HomeMy WebLinkAboutFY 2021 Annual Comprehensive Financial ReportCity of Euless
Annual Comprehensive Financial
Report
Fiscal Year Ending September 30, 2021
201 N. Ector Drive, Euless, TX 76039 www.eulesstx.gov
T H E C I T Y O
EULESS
City of Euless, Texas
Annual Comprehensive Financial Report
Fiscal Year Ending
September 30, 2021
Prepared by
City of Euless
Finance Department
201 North Ector Drive
Euless, TX 76039
T H E C I T Y O
EULESS
CITY OF EULESS, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2021
CONTENTS
INTRODUCTORY SECTION
Page(s)
Letter of Transmittal i vn
City Officials vin
Organizational Chart ix
GFOA Certificate of Achievement x
Independent Auditor's Report
1-3
Management's Discussion and Analysis (unaudited)
5-17
Basic Financial Statements
Government -Wide Financial Statements
Statement ofNet Position
18
Statement of Activities
19
Fund Financial Statements
Governmental Funds
Balance Sheet
20-21
Reconciliation of the Governmental Funds Balance Sheet to the
Statement ofNet Position
23
Statement of Revenues, Expenditures and Changes in Fund Balances
24-25
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities
27
Proprietary Funds
Statement ofNet Position
28-29
Statement of Revenues, Expenses, and Changes in Net Position
30-31
Statement of Cash Flows
32-33
Fiduciary Funds
Statement ofNet Position
34
Statement of Changes in Fiduciary Net Position
35
Notes to Basic Financial Statements
36-77
Required Supplementary Information
Schedule of Changes in Net Pension Liability
and Related Ratios (Texas Municipal Retirement System)
80
Schedule of Contributions (Texas Municipal Retirement System)
81
Schedule of Changes in Net OPEB Liability and Related Ratios
82
Schedule of Contributions — OPEB Trust
83
Budgetary Comparison Schedules
General Fund
84-85
Car Rental Special Revenue Fund
86
Grant Special Revenue Fund
87
Notes to Required Supplementary Information
88
Combining and Individual Fund Statements and Schedules
Non -Major Governmental Funds
Combining Balance Sheet
92-95
CITY OF EULESS, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2021
CONTENTS -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
96-99
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Hotel/Motel Special Revenue Fund
100
Half -Penny Sales Tax Special Revenue Fund
101
Police Drug Enforcement Special Revenue Fund
102
Crime Control and Prevention District Special Revenue Fund
103
Police Seized Assets Special Revenue Fund
104
Juvenile Case Special Revenue Fund
105
TIRZ #3 Glade Parks Special Revenue Fund
106
Midtown Public Improvement District Special Revenue Fund
107
TIRZ #4 Midtown Special Revenue Fund
108
Cable PEG Fees Special Revenue Fund
109
Internal Service Funds
Combining Statement ofNet Position
111
Combining Statement of Revenues, Expenses, and Changes in Net Position
112
Combining Statement of Cash Flows
113
STATISTICAL SECTION (Unaudited)
Table
Net Position by Component
1
117
Changes in Net Position
2
118-119
Fund Balances, Governmental Funds
3
120
Changes in Fund Balances, Governmental Funds
4
121
Estimated Actual Value of Taxable Property
5
122
Direct and Overlapping Property Tax Rates
6
123
Principal Property Taxpayers
7
124
Property Tax Levies and Collections
8
125
Ratio of Outstanding Debt by Type
9
126
Ratio ofNet General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita.
10
127
Direct and Overlapping Governmental Activities Debt
11
128
Schedule of Revenue Bond Coverage Water and Wastewater Bonds
12
129
Demographic Statistics
13
130
Principal Employers
14
131
Full time City Government Employees by Function/Program
15
132
Operating Indicators by Function/Program
16
133
Capital Asset Statistics by Function/Program
17
134
INTRODUCTORY SECTION
T H E C I T Y O
EULESS
February 22, 2022
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 Annual
Comprehensive Financial Report for the City of Euless, Texas ("City") for the fiscal year
ended September 30, 2021. 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,
2021, 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, 2021, 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.
i
201 N. Ector Drive, Euless TX 76039-3595
817/685-1400 Metro 817/267-4403 Fax 817/685-1416
www.eulesstx.gov
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 58,260.
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.
ii
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 73 million passengers
in 2019.
According to the North Texas Commission, DFW is the 4th 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 with a median age of 35.3, a Gross
Domestic Product of $613.4 billion, a labor force of over 3.9 million with the fifth largest
concentration of tech workers in the United States, a 2.8% job growth rate, is home to 24
Fortune 500 Firms, and boasts college enrollment of over 367,000 in 33 colleges and
universities making their home in the region. 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 27,000-acre master -planned,
mixed -use community which is home to 530 companies, 63,000 employees, and is
m
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 spurs economy in Northeast Fort
Worth). As noted by AllianceTexas, despite the historically unprecedented challenges to
the economy created by the global pandemic, more than $8.24 billion of economic impact
was generated in 2020 alone, exceeding the economic impact generated in 2019 by nearly
$1 billion. This is evidence of the sustainability of the region as an economic engine and
a place where business can thrive amidst the toughest of circumstances.
Taxable value for all residential and commercial property in the City of Euless is
estimated at approximately $5.3 billion for tax year 2021, which is a 2.76% increase from
the prior year, due to increases in both residential and commercial real estate property
values. Sales tax collections increased during FY2020-21 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 significantly reduced in FY2020-21 but is rebounding.
The City Council has chosen to continue to use this funding source to support general
government operations and to cash flow capital projects in lieu of debt issuance when
possible. The City has been very cautious to not become overly dependent on this
volatile resource while providing for needed improvements for citizens.
The City of Euless has approximately 442.53 acres of undeveloped land. Parcels remain
available at Glade Parks, Founders Parc, and the Riverwalk! development in addition to
several infill tracts.
The Dallas Cowboys AT&T Stadium and Texas Rangers Globe Life Field and Globe
Life Park in Arlington are located within minutes of Euless and, continue to attract
additional tourism to the City by hosting concerts and sporting events, although these
have been limited due to the COVID-19 pandemic.
Population with a median age of 35.3 years (U.S. Census Bureau American Community
Survey 2019) has increased from 51,500 to 58,260 in ten years (North Central Texas
Council of Governments). 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
Community Survey 2019). The educational level is 89.5% high school graduate or
higher (U.S. Census Bureau American Community Survey 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.
iv
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 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). The current operating reserve is at 155 days of
operations which equates to approximately 42% 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
139-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, 2021, 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.
v
The City's Capital Improvements Program and Americans With Disability Act (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, 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.
The FY2019 Street Reconstruction Project -Phase I project is underway. 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 is being performed in two phases. This first phase includes
Harwood Road, S. Pipeline Road and Highland Drive. The second phase is scheduled for
bid in the fall of 2022. Both the FY2022 Sanitary Sewer Rehabilitation and the Bear
Creek Elementary School Drainage Channel Improvements projects are being engineered
currently. The water well replacement projects at the Far North Well and Fuller Well are
near completion with only flushing, testing, and final authorization needed.
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. Building is continuing on this
development of 259 new single-family homes, 285 urban lofts, and over 57,000 square
feet of retail and commercial space. 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.
vi
There are currently six active residential subdivisions in the City.
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 Annual
Comprehensive Financial Report for the fiscal year ended September 30, 2020. 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 Annual Comprehensive Financial Report, 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 34 consecutive years. We believe that
the current Annual Comprehensive Financial Report 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 30 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,
G X X ���
Loretta Getchell
City Manager
Janina Jewell
Director of Finance
vn
City of Euless
FISCAL YEAR 2021-2022
Council Members
LINDA MARTIN, MAYOR
Tim Stinneford, Mayor Pro Tem, Place One
Jeremy Tompkins, Place Two
Eddie Price, Place Three
Perry Bynum, Place Four
Harry Zimmer, Place Five
Tika Paudel, Place Six
Loretta Getchell, City Manager
Chris Barker, Deputy City Manager
Vlll
F
v�
N
o
p ❑
u
M N
O
f0 �
I
Qa w
_T
Ll LL
z 0
u
C
.0
U
N
U'
m
,d
l9
`o
J
ca
O 'c
CJ o3
J 7,
a u
d J
u
Z
L
'
1
2
U
J
vF
N
J
z
z
0
OC
w
Ol
LL7
O
p
a
t7
N
z
�
Q
0
J
u
a
� m
�
a
V vi
n E
Y
W � w
rV`J\
p
con
W
U
w c
Z
W
ka
u
u
z
2 W
a ty
w
u
00
m
Z
W
z 3
Ll
W
S O
a
CL O
3
Z Y
u
O
u Y
7
u!
a �,
O Z
ccc
._
2 Z
d 2
LL
K
G
0
a
G
GW
'-+
cr
cc Occ
G u
C
O
a
a
cn
z z
O
¢
w
U
O
2 a
°
O
G
Z
Q
u
m D
w o
Q W W
❑"
W N
W
L.1 U
h
L
W dA
a
C
C
f6
OG
J 4
O
Y
0~C
W d
F-'
o •3
} CO
F `
P. U
LL
{� L.1 .0
rj
_ LJ
u2
W
V1a
❑
}�'
a
,�
_ cr
aN
V
Zpvu
L
r
oe0 o
0
W a
Y
a�
@
Q�
a 6
a
u
Q
Q
J
V
°
Za
0
ix
G�9
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Euless
Texas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2020
Executive Director/CEO
x
FINANCIAL SECTION
Xl
T H E C I T Y O
EULESS
Xii
weaver
Assurance • Tax • Advisory
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, 2021, 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,
2021, 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. Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 Dallas, Texas 75201
Main: 972.490.1970
CPAs AND ADVISORS I WEAVER.COM
The Honorable Mayor,
City Council and City Manager
Emphasis of Matter
As discussed in Note 1 to the basic financial statements, during the year ended September 30, 2021, the
City implemented Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary
Activities. Beginning net position in the custodial fund has been restated as a result of the
implementation of this standard. Our opinions are not modified with respect to this matter.
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.
2
The Honorable Mayor,
City Council and City Manager
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 21,
2022, 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
February 21, 2022
3
T H E C I T Y O
EULESS
CITY OF EULESS, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2021
(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, 2021. 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-vii of this report) and the
statistical section (pages 117-134 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 is 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 $268,084,428 (net
position). This number must be viewed in the context that the vast majority of the City's net
position of $195,410,709 (73%) 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 $12,115,090 (4%). The remaining $60,558,629
(23%) 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 $15,748,731 and business -type
activities realized an increase in total net position of $3,090,700 bringing the total increase in net
position for the City to $18,839,431.
• At the close of the current fiscal year, the City of Euless' governmental funds reported combined
ending fund balances of $69,829,149 which represents an increase of $3,084,368. Within this total,
$4,316,041 is restricted for debt service; $18,996,535 is restricted by bond covenant for capital
projects; $117,674 and $196,357 are restricted for court technology and juvenile case management,
respectively; and another $2,220,321 is restricted for capital projects by developer agreements.
Amounts restricted for cable PEG fees and historical preservation total $589,452 and $1,245,
respectively. Nonspendable fund balance of $224,695 represents fund balance amounts for
5
inventories and prepaid items. Fund balances of $22,926,159 represent assigned fund balance in the
general, special revenue, and capital projects funds. The unassigned fund balance in the General
Fund of $20,240,670 can be used for any lawful purpose. The General Fund unassigned balance
represents 48% of fiscal year 2021 total fund expenditures.
• The City's total capital assets (net of accumulated depreciation) increased by $10,172,523 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 $1.2 million or 1.3% due primarily to the issuance of
certificates of obligation 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 functions of the City include general and administrative,
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 enterprises.
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.
6
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, Grant, and
Street CIP funds, all of which are considered to be major funds. Data from the other eighteen
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, Car Rental Tax, and Grant 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 20-27 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
7
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 28-33 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 34 and 35 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 36-77 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, Car Rental Tax, and Grant
funds are also located in this section of the report. Required supplementary information can be found on
pages 80-88 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 92-113 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 $268,084,428 as of
September 30, 2021.
The largest portion of the City's net position (73%) 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.
8
An additional portion of the City's net position (4%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position of
$60,558,629 (23%) may be used to meet the City's ongoing obligations to citizens, creditors, and
employees.
Net Position
Governmental
Amounts shown in 000's activities
Current and other assets
Capital assets
Total assets
Total deferred outflows
Long-term liabilities
Other liabilities
Total liabilities
Total deferred inflows
Net position:
Net investment in
capital assets
Restricted
Unrestricted
Total net position
Business -type
activities
Total
2021
2020
2021
2020
2021
2020
$ 107,655
$ 94,017
$ 38,350
$ 39,129
$ 146,005
$ 133,146
179,771
170,321
85,268
84,545
265,039
254,866
287,426
264,338
123,618
123,674
411,044
388,012
4,287
4,444
1,121
1,200
5,408
5,644
91,089
92,497
25,223
27,435
116,312
119,932
19,275
11,350
5,237
6,369
24,512
17,719
110,364
103,847
30,460
33,804
140,824
137,651
6,331
5,665
1,213
1,094
7,544
6,759
130,460 104,019 64,951
7,441 30,103 4,674
37,117 25,148 23,441
$ 175,018 $ 159,270 $ 93,066
66,555 195,411 170,574
8,693 12,115 38,796
14,728 60,558 39,876
$ 89,976 $ 268,084 $ 249,246
As of September 30, 2021, 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 was true for the prior year.
The City's unrestricted net position increased by $20,682,839 in fiscal year 2021 as compared to the
unrestricted net position for the prior year. Restricted net position realized a decrease of $26,680,690
and the amount invested in capital assets, net of related debt increased by $24,837,282. The increase in
total net position of almost $19 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 the removal of the portion restricted for capital
projects. The amounts restricted for debt service and impact fees increased by $487,810 and $237,210,
respectively. The other restrictions, excluding amounts previously shown as restricted for CIP, realized
a net reduction of just over $80,000. The details of the results of current year operations are found in the
table shown on the following page.
9
Changes in Net Position
Governmental
Business -type
Amounts shown in 000's
Activities
Activities
Totals
2021
2020
2021
2020
2021
2020
REVENUES
Program revenues:
Charges for services
$ 5,868
$ 6,140
$ 35,198
$ 32,016
$ 41,066
$ 38,156
Operating grants and contributions
811
3,595
-
-
811
3,595
Capital grants and contnbutions
396
2,191
1,002
2,678
1,398
4,869
General revenues:
Property taxes
24,196
22,837
-
-
24,196
22,837
Sales taxes
24,373
22,088
-
-
24,373
22,088
Car rental taxes
13,063
10,043
-
-
13,063
10,043
Mixed beverage taxes
171
146
-
-
171
146
Occupancy taxes
1,183
925
-
-
1,183
925
Gross receipts taxes
4,220
4,239
-
-
4,220
4,239
Investment income
124
1,055
42
369
166
1,424
Rents and royalties
1,574
1,462
-
-
1,574
1,462
Gain on asset disposal
-
-
-
(85)
-
(85)
Miscellaneous
1,082
971
-
-
1,082
971
Total revenues
77,061
75,692
36,242
34,978
113,303
110,670
EXPENSES
Culture and recreation
6,890
5,539
-
-
6,890
5,539
Development services
904
1,063
-
-
904
1,063
General government
20,604
20,828
-
-
20,604
20,828
Highways and streets
3,906
3,602
-
-
3,906
3,602
Public safety
27,489
27,355
-
-
27,489
27,355
Interest and fiscal charges
2,507
2,561
-
-
2,507
2,561
Water and wastewater
-
-
24,824
25,333
24,824
25,333
Drainage utility
-
-
1,572
1,502
1,572
1,502
Golf course
-
-
4,201
3,997
4,201
3,997
Recreation enterprises
-
-
1,568
1,491
1,568
1,491
Total expenses
62,300
60,948
32,165
32,323
94,465
93,271
Increase (decrease) in net position
before transfers
14,761
14,744
4,077
2,655
18,838
17,399
Transfers
987
552
(987)
(552)
-
-
Increase (decrease) in net position
15,748
15,296
3,090
2,103
18,838
17,399
Net position, beginning
159,270
143,974
89,976
87,873
249,246
231,847
Net position ending
$ 175,018
$ 159,270
$ 93,066
$ 89,976
$ 268,084
$ 249,246
• Governmental activities. Governmental activities increased the City's net position by $15,748,731
thereby accounting for most of the growth (84%) in total net position. Many revenue categories,
including property taxes, sales taxes, occupancy taxes, car rental taxes and mixed beverage taxes
exceeded prior year receipts and budget expectations. Gross receipt taxes and investment income
fell short of prior year collections and budget projections. Charges for services dropped below prior
year levels and both operating and capital grants and contributions were less than last year. 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 $14,762,093.
10
Total revenue for the governmental activities (excluding transfers) increased from the previous year
by $1.4 million primarily due to a net increase in general revenues of $6.2 million exceeding
declines in program revenues of approximately $4.85 million. General revenues are primarily
comprised of property taxes, sales taxes, and car rental taxes. Property tax revenue increased due to
an overall increase in taxable values of 5.9% over the prior year values (See Statistical Table 5).
Reopening of the economy along with relaxation of strict social distancing measures as well as the
availability of vaccines advantageously affected sales tax collections which increased nearly $2.3
million. Lifting of flight restrictions resulted in increased travel that also led to much -improved car
rental tax collections. By the end of the fiscal year, monthly collections were exceeding pre -
pandemic levels. Total governmental program revenues, which consist of charges for services,
grants, and contributions, realized a decrease of $4.85 million. In the prior year, culture and
recreation revenues took a large hit from the closure of the recreation center, senior center, and the
water park, as well as the cancellation of all scheduled classes. The "return to normal" allowed for
the reopening of these facilities which led to increased program revenues of $285,000. Development
services revenues declined by approximately $120,000 due to a decline in building permits of
$177,000 which was partially offset with an increase in minimum housing of $57,000. General and
administrative charges realized a decrease of $380,000 due in part to continued declines in municipal
court revenues of $115,000. Miscellaneous revenue, which also falls into this category, dropped
nearly $266,000. Last year, a miscellaneous one-time payment of close to $300,000 was recorded for
the ambulance supplemental payment program. No such payment was recorded in the current fiscal
year. Public safety charges increased by $37,000 for the year. Revenues from drug enforcement
activities increased by more than $100,000 while jail revenue from holding federal prisoners
dropped $72,000 due to a decline of approximately 50% in the number of detainees housed. The
Midtown PID assessment accounts for the decrease in highways and streets program revenues of
$94,000. A flow -through of federal CARES Act funding from Tarrant County of more than $3
million was recorded in the prior year, whereas public safety grants for the current year totaled
$793,000. Developer contributions of infrastructure and other contributed capital are primarily
responsible for the decrease of $1.8 million in capital grants and contributions.
