HomeMy WebLinkAboutCity of Euless Comprehensive Annual Financial Report FY2008CITY OF EULESS
COMPREHENSIVE
ANNUAL FINANCIAL
REPORT
FISCAL YEAR ENDING
SEPTEMBER 30, 2008
Phone: 817-685-1444
Fax: 817-685-1459
www.euless.org
201 N. Ector Drive
Euless, TX 76039
CITY OF EULESS
City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2008
Prepared by
City of Euless
Finance Department
201 North Ector Drive
Euless, TX 76039
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2008
C O N T E N T S
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal i-vii
City Officials viii
GFOA Certificate of Achievement ix
Organizational Chart x
FINANCIAL SECTION
Independent Auditor's Report 1-2
Management’s Discussion and Analysis (unaudited) 3-13
Basic Financial Statements
Government-W ide Financial Statements
Statement of Net Assets 14
Statement of Activities 15
Fund Financial Statements
Governmental Funds
Balance Sheet 16
Reconciliation of the Governmental Funds Balance Sheet to
Statement of Net Assets 17
Statement of Revenues, Expenditures, and Changes in Fund Balances 18
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 19
Proprietary Funds
Statement of Net Assets 20-21
Statement of Revenues, Expenses and Changes in Net Assets 22
Statement of Cash Flows 23-24
Fiduciary Funds
Statement of Fiduciary Net Assets 25
Notes to Basic Financial Statements 26-51
Required Supplementary Information
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 52
Budgetary Comparison Schedules 53-55
Notes to Required Supplementary Information 56
Combining and Individual Fund Statements and Schedules
Non-Major Governmental Funds
Combining Balance Sheet 59-60
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 61-62
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2008
C O N T E N T S – CONTINUED
Page(s)
Combining and Individual Fund Statements and Schedules – Continued
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Hotel/Motel Special Revenue Fund 63
Police Drug Enforcement Special Revenue Fund 64
Half-Penny Sales Tax Special Revenue Fund 65
Crime Control and Prevention District Special Revenue Fund 66
Public Safety Grant Funds – Special Revenue Funds 67
Juvenile Case Special Revenue Fund 68
Non-Major Proprietary Funds
Combining Statement of Net Assets 70-71
Combining Statement of Revenues, Expenses and Changes in Net Assets 72
Combining Statement of Cash Flows 73
Internal Service Funds
Combining Statement of Net Assets 75
Combining Statement of Revenues, Expenses and Changes in Net Assets 76
Combining Statement of Cash Flows 77
Fiduciary Funds
Statement of Changes in Assets and Liabilities 79
STATISTICAL SECTION (Unaudited) Table Page(s)
Net Assets by Component 1 81
Changes in Net Assets 2 82-83
Fund Balances, Governmental Funds 3 84
Changes in Fund Balances, Governmental Funds 4 85
Assessed and Estimated Actual Value of Taxable Property 5 86
Direct and Overlapping Property Tax Rates 6 87
Principal Property Tax Payers 7 88
Property Tax Levies and Collections 8 89
Ratio of Outstanding Debt by Type 9 90
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 10 91
Direct and Overlapping Governmental Activities Debt 11 92
Schedule of Revenue Bond Coverage W ater and Sewer Bonds 12 93
Schedule of Revenue Bond Coverage Drainage Utility Bonds 13 94
Demographic Statistics 14 95
Principal Employers 15 96
Full-time Equivalent City Government Employees by Function/Program 16 97
Operating Indicators by Function/Program 17 98
Capital Assets Statistics by Function/Program 18 99
INTRODUCTORY SECTION
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January 27, 2009
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 is pleased to submit the
Comprehensive Annual Financial Report for the City of Euless, Texas (“City”) for the
fiscal year ended September 30, 2008.
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. Responsibility for both the accuracy of the presented data and the
completeness and reliability of the presentation rests with the city. To the best of our
knowledge and belief, the enclosed data is accurate in all material respects, and is
organized in a manner designed to fairly present the financial position and results of
operations of the City as measured by the financial activity of its various funds. This
report fulfills the requirements of state law and the City’s home rule charter which
require that the City publish audited financial statements within 120 days from the close
of the fiscal year.
Weaver and Tidwell, L.L.P., a firm of licensed certified public accountants, have issued
an unqualified (“clean”) opinion on the City of Euless’ financial statements for the year
ended September 30, 2008. The Independent Auditor’s Report is located at the front of
the financial section of this report.
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 auditors’
report on the basic financials, Management’s Discussion and Analysis (“MD&A”), 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 compliment 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, usually presented on a multi-year basis that is
relevant to a financial statement reader.
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The Financial Section described above is prepared in accordance with generally accepted
accounting principles for governments as prescribed by the Governmental Accounting
Standards Board (“GASB”).
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 Texas Highway 183 which is a six-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”) in east Tarrant
County, one of the world’s busiest airports. The City is approximately 16.9 square miles
and serves a population of approximately 54,073.
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 City’s 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, ten boards and
commissions were created to assist the City Council in deciding matters of policy and
procedures and meet on various issues throughout the year.
The Basic Financial Statements of the City include all government activities,
organizations, and functions for which the City is financially accountable as defined by
GASB. In addition, financial statements of two component units of the city have been
included because of their fiscal dependency on the City (i.e. the primary government).
The Euless Development Corporation was created to promote parks, library services, and
economic development. The Crime Control District was created to proactively combat
crime. Additional information on these component units can be found in Note 1 in the
notes to the financial statements.
The City of Euless provides to its citizens a full range of services that have proven to be
necessary and meaningful. Major services provided under general government and
enterprise functions include: police and fire protection, emergency ambulance service,
development and code services, construction and maintenance of streets and highways,
park and recreational facilities, water and sewer services, and library services. The City
also offers a top ranked 18-hole golf course and conference centre facility, an adult
softball facility and a youth athletic complex. Internal services of the City, accounted for
on a cost reimbursement basis, are risk management, equipment replacement, and
employee health and dental coverage.
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The City’s accounting records for general governmental operations are maintained on a
modified accrual basis, with the revenues being recorded when available and measurable,
and expenditures being recorded when the services or goods are received and the
liabilities are incurred. Accounting records for the City’s utilities and other proprietary
activities are maintained on a full accrual basis.
In developing and maintaining the City’s accounting system, consideration is given to the
adequacy of the internal control structure. Internal accounting controls are designed to
provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets
against loss from unauthorized use, and (2) the reliability of financial records for
preparing financial statements and maintaining accountability for assets. The concept of
reasonable assurance recognizes that: (1) the cost of a control should not exceed the
benefits likely to be derived from it; and (2) the evaluation of costs and benefits requires
estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the
City’s internal accounting controls adequately safeguard assets and provide reasonable
assurance of proper recording of financial transactions.
The annual budget serves as the foundation for the City of Euless’ financial planning and
control. According to the City Charter, the City Manager provides the City Council a
budget by August 1st each year. The budget is filed with the City Secretary and open for
public inspection. Upon receipt of the budget, the Council sets a date for a public hearing
at which time interested citizens may express their opinion regarding the proposed
budget. The charter requires the Council to adopt the budget by a favorable majority vote
at least ten (10) 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 expenditure 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 and divisional
management for review.
Individual line items are reviewed and analyzed for budgetary compliance. Personnel
expenditures are monitored and controlled at a position level and capital expenditures are
monitored and controlled item by item. Revenue budgets are reviewed monthly.
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 the heart of the Dallas/Fort Worth (“DFW”) Metroplex
and adjacent to the Dallas/Fort Worth (“DFW”) International Airport. Thus, the
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economic vitality of the region significantly impacts the economic health of Euless.
DFW is the world’s third-busiest airport offering nearly 950 flights per day and serving
60 million passengers a year. (SOURCE: DFW website www.dfwairport.com). DFW’s
strategic central location and diverse economy are major factors in businesses relocating
to the area making it one of the fastest-growing economic regions in the country. In
addition, Tarrant County is one of the fastest growing counties in Texas with northeast
Tarrant County leading the way.
DFW is the largest metropolitan area in Texas and has sustained tremendous growth
during the past decade. DFW International Airport provides in excess of 305,000 jobs
and $16.6 billion annually to the regional economy (SOURCE: DFW website
www.dfwairport.com, DFW Airport 2007 Comprehensive Annual Financial Report).
DFW has a highly-diversified economy with more than 128,000 businesses, 1,500
regional and corporate headquarters, 24 Fortune 500 Companies, and a total workforce
for the metroplex topping 2.9 million. The region’s diverse economy has helped it
weather economic downturns in key sectors. (U.S. Census Bureau County Business
Patterns)
The Alliance Texas development in North Fort Worth is a 17,000-acre master-planned,
mixed-use community which is home to 200 companies, 28,000 employees, 6,700 single-
family homes, and is anchored by the inland port known as the Alliance Global Logistics
Hub. Fort Worth’s Alliance Airport is the first purely industrial airport in the Western
Hemisphere and is the cornerstone for the nation’s fastest growing industrial complex.
This area offers a variety of commercial real estate options, industrial space, office space
and retail and has contributed over $33.8 billion to the local economy (SOURCE:
Alliance website www.allianceairport.com, Alliance Texas Facts).
Taxable value for all residential and commercial property in the City of Euless was
approximately $2.6 billion for fiscal year 2008, which is a 6.6% increase over the prior
year. Sales tax collections increased during FY2008 with some development
opportunities still available that would improve our retail shopping opportunities.
Recent turmoil in the housing and financial markets has many cities in the region looking
for ways to cut costs while still providing the same excellent service that citizens have
come to expect. Euless will continue to look for additional revenue opportunities in order
to minimize the tax burden to citizens and will strive to cut costs, without impacting
service.
The City also receives a significant amount of revenue from a consolidated rental car
facility at DFW Airport. The City Council has chosen to utilize this funding source to
build reserves and to cash flow capital projects in lieu of debt issuance. Doing so has
allowed the City to refrain from becoming overly dependent on a volatile resource while
providing needed improvements for citizens.
The City of Euless has approximately 1,141 acres of undeveloped land outside of DFW
airport and another 1,700 developable acres within DFW Airport. Infrastructure
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improvements are underway on a major commercial tract within the City that will add
approximately 1,200,000 square feet of commercial/retail development upon completion.
Euless is pleased that State Highway 360, which lies on the eastern border of the City,
has been expanded. This provides greater access for undeveloped areas along this
highway. Also, the construction of the new Dallas Cowboys Stadium in Tarrant County,
with close proximity to Euless, is expected to bring additional tourism to the City.
The City of Euless continues to seek new development and redevelopment opportunities.
During the past few years, Euless has realized new commercial, industrial, residential,
and multi-family developments. The City of Euless continues to focus on bringing
quality sustainable development to the area.
The City also benefits from a well educated workforce, with approximately 80% of
graduating seniors in the Hurst-Euless-Bedford School District pursuing further
education. In addition, Euless’ median household income of $55,763 (source: Claritas
Site Reports) compares favorably to $51,813 for Tarrant County and $44,922 for the
State of Texas.
Long-Term Financial Planning
The City of Euless has developed a comprehensive capital improvements document as
well as a multi-year financial plan. Such strategic planning has allowed the City Council
to fund several major infrastructure upgrades, park enhancements and capital purchases
in a systematic manner with full consideration of the 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, therefore avoiding
the issuance of additional debt.
Major Initiatives
The City entered into an agreement with Acme Brick to ensure the retention of its sales
and administrative facility within the City of Euless. Agreement was also reached with
Redi-Mix Concrete to construct a new regional corporate headquarters facility that will
allow for expansion of its current operation. Additionally, the City welcomed the
development of two new quality hotels and several new retail sites which were located on
vacant tracts adjoining some of its most heavily traveled thoroughfares.
The City has partnered with Tarrant County, local churches, and local businesses to
renovate qualifying homes in the community through the Tarrant County Home Program
and the Euless Revitalization Program. In addition, the city created a redevelopment
initiative which is designed to enhance development and promote redevelopment
throughout the community.
The City is working with a developer on a major mixed use center located along the
southwest corner of Glade Road and Highway 121. This center should provide
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approximately 1.2 million square feet of retail/office as well as a unique residential
component. The City expects the sales tax benefit from this center to be significant.
Infrastructure improvements at this location are currently underway, with the remaining
construction to begin in the fall of 2009.
During the fiscal year, the City continued to make improvements to drainage channels,
completed the reconstruction of Glade Road through an inter-local agreement with the
City of Grapevine; completed the renovation and expansion of the Library to include
additional office space, study rooms and a new local history and genealogy room; began
construction for the expansion and remodel of the Texas Star Conference Centre; and
replaced several water and wastewater mains throughout the city. All of these projects
were funded from cash reserves and did not require any debt issuance.
The City’s updated Facility Master Plan addresses many future needs including a new
senior citizen facility, a fire training facility, and renovation of several existing city
facilities. In addition, the Parks Master Plan focuses on the health and well-being of the
community and includes additional hike/bike trails, park amenities and upgrades, and
additional aquatic features for citizens of every age. The city expects to begin design of
the senior citizen facility during the 2009 fiscal year.
Awards and Acknowledgements
The Government Finance Officers Association (“GFOA”) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Euless for its
Comprehensive Annual Financial Report (“CAFR”) for the fiscal year ended September
30, 2007. 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 comprehensive annual
financial report (“CAFR”), whose contents conform to program standards. Such report
must satisfy both Generally Accepted Accounting Principals (“GAAP”) and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. This was the 21st
consecutive year that the City has received this prestigious award. We believe that our
current CAFR continues to conform to the Certificate of Achievement program
requirements and are submitting it to the GFOA for review.
In addition, the City of Euless also 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 17 years. In order to qualify for the Distinguished
Budget Presentation Award, the City’s budget document was judged to be proficient in
several categories, including a policy document, a financial plan, an operations guide, and
a communications device.
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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 employees 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 interest and
support in planning and conducting the financial operations of the City in a responsible,
professional, and progressive manner.
Respectfully Submitted,
Gary McKamie
City Manager
Loretta Getchell
Deputy City Manager
Vicki Rodriquez
Director of Finance
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FINANCIAL SECTION
OFFICES IN
DALLAS FORT WORTH HOUSTON
1
WWW.WEAVERANDTIDWELL.COM
AN INDEPENDENT MEMBER OF
BAKER TILLY
INTERNATIONAL
WE AVE R
TIDWELLAND
L .L .P.
Certified Public
Accountants
and Consultants
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
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 as of and for the year
ended September 30, 2008, which collectively comprise the City’s basic financial
statements as listed in the table of contents. These financial statements are the
responsibility of the City’s management. Our responsibility is to express an
opinion 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. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our 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, 2008, and the
respective changes in financial position and cash flows, where applicable, thereof
for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
The management’s discussion and analysis, the analysis of funding progress and
budgetary comparison information on pages 3 through 13 and 52 through 56, are
not a required part of the basic financial statements but are supplementary
information required by accounting principles generally accepted in the United
States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement
and presentation of the supplementary information. However, we did not audit
the information and express no opinion on it.
City of Euless, Texas
Page 2
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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, schedules and statistical tables are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules
have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material respects
in relation to the basic financial statements taken as a whole. The introductory
section and statistical tables have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we
express no opinion on them.
WEAVER AND TIDWELL, L.L.P.
Fort W orth, Texas
January 27, 2009
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CITY OF EULESS, TEXAS
Management’s Discussion and Analysis
For the Year Ended September 30, 2008
(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, 2008. 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? Have net assets (containing both short 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 80-99 of this report) as
well as information on the annual budget, the capital improvement plan, and other community
information found on the city’s website at www.ci.euless.tx.us . It should be noted that the
Independent Auditor’s Report describes the auditors’ association with the various sections of this
report and that all of the additional information from the website and other city sources are
unaudited.
Financial Highlights
• The assets of the City of Euless exceeded its liabilities at the close of the most recent fiscal
year by $162,711,090 (Net assets). This number must be viewed in the context that the vast
majority of the City’s net assets of $125,332,229 (77.0%) are capital assets and that most
capital assets in government do not directly generate revenue nor can they be sold to generate
liquid capital. Those net assets restricted for specific purposes totaled $1,813,871 (1.1%).
The remaining $35,564,990 (21.9%) are unrestricted net assets 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. Unrestricted net assets decreased by $7,961,391 in
fiscal year 2008. The decrease in unrestricted net assets is related to the City’s continued
effort to utilize excess (unrestricted) reserves to fund capital improvement projects on a pay-
as-you-go basis, rather than issuing long-term debt. The increase in capital assets in both the
governmental and business-type activities reflects such.
• As of the close of the current fiscal year, the City of Euless’ governmental funds reported
combined ending fund balances of $29,039,440, a decrease of $1,399,939 in comparison with
the prior year. Within this total, $1,967,502 is reserved for debt service, $12,974,920 is
restricted by bond covenant or designated by management or council to be used for capital
expenses, and $5,741,072 in the special revenue funds includes grant and other spending
restrictions. The remaining $8,355,946 is unreserved fund balance in the General Fund and
can be used for any lawful purpose. This fund balance represents 28% of total general fund
expenditures.
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• The City’s total capital assets increased by $6,479,680 which is primarily attributed to the
acquisition or construction of land, infrastructure, equipment and construction in progress.
• The City’s bonds payable decreased by $3,890,000 or 5.9%, due to the scheduled repayment
of principal on outstanding bonded debt. The City did not issue any new bonded debt during
the fiscal year.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of Euless’ basic
financial statements. The City’s basic financial statements 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 assets presents information on all of the City of Euless’ assets and
liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in net assets 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 assets changed
during the fiscal year. All changes in net assets 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 flows in
future fiscal periods (e.g., uncollected taxes and earned, but unused compensated absences).
Both of the government-wide financial statements distinguish between functions of the City that
are principally supported by taxes and intergovernmental revenues (governmental activities)
from other functions that are intended to recover all or a significant portion of their costs through
user fees and charges (business-type activities). The governmental activities of the City include
general government and administration, public safety, highways and streets, development, and
culture and recreation. The business-type activities of the City include water and sewer system,
drainage system, golf course, and other recreational activities.
The government-wide financial statements include not only the City of Euless itself (known as
the primary government), but also includes the Euless Development Corporation and the Crime
Control and Prevention District, 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 14-15 of this report.
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Fund Financial Statements. A fund is a self-balancing set of accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Euless, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City can be divided
into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements with
the exclusion of internal service fund activity. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, the reader may better understand the long-term impact of the government’s near-
term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains 18 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, Street CIP, and Car
Rental Tax funds, all of which are considered to be major funds. Data from the other 14
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 Fund and Car Rental Tax fund. A
budgetary comparison statement has been provided for both funds to demonstrate compliance
with this budget.
The basic governmental fund financial statements can be found on pages 16-19 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 sewer, drainage, golf, and several other recreational activities. Internal service funds are an
accounting device used to accumulate 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 are
included within governmental activities in the government-wide financial statements.
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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 Sewer, Drainage, and Golf, all of which are considered to be major
funds of the city. Data from the other recreational activities are combined into a single,
aggregate presentation. Individual data for each of these non-major enterprise funds is provided
in the form of combining statements elsewhere in this report. The internal service funds are
combined into a single, aggregate 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 20-24 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 page 25 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 26-51 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 obligation to provide pension benefits to its employees. Additionally, schedules
comparing budgetary figures and actual results of the General Fund and the Car Rental Tax Fund
are also located in this section of the report. Required supplementary information can be found
on page 52-56 of this report.
The combining statements referred to earlier in connection with non-major governmental funds,
non-major proprietary funds and internal service funds are presented immediately following the
required supplementary information on pensions and budgetary comparisons. Combining and
individual fund statements and schedules can be found on pages 57-79 of this report.
Government-wide Financial Analysis
As noted earlier, net assets and especially net assets 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 exceeded
liabilities by $162,711,090 as of September 30, 2008.
The largest portion of the City’s net assets (77.0%) reflects its investment in capital assets (i.e.,
land, building, equipment, improvements, construction in progress, and infrastructure), 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 exception of business-type assets, do not generate direct revenue for the city. They do
represent, however, an obligation on the part of the city to maintain these assets into the future.
