Cypress Hill Municipal Utility District No. 1. Municipal Utility District Overview April 9, 2018

Transcription

1 Cypress Hill Municipal Utility District No. 1 Municipal Utility District Overview April 9, 2018

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3 Greeting- Ronnie Koehn, President Board of Directors How is Cypress Hill Municipal Utility District No. 1 governed? Governed by a board of 5 elected directors who reside or own property within the District: Term of Office o Ronald S. Koehn, President o Bob Henry, Vice President o Tim Halloran, Secretary o Jerry Bryant, Assistant Secretary o Chris Chester, Assistant Secretary Supported by a team of consultants: o Attorney o Auditor o Bookkeeper o Tax Assessor Collector o Delinquent Tax Attorney o Engineer o Financial Advisor o Operator 1985 to present 1991 to present 1998 to present 2006 to present 2015 to present Norton Rose Fullbright US LLP BKD, LLP District Data Services, Inc. Assessments of the Southwest Perdue, Brandon, Fielder, Collins & Mott, LLP Dannenbaum Engineering Corp. Rathmann & Associates, L.P. Eagle Water Management

4 Regulatory Oversight The following entities have oversight over the District, its operation, facilities and Board of Directors. US Environmental Protection Agency Texas Department of Health Texas Attorney General Public Finance Division Texas State Law Texas Commission on Environmental Quality( TCEQ ) Harris-Galveston Subsidence District North Harris County Regional Water Authority Harris County City of Houston

5 Engineer- Alan Hirshman- Dannenbaum Engineering Corporation What does Cypress Hill Municipal Utility District No. 1 do? We operate and maintain: water supply, water distribution, wastewater collection and wastewater treatment systems and drainage/detention systems serving approximately 12,174 residents and numerous businesses: o 2 water treatment plants that supply drinking water for approximately 4,054 connections o 33.0 miles/(174,210 feet) of water line o valves o fire hydrants o 21.8 miles/(114,998 feet) of sanitary sewer line o manholes o Wastewater treatment plant and lift stations that serve approximately 4,034 connections o Numerous drainage/detention systems

6 Maintaining and Improving Our Facilities for the Future and Providing for Continued Growth of the District Construction of the District s facilities began in the late 1980 s. The useful life of these facilities is as follows: Water Distribution/Sanitary Sewer Collection Lines 40 years Water Plant/Wastewater Treatment Facilities years Repairs and maintenance are done on a critical need basis Less cost effective Inadvertent and unplanned service interruptions Carefully planned replacement/rehabilitation and improvement More efficient use of the District s capital resources Helps avoid unnecessary service interruptions Need to finance additional water and sewer facilities to serve development and growth in the District.

7 Construction Costs Amount A. Developer Contribution Items I. Fair Meadows Underground Utilities $ 1,600, Safesite Tract Underground Utilities $ 569, Keaton Tract Underground Utilities $ 516,871 Total Developer Contribution Items $ 2,685,871 B. District Items 1. Water Plant Site (with Elevated Storage Tank) $ 4,500, Onsite Lift Station at Waste Water Treatment Plant (Headworks) $ 2,000, Water Smart Meters $ 2,750, Reclaimed Water System $ 1,750, Televised Inspection & Rehab or Replacements of 8-18 inch Sanitary Sewer and Testing of 6-10 inch Force Main including Repairs and Replacements $ 6,169, Pressure Test for 4-12 inch Waterline $ 2,000, Inspection of 4-12 inch Waterline, Waterline Valves, Flushing Valves, etc. and Repair/Replace as needed. $ 3,915, Lift Station Repairs $ 1,000, Detention Pond Repairs $ 2,500, Contingencies (20% of Items 1-9) $ 5,316, Engineering (20% of Items 1-10) $ 6,380,254 Total District Items $ 38,281,522 TOTAL CONSTRUCTION COSTS $ 40,967,393

8 Nonconstruction Costs District Share A. Legal Fees (2%) $ 900,000 B. Financial Advisor Fees (2%) $ 900,000 C. Interest Costs I Capitalized Interest (N/A) 2 Developer Interest $ 241,728 D. Bond Discount (3%) $ 1,350,000 E. Bond Issuance Cost $ 233,379 F. TCEQ Bond Issuance Fee (0.25%) $ 112,500 G. Bond Application Report Costs $ 250,000 H. Attorney General Fee (0.1%) $ 45,000 TOTAL NONCONSTRUCTION $ 4,032,607 TOTAL BOND ISSUE REQUIREMENT $ 45,000,000

9 Financial Advisor- R. Craig Rathmann- Rathmann & Associates, L.P. Paying for repairs/ maintenance/ improvements to our facilities HISTORY The District has a history of effective planning The original bond authorizations totaling $62,180,000 by elections held in 1981 ($9,000,000), 1984 ($11,330,000), 1985 ($6,230,000), and 1999 ($35,620,000) have provided the District s long term financial plan. This planning has met the District s needs since The District financed the construction of all water, sewer and drainage facilities necessary to develop the District with the sale of bonds in 1984, 1998, 1999, 2001, 2002, 2005, 2006, 2011, 2012, 2013, 2014, 2016, 2017 and 2018 (April 23, 2018). Why the District needs to plan for the next 30 plus years To meet the needs of the next 30 plus years, the District needs to provide for the repair, replacement and improvement of its aging facilities.

10 Paying for repairs/ maintenance/ improvements to our facilities(cont.) SOURCES OF REVENUE FOR LESSER COSTS- GENERAL FUND Water and Sewer Rates Maintenance Tax- authorization SOURCE OF PAYMENT FOR MAJOR COSTS Bonds o Bond authorization o Bond application to TCEQ o Advantages- long term financing at low interest rates Paid with debt tax proceeds?

11 Paying for repairs / maintenance/ improvements to our facilities(cont.) BOARD OF DIRECTORS AS STEWARDS OF YOUR MONEY Review of audit and other reports The District is in excellent financial condition Balanced budget Excellent rainy day reserve The District will only issue bonds as necessary and only with the approval of TCEQ and the Texas Attorney General The District s bonds are limited to the provision of water, sewer and drainage services The District provides supplemental security, trash and recycling, and beautification. ACTION Bond authorization

12 Attorney- Kathleen Ellison- Norton Rose Fullbright US, LLP Election Polling Information Early Voting o April & April 30- May 1 o 9:00 a.m.-5:00 p.m. Election Day o May 5, 2018 o 7:00a.m.-7:00 p.m. Location o Sydney Harbour Clubhouse Harbour Bridge Point, Cypress, TX 77429

13 Questions and Answers