sequoia improvement district information required by section … · 2020. 1. 17. · sequoia...

Sequoia Improvement District

Information Required by Section 26.18, Texas Tax Code

Date: January 1, 2020

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

James Eastham, Sr.

Richard Slater

Karen J. Baker

Melva D. Strahan

William P. King

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

2727 Alien Parkway, Suite 1100Houston, Texas 77019713-652-650094048 @smithmur. com

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

Same as Item- (2) above.

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

See attached.

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

See attached.

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

Dollar Amount$2,500

Percentage0.45%

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

See attached budgets.

94048-002 461504vl

/

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

The District does not budget for debt service.

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

2019: $0.32

2018: $0.33

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

2019: $0.12

2018: $0.12

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

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

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

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

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

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

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

See attached.

94048-002 461504vl

2020 Budget

I

Sequoia IJ).Budget

For The Fiscal Year Ended September 30,202012/09/19

1

Revenue

Water RevenueSewer Revenue

GRP RevenueMamtenance TaxSecurityInterest EarnedMiscellaneous Income

Total Revenue

ExpensesDirector FeesPayroll taxesLegal FeesAudit FeesEngmeermg FeesLab FeesElection expenseLegal NoticesPennits (H-G & TCEQ)GRP ExpenseTCEQ-W/S Rev. Assmt.FeeOperator FeesBookkeepingRepairs & MaintenanceOffice ExpensesChemicalsUtilitiesSecurityTravel ExpensesInsurance & BondsGarbage CollectionsPurchase Sewer ServiceMisc. Expenses

Total ExpensesIncome From Operationl

Balance® 7/08/19Deposits ReceivedDeposits RefundedOffice FireAnnexationsFunds available @

12/9/2019

2

ActualCurrent Period

Budget

8,243.2913,631.862,358.712,321.67

876.37245.94

0.0027,677.84

900.001908.96i

2,761.75:8,500.00 i

o.ool86.000.000.00;

928.5510.000.00

1,920.00725.00

10,576,321,464.30

144.752,700.69

822.120.000.00

409.910.00

100.0032,948.35-5,270.51

VarianceAnnualBudget

ActualYTD

Year-to-DateBudget Variance

7,500.0015,833.332,166.67

20,000.00872.08208.3341.67

743.29-2,201.47

192.04-17,678.33

4.2937,61

-41,67

90,000190,00026,000

240,00010,4652,500

500

17,016.3527,193.485,098.932,321.671,649.30

498.850.00

15,000.0031,666.674,333.33

40,000.001,744.17

416.6783.33

2,016.35-4,473.19

765.60-37,678.33

-94.8782.18

-83.3346,622.08 -18,944.24

1,050.0050.00

3,054.17875.00

3,333.33145.83

1,041.67416.67208.33

7,083.33125.00

1,916.67833.33

4,833.331,250.00

333,333,416.67

833.330.00

541.674,200.00

14,000.0041.67

-150.001858.96'

-292.42'7,625.001

-3,333.331-59,831

-1,041.67-416,67720.22

-7,083.33-125.00

3.33-108,33

5,742.99214.30

-188.58-715.98-11.21

0,00-541.67

-3,790.09-14,000,00

58,3349,583.33~-16,634.98

559,465

12,6001600]

36,650]10,500140,0001

1,750|12,50015,000|2,5001

85,00011,5001

23,000110,000|58,000115,000!4,000,

41,00010,000

0;6,500

50,400168,000

500

53,778.58

2,550.00|557.75]

6,653.98]8,500.00|

0.001275.851

0.000.00

928.550.000.00

3,725.001,450.00

15,704.932,729.47

829.755,304.331,533.45

0.000.00

2,047.560.00

300.00

93,244.17 -39,465.59

2,100.00100.00

6,108.331,750,006,666.67

291.672,083.33

833.33416.67

14,166.67250.00

3,833.331,666.679,666.672,500.00

666,676,833.331,666.67

0.001,083,338,400.00

28,000.0083.33

>,'

-2,961.25 -2,309,26595,000-35,535

53,090.62687.96

99,166.67-5,922.50

647,042.86175.00

-350.000.00 * fiisur con-0.00

641,597.35

640,984.39675.00

-750.000.000.00

641,597.35

Myrtle Cmz, Inc.3401 Louisiana Street, Suite 400Houston, Texas 77002 (713) 759-1368d:\public\Sequoia,xls

-450.00-457.75-545.65

-6,750.006,66^.67

lt822,083.33

833.33-511.88

14,166.67250.00108.33216.67

-6,038.26-229.47

; -163.081,52SJ.OO

133.220.00

1,083'.336,352.44

28,000,00-216.67

46,076.056,610.46

I !

-6-

2019 Budget

SEQUOIA I.D.Budget for year ending 9/30/19

ADOPTEDBudget Budget9/30/2018 10 months

INCOMEWater Revenue

Sewer RevenueGRP RevenueMaintenance Tax

SecurityInterest EarnedMiscellaneous Revenue

TOTAL INCOME

EXPENSESDirector FeesPayroll TaxesLegal FeesAuditing FeesEngineering FeesLaboratory ExpenseElection ExpensePublication of Legal NoticesPennits (H-G & TCEQ)GRP ExpenseTCEQ vv/s rev. Assmt, FeeOperator FeeBookkeepingRepairs & MaintenanceOffice ExpenseChemicals

Utilities

SecurityTravel ExpenseInsurance & Bonds

Garbage CollectionsPurchase Sewer Service

Miscellaneous ExpenseTOTAL EXPENSEAdd or (Subtract) from Reserve

ADOPTED:

Myrtle Cruz, Inc.3401 Louisiana Street, Suite 400Houston, Texas 77002(713} 759-1368ri;\pul)li(-\tyjtiy.w<[iiu[il3.x[s

556,965

12,600600

36,65010,00050,000

1,75012,5005,0002,500

29,0001,500

26,00010.00049,00014,0004,000

35,00010,000

06,500

50,400155,000

500522,50034,465

Approved

:fW»P©S®B=Actual Budget

10 months 9/30/19

90,000 82,500 95,336 90,000 Operator196,000 179,667 199,601 196,000 Operator26,000 23,833 27,102 26,000 Operator

233,000 213,583 216,933 233,000 Tax Assessor10,465 9,593 10,642 10,4651,000 917 1,920 1,000500 458 493 500

510,551

11,550550

33,5969,167

45,8331,604

11,4584,5832,292

26,5831,375

23,8339,167

44,91712,8333,667

32,0839,167

05,958

46,200142,083

458478,95831,593

552,027

12,900277

40,84410,5007,2772,2285,2123,644

98929,678

1,37523,6909,163

49.22316,0743,885

33,78811,794

06,467

50,858155,634

2,065

556,965

477,56474,463

12,600600

36,65010,00050,000

1,75012,5005,0002,500

29,0001,500

26,00010,00049,00017,0004,000

35,00010,000

06,500

50,400155,000

500

AttorneyAuditor

EiigiiiecrOperatorAttorneyAttonieyOperatorOperatorOperatorOperator

0|)ein(or

Operator

Operator

525,50031,465

2018 Budget

SEQUOIA I.D.Budget for year ending 9/30/18

s

E.

ADOPTEDBudget9/30/2017

INCOMEWater Revenue

Sewer RevenueGRP RevenueMaintenance TaxSecurityInterest Earned

Miscellaneous RevenueTOTAL INCOI^tE

EXPENSESDirector FeesPayroll TaxesLegal PeesAuditing FeesEngineering FeesLaboratory ExpenseElection ExpensePublication of Legal NoticesPermits (H-G & TCEQ)GRP ExpenseTCEQ w/s rev. Assmt. FeeOperator PeeBookkeepingRepairs & MaintenanceOffice ExpenseChemicalsUtiUtiesSecurityTravel ExpenseInsurance & Bonds

Garbage CollectionsPurchase Sewer ServiceMiscellaneous ExpenseTOTAL EXPENSEAdd or (Subtract) from Reserve

ADOPTED: 9/11/2017

Myrtfe Cmz, Inc.3401 Louisiana Street, SuJte^JOHouston, Texas 77002

0713} 759-1368d;\public\bctty\3cquoipb,xl3

545,715

12,600600

36,65010,00050,0001,500

00

2,50029,0001,500

26,00010,00049,00014,0004,500

35,00011,000

06,500

61,200183,800

500545,850

865

Budget10 months

Actual10 months

ADOPTED

Budget9/30/18

90,000 75,000 79,112 90,000 Operator196,000 163,333 164,826 196,000 Operator26,000 21,667 21,649 26,000 Operator

223,000 185,833 232,167 233,000 Tax Assessor10,465 8,721 8,916 10,465750 625 939 1,000500 417 403 500