7
Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the
capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net assets (1.1%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets
of $35,564,990 (21.9%) may be used to meet the government’s ongoing obligations to citizens,
creditors, and employees.
As of September 30, 2008, the City is able to report positive balances in all three categories of
net assets, for the government as a whole, as well as for its separate governmental and business-
type activities. The same situation held true for fiscal year 2007.
City of Euless’ Net Assets
Governmental Business-type
activities activities Total
2008 2007 2008 2007 2008 2007
Current and other assets 47,474,383$ 49,854,760$ 20,348,914$ 20,055,112$ 67,823,297$ 69,909,872$
Capital assets 105,692,237 100,348,487 66,032,624 64,876,694 171,724,861 165,225,181
Total assets 153,166,620 150,203,247 86,381,538 84,931,806 239,548,158 235,135,053
Long-term liabilities 44,080,186 46,807,102 12,999,001 13,749,270 57,079,187 60,556,372
Other liabilities 15,431,232 16,314,195 4,326,649 4,573,868 19,757,881 20,888,063
Total liab ilities 59,511,418 63,121,297 17,325,650 18,323,138 76,837,068 81,444,435
Net assets:
Invested in capital
assets, net of debt 73,176,978 58,251,542 52,155,251 50,186,697 125,332,229 108,438,239
Restricted 1,813,871 1,725,998 - - 1,813,871 1,725,998
Unrestricted 18,664,353 27,104,410 16,900,637 16,421,971 35,564,990 43,526,381
Total net assets 93,655,202$ 87,081,950$ 69,055,888$ 66,608,668$ 162,711,090$ 153,690,618$
The City’s total net assets increased $9,020,472 during the current fiscal year. This increase is
attributed to the change in capital assets which includes land, buildings, and infrastructure assets.
8
City of Euless’ Changes in Net Assets
Revenues:
Program revenues:
Fees, fines and c harges for
services 8,306,639$ 6,584,474$ 22,234,401$ 19,894,312$ 30,541,040$ 26,478,786$
Operating grants and
contributions 486,862 411,857 - - 486,862 411,857
Capital grants and
contributions 1,885,266 2,199,106 3,465,259 1,012,919 5,350,525 3,212,025
General revenues:- -
Property taxes 12,231,294 12,343,359 - - 12,231,294 12,343,359
Sales taxes 14,319,938 13,990,652 - - 14,319,938 13,990,652
Other taxes 16,968,392 16,903,694 - - 16,968,392 16,903,694
Investment income 1,727,542 2,031,580 726,385 1,023,865 2,453,927 3,055,445
Impact fees - - 252,045 253,786 252,045 253,786
Gain (loss) on sale of assets 71,143 74,163 - 277,004 71,143 351,167
Miscellaneous - - 10,406 224,001 10,406 224,001
Total revenues 55,997,076 54,538,885 26,688,496 22,685,887 82,685,572 77,224,772
Expenses:
Culture and recreation 4,862,749 5,002,569 - - 4,862,749 5,002,569
Development services 1,420,477 1,487,102 - - 1,420,477 1,487,102
General government 17,733,714 16,495,449 - - 17,733,714 16,495,449
Highways and streets 2,534,856 2,206,697 - - 2,534,856 2,206,697
Public safety 18,708,849 17,047,334 - - 18,708,849 17,047,334
Interest on long-term debt 3,151,039 2,664,658 - - 3,151,039 2,664,658
Water & sewer - - 17,501,930 15,418,299 17,501,930 15,418,299
Drainage utility - - 932,986 1,059,272 932,986 1,059,272
Golf course - - 4,598,840 4,250,866 4,598,840 4,250,866
Other enterprise funds - - 2,219,660 2,109,291 2,219,660 2,109,291
Total expenses 48,411,684 44,903,809 25,253,416 22,837,728 73,665,100 67,741,537
Increase (decrease) in net
assets before transfers 7,585,392 9,635,076 1,435,080 (151,841) 9,020,472 9,483,235
Transfers (1,012,140) 617,418 1,012,140 (617,418) - -
Increase (decrease) in net
assets 6,573,252 10,252,494 2,447,220 (769,259) 9,020,472 9,483,235
Net assets, beginning 87,081,950 76,829,456 66,608,668 67,377,927 153,690,618 144,207,383
Net asset, ending 93,655,202$ 87,081,950$ 69,055,888$ 66,608,668$ 162,711,090$ 153,690,618$
Governmental activities. Governmental activities increased the City’s net assets by $6,573,252
thereby accounting for 73% of the total growth in net assets. Key elements of this increase are as
follows:
• Fees, fines and charges for service of over $8.3 million were recorded in fiscal year 2008.
This revenue source includes jail revenue pertaining to the housing of detainees for
Immigration and Customs Enforcement, municipal court fines and fees, and ambulance
service charges.
9
• Operating and capital grants and contributions comprised 4.24% of the City’s revenue
stream. The North Central Texas Council of Government Clean Fleet grant and
developers contributions are recorded in this revenue category.
• Sales tax collections reached an all time record high of $14,319,938 in the current fiscal
year. Sales tax is a major revenue source for the City and equates to over 25% of total
revenues. Although the city’s sales tax rate remained unchanged, sales tax collections
increased due to new businesses and expansion of existing businesses.
• Investment income of nearly $1.73 million was earned on governmental investments
during the fiscal year. The weighted average portfolio yield declined during the fiscal
year, but remained above benchmark rates due to the holding of longer-term securities at
higher interest rates.
• Salary increases and associated benefit costs resulted in growth in expenses of $1.8
million. These expenses account for 51% of total governmental expenses.
• New development and additional sales tax receipts resulted in increased rebate payments
of nearly $1,000,000 per the terms of the incentive agreements.
• The completion of infrastructure and the acquisition of capital assets resulted in increased
depreciation expenses of roughly $278,000.
• Insurance claims and services increased by over $400,000 from fiscal year 2007 to fiscal
year 2008.
• Electric service costs rose by nearly 17% during the year resulting in governmental cost
increases of over $100,000.
• The net assets of general governmental operations accounts for 58% of total net assets.
Business-type activities. Business-type activities increased the City’s net assets by $2,447,220
accounting for 27% of the total growth in net assets. Key elements of this increase are as follows:
• Water and sewer revenues increased $2,118,742 due to an increase in total consumption
and an increase in rates.
• Recreation enterprise revenues totaled $5,723,467 which represents 23% of total
business-type activity revenues.
• Water purchases and wastewater treatment services provided by Trinity River Authority
increased expenses by $686,793.
• Salary increases and associated benefit costs resulted in growth in expenses of $342,843.
These expenses account for 24% of total business-type expenses.
• Non-capital equipment purchases including water meters and transponders totaled
$331,875.
• The Golf Course transferred $721,548 to the equipment replacement fund for future
equipment purchases.
• Net assets for business-type activities represents 42% of combined net assets.
10
Expenses and Program Revenues
Governmental Activities Business-Type Activities
Financial Analysis of the Government’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, unreserved 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 $29,039,440, a decrease of $1,399,939 in comparison with the prior
year. Approximately 86% constitutes unreserved fund balance, which is available for spending
at the government’s discretion. This portion includes both designated and undesignated,
unreserved fund balance. The remainder is reserved to indicate that it is not available for new
spending because it has already been committed 1) to pay debt service ($1,967,502), 2) to pay
for specific capital improvements per development agreements ($1,671,038), and 3) for a variety
of other restricted purposes ($363,263).
In the General Fund, the City budgeted for a decrease in fund balance (planned reduction) of
$3,644,031, due primarily to the anticipated purchase of capital items on a pay-as-you-go
financing basis. Due to positive budget variances in both revenues and expenditures, the actual
fund balance for fiscal year 2008 only decreased by $2,269,477. The Debt Service fund balance
increased $73,609 due to property tax collections. Street CIP fund balance decreased $615,850
due to infrastructure improvements on several major thoroughfares. The Car Rental Tax fund
balance was budgeted to decrease $3,721,309. However, this fund ended the year with an
additional drawdown of $346,786 due to decreased revenues.
$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
$20,000,000
G&A Culture &
Rec
Dev Srvcs Streets Public
Safety
Int on
debt
Expenses Program Revenues
$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
$20,000,000
Water Drainage Golf Other
Expenses Program Revenues
11
Proprietary funds. The City’s proprietary fund statements provide the same type of
information found in the government-wide financial statements for business-type activities, but
in more detail.
Unrestricted net assets of the proprietary funds at the close of the fiscal year are: Water and
Sewer fund $11,157,252, Drainage Utility fund $1,945,638, Golf Course $419,388, and all non-
major recreation enterprise funds combined $1,519,259. The Water and Sewer fund and the non-
major recreation enterprises experienced decreases in unrestricted net assets as a result of an
increase in the amount invested in capital assets. These asset additions were acquired on a pay-
as-you-go basis. Unrestricted net assets for Drainage Utility and Golf Course funds increased
$438,307 and $141,487, respectively.
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, 2008, totaled $171,704,861 (net of accumulated depreciation).
The investment in capital assets includes land, buildings, improvements, machinery and
equipment, infrastructure and construction in progress. The total increase in the City’s
investment in capital assets for the current fiscal year was $6,479,680 or 3.9%.
Major capital asset events occurring during the current fiscal year included the following:
• Developers contributed $758,308 in land; $1,126,958 in streets and sidewalks; $507,381 and
$516,696 in wastewater and water infrastructure, respectively; and $888,647 in drainage
infrastructure.
• Completion of the Midway Park Trail System at a total cost of $190,472 was added to the
park system.
• Completion of several street projects at a total cost of $487,039 which included Main Street,
South Pipeline Road, Dickey Drive, Huitt Street, and Huntington Drive.
• Miscellaneous street overlay, sidewalks, and park projects located throughout the city were
also completed at a total cost of $580,754.
• Construction-in-progress additions related to general government operations of $3,704,472
primarily consisted of Glade Road ($1,051,186), the conference center expansion
($2,081,623), the library expansion ($298,525), and various other smaller projects.
• Capital asset additions for governmental operations include, but are not limited to, police
equipment, the automated voicemail network, and the security system at the new public
works facility.
• Construction-in-progress additions related to business-type operations totaled $335,000 and
consisted primarily of water and wastewater line replacements for $305,000, and drainage
infrastructure improvements at $30,000.
• Completion of $1,819,064 in wastewater infrastructure including line repairs at Midway Park
North, Cedar Hill, Ector Drive, Carr Park/SH10, and Little Bear Creek.
• Completion of the Cannon Drive and Canyon Ridge water line repairs added $301,187 to the
water system.
12
• Capital asset additions for business operations include, but are not limited to, a motor for the
Main Street well, a chemical building, fuel dispensing equipment, and landscaping
equipment.
City of Euless’ Capital Assets (Net of Accumulated Depreciation)
activities activities Total
2008 2007 2008 2007 2008 2007
Land 25,865,466$ 24,068,687$ 3,121,072$ 2,776,602$ 28,986,538$ 26,845,289$
Buildings 30,452,984 31,645,850 2,756,684 2,831,331 33,209,668 34,477,181
Other improvements 2,702,688 2,566,992 11,798,738 28,978,511 14,501,426 31,545,503
M&E 4,658,054 3,788,247 845,291 695,270 5,503,345 4,483,517
Infrastructure 36,357,650 35,996,628 47,064,299 27,897,210 83,421,949 63,893,838
Construction in Progress 5,655,395 2,282,082 426,544 1,697,771 6,081,939 3,979,853
Total 105,692,237$ 100,348,486$ 66,012,628$ 64,876,695$ 171,704,865$ 165,225,181$
Business-typeGovernmental
During the fiscal year, the City’s storm-water drainage system was reclassified from other
improvements to infrastructure assets to properly reflect the asset classification. Additional
information on the City’s capital assets can be found in note 3 on pages 37-38 of this report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding
of $59,416,665. Of this amount, $48,781,665 comprises debt backed by the full faith and credit
of the government. The remainder of the City’s debt, $10,635,000, represents bonds secured
solely by specific revenue sources (i.e. revenue bonds).
City of Euless’ Outstanding Debt
activities activities Total
200820072008200720082007
GO Bonds $25,985,000 $27,350,000 $10,105,000 $10,560,000 $36,090,000 $37,910,000
CO's 14,575,000 15,555,000 - - 14,575,000 15,555,000
Revenue Bonds 5,875,000 6,540,000 4,760,000 5,185,000 10,635,000 11,725,000
Deferred Loss (1,032,256) (1,121,968) (851,079) (902,707) (1,883,335) (2,024,675)
Total $45,402,744 $48,323,032 $14,013,921 $14,842,293 $59,416,665 $63,165,325
Governmental Business-type
The City’s total debt decreased $3,890,000 or 5.9% during fiscal year 2008. This decrease is
primarily attributed to scheduled annual principal payments. The City has an “A1” rating from
Moody’s and an “AA-” rating from Standard & Poor’s for general obligation debt and revenue
bonds.
Additional information on the City’s long-term debt can be found in Note 4 on pages
39-44.
13
Economic Factors and Next Year’s Budgets and Rates
In the fiscal year 2008-09 budget, General Fund revenues and transfers are budgeted to increase
by 4% from the 2007-08 budget year with property taxes making up about 31% of budgeted
revenues and sales tax making up about 32% of budgeted revenues. Certified assessed
valuations as of September 1, 2008, increased 4.95% over the preceding year.
As of September 30, 2008, the City’s unemployment rate is 4.5% compared to the State of
Texas, which is 4.7%. In the FY2008-09 budget, sales tax receipts are projected to have an
increase due to the opening of additional businesses at the Shops at Vineyard Villages which is
located along Glade Road and State Highway 121. The car rental tax receipts are projected to
decrease slightly due to a slowdown in the travel industry.
Baseline budgeted expenditures in the General Fund are projected to increase approximately 4%
over FY2007-08. This increase is primarily attributed to the employees’ pay plan and associated
benefits, economic development incentive rebates, increased maintenance costs, and increased
transfers for equipment replacement. Departments were asked to hold increases in operating
expenses to a minimum in order to fund the employee salary and benefit package. The City
elected to increase its current level of funding for street maintenance and construction and pay-
as-you-go capital replacements due to the importance placed on these items. The tax rate
remained at .4700¢ per $100 of assessed value for fiscal year 2009.
The FY2008-09 budget anticipated a water rate increase of 14¢ and a wastewater rate increase of
22¢ due to increased production, distribution, and treatment costs incurred by the City and
Trinity River Authority (“TRA”). The City budgeted to continue its pay-as-you-go capital
program in the Water and Sewer fund which includes approximately $1,000,000 of infrastructure
improvements.
The Texas Star Golf Course revenues and rounds are budgeted to remain flat as compared to
prior year budget. Texas Star continues to see strong golf play and conference centre bookings,
however increases in costs of goods, fuel, and utilities, combined with the general slowdown in
the economy continue to present challenges for this operation. With the anticipated completion
of the conference centre renovation and expansion, management expects additional booking
opportunities with the ability to accommodate larger groups.
Request for Information
The financial report is designed to provide citizens, customers, investors and creditors with a
general overview of the City’s finances. If you have questions about this report or need
additional information, contact the Finance Department, Attn: Vicki Rodriquez, Director of
Finance, at 201 N. Ector Drive, Euless, Texas 76039, call (817) 685-1626, or e-mail
vrodriquez@ci.euless.tx.us.
CITY OF EULESS, TEXAS
GOVERNMENT-WIDE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
The Notes to the Basic Financial Statements
are an integral part of these statements.
14
Primary Government
Governmental Business-type
Activities Activities Total
Deposits and investments 42,348,644$ 12,358,333$ 54,706,977$
Receivables (net of allowances for
uncollectibles)6,674,615 2,397,303 9,071,918
Internal balances (1,859,100) 1,859,100 -
Inventories, at cost 11,646 248,137 259,783
Prepaid Items 36,659 35,426 72,085
Restricted assets
Investments - 3,270,453 3,270,453
Deferred charges 261,919 200,162 462,081
Capital assets
Land and construction in progress 31,520,861 3,547,612 35,068,473
Other capital assets, net of
accumulated depreciation 74,171,376 62,465,012 136,636,388
Total assets and other debits 153,166,620 86,381,538 239,548,158
Accounts payable 11,686,256 1,592,567 13,278,823
Accrued liabilities 325,291 318,807 644,098
Accrued interest payable 333,382 88,014 421,396
Deferred revenue - 83,333 83,333
Money held in escrow - 1,385,556 1,385,556
Noncurrent liabilities:
Due within one year 3,086,303 858,372 3,944,675
Due in more than one year 44,080,186 12,999,001 57,079,187
Total liabilities 59,511,418 17,325,650 76,837,068
Invested in capital assets, net of
related debt 73,176,978 52,155,251 125,332,229
Restricted for debt service 1,813,871 - 1,813,871
Unrestricted 18,664,353 16,900,637 35,564,990
Total net assets 93,655,202$ 69,055,888$ 162,711,090$
ASSETS
LIABILITIES AND NET ASSETS
LIABILITIES
NET ASSETS
CITY OF EULESS, TEXAS GOVERNMENT-WIDE STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2008 The Notes to the Basic Financial Statements are an integral part of these statements. Primary GovernmentFees, Fines Operating Capital Business - and ChargesGrants andGrants andGovernmentalTypeProgram ActivitiesExpensesfor ServicesContributionsContributionsActivitiesActivitiesTotalPrimary governmentGovernmental ActivitiesCulture and recreation4,862,749$ 65,349$ 19,082$ -$ (4,778,318)$ -$ (4,778,318)$ Development services1,420,477688,348 - - (732,129) - (732,129) General and administrative17,733,7141,391,437 24,154 - (16,318,123) - (16,318,123) Highways and streets2,534,856722,334 1,481 1,885,266 74,225 - 74,225 Public safety18,708,8495,439,171 442,145 - (12,827,533) - (12,827,533) Interest on long-term debt3,151,039- - - (3,151,039) - (3,151,039) Total governmental activities48,411,684 8,306,639 486,862 1,885,266 (37,732,917) - (37,732,917) Business-type activitiesWater & sewer16,462,599 15,849,209 - 1,294,953 - 681,563 681,563 Drainage utility932,771 661,725 - 888,647 - 617,601 617,601 Golf4,421,256 3,904,008 - - - (517,248) (517,248) Other recreation enterprises2,155,131 1,819,459 - - - (335,672) (335,672) Total business-type activities23,971,757 22,234,401 - 2,183,600 - 446,244 446,244 Total primary government72,383,441$ 30,541,040$ 486,862$ 4,068,866$ (37,732,917)$ 446,244$ (37,286,673)$ GENERAL REVENUESTaxesProperty taxes, levied for general purposes12,231,294$ -$ 12,231,294$ Sales taxes14,319,938 - 14,319,938 Other taxes16,968,392 - 16,968,392 Investment income1,727,542 726,385 2,453,927 Impact fees- 252,045 252,045 Gain/(Loss) on sale of assets71,143 - 71,143 Miscellaneous- 10,406 10,406 Transfers(1,012,140) 1,012,140 - Total general revenues and transfers44,306,169 2,000,976 46,307,145 Change in Net Assets6,573,252 2,447,220 9,020,472 NET ASSETS, beginning of year87,081,950 66,608,668 153,690,618 NET ASSETS, end of year93,655,202$ 69,055,888$ 162,711,090$ Net (Expense) Revenue andChanges in Net AssetsProgram Revenues15
CITY OF EULESS, TEXAS
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
The Notes to the Basic Financial Statements
are an integral part of these statements.
