WILLIAMSON-TRAVIS COUNTIES WATER CONTROL AND AND

Transcription

1 SUPPLEMENTAL INFORMATION FINANCIAL STATEMENTS, INDEPENDENT AUDITOR S REPORT AND YEAR ENDED IMPROVEMENT DISTRICT NO. 1G WATER CONTROL AND

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3 FOR THE YEAR ENDED FINANCIAL STATEMENTS, SUPPLEMENTAL INFORMATION INDEPENDENT AUDITOR S REPORT AND IMPROVEMENT DISTRICT NO. 1G WATER CONTROL AND

4 Page TABLE OF CONTENTS Assessed Value by Classification OS 12 Principal Taxpayers 0511 Other Supplemental Information (OSJ) Services and Rates TSI 1 General Fund Expenditures TSI2 Taxes Levied and Receivable TSI4 Changes in LongTerm Bonded Debt TSI6 Temporary Investments TSI3 LongTerm Debt Service Requirements Comparative Schedule of Revenues and Expenditures Years T5I7 Board Members, Key Personnel and Consultants TSI8 General Fund and Debt Service Fund By Five Years TSI5 Texas Supplemental Information (TSI) Budgetary Comparison Schedule FS17 Required Supplementary Information Notes to the Basic Financial Statements FS3 Statement of Activities and Governmental Funds Revenues, Expenditures and Changes in Fund Balances FS2 Statement of Net Assets and Governmental Funds Balance Sheet FS1 Basic Financial Statements Management s Discussion and Analysis MDA1 Independent Auditor s Report 2 Annual Filing Affidavit 1

5 ANNUAL FILING AFFIDAVIT

6 ANNUAL FILING AFFIDAVIT 1 Form TCEQ0723 (Revised 10/2003) Notary Public in the State of Texas My Commission Expires On: (Signature of Notary) (SEAL) Sworn to and subscribed to before me this day of (Typed Name and TiUe of District Representative) (Signature of Representative) Date: By: on Environmental Quality to satisfy the annual filing requirements of Texas Water Code Section This filing affidavit and the attached copy of the audit report will be submitted to the Texas Commission (Address of Districts Office) Austin, Texas Conuress Ave. Suite 1300 September 30, 2012 and that copies of the annual audit report have been file in the District s office, hereby swear, or affirm, that the District above has reviewed and approved at a meeting of the District s Board of Directors on the 5th day of February, 2013, its annual audit report for the fiscal period ended located at: (Name of District) (Name of Duly Authorized District Representative) I, of the STATE OF TEXAS COUNTY OF TRAVIS

7 INDEPENDENT AUDITOR S REPORT

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9 Suite Congress Avenue FMail:,n&&uesbpiicLvm zcu zr.,nsbvik.conz (713) Austin, Texas Fax (713) (512) Houston, Texas Suite Worthan, Center Drive Texa5 Socier of Certtfied PubLic Accounranis Member of American institute of Certified Public Accountants 2 Fund be presented to supplement the basic financial statements. Such information, although not Accounting principles generally accepted in the United States of America require that Management s Discussion and Analysis and the Budgetary Comparison Schedule 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 a part of the basic financial statements, is required by the Governmental Accounting Standards General District as of September 30, 2012, and the respective changes in financial position for the year America. then ended in conformity with accounting principles generally accepted in the United States of the respective financial position of the governmental activities and each major fund of the In our opinion, the financial statements referred to above present fairly, in all material respects, promulgated within 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 of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but examining, on a test basis, evidence supporting the amounts and disclosures in the financial over financial reporting. Accordingly, we express no such opinion. An audit includes statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. We have conducted our audit in accordance with auditing standards generally accepted as not for the purpose of expressing an opinion on the effectiveness of the District s internal control These financial statements are the responsibility of the District s management. Our comprise the District s basic financial statements as listed in the preceding table of contents. responsibility is to express opinions on these financial statements based on our audit. 10 (the District ), as of and for the year ended September 30, 2012, which collectively We have audited the accompanying financial statements of the governmental activities and each major fund of WilliamsonTravis Counties Water Control and Improvement District No. Independent Auditor s Report WilliamsonTravis Counties Water Control and Board of Directors Improvement District No. 1G Travis County, Texas Certified Public Accountants MccALL GIBSON SWEDLUND BARFOOT PLLC

10 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 and Improvement District No. lg 3 February 5, 2013 McCall Gibson Swedlund Barfoot PLLC Certified Public Accountants 214 CaLt tl& 4urJi.4LJzv.(4W PLLC collectively comprise the District s basic financial statements. The Texas Supplemental Information required by the Texas Commission on Environmental Quality as published in the Our audit was conducted for the purpose of forming opinions on the financial statements that statements. The Texas Supplemental Information and the Other Supplemental Information have presented for purposes of additional analysis and are not a required part of the basic financial statements and, accordingly, we express no opinion on them. Water District Financial Management Guide and the Other Supplemental Information are not been subjected to the auditing procedures applied in the audit of the basic financial 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 assurance. procedures do not provide us with sufficient evidence to express an opinion or provide any WilliamsonTravis Counties Water Control Board of Directors February 5,2013

11 AND ANALYSIS MANAGEMENT S DISCUSSION

12 management of WilliamsonTravis Counties Water Control and Improvement District No. 1G In accordance with Governmental Accounting Standards Board Statement 34 ( GASB 34 ), the MANAGEMENT S DISCUSSION AND ANALYSIS MDA1 election held on November 2, 1999, within the boundaries of WilliamsonTravis Counties Water Control and Improvement District No. 1A, which was one of two resulting districts created Texas Water Code, and a division election held on November 7, 2000, within the boundaries of WilliamsonTravis Counties Water Control & ]mprovement District No. 1C, a conservation and reclamation district which was one of three resulting districts created pursuant to a division pursuant to a division election held on May 7, 1994, within the boundaries of WilliamsonTravis Counties Water Control & Improvement District No. 1, a conservation and reclamation district created by the 7l Legislature of the State of Texas, Sixth Called Session, Act of June 18, 1990, Travis County, Texas. The District is situated approximately two miles southwest of the central Constitution. The District was created to provide water, wastewater and storm drainage for the development within its boundaries. The area of the District at creation contained a total of approximately 195 acres and currently encompasses approximately 435 acres as a result of one exclusion of property and six annexations of property. The District is located entirely within 49 and 51 of the Texas Water Code and is subject to Article XVI, Section 59, of the Texas Ch. 21 Texas Session Law Serv. 100 (Vernon s). The District currently operates under Chapters The District is one of two resulting districts created pursuant to Sections through OVERVIEW OF THE DISTRICT to a deficit balance of $293,338. Debt Service Fund: Fund balance restricted for debt service increased from $605,112 in the previous fiscal year to S926,010 in the current fiscal year. Debt service fund revenues year. The District issued $12,115,000 of unlimited tax refunding bonds during the Governmental Activities: On a governmentwide basis for governmental activities, the balance was $531,197 and $91,811 was assigned to use for a budgeted General Fund deficit during the year ending September 30, The total General Fund balance was $623,008, a decrease of $79,253 from the previous fiscal year. General fund revenues decreased from $28,712 in the previous fiscal year to $27,533 in the current fiscal year. decreased from $1,303,218 in the previous fiscal year to $1,288,720 in the current fiscal current fiscal year. District had expenses net of revenues of $824,034. Net assets decreased from S530,696 General Fund: At the end of the current fiscal year, the unassigned portion of the fund FINANCIAL HIGHLIGHTS District s financial activities for the year ended September 30, Since this information is designed to focus on current year s activities, resulting changes. and currently known facts, it should be read in conjunction with the District s financial statements that follow. (the District ) offers the following discussion and analysis to provide an overview of the