455,596

10,500500

30,5428,333

41,6671,250

00

2,08324,1671,250

21,6678,333

40,83311,6673,750

29,1679,167

05,417

51,000153,167

417454,875

721

508,013

10,350-244

30,41110,25021,4521,642

00

90223,6911,427

20,1407,600

64,52012,1233,216

28,6668,876

06,174

41,200116,978

1,489

556,965

410,86297,151

12,600600

36,65010,00050,0001,750

12,5005,0002,500

29,0001,500

26,00010,00049,00014,0004,000

35,00010,000

06,500

50,400155,000

500

AttorneyAuditor

EngineerOperatorAttorneyAttorneyOperatorOperatorOperatorOperator

Operator

Operator

Operator

522,50034,465

2018 Audit

SEQUOIA IMPROVEMENT DISTRICT

HARRIS COUNTY, TEXAS

ANNUAL FmANCIAL REPORT

SEPTEMBER 30, 2018

McCALL GIBSON SWEDLUND BARFOOT PLLCCertified Public Accountants

SEQUOIA IMPROVEMENT DISTMCT

HARRIS COUNTY, TEXAS

ANNUAL FmANCIAL REPORT

SEPTEMBER 30, 2018

TABLE OF CONTENTS

INDEPENDENT AUDITOR'S REPORT

MANAGEMENT'S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

STATEMENT OF NET POSITION AND GOVERNMENTAL FUNDS BALANCE SHEET

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THESTATEMENT OF NET POSITION

STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUNDS STATEMENT OFREVENUES, EXPENDITURES AND CHANGES W FUND BALANCES

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OFACTIVITIES

NOTES TO THE FINANCIAL STATEMENTS

REQUIRED SUPPLEMENTARY mFORMATION

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL - GENERAL FUND

SUPPLEMENTARY INFORMATION REQUIRED BY THE WATER DISTRICT FINANCIALMANAGEMENT GUIDE

NOTES REQUIRED BY THE WATER DISTRJCT FINANCIAL MANAGEMENTGUIDE (Included in the notes to the financial statements)

SERVICES AND RATES

GENERAL FUND EXPENDITURES

INVESTMENTS

TAXES LEVIED AND RECEIVABLE

LONG-TERM DEBT SERVICE REQUIREMENTS

CHANGE IN LONG-TERM BOND DEBT

COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES GENERAL FUNDAND DEBT SERVICE FUND - FIVE YEARS

BOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS

PAGE

1-2

3-7

8-9

10

11-12

13

14-27

29

31-33

34

35

36-37

38

39-40

41-44

45-46

McCALL GIBSON SWEDLUND BARFOOTPLLCCertified Public Accountants

13100 Wortham Center DriveSuite 235

Houston, Texas 77065-5610(713) 462-0341

Fax (713) 462-2708E-fAail: n!ssb@mfflbpUc^gm

9600 Great Hills TrailSuite 150W

Austin, Texas 78759(512) 610-2209

wzmo.mssbvllc.com

INDEPENDENT AUDITOR'S REPORT

Board of DirectorsSequoia Improvement DistrictHarris County, Texas

We have audited the accompanying financial statements of the governmental activities and each major fund ofSequoia Improvement District (the "District"), as of and for the year ended September 30, 2018, and therelated notes to the financial statements, which collectively comprise the District's basic financial statementsas listed in the table of contents.

Management's Responsibility for the Financial Statements

IVtanagement is responsible for the preparation and fair presentation of these financial statements in accordancewith accounting principles generally accepted in the United States of America; this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation offinancial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America. Thosestandards require that we plan and perfomi the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the District's preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internalcontrol. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of significant accounting estimates made by management, aswell as evaluating the overall presentation of the financial statements.

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

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities and each major fund of the District as of September 30, 2018,and the respective changes in financial position for the year then ended in accordance with accountingprinciples generally accepted in the United States of America.

Member ofAmerican Institute of Certified Public Accountants

Texas Society of Certified Public Accountants

Board of Directors

Sequoia Improvement District

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management'sDiscussion and Analysis and the Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budgetand Actual - General Fund be presented to supplement the basic financial statements. Such information,although not a part of the basic financial statements, is required by the Governmental Accounting StandardsBoard, who considers it to be an essential part of financial reporting for placing the basic financial statementsin an appropriate operational, economic, or historical context. We have applied certain limited procedures tothe required supplementary information in accordance with auditing standards generally accepted in the UnitedStates of America, which consisted of inquiries of management about the methods of preparing the informationand comparing the information for consistency with management's responses to our inquiries, the basicfinancial statements, and other knowledge we obtained during our audit of the basic financial statements. Wedo not express an opinion or provide any assurance on the information because the Imiited procedures do notprovide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectivelycomprise the District's basic financial statements. The supplementary infonnation required by the TexasCommission on Environmental Quality as published in the Water District Financial Management Guide ispresented for purposes of additional analysis and is not a required part of the basic financial statements. Suchinformation is the responsibility of management and was derived from and related directly to the underlyingaccounting and other records used to prepare the basic financial statements. The supplementary information,excluding that portion marked "Unaudited" on which we express no opinion or provide any assurance, hasbeen subjected to the auditing procedures applied m the audit of the basic financial statements and certainadditional procedures, including comparing and reconciling such information directly to the underlyingaccounting and other records used to prepare the basic financial statements or to the basic financial statementsthemselves, and other additional procedures in accordance with auditing standards generally accepted in theUnited States of America. In our opinion, the information is fairly stated, in all material respects, in relation tothe basic financial statements as a whole.

m'ws^j^u&^-m-McCall Gibson Swedlund Barfoot PLLCCertified Public AccountantsHouston, Texas

December 10, 2018

-2-

SEQUOIA IMPROVEMENT DISTRICTMANAGEMENT'S DISCUSSION AND ANALYSISFOR THE YEAR ENDED SEPTEMBER 30,2018

Management's discussion and analysis of Sequoia Improvement District's (the "District")financial performance provides an overview of the District's financial activities for the fiscalyear ended September 30, 2018. Please read it in conjunction with the District's financialstatements.

USING THIS ANNUAL REPORT

This annual report consists of a series of financial statements. The basic financial statementsinclude: (1) combined fund financial statements and govemment-wide financial statements and(2) notes to the financial statements. The combined fund financial statements and govemment-wide financial statements combine both: (1) the Statement of Net Position and GovernmentalFunds Balance Sheet and (2) the Statement of Activities and Governmental Funds Statement ofRevenues, Expenditures and Changes in Fund Balances. This report also includes required andother supplementary information in addition to the basic financial statements.

GOVERNMENT-WIDE FINANCIAL STATEMENTS

The District's annual report includes two financial statements combining the govemment-widefinancial statements and the fund financial statements. The govemment-wide financialstatements provide both long-term and short-term information about the District's overall status.Financial reporting at this level uses a perspective similar to that found in the private sector withits basis in full accrual accounting and elimination or reclassification of internal activities.

The Statement of Net Position includes all the District's assets, liabilities, and, if applicable,deferred inflows and outflows of resources, with the difference reported as net position. Overtime, increases or decreases in net position may serve as a useful indicator of whether thefinancial position of the District as a whole is improving or deteriorating. Evaluation of theoverall health of the District would extend to other non-financial factors.

The Statement of Activities reports how the District's net position changed during the currentfiscal year. All current year revenues and expenses are included regardless of when cash isreceived or paid.

FUND FENANCIAL STATEMENTS

The combined statements also include fund financial statements. A fund is a grouping of relatedaccounts that is used to maintain control over resources that have been segregated for specificactivities or objectives. The District has three governmental fund types. The General Fundaccounts for resources not accounted for in another fund, customer service revenues, operatingcosts, and general expenditures. The Debt Service Fund accounts for ad valorem taxes andfinancial resources restricted, committed or assigned for servicing bond debt and the cost ofassessing and collecting taxes. The Capital Projects Fund accounts for financial resourcesrestricted, committed or assigned for acquisition or construction of facilities and related costs.

-3-


FUND FINANCIAL STATEMENTS (Continued)

Governmental funds are reported in each of the financial statements. The focus in the fundfinancial statements provides a distinctive view of the District's governmental funds. Thesestatements report short-term fiscal accountability focusing on the use of spendable resources andbalances of spendable resources available at the end of the year. They are useful in evaluatingannual financing requirements of the District and the committnent of spendable resources for thenear-temi.

Since the govemment-wide focus includes the long-term view, comparisons between these twoperspectives may provide insight into the long-temi impact of short-temi financing decisions.The adjustments columns, the Reconciliation of the Governmental Funds Balance Sheet to theStatement of Net Position and the Reconciliation of the Governmental Funds Statement ofRevenues, Expenditures and Changes in Fund Balances to the Statement of Activities explain thedifferences between the two presentations and assist in understanding the differences betweenthese two perspectives.

NOTES TO THE FINANCIAL STATEMENTS

The accompanying notes to the financial statements provide information essential to a fullunderstanding of the government-wide and fund financial statements.

OTHER INFORMATION

In addition to the financial statements and accompanying notes, this report also presents certainrequired supplementary information ("RSI"). The budgetary comparison schedule is included asRSI for the General Fund.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Net position may serve over time as a useful indicator of the District's financial position. In thecase of the District, assets exceeded liabilities by $2,345,690 as of September 30,2018.

