructed within thc l)istrict plus intere st rrpcnse at the aer e ffective intcre -st ratc of ti:e boncls.

Thc change in thc District's long term debr during the r car is as follows

ilonds pavable. beginning of r-ear

3r;nds issued

Bonds rerired[3,,rtrl: Prt able. t rtd ,,I r t'ar

24,150,000

21,3{10,000

('! 15,000)

S ,15,035.000

S

2q

Montgomery* County Municipal {lriliry,I}istricr No. 113

fitrores to Basic -Financial StatementsMay 31, 2015

I{ote I * L*ng*Terrn Debt (continued)

,\s of Llar'31,2{)15, annual dcbt sen-ice requiremcnts on bonds outstanding are as follox,-*:

Ye ar al lntcrcst Totals

2t)16

2$17

2()18

2{}19

242{)

2{}21

2422

2{.}23

2t)21

2t]25

282$

2027

2028

2029

2{}3{}

2031

2{}32

2{}33

2tt34

2{}33

2436

2t,3:2038

2{}i,

1,11i),0{i0

1,1.+{l.l}0{}

1,2{}t},0{i{.)

I )i: r ){ }f)

1,315,0{l{i

1,38(i,()lii,)

t,rlrl5,{i001.52{).{)00

1.615,{X.X}

1,69{}.tX}0

1,7;3.{i0{j1,855,illi{)

1,r55"00r)

2"1)60,iliJ{)

2,160.0{lil? )*(l ()(r(i

2,395,01I{l2 i-)fi 0()(r

2,635,{l{i0

2,78{},ii0i}

2"925,0{.r{}

2,465,{}0t}

2,165,0{}ll

1,415,{t0t)

SS 5 1,7,18,3,.9

1,719,46(t

1.689.,11(r

1,65i .1961,622"807

1,585,{}1 1

1,539.816

1,48{:,991

1.,13{},208

1,36r,33{}

1.304,116

1,2y,.92{'1,160,123

1,{}8{},,162

993,862

9tlil,546199"133

690.2S5

575,216

453,013\// 1

243,Q{)1ti3,950

28,3{10

$ 2s,699,800

2.858,578

2,859,.16(r

2.889,416

2.912,4r62 q17 H( J-

2,9{)5,1}11

2,{}84,816

3,0{16,994

3,035,208

3,05r,3391 (r-() I -1,

3,{)89,820

1 I 1l -nl3,74{},462

3,153,8(r2

3,170,5.1(;

3.194,133

3,210,285

3,214,21(t

3"233,t)13

2,668"426

2.268,954

1,11,13,300

S 'l5,il3s,ll0li S 70,13,1,800

Note9-PropertyTaxes

On N{av 1U, 20{i8, the voters of the l}isrrict authorized the l)istrict's Roard of l}irectors to 1er-r-

taxes annuallr' for use in Snancing gcneral operation,r limited to $1.25 per $100 of assessed value,

and rse in financing the maintroancc of rr:ad faciliries, limited to ${).25 per 510{} of asscssed value.

The llistricr's bond resoiudons require that propertl' taxfs bc lcvied for use ia paving interest an<l

principal r:n long-term debt ald fr:r use in pa,t'ing the cr:st of asse-csing anrl collecting raxes. Tares

levicd to frnancc debt sen'ice requirements on k:ng-term debt are without Limitruon as to ratc oramouflt.

30

Montgomeq/ Countlr Mu*icipal Utikty Distrlct AIo" 113h{ores to Basic Financial StatementsMa1,31, 2015

Note 9 * Property Taxes (continued)

,\11 properrv values and exempt status, if anr", arc determired bv the h{ontgomefi, Cr:untr- Ccntral;\ppraisal Di-srricr. .Lsst-qsed r-alues are dcielmined as of Januan' 1 of each l'far, ar rvhich rime a taxlien attaches to thc related property. Taxcs are ler-ied around October/Novcmber, are due uponreceipt and arc dclinquent rhc fol1ox,.ing lrebruan, 1. ])enaltv and interest attach t}:ereaiter.

Propeltr taxes are collected bascd on rates adr;pted in rhe vcar of rhe 1er1.. The l)istrict's 2{115 iiscalycar was financed thrcugh the 2il1:l tax ler-\., pursuant to which the lJistrict 1er-ied propertl. rare s ofS1.12 per $iOil of assesscd valuc, of rvhich 50.28 rvas allocatcd to maintenance and operatit;ns, $0.6{)rvas allocafed to watet, scwer and drainage debt senicc and $0.211 was allocated to road dcbt sen-icc.Thc re sulting tax 1er: rvas 5.1,033,,183 on the adlusted raxable value of 5360,132,,155.

Properr. taxcs rccr:ir.ab1e, at }Iar,31,2{i15, consisred oL the following:

(,urrent lcar taxes receivable

Pririr veats taxes receilablcS 60,s67

3.199

Pcnaltv and intercst receirable1)triperfi raxcs receivable

64,3(t6

I R21

s 73,189

Note 10 - Strategic Partnership Agreement

Lffectivc September 23, 2t){}8, the lfistrict and the City of Conroe {rhe "(iitr,") entered inro a

Strategic Partncrship .\greemcnt under which the Citr. may anncx the l)i,crrict for [mired purposes.The Distric. continues (1) to erercisr all porvers and functions of a municipal utilitl, distri* ar.d {2}to provide certain senices described in the agreement, and the Citr agrees to remir one half oi allrctail sales rax collected from retailers located rrithin the District's boundaries. The Cia,has noa \:etannexed the l)istrict for limited pur?ose-c. -\ccordingl,\,, the Ci:v has not 1.er imposed a sales tax iathe l)istrict ald therefcre, nc rebate rvas due or paid.

The Cit,v agrees rhat it wili not annex a1l or par of the llistrict during rhe inirial ten 1,far term of thisagtcemerl. The l)istrict rvill bc conr-elted ta full pu:pose anncsarir)n up()n rhe earlier of thefollorving dates: (1) the date on rvhich all debt of rhe District tha: is pavable lrom ad valorem tares isfullv paid and the l)isrrict has fulh' reimbursed the developer within the Disrrict in accr rdance withanr r-l'ritten reimbursement agreemen: or (2) l)ecembcr 31,2{i37. On rhe fuli puryr)sc anncxationdare the land included rvithin the boundaries oi the Disrrict shall be deemed to be within rhe lullpuryose boundan limirs r;f the {-itv without the need for anr- further acrio*. Upon such date allraxable properly within the terrirofl' of thc l)isrrict shali bercome subject :o ad valorem taxarion bvthe Ciry.

