HomeMy WebLinkAboutCity of Euless Comprehensive Annual Financial Report FY2009City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2009
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, 2009
C O N T E N T S
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal i-viii
City Officials ix
GFOA Certificate of Achievement x
Organizational Chart xi
FINANCIAL SECTION
Independent Auditor's Report 1-2
Management’s Discussion and Analysis (unaudited) 3-13
Basic Financial Statements
Government-Wide 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 Net Assets 25
Statement of Changes in Fiduciary Net Assets 26
Notes to Basic Financial Statements 27-58
Required Supplementary Information
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 59
Budgetary Comparison Schedules 60-62
Notes to Required Supplementary Information 63
Combining and Individual Fund Statements and Schedules
Non-Major Governmental Funds
Combining Balance Sheet 66-67
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 68-69
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2009
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 70
Police Drug Enforcement Special Revenue Fund 71
Half-Penny Sales Tax Special Revenue Fund 72
Crime Control and Prevention District Special Revenue Fund 73
Public Safety Grant Funds – Special Revenue Funds 74
Juvenile Case Special Revenue Fund 75
Non-Major Proprietary Funds
Combining Statement of Net Assets 77-78
Combining Statement of Revenues, Expenses, and Changes in Net Assets 79
Combining Statement of Cash Flows 80
Internal Service Funds
Combining Statement of Net Assets 82
Combining Statement of Revenues, Expenses, and Changes in Net Assets 83
Combining Statement of Cash Flows 84
STATISTICAL SECTION (Unaudited) Table Page(s)
Net Assets by Component 1 86
Changes in Net Assets 2 87-88
Fund Balances, Governmental Funds 3 89
Changes in Fund Balances, Governmental Funds 4 90
Assessed and Estimated Actual Value of Taxable Property 5 91
Direct and Overlapping Property Tax Rates 6 92
Principal Property Tax Payers 7 93
Property Tax Levies and Collections 8 94
Ratio of Outstanding Debt by Type 9 95
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 10 96
Direct and Overlapping Governmental Activities Debt 11 97
Schedule of Revenue Bond Coverage Water and Wastewater Bonds 12 98
Schedule of Revenue Bond Coverage Drainage Utility Bonds 13 99
Demographic Statistics 14 100
Principal Employers 15 101
Full-time Equivalent City Government Employees by Function/Program 16 102
Operating Indicators by Function/Program 17 103
Capital Asset Statistics by Function/Program 18 104
INTRODUCTORY SECTION
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201 N. Ector Drive, Euless TX 76039-3595
817/685-1400 Metro 817/267-4403 Fax 817/685-1416
www.ci.euless.tx.us
January 26, 2010
To the Honorable Mayor,
Members of the City Council, and
Citizens of the City of Euless, Texas
The Finance Department and City Manager’s Office are pleased to submit the
Comprehensive Annual Financial Report (“CAFR”) for the City of Euless, Texas
(“City”) for the fiscal year ended September 30, 2009. This report complies with State
law which requires that all local governments publish within six months of the close of
each fiscal year a complete set of financial statements presented in conformity with
accounting principles generally accepted in the United States of America (“GAAP”) and
audited in accordance with auditing standards generally accepted in the United States of
America by a firm of licensed certified public accountants.
This report is published to provide the City Council, city staff, citizens, bondholders, and
other interested parties with detailed information concerning the financial condition and
activities of the City. The report consists of city management’s representations
concerning the finances of the City. Consequently, management assumes full
responsibility for the accuracy, completeness, and reliability of all of the information
presented in the report. To provide a reasonable basis for making these representations,
management of the City has established a comprehensive internal control framework that
is designed both to protect the City’s assets from loss, theft, or misuse and to compile
sufficient reliable information for the preparation of the City’s financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh the
benefits derived from them, the City’s comprehensive framework of internal controls has
been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to
the best of our knowledge and belief, this financial report is complete and reliable in all
material respects.
The City’s financial statements have been audited by Weaver and Tidwell, L.L.P., a firm
of licensed, certified public accountants. The goal of the independent audit is to provide
reasonable assurance that the financial statements of the City for the fiscal year ended
September 30, 2009, are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and significant estimates
made by management; and evaluating the overall financial statement presentation. The
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independent auditor concluded, based upon the audit, that there was a reasonable basis
for rendering an unqualified (“clean”) opinion that the City’s financial statements for the
fiscal year ended September 30, 2009, are fairly presented in conformity with GAAP.
The independent auditor’s report is presented as the first component of the Financial
Section of this report.
This report is presented in three sections: Introductory, Financial, and Statistical. The
Introductory Section includes this transmittal letter, a listing of City Officials, and an
organizational chart of the City. The Financial Section includes the independent
auditor’s report on the basic financial statements, Management’s Discussion and Analysis
(“MD&A”), basic financial statements, the notes to the basic financial statements, and
combining and individual fund statements and schedules. The MD&A is a narrative
introduction, overview, and analysis to accompany the basic financial statements. This
letter of transmittal is designed to 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 relevant to readers of the City’s financial statements. The statistical data is
generally presented on a multi-year basis.
Profile of the City of Euless, Texas
The City of Euless is located in North Central Texas in Northeast Tarrant County
approximately 16 miles west of Dallas and 16 miles east of Fort Worth. Euless is readily
accessible by 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 54,200.