A portion of the District's net position reflects its net investment in capital assets (e.g. water andwastewater facilities, less any debt used to acquire those assets that is still outstanding). TheDistrict uses these assets to provide water and wastewater services.

The following is a comparative analysis ofgovemment-wide changes in net position:

-4-


GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

Summary of Changes in the Statement of Net PositionChangePositive

2018 2017 . (Negative)Current and Other AssetsCapital Assets (Net of Accumulated

Depreciation)

Total Assets

Long -Term LiabilitiesOther Liabilities

Total Liabilities

Net Position:Net Investment in Capital AssetsRestrictedUnrestricted

Total Net Position

$ 2,570,062 $ 2,530,312 $

1,136,639 1,082,608

39,750

54,031

$ 3,706,701 $ 3,612,920 $ 93,781$ 1,185,000

176,0111,250,000

146,259$ 65,000

(29,752)

$ 1,361,011 $ 1,396,259 $ 35,248

$ 1,772,39914,127

559,164

$ 1,712,96826,752

476,941

$ 59,431(12,625)82,223

$ 2,345,690 $ 2,216,661 $ 129,029

The following table provides a summary of the District's operations for the years endedSeptember 30, 2018, and September 30, 2017. The District's net position increased by $129,029,accounting for a 5.8% increase in net position.

Summary of Changes in the Statement of ActivitiesChangePositive

2018 2017 (Negative)Revenues:

Property TaxesCharges for ServicesOther Revenues

Total Revenues

Expenses for Services

Change in Net Position

Net Position, Beginning of Year

Net Position, End of Year

$ 307,777332,66732,017

$ 313,610323,99111,109

$ (5,833)8,676

20,908$ 672,461

543.432

$ 648,710

538.030

$ 23,751

(5,402)

$ 129,0292,216,661

$ 2,345,690

$

$

110,680

2,105,981

$ 18,349

110,680

2,216,661 $ 129,029

-5-


FINANCIAL ANALYSIS OF THE DISTRICT'S GOVERNMENTAL FUNDS

The District's combined fund balances as of September 30, 2018, were $2,422,681, an increaseof $4,349 from the prior year.

The General Fund fund balance increased by $79,880, primarily due to tax revenues and servicerevenues exceeding operating costs.

The Debt Service Fund fund balance decreased by $15,931, primarily due to the stmchire of theDistrict's outstanding debt.

The Capital Projects Fund fund balance decreased by $59,600. A portion of the bond proceedsremains unspent at year-end.

GENERAL FUND BUDGETARY HIGHLIGHTS

The Board of Directors did not amend the budget during the current fiscal year. Actual revenueswere $1,222 more than budgeted revenues. Actual expenditures were $44,193 less thanbudgeted expenditures primarily due to less than anticipated professional fees, contractedservices and election costs, offset by higher than anticipated purchased wastewater costs.

CAPITAL ASSETS

The District's capital assets as of September 30, 2018, amount to $1,136,639 (net of accumulateddepreciation). These capital assets include land, streetlight and park improvements, generators,wells and booster pumps as well as the water and wastewater systems.

Capital Assets At Year-End, Net of Accumulated Depreciation

2018 2017

ChangePositive

(Negative)

Capital Assets Not Being Depreciated:Land and Land ImprovementsConstruction in Progress

Capital Assets, Net of AccumulatedDepreciation:Water and Wastewater SystemGenerators, Wells and Booster Pumps

Total Net Capital Assets

$ 37,05798,626

971,93529,021

$ 37,057 $18,626 80,000

995,485 (23,550)31,440 (2,419)

$ 1,136,639 $ 1,082,608 $ 54,031

Additional information on the District's capital assets can be found in Note 6 of this report.

-6-

SEQUOIA IMPROVEMENT DISTRICTMANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED SEPTEMBER 30,2018

LONG-TERM DEBT ACTIVITY

As of September 30, 2018, the District had bonds payable of $1,250,000. The changes in thedebt position of the District during the fiscal year ended September 30, 2018, are summarized asfollows:

Bond Debt Payable, October 1, 2017

Less: Bond Principal Paid

Bond Debt Payable, September 30, 2018

$ 1,315,000

65,000

$ 1,250,000

The District does not carry an underlying rating. The Series 2016 Bonds are not rated.

CONTACTING THE DISTRICT'S MANAGEMENT

This financial report is designed to provide a general overview of the District's finances.Questions concerning any of the information provided in this report or requests for additionalinformation should be addressed to Sequoia Improvement District, c/o Smith Murdaugh Little &Bonham, LLP, 2727 Alien Parkway, Suite 1100, Houston, TX 77019.

-7-

SEQUOIA IMPROVEMENT DISTRICTSTATEMENT OF NET POSITION AND

GOVERNMENTAL FUNDS BALANCE SHEETSEPTEMBER 30, 2018

General FundASSETS

Cash

Investments

Cash with Fiscal AgentReceivables:

Property TaxesPenalty and Interest on Delinquent TaxesService Accounts

Due from Other FundsLand

Construction in ProgressCapital Assets CNet of Accumulated

Depreciation)

TOTAL ASSETSLIABILITIES

Accounts PayableAccrued Interest PayableDue to Other Funds

Due to TaxpayersSecurity DepositsLong-Term Liabilities:

Bonds Payable, Due Within One YearBonds Payable, Due After One Year

TOTAL LIABILITIESDEFERRED INFLOWS OF RESOURCES

Property TaxesFUND BALANCES

Restricted for Authorized ConstructionRestricted for Debt Service

Unassigned

TOTAL FUND BALANCESTOTAL LIABILITIES, DEFERRED mFLOWS

OF RESOURCES AND FUND BALANCESNET POSITION

Net Investment in Capital AssetsRestricted for Debt ServiceUnrestricted

TOTAL NET POSITION

$

$

DebtService Fund

$ 558,719 $

25,609

33,18745,343

$

$

42,580

6,723

4,936

$ 662,858 $ 54,239

58,804 $

44,890

45,343594

103,694 $ 45,937

25,609 $ 4,936

$3,366

533,555$ 533,555 $ 3,366

$ 662,858 $ 54,239

The accompanying notes to the financialstatements are an integral part of this report.

-8-

CapitalProjects Fund

S 91,885,751

$ 1,885,760

$

$

$

-0-

-0-

$

$

$

$

$

$ 1,885,760 $

Total

601,3081,885,751

6,723

30,545

33,18745,343

2,602,857

58,804

45,343594

44,890

149,631

30,545

1,885,7603,366

533,555

Adjustments

$

$_

$

12,548

(45,343)37,05798,626

1,000,956

6,723(45,343)

65,0001,185,000

$ 1,211,380

$ (30,545)

$ (1,885,760)(3,366)

(533,555)

Statement ofNet Position

$

$

$

601,3081,885,751

6,723

30,54512,54833,187

37,05798,626

1,000,956

1,103,844 $ 3,706,701

$ 58,8046,723

59444,890

65,0001,185,000

$ 1,361,011

-0-

$ 1,885,760 $ 2,422,681 $ (2,422,681) $ -0-

$ 1,885,760 $ 2,602,857

$ 1,772,399 $ 1,772,39914,127 14,127

559,164 559,164

$ 2,345,690 $ 2,345,690


-9-

SEQUOIA IMPROVEMENT DISTRICTRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITIONSEPTEMBER 30, 2018

Total Fund Balances - Governmental Funds

Amounts reported for governmental activities in the Statement of Net Position aredifferent because:

$ 2,422,681

Capital assets used in governmental activities are not current financial resourcesand, therefore, are not reported as assets in the governmental funds. 1,136,639

Deferred inflows of resources related to property tax revenues and uncollectedpenalty and interest revenues on delinquent taxes for the 2017 and prior tax leviesbecame part of recognized revenue in the governmental activities of the District.

