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Item Number: 294
Addendum StartPage: 0
711
!‘ V Furoject No. 47833
CLASS "B" WATER COMPANY PUC ANNUAL REPORT
OF
Official Company Name:
Crystal Springs Water Company, Inc.
CCN Number 11373 Water 20906 Sewer 20782 Sewer
D/B/A Name(s)
TO THE PUBLIC UTILITY COMMISSION
OF TEXAS
For the Year Ended 12/31/2017
PUBLIC UTILITY COMMISSION OF TEXAS
1701 N. CONGRESS AVE., PO BOX 13326, AUSTIN, TX 78711-3326
Annual Report for Class B Water and/or Sewer Systems Pursuant to TWC § 13 136 and Title 16 Texas Administrative Code (TAC) Chapter 24
I. UTILITY INFORMATION
A. Utility Name: Crystal Springs Water Company, Inc.
List all assumed name(s) or d/b/a names: B. Street Address, City or Town & Zip code: 23449 Highway 59 North, Porter, TX 77365
County: Montgomery CCN No.:11373
C. List All PWS System names and numbers: Attached List
D. List All WQ Permited system names and numbers: Attached E. Type of Ownership:
Corporation: X "S" Corp Partnership: Individual: Other:
F. If a corporation list names of the officers. If an individual or partnership list the name of the individual or each partner. Tom A. Martin , CEO Mark W. Martin, President/Development -- Larry W. Purcell, President/Operating Systems
g. If the controlling ownership of this utility changed during the last twelve (12) months, state the date of ownership change and the name and address of the prior owner.
H. Date the utility was formed or incorporated:
I. Is the utility commonly owned or controlled by another corporation? Y NO If yes, by whom?
PERSON TO CONTACT REGARDING THE INFORMATION SUPPLIED ON THESE FORMS A. Name and Title: Tom A. Martin / CEO B. Street Address, city, zip code 23449 Highway 59 North, Porter, TX 77365
C. Telephone Number with Area Code: 28 1-354-5 136
Cell Phone Number with Area Code: 832-473-6258
Fax Number with Area Code: 281-354-6627
e-mail address:
D. If not an officer, owner or employee, give name of firm employed by:
E. List all entities under common control or ownership with this utility by entity name, CCN No(s)., Public Water System (PWS) No(s). and name(s) of water system(s) owned and Water Quality (WQ) Discharge Permit No(s). and name(s) of wastewater systems owned, and contact information.
All water and sewer systems on attached list is owned by Crystal Springs Water Company, Inc.
F. List all affiliates of the utility by entity name(s), CCN No(s). if any, PWS No. for each system owned
and WQ Discharge Permit No. for each wastewater systems owned, inlcuding contact information.
See attached lists
G. If the utility owner owns multiple CCN's, please list all CCN numbers owned:
PIK Water Annual Report
Page 1 2
1977
Schedule B
Name of Utility: Crystal Spring Water Company, Inc. Year End: 2017
2. BALANCE SHEETS (Does not reflect sewer systems' assets less depreciation)
End of Year End of Prior Year
mm/dd/yyyy mm/dd/yvyy
$ 9,719,175
$ 3,062,144
$ 6,657,031
$ 337,066
S 175,754
$ 75,000
$ 167,519
$ 755,339
7,412,370
End of Year End of Prior Year mm/c1d/vyyy mrn/dd/yvvv
$ 2,975,000
$ 1,039,406
$ 512,481
$ 4,526,887
$ 1,571,410
$ 17,658
$ 65,795
$ 364,695
$ 76,185
$ 524,333 $ _
$ 538,740
$ 251,000
$ 789,740
$ 7,412,370
ASSETS
UTILITY PLANT
101 Utility Plant in Service