16
Debt Streets Car Other Total
General Service CIP Rental Tax Governmental Governmental
Fund Fund Fund Fund Funds Funds
Deposits and investments 9,070,971$ 1,017,774$ 3,248,190$ 9,159,653$ 12,927,181$ 35,423,769$
Receivables
Property taxes 364,385 174,635 - - - 539,020
Accounts receivable and unbilled revenue 2,727,755 - - 2,057,197 76,927 4,861,879
Accrued interest receivable 106,428 7,755 25,391 41,840 86,368 267,782
Due from other governments - - - - 901,766 901,766
Prepaids and deposits 22,605 - - - 14,054 36,659
Inventories, at cost 11,646 - - - - 11,646
Total assets 12,303,790$ 1,200,164$ 3,273,581$ 11,258,690$ 14,006,296$ 42,042,521$
Liabilities
Accounts payable 2,075,137$ -$ 996,418$ 7,775,638$ 434,044$ 11,281,237$
Accrued salaries and wages 276,265 - - - 39,495 315,760
Deferred revenue 1,234,424 171,660 - - - 1,406,084
Total liabilities 3,585,826 171,660 996,418 7,775,638 473,539 13,003,081
Fund Balances
Reserved for
Debt service - 1,028,504 - - 938,998 1,967,502
Court technology 254,084 - - - - 254,084
Development agreements - - - - 1,671,038 1,671,038
Betterment 11,065 - - - - 11,065
Injured animals 5,944 - - - - 5,944
Historical preservation - - - - 1,245 1,245
9-1-1 emergency system 22,805 - - - - 22,805
Technology 13,652 - - - - 13,652
Library remodel 6,200 - - - - 6,200
Victim assistance 2,477 - - - - 2,477
Radio rebanding 45,791 - - - - 45,791
Unreserved
Designated for
Contingency 500,000 - - - - 500,000
Emergency 500,000 - - - - 500,000
Undesignated, reported in
General fund 7,355,946 - - - - 7,355,946
Special revenue funds - - - 3,483,052 2,258,020 5,741,072
Capital projects funds - - 2,277,163 - 8,663,456 10,940,619
Total fund balances 8,717,964 1,028,504 2,277,163 3,483,052 13,532,757 29,039,440
Total liabilities and fund balances 12,303,790$ 1,200,164$ 3,273,581$ 11,258,690$ 14,006,296$ 42,042,521$
ASSETS
LIABILITIES AND FUND BALANCES
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
The Notes to the Basic Financial Statements
are an integral part of these statements.
17
Total fund balances - governmental funds 29,039,440$
Capital assets used in governmental activities are not current
financial resources and therefore are not reported in the
governmental funds balance sheet.105,692,237
Costs associated with the issuance of governmental long term debt
are expensed when incurred in the fund statements and capitalized
and amortized over the life of the debt in the government-wide
financial statements.261,918
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.(333,382)
Internal service funds are used by management to charge the cost
of certain activities,such as insurance and fleet management,to
individual funds.The assets and liabilities of the internal service
funds are net of the amount allocated to business-type activities,
capital assets and long term liabilities.4,755,393
Revenues earned but not available within sixty days of the year
end are not recognized as revenue on the fund financial
statements.1,406,084
Long-term liabilities,including bonds payable are not due and
payable in the current period and therefore are not reported in the
fund financial statements.(47,166,488)
Net assets of governmental activities 93,655,202$
Amounts reported for governmental activities in the statement of net
assets are different because:
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2008
The Notes to the Basic Financial Statements
are an integral part of these statements.
18
Debt Streets Car Other Total
General Service CIP Rental Tax Governmental Governmental
Fund Fund Fund Fund Funds Funds
Revenues
General property tax 8,830,419$ 3,370,555$ - $ - $ - $ 12,200,974$
Gross receipts tax 3,901,154 - - - 234,780 4,135,934
General sales tax 9,026,534 - - - 5,293,404 14,319,938
Car rental tax - - - 12,832,458 - 12,832,458
Fines and fees 4,297,304 - - - - 4,297,304
Licenses and permits 752,421 - - - - 752,421
Investment income 488,038 50,996 127,630 392,891 453,343 1,512,898
DEA revenues - - - - 26,580 26,580
Intergovernmental 353,567 - - - - 353,567
Other revenues 435,210 975,513 650,691 - 863,159 2,924,573
Total revenues 28,084,647 4,397,064 778,321 13,225,349 6,871,266 53,356,647
Expenditures
Current
Culture and recreation 3,006,786 - - - 1,454,543 4,461,329
Development services 1,100,439 - - - 131,838 1,232,277
General and administrative 8,639,173 - - 8,563,983 457,452 17,660,608
Highways and streets 943,171 - - - - 943,171
Public safety 16,162,010 - - - 1,768,516 17,930,526
Debt service
Principal - 2,345,000 - - 665,000 3,010,000
Interest and fiscal charges - 2,171,887 - - 266,007 2,437,894
Capital outlay and maintenance - - 1,448,387 - 4,395,254 5,843,641
Total expenditures 29,851,579 4,516,887 1,448,387 8,563,983 9,138,610 53,519,446
Excess (deficiency) of
revenues over expenditures (1,766,932) (119,823) (670,066) 4,661,366 (2,267,344) (162,799)
Other financing sources (uses)
Transfers in 1,557,576 193,432 54,216 - 10,508,533 12,313,757
Transfers out (2,060,121) - - (8,729,461) (2,761,315) (13,550,897)
Total other financing sources (uses), net (502,545) 193,432 54,216 (8,729,461) 7,747,218 (1,237,140)
Net change in fund balances (2,269,477) 73,609 (615,850) (4,068,095) 5,479,874 (1,399,939)
Fund balances, beginning of year 10,987,441 954,895 2,893,013 7,551,147 8,052,883 30,439,379
Fund balances, end of year 8,717,964$ 1,028,504$ 2,277,163$ 3,483,052$ 13,532,757$ 29,039,440$
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, 2008
The Notes to the Basic Financial Statements
are an integral part of these statements.
19
Net change in fund balances - total governmental funds (1,399,939)$
Governmental funds report capital outlays as expenditures.However,in
the statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense.This is the
amount of capital assets recorded in the current period.5,714,116
Governmental funds do not recognize assets contributed by developers.
However, in the statement of activities the fair market value of those assets
are recognized as revenue,then allocated over their estimated useful lives
and reported as depreciation expense.1,885,266
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.(3,446,923)
The issuance of long term debt (e.g.bonds)provides current financial
resources to governmental funds,while the repayment of the principal of
long-term debt cosumes the current financial resources of governmental
funds.Neither transaction,however,has any effect on net assets.Also,
governmental funds report the effect of issuance costs,premiums,
discounts,and similar items when debt is first issued,whereas the
amounts are deferred and amortized in the statement of activities.This
amount is the net effect of these differences in the treatment of long-term
debt and related items.2,929,613
Current year changes in the long-term liabilites for compensated absences
do not require the use of current financial resources;therefore,they are
not reported as expenditures in governmental funds.(150,261)
Current year changes in accrued interest payables do not require the use
of current financial resources;therefore,they are not reported as
expenditures in governmental funds.18,497
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 amount allocated to business-type activities.703,560
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.319,323
Change in net assets of governmental activities 6,573,252$
Amounts reported for governmental activities in the statement of activities are
different because:
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
SEPTEMBER 30, 2008
(1 of 2)
The Notes to the Basic Financial Statements
are an integral part of these statements.
20
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Sewer Utility Course Funds Funds Funds
Current assets
Deposits and investments 8,383,241$ 1,928,769$ 519,245$ 1,527,078$ 12,358,333$ 6,924,875$
Revenue bond emergency
short-term investments 500,000 - - - 500,000 -
Capital projects account
short-term investments 2,770,453 - - - 2,770,453 -
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$29,096 for water and sewer and
$917 for drainage utility 2,145,037 70,836 35,062 9,351 2,260,286 56,404
Accrued interest receivable 116,269 6,587 8,694 5,467 137,017 47,764
Prepaids and deposits 8,135 - 11,088 16,203 35,426 -
Inventory 102,184 - 95,352 50,601 248,137 -
Total current assets 14,025,319 2,006,192 669,441 1,608,700 18,309,652 7,029,043
Non-current assets
Bond issuance cost 194,247 148,644 144,674 34,308 521,873 -
Less accumulated amortization 110,398 141,259 54,107 15,947 321,711 -
Due from other funds - - - 211,000 211,000 -
Net non-current assets 83,849 7,385 90,567 229,361 411,162 -
Property, plant and equipment in service, at cost
Land 1,528,966 314,969 692,605 584,532 3,121,072 -
Building 235,472 - 3,402,783 488,275 4,126,530 -
Equipment 982,300 6,400 1,476,223 243,854 2,708,777 7,047,340
Improvements 1,033,401 - 7,967,841 7,605,204 16,606,446 -
Construction in progress 380,635 45,905 - - 426,540 -
Utility system 55,726,112 24,440,331 - - 80,166,443 -
Total property, plant and equipment in service 59,886,886 24,807,605 13,539,452 8,921,865 107,155,808 7,047,340
Less accumulated depreciation 25,963,461 7,933,819 4,603,766 2,642,138 41,143,184 4,032,096
Net property, plant and equipment
in service 33,923,425 16,873,786 8,935,686 6,279,727 66,012,624 3,015,244
Total non-current assets 34,007,274 16,881,171 9,026,253 6,509,088 66,423,786 3,015,244
TOTAL ASSETS 48,032,593$ 18,887,363$ 9,695,694$ 8,117,788$ 84,733,438$ 10,044,287$
ASSETS
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
SEPTEMBER 30, 2008
(2 of 2)
The Notes to the Basic Financial Statements
are an integral part of these statements.
21
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Sewer Utility Course Funds Funds Funds
Current liabilities
Payable from current assets
Accounts payable 1,304,449$ 53,812$ 150,972$ 83,334$ 1,592,567$ 11,913$
Accrued salaries and wages 223,841 10,794 63,551 20,621 318,807 9,531
Current portion of bonds payable - 200,000 340,000 125,000 665,000 -
Accrued insurance claims - - - - - 393,106
Deferred revenue - - 82,773 560 83,333 -
Due to other funds - - - - - -
Current obligations payable from
restricted assets
Current portion of bonds payable 245,000 - - - 245,000 -
Accrued interest 38,070 3,333 43,324 3,287 88,014 -
Total current liabilities 1,811,360 267,939 680,620 232,802 2,992,721 414,550
Non-current liabilities
Customer and escrow deposits 1,385,556 - - - 1,385,556 -
Bonds payable 4,002,017 210,000 7,772,970 962,386 12,947,373 -
Due to other funds - - - 211,000 211,000 -
Total non-current liabilities 5,387,573 210,000 7,772,970 1,173,386 14,543,929 -
Total liabilities 7,198,933 477,939 8,453,590 1,406,188 17,536,650 414,550
NET ASSETS
Invested in capital assets,
net of related debt 29,676,408 16,463,786 822,716 5,192,341 52,155,251 3,015,244
Unrestricted 11,157,252 1,945,638 419,388 1,519,259 15,041,537 6,614,493
Total net assets 40,833,660$ 18,409,424$ 1,242,104$ 6,711,600$ 67,196,788$ 9,629,737$
Reconciliation to government-wide statement of net assets:
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 1,859,100
Net assets of business-type activities 69,055,888$
LIABILITIES
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS –
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2008
The Notes to the Basic Financial Statements
are an integral part of these statements.
22
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Sewer Utility Course Funds Funds Funds
Operating revenues
W ater service 9,370,628$ - $ - $ - $ 9,370,628$ - $
Sewer service 5,301,281 - - - 5,301,281 -
Drainage fees - 661,725 - - 661,725 -
Recreation fees - - - 395,720 395,720 -
Insurance premiums - - - - - 4,481,993
Service fees and miscellaneous 1,177,300 - 3,904,008 1,423,739 6,505,047 766,142
Total operating revenues 15,849,209 661,725 3,904,008 1,819,459 22,234,401 5,248,135
Operating expenses
General and administrative 510,611 - - - 510,611 218,413
W ater production 6,083,364 - - - 6,083,364 -
W ater distribution 663,526 - - - 663,526 -
Utility engineering 743,831 - - - 743,831 -
Sewage collection and treatment 2,266,323 - - - 2,266,323 -
Nondepartmental 2,900,348 - - - 2,900,348 -
Geographic information 406,966 - - - 406,966 -
Service center 1,147,675 - - - 1,147,675 -
Drainage - 298,712 - - 298,712 -
Recreation classes - - - 370,951 370,951 -
Golf course - - 1,330,505 - 1,330,505 -
Pro shop - - 560,347 - 560,347 -
Food and beverage - - 1,164,536 - 1,164,536 -
Conference center - - 254,171 - 254,171 -
Cart operations - - 193,376 - 193,376 -
Athletic complex - - - 313,135 313,135 -
Softball complex - - - 1,041,406 1,041,406 -
Arbor Daze - - - 64,697 64,697 -
Insurance costs - - - - - 4,219,049
Depreciation 1,544,303 605,109 520,174 320,376 2,989,962 607,056
Amortization 14,757 7,385 49,084 9,262 80,488 -
Total operating expenses 16,281,704 911,206 4,072,193 2,119,827 23,384,930 5,044,518
Operating income (loss)(432,495) (249,481) (168,185) (300,368) (1,150,529) 203,617
Nonoperating revenues (expenses)
Impact fees 252,045 - - - 252,045 -
Gain on sale of capital assets - - - - - 71,143
Investment income 517,628 74,708 79,441 54,608 726,385 214,644
Other revenue 2,526 - 7,642 238 10,406 -
Interest on bonds (191,228) (21,565) (349,063) (35,304) (597,160) -
Total nonoperating revenues
(expenses), net 580,971 53,143 (261,980) 19,542 391,676 285,787
Income (loss) before contributions
and transfers 148,476 (196,338) (430,165) (280,826) (758,853) 489,404
Developer contributed assets 1,294,953 888,647 - - 2,183,600 -
Transfers in - 335,000 1,504,696 7,354 1,847,050 1,110,920
Transfers out (1,017,920) (34,636) (660,920) (7,354) (1,720,830) -
Net income (loss)425,509 992,673 413,611 (280,826) 1,550,967 1,600,324
Net assets, beginning of year 40,408,151 17,416,751 828,493 6,992,426 8,029,413
Net assets, end of year 40,833,660$ 18,409,424$ 1,242,104$ 6,711,600$ 9,629,737$
Reconciliation to government-wide statement of net assets
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 896,253
Change in net assets of business-type activities 2,447,220$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2008
The Notes to the Basic Financial Statements
are an integral part of these statements.
23
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Sewer Utility Course Funds Funds Funds
OPERATING ACTIVITIES
Cash received from customers 15,939,451$ 675,001$ 4,008,122$ 1,823,976$ 22,446,550$ 5,276,644$
Cash payments to suppliers
for goods and services (11,132,038) (243,588) (1,942,473) (1,274,644) (14,592,743) (3,942,187)
Cash payments to employees
for services (3,618,301) (139,020) (1,572,448) (491,710) (5,821,479) (101,538)
Cash payments from (to) other funds
for services 232,565 - (1,889,040) - (1,656,475) -
Net cash provided by (used in)
operating activities 1,421,677 292,393 (1,395,839) 57,622 375,853 1,232,919
NONCAPITAL FINANCING ACTIVITIES
Transfer in - 335,000 1,504,696 7,354 1,847,050 1,110,920
Transfer out (1,017,920) (34,636) (660,920) (7,354) (1,720,830) -
Net cash provided by (used in)
noncapital financing activities (1,017,920) 300,364 843,776 - 126,220 1,110,920
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees 252,045 - - - 252,045 -
Interest paid on bonds (193,464) (23,030) (349,888) (32,015) (598,397) -
Reduction in bonds payable (235,000) (190,000) (330,000) (125,000) (880,000) -
Purchase of capital assets (1,352,324) (81,880) (506,618) - (1,940,822) (1,175,753)
Proceeds from sale of capital assets - - - - - 71,143
Net cash provided by (used in) capital
and related financing activities (1,528,743) (294,910) (1,186,506) (157,015) (3,167,174) (1,104,610)
INVESTING ACTIVITIES
Proceeds from sale of investment securities 824,280 - - - 824,280 -
Interest received on investments 525,960 77,932 70,747 54,608 729,247 219,346
Net cash provided by investing
activities 1,350,240 77,932 70,747 54,608 1,553,527 219,346
Net change in cash and cash
equivalents 225,254 375,779 (1,667,822) (44,785) (1,111,574) 1,458,575
Cash and cash equivalents,
beginning of year 8,157,987 1,552,990 2,187,067 1,571,863 13,469,907 5,466,300
Cash and cash equivalents, end of year 8,383,241$ 1,928,769$ 519,245$ 1,527,078$ 12,358,333$ 6,924,875$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS – CONTINUED
YEAR ENDED SEPTEMBER 30, 2008
The Notes to the Basic Financial Statements
are an integral part of these statements.
24
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Sewer Utility Course Funds Funds Funds
Reconciliation of operating income (loss)
to net cash provided by (used in)
operating activities
Operating income (loss)(432,495)$ (249,481)$ (168,185)$ (300,368)$ (1,150,529)$ 203,617$
Adjustments to reconcile operating
income (loss) to net cash provided
by (used in) operating activities
Depreciation and amortization 1,559,060 612,494 569,258 329,638 3,070,450 607,056
Gain on disposal of equipment - - - - - 15,542
Changes in assets and liabilities
Accounts receivable and
unbilled revenue 47,170 15,451 86,298 3,958 152,877 12,859
Prepaids and deposits 133,620 - (305) (2,544) 130,771 468,645
Inventory (18,908) - (78) 22,921 3,935 -
Accounts payable (57,344) (84,547) 39,390 16,950 (85,551) (86,332)
Accrued salaries and
wages (93,395) (1,524) (52,042) (12,933) (159,894) (2,440)
Accrued insurance claims 232,565 - (1,889,040) - (1,656,475) 13,972
Customer and escrow
deposit 51,404 - - - 51,404 -
Deferred revenue - - 18,865 - 18,865 -
Net cash provided by (used in)
operating activities 1,421,677$ 292,393$ (1,395,839)$ 57,622$ 375,853$ 1,232,919$
Noncash financing activities
Developer contributed assets 1,294,953$ 888,647$ - $ - $ 2,183,600$
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS - FIDUCIARY FUNDS
SEPTEMBER 30, 2008
The Notes to the Basic Financial Statements
are an integral part of these statements.
25
Agency
Funds
Assets
Deposits and investments 2,548,844$
Total assets 2,548,844$
Liabilities
Due to other entities 2,548,844$
Total liabilities 2,548,844$
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
26
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 sewer
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 applicable to state and local governments.
Generally accepted accounting principles for local governments include those principles
prescribed by the Governmental Accounting Standards Board (GASB), the American
Institute of Certified Public Accountants in the publication entitled Audits of State and
Local Governmental Units and by the Financial Accounting Standards Board (when
applicable). As allowed in Section P80 of GASB’s Codification of Governmental
Accounting and Financial Reporting Standards, the City has elected not to apply
Financial Accounting Standards Board Statements and Interpretations, Accounting
Principles Board Opinions, and Accounting Research Bulletins of the Committee of
Accounting Procedure issued after November 30, 1989. The more significant accounting
policies of the City are described below.
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 Euless Development Corporation (“Corporation”) is
used to account for the accumulation of half-cent tax proceeds dedicated to build and
improve City parks and facilities, enhance library services, and stimulate economic
development activities within the City. The Euless Crime Control and Prevention District
(“District”) is used to account for the accumulation and use of quarter-cent sales tax
proceeds dedicated for crime reduction programs. The Corporation and the District are
reported as special revenue funds of the primary government. The Boards of Directors
of both component units are substantively the same as the City Council. There are
seven directors on each board, four of whom are council members which constitutes a
voting majority of the City Council. The remaining three board members are residents of
the City. Upon dissolution of the Corporation or the District, the entity’s assets will be
distributed to the City. Each component unit provides all of its services to the City. The
financial statements for the units were obtained from the respective Boards of Directors.
Financial information for both entities may be obtained from the City.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
27
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation
The government-wide financial statements (the statement of net assets and the
statement of activities) report information on all of the activities of the City, except for
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.
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 legal
compliance. 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
typically are 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.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
28
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
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 taxes levied by the City. The fund balance of
the Debt Service Fund is reserved to signify the amounts that are restricted
exclusively for debt service expenditures.
Streets Capital Improvements Capital Project Fund
The Streets Capital Improvements Fund is used to account for the construction of
improvements to various street projects.