Certain liabilities are not due and payable in the current period and, therefore, arenot reported as liabilities in the governmental funds. These liabilities at year endconsist of:

Accrued Interest Payable $ (6,723)Bonds Payable Within One Year (65,000)Bonds Payable After One Year (1,185,000)

Total Net Position - Governmental Activities

43,093

(1,256,723)

$ 2,345,690


-10-

THIS PAGE INTENTIONALLY LEFT BLANK

SEQUOIA IMPROVEMENT DISTRICTSTATEMENT OF ACTWITIES AND GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE YEAR ENDED SEPTEMBER 30,2018

General FundREVENUES

Property TaxesWater ServiceWastewater Service

Groundwater Reduction Plan RevenuePenalty and InterestInvestment RevenuesMiscellaneous Revenues

TOTAL REVENUESEXPENDITURES/EXPENSES

Service Operations:Professional FeesContracted ServicesGroundwater Reduction Plan FeesPurchased Wastewater ServiceUtilitiesRepairs and MaintenanceDepreciationOther

Capital OutlayDebt Service:

Bond PrincipalBond InterestBond Issuance Costs

TOTAL EXPENDITURES/EXPENSES

NET CHANGE IN FUND BALANCES

CHANGE W NET POSITIONFUND BALANCES/NET POSITION -

OCTOBER 1, 2017FUND BALANCES/NET POSITION -

SEPTEMBER 30, 2018

$

$

$

$

$

224,89185,430

199,89626,7229,6762,1839,389

67,47785,04929,265

167,63533,76049,015

46,106

DebtService Fund

$ 78,303

9,87743

558,187 $ 88,223

$ 4,59414,851

6,263

65,00013,446

478,307 $

79,880 $

453,675

104,154

(15,931)

19,297

$ 533,555 $ 3,366


-11-

CapitalProjects Fund

$

$

20,402

.$

Total

303,19485,430

199,89626,72219,55322,6289,389

Adjustments

$•

20,402 $ 666,812 $

Statement ofActivities

4,583 $

1,066

5,649 $

307,77785,430

199,89626,72220,61922,6289,389

672,461

$

$

$

280,000

$

(59,600) $

72,07199,90029,265

167,63533,76049,015

52,37180,000

65,00013,446

80,002 $ 662,463

4,349

$

$_

$

25,969

(80,000)

(65,000)

$

(4,349) $

129,029

72,07199,90029,265

167,63533,76049,01525,96952,371

13,446

(119,031) $ 543,432

129,029

1,945,360 2,418,332 (201,671) 2,216,661

$_1,885,760 $ 2,422,681 $ (76,991) $ 2,345,690


- 12-

SEQUOIA IMPROVEMENT DISTRICTRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES AND CHANGES FN FUND BALANCESTO THE STATEMENT OF ACTIVITIES


Net Change in Fund Balances - Governmental Funds

Amounts reported for governmental activities in the Statement of Activities aredifferent because:

Governmental funds report tax revenues when collected. However, in the Statementof Activities, revenue is recorded in the accounting period for which the taxes arelevied.

Governmental funds report penalty and interest revenue on property taxes whencollected. However, in the Statement of Activities, revenue is recorded whenpenalties and interest are assessed.

Governmental funds do not account for depreciation. However, in the Statement ofNet Position, capital assets are depreciated and depreciation expense is recorded inthe Statement of Activities.

$ 4,349

4,583

1,066

(25,969)

Governmental funds report capital expenditures as expenditures in the periodpurchased. However, in the Statement of Net Position, capital assets are increasedby new purchases and the Statement of Activities is not affected.

uovernmentai lands report Dona principal payments as expenditures. However, inthe Statement of Net Position, bond principal payments are reported as decreases inlong-term liabilities.

Change in Net Position - Governmental Activities

80,000

65,000

$ 129,029


- 13-

NOTE 1.

SEQUOIA IMPROVEMENT DISTRICTNOTES TO THE FmANCIAL STATEMENTS

SEPTEMBER 30, 2018

CREATION OF DISTRICT

Sequoia Improvement Disb-ict, located in Harris County, Texas (the "District"), was createdSeptember 17, 1965, by Articles 8280-326, Yemen's Texas Civil Stahites, 59th Legislature of theState of Texas. The District applied to the Texas Water Commission presently known as theTexas Commission on Environmental Quality (the "Commission"), for conversion from animprovement district to a municipal utility district, and was approved effective November 15,1988. Pursuant to the provisions of Chapters 49 and 54 of the Texas Water Code, the District isempowered to purchase, operate and maintain all facilities, plants, and improvements necessaryto provide water, wastewater service, storm sewer drainage, irrigation, solid waste collection anddisposal, including recycling, and to construct and maintain parks and recreational facilities forthe residents of the District. The District is also empowered to contract for or employ its ownpeace officers with powers to make arrests and to establish, operate and maintain a firedepartment to perform all fire-fighting activities within the District. The Board of Directors heldits first meeting on October 12, 1965, and the first bonds were sold on January 10, 1966. Thereare no plans to change the name of the District.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements have been prepared in accordance with accountingprinciples generally accepted in the United States of America as promulgated by theGovernmental Accounting Standards Board ("GASB"). In addition, the accounting records ofthe District are maintained generally in accordance with the Water District FinancialManagement Guide published by the Commission.

The District is a political subdivision of the State of Texas governed by an elected board. GASBhas established the criteria for determining whether or not an entity is a primary government or acomponent unit of a primary government. The primary criteria are that it has a separately electedgoverning body, it is legally separate, and it is fiscally independent of other state and localgovernments. Under these criteria, the District is considered a primary government and is not acomponent unit of any other government. Additionally, no other entities meet the criteria forinclusion in the District's financial statement as component units.

Financial Statement Presentation

These financial statements have been prepared in accordance with GASB Codification ofGovernmental Accounting and Financial Reporting Standards Part II, Financial Reporting("GASB Codification").

-14-


SEPTEMBER 30, 2018

NOTE 2. SIGNIFICANT ACCOUNTmG POLICIES (Continued)

Financial Statement Presentation (Continued)

The GASB Codification sets forth standards for external financial reporting for all state and localgovernment entities, which include a requirement for a Statement of Net Position and aStatement of Activities. It requires the classification of net position into three components: NetInvestment in Capital Assets; Restricted; and Unrestricted. These classifications are defined asfollows:

Net Investment in Capital Assets - This component of net position consists of capitalassets, including restricted capital assets, net of accumulated depreciation and reduced bythe outstanding balances of any bonds, mortgages, notes, or other borrowings that areattributable to the acquisition, construction, or improvements of those assets.

Restricted Net Position - This component of net position consists of external constraintsplaced on the use of assets imposed by creditors (such as through debt covenants),grantors, contributors, or laws or regulation of other governments or constraints imposedby law through constitutional provisions or enabling legislation.

Unurestricted Net Position - This component of net position consists of assets that do notmeet the definition of Restricted or Net Investment in Capital Assets.

When both restt-icted and unrestricted resources are available for use, generally it is the District'spolicy to use restricted resources first.

Government-Wide Financial Statements

The Statement of Net Position and the Statement of Activities display information about theDistrict as a whole. The District's Statement of Net Position and Statement of Activities arecombined with the governmental fund financial statements. The District is viewed as a special-purpose government and has the option of combining these financial statements.

The Statement of Net Position is reported by adjusting the governmental fund types to report onthe full accmal basis, economic resource basis, which recognizes all long-term assets andreceivables as well as long-term debt and obligations. Any amounts recorded due to and duefrom other funds are eliminated in the Statement of Net Position.

-15-


SEPTEMBER 30,2018

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

Government-Wide Financial Statements (Continued)

The Statement of Activities is reported by adjusting the govermnental fund types to report onlyitems related to current year revenues and expenditures. Items such as capital outlay areallocated over their estimated useful lives as depreciation expense. Internal activities betweengovernmental funds, if any, are eliminated by adjustinent to obtain net total revenues andexpenses in the goverruiient-wide Statement of Activities.

Fund Financial Statements

As discussed above, the District's fund financial statements are combined with the government-wide statements. The fund statements include a Balance Sheet and Statement of Revenues,Expendiftires and Changes in Fund Balances.

Governmental Funds

The District has tliree governmental funds and considers each to be a major fand.

General Fund - To account for resources not required to be accounted for in another fund,customer service revenues, operating costs, general expendiftires.

Debt Service Fund - To account for ad valorem taxes and financial resources restricted,committed or assigned for servicing bond debt and the cost of assessing and collecting taxes.

Capital Projects Fund - To account for financial resources restricted, committed or assigned foracquisition or constmction of facilities and related costs.

Basis of Accounting

The District uses the modified accmal basis of accounting for governmental fund types. Themodified accmal basis of accounting recognizes revenues when both "measurable and available."Measurable means the amount can be determined. Available means collectable within thecun-ent period or soon enough thereafter to pay current liabilities. The District considers revenuereported in governmental funds to be available if they are collectable within 60 days after yearend. Also, under the modified accmal basis of accounting, expenditires are recorded when therelated fund liability is incun-ed, except for principal and interest on long-term debt, which arerecognized as expenditures when payment is due.

Property taxes considered available by the District and included in revenue include taxescollected during the year and taxes collected after year-end, which were considered available todefray the expenditxres of the current year. Defen-ed inflows of resources related to property tax

- 16-

SEQUOIA IMPROVEMENT DISTRICTNOTES TO THE FENANCIAL STATEMENTS

SEPTEMBER 30, 2018

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

Basis of Accounting (Continued)

revenues are those taxes which the District does not reasonably expect to be collected soonenough in the subsequent period to finance current expenditures.

Amounts transferred from one fund to another fund are reported as other financing sources oruses. Loans by one fund to another fund and amounts paid by one fund for another fund arereported as interfund receivables and payables in the Governmental Funds Balance Sheet if thereis intent to repay the amount and if the debtor fund has the ability to repay the advance on atimely basis. As of September 30, 2018, the Debt Service Fund owed the General Fund $43,843for maintenance tax collections and $1,500 for fiscal agent fees paid by the General Fund.