Total expenses of governmental activities increased by $1.46 million from FY2020 to FY2021.
While there was no traditional raise package for employees, two 2% lump -sum raises were awarded
to employees that met length -of -service requirements. The lump -sum raise packages for employees
account for an increase in governmental activities expenses of approximately $1.3 million in total.
Pension -related entries decreased expenses $2.97 million for the current year primarily due to the
recording of changes in and amortization of deferred outflows and deferred inflows combined with a
decrease in the net pension liability. In the prior year, these entries decreased salary -related
expenses of governmental activities by $175,000. 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 $224,000 compared to a
decrease in expenses of $85,000 in the prior year. The FY2021 allocation of internal service fund
activity decreased governmental expenses by $9,318,000, whereas the prior year expenses were
reduced by $12,053,000. This equates to an increase year -over -year (expense reduction was less) of
$2.735 million. The large reduction in prior year expenses results mainly from the allocation of
funding life -to -date accumulated replacement costs on essential equipment. In the current year, the
value of only one year's replacement costs was funded. Fluctuations in depreciation expense as a
result of the acquisition and disposal of capital assets increased by $408,000 over the prior year.
Interest and fiscal charges declined by $54,000 due to a reduction in scheduled payments. The net
position of general governmental operations accounts for 65% of total net position.
11
• Business -type activities. Business -type activities increased the City's net position by $3,090,700.
The change in net position before transfers is $4,077,338. Charges for services program revenues
for the business -type activities increased from the previous year by $3.2 million due primarily to
increased Water and Wastewater ("W&WW") revenues and golf revenues of $1.6 million and
$987,000, respectively. An increase in volume rates in both water consumption and wastewater
treatment accounts for a portion of the increased revenues in the water and wastewater fund.
However, the true -up refund of almost $934,000 from Trinity River Authority ("TRA") is primarily
responsible for the increased revenues in this operation. In the prior year, the golf facilities closed or
scaled back operations for much of the fiscal year due to the pandemic, capacity limitations, and
shelter in place orders. In the current year, the golf course reached the highest level of paid rounds
achieved in the last ten years. Capital grants and contributions decreased by close to $1.7 million
due primarily to decreased developer contributions of infrastructure.
Overall, total business -type expenses realized a net decrease for the year of $159,000 combined. Net
pension and net OPEB related entries decreased salary and benefit costs by more than $597,000 in
the business -type activities this year compared to a decline of only $61,000 in the prior year. Water
purchases and wastewater treatment costs dropped from the prior year as a result of decreases in
consumption and treatment volumes. Increased costs of $204,000 at the golf course resulted from
the increase in rounds and revenues. Drainage utility and other recreation enterprises realized
expense increases of $70,000 and $77,000, respectively. Net position for business -type activities
represents 35% 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 $69,829,149, which represents an increase of $3,084,368 in comparison with prior
year. Approximately 29% or $20.2 million constitutes unassigned fund balance in the general fund that
is available for spending at the City's discretion. Another $224,695 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
($4,316,041); 2) to pay for specific capital improvements per developer agreements ($2,220,321); 3)
restricted by bond covenant for specific capital projects ($18,996,535); and 4) for a variety of other
restricted purposes ($904,728). 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 $22,926,159 and includes assigned fund balance in the general fund
of $164,801 and $22,761,358 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 (i.e. a planned reduction) of
$5,508,032 (revised). Due to a positive budget variance in overall revenues and expenditures, the
General Fund ended the year with an increase to fund balance of $528,248. This figure represents a
positive budget variance of $6,036,280 resulting primarily from sales tax collections as well as licenses
12
and permit revenues exceeding expectations. Expenditure savings of $2 million, before transfers results
primarily from savings in general and administrative costs of almost $1.4 million.
Several General Fund revenue categories realized increases over the prior year including property tax
collections, general sales tax receipts, intergovernmental revenue, and pool revenue. The reopening of
the economy, relaxation of strict social distancing measures, and the availability of vaccines allowed for
a "return to normal" that resulted in increased sales tax revenues of $1.4 million over the prior year.
Taxable property values increased by 5.9% over the prior year values. The resulting increase in property
tax collections of just over $1 million helped to offset reductions in several other revenue categories.
These categories include fines and fees, licenses and permits, investment income, rental income, and
miscellaneous income. Telephone and cable gross receipt taxes declined as providers of both services
were required to remit taxes on only one type of service per changes in State law. Municipal court fines
dropped by more than $102,000 and building permits declined by over $176,000. Swimming pool
revenues increased due to the re -opening of the water park in the current fiscal year. In the prior year,
the recreation and senior centers 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 $201,000 was realized. However, total revenues surpassed
prior year levels by nearly $1.8 million.
Expenditures increased $2.4 million or 6% over the prior year, and ended the fiscal year under budget
parameters by more than $2 million. In the prior year 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. Funding to cover these expenditures was provided via a flow -through grant
from Tarrant County of their federal CARES Act allocation. For the current fiscal year, these costs were
recorded in the general fund and funded by the operating budget. In addition to the $3.1 million, public
safety salary and benefit costs increased by approximately $933,000 due to the temporary relocation of
costs for four police officers to the general fund, the two one-time employee raises, changes in employee
health and dental coverage elections and associated premiums, and retirement contributions. Many of
the City's benefits are salary -based and increase automatically when any type of raise becomes
effective. Other public safety expenditures declined by $363,000 due primarily to the reduction in
equipment replacement user fees charged to the patrol and EMS/Suppression divisions. Non -
departmental expenditures, which are classified in the general and administrative expenditure category,
increased by $932,000 primarily due to an increase in transfers to CIP of $2.3 million to fund street
overlay and property purchases less a decline in equipment user fee transfers of $1.5 million. The
decline is due to funding life -to -date replacement costs of equipment in the prior year. Public safety
supplies decreased by close to $247,000 due to a reduction in expenditures required for the City's
COVID response. February's winter storm left much of Texas blanketed in ice with record -breaking
cold temperatures. Many residents were left without electric and water services due to the extreme
weather conditions. The City's electric service costs were impacted by ancillary fees charged by the
power provider due to interruptions in the power grid and spikes in purchase costs. Culture and
recreation realized an overall increase in expenditures due to increased costs for mowing City facilities
and rights -of -way as well as land betterments and structural maintenance. Expenditures in highways
and streets rose by nearly $257,000 primarily as a result of resumed spending on capital expenditures for
streets, sidewalks and curbs, traffic signals, and lighting that were placed on hold in the prior year due to
uncertainties in the revenue stream.
The Debt Service fund balance increased $477,900 which is $547,765 better than the expected
drawdown of $69,865. The positive variance results primarily from property tax collections surpassing
13
projections by approximately $363,000 combined with the premium collected on the issuance of debt
that also exceeded expectations by $147,000. Issuance costs were $76,000 less than anticipated.
The Car Rental Tax fund balance was originally anticipated to increase $316,013, but ended the year
with an increase of $2,698,343 resulting primarily from a significant turnaround in car rental revenues
due to relaxation of travel restrictions imposed during the first months of the pandemic and the public's
reluctance to fly when these travel restrictions were lifted. The availability of vaccines also had a
positive impact on the travel industry, thereby positively impacting car rental taxes which increased by
$3 million over the prior year. Investment income was approximately $110,000 less than prior year
levels due to falling market rates. Per contractual agreement, the car rental revenues are shared with the
cities of Dallas and Fort Worth. Increased collections led to a $2 million increase in expenditures, while
capital outlay declined by $114,000. Transfers to other funds decreased by nearly $3.9 million due to an
almost 50% reduction in the general fund transfer, elimination of the transfer to the golf course, and a
reduction in the transfers for project funding of nearly $2.4 million.
The Streets CIP fund balance increased by $1.6 million due to the issuance of debt and associated
premium of $5.5 million, transfers in of $1 million, and project expenditures totaling $4.9 million. The
FY2021 street improvement project consisting of edge milling, asphalt overlay, and restriping of various
City streets incurred costs of close to $1 million during the fiscal year. The FY2019 street project for
the reconstruction of Pipeline Road, Highland Drive, Harwood Road, and Mills Drive incurred current
fiscal year expenditures of $3.6 million.
The non -major governmental funds realized a combined decrease in fund balance of $2,197,811; special
revenue funds contributed an increase of $4,526,725, while the capital projects funds reduced the
balance by $6,724,536. Almost all governmental CIP funds realized fund balance decreases as
expenditures ramped up on projects funded (at least partially) in the prior fiscal year. Current year
project funding from transfers totaled $2.5 million while project expenditures totaled $9.3 million.
Hotel/motel collections exceeded expectations and prior year collections by $655,000 and $258,000,
respectively. Hotel/motel fund expenditures and transfers out were both down from the prior year. This
fund added $630,000 to fund balance for the year. The Half -Penny Sales Tax (EDC) fund added almost
$2 million to fund balance primarily resulting from increased sales taxes as discussed previously.
Expenditures decreased by $892,000 due to a decrease in parks user fees for equipment replacement;
while transfers out were close to those of the prior year. The Crime Control and Prevention District
(CCPD) fund added $905,000 to fund balance in the current year as a result of increased sales tax
collections and an $850,000 reduction in expenditures. Salary and benefit costs decreased in the CCPD
fund by approximately $406,000 primarily as a result of temporarily moving the cost of four police
officers to the General fund in anticipation of a decline in sales tax collections that did not materialize.
One-time project expenditures dropped by $363,000 as several approved projects were moved to
equipment replacement. The TIRZ #3 Glade Parks fund increased fund balance by $791,000 primarily
due to the collection of property and sales taxes from participating entities outpacing debt service
expenditures.
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
fell short of that of a "normal" year by nearly three inches and was also short of prior year levels by
almost 12".
The W&WW fund realized an increase in operating income resulting primarily from increased operating
revenues combined with a decline in expenses of $820,000. The W&WW fund revenues increased $1.6
million resulting from rate increases, restoration of late fees and penalties, and the true -up refund from
14
TRA discussed previously. Water purchases and wastewater treatment costs fell by $638,000 combined.
Non -departmental expenses dropped by $314,000 overall. Salary and benefit expenses in this
department declined by almost $430,000 due to changes in the net pension and net OPEB liabilities,
related deferred inflows and outflows, as well as the amortization of the deferrals. Legal fees dropped by
$31,000 from the prior year; while electric service increased by $110,000 due to additional charges
incurred during the winter storm as discussed previously. Depreciation expense increased due to the
addition of capital assets outpacing asset retirements for this fund. Including nonoperating and other
revenues and expenses, an increase of almost $3.3 million was realized in the W&WW fund for
FY2021.
The golf course was fully operational during the year leading to increased revenues of $983,000 and net
expense increases of $47,000 leading to additional operating income of $937,000 over prior year levels.
Paid golf rounds were the highest seen in the last ten years. Entries relating to net pension and net OPEB
liabilities and related deferrals dropped salary expenses by almost $91,000. A reduction in user fee
transfers to equipment replacement totaled $65,000; while cost of goods sold increased by $131,000 for
food, beverage, and merchandise for resale due to higher sales.
The decrease in net position of the Drainage Utility fund results primarily from depreciation on drainage
infrastructure and capital assets. The Parks at Texas Star (included in other recreation enterprises)
reopened in March upon completion of facility renovations. Reopening of the PATS facility and the
recreation center and well as the reinstatement of recreation classes improved revenues by $549,000;
reductions in equipment user fees resulted in lower operating expenses.
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, 2021, totaled $265,039,155 (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 $10,172,523 or about 4%. 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 Del Paso Phases I and II wastewater line replacement, CDBG-CV funding
of a canopy at the senior center, and developer asset dedications totaling just over $1 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
public works, remodel of the park's maintenance building, mowers for parks, a debris management
plan, several police vehicles, and a variety of public safety equipment. The remodel of the library
was completed in FY2021 at a total cost of $8.2 million.
• Construction -in -progress related to general government activity of $26,565,928 primarily consists of
FY2019 Street Reconstruction ($5.1 million), Fire Station #1 ($3.3 million), and Midtown
Development ($18 million).
• Phase I of the Midway Park Yd Addition wastewater line was completed at a total cost of $289,000.
El Camino Real wastewater line replacement was finished during the year at a cost of $425,000.
Miscellaneous Drainage Improvements and Texas Star Slope Wall Phase I were also completed at a
cost of $149,000 and $100,000 respectively. The PATS North remodel was also completed in the
current fiscal year for a cost of $4.3 million.
15
• Capital asset additions for the business -type activities include, but are not limited to, purchase of a
pressure washer, an engine for super loader/back hoe, tire changer, wheel balancer, and a two -ton
mini -split HVAC for the golf course starter house.
• Construction -in -progress related to business -type operations of $10,428,441 primarily consists of the
Well Replacement project.
Capital Assets (Net of Accumulated Depreciation)
Governmental
Business -type
Amounts shown in 000s
activities
activities
Total
2021
2020
2021
2020
2021
2020
Land
$ 37,237
$ 35,207
$ 3,619 $
3,619
$ 40,856
$ 38,826
Buildings
38,646
32,069
1,303
1,427
39,949
33,496
Other improvements
12,838
9,001
8,738
9,245
21,576
18,246
M&E
11,915
10,628
1,440
1,684
13,355
12,312
Infrastructure
52,569
52,646
59,740
61,208
112,309
113,854
Construction in
Progress
26,566
30,770
10,428
7,362
36,994
38,132
Total
$179,771
$170,321
$ 85,268 $
84,545
$ 265,039
$ 254,866
Additional information on the City's capital assets can be found in Note 3 on pages 53-54 of this report.
Long-term debt. At fiscal year-end, the City's outstanding debt totaled $87,267,916 net of unamortized
losses on prior refundings. Of this amount, $64,298,588 comprises debt backed by the full faith and
credit of the government, where $5,533,372 is the amount of self -supported debt for Texas Star Golf
Course and Stars Center. The remainder of the City's debt, $22,969,328, represents bonds secured
solely by specific revenue sources (i.e. revenue bonds).
Outstanding Debt
Governmental
Business -type
Amounts shown in 000s
activities
activities
Total
2021
2020
2021
2020
2021
2020
GO Bonds
$ 4,115 $
6,040
$ 3,295 $
3,805
$ 7,410 $
9,845
COs
54,930
51,710
-
-
54,930
51,710
GO/CO deferred loss
(133)
(203)
(278)
(325)
(411)
(528)
Tax notes
2,370
1,110
-
-
2,370
1,110
Revenue bonds
5,245
5,450
17,780
18,725
23,025
24,175
Revenue deferred loss
-
-
(56)
(74)
(56)
(74)
Totals
$ 66,527 $
64,107
$ 20,741 $
22,131
$ 87,268 $
86,238
In fiscal year 2021, the City issued $5,360,000 in new certificates of obligation and $1,625,000 in tax
notes. No new debt was issued for the City's enterprise operations during the year. The City's total
debt increased $1,114,754 (exclusive of deferred losses) or 1.25% during fiscal year 2021 and 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 55-61.
16
Economic Factors and Next Year's Budgets and Rates
In the FY2021-22 budget, General Fund revenues and transfers in are budgeted to increase by 10% from
the FY2020-21 original budget. Property taxes account for 42% of budgeted revenues and sales taxes
comprise approximately 32% of budgeted revenues. Certified assessed valuations as of July 25, 2021
increased 2.76% from the preceding year.
In the FY2021-22 budget, sales tax receipts are projected to show a 2.3% increase from FY2020-21
estimated collections. The car rental tax receipts are budgeted below prior year actual collections due
mainly to the timing of budget preparation. By the end of FY2020-21, monthly car rental tax receipts
were exceeding pre -pandemic levels and this trend is anticipated to continue into FY2021-22. However,
the budget preparation work was completed prior to the upward trend.
Baseline budgeted expenditures in the General Fund are projected to increase approximately 10% from
the FY2020-21 original budget. The addition of three firefighters and three police officers are included
in the FY2021-22 General Fund budget. The proposed employee pay plan includes a baseline salary
increase of 2% as well as funding to provide one-time lump sum payments of up to 3% based on
employee performance. The City elected to use excess reserves to fund capital needs. The property tax
rate increased from 46.25¢ per $100 of taxable assessed valuation to 47.5¢ per $100 of taxable assessed
valuation for FY2021-22.
For the Water and Wastewater Fund, the FY2021-22 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 annual funding of $1,075,000 for pay-as-
you-go capital expenses. Projects include water and wastewater line replacements, replacement of the
I Water Well, and the expansion of the reclaimed water system.
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 GoWeek. 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 $5,463,868
including ARPA funds of $942,868 and proposed operating expenses of $4,515,970 comprise the
FY2021-22 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 jje� well(d),eulesstx.gov.