Car Rental Tax Fund
The Car Rental Tax Fund is used to account for revenues received from
collection of short-term motor vehicle rental taxes and the expenditures thereof.
Revenues are used primarily for debt reduction, one-time capital projects, and to
maintain the property tax rate.
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 Assets. The City has presented the following major proprietary
funds:
Water and Sewer Fund
Water and Sewer Fund is used to account for the acquisition, operation and
maintenance of a municipal water and sewer utility, supported primarily by user
charges to the public.
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.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
29
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
Additionally, the City reports the Internal Service Funds which are used to account for
equipment replacement, risk management, and self funded health insurance coverage
and disability insurance provided to employees of the City.
Proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund’s principal ongoing
operations. Operating expenses for the proprietary funds include the cost of personnel
and contractual services, supplies and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and
expenses.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to
when revenues and expenditures 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 statements and fund financial statements for proprietary funds are
reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets and
liabilities (whether current or non-current) are included on the statement of net assets
and the operating statements present increases and decreases in total net assets.
Under the accrual basis of accounting, revenues are recognized when earned, including
unbilled water and sewer 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 as available if are collected
within 60 days after year end. Expenditures are recorded when the related fund liability
is incurred. However, debt service expenditures, as well as expenditures related to
compensated absences are recorded only when payment is due.
The revenues susceptible to accrual are property taxes, franchise fees, licenses, charges
for service, interest income, and intergovernmental revenues. Sales taxes collected and
held by the state at year end on behalf of the government are also recognized as
revenue. All other governmental fund revenues are recognized when received.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
30
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
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. Nonparticipating contracts are reported
at 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.
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 revenue. 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 $.4700 per $100 of assessed valuation ($.4895 per $100
last year) and assessed valuation is approximately 100% of estimated value.
Inventories
Inventories, which are recognized as expenditures/expenses as they are consumed, are
stated at cost (first-in, first-out method) for the General Fund and Enterprise Funds.
Inventories consist primarily of expendable supplies for the General Fund and pro shop
merchandise 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.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
31
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Interfund Receivables and Payables
Any residual balances outstanding between the governmental activities and business-
type activities are reported in the government-wide financial statements as “internal
balances.”
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/expenses initially made from it that are properly applicable to another fund,
are recorded as expenditures/expenses in the reimbursing fund and as a reduction of
expenditures/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 valued at historical cost or estimated historical cost if actual
historical cost is not available. Donated assets are valued at fair market value on the
date donated. Repairs and maintenance are recorded as expenses. Renewals and
betterments are capitalized. Interest has not been capitalized during the construction
period on property, plant, and equipment.
Assets capitalized have an original cost of $5,000 or more and over one year of useful
life. Depreciation has been calculated on each class of depreciable property using the
straight-line method. Estimated useful lives are as follows:
Buildings 33 1/3 years
W ater and Sewer 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
Employees may accumulate a maximum of two times their annual vacation. 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. All vacation pay is accrued
in the government-wide and proprietary fund financial statements and reported as
accrued salaries and wages (a current liability). Compensated absences are recorded in
governmental funds as they mature (i.e. as taken).
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
32
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Nature and Purpose of Reservations and Designations of Fund Equity
The City classifies fund balances as follows:
1. Reserves – used to denote that portion of fund equity which is not appropriable
for expenditures or is legally segregated for specific future use.
a. Reserved for debt service represents that portion of fund equity legally
restricted to retirement of General Obligation bond principal and interest.
b. Reserved for computer represents funds collected from a Court technology
fee that must be used to upgrade Court systems.
c. Reserved for development agreements represents funds received from
developers that must be used for certain capital projects.
d. Reserved for betterment represents funds donated by citizens that must be
used for the betterment of the community.
e. Reserved for injured animals represents donations from citizens that must be
used for the treatment of animals picked up by the animal shelter.
f. Reserved for historical preservation represents donations that must be used
towards the preservation of Euless historical sites.
g. Reserved for 9-1-1 emergency represents funding received from the county
that must be used to upgrade emergency systems.
h. Reserved for technology represents contributions which must be used to
upgrade the city communications systems.
i. Reserved for library remodel represents amounts reserved for future capital
expenditures relating to drainage maintenance at the library.
j. Reserve for victim assistance represents amounts reserved for future
expenditures relating to individuals who are victims of violent crimes.
k. Reserve for radio rebanding represents amounts received for future
expenditures related to rebanding all city radio.
2. Designations – used to denote that portion of fund equity which is council
established for future use.
a. Designated for emergency represents amounts restricted by council for use in
extreme emergencies. Expenditures must be council approved.
b. Designated for contingency represents amounts restricted by council for use
when extraordinary contingencies arise that have not been budgeted.
Expenditures must be council approved.
3. Unreserved, undesignated – used to denote that portion of fund equity which is
available for appropriation.
Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested
in capital assets, net of related debt, consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowing used for the
acquisition, construction, or improvements of those assets, plus unspent proceeds. Net
assets are reported as restricted when there are limitations imposed on their use, either
through the enabling legislation adopted by the City or through external restrictions
imposed by creditors, grantors, or laws or regulations of other governments.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
33
NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures
Deposits and investments
As of September 30, 2008, the City’s portfolio contained the following investments:
% of Rating
Book Value Fair Value Portfolio W AM Rating Agency
Overnight pools
TexPool 8,256,624$ 8,256,624$ 13.56%42 AAAm S&P
LOGIC 69 69 0.00%50 AAAm S&P
Total Overnight 8,256,693 8,256,693 13.56%
Money Market Fund
Financial Investors Trust 2,835,726 2,835,726 4.66%51 AAAm S&P
Total Money Market 2,835,726 2,835,726 4.66%
U.S. Issues
FFCB 5,024,677 5,023,139 8.25%27 AAA/Aaa Fitch/Moody's
FHLB 27,878,755 27,853,945 45.74%157 AAA/Aaa S&P/Moody's
FHLMC 5,425,334 5,431,244 8.92%16 AAA/Aaa S&P/Moody's
FNMA 11,472,045 11,493,681 18.87%64 AAA/Aaa S&P/Moody's
Total U.S. Issues 49,800,811 49,802,009 81.78%
Total Portfolio 60,893,230$ 60,894,428$ 100.00%264
Investment Type
Weighted average maturity (“W AM”) of the portfolio by investment type categories
reflected in the previous table is stated in days. For the investment pools, the Reset
WAM is presented. Investment type acronyms displayed in the previous table are
defined as follows: FFCB – Federal Farm Credit Bank, FHLB – Federal Home Loan
Bank, FHLMC – Federal Home Loan Mortgage Corporation, and FNMA – Federal
National Mortgage Association. The rating agency acronyms are defined as follows:
S&P – Standard and Poor’s Ratings Services, a division of the McGraw-Hill Companies,
Inc.; Moody’s – Moody’s Investor Service, Inc.; and, Fitch – Fitch Ratings. Additional
information about the rating agencies or the significance of the ratings provided may be
obtained from each agency’s web site.
Deposits
State statutes require that all deposits in financial institutions be fully collateralized by
U.S. Government obligations or its agencies and 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. The City’s deposits were fully insured or collateralized
as required by state statutes as of September 30, 2008. At year end, the carrying
amount of the City’s deposits was a credit balance of $360,511 primarily consisting of
outstanding checks, and the respective bank balances totaled $216,519. Of the total
bank balance, the Federal Depository Insurance Corporation (“FDIC”) covered
$100,000. The remainder was covered by collateral with a value of $4,077,162. The
collateral is held by The Federal Reserve Bank in the city’s name under a joint
safekeeping agreement with Frost National Bank.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
34
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
GASB 40 Disclosures – Continued
Investments
State statutes, city bond ordinances, and city resolutions authorize the City’s
investments. The City is authorized to invest in U.S. Government obligations and its
agencies and instrumentalities, fully insured or collateralized certificates of deposits, 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.
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, 2008, the City did not own any types of
securities other than those permitted by statute.
The City’s investment pools are 2a7-like pools. A 2a7-like pool is one which is not
registered with the Securities and Exchange Commission (“SEC”) as an investment
company, but nevertheless has a policy that it will, and does, operate in a manner
consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. This type
of pool uses amortized investment costs rather than market values to compute
participant share values. Furthermore, the pools in which the City is currently
participating seek to maintain a stable $1 net asset value per share or unit. Accordingly,
the fair value of the City’s position in these pools is substantially the same as the market
value of the shares in each of the pools.
TexPool falls under the purview of the Texas Comptroller of Public Accounts
(“Comptroller”) who is responsible for oversight of TexPool operations. Each of the other
pools has established a governing board at least partially comprised of pool participants.
Duties of the governing boards include oversight responsibility. The Comptroller and the
governing boards 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 portfolios 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.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
35
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
GASB 40 Disclosures – Continued
Interest Rate Risk
In compliance with the City’s Investment Policy, as of September 30, 2008, the City
minimized the interest rate risk, relating to the decline in market value of securities due
to rising interest rates in the portfolio by limiting the weighted average maturity to 365
days and the stated maturity date of security types not to exceed 2 years, with the
exception of securities purchased related to reserve funds; structuring the investment
portfolio so that securities matured 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 Public Funds Investment Act; and investing operating
funds primarily in money market mutual funds, government investment pools, and
shorter-term securities with a weighted average maturity between 180 and 270 days.
The following details the maturity schedule for the City’s investments as of
September 30, 2008.
% of
Maturity Schedule Book Value Fair Value Portfolio
Overnight 11,092,419$ 11,092,419$ 18.22%
1 day to 3 months 6,348,548 6,374,796 10.47%
3 to 6 months 6,869,758 6,874,161 11.29%
6 to 9 months 10,310,342 10,270,732 16.87%
9 to 12 months 5,500,401 5,475,599 8.99%
12 to15 months 4,905,068 4,927,382 8.09%
15 to 18 months 5,508,938 5,512,626 9.05%
18 to 24 months 10,357,757 10,366,712 17.02%
TOTAL 60,893,231$ 60,894,427$ 100.00%
Credit Risk
In compliance with the City’s Investment Policy, as of September 30, 2008, the City
minimized credit risk losses due to default of a security issuer or backer, by: limiting
investments to the safest types of securities; investing in U.S. Agencies Bonds rated
AAA and Aaa by Standard & Poor’s and Moody’s respectively; 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 individual securities
are minimized.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
36
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
GASB 40 Disclosures – Continued
Credit Risk – Continued
Custodial Credit Risk – The 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 Federal Deposit Insurance Corporation (“FDIC”)
coverage, utilizes the delivery vs. payment method for investment purchases, and
contracts with a third-party 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 the following percentages, as applicable, to the largest
balances the City maintains in the Bank.
Other
Type of Collateral Securities
Eligible collateral other than mortgage-backed securities 102%
Mortgage-backed securities 110%
The percentages as shown reflect the requirement based on market value of the
pledged securities. The City actively monitors and manages collateral levels for all
deposits. On September 30, 2008, the City’s bank balances were insured or fully
collateralized.
The City’s depository bank also acts as its safekeeping agent per the terms of the
depository contract. City policy dictates that all securities rendered for payment will be
sent delivery vs. payment, meaning that the funds required for purchase of a security will
not be released until the safekeeping agent has received the security purchased in the
City’s name. No broker holds City funds. The City does not purchase securities from its
depository bank or any subsidiary banks of the same bank holding company.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
37
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2008, was as follows:
Balance Balance
September 30,September 30,
2007 Increase Decrease Adj/Transfer 2008
Governmental activities
Capital assets not being depreciated
Land 24,068,687$ 1,796,779$ -$ -$ 25,865,466$
Construction in progress 2,282,082 3,704,472 - (331,159) 5,655,395$
Total assets not being depreciated 26,350,769 5,501,251 - (331,159) 31,520,861
Capital assets being depreciated
Buildings 40,948,557 19,123 (5,400) - 40,962,280
Improvements other than buildings 4,600,682 146,679 - 169,372 4,916,733
Infrastructure 56,460,858 1,912,962 - 156,212 58,530,032
Machinery and equipment 5,233,379 670,619 (235,686) 5,575 5,673,887
Total capital assets being depreciated 107,243,476 2,749,383 (241,086) 331,159 110,082,932
Less accumulated depreciation
Buildings (9,302,707) (1,206,589) - - (10,509,296)
Improvements other than buildings (2,033,690) (180,355) - - (2,214,045)
Infrastructure (20,464,230) (1,708,152) - - (22,172,382)
Machinery and equipment (3,907,219) (351,825) 227,967 - (4,031,077)
Total accumulated depreciation (35,707,846) (3,446,921) 227,967 - (38,926,800)
Total capital assets being
depreciated, net 71,535,630 (697,538) (13,119) - 71,156,132
Total governmental fund capital
assets, net 97,886,399 4,803,713 (13,119) - 102,676,993
Internal service funds
Capital assets being depreciated
Machinery and equipment 6,426,455 1,175,754 (554,869) - 7,047,340
Total internal service assets
being depreciated 6,426,455 1,175,754 (554,869) - 7,047,340
Less accumulated depreciation
Machinery and equipment (3,964,368) (607,055) 539,327 - (4,032,096)
Total internal service funds
capital assets, net 2,462,087 568,699 (15,542) - 3,015,244
Total governmental activities
capital assets, net 100,348,486$ 5,372,412$ (28,661)$ -$ 105,692,237$
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
38
NOTE 3. CAPITAL ASSETS – CONTINUED
Balance Balance
September 30,September 30,
2007 Increase Decrease Adj/Transfer 2008
Business-type activities
Capital assets not being depreciated
Land 2,776,602$ 344,470$ -$ -$ 3,121,072$
Construction in progress 1,697,771 351,181 - (1,622,412) 426,540
Total assets not being depreciated 4,474,373 695,651 - (1,622,412) 3,547,612
Capital assets being depreciated
Buildings 4,077,523 49,007 - - 4,126,530
Equipment 2,468,309 399,426 (158,958) - 2,708,777
Improvements 39,910,205 - - (23,303,759) 16,606,446
Utility system 52,253,990 2,986,282 - 24,926,171 80,166,443
Total capital assets being
depreciated 98,710,027 3,434,715 (158,958) 1,622,412 103,608,196
Less accumulated depreciation
Buildings (1,246,191) (123,655) - - (1,369,846)
Equipment (1,773,040) (244,937) 154,491 - (1,863,486)
Improvements (10,931,694) (625,864) - 6,749,850 (4,807,708)
Utility system (24,356,780) (1,995,514) - (6,749,850) (33,102,144)
Total accumulated depreciation (38,307,705) (2,989,970) 154,491 - (41,143,184)
Total capital asssets being
depreciated, net 60,402,322 444,745 (4,467) 1,622,412 62,465,012
Total business-type activities
capital assets, net 64,876,695$ 1,140,396$ (4,467)$ -$ 66,012,624$
Depreciation expense was charged as direct expense to programs of the primary government as follows:
Governmental activities
General administrative 155,125$
Public safety 679,774
Development services 337,809
Culture and recreation 468,102
Highways and streets 1,806,111
Total depreciation expense - Governmental activities 3,446,921$
Business-type activities
Water and sewer 1,544,303
Drainage utility 605,109
Golf course 520,174
Other 320,376
Total depreciation expense - Business-type activities 2,989,962$
Outstanding commitments at September 30, 2008, under authorized construction contracts were approximately
$1,920,010. These outstanding commitments are to be financed by available deposit and investment balances,
which include proceeds from previous bond issuances.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
39
NOTE 4. LONG-TERM DEBT
At September 30, 2008, bonds payable consisted of the following individual issues:
Governmental Business-type
$1,000,000 Series 1999,Sales Tax Revenue Bonds,
dated October 15,1999,partially refunded in 2006,
due in annual installments through 2009,bearing
interest rates of 5.25% to 7.00%.45,000$ -$
$10,290,000 Taxable Series 2000,Revenue
Certificates of Obligation,dated April 1,2000,due in
annual installments through 2025,bearing interest
rates of 8.00% to 8.125%.8,840,000 -
$6,000,000 Series 2001,General Obligation Bonds,
dated April 1,2001,partially refunded in 2006,due in
annual installments through 2015,bearing interest
rates of 4.50% to 6.50%.2,120,000 -
$1,630,000 Series 2001,Drainage Utility System
Revenue Refunding Bonds,dated October 15,2001,
due in annual installments through 2010,bearing
interest rates of 3.00% to 4.00%.- 410,000
$5,455,000 Series 2001,Revenue Certificates of
Obligation,dated April 1,2001,partially refunded in
2006,due in annual installments through 2015,
bearing interest rates of 4.50% to 6.50%.1,930,000 -
$6,430,000 Series 2002,Sales Tax Revenue
Refunding Bonds,dated June 14,2002,due in
annual installments through 2015,bearing interest
rates of 3.00% to 4.40%.4,375,000 -
$5,490,000 Series 2003,General Obligation
Refunding Bonds,dated January 15,2003,due in
annual installments through 2016,bearing interest
rates of 3.00% to 4.00%.2,880,000 -
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
40
NOTE 4. LONG-TERM DEBT – CONTINUED
Governmental Business-type
$11,095,000 Series 2004,General Obligation
Refunding Bonds,dated February 24,2004,due in
annual installments through 2027,bearing interest
rates of 2.00% to 4.50%.- 10,105,000
$3,200,000 Series 2004A,General Obligation Bonds,
dated June 15,2004,due in annual installments
through 2024,bearing interest rates of 3.50%to
5.00%.2,770,000 -
$4,720,000 Series 2004,Revenue Certificates of
Obligation,dated June 15,2004,due in annual
installments through 2024,bearing interest rates of
3.50% to 5.25%.3,805,000 -
$2,145,000 Series 2004,W aterworks and Sewer
System Revenue Bonds, dated June 15, 2004, due in
annual installments through 2024,bearing interest
rates of 3.50% to 5.25%.- 1,850,000
$13,900,000 Series 2005,General Obligation
Refunding Bonds,dated March 8,2005,due in
annual installments through 2020,bearing interest
rates of 2.40% to 5.00%.13,165,000 -
$5,080,000 Series 2006,General Obligation
Refunding Bonds,dated January 30,2006,due in
annual installments through 2021,bearing interest at
3.93%.5,050,000 -
$1,630,000 Series 2006,Sales Tax Revenue
Refunding Bonds,dated January 30,2006,due in
annual installments through 2019,bearing interest at
3.88%.1,455,000 -
$2,530,000 Series 2006,W ater and Sewer
Refunding Bonds,dated January 30,2006,due in
annual installments through 2020,bearing interest at
3.88%.- 2,500,000
46,435,000$ 14,865,000$
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
41
NOTE 4. LONG-TERM DEBT – CONTINUED
The following is a summary of long-term debt transactions of the City for the year ended
September 30, 2008:
Balance Balance Due
Beginning End within
of Year Increases Decreases of Year One Year
Governmental activities
General obligation bonds 27,350,000$ -$ (1,365,000)$ 25,985,000$ 1,635,000$
Certificates of obligation 15,555,000 - (980,000) 14,575,000 665,000
Sales tax revenue bonds 6,540,000 - (665,000) 5,875,000 690,000
Deferred loss on refunding bonds (1,121,968) - 89,712 (1,032,256) (89,712)
Premium / discount on bonds 465,027 - (36,433) 428,594 36,433
Compensated absences 1,345,559 1,741,088 (1,590,827) 1,495,820 149,582
Total governmental activities 50,133,618$ 1,741,088$ (4,547,548)$ 47,327,158$ 3,086,303$
Business-type activities
Water and sewer revenue bonds 4,585,000$ -$ (235,000)$ 4,350,000 245,000$
Drainage utility revenue bonds 600,000 - (190,000) 410,000 200,000
General obligation refunding bonds 10,560,000 - (455,000) 10,105,000 465,000
Deferred loss on refunding bonds (902,707) - 51,628 (851,079) (51,628)
Total business-type activities 14,842,293 - (828,372) 14,013,921 858,372
Total primary government 64,975,911$ 1,741,088$ (5,375,920)$ 61,341,079$ 3,944,675$
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
42
NOTE 4. LONG-TERM DEBT – CONTINUED
Defeased Debt Outstanding
In prior years, the City defeased certain general obligation bonds, certificates of
obligation, and revenue bonds by placing the proceeds of refunding debt issues in
irrevocable trusts to provide for all future debt service payments on the defeased bonds.