13 OVERVIEW OF THE DISTRICT (Continued) MANAGEMENT S DISCUSSION AND ANALYSIS MDA2 The Statement of Activities and Governmental Funds Revenues, Expenditures and Changes in uses. These amounts are prepared using the modified accrual basis of accounting. The the income statement of a privatesector business. adjustments column converts those activities to full accrual, a basis that more closely represents fund balances resulting from current year revenues, expenditures. and other financing sources or Fund Balance includes a column (titled Governmental Funds Total ) that derives the change in The Statement of Net Assets and Governmental Funds Balance Sheet includes a column (titled assets will indicate financial health. Governmental Funds Total ) that represents a balance sheet prepared using the modified accrual basis of accounting. This method measures cash and all other financial assets that can be readily converted to cash. The adjustments column converts those balances to a balance sheet that more closely reflects a privatesector business. Over time, increases or decreases in the District s net OVERVIEW OF THE BASIC FINANCIAL STATEMENTS the District to present the required fund and governmentwide statements in a single schedule. The requirement for fund financial statements that are prepared on the modified accrual basis of For purposes of GASB 34, the District is considered a special purpose government. This allows accounting is met with the Governmental Funds Total column. An adjustment column includes those entries needed to convert to the full accrual basis governmentwide statements. Governmentwide statements are comprised of the Statement of Net Assets and the Statement of Activities. Environmental Quality (the TSI section)) 4. Texas Supplemental Information (required by the Texas Comnussion on 2. Basic Financial Statements 3. Required Supplementary Information 5. Other Supplemental Information (the 051 section) 1. Management s Discussion and Analysis (this section) This annual report consists of five parts: USING THIS ANNUAL REPORT jurisdiction of Cedar Park. Mill Road on the north and northeast. The District lies entirely within the extraterritorial business district of the City of Cedar Park (the City or Cedar Park ), bounded by Anderson

14 OVERVIEW OF THE BASIC FINANCIAL STATEMENTS (Continued) MDA3 can be used to finance day to day operations, totaled S623,435. The District s combined net assets decreased by $824,034 to a deficit balance of $293,338 from purposes, such as debt service or capital projects. The District s unrestricted net assets, which the previous year surplus balance of S530,696. Some of these assets are restricted for particular net of related debt Invested in Capital Assets Total Net Assets Restricted Unrestricted Total Liabilities Current Liabilities Longterm Liabilities Total Assets Current and other assets Capital and noncurrent assets S 1,583,594 $ ( I, ) (731,236) S (293,338) $ 530,696 $ (824,034) 623, , , , (79,091) (1,090,248) 15,965,049 15,736, , , ,736 15,214,601 15,090, , ,949 15,671,711 16,267,009 14,088,117 14, Governmental Change Activities Increase (Decrease) (571,605) (595,298) $ (23,693) Summary Statement of Net Assets The following tabie reflects the condensed Statement of Net Assets: Statement of Net Assets: FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE The Required Supplementary Information presents a comparison statement between the District s adopted budget and its actual results. Funds Balance Sheet and the Statement of Activities and Governmental Funds Revenues, full understanding of the information presented in the Statement of Net Assets and Governmental The Notes to the Basic Financial Statements provide additional information that is essential to a Expenditures, and Changes in Fund Balance. MANAGEMENT S DISCUSSION AND ANALYSIS

15 MANAGEMENT S DISCUSSION AND ANALYSIS Revenues and Expenses: Property taxes Other Total Revenues Management services Legal and accounting Other Debt Service Depreciation Amortization Total Expenses Change in Net Assets Beginning Net Assets Ending Net Assets Summary Statement of Activities Governmental Activities $ 1,318,312 $ 1,325, ,489 1,326,794 1, ,000 30,000 38,833 36,052 48,574 48, , , , ,192 1,146,359 72,341 2, ,197,398 (824,034) 139, , ,610 $ (293,338) $ 530,696 Change Increase (Decrease) $ (7,683) (2,007) (9,690) 2,781 (260) (123,111) 2 1,074, ,430 (963,120) 139,086 S (824,034) Revenues were $1,326,794 for the fiscal year ended September 30, 2012 while expenses were $2,150,828. Net assets decreased 5824,034. Property tax revenues in the current fiscal year totaled $1,318,312. Property tax revenue is derived from taxes being levied based upon the assessed value of real and personal property within the District. Property taxes levied for the 2011 tax year (September 30, 2012 fiscal year) were based upon a current assessed value of Revernies Fiscal Year 2012 $235,908,663 and a tax rate of $ per $100 of assessed valuation. Property taxes levied for the 2010 tax year (September 30, fiscal year) were based upon an adjusted assessed value of $229,089,474 and Ptoperty Tax Other Revenue a tax rate of $ per $100 of assessed valuation. 1% 99% The tax rate levied is determined after the District reviews the General Fund budget requirements and the Debt Service Fund debt service obligations of the District. The District s primary revenue source is property taxes. MDA4

16 ANALYSIS OF GOVERNMENTAL FUNDS MDA5 The Capital Project Fund purchases the District s infrastructure. The Capital Projects Fund had a $274,694 decrease in fund balance for fiscal year The District transferred remaining bond proceeds to the Debt Service Fund during the current fiscal year. The Debt Service Fund reflects an increase of $320,898 in fiscal year The Debt Service about the District s debt is presented in the Notes to the Basic Financial Statements. Fund remitted bond principal of $645,000 and interest of $590,299. More detailed information This fund balance includes a $79,253 decrease to the General Fund. For the fiscal year ended September 30, 2012, combined fund balance of S 1,549,018. the District s governmental funds reflect a Total Liabilities and Fund Balances Total Fund Balance 1,549,018 1,582,067 1,643,127 1,825,986 Unassigned 531, , , ,087 Assigned 91, ,554 Restricted , , ,899 Total Liabilities Other payables Accounts payable 38,870 27,527 20,460 25,267 31, ,283 7,224 9,187 6,916 7,984 Total Assets Receivables 28,845 19,505 16,799 20,181 Cash Cash equivalents and investments 1,520,016 1,557,776 1,611,107 1,787,929 S 39,027 S 32,313 $ 35,681 S 43,143 $ 1,587,888 $ 1,609,594 $ 1,663,587 $ 1,851, ,587,888 $ 1,609,594 $ 1,663,587 $ 1,851, L Governmental Funds by Year MANAGEMENT S DISCUSSION AND ANALYSIS

17 The General Fund pays for daily operating costs. On September 6, 2011, the Board of Directors BUDGETARY HIGHLIGHTS MANAGEMENT S DISCUSSION AND ANALYSIS MDK6 is presented in the Notes to the Basic Financial Statements. balance was reduced by $ More detailed information about the District s longterm debt The District owes approximately $16 million to bondholders. During the year, the principal Bonds Series ,000 Series ,000 Series Refunding 3,565,000 Total $ 16,185,000 Payable Series 2003 S 125,000 Series 2012 Refunding 12,045,000 The District has the following balances outstanding on unlimited tax bonds: LONG TERM DEBT Financial Statements. More detailed information about the District s capital assets is presented in the Notes to the Basic Capital Assets: Land and easements Water, wastewater and drainage Total Net Capital Assets Common and recreation areas Less: Accumulated Depreciation 14, , ,436,948 $ 274,138 $ 274,J38 $ 13,375,730 $ 13,685,924 9/30/2012 9/30/2011 (2,349,899) (2,039,705) Summary of Capital Assets, net The District s governmental activities had invested $13,375,730 in land and infrastructure. The detail is reflected in the following schedule: CAPITAL ASSETS When comparing actual to budget, the District had a positive variance of $22,118. More detailed approved a budget including revenues of $29,568 as compared to expenditures of $130,939. information about the District s budgetary comparison is presented in the Required Supplementary Information.