17
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF NET POSITION
SEPTEMBER 30, 2021
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
accurmn ated depreciation
Total assets
Primary Government
Governmental Business -type
Activities Activities Total
$ 79,512,079 $ 24,081,645 $ 103,593,724
9,714,233
4,522,216
14,236,449
(4,009,849)
4,009,849
-
11,195
235,621
246816
1,172,244
55,738
1,227:982
21,254,969
5,444,395
26,699,364
63,802,876 14,046,986 77,849,862
115,967,879 71,221,414 187,189,293
287,425,626 123,617,864 411,043,490
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 3,497,967 658,048 4,156,015
Deferred outflows related to OPEB 656,287 128,952 785,239
Deferred charges on refunding 133,121 333,963 467,084
Total deferred outflows of resources
LIABILITIES
Accounts payable
Contracts 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 OPEB
Deferred inflows related to pension
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for
Debt service
Impact fees
Developer agreements
Court technology
Juvenile cases
Cable PEG fees
Historical preservation
Unrestricted
Total net position
4,287,375 1,120,963 5,408,338
10,497,195
2,394,628
12,891,823
1,606,418
248,907
1,855,325
1,693,155
192,593
1,885,748
280,947
88,094
369,041
5,196,973
86,206
5,283,179
-
2,227,093
2,227,093
5,165,690 1,519,375 6,685,065
85,923,520 23,703,262 109,626,782
110,363,898 30,460,158 140,824,056
693,397 131,044 824,441
5,637,362 1,081,541 6,718,903
6,330,759 1,212,585 7,543,344
130,459,839 64,950,870 195,410,709
4,316,041
1,426,103 5,742,144
-
3,247,897 3,247,897
2,220,321
- 2,220,321
117,674
- 117,674
196,357
- 196,357
589,452
- 589,452
1,245
- 1,245
37.117.415
23.441.214 60.558.629
$ 175,018,344 $ 93,066,084 $ 268,084,428
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 charges
Total governmental activities
Business -type activities
Water and wastewater
Drainage utility
Golf course
Other recreation enterprises
Total business -type activities
Total primary government
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2021
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
$ 6,890,021
$ 295,097
$ 255
$ 33,958
$ (6,560,711) $ - $
(6,560,711)
903,633
1,578,146
-
-
674,513 -
674,513
20,604,298
687,136
17,474
-
(19,899,688) -
(19,899,688)
3,905,567
982,070
-
362,359
(2,561,138) -
(2,561,138)
27,489,405
2,325,458
793,092
-
(24,370,855) -
(24,370,855)
2,507,261
-
-
-
(2,507,261) -
(2,507,261)
62,300,185
5,867,907
810,821
396,317
(55,225,140) -
(55,225,140)
24,823,460
28,571,921
- 992,893
1,571,836
842,003
- 9,500
4,201,337
4,350,610
- -
1,568,441
1,433,139
- -
32,165,074
35,197,673
- 1,002,393
$ 94,465,259 $
41,065,580 $
810,821 $ 1,398,710
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
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.
- 4,741,354
4,741,354
- (720,333)
(720,333)
- 149,273
149,273
- (135,302)
(135,302)
- 4,034,992
4,034,992
(55,225,140) 4,034,992
(51,190,148)
24,195,500
-
24,195,500
24,373,082
-
24,373,082
13,062,591
-
13,062,591
171,687
-
171,687
1,182,845
-
1,182,845
4,221,250
-
4,221,250
123,646
42,346
165,992
1,574,739
-
1,574,739
1,081,893
-
1,081,893
986,638
(986,638)
-
70,973,871
(944,292)
70,029,579
15,748,731
3,090,700
18, 839,431
159,269,613
89,975,384
249,244,997
$ 175,018,344 $
93,066,084
$ 268,084,428
19
CITY OF EULESS, TEXAS
BALANCE SHEET — GOVERNMENTAL FUNDS
SEPTEMBER 30, 2021
Debt
Car
General
Service
Rental Tax
Fund
Fund
Fund
ASSETS
Deposits and investments
$ 19,342,943
$ 3,151,225
$ 10,522,075
Receivables
Property taxes
514,857
172,589
-
Accounts receivable
1,066,579
-
-
Accrued interest receivable
4,903
-
430
Due from other governments
2,876,481
-
2,575,540
Prepaids and deposits
212,414
-
-
Inventories, at cost
11,195
-
-
Restricted deposits and investments
-
-
-
Total assets
$ 24,029,372
$ 3,323,814
$ 13,098,045
LIABILITIES
Accounts payable $ 1,150,497 $ - $ 8,209,435
Contracts payable _ _ -
Accrued liabilities 743,527 - -
Totalliabi7ities
1,894,024
- 8,209,435
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes
514,857
169,615 -
Unavailable revenue - other
873,737
- -
Total deferred inflows of resources
1,388,594
169,615 -
FUND BALANCES
Nonspendable
Prepaids, deposits, and inventories
223,609
- -
Restricted for
Debt service
-
3,154,199 -
Capital projects
-
- -
Developer agreements
-
Court technology
117,674
- -
Juvenile case management
-
Cable PEG fees
-
- -
Historical preservation
_
_ _
Assigned
164,801
- 4,888,610
Unassigned
20,240,670
- -
Total fund balances
20,746,754
3,154,199 4,888,610
Total liabilities, deferred inflows of resources,
and fund balances
$ 24,029,372 $ 3,323,814 $ 13,098,045
The Notes to the Basic Financial Statements
are an integral part of these statements.
20
Streets Non -major Total
Grants CIP Governmental Governmental
Fund Fund Funds Funds
$ 5,191,147 $ 647,905 $ 20,066,133 $ 58,921,428
- - 57,735 745,181
8,476 - 471,617 1,546,672
- 582 895 6,810
- - 1,727,494 7,179,515
- - 1,086 213,500
- - - 11,195
- 14,101,500 6,501,453 20,602,953
$ 5,199,623 $ 14,749,987 $ 28,826,413 $ 89,227,254
$ 21 $ 418,702 $ 407,214 $ 10,185,869
- 777,061 829,357 1,606,418
1,642 - 100,947 846,116
1,663 1,195,763 1,337,518 12,638,403
- - - 684,472
5,196,973 - 4,520 6,075,230
5,196,973 - 4,520 6,759,702
1,086 224,695
1,161,842 4,316,041
- 13,324,439 5,672,096
18,996,535
- - 2,220,321
2,220,321
- - -
117,674
- - 196,357
196,357
- - 589,452
589,452
- - 1,245
1,245
987 229,785 17,641,976
22,926,159
- - -
20,240,670
987 13,554,224 27,484,375
69,829,149
$ 5,199,623 $ 14,749,987 $ 28,826,413 $ 89,227,254
21
T H E C I T Y O
EULESS
22
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2021
Total fund balances - governmental funds $ 69,829,149
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. 173,923,842
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. (280,947)
Internal service fields 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. 23,109,604
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 1,562,729
Funds comprising the OPEB liability ($9,021,829), deferred inflows ($693,397)
and deferred outflows $656,287 of resources related to the OPEB are not current
financial resources and therefore are not reported in the governmental funds
balance sheet. (9,058,939)
Funds comprising the net pension liability ($10,905,541), deferred inflows
($5,637,362) and deferred outflows $3,497,967 of resources related to the
pension are not current financial resources and therefore, are not reported in the
governmental funds balance sheet. (13,044,936)
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 fiend financial
statements. (71,022,158)
Net position of governmental activities $ 175,018,344
The Notes to the Basic Financial Statements
are an integral part of these statements.
23
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2021
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)
Issuance of debt
Premiums on issuance of debt
Proceeds from sale of assets
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Debt Car
General Service Rental Tax
Fund Fund Fund
$ 18,192,851 $4,063,262 $ -
4,131,593 - -
171,687 - -
14,829,385 - -
- - 13,062,591
2,702,221 - -
1,552,088 - -
62,639 2,130 6,447
431,328 - -
- 538,000 -
1,058,324 - -
43,132,116 4,603,392 13,069,038
3,110,410 - -
679,551 - -
10,599,479 - 8,699,147
1,180,954 - -
26,195,908 - -
4,430,000 -
- 2,272,662 -
273,277 - 53,558
42,039,579 6,702,662 8,752,705
1,092,537 (2,099,270) 4,316,333
1,625,000 -
- 261,414 -
16,400 - -
2,246,496 2,385,756 -
(2,827,185) (1,695,000) (1,617,990)
(564,289) 2,577,170 (1,617,990)
528,248 477,900 2,698,343
20,218,506 2,676,299 2,190,267
$ 20,746,754 $ 3,154,199 $ 4,888,610
The Notes to the Basic Financial Statements
are an integral part of these statements.
24
Grants
Fund
Streets
CIP
Fund
Non -major
Governmental
Funds
Total
Governmental
Funds
$ -
$ -
$ 1,888,580
$ 24,144,693
-
-
1,272,502
5,404,095
-
-
-
171,687
-
-
9,543,698
24,373,083
-
-
-
13,062,591
-
-
-
2,702,221
-
-
-
1,552,088
-
7,646
24,308
103,170
-
-
117,144
117,144
361,763
-
-
793,091
-
-
173,814
711,814
-
-
1,067,204
2,125,528
361,763
7,646
14,087,250
75,261,205
20,454
-
2,989,506
6,120,370
-
-
245,368
924,919
-
-
582,937
19,881,563
-
-
-
1,180,954
174,940
-
2,163,966
28,534,814
- - 205,000
4,635,000
- - 189,725
2,462,387
191,756 4,930,534 9,430,282
14,879,407
387,150 4,930,534 15,806,784
78,619,414
(25,387) (4,922,888) (1,719,534) (3,358,209)
-
5,360,000
-
6,985,000
-
140,000
-
401,414
-
-
4,125
20,525
25,963
1,000,000
2,535,728
8,193,943
-
-
(3,018,130)
(9,158,305)
25,963
6,500,000
(478,277)
6,442,577
576
1,577,112
(2,197,811)
3,084,368
411
11,977,112
29,682,186
66,744,781
$ 987
$ 13,554,224
$ 27,484,375
$ 69,829,149
25
T H E C I T Y O
EULESS
26
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, 2021
Net change in fund balances - total governmental funds $ 3,084,368
Amounts reported for governmental activities in the statement of activities are different
because:
Governmental fiords 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.
Govennnriental funds report cash proceeds from the disposal of capital assets as revenues,
while only the net gaindoss 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.
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.
The issuance of long-term debt provides current financial resources to governmental
funds, but has no effect on net position.
The repayment of the principal of long-term debt consumes current financial resources of
governmental funds, but has no effect on net position.
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.
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.
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
fiords.
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.
Changes in the net pension liability and related deferred inflows and outflows not
recognized on the fund financial statements under the modified accrual basis are
recognized on the accrual basis in the government -wide financial statements.
Internal service funds 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.
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.
Change in net position of governmental activities
14,879,407
339,635
(6,036,159)
(7,386,414)
4,635,000
94,624
49,229
(44,875)
223,813
2,970,786
2,595,708
343,609
$ 15,748,731
The Notes to the Basic Financial Statements
are an integral part of these statements.
27
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
SEPTEMBER 30, 2021
Business -Type Activities -
Governmental
Enterprise Funds
Activities -
Other
Total
Internal
Water and
Drainage
Golf
Recreation
Enterprise
Service
ASSETS
Wastewater
Utility
Course
Enterprises
Funds
Funds
Current assets
Deposits and investments
$ 19,985,831
$ 1,392,003
$ 1,397,974
$ 1,305,837
$ 24,081,645
$ 20,590,651
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$16,146 for water and wastewater and
$282 for drainage utility
4,200,046
99,325
200,612
14,840
4,514,823
232,468
Accrued interest receivable
7,393
-
-
-
7,393
3,587
Prepaids and deposits
46,274
8,448
1,016
55,738
958,744
Inventory
134,810
-
87,546
13,265
235,621
-
Total unrestricted current assets
24,374,354
1,491,328
1,694,580
1,334,958
28,895,220
21,785,450
Restricted deposits and investments
W&WW impact fees
3,247,897
-
-
-
3,247,897
-
Capitalprojects
770,395
770,395
652,016
Revenue bond reserve for debt service
1,426,103
1,426,103
-
Total restricted assets
5,444,395
-
-
-
5,444,395
652,016
Total current assets
29,818,749
1,491,328
1,694,580
1,334,958
34,339,615
22,437,466
Property, plant, and equipment in service, at cost
Land
1,576,667
559,826
897,520
584,532
3,618,545
Building
97,094
-
3,621,666
488,275
4,207,035
-
Equipment
1,604,377
10,380
521,774
1,658,791
3,795,322
16,039,445
Improvements
1,097,774
1,171,994
8,963,462
10,043,393
21,276,623
-
Construction in progress
10,428,441
-
-
-
10,428,441
Utility system
96,005,162
28,803,352
-
-
124,808,514
-
Total property, plant, and equipment in service
110,809,515
30,545,552
14,004,422
12,774,991
168,134,480
16,039,445
Less accumalated depreciation
50,280,219
17,344,212
8,659,753
6,581,896
82,866,080
10,192,532
Net property, plant, and equipment in service
60,529,296
13,201,340
5,344,669
6,193,095
85,268,400
5,846,913
Total non -current assets
60,529,296
13,201,340
5,344,669
6,193,095
85,268,400
5,846,913
Total assets
90,348,045
14,692,668
7,039,249
7,528,053
119,608,015
28,284,379
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension
496,520
51,681
93,229
16,618
658,048
-
Deferred outflows related to OPEB
94,867
12,098
18,846
3,141
128,952
Deferred charges on refimding
55,672
-
278,291
-
333,963
Total deferred outflows of resources
647,059
63,779
390,366
19,759
1,120,963
The Notes to the Basic Financial Statements
are an integral part of these statements.
28
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION - PROPRIETARY FUNDS - CONTINUED
SEPTEMBER 30, 2021
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable
Contracts 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
Deferred inflows related to OPEB
Total deferred inflows of resources
NET POSITION
Water and
Drainage Golf
Utility
Business -Type Activities -
Enterprise Funds
Other
Recreation
Enterprises
Governmental
Activities -
Total Internal
Enterprise Service
Funds Funds
$ 2,275,900 $
9,181
$ 62,480 $
47,067
$ 2,394,628
$ 311,326
248,907
-
-
-
248,907
-
110,574
15,008
57,501
9,510
192,593
4,196
945,000
-
520,000
-
1,465,000
-
26,492
2,241
7,001
1,025
36,759
656
-
-
-
-
-
842,843
-
86,206
86,206
-
78,534
-
9,560
-
88,094
-
3,685,407
26,430
742,748
57,602
4,512,187
1,159,021
2,093,337
-
133,756
-
2,227,093
-
1,548,121
132,179
271,888
46,283
1,998,471
1,246,754
137,092
256,930
42,822
1,683,598
16,819,566
-
2,888,415
-
19,707,981
-
238,424
20,171
63,010
9,223
330,828
5,905
21,946,202
289,442
3,613,999
98,328
25,947,971
5,905
25,631,609
315,872
4,356,747
155,930
30,460,158
1,164,926
790,039
103,372
161,254
26,876
1,081,541
-
94,902
13,057
19,787
3,298
131,044
884,941
116,429
181,041
30,174
1,212,585
Net investment in capital assets 43,341,890 13,201,340 2,214,545 6,193,095 64,950,870 6,498,929
Restricted for
Impact fees 3,247,897 - - - 3,247,897 -
Debt service 1,426,103 - - - 1,426,103 -
Unrestricted 16,462,664 1,122,806 677,282 1,168,613 19,431,365 20,620,524
Total net position $ 64,478,554 S 14,324,146 $ 2,891,827 $ 7,361,708 89,056,235 $ 27,119,453
Reconciliation to government -wide statement of net position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise fiords 4,009,849
Net position of business -type activities $ 93,066,084
The Notes to the Basic Financial Statements
are an integral part of these statements.
29
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION -
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2021
Business -Type Activities -
Governmental
Enterprise Funds
Activities -
Other
Total
Internal
Water and
Drainage
Golf
Recreation
Enterprise
Service
Wastewater
Utility
Course
Enterprises
Funds
Funds
Operating revenues
Water service
$ 15,217,265
$
$
$
$ 15,217,265
$
Reclaimed water service
696,759
696,759
Wastewater service
10,372,836
10,372,836
Drainage fees
-
842,003
842,003
Recreation fees
-
323,109
323,109
-
Insurance premiurns
-
-
-
6,702,736
Service fees and miscellaneous
2,287,992
4,347,010
1,109,630
7,744,632
3,637,605
Total operating revenues
28,574,852
842,003
4,347,010
1,432,739
35,196,604
10,340,341
Operating expenses
General and administrative
506,121
-
-
-
506,121
2,315,629
Water production
8,751,434
8,751,434
-
Water distribution
1,382,230
1,382,230
Utility engineering
369,771
369,771
Wastewater collection and treatment
5,477,052
5,477,052
Nondepartmental
3,780,293
3,780,293
Geographic information systems
672,916
672,916
Service center
1,182,479
-
1,182,479
Drainage
-
736,677
-
736,677
Recreation classes
-
-
281,161
281,161
GoTcourse
1,338,096
-
1,338,096
Pro shop
468,467
468,467
Food and beverage
1,254,095
1,254,095
Conference center
403,459
403,459
Cart operations
229,470
-
229,470
Parks at Texas Star
-
845,350
845,350
-
Insurance costs
-
-
-
-
-
6,306,389
Depreciation
2,270,442
805,589
401,704
458,069
3,935,804
1,473,356
Amortization
19,843
27,480
47,323
-
Total operating expenses
24,412,581
1,542,266
4,122,771
1,584,580
31,662,198
10,095,374
Operating income (loss)
4,162,271
(700,263)
224,239
(151,841)
3,534,406
244,967
The Notes to the Basic Financial Statements
are an integral part of these statements.
30
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION -
PROPRIETARY FUNDS - CONTINUED
YEAR ENDED SEPTEMBER 30, 2021
Business -Type Activities - Governmental
Enterprise Funds Activities -
Other Total Internal
Water and Drainage Golf Recreation Enterprise Service
Wastewater Utility Course Enterprises Funds Funds
Nonoperating revenues (expenses)
Gain (loss) on sale of capital assets
$ (2,931) $ - $ 3,600 $
400
$ 1,069 $
231,775
Investment income
40,779 630 458
479
42,346
20,475
Interest expense
(273,172) (82,213)
(355,385)
Total nonoperating revenues
(expenses), net
(235,324) 630 (78,155)
879
(311,970)
252,250
Income (loss) before contributions
and transfers
3,926,947 (699,633) 146,084
(150,962)
3,222,436
497,217
Developer contributions
992,893 9,500 -
1,002,393
Transfers in
- - 441,868
441,868
2,207,000
Transfers out
(1,642,465) (42,041)
(1,684,506)
-
Net income (loss)
3,277,375 (732,174) 587,952
(150,962)
2,982,191
2,704,217
Net position, beginning
61,201,179 15,056,320 2,303,875
7,512,670
24,415,236
Net position, end of year
$ 64,478,554 $ 14,324,146 $ 2,891,827 $
7,361,708
$
27,119,453
Reconciliation to govenunent-wide statement of net position
Adjustment to reflect the consolidation of internal
service fimds' activities related to enterprise funds
108,509
Change in net position of business -type activities
$ 3,090,700
The Notes to the Basic Financial Statements
are an integral part of these statements.