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets, are reported inthe govemment-wide Statement of Net Position. All capital assets are valued at historical cost orestimated historical cost if actual historical cost is not available. Donated assets are valued attheir fair market value on the date donated. Repairs and maintenance are recorded asexpendiftires in the governmental fund incurred and as an expense in the govermnent-wideStatement of Activities. Capital asset additions, improvements and preservation costs that extendthe life of an asset are capitalized and depreciated over the estimated useful life of the asset.Interest costs, including developer interest, engineering fees and certain other costs arecapitalized as part of the asset.

Individual capital items, including infrastructure assets are capitalized, if they have an originalcost of $5,000 or more and an estimated useful life of at least two years. Depreciation iscalculated on each class of depreciable property using no salvage value and the straight-linemethod of depreciation. Estimated useful lives are as follows:

Years

Buildings, Structures, Storage TanksDistribution Lines and Lift StationsGenerators, Wells, Booster Pumps,

Bar Screens, Blowers, ClarifiersElectrical Controls, Chemical Systems

4045

2010

Budgeting

In compliance with governmental accounting principles, the Board of Directors annually adoptsan unappropriated budget for the General Fund. The budget was not amended during the currentfiscal year.

- 17-

SEQUOIA IMPROVEMENT DISTRICTNOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2018


Pensions

The District has not established a pension plan as the Disti-ict does not have employees. TheInternal Revenue Service has detemiined that fees of office received by Directors are consideredto be wages subject to federal income tax withholding for payroll purposes only.

IVteasurement Focus

Measurement focus is a term used to describe which transactions are recognized within thevarious financial statements. In the govemnient-wide Statement of Net Position and Statementof Activities, the governmental activities are presented using the economic resourcesmeasurement focus. The accounting objectives of this measurement focus are the determinationof operating income, changes in net position, financial position, and cash flows. All assets andliabilities associated with the activities are reported. Fund equity is classified as net position.

Governmental fund types are accounted for on a spending or financial flow measurement focus.Accordingly, only current assets and current liabilities are included on the Balance Sheet, and thereported fund balances provide an indication of available spendable or appropriable resources.Operating statements of governmental fund types report increases and decreases in availablespendable resources. Fund balances in governmental funds are classified using the followinghierarchy:

Nonspendable: amounts that cannot be spent either because they are in nonspendable form orbecause they are legally or contractually required to be maintained intact. The District does nothave any nonspendable fund balances.

Restricted: amounts that can be spent only for specific purposes because of constitutionalprovisions, or enabling legislation, or because of constraints that are imposed externally.

Committed: amounts that can be spent only for purposes determined by a formal action of theBoard of Directors. The Board is the highest level of decision-making authority for the District.This action must be made no later than the end of the fiscal year. Commitments may beestablished, modified, or rescinded only through ordinances or resolutions approved by theBoard. The Disti-ict does not have any committed fund balances.

-18-


SEPTEMBER 30, 2018


Measurement Focus (Continued)

Assigned: amounts that do not meet the criteria to be classified as restricted or committed, butthat are intended to be used for specific purposes. The District has not adopted a formal policyregarding the assignment of fund balances and has no assigned fund balances.

Unassigned: all other spendable amounts in the General Fund.

When expenditures are incurred for which restricted, committed, assigned or unassigned fundbalances are available, the District considers amounts to have been spent first out of restrictedfunds, then committed funds, then assigned funds, and finally unassigned funds.

Accounting Estimates

The preparation of financial statements in confonnity with accounting principles generallyaccepted in the United States of America requires management to make estimates andassumptions that affect the reported amount of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statements and the reported amounts of revenuesand expendiftires during the reporting period. Actual results could differ from those estimates.

NOTE 3. LONG-TERM DEBT

The following is a summary of tt-ansactions regarding the changes in bonds payable for the yearended September 3 0,2018:

October 1, . September 30,2017 Additions Retirements 2018

Bonds Payable $ 1,315,000 $ -0- $ 65,000 $ 1,250,000

Amount Due Within One YearAmount Due After One Year

Bonds Payable, Net

$ 65,0001,185,000

$ 1,250,000

- 19-


SEPTEMBER 30, 2018

NOTE 3. LONG-TERM DEBT (Continued)

The District's bonds payable at September 30, 2018, consist of the following:

Amount Outstanding - September 30,2018

Interest Rates

Maturity Dates - SeriallyB eginning/Ending

Interest Payment Dates

Callable Dates

Series 2016

$ 1,250,000

0.09%-1.75%

April 1,2019/2035

October I/April 1

October 1, 2026*;

* Callable in inverse order of maturity at a price equal to the principal amount thereof plusaccrued interest to the date fixed for redemption.

As of September 30, 2018, the debt service requirements on the bonds outstanding were asfollows:

Fiscal Year Principal Interest Total

20192020202120222023

2024-20282029-20332034-2035

$ 65,00065,00070,00070,00070,000

365,000385,000160,000

$ 13,44513,44513,38713,20512,89755,54732,0164,160

$ 78,44578,44583,38783,20582,897

420,547417,016164,160

$ 1,250,000 $ 158,102 $ 1,408,102

The District has $100,000 authorized but unissued tax and revenue bond authorization. A totalof $850,000 tax and revenue bond authorization was approved by the voters November 16, 1965.A total of $8,000,000 tax bond authorization was approved by the voters May 10, 2014, of whichis $6,620,000 is unissued as of September 30, 2018.

-20-


SEPTEMBER 30, 2018

NOTE 3. LONG-TERM DEBT (Continued)

The bonds are payable from the proceeds of an ad valorem tax levied upon all property subject totaxation within the District without limitation as to the rate or amount.

During the year ended September 30, 2018, the District levied an ad valorem debt service taxrate of $0.12 per $100 of assessed valuation which resulted in a tax levy of $83,305 on theadjusted taxable valuation of $69,421,512 for the 2017 tax year. The bond order requires that theDistrict levy and collect an ad valorem debt service tax sufficient to pay interest and principal onbonds when due and the cost of assessing and collecting taxes. See Note 7 for the maintenancetax levy.

The Disti-ict's tax calendar is as follows:

Levy Date - September 1, as soon thereafter as practicable.

Lien Date - January 1 .

Due Date - Not later than January 31.

Delinquent Date - February 1, at which time the taxpayer is liable for penalty and interest.

NOTE 4. SIGNIFICANT BOND ORDER AND LEGAL REQUIREMENTS

The bond order states that the District is required by the Securities and Exchange Commission toprovide continuing disclosure of certain general financial information and operating data withrespect to the Distt-ict to certain information repositories. This information, along with theaudited annual financial statements, is to be provided within six months after the end of eachfiscal year and shall continue to be provided through the life of the bonds.

The bond order states that the Disfa-ict should take all necessary steps to comply with therequirement that rebatable arbitrage earnings, if any, on the investment of the gross proceeds ofthe bonds, within the meaning of Section 148(f) of the internal Revenue Code, be rebated to thefederal government.

-21-

NOTE 5.

Deposits


SEPTEMBER 30, 2018

DEPOSITS AND INVESTMENTS

Custodial credit risk is the risk that, in the event of the failure of a depository financialinstitution, a government will not be able to recover deposits or will not be able to recovercollateral securities that are in the possession of an outside party. The District's deposit policyfor custodial credit risk requires compliance with the provisions of Texas statutes.

Texas statutes require that any cash balance in any fund shall, to the extent not insured by theFederal Deposit Insurance Corporation or its successor, be continuously secured by a validpledge to the District of securities eligible under the laws of Texas to secure the funds of theDistrict, having an aggregate market value, including accrued interest, at all times equal to theuninsured cash balance in the fund to which such securities are pledged. At fiscal year end, thecarrying amount of the District's deposits was $601,308 and the banlc balance was $603,233. Ofthe bank balance, $390,082 was covered by federal depository insurance and the balance wascollateralized with securities held in a third-party depository in the Disfa-ict's name.

The carrying values of the deposits are included in the Governmental Funds Balance Sheet andthe Statement of Net Position at September 30, 2018, as listed below:

Cash

GENERAL FUND

DEBT SERVICE FUND

CAPITAL PROJECTS FUND

TOTAL DEPOSITS

$ 558,719

42,580

9

$ 601,308

Investments

Under Texas law, the District is required to invest its funds under written investment policies thatprimarily emphasize safety of principal and liquidity and that address investment diversification,yield, maturity, and the quality and capability of investraent management, and all District fundsmust be invested in accordance with the following investment objectives: understanding the^suitability of the investment to the District's financial requirements, first; preservation and safetyof principal, second; liquidity, third; marketability of the investments if the need arises toliquidate the investment before maturity, fourth; diversification of the investment portfolio, fifth;and yield, sixth. The District's investments must be made "with judgment and care, underprevailing circumstances, that a person of prudence, discretion, and intelligence would exercisein the management of the person's own affairs, not for speculation, but for investment,considering the probable safety of capital and the probable income to be derived." No personmay invest District funds without express written authority from the Board of Directors.

-22-


SEPTEMBER 30, 2018

NOTES. DEPOSITS AND INVESTMENTS (Continued)

Investments (Continued)

Texas staftites include specifications for and limitations applicable to the District and itsauthority to purchase investments as defined in the Public Funds Investment Act. The Districthas adopted a written investment policy to establish the guidelines by which it may invest. Thispolicy is reviewed annually. The Disft-ict's investment policy may be more resta-ictive than thePublic Funds Investment Act.