31

Mcsntgomery County Municipai {ltitly District tr/o. 113

Atrotes to flasic Financial StateffientsMay 31, 2015

Note L0 * Strategic Partnership Agreernent (continued)

tf debt of rhe llistrict remains outstanding on the full purpose annexauon conversion date or if thellistrict has :rot fullr. reimbursed anl. devek;per x.ithin rhe Districr in accr:rdance rv:th an! :l.rittenreiml'ir.rrsement agreerncnt, then the l)isrict sha11 become a "Limitcd di-ctrict". The "limired disrict"shall be krorvn as h{ontgomen Utilitv l)isrrict No. 113 and shal1 continue &rr a.erm through theearLicr of ten additional years or all outstanding dcbr has bcc* fullr' paie1. The por.vers c,i rhe "limitedclistricr" are restrictcd to rhe ler'l" aad collection of ad vak;rem taxcs sufficient tc meet theout:tlnding r.,lt'bt scn icc rt tluircmt nt:.

Thc (-in mav ertend the c:;istence r;f the "limitcd district" fcr succe ssive ten :'car acrms filr so longas ary debt of thc "limited clistrict" remains. 'Ihc "limitrd district" ct?lscs to exist 60 dar s after all

debr is paid and dtlc to all assers and improvcmunts r-e sts in rhr {lin-.

I{ote 11- Watev Supply Agreemert

il{SIrC }interpriscs ("h.ISEC"), supplies rvater to lJisricr rrsidents pursuant to an aglccmcnt rvirhrhe District's del-eloper. h{Sli{l owns, co*srruct-c, (}prrates and maintaias rhc watcr supplv ,rnd lvatt:rdistributbn svstems that sr:n c residents :vithin rhc l)istrict. The l)isrrict's deleiopcr has comtnittcdto pay a1l capital conncction fues, which mal be reimbxrsed 1-;t' the llistrict.

The l)isrrict is responsible &;r rhc design and construction of thc wastcwater treatment faciltiesrvirhin the Di-ctricr. Thc District has contractcd tith 5131::(-, rvhich can bc terminated, to operate thesystem on behalf of :he Disrrict. lISllC bi1ls customers residing lvithin the l)isrrict for se*,et scn'icebased on rate s set b,v the lJistrict in its rate r;rder and rvill remit collections to the lJistrict. As r:f i\{ar"

31,2015, XfSIiC had s+u,il: collcctcrl bu::ot yet remitteei ro thc llistrict.

Note 12 - Risk Management

The l)istrict is exposed tei r.aricus risks of loss related t{} torts: the ft of, damage to and dcsrructir:nof assets; errors and omissions; and personal iajuries. The risk cf lcs.o is c<;verecl bv commercialinsurance. Therc have been nr; significant reductit.rns in insurAncu c()\-eragc lrom the pririr r-ear.

Settlement amounts have not cxceeded insurancc c( )\'crarc for rhc cufreoa vear or the three pricrYeafs.

Note 13 * Subseq*ent Event

()n August 17,2015, the District apprr:r-ee1 the Preliminary ()fficial Statemca: and l'iotice of Sale torirs Series 2015 Unlimited Tax llonds in the amount of $2,1,91O,{Xi(.}. Prr:ceeds of the br;nds will be

used to reimburse the District's der"cloper for irfrastructurc improlcmunts in the District and torepal the District's $1,+,r176,0{10 B,\N.

32

Required Supplementary Information

33

Mortgomery County Municipal Utility l)istrict No. 113

Required Supplementary In{oattation - Budgetaq, Comparison Schedule - General FundFrsr the Year Ended .hfay 3tr, 201.5

OriginalBurig*t

FinalBudget Actuai

YarianccIrq;sitivc

(Negatilc)Rel'enuesServcr scn-icePropcrn'tarcsTap cr;nnectirin and ir:spectiri*hliscc]laneou-nInr-estme*t earnings

Tr)ta1 Rer-elruc-c

Expenditu:esCurrent scn-icc opcratir;ns

1)rofes.sional fecs

Conrractcd ser:-ice-o

Ii"epairs and maintenar:crUriLidr:sAclministratirr()ther

'li;ial i-rxpeaditures

Revenues Over Expenditures

Fund EalanceBeginning of the r-ear

End of the year

55ti,000 $

53{},{ii}07;,00{}

550,{)00 s987,378

73,000

732,1{}5 5

997"3062*1.4+3

11,,4322 ()i()

182.3{.}5() () ]R

132"443llll?

2,"bq

$

500 500

ll.ii(irt I(, 1'3-8 1.r51 "143

142,208383,85,1268.035

16,633tl r 1?1

9,358

338,567

166,{iOri317,(t4{l175,ii{X)5L),ilixl11,43t)12,5(X)

147,000519,64t)215.00i)5il,itii044-,4.5{}

12,500

-1 -O?

135,18{i(53.035)

{2{:,{:33;/i R-?,

3,142

7(;5.590 988,59{] 93i).,f 1li 58.18{i

3St,91t) 624,288 1,021,035 396,747

16(),760 1{:t1,7 6t} 7(:0,760

$ 1,150,(r7[i $ 1,3S5,{].18 $ 1,i81.795 5 39(:,117

34

Montgomeryr CoLmtJr Municipal Utili4, frisyict No. 113Notes to Required Supplementary fnformaticnMay 31, 2015

Budgets and Sudgetary Acccunting

.\n annual unappropriatcd budgct is adopted for thc (leneral l;und bv the District'-c Rcard ofI)irectors. The budget is preparcd using thc same method of accounting as for financial reporring.Thc budgct rvas ame nrlcd during the \-e af to rc{lcct chan!:e s in anricipated rer-enues andcxpcnditure s.

