HomeMy WebLinkAboutCity of Euless Comprehensive Annual Financial Report FY2020
City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2020
Prepared by
City of Euless
Finance Department
201 North Ector Drive
Euless, TX 76039
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2020
C O N T E N T S
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal i-vii
City Officials viii
Or ganizational Chart ix
GFOA Certificate of Achievement x
FINANCIAL SECTION
Inde pendent Auditor's Report 1-3
Mana gement’s Discussion and Analysis (unaudited )5-17
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 18
Statement of Activities 19
Fund Financial Statements
Governmental Funds
Balance Sheet 20
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 21
Statement of Revenues, Expenditures and Changes in Fund Balances 22
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 23
Proprietary Funds
Statement of Net Position 24-27
Statement of Revenues, Expenses, and Changes in Net Position 28-31
Statement of Cash Flows 32-35
Fiduciary Funds
Statement of Net Position 36
Statement of Changes in Fiduciary Net Position 37
Notes to Basic Financial Statements 38-79
Required Supplementary Information
Schedule of Changes in Net Pension Liability
and Related Ratios (Texas Munici pal Retirement System)82
Schedule of Contributions (Texas Munici pal Retirement System)83
Schedule of Changes in Net OPEB Liability and Related Ratios 84
Schedule of Contributions – OPEB Trust 85
Budgetary Comparison Schedules
General Fund 86-87
Car Rental Special Revenue Fund 88
Notes to Required Supplementary Information 89
Combining and Individual Fund Statements and Schedules
Non-Major Governmental Funds
Combining Balance Sheet 94-97
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2020
C O N T E N T S – CONTINUED
Page(s)
Combining and Individual Fund Statements and Schedules - Continued
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 98-101
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Hotel/Motel Special Revenue Fund 102
Half-Penny Sales Tax Special Revenue Fund 103
Police Drug Enforcement Special Revenue Fund 104
Crime Control and Prevention District Special Revenue Fund 105
Grant Special Revenue Fund 106
Police Seized Assets Special Revenue Fund 107
Juvenile Case Special Revenue Fund 108
TIRZ #3 Glade Parks Special Revenue Fund 109
Midtown Public Improvement District Special Revenue Fund 110
TIRZ #4 Midtown Special Revenue Fund 111
Cable PEG Fees Special Revenue Fund 112
Internal Service Funds
Combining Statement of Net Position 114
Combining Statement of Revenues, Expenses, and Changes in Net Position 115
Combining Statement of Cash Flows 116
Escrow Agency Funds
Statement of Changes in Assets and Liabilities 117
STATISTICAL SECTION (Unaudited )Table
Net Position by Component 1 121
Changes in Net Position 2 122-123
Fund Balances, Governmental Funds 3 124
Changes in Fund Balances, Governmental Funds 4 125
Estimated Actual Value of Taxable Property 5126
Direct and Overlapping Property Tax Rates 6 127
Principal Property Taxpayers 7 128
Property Tax Levies and Collections 8 129
Ratio of Outstanding Debt by Typ e9130
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 10 131
Direct and Overlapping Governmental Activities Debt 11 132
Schedule of Revenue Bond Coverage Water and Wastewater Bonds 12 133
Schedule of Revenue Bond Coverage Drainage Utility Bonds 13 134
Demographic Statistics 14 135
Principal Employers 15 136
Full-time City Government Employees by Function/Pro gram 16 137
Operating Indicators by Function/Pro gram 17 138
Capital Asset Statistics by Function/Program 18 139
INTRODUCTORY SECTION
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March 9, 2021
To the Honorable Mayor,
Members of the City Council, and
Citizens of the City of Euless, Texas
The Finance Department and City Manager’s Office are pleased to submit the
Comprehensive Annual Financial Report (“CAFR”) for the City of Euless, Texas (“City”)
for the fiscal year ended September 30, 2020. This report complies with State law which
requires that all local governments publish, within six months of the close of each fiscal
year, a complete set of financial statements presented in conformity with accounting
principles generally accepted in the United States of America (“GAAP”) and audited in
accordance with auditing standards generally accepted in the United States of America by a
firm of licensed certified public accountants.
This report is published to provide the City Council, City staff, citizens, bondholders, and
other interested parties with detailed information concerning the financial condition and
activities of the City. The report consists of City management’s representations concerning
the finances of the City. Consequently, management assumes full responsibility for the
accuracy, completeness, and reliability of all of the information presented in the report. To
provide a reasonable basis for making these representations, management of the City has
established a comprehensive internal control framework that is designed both to protect the
City’s assets from loss, theft, or misuse and to compile sufficient reliable information for
the preparation of the City’s financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh the benefits derived from them, the City’s
comprehensive framework of internal controls has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free from material
misstatement. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects.
The City’s financial statements have been audited by Weaver, L.L.P., a firm of licensed,
certified public accountants. The goal of the independent audit is to provide reasonable
assurance that the financial statements of the City for the fiscal year ended September 30,
2020, are free of material misstatement. The independent audit involved examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements;
assessing the accounting principles used and significant estimates made by management;
and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an
unmodified (“clean”) opinion that the City’s financial statements for the fiscal year ended
September 30, 2020, are fairly presented in conformity with GAAP. The independent
auditor’s report is presented as the first component of the Financial Section of this report.
201 N. Ector Drive, Euless TX 76039-3595
817/685-1400 Metro 817/267-4403 Fax 817/685-1416
www.eulesstx.gov
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This report is presented in three sections: Introductory, Financial, and Statistical. The
Introductory Section includes this transmittal letter, a listing of City Officials, and an
organizational chart of the City. The Financial Section includes the independent auditor’s
report on the basic financial statements, Management’s Discussion and Analysis
(“MD&A”), basic financial statements, the Notes to the Basic Financial Statements, and
combining and individual fund statements and schedules. The MD&A is a narrative
introduction, overview, and analysis to accompany the basic financial statements. This
letter of transmittal is designed to complement, and should be read in conjunction with, the
MD&A. The City of Euless’ MD&A can be found immediately following the independent
auditor’s report. The Statistical Section includes financial and demographic information
relevant to readers of the City’s financial statements. The statistical data is generally
presented on a multi-year basis.
Profile of the City of Euless, Texas
The City of Euless is located in North Central Texas in Northeast Tarrant County
approximately 16 miles west of Dallas and 16 miles east of Fort Worth. Euless is readily
accessible by State Highway 183 which is a multi-lane expressway linking Dallas to Fort
Worth. Other major highways through the City include State Highway 121, State Highway
360, State Highway 10 and Farm-to-Market Road 157. Euless’ centralized location
provides quick access to both Dallas and Fort Worth metropolitan areas and is adjacent to
Dallas-Fort Worth International Airport (“DFW Airport”), one of the world’s busiest
airports. The City is approximately 16.2 square miles and serves a population of
approximately 57,550.
The City of Euless was incorporated February 24, 1953 and is a home rule city operating
under a Council/Manager form of government. The City Council is comprised of the mayor
and six council members who are elected at large. The Council has the authority to enact
local legislation, levy taxes, adopt budgets, determine policies, incur debt, and appoint the
City Secretary, City Attorney, Municipal Court Judge, and the City Manager. The City
Manager reports directly to the City Council, and is responsible for the daily management
of the various City departments. Council members serve three-year staggered terms, with
two council members elected each year. The Mayor is elected to serve a three-year term. In
addition, several boards and commissions were created to assist the City Council in
deciding matters of policy and procedure and meet on various issues throughout the year.
The City of Euless provides a full range of services to its citizens including: police and
fire protection; emergency ambulance services; municipal court operations; development
and code services; construction and maintenance of streets and highways, parks, and
recreational facilities; water service and wastewater collection and treatment; and library
operations. The City also operates a top-ranked, 18-hole golf course and conference
center, youth athletic complex, and an aquatics center. Internal services of the City
account for risk management, equipment replacement, and employee insurance coverage
activities on a cost reimbursement basis. Private contractors, through franchise
agreements, provide solid waste and recycling collections and disposal services for the
City.
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Four component units of the City, the Euless Development Corporation, the Euless Crime
Control and Prevention District, Tax Increment Reinvestment Zone (TIRZ) #3 – Glade
Parks, and Tax Increment Reinvestment Zone (TIRZ) #4 – Midtown, are presented in the
financial statements of the City as blended component units. Data for these organizations is
recorded in and presented as special revenue funds in the City’s financial statements.
Additional information on these component units can also be found in Note 1 in the Notes
to the Basic Financial Statements.
The annual budget serves as the foundation for the City of Euless’ financial planning and
control. Per the City Charter, the City Manager provides to the City Council the proposed
budget by August 1st each year. The budget is filed with the City Secretary and is open for
public inspection. Upon receipt of the budget, the City Council sets a date for a public
hearing at which time interested citizens may express their opinions regarding the proposed
budget. The Charter requires the Council to adopt the budget by a favorable majority vote
at least ten days prior to the beginning of the next fiscal year.
The City Manager is authorized to transfer budgeted amounts between line items and
departments within any fund; however, any revisions that alter the total expenditures of any
fund must be approved by the City Council. Budgetary control has been established at the
individual fund level. Financial reports are produced showing budget to actual expenditures
by line item and are distributed monthly to City departments for review.
Economic Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City
of Euless operates.
The City of Euless is located in Tarrant County in the heart of the Dallas/Fort Worth (DFW)
Metroplex and adjacent to the DFW International Airport. Thus, the economic vitality of
the region significantly impacts the economic health of Euless.
DFW Airport reports itself as the fourth largest airport in terms of operations and fifteenth
largest in terms of passengers in the world, handling over 75 million passengers in 2019.
According to the North Texas Commission, DFW is the fourth largest region in the US and
has experienced tremendous growth during the past decade. With its highly-diversified
economy, DFW has a population of over 7.5 million, a Gross Domestic Product of $613.4
billion, a labor force of over 3.9 million, a 2.8% job growth rate, 24 Fortune 500 Firms, and
college enrollment of over 367,000. Such an economic environment has helped the region
weather economic downturns in key sectors better than many other regions in the nation.
The AllianceTexas development in North Fort Worth is a 26,000-acre master-planned,
mixed-use community which is home to more than 525 companies, 62,000 employees,
and is anchored by the inland port known as the Alliance Global Logistics Hub. This
area offers a variety of commercial real estate options, industrial space, office space, and
retail facilities (www.alliancetexas.com, AllianceTexas Fact Sheet 2020).
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Taxable value for all residential and commercial property in the City of Euless is estimated
at approximately $5.1 billion for tax year 2020, which is a 4.6% increase from the prior
year, due to increases in both residential and commercial real estate property values. Sales
tax collections increased during FY2019-20 despite COVID-19 projected impacts. Euless
continues to look for additional revenue opportunities in order to minimize the tax burden to
citizens and strives to cut costs without impacting service.
The City typically receives a significant amount of revenue from a consolidated rental car
facility located at DFW Airport. COVID-19 has had a significant impact on the travel
industry and this revenue source has declined significantly. The City Council has chosen to
continue to use this funding source to build reserves and to cash flow capital projects in lieu
of debt issuance as much as possible. This has allowed the City to refrain from becoming
overly dependent on a volatile resource while providing for needed improvements for
citizens.
The City of Euless has approximately 468.57 acres of undeveloped land outside of DFW
Airport. Although much of Glade Parks has developed, some commercial parcels remain
available within this development as well as the Founders Parc development. Vacant land
is also available at the Riverwalk development along SH 360 and SH 183 along with
various infill tracts throughout the City.
The Dallas Cowboys AT&T Stadium and Texas Rangers Globe Life Field and Globe Life
Park in Arlington, within minutes of Euless, continue to attract additional tourism to the
City by hosting concerts and sporting events, although these have been limited due to the
pandemic.
Population with a median age of 35.3 years (U.S. Census Bureau American Fact Finder
2019) has increased from 51,227 to 57,550 in ten years. The City’s median household
income is $65,921, which compares favorably to $64,034 for the State of Texas (U.S.
Census Bureau American Fact Finder 2019). The educational level is 89.5% high school
graduate or higher (U.S. Census Bureau American Fact Finder 2019).
Long-Term Financial Planning
The City of Euless has developed a comprehensive capital improvements document. Such
strategic planning has allowed the City Council to fund several major infrastructure
upgrades, park enhancements, and capital purchases in a systematic manner while
considering the full impact to the operating budget and tax requirements. Many of these
projects have been completed on a pay-as-you-go basis by utilizing operating revenues,
excess reserves, and rental car taxes.
The City Council and citizens of Euless have determined that debt issuance is a viable
method of financing major capital projects and equipment purchases. Analysis of
potential debt issuance includes the operating impact the repayment thereof will have on
citizens, property tax rates, and enterprise fund service fee revenues. Per the City’s fiscal
policies, long-term debt will not be used for operating purposes and the life of the debt
instruments will not exceed the useful life of the projects or equipment financed. Policy
also specifies
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that debt with an average life of 20 years or less will be issued to reduce net interest cost
and maintain future flexibility by paying off debt earlier. The majority of the City’s
existing long-term debt was used to finance infrastructure needs and traditional government
facilities such as streets, utility infrastructure, and development of parks and open spaces.
The City’s fiscal policies state current expenditures will be paid with current revenues.
Deferrals, short-term loans, or one-time sources will be avoided as budget balancing
techniques. Reserves will be used for emergencies or nonrecurring expenditures, except
when balances can be reduced because levels exceed guidelines or legally-required
minimums.
Fiscal policies provide for a General Fund reserve equal to between 30 and 60 days of
working capital. At no time shall the reserve fall below 8.3% of the General Fund
expenditure budget (i.e. 30-day level). Due to the City’s immediate reaction to COVID-19,
which included drastic cuts, frozen positions and the elimination of some positions, and the
receipt of federal CARES Act funding, the current operating reserve is at 165 days of
operations which equates to approximately 45% of next year’s budgeted expenditures. At
the end of the current year, the City was in compliance with this fiscal policy reserve level.
The City’s fiscal policies for the Water and Wastewater Fund require the maintenance of a
minimum reserve of 45 to 75 days of working capital. The City currently maintains a 125-
day reserve. Water and Wastewater revenue bond covenants require the City to maintain
reserve amounts sufficient to cover the average annual debt service requirements. This
revenue bond reserve is in addition to the working capital required by the City’s fiscal
policies and is maintained in a separate fund on the general ledger. As of September 30,
2020, the revenue bond reserve totaled $827,464 which meets the required average annual
debt service per bond covenants.
Standard & Poor’s Ratings Services, a subsidiary of the McGraw-Hill Companies, Inc. rates
the City’s general obligation debt and sales tax revenue debt at AA and the water and
wastewater revenue debt at AA+. Moody’s Investor Service, Inc. rates the general
obligation debt and water and wastewater revenue debt at Aa2. Additional information
about the rating agencies or the significance of the ratings provided may be obtained from
each agency’s web site.
Major Initiatives
The City has partnered with Tarrant County, surrounding cities, local churches, and
businesses to renovate qualifying homes in the community through the Tarrant County
Home Program and the Community Powered Revitalization Program (“CPR”). Through
these partnerships, the cities of Hurst, Euless, and Bedford have joined forces to assist
qualifying residents in all three communities.
The City’s Capital Improvements Program and ADA Transition Plan address facility
needs of the City. The Parks Master Plan, which focuses on improving the quality of life
for the community, includes additional hike/bike trails, park amenities and upgrades. The
City has completed several projects in the past year and has many others underway that
were included in these plans. The City believes it is critical that the street, water,
wastewater,
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and drainage systems are properly maintained and systematically upgraded. While these
are not glamorous, these represent the most basic governmental functions. Deferral of these
projects creates a financial burden for future generations.
Projects currently underway include water well replacement projects at the Far North Well
and Fuller Well and wastewater line replacement of pipe between North Main Street and
Salem Drive from 200 feet north of Town Creek Drive to State Highway 183, between
Crane Drive and Donley Drive from Harwood Road to Aransas Drive, between Ector Drive
and Fayette Drive from Lamar Drive to 160 feet east of Ector Drive, and along El Camino
Real between Sotogrande Boulevard and Woodvine Drive.
Bids for a portion of the FY2019 Street Improvement Project are under review. This project
includes Harwood Road between N. Main and State Highway 157, S. Pipeline Road from
Royal Parkway to Highland Drive, Highland Drive, W. Pipeline from Raider Drive, to the
western city limits and an extension of Mills Drive from State Highway 10 to Carr Park.
The construction work will be performed in two phases. The first phase will include
Harwood Road, S. Pipeline Road and Highland Drive. Construction should begin in early
2021. The second phase is scheduled for bid in the summer of 2021.
Over the last several years, the City has worked with developers on some major, mixed-use
centers. Glade Parks, located along the southwest corner of Glade Road and Highway 121,
provides approximately 1.2 million square feet of retail/office and includes a unique
residential component. In an effort to promote development in this area, the City created a
Tax Increment Reinvestment Zone (“TIRZ”) for the Glade Parks development and
approved the related project and financing plan. This plan authorized the City to undertake
certain public improvements associated with the Glade Parks development. Additionally,
the City created the Glade Parks Public Improvement District (“PID”) which is funded from
assessments within the district. Over the last several fiscal years, numerous businesses
opened in this development creating increased property values and retail sales. The single-
family residential component continues to add value to the property tax base as well.
The RiverWalk! development includes approximately 200 acres located at the northwest
corner of Airport Freeway and State Highway 360 extending north to Harwood Road.
Lennar Homes has developed five (5) subdivisions within the RiverWalk! mixed use
project.
The City also approved a 56-acre mixed-use development called Founders Parc, previously
known as Midtown, located on the south side of State Highway 183, east of Farm-to-
Market Road 157 and north of State Highway 10. This development of 259 new single-
family homes, 285 urban lofts, and over 57,000 square feet of retail and commercial space
is underway. Both a TIRZ and a PID have been created by the City to support debt for
public improvements needed for the area including roadways, water distribution system,
sanitary sewer and storm sewer collections systems, hardscaping, and amenities.
There are currently four active residential subdivisions in the City.
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Awards and Acknowledgements
The Government Finance Officers Association (“GFOA”) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Euless for its Comprehensive Annual
Financial Report (“CAFR”) for the fiscal year ended September 30, 2019. The Certificate of
Achievement is a prestigious national award recognizing conformance with the highest standards
for preparation of state and local government financial reports. In order to be awarded a
Certificate of Achievement, a government unit must publish an easily readable and efficiently
organized CAFR, whose contents conform to program standards. Such report must satisfy both
Generally Accepted Accounting Principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has been awarded
a Certificate of Achievement for the last 33 consecutive years. We believe that the current
CAFR meets the Certificate of Achievement program requirements and are submitting it to
GFOA for review.
In addition, the City of Euless received the GFOA’s Distinguished Budget Presentation Award
for its annual budget document. The City of Euless has received the Distinguished Budget
Award for the last 29 years. In order to qualify for the award, the City’s budget document was
judged to be proficient in several categories, including as a policy document, a financial plan, an
operations guide, and a communications device.
The preparation of this report on a timely basis could not have been accomplished without the
efficient and dedicated services of the entire staff of the Finance Department. Appreciation is
expressed to City employees throughout the organization, especially those who were
instrumental in the successful completion of this report.
We would like to thank the Mayor and members of the City Council for their support in planning
and conducting the financial operations of the City in a responsible, professional, and
progressive manner. As always, the City of Euless staff welcomes and appreciates your
comments.
Respectfully Submitted,
Loretta Getchell Janina Jewell
City Manager Director of Finance
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FINANCIAL SECTION
xii
Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 | Dallas, Texas 75201
Main: 972.490.1970
CPAs AND ADVISORS | WEAVER.COM
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Independent Auditor’s Report
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Euless,
Texas (the City) as of and for the year ended September 30, 2020, and the related notes to the financial
statements which collectively comprise the City’s basic financial statements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of these financial
statements in accordance with 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 of financial 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
our audit in accordance with auditing standards generally accepted in the United States of America,
and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well 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 our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Euless, Texas, as of September 30,
2020, and the respective changes in financial position and, where applicable, cash flows thereof for the
year then ended in accordance with accounting principles generally accepted in the United States of
America.
The Honorable Mayor,
City Council and City Manager
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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, and the required supplementary information, as listed in the
table of contents, 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
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, combining and
individual nonmajor fund financial statements and schedules, and statistical tables are presented for
purposes of additional analysis and are not a required part of the financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility
of management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual
nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to
the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
The Honorable Mayor,
City Council and City Manager
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 5,
2021, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 5, 2021
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CITY OF EULESS, TEXAS
Management’s Discussion and Analysis
For the Year Ended September 30, 2020
(Unaudited)
Management of the City of Euless offers the readers of the City’s financial statements this narrative
overview and analysis of the financial activities and financial position of the City for the fiscal year
ended September 30, 2020. In the broadest context, the financial well-being of a government lies in the
underlying wealth and willingness of its citizens and property owners to pay adequate taxes combined
with the vision of the government’s elected and appointed leadership to spend those taxes strategically
so that the City’s tax base, service levels, City assets, and the City’s desirability will be maintained not
just for the current year but well into the future.
Financial reporting is limited in its ability to provide the “big picture” but rather focuses on financial
position and changes in financial position. In other words, are revenues and/or expenditures higher or
lower than the previous year? Has net position (containing both short-term and long-term assets and
liabilities) or fund balances (the current “spendable” assets less current liabilities”) of the government
been maintained? Readers are encouraged to consider the information presented here in conjunction
with the additional information furnished in the letter of transmittal (pages i-viii of this report) and the
statistical section (pages 121-139 of this report) as well as information in the annual budget and the
capital improvement plan along with other community information found on the City’s website at
www.eulesstx.gov. It should be noted that the Independent Auditor’s Report describes the auditors’
association with the various sections of this report and that all of the additional information from the
website and other City sources are unaudited.
Financial Highlights
The assets and deferred outflows of resources of the City of Euless exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by $249,244,997 (net
position). This number must be viewed in the context that the vast majority of the City’s net
position of $170,573,427 (68%) is net investment in capital assets and that most capital assets in
government do not directly generate revenue nor can they be sold to generate liquid capital. The net
position restricted for specific purposes totaled $38,795,780 (16%). The remaining $39,875,790
(16%) is unrestricted net position and may be used to meet the government’s ongoing obligations to
citizens and creditors in accordance with the City’s fund designation and fiscal policies.
Governmental activities realized an increase in total net position of $15,295,579 and business-type
activities realized an increase in total net position of $2,102,186 bringing the total increase in net
position for the City to $17,397,765.
At the close of the current fiscal year, the City of Euless’ governmental funds reported combined
ending fund balances of $66,744,781 which represents an increase of $4,284,150. Within this total,
$3,828,633 is restricted for debt service; $22,369,460 is restricted by bond covenant for capital
projects; $123,748 and $257,636 are restricted for court technology and juvenile case management,
respectively; and another $2,214,281 is restricted for capital projects by developer agreements.
Amounts restricted for cable PEG fees and historical preservation total $608,222 and $1,245,
respectively. Nonspendable fund balance of $183,848 represents fund balance amounts for
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inventories and prepaid items. Fund balances of $17,366,982 represent assigned fund balance in the
general, special revenue, and capital projects funds. The unassigned fund balance in the General
Fund of $19,790,726 can be used for any lawful purpose. The General Fund unassigned balance
represents 50% of fiscal year 2020 total fund expenditures.
The City’s total capital assets (net of accumulated depreciation) increased by $18,130,113 which is
attributed to completion of capital improvement projects and other asset additions including
construction in progress exceeding current year depreciation expense and asset retirements.
The City’s debt payable increased by $6.4 million or 7.7% due primarily to the issuance of
certificates of obligation, sales tax revenue bonds, and tax notes less scheduled principal payments
and annual amortization of premiums and discounts on debt issuances.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of Euless’ basic financial
statements which are comprised of three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains other required
supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City of Euless’ finances, in a manner similar to a private-
sector business.
The statement of net position presents information on all of the City of Euless’ assets and deferred
outflows of resources and liabilities and deferred inflows of resources, with the difference between them
reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City of Euless is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported
in this statement for some items that will only result in cash receipts and cash outlays in future fiscal
periods (e.g., uncollected taxes and earned but unused compensated absences).
The government-wide financial statements distinguish between functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-
type activities). The governmental activities of the City include general and administration, public
safety, highways and streets, development services, and culture and recreation. The business-type
activities of the City include water and wastewater system, drainage system, golf course, and other
recreational activities.
The government-wide financial statements include not only the City of Euless (the primary
government), but also the Euless Development Corporation, the Crime Control and Prevention District,
the Tax Increment Reinvestment Zone #3 – Glade Parks, and Tax Increment Reinvestment Zone #4 –
Midtown which are legally separate entities that are financially accountable to the City. A blended
presentation has been used to report the financial information of these component units.
The government-wide financial statements can be found on pages 18-19 of this report.
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Fund Financial Statements. A fund is a self-balancing set of accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Euless, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements with the exclusion of
internal service fund activity. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be useful
in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, the reader may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City maintains twenty-three individual governmental funds. Information is presented separately in
the governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances for the General, Debt Service, Car Rental Tax, and Street
CIP funds, all of which are considered to be major funds. Data from the other nineteen governmental
funds are combined into a single, aggregate presentation. Individual fund data for each of these non-
major governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General and Car Rental Tax major governmental
funds. A budgetary comparison schedule has been provided for each fund to demonstrate compliance
with the adopted budgets.
The basic governmental fund financial statements can be found on pages 20-23 of this report.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide financial
statements. The City uses enterprise funds to account for its water and wastewater, drainage utility, golf
operations, and other recreation enterprises. Internal service funds are an accounting device used to
accumulate resources and allocate costs internally among the City’s various functions. The City uses
internal service funds to account for its equipment replacement, risk management, and health insurance
services. Because these services predominately benefit governmental rather than business-type
functions, a portion of the activities in these funds is included within governmental activities in the
government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for Water
and Wastewater, Drainage Utility, Golf, and Other Recreation enterprises all of which are considered to
be major funds of the City. The internal service funds are combined into a single, aggregate
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presentation in the proprietary fund financial statements. Individual data for the internal service funds is
provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 24-35 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to support the City’s own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on pages 36 and 37 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found on pages 38-79 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the City’s progress in funding its
obligations to provide pension and post-employment healthcare benefits to its employees. Additionally,
schedules comparing budgetary figures and actual results of the General and Car Rental Tax funds are
also located in this section of the report. Required supplementary information can be found on pages
81-89 of this report.
The combining statements referred to earlier in connection with non-major governmental funds and
internal service funds are presented immediately following the required supplementary information on
pensions, OPEB, and budgetary comparisons. Combining and individual fund statements and schedules
can be found on pages 91-117 of this report.
Government-Wide Financial Statement Analysis
As noted earlier, net position and especially net position by category may serve over time as a useful
indicator of a government’s financial position. In the case of the City of Euless, assets and deferred
outflows of resources exceeded liabilities and deferred inflows of resources by $249,244,997 as of
September 30, 2020.
The largest portion of the City’s net position (68%) reflects its investment in capital assets (i.e., land,
buildings, equipment, improvements, construction in progress, and infrastructure) net of accumulated
depreciation, less any debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently these assets are not available for future
spending and with the exception of business-type assets, do not generate direct revenue for the City.
They do, however, represent an obligation on the part of the City to maintain these assets into the future.
Although the City’s investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position (16%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position of
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$39,875,790 (16%) may be used to meet the City’s ongoing obligations to citizens, creditors, and
employees.
Net Position
Governmental Business-type
Amounts shown in 000's activities activities Total
2020 2019 2020 2019 2020 2019
Current and other assets 94,017$ 87,082$ 39,129$ 43,883$ 133,146$ 130,965$
Capital assets 170,321 157,892 84,545 78,845 254,866 236,737
Total assets 264,338 244,974 123,674 122,728 388,012 367,702
Total deferred outflows 4,444 12,575 1,200 2,819 5,644 15,394
Long-term liabilities 92,497 97,467 27,435 31,641 119,932 129,108
Other liabilities 11,350 15,216 6,369 5,867 17,719 21,083
Total liabilities 103,847 112,683 33,804 37,508 137,651 150,191
Total deferred inflows 5,665 892 1,094 166 6,759 1,058
Net position:
Net investment in
capital assets 104,019 99,744 66,555 65,622 170,574 165,366
Restricted 30,103 26,158 8,693 15,121 38,796 41,279
Unrestricted 25,148 18,072 14,728 7,130 39,876 25,202
Total net position 159,270$ 143,974$ 89,976$ 87,873$ 249,246$ 231,847$
As of September 30, 2020, the City reports positive balances in all three categories of net position, for
the government as a whole, as well as for its separate governmental and business-type activities. The
same situation was true for fiscal year 2019.
The City’s unrestricted net position increased by $14,673,842 in fiscal year 2020 as compared to the
unrestricted net position for the prior year. Restricted net position realized a decrease of $2,483,784 and
the amount invested in capital assets, net of related debt increased by $5,207,707. The increase in total
net position of more than $17 million results primarily from current year operating results flowing to the
net investment in capital assets and unrestricted categories of net position. The decrease in the restricted
portion of net position primarily results from current year capital project spending resulting in a decrease
in the restriction for capital project amount and expenditures related to PEG fees that also reduced the
amount restricted. The details of the results of current year operations are found in the table shown on
the following page.