The City of Euless was incorporated February 24, 1953 and is a home rule city
operating under a Council/Manager form of government. The City Council is
comprised of the mayor and six council members who are elected at large. The
Council has the authority to enact local legislation, levy taxes, adopt budgets,
determine policies, incur debt, and appoint the City Secretary, City Attorney,
Municipal Court Judge, and the City Manager. The City Manager reports directly to
the City Council, and is responsible for the daily management of the various city
departments. Council members serve three-year staggered terms, with two council
members elected each year. The Mayor is elected to serve a three-year term. In
addition, ten boards and commissions were created to assist the City Council in
deciding matters of policy and procedure and meet on various issues throughout the
year.
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The City of Euless provides a full range of services to its citizens including: police and
fire protection; emergency ambulance services; municipal court operations; development
and code services; construction and maintenance of streets and highways, parks, and
recreational facilities; water service and wastewater collection and treatment; and library
operations. The City also operates a top-ranked, 18-hole golf course and conference
centre, an adult softball facility, and a youth athletic complex. Internal services of the
City account for risk management, equipment replacement, and employee insurance
coverage activities on a cost reimbursement basis. A private contractor, through a
franchise agreement, provides solid waste collection and disposal services for the City.
Two component units of the City, the Euless Development Corporation and the Euless
Crime Control and Prevention District, are presented in the financial statements of the
City as blended component units. Data for both organizations is recorded and presented
in the special revenue funds of the City’s financial statements. Additional information on
these component units can also be found in Note 1 in the notes to the financial
statements.
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 to the City Council
the proposed 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 City 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 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 for review.
Economic Condition
The information presented in the financial statements is perhaps best understood when it
is considered from the broader perspective of the specific environment within which the
City of Euless operates.
The City of Euless is located in Tarrant County, one of the fastest-growing counties in
Texas, in the heart of the Dallas/Fort Worth (“DFW”) Metroplex and adjacent to DFW
Airport. Thus, the economic vitality of the region significantly impacts the economic
health of Euless. DFW’s strategic central location and diverse economy are major factors
contributing to businesses relocating to the area. As a result, DFW is one of the fastest-
growing economic regions in the country. Due to the tremendous growth experienced
over the last decade, DFW has become the largest metropolitan area in Texas. DFW’s
highly-diversified economy includes close to 141,000 business, 1,500 regional and
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corporate headquarters, 23 Fortune 500 Companies, and a total workforce exceeding 3.2
million. Such economic diversity has helped the region weather economic downturns in
key sectors better than other regions of the nation (U.S. Census Bureau County Business
Patterns). For September 2009, the City’s unemployment rate of 7.3% compares
favorably with the state rate of 8.2%.
DFW Airport is the world’s third-busiest airport in terms of operations and seventh in
terms of passengers. DFW currently operates daily passenger flights to 172 destinations
worldwide, including 135 nonstop domestic destinations and 37 nonstop international
destinations, offering nearly 1,750 flights per day and serving more than 57 million
passengers a year. DFW provides in excess of 305,000 jobs and contributes $16.6 billion
annually to the regional economy (SOURCE: DFW website www.dfwairport.com, DFW
Airport 2008 Comprehensive Annual Financial Report).
The AllianceTexas development in north Fort Worth is a 17,000-acre master-planned,
mixed-use community which is home to 220 companies, 28,000 employees, 7,100 single-
family homes, and is anchored by the inland port known as the Alliance Global Logistics
Hub. The development includes Fort Worth’s Alliance Airport, the first purely industrial
airport in the Western Hemisphere, which serves as the cornerstone for the nation’s
fastest-growing industrial complex. The area offers a variety of commercial real estate
options as well as industrial, office, and retail space. Additionally, the AllianceTexas
development contributes an estimated $2.5 billion annually to the local economy
(SOURCE: Alliance website www.allianceairport.com, AllianceTexas Facts).
Although the DFW Metroplex has fared better than other areas of the nation during the
recession, the local economy did experience a downturn due to the recent turmoil in the
housing and financial markets. Euless continues to look for new, innovative revenue
opportunities in an effort to minimize the tax burden to its citizens. Efforts have also
been made to hold or cut costs while preserving current service levels. Budgetary
reductions and other cost-saving measures were enacted early in the fiscal year to
minimize the impact of declining revenue streams on City operations. Several positions
were eliminated through a voluntary retirement program and a reduction in workforce,
baseline spending levels were reduced, and many capital purchases were frozen. In the
upcoming fiscal year, management will continue to closely monitor revenue collections
in conjunction with expenditure patterns to ensure the City maintains a healthy financial
position.
Taxable value for all residential and commercial property in the City of Euless totaled
approximately $2.66 billion for fiscal year 2009, which represents a 3% increase over the
prior year. Sales tax collections declined during FY2009 due in large part to a decline in
the housing market as well as the overall economic crisis experienced nationwide.
The City receives significant revenues 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 issuing additional debt. Doing so has allowed the
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City to refrain from becoming overly dependent on a volatile resource, while providing
much needed improvements within the community.
The City of Euless has approximately 1,065 acres of undeveloped land outside of DFW
Airport and another 1,700-1,800 developable acres within the airport boundaries. Euless
continues to focus on attracting quality, sustainable development to the area, to pursue
redevelopment opportunities, and to renew the emphasis on business retention. As a
result, over the last several years, Euless has experienced new commercial, industrial,
residential, and multi-family growth. Quik Trip Inc. built a regional headquarters facility
on a vacant tract along Industrial Boulevard and opened a third retail site within the City.
Additionally, the City welcomed the opening of two new quality hotels and several new
retail sites which were located on vacant tracts adjoining some of the most heavily
traveled thoroughfares.
