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HÂRru§ COIINTY MLINICIPÂL UTtrLITYDI§TRICT NO. 35ÿ
}IÂRRIS COT]§TY, TEX,4§
,4,t{}'lUÀL f 1NÂNCIAL REPûRT
AUCUS? 31, 2000
CÛNîET'{TS
§umber
I§I}ETENDENT AT"}DITOR§' R§PORî
Page
1
GENERAL PURTO§T TI§ÂNCIÀL §TATEMENT§
COMBTA{ED BALÂNC§ ST.TE§T, ALL FUNû WP§S AA{D ACCOUNT GROUPS
COMETNËD STÀTEM§NT OF X"CYENUËÿ, EXPËN»TTUR§ï, ANDCHANÜES TN ÿUNÜ BA],ANCES, ALL G{}T/§RNM§}VT,4L FT;ND TYPîS
C TMB TNËD STÀT§M§NT O § §"§T/§NU§ S, TXP §N »TTURE S,,AND CHANǧ STN FWD BALANCË, §U»Ç§T ANû A{TUAL, ÇENERAL ÿUND
NOT§§ TO FINÀNCIÀL §TÂT§M§Nî§
§UTPLTM§§TÂL §T'ORMÂîION
rNfr EP §N» Ë NT AU fr TTÛ RS' § E ? Ü RT O N S U P P L T M E N TAl TN T O âMATTO N
SUPPT,ËMENTÀL SÇHT»UL§S INCI.{JüE» WTTHil{ TH{S RET'ORT
SCNËüULE OF S§RTryCTS ANil RAT§§
§Cfi§DULE CIF G§N§RAL FUNÜ §X?TNDTT{JRËS
SCHEDALE OT TTMPORARY TNT/ESTM§NT§
AN.4LYSTS AF TAXES LETryË» AND REC§TT/AST.E
ANALYSTS OF CH,q.NGES IN GEN§&4L FIXEû ASSETS ANDORGANTzuTTANA.L COST§
G§NERÀL LONÇ-T§RM §E§T S§RYT{§ R§ÇLT{R§M§NTS, BY YËÀRS
ANALYS§ OF CUANGES TN §§N§§ÀL LÜNÜ-TERM D§BT
STÀTEMENT Û§ RET/§}{U§S AN» §XP§IV§TTU§.Tÿ, GENE&AL FUNDAND DEBT S§RTryCE FINIü
TNSURANCE COT/§RAG§
§ÜARÛ A,TËM§ERS, K.§Y PT§SçN:,.'{§L, AN» CÜNSULTANTS
MANÂGtrM§NT L§TÏER
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Independent Auditors' Report
Board of DirectorsHarris Counÿ Municipal
utility District No. 359Harris County, Texas
We have audited the accompanying general purpose financial statements of IIARRIS COTINTYMUNICIPAL UTILITY DISTRICT NO.359 as of and for the year ended August 31,2000, as listedin the table of contents. These general purpose financial statements are the responsibiliÿ of the Boardof Directors. Our responsibiliÿ is to express an opinion on these general purpose financial statementsbased on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the generalpurpose financial statements are free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the general purpose financial statements.An audit also includes assessing the accounting principles used and significant estimates made by theBoard of Directors, as well as evaluating the overall general purpose financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in allmaterial respects, the financial position of IIARRIS COUNTY MUNICIPAL UTILITY DISTRICTNO. 359 as of August 31, 2000, and the results of its operations for the year then ended, in conformitywith generally accepted accounting principles.
ilr-l,4' ilrt ,*a
November 3,2000
A îEmber of Mætgs Rowland lntemational,an ass,ciation ol indwMent
ammdw frnns dlwghouttÊ wottd
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(THI§ rÂG§ II{TENTIOl§ALLY L§r'T BLÀ§K}
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TTARzuS COLTNTY MLNICIPÂL UTILITYDISTRTCT NO. 359
COM§INED BALÀNCE §§EET, ÂLL TUN§TYPE§ AND ÀCCÜI-rNT §ROUP§
AUGU§T 31,2ÜOO
Governmental
A§§ET§
CashCerti{icates *f depositReceivables:
Property taxesAccrued ir:terest
Interfund receivableGeneral fixed assetsAmount available in debt service fundÀmount to be provided for retiremer:t of general long-term debt
TOTÂL A§§§TS
General
$ t 50,01599,743
6,5731 "r1<
) aq)
$* æ9J9§
The accr:mpanying notes are an integral part of the {i*aneial staternents
-2-
E'rrnd Tvnes Àccount Grnrrnt Reporting§ntity Totals
(Memorandum
§ 1,ü37,75V1,080,129
27,42t12,3*97,?43
ü,,97A,1761,596,55§
11.903.441
q ?7 615 030
Ilebt§ervice
§ 7t7,0t6878,057
20,84810,9404,751
CapitalProiects
ÇeneralFixed
--*ésssf§-s
1tr,97t,176
§ x i.97t.176
GeneralLong-Term
Detrt
1,596,559.Li"eÛ3.44J
s_l3t§s§w
ss
94
18ü,73 i102,829
$ i.62 r.602 S 283.654
3
HARRI§ COT.INTY MLINTCIPÀL U?ILITYDISTRICT NO. 35ÿ
CÛM§IhTD BALÂNCE §H§ET, ÂLL F'L]N§TYPES AN§ ÂCCûUNT GROUYS {Ccntinued}
Âuüu§T 31.20t0
G*vercmental
LIÀBILITIE§ ÂNI} FtrJND §QUITY
LTAB1LITI§§Aceouats payablelnterfund payable*eferred prope§ tax rsvÊnueBonds payable
?üTÂL Ll§ILITI§§
FUN} EQL]:TYInvestmer:t in general fixed assetsFund balances:
Reserved fur:Rernainiag current year debt serviceFuïure calendar years debl service
lJnreserved:Designated for future capital projeetsUndesignated
TOTAL T'LI!{} §QUITY
TOTÀL LIÂBILITI§S AN} FII§N EQUITY
General
$ 62,429
6,573
69.ü02
1ç(}.5q6
1ÿü"596
q ?5q sqRvæ
The accompanying nûtôs âre an inlegrai pafi of the financial statemerts.
-4-
Fund îvres
Debt§erviee
CapitalProiects
2,t137,182
20,848
s5,061
)\ û41 5.061
3§§,4931,23*,464
261,1936.8ûû
i.596.55ÿ ?7R 5q1
1.621"6t2 §*_:§3é§3
Âccount GroursGeneralFixedÀssets
Gsneraltong-Term
Ilebt
s $
1 1 §00 onoæ1 1 §On û0tæ
11,970"116
11"97ü"17 * û
sJlé;§"ü§ s*!3é8ü-0qs
Reportixgtrnti§ Totals
(MemorandurxOtllv)
§ 64,442'7 )12,
t )e tJ
27,42113.500"00û
I 3^599.1 û5
11,97t,176
366,0951,23t,464
2.61,7932û7 "396
14 01§ q?4
q ?7 615 01n
s
0
$
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§ÀRRI§ COTII.{TY MTINICIPAL UTTLITYDTSTRTCT NO" 359
COMBIN§} STAT§h4ENT OT REV§NUE§, EXF§NDITURE§, A}IDCHANüE§ I}'I FTI'1;I} BÂLANCES, ÂLL GOYERNMENTAL FTI}']} TYP§S
FOR THT YEÀ§. END§D AUGU§T 3I, 2ÛTü
IIIttCapital
Repcrting§nti§ Totals
(Mem*rx*dnmûnlv)?ra
R.EYENU§§Froper§r Taxes
City of Houston rebâtesPenalty and interestInterest on depositsÂcc&red i*terest received or:
bonds at date ofsaie
TOTÀL R§V§NU§S
EXPENTIITUR§§Curreni:
Fro{bssional feesContracted se:r,icesûlher *xpenditr-:res
Capital o*tlayDeb: service:
Principal retirementlnterest and fees
T0TÂL §Xr§§»ITLIRE§
§XCES§ REV§§U§§(§xPEN§rTUR§S)
OTHXR FINÂ}.;CING §OURC§§Froceeds from sale ofbonds
rXCX§§ §§URC§§
ruND BÀLÂNC§§, B§ÇINNIN§ Or yEAR
§ 1*3,328 $ 633,124 §59tr.,216,3,*47
11,15û 65,293
1'7 ^14Æ
1111/119. t"326.694
17.ü14
i2.513 1 451 6R5
Gçneral
AA 611
8,43636"73*
24,679
16 5 qt7
§ebt§ervice
89"799 8*7-552 4"s42.568 s"§).91ÿ
24,679 519,142 {4,530,055) t3,986,234}
1,39915,5899,A66
185,û00lqR
,on 17§
809,517
'7ÿ.'7 fiL)Æq 1 §q6 §§q
,2,5t3
4,542,56&
a 6fiR 1)\
78,û7§
5?7
§ 736,452598,216
ï3,ü4788,956
46,A3224,12545,196
4,542,568.