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Changes in Net Position
Governmental Business-type
Amounts shown in 000's Activities Activities Totals
2020 2019 2020 2019 2020 2019
REVENUES
Program revenues:
Charges for services 6,140$ 6,917$ 32,016$ 33,492$ 38,156$ 40,409$
Operating grants and contributions 3,595 622 - - 3,595 622
Capital grants and contributions 2,191 1,304 2,678 3,059 4,869 4,363
General revenues:
Property taxes 22,837 20,429 - - 22,837 20,429
Sales taxes 22,088 21,420 - - 22,088 21,420
Car rental taxes 10,043 14,797 - - 10,043 14,797
Mixed beverage taxes 146 138 - - 146 138
Occupancy taxes 925 842 - - 925 842
Gross receipts taxes 4,239 4,549 - - 4,239 4,549
Investment income 1,055 1,883 369 747 1,424 2,630
Rents and royalties 1,462 1,348 - - 1,462 1,348
Gain (loss) on asset disposal - - (85) 10 (85) 10
Miscellaneous 971 931 - - 971 931
Total revenues 75,692 75,180 34,978 37,308 110,670 112,488
EXPENSES
Culture and recreation 5,539 7,330 - - 5,539 7,330
Development services 1,063 1,057 - - 1,063 1,057
General government 20,828 21,113 - - 20,828 21,113
Hi ghwa ys and streets 3,602 7,193 - - 3,602 7,193
Public safety 27,355 30,353 - - 27,355 30,353
Interest and fiscal charges 2,561 2,011 - - 2,561 2,011
Water and wastewater - - 25,333 23,493 25,333 23,493
Drainage utility - - 1,502 1,563 1,502 1,563
Golf course - - 3,997 4,732 3,997 4,732
Recreation enterprises - - 1,491 2,271 1,491 2,271
Total expenses 60,948 69,057 32,323 32,059 93,271 101,116
Increase (decrease) in net position
before transfers 14,744 6,123 2,655 5,249 17,399 11,372
Transfers 552 821 (552) (821) - -
Increase (decrease) in net position 15,296 6,944 2,103 4,428 17,399 11,372
Net position, beginning 143,974 137,030 87,873 83,445 231,847 220,475
Net position ending 159,270$ 143,974$ 89,976$ 87,873$ 249,246$ 231,847$
Governmental activities. Governmental activities increased the City’s net position by $15,295,579
thereby accounting for most of the growth (88%) in total net position. Many revenue categories,
including property taxes, sales taxes, occupancy taxes, and operating and capital grants and
contributions, exceeded prior year receipts. Other revenue categories fell short of prior year
collections including charges for services, car rental taxes, gross receipts taxes, and investment
income. The COVID 19 pandemic is the primary cause of the decline in these revenue streams.
Sound fiscal management and close monitoring of revenues and expenses allowed the City to realize
an increase in governmental activities net position before transfers of $14,743,605.
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Total revenue for the governmental activities (excluding transfers) increased from the previous year
by $510,465. General revenue, which is primarily comprised of property taxes, sales taxes, and car
rental taxes, realized a net decrease close to $2.6 million. Property tax revenue increased due to an
overall increase in taxable values of 12% over the prior year values. Despite the pandemic, shelter
in place orders, and social distancing, sales tax collections increased as a result of new business
openings, operational changes such as curbside service in retail sales and the restaurant industry, and
the stabilization of several large taxpayers. As a result of coronavirus concerns, car rental taxes did
not fare as well as sales taxes due to travel restrictions and the public’s hesitancy to fly once the
restrictions were lifted. A decline of more than $4.75 million was recognized in fiscal year 2020.
However, Euless shares this revenue source with the cities of Dallas and Fort Worth; and, as a result,
the net decline to Euless was roughly one third of that amount. Total governmental program
revenues, which consist primarily of charges for services, grants, and contributions, net to an
increase of nearly $3.1 million. Charges for services accounts for a decrease of approximately
$778,000 of the overall increase. The largest charges for services decrease was noted in the
development sector. As the pandemic hit, shelter in place orders shut down local construction sites
and halted new starts resulting in revenue shortfalls. Culture and recreation revenues took a large hit
from the closure of the recreation and senior centers for more than half of the fiscal year along with
the cancellation of all scheduled classes. Additionally, the water park remained closed for the entire
season. The Midtown PID assessment accounts for the decrease in highways and streets program
revenues of $39,000. Municipal court fines declined by more than $381,000 as compared to the
prior year as most of the City’s public safety personnel and resources were allocated to activities
related to the pandemic response. A flow-through of federal CARES Act funding from Tarrant
County of more than $3 million accounts for the increase in public safety operating grants and
contributions. Developer contributions of infrastructure and other contributed capital are responsible
for the increase of $774,000 in capital grants and contributions. Intergovernmental revenues from
other local cities for capital project cost sharing accounts for the remainder of the increase in capital
contributions.
Total expenses of governmental activities decreased by $8.1 million from FY2019 to FY2020. The
raise package for employees included an increase of 2.5% which accounts for an increase in
expenses across all functions. Pension-related entries decreased expenses $175,488 for the current
year primarily due to the recording of changes in and amortization of deferred outflows and deferred
inflows combined with the decrease in the net pension liability. In the prior year, these entries
increased salary-related expenses of governmental activities by $2.4 million. OPEB-related expenses
which includes the change in the net OPEB liability, related deferred inflows and deferred outflows,
as well as the amortization of the deferrals decreased salary-related expenses by approximately
$85,000 compared to a decrease in expenses of $53,000 in the prior year. Internal service fund
revenues plus transfers-in increased by $5.1 million as participating funds provided funding for
accumulated to-date amounts for the replacement of vital operating equipment. The allocation of
internal service fund activity decreased expenses by $3.9 million. The allocation to general and
administrative expenses increased by $442,000 while public safety realized a decrease of $1.8
million and culture and recreation decreased by $2.2 million. Furthermore, fluctuations in
depreciation expense as a result of the acquisition and disposal of capital assets affect the various
expense categories. General and administrative and public safety realized expense increases of
$91,000 and $32,000, respectively, due to depreciation charges. More than half of the decrease in
public safety expenses results from the pension and OPEB-related entries. Public works expenses
decreased primarily as a result of the City’s participation in the final phase of Glade Parks in the
prior year; and there was no similar expense in the current year. The net position of general
governmental operations accounts for 64% of total net position.
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Business-type activities. Business-type activities increased the City’s net position by $2,102,186.
The change in net position before transfers is $2,654,160. Charges for services program revenues
for the business-type activities decreased from the previous year by $1.5 million due primarily to
decreased golf and other recreation revenues. These facilities closed or scaled back operations for
much of the fiscal year due to the pandemic, capacity limitations, and shelter in place orders. Capital
grants and contributions decreased by $380,000 due to decreased developer contributions combined
with a reduction in impact fee collections.
Overall, total business-type expenses realized an increase for the year of $265,000 combined. Water
purchases and wastewater treatment recognized increases in both the volume purchased or treated
and the rates the suppliers charged the City for service. The total increase in these costs were nearly
$2.6 million over the prior year. The closure or scaled back operations in golf and other enterprises
saved $735,000 and $779,000, respectively, as compared to the prior year expense levels. Pension
entries decreased business-type expenses by approximately $44,000 for the year compared to an
increase of $407,000 in the prior year. OPEB-related entries decreased expenses by $17,000 last
year, and decreased expenses by $18,000 this year. Net position for business-type activities
represents 36% of total net position.
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of
a City’s net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Euless’ governmental funds reported combined ending
fund balances of $66,744,781, which represents an increase of $4,284,150 in comparison with prior
year. Approximately 30% or $19.8 million constitutes unassigned fund balance in the general fund that
is available for spending at the City’s discretion. Another $183,848 in non-spendable fund balance
represents amounts invested in inventories and prepayments. Another portion is restricted to indicate
that it is not available for new spending because it has already been committed 1) to pay debt service
($3,828,633); 2) to pay for specific capital improvements per developer agreements ($2,214,281); 3)
restricted by bond covenant for specific capital projects ($22,369,460); and 4) for a variety of other
restricted purposes ($990,851). Assigned fund balance includes funds that management intends to use
for a specific purpose as well as any residual balances of governmental funds other than the general
fund. Assigned fund balance totals $17,366,982 and includes assigned fund balance in the general fund
of $145,057 and $17,221,925 which represents residual balances in other governmental funds. See
discussion under Fund Balance Classifications in Note 1 of the Notes to Basic Financial Statements for
additional details on fund balance.
In the General Fund, the City budgeted for a decrease in fund balance (planned reduction) of
$3,936,071. Due to a positive budget variance in overall revenues and expenditures, the General Fund
ended the year with an increase to fund balance of $3,244,891. This figure represents a positive budget
variance of $7,180,962 resulting primarily from licenses and permit revenues exceeding budget
parameters and expenditure savings of $6.6 million, before transfers.
Several General Fund revenue categories realized increases over the prior year including property tax
collections, general sales tax receipts, and rental and miscellaneous income. Despite business closures,
13
shelter in place orders, social distancing, and capacity limitations resulting from the pandemic, sales tax
revenues increased over the prior year by $415,000. The increase is primarily due to new business
openings prior to the arrival of the pandemic, updated operating models in retail sales and the restaurant
industry including curbside service, as well as the stabilization of some larger sales taxpayers. Taxable
property values increased by 12% over the prior year values. The resulting increase in property tax
collections of close to $2 million helped to offset losses in several other revenue categories. These
revenue categories include gross receipt taxes, fines and fees, licenses and permits, investment income,
and swimming pool revenues. Telephone and cable gross receipt taxes declined as providers of both
telephone and telecommunications services were required to remit taxes on only one type of service per
changes in State law. As mentioned previously in the government-wide analysis, building permits
declined as the pandemic hit and local construction sites were closed and new construction was halted.
Swimming pool and other recreation fees also declined due to the arrival of the coronavirus. The
recreation center and senior center were closed, classes were cancelled, and the water park didn’t open
for the entire season. Market rates as well as investment portfolio yields continued to decline
throughout the fiscal year even as the City’s average portfolio balance increased over the prior year. A
resulting decline in investment income of more than $178,000 was realized. Total revenues surpassed
prior year levels by nearly $1.1 million.
Expenditures increased $363,000, or .9% over the prior year, and ended the fiscal year under budget
parameters by more than $6.6 million. Public safety salary and benefit expenditures were reduced by
nearly $3.1 million as qualified costs incurred for the City’s coronavirus response were moved to the
grant fund. The funding for these expenditures was provided via a flow-through grant from Tarrant
County of their federal CARES Act allocation. Public safety salary and benefit costs increased by almost
$429,000 due to the employee raises, employee health and dental coverage elections, and retirement
contributions. Many of the City’s benefits are salary-based and increase automatically when raises
become effective. Non-departmental expenditures, which are classified in the general and
administrative expenditure category, increased by $3.2 million primarily due to the fund’s one-time
contribution to the equipment replacement fund for the accumulated to-date replacement costs of critical
operating equipment. Rebate expenditures, also recorded in non-departmental, increased by almost
$132,000 due to increases in sales tax collections and other revenues upon which the rebates are based.
Culture and recreation realized an overall decrease in expenditures primarily as a result of the closure of
the recreation center, the cancellation of classes, and the closure of the senior center. Expenditures in
highways and streets declined by nearly $271,000 primarily as a result of placing capital expenditures
for streets, sidewalks and curbs, traffic signals, and lighting on hold due to uncertainties in the revenue
stream.
The Debt Service fund balance increased $260,920 which is $307,982 better than the expected decrease
of $47,062. The positive variance results primarily from property tax collections surpassing projections
combined with the premium collected on the issuance of debt.
The Car Rental Tax fund balance was originally anticipated to decrease $604,272 and was revised to
decrease $1,154,272, and ended the year with a decrease of $2,171,924 resulting primarily in a
significant decline of $4.7 million in car rental revenues due to travel restrictions imposed during the
first months of the pandemic and the public’s reluctance to fly when these travel restrictions were lifted.
Investment income was approximately $49,000 less than anticipated levels due to falling market rates.
Expenditures declined due to the reduction in the amount of revenue available to share with the cities of
Dallas and Fort Worth. Capital expenditures were held to minimal levels due to the revenue shortfall.
Revisions to the budget resulted in additional transfers out of $150,000 to car rental CIP and $400,000 to
the golf course to cover project expenditures and revenue shortfalls, respectively.
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The Streets CIP fund balance decreased by $6.1 million due to project expenditures incurred during the
current fiscal year. The FY2018 street project for the reconstruction of Fuller Wiser Road and Bear
Creek Parkway incurred current fiscal year expenditures of almost $5 million. Current expenditures for
the FY2019 street project for the reconstruction of Pipeline Road, Highland Drive, Harwood Road, and a
new section of Mills Drive totaled almost $1.3 million. The debt proceeds used to fund these projects
were received in prior fiscal years. Thus, expenditures vastly outpaced revenues and other sources for
the current year.
The non-major governmental funds realized a combined increase in fund balance of $9,060,159; special
revenue funds contributed $874,294 to this increase, while the capital projects funds added $8,185,865
to the balance. The general CIP fund realized a $7.4 million increase in fund balance due to the issuance
of certificates of obligation to fund the fire station project. The half-penny sales tax CIP fund realized
an increase of $1.9 million due to the issuance of sales tax revenue bonds to fund the next phase of the
Texas Star Sports Complex. Expenditures for the year were less than the revenues and other sources
collected for the year. The half-penny sales tax (EDC) fund increased fund balance by nearly $483,000
due in large part to increased sales tax collections and expenditure savings realized from keeping the
water park closed for the season due to coronavirus. The fund also transferred a little over $1 million in
one-time user fees to the equipment replacement fund for the accumulated to-date replacement costs of
critical operating equipment and park infrastructure. The EDC Board and City Council made the
decision to forego additional funding for the public art project and held current year expenditures
thereby eliminating potential costs of more than $400,000. The TIRZ #3 Glade Parks fund increased
fund balance by $641,000 primarily due to the collection of property taxes from participating entities
outpacing the debt service expenditures. The combined net effect of the changes in all non-major
governmental fund balances results in an increase of approximately $9 million.
Enterprise funds. The City’s enterprise fund statements provide the same type of information found in
the government-wide financial statements for business-type activities, but in more detail. Most of the
City’s enterprise funds are heavily dependent upon local weather conditions. During the year, rainfall
exceeded that of a “normal” year by more than nine inches; but fell short of prior year levels by almost
three inches. The Texas Star Sports Complex (included in other recreation enterprises) closed in March
for upcoming renovations. The closure of the recreation center and the cancellation of classes also had a
negative impact on the other recreation enterprises which ended the year with a decline in net position of
$1.2 million. The Texas Star Golf Course closed the entire facility in mid-March due to the pandemic.
The restaurant operated a curb side only model until it reopened with limited seating capacity of 25% in
mid-April. Capacity limitations varied from month to month, but remained in effect through the end of
the fiscal year negatively impacting restaurant operations. The golf course reopened in May, but social
distancing measures in effect limited play. The conference facility was closed mid-March through June,
reopening with 25% capacity. The cancellation of numerous events booked in the conference center
added to the revenue shortfall. A few smaller events were booked in May and June, but the facility
could not accommodate larger crowds due to social distancing requirements. Conference revenues
improved for the last quarter of the fiscal year, but still fell short of expectations. The influx of cash
from the car rental fund of $400,000 allowed the course to end the year with an increase in net position
of $52,000.
The Water and Wastewater fund realized a decrease in operating income resulting primarily from
increased operating costs outpacing overall revenue increases. Water sales and wastewater treatment
realized increases due to the increased volume sold or treated as well as increases in volume charges and
monthly base rates. Service fees and miscellaneous revenues declined with the arrival of the pandemic
15
and the economic hardship following in its wake. In an effort to assist customers, the City ceased
charging penalties on utility accounts and reconnection fees fell as customers were allowed a bit more
leeway in the payment of delinquent accounts resulting in fewer disconnects for nonpayment. Fewer
disconnects results in fewer reconnections thereby reducing fees. Inspection fees declined as
construction sites shut down and new construction was halted. Water purchases increased by $1.7
million due to an increase in supplier rates and increased volume due primarily to the closure of two of
the City water wells for renovation. Wastewater treatment costs increased by $761,000 over the prior
year figures due to increased volume and rates. Investment income decreased by $309,000 due to falling
market rates throughout most of the fiscal year. The overall change in net position in the Water and
Wastewater fund was an increase of approximately $2.5 million.
The decrease in net position of the Drainage Utility fund results primarily from depreciation on drainage
infrastructure and capital assets. The combined net effect of these changes in enterprise fund net
position results in an increase of $942,751.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-type activities
as of September 30, 2020, totaled $254,866,632 (net of accumulated depreciation). The investment in
capital assets includes land, buildings, improvements, machinery and equipment, infrastructure, and
construction in progress. The net increase in the City’s investment in capital assets for the current fiscal
year was $18,130,113 or about 7.7%.
Major capital asset activity that occurred during the current fiscal year included the following:
Capital asset contributions were comprised of $401,000 in Community Development Block Grant
(CDBG) expenditures for Midway Park Phase 2 wastewater line replacement phase 1 and developer
asset dedications totaling $4.3 million in street infrastructure, land, water and wastewater facilities,
and drainage structures.
Capital asset additions for governmental activities include, but are not limited to, equipment for
parks and recreation, a dump truck for public works, natatorium flooring replacement, Wello station
kiosks, and a variety of public safety equipment.
Construction-in-progress related to general government activity of $30,769,761 primarily consists of
Midtown infrastructure ($18 million), Library Remodel ($8 million), FY2019 Street Reconstruction
($1.3 million), FY2020 Street Improvements ($943,000) and TSSC Phase VII improvements ($1.7
million).
Phase III of the Reclaimed Water Line was completed at a total cost of $4.3 million. Cedar Hill
Estates and Oakwood Terrace Phase III wastewater line replacements were completed at a cost of
$251,000 and $249,000 respectively.
Capital asset additions for the business-type activities include, but are not limited to, purchase of an
ice machine, golf course grounds equipment, beverage carts, an air compressor, and new outfield
fencing at the TSSC.
Construction-in-progress related to business-type operations of $7,361,778 primarily consists of the
Well Replacement project.
Capital Assets (Net of Accumulated Depreciation)
Amounts shown in 000s
Land
Buildings
Other improvements
M&E
Infrastructure
Construction in
Progress
Total
Governmental
Business -type
activities
activities
Total
2020
2019
2020
2019
2020
2019
$ 35,207
$ 33,439
$ 3,619 $
3,619
$ 38,826
$ 37,058
32,069
34,012
1,427
1,551
33,496
35,563
9,001
8,613
9,245
9,891
18,246
18,504
10,628
9,532
1,684
1,984
12,312
11,516
52,646
46,821
61,208
56,593
113,854
103,414
30,770
25,475
7,362
5,207
38,132
30,682
$170,321
$ 157,892
$ 84,545 $
78,845
$ 254,866
$ 236,737
Additional information on the City's capital assets can be found in Note 3 on pages 55-56 of this report.
Long-term debt. At fiscal year-end, the City's outstanding debt totaled $86,238,557 net of unamortized
losses on prior refundings. Of this amount, $62,137,786 comprises debt backed by the full faith and
credit of the government, where $7,122,406 is the amount of self -supported debt for Texas Star Golf
Course and Stars Center. The remainder of the City's debt, $24,100,771, represents bonds secured
solely by specific revenue sources (i.e. revenue bonds).
Outstanding Debt
Governmental
Business -type
Amounts shown in 000s
activities
activities
Total
2020
2019
2020
2019
2020
2019
GO Bonds
$ 6,040 $
8,805
$ 3,805
$ 4,295
$ 9,845
$ 13,100
COs
51,710
46,200
-
-
51,710
46,200
GO/CO deferred loss
(203)
(310)
(325)
(371)
(528)
(681)
Tax notes
1,110
-
-
-
1,110
-
Revenue bonds
5,450
1,565
18,725
19,905
24,175
21,470
Revenue deferred loss
-
-
(74)
(93)
(74)
(93)
Totals
$ 64,107 $
56,260
$ 22,131
$ 23,736
$ 86,238
$ 79,996
In fiscal year 2020, the City issued $7,115,000 in new certificates of obligation, $1,110,000 in tax notes,
and $4,120,000 in sales tax revenue bonds. No new debt was issued for the City's enterprise operations
during the year. The City's total debt increased $6,359,965 (exclusive of deferred losses) or 7.7%
during fiscal year 2020 which is attributed to the addition of the new debt less scheduled annual
principal payments and annual amortization of premiums and discounts on debt issues.
Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies, Inc. rates the City's
general obligation debt and revenue debt at AA and the water and wastewater revenue debt at AA+.
Moody's Investor Service, Inc. rates the general obligation debt and the water and wastewater revenue
debt at Aa2 and the sales tax revenue debt at Aa2. Additional information on the City's long-term debt
can be found in Note 4 on pages 57-63.
16
17
Economic Factors and Next Year’s Budgets and Rates
In the FY2020-21 budget, General Fund revenues and transfers in are budgeted to decrease by 5% from
the FY2019-20 original budget. Property taxes account for 43% of budgeted revenues and sales taxes
comprise approximately 29% of budgeted revenues. Certified assessed valuations as of July 25, 2020
increased 4.6% from the preceding year.
In the FY2020-21 budget, sales tax receipts are projected to show an increase from FY2019-20
estimated collections. While sales tax collections for the current exceeded the prior year, they fell
slightly short of budgetary parameters primarily due to COVID 19 shelter in place orders, state-
mandated business closures, business capacity limitations upon reopening, and social distancing. As a
result, estimates for next year include a modest increase in collections. The car rental tax receipts are
anticipated to be well below prior year estimated collections due mainly to the pandemic that adversely
affected the travel industry.
Baseline budgeted expenditures in the General Fund are projected to decrease approximately 5% from
the FY2019-20 original budget. Expenditure cuts were implemented to offset the revenue losses
resulting from the effects of the pandemic. The City elected to use excess reserves to fund capital needs.
The property tax rate remained at .4625¢ per $100 of assessed valuation for FY2020-21.
For the Water and Wastewater Fund, the FY2020-21 budget includes the continuation of the tiered rate
structure for residential and irrigation water volume billing. Under the tiered structure, customers pay a
graduated volume rate based on varying levels of monthly water consumption. Residential volume rates
range from $4.21 to $6.84 per thousand gallons. A wastewater volume charge of $4.34 per thousand
gallons applies to all customer classes. Residential wastewater volume charges are capped at a
maximum of 12,000 gallons per month. The City maintained the annual funding for pay-as-you-go
capital expenses in the Water and Wastewater Fund of $1,075,000. Funding for El Camino Real and
State Highway 10 at Main Street wastewater line replacements is included in next year’s budget.
Additionally, funding is provided for replacement of the water lines along Dickey Drive. CDBG
funding for Phases I and II of Del Paso Street wastewater line replacements is also included.
The Texas Star Golf Course and Conference Centre is a vibrant part of the Euless community. This
secluded facility, located in the midst of the Dallas/Fort Worth Metroplex, is well-known for world class
golf and a challenging course that has been recognized as a premier municipal facility by leading golf
publications, including Golf Digest and Golfweek. Additionally, Raven’s Grille and the Conference
Centre continue to receive rave reviews. The Conference Centre has 7,000 square feet of divisible space
and hosts business conferences, weddings, concerts, and other events. Proposed revenues of $4,629,475
and proposed operating expenses of $4,606,455 comprise the FY2020-21 operating budget.
Request for Information
The financial report is designed to provide citizens, customers, investors, and creditors with a general
overview of the City’s finances. If you have questions about this report or need additional information,
contact the Finance Department, Attn: Janina Jewell, Director of Finance, at 201 North Ector Drive,
Euless, Texas 76039, call (817) 685-1626, or e-mail jjewell@eulesstx.gov.
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
ASSETS
Deposits and investments
Receivables, net of allowances
Internal balances
Inventories, at cost
Prepaid items
Restricted assets
Deposits and investments
Capital assets
Land and construction in progress
Other capital assets, net of
accumulated depreciation
Total assets
Primary Government
Governmental Business -type
Activities Activities Total
$ 67,038,543 $ 22,399,962 $ 89,438,505
7,625,754
3,892,936
11,518,690
(3,901,340)
3,901,340
-
11,016
225,685
236,701
172,832
15,828
188,660
23,069,460
8,692,555
31,762,015
65,976,846
10,980,323
76,957,169
104,344,560 73,564,903 177,909,463
264,337,671 123,673,532 388,011,203
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 3,400,225 639,981 4,040,206
Deferred outflows related to OPEB 841,760 161,595 1,003,355
Deferred charges on refunding 202,541 398,902 601,443
Total deferred outflows of resources
LIABILITIES
Accounts payable
Accrued liabilities
Accrued interest payable
Unearned revenue
Money held in escrow
Noncurrent liabilities
Due within one year
Due in more than one year
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for
Debt service
Capital projects
Impact fees
Developer agreements
Court technology
Juvenile cases
Cable PEG fees
Historical preservation
Unrestricted
Total net position
4,444,526 1,200,478 5,645,004
9,864,547 3,938,840
13,803,387
1,248,764 128,262
1,377,026
236,072 91,758
327,830
- 86,963
86,963
- 2,123,205
2,123,205
5,010,796 1,510,405 6,521,201
87,486,930 25,924,797 113,411,727
103,847,109 33,804,230 137,651,339
5,665,475 1,094,396 6,759,871
5,665,475 1,094,396 6,759,871
104,018,729 66,554,698 170,573,427
3,828,633
1,425,701
5,254,334
23,069,460
4,256,167
27,325,627
-
3,010,687
3,010,687
2,214,281
-
2,214,281
123,748
-
123,748
257,636
-
257,636
608,222
-
608,222
1,245
-
1,245
25.147.659
14.728.131
39.875.790
$ 159,269, 113 $ 89,975,384 $ 249,244,9 77
The Notes to the Basic Financial Statements
are an integral part of these statements.
18
Program Activities
Primary government
Governmental activities
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Interest and fiscal agent charge
Total governmental activiti4
Business -type activities
Water and wastewater
Drainage utility
Golf course
Other recreation enterprises
Total business -type activiti
Total primary government
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2020
Program Net (Expense) Revenue and
Revenues Changes in Net Position
Primary Government
Operating Capital Business -
Charges Grants and Grants and Governmental Type
Expenses for Services Contributions Contributions Activities Activities Total
$ 5,538,905
$ 10,124
$ 134 $ -
$ (5,528,647) $
- $ (5,528,647)
1,062,784
1,697,637
- -
634,853
- 634,853
20,827,914
1,067,485
16,596 -
(19,743,833)
- (19,743,833)
3,601,998
1,075,865
- 2,190,770
(335,363)
- (335,363)
27,354,689
2,288,377
3,578,209 -
(21,488,103)
- (21,488,103)
2,560,933
-
- -
(2,560,933)
- (2,560,933)
60,947,223
6,139,488
3,594,939 2,190,770
(49,022,026)
- (49,022,026)
25,333,182
26,934,154
- 2,377,946
1,502,275
833,890
- 299,967
3,997,255
3,363,915
- -
1,491,533
884,286
- -
es 32,324,245
32,016,245
- 21677,913
$ 93,271,468
$ 38,155,733
$ 3,594,939 $ 4,868,683
General Revenues
Taxes
Property taxes, levied for general purposes
Sales taxes
Car rental taxes
Mixed beverage taxes
Hotel/motel occupancy taxes
Gross receipts taxes
Investment income
Rents and royalties
Loss on sale of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
NET POSITION, beginning of year
NET POSITION, end of year
The Notes to the Basic Financial Statements
are an integral part of these statements.
- 3,978,918 3,978,918
- (368,418) (368,418)
- (633,340) (633,340)
- (607,247) (607,247)
- 2,369,913 2,369,913
(49,022,026) 2,369,913 (46,652,113)
22,837,075
-
22,837,075
22,088,364
-
22,088,364
10,042,659
-
10,042,659
146,188
-
146,188
924,551
-
924,551
4,238,664
-
4,238,664
1,054,661
368,999
1,423,660
1,462,429
-
1,462,429
-
(84,752)
(84,752)
971,040
-
971,040
551,974
(551,974)
-
64,317,605
(267,727)
64,049,878
15,295,579
2,102,186
17,397,765
143,974,034
87,873,198
231,847,232
$ 159,269,613
$ 89,975,384
$ 249,244,997
19
ASSETS
Deposits and investments
Receivables
Property taxes
Accounts receivable
Accrued interest receivable
Due from other governments
Prepaids and deposits
Inventories, at cost
Restricted deposits and investments
Total assets
CITY OF EULESS, TEXAS
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
Debt Car Streets Non -major Total
General Service Rental Tax CIP Governmental Governmental
Fund Fund Fund Fund Funds Funds
$ 18,524,079 $ 2,673,325 $ 6,563,804 1,163,881 $ 18,998,072 $ 47.923,161
470,107 166,531 - - 63,975 700,613
1,337,426 - - 18,193 290,981 1,646,600
33,764 - 615 2,778 5,028 42,185
2,414,383 - 1,210,106 - 1,451,325 5,075,814
147,959 - - - 24,873 172,832
11,016 - - - - 11,016
- - - 11,417,613 10,951,847 22,369,460
$ 22,938,734 $ 2,839,856 $ 7,774,525 $ 12,602,465 $ 31,786,101 $ 77,941,681
LIABILTTIES
Accounts payable
$ 1,146,687 $ - $ 5,584,258 $
625,353 $ 2,018,291
$ 9,374,589
Accrued liabilities
522,426 - -
- 80,765
603,191
Total liabilities
1,669,113 - 5,584,258
625,353 2,099,056
9,977,780
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes
470,107 163,557 -
- -
633,664
Unavailable revenue - other
581,008 - -
- 4,448
585,456
Total deferred inflows of resources
1,051,115 163,557 -
- 4,448
1,219,120
FUND BALANCES
Nonspendable
Prepaids, deposits, and inventories
158,975 -
- -
24,873
183,848
Restricted for
Debt service
- 2,676,299
- -
1,152,334
3,828,633
Capital projects
- -
- 11,417,613
10,951,847
22,369,460
Developer agreements
- -
- -
2,214,281
2,214,281
Court technology
123,748 -
- -
-
123,748
Juvenile case management
- -
- -
257,636
257,636
Cable PEG fees
- -
- -
608,222
608,222
Historical preservation
- -
- -
1,245
1,245
Assigned
145,057 -
2,190,267 559,499
14,472,159
17,366,982
Unassigned
19,790,726 -
- -
-
19,790,726
Total fund balances
20,218,506 2,676,299
2,190,267 11,977,112
29,682,597
66,744,781
Total liabilities, deferred inflows of resources,
and fund balances
$ 22,938,734 $ 2,839,856
$ 7,774,525 $ 12,602,465
$ 31,786,101
$ 77,941,681
The Notes to the Basic Financial Statements
are an integral part of these statements.