Accordingly, neither the trust assets nor the liability for the defeased debt are included in
the City’s financial statements. At September 30, 2008, the outstanding defeased debt
of the City is detailed in the following table:
Type of Obligation Outstanding
General obligation bonds 2,520,000$
Certificates of obligation 2,290,000
Sales tax revenue bonds 645,000
5,455,000$
Annual Requirements to Retire Debt Obligations
The annual aggregate maturities for each bond type for the years subsequent to
September 30, 2008, are as follows:
General Obligation Bonds:
Principal Interest Principal Interest Total
2009 1,635,000$ 1,084,447$ 465,000$ 376,876$ 3,561,323$
2010 1,695,000 1,027,125 480,000 365,644 3,567,769
2011 1,755,000 964,129 485,000 352,975 3,557,104
2012 1,835,000 896,372 510,000 338,657 3,580,029
2013 1,910,000 822,457 525,000 322,476 3,579,933
2014-2018 11,245,000 2,638,013 2,580,000 1,328,698 17,791,711
2019-2023 5,670,000 445,165 2,565,000 843,051 9,523,216
2024-2028 240,000 6,000 2,495,000 231,188 2,972,188
25,985,000$ 7,883,708$ 10,105,000$ 4,159,565$ 48,133,273$
Governmental Activities Business-Type Activities
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
43
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Certificates of Obligation:
Principal Interest Principal Interest Total
2009 665,000$ 985,036$ -$ -$ 1,650,036$
2010 700,000 946,724 - - 1,646,724
2011 750,000 905,850 - - 1,655,850
2012 785,000 862,224 - - 1,647,224
2013 840,000 815,638 - - 1,655,638
2014-2018 3,990,000 3,284,808 - - 7,274,808
2019-2023 4,770,000 1,836,308 - - 6,606,308
2024-2028 2,075,000 223,281 - - 2,298,281
14,575,000$ 9,859,869$ -$ -$ 24,434,869$
Governmental Activities Business-Type Activities
Revenue Bonds:
Principal Interest Principal Interest Total
2009 690,000$ 239,987$ 445,000$ 198,735$ 1,573,722$
2010 715,000 211,938 465,000 181,952 1,573,890
2011 755,000 183,512 270,000 163,556 1,372,068
2012 780,000 153,498 275,000 152,972 1,361,470
2013 810,000 122,490 285,000 142,194 1,359,684
2014-2018 2,055,000 170,483 1,650,000 525,067 4,400,550
2019-2023 70,000 2,716 1,210,000 178,264 1,460,980
2024-2028 - - 160,000 8,000 168,000
5,875,000$ 1,084,624$ 4,760,000$ 1,550,740$ 13,270,364$
Governmental Activities Business-Type Activities
Water and sewer revenue bonds authorized and unissued as of September 30, 2008,
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.
Water and sewer revenue bonds and refunding bonds and drainage utility revenue
bonds are payable solely from and equally secured by a first lien on and pledge of the
net revenue of the City's combined waterworks and sanitary sewer system and the net
revenues of the City's drainage utility system, respectively.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
44
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
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.
Revenue bond reserve – a reserve established with a portion of the bond proceeds
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, 2008.
Investments of funds included in the bond reserve and emergency accounts are
restricted to obligations of the United States or its agencies and instrumentalities (except
for mortgage pass-through securities).
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
45
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a 50 year contract dated September 25, 1973, with the Trinity River
Authority of Texas ("TRA") whereby TRA agrees to provide supplemental water service and
sewage treatment to the City. 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 this contract approximated $7,000,000 and are included as operating expenses of the
water and sewer fund.
The City is involved in a number of lawsuits arising in the ordinary course of business. In
the opinion of the City's legal counsel and management, any liability resulting from such
litigation would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The water and sewer enterprise fund historically bears the major portion of the operating
costs of the City's service center, which provides services to all City departments.
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the
operations of those funds.
Due to/from other funds
Receivable Fund Payable Fund Amount
Softball complex fund Athletic complex fund 211,000$
211,000$
Due to/from accounts that are primarily used as interfund loans for the following:
• Athletic complex fund to softball complex fund for reimbursement of a portion of
debt payments.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
46
NOTE 7. INTERFUND TRANSFERS – CONTINUED
Due to/from other funds – Continued
The balances at September 30, 2008 will be paid during the next fiscal year end.
Non-major Subtotal
General Debt service Streets CIP governmental governmental
Transfers out
General -$ -$ -$ 1,819,183$ 1,819,183$
Car rental tax 730,020 193,432 - 6,639,350 7,562,802
Water and sewer 792,920 - - - 792,920
Drainage utility 34,636 - - - 34,636
Golf course - - - - -
Non-major governmental - - 54,216 2,050,000 2,104,216
Non-major enterprise - - - - -
Total transfers in $1,557,576 193,432$ 54,216$ 10,508,533$ 12,313,757$
Major Enterprise
Internal Drainage Golf Non-major Subtotal Total
service utility course enterprise proprietary transfers out
Transfers out
General 225,000$ -$ 15,938$ -$ 240,938$ 2,060,121$
Car rental tax - 335,000 1,281,659 - 1,616,659 9,179,461
Water and sewer 225,000 - - - 225,000 1,017,920
Drainage utility - - - - - 34,636
Golf course 660,920 - - - 660,920 660,920
Non-major governmental - - 207,099 - 207,099 2,311,315
Non-major enterprise - - - 7,354 7,354 7,354
Total transfers in 1,110,920$ 335,000$ 1,504,696$ 7,354$ 2,957,970$ 15,271,727$
Transfers in
Major Governmental
Transfers in
Interfund transfers
Transfers are primarily used to move funds from:
• The car rental tax fund, the water and sewer fund, and the drainage utility fund to the
general fund for general and administrative charges.
• The car rental tax fund to the debt service fund for principal and interest on 2001
bonds.
• The non-major governmental funds for the transfer of escrow funds for a street
project to the streets CIP fund.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
47
NOTE 7. INTERFUND TRANSFERS – CONTINUED
Interfund transfers – Continued
• The general fund to the non-major governmental funds for grant matching revenues
and capital projects.
• The car rental tax fund and the half-cent sales tax (non-major special revenue) fund
to non-major governmental funds for capital projects.
• The general and water and sewer funds for property claims and liability coverage.
• The golf course fund to the internal service funds for equipment replacement.
• The car rental tax fund to the drainage utility fund for funding of the hurricane creek
capital project.
• The general fund to the golf course fund for rebate of sales tax contributions.
• The car rental tax fund to the golf course for contributed capital relating to slope
improvements.
• The hotel/motel non-major governmental fund to the golf course for conference
centre debt and monthly expenses at the conference centre.
• The athletic complex fund to the softball complex fund for a portion of debt service.
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.
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
$100,000 and aggregate claims in excess of $3,760,723. During fiscal 2008, the City and
the City's employees contributed approximately $3,182,300 and $1,027,619 respectively, for
medical coverage. The City's contributions are accounted for as interfund services provided
and used. Claims liabilities are based on estimates of the ultimate cost of claims (including
future claim adjustment expenses) that have been reported but not settled, and of claims
that have been incurred but not reported, and are accounted for in the Insurance Internal
Service Fund.
In addition, during fiscal 2006, the City contracted with the Texas Municipal League
Intergovernmental Risk Pool to provide worker's compensation insurance and effectively
discontinued being self-insured for workers’ compensation claims. This policy has no
deductibles, includes all claims handling and has a fixed premium.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
48
NOTE 8. RISK MANAGEMENT – CONTINUED
In fiscal years prior to 2006, the City was self-insured for workers' compensation claims.
Contributions were made to a separate risk management fund by other funds and were
available to pay claims, claim reserves, and administrative costs of the program. The City
remains liable under its self-insurance program for any claims occurring prior to
October 1, 2005.
Changes in the balances of health and dental claims liabilities are as follows:
2008 2007
Unpaid claims, beginning of year 245,473$ 241,829$
Incurred claims 3,205,138 2,956,704
Paid claims (3,190,613) (2,953,060)
Unpaid claims, end of year 259,998$ 245,473$
Settlement amounts have not exceeded insurance coverage for the year ended
September 30, 2008 or any of the three preceding years ended September 30.
NOTE 9. EMPLOYEE RETIREMENT SYSTEM
Plan Description
The City provides pension benefits for all of its full-time employees through a
nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas
Municipal Retirement System (“TMRS”), one of 827 administered by TMRS, an agent
multiple-employer public employee retirement system. TMRS issues a publicly-available
annual financial report that may be obtained by writing to TMRS, P.O. Box 149153,
Austin, Texas 78714-9153.
Benefits depend upon the sum of the employees’ contributions to the plan, with interest,
and the City-financed monetary credits, with interest. At the date the plan began, the
City granted monetary credits for service rendered before the plan began of a theoretical
amount equal to two times what would have been contributed by the employee, with
interest, prior to establishment of the plan. Monetary credits for service since the plan
began are a percent (100%, 150% and 200%) of the employee’s accumulated
contributions. In addition, the City can grant, as often as annually, another type of
monetary credit referred to as an updated service credit. An updated service credit is a
theoretical amount which, when added to the employee’s accumulated contributions and
the monetary credits for service since the plan began, would be the total monetary
credits and employee contributions accumulated with interest if the current employee
contribution rate and City matching percent had always been in existence and if the
employee’s salary had always been the average of his/her salary in the last three years
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
49
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Plan Description – Continued
that are one year before the effective date. At retirement, the benefit is calculated as if
the sum of the employee’s accumulated contributions with interest and the
employer-financed monetary credits with interest were used to purchase an annuity.
Members can retire at ages 60 and above with 5 or more years of service or with 20
years of service regardless of age. The plan also provides death and disability benefits.
A member is vested after 5 years. The plan provisions are adopted by the City Council,
within the options available in the state statutes governing TMRS and within the actuarial
constraints also in the statutes.
Contribution
The contribution rate for employees is 7%, and the City’s matching ratio is currently 2 to
1. The City is required to contribute at an actuarially-determined rate. The projected
unit credit actuarial cost method is used for determining the City contribution rate. The
rate consists of the normal cost contribution rate and the prior service contribution rate,
both of which are calculated to be a level percent of payroll from year to year. The
normal cost contribution rate finances the currently accruing monetary credits due to the
City matching percent, which are the obligation of the City as of an employee’s
retirement date, not at the time the employee’s contributions are made. The normal cost
contribution rate is the actuarially determined percent of payroll necessary to satisfy the
obligation of the City to each employee at the time his/her retirement becomes effective.
The prior service contribution rate amortizes the unfunded actuarial liability over the
remainder of the plan’s 30-year amortization period. Contributions are made monthly by
both employees and the City.
The actuarial valuation is performed annually to determine the City’s minimum required
contribution percentage. Since the City needs to know its contribution rate in advance for
budgetary purposes, there is a one year delay between the actuarial valuation that is the
basis for the rate and the calendar year when the rate goes into effect (i.e.
December 31, 2006 valuation is effective for rates beginning January 2008). Effective
for the valuation dated December 31, 2007, the TMRS Board of Trustees elected to
change the actuarial cost (funding) method and assumptions.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
50
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Contribution – Continued
Significant assumptions used in preparation of that valuation as well as the previous
valuation are as follows:
Valuation date December 31, 2006 December 31, 2007
Actuarial cost method Unit Credit Projected Unit Credit
Amortization method Level Percent of Payroll Level Percent of Payroll
Remaining amortization period 25 years - open period 30 years - closed period
Asset valuation method Amortized Cost Amortized Cost
Actuarial assumption
Investment rate of return 7%7%
Project salary increases None Varies by age/service
Inflation 3.5%3%
Cost of living adjustments None 2.1%
Euless payroll growth assumptions 5%7%
The TMRS Board of Trustees, in an effort to assist cities with increases greater than .5%
in the required contribution rates occurring as a result of the changes in funding method
and assumptions, voted to (1) extend the period for amortizing the unfunded actuarial
accrued liability (“UAAL”) to a 30 year closed period, and (2) allow the contribution rate
increase to be phased in over an 8-year period (2009-2016) in determining the required
contribution rate. Both options are automatic, but not mandatory. At a city’s request,
TMRS will recalculate the contribution rate for a city that chooses a 25-year, closed
amortization period. Cities may also choose to pay contributions in excess of the phase-
in rate.
For cities with repeating features in their plans, these changes in the valuation
methodology would likely result initially in higher required contributions and lower funded
ratios. However, the funded ratio should show steady improvement over time. Euless
has adopted the updated service credit and annuity increase provisions on an annually
repeating basis. The schedule of funding progress, presented as Required
Supplementary Information immediately following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
The changes in actuarial funding method and assumptions adopted for the 2007
valuation resulted in an unfunded actuarial accrued liability (“UAAL”) of $26,955,334
which represents an increase over the prior valuation of over $12 million. The funded
ratio of the city’s plan dropped from 80.6% to 70.5% as a result of the increased UAAL.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
51
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Contribution – Continued
If the changes in actuarial funding method and assumptions had not been adopted for
the 2007 valuation, the city’s UAAL would have been $16,497,502 which represents an
increase over the prior calculation of approximately $1.6 million and the funded ratio
would have dropped from 80.6% to 79.7%.
Annual pension cost and percentage of pension cost contributed are as follows:
Annual Net Pension
Pension Percentage Obligaiton at
Year Cost Contributed Year End
2005 2,481,448$ 100 -
2006 2,627,343 100 -
2007 2,830,957 100 -
NOTE 10. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2008, the following individual funds had an excess of expenditures
over appropriations:
Police drug enforcement fund (4,885)$
Public safety grant funds (27,305)
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN
TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2008
52
Unfunded
Valuation Actuarial Actuarial Actuarial Annual UAAL
Dated Value of Accrued Accrued Liability Fund Covered as % of
31-Dec Assets Liability ("UAAL")Ratio Payroll Payroll
1998 35,352,987$ 42,919,216$ 7,566,229$ 82.37%12,486,300$ 60.60%
1999 37,889,214 46,007,148 8,117,934 82.36%13,061,776 62.15%
2000 42,116,506 50,370,674 8,254,168 83.61%14,189,470 58.17%
2001 45,049,200 53,684,325 8,635,125 83.91%15,092,260 57.22%
2002 47,212,730 57,449,068 10,236,338 82.18%16,788,857 60.97%
2003 50,659,933 63,214,918 12,554,985 80.14%17,207,460 72.96%
2004 54,239,808 67,007,298 12,767,490 80.95%17,435,628 73.23%
2005 57,323,394 70,878,494 13,555,100 80.88%18,324,792 73.97%
2006 61,871,370 76,751,170 14,879,800 80.61%19,224,466 77.40%
2007 64,572,668 91,528,002 26,955,334 70.55%20,652,795 130.52%
The Schedule of Funding Progress summarizes the actuarial value of the plan's assets and
actuarial accrued liability as of December 31, 2007 and each of the nine preceding calendar
years. The data presented in the schedule were obtained annually from TMRS and were based
upon the annual actuarial valuation for the years represented. The city is financially responsible
for its own portion of the plan. Therefore, the numbers shown above reflect only the condition
of the city's plan.
The schedule is presented to provide a consistent basis for measuring the plan's annual
progress toward funding its actuarial accrued liability in accordance with its actuarial funding
method. The primary measure of funding progress is the plan's funded ratio (i.e. actuarial value
of assets expressed as a percentage of the actuarial accrued liability). An increase in the
funded ratio indicates improvement in the plan's ability to pay all projected benefits as they
come due. The plan is fully funded if the funded ratio is greater than or equal to 100%. During
the year ended December 31, 2007, the plan's funded ratio dropped from 80.61% to 70.55%.
The Schedule of Funding Progress also discloses the relationship between the plan's covered
payroll (i.e. all elements included in compensation paid to active members on which
contributions are based) and the unfunded actuarial accrued liability ("UAAL"). This
relationship, expressed as a ratio, is a measure of the significance of the UAAL relative to the
capacity to pay all contributions required to fund the liability. During the year ended
December 31, 2007, the plan's ratio of the UAAL to its covered payroll increased from 77.4% to
130.52%.
For the actuarial valuation dated December 31, 2007, the TMRS Board of Trustees adopted
changes in the actuarial funding method and assumptions; as such, those changes are reflected
in the above numbers. For a complete description of these changes, see Note 9 Employee
Retirement System in the accompanying notes to the financial statements.
Calendar Years
2008 2007 2006 2005 2004
City's annual contribution stated
as a % of covered payroll 14.51%14.25%14.07%13.96%13.14%
Note Source: TMRS Comprehensive Annual Report for the Year Ending December 31, 2007 and City records.
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2008
53
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax
Current and delinquent taxes 8,801,954$ 8,801,954$ 8,752,431$ (49,523)$
Penalty and interest 85,000 85,000 77,988 (7,012)
Total property tax 8,886,954 8,886,954 8,830,419 (56,535)
Gross receipts tax
Telephone line access fee 405,000 405,000 423,715 18,715
Electric company 1,600,000 1,600,000 1,631,620 31,620
Gas company 300,000 300,000 372,531 72,531
Cable TV 295,000 295,000 433,265 138,265
City garbage service 137,000 137,000 150,261 13,261
W ater and sewer system 816,991 816,991 792,920 (24,071)
Others 93,750 93,750 96,842 3,092
Total gross receipts tax 3,647,741 3,647,741 3,901,154 253,413
General sales tax 9,618,753 9,618,753 9,026,534 (592,219)
Fines and fees
Municipal court fines 2,831,500 2,831,500 2,831,675 175
Jail income 175,000 175,000 452,031 277,031
Dog licenses and pound fees 16,000 16,000 10,050 (5,950)
Ambulance fees 725,000 725,000 828,223 103,223
Library fees 35,000 35,000 36,342 1,342
Zoning fees 12,000 12,000 11,928 (72)
Deferred adjudication fee 175,000 175,000 127,055 (47,945)
Total fines and fees 3,969,500 3,969,500 4,297,304 327,804
Licenses and permits
Building permits 500,000 500,000 455,024 (44,976)
Miscellaneous permits 204,500 204,500 208,339 3,839
Minimum housing 91,000 91,000 89,058 (1,942)
Total licenses and permits 795,500 795,500 752,421 (43,079)
Investment income 450,000 450,000 488,038 38,038
Intergovernmental 338,911 338,911 353,567 14,656
Other revenues
Rental income 214,585 214,585 260,340 45,755
Swimming pools 15,000 15,000 16,481 1,481
Miscellaneous income 109,000 109,000 158,389 49,389
Total other revenues 338,585 338,585 435,210 96,625
Total revenues 28,045,944 28,045,944 28,084,647 38,703
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2008
CONTINUED
54
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Expenditures
Current
Culture and recreation 3,097,227 3,097,227 3,006,786 90,441
Development services 1,189,379 1,189,379 1,100,439 88,940
General and administrative 9,285,362 9,285,362 8,639,173 646,189
Highways and streets 961,629 961,629 943,171 18,458
Public safety 16,704,117 16,704,117 16,162,010 542,107
Total expenditures 31,237,714 31,237,714 29,851,579 1,386,135
Excess (deficiency) of
revenues over expenditures (3,191,770) (3,191,770) (1,766,932) 1,424,838
Other financing sources (uses)
Transfers in 1,581,011 1,581,011 1,557,576 (23,435)
Transfers out (2,033,272) (2,033,272) (2,060,121)(26,849)
Total other financing
sources (uses), net (452,261) (452,261) (502,545) (50,284)
Net change in fund balance (3,644,031) (3,644,031) (2,269,477) 1,374,554
Fund balance,
beginning of year 10,987,441 10,987,441 10,987,441 -
Fund balance, end of year 7,343,410$ 7,343,410$ 8,717,964$ 1,374,554$
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE – CAR RENTAL TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2008
55
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Car rental tax 13,000,000$ 13,000,000$ 12,832,458$ (167,542)$
Investment income 300,000 300,000 392,891 92,891
Total revenues 13,300,000 13,300,000 13,225,349 (74,651)
Expenditures
General and administrative 8,666,666 8,666,666 8,563,983 102,683
Total expenditures 8,666,666 8,666,666 8,563,983 102,683
Excess (deficiency) of
revenues over expenditures 4,633,334 4,633,334 4,661,366 28,032
Other financing sources (uses)
Transfers in 374,817 374,817 - (374,817)
Transfers out (8,729,460) (8,729,460) (8,729,461) (1)
Total other
financing sources (uses), net (8,354,643) (8,354,643) (8,729,461) (374,818)
Net change in fund balance (3,721,309) (3,721,309) (4,068,095) (346,786)
Fund balance, beginning of year 7,551,147 7,551,147 7,551,147 -
Fund balance, end of year 3,829,838$ 3,829,838$ 3,483,052$ (346,786)$
Budgeted Amounts
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2008
56
NOTE 1. BUDGET BASIS OF ACCOUNTING
The City Councils 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 21, 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 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 project and not on an annual basis. Accordingly, formal budgetary
integration of the capital projects funds is not employed and comparison of actual
results of operations to budgetary data for such funds is not presented.