State Highway 360, which lies on the eastern border of the City, was expanded thereby
providing greater access to undeveloped areas along this roadway. Also, the construction
of the new Dallas Cowboys Stadium in Tarrant County, in close proximity to Euless, is
expected to attract additional tourism to the City.
During the fiscal year, improvements to miscellaneous street overlay, sidewalk and park
projects located throughout the City were completed. The expansion and remodeling of
the Texas Star Conference Centre, installation of lighted street signs along North Main
Street, and reconfiguration of the intersection at West Pipeline Road and SH10 were also
completed during the year. Construction began on the Fuller Wiser Connector, the Trails
at Bob Eden Park, and the Redi-Mix Facility. In addition, design work was completed on
the Midway Park Family Life Center, which will include a new senior citizen center,
expansion of the current recreation center and indoor/outdoor aquatic facilities for the
entire family. The replacement of wastewater lines and drainage infrastructure
improvements were undertaken during the year as well. Water line replacements along
Simmons Drive were completed in collaboration with Tarrant County. All of these
projects were funded from cash reserves and did not require issuance of new debt.
The City 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 $56,523 (source: Claritas Site Reports)
compares favorably to $53,459 for Tarrant County and $47,548 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 while considering the full impact to the operating budget and tax
requirements. Many of these projects have been completed on a pay-as-you-go basis by
utilizing operating revenues, excess reserves, and rental car taxes, thereby avoiding the
issuance of additional debt.
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The City Council and citizens of Euless have determined that debt issuance is a viable
method of financing major capital projects. Analysis of potential debt issuance includes
the operating impact the repayment thereof will have on property tax rates, enterprise
fund service fee revenues, and citizens. Per the City’s fiscal policies, long-term debt will
not be used for operating purposes and the life of the debt instruments will not exceed the
useful life of the projects financed. Policy also specifies that bonds with an average life
of 20 years or less will be issued to reduce net interest cost and maintain future flexibility
by paying off debt earlier. The majority of the City’s existing long-term debt was used to
finance infrastructure needs and traditional government facilities such as fire stations,
libraries, and development of parks and open spaces.
The City’s fiscal policies state current expenditures will be paid with current revenues.
Deferrals, short-term loans, or one-time sources will be avoided as budget balancing
techniques. Reserves will be used only for emergencies or nonrecurring expenditures,
except when balances can be reduced because their levels exceed guidelines or legally-
required minimums.
Fiscal policies provide for a General Fund reserve equal to between thirty and sixty days
of working capital. At no time shall the reserve fall below 8.3% of the General Fund
expenditure budget (i.e. 30-day level). The current reserve is maintained at 60 days
which equates to approximately 16.4% of next year’s budgeted expenditures. At the end
of the current year, the City was in compliance with this policy.
The City’s fiscal policies for the Water and Wastewater Fund require the maintenance of
a minimum reserve of 45 to 75 days of working capital. The City currently maintains a
75-day reserve. Water and Wastewater revenue bond covenants require the City to
maintain reserve amounts sufficient to cover the average annual debt service
requirements. This revenue bond reserve is in addition to the working capital required by
the City’s fiscal policies and is maintained in a separate fund. As of September 30, 2009,
the revenue bond reserve totaled close to $436,000 while the average annual debt service
on the outstanding debt was calculated at $363,240.
Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc. rates
the City’s general obligation debt and revenue debt at AA. Moody’s Investor Service,
Inc. rates the general obligation debt, water and wastewater revenue debt, and drainage
revenue debt at A1 and the sales tax revenue debt at A2. Additional information about
the rating agencies or the significance of the ratings provided may be obtained from each
agency’s web site.
Major Initiatives
In line with its business retention policy, the City reached an agreement with Redi-Mix
Concrete to construct a new regional corporate headquarters facility that allows for
retention and expansion of its local operation. The City completed construction of this
facility in December 2009.
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The City partnered with Tarrant County, local churches, and the business community 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’s updated Facility Master Plan addresses many future needs including a new
senior citizen 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 construction of the senior citizen
facility in January 2010.
The Midway Park Family Life Center is a major capital improvement initiative approved
by the City Council. The project will be constructed in three distinct phases and includes
an indoor aquatic facility, an outdoor aquatic facility, an upgrade to the existing
recreation center, as well as redevelopment of the entire site. Additionally, the City’s
new Senior Center will be constructed adjacent to, and will ultimately connect to and
share space with, the expanded recreation center. The Midway Park Family Life Center
is envisioned to meet many recreational and leisure needs of the community in a single,
centralized location.
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 will provide
approximately 1.2 million square feet of retail/office and includes a unique residential
component. The City expects the sales tax benefit from this center to be significant.
Although infrastructure improvements at this location are currently underway, the
construction phase of the project has been delayed.
In an effort to promote water conservation, next year’s operating budget for the Water
and Wastewater fund includes the transition from a traditional flat rate water volume
billing system to a tiered rate structure. Under the tiered structure, customers pay a
graduated volume rate based on varying levels of monthly water consumption. Large
volume users will pay a higher “blended” rate per thousand gallons than a low volume
user.
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, 2008. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local
government financial reports. In order to be awarded a Certificate of Achievement, a
government unit must publish an easily readable and efficiently organized CAFR, whose
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contents conform to program standards. Such report must satisfy both Generally
Accepted Accounting Principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has been
awarded a Certificate of Achievement for the last 22 consecutive years. We believe that
the current CAFR meets the Certificate of Achievement program requirements and are
submitting it to GFOA for review.