20
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
Total fund balances - governmental funds
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets of governmental funds are not current financial resources and
therefore are not reported in the governmental funds balance sheet.
Interest payable on long-term debt does not require current financial resources,
therefore interest payable is not reported as a liability in the governmental funds
balance sheet.
Internal service funds are used by management to charge the cost of certain
activities, such as insurance and fleet management, to individual funds. The
assets and liabilities of the internal service funds are net of the amount allocated
to business -type activities.
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements.
Funds comprising the OPEB liability ($10,124,512) and deferred outflows
$841,760 of resources related to the OPEB are not current financial resources
and therefore are not reported in the governmental funds balance sheet.
Funds comprising the net pension liability ($13,750,472), deferred inflows
($5,665,475) and deferred outflows $3,400,225 of resources related to the
pension are not current financial resources and therefore are not reported in the
governmental funds balance sheet.
$ 66,744,781
164,740,958
(236,072)
20,513,896
1,219,120
(9,282,752)
(16,015,722)
Long-term liabilities, including bonds payable, deferred charges on refundings,
and compensated absences (excluding those of internal service funds) are not
due and payable in the current period and therefore are not reported in the fund
financial statements. (68,414,596)
Net position of governmental activities
$ 159,269,613
The Notes to the Basic Financial Statements
are an integral part of these statements.
21
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2020
Revenues
General property tax
Gross receipts tax
Mixed beverage tax
General sales tax
Car rental tax
Fines and fees
Licenses and permits
Investment income
DEA revenues
Intergovernmental
Rents and royalties
Other revenues
Total revenues
Expenditures
Current
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Debt service
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
Excess (deficiency) of
revenues over (under) expenditures
Other financing sources (uses)
Debt Car Streets Non -major Total
General Service Rental Tax CIP Governmental Governmental
Fund Fund Fund Fund Funds Funds
$ 17,149,229 $4,034,881 $ - $
- $ 1,552,418
$ 22,736,528
4,134,432 - -
- 1,028,781
5,163,213
146,188 - -
- -
146,188
13,453,639 - -
- 8,634,725
22,088,364
- - 10,042,659
- -
10,042,659
2,835,050 - -
- -
2,835,050
1,673,143 - -
- -
1,673,143
263,648 44,406 116,378
192,451 252,944
869,827
- - -
- 13,678
13,678
379,728 - -
159,975 3,198,481
3,738,184
- 514,650 -
- 120,814
635,464
1,252,453 - -
- 1,135,505
2,387,958
41,287,510 4,593,937 10,159,037
352,426 15,937,346
72,330,256
3,052,695 - -
- 3,732,834
6,785,529
753,251 - -
- 311,777
1,065,028
11,317,732 - 6,680,181
- 729,137
18,727,050
1,095,732 - -
227,054 -
1,322,786
22,530,086 - -
- 5,792,402
28,322,488
- 4,370,000 - - 235,000 4,605,000
- 2,471,360 - - 156,190 2,627,550
897,699 - 167,562 7,326,518 8,447,795 16,839,574
39,647,195 6,841,360 6,847,743 7,553,572 19,405,135 80,295,005
1,640,315 (2,247,423) 3,311,294 (7,201,146) (3,467,789) (7,964,749)
Issuance of debt
-
730,000
-
-
11,615,000
12,345,000
Premiums on issuance of debt
-
66,133
-
-
458,215
524,348
Proceeds from sale of assets
16,735
-
425
-
101,670
118,830
Transfers in
3,041,682
2,412,210
-
1,091,250
3,577,236
10,122,378
Transfers out
(1,453,841)
(700,000)
(5,483,643)
-
(3,224,173)
(10,861,657)
Total other financing sources (uses)
1,604,576
21508,343
(5,483,218)
11091,250
12,527,948
12,248,899
Net change in fund balances
3,244,891
260,920
(2,171,924)
(6,109,896)
9,060,159
4,284,150
Fund balances, beginning of year
16,973,615
21415,379
4,362,191
18,087,008
20,622,438
62,460,631
Fund balances, end of year
$ 20,218,506
$ 2,676,299
$ 2,190,267
$ 11,977,112
$ 29,682,597
$ 66,744,781
The Notes to the Basic Financial Statements
are an integral part of these statements.
22
CITY OF EULESS, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2020
Net change in fund balances - total governmental funds $ 4,284,150
Amounts reported for governmental activities in the statement of activities are different
because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over the estimated useful lives and
reported as depreciation expense. This is the amount of capital expenditures recorded
in the current period. 16,839,574
Governmental funds report cash proceeds from the disposal of capital assets as
revenues, while only the net gain/loss on the transaction is reported in the statement of
activities and capital contributions are not reported in governmental funds. This is the
amount of capital contributions and disposals recorded in the current period. 1,378,684
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation
expenses are not reported as expenditures in the governmental funds. (5,659,818)
The issuance of long-term debt provides current financial resources to governmental
funds, but has no effect on net position. (12,345,000)
The repayment of the principal of long-term debt consumes current financial resources
of governmental funds, but has no effect on net position. 4,605,000
Governmental funds report the effect of premiums, discounts, and deferred charges on
refunding when debt is first issued, whereas the amounts are deferred and amortized in
the statement of activities. (414,802)
Current year changes in the long-term liabilities for compensated absences do not
require the use of current financial resources; therefore, they are not reported as
expenditures in governmental funds. (40,745)
Current year changes in accrued interest payables do not require the use of current
financial resources; therefore, they are not reported as expenditures in governmental
funds. 66,616
Changes in the OPEB liability and related deferred inflows and outflows not
recognized on the fiord financial statements under the modified accrual basis are
recognized on the accrual basis in the government -wide financial statements. 85,393
Changes in the net pension liability and related deferred inflows and outflows not
recognized on the fiord financial statements under the modified accrual basis are
recognized on the accrual basis in the government -wide financial statements. 174,486
Internal service fiords are used by management to charge the costs of certain activities,
such as insurance and fleet management, to individual funds. The net revenue of the
internal service funds is reported with governmental activities net of the amount
allocated to business -type activities. 6,144,076
Certain revenues in the government -wide statement of activities that do not provide
current financial resources are not reported as revenue in the governmental funds. 177,965
Change in net position of governmental activities
$ 15,295,579
The Notes to the Basic Financial Statements
are an integral part of these statements.
23
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION — PROPRIETARY FUNDS
SEPTEMBER 30, 2020
Business - Type Activities -
Enterprise Funds
Water and
Drainage
ASSETS
Wastewater
Utility
Current assets
Deposits and investments
$ 18,782,098
$ 1,531,008
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$12,134 for water and wastewater and
$201 for drainage utility
3,656,178
90,355
Accrued interest receivable
16,943
-
Prepaids and deposits
1,733
-
Inventory
116,096
-
Total unrestricted current assets 22,573,048 1,621,363
Restricted deposits and investments
W&WW impact fees 3,010,687 -
Capital projects 4,256,167 -
Revenue bond reserve for debt service 1,425,701 -
Total restricted assets 8,692,555 -
Total current assets 31,265,603 1,621,363
Property, plant, and equipment in service, at cost
Land
1,576,667
559,826
Building
97,094
-
Equipment
1,623,019
10,380
Improvements
1,097,773
1,171,994
Construction in progress
7,268,450
-
Utility system
94,721,244
28,644,755
Total property, plant, and equipment in service
106,384,247
30,386,955
Less accumulated depreciation
48,071,095
16,538,622
Net property, plant, and equipment in service
58,313,152
13,848,333
Total non -current assets
58,313,152
13,848,333
Total assets
89,578,755
15,469,696
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension
483,433
49,945
Deferred outflows related to OPEB
119,146
14,355
Deferred charges on refunding
74,229
-
Total deferred outflows of resources
676,808
64,300
The Notes to the Basic Financial Statements
are an integral part of these statements.
24
Business - Type Activities -
Enternrise Funds
Other Total
Golf Recreation Enterprise
Course Enterprises Funds
$ 1,097,817 $ 989,039 $ 22,399,962
123,141
14,095
96,894
1,331,947
6,319 3,875,993
- 16,943
- 15,828
12,695 225,685
1,008,053 26,534,411
(1 of 2)
Governmental
Activities -
Internal
Service
Funds
$ 19,115,382
152,493
8,049
19,275,924
- - 3,010,687 -
- - 4,256,167 700,000
- 1,425,701 -
- - 8,692,555 700,000
1,331,947 1,008,053 35,226,966 19,975,924
897,520
584,532
3,618,545
-
3,621,666
488,275
4,207,035
-
553,155
1,688,121
3,874,675
15,400,763
8,863,125
10,405,661
21,538,553
-
93,328
-
7,361,778
-
-
-
123,365,999
-
14,028,794
13,166,589
163,966,585
15,400,763
8,296,215
6,515,427
79,421,359
9,820,316
5,732,579
6,651,162
84,545,226
5,580,447
5,732,579
6,651,162
84,545,226
5,580,447
7,064,526
7,659,215
119,772,192
25,556,371
90,449
16,154 639,981 -
24,081
4,013 161,595 -
324,673
- 398,902 -
439,203
20,167 1,200,478 -
25
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION — PROPRIETARY FUNDS
SEPTEMBER 30, 2020
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable
Accrued salaries and wages
Current portion of bonds payable
Current portion of compensated absences
Accrued insurance claims
Unearned revenue
Accrued interest
Total current liabilities
Non -current liabilities
Customer and escrow deposits
Net pension liability
Net OPEB liability
Bonds payable
Compensated absences
Total non -current liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for
Impact fees
Capital projects
Debt service
Unrestricted
Total net position
Business - Type Activities -
Enterprise Funds
Water and
Wastewater
$ 3,754,249
90,700
945,000
28,224
80,286
Drainage
Utility
$ 4,706
12,015
1,893
4,898,459 18,614
2,012,702 -
1,929,018 182,741
1,394,388 156,689
17,763,280 -
254,011 17,038
23,353,399 356,468
28,251,858 375,082
802,526 102,594
802,526 102,594
43,935,268 13,848,333
3,010,687 -
4,256,167 -
1,425,701 -
8,573,356 1,207,987
$ 61,201,179 $ 15,056,320
Reconciliation to government -wide statement of net position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds
Net position of business -type activities
The Notes to the Basic Financial Statements
are an integral part of these statements.
26
Business - Type Activities -
Enternrise Funds
Other Total
Golf Recreation Enterprise
Course Enterprises Funds
(2 of 2)
Governmental
Activities -
Internal
Service
Funds
$ 162,205
$ 17,680
$ 3,938,840
$ 489,958
19,675
5,872
128,262
3,730
510,000
-
1,455,000
-
6,841
831
37,789
561
-
-
-
641,843
86,963
-
86,963
-
11,472
-
91,758
-
797,156
24,383
5,738,612
1,136,092
110,503
-
2,123,205
-
352,787
59,766
2,524,312
-
288,286
48,048
1,887,411
-
3,427,317
-
21,190,597
-
61,568
7,476
340,093
5,043
4,240,461
115,290
28,065,618
5,043
5,037,617
139,673
33,804,230
1,141,135
162,237 27,039 1,094,396 -
162,237 27,039 1,094,396 -
2,119,935 6,651,162 66,554,698 5,580,447
3,010,687 -
- - 4,256,167 700,000
- - 1,425,701 -
183,940 861,508 10,826,791 18,134,789
$ 2,303,875 $ 7,512,670 86,074,044 $ 24,415,236
3,901,340
$ 89,975,384
27
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION —
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2020
Operating revenues
Water service
Reclaimed water service
Wastewater service
Drainage fees
Recreation fees
Insurance premiums
Service fees and miscellaneous
Total operating revenues
Operating expenses
General and administrative
Water production
Water distribution
Utility engineering
Wastewater collection and treatment
Nondepartmental
Geographic information systems
Service center
Drainage
Recreation classes
Golf course
Pro shop
Food and beverage
Conference center
Cart operations
Texas Star Sports Complex
Arbor Daze
Insurance costs
Depreciation
Amortization
Total operating expenses
Operating income (loss)
Business - Type Activities -
Enterprise Funds
Water and
Wastewater
$ 14,960,883
726,069
10,180,945
1,066,257
26,934,154
Drainage
Utility
833,890
833,890
495,120
-
9,117,138
-
1,348,709
-
371,615
-
5,846,430
-
4,094,283
-
650,672
-
1,177,419
-
-
705,464
2,111,101
796,533
19,843
-
25,232,330
1,501,997
1,701,824
(668,107)
The Notes to the Basic Financial Statements
are an integral part of these statements.
28
Golf
Course
Business - Type Activities -
Enterprise Funds
Other
Recreation
Enterprises
Total
Enterprise
Funds
Governmental
Activities -
Internal
Service
Funds
$ 14,960,883 $ -
- - 726,069 -
- - 10,180,945 -
- - 833,890 -
219,922 219,922 -
- - 6,598,862
3,363,915 664,366 5,094,538 7,243,510
3,363,915 884,288 32,016,247 13,842,372
-
-
495,120
1,789,858
-
-
9,117,138
-
-
-
1,348,709
-
-
-
371,615
-
-
-
5,846,430
-
-
-
4,094,283
-
-
-
650,672
-
-
-
1,177,419
-
-
-
705,464
-
-
536,554
536,554
-
1,571,759
-
1,571,759
-
375,220
-
375,220
-
1,102,220
-
1,102,220
-
414,302
-
414,302
-
182,122
-
182,122
-
-
1,041,586
1,041,586
-
-
4,230
4,230
-
-
-
-
5,074,342
402,723
471,326
3,781,683
1,441,246
27,480
-
47,323
-
4,075,826
2,053,696
32,863,849
8,305,446
(711,911)
(1,169,408)
(847,602)
5,536,926
29
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION —
PROPRIETARY FUNDS — CONTINUED
YEAR ENDED SEPTEMBER 30, 2020
Business - Type Activities -
Enterprise Funds
Water and
Wastewater
Drainage
Utility
Nonoperating revenues (expenses)
Gain (loss) on sale of capital assets
$ 550
$ -
Investment income
336,597
12,264
Interest expense
(280,546)
-
Total nonoperating revenues
(expenses), net
56,601
12,264
Income (loss) before contributions
and transfers
1,758,425
(655,843)
Developer contributions
2,377,946
299,967
Transfers in
-
-
Transfers out
(1,611,262)
(41,850)
Net income (loss)
2,525,109
(397,726)
Net position, beginning
58,676,070
15,454,046
Net position, end of year
$ 61,201,179
$ 15,056,320
Reconciliation to government -wide statement of net position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds
Change in net position of business -type activities
The Notes to the Basic Financial Statements
are an integral part of these statements.
30
Business - Type Activities - Governmental
Enterprise Funds Activities -
Other Total Internal
Golf Recreation Enterprise Service
Course Enterprises Funds Funds
$ (2,280) $
8,679
(97,287)
(802,799)
855,232
(83,022) $ (84,752) $
11,459 368,999
- (377,833)
1,563 (93,586)
(1,240,971)
3,906
52,433 (1,237,065)
2,251,442 8,749,735
$ 2,303,875 $ 7,512,670
(941,188)
2,677,913
859,138
(1,653,112)
942,751
1,159,435
$ 2,102,186
233,332
5,770,258
1,533,253
7,303,511
17,111,725
$ 24,415,236
31
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS — PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2020
OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Net cash provided by (used in)
operating activities
NONCAPITAL FINANCING ACTIVITIES
Transfer in
Transfer out
Net cash provided by (used in)
noncapital financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees
Purchase of capital assets
Interest paid on bonds
Principal paid on bonds
Capital grant and developer contributions
Proceeds from sale of capital assets
Net cash used in capital
and related financing activities
INVESTING ACTIVITIES
Interest received on investments
Net cash provided by investing activities
Net change in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Business - Type Activities -
Enterprise Funds
Water and Drainage
Wastewater Utility
$ 27,309,499 $ 838,807
(18,745,499) (271,847)
(3,801,056) (457,973)
4,762,944 108,987
(1,611,262) (41,850)
(1,611,262) (41,850)
412,650 -
(9,099,294) (321,779)
(306,354) -
(1,180,000) -
1,965,296 299,967
551 -
(8,207,151) (21,812)
411,818 12,264
411,818 12,264
(4,643,651) 57,589
32,118,304 1,473,419
$ 27,474,653 $ 1,531,008
The Notes to the Basic Financial Statements
are an integral part of these statements.
32
Business - Type Activities -
Enterprise Funds
Other Total
Golf Recreation Enterprise
Course Enterprises Funds
Governmental
Activities -
Internal
Service
Funds
$ 3,406,360
$ 887,877
$ 32,442,543
$ 13,782,799
(1,827,053)
(1,311,476)
(22,155,875)
(6,259,946)
(1,767,478)
(298,186)
(6,324,693)
(152,790)
(188,171)
(721,785)
3,961,975
7,370,063
855,232
3,906
859,138
1,533,253
-
-
(1,653,112)
-
855,232
3,906
(793,974)
1,533,253
-
-
412,650
-
(93,328)
(59,359)
(9,573,760)
(1,330,990)
(99,125)
-
(405,479)
-
(490,000)
-
(1,670,000)
-
-
-
2,265,263
-
1,019
5,149
6,719
67,177
(681,434)
(54,210)
(8,964,607)
(1,263,813)
8,679
11,459
444,220
194,220
8,679
11,459
444,220
194,220
(5,694)
(760,630)
(5,352,386)
7,833,723
1,103,511
1,749,669
36,444,903
11,981,659
$ 1,097,817
$ 989,039
$ 31,092,517
$ 19,815,382
33
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS — PROPRIETARY FUNDS — CONTINUED
YEAR ENDED SEPTEMBER 30, 2020
Business - Type Activities -
Enterprise Funds
Water and
Drainage
Wastewater
Utility
Reconciliation of operating income (loss)
to net cash provided by
operating activities
Operating income (loss)
$ 1,701,824
$ (668,107)
Adjustments to reconcile operating
income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization
2,130,944
796,533
Changes in assets and liabilities:
Accounts receivable and
unbilled revenue
382,665
4,917
Prepaids and deposits
8,767
45
Inventory
3,279
-
Net OPEB liability
35,880
4,485
Net pension liability
(1,907,901)
(238,488)
Deferred outflows
1,147,513
137,479
Deferred inflows
679,651
88,905
Accounts payable
734,576
(540)
Accrued salaries and wages
(164,601)
(18,434)
Accrued insurance claims
-
-
Compensated absences
17,667
2,192
Customer and escrow
deposits
(7,320)
-
Unearned revenue
-
-
Net cash provided by (used in)
operating activities
$ 4,762,944
$ 108,987
Noncash financing activities
Developer contributed assets
Reconciliation of cash to balance sheet:
Cash - current
Cash - restricted
Cash and cash equivalents
$ 2,377,946 $ 299,967
$ 18,782,098
8,692,555
$ 1,531,008
$ 27,474,653 $ 1,531,008
The Notes to the Basic Financial Statements
are an integral part of these statements.
34
Business - Type Activities - Governmental
Enterprise Funds Activities -
Other Total Internal
Golf Recreation Enterprise Service
Course Enterprises Funds Funds
$ (711,911) $ (1,169,408) $ (847,602) $ 5,536,926
430,203
471,326
3,829,006
1,441,246
59,630
3,589
450,801
(59,571)
(6,680)
14,327
16,459
62,157
3,522
13,809
20,610
-
7,176
1,196
48,737
-
(381,580)
(63,597)
(2,591,566)
-
229,842
38,308
1,553,142
-
136,986
22,808
928,350
-
91,667
(31,308)
794,395
189,641
(33,030)
(24,609)
(240,674)
(6,336)
-
-
-
206,000
3,189
1,774
24,822
-
(6,634)
-
(13,954)
-
(10,551)
-
(10,551)
-
$ (188,171) $ (721,785) $ 3,961,975 $ 7,370,063
$ - $ - $ 2,677,913 $ -
$ 1,097,817 $ 989,039 $ 22,399,962 $ 19,115,382
- - 8,692,555 700,000
$ 1,097,817 $ 989,039 $ 31,092,517 $ 19,815,382
35
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION — FIDUCIARY FUNDS
SEPTEMBER 30, 2020
ASSETS
Investments at fair value
Money market account
Fixed income funds
Equity funds
Receivables
Total assets
LIABILITIES
Due to other entities
Refunds payable
Total liabilities
NET POSITION
Held in trust for OPEB
Stars Center Escrow OPEB
Agency Fund Trust Fund
$ 1,318,007 $ 83,554
- 3,387,419
- 5,232,569
103,125 -
$ 1,421,132 $ 8,703,542
$ 1,420,547
585
$ 1,421,132
$ 8,703,542
The Notes to the Basic Financial Statements
are an integral part of these statements.
36
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
OPEB TRUST FUND
YEAR ENDED SEPTEMBER 30, 2020
ADDITIONS
Employer contributions
Other contributions
Investment income
Net increase in fair value of investments
Less: investment expense
Total investment income
Total additions
DEDUCTIONS
Insurance claims
Administrative expenses
Total deductions
Change in net position
Net position - beginning
Net position - ending
OPEB
Trust Fund
$ 1,455,171
276,885
635,423
(47,010
588,413
2,320,469
898,811
131,480
1,030,291
1,290,178
7,413,364
$ 8,703,542
The Notes to the Basic Financial Statements
are an integral part of these statements.
37
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
38
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Euless (the City) was incorporated on February 24, 1953. The City operates under a
Council-Manager form of government and provides the following services as authorized by its
charter: general government, police and fire protection, emergency ambulance service, road and
traffic signal maintenance, water and wastewater operations, drainage system, parks and
recreational facilities, courts, library services, planning land use, building inspection, and traffic
control.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally accepted in
the United States of America (GAAP) applicable to state and local governments. GAAP for local
governments include those principles prescribed by the Governmental Accounting Standards
Board (GASB) and the American Institute of Certified Public Accountants in the publication
entitled Audits of State and Local Governmental Units.
The more significant accounting policies of the City are described as follows:
Financial Reporting Entity
As required by GAAP, these basic financial statements present the primary government and its
component units, entities for which the government is considered to be financially accountable.
The blended component units, although legally separate entities, are, in substance, part of the
primary government’s operations. As such, data from these units is combined with data of the
primary government.
Blended Component Units
The City includes four component units in the financial statements. The Euless Development
Corporation (Corporation) is used to account for the accumulation of half-cent sales tax
proceeds dedicated to building and improving City parks and facilities, enhancing library
services, and stimulating economic development activities within the City. The Euless Crime
Control and Prevention District (District) is used to account for the accumulation and use of
quarter-cent sales tax proceeds dedicated for crime reduction programs. The Corporation and
the District are reported as special revenue funds of the primary government. The Boards of
Directors of both component units are substantively the same as the City Council. There are
seven directors on each board, four of whom are council members which constitutes a voting
majority of the City Council. The remaining three board members are residents of the City.
Upon dissolution of the Corporation or the District, the entity’s assets will be distributed to
the City. Each component unit provides all of its services to the City. The financial
statements for the units were obtained from the respective Boards of Directors. Financial
information for both entities may be obtained from the City.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
39
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Financial Reporting Entity – Continued
Blended Component Units – Continued
The Tax Increment Reinvestment Zone #3 - Glade Parks (TIRZ #3) is also a blended
component unit of the City and is reflected in the financial statements as a special revenue
fund. TIRZ #3 was created to stimulate development and enhance the value of taxable real
property within the boundaries of the zone. Tarrant County and Tarrant County College
District are taxing entities participating in TIRZ #3. The Board of Directors of TIRZ #3 is
substantially the same as the City Council and management of the City has operational
responsibility for TIRZ #3. The Board is comprised of seven directors, four of whom are
council members which constitutes a voting majority of the Board. The remaining three
board members are representatives selected by the other participating taxing entities and the
Tarrant County Hospital District. Financial information for TIRZ #3 may be obtained from
the City.
The Tax Increment Reinvestment Zone #4 – Midtown (TIRZ #4) is also a blended
component unit of the City and is reflected in the financial statements as a special revenue
fund. The Midtown CIP Fund is also part of TIRZ#4. TIRZ #4 was created to stimulate
development and enhance the value of taxable real property within the boundaries of the
zone. Tarrant County, Tarrant County Hospital District, and Tarrant County College District
are taxing entities participating in TIRZ #4. The Board of Directors of TIRZ #4 is
substantially the same as the City Council and management of the City has operational
responsibility for TIRZ #4. The Board is comprised of seven directors, four of whom are
council members which constitutes a voting majority of the Board. The remaining three
board members are representatives selected by the other participating taxing entities.
Financial information for TIRZ #4 may be obtained from the City.
Basis of Presentation
The government-wide financial statements (the statement of net position and the statement of
activities) report information on all of the activities of the City, except fiduciary funds. The
effect of interfund activity, with the exception of interfund services provided or used, within the
governmental and business-type activities columns, has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues,
are reported separately from business-type activities, which rely to a significant extent on user
fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
program are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific program. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given program
and 2) operating or capital grants and contributions that are restricted to meeting the operational
or capital requirements of a particular program. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
40
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
Fund Financial Statements
The City segregates transactions related to certain functions or activities in separate funds in
order to aid financial management and to demonstrate compliance with various legal
provisions. Separate statements are presented for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. These statements present each major fund as a separate column on the fund
financial statements; all non-major funds are aggregated and presented in a single column.
Governmental funds are those funds through which most governmental functions are
typically financed. The measurement focus of governmental funds is on the sources, uses,
and balances of current financial resources. The City has presented the following major
governmental funds:
General Fund
The General Fund is the main operating fund of the City. This fund is used to account for
all financial resources not accounted for in other funds. All general tax revenues and
other receipts that are not restricted by law or contractual agreement to some other fund
are accounted for in this fund. General operating expenditures, fixed charges, and capital
improvement costs that are not paid through other funds are paid from the General Fund.
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of financial resources for
the payment of principal, interest, and related costs on general long-term debt paid
primarily from property taxes levied by the City. The fund balance of the Debt Service
Fund is restricted for debt service expenditures.
Car Rental Tax Fund
The Car Rental Tax Fund is used to account for revenues received from the collection of
short-term motor vehicle rental taxes and the expenditures thereof. Per contractual
agreement, revenues are shared with the cities of Dallas and Fort Worth. The City’s
portion of the revenue is used primarily for debt reduction, one-time capital projects, and
to maintain the property tax rate.
Streets CIP Fund
The Streets CIP Fund is used to account for street construction and reconstruction
projects and the means of financing such improvements.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
41
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
Proprietary funds are accounted for using the economic resources measurement focus and the
accrual basis of accounting. The accounting objectives are determinations of net income,
financial position, and cash flow. All assets and liabilities are included on the statement of
net position. The City has presented the following major proprietary funds:
Water and Wastewater Fund
Water and Wastewater Fund is used to account for the acquisition, operation and
maintenance of a municipal water and wastewater utility, supported primarily by user
charges.
Drainage Utility Fund
Drainage Utility Fund is used to account for the acquisition, operation, and maintenance
of a municipal drainage utility, supported primarily by user charges.
Golf Course Fund
Golf Course Fund is used to account for operation and maintenance of the City’s golf
course, supported primarily by user charges.
Other Recreation Enterprises Fund
Other Recreation Enterprises Fund is used to account for operations and maintenance of
recreation programming, Arbor Daze, and the Texas Star Sports Complex, supported by
user charges.
Additionally, the City reports the Internal Service Funds which are used to account for
equipment replacement, risk management, and self-funded health insurance coverage and
disability insurance provided to employees of the City.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations.
Operating expenses for the proprietary funds include the cost of personnel and contractual
services, supplies, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.
The City also reports two fiduciary funds in the financial statements. The Stars Center Escrow
Fund accounts for investments that will be held on behalf of the Dallas Stars until the debt issued
for the specific purpose of purchasing the Stars Center is fully repaid. The OPEB Trust Fund
accounts for the accumulation and use of resources for benefit payments related to post-
employment health care.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
42
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when
revenues and expenditures/expenses are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurement made, regardless of the
measurement focus applied.
The government-wide and proprietary fund financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. The economic resources
measurement focus means all assets, deferred inflows/outflows of resources, and liabilities
(whether current or noncurrent) are included on the statement of net position and the operating
statements present increases and decreases in total net position. Under the accrual basis of
accounting, revenues are recognized when earned, including unbilled water, wastewater, and
drainage services which are accrued. Expenses are recognized at the time the liability is
incurred.
Governmental fund financial statements are reported using the current financial resources
measurement focus and are accounted for using the modified accrual basis of accounting. Under
the modified accrual basis of accounting, revenues are recognized when susceptible to accrual;
i.e., become both measurable and available. “Measurable” means the amount of the transaction
can be determined and “available” means collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period. The City considers property taxes
and other revenues as available if they are collected within 60 days of year end. Expenditures are
recorded when the related fund liability is incurred. However, debt service expenditures, as well
as expenditures related to compensated absences and other long-term liabilities are recorded only
when payment is due.
The significant revenues susceptible to accrual are property taxes, franchise fees, licenses,
charges for service, interest income, and intergovernmental revenues. Sales taxes and short-term
motor vehicle rental taxes collected and held by the state at year end on behalf of the City are
also recognized as revenue. All other governmental fund revenues are recognized when
received.
Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances.”
Deposits and Investments
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash accounts or individual fund investment accounts. Related interest income is
allocated to the various funds based primarily on ownership by each fund of specific
investments. Cash equivalents consist of highly-liquid investments with original maturities of
three months or less.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
43
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Deposits and Investments – Continued
For purposes of the statement of cash flows, the City considers all highly liquid investments to
be cash equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or less when
purchased are reported at amortized cost. All other investments are reported at fair value.
State statutes authorize the City to invest in obligations of the U.S. Government or its agencies;
obligations of the State of Texas or its agencies; and certain other obligations, repurchase
agreements, money market mutual funds, and certificates of deposits within established criterion.