8. Appropriated budgets for the proprietary funds are also adopted but have not been
presented since reporting on such budgets is not legally required.
The Budgetary Comparison Schedules — general fund and car rental tax special
revenue fund present a comparison of budgetary data to actual results. The general
fund and car rental tax special revenue fund utilize the same basis of accounting for both
budgetary purposes and actual results.
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
57
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.
Police Drug Enforcement Fund – to account for proceeds from sale of assets seized in
connection with drug arrests. Revenues are used solely for police department
expenditures.
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
expenditures of the half-penny sales tax can only be spent on parks, library, debt
service, and economic development activities within the City of Euless.
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.
Public Safety Grant Fund – to account for grant revenues received by the police and fire
departments which must be spent in accordance with the grant provisions.
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.
58
NON-MAJOR GOVERNMENTAL FUNDS – Continued
REDEVELOPMENT FUNDS
Park Improvements Certificates of Obligation Fund (1990) – to account for the
construction of park facilities. Financing was provided from the sale of Certificates of
Obligation of $2,000,000 in 1990.
Street Assessments Fund – to account for receipt of funds for special assessment
collection and subsequent construction of improvements to various street and drainage
projects.
Half-Penny Sales Tax Capital Projects Fund – to account for bond proceeds to be
expended for construction projects funded by the Euless Development Corporation, a
component unit of the City of Euless.
Developers' Contribution Fund – to account for funds received for the purpose of making
new and future improvements to various development areas within the City.
Car Rental Capital Projects Fund – to account for building and infrastructure projects
that are funded from the short-term motor vehicle tax.
Police Facility Construction Fund – to account for the construction of a police facility.
General Obligation Capital Projects Fund – to account for various construction projects
within the City.
Redevelopment Fund – to account for any land acquisition and revitalization projects
designed to enhance development and promote redevelopment throughout the
community.
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
59
Police Crime
Drug Half Control and Public
Hotel/Enforce-Penny Prevention Safety Juvenile Special
Motel ment Sales Tax District Grant Case Revenue
Fund Fund Fund Fund Fund Fund Total
ASSETS
Deposits and investments 195,673$ 335,817$ 1,634,560$ 215,276$ 58,616$ 795$ 2,440,737$
Accounts receivable 58,544 - - - 16,523 1,860 76,927
Accrued interest receivable - - 2,469 - - - 2,469
Prepaids 412 - 5,493 6,651 - - 12,556
Due from other governments - - 618,367 283,399 - - 901,766
Total assets 254,629$ 335,817$ 2,260,889$ 505,326$ 75,139$ 2,655$ 3,434,455$
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable 4$ 675$ 183,288$ 10,870$ -$ 1,860$ 196,697$
Accrued salaries and wages - - 14,536 23,206 958 795 39,495
Due to other funds - - - - - - -
Total liabilities 4 675 197,824 34,076 958 2,655 236,192
Fund Balances:
Reserved for:
Debt service - - 938,998 - - - 938,998
Historical preservation 1,245 - - - - - 1,245
Development agreements - - - - - - -
Unreserved, undesignated 253,380 335,142 1,124,067 471,250 74,181 - 2,258,020
Total fund balances 254,625 335,142 2,063,065 471,250 74,181 - 3,198,263
Total liabilities and fund balances 254,629$ 335,817$ 2,260,889$ 505,326$ 75,139$ 2,655$ 3,434,455$
Special Revenue Funds
60
Park
Improvements Half-Penny Car Rental Police G.O.Total
Certificates Street Sales Tax Developers'Capital Facility Capital Re-Capital Non-major
of Obligation Assessments Capital Contribution Projects Construction Projects development Projects Governmental
Fund (1990)Fund Projects Fund Fund Fund Fund Fund Totals Funds
125$ 44,970$ 5,006,444$ 1,652,688$ 1,927,131$ 107,844$ 1,231,921$ 515,321$ 10,486,444$ 12,927,181$
- - - - - - - - - 76,927
- - 31,764 18,350 19,032 - 6,253 8,500 83,899 86,368
- - 1,498 - - - - - 1,498 14,054
- - - - - - - - - 901,766
125$ 44,970$ 5,039,706$ 1,671,038$ 1,946,163$ 107,844$ 1,238,174$ 523,821$ 10,571,841$ 14,006,296$
-$ -$ 17,000$ -$ 215,824$ -$ 4,523$ -$ 237,347$ 434,044$
- - - - - - - - - 39,495
- - - - - - - - - -
- - 17,000 - 215,824 - 4,523 - 237,347 473,539
- - - - - - - - - 938,998
- - - - - - - - - 1,245
- - - 1,671,038 - - - - 1,671,038 1,671,038
125 44,970 5,022,706 - 1,730,339 107,844 1,233,651 523,821 8,663,456 10,921,476
125 44,970 5,022,706 1,671,038 1,730,339 107,844 1,233,651 523,821 10,334,494 13,532,757
125$ 44,970$ 5,039,706$ 1,671,038$ 1,946,163$ 107,844$ 1,238,174$ 523,821$ 10,571,841$ 14,006,296$
Capital Projects Funds
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - NON-MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
61
Police Crime
Drug Half Control and Public
Hotel/Enforce-Penny Prevention Safety Juvenile Special
Motel ment Sales Tax District Grant Case Revenue
Fund Fund Fund Fund Fund Fund Totals
Revenues
Gross receipts tax 234,780$ - $ - $ - $ - $ - $ 234,780$
General sales tax - - 3,610,613 1,682,791 - - 5,293,404
Investment income 3,922 10,138 84,675 14,226 - - 112,961
DEA revenues - 26,580 - - - - 26,580
Other revenues 32 - - - 80,919 45,602 126,553
Total revenues 238,734 36,718 3,695,288 1,697,017 80,919 45,602 5,794,278
Expenditures
Culture and recreation - - 1,454,543 - - - 1,454,543
Development services - - 131,838 - - - 131,838
General and administrative 6,937 - 418,506 - - 32,009 457,452
Public safety - 13,635 - 1,632,059 119,656 - 1,765,350
Debt service
Principal - - 665,000 - - - 665,000
Interest and fiscal charges - - 266,007 - - - 266,007
Capital outlay
and maintenance - - - 357,186 - - 357,186
Total expenditures 6,937 13,635 2,935,894 1,989,245 119,656 32,009 5,097,376
Excess (deficiency) of
revenues over expenditures 231,797 23,083 759,394 (292,228) (38,737) 13,593 696,902
Other financing sources (uses)
Transfers in - - - - 38,649 - 38,649
Transfers out (207,099) - (2,050,000) - - - (2,257,099)
Total other
financing sources (uses)(207,099) - (2,050,000) - 38,649 - (2,218,450)
Net change in fund balances 24,698 23,083 (1,290,606) (292,228) (88) 13,593 (1,521,548)
Fund balance,
beginning of year 229,927 312,059 3,353,671 763,478 74,269 (13,593) 4,719,811
Fund balance, end of year 254,625$ 335,142$ 2,063,065$ 471,250$ 74,181$ - $ 3,198,263$
Special Revenue Funds
62
Park
Improvements Half-Penny Car Rental Police G.O.Total
Certificates of Street Sales Tax Developers'Capital Facility Capital Re-Capital Non-major
Obligation Assessments Capital Contribution Projects Construction Projects development Project Governmental
Fund (1990)Fund Projects Fund Fund Fund Fund Fund Totals Funds
- $ - $ - $ - $ - $ - $ - $ - $ - $ 234,780$
- - - - - - - - - 5,293,404
- - 75,190 65,003 137,159 928 40,578 21,524 340,382 453,343
- - - - - - - - - 26,580
- - - 61,593 - - 665,013 10,000 736,606 863,159
- - 75,190 126,596 137,159 928 705,591 31,524 1,076,988 6,871,266
- - - - - - - - - 1,454,543
- - - - - - - - - 131,838
- - - - - - - - - 457,452
- - - - - 3,166 - - 3,166 1,768,516
- - - - - - - - - 665,000
- - - - - - - - - 266,007
- - 901,271 - 2,113,200 10,510 575,384 437,703 4,038,068 4,395,254
- - 901,271 - 2,113,200 13,676 575,384 437,703 4,041,234 9,138,610
- - (826,081) 126,596 (1,976,041) (12,748) 130,207 (406,179) (2,964,246) (2,267,344)
- - 5,500,000 - 3,189,350 - 850,534 930,000 10,469,884 10,508,533
- - - (54,216) (450,000) - - - (504,216) (2,761,315)
- - 5,500,000 (54,216) 2,739,350 - 850,534 930,000 9,965,668 7,747,218
- - 4,673,919 72,380 763,309 (12,748) 980,741 523,821 7,001,422 5,479,874
125 44,970 348,787 1,598,658 967,030 120,592 252,910 - 3,333,072 8,052,883
125$ 44,970$ 5,022,706$ 1,671,038$ 1,730,339$ 107,844$ 1,233,651$ 523,821$ 10,334,494$ 13,532,757$
Capital Projects Funds
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, 2008
63
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax 215,000$ 215,000$ 234,780$ 19,780$
Other revenues - - 32 32
Investment income 6,250 6,250 3,922 (2,328)
Total revenues 221,250 221,250 238,734 17,484
Expenditures
General and administrative 10,000 10,000 6,937 3,063
Total expenditures 10,000 10,000 6,937 3,063
Other financing uses
Transfers out (207,099) (207,099) (207,099) -
Total other financing uses (207,099) (207,099) (207,099) -
Net change in fund balance 4,151 4,151 24,698 20,547
Fund balance, beginning of year 229,927 229,927 229,927 -
Fund balance, end of year 234,078$ 234,078$ 254,625$ 20,547$
Budgeted Amounts
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, 2008
64
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
DEA revenues - $ - $ 26,580$ 26,580$
Investment income 13,750 13,750 10,138 (3,612)
Total revenues 13,750 13,750 36,718 22,968
Expenditures
Public safety 8,750 8,750 13,635 (4,885)
Total expenditures 8,750 8,750 13,635 (4,885)
Other financing sources (uses)
Transfers out - - - -
Total other
financing sources (uses)- - - -
Net change in fund balance 5,000 5,000 23,083 18,083
Fund balance, beginning of year 312,059 312,059 312,059 -
Fund balance, end of year 317,059$ 317,059$ 335,142$ 18,083$
Budgeted Amounts
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, 2008
65
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 3,920,403$ 3,920,403$ 3,610,613$ (309,790)$
Investment income 107,500 107,500 84,675 (22,825)
Total revenues 4,027,903 4,027,903 3,695,288 (332,615)
Expenditures
General and administrative 614,487 614,487 418,506 195,981
Culture and recreation 1,494,040 1,494,040 1,454,543 39,497
Development services 339,108 339,108 131,838 207,270
Debt service:
Principal 665,000 665,000 665,000 -
Interest and fiscal charges 267,716 267,716 266,007 1,709
Total expenditures 3,380,351 3,380,351 2,935,894 444,457
Other financing sources (uses)
Transfers out (2,050,000) (2,050,000) (2,050,000) -
Total other
financing sources (uses)(2,050,000) (2,050,000) (2,050,000) -
Net change in fund balance (1,402,448) (1,402,448) (1,290,606) 111,842
Fund balance, beginning of year 3,353,671 3,353,671 3,353,671 -
Fund balance, end of year 1,951,223$ 1,951,223$ 2,063,065$ 111,842$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
CRIME CONTROL AND PREVENTION DISTRICT SPECI AL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2008
66
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 1,808,325$ 1,808,325$ 1,682,791$ (125,534)$
Investment income 22,500 22,500 14,226 (8,274)
Total revenues 1,830,825 1,830,825 1,697,017 (133,808)
Expenditures
Public safety 1,805,789 1,805,789 1,632,059 173,730
Capital outlay and maintenance 403,734 403,734 357,186 46,548
Total expenditures 2,209,523 2,209,523 1,989,245 220,278
Net change in fund balance (378,698) (378,698) (292,228) 86,470
Fund balance, beginning of year 763,478 763,478 763,478 -
Fund balance, end of year 384,780$ 384,780$ 471,250$ 86,470$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
PUBLIC SAFETY GRANT FUND – SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2008
67
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues 79,613$ 79,613$ 80,919$ 1,306$
Total revenues 79,613 79,613 80,919 1,306
Expenditures
Public safety 92,351 92,351 119,656 (27,305)
Total expenditures 92,351 92,351 119,656 (27,305)
Other financing sources 12,738 12,738 38,649 25,911
Transfers in
Total other financing sources 12,738 12,738 38,649 25,911
Net change in fund balance - - (88) (88)
Fund balance, beginning of year 74,269 74,269 74,269 -
Fund balance, end of year 74,269$ 74,269$ 74,181$ (88)$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
JUVENILE CASE FUND – SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2008
68
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues 52,000$ 52,000$ 45,602 (6,398)$
Total revenues 52,000 52,000 45,602 (6,398)
Expenditures
General and administrative 51,277 51,277 32,009 19,268
Total expenditures 51,277 51,277 32,009 19,268
Other financing sources
Transfers in - - - -
Total other
financing sources (uses)- - - -
Net change in fund balance 723 723 13,593 12,870
Fund balance, beginning of year (13,593) (13,593) (13,593) -
Fund balance, end of year (12,870)$ (12,870)$ - $ 12,870$
Budgeted Amounts
69
NON-MAJOR PROPRIETARY FUNDS
Enterprise funds are used to account for operations financed and operated in a manner similar
to private business enterprises where the intent of the government's council is to recover the
costs of providing goods or services to the general public on a continuing basis primarily
through user charges; or where the government's council has decided that periodic
determination of net income is appropriate for accountability purposes.
Recreation Classes – to account for the operation of recreational programs and
activities which are offered to groups and individuals on a fee basis.
Softball Complex Fund – to account for the operation and maintenance of the
softball complex, supported primarily by user charges.
Athletic Complex Fund – to account for the operation and maintenance of the
Parks at Texas Star athletic complex, supported primarily by user charges.
Arbor Daze Fund – to account for the receipts and disbursements of the annual
Arbor Daze Festival, supported primarily by user charges.
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2008
(1 of 2)
70
Recreation Softball Athletic Arbor
Classes Complex Complex Daze Totals
ASSETS
Current assets
Deposits and investments 322,522$ 121,841$ 1,046,644$ 36,071$ 1,527,078$
Accounts receivable and
unbilled revenue 2,865 4,736 1,750 - 9,351
Accrued interest receivable - - 5,467 - 5,467
Prepaids and deposits 20 15,943 240 - 16,203
Inventory - 50,601 - - 50,601
Total current assets 325,407 193,121 1,054,101 36,071 1,608,700
Non-current assets
Bond issuance cost - 20,049 14,259 - 34,308
Less accumulated amortization - 8,563 7,384 - 15,947
Due from other funds - 211,000 - - 211,000
Net bond issuance cost - 222,486 6,875 - 229,361
Property, plant and equipment, at cost
Land - 584,532 - - 584,532
Building - 328,180 160,095 - 488,275
Equipment 89,658 102,312 51,884 - 243,854
Improvements - 608,896 6,996,308 - 7,605,204
Construction in progress - - - - -
Total property plant and equipment 89,658 1,623,920 7,208,287 - 8,921,865
Less accumulated depreciation 52,870 613,146 1,976,122 - 2,642,138
Net property plant, and equipment 36,788 1,010,774 5,232,165 - 6,279,727
Total non-current assets 36,788 1,233,260 5,239,040 - 6,509,088
TOTAL ASSETS 362,195$ 1,426,381$ 6,293,141$ 36,071$ 8,117,788$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2008
(2 of 2)
71
Recreation Softball Athletic Arbor
Classes Complex Complex Daze Totals
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable 3,517$ 59,144$ 20,673$ - $ 83,334$
Accrued salaries and wages 504 18,048 2,069 - 20,621
Current portion of bonds payable - 125,000 - - 125,000
Deferred revenue - 560 - - 560
Accrued interest - 3,287 - - 3,287
Total current liabilities 4,021 206,039 22,742 - 232,802
Non-current liabilities
Bonds payable - 962,386 - - 962,386
Due to other funds - - 211,000 - 211,000
Total non-current liabilities - 962,386 211,000 - 1,173,386
Total liabilities 4,021 1,168,425 233,742 - 1,406,188
NET ASSETS
Invested in capital assets,
net of debt 36,788 (76,612) 5,232,165 - 5,192,341
Unrestricted 321,386 334,568 827,234 36,071 1,519,259
TOTAL NET ASSETS 358,174$ 257,956$ 6,059,399$ 36,071$ 6,711,600$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2008
72
Recreation Softball Athletic Arbor
Classes Complex Complex Daze Totals
Operating revenues
Recreation fees 395,720$ - $ - $ - $ 395,720$
Service fees and miscellaneous - 1,047,693 360,261 15,785 1,423,739
Total operating revenues 395,720 1,047,693 360,261 15,785 1,819,459
Operating expenses
Recreation classes 370,951 - - - 370,951
Athletic complex - - 313,135 - 313,135
Softball complex - 1,041,406 - - 1,041,406
Arbor Daze - - - 64,697 64,697
Depreciation 13,133 65,298 241,945 - 320,376
Amortization - 9,262 - - 9,262
Total operating expenses 384,084 1,115,966 555,080 64,697 2,119,827
Operating income(loss)11,636 (68,273) (194,819) (48,912) (300,368)
Nonoperating revenues (expenses)
Investment income 8,593 4,006 39,838 2,171 54,608
Other revenue - - 238 - 238
Interest on bonds - (35,304) - - (35,304)
Total nonoperating revenues
(expenses), net 8,593 (31,298) 40,076 2,171 19,542
Income (loss) before transfers 20,229 (99,571) (154,743) (46,741) (280,826)
Transfers in - 7,354 - - 7,354
Transfers out - - (7,354) - (7,354)
Change in net assets 20,229 (92,217) (162,097) (46,741) (280,826)
Net assets, beginning of year 337,945 350,173 6,221,496 82,812 6,992,426
Net assets, end of year 358,174$ 257,956$ 6,059,399$ 36,071$ 6,711,600$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2008
73
Recreation Softball Athletic Arbor
Classes Complex Complex Daze Totals
OPERATING ACTIVITIES
Cash received from customers 395,017$ 1,051,773$ 361,401$ 15,785$ 1,823,976$
Cash payments to suppliers for goods and services (280,127) (714,787) (215,033) (64,697) (1,274,644)
Cash payments to employees for services (93,933) (310,823) (86,954) - (491,710)
Net cash provided by (used in) operating activities 20,957 26,163 59,414 (48,912) 57,622
NONCAPITAL FINANCING ACTIVITIES
Transfer in - 7,354 - - 7,354
Transfer out - - (7,354) - (7,354)
Net cash provided by (used in)
noncapital financing activities - 7,354 (7,354) - -
CAPITAL AND RELATED FINANCING ACTIVITIES
Interest paid on bonds - (32,015) - - (32,015)
Reduction in bonds payable - (125,000) - - (125,000)
Net proceeds from refunding bond issuance - - - - -
Proceeds from gas lease - - - - -
Loss on refunding bond issuance - - - - -
Bond issuance costs - - - - -
Purchase of utility plant and equipment in service - - - - -
Net cash used in capital
and related financing activities - (157,015) - - (157,015)
INVESTING ACTIVITIES
Interest received on investments 8,593 4,006 39,838 2,171 54,608
Net cash provided by investing activities 8,593 4,006 39,838 2,171 54,608
Net increase (decrease) in cash and
and cash equivalents 29,550 (119,492) 91,898 (46,741) (44,785)
Cash and cash equivalents, beginning of year 292,972 241,333 954,746 82,812 1,571,863
Cash and cash equivalents, end of year 322,522$ 121,841$ 1,046,644$ 36,071$ 1,527,078$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss)11,636$ (68,273)$ (194,819)$ (48,912)$ (300,368)$
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation and amortization 13,133 74,560 241,945 - 329,638
Changes in assets and liabilities:
Accounts receivable and unbilled revenue (703) 3,520 1,141 - 3,958
Prepaids and deposits 209 (2,553) (200) - (2,544)
Inventory - 22,921 - - 22,921
Accounts payable (3,048) 7,398 12,600 - 16,950
Accrued salaries and wages (270) (11,410) (1,253) - (12,933)
Net cash provided by (used in) operating activities 20,957$ 26,163$ 59,414$ (48,912)$ 57,622$
74
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 government and to other government units 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 Fund - to account for the revenue and
expenses applicable to providing worker’s compensation coverage for all city
employees, as well as, general liability and property coverage.