In addition, the City of Euless 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 18 years. In order to qualify for the award, the
City’s budget document was judged to be proficient in several categories, including as a
policy document, a financial plan, an operations guide, and a communications device.
The preparation of this report on a timely basis could not have been accomplished
without the efficient and dedicated services of the entire staff of the Finance Department.
Appreciation is expressed to City employees throughout the organization, especially
those who were instrumental in the successful completion of this report.
We would like to thank the Mayor and members of the City Council for their support in
planning and conducting the financial operations of the City in a responsible,
professional, and progressive manner.
Respectfully Submitted,
Gary McKamie
City Manager
Loretta Getchell
Deputy City Manager
Vicki Rodriquez
Director of Finance
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FINANCIAL SECTION
1
AN INDEPENDENT
MEMBER OF BAKER TILLY
INTERNATIONAL
WEAVER AND TIDWELL LLP
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
WWW.WEAVERLLP.COM
FORT WORTH
2821 W SEVENTH STREET, SUITE 700, FORT WORTH, TX 76107
P: (817) 332 7905 F: (817) 429 5936
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, 2009, 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, 2009, 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 59 through 63, 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.
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
City of Euless, Texas
Page 2
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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 Worth, Texas
January 25, 2010
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CITY OF EULESS, TEXAS
Management’s Discussion and Analysis
For the Year Ended September 30, 2009
(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, 2009. 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-term
and long-term assets and liabilities) or fund balances (the current “spendable” assets less current
liabilities”) of the government been maintained? Readers are encouraged to consider the
information presented here in conjunction with the additional information furnished in the letter
of transmittal (pages i-viii of this report) and the statistical section (pages 85-104 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.eulesstx.gov. It should be noted that the
Independent Auditor’s Report describes the auditors’ association with the various sections of this
report and that all of the additional information from the website and other city sources are
unaudited.
Financial Highlights
• The assets of the City of Euless exceeded its liabilities at the close of the most recent fiscal
year by $168,485,769 (Net assets). This number must be viewed in the context that the vast
majority of the City’s net assets of $131,736,221 (78%) 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 $5,809,906 (3.5%).
The remaining $30,939,642 (18.5%) 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 $4,625,348 in
fiscal year 2009. Governmental activities realized a decrease in unrestricted net assets of
$704,388 resulting mainly from the City’s continued efforts 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 the governmental activities reflects such.
Business-type activities realized a decrease in unrestricted net assets of $3,920,510 due in
large part to the restriction of assets in the City’s Water and Wastewater fund.
• At the close of the current fiscal year, the City of Euless’ governmental funds reported
combined ending fund balances of $28,126,274 a decrease of $913,166 in comparison with
the prior year. Within this total, $1,987,782 is reserved for debt service; $12,828,519 is
restricted by bond covenant or designated by management or council to be used for capital
expenses; and $1,785,577 in the special revenue funds includes grant and other spending
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restrictions. The unreserved fund balance in the General Fund is $7,288,976 and the Car
Rental Tax Fund is $4,235,420 both of which can be used for any lawful purpose. The
General Fund unreserved balance represents 24% of fiscal year 2009 total fund expenditures.
• The City’s total capital assets (net of accumulated depreciation) increased by $2,402,664
which is primarily attributed to the acquisition or construction of land, infrastructure,
equipment, and construction in progress.
• The City’s bonds payable decreased by $3,900,000 or 6.3%, 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 which are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also
contains other required supplementary information in addition to the basic financial statements
themselves.
Government-wide Financial Statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Euless’ finances, in a manner
similar to a private-sector business.
The statement of net 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 outlays 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 wastewater
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.
5
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 more narrow 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 each fund 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 wastewater, drainage utility, and golf operations, as well as 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 is included within governmental activities in the government-wide
financial statements.
6
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for Water and Wastewater, Drainage Utility, 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 pages 25 and 26 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 27-58 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 59-63 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 64-84 of this report.
Government-Wide Financial Statement 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 $168,485,769 as of September 30, 2009.
The largest portion of the City’s net assets (78%) 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 (3.5%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets
of $30,939,642 (18.5%) may be used to meet the government’s ongoing obligations to citizens,
creditors, and employees.
As of September 30, 2009, the City is able to report positive balances in all three categories of
net assets, for the government as a whole, as well as for its separate governmental and business-
type activities. The same situation held true for fiscal year 2008.
Net Assets
Governmental Business-type
Amounts shown in 000's activities activities Total
2009 2008 2009 2008 2009 2008
Current and other assets 45,118$ 44,474$ 20,690$ 20,369$ 65,808$ 64,843$
Capital assets 108,197 105,692 65,910 66,013 174,107 171,705
Total assets 153,315 150,166 86,600 86,382 239,915 236,548
Long-term liabilities 41,031 44,080 12,063 12,999 53,094 57,079
Other liabilities 14,311 15,431 4,024 4,327 18,335 19,758
Total liabilities 55,342 59,511 16,087 17,326 71,429 76,837
Net assets:
Invested in capital
assets, net of debt 78,167 73,177 53,569 52,155 131,736 125,332
Restricted 1,846 1,814 3,964 - 5,810 1,814
Unrestricted 17,960 18,664 12,980 16,901 30,940 35,565
Total net assets 97,973$ 93,655$ 70,513$ 69,056$ 168,486$ 162,711$
The City’s total net assets increased $5,774,680 during the current fiscal year. This increase is
primarily attributed to the change in capital assets which includes land, buildings, and
infrastructure assets.