18 CURRENTLY KNOWN FACTS, DECISIONS, OR CONDITIONS MDA7 1300, Austin, Texas demonstrate the District s accountability for the funds it receives. Questions concerning any of This financial report is designed to provide a general overview of the District s finances and to addressed to the District in care of Armbrust & Brown, PLLC. 100 Congress Avenue, Suite the information provided in this report or requests for additional financial information should be REQUESTS FOR INFORMATION The adopted budget for fiscal year 2013 projects a general fund balance decrease of $91,811. the District s bond debt. 30, 2013 fiscal year) is approximately $227 million and the tax rate levied was $05562 per $100 The amount of assessed value of property within the District for the 2012 tax year (September of assessed valuation. Approximately 2% of the property tax will fund general fund costs, and approximately 98% of the property tax revenues will be used to make debt service payments on MANAGEMENT S DISCUSSION AND ANALYSIS

19 BASIC FINANCIAL STATEMENTS

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21 Assignedfor2ot3budgerdeficit 9[,811 4, $ Cash equivalent investments 90, ,503 Cash $ 39,027 $ $ $ , ,294 $ t.81l 1.549,01 S 4, ,027 $ $ 39,027 ASSETS General Service Projects Funds Adjustments Statement of Fund Fund Fund Total Note 2 Net Assets Debt Capital Governmental wide Government STATEMENT OF NET ASSETS AND GOVERNMENTAL FUNI)S BALANCE SHEET The accompanying notes are an integral pan of this statement FS TOTAL NET ASSETS S (293,338) S 1293,3381 Restricted for debt service 904, ,711 Unrestricted 623, ,435 Invested in capital assets, net of related debt (1,821,484) (1, ) Net assets: AND FUND BALANCES $ 635,751 S 952,137 S TOTAL LIABILITIES TOTAL FUND BALANCES 623, ,010 8 (1,549,018) Restricted for debt service Unassigned 531, (926,010) (531,197) (9t,811) Fund balances: FUND BALANCES / NET ASSETS TOTAL LIABILITIES 12,743 26,127 lfflerftsnd pavables. Deferred revenuetaxes ,833 (22,260) (4, ,926,179 15,965,049 Due within one year. Due after one year Accounts payable $ 7,224 $ Accrued interest payable Refundable deposits 5, , Bonds payable $ 43,132 22, ,224 LLABILITIES TOTAL ASSETS $ 635,751 $ $ 1,587,888 t4,083,823 15,671,711 Defen ed charges, net of accumulated Other 262 accstmulated depreciation. Land Interfund 4,294 amortization Capital assets, net of 712, , ,889. 9,493,640 Interest Wastewater System. Water Quality/Detention Ponds.. 2,022,649 2, Property taxes ,833 Common & Recreation Areas Water System Water, Wastewater & Drainage Facilities. 9,493,640 1,268, ,857 4,857 Investments 500, ,000 Receivables. (4,294) 712, , , ,000 2, , , ,

22 645, , ,562 12, (11, ) (31.651) Fund Fund Fund Total Note 2 Activities Generai Service Projects Funds Adjustments Statement of Debt Capital Governmental wide S , , (11,633,786) (31,651) (645,0(X)) 1 Government EXPENDITURES AND CHANGES IN FUND BALANCE STATEMENT OF ACTIVITEES AND GOVERNMENTAL FUNDS REVENUES, OTHER FINANCING SOURCESI(USES) overexpenditurea ( ( ) t ) t341,422) ( Dondinterest EXPENDITURES/EXPENSES TOTALEXPENDITURES/EXPENSES 105,787 1, ,380 1, ,828 1, $ S 1318,312 Interest , ,648 7,648 Other Current: Director fees. including payroll taxes Legal fees ,533 Audit fees Engiueering fees Management fees 30,000 30,000 Accounting fees 16,300 16,300 Nightwatchnian lights 18,098 l8,098. Insurance 2,699 2,699 Financial advisor fees Tax apprnisallcollection Repairs and maintenance 1,(l) Other Debt Sen ice: Bond principai Fiscal agent fees and other Bond Issuance Costs Depreciation Amoslization 310,194 1,146,359. 3,229 22,533 2,872 30,000 16,300 18,098 2,699 2,707 7, (14.831) ,400 (445,562) ,359 Excess I (deficiency) of revenues Proceeds from bond refunding Payment to escrow agent Bontl discount (12.115,000) ,786 31,651 NET CHANGE IN FUND BALANCES (79.253) ( ) (33.049) FUND NET Beginning BALANCESI ASSETS: of the year 702, , ,582,067 ( ) 530,696 End year $ 623,008 $ 926,010 $ 1, S ( ) ofthe $ (293,338) The accompanying notes sire an integral part of this statement P82 CHANGE EN NET ASSETS ( ) ( ) TOTAL OTHER FINANCING SOURCES/(USES) (999) ( ,563 ( ) Fundtransfers (999) 275,116 (274,117) Propenytaxes.iocludingpenalUes $ S S TOTAL REVENUES 27,533 1,288, ,317,056 9,738 1, REVENUES: WWLL4MSONTRAVIS COUNTIES

23 NOTES TO THE BASIC FINANCIAL STATEMENTS

24 The accounting and reporting policies of the District relating to the funds included in the 1. SIGNIFICANT ACCOUNTING POLICIES NOTES TO THE BASIC FINANCIAL STATEMENTS FS 3 liabilities of the District, which were previously recorded in the General Fixed Assets Account Group and the General LongTerm Debt Account Group. In addition, the governmentwide statement of activities column reflects depreciation expense on the District s capital assets, including infrastructure. The District s statement of net assets includes both noncurrent assets and noncurrent Governmentwide Statements: statements are prepared in conformity with GASB Statement No. 34, and include a column for actual results. governmentwide (based upon the District as a whole) and fund financial statement presentations. Statement No. 34 also requires as supplementary information Management s Discussion and Analysis, which includes an analytical overview of the District s financial activities. In addition a budgetary comparison statement is presented that compares the adopted General Fund budget with Basis of Presentation Governmentwide and Fund Financial Statements The basic financial are no component units as defined in Governmental Accounting Standards Board Statement No. 14 November 7, 2000 within the boundaries of WilliamsonTravis Counties Water Control and Improvement District No. 1C, a conservation and reclamation district. The reporting entity of the District encompasses those activities and functions over which the District s elected officials exercise significant oversight or control. The District is governed by a five member Board of Directors which has been elected by District residents or appointed by the Board of Directors. The District is not included in any other governmental reporting entity as defined by Statement No. 14 of the Governmental Accounting Standards Board, since Board members are elected by the public significantly influence operations and primary accountability for fiscal matters. In addition, there which are included in the District s reporting entity. forth in Sections through of the Texas Water Code and a division election held and have decision making authority, the power to designate management, the responsibility to Reporting Entity The District is one of two resulting districts created pursuant to provisions set these accounting policies are described below and, where appropriate, subsequent pronouncements will be referenced. accompanying financial statements conform to generally accepted accounting principles (GAAP) as applied to governmental entities. Generally accepted accounting principles for local governments include those principles prescribed by the Govenunental Accounting Standards Board (GASB), which constitutes the primary source of GAAP for governmental units. The more significant of