185,û00§06 10R
-----=-!,-x)t-*
4.898"5üû
912,266
1"153.482
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FUNr BALÀNC§§, ENn O§ YEÂR S- 1901-96
The accornpanying noles are an integral part of the financial §tâttment§
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HARRI§ C§LTNTY h4IINTCIPAL UTILITYDI§TRTCT NO" 359
COMBINED STAT§MENT OF R§V§NUE§, ËX}E}{§ITUKE§, ÂND CHAN§§§TN FI'ND BALÂNCE, §UDGET AND ACTUAL, GENËRAL TLT§ID
F'OR TH§ YEAR. E]§D§D ÂUüUST 31, 2OOO
§udeet Âctual
REYENLTU§Properÿ iaxesInterest on deposits
TCITÂL R§Y§NU§§
§xPrNlITUX.§§Current:
Professionatr feesConfacted servicesOther expenditures
s 102,900
r02"90ü
51 15q't ÿ.)\
1§ 175æ
$ 103,328
,11"150
44,6338,436
^tA 1ln-----.LUJ
114_47_§ 1 1"578
Yariance-§avorable
{IJufavorable}
§ 428ll l§ôÆ
8,72&
{ 611)/ I 155)Æ/
6.76ü
s 18.338
TOTÂL §XPSF{}ITUR§§ *__ eél§g . 8"ÿ.1çç
7.4,679
16s"917
§XC§§S RTVENU§§ s****éJ&
rUN} BÀLANCE, B§GI§NIl§G OF l'§ÂR
ruND BÀLÀ§C§, §F{§ Or Y§AR s 190.596
The accompanying §olss âre an integral part of the financial statements.
-7-
}iARRI§ COLINTY MTINICITÂL UTITIîY§ISTRICT NO" 359
NCITES Tü TINÂhICIÂL §TA?§MHNT§
AUGUST 31,2ÜÜ*
N0TE tr: CREATI(}N 0r DI§TRICT
§arris County Municipal Utility §istrict No. 359 {the }istrict), was created by an order of the ?exas'Water Commissiotl, nou/ known as the Texas Natural Resor.lrce Conservation Csmmissio:l (TNRCC),
issued on June 24, 1993, in accordance with the Texas Sy'ater Code, Chapte: 54" The Board of§irectars held its first n'resting o:r July 7q, 1993, and the lirst bo*ds wcre sold an August 21, 1996.
The §istrict operates in accordance with Chapters 49 a:rd 54 of the Texas Water Code and is subject to
thc contiruing supewision of the TNRCC. The principal functions of the Dislrict are tc) fina*ce,
construct, own, and opërate waterworks, wa§1ewaier, and drainage fâcilities and to providc such
facillties and services to the t:]§tûmers of the District.
The Disrrict ]ies within the Ciry of Houston (the City). The Distriet has contracted with the Ci:y tosapply waTer a*d wastewatÊr treatment services to the §istriet's c*stomers.
l{OT§ 2: §IÇNIFICÂNT ÂCCÛU}{TING POLICIES
The accompanying generai purpose financial staternents and accaunting palicies r:f, the District are
prepared in'co:rfr:a-nify with generally accepted accounting principles for lacal governmental units as
prescriberi by the §overnrnental Accounting §tandards Board, which is the accepted slandard-setti*g
Lcdy for establishing governmsntal acc*unting and finaneial reparting prineiples. The District's
signifieant acccur:ting polieies are described b*low'
Regûrlirtg §rti{}'
The District has adopted Govemmental Àecounting §tandards Board §tatement No. 14, "Tha Financial
Reporting §ntity." In accordance with this stalemôüt, a financial reporting entity cûn§ists of the
primary government, organizations for which the primary gûvernment is financially accor.rntable, and
ott "u
orgunizalions fcr which the primary governmell is nct *ceountable, but fbr which the nature and
sigriifieince of their relationship with the prirnary governrcent are such that exe lusion would cause the
reporting entity's financial statements tc l-:* misl*ading or ixcomplete.
?he District is govemed by a Board of Directors consisting of five individuals :vhc are residents or
owners of property within the Dissicl anci are elected i:y voters within the District. Âs required bygenerally iccepfed accounting principles, these financial stater::e::ts presen{ the activities of the
bisr.irr. which is considered ra i;e the primary gl:vemment as well as the reporting entity. There are
*o other organizations which meel ihe criteria f*r inclusion herein âs part of the financial reporting
entity.
I
NOTE§ Tû F'INÂNCIÀL STAT§MENTS {C*ntinwed)
Basis of Presentation
The accounts of the üisrrict are organized on the basis of funds and account Sroups, each of which isconsidered to be a separate accounting enti§. The operations and financial position of each fund areaccounted for by providing a separate set of self-balancing accoults which are ccmprised of assets,liabilities, fund equity, rer/enlJes, and expenditures. Âccounl grCIups are used to eslablish aceounlingconlral and accountabilify for the District's general fixed asscts and general long-term liabilities" Th*transactions of the Districl are accounted for in the following fund fypes and account groups:
Ggvçrnpental Fand T-ypes
General fund--To aocount for all revsrtr}§s and experdiiures nof required to be accounled for inother funds. The primary source of revenue is property taxes.
Debt service fund*To account fbr thr accurnulation of financial resources f*r, aad the payrnent ofgeneral long-lerm debt principal, interest, and other costs. The primary sources of revense arepraperty laxes and rebate revûûue fron: the Ci§.
Capital projecls fund*T* account for financial resources designat*d l* cünsfruct ar acquire capitalfacili:ies and impravements. Such resocrces êre derived principally frorn pr*ceeds of the saleofbonds.
Àecou*.t Çrouns
Generatr lixed assets--To account {br the faciliries of the Diskict.
General iong-term debt*To âcçou:lt fcr the oulstanding principal balance of general long-term debtobligations.
Memorandum Totals
The mernoraadum totals reprcsent thc aggregate amounl of all fund lypes and account groups includedin the statemenls. No elirninalions have been rnade, and these totals do not represent consolidatedfinancial information.
Basis of Âccountilg
Ths accompanying financial §tatsmsnts have been prepared ir conformity with generally acceptedaccounting prineiples included in the Codification *f Govemrnental Âccounting and FinancialReporting §tandards and other statements issued by the Governmental Accr:unting Standards Board.All govemrnental fund t)?§s ârs accounted for using the modified accmal basis of accounting" Underthis basis of accounting, rôvenues âre recogl)ized when lhey become rneasurable and availatrle tofinance expenditures of the current period. In addition, expendiiures arc recognized when the liabilityis incuxed, with the exception of unrnatured principal and interest on general long-terrn debt, which isrecognized when due. §peci§c poiicies are includsd on thc foltrowing page.
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NOT§S 10 FINÂNCIAL S?IiTEMENTS (Conrinued)
 §roperty taxes are recorded when levied with the uncolleeted batrance recorded as deferred
r§Ytn::e.
An appraisal district annually prepâres appraisal records listing all p;aperry withi* the DistrictanA itlè appraised value af each parcel or itern as of Ja*uary l- AdditionaÏ}y, on January 1, a
tax lien attaches to prope§ to secure the pa3ment of alt tâxe§, penalty, and interest ultimately
irnposed for the y*"r on the plopert-y. By the later of §eptember,3t of "each
year, ûr ahe 60th
day after the District receives its certified appraisal roll, the rate of taxation is set by the Board
of Directorç of the District based upon the aggregate appraisal valae. Taxes are due on receipt
of the tax bil] and beeome d*li*quent after January 31 o,f the fall*wing year"
§. Property tax rsve1rue is recorded whe* received" Collectiors within six§ days subsaquent to
year-end, if any, are not materiaÏ in amouat a*d have not been recorded.