The District invests in Fidelity Investonents Money Market Government Portfolio-Class III(FCGXX). The adviser normally invests at least 99.5% of the fund's total assets in cash, U.S.Government securities and/or repurchase agreements that are collateralized fully. Certain issuersof U.S. Government securities are sponsored or chartered by Congress but their securities areneither issued nor guaranteed by the U.S. Treasury. The Adviser invests in compliance withindustry-standard regulatory requirements for money market funds for the quality, maturity,liquidity and diversification of investments. The adviser stresses maintaining a stable $1.00share price, liquidity, and income. In addition, the Adviser normally invests at least 80% of thefund's assets in U.S. Government securities and repurchase agreements for those securities.

As of September 30, 2018, the Distt-ict had the following investments and maturities:

Fund and

Investment Type Fair Value

IVIaturities inLess Than

1 Year

CAPITAL PROJECTS FUNDMoney Market Mutual Fund $1,885,751 $1,885,751

Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill itsobligations. At September 30, 2018, the District's investment in FCGXX was rated AAAm byStandard and Poor's.

Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of aninvestment. The District manages interest rate risk by investing in instruments with maturities ofone year or less. The District considers the invesbnent in FCGXX to have a maturity of less thanone year due to the fact the share positions can be redeemed each day at the discretion of theDisfa-ict.

All cash and investments of the Debt Service Fund are restricted for the payment of debt serviceand the cost of assessing and collecting taxes. All cash and investanents of the Capital ProjectsFund are restricted for the purchase of capital assets.

-23-


SEPTEMBER 30, 2018

NOTE 6. CAPITAL ASSETS

Capital asset activity for the year ended September 30, 2018:

October 1,2017

37,05718,626

Capital Assets Not Being DepreciatedLand and Land Imorovements $Construction in Progress

Total Capital Assets Not BeingDepreciated $

Capital Assets Subjectto DepreciationWater System $ 269,613Wastewater System 1,390,965Streetlights and Park Improvements 54,778Generators, Wells and Booster Pumps 48,380

Total Capital AssetsSubject to Depreciation

Accumulated DepreciationWater System $ 269,613Wastewater System 395,480Streetlights and Park Improvements 54,778Generators, Wells and Booster Pumps 16,940

Total Accumulated Depreciation ^ 736,811Total Depreciable Capital Assets, Net ofAccumulated Depreciation $ 1,026,925

Total Capital Assets, Net of AccumulatedDepreciation $ 1,082,608

Increases Decreases

$ $80,000

9_

55,683 $ 80,000 $ -0-

$ $ 8,627

September 30,2018

$ 37,05798,626

$ 135,683

$ 260,9861,390,965

54,77848,380

$ 1,763,736 $ - 0 - $ 8,627 $ 1,755,109

$ $23,550

2,419

8,627

$ 25,969 $ 8,627

$ (25,969) $ -0-

$ 54,031 $ -0-

$ 260,986419,03054,77819,359

$ 754,153

$ 1,000,956

$ 1,136,639

NOTE 7. MAINTENANCE TAX

On January 19, 1985, the voters of the District approved the levy and collection of a maintenancetax not to exceed $0.25 per $100 of assessed valuation of taxable property within the District.On May 10, 2014, the voters of the District approved the levy and collection of an unlimitedmaintenance tax. This maintenance tax is to be used by the General Fund to pay expenditures ofoperating the District's water works and sanitary sewer system. During the year endedSeptember 30, 2018, the District levied an ad valorem maintenance tax rate of $0.33 per $100 ofassessed valuation which resulted in a tax levy of $229,090 on the adjusted taxable valuation of$69,421,512 for the 2017 tax year.

-24-

NOTE 8.


SEPTEMBER 30, 2018

RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to and destructionof assets; en-ors and omissions; and natural disasters for which the District carries commercialinsurance. There have been no significant reductions in coverage from the prior year andsettlements have not exceeded coverage in the past three years.

NOTE 9. EMERGENCY WATER SUPPLY AGREEMENT

On February 25, 1985, the District entered into a contract with Harris County Municipal UtilityDistrict No. 266 (District No. 266) providing for the supply of emergency water between theDistact and District No. 266. The City of Houston annexed District No. 266 in April 1995, andassumed the rights and responsibilities of District No. 266 under the temis of the originalagreement. Under the terms of the agreement, District No. 266 provided for the acquisition,construction, operation and maintenance of the interconnect facilities to the point of connection.Each District supplies water to the other on an emergency basis. The agreement establishes therate to be charged at $100 each day that water is supplied. The term of the agreement is 40years.

NOTE 10. CITY OF HOUSTON WATER SUPPLY AND GROUNDWATERREDUCTION PLAN WHOLESALE AGREEMENT

The District entered into a City of Houston Water Supply and Groundwater Reduction PlanAgreement for Regulatory Area 3 of the Harris-Galveston Subsidence District (the"Agreement"). The Agreement is with the City of Houston, Texas (the "City"). Under the termsof the Agreement the City is responsible for the design, construction and operation of a project tomeet compliance criteria of the Harris-Galveston Subsidence District (the "Subsidence District").Deadlines are as follows: January 2005 for commencement of construction of the initial phase;January 2010 deadline to reduce groundwater withdrawals such that the City and participants,including the District, have a group withdrawal from groundwater of no more than 70 percent ofoverall demand, and subsequent deadlines in 2020 and 2030 to further reduce and maintaingroundwater withdrawals.

The City will decide when the District must connect to the project and the amount of water to betaken, both a minimum and maximum. However, the City will not require the District to takewater from the project in excess of the then current Subsidence District regulatory requirements.The City can specify where the District will connect to the system.

The City will develop a Ground Reduction Plan (the "GRP") for itself and the District. Thedescription of the project will be included in the GRP. The GRP will be based upon the projectand shall include a plan for co-permitting all groundwater wells owned or controlled by the otherparticipants in accordance with requirements of the Subsidence Disto-ict.

-25-

NOTE 10.


SEPTEMBER 30, 2018

CITY OF HOUSTON WATER SUPPLY AND GROUNDWATERREDUCTION PLAN WHOLESALE AGREEMENT (continued)

Charges to the District commenced on (1) the date the District renewed its Subsidence Districtwater well permit in 2003; (2) the inception date for the initial Subsidence District water wellpermit issued after 2003 for which the District was subject to disincentive fees; or (3) the date onwhich delivery of treated water to the District for the project commenced if (1) or (2) have notoccurred. The payment amount is calculated as follows:

Until the date on which the District connects or is required by the City to connectto the project:

o RxPxQ whereR is the GRP Rate per thousands of gallonsQ is a quantity of groundwater pumped by the District in thousandsof gallonsP is 30 percent through 2016, 70 percent J&om 2017 through 2026,and thereafter is 80 percent, except such percentage may beincreased or reduced by the City

After the date on which the District connects to the project or is required tocomiect to the project by the City, the District will pay the amount determined bythe formula:

o R x C where

R is the GRP rate per thousand gallons. This rate is based on theordinance rate as published by the CityC is the Contract Quantity or such greater quantity of water takenby the District in thousands of gallons

The term of the agreement is until noon on December 31, 2040, unless sooner terminatedpursuant to the terms of the Agreement. As of September 30, 2018, the District has not beenrequired to connect to the project. During the current fiscal year, the District recordedexpenditures in the amount of $29,265 in relation to this agreement.

NOTE 11. SANITARY SEWER SERVICE AGREEMENT

On June 7, 2012, the District entered into a Sanitary Sewer Service Agreement with the City ofHouston (City). The agreement shall be in force and effect for an initial term of 10 years.Thereafter, the agreement shall be automatically renewed for no more than three additional termsof up to 10 years each, if the City determines that the District has consistently met its obligationsunder this agreement and the District is able to meet the standards of this agreement in the future.The District is responsible for the construction and maintenance of all facilities to the point ofconnection. At the time of the agreement, the fee was $4.823 per 1,000 gallons. As ofSeptember 30, 2018, the fee is $5.878 per 1,000 gallons. During the cunrent fiscal year, theDistrict recorded expenditures in the amount of $167,635 in relation to this agreement.

-26-


SEPTEMBER 30, 2018

NOTE 12. BOND SALE AND LOAN FORGWENESS

On January 19, 2016, the District was approved for a $2,057,442 loan from the Texas WaterDevelopment Board (TWDB). Proceeds of the loan will be used for design and constructioncosts for rehabilitation of the District's wastewater collection system to reduce infiltration andultimately to reduce sewer treatment costs from the City of Houston, as well as certain costs ofissuance. The District qualified for loan forgiveness of $677,442 from TWDB.