25 Governmentwide Statements (continued): The governmentwide focus is more 1. SIGNIFICANT ACCOUNTING POLICIES (continued) NOTES TO THE BASIC FINANCIAL STATEMENTS FS4 presentation of Account Groups, but provides for these records to be maintained and incorporates the information into the governmentwide financial statement column in the Statement of Net Assets. Noncurrent Governmental Assets and Liabilities GASB Statement No. 34 eliminates the major capital facilities. Capital Projects Fund Capital Projects Fund is used to account for financial resources restricted, committed or assigned for the acquisition or construction of The Debt Service Fund The Debt Service Fund is used to account for the accumulation of resources restricted, committed or assigned for the payment of debt principal, interest and related costs. General Fund accounts for financial resources in use for general types of operations which are not encompassed within other funds. This fund is finance the fundamental operations of the District are included in this fund. established to account for resources devoted to financing the general services that the District provides for its residents. Tax revenues and other sources of revenue used to General Fund The are accounted for with a selfbalancing set of accounts that comprise its assets, liabilities, fund funds, each of which is considered to be a separate accounting entity. The operations of each fund balances, revenues and expenditures. The various funds are grouped by category and type in the financial statements. The District maintains the following fund types: Governmental Fund Types The accounts of the District are organized and operated on the basis of (percentage of assets, liabilities, revenues or expenditures of either fund category) for Fund Financial Statements: Fund based financial statement columns are provided the determination of major funds. All of the District s funds are reported as major for governmental funds. GASB Statement No. 34 sets forth minimum criteria funds. financial statements is on the individual funds of the governmental categories. Each position resulting from financial activities of the fiscal period. The focus of the fund enhance the usefulness of the information. presentation provides valuable information that can be analyzed and compared to on the sustainability of the District as an entity and the change in aggregate financial

26 Basis of Accounting 1. SIGNIFICANT ACCOUNTING POLICIES (continued) NOTES TO THE BASIC FINANCIAL STATEMENTS period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures. if measurable, are generally recognized on the accrual basis of accounting when the related fund liability is incurred. Exceptions to this general generally accepted accounting principles. Property tax revenues are recognized when they become available. In this case, Measurable means that the amount of the transaction can be determined and available means the amount of the transaction is collectible within the current rule include the unmatured principal and interest on general obligation longterm available means when due, or past due and receivable within the current period liabilities of the current period. Such time thereafter shall not exceed 60 days. period are reported as deferred revenue. All other revenues of the District are recorded on the accrual basis in all funds. debt which is recognized when due. This exception is in conformity with and collected within the current period or soon enough thereafter to be used to pay The District reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the measurable and removed from the combined balance sheet and revenue is recognized. Tax collections expected to be received subsequent to the 60day availability available criteria for recognition in the current period. In subsequent periods, when revenue recognition criteria are met, the liability for deferred revenue is Property taxes are recognized as revenues in the year for which they are levied. applied to a fund is determined by its measurement focus. All governmental fund expenditures and other financing uses) in the net current assets. Governmental when a liability is incurred, regardless of the timing of the related cash flows. increases (i.e., revenues and other financing sources) and decreases (i.e., funds are accounted for on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to of accounting. Revenues are recorded when earned and expenses are recorded is reported using the economic resources measurement focus and the accrual basis Governmentwide Statements Fund Financial Statements are included on the balance sheet. Operating statements of these funds present The The governmentwide financial statement column accounting and financial reporting treatment types are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally accrual (i.e., both measurable and available). Governmental Funds FS 5

27 NOTES TO THE BASIC FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES (continued) Budgets Fund on a basis consistent with generally accepted accounting principles. The District s Board Directors utilizes the budget as a management tool for planning and cost control purposes. The budget was not amended during the current fiscal year. and Budgetary Accounting A budget was adopted on September 6, 2011, for the General Pensions The District has not established a pension plan as the District does not have employees. The Internal Revenue Service has determined (hat Directors are considered to be employees for federal payroll tax purposes only. and Cash Cash Equivalents Includes cash on deposit as well as investments with maturities three months or less. The investments, consisting of common trust funds, money market funds, and obligations in the State Treasurer s Investment Pool are recorded at cost, which approximates fair market value. CapitalAssets Capital assets, which includes Land, Common and Recreation Areas, Water System, Wastewater System and Water Quality/Detention Ponds are reported in the governmentwide column in the Statement of Net Assets. Public domain ( infrastructure ) capital assets including water, wastewater and drainage systems, are capitalized. Items purchased or acquired are reported at historical cost or estimated historical cost. Contributed fixed assets are recorded as capital assets at estimated fair market value at the time received. Interest incurred during construction of capital facilities is not capitalized. Capital assets are depreciated using the straightline method over the following estimated useful lives: Asset Common and Recreation Areas 5 30 Water System Wastewater System 5 50 Water Quality/Detention Ponds 50 Years of of Interfund Transactions Transfers from one fund to another fund are reported as interfund receivables and payables if there is intent to repay that amount and if the debtor fund has 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. LongTerm Debt Unlimited tax bonds, which have been issued to fund capital projects, are to be repaid from tax revenues of the District. In the governmentwide financial statements, longterm debt and other longterm obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. PS 6

28 LongTerm Debt (continued) 1. SIGNIFICANT ACCOUNTING POLICIES (continued) FS 7 were available to he issued. disclosed all material subsequent events through February 5, 2013, which is the date these statements Subsequent Events Accounting Estimates The In preparing these financial statements, management has evaluated and principles generally accepted in the United States America requires management to make estimates expenditures during the reporting period. Actual results could differ from those estimates. assets and liabilities at the date of the financial statements and the reported amounts of revenues and and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent preparation of financial statements in conformity with accounting reported in governmental funds. See Note 11 for additional information on those fund balance extent to which a government is bound to observe constraints imposed upon the use of the resources classifications. Definitions, establishes fund balance classifications that comprise a hierarchy based primarily on the Fund Equity GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type financing sources and uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures. as other financing sources. Premiums and discounts on debt issuances are reported as other as well as bond issuance costs, during the current period. The face amount of debt issued is reported th the fund financial statements, governmental fund types recognize bond premiums and discounts, NOTES TO THE BASIC FINANCIAL STATEMENTS

29 Adjustments to convert the Governmental Funds Balance Sheet to the Statement of Net Assets are as 2. RECONCILIATION OF THE GOVERNMENTAL FUNDS Change in Net assets of governmental activities $ (824,034) Depreciation (310,194) Amortization (1,146,359) (1.456,553) Governmental funds do not report as other financing source/(use) (449,563) 665,568 Tax revenue when collected 9,738 Governmental funds report Changes in Fund Balances Amounts reported for governmental activities in the Statement of Activities are different because: Adjustments to convert Ihe Governmental Funds. Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities are as follows: Net assets of governmentai activities $ (293,338) in the governmental funds financial resources and therefore are not reported statements, regardless of availability. Governmental Issuance discounts, net of accumulated amortization 275,399 Longterm liabilities are not due and payable in the current governmental funds but riot available Capital assets used in governmental activities are not Capital assets 15,725,629 funds report deferred revenue for revenues earned are not reported in the governmental funds Less: Accumulated depreciation (2,349,899) 13,375,730 Deferred charges are not financial resouces and therefore Deferred charges, net of accumulated amortization 712,387 Revenue is recognized when earned in the governmentwide period and therefore are not reported in the Bonds payable (16,185,000) Accrued interest (43,132) (15,952,733) Fund balances total Governmental Funds $ (33,049) Capital expenditures in period purchased 445,562 Bond sales and related bond discount Bond principal in year paid 645,000 Interest expenditures in year paid 14,831 governmental funds S follows: NOTES TO THE BASIC FINANCIAL STATEMENTS FS8

30 The investment policies of the District are governed by State statute and an adopted District 3. CASH AND INVESTMENTS NOTES TO THE BASIC FINANCIAL STATEMENTS FS9 Public funds investment pools rated AAA by a nationally recognized rating agency. rating agency; and Securities issued by a State or local government or any instrumentality or agency thereof, in the United States, and rated in one of the three highest categories by a nationally recognized Mutual funds rated AAA by a nationally recognized rating agency; and value of $1 per share; Money market mutual funds with investment objectives of maintaining a stable net asset Obligations of the United States Government andlor its agencies and instrumentalities; The District s investment policy requires that District funds be invested in, among others: and considering the probable safety of their capital as well as the probable income to be derived. Credit risk. The District s investment policy requires the application of the prudentperson rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, Other mutual fund investments are required to have weighted average maturities of less than two years. fewer; and Money market mutual funds are required to have weighted average maturities of 90 days or declines in fair values through investment diversification and limiting investments as follows: Interest rate risk. In accordance with its investment policy, the District manages its exposure to In vestments Texas banking institutions; depositories must fully insure or collateralize all demand and time Major provisions of the District s investment policy include: depositories must be FDICinsured Cash At September 30, 2012, the carrying amount of the Districts deposits was $1,034,027 and the Investment Policy that includes depository contract provisions and custodial contract provisions. bank balance was $1,034,027. The bank balance was covered by federal depository insurance and deposits; securities collateralizing time deposits are held by independent third party trustees. other pledged collateral.