103 Property held for Future Use 105 Construction Work In Progress
114, 115 Net Utility Plant Acquisition Adjustment
TOTAL UTILITY PLANT 108 Less: Accumulated Depreciation
110 Less: Accumulated Amortization
NET UTILITY PLANT
CURRENT ASSETS
131-135 Cash
141-143 Accounts Receivable 144 Notes Receivable 144-145 Accounts Receivable-Affiliates/Common Ownership 151 Plant Materials and Supplies
162 Prepayments 171-174 Other Current Assets
TOTAL CURRENT ASSETS
OTHER ASSETS and DEFERRED CHARGES 181 Deferred Debt Expense 182-186 Deferred Charges/Debits 190 Accum. Deferred Income Taxes
TOTAL OTHER ASSETS and DEFERRED CHARGES
TOTAL ASSETS
LIABILITIES & EQUITY
STOCKHOLDERS EQUITY 201 Common Stock 211 Other paid in capital
215 Retained Eamings
TOTAL STOCKHOLDERS' EQUITY LONG-TERM DEBT
224 Long-term debt, excluding current portion
CURRENT LIABILITIES Current Portion of Long-term Debt
231 Accounts Payable 232 Notes Payable (short-term debt) 233, 234 Payables to Affiliates/Common Ownership 236 Accrued Taxes 237 Accrued Interest 241.0 Other Current Liabilities
TOTAL CURRENT LIABILITIES
OTHER LIABILITIES and DEFERRED CREDITS 252 Advances for Construction 253 Other Deferred Credits
255 Deferred Investment Tax Credits 271-272 Net Contributions in Aid of Construction 281-283 Accumulated Deferred Inc. Taxes
TOTAL OTHER LIABILITIES and DEFERRED CREDITS
TOTAL LIABILITIES & EOUITY
Note: Sewer Plant in service is being retro-engineered back to 1984 to determine total system cost basis less depreciation.
Crystal Springs Water Company has never asked for a sewer rate increase so this cost basis will be determined in 2017 with our NARUC Accounting Systegua place.
water Annual Report
Page 2
Name of Utility: Crystal Springs Water Company, Inc. Year End: 2017
3. STATEMENT OF REVENUES
(Actual Revenues for the report year)
Prior Year Current Totals For
Reported Reporting Earnings Report Earnings Report
Water YYYY Year yyyy ad'ustments Adjustments
CUSTOMER CLASS (A) (B) (C) (D=B+C) Metered Sales.
5/8" or 3/4"
2,560,274 3/4"
1"
l 1/2"
2"
List all additional meter sizes
Tap & Connection Fees
$ 206,550 Misc Tap Fees
$ 16, 550 Water Connect Fee
SUB-TOTAL 2,783,374
Unmetered Sales: Wholesale
$ 93,539
Cutoffs
$ 23,985 Return Check Fees
$ 6,782 Commerical Tap
$ 24,800
List and explain itany rates are set
on • basis other than meter sue
$ 149,106
470.0 Late fees - Water $ 64,460 471-474 Other Fees $ 437,529
TOTAL WATER REVENUE
3,434,469
Prior Year Current Reported Reporting
To Statement of Income
Totals For Earnings Report Earnings Report
Sewer YYYY Year yyyy arFustments Adiustments
CUSTOMER CLASS (A) (B) (C) (D=B+C) Metered (measured) Sales (if any):
Residential $ 716,328 $ 742,778
Commerical $ 10,943 $ 11,857
Mise Tap Fees
$ 6,000
SUB-TOTAL
$ 727,271 $ 760,635
Unmetered (flat rate) Sales-
Commercial $ 7,610 $ 8,210
Tap & Connection Fees $ 190,000 $ 255,750
Other - Fees $ 4,985 $ 4,775
$ 8,575
SUB-TOTAL $ 202,595 $ 268,500
470.0 Late fees - Sewer
$ 24,300 $ 25,189
536 Other Revenue
TOTAL SEWER REVENUE $ 954,166 1,054,324
TOTAL REVENUE 4,388,635 4,650,384
To Statement of Income
PBC Water Annual Report Page 3
2,687,687
$ 255,750
$ 20,750 2,964,187
$ 105,743 $ 21,055
$ 5,489 $ 43,090
$ 175,377
$ 54,014
$ 402,474
3,596,060
4
1
Name of Utility: Crystal Springs Water Company, Inc.