Measgrem,ent Egsuç
§cvemmental firnd r)?es are accounted for on a spending or financial flow rneâsurÊment foeus"
Acccrdingly, onty current asssts and current liabilities are included on the balarce sheet, and the
reported lind bàlances provide an indicatio* of, available spendable or appropriable reserurces.
Operating statements of gôvemmental fund types repofi increases and dscreas*s in available spendable
r"iourcei. Funrl balar:ces âre included on the baiance sheet as foliows:
Reserved:
To ir:dicate fund equiry rxhich is legally srgregated for a specifie &rt';re use.
Unreserved:
Designated--To indicate fund equity f*r which the District has made tenk§ve plans-
Undesignated*-To indicate fund eqr:i§ which is available f,or use in future periads.
General Fixqd Âssets
General fixed assets are stated at the ful} cost of assets owned by the District, and any conlributrion by
*thers is recorded in fund equity in the general fixed assets aceount $oup. The ccst of the general
f:xed assets includes all costs aisociated with the creation of the District, the sale of bonds, ald the
Çonstmction of fbcilities including infrastructure (irnrnovable) assets whieh ate of value only to the
Distriet. Interest during the construction period, net of applicabie interest earni*gs, is capitalized.
Repairs are aot capitalized, and replacements of general flxed assets are capitalized only tc, ahe exte*t
:h11 lhey materialiy exceed the cost of the original âssets. Depreciation is not recorded on geaeral
fix*d assets.
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NOT§S T0 FINÀ§C:ÂL §TÀTEM§NTS (Conttnued)
trnvestmeUts
The District elassifies all investrnents u/hich have a remaining maturity of oae year or less at the dateof purchase as "money market inveslmenls" in accordance with Governrneatal Accounling StandardsBoard §Taternenl No. 31, "Accounting and Reporting For Certain Investrnerts aad External InvestrnenlPools" (Statement No" 31). Statement Nc. 3l defines "money rnarket inves§nei:ts" as short-lerm,highly liquid debt instruments including commercial paper, banker's acceptances, and U.§. Treas*ryand agency obiigations" The Disxict values its "money market inrrcslments'n at cost. The Distr-ict'scsfiificates cf deposit are recorded ât Çost in accardarce with §latement No" 31 .
Inter{qnd Traxspctioxs
Tra::sfers from onc fund to another fund are reported as interfund receivables and payables if there isintent to ropây the amount and if there is the abiliry to repay the advance on a tirnely basis. Operatingtransfers represent legally authorized transfers fia:n the furd receiving resources to the fund throughwhich the resources are to be expended.
B*$get
The Board of Directors adopts an annual nonappropriated budget for th* general &nd. The b*dgel isprepared on a basis consistent with generaliy aceepted accounting principles and may be axrendedduring the fiscal year, The budget was arnended during the current fiscal year.
Pension Costs
The District does not participate in a pensir:r pXan and, therefr:re, has no pensio* cosls.
NûTE 3: Bûf{}S PÀYÀ§LE
§eries 19§6 §eries 1997
Amounts ouïslanding, Âugust 31, 2CI0Û
lnlerest raïesMaturity dales, serially
beginning/endingI*terest payment datesCal}able dates*
§2,045,00û4.6*% to 5"88%
June 1,
2üü112t16December l/June I
June 1,2005
§2,725,00t5.44%* 5.758/*
June l,2001/2018
December ilJune IJlrne 1,2*05
*ûr aly date thereafier; callable at par ptrus accrued interest to the dale of redernption
-11-
NOTE§ TO §'INANCIAL §TÂTEMENTS {Continued)
§eries 1998
IIIIIIIIttIIIIIIIIt
*Or a*y date thereafter; callabie aaÿeir plus accrued inierest to the date of redemptiax.
Amounts outstanding, Àugust 3 1, 2S*0lnlerest ralesMâfuri4/ dates, serially
beginninglendinglnterest payment datesCallable dates*
§onded debtpayable, begiming of yearBonds sold:
Proceeds Aom sals ofbondsDiscouni on b*nds soid
Boads paid
§3,68Û,0004.üç%aa 6.54*/c
June 1,
20çu7ü2*§ecember llJune 1
June 1,2û07
$ 4,898,5ûÛ1§ 1 §*0
$ 732,19ü7 \7,ü19697,58û*76,827654,753
6.875.*7ü
§gIissl999-
§5,û5Û,ü0ü5.1t% to 7.50%
June 1,
2AüIl2A23Decernber l/.trune I
June 1,20CI9
§ 8,635,0CI0
5,û5û,0ûû{ 185.oto)
s 20,?9û,00013,780,ü0ü2t,790,000
Bonded debt payable, end ofYear s 13.500.000
Bonds votedBonds soldRefunding bonds voted
As *f Axgust 31,20û0, the dcbt se::yicç rrquirearents o* the bonds outstanding arô ⧠fallaws:
Year Princiral Ir:terest îotal
2û017ütz20032üü42û05
Thereafte:
§ 255,0Û032t,ûûû34û,000360,CIüCI
38§,*û01 1 R45 000æ
§ §87,19*1,037,0191,û37,5801,036,827I ô14 751
1 R 7)ô 6?0
s 13.500.000 $ 10"35 J ERq s 23.853.989
The bands are payable fram the proceeds of an ad valorern tax levied upon all property within ths
Dis*ict sr:b.ject to taxation rvithout limitation ⧠to rale or amount.
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§OT§S T0 FINANCIAL STÂTEMENTS {Çanlinued}
NOTE 4: §IÇNIFICANT BOND CIRD§R ÂND L§GÀL }L§QTIIREM§NTS
Â. The Bond Orders require that the District leq, and collect an ad valorem debt service taxsuf{icient to pây interest and principa} on br:nds çrhen duc. Daring th* year endedAug*st 3 1 , 2ûûû, the Disfrict levied an ad valorem debt service tax at the rale of 30.60 per S 100 ofassessed vaiuation, which resulted in a tax lerry of $644,8n6 on the taxable valuatia* of§1A7,469,26û f*r the 1999 |ax year. The interest and principal requirernents lo be paid frcm Tho
tax revenues ar* $922,213 of which S556,118 l":as been paid and 5366,095 is due December 1,
2000. The District witrl utilize the bond inlerest reserl'e to satisfy the requirements.
§" I* aecordance with Bond Orders, a portion of lhe br:nd proceeds was deposited into the debtservice fund and reserved for the payment of bond interest during the constructian pericd. Thisbond interest reser"e is reduced as the interes{ is paid. Traasactions fcr the current ysar aresummarized as follows:
§cxd intelest reserve, beginning of year
3û7,38ÿ
301.061
Bond interest reserv€, end ofyear, §eries I999 s*_J5!t§g
C. §Tats statr:res authorize the Diskict 1o invest in cerlilicates of dep*sit of financial institutir:nsdarniciled in Texas. State slaTutes also r*quire that the Diskict obtain a valid piedge of securitiesfor any depasi;s in iinancial institutions in excess of federal insurance. Ât Àugust 31,2ûü0, theearrying' amcunt of the District's time and demand deposits with financial ins*rutions §/âs
S2,1tr7,881, and the bank balances ï/ore $2,117,881. Of the bank balances, $791,142 was coveredby federal depasitary insurance, and the remainder of 51,326,739 was secured by pledgedsecurities held by the District's agent in the Disïrict's nâme. The market value of pledgedcollateral was provided by the piedging entity.