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2008
75
Risk
Equipment Manage-
Replacement Insurance ment
Fund Fund Fund Total
Deposits and investments 2,000,159$ 3,701,776$ 1,222,940$ 6,924,875$
Accounts receivable - 56,224 180 56,404
Accrued interest receivable 13,143 33,029 1,592 47,764
Total current assets 2,013,302 3,791,029 1,224,712 7,029,043
Property, plant and equipment, at cost
Equipment 6,981,360 54,956 11,024 7,047,340
Less accumulated depreciation 3,966,116 54,956 11,024 4,032,096
Net property, plant and equipment 3,015,244 - - 3,015,244
Total assets 5,028,546 3,791,029 1,224,712 10,044,287
Accounts payable - 696 11,217 11,913
Accrued salary and wages - 7,243 2,288 9,531
Accrued insurance claims - 259,998 133,108 393,106
Total current liabilities - 267,937 146,613 414,550
Invested in capital assets,
net of related debt 3,015,244 - - 3,015,244
Unrestricted 2,013,302 3,523,092 1,078,099 6,614,493
Total net assets 5,028,546$ 3,523,092$ 1,078,099$ 9,629,737$
ASSETS
LIABILITIES
NET ASSETS
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2008
76
Risk
Equipment Manage-
Replacement Insurance ment
Fund Fund Fund Total
Operating revenues
Insurance premiums - $ 4,209,919$ 272,074 4,481,993$
Service fees and miscellaneous 753,753 12,389 - 766,142
Total operating revenues 753,753 4,222,308 272,074 5,248,135
Operating expenses
General and administrative 80,253 82,670 55,490 218,413
Insurance costs - 3,569,942 649,107 4,219,049
Depreciation 607,056 - - 607,056
Total operating expenses 687,309 3,652,612 704,597 5,044,518
Operating income (loss)66,444 569,696 (432,523) 203,617
Non-operating revenues
Investment income 43,076 138,982 32,586 214,644
Gain on sale of capital assets 71,143 - - 71,143
Total nonoperating revenues 114,219 138,982 32,586 285,787
Income (loss) before
transfers 180,663 708,678 (399,937) 489,404
Transfers in 660,920 - 450,000 1,110,920
Change in net assets 841,583 708,678 50,063 1,600,324
Net assets, beginning of year 4,186,963 2,814,414 1,028,036 8,029,413
Net assets, end of year 5,028,546$ 3,523,092$ 1,078,099$ 9,629,737$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CAH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2008
77
Risk
Equipment Manage-
Replacement Insurance ment
Fund Fund Fund Total
OPERATING ACTIVITIES
Cash received from customers 769,403$ 4,235,167$ 272,074$ 5,276,644$
Cash payments to suppliers for goods and services 307,146 (3,584,314) (665,019) (3,942,187)
Cash payments to employees for services - (54,626) (46,912) (101,538)
Net cash provided by (used in) operating activities 1,076,549 596,227 (439,857) 1,232,919
NONCAPITAL FINANCING ACTIVITIES
Transfers in 660,920 - 450,000 1,110,920
Net cash provided by noncapital financing activities 660,920 - 450,000 1,110,920
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of equipment (1,175,753) - - (1,175,753)
Sale of equipment 71,143 - - 71,143
Net cash used in capital and related financing activities (1,104,610) - - (1,104,610)
INVESTING ACTIVITIES
Interest received on investments 50,010 135,372 33,964 219,346
Net cash provided by investing activities 50,010 135,372 33,964 219,346
Net increase in cash and cash equivalents 682,869 731,599 44,107 1,458,575
Cash and cash equivalents, beginning of year 1,317,290 2,970,177 1,178,833 5,466,300
Cash and cash equivalents, end of year 2,000,159$ 3,701,776$ 1,222,940$ 6,924,875$
Reconciliation of operating loss to net cash
provided by (used in) operating activities
Operating income (loss)66,444$ 569,696$ (432,523)$ 203,617$
Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities
Depreciation expense 607,056 - - 607,056
Loss on disposal of equipment 15,542 - - 15,542
Change in assets and liabilities
Receivables - 12,859 - 12,859
Prepaids 468,645 - - 468,645
Accounts payable (81,138) 689 (5,883) (86,332)
Accrued salaries and wages - (1,542) (898) (2,440)
Accrued insurance claims - 14,525 (553) 13,972
Net cash provided by (used in) operating activities 1,076,549$ 596,227$ (439,857)$ 1,232,919$
78
FIDUCIARY FUNDS
Agency funds are used to account for assets held by the government as an agent for
individuals, private organizations, other governments, and/or other funds.
Stars Center Escrow – to account for investments held on-behalf of the Dallas
Stars until the bond issuance is retired.
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUNDS
SEPTEMBER 30, 2008
79
Balance Balance
September 30,September 30,
2007 Additions Deletions 2008
Assets
Deposits and investments 2,339,529$ 209,315$ - $ 2,548,844$
Total assets 2,339,529$ 209,315$ - $ 2,548,844$
Liabilities
Due to other entities 2,339,529$ 209,315$ - $ 2,548,844$
Total liabilities 2,339,529$ 209,315$ - $ 2,548,844$
STATISTICAL SECTION
(Unaudited)
80
STATISTICAL SECTION
(Unaudited)
The statistical section of the City of Euless’ comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the city’s
overall financial health.
Contents Tables
Financial Trends 1-4
The financial trend schedules contain trend information to help the reader
understand how the city’s financial performance and well-being have changed
over time.
Revenue Capacity 5-8
The revenue capacity schedules contain information to help the reader assess
the city’s most significant local revenue source, the property tax.
Debt Capacity 9-13
The debt capacity schedules present information to help the reader assess the
affordability of the city’s current level of outstanding debt (including that of its
blended component units) and the city’s ability to issue additional debt in the
future.
Demographic and Economic Information 14-15
The demographic and economic schedules offer demographic and economic
indicators to help the reader understand the environment within which the
city’s financial activities occur.
Operating Information 16-18
The operating information schedules contain service and infrastructure data to
help the reader understand how the information in the city’s financial report
relates to the services it provides and the activities it performs.
CITY OF EULESS, TEXAS NET ASSETS BY COMPONENT – LAST SIX FISCAL YEARS (Accrual Basis of Accounting – Unaudited) Table 1 200320042005200620072008Governmental activitiesInvested in capital assets, net of related debt 42,192,665$ 46,733,074$ 49,659,438$ 49,883,218$ 58,251,542$ 73,176,978$ Restricted713,385 1,304,226 1,455,709 1,448,741 1,725,998 1,813,871 Unrestricted14,945,063 14,657,018 17,512,832 25,497,497 27,104,410 18,664,353 Total governmental activities net assets57,851,113$ 62,694,318$ 68,627,979$ 76,829,456$ 87,081,950$ 93,655,202$ Business-type activitiesInvested in capital assets, net of related debt42,401,512$ 43,283,643$ 47,988,447$ 48,278,044$ 50,186,697$ 52,155,251$ Restricted632,189 - - - - - Unrestricted14,009,239 16,906,068 15,830,507 19,099,883 16,421,971 16,900,637 Total business-type activities net assets57,042,940$ 60,189,711$ 63,818,954$ 67,377,927$ 66,608,668$ 69,055,888$ Primary governmentInvested in capital assets, net of related debt84,594,177$ 90,016,717$ 97,647,885$ 98,161,262$ 108,438,239$ 125,332,229$ Restricted1,345,574 1,304,226 1,455,709 1,448,741 1,725,998 1,813,871 Unrestricted28,954,302 31,563,086 33,343,339 44,597,380 43,526,381 35,564,990 Total primary government net assets114,894,053$ 122,884,029$ 132,446,933$ 144,207,383$ 153,690,618$ 162,711,090$ Note: Source: Comprehensive Annual Financial ReportsFiscal YearCity of Euless first applied GASB Statement 34 in fiscal year ended 9/30/2003; government-wide financial information for years prior is not available.81
CITY OF EULESS, TEXAS CHANGES IN NET ASSETS – LAST SIX FISCAL YEARS (Accrual basis of accounting – Unaudited) Table 2 200320042005200620072008ExpensesGovernmental activitiesCulture and recreation4,753,724$ 4,411,726$ 4,573,219$ 4,892,346$ 5,002,569$ 4,862,749$ Development services1,190,240 1,217,794 1,113,875 1,169,285 1,487,102 1,420,477 General and administrative11,879,362 12,337,712 13,370,907 15,122,831 16,495,449 17,733,714 Highway and streets2,117,959 2,398,447 1,734,487 2,211,083 2,206,697 2,534,856 Public Safety14,830,469 15,315,777 15,514,301 16,252,071 17,047,334 18,708,849 Interest on long-term debt3,147,819 2,765,102 2,572,094 2,741,754 2,664,658 3,151,039 Total governmental activities expenses37,919,573 38,446,558 38,878,883 42,389,370 44,903,809 48,411,684 Business-type activitiesWater and sewer12,046,092 12,550,708 13,227,562 15,285,026 15,418,299 16,462,599 Drainage utility812,785 793,358 875,995 884,763 1,059,272 932,771 Golf3,616,671 3,667,537 3,792,552 4,003,035 4,250,866 4,421,256 2,593,455 2,299,391 2,630,760 1,842,550 2,109,291 2,155,131 Total business-type activities expenses19,069,003 19,310,994 20,526,869 22,015,374 22,837,728 23,971,757 Total primary government expenses56,988,576 57,757,552 59,405,752 64,404,744 67,741,537 72,383,441 Program RevenuesGovernmental activitiesFees, Fines, and Charges for ServicesCulture and recreation56,749 52,651 91,925 92,837 83,084 65,349 Development services628,585 817,293 896,894 841,033 833,822 688,348 General and administrative1,403,636 1,401,057 1,241,408 1,706,000 1,252,030 1,391,437 Highway & Streets- - - 6,300 (8,026) 722,334 Public Safety3,541,356 3,328,327 3,734,364 4,505,202 4,423,564 5,439,171 Operating grants and contributions515,039 517,307 1,302,332 592,231 411,857 486,862 Capital grants and contributions- - - 8,706 2,199,106 1,885,266 Total governmental activities program revenues6,145,365 6,116,635 7,266,923 7,752,309 9,195,437 10,678,767 Business-type activitiesCharges for servicesWater and sewer12,768,482 13,235,590 14,213,072 16,065,814 13,730,467 15,849,209 Drainage utility626,199 643,229 659,949 658,231 701,476 661,725 Golf3,078,739 3,052,947 3,347,922 3,777,018 3,825,486 3,904,008 Other recreation enterprises2,603,260 2,012,214 2,453,905 1,518,386 1,636,883 1,819,459 Operating grants and contributions- - 3,308,393 - - - Capital grants and contributions2,849,795 - - 312,835 1,012,919 - Total business-type activities program revenues21,926,475 18,943,980 23,983,241 22,332,284 20,907,231 22,234,401 Total primary government program revenues28,071,840 25,060,615 31,250,164 30,084,593 30,102,668 32,913,168 Fiscal Year82
CITY OF EULESS, TEXAS CHANGES IN NET ASSETS – LAST SIX FISCAL YEARS (Accrual basis of accounting – Unaudited) - Continued Table 2 200320042005200620072008ExpensesNet (Expense) RevenueGovernmental Activities(31,774,208) (32,329,923) (31,611,960) (34,637,061) (35,708,372) (37,732,917) Business-type Activities2,857,472 (367,014) 3,456,372 316,910 (1,930,497) - Total Primary government net expense(28,916,736) (32,696,937) (28,155,588) (34,320,151) (37,638,869) (37,732,917) General Revenues and Other Changes in Net AssetsGovernmental Activities:Taxes:Ad valorem (Property Tax)9,941,779 10,233,079 10,777,414 11,188,598 12,343,359 12,231,294 Sales8,865,055 9,229,819 9,648,979 12,303,965 13,990,652 14,319,938 Other Taxes13,074,910 13,666,041 14,431,288 16,999,325 16,903,694 16,968,392 Investment earnings580,245 463,239 870,841 1,611,815 2,031,580 1,727,542 Contributions from property owners1,814,257 3,191,097 1,229,401 - - - Gain/(loss) on sale/retirement of capital assets41,807 30,811 (21,023) 24,866 74,163 71,143 Miscellaneous102,193 18,208 - - - - Transfers(1,535,227) 340,834 608,721 709,969 617,418 (1,012,140) Total Governmental Activities32,885,019 37,173,128 37,545,621 42,838,538 45,960,866 44,306,169 Business-type ActivitiesInterest on investments320,233 266,240 407,468 771,888 1,023,865 726,385 Contributions from property owners572,065 3,588,379 374,124 271,707 253,786 252,045 Gain/(loss) on sale/retirement of capital assets- - - - 277,004 - Miscellaneous- - - 2,908,437 224,001 10,406 Transfers1,535,227 (340,834) (608,721) (709,969) (617,418) 1,012,140 Total Business-type Activities2,427,525 3,513,785 172,871 3,242,063 1,161,238 2,000,976 Total Primary Government35,312,544 40,686,913 37,718,492 46,080,601 47,122,104 46,307,145 Change in Net AssetsGovernmental Activities1,110,811 4,843,205 5,933,661 8,201,477 10,252,494 6,573,252 Business-type Activities5,284,997 3,146,771 3,629,243 3,558,973 (769,259) 2,000,976 Total Primary Government6,395,808$ 7,989,976$ 9,562,904$ 11,760,450$ 9,483,235$ 8,574,228$ Fiscal Year83
CITY OF EULESS, TEXAS FUND BALANCES, GOVERNMENTAL FUNDS – LAST TEN FISCAL YEARS (Unaudited) Table 3 1999200020012002200320042005200620072008General FundReserved for other80,047$ 123,862$ 99,851$ 141,886$ 136,167$ 193,253$ 239,592$ 310,956$ 393,950$ 362,018$ Unreserved4,180,670 5,633,935 6,324,146 6,845,070 6,039,430 5,552,863 6,363,113 8,989,805 10,593,492 8,355,946 Total general fund4,260,717$ 5,757,797$ 6,423,997$ 6,986,956$ 6,175,597$ 5,746,116$ 6,602,705$ 9,300,761$ 10,987,442$ 8,717,964$ All Other Governmental FundsReserved forDebt service1,109,693$ 1,581,339$ 1,522,621$ 1,344,435$ 1,380,615$ 1,432,251$ 1,642,766$ 1,587,754$ 1,893,893$ 1,967,502$ Development agreements1,202,910 1,202,657 1,367,369 1,683,008 1,447,612 1,442,999 1,470,156 1,535,647 1,598,658 1,671,038 Other1,323 1,323 1,323 1,323 1,245 1,245 1,245 1,245 1,245 1,245 Unreserved, reported inSpecial revenue funds2,352,011 4,511,136 6,119,684 9,376,163 7,167,612 5,830,664 8,086,786 7,643,232 11,330,717 5,741,072 Capital project funds5,809,904 15,060,656 15,167,228 9,200,172 7,301,088 13,708,861 11,110,293 7,482,417 4,627,428 10,940,619 Total all other governmental funds10,475,841$ 22,357,111$ 24,178,225$ 21,605,101$ 17,298,172$ 22,416,020$ 22,311,246$ 18,250,295$ 19,451,941$ 20,321,476$ Source: Comprehensive Annual Financial ReportsFiscal Year84
CITY OF EULESS, TEXAS CHANGES IN FUND BALANCES, GOVERNEMNTAL FUNDS – LAST TEN FISCAL YEARS (Unaudited) Table 4 1999200020012002200320042005200620072008REVENUESGeneral property tax6,799,379$ 7,208,237$ 7,646,808$ 8,845,813$ 9,855,490$ 10,297,219$ 11,138,582$ 11,266,615$ 12,482,090$ 12,200,974$ Gross receipts tax2,598,167 2,655,007 3,572,806 3,767,478 3,433,537 3,475,785 3,589,389 4,418,954 3,947,812 4,135,934 General sales tax7,625,399 9,244,571 8,693,648 8,922,660 8,865,055 9,229,819 9,648,979 12,303,965 13,990,652 14,319,938 Car rental tax- 6,300,071 11,048,696 10,148,812 9,641,373 10,190,256 10,841,899 12,580,371 12,955,882 12,832,458 Fines and fees3,349,742 3,452,010 3,145,608 3,237,217 3,377,046 3,162,113 3,662,327 4,089,056 4,348,839 4,297,304 Licenses and permits448,751 550,356 511,625 1,188,231 1,009,058 1,190,059 870,010 806,476 804,404 752,421 Interest income878,518 1,514,037 1,902,874 898,590 566,049 444,653 798,485 1,468,812 1,784,492 1,512,898 DEA Revenues125,714 101,538 71,457 133,138 45,997 128,341 14,607 77,461 5,360 26,580 Intergovernmental557,246 602,417 413,617 421,176 326,493 292,265 303,713 315,487 334,979 353,567 Other revenues447,126 843,473 1,491,487 1,790,164 1,500,408 1,434,035 2,238,652 2,015,047 1,513,511 2,924,573 Total Revenues22,830,042 32,471,717 38,498,626 39,353,279 38,620,506 39,844,545 43,106,643 49,342,244 52,168,021 53,356,647 EXPENDITURESCulture and recreation2,838,778 3,967,325 3,277,992 3,277,615 3,764,712 3,586,026 3,890,845 4,079,825 4,500,202 4,461,329 Development services914,099 934,241 1,026,518 1,046,331 1,111,608 1,150,194 1,079,073 1,117,614 1,461,222 1,232,277 General and administrative4,281,012 8,661,518 11,847,312 11,748,167 11,631,603 11,912,050 12,494,352 14,860,076 16,377,711 17,660,608 Highway and streets815,687 746,976 734,672 750,218 973,493 766,030 670,742 656,964 693,711 943,171 Public safety9,852,770 10,362,522 11,149,869 12,187,878 13,343,235 13,814,758 14,409,786 15,334,138 16,958,988 17,930,526 Debt Service:Principal 1,775,000 1,412,790 1,584,277 2,164,866 2,452,838 2,666,815 2,600,000 2,790,000 - 3,010,000 Interest and fiscal charges1,454,632 1,768,842 3,766,821 4,072,936 3,528,072 3,308,249 2,939,783 2,596,934 3,030,000 2,437,894 Issuance costs- 328,100 104,300 - 85,363 80,000 128,000 97,810 2,583,052 - Capital outlay and maintenance3,069,616 15,404,250 13,390,056 7,349,486 3,964,777 3,455,190 4,248,437 7,997,263 3,777,225 5,843,641 Total expenditures25,001,594 43,586,564 46,881,817 42,597,497 40,855,701 40,739,312 42,461,018 49,530,624 49,382,111 53,519,446 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES(2,171,552) (11,114,847) (8,383,191) (3,244,218) (2,235,195) (894,767) 645,625 (188,380) 2,785,910 (162,799) OTHER FINANCING SOURCES (USES)Issuance of debt- 24,088,891 11,455,000 6,437,616 5,535,295 7,580,000 13,900,000 6,710,000 - - Payment of escrow for refunding- - - (6,315,299) (5,492,201) - (14,386,070) (6,879,482) - - Bond premium - - - - - - 508,038 - - - Transfers in1,867,886 2,784,426 3,347,358 3,683,309 3,987,716 3,985,286 2,435,617 5,536,285 2,920,599 12,313,757 Transfers out(1,265,318) (2,380,120) (3,931,853) (3,821,573) (6,913,902) (5,982,152) (2,351,396) (6,541,319) (2,818,181) (13,550,897) Total Other Financing Sources602,568 24,493,197 10,870,505 (15,947) (2,883,092) 5,583,134 106,189 (1,174,516) 102,418 (1,237,140) NET CHANGE IN FUND BALANCES(1,568,984)$ 13,378,350$ 2,487,314$ (3,260,165)$ (5,118,287)$ 4,688,367$ 751,814$ (1,362,896)$ 2,888,328$ (1,399,939)$ Debt service as a percentageof noncapital expenditures14.7%12.5%16.3%17.7%16.4%16.2%14.8%13.2%12.3%11.3%Source: Comprehensive Annual Financial ReportsFiscal Year85