35

(l'f:i.r pagt irltrliarol/1, lrli b/cnk)

)()

Texas Supplementary Information

31

Monrgome4t County Muxicipal Utikty District No. 113

TSI-1. Seruices a*d RatesMay31, 2015

1. Sen-ice s pror-ided br, the lJisrrict iluring the l;iscal Year:

xf.i) 1,7 36

T

ItIIIIIIIIIIT

tIItI

Retail \\''ater

Rcrail Wastc*-arcr

Parks / Recreati<;n

Whoiesale Vater

\\ lrulr:a1,. \\ astcu att r

Ijlre Prorcc:ion

Soiid Yl'astcf C arbage

l;iood Ccntr;l

Itoads

X X

X

l)rainage

irigation

Se curin'

X

X

2. Rctail Sen'icc Ilrril'iders

f,.iru mar om.ir this infi.>rmatiErn if vriur disrrict docs nrit prn"irie retail -.cn-ices)

a. Rctail Ratcs fi;r a 5f B" mrrrr ({lr r:quir-alenr):

X

X

Parricipates in ioint vrrlture, regi<;nal sl"srem anrl/r;r x1'ast.1l'atcr sefi-ice (other than rmergencl interconncct)

()rhcr (Specifi')

llinimurn{-harge

IlinimumL sage

Irlat llarc ft'/ l'Jl

llate perr 1"{XX}

Clalk;ns ( ]verIlinimum Llsagc Usagc l-evcls

Wastcrvater: S ,tr7"55 -0- Y l':l/r\ -0- to ur:lir-ni:cd

District cnrpk;r's llinter avcraging fi;r *,astc*-atrr usrge ? | [ :'.. lrlx"Tr;ral chargcs pcr 1ii,0{)0 ga1l<ins usagc

b. \Yatcr anri Wastcu,ater ltetail Connections:

l.leter Size

Llnmetered. /,lI

It:sS fll,lrl )/-f

1"

I-')

2"3"

4tt

()

B,'

10"

Total Watcr

Tt;tal \\t'asrex.ater

Stc accompanving audit<>r's rep<.rtt.

\\iarcr \X"astervare r S ,17.55

Total(lonne clir,lns

1,736

;\cti:'e(lonnections

1,136

l..Slt{l ljacrorAcrir"c

i.iSl;C'S

x 1.1)

x 1.(i

x 2.5

x 5.il

x tl"llx 15.0

x 25.{l

x 5{i.l)

x B0.l)

x 1 15.1)

38

Montgomeq, County Municipal Lrtility Distrtct Np. 113

7SI-1. Se*.ices ancl RatesMay 31, 201.5

3. 'fotal \l,'ater Oonsun-rption during the fisca1 r-ear (r{)Lrnded tr: the nearesr rhr;usanctr)

I,\*ou mar- r;mir rhis information if lcur distdcr docs not providc u.ater)

Gallons pumpcd into -srstcl:n

Galkrns billed to cust()mers:

N/A \Xlarer'{ccounrabilin- Ratio:

(Gal1ons billed / (latrlons pumped)N/A\/,r

1. Srandbr i'-ecs (authorizcd onh'unclcrTWC Scction 19.231):

ft-ou mal omit this infrrrmation if xrur district dors nol len stanrlbr- fee s)

I)oes tl-re 1)istrict l"rare l)ebt Scn'ice standbr, fces? Ycs ,\ () X

1f Ie s, Date of the most recent commission ()rder:

l)oes the llisrrict have Operation and }laintenance sranr-lbr- fees? Yes

1f r"es, Date of rhe most recent comn-rission (Jrcler:

5. l-ocation of lJistricr (requirecl firr first audit r-eal or u'hen infrrrmation change s,

otherrl,ise this infrrrmation mar be omitrcill:

\() X

Is the l)isrrict l{}carr.1 enrirclr- u.ithin one countr-?

Counfi'(ies) in u.hich the District is locatccl:

Is the lfistrict locatecl rl.ithin a cin'?

Citl'(ies) in u,hich thc l)istrict i.q krcated:

F,ntirt lr- l_-lnu,d'f.l

Ycs X N

NIontsr>mc11- Counn'

liot at all X

Is the Disrrict located u.ithin a cilv's extra t<:rrirorial jurisrliction (Il'ff)?

}lntirelr- X Parth'

l'-Tls in n'hich the Distdcr is located: Cin of Conroc

.\rc 1l,,ard mcmbcrs appr>intcrl br an olfice outside rhe district? Yes

If Yes, br. rvhom?

Not at all

No X

Sce accompanling auriirors' rep<;rt.

39

-b{tsntg'rsnte4t County }ldunicipal Utility I}istrict -Nc. I13TSI-2 Gen erai "t;un d E.xpen dit ur"e s.I;or tbe Yeat Ended -fu{ay 31, 2075

Ilrolessioaal fr:csI-cgal,turlltI,,ngincering

(-r;ntractcd scrviccslSookkccping( )pcratr;r( iarbagc c<-lllcctionTap ct;nncctior ;:nr1 inspcctionSccuritt'

Repairs and rnainrc*aflcc

Ll tilitic s

Administrarivel)ircctors fcesPrinring and officc supplicsInsurancc( )tl-rcr

( )t}-rc:

llotal cxpcndilurcs

Repc>rting of Utilirv Scrviccs ir ;1ccr;:rlancc rvith l-ill 3693

I llectrical

See accr>r-r:panf ing auditt>rs' rcp()rt.

5

(-ost

T

IIIT

T

IIIIIIIIIIIIT

t2,8BO1 1,0{]L}

38,32814"2,208

18,i 50,1r,893

279,41178,025L8 375

-15. ) 854

268,1)35

7(: {:33

9,300tt 1)217,2626,638

\(t 1))

9,358

5 930,,11{.}

!sage6,t9.59,1kWh 5 76,633

,1{i

Montgomeq, County Murucipal Utility Disttict No. 113

TSI-3. InvestlnentsMay 31,2015

Irund

lclcnrification or(-ertificate

Nurnberlnterest

Rate

llarutirrlJate

Ralance at

{1nd r-rf Ycarlntercst

Rcccirabic(leneral

Certificate of depositCertificate of deposit

l)ebt Sen-ice

Ccrtificare of r-leposit(lcrtificatc of elcposit(.t'r'tificatt i )f Ll('P( )sil

(.r'rt ificatt' r rf tit f osit

Ccr:rificate of dcposit

Total * r\11 Iiunrls

See accr;mpanring auditors' report.