Year End: 2017
4. Statements of Income Accelerated Depreciation
Water Test Year yyyy
Sewer Test Year Total - Water Earnings Report
YYYY and Sewer adjustments
Adjusted for Earnings Report
(a) (b) (c) (d) (e)=(c)+(d) Total Revenue: 1 $ 2,851,150 $ 829,181 $ 3,680,331
XXXX XXXX XXXX
XXXX
XXXX XXXX XXXX XXXX
XXXX
XXXX $ 551,412 $ 153,612 $ 705,025
$ 99,602 $ 29,001 $ 128,603
$ 146,339 $ 67,253 $ 213,592
$ 483,283 $ 194,547 $ 677,830
$
$
$ 64,907 $ 28,290 $ 93,197
$ 43,285 $ 79,555 $ 122,840
$ 48,531 $ 30,497 $ 79,028
$ 145,885 $ 25,705 $ 171,590
$ 177,361 $ 40,053 $ 217,414
$ 166,472 $ 36,942 $ 203,414
$ 184,200 $ 54,960 $ 239,160
$ 259,207 $ 131,502 $ 390,709
$ 52,025 $ 19,111 $ 71,136
XXXX
XXXX
XXXX
$ 47,250
$ 47,250
$ 71,286 $ 23,762 $ 95,048
$ 2,541,045 $ 914,790 $ 3,455,836 $
$
XXXX
XXXX
XXXX
$ 310,105 $ (85,609) $ (224,496) $
$
XXXX
XXXX
XXXX
XXXX
XXXX
XXXX
$ 310,105 $ (85,609) $ (224,496) $
$
Operating Expenses: 2 601.1/701.1 0 & M Salaried Labor 3 604/704 Employee Benefits 4 6/731, 6/735, 6/736 0 & M Contract labor 5 620/720 Operating/Maint Supplies 6 610/710 Purchased Water 7 615/715 Purchased Power 8 635/735 Testing Expense/Lab Fees 9 618/718 Chemicals
10 656-659/756-759 Insurance 11 601.2/701.2 General Office Salaries 12 650/750 Transportation 13 675 General Office Expenses 14 632, 633, 634 Contract Acctg, legal, Mgnt 15 666 Amortization- Rate Case Expense 16 403 Depreciation Expense 17 667-675 Other Misc. Expenses
Taxes: 18 409 Federal lncotne Taxes 19 409 State Franchise Taxes/Reg Assess. 20 408 All Other Taxes ( Fees) 21 Total Expenses
22 Net Operating Income
23 421, 433 Non-Operating Income * 24 Non-Operating Deductions: 25 426 Other 26 427 Interest 27 Net Income
PUC Water Annual Report Page 4 5
$1,092,527 $0
Plant Retirements
Amounts
Plant Adjustments
(plus or minus)
Total change during report
year
$ 594
$11,484.00
$ 454
$8,731.00 $ 842
$16,705 $ 5,638
$111,794 $ 6,750
$130,498 $ 1,134
$21,829 $ 1,793
$34,224 $ 5,834
$247,068 $ 1,696
$32,780 $ 616
$11,850 $ 5,352
$248,213 $ 4,201
$81,222 $ 929
$17,731
$ 443
$8,524 $ 1,328
$25,492 $ 1,415
$27,461
$ 512
$25,318 $ 1,339
$26,449
$ 270
$5,154
$41,140
List Major Items by account number and Class
Autumn Acres - Meters Chaparrel - Meters Chasewood - Meters Country West - Meters Deer Glen - Meters Forest Trace - Meters Live Oak - Meters Lilliput - New System OakTree - Meters Oak Creek 2 - Meters Ponderosa Pines - New System Timberland - Meters Tower Glen - Meters Tower Woods - Meters Western Hill - Meters Whispering Pines - Meters Whispering Pines - Storage Tanks White Oak - Meters Woodridge - Meters
TOTALS $0
Plant Additions Amounts
$ 11,880
$ 9,072 $ 16,848
$ 112,752 $ 135,000 $ 22,680 $ 35,856 $ 248,329 $ 33,912 $ 12,312 $ 252,963 $ 84,024 $ 18,576 $ 8,856 $ 26,568 $ 28,296 $ 25,620 $ 26,784 $ 5,400
$1,115,728
Date Plant Installed/Retired
ImillYYYY Apr-17 Apr-17 Dec-17 Feb-17 Apr-17 Apr-17 Feb-17
Mar 2017-Dec 2017 Apr-18 Apr-17
Jan 17 - Mar 17 Apr-17 Feb-17 Mar-17 Feb-17 Jun-17
May-17 Oct-17 Feb-17
Report Year Beginning Balance