8
Changes in Net Assets
Governmental Business-type
Amounts shown in 000's Activities Activities Totals
2009 2008 2009 2008 2009 2008
REVENUES
Program revenues:
Fees, fines and charges
for services 8,985$ 8,307$ 22,844$ 22,487$ 31,829$ 30,794$
Operating grants and
contributions 487 487 - - 487 487
Capital grants and
contributions 268 1,885 1,706 3,465 1,974 5,350
General revenues:
Property taxes 12,685 12,231 - - 12,685 12,231
Sales taxes 12,602 14,320 - - 12,602 14,320
Other taxes 15,969 16,968 - - 15,969 16,968
Investment income 863 1,728 254 726 1,117 2,454
Gain (loss) on asset
disposal 38 71 - - 38 71
Miscellaneous 11 - 22 10 33 10
Total revenues 51,908 55,997 24,826 26,688 76,734 82,685
EXPENSES
Culture and recreation 4,893 4,863 - - 4,893 4,863
Development services 1,707 1,420 - - 1,707 1,420
General government 17,267 17,734 - - 17,267 17,734
Highways and streets 2,057 2,535 - - 2,057 2,535
Public safety 19,379 18,709 - - 19,379 18,709
Interest on long-term
debt 2,377 3,151 - - 2,377 3,151
Water and wastewater - - 15,624 17,502 15,624 17,502
Drainage utility - - 948 933 948 933
Golf course - - 4,691 4,599 4,691 4,599
Recreational
enterprises - - 2,016 2,219 2,016 2,219
Total expenses 47,680 48,412 23,279 25,253 70,959 73,665
Increase (decrease) in
net assets before
transfers 4,228 7,585 1,547 1,435 5,775 9,020
Transfers 90 (1,012) (90) 1,012 - -
Increase (decrease) in
net assets 4,318 6,573 1,457 2,447 5,775 9,020
Net assets, beginning 93,655 87,082 69,056 66,609 162,711 153,691
Net assets, ending 97,973$ 93,655$ 70,513$ 69,056$ 168,486$ 162,711$
Governmental activities. Governmental activities increased the City’s net assets by $4,317,448
thereby accounting for 75% of the total growth in net assets. Key elements of this increase are as
follows:
9
• Fees, fines and charges for service of over $8.9 million were recorded in fiscal year 2009.
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.
• Operating and capital grants and contributions comprised 1.5% of the City’s governmental
revenue stream. The Texas Transportation grant, school police grant, and developers’
contributions are recorded in this revenue category.
• Sales tax collections totaled $12,602,345 in the current fiscal year. Sales tax is a major
revenue source for the City and equates to over 24% of total revenues. Overall economic
conditions present throughout the fiscal year are responsible for the significant decline in this
volatile revenue source.
• Investment income of $863,225 was earned on governmental investments during the fiscal
year. Reinvestment of proceeds from maturities resulted in lower yields on the City’s
investment portfolio.
• Salary and benefit increases resulted in additional expenses of nearly $2.3 million which
includes $740,000 in contributions to the Other Post-Employment Benefit Trust. These
expenses account for 57% of total governmental expenses.
• The decline in sales tax collections and other applicable revenues resulted in decreased rebate
payments of over $1.9 million in accordance with the terms of the various incentive
agreements.
• The completion of infrastructure and the acquisition of capital assets resulted in increased
depreciation expenses of roughly $94,000.
• Insurance claims and services increased by over $600,000 from fiscal year 2008 to fiscal year
2009.
• Electric service costs rose by 7% during the year resulting in governmental cost increases of
approximately $50,000.
• 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 $1,457,231
accounting for 25% of the total growth in net assets. Key elements of this increase are as follows:
• Water and wastewater rate increases account for nearly $395,000 of the revenue increase in
business-type activities.
• Recreation enterprise revenues totaled $5,772,347 which represents 25% of total business-
type activity revenues.
• Due to reduced volume, water purchases realized a $1.2M decrease for the year while
wastewater treatment services increased expenses by nearly $335,000 primarily resulting
from a Trinity River Authority rate increase. These two expense categories combined
resulted in a net decrease in expenses of more than $918,000.
• Salary and benefit cost increases resulted in increased expenses of $553,085. This expense
category accounts for 29% of total business-type expenses.
• The Golf Course contributed $117,335 to the equipment replacement fund for future
equipment purchases.
• Net assets for business-type activities represents 42% of combined net assets.
Expense
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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
Wastewater fund $7,807,556; Drainage Utility fund $1,586,374; Golf Course fund $236,534; and
all other non-major recreation enterprise funds combined $1,345,924. The Water and
Wastewater fund and the Drainage Utility fund experienced decreases in unrestricted net assets
primarily resulting from restricting assets. Unrestricted net assets for the Golf Course fund and
all other non-major recreation enterprise funds decreased $182,854 and $173,332, 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, 2009, totaled $174,107,525 (net of accumulated depreciation).
The investment in capital assets includes land, buildings, improvements, machinery and
equipment, infrastructure, and construction in progress. The net increase in the City’s
investment in capital assets for the current fiscal year was $2,402,664 or 1.4%.
Major capital asset events occurring during the current fiscal year included the following:
• Developers contributed $65,477 in land; $202,652 in streets and sidewalks; $743,609 and
$608,129 in wastewater and water infrastructure, respectively; and $43,282 in drainage
infrastructure.
• Completion of Glade Road reconstruction at a cost of $2,870,572.
• Miscellaneous street overlay, sidewalks, and park projects located throughout the city were
also completed at a total cost of $893,555.