321 836

61161{)1

:118858,1

12864

531 653

90090038,12

1 852(Xt2097

0.3891o

0.409/o

h/27 /16I I /?i / li

1112111505/29 /1685121 116

05 /2{,116u3/21 116

216,596

15$,262

$ S 1{l

3t)8

39{,,858 318

{1.3016

0.75%

i).6()olo

0.501/o

{}.:5'l;

?J i ()-q

226.128))^ t)J

215,98{)

100,(r02

1{l()

15

11a

1 ,0.14,81 3

S 1,'1211.(r71

59

)')

11

Montgo*e4, County Municipal Lrtility District No. 113

fSI-4. Taxes Leuied and ReceivableMay 31,2015

h{aintenanccTaxe s

\{'-S-If DebtSen-icc Taxes

Roarl DebrService Taxes

201i 2t)12 2411

IIIIIIIIIIT

IIT

IIIII

Totals

Tarcs Re crirable " Bcginning of Ycar,\<-ljustments

,\riiusterl Rcceivablc

201 4 Original'l-ax l-*-t',\djustn:cnts

,,\djusted'Iax I-evr-

'I r,tal tr, Lrr' itcc,,rrnlr (l I,,r

'I'ar crillcctions:Culrcnt Ycar

Ilrior r-cats"l'ota1 Collectionsf'axes Receivable, irnil o1 Ycar

'faxes Receir-able, llt Ycars2t-)14

2t)13

2412Taxes Receir-ablc, Hld of Year

Propern- 1'aluaricns.l,and

lmpti)1-cmenfsPersonal Prr:pcrtr'F.xemptions

Total Pr<4:ern Yaiuadr:ns

T'ax Ratcs per S100 \'aluati*nI{aintenance tar rates

Debt serticc tax ratcs

Road

Water, sewer anrl drainage

S i (iQ, q

4

19,170

15

6,551 S 7,537 S

11

1,t.li)7.528

8122,158,990

1.8il5

7,531

863,:96722

.1,{)30.'1 1.}

3,369

) 086 6,4{}2 19 185

f .ii08.370 2,160.795 86'1"318 .1,033,.183

i,013,45* 2,1(t: .337 $71,855 4,052,668

()()j 2)r)

4.{,:7

a llH 1JX( ?r,o

851,339

6,05{)

3,972,9161;,38:

(){)1 .3t}6 2,13i.608S i6,15il S 33,749 5 1.1,.167 S 64,36('

85t,389 3,988,303

5 15,1,11 $

tr,{l0il

I

11 ()-()

1,478

1{i

1? J-l* q

I ?()*

.f

5 6U.56rj --i

24s 16,130

2{\14

S 33.7,19 $ 14,,167 S {t4.366

$ 9,1,663,060

271,2{}{},11,0

3,61.3,791

(t,3.15.106)

s ,17,518,000

1 ?- g- I r,Ro

2.411,116r2 5zlR l,t7t

q t)?()1 It-() q

r,2 0()t 310

1,{175,8[]9

$,224J33)

22,411,6*{}

34"{}52,631}

563,114, )RR 2 ]R.\-' ' .-- 7

$ 360,132,.i55 s t*5.:52.-69 591"242"076 S 57,669,55(t

$ t).28 S {i.31 S 0.,10 $ 0.40

0.24().60

{}.46

0.4i)

0.11

0.35

0.31

tl.4B

$

c t1) q 1.17 S i.i9 $ 1.19

S .1,033,483 S 2,050,457 S 1,121,.181 5 686"268Adjusted Tax Lerrl':

Percentage <.lf Taxcs Collccrcdro Taxcs Ler.ied *+ ___lg3!r- ____***213::

* N{aximum llalntenance Tar Rare Appr, ,r'ccl bv \torers: $1.25* l{aximum Road \{ainterlance 'fax Ratc Appro:'ed br'l'otcrs: $0.25

x* Ca.lculated as tares collected firr a tax I'ear dividcel br. taxcs ler"iecl for thar tax realSec accompanvir:g audit<;rs' report.

99.99qo 1i)0.00if1,

()n

()n\lal' 1{.}. 2008hlar-10 2008

42

Mantgomer7, Countl, Murucipal {ftiltry l}istrict No, 113

7Sf-5. Long-Term Debt Seruice RequirementsSeries 2010--by YearsMay 31, 2015

l)ue l)uring lriscalYears lrnding

Principal DueScptemL:er 1

v0,000() i 0(i( )

100,000

105,000

11{),00u

12{1,000

125,000

i 30,000

140,{XlO

15t),000

160,000

165,000

18i1,000

190,000

200.000

210,000

225,0002J0 000

25{),000

265.000

285,000

s 3,535,000

lnferest l)ucSeptember 1.

lIarch 1 Total2016

2017

201 8

2019

2{}20

2021

2{}22

2023

2{)24

2425

2{}26

2021

2A28

2029

2030

2431

2CI32

z\).).)

2034

2035

2436

191,519

187,819

183"919

179,(r88

1:1.9B1169,(t56

1(;3,(;81

157,306

150,556

113,213

135,169

126,531

111,15{}

1t)6,915

96,125

8.1,200

71,15{)-- 2r )i)

J1 IR-

26,094

281,519

282,819

283,979

28.1,688

284.981

289,656

288,(r81

2B?,306

290.556

293,273

295,1{:9

291,534

29 ,-.15{}

296,9751()(' 1 ) \291,20{)

296J54297.20{})()) 1*1

291,494293.906

S S S

8 906

S 2,57,1,028 s r, I 0() 02Rrc

See accrxrpanr.ing audirors' report.

+-)

"fil{onrg"omery County rt{unicipal Urility l)istrict h/o. 113

TSI-.5. Lottg'-Tenn l)ebt Seruice Require*tentsSenes 2011 Rr:ad-*bv Years.*{ay 31, 201.5

Ir

IIItIIIIttIIIIIII

Duc lJuring I'iiscalYcars l,lndi:rg

2(.j16

2{}17

201 B

2(,1{)

202{}

24212{}22

2{}23

2424.

24232{}2{:

24272{}28

20292{}3t}

2031ztj32203320342*35243{:

Principal l)ueScptember 1

l]5,00090,0(xl95,001)

100.{xxli05,0{}0115,{)(X)

120.t){10

125,{}i.ti)

135,0001,+5,()00

t 55,(i0{)16{},{lUO

17i),0i10

185,txi{i1r5,0tt2{) : f)( }f )

220,0002 11 0r)o

250,0(x)2(r5,0{l{}280

-g--ij:{r!-Sec accompanr-ing audi,or-c' rcpotr"

lnterc.qt l)uelicprcmber 1,

h{arch 1 'l-otal

$ $ 180,1561i7,494t;18i6170,31{)1{:{:,3111{t1,82911{:"17 4lil?i()115,1.+.+

i 3R 2?.)