Property Taxes
Property taxes are levied for appropriation for the fiscal year beginning on October 1, are due
October 1, attach as an enforceable lien on property as of January 1, and become delinquent on
February 1. Property taxes are accrued based on the period for which they are levied and
available. Delinquent taxes estimated not to be available are treated as deferred inflows of
resources. Property taxes for cities, including those applicable to debt service, are limited by the
Texas Constitution to $2.50 per $100 of assessed valuation. The City's current tax rate is
$0.4625 per $100 of assessed valuation ($0.4625 per $100 last year) and assessed valuation is
approximately 100% of estimated value.
Inventories
Inventories, which are recognized as expenditures/expenses as consumed, are stated at cost (first-
in, first-out method) for the General Fund, Enterprise Funds and Internal Service funds.
Inventories consist primarily of expendable supplies for the General Fund and Internal Service
funds and merchandise for resale for the Enterprise Funds.
Prepaid Items
Prepaid balances are for payments made by the City in the current year to provide services
occurring in the subsequent fiscal year, and are recognized as expenditures utilizing the
consumption method.
Transactions Between Funds
Interfund services provided and used are accounted for as revenues and expenditures or
expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses
initially made from it that are properly applicable to another fund, are recorded as expenditures
or expenses in the reimbursing fund and as a reduction of expenditures or expenses in the fund
reimbursed. All other interfund transactions are recorded as transfers.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
44
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in
the applicable governmental or business-type activities columns in the government-wide
financial statements and in the fund financial statements for proprietary funds. All capital assets
are recorded at historical cost or estimated historical cost if actual historical cost is not available.
Donated assets are recorded at acquisition value on the date donated. Repairs and maintenance
are recorded as expenses. Renewals and betterments are capitalized. Interest has not been
capitalized during the construction period on property, plant, and equipment.
Assets capitalized have an original cost of $5,000 or more and over one year of useful life.
Depreciation has been calculated on each class of depreciable property using the straight-line
method. Estimated useful lives are as follows:
Buildings 33 1/3 years
Water and wastewater system 33 1/3 years
Storm drainage system 33 1/3 years
Infrastructure 7 - 40 years
Machinery and equipment 5 - 15 years
Improvements 25 years
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation accrual. The City's
policy is to pay the employee accumulated vacation upon termination. The City does not pay
employees for accumulated sick leave upon termination. The short-term portion of vacation pay
accrued in the proprietary fund financial statements is reported as accrued salaries and wages (a
current liability). The long-term component is reflected in non-current liabilities as compensated
absences. Compensated absences are recorded in governmental funds as they mature (i.e. as
taken). The liability for governmental fund compensated absences is typically liquidated in the
general fund, the juvenile case fund, the half-penny sales tax fund, and the crime control and
prevention district fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
45
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications
Fund balances are classified as follows on the governmental fund financial statements:
General Fund
Debt Service
Fund
Car Rental Tax
Fund Streets CIP Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Nonspendable 158,975$ -$ -$ -$ 24,873$ 183,848$
Restricted for
Debt service - 2,676,299 - - 1,152,334 3,828,633
Capital projects - - - 11,417,613 10,951,847 22,369,460
Developer agreements - - - - 2,214,281 2,214,281
Court technology 123,748 - - - - 123,748
Juvenile case processing - - - - 257,636 257,636
Cable PEG fees - - - - 608,222 608,222
Historical preservation - - - - 1,245 1,245
Assigned
Capital projects - - - 559,499 6,323,761 6,883,260
Betterments 59,504 - - - - 59,504
Emergency/radio systems 47,230 - - - - 47,230
Tourism and
conference facilities - - - - 575,191 575,191
Parks, library, and
economic development - - - - 3,596,344 3,596,344
Police department - - - - 1,870,525 1,870,525
Other 38,323 - 2,190,267 - 2,106,338 4,334,928
Unassigned 19,790,726 - - - - 19,790,726
Total 20,218,506$ 2,676,299$ 2,190,267$ 11,977,112$ 29,682,597$ 66,744,781$
Reported in
Nonspendable: This classification includes amounts that cannot be spent because they are either
(a) not in spendable form or (b) are legally or contractually required to be maintained intact. The
City has classified prepaid items and inventory as being nonspendable.
Restricted: This classification includes amounts for which constraints have been placed on the
use of the resources either (a) externally imposed by creditors (such as through a debt covenant),
grantors, contributors, or laws or regulations of other governments, or (b) imposed by law
through constitutional provisions or enabling legislation.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
46
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications – Continued
The City has recorded the following restrictions at year-end:
a. Restricted for debt service represents that portion of fund equity legally restricted for
retirement of bond principal and payment of interest and related charges.
b. Restricted for capital projects represents that portion of fund equity legally restricted
by debt covenant for capital projects and capital equipment purchases.
c. Restricted for developer agreements represents the portion of fund equity that must be
used for future improvements to various development areas within the City.
d. Restricted for court technology represents funds collected from a court technology fee
that must be used to upgrade court systems.
e. Restricted for juvenile case processing represents funds collected from a fee on
municipal court citations that must be used to support the expenditures associated
with juvenile case processing.
f. Restricted for cable PEG fees represents the portion of fund equity that must be used
for the expansion of the City’s public, educational, and government access channel.
g. Restricted for historical preservation represents donations that must be used toward
the preservation of the City’s historical sites.
Committed: This classification includes amounts that can be used only for specific purposes
pursuant to constraints imposed by formal action (ordinance) of the City Council. These
amounts cannot be used for any other purpose unless the City Council removes or changes
the specified use by taking the same type of action that was employed when the funds were
initially committed. This classification also includes contractual obligations to the extent that
existing resources have been specifically committed for use in satisfying those contractual
requirements. The City has no committed fund balance at year-end.
Assigned: This classification includes amounts that are constrained by the City’s intended
use for a specific purpose but are neither restricted nor committed. The City Council
delegates the authority for determining this intent to the City Manager. Assignments are
made at the City Manager's discretion, but generally represent items for which specific funds
have been informally dedicated internally. This classification also includes the remaining
positive fund balance for all governmental funds except for the General Fund. The City has
recorded the following assignments at year-end:
a. Assigned for capital projects represents revenue sources that are to be used for capital
projects for the City.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
47
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications – Continued
b. Assigned for betterment represents funds donated by citizens that are to be used for the
betterment of the community.
c. Assigned for emergency/radio systems represents funding that is to be used to upgrade
emergency and radio systems.
d. Assigned for tourism and conference facilities represents funds to promote the City
through tourism, conference booking, and historical preservation.
e. Assigned for parks, libraries, and economic development represents funds from sales
taxes that are to be used for park improvements, library activities, and economic
development throughout the City.
f. Assigned for the police department are funds from the Crime Control and Prevention
District and the sale of assets seized in connection with drug arrests to be used for police
department expenditures.
g. Assigned for other are funds from specific revenues that are to be spent for facility
remodel, victim assistance, and injured animals.
Unassigned: This classification includes all amounts that are not included in other spendable
classifications and the remaining negative fund balance for any governmental funds. The
General Fund is the only fund that reports a positive unassigned fund balance.
When available, the City uses restricted fund balances first, followed by committed
resources, assigned resources, then unassigned resources, as appropriate opportunities arise.
However, the City reserves the right to selectively spend unassigned resources first to defer
the use of these other classified funds.
Net Position
Net position represents the difference between assets and deferred outflows of resources and
liabilities and deferred inflows of resources of governmental and business-type activities and
proprietary funds. Net investment in capital assets consists of capital assets, net of accumulated
depreciation, plus capital-related deferred outflows of resources, reduced by the outstanding
balances of any borrowing and capital related deferred inflows of resources used for the
acquisition, construction, or improvements of those assets, plus unspent debt proceeds. Net
position is reported as restricted when there are limitations imposed on its use, either through the
enabling legislation adopted by the City or through external restrictions imposed by creditors,
grantors, or laws or regulations of other governments.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
48
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Pensions
For purposes of measuring the net pension liability, pension related deferred outflows and inflows
of resources, and pension expense, City specific information about its Fiduciary Net Position in the
Texas Municipal Retirement System (TMRS) and additions to/deductions from the City’s
Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For
this purpose, plan contributions are recognized in the period that compensation is reported for the
employee, which is when contributions are legally due. Benefit payments and refunds are
recognized when due and payable in accordance with the benefit terms. Investments are reported at
fair value. Information regarding the City’s Total Pension Liability is obtained from TMRS
through a report prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith &
Company, in compliance with Governmental Accounting Standards Board (GASB) Statement No.
68, Accounting and Financial Reporting for Pensions.
Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, OPEB related deferred outflows and inflows of
resources, and OPEB expense, City specific information about its Fiduciary Net Position and
additions to/deductions from the City’s Fiduciary Net Position have been determined on the same
basis as they are reported. For this purpose, plan contributions are recognized in the period that
compensation is reported for the employee, which is when contributions are legally due. Benefit
payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value. Information regarding the City’s OPEB liability is obtained
from an actuarial valuation through a report prepared for the City by their consulting actuary in
compliance with Governmental Accounting Standards Board (GASB) Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits other than Pensions.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will not
be recognized as an outflow of resources (expense/expenditure) until then. The City has the
following items that qualify for reporting as deferred outflows of resources:
Deferred charges on refundings – a deferred charge on refunding results from the
difference in the carrying value of refunded debt and its reacquisition price. This amount is
deferred and amortized over the shorter of the life of the refunded debt or refunding debt.
Pension contributions after measurement date – these contributions are deferred and
recognized in the following fiscal year.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
49
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Deferred Outflows/Inflows of Resources – Continued
Difference in projected and actual earnings on OPEB assets – this difference is deferred
and amortized over a closed five-year period.
Difference in expected and actual OPEB experience – this difference is deferred and
amortized over a closed period that approximates the estimated average remaining lives of
all members on the measurement date.
Difference in OPEB actuarial assumption changes – this difference is deferred and
amortized over a closed period that approximates the estimated average remaining lives of
all members on the measurement date.
In addition to liabilities, the statement of net position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and so will not
be recognized as an inflow of resources (revenue) until that time.
The City has the following items that qualify for reporting as deferred inflows of resources:
Difference in expected and actual pension experience – this difference is deferred and
amortized over a closed period that approximates the estimated average remaining lives of
all members on the measurement date.
Difference in projected and actual investment earnings for pension assets – the difference is
deferred and amortized over a closed five-year period.
Tax Abatements
The City provides tax abatement programs through economic development agreements designed
to promote local economic development and redevelopment; spur economic improvement;
stimulate business and commercial activity within the City; retain, create, and attract jobs; train
and retrain employees of local businesses; generate additional sales tax and enhance the property
tax base and economic condition of the City. Agreements generally contain recapture provisions
which may require repayment or termination if the recipients do not meet the required
provisions.
As of September 30, 2020, the City has two categories of tax abatement programs for economic
development:
Tax Abatements – The City has designated tax reinvestment zones and negotiated tax abatement
agreements with applicants as authorized by the Texas Tax Code Chapter 312 and administered
through the City’s Tax Abatement Policy to promote development and redevelopment within the
City. Such abatement agreements authorize the appraisal district to reduce the assessed value of
the taxpayer’s property by a percentage specified in the agreement, and the taxpayer will pay
taxes on the lower assessed value during the term of the agreement.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
50
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Tax Abatements – Continued
Recipients receiving tax abatements generally commit to the creation of new value of eligible
property improvements, either for new or improved existing facilities, made subsequent to the
agreement ranging from 35% to 75% for up to 10 years. Property taxes abated under this
program were $1,480 in fiscal year 2020, or less than 0.01% of the total property revenues.
General Economic Development Agreements – The City has entered into various agreements
under Texas Local Government Code Chapter 380 to stimulate economic development. Such
agreements may provide rebates, grants, or loans for promotion of economic development
including attracting new business and encouraging expansion or retention of existing businesses.
Rebates may be a flat amount or percentage of property taxes or sales taxes received by the City.
For fiscal year 2020, the City rebated $1,022,279 in sales taxes, or 4.63% of the total sales tax
revenues and $19,041 in property tax revenue, or less than 0.09% of the total property tax
revenues. These rebates are reflected in non-departmental expenditures in the general fund and in
general and administrative expenditures in the EDC fund.
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
State statutes and the City’s investment policy require that all uninsured deposits in financial
institutions be fully collateralized by U.S. Government obligations or its agencies or
instrumentalities or direct obligations of Texas or its agencies or instrumentalities that have a
market value of not less than the principal amount of the deposits or by a letter of credit issued
by a federal home loan bank. The City’s deposits were fully insured or collateralized as required
by state statutes as of September 30, 2020. At year-end, the carrying amount of the City’s
deposits was $5,251,609 with a bank balance of $5,652,551.
The total bank balance is covered by Federal Depository Insurance Corporation (FDIC)
insurance or by collateral for balances in excess of FDIC coverage. Collateral is held by Bank of
NY Mellon in the City’s name under a joint safekeeping agreement with Frost National Bank for
City deposits at Frost Bank. The market value of the collateral at the close of the fiscal year was
$1,446,146. The balances at Bank of Texas (BOT) are covered by FDIC insurance and collateral
pledged to cover the balances in the BOT short-term cash fund.
Investments
State statutes, City bond ordinances, and City resolutions authorize the City’s investments. The
City is authorized to invest in obligations of the U.S. Government and its agencies and
instrumentalities, obligations of the State of Texas and its agencies and instrumentalities, fully-
insured or collateralized certificates of deposit, fully-collateralized repurchase agreements and
reverse repurchase agreements, government pools, and no-load SEC-registered money market
funds consisting of any of these securities listed.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
51
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
Investments – Continued
Because the City is responsible for the investment portfolio of its component units, the City’s
investment practices and policies disclosed herein apply equally to its component units. During
the year ended September 30, 2020, the City did not own any types of securities other than those
permitted by statute.
Book Value Fair Value Level 2
% of
Portfolio WAM Rating
Rating
Agency
Interest bearing bank deposits $ 4,256,166 3%
Investments measured at amortized cost:
Investment Pools:
TexPool 38,223,654 31%38 AAAm S&P
TexSTAR 38,280,409 31%39 AAAm S&P
Investments measured at fair value:
U.S. Government Agency Securities:
FFCB 18,993,890 19,056,710 16%15 AA+/Aaa S&P/Moody's
FHLB 4,999,450 5,010,530 4%45 AA+/Aaa S&P/Moody's
FHLMC 15,600,000 15,602,596 13%42 AA+/Aaa S&P/Moody's
FAMCA 2,000,000 2,000,520 2%6Not rated
Total 122,353,569$ 41,670,356$ 100%
Investment Typ e
Weighted average maturity (WAM) of the portfolio by investment type categories reflected in the previous table is stated in
days. For the investment pools, the Reset WAM is presented. Investment type acronyms displayed in the previous table are
defined as follows: FFCB – Federal Farm Credit Bank, FHLB – Federal Home Loan Bank, FHLMC – Federal Home Loan
Mortgage Corporation, and FAMCA – Federal Agricultural Mortgage Corporation. The rating agency acronyms are defined
as follows: S&P – Standard and Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc. and Moody’s –
Moody’s Investor Service, Inc. Additional information about the rating agency or the significance of the ratings provided
may be obtained from the agency’s web site.
Fair Value
The City categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. GASB Statement No. 72, Fair Value
Measurement and Application provides a framework for measuring fair value which
establishes a three-level fair value hierarchy that describes the inputs that are used to measure
assets and liabilities.
Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active
markets that a government can access at the measurement date.
Level 2 inputs are inputs – other than quoted prices included within Level 1 that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
52
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
Investments – Continued
Fair Value – Continued
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to
Level 3 inputs. If a price for an identical asset or liability is not observable, a government
should measure fair value using another valuation technique that maximizes the use of
relevant observable inputs and minimizes the use of unobservable inputs. If the fair value of
an asset or a liability is measured using inputs from more than one level of the fair value
hierarchy, the measurement is considered to be based on the lowest priority level input that is
significant to the entire measurement.
The City has recurring fair value measurements as presented in the previous table. The City’s
investment balances and weighted average maturity of such investments are as shown.
Investment pools are measured at amortized cost and are exempt from fair value reporting.
U.S. Government Agency Securities classified in Level 2 of the fair value hierarchy are
valued using a matrix pricing technique. Matrix pricing is used to value securities based on
the securities’ relationship to benchmark quoted prices.
Both of the public fund investment pools (pools) in which the City is a participant use
amortized cost to value the portfolio. Amortized cost, in most cases, approximates the
market value of the securities held. In order to meet the criteria to be recorded at amortized
cost, investment pools must transact at a stable net asset value per share and maintain certain
maturity, quality, liquidity and diversification requirements within the investment pool. The
pools in which the City invests transact at a net asset value of $1.00 per share, have a
weighted average maturity of 60 days or less and weighted average life of 120 days or less,
hold investments that are highly rated by a nationally recognized statistical rating
organization, have no more than 5% of the portfolio with one issuer (excluding US
government securities), and can meet reasonably foreseeable redemptions.
The TexPool investment pool is an external investment pool valued at amortized costs.
TexPool, has a redemption notice period of one day and has no maximum transaction
amounts. The investment pools’ authorities may only impose restrictions on redemptions in
the event of a general suspension of trading on major securities markets, general banking
moratorium or national or state emergency that affects the pool’s liquidity.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
53
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
Investments – Continued
The TexSTAR investment pool is an external investment pool measured at amortized cost.
TexSTAR’s strategy is to seek preservation of principal, liquidity and current income through
investment in a diversified portfolio of short-term marketable securities. TexSTAR has a
redemption notice period of one day and may redeem daily. The investment pool’s authorities
may only impose restrictions on redemptions in the event of a general suspension of trading on
major securities markets, general banking moratorium or national or state emergency that affects
the pool’s liquidity.
TexPool falls under the purview of the Texas Comptroller of Public Accounts (Comptroller) who
is responsible for oversight of TexPool operations. Federated Hermes is responsible for
managing pool assets and day-to-day operations. TexSTAR is duly chartered and administered
by HilltopSecurities Inc. and JP Investment Management, Inc. TexSTAR has established a
governing board that is partially comprised of pool participants. Duties of the governing board
include oversight responsibility. The Comptroller and the governing board exercise oversight of
the pools’ activities via daily, weekly, and monthly reporting requirements.
Additionally, per the requirements of the Public Funds Investment Act (PFIA), all pools will
maintain an AAA or equivalent rating from at least one nationally recognized rating agency. The
PFIA also requires an annual examination of the financial statements of the pools by an
independent certified public accounting firm. In connection with the financial audit, a
compliance audit of management controls on investments and adherence to the investment
policies is also required.
Interest Rate Risk
In compliance with the City’s Investment Policy, as of September 30, 2020, the City minimized
the interest rate risk, the risk relating to the decline in market value of securities in the portfolio,
by: limiting the weighted average maturity to 365 days and the stated maturity to two years or
less, with the exception of securities purchases related to reserve funds; structuring the
investment portfolio so that securities mature to meet cash requirements for ongoing operations,
thereby avoiding the need to sell securities in the secondary market prior to maturity; monitoring
credit ratings of portfolio positions to assure compliance with rating requirements imposed by
the PFIA; and investing funds primarily in money market mutual funds, government investment
pools, and shorter-term securities.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
54
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
Interest Rate Risk – Continued
The following table details the maturity schedule for the City’s investment portfolio as of
September 30, 2020:
Maturity Schedule Book Value Fair Value % of Portfolio
Overnight 80,760,229$ 80,760,229$ 66%
Less than 1 month 1,000,000 1,000,530 1%
1 to 6 months 2,998,950 3,014,780 2%
6 to 9 months 5,000,239 5,022,160 4%
9 to 12 months 3,999,861 4,000,760 3%
12 to 18 months 10,995,790 11,029,800 9%
Over 18 months 17,598,500 17,602,327 15%
Total 122,353,569$ 122,430,586$ 100%
Credit Risk
In compliance with the City’s Investment Policy, as of September 30, 2020, the City minimized
credit risk losses due to default of a security issuer or backer, by: limiting investments to the
safest types of securities; primarily investing in U.S. Agency Bonds rated AA+ by Standard &
Poor’s; pre-qualifying financial institutions, brokers/dealers, and advisors with which the City
will do business; and diversifying the investment portfolio so that the potential losses on
securities are minimized.
Custodial credit risk – risk that a government will not be able to recover (a) deposits if the
depository financial institution fails or (b) the value of investment or collateral securities that are
in the possession of an outside party if the counterparty to the investment or deposit transaction
fails. To minimize such risk, the City requires collateralization of deposits in excess of FDIC
coverage, utilizes the delivery vs. payment method for investment purchases, and contracts with
a third-party collateral safekeeping agent.
Per the terms of its depository agreement, for bank deposits in excess of the coverage provided
by the FDIC, the City requires the depository bank to pledge to the City securities (collateral)
equal to 105% of the largest balances the City maintains in the bank. The percentage as shown
reflects the requirement based on market value of the pledged securities. The City actively
monitors and manages collateral levels for all deposits. On September 30, 2020, the City’s bank
balances were fully insured or collateralized.
The City’s depository bank also acts as its safekeeping agent per the terms of the depository
contract. City policy dictates that all securities rendered for payment will be sent delivery vs.
payment, meaning that the funds required for purchase of a security will not be released until the
safekeeping agent has received the security purchased in the City’s name. No broker holds City
funds. The City does not purchase securities from its depository bank or any subsidiary banks of
the same bank holding company.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
55
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2020, was as follows:
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Governmental activities
Capital assets not being depreciated
Land 33,438,577$ 966,596$ (31,524)$ 833,436$ 35,207,085$
Construction in progress 25,474,707 15,200,380 - (9,905,326) 30,769,761
Total capital assets
not being depreciated 58,913,284 16,166,976 (31,524) (9,071,890) 65,976,846
Capital assets being depreciated
Buildings 61,835,661 - (621,679) 451,969 61,665,951
Improvements other than buildings 13,786,873 190,186 - 612,960 14,590,019
Infrastructure 91,612,827 859,237 - 7,429,418 99,901,482
Machinery and equipment 10,918,875 1,650,407 (343,682) 577,543 12,803,143
Total capital assets
being depreciated 178,154,236 2,699,830 (965,361) 9,071,890 188,960,595
Less accumulated depreciation
Buildings (27,823,874) (1,795,998) 23,368 - (29,596,504)
Improvements other than buildings (5,173,695) (414,720) - - (5,588,415)
Infrastructure (44,791,865) (2,463,500) - - (47,255,365)
Machinery and equipment (7,095,567) (985,600) 324,969 - (7,756,198)
Total accumulated depreciation (84,885,001) (5,659,818) 348,337 - (90,196,482)
Total capital assets being
depreciated, net 93,269,235 (2,959,988) (617,024) 9,071,890 98,764,113
Total governmental fund capital
assets, net 152,182,519 13,206,988 (648,548) - 164,740,959
Internal service funds
Capital assets being depreciated
Machinery and equipment 14,416,755 1,330,990 (346,982) - 15,400,763
Total internal service assets
being depreciated 14,416,755 1,330,990 (346,982) - 15,400,763
Less accumulated depreciation
Machinery and equipment (8,707,374) (1,441,246) 328,304 - (9,820,316)
Total internal service funds
capital assets, net 5,709,381 (110,256) (18,678) - 5,580,447
Total governmental activities
capital assets, net 157,891,900$ 13,096,732$ (667,226)$ -$ 170,321,406$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
56
NOTE 3. CAPITAL ASSETS – CONTINUED
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Business-type activities
Capital assets not being depreciated
Land 3,618,545$ -$ -$ -$ 3,618,545$
Construction in progress 5,207,167 7,653,489 - (5,498,878) 7,361,778
Total capital assets
not being depreciated 8,825,712 7,653,489 - (5,498,878) 10,980,323
Capital assets being depreciated
Buildings 4,207,035 - - - 4,207,035
Equipment 3,959,914 6,736 (91,975) - 3,874,675
Improvements 21,637,760 52,623 (151,830) - 21,538,553
Utility system 116,006,208 1,860,913 - 5,498,878 123,365,999
Total capital assets being
depreciated 145,810,917 1,920,272 (243,805) 5,498,878 152,986,262
Less accumulated depreciation
Buildings (2,655,604) (124,217) - - (2,779,821)
Equipment (1,975,889) (300,117) 85,436 - (2,190,570)
Improvements (11,746,906) (612,828) 66,898 - (12,292,836)
Utility system (59,413,611) (2,744,521) - - (62,158,132)
Total accumulated depreciation (75,792,010) (3,781,683) 152,334 - (79,421,359)
Total capital assets being
depreciated, net 70,018,907 (1,861,411) (91,471) 5,498,878 73,564,903
Total business-type activities
capital assets, net 78,844,619$ 5,792,078$ (91,471)$ -$ 84,545,226$
Depreciation expense was charged as a direct expense to programs of the primary government as
follows:
Governmental activities
Culture and recreation 796,336$
Development 24,003
General administrative 3,145,761
Highways and streets 2,545,204
Public safety 589,760
Total depreciation expense - governmental activities 7,101,064$
Business-type activities
Water and wastewater 2,111,101$
Drainage utility 796,533
Golf course 402,723
Other recreation enterprises 471,326
Total depreciation expense - business-type activities 3,781,683$
Outstanding commitments at September 30, 2020, under authorized construction contracts, were
$6,783,505. These outstanding commitments are to be financed by available deposit and investment
balances, which include proceeds from previous bond issuances.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
57
NOTE 4. LONG-TERM DEBT
The following is a summary of long-term debt activity of the City for the year ended September 30,
2020:
Balance Balance Due
Beginning End within
of Year Increases Decreases of Year One Year
Governmental activities
General obligation bonds 8,805,000$ -$ (2,765,000)$ 6,040,000$ 1,925,000$
Certificates of obligation 46,200,000 7,115,000 (1,605,000) 51,710,000 2,140,000
Sales tax revenue bonds 1,565,000 4,120,000 (235,000) 5,450,000 205,000
Tax notes - 1,110,000 - 1,110,000 365,000
Premium on debt 1,979,025 524,348 (229,502) 2,273,871 173,726
Discount on debt (91,388) - 12,735 (78,653) (9,682)
Net pension liability 27,058,083 - (13,307,611) 13,750,472 -
Net OPEB liability 9,874,248 250,264 - 10,124,512 -
Compensated absences 2,076,934 432,351 (391,761) 2,117,524 211,752
Total governmental activities 97,466,902 13,551,963 (18,521,139) 92,497,726 5,010,796
Business-type activities
Water and sewer revenue bonds 19,905,000 - (1,180,000) 18,725,000 945,000
General obligation refunding bonds 4,295,000 - (490,000) 3,805,000 510,000
Premiums on debt 155,967 - (19,241) 136,726 19,241
Discounts on debt (22,754) - 1,625 (21,129) (1,625)
Net pension liability 5,115,878 - (2,591,566) 2,524,312 -
Net OPEB liability 1,838,674 48,737 - 1,887,411 -
Compensated absences 353,060 78,014 (53,192) 377,882 37,789
Total business-type activities 31,640,825 126,751 (4,332,374) 27,435,202 1,510,405
Total primary government 129,107,727$ 13,678,714$ (22,853,513)$ 119,932,928$ 6,521,201$
Governmental fund net pension liability and OPEB liability are typically liquidated by the
general, half-penny sales tax, crime control and prevention district, and juvenile case funds.
General Obligation Bonds
General obligation bonds and general obligation refunding bonds provide funds for the
acquisition and construction of major capital equipment, City facilities, and infrastructure assets
and the refunding of previously issued debt instruments. General obligation bonds require voter
authorization; whereas general obligation refunding bonds do not. General obligation bonds are
direct obligations of the City, payable from a continuing and direct ad valorem tax, levied within
the limits prescribed by law, on all taxable property within the City as provided in the ordinances
authorizing issuance of the bonds.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
58
NOTE 4. LONG-TERM DEBT – CONTINUED
General Obligation Bonds – Continued
The City is required to compute an interest and sinking fund tax rate sufficient to cover the
annual debt service requirements inclusive of anticipated drawdown of reserves, transfers or
revenues from self-supporting debt systems, and other miscellaneous sources.
As of September 30, 2020, general obligation bonds currently outstanding are as follows:
Interest Maturity Principal
Rate % Dated Date Outstanding
General Obligation Bonds
Taxable Refunding, Series 2010 3.85% –
4.4%
08/15/2010 08/01/2025 $3,135,000
Refunding, Series 2011 4% 01/15/2011 08/15/2021 860,000
Refunding, Series 2012 3% – 4% 12/01/2011 02/15/2024 2,045,000
Refunding, Series 2012A 2% – 3% 11/01/2012 02/15/2027 3,805,000
Total $9,845,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal
Year Principal Interest Principal Interest Total
2021 1,925,000$ 229,114$ 510,000$ 84,125$ 2,748,239$
2022 1,105,000 152,439 520,000 71,275 1,848,714
2023 1,140,000 110,539 530,000 60,444 1,840,983
2024 1,185,000 67,099 540,000 48,738 1,840,837
2025 685,000 30,140 555,000 36,072 1,306,212
2026-2027 - - 1,150,000 30,097 1,180,097
Total 6,040,000$ 589,331$ 3,805,000$ 330,751$ 10,765,082$
Governmental Activities Business-Typ e Activities
The business-type activities general obligation refunding bonds outstanding were issued to
refund previously issued golf course debt. The City anticipates repayment of the debt will occur
from the golf system revenues. However, these plans are subject to change.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
59
NOTE 4. LONG-TERM DEBT – CONTINUED
Certificates of Obligation
Certificates of obligation are issued for many of the same purposes as general obligation bonds,
but certificates do not require voter authorization nor may they be used to refund existing debt.
The certificates constitute direct obligations of the City, payable from (i) the levy and collection
of a direct and continuing ad valorem tax, levied within the limits prescribed by law, on all
taxable property within the City, and (ii) a limited pledge (not to exceed $1,000) of the Net
Revenues of the City’s waterworks and sanitary sewer system.