31
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2021
Business -Type Activities -
Governmental
Enterprise Funds
Activities -
Other
Total
Internal
Waterand
Drainage
Golf
Recreation
Enterprise
Service
Wastewater
Utility
Course
Enterprises
Funds
Funds
OPERATING ACTIVITIES
Cash received from customers
$ 28,111,619
$ 833,033
$ 4,292,035
$ 1,424,218
$ 34,660,905
$ 10,260,366
Cash payments to suppliers for goods and services
(20,363,839)
(332,790)
(2,120,919)
(743,266)
(23,560,814)
(9,420,864)
Cash payments to employees for services
(3,483,523)
(448,741)
(1,708,966)
(365,031)
(6,006,261)
(136,107)
Net cash provided by
operating activities
4,264,257
51,502
462,150
315,921
5,093,830
703,395
NONCAPITAL FINANCING ACTIVITIES
Transfer in
-
-
441,868
-
441,868
2,207,000
Transfer out
(1,642,465)
(42,041)
-
(1,684,506)
-
Net cash provided by (used in)
noncapitalfinancing activities
(1,642,465)
(42,041)
441,868
(1,242,638)
2,207,000
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees
456,687
-
456,687
-
Acquistion/construction of capital assets
(4,489,517)
(158,596)
(13,796)
(4,661,909)
(1,739,822)
Interest paid on bonds
(274,924)
(84,125)
(359,049)
Principal paid on bonds
(945,000)
-
(510,000)
(1,455,000)
Capital grant and developer contributions
536,206
9,500
-
-
545,706
-
Proceeds from sale of capital assets
-
-
3,602
398
4,000
231,775
Net cash provided by (used in) capital
and related financing activities
(4,716,548)
(149,096)
(604,319)
398
(5,469,565)
(1,508,047)
INVESTING ACTIVITIES
Interest received on investments
50,329
630
458
479
51,896
24,937
Net cash provided by investing activities
50,329
630
458
479
51,896
24,937
Net change in cash and cash equivalents
(2,044,427)
(139,005)
300,157
316,798
(1,566,477)
1,427,285
Cash and cash equivalents, beginning of year
27,474,653
1,531,008
1,097,817
989,039
31,092,517
19,815,382
Cash and cash equivalents, end of year
$ 25,430,226
$ 1,392,003
$ 1,397,974
$ 1,305,837
$ 29,526,040
$ 21,242,667
The Notes to the Basic Financial Statements
are an integral part of these statements.
32
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS - CONTINUED
YEAR ENDED SEPTEMBER 30, 2021
Reconciliation of operating income (loss)
to net cash provided by
operating activities
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization
Changes in assets and liabilities:
Accounts receivable and
unbi7led revenue
Prepaids and deposits
Inventory
Net OPEB liability
Net pension liability
Deferred outflows
Deferred inflows
Accounts payable
Accrued salaries and wages
Accrued insurance claims
Compensated absences
Customer and escrow
deposits
Unearned revenue
Net cash provided by
operating activities
Reconciliation of cash to balance sheet:
Cash- current
Cash - restricted
Cash and cash equivalents
Business -Type Activities -
Enterprise Funds
Other Total
Waterand Drainage Golf Recreation Enterprise
Wastewater Utility Course Enterprises Funds
Governmental
Activities -
Internal
Service
Funds
$ 4,162,271 $ (700,263) $ 224,239 $ (151,841) $ 3,534,406 $ 244,967
2,290,285 805,589 429,184 458,069 3,983,127 1,473,356
(543,868) (8,970) (77,471) (8,521) (638,830) (79,975)
(44,541) 5,647 (1,016) (39,910) (958,744)
(18,714) 9,348 (570) (9,936)
(147,634) (19,597) (31,356) (5,226) (203,813)
(380,897) (50,562) (80,899) (13,483) (525,841)
11,192 521 2,455 408 14,576
82,415 13,835 18,804 3,135 118,189
(1,229,442) 4,475 (99,725) 29,387 (1,295,305) (178,632)
19,874 2,993 37,826 3,638 64,331 1,423
- - - - - 201,000
(17,319) 3,481 1,602 1,941 (10,295) -
80,635 - 23,253 - 103,888
- - (757) - (757) -
$ 4,264,257 $ 51,502 $ 462,150 $ 315,921 $ 5,093,830 S 703,395
$ 19,985,831 $ 1,392,003 $ 1,397,974 $ 1,305,837 $ 24,081,645 $ 20,590,651
5,444,395 - 5,444,395 652,016
$ 25,430,226 $ 1,392,003 $ 1,397,974 $ 1,305,837 $ 29,526,040 S 21,242,667
The Notes to the Basic Financial Statements
are an integral part of these statements.
33
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION — FIDUCIARY FUNDS
SEPTEMBER 30, 2021
ASSETS
Investments at fair value
Investment pool
Money market account
Fixed income funds
Equity funds
Total assets
LIABILITIES
Refunds payable
Total liabilities
NET POSITION
Restricted for
Debt service
Other post -employment benefits
Total net position
Stars Center Escrow OPEB
Custodial Fund Trust Fund
$ 1,420,629 $ -
- 127,860
- 4,029,805
- 6,864,776
$ 1,420,629 $ 11,022,441
$ 82 $ -
82 -
1,420,547 -
- 11,022,441
$ 1,420,547 $ 11,022,441
The Notes to the Basic Financial Statements
are an integral part of these statements.
34
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED SEPTEMBER 30, 2021
Stars Center Escrom
OPEB
Custodial Fund
Trust Fund
ADDITIONS
Employer contributions
$ -
$ 1,515,094
Other contributions
-
281,524
Investment income
Investment income
673
1,682,549
Less: investment expense
-
(64,001)
Net investment income
673
1,618,548
Total additions
673
3,415,166
DEDUCTIONS
Payments to beneficiaries
673
-
Insurance claims
-
955,297
Administrative expenses
-
140,970
Total deductions
673
1,096,267
Change in net position
-
2,318,899
Net position - beginning of year
-
8,703,542
Cumulative effect of adoption of GASB 84
1,420,547
-
Net position - beginning of year, as restated
1,420,547
8,703,542
Net position - ending
$ 1,420,547
$ 11,022,441
The Notes to the Basic Financial Statements
are an integral part of these statements.
35
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
36
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 43) 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 43 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.
37
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
Grant Fund
The Grant Fund is used to account for grant revenues received by the City, which must be
spent in accordance with grant provisions.
38
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Basis of Presentation — Continued
Streets CIP Fund
The Streets CIP Fund is used to account for street construction and reconstruction
projects and the means of financing such improvements.
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 Parks at Texas Star, 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. All
revenues and expenses not meeting this definition are reported as non -operating revenues and
expenses. Operating expenses for the proprietary funds include the cost of personnel and
contractual services, supplies, and depreciation on capital assets.
39
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Basis of Presentation — Continued
The City also reports two fiduciary funds in the financial statements. The Stars Center Escrow
Custodial Fund is a custodial fund that 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.
Custodial funds account for resources held for others in a custodial capacity. This fund type is
used to account for assets held by the City as an agent. This fund was previously reported as an
agency fund. The fiduciary funds are reported using the economic resources measurement focus
and the accrual basis of accounting. Reporting is oriented toward providing accountability for the
sources, uses, and balances of resources held for others; therefore, the additions and deductions
in fiduciary balances are reported. With this measurement focus, assets and liabilities which are
due and payable associated with the operation of these funds are included on the funds'
statements of net position. The funds' equity is segregated into restricted net position and
unrestricted net position, if applicable.
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.
40
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Measurement Focus and Basis of Accounting — Continued
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.
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.
41
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Inventories — Continued
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.
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.
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
42
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
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.
Fund Balance Classifications
Fund balances are classified as follows on the governmental fund financial statements:
Reported in
Nonmajor Total
Debt Service Car Rental Tax Governmental Governmental
General Fund Fund Fund Grant Fund Streets CIP Fund Funds Funds
Nonspendable
$ 223,609 $ - $ $
$ $ 1,086
$ 224,695
Restricted for
Debt service
- 3,154,199
1,161,842
4,316,041
Capitalprojects
- -
13,324,439 5,672,096
18,996,535
Developer agreements
-
- 2,220,321
2,220,321
Court technology
117,674
-
117,674
Juvenile case processing
-
196,357
196,357
Cable PEG fees
589,452
589,452
Historical preservation
-
- 1,245
1,245
Assigned
Capitalprojects
-
229,785 4,897,369
5,127,154
Betterments
76,977
- -
76,977
Emergency/radio systems
47,230
-
47,230
Tourism and
conference facilities
-
1,205,174
1,205,174
Parks, library, and
economic development
-
5,550,148
5,550,148
Police department
-
2,824,394
2,824,394
Grants
-
987 -
987
Other
40,594 4,888,610
- - 3,164,891
8,094,095
Unassigned
20,240,670 - -
- -
20,240,670
Total
$ 20,746,754 $ 3,154,199 $ 4,888,610 $
987 $ 13,554,224 $ 27,484,375
$ 69,829,149
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.
43
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Fund Balance Classifications — Continued
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.
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.
44
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 police drug arrests and asset seizures to be used for police department
expenditures.
g. Assigned for grants are funds from specific revenues that are to be spent for allowable
expenditures in accordance with specific grant requirements.
h. 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.
45
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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. 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.
46
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Deferred Outflows/Inflows of Resources — Continued
• 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.
• Difference in projected and actual investment 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.
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, 2021, 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.
47
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 $1,479 in fiscal year 2021, or less than 0.01% of the total property tax 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 2021, the City rebated $1,018,596 in sales taxes, or 4.2% of the total sales tax
revenues and $19,325 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, 2021. At year-end, the carrying amount of the City's
deposits was $757,614 with a bank balance of $2,574,295.
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 provided by Frost Bank at the
close of the fiscal year was $2,388,858. 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.
48
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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, 2021, the City did not own any types of securities other than those
permitted by statute.
Investment Type
Interest bearing bank deposits
Investments measured at amortized cost:
Investment Pools:
TexasClass
TexPool
TexSTAR
Investments measured at fair value:
U.S. Treasury
CD
U.S. Government Agency Securities:
FFCB
FHLB
FHLMC
FAMCA
Total
% of
Rating
Book Value
Fair Value Level
Portfolio
WAM
Rating
Agency
$ 770,396
0.6%
22,698,062
17.1%
27
AAAm
S&P
33,072,895
25.0%
34
AAAm
S&P
27,403,840
20.7%
22
AAAm
S&P
998,320
999,453
0.8%
5
Aaa
Moody's
2,739,000
2,737,689
2.1%
4
Not rated
35,640,580
35,649,577
26.9%
112
AA+/Aaa
S&P/Moody's
5,995,657
5,996,640
4.5%
15
AA+/Aaa
S&P/Moody's
2,000,000
2,001,080
1.5%
6
AA+/Aaa
S&P/Moody's
1,000,000
999,810
0.8%
5
Not rated
$ 132,318,750
$ 48,384,249
100%
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: CD — Certificate of Deposit, FFCB — Federal Farm Credit Bank, FHLB — Federal Home Loan Bank,
FHLMC — Federal Home Loan Mortgage Corporation, and FAMCA — Federal Agricultural Mortgage Corporation. CD
represents certificates of deposit. 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 each 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.
49
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 Treasury and 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.
Certificates of Deposit classified in Level 2 of the fair value hierarchy are valued using
inputs such as interest rates and yield curves that are observable at commonly quoted
intervals.
All 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 cost.
TexPool has a redemption notice period of one day and has no maximum transaction
amounts. Texpool'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.
50
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
The MBIA Texas CLASS Investment Pool is governed by a Board of Trustees. The number of
trustees is determined and elected by the participants in the pool annually but it must be
comprised of an odd number with a minimum of three trustees. The Board meets upon the
request of at least two trustees, but not less than once annually. The pool is tailored to comply
with the Public Funds Investment Act. Duties of the governing board include oversight
responsibility.
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, 2021, 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.
51
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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, 2021:
Maturity Schedule
Book Value
Fair Value
% of Portfolio
Overnight
$ 83,945,193
$ 83,945,193
63%
Less than 1 month
1,000,000
1,000,020
1%
1 to 6 months
2,496,050
2,502,422
2%
6 to 9 months
6,999,100
7,005,530
5%
9 to 12 months
8,656,590
8,655,568
7%
12 to 18 months
14,493,752
14,491,653
11%
Over 18 months
14,728,065
14,729,056
11 %
Total
$ 132,318,750
$ 132,329,442
100%
Credit Risk
In compliance with the City's Investment Policy, as of September 30, 2021, 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, 2021, 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.
52
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2021, was as follows:
Balance
Beginning
of Year Increase Decrease
Governmental activities
Capital assets not being depreciated
Land $ 35,207,085 $ 64,100 $ -
Construction in progress 30,769,761 14,361,002 -
Total capital assets
not being depreciated 65,976,846 14,425,102 Capital assets being depreciated
Balance
Adjustment/ End of
Transfer Year
$ 1,965,763 $ 37,236,948
(18,564,835) 26,565,928
(16,599,072) 63,802,876
Buildings
61,665,951
-
-
8,379,239
70,045,190
Improvements other than buildings
14,590,019
88,134
-
4,156,079
18,834,232
Infrastructure
99,901,482
256,634
-
2,375,253
102,533,369
Machinery and equipment
12,803,143
471,510
(173,338)
1,688,501
14,789,816
Total capital assets
being depreciated
188,960,595
816,278
(173,338)
16,599,072
206,202,607
Less accumulated depreciation
Buildings
(29,596,504)
(1,803,008)
-
-
(31,399,512)
Improvements other than buildings
(5,588,415)
(407,630)
-
-
(5,996,045)
Infrastructure
(47,255,365)
(2,709,366)
-
-
(49,964,731)
Machinery and equipment
(7,756,198)
(1,116,155)
151,000
-
(8,721,353)
Total accumulated depreciation
(90,196,482)
(6,036,159)
151,000
-
(96,081,641)
Total capital assets being
depreciated, net
98,764,113
(5,219,881)
(22,338)
16,599,072
110,120,966
Total governmental fund capital
assets, net
164,740,959
9,205,221
(22,338)
Internal service funds
Capital assets being depreciated
Machinery and equipment
15,400,763
1,739,822
(1,101,140)
Total internal service assets
being depreciated
15,400,763
1,739,822
(1,101,140)
Less accumulated depreciation
Machinery and equipment
(9,820,316)
(1,473,356)
1,101,140
Total internal service funds
capital assets, net
5,580,447
266,466
-
Total governmental activities
- 173,923,842
16,039,445
- 16,039,445
(10,192,532)
5,846,913
capital assets, net $ 170,321,406 $ 9,471,687 $ (22,338) $ - $ 179,770,755
53
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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
7,361,778
4,098,790
- (1,032,127)
10,428,441
Total capital assets
not being depreciated
10,980,323
4,098,790
- (1,032,127)
14,046,986
Capital assets being depreciated
Buildings
4,207,035
-
- -
4,207,035
Equipment
3,874,675
52,396
(131,749) -
3,795,322
Improvements
21,538,553
-
(362,267) 100,337
21,276,623
Utility system
123,365,999
510,725
- 931,790
124,808,514
Total capital assets being
depreciated
Less accumulated depreciation
Buildings
Equipment
Improvements
Utility system
Total accumulated depreciation
Total capital assets being
depreciated, net
Total business -type activities
capital assets, net
152,986,262
563,121
(494,016) 1,032,127 154,087,494
(2,779,821)
(124,217)
- - (2,904,038)
(2,190,570)
(293,393)
128,816 - (2,355,147)
(12,292,836)
(607,695)
362,267 - (12,538,264)
(62,158,132)
(2,910,499)
- - (65,068,631)
(79,421,359) (3,935,804) 491,083 - (82,866,080)
73,564,903 (3,372,683) (2,933) 1,032,127 71,221,414
$ 84,545,226 $ 726,107 $ (2,933) $ - $ 85,268,400
Depreciation expense was charged as a direct expense to programs of the primary government as
follows:
Governmental activities
Culture and recreation
$
842,853
Development
24,003
General administrative
3,212,254
Highways and streets
2,792,506
Public safety
637,899
Total depreciation expense - governmental activities
$
7,509,515
Business -type activities
Water and wastewater
$
2,270,442
Drainage utility
805,589
Golf course
401,704
Other recreation enterprises
458,069
Total depreciation expense - business -type activities
$
3,935,804
Outstanding commitments at September 30, 2021, under authorized construction contracts, were
$13,015,769. These outstanding commitments are to be financed by available deposit and investment
balances, which include proceeds from previous bond issuances.
54
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT
The following is a summary of long-term debt activity of the City for the year ended September 30,
2021:
Governmental activities
General obligation bonds
Certificates of obligation
Sales tax revenue bonds
Tax notes
Premium on debt
Discount on debt
Net pension liability
Net OPEB liability
Compensated absences
Total governmental activities
Business -type activities
Water and sewer revenue bonds
General obligation refunding bonds
Premiums on debt
Discounts on debt
Net pension liability
Net OPEB liability
Compensated absences
Balance Balance Due
Beginning End within
of Year Increases Decreases of Year One Year
$ 6,040,000
$ -
$ (1,925,000)
$ 4,115,000
$1,105,000
51,710,000
5,360,000
(2,140,000)
54,930,000
2,370,000
5,450,000
-
(205,000)
5,245,000
220,000
1,110,000
1,625,000
(365,000)
2,370,000
875,000
2,273,871
401,414
(173,727)
2,501,558
404,351
(78,653)
-
9,683
(68,970)
(9,682)
13,750,472
-
(2,844,931)
10,905,541
-
10,124,512
-
(1,102,683)
9,021,829
-
2,117,524
377,867
(426,139)
2,069,252
201,021
92,497,726
7,764,281
(9,172,797)
91,089,210
5,165,690
18,725,000
- (945,000)
17,780,000
945,000
3,805,000
- (510,000)
3,295,000
520,000
136,726
- (19,241)
117,485
19,241
(21,129)
- 1,625
(19,504)
(1,625)
2,524,312
- (525,841)
1,998,471
-
1,887,411
- (203,813)
1,683,598
-
377,882
42,476 (52,771)
367,587
36,759
Total business -type activities 27,435,202 42,476 (2,255,041) 25,222,637 1,519,375
Total primary government $ 119,932,928 $ 7,806,757 $ (11,427,838) $ 116,311,847 $ 6,685,065
Governmental fund net pension liability and net 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.