31 Credit risk (continued) 3. CASH AND INVESTMENTS (continued) NOTES TO THE BASIC FINANCIAL STATEMENTS FS10 Custodial credit riskdeposits. Custodial credit risk is the risk that in the event of a bank failure, the District s deposits may riot be returned to it. The government s investment policy requires that the District s deposits be fully insured by FDIC insurance or collateralized with Obligations of the United States or its agencies and instrumentalities. As of September 30, 2012, the District s bank deposits were fully covered by federal depository insurance and pledged collateral. individual securities are to be limited to ensure that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. As of September 30, 2012, the District did not own any investments in individual securities. Concentration of credit risk. In accordance with the District s investment policy, investments in of the District s position in the pool is the same as the value of the pooi shares. Inc. manages the daily operations of the pool under a contract with the Comptroller. The fair value Comptroller of Public Accounts of the State of Texas has oversight of the pool. Federated Investors, The District invests in Texpool, an external investment pooi that is not SECregistered. The State (2) Restricted for Purchase of Capital Assets. (t) Restricted for Payment of Debt Sen ice and Cost of Assessing and Collecting Taxes. S I.520.Otó S 590,313 S 929,503 $ Certificates of Deposit n/a 995, , ,000 Texpool $ 525,016 $ 90,513 $ 434,503 $ AAAm Standard & Pools Investment Fair Markes Value Unrestricted Restricted (1) Restricted (2j Rating Rating Agency General Debt Service Capital Projects Investment Rating Governmental Fund At September 30, 2012, the District held the following investments:

32 Property taxes attach as an enforceable lien on January 1. Taxes are levied on or about October 1, 4. PROPERTY TAXES NOTES TO THE BASIC FINANCIAL STATEMENTS FS1 I Texas Legislature. The District is prohibited from writing off real property taxes without specific authority from the $ 210 $ $ 11,671 $ 427 $ 21,833 $ Current year levy Prior years levies Fund Fund Total General Service Debt The property tax rates, established in accordance with state law, were based on 100% of the net year ending September 30, 2012, based on total taxable assessed valuation of $1.50 was established by the voters on August 11, assessed valuation of real property within the District on the 2011 tax roll. The tax rate for the fiscal $235,908,663 was $ on each $100 valuation and was allocated to the General Fund and Debt Service Fund at $0.010 and $05465, respectively. The maximum allowable maintenance tax of Property taxes receivable at September 30, 2012, consisted of the following: District established appraisal values in accordance with requirements of the Texas Legislature. The District levies taxes based upon the appraised values. The Travis County Tax Assessor Collector bills and collects the District s property taxes. The Board of Directors set the 2011 tax rates on September 6, are due on November 1, and are past due the following February 1. The Travis Central Appraisal

33 made between funds, is as follows at September : 5. INTERFUND ACCOUNTS A summary of interfund accounts, which resulted from the time lag between dates that payments are NOTES TO THE BASIC FINANCIAL STATEMENTS PS 12 Total capital assets, net net of accumulated depreciation 13,411,786 (310,194) Total capital assets being depreciated, Water. Wasrewater & Drainage Facilities Total accumulated depreciation Water System Water Quality/Detention Ponds Wastewater System Common Areas (8,232) (1,454) (178,711) (29,543) ( ) (49,198). (57,836) (7,539) (9,686) (208,254) Less accumulated depreciation for Wastewater System Water System Water Quality/Detention Ponds Total capital assets being depreciated Capital assets being depreciated: Common Areas Water. Wastewater & Drainage Facilities , , ,869 1,477,143 1, , , ,543 Capital assets not being depreciated: Land $ S 10/1t201 I Additions Deletions 9/30/2012 Balance Balance A summary of changes in capital assets follows: 6. CHANGES IN CAPITAL ASSETS General Fund S 4,294 S 4,294 $ $ 14,543 (65.375) (1.629,364) ( ) 13,101, ,685,924 $ (310,194) $ $ 13,375, (1.406,904) ( ) ( ) (310,194) (437,220) 274,138 Debt Service Fund Debt Service Fund $ 4,294 $ General Fund Receivables Payables Interfund

34 2012: The following is a summary of bond transactions of the District for the year ended September 30, 7. BONDED DEBT NOTES TO TIlE BASIC FINANCIAL STATEMENTS FS13 whole of from time to time in pail, are redeemable beginning September $12,045,000 interest rates which range from 2.0% to 3.75%. Bonds maturing on or after September 1, 2019, in $3,565,000 interest rates which range from 2.0% to 4.375%. Bonds maturing on or after September 1 in each of $275,000 S Unlimited Tax Bonds: Bonds refunded Bonds retired Bonds payable at September 30, 2012 S 15,909, Unlimited Tax Refunding Bonds payable serially through the year 2030 at beginning September 1, the years 2017 through 2027, inclusive, in whole of from time to time in part, are redeemable Unlimited Tax Refunding Bonds payable serially through the year 2027 at Unlimited Tax Refunding Bonds: 4.10%. Unlimited Tax Bonds payable serially through the year 2013 at art interest rate of $175, Unlimited Tax Bonds payable serially through the year 2013 at an interest rate of 3.70%. 4.30%. Unlimited Tax Bonds payable serially through the year 2013 at an interest rate of Bonds payable at September 30, 2012, were comprised of the following individual issues: Bonds payable at October 1,2011 Bonds issued Bond discount, net of accumulated amortization ( ) (645,000) ( ) $ 16,155,000 Revenue bonds 12,115,000 Unliminted Tax and WATER CONTROL ANL IMPROVEMENT DISTRICT NO. 1G