Additions:Twelve months' interest, Series 1999Accrued interest reccived on bonds at
daTe afsale, Series 1ÿ9ÿIleductions--Àppropriation for bond interest paid
Series 1998§eries 19ÿÿ
§ 29ü,375
1't fi14Æ
1 \\ )))1rJrrkk
14§ R1qÆ
}iÜTE 5: CHÂNG§§ IN INYE§TM§I{T IN G§NERÂL FIXED A§§§TS
The changes in general fixed assets far the currenl \/ear a{Ç: as follows
llalances,Beginning
Balances,Erd
of YearofYeâr ï§
$Water, sewer, and drainage fâcilities
l1-t J-
].427 "{rA8, s 4.542".568, SJI*g]§JJ§
NüTE§ TO §'INÀNCIAL STAT§MENT§ {Conrinued)
NOTE 6: &{ÂINTENÂNCE TÂXE§
At an election held §ovemb*r 2,1993, voters authorized a maintenance tax aot t* *xceed §0.50 per
$lûû val*ation on all property within thc District subject to taxation. During the year e:rded
August 31,20*û, the §istrict levied an ad valorem maintenance tax at the rate q:f $0.098 per §10û ofassèssed valuation, which resulted in a lax levy of $1û5,32CI on tbe ïaxablc valuati*n cf S107,469,260fcr the 1999 tax year" The maintcnance tax is being used by the general fund to pay exp*nditures afoperatiug the District.
T
tIIIIrIT
III
NüTE 7: CO§TRÀCT 1vI?§ TII§ CITY OF HOU§TON
1n 1992, thc District's developer entered into a fo§-year ccn§act with the City, which was assigned to
the District cn March 1,1994, to provide water and wastewater servicss to customere of the District.
U*der the tenns of the agreement, the Distriet wilX co,ns*ust or purchase all facilities necessary to
pravide water and wastewater service and convey those facilities to the City. The District retains a
securify interest in the facilities.
The Ciÿ is tho cwrer and cperator cl the &cilities and is respcnsible for aii operatixg costs. The Cityalso bills all customers within the Sistrict's boundaries at mtes comparable to in-City çustomers.
The consact provides fi:r nionthly revenue payments by the City based on net reven:;e§ sotrlected and
anaual tax pay:'nents" ûuring lhe currenl year, lhe District received 5598,216 fron"r lhe City.
I{OTE 8: RI§K MA§ÀÇEMEI§T
The Dis*ict is exposed tc varjous risks of l*ss related to torts; the{1 of, darnag* tc and destruction ofassets; e:ïors and omissions; and natural disaslers for whieh the Dis*ict carries comrnerciai insurance" ]The District has n*t signi{icantly reduced insurance cfivsrage *r had settisments which exceeded fcoverage amounls for the past ThTee fiscal years"
IIIII
-14- I
NOTE§ Tû FD'IANCIÂL §TATEMENTS §ontinaed)
NÜTE 9: INTERFL]N» R§C§ryABLE§ À1§} PÀYÀ§L§§
The following is a summary of arnounts due frorn a:rd due to olher funds:
§ue §'rom flue To
GEITTRÂL T'U§§Debt service fundCapital projects fund
NT§T S§RVICS r{}§}General fundCapital projects fund
CÀfITAL TROJUCTS TïNüGeneral fundDebt service fund
TOTÂL§
§ 2,18231û
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Baird, Ilurtz a llo[son14'15 Louisiana, Twenÿ Fourth Floor
Houston, TX z/0û2-7352713 97G3200 Fax 713 658-9606
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Independent Auditors' Report OnSuoplemental Information
Board of DirectorsHarris County Municipal
utiliry District No. 359Harris Counÿ, Texas
We have audited the general purpose financial statements of HARRIS COUNTY MUNICIPALUTILITY DISTRICT NO.359 as of and for the year ended August 31,2000, listed in the table ofcontents, and our report thereon is included in the preceding section of this report. The accompanyingsupplemental information includes financial data excerpted from prior years' financial statementswhich rvere audited by us.
Our audits were made for the purpose of formulating an opinion on the general purpose financialstatements taken as a whole. The accompanying supplemental schedules (pages 19 through 40) arepresented for purposes of additional analysis and are not a required part of the general purposefinancial statements. Such information has been subjected to the auditing procedures applied in theaudit of the general purpose financial statements, and, in our opinion, the information is fairly stated inall material respects in relation to the general purpose financial statements taken as a whole.
Solutions
*,**
l^t ilrtr",-t
November 3, 2000
IttT
A nember of Mms Rowland lnbmalbnal,maswialionof in@n&nt
a@unting frms houghout tle wotu
.dmr/
HÂRru§ COT"INTY ML]NICITAL UTILITY§ISTRICT NO. 359
lxl
lxltxl
lxlixllxltxl
IX]
txl
lxltxl
§UTPLTM§NTAL §CHE}UL§§ INCLUDED V/IT}IIN THIS TT§PCIÊ.T
ÂUGU§T 31, 2OOO
(§chedules included are checked or explanatary notes provided for omitted schedules.)
D. Notes Required by the Water Dish-ict Âccounting ManualSee "Notes tc Financial §tatements," Pages 8-15
E. §chedule of Services and Ratres
F. Schedule of §sneral §und Ëxpenditures
G. Schedxle of Temporary Investments
H. Ânalysis of Taxes Leviod and §"eceivable
L Ânalysis of Change s in General Fixed Asseis and Ûrganizational Costs
J. §eneral Lcng-Temr Debt §ervice Requirements, try Years
K, Ânalysis of Changes in General Lang-Terrn Debt
L. §tatement cf Revenues and §xpendiiures, §en*ral Fund and Debt §ervice Fund -Five Ysars
M. trnsurance Coverage
N. Êoard Members, Key Personnel, and Consullants
-1 8-
§ARzuS COTINTY MLINICIPÂL UTILITY»ISTRICT NO. 359
§ervices provided bY the Distriet:
* &e{ail lMatcr
- Retail Wastewater
* Farks/Recreation
§C§E}UIE OF §ERVICES AND RÂT§§
FOR TH§ YEÂR §NDE} AUüUST 3 1, 2OOO
_ Vy'hslesale Vy'ater
_ &lrolesale'ïVastewaterFire Protection
f! Dainagetrrrigation
* SecurityRoadsSslid lYaste/Garbage _ Flood Control
* Participates in.loint ven ture, regi*nal §y§:emo and/or wastewater service {ather tha:r ernçrgency i*terconnect}
des water and services to itc clrstalrnere throueh â {:ftntTâctX ûther The Distn nr{}vlwit?: the ôf H{)§stûn.
?. Retail rates based on 518" meter:
Thc most prevalent §pe of rneter (if r':ot a 5/8"):
X Retail ratss nst applicable
Usase
tIIIIIIIIIIIIIIItIr
lltinimum*Ç[qrs§"-
$_
s*.-s---*
Minimumllsagç_
Rate Per 1,000§allon* Over
Mi*imum
FIatI{ateTrN
WÀ?ER:
1VA§TEWATER:
§1.iRCHÂRG§:
3.
§ses the District ernploy winter averaging for wa§lewâter usage? Yes * No *
Total water and ya;tewater charges per l*,Û0* gallons usage {including surcharges}: S
Retaii service providers: I{umber of retail water andlûr wa§lewater co*n*ctions within the District as of the fiscal
year-end.
lnactiveConnectiors
ffispc)*
Siagle familyMultifamilyCornmerciatrOther - recreational centers, govemmerlt' aad VFO
Totals
Âttivecgasss§s!§
Active§§§c
*,,lnactive" means that wâler an* wastelvater connections were made, bu! service is not being provided.
*"§§FC" means equivalent single family connections
See aecompanyir:g auditor§' repûrt'
-19-
HARRT§ COLTNTY MIINICTTAL UTILITYDI§TKICT }{O. 359
SCHEDIII§ OF §ERYICE§ ÂN§ RAT§§ {Continued}
rOR TH§ Y§AR END§D AUÜU§T 3I, zOOCI
4" Total water consumption {in thousands) during th* fiscal year:
Gallans pumped into systern:
Gallons billed to customers:
Standby fees: §oes the Distriet assess standby fees? Yes -.
No -X
For the {iscal year ended August 3 1 , 2*ûû;
§ebt service: Tatal IevyToxal collectedPercentage collected
City(ies) in wl.rich District is located. Citv of Hr:uston
Is the District located within a city's extra territorial jurisdiction {f,T-ll?
ETJ's in which District is locaied.
Is the general membership clthe Board appointed by an office outside the )istriet?
5
NlÀ
ï.ilÂ
s N/À
s }ilÀ .
$%
Operalion and maintenanec: Total levyTotal collectedPercentage collected
Have stardby fees been levied in açcordance wilh Water Code Section 49 .231 , therebyconstituting a lien on property?
