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Control N mber: 47833

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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


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


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


$ _

$ 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


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


Land Plant Construction Legal / Engineering Slab / Structure Fencing Generator Blower Lift Station Infrasturure


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


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


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


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)


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)



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)

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