The City currently has the following certificates of obligation outstanding as of the end of the
fiscal year:
Interest Maturity Principal
Rate % Dated Date Outstanding
Certificates of Obligation
Series 2011 4% –
4.25%
01/15/2011 08/15/2030 $1,925,000
Series 2014
Series 2015
Series 2016
Series 2018
Series 2019
Series 2020
3% – 5%
3% – 5%
2% – 4%
3% – 4%
3% – 5%
2% – 3.5%
10/15/2014
10/27/2015
01/12/2016
03/01/2018
01/15/2019
01/14/2020
08/15/2034
02/15/2035
02/15/2041
02/15/2038
02/15/2039
02/15/2040
4,770,000
2,665,000
15,025,000
8,620,000
11,590,000
7,115,000
Total $51,710,000
Annual debt service requirements to maturity for the certificates of obligation are as follows:
Fiscal Governmental Activities
Year Principal Interest Total
2021 $ 2,140,000 $ 1,701,812 $ 3,841,812
2022 2,205,000 1,631,488 3,836,488
2023 2,290,000 1,553,238 3,843,238
2024 2,365,000 1,464,262 3,829,262
2025 2,450,000 1,386,550 3,836,550
2026-2030 13,610,000 5,582,707 19,192,707
2031-2035
2036-2040
14,435,000
11,635,000
3,158,444
987,328
17,593,444
12,622,328
2041 580,000 9,425 589,425
Total $ 51,710,000 $17,475,254 $69,185,254
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
60
NOTE 4. LONG-TERM DEBT – CONTINUED
Certificates of Obligation – Continued
On January 14, 2020, the City Council approved the issuance of $7,115,000 of Tax and
Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, series 2020
for the purpose of paying contractual obligations to be incurred for (i) the construction of public
works, to wit; acquiring, designing, constructing, improving, expanding, and equipping one or
more fire stations (including the demolition of existing fire Station #1); and (ii) professional
services rendered in relation to such projects and the financing thereof.
Revenue Bonds
Each series of revenue bonds is backed by the pledged revenue sources identified in the bond
ordinances authorizing issuance of the bonds. The purpose and primary pledged revenue sources
of each type of revenue bond are summarized as follows.
Half-penny sales tax fund issues sales tax revenue bonds (STRB) to finance library, park, and
economic development projects throughout the City. Sales tax revenue bonds are special
obligations of the Euless Development Corporation (EDC), payable solely from and secured by a
lien on and pledge of certain Pledged Revenues which includes the gross proceeds of a ½¢ sales
and use tax levied within the City for the benefit of the EDC. The EDC is reflected in the
financial statements of the City as a special revenue fund. Accordingly, the EDC’s debt is
reflected in governmental activities debt.
Water and wastewater fund issues revenue bonds (W&WW) for the construction of and
improvement to the City’s combined waterworks and sanitary sewer infrastructure or to refund
previously issued revenue bonds. Water and sewer revenue bonds and refunding bonds are
payable solely from and equally secured by a first lien on and pledge of the net revenues of the
City’s water and wastewater system.
The City currently has the following revenue bonds outstanding at the end of the fiscal year:
Interest Maturity Principal
Rate % Dated Date Outstanding
Revenue Bonds
W&WW Refunding, Series 2012 2.03% 03/29/2012 07/15/2024 $ 535,000
W&WW Improvement, Series 2013 3.625% – 5% 06/25/2013 07/15/2033 1,150,000
W&WW Improvement, Series 2015A 0.59% - 1.98% 06/15/2015 07/15/2035 3,585,000
W&WW Improvement, Series 2015B
W&WW Improvement, Series 2018
W&WW Improvement, Series 2019
STRB, Series 2018
STRB, Series 2019
0.29% - 1.68%
0.05% - 1.49%
0.26% - 1.66%
3% – 4%
2.5% – 4%
06/15/2015
04/12/2018
04/25/2019
10/15/2018
12/12/2019
07/15/2035
07/15/2038
07/15/2049
09/15/2038
09/15/2039
1,900,000
2,530,000
9,025,000
1,505,000
3,945,000
Total $ 24,175,000
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
61
NOTE 4. LONG-TERM DEBT – CONTINUED
Revenue Bonds – Continued
Annual debt service requirements to maturity for revenue bonds are as follows:
Fiscal
Governmental Activities Business-Type
Activities
Year Principal Interest Principal Interest Total
2021 $205,000 $188,725 $945,000 $271,034 $1,609,759
2022 220,000 181,125 945,000 263,393 1,609,518
2023 225,000 172,975 960,000 254,746 1,612,721
2024 230,000 164,625 965,000 244,786 1,604,411
2025 245,000 156,075 840,000 233,658 1,474,733
2026-2030 1,355,000 630,875 4,360,000 1,004,234 7,350,109
2031-2035 1,600,000 380,025 4,505,000 630,314 7,115,339
2036-2040
2041-2045
2046-2049
1,370,000
–
–
105,850
–
–
2,040,000
1,700,000
1,465,000
340,157
203,135
60,973
3,856,007
1,903,135
1,525,973
Total $5,450,000 $1,980,275 $18,725,000 $3,506,430 $29,661,705
On December 12, 2019, the Euless Development Corporation, a blended component unit of the
City, issued $4,120,000 of Euless Development Corporation Sales Tax Revenue Bonds, Series
2019. Proceeds will be used for construction of parks and park facilities, specifically Texas Star
Sports Complex Phase VII Construction, as approved in the Capital Improvements Program
Budget, and the financing thereof.
The gross ½¢ sales tax revenues of the EDC recognized in the year ending September 30, 2020
totaled $5,521,314. The principal and interest payments on the EDC debt for the same period
totaled $391,190 which equates to approximately 7.1% of the gross ½¢ sales tax revenues.
The recognized net revenues of the water and wastewater fund totaled $2,038,421 for the year
ending September 30, 2020. Principal and interest payments on the water and sewer revenue
bonds totaled $1,486,354 which equates to approximately 72.9% of net system revenues.
In accordance with the water and sewer revenue and refunding bond ordinances, the following
reserves were established:
Reserve for revenue bond debt service – to be used for retirement of the current portion of
principal and interest payments due.
Reserve for emergency – to be used for payment of extraordinary repairs or replacements to
the system necessitated by an emergency for which no other funds are available.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
62
NOTE 4. LONG-TERM DEBT – CONTINUED
Revenue Bonds – Continued
Revenue bond reserve – a reserve established at the time of issuance pursuant to the revenue
bond covenants which will be used for principal and interest payments in the event of default
by the issuer.
Should the reserve for revenue bond debt service and/or the revenue bond reserve prove
deficient, the reserve for emergency shall be used for the purpose of meeting principal and/or
interest requirements of the bonds.
All funding requirements for the above reserves were met at September 30, 2020.
Investments of funds included in the bond reserve and emergency accounts are restricted to
obligations of the United States or its agencies or instrumentalities (except for mortgage pass-
through securities).
Water and sewer revenue bonds authorized and unissued as of September 30, 2020, amounted to
$1,200,000. The water and sewer bonds were authorized in 1970, and currently the City Council
has no intent to issue these bonds.
Tax Notes
Tax notes are issued for the purchase of certain specified materials, supplies, equipment, and
machinery for the City’s authorized needs and purposes. In 2020, tax notes were issued to pay
contractual obligations incurred (i) primarily for the purchase of public safety related equipment
and street maintenance equipment; and (ii) professional services rendered in relation thereto.
The City currently has the following tax notes outstanding as of the end of the fiscal year:
Interest Maturity Principal
Rate % Dated Date Outstanding
Tax Notes
Series 2020 1.07% 06/25/2020 02/15/2023 $ 1,110,000
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
63
NOTE 4. LONG-TERM DEBT – CONTINUED
Tax Notes – Continued
Annual debt service requirements to maturity for the tax notes are as follows:
Fiscal
Governmental Activities
Year Principal Interest Total
2021 $365,000 $11,362 $376,362
2022 370,000 6,106 376,106
2023 375,000 2,100 377,100
Total $1,110,000 $19,568 $1,129,568
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a contract dated January 21, 1972, with Trinity River Authority (TRA)
whereby TRA agreed to provide treated water to the City. This contract was for an original term of
thirty-five (35) years and continues in effect until all bonds, or any bonds issued to refund same,
have been paid in full. Additionally, on October 10, 1973, the City entered into a contract with TRA
to provide wastewater treatment services to the City. The contract remains in force and effect for a
period of fifty (50) years and thereafter until any bonds, or any bonds issued to refund same, have
been paid in full. Payments by the City are based on metered usage at rates designed to charge the
City a prorata share of TRA's annual operating and maintenance expenses and principal and interest
requirements on bonds issued by TRA. Payments under these contracts approximated $13,265,852
and are included as operating expenses of the water and wastewater fund.
The City entered into a 20-year contract dated February 2, 2010, with the City of Fort Worth (Fort
Worth) whereby Fort Worth agreed to provide reclaimed water service to the City. Payments by the
City are based on metered volume. Payments under this contract were $367,201 in the year ended
September 30, 2020 and are included as operating expenses of the water and wastewater fund.
The City is involved in a number of lawsuits arising in the ordinary course of business. In the
opinion of the City's legal counsel and management, any liability resulting from such litigation
would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The water and wastewater enterprise fund historically bears the major portion of the operating costs
of the City's service center, which provides services to all City departments.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
64
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the operations of
those funds.
General Debt Service Street CIP
Non-major
Governmental
Subtotal
Governmental
Internal
Service
Transfers out
General -$ -$ 975,000$ 223,416$ 1,198,416$ 242,000$
Debt service - - - - - 700,000
Car rental tax 1,630,570 - - 3,103,820 4,734,390 349,253
Water and wastewater 1,369,262 - - - 1,369,262 242,000
Drainage utility 41,850 - - - 41,850 -
Nonmajor governmental - 2,412,210 116,250 250,000 2,778,460 -
Total transfers in 3,041,682$ 2,412,210$ 1,091,250$ 3,577,236$ 10,122,378$ 1,533,253$
Water and Drainage Golf Other Recreation Subtotal Total
Wastewater Utility Course Enter prise Enterprise Transfers Out
Transfers out
General -$ -$ 13,425$ -$ 13,425$ 1,453,841$
Debt service - - - - - 700,000
Car rental tax - - 400,000 - 400,000 5,483,643
Water and wastewater - - - - - 1,611,262
Drainage utility - - - - - 41,850
Nonmajor governmental - - 441,807 3,906 445,713 3,224,173
Total transfers in -$ -$ 855,232$ 3,906$ 859,138$ 12,514,769$
Transfers in
Transfers in
Ma jor Enterprise
Transfers are primarily used to move funds from:
The general fund to the street CIP fund and non-major governmental funds to satisfy grant
matching requirements and to fund approved capital projects and to the golf course fund for
sales tax rebates.
The car rental tax fund, the water and wastewater fund, and the drainage utility fund to the
general fund for general and administrative charges.
The car rental tax fund to the non-major governmental funds to provide funding for approved
capital projects.
The non-major governmental funds to non-major governmental funds to provide funding for
approved projects.
The non-major governmental funds to debt service funds for debt payments on previously
issued debt.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
65
NOTE 7. INTERFUND TRANSFERS – CONTINUED
The general fund and water and wastewater fund to the internal service funds for workers’
compensation and general liability insurance claims.
The car rental fund and debt service fund to the internal service funds for equipment
purchases.
The non-major governmental funds to the golf course fund to cover a portion of the operating
and debt costs associated with the conference center.
The non-major governmental funds to the other recreation enterprises fund to provide
funding for approved projects.
The car rental tax fund to the golf course fund for operations.
NOTE 8. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The City participates in the
Texas Municipal League Joint Self-Insurance Fund (TMLIF) to provide both general liability and
property insurance.
The City, along with other participating entities, contributes annual amounts determined by TMLIF
management. As claims arise they are submitted to and paid by TMLIF. The City is not liable for
payments beyond their annual contributions to TMLIF and related deductibles.
In fiscal year 2006, the City contracted with the Texas Municipal League Intergovernmental Risk
Pool to provide workers’ compensation insurance and effectively discontinued being self-insured for
workers’ compensation claims. This policy has no deductibles, includes all claims handling, and has
a fixed premium.
In fiscal years prior to 2006, the City was self-insured for workers' compensation claims.
Contributions were made to a separate risk management fund by other funds and were available to
pay claims, claim reserves, and administrative costs of the program. The City remains liable under
its self-insurance program for any claims occurring prior to October 1, 2005.
The City provides employee health insurance coverage on a self-insured basis. Premiums are paid
into a separate insurance fund by other funds, by the City's employees, and by retirees. The
premiums are used to fund claims, administrative costs of the program, and claim reserves. An
excess coverage insurance policy covers individual claims in excess of $125,000, an aggregated
specific deductible of $110,000, and aggregate claims in excess of $4,217,094. During fiscal year
2020, the City and the City's employees contributed approximately $4,645,364 and $1,443,724
respectively, for medical coverage.
The City's contributions are accounted for as interfund services provided and used. Claims liabilities
are based on estimates of the ultimate cost of claims (including future claim adjustment expenses)
that have been reported but not settled, and of claims that have been incurred but not reported, and
are accounted for in the Insurance Internal Service Fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
66
NOTE 8. RISK MANAGEMENT – CONTINUED
Changes in the balances of health, dental, and prescription claims liabilities for the years ended
September 30, 2020 and 2019 are as follows:
2020 2019*
Unpaid claims, beginning of year 433,000$ 608,000$
Incurred claims 3,483,252 3,509,450
Paid claims (3,277,252) (3,684,450)
Unpaid claims, end of year 639,000$ 433,000$
* restated to include prescription costs
Settlement amounts have not exceeded stop loss insurance coverage for the year ended
September 30, 2020 or any of the three preceding years ended September 30.
NOTE 9. DEFINED BENEFIT PENSION PLAN
Plan Description
The City participates as one of 888 plans in the nontraditional, joint contributory, hybrid defined
benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is
an agency created by the State of Texas and administered in accordance with the TMRS Act,
Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer
retirement system for municipal employees in the State of Texas. The TMRS Act places the
general administration and management of the System with a six-member Board of Trustees.
Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is
not fiscally dependent on the State of Texas. TMRS’s defined benefit pension plan is a tax-
qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly
available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability and death benefits. Benefit provisions are adopted by the
governing body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with
interest, and the city-financed monetary credits with interest were used to purchase an annuity.
Members may choose to receive their retirement benefit in one of seven payment options.
Members may also choose to receive a portion of their benefit as a Partial Lump Sum
Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of
the member’s deposits and interest.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
67
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Benefits Provided – Continued
Plan provisions for the City are as follows:
Employee deposit rate 7%
Matching ratio (City to employee) 2 to 1
A member is vested after 5 years
Service retirement eligibility 20 years at any age, 5 years at 60 and above
Updated service credit 100% Repeating, Transfers
Annuity increase (to retirees) 70% of CPI
Employees Covered By Benefit Terms
At the December 31, 2019 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 263
Inactive employees entitled to, but not yet receiving benefits 168
Active employees 383
Total 814
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross
earnings, and the city matching percentages are either 100%, 150%, or 200%, both as adopted by
the governing body of the City. Under the state law governing TMRS, the contribution rate for
each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial
cost method. The actuarially determined rate is the estimated amount necessary to finance the
cost of benefits earned by employees during the year, with an additional amount to finance any
unfunded accrued liability.
Employees of the City were required to contribute 7% of their annual gross earnings during the
year ended September 30, 2020. The contribution rates for the City were 17.51% and 17.70% in
calendar years 2019 and 2020, respectively. The City’s contributions to TMRS for the year
ended September 30, 2020 were $5,532,423 and were equal to the required contributions.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2019, and the Total
Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an
actuarial valuation as of that date.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
68
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Actuarial Assumptions
The TPL in the December 31, 2019 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 2.75% per year
Investment rate of return 6.75%, net of pension plan investment expense,
including inflation
Salary increases were based on a service-related table. Mortality rates for active members are
based on the PUB(10) mortality tables with the Public Safety table used for males and the
General Employee table used for females. Mortality rates for healthy retirees and beneficiaries
are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates for
actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale
UMP to account for future mortality improvements. For disabled annuitants, the same mortality
tables for healthy retirees is used with a 4-year set-forward for males and a 3-year set-forward for
females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and females
respectively, to reflect the impairment for younger members who become disabled. The rates are
projected on a fully generational basis by Scale UMP to account for future mortality
improvements subject to the floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the
experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018.
They were adopted in 2019 and first used in the December 31, 2019 actuarial valuation. The
post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based on the
Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31,
2013. Plan assets are managed on a total return basis with an emphasis on both capital
appreciation as well as the production of income in order to satisfy the short-term and long-term
funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation. In determining their best estimate of a recommended investment
return assumption under the various alternative asset allocation portfolios, GRS focused on the
area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and
(2) the geometric mean (conservative) with an adjustment for time (aggressive).
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
69
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Actuarial Assumptions – Continued
The target allocation and best estimates of real rates of return for each major asset class in fiscal
year 2020 are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected Real
Rate of Return (Arithmetic)
Global Equity 30.0% 5.30%
Core Fixed Income 10.0% 1.25%
Non-Core Fixed Income 20.0% 4.14%
Real Return 10.0% 3.85%
Real Estate 10.0% 4.00%
Absolute Return 10.0% 3.48%
Private Equity 10.0% 7.75%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash
flows used to determine the discount rate assumed that employee and employer contributions
will be made at the rates specified in statute. Based on that assumption, the pension plan’s
Fiduciary Net Position was projected to be available to make all projected future benefit
payments of current active and inactive employees. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to
determine the Total Pension Liability.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
70
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Changes in the Net Pension Liability
TPL
(a)
Plan Fiduciary
Net Position
(b)
NPL
(a) - (b)
Balance at 12/31/2018 217,806,715$ 185,632,754$ 32,173,961$
Changes for the year:
Service cost 5,375,963 - 5,375,963
Interest 14,557,634 - 14,557,634
Change of benefit terms - - -
Difference between expected
and actual experience (171,396) - (171,396)
Changes of assumptions 145,747 - 145,747
Contributions - employer - 5,192,816 (5,192,816)
Contributions - employee - 2,077,001 (2,077,001)
Net investment income - 28,704,340 (28,704,340)
Benefit payments, including
refunds of employee contributions (9,652,090) (9,652,090) -
Administrative expense - (162,161) 162,161
Other changes - (4,871) 4,871
Net changes 10,255,858 26,155,035 (15,899,177)
Balance at 12/31/2019 228,062,573$ 211,787,789$ 16,274,784$
Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of
6.75%, as well as what the City’s net pension liability would be if it were calculated using a
discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than
the current rate:
1% Decrease in
Discount Rate
(5.75%)
Discount Rate
(6.75%)
1% Increase in
Discount Rate
(7.75%)
City’s net pension liability 48,279,842$ 16,274,784$ (10,077,565)$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-
issued TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
71
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended September 30, 2020, the City recognized pension expense of $5,409,693.
At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience -$ 236,552$
Difference between projected and
actual investment earnings - 6,523,319
Contributions subsequent to the
measurement date 4,040,206 -
Total 4,040,206$ 6,759,871$
$4,040,206 reported as deferred outflows of resources related to the pension resulting from
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability for the year ended September 30, 2021. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Measurement Net Deferred
Year Outflows/(Inflows)
December 31, of Resources
2020 (2,049,060)$
2021 (1,937,343)
2022 471,072
2023 (3,244,540)
Total (6,759,871)$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
72
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS
Postemployment Healthcare Plan
Plan Description
The City adopted the City of Euless Post-Employment Benefits Trust (OPEB Trust) by passage
of Resolution No. 09-1319 on September 8, 2009 which authorized participation in the PARS
Public Agencies Post-Retirement Health Care Plan Trust, including the City of Euless Public
Agencies Post-Retirement Health Care Plan (the Plan), as part of the City’s Retirement Program.
Article III of the Public Agencies Post-Retirement Health Care Plan Master Plan Document as
adopted provides for the determination of eligibility under the plan to each participating
Employer to the extent provided in the Employer’s applicable policies.
The City’s policies with regard to post-employment healthcare coverage are governed by the
City of Euless Medical and Dental Plan, the City’s group health insurance plan, the benefits of
which are established by management.
Benefits provided. The City provides post-employment medical, dental, life, and vision benefits
under the Plan to eligible retirees and dependents qualifying as one of the eligible classes of
dependents as described in the Plan. To be eligible for coverage under the Plan, an employee
must retire with the City of Euless and be eligible for retirement through TMRS. TMRS
retirement eligibility requirements are described in detail in Note 9. Additionally, written
application to enroll himself/herself and all eligible dependents (for which coverage is elected) in
the Plan must be made by the employee prior to or on the retirement date.
The Plan provides lifetime benefits or until Medicare eligibility is attained. Regardless of
Medicare enrollment status, the Plan will base payment of benefits as though Medicare were
responsible for primary payment of benefits insomuch as allowed by Federal law.
The Plan is a single-employer defined benefit healthcare plan administered by the City Manager,
his/her successor, or his/her designee. Separate financial statements for the Plan are not issued,
but rather are included in the financial statements of the City which are available on-line at
https://www.eulesstx.gov/departments/finance/cafr.
The OPEB Trust is an agent multiple-employer trust arrangement established to provide
economies of scale and efficiency of administration to public agencies. The OPEB Trust is
established as a tax-exempt trust within the meaning of Section 115 of the Internal Revenue
Code and is intended to hold the assets used to fund the City’s post-employment benefits offered
by the City to its employees as specified in the City’s policies.
The OPEB Trust is administered by Public Agency Retirement Services pursuant to the Trust
Agreement adopted on September 8, 2009 by the City Council with passage of Resolution No.
09-1319. Upon adoption of the Trust Agreement, a separate Agency Account was established
under the OPEB Trust for the City, and all assets of the Trust attributable to the City are held in
the City’s Agency Account. The assets of the Trust are available only to pay post-employment
healthcare benefits of eligible employees of the City and their dependents and other associated
administrative costs.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
73
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Policy
A Participant in the OPEB Trust is required from time-to-time to contribute to its Agency
Account an amount determined by such Participant at its sole discretion. Such amount may, but
need not, equal such Participant’s actuarially determined contribution (ADC) as determined in
accordance with GASB 74. However, it is currently the intent of the Plan Administrator to
annually fund an amount equal to, or in excess of, the ADC. This intent is subject to change and
is subject to annual appropriation.
Contribution requirements of Plan members and the City are determined by the Plan
Administrator and may be amended by same from time to time. Plan members contribute:
Medical Plan Medical Plan Dental Vision
Retiree Only 935.14$ 761.18$ 33.10$ 7.85$
Retiree plus Children 1,776.78 1,446.24 62.89 12.83
Retiree plus Spouse 2,150.83 1,750.71 76.13 15.24
Retiree plus Family 2,711.92 2,207.42 96.00 21.53
Monthl y Contribution
Retired employees meeting all eligibility requirements as set forth in the Plan that were hired
prior to October 1, 2006 and are either:
a) Retired and enrolled in the Plan on or prior to September 30, 2007; or
b) Retired and not enrolled in the Plan on or prior to September 30, 2007 and meet
guidelines for reinstatement to the Plan; or
c) Employees who were not retired as of September 30, 2007 that retire with at least ten
years of service to the City of Euless and have a combined age and years of service equal
to at least 70
will qualify for a service discount on their total premium, subject to annual appropriation, as set
forth in the following table.
Retired employees meeting all eligibility requirements as set forth in the Plan that were hired
after October 1, 2006 and before October 1, 2014 retiring with a minimum of 20 years of service
with a combined age and years of service to the City of Euless equal to at least 80 qualify for a
service discount on their total premium, subject to annual appropriation, as set forth in the
following:
Service Retiree Retiree+ Retiree Retiree+ Retiree Retiree+
10 to 14 years 15% 30% N/A N/A N/A N/A
15 to 19 years 25% 40% N/A N/A N/A N/A
20 to 24 years 35% 50% 35% 50% N/A N/A
25 to 29 years 50% 65% 50% 65% N/A N/A
30+ years 60% 75% 60% 75% N/A N/A
Hired Pre-10/2006 Hired Post-10/2006 Hired Post-10/2014
Discounts on Premiums
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
74
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Policy – Continued
Retirees are permitted to participate with active employees in the healthcare plan but retirees
must pay all premiums (less applicable discounts) assigned to them. The City will continue to
apply the applicable discount to surviving spouse/dependents based upon a deceased employee’s
years of service. Employees hired on or after October 1, 2014 will not be eligible for premium
discounts regardless of years of service.
Per the requirements of GASB 74 and GASB 75, the following data is presented.
Plan Membership
At the October 1, 2019 actuarial valuation and measurement date, plan membership consisted of
the following:
Inactive plan members or beneficiaries currently receiving benefit payments 63
Inactive plan members entitled to, but not yet receiving benefit payments 28
Active plan members 769
860
Investments
Investment policy. The City’s policy in regard to the allocation of invested assets is established
and may be amended by the City Manager. The City Council appointed the City Manager or her
successor or her designee as the City’s Plan Administrator. The City Manager selected the
balanced, moderately aggressive actively-managed investment option (HighMark PLUS) to
provide growth of principal and income. While dividend and interest income are an important
component of the objective’s total return, it is expected that capital appreciation will comprise a
larger portion of the total return. The portfolio will be allocated between equity and fixed
income investments.
Asset Class
Strategic
Range
Target
Allocation
9/30/2020
Allocation
Equity 50-70% 60% 60%
Fixed income 30-50% 35% 39%
Cash 0-20% 5% 1%
100% 100%
Rate of return. For the year ended September 30, 2020, the annual money-weighted rate of
return on investments, net of investment expense, was 7.58%. The money-weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
75
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Investments – Continued
Concentrations. The following investments comprised 5% or more of the OPEB plan’s fiduciary
net position as of September 30, 2020:
% of
Asset Class Investment Vehicle Portfolio
Equity Vanguard Growth & Income Adm 15.28%
Equity Dodge & Cox Stock Fund 5.11%
Equity Columbia Contrarian Core Inst 3 6.72%
Equity Hartford Schroders Emerging Mkts Eq 5.08%
Fixed Income Vanguard Short-Term Corp Investment Grade 6.99%
Fixed Income PGIM Total Return Bond R6 10.66%
Fixed Income PIMCO Total Rturn Instl Fund 10.64%
Fixed Income DoubleLine Core Fixed Income I 10.63%
Net OPEB Liability of the City
The components of the net OPEB liability of the City at September 30 were as follows:
2020 2019
Total OPEB liability 20,715,465$ 19,126,287$
Plan fiduciary net position (8,703,542) (7,413,365)
City's net OPEB liability 12,011,923$ 11,712,922$
Plan fiduciary net position as a percent
of the total OPEB liability 42.01% 38.76%
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members at that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities and the actuarial value of plan assets, consistent with the long-term perspective
of the calculations.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
76
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Actuarial Methods and Assumptions – Continued
An actuarial valuation was performed as of October 1, 2019 using the entry age normal actuarial
cost method. The liability was then projected forward to the measurement date of September 30,
2020. The actuarial assumptions include:
Inflation 2.5% per annum
Salary increases 3.00% per annum
Investment rate of return 7.50%
Healthcare cost trend rates 10.87% with annual increases/decreases to
an ultimate rate of 3.60% in 2042
Dental cost trend rates 3.00%
Mortality rates were based on the sex distinct PUB 2010 general employee/retiree headcount
weighted mortality table with mortality improvements scale MP-2019. The plan has not had a
formal actuarial experience study performed.
The expected return of each asset class is determined through a combination of historical rates of
return, valuation projections, and economic expectations. Expected rates of return are developed
and annually reviewed by HighMark’s Asset Allocation Committee. The long-term expected
rate of return on OPEB plan investments is then calculated by weighting the returns for each
asset class according to the exposure as determined by the current strategic allocation. The
anticipated long-term rate of return is 6.71% with an expected standard deviation of 9.55%.
Anticipated long-term returns by asset class are not available.
Discount rate. The discount rate used to measure the total OPEB liability was 7.5%. The
projection of cash flows used to determine the discount rate assumed the City contributions will
be made at rates at least equal to the actuarially determined contribution rates. Based on those
assumptions, the OPEB Plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on OPEB plan investments was applied to all periods of projected benefit payments
to determine the total OPEB liability.
Sensitivity of the OPEB liability to changes in the discount rate. The following presents the net
OPEB liability of the City as well as what the City’s net OPEB liability would be if it were
calculated using a discount rate that is one percentage point lower (6.5%) or one percentage point
higher (8.5%) than the current discount rate:
1% Decrease
(6.5%)
Discount Rate
(7.5%)
1% Increase
(8.5%)
Net OPEB liability 14,643,517$ 12,011,923$ 7,376,853$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
77
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Actuarial Methods and Assumptions – Continued
Sensitivity of the OPEB liability to changes in the healthcare cost trend rates. The following
presents the net OPEB liability of the City as well as what the City’s net OPEB liability would be
if it were calculated using healthcare cost trend rates that are one percentage point lower or one
percentage point higher than the current healthcare cost trend rates:
1% Decrease
Current Trend
Rates 1% Increase
Net OPEB liability 8,769,842$ 12,011,923$ 15,484,791$
Net OPEB Liability
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability
(a) - (b)
Balance at 9/30/2019 19,126,287$ 7,413,365$ 11,712,922$
Changes for the year:
Service cost 267,668 - 267,668
Interest 1,379,257 - 1,379,257
Change of benefit terms - - -
Difference between expected
and actual experience (627,155) - (627,155)
Changes of assumptions 1,322,815 - 1,322,815
Difference in expected and
actual net investment income - 11,026 (11,026)
Contributions - employer - 1,455,171 (1,455,171)
Contributions - other 276,885 276,885 -
Net investment income - 577,387 (577,387)
Benefit payments, including
refunds of employee contributions (898,811) (898,811) -
Administrative expense (131,481) (131,481) -
Net changes 1,589,178 1,290,177 299,001
Balance at 9/30/2020 20,715,465$ 8,703,542$ 12,011,923$
Increase (Decrease)
Assumption Changes. Since the prior valuation, the mortality tables were updated to the new sex
distinct headcount weighted PUB-2010 general employees/retirees mortality tables, recently
released by the SOA and based upon public plan experience only. Also, the mortality
improvement scale was updated to use the MP-2019 table.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
78
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended September 30, 2020, the City recognized OPEB expense of $1,352,033.