131),701

I )2 iO()

113,5911{}3,11(:

92,9{}681,151)

68,'10{.}

51,1194il,19924,754

8,.lli0

$ 2('5,15(t267,4r4268,856?"lt 1 1

()

271,3442l(t,82)27 {:,771276,25{)281),144,Q1r-(l

285.7{i1

282,5t|9283,591288,71(t287,946286,1502118,,t00

2&9,71t)29{},199289,75$288,,1011

$ 2,162,128 q iR.r)7 I?R

11

Moatgome4t Cownry, Mcnicipal {ltility District Ntt. 113

TSI-5. Long-Term Debt Seruice RequirementsSeries 2012--by Years

May 31,201.5

Due l)urilrg l"'isca1

Ycar:s -linding

Prlncipal l)ucSeptember 1

lntcrl-.r I)ueSepternbcr 1,

I{arch 1 Total

2416

2011

201 B

2{}19

2020

2021

2422

2A23

24212025

2026

2027

2028

2029

2030

2{}31

20322033

2434203s2436

2037

,l{l,i)0i)

:tt),u0i)

,15,000

.+5,000

5{),(i{.}i.}

5{).(i00

ii {l{10

6{J,li0l}

60,000r,5 0(x)

70,000

75,tiri{l

8t),{J{Xl

85,00{}

90,000

95,0tlr)

100,0fx)

105,0i10

110,08i)

120,000

125,00{)

130,000

1t)?,0,16

107,346

1 1 0,871

109,521

113"*31

111,3.46

11.1..181

1 17,381

115,131

117,721

120,056

122.119121()11

I ?; i2R

126,863l), R1)

128,{t061){) 1))1 ?() lii r

1 34,1 73

133,(t(t3

132"926

S S 69,{)16

61.346

65,871

64"121

63.03,1

51 ,3,1(r

59,.181

57,381

ii 1 1li? -)l

50,{)56

17,11{)

43,931.10,528

36"8631? A-?

28,(r06a t 111

1q 150

t+"1i )s,ga:) {:))(,

S

s 1,695.000 s 965,092 S 2,6(;0,092

Sce accompanr"ing auditots' report.

':15

Montgomet3, County Municipal Utility District Na. 113

TSI-5. Long-Tetn Debt Senice RequirementsSeries 2012 Roacl--by YearsMay 31,2015

Due During Fiscal

1'ears Eading2{}16

2411

201 B

2{}1{}

2A2A

2$21

2$22

2{)23

2t)21

2t)2i2026

2A2l2028

2029

2i130

2431

2432

2t)33

24312035

2{i362t)31

Principal l)ueSr:pren'rbcr i

lareresl l)r:cSeptember 1,

llarch 1

L36,546r i_l ?i,i131"1961?q 1i1

12*,169l)) ---

1 19,000

1 1.1.?,{5

1{lr,9r3I lt-l - ro

98,9{i5()) 7

^\86"079

79,{l{i8- | /. 1a

63,838

55,535

46,72{}

37,380)1 J()J

16.8tiil

5,6(;9

$ 1,910,90(r

"lt;ra1

S ,{),{xi{i95,il(i0

l tx),(x)t)

105,(XX)

110,{i{ii)

i 1:,{liii}I )o ()(]r)

130,ii{i{)

135,00{i

1,15,0{.}t.}

151),(XXl

16U"LliX)

l-0 (l(10

175,iiii0185,0t)0

i 95,{it}0

21f),00i]

220.i100

230"{i00

245,(X.)0

260,0{i{)

270,000

$ S 226.51{,??(l ?il

2?:1 ,19(:;

234,155

236,1{}()

237 ":11

2lr) tir rt r

244.i,45?-l-l ()7 1

)Jq a)lt

218,965.)1, bl256.0j925,1,01)8

256,628

258,838

2tt5,531

2{:(:,72{J

267,38{})* ) J(tJ

276,8()0

215,6(:{)

$ 3,615,0ii0 q ( i2t ()rt(

See accturpanving auclitiirs' rcport,

46

Montgomery County Municipal Utihty l)istnct No. 113

TSI-5. Loag-Term Debt Serrice RequirementsSenes 2013--by YearsMay j1, 2015

l)ue l)uring Fiscal

Ycars Ending2016

201,7

201 B

2{}19

2{)2{)

2021

2fi22

2423

2021

2{)25

2{}26

2021

2028

2829

2*A2031

2432

2433

24342035

2436

2437

2{}38

S

See accor:npanr"ing auilitor,s' rcprirr.

Principal DucScptcmber 1

Interest 1)ue

Septembcr 1,

llarch 1 Total1,15.000

150,{i00

160,000

165,000

175.000

18ii,0{x}

190,000200 000

210.000

220,04021() {l(10

240,000

250.000

265,000

275,000

29{i,000

305,000

320,000

335,000

350,000

365,00{)

385,000

400,000

S ?JO ()l?

21(t,255

2.12,380riB 0-0211 r 1i127 (Ri

tz r )J1214,260

24631{)191 ,710188,3(r5

1 -R 2n0

161.355

155,(r35

113"{}i1

129,655

115.223

99,750

83,37s(r6,250

+^)-))q 6)\10,000

S 1ql q4?

396.255,102,380

,+03,070

:108.135

.1i17,585

41 1,335

111,2(t{)

41(;,310

111 .11{)118,365,118.2t)0

411,355

42{},635

418,077

419,655

12A,223.119,750

't18,375416,25t)

413,375

414,625.110,000

s 5,805,{}0i} s 3,691,867 $ 9.496.867

1t

Mrsntgomery Couxty Municipal Urility Disrrict Nrs. 1tr3

TSI-.5. L*ng-Term Debt Senice RequiremextsSeries 2013 Road--by YearcMay 31,201.5

lluc l)uring l'-iscai Frincipal DueSeptcrnber 1Ycars llnding

_:__il{l!r,

Sce accompanving auditors' rcpr:rt.