35 as follows: The annual requirements to amortize all bonded debt at September 30, 2012, including interest, are 7. BONDED DEBT (continued) NOTES TO THE BASIC FINANCIAL STATEMENTS FS14 amount. levied upon all property subject to taxation within the District, without limitation as to rate or The existing outstanding bonds of the District are payable from the proceeds of an ad valorem tax S926,010 is available in the Debt Service Fund to service the bonded debt. Bonds authorized but not tax bonds to be issued by the District would be limited to $20,900,000. Based upon that agreement, with interest rates of 2.0% to 3.75% to currently refund $300,000 of Series 2003 unlimited tax issued amounted to S 13,075,000 at September 30, However, the District has entered into an agreement with the City of Cedar Park which provided that the total principal amount of unlimited authorized, but unissued bonds approved by the City of Cedar Park amounted to $1,865,000 at September 30, bonds, $3,965,000 of Series 2004 unlimited tax bonds and $7,175,000 of Series 2005 unlimited tax bonds. The bonds had maturity dates of September 1, 2014 through September 1, The first optional redemption date is May 1, The unlimited tax refunding bonds were issued at par plus $11,633,786. The net proceeds were used to purchase U.S. government securities and those securities were deposited in an irrevocable trust with an escrow agent to provide debt service payments until the Series 2003, Series 2004 and Series 2005 bonds are paid. The advance refunding refunded bonds. which resulted in a net present value savings of $904,825, or 7.91% of the principal amount of the On March 28, 2012, the District issued unlimited tax refunding bonds of $12,115,000 (par value) met the requirements of an insubstance debt defeasance and the Series 2003, Series 2004 and Series 2005 bonds were removed from bonds payable. As a result of the advance refunding, the District reduced its cumulative debt service requirements a reoffering premium and, after paying issuance costs of $445,562, the net proceeds were S 16,185,000 $ 5, $ 21,696, ,330, , ,720, ,163 2, , , , ,657 1,238, , ,410,000 1, ,263, $ 695,000 $ 517,582 $ 1.212, , ,457 1,232,457 September 39, Principal Interest Total Year Ended Annual Requirements for All Series

36 The developers of the land within the District have incurred costs for construction of facilities, as 8. COMMITMENTS AND CONTINGENCIES NOTES TO THE BASIC FINANCIAL STATEMENTS FS 15 Effective March 9, 2001, the District and the City of Cedar Park entered into a professional services agreement whereby the City of Cedar Park agreed to provide ater and wastewater services to the District and further agreed to manage the District s water and wastewater system and bill the District s customers on a basis similar to that for incity customers. 10. AGREEMENT WITH CITY OF CEDAR PARK commercial insurance companies and the Texas Municipal League Intergovernmental Risk Pool (TML Pool) to effectively manage its risk. All risk management activities are accounted for in the General Fund. Expenditures and claims are recognized when it is probable that a loss has occurred incurred but not reported. The TML Pool has established Claims Reserves for each of the types of of assets: errors and omissions; and natural disasters. The District has obtained coverage from contributions to obtain the insurance. Annual contribution rates are determined by the TML Pool insurance offered. Although the TML Pool is a selfinsured risk pool. members are not contingently significantly higher than actuarially estimated, the TML Pool adjusts the contribution rate for The District is exposed to various risks of losses related to torts; theft of, damage to, and destruction and the amount of the loss can be reasonably estimated. In determining claims, events that might create claims, but for which none have been reported, are considered. The TML Pool was established by various political subdivisions in Texas to provide selfinsurance liable for claims filed above the amount of the fixed annual contributions, If losses incurred are subsequent years. Members may receive returns of contributions if actual results are more favorable than estimated. for its members and to obtain lower costs for insurance. ThL Pool members pay annual Board. Rates are estimated to include all claims expected to occur during the policy including claims 9. RISK MANAGEMENT by the District from proceeds of future District bond issues, subject to approval by the Texas construction costs and operational advances will be evaluated upon receipt of adequate supporting documentation and proof of contractual obligation. Such costs may be reimbursable to the developer held within the District approved authorization to issue $32,110,000 of bonds to fund costs of based upon the District s engineer s report. However, subsequent to that election, the District Commission on Environmental Quality, or from operations. On August 11, 2001, a bond election proposed works, improvements, facilities, plants, equipment, appliances and nonconstruction costs $19,035,000 of Unlimited Tax Bonds to reimburse developers. well as costs pertaining to the creation and operation of the District. Claims for reimbursement of entered into an agreement with the City of Cedar Park in which the District agreed to limit its issuance of unlimited tax bonds to $20,900,000. As of September 30, 2012, the District has issued

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38 GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, 11. FUND BALANCES NOTES TO THE BASIC FINANCIAL STATEMENTS FS 16 $274,117 of surplus construction funds to the Debt Service Fund. On June 1, 2012, the Texas Commission on Environmental Quality approved the transfer of 10. USE OF SURPLUS FUNDS Nonspendable Amounts that cannot be spent because they are either not in a spendable form or are legally or contractually required to be maintained intact. The District had no such amounts. Restricted Amounts that can be spent only for specific purposes because of constraints imposed Committed Amounts that can only be used for specific purposes pursuant to approval by formal Assigned For the General Fund, amounts that are appropriated by the Board that are to be used by external providers, or imposed by constitutional provisions or enabling legislation. action by the Board. The District had no such amounts. for specific purposes. For all other governmental funds, any remaining positive amounts not $91,811 of its current General Fund balance to cover a portion of the 2013 budget. Unassigned Amounts that are available for any purpose; these amounts can be reported in the the District s highest level of decisionmaking authority. Commitments may be established, in multiple fund balance classifications, the order in which resources will be expended is as follows: In circumstances where an expenditure is to be made for a purpose for which amounts are available The detail of the fund balances are included in the Governmental Funds Balance Sheet on page FS1. in governmental funds. Those fund balance classifications are described below. establishes fund balance classifications that comprise a hierarchy based primarily on the extent to previously classified as nonspendable, restricted or committed. The District has assigned which a government is bound to observe constraints imposed upon the use of the resources reported District s General Fund or as a deficit in any fund. Fund balance of the District may be committed for a specific purpose by formal action of the Board, fund balance for a specific purpose. balance. modified, or rescinded only through a resolution approved by the Board. The Board may also assign restricted fund balance, committed fund balance, assigned fund balance, and lastly, unassigned fund

39 REQUIRED SUPPLEMENTARY INFORMATION

40 Actual and Final Positive Budget (Negative) Origna1 Variance End of the year FUND BALANCE: Beginning of the year NET CHANGE IN FUND BALANCE OTHER FINANCING USES TOTAL OTHER FINANCING USES Fund transfer over expenditures Excess / (deficiency) of revenues TOTAL EXPENDITURES Capital outlay Tax appraisal/collection Legal fees Director fees, including payroll taxes Engineering fees Management fees Accounting fees Current: Audit fees Utilities Insurance Repairs and maintenance Financial advisor fees Other EXPENDITURES: TOTAL REVENUES Other Property taxes, including penalties Interest REVENUES: PS 17 $ 623, ,261 (79,253) $ (101,371) S (999) (999) (999) (999) (78,254) (101,371) 23, , ,939 25,152 1,492 3,500 2, ,302 1,000 11,800 10, ,098 19,194 1, (4) 16, (1,533) 2, ,251 3,229 5,705 2,476 9,200 9,200 30,000 30,000 27,533 29,568 (2,035) ,168 6,000 (2.832) S 23,531 $ $ (37) BUDGETARY COMPARISON SCHEDULE GENERAL FUND

41 TEXAS SUPPLEMENTAL INFORMATION

42

43 1. Services Provided by the District during the Fiscal Year: TSI1. SERVICES AND RATES Dist.ict customers are billed by the Cit of Cedar Park Rates are the same as charged to incity customers. Total Wastewater 1) 1.0 Total Water (I) / c3i4 1.0 Unmetered I.0 Size Connections Connections Factor ESFC s Meter Total Active ESFC Active b. Water and Wastewater Retail Connections: Total charges per 10,000 gallons usage: Water $ Wastewater S District employs winter averaging for wastewater usage? Yes No Q SURCHARGE: $ WASThWATER: $ ,000 N $ 3.99 Over 2,000 S 5.23 > $ ,001 WATER: $ 17,77 2,000 N S Charge Usage YIN Minimum Levels Rate per 1000 Minimum Minimum flat Rate Gallons Over Usage a. Retail Rates Based on 5/8 Meter (or equivalent): 2. Retail Service Providers emergency interconnect) Q C Solid Waste/Garbage C Flood Control [] Roads Retail Wastewater J Wholesale Wastewater U Irrigation jj Retail Water EJ Wholesale Water Drainage Parks/Recreation Fire Protection [] Security Participates in joint venture, regional system andlor wastewater service (other than Other (specify):