At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience 46,433$ -$
Changes in actuarial assumptions 814,585 -
Difference between projected and
actual investment earnings 142,337 -
Total 1,003,355$ -$
Amounts reported as deferred outflows and inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Fiscal Year Net Deferred
Ending Outflows/(Inflows)
September 30, of Resources
2021 282,495$
2022 282,496
2023 142,430
2024 97,174
2025 99,380
2026 99,380
Total 1,003,355$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
79
NOTE 11. SUBSEQUENT EVENT
COVID-19
The extent of the operational and financial impact the COVID-19 pandemic may have on the
City has yet to be determined and is dependent on its duration and spread, any related operational
restrictions, and the overall economy. The City is unable to accurately predict how COVID-19
will affect the results of its operations because the virus’s severity and the duration of the
pandemic are uncertain.
80
81
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
FOR THE MEASUREMENT YEAR ENDED DECEMBER 31
2019*
2018*
2017*
2016*
2015*
2014*
Total pension liability
Service cost
$
5,375,963
$
5,253,722
$
5,149,378
$
4,868,631
$ 4,539,237
$ 4,331,759
Interest (on the total pension liability)
14,557,634
13,864,487
13,129,452
12,462,429
12,302,430
11,698,243
Difference in expected and actual experience
(171,396)
(206,128)
169,296
(361,966)
(579,992)
(752,184)
Change in assumptions
145,747
-
-
(595,757)
Benefit payments, including refunds of employee contributions
(9,652,090)
(7,756,635)
(7,465,146)
(6,990,135)
(6,911,946)
(6,588,671)
Net change in total pension liability
10,255,858
11,155,446
10,982,980
9,978,959
8,753,972
8,689,147
Total pension liability, beginning of year
217,806,715
206,651,269
195,668,289
185,689,330
176,935,358
168,246,211
Total pension liability, ending of year
$
228,062,573
$
217,806,715
$
206,651,269
$
195,668,289
$ 185,689,330
$ 176,935,358
Plan fiduciary net position
Contributions - employer
$
5,192,816
$
5,146,736
$
5,027,855
$
4,691,585
$ 4,644,735
$ 4,787,533
Contributions - employee
2,077,001
2,023,998
1,981,736
1,877,709
1,801,285
1,789,251
Net investment income
28,704,340
(5,754,957)
23,456,668
10,748,002
235,212
8,631,343
Benefit payments, including refunds of employee contributions
(9,652,090)
(7,756,635)
(7,465,146)
(6,990,135)
(6,911,946)
(6,588,671)
Administrative expense
(162,161)
(111,206)
(121,542)
(121,371)
(143,262)
(90,113)
Other
(4,871)
(5,810)
(6,160)
(6,539)
(7,076)
(7,409)
Net change in plan fiduciary net position
26,155,035
(6,457,874)
22,873,411
10,199,251
(381,052)
8,521,934
Plan fiduciary net position - beginning
185,632,754
192,090,628
169,217,217
159,017,966
159,399,018
150,877,084
Plan fiduciary net position - ending
$
211,787,789
$
185,632,754
$
192,090,628
$
169,217,217
$ 159,017,966
$ 159,399,018
Net pension liability -ending
$
16,274,784
$
32,173,961
$
14,560,641
$
26,451,072
$ 26,671,364
$ 17,536,340
Plan fiduciary net position as a % of total pension liability
92.86%
85.23%
92.95%
86.48%
85.64%
90.09%
Covered payroll
$
29,619,629
$
28,914,263
$
28,308,838
$
26,824,411
$ 25,732,638
$ 25,560,729
Net pension liability as a % of covered payroll
54.95%
111.27%
51.44%
98.61%
103.65%
68.61%
* The schedule is intended to show information for 10 years. Additional years
will be displayed as they become available.
82
CITY OF EULESS, TEXAS
SCHEDULE OF CONTRIBUTIONS - PENSION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30
2020* 2019* 2018* 2017* 2016* 2015*
Actuarially determined contributions $ 5,532,423 $ 5,174,020 $ 5,094,779 $ 4,971,811 $ 4,670,520 $ 4,602,538
Actual contributions (5,532,423) (5,174,020) (5,094,779) (4,971,811) (4,670,520) (4,602,538)
Contributions deficiency (excess) $ - $ - $ - $ - $ - $
Covered payroll $ 31,348,108 $ 29,411,252 $ 28,640,420 $ 28,113,691 $ 26,464,297 $ 25,453,407
Ratio of actual contributions to covered payroll amount 17.70% and 17.51% 17.80% and 17.51% 17.76% and 17.80% 17.49% and 17.76% 18.05% and 17.49% 18.73% and 18.05%
* The schedule is intended to show information for 10 years. Additional years
will be displayed as they become available.
Notes to Schedule
Valuation Date
Actuarial determined contribution rates are calculated as of December 31st each
year and become effective in January, 13 months later
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method
Entry Age Normal
Amortization Method
Level Percentage of Payroll, Closed
Remaining Amortization Period
25 years
Asset Valuation Method
10 year smoothed market; 12% soft corridor
Inflation
2.5%
Salary Increases
3.5% to 11.5% including inflation
Investment Rate of Return
6.75%
Retirement Age
Experience -based table of rates that are specific to the City's plan of benefits. Last
updated for the 2019 valuation pursuant to an experience study of the period 2014 -
2018.
Mortality
Post -retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are
projected on a fully generational basis with scale LW. Pre -retirement: PUB (10)
mortality tables with the Public Safety table used for males and the General
Employee table used for females. The rates are projected on a fully generational
basis with scale UMP.
83
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30
2020*
2019*
2018*
2017*
Total OPEB liability
Service cost
$ 267,668
$ 435,930
$ 447,155
$ 75,083
Interest on total OPEB liability
1,379,257
1,360,548
1,271,483
825,331
Effect of changes of benefit terms
-
-
-
-
Effect of difference between expected
and actual experience
(627,155)
-
1,459,988
432,425
Contributions - other
276,885
270,205
-
-
Effect of changes of assumptions
1,322,815
-
(798,143)
5,480,748
Administrative expense
(131,481)
(135,119)
-
-
Benefit payments
(898,811)
(1,019,931)
(1,230,281)
(1,332,839)
Net change in OPEB liability
1,589,178
911,633
1,150,202
5,480,748
Beginning balance
19,126,287
18,214,654
17,064,452
11,583,704
Ending balance
$ 20,715,465
$ 19,126,287
$ 18,214,654
$ 17,064,452
Plan fiduciary net position
Contributions - employer
$
1,455,171
$
1,583,715
$
1,754,093
$
1,832,839
Contributions - other
276,885
270,205
320,471
-
Net investment income
577,387
502,656
381,824
559,716
Difference in expected
and actual net investment
income
11,026
(226,279)
-
-
Benefit payments
(898,811)
(1,019,931)
(1,230,281)
(1,332,839)
Administrative expense
(131,481)
(135,119)
(147,597)
(13,525)
Net change in plan fiduciary
net position
1,290,177
975,247
1,078,510
1,046,191
Beginning balance
7,413,365
6,438,118
5,359,608
4,313,417
Ending balance
$
8,703,542
$
7,413,365
$
6,438,118
$
5,359,608
City's net OPEB liability ending
$
12,011,923
$
11,712,922
$
11,776,536
$
11,704,844
Plan fiduciary net position as a %
of the total OPEB liability
42%
39%
35%
31 %
Covered employee payroll
$
31,348,108
$
29,411,252
$
28,640,420
$
25,944,080
City's net OPEB liability as a %
of covered employee payroll
38%
40%
41%
45%
* This schedule is presented to illustrate the requirement to show ten years of information. However, until a full ten-year trend is available,
the schedule will present the information that is available.
84
CITY OF EULESS, TEXAS
SCHEDULE OF CONTRIBUTIONS - OPEB TRUST
FOR THE FISCAL YEAR ENDED SEPTEMBER 30
Schedule of City OPEB Contributions
Actuarially determined contribution
Contributed in relation to the actuarially
determined contribution
Contribution deficiency (excess)
Covered employee payroll
Contributions as a percentage of
covered employee payroll
2020* 2019* 2018* 2017*
$ 1,388,216 $ 1,486,177 $ 1,492,738 $ 1,226,144
1,455,171 1,583,715 1,754,093 1,832,839
$ (66,955) $ (97,538) $ (261,355) $ (606,695)
$31,348,108 $29,411,252 $28,640,420 $25,944,080
4.6% 5.4% 6.1% 7.1%
* This schedule is presented to illustrate the requirement to show ten years of information. However, until a full
ten-year trend is available, the schedule will present the information that is available.
Notes to Schedule
Significant assumptions used in preparation of actuarial valuation
Valuation date
10/1/2019 (rolled forward to 9/30/2020)
Actuarial cost method
Entry Age Normal
Amortization method
Level Dollar Method
Remaining amortization period
27 years - closed period
Amortization period for new losses
25-year closed period
Asset valuation method
Market value
Discount rate
7.5%
Inflation
2.5 %
Healthcare cost trend rates
10.87% declining annually to 3.6% in 2042+
Dental cost trend rates
3.0% per annum
Salary increases including inflation
3.00%
Long-term investment rate of return,
net of investment expense
7.5%
Retirement age
Varies with age and service level
Mortality
Sex distinct PUB 2010 general employee mortality
tables with mortality improvements scale MP-2019
85
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2020
Variance with
Actual
Final Budget
Budgeted
Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
Revenues
General property tax
Current and delinquent taxes
$ 17,123,713
$ 17,123,713
$ 17,071,898
$ (51,815)
Penalty and interest
50,000
50,000
77,331
27,331
Total property tax
17,173,713
17,173,713
17,149,229
(24,484)
Gross receipts and mixed beverage tax
Telephone line access fee
50,000
50,000
156,923
106,923
Electric company
1,700,266
1,700,266
1,642,652
(57,614)
Gas company
415,000
415,000
343,734
(71,266)
Cable TV
425,000
425,000
318,144
(106,856)
City garbage service
275,000
275,000
280,514
5,514
Water and wastewater system
1,302,654
1,302,654
1,369,262
66,608
Others
211,390
211,390
169,391
(41,999)
Total gross receipts and
mixed beverage tax
4,379,310
4,379,310
4,280,620
(98,690)
General sales tax
13,252,272
13,252,272
13,453,639
201,367
Fines and fees
Municipal court fines
2,282,050
2,282,050
1,698,927
(583,123)
Jail income
200,000
200,000
160,053
(39,947)
Dog licenses and pound fees
7,500
7,500
6,610
(890)
Ambulance fees
850,000
850,000
860,058
10,058
Library fees
5,100
5,100
2,146
(2,954)
Zoning fees
20,000
20,000
18,930
(1,070)
Deferred adjudication fee
125,000
125,000
88,326
(36,674)
Total fines and fees
3,489,650
3,489,650
2,835,050
(654,600)
Licenses and permits
Building permits
300,000
300,000
1,330,340
1,030,340
Miscellaneous permits
289,500
289,500
274,762
(14,738)
Minimum housing
65,000
65,000
68,041
3,041
Total licenses and permits
654,500
654,500
1,673,143
1,018,643
Investment income
255,000
255,000
263,648
8,648
Intergovernmental
428,850
428,850
379,728
(49,122)
Other revenues
Rental income
584,224
584,224
826,965
242,741
Swimming pools
185,000
185,000
3,045
(181,955)
Miscellaneous income
213,040
213,040
422,443
209,403
Total other revenues
982,264
982,264
1,252,453
270,189
Total revenues
40,615,559
40,615,559
41,287,510
671,951
86
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2020
Expenditures
Current
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Proceeds from sale of assets
Transfers in
Transfers out
Total other financing
sources (uses), net
Net change in fund balance
Fund balance,
beginning of year
Fund balance, end of year
(Continued)
Variance with
Actual
Final Budget
Budgeted
Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
$ 3,568,172
$ 3,568,172
$ 3,052,695
$ 515,477
805,158
805,158
753,251
51,907
14,127,466
14,329,088
12,215,431
2,113,657
1,393,916
1,393,916
1,095,732
298,184
26,187,843
26,187,843
22,530,086
3,657,757
46,082,555
46,284,177
39,647,195
6,636,982
(5,466,996) (5,668,618) 1,640,315 7,308,933
5,000 5,000 16,735 11,735
2,974,949 2,974,949 3,041,682 66,733
(1,449,024) (1,247,402) (1,453,841) (206,439)
1,530,925 1,732,547 11604,576 (127,971)
(3,936,071) (3,936,071) 3,244,891 7,180,962
16,973,615 16,973,615 16,9733615
$ 13,037,544 $ 13,037,544 $ 20,218,506 $ 7,180,962
87
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
CAR RENTAL SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Revenues
Car rental tax
Investment income
Total revenues
Expenditures
General and administrative
Capital outlay
Total expenditures
Excess of revenues over
expenditures
Other financing sources (uses)
Proceeds from sale of assets
Transfers out
Total other financing
sources (uses)
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
$ 14,675,131
$ 14,675,131
$ 10,042,659
$ (4,632,472)
165,000
165,000
116,378
(48,622)
14,840,131
14,840,131
10,159,037
(4,681,094)
9,883,421
9,883,421
6,680,181
3,203,240
627,339
627,339
167,562
459,777
10,510,760
10,510,760
6,847,743
3,663,017
4,329,371 4,329,371 3,311,294 (1,018,077)
- 425
(4,933,643) (5,483,643) (5,483,643)
(4,933,643) (5,483,643) (5,483,218)
(604,272) (1,154,272) (2,171,924)
425
425
(1,017,652)
4,362,191
4,362,191
4,362,191
-
$ 3,757,919 $
3,207,919
$ 2,190,267
$ (1,017,652)
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
NOTE 1. BUDGET BASIS OF ACCOUNTING
The City Council adheres to the following procedures in establishing budgetary data reflected in the
financial statements:
Prior to August 1, the City Manager submits to the City Council a proposed operating budget
for the fiscal year commencing the following October 1. The operating budget includes
proposed expenditures and expenses and means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to September 30, the budget is legally enacted through passage of an ordinance and a
budgetary report is prepared.
4. The City Manager is authorized to transfer budgeted amounts between departments within
any fund; however, any revision that alters the total expenditures or expenses of any fund
must be approved by the City Council. The budget presented reflects revisions made during
the year. The legal level of control is at the fund level.
5. A budget is legally adopted for the general fund and special revenue funds on a basis
consistent with accounting principles generally accepted in the United States of America.
Formal budgetary integration is employed as a management control device during the year
for the general fund and special revenue funds. Appropriations and encumbrances lapse at
year-end.
6. Formal budgetary integration is not employed for the debt service funds because effective
budgetary control is alternatively achieved through general obligation bond indenture
provisions.
7. Budgetary data for the capital projects funds has not been presented in the accompanying
basic financial statements as such funds are budgeted over the life of the respective projects
and not on an annual basis. Accordingly, formal budgetary integration of the capital projects
funds is not employed and comparison of actual results of operations to budgetary data for
such funds is not presented.
8. Appropriated budgets for the proprietary funds are also adopted but have not been presented
since reporting on such budgets is not legally required.
The Budgetary Comparison Schedules — general fund and car rental tax special revenue fund present
a comparison of budgetary data to actual results. These funds utilize the same basis of accounting
for both budgetary purposes and actual results.
89
90
91
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
NON -MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to
expenditures for particular purposes.
Hotel/Motel Fund — to account for the operations and expenditures for which hotel/motel
occupancy taxes are used. Occupancy tax revenues are used primarily for advertising and
promotion of the City.
Half -Penny Sales Tax Fund — to account for the sales tax revenues and expenditures of the
Euless Development Corporation, a component unit of the City of Euless. The revenues can only
be spent on parks, library, debt service, and economic development activities with the City of
Euless.
Police Drug Enforcement Fund — to account for proceeds from the sale of assets seized in
connection with drug arrests. Revenues are used solely for police department expenditures.
Crime Control and Prevention District Fund — to account for the revenues and expenditures of
this component unit of the City of Euless. The revenues are collected from sales taxes and
expenditures can only be spent for police department operations and capital as approved by the
Crime Control and Prevention District Board.
Grant Fund — to account for grant revenues received by the City, which must be spent in
accordance with the grant provisions.
Police Seized Asset Fund — to account for resources received from asset forfeiture pursuant to
court judgment File No. 09-13-640 to be administered in compliance with Chapter 59, Texas
Code of Criminal Procedure.
Juvenile Case Fund — to account for a fee added to municipal court citations. This fee is used to
support the expenditures associated with juvenile case processing.
Glade Parks Public Improvement District (PID) Fund — to account for the accumulation of
resources from an assessment levied upon properties within the district boundaries. The
resources are utilized for the repayment of debt issued to fund public improvements within the
district. The district assesses property owners only for the portion of the debt payment not
covered with resources of the Glade Parks TIRZ #3.
Tax Increment Reinvestment Zone (TIRZ) #3 — Glade Parks Fund (TIRZ #3) — to account for the
accumulation of a portion of the incremental property taxes from taxing entities participating in
the tax increment reinvestment zone. The resources are used for the repayment of debt issued to
fund public improvements within the zone.
92
NON -MAJOR GOVERNMENTAL FUNDS — Continued
Midtown Public Improvement District (PID) Fund — to account for the accumulation of resources
from an assessment levied upon properties within the district boundaries. The resources are
utilized for the repayment of debt issued to fund public improvements within the district.
Midtown TIRZ #4 Fund — to account for the accumulation of a portion of the incremental
property taxes from taxing entities participating in the tax increment reinvestment zone. The
resources are used for the repayment of debt issued to fund public improvements within the zone.
Cable PEG Fees Fund — to account for a 1% fee collected from cable channel providers for
expansion of the city's public, educational, and governmental access channel.
CAPITAL PROJECTS FUNDS
Half -Penny Sales Tax CIP Fund — to account for bond proceeds and sales tax receipts to be
expended for capital projects funded by the Euless Development Corporation, a component unit
of the City of Euless.
Developers' Contribution Fund — to account for funds received for the purpose of making new
and future improvements to various development areas within the City.
General CIP Fund— to account for various general construction projects within the City.
Redevelopment CIP Fund — to account for land acquisition and revitalization projects designed
to enhance development and promote redevelopment throughout the community.
Midtown Reserve Fund — to account for resources used to establish the initial debt reserve fund
per the Midtown construction, funding, and development agreement.
TIRZ #4 Midtown CIP Fund — to account for construction projects and the means of financing
such projects within the development area generally known as Euless Midtown.
Car Rental CIP Fund — to account for the building and infrastructure projects that are funded
from the short-term motor vehicle rental tax.
93
ASSETS
Deposits and investments
Accounts receivable
Property taxes receivable
Accrued interest receivable
Due from other governments
Prepaids
Restricted deposits and investments
Total assets
LIABILITIES
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
Accounts payable
Accrued salaries and wages
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Total deferred inflows of resources
FUND BALANCES
Nonspendable
Restricted, debt service
Restricted, capital projects
Restricted, developer agreements
Restricted, juvenile case management
Restricted, cable PEG fees
Restricted, historical preservation
Assigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Snecial Revenue Funds
Police
Crime
Drug
Control and
Hotel/
Half -Penny
Enforce-
Prevention
Motel
Sales Tax
ment
District Grant
Fund
Fund
Fund
Fund Fund
$ 575,964
$ 3,229,780
$ 532,334
$ 695,933 $ -
148,531
-
-
- 24,794
-
170
-
- -
-
968,620
-
482,705 -
$ 724,495 $ 4,198,570 $ 532,334 $ 1,178,638 $ 24,794
$ 148,059 $ 164,585 $
- 35,307
148,059 199,892
$ 53,278 $ 23,092
41,827 1,291
95,105 24,383
402,334 - - -
1,245 - - - -
575,191 3,596,344 532,334 11083,533 411
576,436 3,998,678 532,334 11083,533 411
$ 724,495 $ 4,198,570 $ 532,334 $ 11178,638 $ 24,794
94
Special Revenue Funds
Police
Cable
Special
Seized
Juvenile
Glade Parks
TIRZ #3
Midtown
Midtown
PEG
Revenue
Assets
Case
PID
Glade Parks
PH)
TIRZ #4
Fees
Funds
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Total
$ 255,388
$ 281,776
$ 750,000
$ 1,745,688
$ 128,760
$ 91,067
$ 584,557
$ 8,871,247
-
4,423
-
73,908
-
6,739
25,000
283,395
-
-
-
34,758
-
29,217
-
63,975
-
-
-
-
-
-
-
170
-
-
-
-
-
-
-
1,451,325
-
-
-
-
-
-
440
440
$ 255,388
$ 286,199
$ 750,000
$ 1,854,354
$ 128,760
$ 127,023
$ 609,997
$ 10,670,552
$ - $ 22,505 $ - $ - $ 4,210 $ - $ 1,335 $ 417,064
730 1,610 - - - - - 80,765
730 24,115 - - 4,210 - 1,335 497,829
4,448 - - - - - 4,448
4,448 - - - - - 4,448
- - - - - - 440 440
- - 750,000 - - - 1,152,334
257,636 - - - - 257,636
- - - - 608,222 608,222
- - - - - - - 1,245
254,658 - - 1,854,354 124,550 127,023 - 8,148,398
254,658 257,636 750,000 1,854,354 124,550 127,023 608,662 10,168,275
$ 255,388 $ 286,199 $ 750,000 $ 11854,354 $ 128,760 $ 127,023 $ 609,997 $ 10,670,552
95
ASSETS
Deposits and investments
Accounts receivable
Property taxes receivable
Accrued interest receivable
Due from other governments
Prepaids
Restricted deposits and investments
Total assets
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
LIABILITIES
Accounts payable
Accrued salaries and wages
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Total deferred inflows of resources
FUND BALANCES
Nonspendable
Restricted, debt service
Restricted, capital projects
Restricted, developer agreements
Restricted, juvenile case management
Restricted, cable PEG fees
Restricted, historical preservation
Assigned
Total fund balances
Total liabilities, deferred inflows of
resources, and find balances
Capital Proiect Funds
Half -Penny
Sales Tax
Developers'
General
Redevelopment
CIP
Contribution
CIP
CIP
Fund
Fund
Fund
Fund
$ 1,569,026
$ 2,216,681
$ 2,112,955
$ 1,434,757
-
-
4,586
-
2,646,639
-
71236,008
-
$ 4,215,665
$ 21216,681
$ 91353,549
$ 1,434,757
$ 965,252 $ 2,400 $ 84,248 $ 37,182
965,252 2,400 84,248 37,182
2,646,639 - 7,236,008
- 2,214,281 -
603,774 - 21033,293 1,397,575
3,250,413 212141281 91269,301 1,397,575
$ 4,215,665 $ 2,216,681 $ 9,353,549 $ 1,434,757
96
Capital Project Funds
TIRZ #4
Car
Capital
Total
Midtown
Midtown
Rental
Project
Non -major
Reserve
CIP
CIP
Funds
Governmental
Fund
Fund
Fund
Totals
Funds
$ - $
-
$ 2,793,406
$ 10,126,825
$ 18,998,072
-
-
3,000
7,586
290,981
-
-
-
-
63,975
-
-
4,858
4,858
5,028
-
-
-
-
1,451,325
-
-
24,433
24,433
24,873
999,725
69,475
-
10,951,847
10,951,847
$ 999,725 $
69,475
$ 2,825,697
$ 21,115,549
$ 31,786,101
$ - $
-
$ 512,145
$ 1,601,227
$ 2,018,291
-
-
-
-
80,765
-
-
512,145
1,601,227
2,099,056
-
-
-
4,448
-
-
4,448
24,433
24,433
24,873
-
-
-
1,152,334
999,725
69,475
-
10,951,847
10,951,847
-
-
-
2,214,281
2,214,281
-
-
257,636
-
-
608,222
-
-
1,245
2.289.119
6.323.761
14.472.159
999,725 69,475 2,313,552 19,514,322 29,682,597
$ 999,725 $ 69,475 $ 2,825,697 $ 21,115,549 $ 31,786,101
97
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - NON -MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2020
Special Revenue Funds
Police Crime
Drug Control and
Hotel/ Half -Penny Enforce- Prevention
Motel Sales Tax ment District Grant
Fund Fund Fund Fund Fund
Revenues
General property tax
Gross receipts tax
General sales tax
Investment income
DEA revenues
Intergovernmental
Rents and royalties
Other revenues
Total revenues
Expenditures
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Debt service
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Issuance of debt
Premium on issuance of debt
Proceeds from sale of assets
Transfers in
Transfers out
Total other
financing sources (uses)
Net change in fund balances
Fund balance,
beginning of year
Fund balance, end of year
$ - $ - $ - $ - $ -
924,551 - - - -
- 5,521,314 - 2,763,765 -
5,830 24,280 4,313 7,720 -
- - 13,678 - -
- - - - 3,198,481
- 73,580 - - -
930,381 5,619,174 17,991 2,771,485 3,198,481
- 3,477,630
- - 2,000
- 273,347
- - -
280,589 211,600
- - -
- -
414 2,557,879 3,209,089
- 235,000
- - -
- 156,190
- - -
137,000 341,881
10,705 425,942 18,986
417,589 4,695,648
11,119 2,983,821 3,230,075
512,792 923,526 6,872 (212,336) (31,594)
1,670 - - -
- - - 31,192
(445,713) (442,231) - - -
(445,713) (440,561) - - 31,192
67,079 482,965 6,872 (212,336) (402)
509,357 3,515,713 525,462 1,295,869 813
$ 576,436 $ 3,998,678 $ 532,334 $ 1,083,533 $ 411
Revenue Funds
Police
Cable
Special
Seized
Juvenile Glade Parks
TIRZ#3
Midtown
Midtown
PEG
Revenue
Asset
Case PID
Glade Parks
PID
TIRZ#4
Fees
Funds
Fund
Fund Fund
Fund
Fund
Fund
Fund
Totals
$ -
$ - $
$ 1,454,842
$
$ 97,576
$ -
$ 1,552,418
-
-
-
-
104,230
1,028,781
-
-
320,222
29,424
-
8,634,725
2,222
2,197
10,057
987
-
6,523
64,129
-
-
-
-
-
-
13,678
-
-
-
-
-
-
3,198,481
-
- -
-
-
-
73,580
-
55,576 -
-
1,075,865
-
1,131,441
2,222
57,773 -
1,785,121
1,076,852
127,000
110,753
15,697,233
-
- -
-
-
-
-
3,479,630
-
- -
-
-
-
273,347
-
81,014 -
-
15,427
-
47,691
636,321
25,020
-
-
-
-
5,792,402
-
-
-
-
-
235,000
-
-
-
-
-
156,190
-
-
-
-
-
240,474
1,174,988
25,020
81,014
-
15,427
-
288,165
11,747,878
(22,798)
(23,241) -
1,785,121
1,061,425
127,000
(177,412)
3,949,355
- 1,670
- - - - 31,192
- - (1,143,966) (1,024,312) (51,701) - (3,107,923)
- (1,143,966) (1,024,312) (51,701) - (3,075,061)
(22,798) (23,241) - 641,155 37,113 75,299 (177,412) 874,294
277,456 280,877 750,000 1,213,199 87,437 51,724 786,074 9,293,981
$ 254,658 $ 257,636 $ 750,000 $ 1,854,354 $ 124,550 $ 127,023 $ 608,662 $ 10,168,275
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - NON -MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2020
Capital Project Funds
Half -Penny
Sales Tax Developers' General Redevelopment
CIP Contribution CIP CIP
Fund Fund Fund Fund
Revenues
General property tax
Gross receipts tax
General sales tax
hivestment income
DEA revenues
Intergovernmental
Rents and royalties
Other revenues
Total revenues
Expenditures
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Debt service
Principal
hiterest and fiscal charges
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Issuance of debt
Premium on issuance of debt
Proceeds from sale of assets
Transfers in
Transfers out
Total other
financing sources (uses)
Net change in fund balances
Fund balance,
beginning of year
Fund balance, end of year
40,726 24,575 48,622 13,939
- 47,234 -
- 3,564 - 500
40,726 28,139 95,856 14,439
247,285 4,800 1,119 -
38,430 - - -
- - - 87,127
2,450,996
- 594,502
600,880
2,736,711
4,800 595,621
688,007
(2,695,985) 23,339
4,120,000 -
238,215 -
250,000 -
- (50,000)
(499,765) (673,568)
7,495,000
220,000
192,224
100,000
1,000,000
4,608,215 (50,000) 7,907,224 1,100,000
1,912,230 (26,661) 7,407,459 426,432
1,338,183 2,240,942 1,861,842 971,143
$ 3,250,413 $ 2,214,281 $ 9,269,301 $ 1,397,575
100
Capital Project Funds
TIRZ #4
Car
Capital
Total
Midtown Midtown
Rental
Project
Non -major
Reserve CIP
ClP
Funds
Governmental
Fund Fund
Fund
Totals
Funds
$ -
$ -
$ 1,552,418
- -
-
-
1,028,781
- -
-
-
8,634,725
- -
60,953
188,815
252,944
- -
-
-
13,678
- -
-
-
3,198,481
- -
-
47,234
120,814
- -
-
4,064
1,135,505
- -
60,953
240,113
15,937,346
- -
-
253,204
3,732,834
- -
-
38,430
311,777
- -
5,689
92,816
729,137
- -
-
-
5,792,402
- -
-
-
235,000
- -
-
-
156,190
- -
3,626,429
7,272,807
8,447,795
- -
3,632,118
7,657,257
19,405,135
- - (3,571,165) (7,417,144) (3,467,789)
- - - 11,615,000
11,615,000
- - - 458,215
458,215
- - - 100,000
101,670
- - 2,103,820 3,546,044
3,577,236
- - (66,250) (116,250)
(3,224,173)
- - 2,037,570 15,603,009
12,527,948
- - (1,533,595) 8,185,865 9,060,159
999,725 69,475 3,847,147 11,328,457 20,622,438
$ 999,725 $ 69,475 $ 2,313,552 $ 19,514,322 $ 29,682,597
101
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
HOTEL / MOTEL SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Budgeted Amounts
Original Final
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
Revenues
Gross receipts tax $ 1,214,500 $ 1,214,500 $ 924,551 $ (289,949)
Investment income 15,000 15,000 5,830 (9,170)
Total revenues 1,229,500 1,229,500 930,381 (299,119)
Expenditures
General and administrative 700,300 775,300 417,589 357,711
Total expenditures 700,300 775,300 417,589 357,711
Excess of revenues
over expenditures 529,200 454,200 512,792 58,592
Other financing uses
Transfers out
(521,807)
(521,807)
(445,713)
76,094
Total other financing uses
(521,807)
(521,807)
(445,713)
76,094
Net change in fund balance
7,393
(67,607)
67,079
134,686
Fund balance, beginning of year
509,357
509,357
509,357
-
Fund balance, end of year
$ 516,750
$ 441,750
$ 576,436 $
134,686
102
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
HALF -PENNY SALES TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Revenues
General sales tax
Investment income
Rents and royalties
Total revenues
Expenditures
Culture and recreation
Development services
General and administrative
Debt service
Principal
Interest and fiscal charges
Total expenditures
Excess of revenues
over expenditures
Other financing sources (uses)
Proceeds from sale of assets
Transfers out
Total other financing
sources (uses), net
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
$ 5,446,384
$ 5,446,384
$ 5,521,314
$ 74,930
20,700
20,700
24,280
3,580
73,580
73,580
73,580
-
5,540,664
5,540,664
5,619,174
78,510
4,996,775
4,996,775
3,819,511
1,177,264
693,257
693,257
273,347
419,910
243,860
243,860
211,600
32,260
220,000
220,000
235,000
(15,000)
222,664
222,664
156,190
66,474
6,376,556
6,376,556
4,695,648
1,680,908
(835,892)
464.303
(835,892) 923,526
- 1,670
464,303 (442,231)
(464,303) (464,303) (440,561)
(1,300,195) (1,300,195) 482,965
1,759,418
1,670
22,072
23,742
1,783,160
3,515,713 3,515,713 3,515,713 -
$ 2,215,518 $ 2,215,518 $ 3,998,678 $ 1,783,160
103
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
POLICE DRUG ENFORCEMENT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Variance with
Actual
Final Budget
Budgeted Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
Revenues
Investment income
$ 8,500
$ 8,500
$ 4,313
$ (4,187)
DEA revenues
-
-
13,678
13,678
Total revenues
8,500
8,500
17,991
9,491
Expenditures
Public safety
179,162
179,162
11,119
168,043
Total expenditures
179,162
179,162
11,119
168,043
Net change in fund balance
(170,662)
(170,662)
6,872
177,534
Fund balance, beginning of year
525,462
525,462
525,462
-
Fund balance, end of year
$ 354,800
$ 354,800
$ 532,334
$ 177,534
104
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
CRIME CONTROL AND PREVENTION DISTRICT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Revenues
General sales tax
Investment income
Total revenues
Expenditures
Public safety
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
Variance with
Actual Final Budget
GAAP Positive
Basis (Negative)
$ 2,695,960
$ 2,695,960
$ 2,763,765
$ 67,805
20,000
20,000
7,720
(12,280)
2,715,960
2,715,960
2,771,485
55,525
3,225,837
3,225,837
2,983,821
242,016
3,225,837
3,225,837
2,983,821
242,016
(509,877)
(509,877)
(212,336)
297,541
1,295,869
1,295,869
1,295,869
-
$ 785,992
$ 785,992
$ 1,083,533
$ 297,541
105
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
GRANT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Revenues
Intergovernmental
Total revenues
Expenditures
Culture and recreation
Public safety
Total expenditures
Deficiency of revenues
under expenditures
Other financing sources
Transfers in
Total other financing sources
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Variance with
Actual
Final Budget
Budgeted Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
$ 126,737
$ 128,737
$3,198,481
$ 3,069,744
126,737
128,737
3,198,481
3,069,744
-
2,000
2,000
-
141,703
3,230,503
3,228,075
2,428
141,703
3,232,503
3,230,075
2,428
(14,966)
(3,103,766)
(31,594)
3,072,172
14,402
14,402
31,192
16,790
14,402
14,402
31,192
16,790
(564)
(3,089,364)
(402)
3,088,962
813
813
813
-
$ 249
($ 3,088,551)
$ 411
$ 3,088,962
106
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
POLICE SEIZED ASSETS SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Variance with
Actual
Final Budget
Budgeted Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
Revenues
Investment income
$ 4,000
$ 4,000
$ 2,222
$ (1,778)
Total revenues
4,000
4,000
2,222
(1,778)
Expenditures
Public safety
61,506
61,506
25,020
36,486
Total expenditures
61,506
61,506
25,020
36,486
Net change in fund balance
(57,506)
(57,506)
(22,798)
34,708
Fund balance, beginning of year
277,456
277,456
277,456
-
Fund balance, end of year
$ 219,950
$ 219,950
$ 254,658
$ 34,708
107
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
JUVENILE CASE SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Budgeted Amounts
Original Final
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
Revenues
Investment income $ 5,000 $ 5,000 $ 2,197 $ (2,803)
Other revenues 81,675 81,675 55,576 (26,099)
Total revenues 86,675 86,675 57,773 (28,902)
Expenditures
General and administrative
122,618
122,618
81,014
41,604
Total expenditures
122,618
122,618
81,014
41,604
Net change in fund balance
(35,943)
(35,943)
(23,241)
12,702
Fund balance, beginning of year
280,877
280,877
280,877
-
Fund balance, end of year
$ 244,934
$ 244,934
$ 257,636 $
12,702
108
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
TIRZ #3 GLADE PARKS SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Revenues
General property tax
General sales tax
Investment income
Total revenues
Other financing uses
Transfers out
Total other
financing uses
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Variance with
Actual
Final Budget
Budgeted Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
$ 1,477,958
$ 1,477,958
$ 1,454,842
$ (23,116)
363,689
363,689
320,222
(43,467)
10,000
10,000
10,057
57
1,851,647 1,851,647 1,785,121
(1,143,966) (1,143,966) (1,143,966)
(1,143,966) (1,143,966) (1,143,966)
707,681 707,681 641,155
(66,526)
(66,526)
1,213,199 1,213,199 1,213,199 -
$ 1,920,880 $ 1,920,880 $ 1,854,354 $ (66,526)
109
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
MIDTOWN PID SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Revenues
Other revenues
Investment income
Total revenues
Expenditures
General and administrative
Total expenditures
Excess of revenues over expenditures
Other financing uses
Transfers out
Total other financing uses
Net change in fund balance
Budgeted Amounts
Original Final
$ 1,112,248
Actual
GAAP
Basis
$ 1,112,248 $1,075,865
- 997
Variance with
Final Budget
Positive
(Negative)
$ (36,383)
987
1,112,248
1,112,248
1,076,852
(35,396)
37,885
37,885
15,427
22,458
37,885
37,885
15,427
22,458
1,074,363
1,074,363
1,061,425
(12,938)
(1,024,312) (1,024,312) (1,024,312)
(1,024,312) (1,024,312) (1,024,312)
50,051 50,051 37,113
(12,938)
Fund balance, beginning of year
87,437
87,437
87,437 -
Fund balance, end of year
$ 137,488
$ 137,488
$ 124,550 $ (12,938)
110
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
TIRZ #4 MIDTOWN SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Revenues
Property tax revenues
General sales tax
Total revenues
Other financing uses
Transfers out
Total other financing uses
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Variance with
Actual
Final Budget
Budgeted Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
$ 100,009
$ 100,009
$ 97,576
$ (2,433)
-
-
29,424
29,424
100,009
100,009
127,000
26,991
(51,701)
(51,701)
(51,701)
-
(51,701)
(51,701)
(51,701)
-
48,308
48,308
75,299
26,991
51,724
51,724
51,724
-
$ 100,032
$ 100,032
$ 127,023
$ 26,991
ill
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
CABLE PEG FEES SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2020
Variance with
Actual Final Budget
Budgeted Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
Revenues
Gross receipts tax
$ 111,000
$ 111,000
$ 104,230
$ (6,770)
Investment income
12,000
121000
6,523
(5,477)
Total revenues
123,000
123,000
110,753
(12,247)
Expenditures
General and administrative
60,000
60,000
47,691
12,309
Capital outlay
266,794
266,794
240,474
26,320
Total expenditures
326,794
326,794
288,165
38,629
Net change in fund balance
(203,794)
(203,794)
(177,412)
26,382
Fund balance, beginning of year
786,074
786,074
786,074
-
Fund balance, end of year
$ 582,280
$ 582,280
$ 608,662
$ 26,382
112
113
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one
department to other departments of the City on a cost reimbursement basis.