2016

2{}11

2{118

2$19

2420

2{}21

2*222823

2421

2{}24

2{}26

2027

2028

2{}29

203{}

2431

2{}32

2033

2034

2$35

2{}36

2{}37

2038

s 13it"000

1.lil,Oii0

1.15,000

155,m0163,()00

17{),tX.i0

180,11f0

i rii.0{x)200,{.i{x}

210,000

224"{tA1

:3i),{i0(l2,15,00(i

255.000

2i{.},0i}{.}

285,{}i}0

300.00t)

315,0{-il)

33ll,ii0035{i,000

370,000

385,{l0il

243,62s

2li lfill23{1,800

226,0{.\)

?r{ )(l-l)1-1 R2i)tt1 J);199.623t() I l?i]R? R?.

113,825

16,4,{119

1 i1 iql

1,11,t0{)

1)() Jl )i15,5fi1100,125

84,000

67,0i]0.ir,000

30,125

10,250

.) -),()_f

3i{},57 5

380.3ii0385,80{l

3r1,00{)3t(),97539,1"825

1q- -l r;3{}9,625

401,425402 82r

't03,825409,019

408,39,1.

411,90i1

114,112,{ 15,50{_)

413"125:11 ,l,lllii.)

417,000

419,0i10tl i r 1i

424,25{}

Interest IJucSeptembrr 1,

llarci'r 1 Tr.rfal

$ S

s 3,610.950 s 9,260,950

.18

Montgome4t Cou*4, Murucipai Utility District No. 113

TSI-5. Long*Term Debt Service RequirementsSeries 2014--by YearsMay 31, 2015

Due l)uring liiscaiYears linding

See accompan-ring audirors' report.

2A*2{)11

201 8

2019

2020

2021

2{}22

2,)23

20212025

2426

2027

2028

2429

2030

2031

24322033

2{}34

2i135

2t)36

2031

2038

2039

s 954.006

960,156q1) I $,

983,15(r

993"i561,008,9061 ()1i ()82

1,02;1,85(;

1.037,906

1 ,0.15,131lfiir, i121,067,031

I t)-(, 6$1,099,3,t,+

1,100,0501 lilc) I 1q

1J24,9191,130,819

1,139,3191 150728

1,159,300

1,155,581

1,178,6{Xl

Principal l)ueSep:ember 1

S '105,000-1?0 ono,140,000

,16{l,ixx)

,+8i),000

505.{){i{)

525,00i1

55{),000

58(.),{}00

605,000

635"000

665,000

695,1)1lt)

730,000

7(r5,000

80{1,(.t00

8,+0.{}il0

88l.),0tx.)

920,000

965,000

1,010,0001 055 000

I 110000

1,1(;0.000

s 17,2{i{1,000

Intercst llueSepternbcr 1,

I{arch 1 IOtal

183,200q ?i 7? 1 *!,i

S 5,19.006

54{1,i55

:32.1 56

523.156

513,756

503,906

$4,982,lf 4,856

451,946

410,131

-1? I i1)

142,031

381,632

359,3,1.1

335.050

309,1 19

280,919

250,819

219,319

185.728

149,300

11i1,581

68,600

23,200q I i?3 aRi

1

19

Montgrsmer;,* Cou*ty Municipal (ld$qt District Nr:. 113

TSI-5. Long-Te*n Debt Seruice RequircrxextsSeries 201,/ R*ad--by YearsMay 31, 201.5

1)uc 1)uring liiscalYcars iinding

Principal DueScprcmbcr 1

Interest llu*Seprer:rbcr 1,

llarch 1 'foral

24rc2{)11

2{118

2{}19

2{t2{.1

2021

2(|22

2,t23

2{}24

2{}25

2t)26

2021

2028

2{}29

2*3{)

2{)31

2$32

2433

2434

2435

203{)

243:2{.i38

2039

125,iJ00

1 1it,0{x)

i 15"0(i(l

i 2{),ii00

120,{i{i{)

i2i t)(r(r

i 30.{xl(}

tr 33,{}iJ(}

145,0{i0

1 5t),ixl()

i 55,{}00

160,{10{}

165,000

17!,iitlt)180,1101)

190,000

195,000llri ililli21ti,00ii

22{i,ixl023t),000

2,11),000

245,00()

255"0U0

128,738

126.381

12-:1,138

121,181

11r,38811tt"931

113,7381 r)() - (,)

i05"5{i31 {11 .1 37

96,563

91,831

B(r,963

81.862

7 (t,313

70,30{l

63,80{i

56,80t)

49,4t)6

41"612

.)J.J 1J

?J ir)rI

15,10{.1

5,100

253,138

236,387

239"138

241"181

239,38$

2,+1"937111-14

)JJ - (,)

2:0,5(r3.5t t1-251,5{}3)irR1-251.{}{:3

25{.,"862

25{t,313

2(r{),300

258,800

261.80i1

2:r,,+{}{}

261,612

263,313

264"3t11|

260,10{}

260,1{.ili

S S S

s 4,1i,{J"8ixl $ 1,961,0114 5 6,061,i14.t

See acclrmpant-ing auditors' rcport

5i}

Montgomery County Municipal Utility l)istttct No. 713

TSI-5. Long*Term Oebt Service RequirementsAll Bonded Debt Series--hv YearsMay i1,2015

l)ue During liiscalYears llnding

201{}

2011

2{118

2Q19

202{)

2{121

2l)22

2023

2{)21

2425

20261rt )f

2{}28

2429

2030

2031

24322433

2431

2035

2036

2{}31

2{}38

2{}39

See accompanl-ing auditors' report"

Principai DueSrprember 1

lnreresl l)urSeptember 1,

llarch 1

q 1 --18 ;-R1 ,1 19,166

1,(;89.416

1,651 ,1961,622.8{:1

1,595,011

1 ,539,B 1 (r

1,48(),991

i,430,208| 3(r0 310

1"301.1161 ?lJ R?ri

1,160,723

1.080.:162

993,86290{},5'+6

799,133r,q0 .)8 -

iti ? tf.