• Construction-in-progress additions related to general government operations of $3,595,163
primarily consisted of Fuller Wiser Connector ($227,239), Trails at Bob Eden Park
($97,172), Midway Park Family Life Center Design ($99,593), and the Redi-Mix Facility
($3,137,702).
• Capital asset additions for governmental operations include, but are not limited to, security
cameras at Municipal Court, alarm system at Midway Recreation Center, vehicle detection
systems on traffic lights, and eighteen vehicles.
• Construction-in-progress additions related to business-type operations totaled $675,262 and
consisted primarily of wastewater line replacements for $79,840 and drainage infrastructure
improvements at a cost of $595,420.
• Completion of $576,570 in wastewater infrastructure projects including line replacements at
McCormick Court, Copher Court, Arnett Addition, Jean Lane, and Fuller Drive.
• Simmons Drive water line replacements were completed with the City contributing $50,143
and Tarrant County contributing $310,725 to the cost of the project.
• Completion of the Texas Star Conference Centre and Library expansions at $3,627,972 and
$305,663, respectively.
• Capital asset additions for business operations include, but are not limited to, purchases of a
sewer pump, two animal control units, two power stretchers, two chloramines buildings, and
a beverage cart.
12
• Land purchases for redevelopment at a cost of $205,043.
• Fire Station #1 improvements totaling $73,940 were completed.
• Texas Star Golf Course improvements at a total cost of $51,680 included installation of a
walking bridge over Hurricane Creek on hole #18 and installation of a fountain in the pond at
hole #15.
• Drainage improvements totaling $48,925 which replaced the erosion control wall along
Hurricane Creek.
• Replacement of Softball World fencing at a cost of $70,204.
Capital Assets (Net of Accumulated Depreciation)
Amounts shown in 000s activities activities Total
2009 2008 2009 2008 2009 2008
Land 26,136$ 25,865$ 3,121$ 3,121$ 29,257$ 28,986$
Buildings 32,956 30,453 2,662 2,757 35,618 33,210
Other improvements 2,551 2,703 11,367 11,799 13,918 14,502
M&E 4,688 4,658 591 845 5,279 5,503
Infrastructure 38,271 36,358 47,494 47,064 85,765 83,422
Construction in
Progress 3,595 5,655 675 427 4,270 6,082
Total 108,197$ 105,692$ 65,910$ 66,013$ 174,107$ 171,705$
Business-typeGovernmental
Additional information on the City’s capital assets can be found in Note 3 on pages 38-40 of this
report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding
of $55,658,003. Of this amount, $46,252,404 comprises debt backed by the full faith and credit
of the government. The remainder of the City’s debt, $9,405,599, represents bonds secured
solely by specific revenue sources (i.e. revenue bonds).
Outstanding Debt
Governmental Business-Type
Amounts shown in 000s activities activities Total
2009 2008 2009 2008 2009 2008
GO Bonds 24,350$ 25,985$ 9,640 10,105 33,990 36,090
COs 13,910 14,575 - - 13,910 14,575
Revenue Bonds 5,185 5,875 4,315 4,760 9,500 10,635
Deferred Loss (943) (1,032) (799) (851) (1,742) (1,883)
Totals 42,502$ 45,403$ 13,156 14,014 55,658 59,417
The City’s total debt decreased $3,900,000 or 6.3% during fiscal year 2009. This decrease is
attributed to scheduled annual principal payments. Standard & Poor’s Ratings Services, a
division of the McGraw-Hill Companies, Inc. rates the City’s general obligation debt and
revenue debt at AA. Moody’s Investor Service, Inc. rates the general obligation debt, the water
and wastewater revenue debt, and the drainage revenue debt at A1, and the sales tax revenue debt
at A2. Additional information on the City’s long-term debt can be found in Note 4 on pages 40-
45.
13
Economic Factors and Next Year’s Budgets and Rates
In the fiscal year 2009-10 budget, General Fund revenues and transfers are budgeted to increase
by 2% from the 2008-09 budget year with property taxes making up about 32% of budgeted
revenues and sales tax making up approximately 29% of budgeted revenues. Certified assessed
valuations as of September 1, 2009, decreased 2.9% from the preceding year.
As of September 30, 2009, the City’s unemployment rate is 7.3% compared to the State of
Texas, which is 8.2%. In the FY2009-10 budget, sales tax receipts are projected to increase 4%
over prior year estimates based on historical trends and a projected economic recovery in the
second half of the fiscal year. The car rental tax receipts are projected to remain flat based on
current rental levels.
Baseline budgeted expenditures in the General Fund are projected to increase approximately
2.4% over FY2008-09 estimates. This increase is primarily attributed to the City’s commitment
to properly fund workers’ compensation, employee retirement, and other post-employment
benefits (“OPEB”). The City elected to use excess reserves to cash flow capital programs
including city computer and technology upgrades, radio replacement planning, and various other
equipment purchases. In addition, continued funding is provided for the City’s contribution to
the Tarrant County Home Program, community revitalization, and street overlay. The property
tax rate remained at .4700¢ per $100 of assessed valuation for fiscal year 2010.
For the Water and Wastewater Fund, the FY2009-10 budget includes the transition from a
traditional flat rate water volume billing system to a tiered rate structure. Under the tiered
structure, customers pay a graduated volume rate based on varying levels of monthly water
consumption. Monthly water base rates of $7.75 per month for residential customers and
variable commercial customer base rates dependent upon meter size were also enacted. The
wastewater base rate increased to $6.00 per month for all customer classes. A wastewater
volume charge of $2.53 per 1000 gallons treated applies to all customer classes. Residential
wastewater volume charges are capped at a maximum of 12,000 gallons per month. The City
budgeted to continue its pay-as-you-go capital program in the Water and Wastewater Fund
which includes approximately $1,220,000 for an effluent water line.