Name of Utility: Crystal Springs Water Company, Inc. Year End: 2017
5(a). Water Plant In Service - Changes Since the Previous Annual Report A G=D-E+F
(I) PUC Water Annual Report Page 5(a)
Name of Utility: - Crystal Springs Water Company, Inc. Year End: 2017 Lilliput Farms Sewer - Under Construction)
>ince the Previous Annual Report "CORRECTED" A B C D E F G=D-E+F H=C+G
List Major Items by account number and Class
Report Year Beginning
Balance Lilliput Farms
Land $ 35,000 Plant Construction
Blower
Lift Station
Pumps
Treatment
Fencing&Pad Site
Meters
Fencing&Pad
Ground Infrastructure
Generator
$35,000
Plant Additions Amounts
$ _
$ 355,500 $ - $ 40,000 $ 19,148 $ 51,102 $ 15,250 $ 3,017 $ 21,013
$ 197,494 $ 41,995
$744,519
Plant Retirements
Plant Adjustments
(plus or minus)
Total change during
report year Report year
Ending Amounts
Balance
$0 $35,000.00
$355,500 $355,500.00
$0
$40,000 $40,000.00
$19,148 $19,148.00
$51,102 $51,102.00
$15,250 $15,250.00
$3,017 $3,017.00
$21,013 $21,013.00
$197,494 $197,494.00
$41,995 $41,995.00
$0
$0
$0
$0
$0
$0
$0
$0 $0 $744,519 $779,519
Date Plant Installed/Retired
minlYYYY
TOTALS
E F G=D-E+F H=C+G
Name of Utility: Crystal Springs Water Company, Inc. Ponderosa Pines Sewer - Under Construction)
the Previous Annual Report B C
D Changes Since
A
Installed/Retired
Inm/YYYY
List Major Items by account number and Class
Report Year Beginning Plant Additions
Ponderosa Pines Balance Amounts
Land $ 35,000 $
Legal / Engineering $ 23,457
Plant $ 276,000
Blower $ 80,793 $
Lift Station $ 30,239 $
Pumps $ 37,808
Electrical $ 16,639
Controls $ 5,887
Fencing $ 15,755
Plant Construction $ 95,000
Control Panels $ 26,528
Infrasturure $ 410,660
TOTALS
Year End: 2017
Plant Retirements
Adjustrnents (plus or
change during
Report year Ending
Amounts
Balance
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0 $0 $0
$0 $1,053,766
03
Date Plant Installed/R.etired
mm/YYY3' 2015
List Major Items by account number and Class
Land Plant Construction Legal / Engineering Slab / Structure Fencing Generator Blower Lift Station Infrasturure
Plant Additions Amounts
Report Year Beginning Balance
TOTALS 51,021,095 $203,949
$ 35,000
- $ $ 443,000 $ 105,145
$ 63,745 $ 4,507 $ 35,933
$ 24,548 $ 4,954 $ 13,500 $ $ 49,957 _ $ $ 43,372 - $ $ 312,040 $ 89,343
Plant Retirements Amounts
Plant Adjustments
(plus or minus)
Total change during report
year
$0
$105,145
$4,507
$0
$4,954
$0
$0
$0
$89,343
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0 $0 $203,949
CD PUC Water Annual Report Page 5(b)
Name of Utility: Forest Trace Sewer - Crystal Springs Water Company, Inc. Year End: 2017
5(b). Sewer Plant In Service - Changes Since the Previous Annual Report A B C D E F G=D-E+F
Name of Utility: Crystal Springs Water Company, Mc, Year End: 2017
6(a). Capital Structure Year Ended rnm/dd/yyyy
Per Books Adjustments for Post
Per Books Earnings Report Adjustment Ratio
232 00 Short-Tenn Debt $ 364,695 $ 364,695 5.64%
224.0 Long-Term Debt
1,571,410 $ 1,571,410 24 31%
Common Equity.