55
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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, 2021, general obligation bonds currently outstanding are as follows:
Interest
Maturity
Principal
Rate %
Dated
Date
Outstanding
General Obligation Bonds
Taxable Refunding, Series 2010
4% — 4.4%
08/15/2010
08/01/2025
$2,555,000
Refunding, Series 2012
3% — 4%
12/01/2011
02/15/2024
1,560,000
Refunding, Series 2012A
2% — 2.625%
11/01/2012
02/15/2027
3,295,000
Total
$7,410,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Governmental Activities Business -Type Activities
Year Principal Interest Principal Interest Total
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
-
-
565,000
22,419
587,419
2027
-
-
585,000
7,678
592,678
Total $ 4,115,000 $ 360,217 $ 3,295,000 $ 246,626 $ 8,016,843
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.
56
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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
$1,765,000
Series 2014
3% — 5%
10/15/2014
08/15/2034
4,505,000
Series 2015
3% — 5%
10/27/2015
02/15/2035
2,530,000
Series 2016
2.25% — 4%
01/12/2016
02/15/2041
14,485,000
Series 2018
3% — 4%
03/01/2018
02/15/2038
8,270,000
Series 2019
3%— 5%
01/15/2019
02/15/2039
11,165,000
Series 2020
2% — 3.5%
01/14/2020
02/15/2040
6,850,000
Series 2021
1.625% — 4%
04/08/2021
02/15/2041
5,360,000
Total
$54,930,000
Annual debt service requirements to maturity for the certificates of obligation are as follows:
Fiscal
Governmental Activities
Year
Principal
Interest
Total
2022
$ 2,370,000
$ 1,800,592
$ 4,170,592
2023
2,505,000
1,669,783
4,174,783
2024
2,590,000
1,574,117
4,164,117
2025
2,680,000
1,492,001
4,172,001
2026
2,765,000
1,402,901
4,167,901
2027-2031
15,120,000
5,500,059
20,620,059
2032-2036
15,695,000
2,922,384
18,617,384
2037-2041
11,205,000
720,556
11,925,556
Total
$ 54,930,000
$17,082,393
$72,012,393
57
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
Certificates of Obligation — Continued
In February 2021, the City Council approved the issuance of $5,360,000 of Tax and Waterworks
and Sewer System (Limited Pledge) Revenue Certificates of Obligation, series 2021 for the
purpose of paying contractual obligations to be incurred for (i) the construction of public works,
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 '/2¢ 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:
Revenue Bonds
W&WW Refunding, Series 2012
W&WW Improvement, Series 2013
W&WW Improvement, Series 2015A
W&WW Improvement, Series 2015B
W&WW Improvement, Series 2018
W&WW Improvement, Series 2019
STRB, Series 2018
STRB, Series 2019
Interest Maturity Principal
Rate % Dated Date Outstanding
2.03%
03/29/2012
07/15/2024
3.625% — 5%
06/25/2013
07/15/2033
0.8% —
1.98%
06/15/2015
07/15/2035
0.5% —
1.68%
06/15/2015
07/15/2035
0.24% —
1.49%
04/12/2018
07/15/2038
0.29% —
1.66%
04/25/2019
07/15/2049
3% —
4%
10/15/2018
09/15/2038
2.5%
— 4%
12/12/2019
09/15/2039
Total
$ 405,000
1,080,000
3,365,000
1,780,000
2,400,000
8,750,000
1,445,000
3,800,000
$ 23,025,000
58
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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
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
250,000
146,975
845,000
224,201
1,466,176
2027-2031
1,405,000
578,775
4,430,000
939,706
7,353,481
2032-2036
1,655,000
329,550
4,050,000
551,400
6,585,950
2037-2041
1,015,000
61,450
1,910,000
310,607
3,297,057
2042-2046
1,725,000
176,029
1,901,029
2047-2049
1,110,000
36,871
1,146,871
Total
$5,245,000
$1,791,550
$17,780,000
$3,235,397
$28,051,947
The gross '/2¢ sales tax revenues of the EDC recognized in the year ending September 30, 2021
totaled $6,096,234. The principal, interest and fiscal charges on the EDC debt for the same
period totaled $394,725 which equates to approximately 6.5% of the gross'/2¢ sales tax revenues.
The recognized net revenues of the water and wastewater fund totaled $4,203,050 for the year
ending September 30, 2021. Principal, interest and fiscal charges on the water and sewer
revenue bonds totaled $1,219,924 which equates to approximately 29% 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.
59
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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, 2021.
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, 2021, 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 2021, tax notes were issued to pay
contractual obligations incurred (i) primarily for the costs of purchasing equipment, machinery,
buildings, and vehicles for the City fire and police departments; 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%
Series 2021 4.00%
06/25/2020 02/15/2023
04/08/2021 02/ 15/2024
$ 745,000
1,625,000
$2,370,000
60
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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
2022
$875,000
$83,937
$958,937
2023
925,000
35,900
960,900
2024
570,000
11,400
581,400
Total
$2,370,000
$131,237
$2,501,237
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 totaled $12,628,040 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 totaled $355,273 in the year ended
September 30, 2021 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.
61
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the operations of
those funds.
Transfers in
Non -major Subtotal
General Debt Service Street CIP Grants Governmental Governmental
Transfers out
General $
$ $ 1,000,000 $
25,963 $ 1,530,728
$ 2,556,691
Debt service
-
- -
-
Car rental tax
817,990
- 750,000
1,567,990
Water and wastewater
1,386,465
- -
1,386,465
Drainage utility
42,041
- -
42,041
Nonmajor governmental
- 2,385,756 -
- 255,000
2,640,756
Total transfers in $
2,246,496 $ 2,385,756 $ 1,000,000 $
25,963 $ 2,535,728
$ 8,193,943
Transfers in
Major Enterprise
Golf Subtotal Total
Internal Service Course Enterprise Transfers Out
Transfers out
General $
256,000 $
14,494
$ 14,494
$ 2,827,185
Debt service
1,695,000
-
-
1,695,000
Car rental tax
-
50,000
50,000
1,617,990
Water and wastewater
256,000
-
-
1,642,465
Drainage utility
-
-
-
42,041
Nonmajorgovernmental
-
377,374
377,374
3,018,130
Total transfers in $
2,207,000 $
441,868
$ 441,868
$ 10,842,811
Transfers are primarily used to move funds from:
• The general fund to the street CIP fund and non -major governmental funds to fund approved
capital projects, to the grant fund to satisfy grant matching requirements, 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.
62
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 capital project funding.
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, and aggregate
claims in excess of $6,512,566. During fiscal year 2021, the City and the City's employees
contributed approximately $4,752,552 and $1,447,191 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.
63
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 8. RISK MANAGEMENT — CONTINUED
Changes in the balances of health, dental, and prescription claims liabilities for the years ended
September 30, 2021 and 2020 are as follows:
Unpaid claims, beginning of year
Incurred claims
Paid claims
Unpaid claims, end of year
2021 2020
$ 639,000
4,585,628
(4,384,628)
$ 433,000
3,483,252
(3,277,252)
$ 840,000 $ 639,000
Settlement amounts have not exceeded stop loss insurance coverage for the year ended
September 30, 2021 or any of the three preceding years ended September 30.
NOTE 9. DEFINED BENEFIT PENSION PLAN
Plan Description
The City participates as one of 895 plans in the defined benefit cash -balance plan administered
by the Texas Municipal Retirement System (TMRS). TMRS is a statewide public retirement plan
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 employees of participating Texas cities. The TMRS Act places the general
administration and management of TMRS with a six -member, Governor -appointed Board of
Trustees; however, TMRS is not fiscally dependent on the State of Texas. TMRS issues a
publicly available annual comprehensive financial report (ACFR) 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.
64
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN — CONTINUED
Benefits Provided — Continued
Plan provisions for the City are as follows:
Employee deposit rate
Matching ratio (City to employee)
A member is vested after
Service retirement eligibility
Updated service credit
Annuity increase (to retirees)
Employees Covered By Benefit Terms
7%
2 to 1
5 years
20 years at any age, 5 years at 60 and above
100% Repeating, Transfers
70% of CPI
At the December 31, 2020 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 278
Inactive employees entitled to, but not yet receiving benefits 170
Active employees 373
Total 821
Contributions
Member contribution rates in TMRS are either 5%, 6%, or 7% of the Member's total
compensation, 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 city's contribution rate is based on the liabilities created from
the benefit plan options selected by the City and any changes in benefits or actual experience
over time.
Employees for the City were required to contribute 7% of their annual gross earnings during the
year ended September 30, 2021. The contribution rates for the City were 17.70% and 18.02% in
calendar years 2020 and 2021, respectively. The City's contributions to TMRS for the year
ended September 30, 2021 were $5,534,917 and were equal to the required contributions.
Net Pension Liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2020, and the Total
Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an
actuarial valuation as of that date.
65
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN — CONTINUED
Actuarial Assumptions
The TPL in the December 31, 2020 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 2.75% per year, adjusted down for population declines, if
any
Investment rate of return 6.75%, net of pension plan investment expense,
including inflation
Salary increases are 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 are 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).
66
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 2021 (actuarial study as of December 31, 2020) are summarized in the following table:
Asset Class
Target Long -Term Expected Real
Allocation 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.
67
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN — CONTINUED
Changes in the Net Pension Liability
Balance at 12/31/2019
Changes for the year:
Service cost
Interest
Change of benefit terms
Difference between expected
and actual experience
Changes of assumptions
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including
refunds of employee contributions
Administrative expense
Other changes
Net changes
Balance at 12/31 /2020
Increase (Decrease)
Plan Fiduciary
TPL Net Position NPL
(a) (b) (a) - (b)
$ 228,062,573 $ 211,787,789 $ 16,274,784
5,645,675 - 5,645,675
15,244,423 - 15,244,423
(728,824) - (728,824)
- 5,419,109 (5,419,109)
- 2,144,052 (2,144,052)
16,076,966 (16,076,966)
(10,084,210)
10,077,064
(10,084,210) -
(104,023) 104,023
(4,058) 4,058
13,447,836 (3,370,772)
$ 238,139,637 $ 225,235,625 $ 12,904,012
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 1 % Increase in
Discount Rate Discount Rate Discount Rate
(5.75%) (6.75%) (7.75%)
City's net pension liability $ 46,213,217 $ 12,904,012 $ (14,518,615)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's Fiduciary Net Position is available in the Schedule
of Changes in Fiduciary Net Position, by Participating City. That report may be obtained at
tmrs.com.
68
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN — CONTINUED
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the valuation date of December 31, 2020, the City recognized pension expense of
$2,007,366.
At September 30, 2021, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Differences between expected
and actual experience
Difference between projected and
actual investment earnings
Contributions subsequent to the
measurement date
Total
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
4,156,015
$ 4,156,015
$ 670,919
6,047,984
$ 6,718,903
$4,156,015 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, 2022. 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
2021
$ (2,439,366)
2022
(30,951)
2023
(3,746,560)
2024
(502,026)
Total
$ (6,718,903)
69
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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
hgps://www.eulesstx. og v/departments/finance/comprehensive-annual-financial-report.
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.
70
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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:
Monthly Contribution
Medical Plan A
Medical Plan B Dental
Vision
Retiree Only
$ 953.44
$ 776.08 $ 38.04
$ 7.86
Retiree plus Children
1,811.55
1,474.55 72.27
12.84
Retiree plus Spouse
2,192.92
1,784.98 87.49
15.24
Retiree plus Family
2,765.00
2,250.62 110.32
21.56
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:
Discounts on Premiums
Hired Pre-10/2006
Hired Post-10/2006
Hired Post-10/2014
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
71
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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
Equity
Fixed income
Strategic Target 9/30/2021
Range Allocation Allocation
50-70%
30-50%
60% 62%
35% 37%
Cash 0-20% 5% 1%
100% 100%
Rate of return. For the year ended September 30, 2021, the annual money -weighted rate of
return on investments, net of investment expense, was 17.88%. The money -weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
72
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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, 2021:
% of
Asset Class
Investment Vehicle
Portfolio
Equity
Columbia Contrarian Core Inst3
6.28%
Equity
Vanguard Growth & Income Adm
11.93%
Equity
Dodge & Cox Stock Fund
5.60%
Equity
iShares Russell Midcap ETF
5.05%
Equity
Undiscovered Mgrs Behavrl Val R6
5.09%
Fixed Income
Vanguard Short -Term Investment -Grade Adm
5.86%
Fixed Income
DoubleLine Core Fixed Income I
9.64%
Fixed Income
PIMCO Total Rturn Instl Fund
9.66%
Fixed Income
PGIM Total Return Bond R6
9.62%
Net OPEB Liability of the City
The components of the net OPEB liability of the City at September 30 were as follows:
Total OPEB liability
Plan fiduciary net position
City's net OPEB liability
Plan fiduciary net position as a percent
of the total OPEB liability
Actuarial Methods and Assumptions
2021 2020
$ 21,727,868 $ 20,715,465
(11,022,441) (8,703,542)
$ 10,705,427 $ 12,011,923
50.73% 42.01%
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.
73
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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,
2021. The actuarial assumptions include:
Inflation
Salary increases
Investment rate of return
Healthcare cost trend rates
Dental cost trend rates
2.5% per annum
3.00% per annum
7.50%
10.87% with annual increases/decreases to
an ultimate rate of 3.60% in 2042
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 6.22% with an expected standard deviation of 9.92%.
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 Discount Rate 1 % Increase
(6.5%) (7.5%) (8.5%)
Net OPEB liability $ 14,053,571 $ 10,705,427 $ 7,177,259
74
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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:
Net OPEB liability
Net OPEB Liability
Balance at 9/30/2020
Changes for the year:
Service cost
Interest
Change of benefit terms
Difference between expected
and actual experience
Changes of assumptions
Difference in expected and
actual net investment income
Contributions - employer
Contributions - other
Net investment income
Benefit payments, including
refunds of employee contributions
Administrative expense
Net changes
Balance at 9/30/2021
Current Trend
1 % Decrease Rates 1 % Increase
$ 8,993,279 $ 10,705,427 $ 11,285,202
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b)
$ 20,715,465 $ 8,703,542 $ 12,011,923
287,730
1,539,416
- 287,730
- 1,539,416
- 1,515,094 (1,515,094)
281,524 281,524 -
- 1,618,548 (1,618,548)
(955,297)
(140,970)
1,012,403
$ 21,727,868
(955,297)
(140,970)
2,318,899
$ 11,022,441
(1,306,496)
$ 10,705,427
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.
75
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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, 2021, the City recognized OPEB expense of $1,251,154.
At September 30, 2021, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Differences between expected
and actual experience
Changes in actuarial assumptions
Difference between projected and
actual investment earnings
Total
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
$ - $ 155,971
785,239 -
- 668,470
$ 785,239 $ 824,441
Amounts reported as deferred outflows and inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Fiscal Year
Ending
September 30,
2022
2023
2024
2025
2026
Total
Net Deferred
Outflows/(Inflows)
of Resources
$ 92,481
(47,585)
(92,841)
(90,636)
99,379
$ (39,202)
76
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 11. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2021, the following funds had excess of expenditures over appropriations:
- Car rental tax special revenue fund in the amount of $3,291,300
- Grant special revenue fund in the amount of $323,089
- Hotel/motel special revenue fund in the amount of $28,975
77
T H E C I T Y O
EULESS
78
REQUIRED SUPPLEMENTARY INFORMATION
79
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
FOR THE MEASUREMENT YEAR ENDED DECEMBER 31
2020*
2019*
2018*
2017*
2016*
2015*
2014*
Total pension liability
Service cost
$
5,645,675
$
5,375,963
$
5,253,722
$
5,149,378
$ 4,868,631
$ 4,539,237
$ 4,331,759
Interest (on the total pension liability)
15,244,423
14,557,634
13,864,487
13,129,452
12,462,429
12,302,430
11,698,243
Difference in expected and actual experience
(728,824)
(171,396)
(206,128)
169,296
(361,966)
(579,992)
(752,184)
Change in assumptions
145,747
-
(595,757)
Benefit payments, includingrefimds
(10,084,210)
(9,652,090)
(7,756,635)
(7,465,146)
(6,990,135)
(6,911,946)
(6,588,671)
Net change in total pension liability
10,077,064
10,255,858
11,155,446
10,982,980
9,978,959
8,753,972
8,689,147
Total pension liability, beginning ofyear
228,062,573
217,806,715
206,651,269
195,668,289
185,689,330
176,935,358
168,246,211
Total pension liability, ending of year
$
238,139,637
$
228,062,573
$
217,806,715
$
206,651,269
$ 195,668,289
$ 185,689,330
$ 176,935,358
Plan fiduciary net position
Contributions - employer
$
5,419,109
$
5,192,816
$
5,146,736
$
5,027,855
$ 4,691,585
$ 4,644,735
$ 4,787,533
Contributions - employee
2,144,052
2,077,001
2,023,998
1,981,736
1,877,709
1,801,285
1,789,251
Net investment income
16,076,966
28,704,340
(5,754,957)
23,456,668
10,748,002
235,212
8,631,343
Benefit payments, including refunds
(10,084,210)
(9,652,090)
(7,756,635)
(7,465,146)
(6,990,135)
(6,911,946)
(6,588,671)
Administrative expense
(104,023)
(162,161)
(111,206)
(121,542)
(121,371)
(143,262)
(90,113)
Other
(4,058)
(4,871)
(5,810)
(6,160)
(6,539)
(7,076)
(7,409)
Net change in plan fiduciary net position
13,447,836
26,155,035
(6,457,874)
22,873,411
10,199,251
(381,052)
8,521,934
Plan fiduciary net position - begnning
211,787,789
185,632,754
192,090,628
169,217,217
159,017,966
159,399,018
150,877,084
Plan fiduciary net position - ending
S
225,235,625
$
211,787,789
$
185,632,754
$
192,090,628
$ 169,217,217
$ 159,017,966
$ 159,399,018
Net pensionliabiility- ending
$
12,904,012
$
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 TPL
94.58%
92.86%
85.23%
92.95%
86.48%
85.64%
90.09%
Covered payroll
$
30,616,434
$
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
42.15%
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.
80
CITY OF EULESS, TEXAS
SCHEDULE OF CONTRIBUTIONS - PENSION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30
2021* 2020* 2019* 2018* 2017* 2016* 2015*
Actuarially determinedcontrbutions $ 5,534,917 $ 5,532,423 $ 5,174,020 $ 5,094,779 $ 4,971,811 $ 4,670,520 $ 4,602,538
Actual contributions (5,534,917) (5,532,423) (5,174,020) (5,094,779) (4,971,811) (4,670,520) (4,602,538)
Contributions deficiency (excess) $ - $ - $ - $ - $ $ $ -
Covered payroll $ 30,853,753 $ 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
18.02% and 17.70% 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 31 st 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
24 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 Citys plan of benefits. Last
updated for the 2019 valuation pursuant to an experience study of the period 2014 -
2018.