6" Ânticipated §ources of funds to be used for debt serÿiee payments in the §istrict's following fiscal year:
Debl service tax receiptsSurplus coasfruclion fundsWater and/or wastewater revenueStar.rdby feesDebt service fund balance to be usedInterest reveruesOther (describe):
Total dnticipated Funds To §e Us*d
7 " Location of District: County{ies) in which Oistrict is located. llarris
ls the District located entirely within one county?
is the District iacated within a city?
t%
Yes_ No_
â.b"
ç"
d.
f.s
Ârnaxnt
$ 62:,095
366,095
$**2âZJ-?§
Yes X Nc-§atirely *X- Partly
- Not at all
-Entirely _ Partly _ No! at all *L
If Yes, by whom?
Yes _ l.lo X
§ee acccmpâsying auditors' repôrt.
-2t-
HARzu§ CTTNTY MT'§TICIPAL UTITITYNT§TRICT NO. 359
§CHENULE ÛF GENHRAL FIIND EXTENT}IîIJR§§
rOR THE YEÀR EN}§D ÂUGU§T 3 1, ?OTCI
IIIIIIIIIIIIIIIIIII
CURRENTPersonael {including benefits)
Frofcssior:al {bes:
ÂuditingLegai§,ngineeringFinaneial adviçor
Pxrchased services for rçsale:Balk water and wastewater service purchases
Tap ccnnection expenditures
Contracted services:§oakkeepingCenerai rnanagerÂppraisal distric:Tax eollectorOther conracted services
Utilities
âepairs and rnaintenance
Âdrninistrative expeaditures :
Directors'feesOffice :uppliesJnsurance*ther adtnir.ri strative expenditures
CÀT]TÂL OUTLÀYAcquisition of fixed assets
§OLIP WA§TE }ISPÛ§AL
FIRE T'IÇ}ITINÇ
PÀRK§ ÀNN RÊCREÀTIO]§
*THER §X?NNDITURES
TOTÂL EXT§ND}:TLTRT§
Number of persons employed by the Disfrict: -ü- Fr:Il-Tirne Û Part-Time
s
$ 5,6ût)) t6'1
4t
- 16.8?5
8,436
44,633
8,436
36,730
§ 89.799
5,8*01,9963,16ü
25.174
§ee aecompânying âuditors' report.
-2t'
HÀRRI§ COUNTY MU§TCIpÂL UTTLITYDISTRICT NO. 359
§CH§DULE OF T§MPORARY INVE§TMHNTS
AUGU§T 31, 2ÛOO
§EN{§NÂL FUND
Certificate of Deposit
No. 99007
D§BT §§RYIC§ FTT§§
Certifieates of Deposit
No.33780No. 632535No.50001ü072No.36313T.{o.40005648§o" 95072§o.50568
CATITÂL PROJACT§ T'LTND
Certificate of Deposit
No.88844
TOTÂL§
trxterestBate
6.35 %6.75 %6.6A %6.50 %6.6Q %6"74 e/"
6.A0 %
Maturi§§ate
01/16/S1û1116/ûtI 111 ÿlût1 1/18/0ûallulalül/12/û109/l 5100
FaceÀmount
95,00ü95,00s95,000E5.ü00ç5,000
293,69*10q.367
878.t57
1r)? R?A
$ I .080.129
ÂrcruedInterest
Receivable
6.7ü% t2l19l0} $ 99.243 § 1.275
694738
1,7181,749
6352,48*?.e66
10"ÿ4ü
6"70 Yo 11/24lAA
§ee acccmpanying auditors' repofi.
11.LL-
94
q l, ?nq
HÂRru§ COTTNTY ML|NICIPAL UTTLITY§I§TRICT NO" 359
ÂNALYSI§ OF TAX§§ LEVIE} AND RECEIVABLE
rTR TH§ YEÂR E}{D§D AUCUST 31,2OOO
X§CEIVABLE, BEGT§INING $T Y§ÀR
Additions and ccrrections to prior years' :axes
Âd"justed raceivable, beginning of year
1999 §X.IGINÀL TÂX L§'TY
Addi:ions and ccrreetions
Adjusted tax levy
Total to be accounted for
Tax collections: Current YearPrior Years
§.ECEIVÀBL§, §F{D CIT' :TEA&
R§C§IYÂBL§, BY:a§AR§
19991ÿ981qç7r9961995
R§CXTVÂ3L§, §N} OT Y§ÀR
ÿlainteranceTaxes
§ 4,653
t. 77\
4.581
ÿ7,654
7.666
1?O
1û9,901
{ 102,305)
{ r.0?3)
r ɧ71ÿ--------.--Æ
3,015244
9428
3"196
§ebt§erviceTaxes
§ 9,625
{ 46ÿ)
9.1 56
59?,882
§6.934
644.816
$
653,972
t 626,359)
{ *§"765}
2t.848
18,4571,5ÿü
616185
§q
s 6.s73 S 20.848
See accompanying auditors' report.
-r 1_
HARRI§ COLINTY MLTNTCITAL UTILTTYDT§TRICT h}O. 359
ANALYSI§ OF TAXES LEVIED AND R§C§MBLE (Continued)
FOR T§E YEÂR EN§E} ÀUÜU§T 3I, 2OOO
1ç9S 1998 ,997 l99SPROPEKTY VÂL{]ÂTIÛI{§
LaadImprovemenlsPersonal prcperfyExemplions
TOTAL PROP§RTYVALT]ÀTION§
TÂX &ÀT§§ PER S1OT YÂLUATION
Ilebt service lax rat*sMaintenance Iâx râtes
TOTAL TAX Ê.AT§S TER§1OS YÂLUÀTION
TÀX L§VY
PERCENT O§ TÀX§§ CÛLL§CîEDTO TÂXT§ LEVIED
sl_Q:3§3é§Ê § 64.q12.58t $J§§,"::g §* JE§§J*?8
s 28,735,tr9079,581,13û
1,694,8CI0( 2.541,860)
s 17,589,68û48,366,6401,145,05t
{. 2.18e.7e )
s 16,395,66û33,289,33û
838,480( 2.ÿ37.7§0)
s 10,?48,58015,178,78§
263,264r 1.688,§60)
s 0.60ü0.098
s 0.6sû0.CI98
s 0.65 s 0.s5û, l0
s_**üÆq s_-*§,74§ S_*§J§ s**-_A.:§
s 7s0. i 36 s 485.760 s 1§? rae s i 83.764
ç7% w% 9ç% 99%
§ee accompanying auditors' report.
1A-L*-
HÂRRI§ COTINTY h,TT"'NICIPÂL UTîLITYCXS?zuCT NO" 359
À§lAlY§I§ *F TAX;S L§VIED AND R§CEIYÂ3LE {Conti*u*d)
F§R TH§ YEAR ENDED ÀUüUST 3 1, 2Û*Û
Tax rate for any other special districts which {a} encompass }ess than â Çounty, (b) provide water, wastewater coliecticx, drainage, cr
roads 1o property in the District, *nd {c} tâx property in the Ûisfrict.
NÂME Or Sl§e!ÂL §I§TruCT(§) §E&YlCg PROW§§p TÂX eÂT§
TOTAL RÂT§{§) O§ §}ACIÀL }I§TR}CT{§) sæ
rate fcr all overlapping.lr-rrisdictions. lnelude any taxi*g entities which overlap 10 per*ent §r rl§re of the District"Tax
L
TÂXil§Ç &&I§}ICTIO§ TAX RATO
s 0"64802
0.66500
1.64tSS
_ ü.6e80CI
s 3.65 I 02
C*unty Hzric
City llnrictnn
c. School district À li e{ Inderre-n*ert Sc}rerol
d. §pecial districts not included ab*ve
.. Total special districl (âom top ofthis page)
f. Tstal Distriet tax rate (*clr previous page)
s. TOTAL OY§RLÀPPI§G TÀX §.ÂT§ {sum of a. - f.}
§ee accompâIlying âuditors' rspûrt.