201.0 Common Stock $ 2,975,000 $ - $ 2,975,000
2 i 8.0 Proprietary Capital
S
211.0 Misc. Paid-in-Capital $ 1,039,406 $ 1,039,406
215.0 Retained Earnings $ 512,481 $ - $ 512,481
216 0 Reacquired Stock $ - $ - $ -
$ - $ - S -
Total Equity $ 4,526,887 $ - $ 4,526,887 70 04%
Total Capital
6,462,992 $ - S 6,462,992 100.00%
Debt Detail
Type
Pnncipal Amount
Cost Rates
Interest Expense
232.0 Short Term Debt,
Smnt of Texas Bank n/a
Ma Total Short-Term Debt
224 0 Long-Term Debt. Prosperity Bank Prosperity Bank
Prosperity Bank Total Long-Term Debt
$ 364,695 5,34% $ 19,475
0 00% $ -
$
0.00% S $ 364,695 5.34% S 19,475
610,957 4.75% 29,020
723, I 49 4 75% 34,350
237,304 4.75% 11,272
1,571,410 4 75% 74,642
6(b). RATE BASE AND EARNINGS CALCULATION RATE BASE SUMMARY
1
2 _ 3 4
5 6 — 7 — 8 9 X _ # —
0/
#
# — #
Description Water
(a)
Sewer
(b)
Total (c-)=-(a) + (b)
Reference (schedule)
Additions: Utility plant
Materials and supplies Working cash (Operating F.xp - Depr /12) Prepayments Other (attach schedule or itemize)
TOTAL ADDITIONS (Add Lines 2 through 6)
Deductions: Reserve for depreciation (Accumulated) Advances for constniction Contributions in aid of construction Accumulated deferred income taxes Accumulated deferred investment tax credits Other (attach schedule or itemize)
TOTAL DEDUCTIONS (Add lines 9 through 14)
RATE BASE (Line 7, less Line 15)
XXXX
XXXX XXXX
$ 9,719,175 Balance Sheet
2
243,569
2
$ 9,962,744
XXXX
XXXX XXXX
$ 3,062,144 2
$ 538,740 2
2
2
2
2
$ 3,600,884
$ 6,361,860
EARNINGS CALCULATION
17 Return (Note 1)
18 Rate of Retum (Line 17/Line 16)
19 Earned Return on Ending Equity (Notes 2, 3)
Note t Schedule 4. Statements of Income line 26 plus hne 27 Note 2 Based on reported capital structure in Scheduk 6 Calmat Structure _Eartunga
Note 3 Line 19 (above) will automatically calculate correctly only atler Schedule 4 Statements of Income
Schedule 7. Rate of Return , arid the above portions of -this schedule (tab) have been completed
$ (422,857)
-6.65%
-11 52%
PUC Water Annual Report Page 6 1 0
Name of Utility: Crystal Springs Water Company, Inc. Year End: 2017
7. Rate of Return Year Ended mm/dd/yyyy
Weighted Capital Cost Cost of
Balance Structure % Rates Capital (a) (b) (c) (c )=-(a) x (b)
1 /4.0 Long-Tenn Debt 1,571,410 29.96% 4.75% 1.42%
Common Equity* 4,526,887 70.04% 10.14% 7.10%
Total 100.00%
8.52%
*If the company currently has an authorized return on equity (ROE), enter that ROE in column (c) and provide the docket number in which that ROE was granted here ===>> N/A lf the company does not currently have an authorized ROE, enter in column (c) the ROE Moody's BAA Bond rating plus 6 percentage points. Utilities may obtain the current Moody's BAA Bond rating by emailing the PUC at [email protected] (this will in virtually every circumstance be different from the ROE that is actually earned) and place an "X" here===>> X
PK Water Annual Report Page 7
11
Name of Utility: Crystal Springs Water Company, Inc. Year End: 2017
8. Connection Count
METERED CUSTOMERS BY METER SIZE
Number of Customers
(A) (B) (C) (D) (E ) (F) (G) Line
No.