44 Gallons pumped into system: tl Water Accoiantabilitv Ratio (21 TSIl District customers are serviced by the City of Cedar Park. If Yes, by whom? Yes Q No Are Board members appointed by an office outside the district? ETJ s in which district is located: City of Cedar Park, Texas Entirely J Partly Not al anq Is the District located within a city s extra territorial jurisdiction (ETJ)? City(ies) in which district is located: N/A Is the District located within a city? Entirely Partly Q Not at aii Is the District located entirely within one county? Yes No I I County(ies) in which district is located: Travis 5. Location of District If yes, Date of the most recent Commission Order: Maintenance standby fees? Yes I I No I x I Does the District have Operation and If yes, Date of the most recent Commission Order: Does the District assess standby fees? Yes I I No I x I 4. Standby Fees (authorized only under TWC Section : Gallons billed to customers: (2) (2) toallons billed / Gallons Pumped) 3. Total Water Consumption during the Fiscal Year (rounded to the nearest thousand):

45 Personnel Expenditures (including benefits) $ TSI2. GENERAL FUND EXPENDITURES Number of persons employed by the District: EJ FullTime E PartTime TOTAL EXPENDITURES $ 105,787 Other Expenditures 1,048 Parks and Recreation Fire Fighting Solid Waste Disposal Tap Connection Expenditures Capitalized Assets Expenditures not Capitalized Capital Outlay: Office Supplies Other Administrative Expenditures Insurance 2,699 Directors Fees 3,229 Administrative Expenditures: Repairs and Maintenance 1,000 Utilities 18,098 Tax Collector General Manager 30,000 Bookkeeping 16,300 Appraisal District 139 Contracted Services: Other Contracted Services Purchased Services For Resale: Bulk Water and Wastewater Purchases Legal 22,533 Auditing 9,200 Professional Fees: Engineering 1,492 Financial Advisor 49 TSI2

46 Interest Accrued TSI3. TEMPORARY INVESTMENTS TSI3 Total All Funds $ 1,520,016 $ 2,029 Total 929, Certificate of Deposit XXX % 2/19/ , Certificate of Deposit XXX % 10/1/ , TexPool XXX0003 Variable Daily TexPool XXX0002 Variable Daily Debt Service Fund Total 590,513 1,228 Certificate of Deposit XXX % 10/5/ , Certificate of Deposit XXX % 10/1/ , TexPool XXX000I Variable Daily $ 90,513 $ General Operating Fund or Certificate Interest Maturity at End at End Identification Balance Receivable Funds Nmnber Rate Date of Year of Year WILLIAMSONTRAVIS COUNTWS

47 Taxes Maintenance Taxes Debt Service TSI4. TAXES LEVIED AND RECEIVABLE TSI4 **Calculated as taxes collected in current and previous years divided by tax levy. Maximum Tax Rate Approved by Voters: S 1.50 on 8/11/2001 to Taxes Levied ** 99.1% 99.3% 99.9% 99.9% Percent of Taxes Collected Original Tax Levy $ 1,312,832 Total Tax Rates per $100 Valuation: Maintenance tax rates Debt Service tax rates Tax Rates per $100 Valuation: Total Property Valuations Personal Property Land and improvements Property Valuations: Taxes Receivable, End of Year , and before S 217 $ 10,372 Taxes Receivable, By Years Taxes Receivable, End of Year $ 427 $ 21,833 Tax collections: Total to he accounted for Current year Total collections Adjustments Prior years 48 23,431 I.825 S 229,089,474 $ ,195 S ,085 S 1,319,097 S 1,346,750 $ 1,381,615 S $ $ S $ $ 235,908,663 $ 235,908,663 $ 229,089,474 S 239,635,195 $ , $ 427 $ 21,833 23,383 23,858 1,301,618 (1 18) (6,427) 2011 Original Tax Levy, less abatements 23,711 1,295,788 1,277,900 1,279,785 Taxes Receivable, Beginning of Year $ 12,257

48 Year Due Due Due tisue Due Due Due Due Due flue Priua4pul Ifflerest Eudii 9/01 3/Ill. 9/01 Tsuul 9/01 3/01, 9101 Tees] 3/01 3/01, 9101 Tc4a] 9/0 5/01.9/01 Tees] /01. 9s331 TIIuuI flue Due teal.. 2(15,0(8) 260( ,188) $ ,375 $ 173, , , (07 $ 11,275 $ S $ 1,123,794 $ 4,686,794 $ 12,045,6820 $ $ 6, $ 16,115,1181 S $ , WATER CONTROL AND IMPROVEMENT DISTRICT NO. IG TSI5. LONGTERM DEBT SERVICE REQUIREMENTSBY YEARS SEPTEMBER 30,20L2 UcUjiri& Tax W UoJiluiIelJ Tax 0xu UzOietl,JTiu Wn4 Uuhn.led Tax Rdumhng fla Cnl uiesi Tax Rnie 8 Rlm series 2004 Smies Series 2011 Sies 2012 Anluul Resluirernesis r. Au Series Fiscal I Tiilcipul lulesesu Peiricipul Tr4erest Priitpul inlercal Principal Inleiest Principul Inleseat 1013 S 25,50) S 83/5,375 S 75,5/0) 1 5,475 $ (02 $ 225 $ 2/0,275 S 7.0,O $ , (3,56) S 69520) S ? $ III /fl) , ,794 73, ,057 20) I ( ,215, , , ( , ,467 4(41, , ,534) , ,000 89, , ,1118) 334,94 979, , , , (0) ,844 85(1, ,332 1,248, (83.1)1) (1, , , ) ,907 1,231, , , , )0 343, , , , , J ,712 8,245, )3 7 xuxul 211,713 1, : , ,03 134, , , , 33.6: :5 8O3.l 187, ,015 1, : , ,3(83 845, , :25288: : , ( ,25( : I.316A ( ( ( ,3111,475 1,220(0, ,475 56,230 1,011, ) , , , , ,

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50 Interest Rate 400% 600% 3.625% 5.625% 400% 5.00% 12,115, % 4.375% 2.00% 3.75% $ Series 2003 Series 2004 Series 2005 Series 2011 Series 2012 Total TSI6. CHANGES IN LONGTERM BONDED DEBT TSI6 Average Annual Debt Service Payment (Principal & Lnterest) for the remaining term of all debt: S 1,205,382 Debt Service Fund Cash and Temporary Investments balances as of September : S in combination with taxes. * Includes all bonds secured with tax revenues. Bonds in this category may also be secured wish other revenues Remaining To Be Issued $ S S Amount Issued 19, Bond Authority: Tax Bonds * Refunding Bonds Other Bonds Amount Authorized by Voters $ 32,110,000 $ 48,165,000 $ Austin, DC Austin. TX Austin. TX Austin. TX Austin, TX Paying Agent s Manse & Address: Bank of Texas Bank of Texas Bank of Texas Bank of Texas Bank of Texas Current Fiscal Year $ 17,796 $ 103,625 $ 186,319 $ 124,462 $ 158,097 $ 590,299 Ijiterest Paid During the of Current Fiscal Year $ 125,000 $ S 275,000 S 3, ,000 $ Bonds Outstanding at End Current Fiscal Year: Retirements During the Refunded ( ) (3,965,000) (7,175,000) Principal (120,000) (175,000) (250,000) (30,000) (70,000) ( ) (11,440,000) Current Fiscal Year L2, Bonds Sold During the Fiscal Year $ 545,000 $ 4, $ 7,700,000 $ 3, $ 16155,000 Beginning of Current Bonds Outstanding at Maturity Dates 9/1/2013 9/1/2013 9/1/2013 9/1/2027 9/1/2030 DateslnterestPayable 3/1,9/I 3/1,9/I 3/1,9/I 3/1,9/I 3/1,9/1