Mortality
Post-retrcement: 2019 Municipal Retirees of Texas Mortality Tabks. The rates are
projected on a fully generational basis with scale UMP. 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 Emily generational basis with scale
UMP.
81
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30
2021*
2020*
2019*
2018*
2017*
Total OPEB liability
Service cost
$ 287,730
$ 267,668
$ 435,930
$ 447,155
$ 75,083
Interest on total OPEB liability
1,539,416
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
281,524
276,885
270,205
-
-
Effect of changes of assumptions
-
1,322,815
-
(798,143)
5,480,748
Administrative expense
(140,970)
(131,481)
(135,119)
-
Benefit payments
(955,297)
(898,811)
(1,019,931)
(1,230,281)
(1,332,839)
Net change in OPEB liability
1,012,403
1,589,178
911,633
1,150,202
5,480,748
Beginning balance
20,715,465
19,126,287
18,214,654
17,064,452
11,583,704
Ending balance
$ 21,727,868
$ 20,715,465
$ 19,126,287
$ 18,214,654
$ 17,064,452
Plan fiduciary net position
Contributions - employer
$
1,515,094
$
1,455,171
$
1,583,715
$
1,754,093
$
1,832,839
Contributions - other
281,524
276,885
270,205
320,471
-
Net investment income
668,472
577,387
502,656
381,824
559,716
Difference in expected
and actual net investment
income
950,076
11,026
(226,279)
-
-
Benefit payments
(955,297)
(898,811)
(1,019,931)
(1,230,281)
(1,332,839)
Administrative expense
(140,970)
(131,481)
(135,119)
(147,597)
(13,525)
Net change in plan fiduciary
net position
2,318,899
1290,177
975,247
1,078,510
1,046,191
Beginning balance
8,703,542
7,413,365
6,438,118
5,359,608
4,313,417
Ending balance
$
11,022,441
$
8,703,542
$
7,413,365
$
6,438,118
$
5,359,608
City's net OPEB liability ending
$
10,705,427
$
12,011,923
$
11,712,922
$
11,776,536
$
11,704,844
Plan fiduciary net position as a %
of the total OPEB liability
51%
42%
39%
35%
31%
Covered employee payroll
$
30,853,753
$
31,348,108
$
29,411,252
$
28,640,420
$
25,944,080
City's net OPEB liability as a %
of covered employee payroll
35%
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.
82
CITY OF EULESS, TEXAS
SCHEDULE OF CONTRIBUTIONS — OPEB TRUST
FOR THE FISCAL YEAR ENDED SEPTEMBER 30
Schedule of City OPEB Contributions 2021* 2020* 2019* 2018* 2017*
Actuarially determined contribution $ 1,421,454 $ 1,388,216 $ 1,486,177 $ 1,492,738 $ 1,226,144
Contributed in relation to the actuarially
determined contribution 1,515,094 1,455,171 1,583,715 1,754,093 1,832,839
Contribution deficiency (excess) $ (93,640) $ (66,955) $ (97,538) $ (261,355) $ (606,695)
Covered employee payroll $ 30,853,753 $ 31,348,108 $ 29,411,252 $ 28,640,420 $ 25,944,080
Contributions as a percentage of
covered employee payroll 4.9% 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 9/30/2021)
Actuarial cost method
Entry Age Normal
Amortization method
Level Dollar Method
Remaining amortization period
26 years - closed period
Amortization period for new losses
25 years - 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
83
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2021
Revenues
General property tax
Current and delinquent taxes
Penalty and interest
Total property tax
Gross receipts and mixed beverage tax
Telephone line access fee
Electric company
Gas company
Cable TV
City garbage service
Water and wastewater system
Others
Total gross receipts and
mixed beverage tax
General sales tax
Fines and fees
Municipal court fines
Jail income
Dog licenses and pound fees
Ambulance fees
Library fees
Zoning fees
Deferred adjudication fee
Total fines and fees
Licenses and permits
Building permits
Miscellaneous permits
Minimum housing
Total licenses and permits
Investment income
Intergovernmental
Other revenues
Rental income
Swimming pools
Miscellaneous income
Total other revenues
Total revenues
Variance with
Actual
Final Budget
Budgeted Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
$ 17,727,859
$ 17,727,859
$ 18,108,409
$ 380,550
60,000
60,000
84,442
24,442
17,787,859
17,787,859
18,192,851
404,992
50,000
50,000
115,516
65,516
1,720,000
1,720,000
1,621,932
(98,068)
400,000
400,000
423,674
23,674
425,000
425,000
239,970
(185,030)
280,000
280,000
319,598
39,598
1,353,976
1,353,976
1,386,465
32,489
152,750
152,750
196,125
43,375
4,381,726
4,381,726
4,303,280
(78,446)
11,927,045
11,927,045
14,829,385
2,902,340
1,458,600
1,458,600
1,596,865
138,265
200,000
200,000
88,385
(111,615)
7,500
7,500
8,090
590
900,000
900,000
904,563
4,563
5,010
5,010
3,887
(1,123)
15,500
15,500
19,983
4,483
78,000
78,000
80,448
2,448
2,664,610
2,664,610
2,702,221
37,611
300,000
300,000
1,153,732
853,732
280,300
280,300
273,094
(7,206)
65,000
65,000
125,262
60,262
645,300
645,300
1,552,088
906,788
112,500
112,500
62,639
(49,861)
426,350
426,350
431,328
4,978
608,526
608,526
612,925
4,399
263,145
263,145
282,149
19,004
332,884
332,884
163,250
(169,634)
1,204,555
1,204,555
1,058,324
(146,231)
39,149,945
39,149,945
43,132,116
3,982,171
84
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2021
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)
$ 3,337,500
$ 3,337,500
$ 3,120,410
$ 217,090
809,939
809,939
679,551
130,388
11,198,284
12,030,043
10,669,881
1,360,162
1,428,698
1,428,698
1,352,284
76,414
26,449,974
26,449,974
26,217,453
232,521
43,224,395
44,056,154
42,039,579
2,016,575
(4,074,450) (4,906,209) 1,092,537 5,998,746
5,000 5,000 16,400 11,400
2,213,826 2,213,826 2,246,496 32,670
(1,495,649) (2,820,649) (2,827,185) (6,536)
723,177 (601,823) (564,289) 37,534
(3,351,273) (5,508,032) 528,248 6,036,280
20,218,506 20,218,506 20,218,506
$ 16,867,233 $ 14,710,474 $ 20,746,754 $ 6,036,280
85
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
CAR RENTAL SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2021
Revenues
Car rental tax
Investment income
Total revenues
Expenditures
General and administrative
Capital outlay
Total expenditures
Excess of revenues over
expenditures
Other fmancing uses
Transfers out
Total other financing uses
Budgeted Amounts
Original Final
Variance with
Actual Final Budget
GAAP Positive
Basis (Negative)
$ 7,361,908 $
7,361,908
$ 13,062,591
$ 5,700,683
33,500
33,500
6,447
(27,053)
7,395,408
7,395,408
13,069,038
5,673,630
5,016,306
5,016,306
8,699,147
(3,682,841)
445,099
445,099
53,558
391,541
5,461,405
5,461,405
8,752,705
(3,291,300)
1,934,003 1,934,003 4,316,333 2,382,330
(1,617,990) (1,617,990) (1,617,990) -
(1,617,990) (1,617,990) (1,617,990) -
Net change in fund balance
316,013
316,013
2,698,343 2,382,330
Fund balance, beginning of year
2,190,267
2,190,267
2,190,267 -
Fund balance, end of year
$ 2,506,280 $
2,506,280 $
4,888,610 $ 2,382,330
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GRANT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2021
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)
$ 50,995
$ 50,995
$ 361,763
$ 310,768
50,995
50,995
361,763
310,768
-
-
20,454
(20,454)
64,061
64,061
366,696
(302,635)
64,061
64,061
387,150
(323,089)
(13,066)
(13,066)
(25,387)
(12,321)
13,066
13,066
25,963
12,897
13,066
13,066
25,963
12,897
-
-
576
576
411
411
411
-
$ 411 $
411 $ 987 $ 576
87
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:
1. 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, car rental tax special revenue fund, and grant
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.
88
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
89
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 within 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.
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.
90
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.
The TIRZ #4 fund revenues reduce the amount of revenue needed from the Midtown PID fund to
pay debt service.
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 building and infrastructure projects that are funded from
short-term motor vehicle rental tax.
91
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2021
ASSETS
Deposits and investments
Accounts receivable
Property taxes receivable
Accrued interest receivable
Due from other govemments
Prepaids
Restricted deposits and investments
Total assets
LIABILITIES
Accounts payable
Contracts 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
Special Revenue Funds
Police
Crime
Drug
Control and
Hotel/
Half -Penny
Enforce-
Prevention
Motel
Sales Tax
ment
District
Fund
Fund
Fund
Fund
$ 1,016,781
$ 4,980,085
$ 608,510
$ 1,514,977
362,657
-
-
-
-
743
-
-
-
1,150,991
-
576,503
-
162
-
924
$ 1,379,438 $ 6,131,981 $ 608,510 $ 2,092,404
$ 173,019 $ 122,067 $ 5,577 $ 51,767
- 47,762 - 51,490
173,019 169,829 5,577 103,257
162 - 924
411,842 - -
1,245 - - -
1,205,174 5,550,148 602,933 1,988,223
1,206,419 5,962,152 602,933 1,989,147
$ 1,379,438 $ 6,131,981 $ 608,510 $ 2,092,404
92
Special Revenue Funds
Police
Cable
Special
Seized
Juvenile
Glade Parks
TIRZO
Midtown
TIRZ#4
PEG
Revenue
Assets
Case
PID
Glade Parks
PID
Midtown
Fees
Funds
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Totals
$ 233,630
$ 197,976
$ 750,000
$ 2,537,477
$ 124,155
$ 379,053 $
568,786
$ 12,911,430
-
4,495
-
65,352
-
3,109
22,000
457,613
-
-
-
42,404
-
15,331
-
57,735
-
-
-
-
-
-
-
743
-
-
-
-
-
-
-
1,727,494
-
-
-
-
-
-
-
1,086
$ 233,630
$ 202,471
$ 750,000
$ 2,645,233
$ 124,155
$ 397,493 $
590,786
$ 15,156,101
$ - $ 291 $ - $ - $ 1,990 $ - $ 1,334 $ 356,045
392 1,303 - - - - - 100,947
392 1,594 - - 1,990 - 1,334 456,992
- 4,520 - - - - - 4,520
4,520 - - - - - 4,520
- - - - - 1,086
750,000 - - - - 1,161,842
196,357 - - - - - 196,357
- - - - - 589,452 589,452
- - - - - - - 1,245
233,238 - - 2,645,233 122,165 397,493 - 12,744,607
233,238 196,357 750,000 2,645,233 122,165 397,493 589,452 14,694,589
$ 233,630 $ 202,471 $ 750,000 $ 2,645,233 $ 124,155 $ 397,493 $ 590,786 $ 15,156,101
93
ASSETS
Deposits and investments
Accounts receivable
Property taxes receivable
Accrued interest receivable
Due from other goverrnrents
Prepaids
Restricted deposits and investments
Total assets
LIABILITIES
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2021
Accounts payable
Contracts 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
Capital Proiect Funds
Half -Penny
Sales Tax Developers' General Redevelopment
CIP Contribution CIP CIP
Fund Fund Fund Fund
$ 648,969 $ 2,220,232 $ 2,306,674 $ 61,232
- - 14,004 -
89 - -
285,980 - 5,146,273 -
$ 934,949 $ 2,220,321 $ 7,466,951 $ 61,232
$ - $ - $ 1,277 $ 12,488
113,338 - 716,019 -
113,338 - 717,296 12,488
172,642 - 4,430,254 -
- 2,220,321 - -
648,969 - 2,319,401 48,744
821,611 2,220,321 6,749,655 48,744
$ 934,949 $ 2,220,321 $ 7,466,951 $ 61,232
94
Capital Project Funds
TIRZ #4
Car
Capital
Total
Midtown
Midtown
Rental
Project
Non -major
Reserve
CIP
CIP
Funds
Governmental
Fund
Fund
Fund
Totals
Funds
$ -
$ -
$ 1,917,596
$ 7,154,703
$ 20,066,133
-
-
-
14,004
471,617
-
-
-
-
57,735
-
-
63
152
895
-
-
-
-
1,727,494
-
-
-
-
1,086
999,725
69,475
-
6,501,453
6,501,453
$ 999,725
$ 69,475
$ 1,917,659
$ 13,670,312
$ 28,826,413
$ -
$ -
$ 37,404
$ 51,169
$ 407,214
-
-
-
829,357
829,357
-
-
-
-
100,947
-
-
37,404
880,526
1,337,518
-
-
-
-
4,520
-
-
-
-
4,520
-
-
-
-
1,086
-
-
-
-
1,161,842
999,725
69,475
-
5,672,096
5,672,096
-
-
-
2,220,321
2,220,321
-
-
-
-
196,357
-
-
-
-
589,452
-
-
-
-
1,245
-
-
1,880,255
4,897,369
17,641,976
999,725
69,475
1,880,255
12,789,786
27,484,375
$ 999,725 $ 69,475 $ 1,917,659 $ 13,670,312 $ 28,826,413
95
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - NON -MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2021
Special Revenue Funds
Police
Crime
Drug
Control and
Hotel/ Half -Penny Enforce-
Prevention
Motel Sales Tax meet
District
Fund Fund Fund
Fund
Revenues
General property tax
$ - $
- $
-
$ -
Gross receipts tax
1,182,845
-
-
-
General sales tax
-
6,096,234
-
3,037,265
Investment income
287
2,923
239
399
DEA revenues
-
-
117,144
-
Rents and royalties
-
88,580
-
-
Other revenues
-
-
-
6,878
Total revenues
1,183,132
6,187,737
117,383
3,044,542
Expenditures
Culture and recreation
-
2,901,168
-
-
Development services
-
245,368
-
-
General and administrative
175,775
228,787
-
-
Public safety
-
-
34,004
2,108,446
Debt service
Principal
-
205,000
-
-
Interest and fiscal charges
-
189,725
-
-
Capital outlay
-
33,514
17,780
25,482
Total expenditures
175,775
3,803,562
51,784
2,133,928
Excess (deficiency) of revenues
over (under) expenditures
1,007,357
2,384,175
65,599
910,614
Other financing sources (uses)
Proceeds from sale of assets
-
4,125
-
-
Transfers in
-
-
5,000
-
Transfers out
(377,374)
(424,826)
-
(5,000)
Total other
financing sources (uses)
(377,374)
(420,701)
5,000
(5,000)
Net change in fund balances 629,983 1,963,474 70,599 905,614
Fund balance,
beginning of year 576,436 3,998,678 532,334 1,083,533
Fund balance, end of year $ 1,206,419 $ 5,962,152 $ 602,933 $ 1,989,147
96
cial Revenue Funds
Police
Cable
Special
Seized
Juvenile Glade Parks
TIRZ#3
Midtown
TIRZ#4
PEG
Revenue
Asset
Case PID
Glade Parks
PID
Midtown
Fees
Funds
Fund
Fund Fund
Fund
Fund
Fund
Fund
Totals
$ -
$ - $ -
$ 1,527,120
$ -
$ 361,460 $
-
$ 1,888,580
-
- -
-
-
-
89,657
1,272,502
-
- -
401,180
-
9,019
-
9,543,698
96
104 -
746
100
-
238
5,132
-
- -
-
-
-
-
117,144
-
- -
-
-
-
-
88,580
-
43,913 -
-
982,070
-
-
1,032,861
96
44,017 -
1,929,046
982,170
370,479
89,895
13,948,497
-
- -
-
-
-
-
2,901,168
-
- -
-
-
-
-
245,368
-
105,296 -
-
11,801
-
42,255
563,914
21,516
- -
-
-
-
-
2,163,966
-
- -
-
-
-
-
205,000
-
- -
-
-
-
-
189,725
-
- -
-
-
-
66,850
143,626
21,516
105,296 -
-
11,801
-
109,105
6,412,767
(21,420)
(61,279) -
1,929,046
970,369
370,479
(19,210)
7,535,730
-
- -
-
-
-
-
4,125
-
- -
-
-
-
-
5,000
-
- -
(1,138,167)
(972,754)
(100,009)
-
(3,018,130)
-
- -
(1,138,167)
(972,754)
(100,009)
-
(3,009,005)
(21,420)
(61,279) -
790,879
(2,385)
270,470
(19,210)
4,526,725
254,658 257,636 750,000 1,854,354 124,550 127,023 608,662 10,167,864
$ 233,238 $ 196,357 $ 750,000 $ 2,645,233 $ 122,165 $ 397,493 $ 589,452 $ 14,694,589
97
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - NON -MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2021
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
Investment income
DEA revenues
Rents and royalties
Other revenues
Total revenues
Expenditures
Culture and recreation
Development services
General and administrative
Public safety
Debt service
Principal
Interest and fiscal charges
Capital outlay
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 change in fund balances
Fund balance,
beginning of year
Fund balance, end of year
1,290 6,155 4,716 704
- 85,234 -
- 385 33,958 -
1,290 6,540 123,908 704
87,838 500 - -
10,402
2,592,254 - 2,849,282 3,414,133
2,680,092 500 2,849,282 3,424,535
(2,678,802)
250,000
6,040 (2,725,374) (3,423,831)
- 205,728 2,075,000
250,000 - 205,728 2,075,000
(2,428,802) 6,040 (2,519,646) (1,348,831)
3,250,413
2,214,281
9,269,301
1,397,575
$ 821,611 $
2,220,321
$ 6,749,655 $
48,744
98
Capital Project Funds
TIRZ #4
Car
Capital
Total
Midtown Midtown
Rental
Project
Non -major
Reserve CIP
CIP
Funds
Governmental
Fund Fund
Fund
Totals
Funds
$ - $ -
$ -
$ -
$ 1,888,580
- -
-
-
1,272,502
- -
-
-
9,543,698
- -
6,311
19,176
24,308
- -
-
-
117,144
- -
-
85,234
173,814
- -
-
34,343
1,067,204
- -
6,311
138,753
14,087,250
88,338 2,989,506
- - 245,368
8,621 19,023 582,937
- - 2,163,966
- - 205,000
- - 189,725
430,987 9,286,656 9,430,282
439,608 9,394,017 15,806,784
- - (433,297) (9,255,264) (1,719,534)
- 4,125
2,530,728 2,535,728
- (3,018,130)
- 2,530,728 (478,277)
(433,297) (6,724,536) (2,197,811)
999,725
69,475
2,313,552
19,514,322
29,682,186
$ 999,725
$ 69,475
$ 1,880,255
$ 12,789,786 $
27,484,375
99
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, 2021
Revenues
Gross receipts tax
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
Variance with
Actual Final Budget
GAAP Positive
Basis (Negative)
$ 528,338
$ 528,338
$ 1,182,845 $
654,507
4,000
4,000
287
(3,713)
532,338
532,338
1,183,132
650,794
146,800
146,800
175,775
(28,975)
146,800
146,800
175,775
(28,975)
385,538 385,538 1,007,357
(377,374) (377,374) (377,374)
(377,374) (377,374) (377,374)
8,164 8,164 629,983
621,819
621,819
Fund balance, beginning of year
576,436
576,436
576,436 -
Fund balance, end of year
$ 584,600
$ 584,600
$ 1,206,419 $ 621,819
100
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, 2021
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 (deficiency) of revenues
over (under) 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)
$ 4,901,755
$ 4,901,755
$ 6,096,234
$ 1,194,479
10,000
10,000
2,923
(7,077)
73,580
73,580
88,580
15,000
4,985,335
4,985,335
6,187,737
1,202,402
3,536,367
3,630,881
2,934,682
696,199
727,992
727,992
245,368
482,624
330,165
364,520
228,787
135,733
205,000
205,000
205,000
-
189,605
189,605
189,725
(120)
4,989,129
(3,794)
5,117,998
(132,663)
3,803,562
2,3 84,175
1,314,436
2,516,838
- - 4,125 4,125
(467,896) (467,896) (424,826) 43,070
(467,896) (467,896) (420,701) 47,195
(471,690) (600,559) 1,963,474 2,564,033
3,998,678 3,998,678 3,998,678
$ 3,526,988 $ 3,398,119 $ 5,962,152 $ 2,564,033
101
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, 2021
Revenues
Investment income
DEA revenues
Total revenues
Expenditures
Public safety
Total expenditures
Excess (deficiency) of revenues
over (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)
$ 2,050 $ 2,050 $ 239 $ (1,811)
- - 117,144 117,144
2,050 2,050 117,383 115,333
179,162 199,162 51,784
179,162 199,162 51,784
(177,112) (197,112) 65,599
147,378
147,378
262,711
- 5,000 5,000
5,000 5,000
(177,112) (197,112) 70,599 267,711
532,334 532,334 532,334 -
$ 355,222 $ 335,222 $ 602,933 $ 267,711
102
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, 2021
Revenues
General sales tax
Other revenue
Investment income
Total revenues
Expenditures
Public safety
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
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)
$ 2,156,768
$ 2,156,768
$ 3,037,265
$ 880,497
-
-
6,878
6,878
5,000
5,000
399
(4,601)
2,161,768
2,161,768
3,044,542
882,774
2,205,685
2,205,685
2,133,928
71,757
2,205,685
2,205,685
2,133,928
71,757
(43,917)
(43,917)
910,614
954,531
-
-
(5,000)
(5,000)
-
-
(5,000)
(5,000)
(43,917)
(43,917)
905,614
949,531
1,083,533
1,083,533
1,083,533
-
$ 1,039,616
$ 1,039,616
$ 1,989,147
$ 949,531
103
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, 2021
Revenues
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
$ 1,000 $ 1,000 $
1,000 1,000
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
96 $ (904)
96 (904)
34,104
34,104
21,516
12,588
34,104
34,104
21,516
12,588
(33,104)
(33,104)
(21,420)
11,684
254,658
254,658
254,658
-
$ 221,554
$ 221,554 $
233,238 $
11,684
104
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, 2021
Budgeted Amounts
Original Final
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
Revenues
Investment income $ 1,800 $ 1,800 $ 104 $ (1,696)
Other revenues 52,200 52,200 43,913 (8,287)
Total revenues 54,000 54,000 44,017 (9,983)
Expenditures
General and admuiistrative
126,658
126,658
105,296
21,362
Total expenditures
126,658
126,658
105,296
21,362
Net change in fund balance
(72,658)
(72,658)
(61,279)
11,379
Fund balance, beginning of year
257,636
257,636
257,636
-
Fund balance, end of year
$ 184,978
$ 184,978
$ 196,357 $
11,379
105
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, 2021
Variance with
Actual
Final Budget
Budgeted Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
Revenues
General property tax
$ 1,538,782
$ 1,538,782
$ 1,527,120
$ (11,662)
General sales tax
290,950
290,950
401,180
110,230
Investment income