Meter
Size/ description
End of
Prior Year
Additions
or change
End of
Report Year
Meter
Ratios
Meter
Equivalencies
Water
(C + D)
(E x F)
1 5/8" x 3/4" 3499 199 3698 1 3698 2 3/4"
1.5
3 1" 12
12 2.5 30 4 1 1/2"
5
5 2"
8
6 List all Additional meter sizes
7 Unmetered
8
3511 199 3710
3728
Sewer
9
1135 164 1299
1299
10
11
12
13
1135 164 1299 1299
Total Water
Total Sewer
PUC Water Annual Report Page 8 12
Name of Utility: Crystal Springs Water Company, Inc. Year End: 2017
9. VOLUMETRIC INFORMATION
(Report in 1,000 gallons) Report Year
Description
1. Water Pumped 317,590,217
2. Purchased Water --
3. Total Water Produced (1. -I- 2.)
4. Total Water Sold 257,344,500 5 Water Lost (3 - 4) 60,245,717
PliC Water Annual Report Page 9 13
Name: Crystal Springs Water Cornpany, Inc. Year End: 2017
10. Affiliated Transactions
Charges by an Affiliate to the Reporting Utility Name of Affiliated company:
NARUC Account and/or type of service
Total Affiliated Company Total Texas
Total for reporting entity
Account # Account narne or type of service (Dollars transacted)
(Dollars transacted)
(Dollars transacted)
Charges by an Reporting Utility to Affiliates Name of Affiliated company:
NARUC Account and/or type of service
Total Affiliated Company Total Texas
Total for reporting entity
Account # Account name or type of service (Dollars transacted)
(Dollars transacted)
(Dollars transacted)
MC Water Annual Report Page 10 14
Subscribed and sworn to and before me, a Notary Public
in and for the Sta(e and County above-named, this
M) commissiou expires
day of3
(Si attire of affiant)
S' er oaths)
SUPPLEMENT
(By the president or other chief o
r4.4;.4 N o tary Public, State of Texas
Expires 06-06-2022
- Notary ID 3191058
County of Montgomery
State of Texas
as:
Crystal Springs Water Co , Inc
VERIFICATION
oKrif (To be made by the officer having control of the accounting of the respondent)
State of Texas
as.
County of _Montgomery
Tom A Martin President/CEO
(Name of atTiant)
of Crystal Springs Water Company, lne
(Official title of affiant)
(Exact legal title or name of the respondent)
The signed officer has reviewed the report.
Based on the officer's knowledge, the report does not contain any untrue statements of a material fact or omit to state
a material fact necessary in order to make the statements made, in light of the circurnstances under which such statements were made, not misleading.
Based on such officer's knowledge, the financial statements, and other financial information included in the report, fairly
present in all material respects the financial condition and results of operations of the issuer as of, and for, the periods
presented in the report.
He/she swears that all other statements contained in the said report are true, and that the said report is a correct and complete statement attic business and affairs of du
above-named respondent during the period of time from and including January 1,2017 to and including December 31, 2.4.12
Tom A Martin President/CEO
(Name of affiant)
of Crystal Springs Water Company, Inc.
(Exact legal (itle or name of the respondent)
that he/she has carefully examined the foregoing report, that lie/she swears that all statements of fact contained in Ilic said report are true, and that the said report is a co
statement of the business and affairs a the above named respondent during the period of timc frorn and including January 1. 2017
ro and including Occember 31, 2017
Subscribed and sworn to before me, a Notary Public
in and for the State and County abovemamed, this __ day of
(Signature of alTiant)
My commission expires
(Signature of officer authorized to administer oaths)
PUC Wee' AM441 iDU
Pagel]
15
(Official title of affiant)