453,013\)) 1\1

2{}3.426

103,9502R 300

s 25.699,800

Total

$ 70,734,800

s 1 .1 10,000

1 ,1 .11-}.{ llX)

1,200,00{lI 2i5 0(){ )

1 11 i lto()

1,380.000

1,4:15,0{)0

1,520,i)00

1"6t)5,000

1,(;9{1,{.}0{}

1,775,it0t)

1,955,090

1,t55,0002,060,000

2,i (;0,000

2,270,000

2,395,000? t2ll 0{l{l

2 6i5 0(10

2,780.000.) 925 000

2,,+65,000

2 165 ('r0()

1,415,000

q 2 RtR t7g

2"859,466

2,889,416) qt) 4()(,

2,931.8Q1

? D6: ()11

2,98,1,816

3,00(r,9941 oii -){

}B

3,059,339

3,0f 9,1763,089,820

3,111,:233,140,,+62

3,153,862

3ilA.5163,19,+,1331 ?1n ?Ri

3,270,21(t1233 0ll\ )41 -'\;2,668,426? ?r.,1 ()q(t

I 4-13 1{l()

5 ,15,035,000

;1

Montgotne4, County Municipal Utility District No. 113

fSI-6. Change in Long-Tern Bonded DebrMav 31, 2015

Bond lssue

Scries 2(i1{i

Series 2()11

R*ad Scrii:s 2012

lnterest rate

I)ates intcrest pal'able

llarurin- rlates

lSeginning bonds outstanding

llonds i-c-cucrl

Sonds rctirc.l

Inrling boneis outstanrling

Intercst paid during fiscal i-car

Paving ageot's narne anrl c.in-

Serics 201i) & 2{111 Road

Scries 2012 and2012 R"oacl, Series 2i)13.

2{11 3 Road. 2(i1,1 and 2L}1,1 Roarl

BoniJ r\r:thorifi':r\.mounr Authodzcd br' \'otersArlount lssued

Rernainir:.g f-r; Be Issueci

:l.il{.}9,r, - 6.25qo

9/1;3/19/1/13 -9/1/35

3.Sti",/o - 6.0{)r%

911 3i1e/1113-el1/3s

3.{i0'1,'o - 5.il{}9i,

e i1;3 /1e/1/13 -e/1i36

$ 3,621),(X)0 S 3,51a"0{X} S 1.:31i"{iL}ii

(85,(X)il) 18f ) {)( )tl l (35,110r,

s 3,535,{.}(Xl S 3,435,000 S 1,695.i)00

s :1t5,{}1t 5 183,044 5 7t),821

lYe11s Iiargr; Rank, N.;\., |rlouston, TX

Rlgi,,n. llank. ll,,u:tr,n.'l X

\Yatcr, Sev'rr andIlrainagr: Sonrls Iioad Bonds Park llondsq I;i)??{ r{)()fl q

(28,60(],i]u{})'{7,4i}i1,0{10 s

(1;,0.10,00{,16,.145,{Xi{,}

All bonds are secured ll'irh tax r.l"rnues. Illnds mav also be securcil *'ith r,rthcr rc1'enues in combinationrvirh taxcs.

5 1,+1,62{l,tXi0 S 30,360,{10(} S 1(r,.}.15,000

$ 3"977,530

5 2,941,283

llebt Sen'icc i'"r-rnd cash and invcstr:cnrs balanccs as of llar' 31,2{}15

.\r'crage annuai debt selr.icc parment (principal and intercst) fr;r rema:ining term r;f a1l debt:

See acct;mpanling auditors' report.

52

Rtincl lrsucSeries 2ii12

Road Series 2(113

Serics 2{)13

Road Scrics 2{ll,lSr:rir:s 2[]1 :i

Road I()f2lS

2.i{}*it - 1.2001o

911 3 /1e/1114-el1l36

2.500/o - 5.00!te/1;3/1

e/1i11-e/1/37

3.00!'o - 5.00ctt) / 1; 311

9/1/15 -e/1/37

2.tXitl'/,r -;1.00%9/1;3/1

el1l13 - e/1/38

2.{j0% -.1.00'rte /1; 3 /1.

e/1115-e/1138

s 3"700,000 s 5,935,000 $ 5,550,000 s ) $ 2,1,150,000

17.200,000 -+.Ir r{ r.f rr r , 2 Llt r }.( rl }i i

(85,11{lq (130.000) (4i5.til0)

s 3,615,000 s 5,805,0i10 s 5,650,000 5 17,2{,)0,000 S .},10{),0{}0 S 45,035,000

S 138,73.i $ 25i,18il S 2-la,a-i S )*f, 12R S 54,161 5 1,111 ,262

ItIIIIIIIIIItIIIIII 53

Montgrtme4, County Municipai Utility District Nrt. X13

TSI-/a. Crsntparative Schedule of Revenues ard Expenditures - Ce*era] FundFrsr the Last Five Fiscal Years

:\rnou*rs2415 2011 2{}13

Rcr-cnur:s

Scg-cr sen-icc:

Prripcrn- taxes

Penalties and intcrcstTap connecti,:rn and ir:rspccri*nSlisccllane i>u,s

lnr-cstr:.rent carnings

Total Rirrr:nucs

q ;1)lili q

t9:,306

207,44311,432

? qia

183.472 S

5.11,89.1

85,875i) ?tit)

q13

261,073 S

373,671

1 18.301 5

228"913

2{}12

35,t_)75

) ()L(t

24

1t- -l8l5{}5

14,1556.1,5:(i5,126

142

2{}11

IItIIIIItIIT

IIIIIII

1) 1

1,951,,+'15 1,121,35.N 707,3(15 385.285 383,(182

IlxpcnditurcsCurrcnt sen-icc t;perar.irxs

Prlrfrssiorai fces

C<;ntracterl scn-iccsRepairs and n'rainlenancc

UtrlitiesI-eases

.{dmini-strarire( )ther

Capital outlarTotal llxpenditurcs

134;rq?-Q /..) )

171,5{:{,

39,43'

123,69,118i qil

)(t )*)

t- 1)J180,600

1s.9264,605

142,208383.854268.{,i15

/ (),().)-')

\(r 12)

9,35937,956

,t,088

11i,t)12171,1331 1 1,540

41.7141|i5,650

10 k?*5.525

15,0i0

147,1 86rl1 ,0693,1.2$1

33"65,+

18i).6{lil

21"92{}) )1(t

1- t1?

930.,11{1 66r,31{} 628,451 570,1}78 64f},31{t

$ .t52,0i,1 S ?8,91,1 S (18.1,jr3i S {.264.691)Iter.rrurs ()rer rI nJer l,,.,nen.litur,,. \ I rt?] rtiiI --:---:-::ji:-

*Pcrccntage is negligil:le

See accrimpiinr-ing auclitor.s' rep()rt.