51 Drainage fees GENERAL FUND REVENUES Property taxes, including penalties $ 23,531 $ 23,033 $ $ 80,622 $ 101,594 Amounts I.600 1,600 GENERAL FUND AND DEBT SERVICE FUND FIVE YEARS SEPTEMBER 30,2012 District is serviced by the City of Cedar Park. TOTAL ACTIVE RETAIL WASTEWATER CONNECTIONS N/A/:, N/AU N/A/l) N/A: Fiscal agent fees and oilier 11,630 10, ,844 10,771 TOTAL DEBT SERVICE TOTAL ACTIVE RETAIL WATER CONNECTIONS N/A CU N/Alt) N/Ad) N/A/I) FIJNDREVENUESOVEREXPENDITURES $ 320,898 $ 40,087 $ 55,501 $ 47,101 $ 25,246 DEBT SERVICE FUND REVENUES DEBT SERVICE FUND EXPENDITURES EXCESS (DEFICIENCY) OF DEBT SERVICE Property taxes, including penalties $ 1,285,043 $ 1, $ 1,327,954 1,331,750 $ 1.282,585 Operating transfer ,000 FUND REVENUES 1363, , , ,316,207 Principal 645, , , ,0(0 445,000 FUND EXPENDITURES 1, ,288,131 1, Interest 3,677 4,460 3,640 7, Advance refunding, net of discount and issuance costa (4,001) (1.864).. Inlerett 590, , , ,190 TOTAL DEBT SERVICE REVENUESOVEREXPENDITURES $ (79253) $ (101,497) S (41.329) 5 (17.8 S) $ NightwaLchman lights 18,092 17, ,317 Financial advisor fees Management services 30,000 30,000 30, Director fees, including payroll lanes 3,229 4,198 3,552 3,068 4,521 Engineering fees Tax appratsa]icollection fees Repairs and maintenance , Legal fees 22,533 19,752 15,603 17,636 21,861 GENERAL FUND EXPENDITURES EXPENDITURES 106, , ,354 TOTAL GENERAL FUND REVENUES 27,533 28,712 61, TOTAL GENERAL FUND EXCESS (DEFICIENCy) OF GENERAL FUND Interest and Dthsr 4,002 5, ,645 Currrent: Insurance 2,699 2, Audit fees 9,200 9,200 9,000 9,000 8,000 Bookkeeping 16,300 16, ,650 14,928 Miscellaneous Operating transfer ,000 Capital Outlay TSI7. COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES

52 1.3% 0.7% 14.5% 19.8% 8.5% 7.5% 20.5% 1.8% 1.2% 85.5% 802% 902% 907% 78.3% 20.5% 3,1% 4.2% 3.6% 2.0% 79.5% 96.9k 95.8% 96.4% 98.0% 0.3% 0,1% 0.8% 0.8% 0.8% 0.8% 0.8% 41.2% 43.2% 36.0% 35.0% 33.7% 37.8% 53.0% 59.0% 60.6% 63.5% 100.0% 100.0% 100.0% 100.0% 100,0% 82.2% 97.8% 99.7% 99.5% 97.4% 17.6% 1.9% 0.2% 0.3% 0.3% 0.5% 2,6% (287.9)% (353.5)% (67.0)% (20.1)% 11.0% 387.9% 453.5% 167.0% 120,1% 89.0% 9.8% 10.0% 5.1% 0.1% 5.6% 3.8% 2.1% 1,9% 14% 0.1% 3.6% 87.1% 5.3% 10% 109.0% 104.5% 48.6% 33.7% 27.0% 0.2% 0.1% 0,1% 0,1% 0.1% 11.7% 14.6% 5.8% 3.5% 35% 0.5% 0.5% 0.3% 0.5% 0.5% 3.6% 158% 80% 7.2% 0.5% 81.9% 68.8% 25.3% 19.8% 16.8% 33.4% 32.0% 14,6% (0.1% 6.2% 59.2% 56.8% 27.0% 18.7% 11.5% 65.7% 62,2% 30.3% 24.3% 17.2% 100.0% 100,0% 100.0% 100,0% 100.0% Percent of Fund Total Revenues TST7

53 Assistant District Bond WATER CONTROL AND IMPROVEMENT DISTRICT NO. IG TSI8. BOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS SEPTEMBER 30,2012 Complete District Mailing Address: 100 Congress Ave. Suite 1300 Austin, TX District Business Telephone Number: (512) Submission Date of the most recent District Registration Form TWC Sections & ): November 28, 2012 Limits on Fees of Office that a Director may receive during a fiscal year: (Set by Board Resolution TWC Section ) Name and Address: Board Members: D. Lynn Perry Term of Office (Elected or Fees of Expense Appointed) Office Paid Reimbursements or Date Hind 9(30/12 9/30112 Title at Year End Electedi 05/08/ /11,20I4 S 600$ 89 President Alan Moskin Elected) $ 750 $ 28 VicePsesident 1 1/06s2012 I 1t2016 Dan IV. Foster (Elected) 05/08/2010 Il/i 1/2014 $ 450 S Secretary James Manning (Elected) S 750 $ I I I Assittant Secretary 11/06/ /8/2016 James Reid (Appointed) 11/5/ /1 1/2014 S $ Secretan Consultants: JadCo Management Inc. Armbrust & Brown PLLC Bott & Doutlsitt, PLLC Jones.Heroy & Associates, Inc. McCaU Gibson Swedlund Barfoot PLLC McCall Parkhurst & Horton, LIP Southwest Securities, Inc. 3/16/2001 3/16/2001 7/1/2009 4/ /16/2001 3/16/2001 Travis County Tax Collector 9/4/200) $ S $ S $ $ $ $ $ $ 30. S Manager $ Attorney $ Bond Related Services $ 199 District Accountant 2,981 $ Engineer 9,650 $ Auditor $ Bond Counsel $ Financtal Advisor 147,343 $ Rela,ed Services 759 $ Tax Collector Fees of Office are the amounts actually paid to a director during the Districl s fiscal year. TSI8

54 OTHER SUPPLEMENTAL INFORMATION

55 Twin Creeks Golf Group LP Real Land & Improvements $ 4,000,000 $ 3,700,000 $ 4, Taxpayer Type of Property Tax Roll Year Percent of Assessed Valuation Total Tang [kong roong &. Montanan, M. & R. Manning. J. Adams. S. & E. Kennedy. P. & P. Twin Creeks Vistas L.P. federa] National Mortgage Assn. Bank of America NA Diteresa. M. & M. Alfaro, P. Manning,J. &T. Abbott. 0. Allen, D. & D. Twin Creeks Vistas LP. Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements Real Land & Improvements PRINCIPAL TAXPAYERS SI1 5.8% 5.6% 6.4% $ 13, $ 13,149,878 $ , , , , , , , , , , , , , , , , , , ,568,085 2,559,713 3,

56 7.200 Type of Property Amount % Amount % Amount Tax Roll Year 0512 Total Taxable $ , % $ , % S 229, % Less: Adjustments (2,242,558) 1.0% (5, ) 2.5% (1, ) 0.6% Totally Exempt Property 67, % 67, % 67, % Residential Inventory 3,195, % 713, % Commercial Personal Property 1,428, % 1,518, % 1,439, % Commercial Real Property 4,000, % % 3, % NonQualified Land 7,200 VacantLol 348, % 348, % 532, % Single Family Residence $ 220, % $ 235, % $ 224, % OSI2. ASSESSED VALuE BY CLASSIFICATION