2.500
2.500
746
(1.754)
Total revenues 1,832,232 1,832,232 1,929,046 96,814
Other financing uses
Transfers out (1,138,167) (1,138,167) (1,138,167) -
Total other
financing uses
(1,138,167)
(1,138,167)
(1,138,167) -
Net change in fund balance
694,065
694,065
790,879 96,814
Fund balance, beginning of year
1,854,354
1,854,354
1,854,354 -
Fund balance, end of year
$ 2,548,419
$ 2,548,419
$ 2,645,233 $ 96,814
106
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, 2021
Variance with
Actual
Final Budget
Budgeted Amounts
GAAP
Positive
Original
Final
Basis
(Negative)
Revenues
Other revenues
$ 1,109,756
$ 1,109,756
$ 982,070
$ (127,686)
Investment income
-
-
100
100
Total revenues
1,109,756
1,109,756
982,170
(127,586)
Expenditures
General and administrative
36,993
36,993
11,801
25,192
Total expenditures
36,993
36,993
11,801
25,192
Excess of revenues over expenditures
1,072,763
1,072,763
970,369
(102,394)
Other financing uses
Transfers out
(972,754)
(972,754)
(972,754) -
Total other financing uses
(972,754)
(972,754)
(972,754) -
Net change in fund balance
100,009
100,009
(2,385) (102,394)
Fund balance, beginning of year
124,550
124,550
124,550 -
Fund balance, end of year
$ 224,559
$ 224,559
$ 122,165 $ (102,394)
107
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, 2021
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)
$ 383,189 $ 383,189 $ 361,460 $ (21,729)
16,800 16,800 9,019 (7,781)
399,989 399,989 370,479 (29,510)
(100,009) (100,009) (100,009) -
(100,009) (100,009) (100,009) -
299,980 299,980 270,470 (29,510)
127,023 127,023 127,023 -
$ 427,003 $ 427,003 $ 397,493 $ (29,510)
108
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, 2021
Variance with
Actual Final Budget
Budgeted Amounts
GAAP
Positive
Original Final
Basis
(Negative)
Revenues
Gross receipts tax
$ 105,000 $ 105,000
$ 89,657
$ (15,343)
Investment income
5,000 5,000
238
(4,762)
Total revenues
110,000 110,000
89,895
(20,105)
Expenditures
General and administrative
50,000
50,000
42,255
7,745
Capital outlay
60,000
60,000
66,850
(6,850)
Total expenditures
110,000
110,000
109,105
895
Net change in fund balance
-
-
(19,210)
(19,210)
Fund balance, beginning of year
608,662
608,662
608,662
-
Fund balance, end of year
$ 608,662
$ 608,662
$ 589,452 $
(19,210)
109
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.
110
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2021
Equipment
Replacement
Insurance
Risk/WC
Fund
Fund
Fund
Total
ASSETS
Current Assets
Deposits and investments
$ 11,776,261
$ 6,465,562
$ 2,348,828
$ 20,590,651
Accounts receivable
-
173,583
58,885
232,468
Prepaid expenses
958,744
-
-
958,744
Accrued interest receivable
2,834
710
43
3,587
Restricted deposits and investments
652,016
652,016
Total current assets
13,389,855
6,639,855
2,407,756
22,437,466
Property, plant, and equipment, at cost
Equipment
15,869,288
-
170,157
16,039,445
Less accumulated depreciation
10,109,200
-
83,332
10,192,532
Net property, plant, and equipment 5,760,088 -
Total assets
19,149,943 6,639,855
86,825 5,846,913
2,494,581 28,284,379
LIABILITIES
Current Liabilities
Accounts payable
12,086 20,823
278,417
311,326
Accrued salary and wages
- 2,702
1,494
4,196
Current portion of compensated absences
- 416
240
656
Accrued insurance claims
- 840,000
2,843
842,843
Total current liabilities
12,086 863,941
282,994
1,159,021
Non -current Liabilities
Compensated absences - 3,741 2,164 5,905
Total non -current liabilities - 3,741 2,164 5,905
Total liabilities 12,086 867,682 285,158 1,164,926
NET POSITION
Net investment in capital assets 6,412,104 - 86,825 6,498,929
Unrestricted 12,725,753 5,772,173 2,122,598 20,620,524
Total net position $ 19,137,857 $ 5,772,173 $ 2,209,423 $ 27,119,453
111
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2021
Operating revenues
Insurance premnims
Service fees and miscellaneous
Total operating revenues
Operating expenses
General and administrative
Insurance costs
Depreciation
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
$ - $ 6,199,743 $ 502,993 $ 6,702,736
2,562,590 1,075,015 - 3,637,605
2,562,590 7,274,758 502,993 10,340,341
377,107 1,701,609 236,913 2,315,629
- 5,488,320 818,069 6,306,389
1,457,727 - 15,629 1,473,356
Total operating expenses
1,834,834
7,189,929
1,070,611
10,095,374
Operating income (loss)
727,756
84,829
(567,618)
244,967
Nonoperating revenues
Gain on sale of capital assets
231,775
-
-
231,775
Investment income
12,514
7,032
929
20,475
Total nonoperating revenues
244,289
7,032
929
252,250
Income (loss) before transfers
972,045
91,861
(566,689)
497,217
Transfers
Transfers in
1,695,000
-
512,000
2,207,000
Total transfers
1,695,000
-
512,000
2,207,000
Change in net position
2,667,045
91,861
(54,689)
2,704,217
Net position, beginning of year
16,470,812
5,680,312
2,264,112
24,415,236
Net position, end of year
$ 19,137,857
$ 5,772,173
$ 2,209,423
$ 27,119,453
112
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2021
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
Transfers in
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
$ 2,562,590 $ 7,126,426 $ 571,350 $ 10,260,366
(1,376,355) (6,918,439) (1,126,070) (9,420,864)
- (81,837) (54,270) (136,107)
1,186,235 126,150 (608,990) 703,395
1,695,000
Net cash provided by noncapital financing activities 1,695,000
CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition/construction of capital assets (1,739,822)
Proceeds from sale of capital assets 231,775
Net cash used in capital and related financing activities (1,508,047)
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
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
- 512,000 2,207,000
- 512,000 2,207,000
- - (1,739,822)
231,775
- - (1,508,047)
16,632
7,419
886
24,937
16,632
7,419
886
24,937
1,389,820
133,569
(96,104)
1,427,285
11,038,457
6,331,993
2,444,932
19,815,382
$ 12,428,277
$ 6,465,562
$ 2,348,828
$ 21,242,667
$ 727,756 $ 84,829 $ (567,618) $ 244,967
1,457,727 - 15,629 1,473,356
(148,332) 68,357 (79,975)
(958,744) - - (958,744)
(40,504) (11,969) (126,159) (178,632)
622 801 1,423
- 201,000 - 201,000
$ 1,186,235 $ 126,150 $ (608,990) $ 703,395
$ 11,776,261 $ 6,465,562 $ 2,348,828 $ 20,590,651
652,016 - - 652,016
Cash and cash equivalents $ 12,428,277 $ 6,465,562 $ 2,348,828 $ 21,242,667
113
T H E C I T Y O
EULESS
114
STATISTICAL SECTION
(Unaudited)
115
STATISTICAL SECTION
(Unaudited)
The statistical section of the City of Euless' annual comprehensive 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 9-12
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 13-14
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 15-17
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.
116
CITY OF EULESS, TEXAS
NET POSITION BY COMPONENT — LAST TEN FISCAL YEARS
(Accrual Basis of Accounting — Unaudited)
Table 1
Fiscal Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Governmental activities
Net investment in capital assets
$ 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 $
130,459,839
Restricted
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
7,441,090
Unrestricted
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
37,117,415
Total govemmentalactivities net position
$ 109,447,971
$ 117,277,635
$ 123,083,378
$ 122,508,982
$ 129,255,119
$ 136,269,089
$ 137,029,994
$ 143,974,034
S 159,269,613 S
175,018,344
Business -type activities
Net investment in capital assets
$ 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 $
64,950,870
Restricted for debt service
309,595
314,171
317,758
733,562
733,164
733,264
1,018,037
1,426,830
1,425,701
1,426,103
Restricted for capitalprojects
-
232,300
1,183,350
4,265,268
1,166,442
3,962,644
10,646,450
4,256,167
-
Restricted for impact fees
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
3,247,897
Unrestricted
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
23,441,214
Total business -type activities net position
$ 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 $
93,066,094
Primary government
Net investment in capital assets
$ 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
$ 195,410,709
Restricted
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
12,115,090
Unrestricted
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
60,558,629
Total primary govemmentnet position
$ 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
$ 268,084,428
Source: Annual Comprehensive Financial Reports
117
CITY OF EULESS, TEXAS
CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(Accrual Basis of Accounting - Unaudited)
Table 2
Fiscal Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Expenses
Governmental activities:
Culture and recreation
$ 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
$ 6,890,021
Development services
972,770
1,155,089
1,367,005
877,713
918,214
999,153
1,038,328
1,057,414
1,062,784
903,633
General andadmaustrative
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
20,604,298
Highways and streets
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
3,905,567
Public safety
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
27,489,405
Interest on long-term debt
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
2,507,261
Total governmental activities expenses
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
62,300,185
Business -type activities:
Water and wastewater
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
24,823,460
Drainage utility
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
1,571,836
Golf
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
4,201,337
Other recreation enterprises
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
1,568,441
Total business -type activities expenses
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
32,165,074
Total primary government expenses
74,998,181
79,075,888
82,903,137
83,069,990
89,873,527
93,100,201
94,230,446
101,115,906
93,271,468
94,465,259
Program Revenues
Governmental activities:
Fees, fines, and charges for services
Culture and recreation
65,912
297,361
304,283
317,024
291,349
264,307
252,000
266,091
10,124
$ 295,097
Development services
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
1,578,146
General and administrative
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
687,136
Highways and streets
54,622
112,736
218,012
93,258
350,920
607,588
988,302
1,114,507
1,075,865
982,070
Public safety
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
2,325,458
Operating grants and contributions
481,655
2,978,933
633,080
597,437
578,007
592,870
740,969
622,061
3,594,939
810,821
Capital grants and contributions
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
396,317
Total governmental activities program revenues
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
7,075,045
Business -type activities:
Charges for services
Water and wastewater
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
28,571,921
Drainage utility
705,474
708,984
712,971
716,595
725,152
730,202
818,622
826,711
833,890
842,003
Golf
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
4,350,610
Other recreation enterprises
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
1,433,139
Operating grants and contributions
-
-
-
-
-
-
-
-
-
-
Capital grants and contributions
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
1,002,393
Total business -type activities program revenues
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
36,200,066
Total primary government program revenues
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
43,275,111
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
(Continued)
118
Net (Expense) Revenue
Governmental activities
Business -type activities
Total primary government net expense
General Revenues
and Other Changes in Net Position
Goverrnnental activities:
Taxes
Property taxes, levied for general purposes
Sales taxes
Car rental taxes
Mixed beverage taxes
Hotellmotel occupancy taxes
Gross receipts taxes
Investment income
Rents and royalties
Gam on sale of assets
Misce➢aneous
Transfers
Total governmental activities
Business -type activities:
Investment income
Gam on disposal ofassets
Transfers
Total business -type activities
Total pnnury 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
$ (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) $ (55,225,140)
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 4,034,992
(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) (51,190,148)
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
24,195,500
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
24,373,082
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
13,062,591
54,138
60,823
69,160
84,533
101,503
128,250
154,035
138,219
146,188
171,687
292,931
329,368
343,312
391,991
696,805
798,905
864,829
841,588
924,551
1,182,845
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
4,221,250
132,607
106,521
70,374
127,367
271,786
451,406
963,670
1,882,696
1,054,661
123,646
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
1,574,739
68,329
117,763
84,664
-
-
124,792
-
-
-
-
637,975
35,884
48,773
35,128
692,939
755,996
772,773
930,764
971,040
1,081,893
690,629
692,951
531,974
722,702
(703,751)
(233,569)
760,590
820,663
551,974
986,638
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
70,973,871
60,752 40,045
34,063 40,282
104,618
158,805
385,513
746,865
368,999 42,346
- 41,630
- 4,199
13,185
57,466
2,873
9,500
(84,752) -
(690,629) (692,951)
(531,974) (722,702)
703,751
233,569
(760,590)
(820,663)
(551,974) (986,638)
(629,877) (611,276)
(497,911) (678,221)
821,554
449,840
(372,204)
(64,298)
(267,727) (944,292)
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 70,029,579
Govemmentalactnrnies 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
15,748,731
Business -type activities (552,176)
922,920
(641,073)
939,525
5,451,249
4,031,443
4,219,878
4,427,467
2,102,186
3,090,700
Total pmnarygovemment $ 4,577,216 $
8,752,584 $
5,604,931 $
9,681,191 $
12,197,386 $
11,045,413 $
15,978,525 $
11,371,507 $
17,397,765 $
18,839,431
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
(concluded)
Source: Annual Comprehensive Financial Reports
119
CITY OF EULESS, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting - Unaudited)
Table 3
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable
$ 28,796 $
49,262
$ 48,072
$ 47,834
$ 35,250 $
52,050 $
51,409
$ 74,835 $
158,975
$ 223,609
Restricted
258,765
124,312
120,093
109,618
121,041
104,340
125,753
132,954
123,748
117,674
Assigned
111,096
121,542
121,334
116,336
113,655
107,657
121,708
135,720
145,057
164,801
Unreserved/Unassigned
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
20,240,670
Total general fmd
$ 9,311,735 $
9,890,674
$ 10,850,457
$ 11,049,330
$ 12,243,470 $
13,449,468 $
14,554,693
$ 16,973,615 $
20,218,506
$ 20,746,754
All Other Goverrnuental Funds
Nonspendable
$ 5,803
$ 9,464
$ 34,704
$ 15,399
$ 7,738 $
22,028 $
12,427
$ - $
24,873
$ 1,086
Restricted for:
Debt service
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
4,316,041
Capital projects
606,505
365,641
398,756
594,211
12,715,424
4,985,922
7,501,009
19,287,010
22,369,460
18,996,535
Other
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
3,007,375
Assigned
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
22,761,358
Total al. other governmental funds
$ 19,977,963
$ 17,528,339
$ 17,593,090
$ 19,308,917
$ 29,977,939 $
24,975,998 $
34,863,956
$ 45,487,016 $
46,526,275
$ 49,082,395
Source: Annual Comprehensive Financial Reports
120
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 ofdebt
Payment of escrow for refunding
Premiums on issuance ofdebt
Proceeds from sale ofassets
Transfers in
Transfers out
Total other financing sources
Net change in find 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
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$ 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 $
24,144,693
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
5,575,782
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
24,373,083
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
13,062,591
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
2,702,221
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
1,552,088
107,195
92,118
57,880
105,443
237,949
385,769
821,642
1,623,907
869,827
103,170
12,488
3,571
15,316
39,292
18,274
9,994
2,656
18,353
13,678
117,144
1,012,673
2,839,545
461,484
906,695
507,966
1,490,142
813,633
629,332
3,738,184
793,091
1,111,873
1,024,021
1,390,283
637,196
612,365
628,486
668,036
635,553
635,464
711,814
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
2,125,528
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
75,261,205
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
6,120,370
688,296
806,275
1,017,903
882,212
862,571
931,119
1,036,278
1,001,587
1,065,028
924,919
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
19,881,563
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
1,180,954
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
28,534,814
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
4,635,000
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
2,462,387
184,966
26,064
-
-
-
-
-
-
-
-
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
14,879,407
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
78,619,414
(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) (3,358,209)
-
1,446,603
-
-
249,370
-
-
-
-
9,740,000
1,160,000
11,400,000
20,760,000
-
9,805,000
13,420,000
12,345,000
6,985,000
(5,381,310)
(1,190,252)
(6,074,450)
-
-
-
-
-
260,435
79,046
789,428
403,354
264,116
869,936
524,348
401,414
-
-
- -
-
-
23,513
25,625
118,830
20,525
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
8,193,943
(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)
(9,158,305)
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
6,442,577
$ 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 $ 3,084,368
Source: Annual Comprehensive Financial Reports
18.5% 10.1% 12.1% 9.9% 9.2% 9.0% 10.4% 10.4% 11.4% 11.1%
121
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
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
2021
5,160,656,914
666,521,372
5,827,178,286
631,904,229
5,195,274,057
0.462500
Source: Tarrant Appraisal District
122
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
General
Fiscal
Operating /
Obligation Debt
Year
General Rate
Service
Total Direct Rate
2012
0.345388
0.124612
0.470000
2013
0.355130
0.114870
0.470000
2014
0.360619
0.109381
0.470000
2015
0.364505
0.102995
0.467500
2016
0.366571
0.100929
0.467500
2017
0.363053
0.099447
0.462500
2018
0.361056
0.101444
0.462500
2019
0.371710
0.090790
0.462500
2020
0.377974
0.084526
0.462500
2021
0.381954
0.080546
0.462500
Sources: City of Euless Budget Office, Tarrant Appraisal District
Overlapping Rates
Tarrant County
Hurst -Euless-
Grapevine-
Tarrant County
Community
Bedford ISD
Colleyville ISD
Tarrant County
Hospital District
College
1.4140
1.3100
0.2640
0.2280
0.1490
1.4075
1.3201
0.2640
0.2279
0.1490
1.3875
1.3201
0.2640
0.2279
0.1495
1.3750
1.3201
0.2640
0.2279
0.1495
1.3500
1.3201
0.2640
0.2279
0.1495
1.3160
1.3967
0.2540
0.2279
0.1447
1.2630
1.3967
0.2440
0.2244
0.1401
1.2730
1.3967
0.2340
0.2244
0.1361
1.2200
1.3267
0.2340
0.2244
0.1302
1.1980
1.3031
0.2340
0.0819
0.1302
123
Fiscal Year 2021
Taxpayer
EAN Holdings LLC
Westdale Hills 2013 LP
Star Monticello LLC/Star Kensington LLC
Creekwood Trinity Union LLC
WOP Mandolin LLC
Avis Budget Car Rental LLC
Brazos TX Partners LLC
Stoneleigh at Bear Creek Apt.