â(
HÂRRT§ COLN{TY MLJ]{ICIpÂL UTTL1îYDISTzuCT NO" 359
ANALY§T§ OT CHÀN{i§S 1}'I6§N§RAL FIXED A§§T:T§ÂND ORGA}]IZÀTIONAL COSTS
FOR THE YEAR ENDED AUçU§T 3:, 2OÛü
§alances,§eginning
of Year Âdditirns
§alanees,§nd
cf Year
'lVater, server, and drairage faeilities
Construction cosls:
'Water system§ewer syslernDrainage syslerr:Engineering fees
{} r ganizatianal, fi nanc ing, and indirec t c osls
Legal feesFiscal agenT fbesûther coststrnTeresl
TC'TÂL GT§TRÂL FIXED À§§ET§
INY§STIVIEI,{T I§ GTNEX-ÀL FIX§} ÂSSET§ FROM
Bond prcceeds
6.4 i 3.8s3 3.893.463 10.3û7.3 I 6
f .i)13.755 649.1 05
436,613269,621I O1 ?q7R51 7(6qÆ
1.562.86t
s*_3i21-ɧ§ s**&J421§§ $ 11.9"70.116
s 879,912 S) 1'7\ n1)? §5n §71
858.296
r?? ?qa q
i,050,8182,561,494
158.252
953,2113,225,89{)5,1 1 1,6671"016.548
291,8091 58,1 7t62,936
4ç{r.83q
144,864101,45û4û,361
362_43{}
s î.427 "6t8 s-_â:ézJ.ü§ $ .17b11
§ee accompanying audiTors' report
-26-
HARRI§ COLTT{TY MLINICIPAL UTILITYÜI§TRICT NO. 359
§EF;ERAL LÛ§§.TERM DE§T SERVICE R§QU:R§MENT§, §Y YEARS
ÀUGU§T 31,20CI0
Series l9§6
§ue §uring§'iseal Years
§qdins Âaglrst 3l
?rixeipal$ue
Jure I
Interest DueDe*ember 1,
Juue 1 TataI
20ût2ü0220032ûû420*520062*ü'72tû8züü9201û2ü112û127Al32*142*152üt6
75,û0080,ûû085,0ü090,ü00ÿ5,000
1CI5,û0û1iû,ûût1 15,00CI
tr25,00û135,000145,CI0û155,ût0165,û00175,üCI0
190,0t02û0.tû0
116,849113,ü98108,9?§1CI4,516
ç9,TÜ1qA \7488,696&2,42675,75668,44450,51351,99442,88733,194)) q11
1 1.750
1ÿ1,849193,0ç8\93,9V91§4,516194,7ü1199,52419§,696r97,4262üü,756)n-\ adL
2ü5,5:32*6,ÿÿ42A7,&877*8,1942L2,ç132X1"75*
ss §
T{}TÂL§ q ? n45 rlôo s 3.22t.240
§ee accompanyi*g auditors' repsr:.
-77-
HARKT§ COL]NTY fuTTINTCIPAL U?ILTTYDI§TRICT NO. 359
GENERÂI- LCING-TERM D§BT §ER.YICE REQUIR§MENTS, BY YEAR§ {Continuerl}
ÀUGU§T 31,2ÛÛÛ
r aq?
Due §uringFiscal Years
§adins Âugnst 31
200t28422û032ûü4?4ffi2û067tü72CIO8
2409201û2ti 1
2t172tt32û1420152tt670172ül8,
Principalûue
.Iune 1
80,0ût)80,00085,000ÿ0,ü0095,000
1û0,tûû105,0001 15,00012t,û00tr25,000130,00û140,0û0145,000155,ûût16û,000175,0004S0,00§47s.AAt
s 2"725.000
§ee accompanying auditors' report"
')Ç
§s
Interest §ueDrcember 1,
June I
$ 1.862.û87
, Total
$ 153,402149,û83144,76714t,1,731 ?< 211'JJ'J
LJ
1 30,1 821)A 79,1'| 10 1',I 1
112,7881t6,06?99,46791,78783,87875,61366,7t§57,5004V,438-14 t19.Æ
233,442229,A83229,?6223a,3,73v3*,3tr323û,1 82229,783234,113232,788231,467229,ü67233.,787228.87823ü,ill3226,700232,5çû447,438449"438
§**{19.0§:,TÛîÀT§
§ÀRRIS COLNTY §/TUNICIPÂL UTILITYNI§TRTCT NO. 35ÿ
GEN§RÂL LON§-TBRM NE§T §TRVICE REQUIR§M§NT§, BY Y§AR§ {COTTiNUCd)
ÂUGU§T 31, 200Û
§eries 1998
Ilue ï)uringFisc*l Years
Endinp Ausust 31
Srincipal§ue
Interest Due§ecember I,
June 1 *.T T Total
20û12**2200320ü42005Ztt62t*72ûû82üt920iû20i 1
2*172t132ü142*\520i67*1720i I7*192*24
§ 40,0ûû100,tsûlû5,ûü0110,t0û120,00012û,00013û,0û0135,00ü145,00015t,ûtû165,0ü0170,û0ûi 85,00û1ÿ5,ûût)205,û00215,û00225"üt]074ü§A{)445,û0CI480.0û0
L7ü,764167,663161,164154,338147,189139,388i31,589125,088119,6891 13,888l*V,7391CIû,891
93,75185,88877,5û468,53559,t7549,5121q 111
§ 21Û,264267,663766,164264,33&267,189259,388?61,58q260,û88764,689253,888)7) 1'r^O
270,891)'7R "7\t
280,88§282",5*41A? (1(LUJ,JJJ
)R4 {\75,R,q 51?
4&4,31350Û.400
§
4fiû
TOTÂL§ $* 裏§*q§g
§ee accompanying auditors' reporl.
-29-
s 2.132.868 q 5 R1? R6R
HÂRru§ COL]}.ITY ML}NICIPAL UTILTTYDI§TRICT NO. 359
§§NERAL LONG-T§RM DEBT SERYICE REQUI&-EM§NTS, BY Y§AR§ {Continueel)
Àu§u§T 31.20ûS
1ûqç
§ue DuringFiscal Year;
{nding Àugqst 3l
PrincipalDue
June 1
Interest DseDecember 1
June I
§ 5.187"794
Total
s 10.232.794
20û1?a*220032*û42CIO5
2tü624072t08?ûü92010201 1
2*122{}132t142t157tt624172018741ç742û24711nî ')
2423
s 6û,t0060,00065,000?0,ü0*70,CI00
7û,00û80,00085,üû085,00ü9CI,000gû,û0û
90,00t90,00ü95,00s
1CIO,000
1û0,00û100,0CI§
100,ûû0360,{}ût365,û00890,û00940,000qÇ5.üûû
§ 291,675287,175282,675277,8ût,?, <§n-, L)rrv
267,30t762,t5ü256,05*24ç,675)4\ 144
24t,745736,ü25231,30ü226,530221,44&2.16,44721t,5982t5,497i99,598110 A\7158,9051t8,84455.969
s 351,675347,175347,675347,80*342,55t337,3Sû14? 050
341,S50334,675335,340330,705326,ü25321,3ûû37ï,53*321,448316,447310,598305,09755q 5qR5âA 417
1,048,9û61,048,844
1.05ü.969
TOTÂL§ $ 5^0s0.000
§ee aecompanying auditors' report.
-30-
HÂRru§ COLI§TY MLNICIPÀL UTTLITYÜISTRTCT NO" 359
üENERAL LON§-TERM r§§T SERVTCE REQUI&§1,,{§}'IT§, §Y YEAR§ {Continued)
AUGU§T 31,20ÛO
rral Rea:rirements §'nr Àll
§xe §uringFiscal Years
EUdinS Âugast 3l
lotalPrincipal
§uç
TotalInterest
Due
TotalPrincipal AndInteresi Due*
20ût2*0220û3Zta420û52ûû62ü*720t87üt92CI10
2A1t701720132ü1420152CI16
2*17201 I28192*7*202\2ü272A23
$$ 255,ûû0320,t0û340,ûû0350,t0038t,0CI0395,ü00425,0Sû450,00û47i,ûtû5*û,t0053ü,0û0555,û0S585,û0û62û,tût655,00069û,000725,0ü*?65,û0ü§05,üs0845,Sü0890,ûü0ÿ4ü,0*t995.00CI
732,1ÿü717,ülÿ697,584676,877654,753631,394607,1 tr I582,677557,9û8533,7395ü8,*2448A,697451,816a)1 ))\388,565353,832317,1 I 1
27ÿ,*47238,911199,837158,9û6108,84455.96q
s ÿ87,19ü1,037,01S1,t37,58CI1,036,827t,t34,7§3i,026,3941,CI32,1181,032,6771,t32,9*8tr,ü33,7391,t38,ç241,*35,6ç71,036,8161,ü41,2251,043,5651,043,8321"*42,1111,a44,0471,û43,9111,044,&371,048,9û61,048,8441.050.969
TÛTÂL§ s 13.500.000 s 10.353"989 q ,1 R§1 qrQ
§ee accompanyi:rg auditors' report.