On May 26, 2016, the Disti-ict issued its Series 2016 bonds in the amount of $1,380,000, whichwere purchased by the Texas Water Development Board (TWDB) from the Clean Water StateRevolving Fund. Additionally, the Distt-ict received $677,442 under a loan forgivenessagreement. All funds were placed in escrow until an outlay request is approved by TWDB.Funds must be used from loan proceeds first, then from loan forgiveness proceeds. Unusedproceeds after completion of the project are to be used to 1) redeem, in inverse annual order, theobligations owned by TWDB, 2) deposit into a debt service account for the payment of interestor principal on obligations owned by TWDB, or 3) eligible project costs as authorized by TWDBExecutive Administi-ator. On June 19, 2018, the TWDB authorized release of $80,000 loanforgiveness funds from escrow. As of September 30, 2018, $1,262,654 of bond proceeds and$597,442 of loan forgiveness proceeds remained in escrow.

-27-

/


REQUIRED SUPPLEMENTARY INFORMATION

SEPTEMBER 30, 2018

SEQUOIA IMPROVEMENT DISTRICTSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUNDFOR THE YEAR ENDED SEPTEMBER 30,2018

Original andFinal Budget

REVENUESProperty TaxesWater ServiceWastewater ServiceGroundwater Reduction Plan RevenuePenalty and InterestInvestment RevenuesIVIiscellaneous Revenues

TOTAL REVENUES

EXPENDITURESServices Operations:

Professional FeesContracted ServicesGroundwater Reduction Plan FeesPurchased Wastewater ServiceUtilitiesRepairs and MaintenanceOther

TOTAL EXPENDITURES

NET CHANGE IN FUND BALANCE

FUND BALANCE - OCTOBER 1, 2017

FUND BALANCE - SEPTEMBER 30, 2018

$

$

$

$

233,00090,000

196,00026,000

1,00010,965

96,65096,40029,000

155,00035,00049,00061,450

522,500

34,465

453,675

Actual

$

$

$

$

224,89185,430

199,89626,7229,6762,1839,389

67,47785,04929,265

167,63533,76049,01546,106

478,307

79,880

453,675

VariancePositive

(Negative)

$ (8,109)(4,570)3,896

7229,6761,183

(1,576)

$ 556,965 $ 558,187 $ 1,222

$ 29,17311,351(265)

(12,635)1,240(15)

15,344

$

$

44,193

45,415

$ 488,140 $ 533,555 $ 45,415

See accompanying independent auditor's report.

-29-


SUPPLEMENTARY INFORMATION REQUIRED BY THE

WATER DISTRICT FINANCIAL MANAGEMENT GUIDE

SEPTEMBER 30, 2018

SEQUIOA IMPROVEMENT DISTRICTSERVICES AND RATES


1. SERVICES PROVIDED BY THE DISTRICT DURING THE FISCAL YEAR:

xx

x

Retail WaterRetail WastewaterParks/RecreationSolid Waste/Garbage

Wholesale WaterWholesale WastewaterFire ProtectionFlood Control

DrainageIrrigationSecurityRoads

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

Other (specify):

2. RETAIL SERVICE PROVIDERS

a. RETAIL RATES FOR A 1" METER (OR EQUWALENT):

Based on the rate order effective May 12, 2015.

WATER:

M^inimum

Charge

$ 15.30

$ 46.00

MinimumUsage

7,000

FlatRateY/N

N

YWASTEWATER:

SURCHARGE:Groundwater

Reduction Fees $ 1.00 per 1,000 gallons of water used

District employs winter averaging for wastewater usage?

Rate per 1,000Gallons over

M^inimum Use

$1.00$2.00$3.00

Usage Levels

7,001 to 15,00015,001 to 20,00020,001 and over

xYes No

Total charges per 10,000 gallons usage: Water: $18.30 Wastewater: $46.00 Surcharge: $10.00 Total: $74.30

See accompanying independent auditor's report

-31-



2. RETAIL SERVICE PROVIDERS (Continued)

b. WATER AND WASTEWATER RETAIL CONNECTIONS: (Unaudited)

Meter Size

Unmetered

^3/4"1"r/2"2"3"4"6"8"10"

Total Water Connections

Total Wastewater Connections

TotalConnections

372_2

J_1

1

377

376

ActiveConnections

330_2_i1

1

335

334

ESFCFactor

x 1.0

x 1.0

x 2.5

x 5.0

x 8.0

x 15.0

x 25.0

x 50.0

x 80.0

x 115.0

x 1.0

ActiveESFCs

330

5

5

_^

_25

373

334

3. TOTAL WATER CONSUMPTION DURING THE FISCAL YEAR ROUNDEDTO THE NEAREST THOUSAND: (Unaudited)

Gallons pumped into system: 31,871,000

Gallons billed to customers: 26,033,000

Gallons used by leaks and flushing: 3,525,000

Water Accountability Ratio: 92.7%(Gallons billed to customers andused/Gallons pumped into system)


-32-



4.

5.

STANDBY FEES (authorized only under TWC Section 49.231):

Does the District have Debt Service standby fees? Yes No X

Does the District have Operation and Maintenance standby fees? Yes No X

LOCATION OF DISTRICT:

Is the Distt-ict located entirely within one county?

Yes X No

County or Counties in which District is located:

Harris County, Texas

Is the District located within a city?

Entirely _ Partly Not at all x

Is the District located within a city's extratenritorial jurisdiction (ETJ)?

Entirely X Partly _ Not at all

ETJ's in which District is located:

City of Houston, Texas.

Are Board IVtembers appointed by an office outside the District?

Yes No X


-33-

SEQUOIA IMPROVEMENT DISTRICTGENERAL FUND EXPENDITURES


PROFESSIONAL FEES:AuditingEngineeringLegal

TOTAL PROFESSIONAL FEES

PURCHASED SERVICES FOR RESALE:Purchased Wastewater Service

CONTRACTED SERVICES:BookkeepingOperations and Billing

TOTAL CONTRACTED SERVICES

UTILITIES - Electricity and telephone

REPAIRS AND MAINTENANCE

ADMINISTRATFVE EXPENDITURES:Director FeesInsurance

Office Supplies and PostagePayroll TaxesOther

TOTAL ADMINISTRATIVE EXPENDITURES

SOLID WASTE DISPOSAL

SECURITY

OTHER EXPENDITURES:Chemicals

Laboratory FeesPermit FeesGroundwater Reduction Plan FeesRegulatory Assessment

TOTAL OTHER EXPENDITURES

TOTAL EXPENDITURES

$

$

$

$

$

$

$

$

$

$

$

$

$

$

10,5007,277

49,70067,477

167,635

9,16323,69032,853

33,760

49,015

12,9006,467

16,382276

1,67937,704

50,858

1,338

3,8852,119

98929,2651,409

37,667

478,307


-34-

SEQUOIA IMPROVEMENT DISTRICTINVESTMENTS

SEPTEMBER 30, 2018

FundsIdentification or

Certificate Number

CAPITAL PROJECTS FUNDMoney Market Mutual Fund XXXX6527Money Market Mutual Fund XXXX6528

TOTAL CAPITAL PROJECTS FUND

Interest

Rate

varies

varies

MaturityDate

dailydaily

Balance atEnd of Year

$ 1,280,011605,740

$ 1,885,751

AccmedInterest

Receivable at

End of Year

$

$ -0-


-35-

SEQUOIA IMPROVEMENT DISTRICTTAXES LEVIED AND RECEIVABLE


Maintenance Taxes Debt Service Taxes

TAXES RECEIVABLE -OCTOBER 1,2017Adjustments to Beginning

Balance

Original 2017 Tax LevyAdjustment to 2017 Tax Levy

TOTAL TO BEACCOUNTED FOR

TAX COLLECTIONS:Prior YearsCurrent Year

TAXES RECEIVABLE -SEPTEMBER 3 0,2018

TAXES RECEIVABLE BYYEAR:201720162015201420132012 and prior

TOTAL

$ 23,266

(1,856) $

$ 226,5242,566

21,410

229,090

$ 3,449221,442

$ 250,500

224,891

$ 25,609

$ 7,6485,4704,1992,0431,2684,981

$ 25,609

$

$

$

2,696

(2J62) $

82,372933

(66)

83,305

$

(2,221)80,524

83,239

78,303

$ 4,936

$ 2,7812,155

$ 4,936


-36-

SEQUOIA IMPROVEMENT DISTRICTTAXES LEVIED AND RECEIVABLE


PROPERTY VALUATIONS:Land

ImprovementsPersonal PropertyExemptions

TOTAL PROPERTYVALUATIONS

TAX RATES PER $100VALUATION:Maintenance

Debt Service

TOTAL TAX RATES PER$100 VALUATION

ADJUSTED TAX LEVY*

PERCENTAGE OF TAXESCOLLECTED TO TAXESLEVIED

2017 2016 2015 2014

$ 16,868,382 $ 16,150,860 $ 15,613,655 $ 15,352,42251,162,103 50,743,151 45,090,654 35,404,75911,447,116 11,170,523 7,108,924 6,921,369

(10,056,089) (9,871,971) (9,188,180) (8,437,115)

$ 69,421,512 $ 68,192,563 $ 58,625,053 $ 49,241,435

$ 0.330.12

i.

$

$

0.45 1.