Equipment Replacement Fund – to account for the accumulation of funds to be used for
replacement of existing equipment. Funding is provided annually by the user departments.
Insurance Fund – to account for the revenues and expenses resulting from providing health
insurance to the City's employees.
Risk Management/Workers’ Compensation (Risk/WC) Fund – to account for the revenue
and expenses applicable to providing workers’ compensation coverage for all City
employees, as well as, general liability and property coverage.
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2020
Equipment
Replacement
Insurance
Risk/WC
Fund
Fund
Fund
Total
ASSETS
Deposits and investments
$ 10,338,457
$ 6,331,993
$ 2,444,932
$ 19,115,382
Accounts receivable
-
25,251
127,242
152,493
Accrued interest receivable
6,952
1,097
-
8,049
Restricted deposits and investments
700,000
700,000
Total current assets
11,045,409
6,358,341
2,572,174
19,975,924
Property, plant, and equipment, at cost
Equipment
15,230,606
-
170,157
15,400,763
Less accumulated depreciation
9,752,613
-
67,703
9,820,316
Net property, plant, and equipment
5,477,993
-
102,454
5,580,447
Total assets
16,523,402
6,358,341
2,674,628
25,556,371
LIABILITIES
Accounts payable
52,590
32,792
404,576
489,958
Accrued salary and wages
-
2,210
1,520
3,730
Current portion of compensated absences
-
403
158
561
Accrued insurance claims
-
639,000
2,843
641,843
Total current liabilities
52,590
674,405
409,097
1,136,092
Compensated absences
-
3,624
1,419
5,043
Total non -current liabilities
-
3,624
1,419
5,043
Total liabilities
52,590
678,029
410,516
1,141,135
NET POSITION
Net investment in capital assets
5,477,993
-
102,454
5,580,447
Restricted for capital projects
700,000
700,000
Unrestricted
10,292,819
5,680,312
2,161,658
18,134,789
Total net position
$ 16,470,812 $ 5,680,312 $ 2,264,112 $ 24,415,236
114
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2020
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Operating revenues
Insurance premiums $ - $ 6,089,087 $ 509,775 $ 6,598,862
Service fees and miscellaneous 6,372,970 870,540 - 7,243,510
Total operating revenues 6,372,970 6,959,627 509,775 13,842,372
Operating expenses
General and administrative
Insurance costs
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues
Gain on sale of capital assets
Investment income
Total nonoperating revenues
Income (loss) before transfers
Transfers
Transfers in
Net transfers
Change in net position
Net position, beginning of year
Net position, end of year
64,568
1,640,434
84,856
1,789,858
-
4,361,154
713,188
5,074,342
1,425,236
-
16,010
1,441,246
1,489,804
6,001,588
814,054
8,305,446
4,883,166
958,039
(304,279)
5,536,926
48,499
-
-
48,499
103,128
64,964
16,741
184,833
151,627
64,964
16,741
233,332
5,034,793
1,023,003
(287,538)
5,770,258
1,049,253 -
484,000
1,533,253
1,049,253 -
484,000
1,533,253
6,084,046 1,023,003
196,462
7,303,511
10,386,766 4,657,309
2,067,650
17,111,725
$ 16,470,812 $ 5,680,312 $ 2,264,112 $ 24,415,236
115
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2020
OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Net cash provided by (used in) operating activities
NONCAPTTAL FINANCING ACTIVITIES
Transfers in
Net cash provided by noncapital financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets
Proceeds from sale of capital assets
Net cash used in capital and related financing activities
INVESTING ACTIVITIES
Interest received on investments
Net cash provided by investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities
Depreciation expense
Change in assets and liabilities
Receivables
Prepaids
Accounts payable
Accrued salaries and wages
Accrued insurance claims
Net cash provided by (used in) operating activities
Reconciliation of cash to balance sheet:
Cash - current
Cash - restricted
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
$ 6,372,970 $ 6,974,446 $ 435,383 $ 13,782,799
(11,978) (5,642,159) (605,809) (6,259,946)
- (85,943) (66,847) (152,790)
6,360,992 1,246,344 (237,273) 7,370,063
1,049,253 - 484,000 1,533,253
1,049,253 - 484,000 1,533,253
(1,330,990) - - (1,330,990)
67,177 - - 67,177
(1,263,813) - - (1,263,813)
105,832
71,647
16,741
194,220
105,832
71,647
16,741
194,220
6,252,264
1,317,991
263,468
7,833,723
4,786,193
5,014,002
2,181,464
11,981,659
$ 11,038,457
$ 6,331,993
$ 2,444,932
$ 19,815,382
$ 4,883,166 $ 958,039 $ (304,279) $ 5,536,926
1,425,236 - 16,010 1,441,246
- 14,819 (74,390) (59,571)
- 62,157 - 62,157
52,590 9,517 127,534 189,641
- (4,188) (2,148) (6,336)
- 206,000 - 206,000
$ 6,360,992 $ 1,246,344 $ (237,273) $ 7,370,063
$ 10,338,457 $ 6,331,993 $ 2,444,932 $ 19,115,382
700,000 - - 700,000
Cash and cash equivalents $ 11,038,457 $ 61331,993 $ 21444,932 $ 19,815,382
116
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
STAR CENTER ESCROW AGENCY FUND
YEAR ENDED SEPTEMBER 30, 2020
Balance Balance
October 1, September 30,
2019 Additions Deductions 2020
Stars Center Escrow Fund
Assets
Investments at fair value $ 1,428,593 $ 33,465 $ (144,051) $ 1,318,007
Receivables - 123,750 (20,625) 103,125
Total assets
Liabilities
Due to other entities
Refunds payable
Total liabilities
$ 1,428,593 $ 157,215 $ (164,676) $ 1,421,132
$ 1,420,547 $
8,046
$ 1,428,593 $
- $ - $ 1,420,547
585 (8,046) 585
585 $ (8,046) $ 1,421,132
117
118
119
STATISTICAL SECTION
(Unaudited)
120
STATISTICAL SECTION
(Unaudited)
The statistical section of the City of Euless’ comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the City’s overall financial health.
Contents Tables
Financial Trends 1-4
The financial trend schedules contain trend information to help the reader
understand how the City’s financial performance and well-being have changed
over time.
Revenue Capacity 5-8
The revenue capacity schedules contain information to help the reader assess
the City’s most significant local revenue source, the property tax.
Debt Capacity 9-13
The debt capacity schedules present information to help the reader assess
the affordability of the City’s current level of outstanding debt (including that
of its blended component units) and the City’s ability to issue additional
debt in the future.
Demographic and Economic Information 14-15
The demographic and economic schedules offer demographic and economic
indicators to help the reader understand the environment within which
the City’s financial activities occur.
Operating Information 16-18
The operating information schedules contain service and infrastructure data
to help the reader understand how the information in the City’s financial
report relates to the services it provides and the activities it performs.
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted for debt service
Restricted for capital projects
Restricted for impact fees
Unrestricted
Total business -type activities net position
Primary government
CITY OF EULESS, TEXAS
NET POSITION BY COMPONENT — LAST TEN FISCAL YEARS
(Accrual Basis of Accounting — Unaudited)
Table 1
Fiscal Year
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
$ 71,051,094 $ 77,828,950 $ 88,228,282 $ 94,162,906 $ 99,539,958 $ 108,135,655 $ 113,509,089 $ 112,710,338 $ 99,744,023 $ 104,018,729
1,818,957 4,426,819 4,138,774 4,999,085 5,666,450 17,508,943 10,293,057 13,620,993 26,158,342 30,103,225
31,448,528 27,192,202 24,910,579 23,921,387 17,302,574 3,610,521 12,466,943 10,698,663 18,071,669 25,147,659
$ 104,318,579 $ 109,447,971 $ 117,277,635 $ 123,083,378 $ 122,508,982 $ 129,255,119 $ 136,269,089 $ 137,029,994 $ 143,974,034 $ 159,269,613
$ 53,132,882 $ 52,202,849 $ 52,334,570 $ 55,160,900 $ 55,396,268 $ 59,184,256 $ 62,421,284 $ 63,283,054 $ 65,621,697 $ 66,554,698
438,948 309,595 314,171 317,758 733,562 733,164 733,264 1,018,037 1,426,830 1,425,701
- - - 232,300 1,183,350 4,265,268 1,166,442 3,962,644 10,646,450 4,256,167
2,649,336 2,401,217 2,740,656 1,876,393 1,966,315 1,980,150 2,467,095 2,895,677 3,047,942 3,010,687
16,947,928 17,703,257 18,150,441 15,047,592 12,554,695 11,122,601 14,528,797 12,286,319 7,130,279 14,728,131
$ 73,169,094 $ 72,616,918 $ 73,539,838 $ 72,634,943 $ 71,834,190 $ 77,285,439 $ 81,316,882 $ 83,445,731 $ 87,873,198 $ 89,975,384
Net investment in capital assets
$ 124,183,976
$ 130,031,799
$ 140,562,852
$ 149,323,806
$ 154,936,226
$ 167,319,911
$ 175,930,373
$ 175,993,392
$ 165,365,720 $
170,573,427
Restricted
4,907,241
7,137,631
7,193,601
7,425,536
9,549,677
24,487,525
14,659,858
21,497,351
41,279,564
38,795,780
Unrestricted
48,396,456
44,895,459
43,061,020
38,968,979
29,857,269
14,733,122
26,995,740
22,984,982
25,201,948
39,875,790
Total primary government net position
$ 177,487,673
$ 182,064,889
$ 190,817,473
$ 195,718,321
$ 194,343,172
$ 206,540,558
$ 217,585,971
$ 220,475,725
$ 231,847,232 $
249,244,997
Source: Comprehensive Annual Financial Reports
121
CITY OF EULESS, TEXAS
CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(Accrual Basis of Accounting - Unaudited)
Table 2
Fiscal Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Expenses
Governmental activities:
Culture and recreation
$ 5,091,589 $
5,680,772 $
6,025,540
$ 6,424,683 $
6,468,332 $
6,998,904 $
7,349,035 $
7,070,484 $
7,330,168 $
5,538,905
Development services
1,707,148
972,770
1,155,089
1,367,005
877,713
918,214
999,153
1,038,328
1,057,414
1,062,784
General and administrative
15,698,832
15,910,313
17,145,752
18,017,535
19,949,733
20,722,236
20,816,148
21,356,342
21,112,696
20,827,914
Highways and streets
2,923,241
2,968,770
3,334,188
3,578,341
3,374,422
3,708,184
4,143,412
3,787,336
7,193,189
3,601,998
Public safety
20,754,733
22,316,429
23,324,328
24,278,144
23,807,143
26,673,966
28,265,072
27,424,253
30,352,705
27,354,689
Interest on long-term debt
1,618,420
1,327,482
1,227,084
1,126,017
1,136,786
1,807,001
1,502,912
1,632,302
2,010,814
2,560,933
Total governmental activities expenses
47,793,963
49,176,536
52,211,981
54,791,725
55,614,129
60,828,505
63,075,732
62,309,045
69,056,986
60,947,223
Business -type activities:
Water and wastewater
17,827,272
17,813,199
18,554,761
20,298,024
19,970,346
21,009,701
21,673,844
23,225,786
23,493,321
25,333,182
Drainage utility
1,177,938
1,283,617
1,245,838
1,373,036
1,319,999
1,414,483
1,396,736
1,515,183
1,563,021
1,502,275
Golf
4,483,252
4,599,099
4,750,359
4,152,015
4,155,834
4,409,773
4,632,475
4,764,095
4,731,810
3,997,255
Other recreation enterprises
1,982,613
2,115,730
2,312,949
2,288,337
2,009,582
2,211,065
2,321,414
2,416,337
2,270,768
1,491,533
Total business -type activities expenses
25,471,075
25,811,645
26,863,907
28,111,412
27,455,761
29,045,022
30,024,469
31,921,401
32,058,920
32,324,245
Total primary government expenses
73,265,038
74,988,181
79,075,888
82,903,137
83,069,890
89,873,527
93,100,201
94,230,446
101,115,906
93,271,468
Program Revenues
Governmental activities:
Fees, fines, and charges for services
Culture and recreation
69,950
65,912
297,361
304,283
317,024
291,349
264,307
252,000
266,091
10,124
Development services
779,939
1,263,477
1,186,347
1,321,040
1,409,703
1,717,416
2,019,496
1,875,120
2,133,420
1,697,637
General and administrative
1,707,890
1,760,023
1,383,779
1,347,600
1,342,091
1,285,797
1,156,745
1,066,075
861,929
1,067,485
Highways and streets
-
54,622
112,736
218,012
93,258
350,920
607,588
988,302
1,114,507
1,075,865
Public safety
3,271,115
3,097,141
3,355,604
3,567,917
3,452,086
3,383,743
3,151,407
3,104,895
2,541,205
2,288,377
Operating grants and contributions
469,404
481,655
2,978,933
633,080
597,437
578,007
592,870
740,969
622,061
3,594,939
Capital grants and contributions
1,015,402
689,642
1,213,341
1,552,118
3,228,945
3,375,733
2,356,556
2,354,450
1,304,420
2,190,770
Total governmental activities program revenues
7,313,700
7,412,472
10,528,101
8,944,050
10,440,544
10,982,965
10,148,969
10,381,811
8,843,633
11,925,197
Business -type activities:
Charges for services
Water and wastewater
19,978,802
18,437,963
19,183,198
19,353,144
20,593,262
23,759,236
24,178,812
27,504,814
26,400,731
26,934,154
Drainage utility
694,751
705,474
708,984
712,971
716,595
725,152
730,202
818,622
826,711
833,890
Golf
4,746,242
4,335,149
4,520,224
3,622,952
4,168,578
4,187,728
4,247,345
4,337,003
4,067,026
3,363,915
Other recreation enterprises
2,684,905
2,041,878
2,138,600
2,241,920
1,848,434
2,059,413
2,168,944
2,123,825
2,197,926
884,286
Operating grants and contributions
-
-
-
-
-
-
-
-
-
-
Capital grants and contributions
772,714
368,882
1,847,097
2,037,263
1,746,638
2,943,188
2,280,769
1,729,219
3,058,291
2,677,913
Total business -type activities program revenues
28,877,414
25,889,346
28,398,103
27,968,250
29,073,507
33,674,717
33,606,072
36,513,483
36,550,685
34,694,158
Total primary government program revenues
36,191,114
33,301,818
38,926,204
36,912,300
39,514,051
44,657,682
43,755,041
46,895,294
45,394,318
46,619,355
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
122
Net (Expense) Revenue
Governmental activities
Business -type activities
Total primary government net expense
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes, levied for general purposes
Sales taxes
Car rental taxes
Mixed beverage taxes
Hotel/motel occupancy taxes
Gross receipts taxes
Investment income
Rents and royalties
Gain/(loss) on disposal of assets
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
Investment income
Gain on disposal of assets
Miscellaneous
Transfers
Total business -type activities
Total primary government
Change in Net Position
CITY OF EULESS, TEXAS
CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(Accrual Basis of Accounting - Unaudited) - Continued
Table 2
$ (40,480,263) $ (41,764,064) $ (41,683,880) $ (45,847,675) $ (45,173,585) $ (49,845,540) $ (52,926,763) $ (51,927,234) $ (60,213,353) $ (49,022,026)
3,406,339 77,701 1,534,196 (143,162) 1,617,746 4,629,695 3,581,603 4,592,082 4,491,765 2,369,913
(37,073,924) (41,686,363) (40,149,684) (45,990,837) (43,555,839) (45,215,845) (49,345,160) (47,335,152) (55,721,588) (46,652,113)
11,855,993
12,451,543
12,744,753
13,488,816
14,358,074
14,752,044
16,656,028
18,630,301
20,428,821
22,837,075
13,252,805
14,957,757
16,142,357
17,525,123
18,359,717
20,364,878
21,252,491
20,728,210
21,419,831
22,088,364
12,457,910
12,933,884
13,592,255
t4,082,518
14,112,552
14,842,109
14,401,763
14,776,566
14,797,320
10,042,659
66,383
54,138
60,823
69,160
84,533
101,503
128,250
154,035
138,219
146,188
272,809
292,931
329,368
343,312
391,991
696,805
798,905
864,829
841,588
924,551
4,174,627
4,276,136
4,209,564
4,458,682
4,556,355
4,467,535
4,455,137
4,811,119
4,549,026
4,238,664
168,929
132,607
106,521
70,374
127,367
271,786
451,406
963,670
1,882,696
1,054,661
-
397,527
1,481,305
1,390,283
1,166,832
1,105,829
1,149,534
1,223,788
1,348,465
1,462,429
100,110
68,329
117,763
84,664
-
-
124,792
-
-
-
1,419,512
637,975
35,884
48,773
35,128
692,939
755,996
772,773
930,764
971,040
904,867
690,629
692,951
531,974
722,702
(703,751)
(233,569)
760,590
820,663
551,974
44,673,945
46,893,456
49,513,544
52,093,679
53,915,251
56,591,677
59,940,733
63,685,881
67,157,393
64,317,605
66,161
60,752
40,045
34,063
40,282
104,618
158,805
385,513
746,865
368,999
(141,979)
-
41,630
-
4,199
13,185
57,466
2,873
9,500
(84,752)
(904,867)
(690,629)
(692,951)
(531,974)
(722,702)
703,751
233,569
(760,590)
(820,663)
(551,974)
(980,685)
(629,877)
(611,276)
(497,911)
(678,221)
821,554
449,840
(372,204)
(64,298)
(267,727)
43,693,260
46,263,579
48,902,268
51,595,768
53,237,030
57,413,231
60,390,573
63,313,677
67,093,095
64,049,878
Governmental activities 4,193,682
5,129,392
7,829,664
6,246,004
8,741,666
6,746,137
7,013,970
11,758,647
6,944,040
15,295,579
Business -type activities 2,425,654
(552,176)
922,920
(641,073)
939,525
5,451,249
4,031,443
4,219,878
4,427,467
2,102,186
Total primary government $ 6,619,336
$ 4,577,216 $
8,752,594
$ 5,604,931 $
9,681,191 $
12,197,386 $
11,045,413
$ 15,978,525 $
11,371,507 $
17,397,765
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
Source: Comprehensive Annual Financial Reports
123
General Fund
Nonspendable
Restricted
Assigned
Unreserved/Umssigned
Total general fund
All Other Governmental Funds
Nonspendable
Restricted for:
Debt service
Capital projects
Other
Assigned
Total all other governmental funds
CITY OF EULESS, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting - Unaudited)
Table 3
2011 2012 2013 2014 20t5 2016 2017 20t8 2019 2020
$ 19,344
$
28,796
$
49,262
$
48,072
$
47,834
$
35,250
$
52,050
$
51,409
$
74,835
$
158,975
311,076
258,765
124,312
120,093
109,618
121,041
104,340
125,753
132,954
123,748
103,423
111,096
121,542
121,334
116,336
113,655
107,657
121,708
135,720
145,057
7,296,719
8,913,078
9,595,558
10,560,958
10,775,542
11,973,524
13,185,421
14,255,823
16,630,106
19,790,726
$ 7,730,562
$
9,311,735
S
9,890,674
$
10,850,457
S
11,049,330
$
12,243,470
$
13,449,468
$
14,554,693
$
16,973,615
S
20,218,506
$ 5,665
$
5,803
$
9,464
$
34,704
$
15,399
$
7,738
$
22,028
$
12,427
$
-
$
24,873
1,818,957
1,867,971
1,776,644
2,377,710
2,477,981
1,995,548
2,285,719
2,765,013
3,429,240
3,828,633
2,168,956
606,505
365,641
398,756
594,211
12,715,424
4,985,922
7,501,009
19,287,010
22,369,460
87,972
1,694,821
1,872,178
2,089,735
2,455,941
2,718,045
2,952,158
3,229,218
3,309,138
3,081,384
14,855,820
15,802,863
13,504,412
12,692,185
13,765,385
12,541,184
14,730,171
21,356,289
19,461,628
17,221,925
$ 18,937,370
S
19.977.963
S
17,528,339
S
17,593,090
$
19,308,917
$
29,977,939
$
24,975,998
$
34,863,956
$
45,487,016
$
46,526,275
Source: Comprehensive Annual Financial Reports
124
Revenues:
General property tax
Gross receipts tax
General sales tax
Car rental tax
Fines and fees
Licenses and permits
Investment income
DEA revenues
Intergovernmental
Rents and royalties
Other revenues
Total Revenues
Expenditures:
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Debt Service:
Principal
Interest and fiscal charges
Issuance costs
Capital outlay
Total expenditures
Excess (deficiency) ofrevenues
over (under) expenditures
Other Financing Sources (Uses):
Capital lease
Issuance of debt
Payment of escrow for refunding
Premiums on issuance of debt
Bond discount
Proceeds from sale of assets
Transfers in
Transfers out
Total other financing sources
Net change in fund balances
Debt service as a percentage
ofnoncapital expenditures
CITY OF EULESS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting - Unaudited)
Table 4
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
$ 11,786,579 $
12,382,757
$ 12,893,583
$ 13,468,394
$ 14,351,598
$ 14,771,632
$ 16,674,673
$ 18,652,639 $
20,408,581
$ 22,736,528
4,513,819
4,623,205
4,599,755
4,871,154
5,032,879
5,265,843
5,382,292
5,829,983
5,528,832
5,309,401
13,252,805
14,957,757
16,142,357
17,525,123
18,359,717
20,364,878
21,252,491
20,728,209
21,419,831
22,088,364
12,457,910
12,933,884
13,592,255
14,082,518
14,112,552
14,842,109
14,401,763
14,776,566
14,797,320
10,042,659
4,033,868
4,278,738
4,627,199
4,646,390
4,289,681
4,461,439
3,961,369
3,806,964
3,313,059
2,835,050
744,978
1,233,465
1,152,875
1,286,753
1,379,332
1,682,431
1,997,082
1,847,315
2,105,716
1,673,143
143,564
107,195
92,118
57,880
105,443
237,949
385,769
821,642
1,623,907
869,827
6,589
12,488
3,571
15,316
39,292
18,274
9,994
2,656
18,353
13,678
377,660
1,012,673
2,839,545
461,484
906,695
507,966
1,490,142
813,633
629,332
3,738,184
1,233,686
1,111,873
1,024,021
1,390,283
637,196
612,365
628,486
668,036
635,553
635,464
1,194,966
1,206,611
1,383,172
1,210,086
1,795,395
1,943,007
1,996,374
2,217,797
2,362,730
2,387,958
49,746,424
53,860,646
58,350,451
59,015,381
61,009,780
64,707,893
68,180,435
70,165,440
72,843,214
72,330,256
4,335,786
4,676,100
5,171,477
5,558,463
5,704,520
6,023,057
6,324,436
6,372,535
6,258,492
6,785,529
1,340,898
688,296
806,275
1,017,903
882,212
862,571
931,119
1,036,278
1,001,587
1,065,028
15,610,772
15,539,673
17,207,934
17,711,441
18,357,428
18,975,116
18,985,489
19,790,021
19,038,500
18,727,050
713,742
861,748
1,144,223
1,351,404
1,606,372
1,688,714
1,616,714
1,222,905
4,555,735
1,322,786
19,492,862
21,074,399
22,192,488
23,121,457
23,521,280
24,698,550
26,068,993
26,977,362
27,738,238
28,322,488
3,445,000
8,210,000
3,975,000
5,567,404
4,284,197
3,530,000
3,848,825
4,761,697
4,828,848
4,605,000
1,798,615
1,361,259
1,241,776
1,148,069
1,243,589
1,743,450
1,516,936
1,662,399
1,943,495
2,627,550
178,229
184,966
26,064
-
-
-
-
-
-
-
4,805,147
3,727,193
10,390,582
2,672,010
9,086,345
14,871,624
10,600,631
6,839,864
8,979,048
16,839,574
51,721,051
56,323,634
62,155,819
58,148,151
64,685,943
72,393,082
69,893,143
68,663,061
74,343,943
80,295,005
(1,974,627)
(2,462,988)
(3,805,368)
867,230
(3,676,163)
(7,685,189)
(1,712,708)
1,502,379
(1,500,729)
(7,964,749)
494,322
-
1,446,603
-
-
249,370
-
-
-
9,610,000
9,740,000
1,160,000
11,400,000
20,760,000
-
9,805,000
13,420,000
12,345,000
(6,804,790)
(5,381,310)
(1,190,252)
(6,074,450)
-
-
-
-
390,694
260,435
79,046
789,428
403,354
264,116
869,936
524,348
-
-
-
- -
-
-
23,513
25,625
118,830
5,696,323
8,134,018
6,278,531
4,366,649 5,897,789
7,468,038
8,845,061
13,942,847
11,040,601
10,122,378
(5,016,456)
(7,668,389)
(5,839,245)
(4,209,345) (6,421,904)
(9,083,041)
(11,177,666)
(14,544,672)
(10,813,451)
(10,861,657)
4,370,093
5,084,754
1,934,683
157,304 5,590,863
19,548,351
(2,083,235)
9,490,804
14,542,711
12,248,899
$ 2,395,466 $ 2,621,766 $ (1,870,685) $ 1,024,534 $ 1,914,700 $ 11,863,162 $ (3,795,943) $ 10,993,183 $ 13,041,982 $ 4,284,150
Source: Comprehensive Annual Financial Reports
11.6% 18.5% 10.1% 12.1% 9.9% 9.2% 9.0% 10.4% 10.4% 11.4%
125
CITY OF EULESS, TEXAS
ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
— LAST TEN FISCAL YEARS
(Unaudited)
Table 5
Estimated Value
Total
Less:
Direct
Fiscal
Real
Personal
Total
Tax -Exempt
Total Taxable
Tax
Year
Property
Property
Value
Property
Value
Rate
2011
2,473,997,250
390,731,885
2,864,729,135
341,730,427
2,522,998,708
0.470000
2012
2,610,172,289
389,778,962
2,999,951,251
348,227,246
2,651,724,005
0.470000
2013
2,661,959,213
445,909,463
3,107,868,676
351,726,906
2,756,141,770
0.470000
2014
2,759,268,619
461,065,240
3,220,333,859
356,283,956
2,864,049,903
0.470000
2015
2,920,206,326
509,189,960
3,429,396,286
369,393,032
3,060,003,254
0.467500
2016
3,352,029,682
513,118,652
3,865,148,334
410,557,810
3,454,590,524
0.467500
2017
3,470,371,005
531,751,946
4,002,122,951
450,853,105
3,551,269,846
0.462500
2018
3,922,338,493
564,286,167
4,486,624,660
492,318,425
3,994,306,235
0.462500
2019
4,353,413,236
576,907,417
4,930,320,653
549,709,999
4,380,610,654
0.462500
2020
4,877,396,769
628,387,146
5,505,783,915
599,654,547
4,906,129,368
0.462500
Source: Tarrant Appraisal District
126
CITY OF EULESS, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES (per $100 of Assessed Value) - LAST TEN FISCAL YEARS
(Unaudited)
Table 6
City Direct Rates Overlapping Rates
General
Grapevine-
Tarrant County
Tarrant County
Fiscal
Operating /
Obligation Debt
Hurst -Euless-
Colleyville
Hospital
Conmmnity
Year
General Rate
Service
Total Direct Rate
Bedford ISD
ISD
Tarrant County
District
College
2011
0.343905
0.126095
0.470000
1.2882
1.2900
0.2640
0.2279
0.1376
2012
0.345388
0.124612
0.470000
1.4140
1.3100
0.2640
0.2280
0.1490
2013
0.355130
0.114870
0.470000
1.4075
1.3201
0.2640
0.2279
0.1490
2014
0.360619
0.109381
0.470000
1.3875
1.3201
0.2640
0.2279
0.1495
2015
0.364505
0.102995
0.467500
1.3750
1.3201
0.2640
0.2279
0.1495
2016
0.366571
0.100929
0.467500
1.3500
1.3201
0.2640
0.2279
0.1495
2017
0.363053
0.099447
0.462500
1.3160
1.3967
0.2540
0.2279
0.1447
2018
0.361056
0.101444
0.462500
1.2630
1.3967
0.2440
0.2244
0.1401
2019
0.371710
0.090790
0.462500
1.2730
1.3967
0.2340
0.2244
0.1361
2020
0.377974
0.084526
0.462500
1.2200
1.3267
0.2340
0.2244
0.1302
Sources: City of Euless Budget Office, Tarrant Appraisal District
127
Fiscal Year 2020
Taxpayer
Westdale Hills 2013 LP
EAN Holdings LLC
Star Monticello LLC/Star Kensington LLC
WOP Mandolin LLC
Brazos TX Partners LLC
Stoneleigh at Bear Creek Apt.