al-Jl-
(f §I§ PAGE Iit{T§NTIONALLY L§f'T §LÀfnlK)
IT
IIIIIIIIIIIIIIIII
HÂRRT§ COT"]-I{TY MUNICITAL UîTLITY§ISTRICT NO. 359
ANÂLY§§ O§ CHANGE§ IN §EN§RÀL LON§-TERM D§BT'
§'OR TH§ YAAR END§D AU§U§T 31,200Û
Rnnd
Inte:est rates
Dates interest pâyâble
Maturi§ dates
Bonds CIutstanding, begir:ni:rg of cuxent year
Bonds sold dr:ring the current year
Retirernents, principal
Bonds outstanding, errd of currest yeâr
lnterest paid during the curre*t year
Paying agent's name and address:
§eries 1996
4.6ü"/a ta5.88%
*ecember 1iJune I
June 1,
2ü*112üt6
§ 2,115,û00
?0.sæq ? 045 000
9" 1)O 144
§eries I§97-
5.4üo/o ta5.75%
Deeember 1lJune I
Jun* i,2üütna18
$ 2,800,CI00
75.û0û
q ? 7?§ nr)ô
q 1§745?
Series 1995 - 'll/ells Fars{, Ba:rk {'fex ar] NA-Housfon,Texas
Series 1997 - Chase Rank nf Texaç- :tir:nal Ascnciafinn HnnsTnn Texas
§eries 1ÿ§8 - . l'Jational Assoeiation. " Texas
Series 1999 - (lhase Rank of Texas" atinnal Âssnciation. Ilailas, ?exas
Bond authoriÿ:
Amount authorized by votersÂmount issuedRemaini;ig ta be issued
Tâx Bqnds
$ 2û,79CI,ûûû
§ 13,780,0CI0
$ 7,010,00Û
Dei:t sen,ice fund cash and temporary investment balances as of August 31, 2000:
Average ann*al debl serl/iee payment (principal and interest) fcr remaining lerm of all rlebt:
§ee aecompanying auditors' repcrt.
a^-) /"-
Qther §qsds ReflndinE Bonds
0 $ 20,7q0,0000 s 0
0 § 20,79t,0tt
$ _l-53§§63
§ 1 .03?.130
Irsrres
§eries 1998
4.tt"la tç6.5ü%
December 1/June 1
.lu*e L,
2A*1ftûzt
s 3,72ü,Ûû0 $
4t.00s
§eries l9ÿÇ
5.10% to7.5*%
üecernber 1lJune I
June 1,
20a117a23
5,050,000
q 5 05û 000
q 145 Rlc)
§ 8,635,0ût
5,05ü,û0û
185.000
Totals
$ 3.680"0û0 s 13.500"000
q r7? R61 § 5e6.3e8
-33-
HÂRRIS CO1TI§TY MLI§IICTÂL UTILITY§ISTRICT NO. 359
§TAT§M§NT OF REY§N§E§ ANI} §XPENDtrTURES,G§N§§,AT T'UND AND D§BT §ERVICE FL'N»
§ÛR YEARS §NDED ÀUÇIJST 3I,
ÀMûîINT§
§§Il''E§"ÀL T'UND
R.§V§NUE§P:oper§ taxesCi§ of Houstcn rebaTes
lnterest cn depositsOther
TÜTAT REV§NU§§
EX}EN}ITUR§§Current:
Professional feesContracted setvicesRepairs and maintenanceOther expenditures
TOTÀL EXPENI)ITURES
rxcESS §EY§FillX§ {EXrE§nIîURrS}
OTHER FI]§ANCTNG SOURCE§interfxnd rransfersDeveloper advancesPrûceeds from saie ofbonds
TÛTAL OTHKR FINÂ]I{CING §OL]XCES
§XC§S§ §üURC§§
FTINI} BÂLÀ]§CE, B§ÇI§N:NG OT' YEÂII
IIUND SÂLÀNCE. §Nr} ST YEAR
TI}TAL ÀCTIYA RETÂIL WÂTER ÀI§§IOR}VA§TE\ryATER CONNECTIÛI.I §
2ût)0
s i *3,328
I 1,150
114.478
44,6338.436
3É-71_0
8\ü99
21.{)19
24,67q
l/,iQ17......"-"...-
§ 19Û"596
l!lA
See accompanying auriitors' repo*
-34-
1999
§ 65,343
8,547
30,569o rl,i'
)LJ \
1 145)4 61"/Æ65.582
8,308
I9§8
§ 47,73&? 1,6i 6) a\a-r,J
t
36,§3612,713
1,56û1'7 2,)AÆ6R ? 1',I
<A n1<Ja.w t J
20,000
20,û0§
74,t75
61 r14Æs 135.909
73"890 127"3ç8
11,2ü010,5û0
CI 21.74ü
3û,û08
135§§9
§ 165.917
N/A NIA
P§RC§NT OP Âr aï:vIr,NTip,§
2000 1999 r 98 . .!997 _ 19961
§ 24,17962,474
)4)
4§"44911,843
1 )1\15.53-û
7§ t()7-__-___-!-*-JJJ
1t ?aR
37,8ûü
" 1 1.648
49.448
6ü,746
1.088
$**§À§;§
NlÂ
1çç6
') .t
LI
lû 15§
71.441I 4511 1)q
t5 i7l..".....".."....-
52.73§"
t 4) 401\g/
42,638
* 4;.638
737
__§l:c 1
^ûoù r.uôô
§r§
9ü.3 %
ç.7
3ÿ.07.4
12.L
78.5
*M%
88.4 %
1 1.6
41.412.5
1.5
-1_1.-1
-*_)-1).%
39.t %58.6
1AL.a
30.CI
10.4i.3
14.1
55.8
**"§§2%
27.ÿ %7t "8
0"3
53 "Vt).t
1.518.1
87.0
*JJ§ %
9ÿ.8 %
*.2
100.û
264.681.612.8
, i 50.4
5ûÿ.4
909.4\%
q tô 114
10CI.§ 1§§§ _lü0-0 100.{)
1Ë-tJ-
HARRI§ COUNTY MLNICTPÂL UTTLTTYDI§TRICT NO. 359
§TAT§§,T§NT OT R§VENUES ÂN§ EX?ENDtrTUR§S,GENERÂL FLJI{} AN} DEBT §ERVIC§ §'UND (Cantinued}
FOR Y§ARS END§D ÀUGUST 3}.
2ûtt 199ÿ
ÂMOUF{T§
IIItIIIItIIrIItIIII
}EBT §§RVIC§ trLT!{}
RTYTNU§§Properfy taxesCity of Hcuston rebatesPenalty and interestInterest on depasitsAccrued i*terest received on bonds at date ofsale
TÛTAL §.EV§NIE§
EXP§NDITUR§SCuxent:
Pr*fessior:ai fees
Contracted servicesOther expenditures
Debt service:Principai retirementI:rterest and fues
TÛTÂL §XPENI}ITLiRE§
§xc§§§ R§vENlrE§ {§XP§NDITUR§§}
OTH§R TINANCI}.{C SÛI.iRC§§Proceeds freim sale of i;onds
§XC§§S §OI]RCE§
FUND BÂLÂNCT, §E§:N§ING ÛF Y3ÂR
r.UNN BATAIYC§" EI§§ OF Y§ÀR
*Debt service fund was r*t maintained in prior years
1.3?6.6e* 483.056 349"249
§ 633,124598,216
13,4476§ )S1
17.û I4
§ 427,133
{ R§1J,VJJ
38,9011 1 .169
? §45
I 1,1608,û03
95,0tt1R? 66i
)46 (1)R
))q71\
i§? 11?
s*-79.442
1998
§ 308,427Ê or4vr, L t
3,6ÿ32&,215
7,0165,294
280.686
2
56,253
56,253
5ül "074
§*_t"g;22
1,39915,689ÿ,û6S
185,000596.398
Rn7 §§? 499"3.9
519,142 { 16,313}
29ü.37s
R(tq 5t7
'1R^7 û4)Æ
q, 1 §qr, 55Q
See accompanying ailditcrs' report.