The Texas Star Golf Course revenues are anticipated to increase approximately $510,000 over
prior year projections. Golf rounds are budgeted to remain relatively flat as compared to the
prior year’s estimated rounds. However, the City completed a major renovation and expansion
of the Texas Star Conference Centre during fiscal year 2009 which added additional capacity to
both Raven’s Grill and the conference centre.
Request for Information
The financial report is designed to provide citizens, customers, investors, and creditors with a
general overview of the City’s finances. If you have questions about this report or need
additional information, contact the Finance Department, Attn: Vicki Rodriquez, Director of
Finance, at 201 N. Ector Drive, Euless, Texas 76039, call (817) 685-1626, or e-mail
vrodriquez@eulesstx.gov.
CITY OF EULESS, TEXAS
GOVERNMENT–WIDE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2009
The Notes to the Basic Financial Statements
are an integral part of these statements.
14
Primary Government
Governmental Business-type
Activities Activities Total
Deposits and investments 40,530,229$ 12,103,200$ 52,633,429$
Receivables (net of allowances for
uncollectibles) 6,322,712 2,141,214 8,463,926
Internal balances (2,003,739) 2,003,739 -
Inventories, at cost 11,371 268,198 279,569
Prepaid items 22,628 29,246 51,874
Restricted assets
Deposits and investments - 3,963,919 3,963,919
Deferred charges 234,810 180,399 415,209
Capital assets
Land and construction in progress 29,731,150 3,796,334 33,527,484
Other capital assets, net of
accumulated depreciation 78,466,062 62,113,979 140,580,041
Total assets and other debits 153,315,223 86,600,228 239,915,451
Accounts payable 9,749,446 1,140,190 10,889,636
Accrued liabilities 567,558 347,347 914,905
Accrued interest payable 317,825 84,362 402,187
Deferred revenue 286,595 96,851 383,446
Money held in escrow - 1,410,262 1,410,262
Noncurrent liabilities
Due within one year 3,389,810 945,000 4,334,810
Due in more than one year 41,031,339 12,063,097 53,094,436
Total liabilities 55,342,573 16,087,109 71,429,682
Invested in capital assets, net of
related debt 78,167,148 53,569,073 131,736,221
Restricted 1,845,987 3,963,919 5,809,906
Unrestricted 17,959,515 12,980,127 30,939,642
Total net assets 97,972,650$ 70,513,119$ 168,485,769$
ASSETS
LIABILITIES AND NET ASSETS
LIABILITIES
NET ASSETS
CITY OF EULESS, TEXAS GOVERNMENT–WIDE STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2009 The Notes to the Basic Financial Statements are an integral part of these statements. Primary GovernmentFees, Fines Operating Capital Business - and Charges Grants and Grants and Governmental TypeProgram Activities Expenses for Services Contributions ContributionsActivitiesActivities TotalPrimary governmentGovernmental activitiesCulture and recreation 4,892,936$ 67,283$ 19,214$ -$ (4,806,439)$ -$ (4,806,439)$ Development services 1,707,421 783,955 - - (923,466) - (923,466) General and administrative 17,267,094 4,092,387 23,734 - (13,150,973) - (13,150,973) Highways and streets 2,057,123 11,008 - 268,130 (1,777,985) - (1,777,985) Public safety 19,379,290 4,030,566 444,111 - (14,904,613) - (14,904,613) Interest on long-term debt 2,377,564 - - - (2,377,564) - (2,377,564) Total governmental activities 47,681,428 8,985,199 487,059 268,130 (37,941,040) - (37,941,040) Business-type activitiesWater & wastewater 15,623,464 16,381,801 - 1,662,464 - 2,420,801 2,420,801 Drainage utility 947,869 689,889 - 43,282 - (214,698) (214,698) Golf 4,690,701 4,069,151 - - - (621,550) (621,550) Other recreation enterprises 2,016,273 1,703,196 - - - (313,077) (313,077) Total business-type activities 23,278,307 22,844,037 - 1,705,746 - 1,271,476 1,271,476 Total primary government 70,959,735$ 31,829,236$ 487,059$ 1,973,876$ (37,941,040)$ 1,271,476$ (36,669,564)$ GENERAL REVENUESTaxesProperty taxes, levied for general purposes 12,685,268$ -$ 12,685,268$ Sales taxes 12,602,345 - 12,602,345 Car rental taxes 11,632,215 11,632,215 Mixed beverage taxes 76,432 - 76,432 Hotel/motel occupancy taxes 185,417 185,417 Gross receipts taxes 4,074,356 4,074,356 Investment income 863,225 254,071 1,117,296 Charges for services - - - Gain/(loss) on sale of assets37,909 21,987 59,896 Miscellaneous11,018 - 11,018 Transfers90,303 (90,303) - Total general revenues and transfers 42,258,488 185,755 42,444,243 Change in net assets 4,317,448 1,457,231 5,774,679 NET ASSETS, beginning of year93,655,202 69,055,888 162,711,090 NET ASSETS, end of year97,972,650$ 70,513,119$ 168,485,769$ Net (Expense) Revenue andChanges in Net AssetsProgram Revenues15
CITY OF EULESS, TEXAS
BALANCE SHEET – GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
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 7,827,761$ 1,045,810$ 2,087,011$ 9,271,280$ 13,165,437$ 33,397,299$
Receivables
Property taxes 410,072 179,003 - - - 589,075