CITY OF EULESS, TEXAS ASSESED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY – LAST TEN FISCAL YEARS (Unaudited) Table 5 Total Total Less:Total TaxableDirectFiscalRealPersonalMarketTax-Exempt AssessedTaxYearPropertyPropertyValuePropertyValueRate19991,257,952,252182,780,2721,440,732,524164,107,7201,276,624,8040.52475420001,372,654,858198,674,3431,571,329,201175,797,8831,395,531,3180.51475420011,501,844,617195,014,5831,696,859,200194,755,2821,502,103,9180.51475420021,642,632,027375,015,4872,017,647,514210,303,8091,807,343,7050.49725420031,774,764,051415,198,1752,189,962,226227,535,9731,962,426,2530.49725420041,908,435,313410,962,2602,319,397,573249,704,2492,069,693,3240.49500020052,029,651,370428,198,1422,457,849,512271,935,4962,185,914,0160.49500020062,190,313,348375,328,8442,565,642,192312,107,6192,253,534,5730.49177720072,324,055,440424,995,7122,749,051,152308,569,0352,440,482,1170.48950020082,438,826,320464,735,6702,903,561,990320,650,5902,582,911,4000.470000Source: Tarrant Appraisal DistrictNote:Property in the city is reassessed each year. Property is assessed at actual value; therefore, the assessed valuesare equal to actual value. Tax rates are per $100 of assessed value.Estimated Market Value86
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES (per $100 of Assessed Value) – LAST TEN FISCAL YEARS (Unaudited) Table 6 Fiscal YearOperating / General RateGeneral Obligation Debt ServiceTotal Direct RateHurst-Euless-Bedford ISDGrapevine-Colleyville ISDTarrant CountyTarrant County Hospital DistrictTarrant County Community College19990.3608550.1638990.5247541.60631.53780.26480.23410.106420000.3564400.1583140.5147541.63181.55230.26480.23410.106420010.3363740.1783800.5147541.67751.58230.27480.23410.106420020.3119660.1852880.4972541.65301.61680.27480.23410.106420030.2984790.1987750.4972541.71191.65980.27250.23240.139420040.3092410.1857590.4950001.66161.70110.27250.23540.139420050.3313960.1636040.4950001.71051.70000.27250.23540.139420060.3403210.1514560.4917771.72301.70000.27250.23540.139420070.3432270.1462730.4895001.59751.57430.27150.23540.139420080.3403410.1296590.4700001.30371.29000.26650.23040.1394City Direct RatesOverlapping Rates87
CITY OF EULES, TEXAS PRINCIPAL PROPERTY TAX PAYERS Current Year and Nine Years Ago (Unaudited) Table 7 PercentagePercentageof Total Cityof Total CityTaxable TaxableTaxable TaxableAssessed AssessedAssessed AssessedTaxpayerValueValue (1)TaxpayerValueValue (2)Avis Budget Group LLC72,277,544$ 2.80 % Southwestern Bell Telephone Company 43,384,376$ 3.40 %Hertz Corp62,247,645 2.41 The Bear Apartments29,522,059 2.31Vanguard Car Rental USA Inc.61,184,876 2.37 Southwest Properties22,062,773 1.73IRA Stoneleigh Feeco LLC39,469,294 1.53 Somerset Village Partners, LP20,181,995 1.58Colonial Realty, LP37,400,000 1.45 TU Electric17,556,614 1.38TXU Electric Delivery Co.37,026,203 1.43 Western Rim Investors 1994-316,517,351 1.29A T & T Mobility34,397,589 1.33 800 Eash Ash Lan Inc.13,635,000 1.07Somerset Village Partners LP30,299,136 1.17 Bear Creek Apartments, Inc.12,000,000 0.94Seramont II LP29,611,000 1.15 Bear Creek Norstor USA, LP11,637,975 0.91Western Rim Investors 1994-325,302,710 0.98 Home Depot USA Inc.10,973,099 0.86Total429,215,997$ 16.62 % Total197,471,242$ 15.47 %Source: Tarrant County Tax OfficeNote: (1) Total Taxable Value including real and personal property for tax year 2007 (fiscal year 2008) is $2,582,911,400.(2) Total Taxable Value including real and personal property for tax year 1998 (fiscal year 1999) is $1,276,624,804.2008199988
CITY OF EULESS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS – LAST TEN FISCAL YEARS (Unaudited) Table 8 CollectionsFiscalTotalFiscal YearPercentage in SubsequentTotal PercentageDelinquentPercentgeYearTax LevyAmountof LevyYearsCollectionsOf LevyTaxesof Levy19996,698,9856,618,46498.80%132,5566,751,020100.78%393,9885.88%20007,150,3937,068,63398.86%67,4647,136,09799.80%361,6635.06%20017,717,2587,562,14597.99%41,3167,603,46198.53%493,7036.40%20028,987,0888,668,50796.46%102,8718,771,37897.60%915,90410.19%20039,758,2439,639,27898.78%126,0299,765,307100.07%1,002,19310.27%200410,244,98210,026,89797.87%164,78410,191,68199.48%938,0539.16%200510,820,27410,663,36798.55%353,31211,016,678101.82%707,0196.53%200611,070,60611,007,36899.43%142,52911,149,897100.72%785,0377.09%200711,932,51211,801,18398.90%429,49312,230,676102.50%569,3394.77%200812,127,56311,986,39698.84%107,40212,093,79899.72%539,0204.44%Source: Tarrant County Tax Office and Tarrant Appraisal DistrictDelinquent TaxesCollected within theTotal CollectionFiscal Year of the Levy89
CITY OF EULES, TEXAS RATIO OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS (Unaudited) Table 9 Taxable GeneralPercentageGeneral CertificatesCertificatesSales TaxW&SDrainageCertificatesObligationTotalof PersonalPerFiscalObligationofofRevenueRevenueRevenue ofRefundingPrimaryIncome CapitaYearBondsObligationObligationBondsBondsBondsObligationBondsGovernment(1)(1)19994,026,586 10,625,000 - 9,090,000 1,770,000 1,765,000 11,490,000 - 38,766,586 3.79%904 20007,813,796 18,715,000 10,290,000 9,700,000 4,615,000 1,655,000 11,530,000 - 64,318,796 5.78%1,439 200113,214,519 23,690,000 10,190,000 9,295,000 4,170,000 1,535,000 11,295,000 - 73,389,519 6.31%1,613 200212,409,653 22,910,000 10,040,000 9,325,000 3,590,000 1,460,000 10,985,000 - 70,719,653 5.93%1,532 200315,381,815 18,420,000 9,875,000 3,300,000 1,300,000 10,660,000 - 58,936,815 4.62%1,229 200417,525,000 21,915,000 9,700,000 8,310,000 5,220,000 1,135,000 500,000 11,095,000 75,400,000 5.67%1,516 200527,410,000 10,365,000 9,510,000 7,725,000 4,915,000 965,000 210,000 11,095,000 72,195,000 5.27%1,445 200628,820,000 7,175,000 9,305,000 7,175,000 4,805,000 785,000 - 11,005,000 69,070,000 4.86%1,361 200727,350,000 6,475,000 9,080,000 6,540,000 4,585,000 600,000 - 10,560,000 65,190,000 4.40%1,232 200825,985,000 5,735,000 8,840,000 5,875,000 4,350,000 410,000 - 10,105,000 61,300,000 4.15%1,148 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.(1)See Table 14 for personal income and population data.Business-Type Activities Governmental Activities90
CITY OF EULESS, TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITAL – LAST TEN FISCAL YEARS (Unaudited) Table 10 General CertificatesEstimatedDebt toFiscalObligationofPopulationAssessedAssessedDebt PerYearBondsObligationTotal(1)Value (2)ValueCapita19994,026,586$ 10,625,000$ 14,651,586$ 42,9001,276,624,804$ 1.15%342$ 20007,813,79618,715,00026,528,79644,7001,395,531,3181.90%593 200113,214,51923,690,00036,904,51945,5001,502,103,9182.46%811 200212,409,65322,910,00035,319,65346,1661,807,343,7051.95%765 200315,381,81518,420,00033,801,81547,9501,962,426,2531.72%705 200417,525,00021,915,00039,440,00049,7502,069,693,3241.91%793 200527,410,00010,365,00037,775,00049,9502,185,914,0161.73%756 200628,820,0007,175,00035,995,00050,7502,253,534,5731.60%709 200727,350,0006,475,00033,825,00052,9002,440,482,1171.39%639 200825,985,0005,735,00031,720,00053,4002,582,911,4001.23%594 Note: Source:(1) Estimates by North Central Texas Council of Governments(2) Tarrant Appraisal District General Bonded Debt OutstandingDetails regarding the city's outstanding debt can be found in the notes to the financial statements. Total does not include taxable certificates of obligation.91
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2008 - (Unaudited) Table 11 Estimated EstimatedShare ofDebtPercentageOverlappingGovernmental UnitOutstandingApplicableDebtDebt repaid with property taxesGrapevine-Colleyville Independent School District345,913,1002.12%7,333,358Hurst-Euless-Bedford Independent School District212,084,61026.79%56,817,467Tarrant County345,904,8562.72%9,408,612Tarrant County Hospital District64,620,0002.72%1,757,664Tarrant County College District46,301,9472.72%1,259,413Subtotal, overlapping debt76,576,514City of Euless (direct debt)31,720,000100.00%31,720,000Total direct and overlapping debt108,296,514Source: Debt outstanding data provided by each governmental unit.92
CITY OF EULESS, TEXAS SCHEDULE OF REVENUE BOND COVERAGE WATER AND SEWER BONDS – LAST TEN FISCAL YEARS (Unaudited) Table 12 LessInterestTotalOperatingNetandFiscalRevenuesExpensesRevenueFiscalCoverageYear(1)(2)AvailablePrincipalChargesTotalRatio199911,909,0119,288,6222,620,389385,000107,325492,3255.32200013,558,0519,765,2393,792,812415,00062,856477,8567.94200113,084,48310,915,7842,168,699445,000317,637762,6372.84200211,719,41110,298,9401,420,471580,000231,234811,2341.75200313,016,93410,431,2492,585,685615,000199,245814,2453.18200413,443,17410,902,5222,540,652500,000183,946683,9463.71200514,548,71511,555,1082,993,607305,000275,524580,5245.16200616,668,05813,485,9553,182,103195,000229,437424,4377.50200714,645,20113,668,755976,446220,000213,643433,6432.25200816,369,36314,722,6441,646,719235,000193,464428,4643.84Notes: (1) Operating revenues, investment income, and other revenue of the water and sewer fund(2) Total operating expenses of Water and Sewer Fund exclusive of depreciation and amortization.93
CITY OF EULESS, TEXAS SCHEDULE OF REVENUE BOND COVERAGE DRAINAGE UTILITY BONDS – LAST TEN FISCAL YEARS (Unaudited) Table 13 LessInterestTotalOperatingNetandFiscalRevenuesExpensesRevenueFiscalCoverageYear(1)(2)AvailablePrincipalChargesTotalRatio1999621,586195,397426,189105,000118,433223,4331.912000662,132329,422332,710110,000112,343222,3431.502001662,455212,073450,382120,000108,652228,6521.972002645,852241,034404,81875,00074,041149,0412.722003653,916291,668362,248160,00032,494192,4941.882004667,131225,815441,316165,00046,255211,2552.092005700,316265,444434,872170,00041,305211,3052.062006741,256257,920483,336180,00035,355215,3552.242007790,647420,586370,061185,00034,303219,3031.692008736,433298,712437,721190,00021,565211,5652.07Notes: (1) Operating revenues and investment income of drainage utility fund(2) Total operating expenses of Drainage Utility Fund exclusive of depreciation and amortization.94
CITY OF EULESS, TEXAS DEMOGRAPHIC STATISTICS – LAST TEN FISCAL YEARS (Unaudited) Table 14 PerPersonal EstimatedCapitaIncomeSchoolUnemploymentFiscalPopulationIncome(thousandsMedian AgeEnrollmentRateYear(1)(2)of dollars)(3)(4)(5)199942,90023,8581,023,508N/A19,5002.1%200044,70024,8841,112,315N/A19,5002.2%200145,50025,5561,162,798N/A19,5003.3%200246,16625,8371,192,791N/A19,5004.6%200347,95026,6301,276,909N/A19,5004.7%200449,75026,7101,328,823N/A19,7003.8%200549,95027,4061,368,930N/A19,6004.5%200650,75027,9991,420,94933.720,1114.8%200752,90028,0291,482,73434.120,3183.8%200853,40027,6341,475,65634.220,0484.5%Notes: 1. Estimates by North Central Texas Council of Governments, as of January 1st of each year. 2. Estimates by Claritas Site Reports; Research & Demographic Solutions 3. Research & Demographic Solutions - 2008 4. Hurst-Euless-Bedford Independent School District 5. Texas Workforce Commission95
CITY OF EULESS, TEXAS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago (Unaudited) Table 15 PercentagePercentageof Total Cityof Total CityEmployerEmployeesEmploymentEmployerEmployeesEmploymentHEB ISD817 3.21%City of Euless323 1.81%LSG Sky Chefs, Inc.800 3.14%Edward Blank Associates300 1.68%City of Euless390 1.53%Tarrant Printing210 1.18%Autogrill Group, Inc325 1.28%Home Depot155 0.87%Beall Concrete250 0.98%Marriott130 0.73%Super Target200 0.78%Dal - Tex125 0.70%Life Outreach International186 0.73%Albertsons100 0.56%TJ Lambrecht Construction185 0.73%Atlas Match100 0.56%Home Depot140 0.55%N/A- 0.00%Lowe's135 0.53%N/A- 0.00%Total3,428 13.46%1,443 8.08%20081999Source: 1999 Official Statement, TWC website, US Census website, City of Euless Economic Development DepartmentNote: 1999 Official Statement listed the top eight employers, other source data did not provide any further information to top ten list for 1999.96
CITY OF EULESS, TEXAS FULL–TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 16 Function/Program1999200020012002200320042005200620072008General Governmentand Administration47.25 49.25 50.25 52.25 52.25 52.25 51.25 50.75 53.00 54.50 Public Safety111.00 112.00 116.00 116.00 117.00 117.00 118.00 120.00 123.00 126.00 Fire Safety60.00 60.00 60.00 61.00 61.00 61.00 64.00 67.00 70.00 73.00 Development Services13.00 13.00 13.00 13.00 15.00 15.00 12.00 12.00 12.00 12.00 Culture and Recreational34.75 33.75 34.75 35.75 35.75 35.75 35.75 35.75 36.50 36.00 Water and Sewer48.00 51.00 52.00 51.00 49.00 49.00 48.00 49.50 50.00 50.00 Golf Course14.25 15.25 15.25 15.25 15.25 15.25 15.25 15.25 15.25 15.25 Public Works14.75 15.75 15.75 15.75 15.75 15.75 15.75 15.75 15.75 15.75 Service Center6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Risk Management / Insurance2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.50 1.50 Total351.00 358.00 365.00 368.00 369.00 369.00 368.00 374.00 383.00 390.00 Source: City Budget OfficeFiscal Year97
CITY OF EULESS, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 17 Function/Program1999200020012002200320042005200620072008Public SafetyPoliceNumber of Certified Officers80818181818182828285Number of Citations IssuedN/A23,50925,43023,71927,14525,49132,20038,35934,36826,503FireNumber of Certified Firefighters57585859595962656871Number of AlarmsN/A4,4324,7174,5304,8494,6993,9493,6613,6754,197Number of EMS CallsN/A1,0771,1941,1252,3201,8542,2022,3172,3982,778Municipal CourtCases FiledN/A34,87833,80333,98035,38534,25841,02746,08539,09630,551DevelopmentNumber Residential Inspections - NewN/A1201001071825183193155877Number Commercial Inspections - NewN/A101084138102428Number Multifamily Inspections - NewN/A224100000Public WorksStreet Overlay (Square Footage)N/A543,532301,421767,1541,238,0461,004,7351,391,8891,117,894664,472999,285Cultural and RecreationalParks and RecreationRecreation Center MembershipsN/A2,2292,0003,6494,4274,1234,2604,1603,9903,944Class Attendance (Youth/Adult)N/A14,75613,93511,09917,53224,52224,57525,70429,06759,541Water and SewerNumber of Water Consumers20,35221,58822,05622,61523,23123,84825,01224,48624,48424,608Water Produced (In Gallons x 1000)N/A438,019341,835474,987555,046384,306314,085372,695414,934348,548Water Purchased - TRA (In Gallons x 1000)N/A2,298,8192,134,7681,839,4981,895,1202,146,7062,382,0402,947,9452,202,4262,291,974Water Supplied (In Gallons x 1000)N/A2,736,8382,476,6032,314,4852,450,1662,531,0122,696,1253,320,6402,617,3602,640,522Annual Rainfall (In Inches)N/A26.5846.9538.3430.7541.0832.5120.7453.5127.10Golf CourseNumber of Paid Rounds Played41,04938,54229,69429,96130,86133,14632,72536,63935,09436,528Source: City DepartmentsComprehensive Annual Financial ReportCity Budget OfficeNotes:N/A - Data not available.Fiscal Year98
CITY OF EULESS, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 18 Function/Program1999200020012002200320042005200620072008Public SafetyPolice Stations1 1 1 1 1 1 1 1 1 1 Fire Stations3 3 3 3 3 3 3 3 3 3 Public WorksStreets- Paved (linear miles)N/A182.0 182.0 182.0 182.0 182.0 182.0 182.0 211.0 217.6 Cultural and RecreationalSwimming Pools3 3 3 3 3 3 3 3 3 3 Parks14 16 16 16 16 16 16 17 17 17 Parks Land (Acres)539 539 539 539 539 539 539 566 632 632 Community Buildings3 3 3 5 5 5 5 5 5 5 Ampitheater2 2 2 2 2 2 2 2 2 2 Conference Center1 1 1 1 1 1 1 1 1 1 Golf Course1 1 1 1 1 1 1 1 1 1 Athletic Fields24 24 24 24 24 24 24 37 37 37 Library Holdings81,969 84,566 90,790 98,314 106,442 96,228 99,972 97,334 98,613 101,672 Water and SewerWater Mains (miles)179.00 185.00 197.00 202.00 209.00 210.00 212.00 218.00 222.10 226.80 Fire Hydrants1,160 1,190 1,215 1,215 1,318 1,318 1,318 1,377 1,441 1,477 Sanitary Sewers (miles)135.0 139.0 143.0 149.0 157.0 161.0 162.0 162.0 168.0 186.3 Source: City Departments99