- -, ()-
P§XC§NT ÛT' îOTÀL }IEY§NU§§
2000 1999 1998 '991
-leev\
s 150,750
) 5\)13,63827 "073
193"963
4,t493,699
1 ô? 60§
1 10.443
L17 \\A
501,074
ü
47.7 %45.1
1.04.9
-ll
88.4 %
1.28.1./-.)
19.77?,2
103.4
( 3.4\o,;,
{t//{, 77.7 %
117"ü
1.â s
2.1i.9
88.3)61.1
8.1
100.0 10§§ 100"1 rCIr.ü
0.r1,20.6
0"52..3
1.72.*1.6
52t83
13.9,1 < n
" " 61.5
38.5 %
_§§J
__§4.S
16.1 %
57.9
s6.ÿ,
43.1 %
s 501.ü74
-37-
HAR§J§ COLIJ{TY MLI}{ICIPAL UTILITYDI§TRICT NO" 359
Tlpe qf Coverage
FID§LITY BON§§
Tax coliector
Directors, per director
Consulta*ts
I)IRECTÛR§ AND OFFICERS'LIABlLtrTY
Per oçcurrence
Âggregate
CÛMPREHENSIVE GENERAI-A}{} CCINTRÂCT{,}AI-LIÀBILITY
Per occurrence
Âggregate
ÂI]TÛMOBII-E LIABXLITY
UMBRELLA LIABTLITY
IN§URA}'IC§ COYERAGE
ÀUCU§T 31,7T*T
lromflc
Àrnountof
Coverage
*3l3llüü-ü31311ü I $ i0,000
Jnsur:er §ame
?he ]:Ia:tford Casaai:yInsurance Compalry*
The Hartford CasualryInsurance Compa:ry*
The Hartford CasualtyInsura*ce Company*
Nationai ijnion FireInsurance Company of
Pittsburgh. PA*
New HampshireInsurance Cornpany*
Ne:v HampshireInsurance Company*
§ew HampshireInsurance Campany*
æfiUA$*313ufrl
FrlicyCIause
Çsisss§!§g
§cne
None
Nane
None
Nale
I'Jane
None
03/3 1/ûû-r)3/3 l l0 1
t3l31l*ü-aÿ31141
1û,0û0
1t,CIs0
2,0û0,000
4,ûüû,ü0û
2,000,000
4"000,t*0
2,0ûû,û00
û3/3 1lû*-0313 110 1
*3l31tt*-03131101
03/311û0-û3/31/*1 1.000,OûCI
§ee acc*mpanying auciitors' report.
-38-
*§tock cûmpany
HAKKI§ COLT§TTY ML]NICIPAL UTILITYDISTRTCT NO. 359
BOARD MEMBER§, KHY PËRSONNEL, ÂND CON§ULTANT§
FOR ϧE Y§AR END§» AUGUST 3I, 2OTü
Cornplete District Mailing Address:
§istrict Business Telephone Nurnber:
Han-is Counry Municipal Utility District No. 359clc §chwartz, Fage & Harding, L.L.P.1300 Fost Oak Boulevard, §site 1400Houston, Texas 77*36Arc {713) 623-453r
Term af0{ficc
§lected &Exrires
05/061ü0-05/01/04
a5lwl98-tst04t*7
ûstt2l98-a5§41a2
q rtoû
i.3§ü
1,ü0{}
§xpenseFees Reimbxrsemexts
Title atYear-§nd
IL*sidertof
Distfict?l§ame and Address
Board Members
Cathy Guernsey6 rtrhi:ebnish LaneThe 1iloadlands. Texas 1738t
Louis L). Carpenlcr5û30 Tar::brcokHouston, Texas 77484
Kermit ll. §mith6CI07 Febble Bsacl:§ouston, Texas 7706{}
Williarr Â. McDa<le5ûS5 R.iverway, Suite 310Houston, Texas ]7456
Âdarn N. Gould5005 Riverway, Sr:ite 31ûHcuston, Texas 77ü56
Not:
s 0
0
President
Vice?resident
Secrelary
Director
Direcxor
Na
No
b.lc
I§c
No
0
0
û
No director is disqualified frorn serving on the lloard of tire Dislrict under the Texas Water Code
05102198-t5tt4tt7 9ü0
Appointedaÿa6l0t-05/01t04 1,3CIt
§ee accompanying auditars' report"
-3q-
HARRT§ COLTNTY MU§IICTPAL UTILITYNISTRICT }.{O. 35ÿ
tsOARI) MEMBERS, KEY P§RSONN§L, ÀNI) CONSUI-TANT§ {Cantinued)
FOR THE YEÂR ENNED THURSDAY, ÂUGUST 3 1, 2OOÛ
CQnsrllartq
Harris County Âppraisal Disrricl28û0 Norih Loop'WestHouslon, Texas 77Ü92
Juran & Moody, Inc.1177'Wes! Loop §outh, Suite 185Û
Houst*n, Texas 77*27-9*t8
R.C. Miller Ë,ngineers, ïnc.i3i3 Sherwood ForestHoust*n, Texas 77*43
Municipai Accounts, Inc.130û Post Oak Boulevard, §uite 1440
Hcuston, Texas 77Ü36
§chwartz, Page & Harding, L.L.P.13*û Posl Oak Boulevard, Suite 14SÛ
Houstcn, Texas 77*56
Barbara TVheeler, CTÂ, RPA6935 §arney Road, Suite 110
Hoast*n, Texas 77*92
l&lhite Fetrov McHone Profsssicr:al CorporationCertified Public Accountants1415 Louisiana, Twenty Fourth FloorHouston, Texas 77AÜ2-7357
Iq e§t[mert qf{içer
Carhy G*ernsey
§ate Hired
LegislativeActi*n
*7t29t93
ü8ltÿlç4
t7179193
*7t29t93
t7l29lç3
a8119194
a5l*41ÿ6
See acc*:npanying auditors' reporl.
-a{\-
Fees aldExpense
Rei§ctlursernents
s 5,889
t78,775
35,682
8,436
15"7,419
ÿ,80CI
9,6û0
N/A
?itle
Appraiser
§inancialAdvisor
§ngineer
Baokkeeper
AtT*rney
Tax Âss*ssor/Collector
Auditor
§irector
Baifl, l(urtz & llo[son1415 Louisiana, Twenty Fourth FloorHouston, TX 77002-7352
713 97G3200 Fax 713 658-9606
IItT
ItItIIT
IT
I
bkd.com
Board of DirectorsHarris County Municipal
utility District No. 359Harris Counÿ, Texas
Members of the Board
In planning and performing our audit of the general purpose financial statements of HARRISCOT NTY MUNICIPAL UTILITY DISTRICT NO. 359 (the District) as of and for the year endedAugust 31, 2000, we considered the District's intemal control and the requirements of the TexasNatural Resource Conservation Commission, which are outlined in the WATER DISTRICTACCOLTNTINCi MANUAL (the MANUAL). These items were considered in determining ourauditing procedures for the purpose of expressing an opinion on the general purpose financialstatements and not to provide assurance on intemal control. The following comments are madepursuant to this audit:
Compliance
As part of ubtaining reasonable assurance about whether the general purpose financial statementsare free of material misstatement, we performed tests of the District's compliance with certainprovisions of the Public Funds Investment Act (the Act), noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However, providing anopinion on compliance with the Act
"vas not the objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance that weconsider being reportable conditions. Reportable conditions involve matters coming to our attentionrelating to significant deficiencies in the District's compliance with the Act.
General Comments
The District maintains its records generally in accordance with the MANUAL on the modifiedaccrual basis of accounting. The District's consultants were helpful in providing information andorganizing the District's records in a manner which facilitated the audit.
This report is intended solely for the information and use of the Board of Directors. This restrictionis not intended to limit distribution of this report, which is a matter of public record.
§oluüons
l'..r*
ttT
I
/,rj, ,lrA"--q a
A membet of Moorcs Rowlatd lntematiûal,an Miatimot indwndent
affiunl@ frms hrcughouthe wnd
November 3. 2000
ramlt/