CMF 15 Portfolio LLC
Bedrock Holdings II (Dallas) LLC
Avenue 900 Holdings LLC
Creekwood Trinity Union LLC
Total
Source: Tarrant County Tax Office
CITY OF EULESS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
(Unaudited)
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Value Value (1) Taxpayer
$ 105,567,635
2.15 %
EAN Holdings, LLC
101,929,276
2.08
Avis Budget Group TLC
101,300,000
2.06
Hertz Corp
78,490,000
1.60
UDR The Mandolin LLC
75,060,000
1.53
Oncor Electric Delivery Co. LLC
66,300,000
1.35
Somerset Village Partners LP
61,390,000
1.25
CMF 15 Portfolio LLC
59,480,000
1.21
IRA Stoneleigh FEECO LLC
55,280,000
1.13
Seramont II LP
50,416,213
1.03
Glade 121 LP
$ 755,213,124
15.39 %
Total
Notes:
(1) Total Taxable Value including real and personal property for tax year 2019 (fiscal year 2020) is $4,906,129,368.
(2) Total Taxable Value including real and personal property for tax year 2010 (fiscal year 2011) is $2,522,998,708.
128
Table 7
Fiscal Year 2011
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Value Value (2)
$ 49,711,429
1.97 %
45,130,291
1.79
41,602,475
1.65
36,867,932
1.46
35,123,308
1.39
33,352,614
1.32
29,790,000
1.18
29,411,000
1.17
28,439,000
1.13
25,466,768
1.01
$ 354,894,817
14.07 %
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS — LAST TEN FISCAL YEARS
(Unaudited)
Table 8
Collected within the
Taxes Levied
Adjustments
Adjusted
Fiscal Year of the Levy
Total Collection
Delinquent Taxes
Within the
to Levy in
Taxes Levied
Collections
Fiscal
Fiscal Year
Subsequent
for the
Percentage
in Subsequent
Percentage
Percentage
Year
of the Levy
Years
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
Amount
of Levy
2011
11,796,659
(39,704)
11,756,955
11,637,719
98.99%
109,279
11,746,998
99.92%
9,956
0.08%
2012
12,436,816
(89,925)
12,346,891
12,252,510
99.24%
80,961
12,333,471
99.89%
13,420
0.11%
2013
12,926,215
(227,241)
12,698,974
12,648,635
99.60%
35,906
12,684,541
99.89%
14,433
0.11%
2014
13,426,248
(70,742)
13,355,506
13,303,694
99.61%
34,430
13,338,124
99.87%
17,382
0.13%
2015
14,245,865
(194,614)
14,051,251
14,049,020
99.98%
(13,154)
14,035,866
99.89%
15,385
0.11%
2016
13,671,980
870,161
14,542,141
14,481,033
99.58%
43,270
14,524,303
99.88%
17,838
0.12%
2017
15,828,162
376,910
16,205,072
16,191,555
99.92%
(4,616)
16,186,939
99.89%
18,133
0.11%
2018
18,199,497
(44,171)
18,155,326
18,131,429
99.87%
4,136
18,135,565
99.89%
19,760
0.11%
2019
19,850,820
(36,179)
19,814,641
19,769,021
99.77%
7,396
19,776,417
99.81%
38,224
0.19%
2020
22,134,132
-
22,134,132
21,970,578
99.26%
-
21,970,578
99.26%
163,554
0.74%
Source: Tarrant County Tax Office and Tarrant Appraisal District
129
CITY OF EULESS, TEXAS
RATIO OF OUTSTANDING DEBT BY TYPE — LAST TEN FISCAL YEARS
(Unaudited)
Governmental Activities
Business -Type Activities
Table 9
Premiums/
Premiums/
Discounts
General
Discounts
General
Certificates
Sales Tax
on Debt Issues
W&S
Obligation
on Debt Issues
Total
Percentage
Fiscal
Obligation
of Tax
Revenue
Capital
and Losses on
Revenue
Refunding
and Losses on
Primary
of Personal
Per
Year
Bonds
Obligation Notes
Bonds
Leases
Refundings (1)
Bonds
Bonds
Refundings (1)
Government
Income (3)
Capita (3)
2011
29,235,000
6,590,000
3,715,000
356,897
(373,493)
3,580,000
8,675,000
(825,449)
50,952,955
3.60%
$ 994
2012
29,915,000
3,230,000
2,910,000
272,526
(495,831)
3,435,000
8,165,000
(930,576)
46,501,119
3.37%
$ 903
2013
27,095,000
2,910,000
2,050,000
1,631,602
(396,737)
4,690,000
7,495,000
(610,729)
44,864,136
3.30%
$ 867
2014
24,070,000
2,780,000
1,175,000
94,196
622,367
(2) 4,285,000
6,915,000
237,146
(2) 40,178,709
2.53%
$ 731
2015
20,655,000
8,365,000
285,000
-
994,148
(2) 10,940,000
6,320,000
211,601
(2) 47,770,749
2.98%
$ 884
2016
17,425,000
27,710,000 1,280,000
120,000
-
1,497,876
(2) 10,305,000
5,695,000
186,063
(2) 64,218,939
3.94%
$ 1,184
2017
14,490,000
27,350,000 860,000
75,000
160,545
1,099,640
(2) 9,540,000
5,240,000
168,446
(2) 58,983,631
3.62%
$ 1,075
2018
11,460,000
35,660,000 735,000
40,000
83,848
1,211,502
(2) 11,545,000
4,770,000
150,830
(2) 65,656,180
3.82%
$ 1,190
2019
8,805,000
46,200,000 -
1,565,000
-
1,887,637
(2) 19,905,000
4,295,000
133,213
(2) 82,790,850
4.49%
$ 1,474
2020
6,040,000
51,710,000 1,110,000
5,450,000
2,195,218
(2) 18,725,000
3,805,000
115,597
(2) 89,150,815
4.48%
$ 1,549
Note: Details regarding the City's outstanding debt can be found in the notes to
the Financial Statements.
(1)
Column added to table
in 2016; prior year figures have been restated to
include amounts reflected.
(2)
Calculations for fiscal
years after 2013 do not include losses on refindings
due to their
balance sheet reclassification
to Deferred Inflows of Resources.
(3)
See Table 14 for personal income and population data.
130
CITY OF EULESS, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO TAXABLE ASSESSED VALUE AND NET BONDED DEBT PER CAPITA —
LAST TEN FISCAL YEARS
(Unaudited)
Table 10
General Bonded Debt Outstanding
Premiums/
Discounts
General
Certificates
on Debt Issues
Less: Debt
Net O/S
Net Debt
Net
General
Fiscal
Obligation
of
and Losses on
Service
Debt
Estimated
Taxable
to Taxable
Debt Per
Year
Bonds
Obligation
Refimdings (1)
Reserves
Total (6)
Population (2)
Value (3)
Value
Capita
2011
37,910,000
6,590,000
(1,074,877)
880,619
42,544,504
51,277
2,522,998,708
1.69%
$
830
2012
38,080,000
3,230,000
(1,126,577)
956,430
39,226,993
51,500
2,651,724,005
1.48%
$
762
2013
34,590,000
2,910,000
(721,626)
807,054
35,971,320
51,750
2,756,141,770
1.31%
$
695
2014
30,985,000
2,780,000
883,948
(5)
796,454
33,852,494
53,780
2,864,049,903
1.18%
$
629
2015
26,975,000
8,365,000
1,228,901
(5)
813,841
35,755,060
54,050
3,060,003,254
1.17%
$
662
2016 (4)
23,120,000
27,710,000
1,446,619
(5)
1,056,021
51,220,598
54,250
3,454,590,524
1.48%
$
944
2017
19,730,000
27,350,000
1,288,664
(5)
1,398,495
46,970,169
54,870
3,551,269,846
1.32%
$
856
2018
16,230,000
35,660,000
1,381,631
(5)
1,914,141
51,357,490
55,170
3,994,306,235
1.29%
$
931
2019
13,100,000
46,200,000
2,038,856
(5)
2,415,379
58,923,477
56,160
4,380,610,654
1.35%
$
1,049
2020
9,845,000
51,710,000
2,066,094
(5)
2,676,299
60,944,795
57,550
4,906,129,368
1.24%
$
1,059
Note: Details regarding the City s outstanding debt can be found in the Notes to the Financial Statements. Total does not include revenue bonds.
Source: (1) Column added to table in 2016, prior years restated to include amounts shown.
(2) Estimates by North Central Texas Council of Governments and Euless Planning and Development Department
(3) Tarrant Appraisal District
(4) Taxable value restated to fiscal year end amounts.
(5) Calculations for fiscal years after 2013 do not include losses on refundings due to their balance sheet reclassification to Deferred Inflows of Resources.
(6) For the 9/30/2018 and beyond presentations, tax notes and leases were removed as these debt instruments are not considered bonded debt.
131
CITY OF EULESS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2020 — (Unaudited)
Table 11
Estimated
Estimated
Share of
Debt
Percentage
Overlapping
Governmental Unit
Outstanding
Applicable
Debt
Debt repaid with property taxes
Grapevine-Colleyville Independent School District
$ 399,400,437
10.14% $
40,499,204
Hurst -Euless -Bedford Independent School District
364,720,000
21.01%
76,627,672
Tarrant County
240,445,000
2.50%
6,011,125
Tarrant County Hospital District
16,135,000
2.50%
403,375
Tarrant County College District
264,175,000
2.50%
6,604,375
Subtotal, overlapping debt
130,145,751
Debt repaid with property taxes
City of Euless (direct debt)
60,591,236
100.00%
60,591,236
Total direct and overlapping debt repaid with property taxes
$
190,736,987
Notes: The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages were
estimated by determining the portion of another governmental units taxable value that is within the City's boundaries and
dividing it by each unit's total taxable value.
The current year calculation of direct debt includes all general governmental activities debt excluding sales tax
revenue bonds which are not repaid with property taxes. Amounts shown have been adjusted for losses on prior
refundings, premiums, and discounts.
Source: Debt outstanding data provided by Municipal Advisory Council of Texas and City records.
132
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS — LAST TEN FISCAL YEARS
(Unaudited)
Table 12
Fiscal Total
Year Revenues
i
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
20,148,834
18,714,408
19,399,314
19,729,539
21,182,560
24,311,965
24,353,525
27,828,648
27,603,615
27,683,951
Less
Operating
Expenses (2)
15,952,372
15,824,724
16,660,397
18,269,093
17,879,209
18,625,302
19,249,699
20,880,984
21,006,298
23,101,386
Net
Revenue
Available
4,196,462
2,889,684
2,738,917
1,460,446
3,303,351
5,686,663
5,103,826
6,947,664
6,597,317
4,582,565
Interest
and
Fiscal
Principal
Charges
270,000
161,333
90,000
105,785
330,000
82,110
405,000
122,229
410,000
129,703
635,000
181,747
765,000
175,682
780,000
184,154
915,000
191,327
1,180,000
306,354
Notes: (1) Operating and nonoperating revenues of water and wastewater fund
(2) Total operating expenses of water and wastewater fund exclusive of depreciation and amortization
133
Coverage
Total Ratio
431,333
195,785
412,110
527,229
539,703
816,747
940,682
964,154
1,106,327
1,486,354
9.73
14.76
6.65
2.77
6.12
6.96
5.43
7.21
5.96
3.08
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE DRAINAGE UTILITY BONDS — LAST TEN FISCAL YEARS
(Unaudited)
Table 13
Interest
Less
Net
and
Fiscal
Total
Operating
Revenue
Fiscal
Coverage
Year
Revenues (1)
Expenses (2)
Available Principal
Charges
Total Ratio
2011
$ 699,709
$ 519,622
$ 180,087 -
-
- n/a
2012
707,165
604,994
102,171 -
-
- n/a
2013
711,154
567,215
143,939 -
-
- n/a
2014
715,800
663,625
52,175 -
-
- n/a
2015
717,763
581,364
136,399 -
-
- n/a
2016
812,399
666,628
145,771 -
-
- n/a
2017
741,055
629,112
111,943 -
-
- n/a
2018
840,916
741,964
98,952 -
-
- n/a
2019
860,553
764,267
96,286 -
-
- n/a
2020
846,154
705,464
140,690 -
-
- n/a
Notes: (1) Operating and nonoperating revenues of drainage utility fund
(2) Total operating expenses of drainage utility fund exclusive of depreciation and amortization
134
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS — LAST TEN FISCAL YEARS
(Unaudited)
Table 14
Personal
Per
Income
Fiscal
Estimated Capita
(thousands
Median
School
Unemployment
Year
Population (1) Income (2)
of dollars)
Age (2)
Enrollment (3)
Rate (4)
2011
51,277 $ 27,590
$ 1,414,732
34.4
21,071
7.3%
2012
51,500 $ 26,820
$ 1,381,230
34.4
21,570
6.6%
2013
51,750 $ 26,299
$ 1,360,973
34.6
21,814
5.4%
2014
53,780 $ 28,947
$ 1,556,770
31.8
22,138
5.0%
2015
54,050 $ 29,651
$ 1,602,637
34.7
22,762
3.6%
2016
54,250 $ 30,054
$ 1,630,430
34.9
23,090
3.8%
2017
54,870 $ 29,730
$ 1,631,285
34.9
23,425
3.2%
2018
55,170 $ 31,117
$ 1,716,725
34.9
23,632
3.5%
2019
56,160 $ 32,810
$ 1,842,610
36.1
23,624 (5)
3.6%
2020
57,550 $ 34,575
$ 1,989,791
35.3
23,756
8.9%
Notes: (1)
Estimates by North Central Texas Counc11
of Governments
(2)
Estimates by Claritas Site Reports; Research & Demographic
Solutions; 2014. forward. from US Census Bureau
(3)
Hurst -Euless -Bedford Independent School District
(4)
Texas Workforce Commission; Bureau
of Labor Statistics
(5)
Updated from projected to actual
135
CITY OF EULESS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
(Unaudited)
Table 15
2020* 2011
Percentage of
Percentage of
Estimated Total
Estimated Total
Employer
Employees
City Employment
Employer
Employees
City Employment
LSG Sky Chefs, Inc.
1,000
4.14%
HEB ISD
833
3.41%
HEB ISD
845
3.50%
LSG Sky Chefs, Inc.
571
2.34%
Autogrill Group, Inc.
450
1.87%
Autogrill Group, Inc.
462
1.89%
City of Euless
392
1.62%
City of Euless
362
1.48%
Target
250
1.04%
Redi-Mix Concrete
350
1.43%
Lowe's
225
0.93%
Life Outreach International
186
0.76%
Redi-Mix Concrete
192
0.80%
Super Target
180
0.74%
Life Outreach International
186
0.77%
Lowe's
110
0.45%
Dave and Buster's
150
0.62%
Home Depot
117
0.48%
Lazy Dog
125
0.52%
TJ Lambrecht Construction
120
0.49%
Total
3,815 15.81%
Source: City of Euless Planning and Development Department
* Prior year data used if updated information was unavailable.
136
3,291 13.47%
CITY OF EULESS, TEXAS
FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS
(Unaudited)
Table 16
Function/Program
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
General Government
and Administration
48.50
48.50
48.50
48.50
48.00
49.50
50.00
51.00
50.50
50.50
Public Safety
121.00
129.00
132.00
135.00
136.00
136.00
136.00
137.00
137.00
139.00
Fire Safety
71.00
72.00
72.00
72.00
72.00
72.00
75.00
75.00
75.00
75.00
Development Services
13.50
6.00
6.00
7.50
7.50
7.50
8.00
7.50
7.50
7.50
Culture and Recreational
31.00
32.00
30.50
33.25
34.25
34.25
35.25
35.25
35.25
34.25
Water and Wastewater
42.00
42.50
42.00
42.00
42.00
42.50
42.50
43.50
43.00
44.00
Golf Course
13.00
13.00
12.00
10.75
11.75
11.75
11.75
11.75
11.75
11.75
Public Works
17.50
18.50
18.50
18.50
20.00
20.00
21.00
22.50
23.50
23.50
Service Center
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
Risk Management / Insurance
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
Total
364.00
368.00
368.00
374.00
378.00
380.00
386.00
390.00
390.00
392.00
Source: City Budget Office
137
CITY OF EULESS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS
(Unaudited)
Table 17
Function/Program
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Public Safety
Police
Number of Certified Officers
85
85
87
92
92
92
87
91
91
86
Number of Citations Issued
21,790
22,787
26,356
25,500
24,573
18,483
25,061
19,100
16,552
11,154
Fire
Number of Certified Firefighters
69
70
70
70
70
70
72
73
74
72
Number of Alarms
4,196
4,204
4,296
4,505
4,686
4,770
4,678
3,758
4,324
4,735
Number ofEMS Calls
2,848
2,982
3,108
3,230
3,424
3,431
3,772
3,468
2,958
3,256
Municipal Court
Cases Filed
27,022
26,889
32,192
31,172
28,885
25,957
25,061
25,101
22,472
15,400
Development
Number Residential Inspections - New
52
44
42
107
176
186
176
214
93
3
Number Commercial Inspections - New
11
29
16
29
33
15
36
32
18
12
Number Multifamily Inspections - New
0
0
0
1
1
0
0
1
6
0
Public Works
Street Overlay (Square Footage)
953,406
368,654
540,613
631,260
430,504
1,156,833
1,549,065
1,063,046
1,289,759
1,010,016
Cultural and Recreational
Parks and Recreation
Recreati on Center Memberships
4,337
3,654
5,137
6,261
6,742 (1)
6,975
6,528
7,183
7,125
2,820
Water and Wastewater
Number of Water Consumers
24,924
24,428
25,039
25,319
26,014
25,812
25,970
26,200
26,659
27,467
Water Produced (In Gallons x 1000)
477,914
299,107
416,843
380,864
741,225
540,921
439,255
580,337
569,697
8,520
Water Purchased - TRA (In Gallons x 1000)
2,566,370
2,440,539
2,133,211
2,154,469
1,628,651
1,787,547
1,766,692
1,767,677
1,586,667
2,250,350
Water Supplied (In Gallons x 1000)
3,044,284
2,739,646
2,550,054
2,535,333
2,369,876
2,328,468
2,205,947
2,348,014
2,156,364
2,258,870
Annual Rainfall (In Inches)
22.26
36.57
24.41
23.98
44.45
53.16
34.96
42.39
48.20
45.00
Golf Course
Number of Paid Rounds Played
35,075
34,550
35,890
22,110 (2)
33,735
32,852
33,237
32,557
32,016
30,860
Source: City Departments
Comprehensive Annual Financial Report
City Budget Office
Notes:
�1 Amount restated to include recreation, aquatic and senior memberships.
(2) Golf course closed for 3 %a months for renovations in 2014.
138
CITY OF EULESS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS
(Unaudited)
Table 18
Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Public Safety
Police Stations
1
1
1
1
1
1
1
1
Fire Stations
3
3
3
3
3
3
3
3
Public Works
Streets - Paved
332.1
332.4
333.4
340.62
342.8
344.77
350.12
350.12
Cultural and Recreational
Aquatic Facilities
3
3
4
3
3
3
3
3
Parks (2)
16
16
16
16
16
16
16
16
Parks Land (Acres) (3)
341
341
341
341
341
341
341
341
Other Facilities (Acres) (3)
291
291
291
291
291
291
291
291
Comnnuuty Buildings
6
6
6
6
6
6
6
6
Ampitheater
2
2
2
3
3
3
3
3
Conference Centre
1
1
1
1
1
1
1
1
Golf Course
1
1
1
1
1
1
1
1
Softball Facility (4)
1
1
1
1
1
1
1
1
Athletic Fields
33
33
33
28
28
30
30
30
Library Holdings
110,149
111,230
111,312
105500
98596
101160
85,123
80,241
Water and Wastewater
Water Mains - Potable (5)
228.50
227.99
231.06
232.28
234.84
235.50
236.30
239.10
Water Mains - Reclaimed (5)
-
-
1.73
3.22
3.70
3.82
3.96
4.12
Fire Hydrants
1,526
1,550
1,579
1,633
1,648
1,674
1,719
1,798
Wastewater Mains (5)
186.7
187.6
187.6
191.3
192.4
193.2
195.2
197.0
Source: City Departments
(') Fiscal years to 2010 are reported in linear miles.
2011 to current are reported in lane miles.
(2) Restated to exclude Softball Facility
(3) Restated to reflect Golf Course and Softball Facility
land separately
(4) Added Softball Facility
(5) Miles of lines. Fiscal year 2012 figures have been restated to exclude
approximately two miles of TRA lines that had been accidentally
included as City lines.
139
1 1
3 3
351.74 351.74
3
2
16
16
341
341
291
291
6
6
3
3
1
1
1
1
1
1
30
30
81,353
82,501
241.93
242.28
7.15
11.65
1,805
1,836
198.4
201.0
140
AFFIDAVIT OF PUBLICATION
Account #
Order Number
Identification
Order PO
Amount
Cols
Depth
10663
23514
Print Legal Ad - IPL0014360
$1134
1
1.81
Attention: Mike Lowry
CITY OF EULESS
201 N ECTOR DR
EULESS, TX 760393543
Cit�r a! @+dart.
Pu61ic Hailce ur Ji�t11Y
A1hr��; LAP, a Urn at Icwacd car-
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dW Eulase Mjhio IJbrnry for vmv h�
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8aerauiry �tt
Irt0014M
Mar 12 2021
City of Euless
Public Notice of AudR
Weaver, L.L.P., a firm of licensed cer-
ed public accountants, has Issued
an unmodified ("clean") opinion on the
City of Euless financial statements for
the year ended September 30, 2020.
The report fulfills the requirements
of state law and the City's home rule
charter. A complete copy of the Com-
prehensive Annual Financial Report is
online at www.eulesstx.gov and on file
in the office of the City Secretary and
the Euless Public Library for view by
the general public. Kim Sutter, City
Secretary.
IPL0014360
Mar 12 2021
APR 1 ju
2 2021
CITY OF EULESS
THE STATE OF TEXAS
COUNTY OF TARRANT
Before me, a Notary Public in and for said County
and State, this day personally appeared Amanda
Grisham, Bid and Legal Coordinator for the Star -
Telegram, published by the Star -Telegram, Inc. at
Fort Worth, in Tarrant County, Texas; and who,
after being duly sworn, did depose and say that
the attached clipping of an advertisement was
published in the above named paper on the listed
dates:
No. of Insertions:
Beginning Issue of: 03/01/2021
Ending Issue of: 03/30/2021
Sworn to an su scri e e ore me t is 30t ay o
March in the year of 2021
Notary Public in and for the state of Texas, resi ing in
Dallas County
6. jj
'P .I e
Extra charge for lost or duplicate affidavits.
legal document please do not destroy!