5rf

Pcrcrnt of lund T<;tal Rcrenues201 5 2411 2013 2012 2{}11

38%,

50%

110+l o

.1lltl/o

374/o

53oir

-) -L 0

594,'o

1{o\,t

82o./o

t{)/.+o11"tlhlo/I {)

8,"10

1 o/n

9'/o

10ro

n0

1'%

1(X)% 1ix)% lllii9r -ru0% 100%

/o

200h

74o1o

+u

12rh1:OL.) L)

160ht0AU

)10,.

24ot>

1 {t'/'t

6n.'t:

159,r

4') o

1{}.\t

atl /

38%1t0 -

1 10lf t)

9'.,o

41rt.'r,

60it

1o.\:

100\

32o/o

I)i

tro-) o

tr0- ) {)

-t/.tt

{o,ti,loIO

38,'o)o-, 0

.18% 600h 89'ti, 1190 1,:, 1.690/o

:10-)L O 104,/o 110.h (.1941:) (69ola)

ff

Mottgome4. County Municipal Utikty Disttict No. 113

TSI-7b. Cotaparative Schedule o{Revenues and Expenditures - I}ebt Serrice Fund"Far the Last Five Fiscai Years

201 5 2t)11 2t)1i 2012 2411

IIIIIIIIItItIIIIIII

.\mr:unrs

Rerc:rulsFropern'raxcsFcnaltie s tnei intrrcsrAccrucrl inreresI oc bonds sr;ki

ItrisceliancousIiifc$tiarcnl earni11gs

Total Rer-cfluc,s

I-rxpendirure s

Tax collecrion sen-ices

Debt serr-iceP.i-.in"l

lnterest and iees

T<;ral Lrxpendirures

Rcvcrtucs ( )ver Expenditures

*Percentage is negligiblc

Sr:c accompanr-ing auciirors' rrf ()rt

$ 2,985,802

11,111

11,B3il

*.58+

$ 1,50{1.316

1i),{11'

25.19{}

1 4,{i

3,3?8

$ :41,157 S

1,82()

8,931

,15(i,857 S

1.896\ tt / 15,783

3,01(j,6(){i 1.539,?21 758,59.{ 1"61,1}74

1'tl- 2,6$) i t*)1,-Jt5

,18,388 2;,183 16,5{-i0 10"144

415,iX10 190,{ilji}

1,120,1i6 -+-l-.4e2

1,884,14,1 f .ii(,6,851 5*2.2-16 441,636

S 1,132,516 S,172.872 S 186,338 S 13,438 S 1-.254

'forai r\crirc Rcraii S"astc*'atcr (]rnnectir;ns 1,13{) 1252 768 333 191

5(;

Percent r;f ];unri Tr;ta1 Rertaucs2415 2{}14 2413 2012 2011

(X)9/o 91o11

1o'/a

L''L)

9Bu/o

10\t

liti

q8{ti,

10.h t)1oio

1r),|t: 9o/o

100% l)0,%1 1 {}l}i|lo 1i.)t)% 100%

aa /L\)

1 nol1+'ot?o+/ 0

2Bh

t ao/I1:- A

55%

at1/L't) 2ah

630,/s 69b,h -:013n\, 95%

97').,'o

ll o 25o/': ')'7al 100%,37ot'o

51

Mortgomery County Municipal Utility Distrsct No. 113

7SI-8. Board Merxbers, I{ey.?ersonnel and ConsultantsFor tlte Year Ended May 31, 2015

("/()'fhe Sfullcr i-au' Grcup, PI,I-C{iomplerc l)istrict }Iailing ,\ddress: i(1555 Southq'csr l'-rce1\-av Suire 20i}, Sugar l-ancl, TX 77179

l)i-*trict 3u-.iness'fclephone.i\uml:er: (281) 50{l-6{,15{]

Subn:ission l)arc of Ii:c lnost rccent l)isrrict l{egisrration }il;rn'r

(11X.'C Scctir;n-* 3(i.05'1and,19.()5,1): "]u1v 30, 2()15

I-imir on lircs of {}ffice rhat a l)ircct(}r mal rcceile during a fiscai lcar:

($ci L:r"lJr;arrl llesoiurir;n -- TWC Scction 49.0(ri.l{))

'f'erm of (lffice(I11ected <;r lice-c *f iixpcnsc

Appt;intecl) {}r {)flice Paiil Reimbursc-I)atellired * menrs

s 7,20t)

\ames: 'fitlc at l'ear llndBoard llembers

Daud Garrert

Ashler S. Grigsbv

Jcffrel Xielscn

Jarnie llingham

Gcnr:r-ir:r'e (lomcl

(}tnsulranls

The .1Iulicr 1-al'(iroup, P1-1.C

IIS.U{I }intcrprise,u, I nc.

llr"rdc {lruz, 1nc"

,,\ssessments of the 3c>uthrvcst, 1nc,

I lorlrglimen- Central rLpprai,ual l)istrict

Perdue, I3randon, Fielder, ColLins

& llott. LIP

LJA Engineering,lnc.

l.IcGrath & Cr;., PLLC

Roberr W. Baircl & Co.

TBG Partncrs, 1nc.

RBC Capitai llarkets

5112 - 5/16

5/11- 5/18

\ I I / \ / t rr

5/11- 5/18

5/14 - 5/18

\ ) la(l

i,8uli

2, 0{}

1,81il

f .i,)5i)

President

Yice Prcsident

Secretarr

Assisrant Secretan-

Assisraot YiccPrcsident

Attt;rnrl( )perator

13r;okkcepcr

Tax Collectr;r

Propern- \raluatir:n

Delinquent TaxAttotner,

Engineer

Auditor

Iinancial Adr-isor

Landscape r\rchitect

l"r.rrmcr

Iinancial Arlrisr;r

q 46

36

1.241,

Amou:rts

Pairl

t)3 /11{}8la{,

ri8/07

{t8/{}7

I.egislarion

a4lae

08/07

Annual

02/ 15

fi/a708/Ll7

$ 8,15,06i

41ii.r3{i

21,95,4

?l ) ll/,fl

25.4011

4,43

3.909,r153

53,2tltl

57.1,915

* l'iu al'Olfi* are the am()unts actuallr,paid ro a director during rhc l)istricr's fiscal vear

Scc accompanling ::uditr;rs' report.

58

mcgrath co., pllc · 2016-09-16 · mcgrath & co., pllc certified public accounlants f.o. box...

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