312,395 $

96.66 %

0.330.13

$

0.46 $_

313,684 $

97.57 %

0.47 $

_98,48 %

0.35

0.47 1. 0.35

275,536 $ 172,515

98.82 %

* Based upon adjusted tax at the time of the audit for the fiscal year in which the tax waslevied.

** Maintenance Tax - Maximum tax rate of $0.25 per $100 of assessed valuation was approvedby voters on January 19, 1985. Unlimited maintenance tax rate approved on May 10, 2014.


-37-

SEQUOIA IMPROVEMENT DISTRICTLONG-TERM DEBT SERVICE REQUIREMENTS

SEPTEMBER 30, 2018

SERIES-20 16

Due During FiscalYears EndingSeptember 30

20192020202120222023202420252026202720282029203020312032203320342035

PrincipalDue

April 1

$ 65,00065,00070,00070,00070,00070,00070,00075,00075,00075,00075,00075,00075,00080,00080,00080,00080,000

Interest Due

October I/

April 1 Total

$ 13,44513,44513,38713,20512,89712,45611,89611,23110,4289,5368,5767,5566,4765,3364,0722,7601,400

$ 78,44578,44583,38783,20582,89782,45681,89686,23185,42884,53683,57682,55681,47685,33684,07282,76081,400

$ 1,250,000 $ 158,102 $ 1,408,102


-38-

SEQUOIA IMPROVEMENT DISTRICTCHANGES m LONG-TERM BOND DEBT


^

Description

BondsOriginal Outstanding

Bonds Issued October 1,2017

Sequoia Improvement DistrictUnlimited Tax Bonds - Series 2016 $ 1,380,000 $ 1,315,000

The District has $100,000 authorized but unissued tax and revenue bond authorization. A total of$850,000 tax and revenue bond authorization was approved by the voters November 16, 1965. A total of$8,000,000 tax bond authorization was approved by the voters May 10, 2014, of which is $6,620,000 isunissued as of September 30, 2018.

Debt Service Fund cash, investments and cash with paying agent balances as ofSeptember 30, 2018:

Average armual debt service payment (principal and interest) for remaining termof all debt:

See Note 3 for interest rate, interest payment dates and maturity dates.

$ 49,303

$ 82,830


-39-

Current Year Transactions

Retirements

Bonds Sold Principal Interest

Bonds

OutstandingSeptember 3 0,2018 Paying Agent

$ $ 65,000 $ 13,446 $ 1,250,000

Amegy Bank a divisionofZionBankNA.

Houston, TX


-40-

SEQUOIA IMPROVEMENT DISTRICTCOMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES

GENERAL FUND - FIVE YEARS

Amounts

REVENUESProperty TaxesWater ServiceWastewater ServiceGrant RevenueGroundwater Reduction Plan RevenuePenalty and InterestInvestment RevenuesMiscellaneous Revenues

TOTAL REVENUES

EXPENDITURESProfessional FeesContracted ServicesGroundwater Reduction Plan FeesPurchased Wastewater ServiceUtilitiesRepairs and MaintenanceOther

Capital Outlay

TOTAL EXPENDITURES


BEGENNING FUND BALANCE

ENDING FUND BALANCE

$

$

$

$

$

$

2018

224,89185,430

199,896

26,7229,6762,1839,389

67,47785,04929,265

167,63533,76049,01546,106

79,880

453,675

2017

$

$

478,307 $

$

224,19581,933

198,421

26,5529,2881,3064,516

$

558,187 $ 546,211 $

54,99782,30328,989

163,54634,57667,08042,868

$

474,359

71,852

381,823

$

$

533,555 $ 453,675 $

2016

272,34082,501

202,038

26,44115,901

8764,580

604,677

84,437108,08329,919

185,70834,57850,11155,67518,626

567,137

37,540

344,283

381,823


-41-

Percentage of Total Revenues

2015 2014 2018

$

$

165,86981,451

199,290

26,57614,537

7655,142

493,630

$

;$

120,56981,917

199,517155,97426,71112,282

8189,791

607,579

40.315.335.8

4.81.70.41.7

%

2017

41.115.036.3

4.91.70.20.8

2016 2015 2014

% 45.1 %13.633.4

4.42.60.10.8

33.616.540.4

5.42.90.21.0

% 19.813.632.825.74.42.00.11.6

%

100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

$

$

$

56,203107,30528,370

156,08232,71935,00145,125

$ 460,805

32,825

311,458

$

$

$

68,396111,85431,235

137,12233,24232,52945,385

185,237

645,000

(37,421)

348,879

344,283 $ 311,458

12.115.25.2

30.06.08.88.3

% 10.115.15.3

29.96.3

12.37.8

%

85.6 % 86.8 %

14.4 % 13.2 %

14.017.94.9

30.75.78.39.23.1

%

93.8 %

6.2 %

11.521.75.7

31.66.67.19.2

%

6.6 %

11.318.45.1

22.65.55.47.4

30.5

%

93.4 % 106.2 %


-42-

SEQUOIA IMPROVEMENT DISTRICTCOMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES

DEBT SERVICE FUND - FWE YEARS

REVENUESProperty TaxesPenalty and InterestInterest on Investments

TOTAL REVENUES

EXPENDITURESTax Collection ExpendituresDebt Service PrincipalDebt Service Interest and Fees

TOTAL EXPENDITURES

EXCESS (DEFICIENCY) OF REVENUESOVER EXPENDITURES

OTHER FINANCING SOURCES (USES)Long-Term Debt Issued


BEGINNING FUND BALANCE

ENDING FUND BALANCE

TOTAL ACTIVE RETAIL WATERCONNECTIONS

TOTAL ACTWE RETAIL WASTEWATERCONNECTIONS

$

$

$

$

$

2018 2017

78,3039,877

43

$ 85,9547,045

52

88,223 $ 93,051 $

23,70865,00015,446

$ 22,25765,00013,391

$

$ (15,931) $ (7,597) $

$ -0- $ -0-

335

334

339

338

Amounts

2016

3

3

104,154 $ 100,648 $ -0-

3

$ . 26,891

$ (15,931) $ (7,597) $ 26,894

19,297 26,894

3,366 $ 19,297 $ 26,894

339

338


-43-

2015

$ -0-

2014

$ -0-

Percentage of Total Revenues

2018 2017 2016 2015 2014

88.8 % 92.4 %11.1 7.50.1 0.1 100.0

100.0 % 100.0 % 100.0 %

$

$ -0-

$

$ -0-

26.9 % 23.9 %73.7 69.917.5 14.4

%

118.1 % 108.2 % -0- %

-0- $ -0- 18.1)% (8.2)% 100.0 % N/A N/A

$ -0-

$ -0-

$ -0-

$ -0-

$ -0- $ -0-

338 341

337 340


-44-

SEQUOIA IMPROVEMENT DISTRICTBOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS

SEPTEMBER 30, 2018

District Mailing Address Sequoia Improvement Dista-ict14435 Sequoia Bend BoulevardHouston, TX 77032

District Telephone Number (281)449-1161

Board Members:

James Eastham

Richard W. Slater

William P. King

Melva Strahan

Karen Baker

Term ofOffice

(Elected orAppointed)

05/1605/20

(Elected)

05/1805/22

(Elected)

05/1805/22

(Elected)

12/1605/20

(Appointed)

01/1705/20

(Appointed)

Fees of Officefor the

year ended

ExpenseReimbursements

for theyear ended

September 30, 2018 September 30, 2018

$ 5,550

$ 1,500

$ 1,950

$ 1,950

$ 1,950

$

$

$

$

$

-0-

-0-

-0-

-0-

-0-

Title

President

VicePresident

Secretary

Director

Director

Note: No Director has any business or family relationships (as defined by the Texas Water Code)with major landowners in the District, with the District's developer or with any of theDistrict's consultants.

Submission date of most recent District Registration Form (TWC Sections 36.054 and49.054): June 7, 2018.

The limit on Fees of Office that a Director may receive during a fiscal year is $7,200 as set byBoard Resolution (TWC Section 49.060). Fees of Office are the amounts actually paid to aDirector during the District's current fiscal year.


-45-

SEQUOIA IMPROVEMENT DISTRICTBOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS

SEPTEMBER 30, 2018

Consultants: Date Hired

Smith Murdaugh Little & Bonham, LLP 03/12/12

McCall Gibson Swedlund Barfoot PLLC 10/14/13

Myrtle Cruz, Inc. 05/80

A & S Engineers 2007

Municipal Operations and Consulting 07/10

WTieeler & Associates 04/74

MaryJamion 06/11/18

Perdue, Brandon, Fielder, Collins & Mott, 12/09/96L.L.P.

The GMS Group

Fees forthe year ended

September 3 0,2018

$ 49,700

Title

$

$

$

$

$

10,500

10,773

87,277

62,095

16,690

$ -0-

$ 3,212

$ 400

General Counsel

Auditor

Bookkeeper

Engineer

Operator

TaxAssessor/Collector

InvestmentOfficer

Delinquent TaxAttorney

FinancialAdvisor


-46-

sequoia improvement district information required by section … · 2020. 1. 17. · sequoia...

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