Bedrock Holdings II (Dallas) LLC
CMF 15 Portfolio LLC
Total
Source: Tarrant County Tax Office
CITY OF EULESS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
(Unaudited)
Fiscal Year 2012
Table 7
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Value
Value (1)
Taxpayer
Value
Value (2)
$ 114,881,525
2.21 %
EAN Holdings, LLC
$ 54,422,607
2.05 %
105,567,635
2.03
Hertz Corp
45,099,623
1.70
101,260,000
1.95
UDR The Mandolin LLC
44,018,000
1.66
81,300,000
1.56
Avis Budget Group LLC
40,082,937
1.51
80,700,000
1.55
IRA Stoneleigh FEECO LLC
37,294,700
1.41
76,057,108
1.46
CMF 15 Portfolio LLC
37,200,000
1.40
73,900,000
1.42
Big Vineyard Villae MSV LLC
34,483,841
1.30
66,500,000
1.28
Oncor Electric Delivery Co. LLC
33,715,628
1.27
62,900,000
1.21
Somerset Village Partners LP
33,352,614
1.26
62,790,000
1.21
AP WP Vineyard Reit LLC
33,000,000
1.24
$ 825,856,268
15.88 %
Total
$ 392,669,950
14.80 %
Notes:
(1) Total Taxable Value including real and personal property for tax year 2020 (fiscal year 2021) is $5,195,274,057.
(2) Total Taxable Value including real and personal property for tax year 2011 (fiscal year 2012) is $2,651,724,005.
124
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
ofthe Levy
Years
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
Amount
of Levy
2012
12,436,816
(89,925)
12,346,891
12,252,510
99.24%
81,802
12,334,312
99.90%
12,579
0.11%
2013
12,926,215
(227,241)
12,698,974
12,648,635
99.60%
36,604
12,685,239
99.89%
13,735
0.11%
2014
13,426,248
(70,742)
13,355,506
13,303,694
99.61%
35,429
13,339,123
99.88%
16,383
0.13%
2015
14,245,865
(194,614)
14,051,251
14,049,020
99.98%
(12,168)
14,036,852
99.90%
14,399
0.11%
2016
13,671,980
870,932
14,542,912
14,481,033
99.58%
45,245
14,526,278
99.89%
16,634
0.12%
2017
15,828,162
378,172
16,206,334
16,191,555
99.92%
(1,778)
16,189,777
99.90%
16,557
0.11%
2018
18,199,497
(43,090)
18,156,407
18,131,429
99.87%
8,120
18,139,549
99.91%
16,858
0.11%
2019
19,850,820
(60,806)
19,790,014
19,769,021
99.77%
(6,146)
19,762,875
99.86%
27,139
0.19%
2020
22,134,132
(51,428)
22,082,704
21,970,578
99.26%
26,517
21,997,095
99.61%
85,609
0.39%
2021
23,340,538
-
23,340,538
23,180,576
99.31%
-
23,180,576
99.31%
159,962
0.69%
Source: Tarrant County Tax Office and Tarrant Appraisal District
125
CITY OF EULESS, TEXAS
RATIO OF OUTSTANDING DEBT BY TYPE — LAST TEN FISCAL YEARS
(Unaudited)
Table 9
Governmental Activities
Business -Type Activities
Prenmmis/
Premauns/
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
ofPersonal
Per
Year
Bonds
Obligation Notes
Bonds
Leases
Refimdings (1)
Bonds
Bonds
Refundings (i)
Government
Income (3)
Capita (3)
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
4.84%
$
1,587
2021
4,115,000
54,930,000 2,370,000
5,450,000
-
2,432,587
(2)
17,780,000
3,295,000
97,984
(2)
90,265,571
4.48%
$
1,549
Note: Details regarding the
City's outstanding debt can be found
in the notes to the Financial Statements.
("
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 refundings due to their balance sheet reclassification to Deferred
Inflows of Resources.
(3)
See Table 14 for personal income and population data.
126
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
Fiscal Obligation of and Losses on Service Debt Estimated
Year Bonds Obligation RefUndings (1) Reserves Total (6) Population (2)
Taxable
Value (3)
Net Debt Net General
to Taxable Debt Per
Value Capita.
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
56,160
4,906,129,368
1.24%
$
1,085
2021
7,410,000
54,930,000
2,546,006
(5)
3,154,199
61,731,807
58,260
5,195,274,057
1.19%
$
1,060
Note: Details regarding the Citys outstanding debt can be found in the Notes to the Financial Statements. Total does not include revenue bonds.
Source: (1) Cohn n 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 refindings 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.
127
CITY OF EULESS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2021— (Unaudited)
Governmental Unit
Debt repaid with property taxes
Grapevine- Colleyville Independent School District
Hurst -Euless -Bedford Independent School District
Tarrant County
Tarrant County Hospital District
Tarrant County College District
Subtotal, overlapping debt
Debt repaid with property taxes
City of Euless (direct debt)
Debt
Outstanding
362,388,775
343,375,000
213,675,000
14,495,000
255,995,000
69,092,587
Estimated
Percentage
Applicable
10.14%
20.39%
2.38%
2.38%
2.38%
100.00%
Total direct and overlapping debt repaid with property taxes
Notes: The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages were
estimated by determining the portion of another governmental unit's taxable value that is within the City's boundaries and
dividing it by each units total taxable value.
The current year calculation of direct debt includes all general governmental activities debt including 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.
128
Table 11
Estimated
Share of
Overlapping
Debt
$ 36,746,222
70,014,163
5,085,465
344,981
6,092,681
118,283,512
69,092,587
$ 187,376,099
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS — LAST TEN FISCAL YEARS
(Unaudited)
Table 12
Interest
Less
Net
and
Fiscal
Total
Operating
Revenue
Fiscal
Coverage
Year
Revenues (1)
Expenses (2)
Available
Principal
Charges
Total
Ratio
2012
18,714,408
15,824,724
2,889,684
90,000
105,785
195,785
14.76
2013
19,399,314
16,660,397
2,738,917
330,000
82,110
412,110
6.65
2014
19,729,539
18,269,093
1,460,446
405,000
122,229
527,229
2.77
2015
21,182,560
17,879,209
3,303,351
410,000
129,703
539,703
6.12
2016
24,311,965
18,625,302
5,686,663
635,000
181,747
816,747
6.96
2017
24,353,525
19,249,699
5,103,826
765,000
175,682
940,682
5.43
2018
27,828,648
20,880,984
6,947,664
780,000
184,154
964,154
7.21
2019
27,603,615
21,006,298
6,597,317
915,000
191,327
1,106,327
5.96
2020
27,683,951
23,101,386
4,582,565
1,180,000
306,354
1,486,354
3.08
2021
29,072,318
22,122,296
6,950,022
945,000
274,924
1,219,924
5.70
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
129
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS — LAST TEN FISCAL YEARS
(Unaudited)
Table 13
Personal
Per
Income
Fiscal
Estimated Capita.
(thousands
Median
School
Unemployment
Year
Population �1> Income �2�
of dollars)
Age �2�
Enrollment (3)
Rate (4)
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%
2021
58,260 $ 34,575
$ 2,014,340
35.3
22,884
4.6%
Notes: (1)
Estimates by North Central Texas Council of Governments
(2)
Estimates by Claritas Site Reports; Research & Demographic Solutions; 2014 forward fYom US Census Bureau
(3)
Hurst -Euless -Bedford Independent School District
(4)
Texas Workforce Commission; Bureau
of Labor Statistics
(5)
Updated from projected to actual
130
CITY OF EULESS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
(Unaudited)
Table 14
2021* 2012
Percentage of
Percentage of
Estimated Total
Estimated Total
Employer
Employees
City Employment
Employer
Employees
City Employment
HEB ISD
1,033
4.16%
HEB ISD
818
3.25%
LSG Sky Chefs, Inc.
663
2.67%
LSG Sky Chefs, Inc.
800
3.18%
City of Euless
390
1.57%
City of Euless
360
1.45%
Target
250
1.01%
Redi Mix Concrete
355
1.41%
Lowe's
225
0.91%
AutogrillGroup, Inc.
350
1.39%
Life Outreach International
186
0.75%
Life Outreach International
181
0.72%
Redi Mix Concrete
185
0.74%
Super Target
150
0.60%
Dave and Buster's
150
0.60%
Lowe's
125
0.50%
QuikTrip
130
0.52%
Home Depot
122
0.48%
Flynn BEC, LP
120
0.48%
TJ Lambrecht Construction
120
0.48%
Thirsty Lion
120
0.48%
Total
3,452 13.89%
Source: City of Euless Planning and Development Department
* Prior year data used if updated information was unavailable.
131
3,381 13.46%
CITY OF EULESS, TEXAS
FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS
(Unaudited)
Table 15
Function/Program
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
General Government
and Administration
48.50
48.50
48.50
48.00
49.50
50.00
51.00
50.50
50.50
49.00
Public Safety
129.00
132.00
135.00
136.00
136.00
136.00
137.00
137.00
139.00
139.00
Fire Safety
72.00
72.00
72.00
72.00
72.00
75.00
75.00
75.00
75.00
75.00
Development Services
6.00
6.00
7.50
7.50
7.50
8.00
7.50
7.50
7.50
7.50
Culture and Recreational
32.00
30.50
33.25
34.25
34.25
35.25
35.25
35.25
34.25
34.25
Water and Wastewater
42.50
42.00
42.00
42.00
42.50
42.50
43.50
43.00
44.00
43.50
Golf Course
13.00
12.00
10.75
11.75
11.75
11.75
11.75
11.75
11.75
11.75
Public Works
18.50
18.50
18.50
20.00
20.00
21.00
22.50
23.50
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
368.00
368.00
374.00
378.00
380.00
386.00
390.00
390.00
392.00
390.00
Source: City Budget Office
132
CITY OF EULESS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS
(Unaudited)
Table 16
Function/Pro aram
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Public Safety
Police
Number of Certified Officers
85
87
92
92
92
87
91
91
86
85
Number of Citations Issued
22,787
26,356
25,500
24,573
18,483
25,061
19,100
16,552
11,154
9,283
Fire
Number of Certified Firefighters
70
70
70
70
70
72
73
74
72
75
Number ofAlarms
4,204
4,296
4,505
4,686
4,770
4,678
3,758
4,324
4,735
4,827
Number OfEMSCalls
2,982
3,108
3,230
3,424
3,431
3,772
3,468
2,958
3,256
3,204
Municipal Court
Cases Filed
26,889
32,192
31,172
28,885
25,957
25,061
25,101
22,472
15,400
12,751
Development
Number Residential Inspections - New
44
42
107
176
186
176
214
93
3
0
Number Commercial Inspections - New
29
16
29
33
15
36
32
18
12
13
Number Multifamily Inspections - New
0
0
1
1
0
0
1
6
0
0
Public Works
Street Overlay (Square Footage)
368,654
540,613
631,260
430,504
1,156,833
1,549,065
1,063,046
1,289,759
1,010,016
421,848
Cultural and Recreational
Parks and Recreation
Recreation Center Memberships
3,654
5,137
6,261
6,742 c�)
6,975
6,528
7,183
7,125
2,820
3,886
Water and Wastewater
Number of Water Consumers
24,428
25,039
25,319
26,014
25,812
25,970
26,200
26,659
27,467
27,855
Water Produced (In Gallons x 1000)
299,107
416,843
380,864
741,225
540,921
439,255
580,337
569,697
8,520 (3)
0 (4)
Water Purchased - TRA (In Gallons x 1000)
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
2,187,563
Water Supplied (In Gallons x 1000)
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
2,187,563
Annual Rainfall (In Inches)
36.57
24.41
23.98
44.45
53.16
34.96
42.39
48.20
45.27
33.41
Golf Course
Number ofPaid Rounds Played
34,550
35,890
22,110(2)
33,735
32,852
33,237
32,557
32,016
30,860
42,429
Source: City Departments
Annual Comprehensive Financial Report
City Budget Office
Notes:
Amount restated to include recreation, aquatic and senior memberships.
(2) Golfcourse closed for 3% months for renovations in 2014.
(3) Wells were out ofoperation for most ofthe year; two wells are in the process ofbeing replaced.
(4) All wells inoperational for the entire fiscal year; the two under construction are nearing completion.
133
CITY OF EULESS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS
(Unaudited)
Function/Pro Qram 2012 2013 2014 2015 2016 2017 2018 2019
Public Safety
Police Stations 1 1 1 1 1 1 1
Fire Stations 3 3 3 3 3 3 3
Public Works
Table 17
2020 2021
1 1 1
3 3 3
Streets - Paved (1)
332.4
333.4
340.62
342.8
344.77
350.12
350.12
351.74
Cultural and Recreational
Aquatic Facilities
3
4
3
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
Community Buildings
6
6
6
6
6
6
6
6
Ampitheater
2
2
3
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
28
28
30
30
30
30
Library Holdings
111,230
111,312
105500
98596
101160
85,123
80,241
81,353
Water and Wastewater
Water Mains - Potable �51
227.99
231.06
232.28
234.84
235.50
236.30
239.10
241.93
Water Mains - Reclaimed �5>
-
1.73
3.22
3.70
3.82
3.96
4.12
7.15
Fire Hydrants
1,550
1,579
1,633
1,648
1,674
1,719
1,798
1,805
Wastewater Mains �5>
187.6
187.6
191.3
192.4
193.2
195.2
197.0
198.4
Source: City Departments
(1) Reported in lane miles.
(2) Restated to exclude Softball Facility
(3) Restated to reflect Golf Course and Softball Facility land separately
(4) Softball Facility operations were combined
with Parks at Texas Star in FY2021.
(5) Miles of lines. Fiscal year 2012 figures have been restated to exclude
approximately two miles of TRA limes that had been accidentally included as City limes.
134
351.74
2
16
341
291
6
3
1
30
82,501
242.28
11.65
1,836
201.0
352.60
2
16
341
291
6
3
1
1
31
85,010
243.00
11.65
1,845
202.1