Accounts receivable and unbilled revenue 2,576,259 - - 1,900,597 65,552 4,542,408
Accrued interest receivable 51,085 - 11,159 22,256 42,817 127,317
Due from other governments - - - - 742,577 742,577
Prepaids and deposits 17,549 - - - 4,779 22,328
Inventories, at cost 11,371 - - - - 11,371
Total assets 10,894,097$ 1,224,813$ 2,098,170$ 11,194,133$ 14,021,162$ 39,432,375$
Liabilities
Accounts payable 1,367,844$ -$ 74,098$ 6,958,713$ 797,283$ 9,197,938$
Accrued salaries and wages 509,043 - - - 49,739 558,782
Deferred revenue 1,373,352 176,029 - - - 1,549,381
Total liabilities 3,250,239 176,029 74,098 6,958,713 847,022 11,306,101
Fund Balances
Reserved for
Debt service - 1,048,784 - - 938,998 1,987,782
Court technology 270,700 - - - - 270,700
Development agreements - - - - 1,553,876 1,553,876
Betterment 21,054 - - - - 21,054
Injured animals 7,458 - - - - 7,458
Historical preservation - - - - 1,245 1,245
9-1-1 emergency system 22,805 - - - - 22,805
Technology 13,652 - - - - 13,652
Library remodel 4,655 - - - - 4,655
Victim assistance 2,477 - - - - 2,477
Radio rebanding 12,081 - - - - 12,081
Unreserved
Designated for
Contingency 500,000 - - - - 500,000
Emergency 500,000 - - - - 500,000
Undesignated, reported in
General fund 6,288,976 - - - - 6,288,976
Special revenue funds - - - 4,235,420 1,785,577 6,020,997
Capital projects funds - - 2,024,072 - 8,894,444 10,918,516
Total fund balances 7,643,858 1,048,784 2,024,072 4,235,420 13,174,140 28,126,274
Total liabilities and fund balances 10,894,097$ 1,224,813$ 2,098,170$ 11,194,133$ 14,021,162$ 39,432,375$
ASSETS
LIABILITIES AND FUND BALANCES
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2009
The Notes to the Basic Financial Statements
are an integral part of these statements.
17
Total fund balances - governmental funds 28,126,274$
Capital assets used in governmental activities are not current
financial resources and therefore are not reported in the
governmental funds balance sheet. 108,197,212
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.(51,784)
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.(317,825)
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.4,890,542
Revenues earned but not available within sixty days of the year
end are not recognized as revenue on the fund financial
statements.1,549,381
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.(44,421,150)
Net assets of governmental activities 97,972,650$
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, 2009
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 9,532,543$ 3,202,781$ -$ - $ - $ 12,735,324$
Gross receipts tax 4,150,788 - - - 185,417 4,336,205
General sales tax 7,929,209 - - - 4,673,136 12,602,345
Car rental tax - - - 11,632,215 - 11,632,215
Fines and fees 4,086,594 - - - - 4,086,594
Licenses and permits 783,955 - - - - 783,955
Investment income 231,615 16,073 61,390 151,954 281,412 742,444
DEA revenues - - - - 14,883 14,883
Intergovernmental 379,503 - - - - 379,503
Rents and royalties - 975,961 - - 2,702,959 3,678,920
Other revenues 468,818 - - - 152,826 621,644
Total revenues 27,563,025 4,194,815 61,390 11,784,169 8,010,633 51,614,032
Expenditures
Current
Culture and recreation 2,844,008 - - - 1,506,565 4,350,573
Development services 1,117,122 - - - 237,983 1,355,105
General and administrative 8,279,153 - - 7,683,839 267,416 16,230,408
Highways and streets 861,885 - - - - 861,885
Public safety 16,829,412 - - - 1,731,440 18,560,852
Debt service
Principal - 2,300,000 - - 690,000 2,990,000
Interest and fiscal charges - 2,072,477 - - 240,257 2,312,734
Capital outlay - - 616,327 - 5,114,617 5,730,944
Total expenditures 29,931,580 4,372,477 616,327 7,683,839 9,788,278 52,392,501
Excess (deficiency) of
revenues over expenditures (2,368,555) (177,662) (554,937) 4,100,330 (1,777,645) (778,469)
Other financing sources (uses)
Transfers in 1,573,333 197,942 301,846 - 2,388,298 4,461,419
Transfers out (278,884) - - (3,347,962) (969,270) (4,596,116)
Total other financing sources (uses), net 1,294,449 197,942 301,846 (3,347,962) 1,419,028 (134,697)
Net change in fund balances (1,074,106) 20,280 (253,091) 752,368 (358,617) (913,166)
Fund balances, beginning of year 8,717,964 1,028,504 2,277,163 3,483,052 13,532,757 29,039,440
Fund balances, end of year 7,643,858$ 1,048,784$ 2,024,072$ 4,235,420$ 13,174,140$ 28,126,274$
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, 2009
The Notes to the Basic Financial Statements
are an integral part of these statements.
19
Net change in fund balances - total governmental funds (913,166)$
Governmental funds report capital outlays as expenditures. However, in
the statement of activities the cost of those assets is allocated over the
estimated useful lives and reported as depreciation expense. This is the
amount of capital assets recorded in the current period.5,757,951
Governmental funds do not recognize assets contributed by developers.
However, in the statement of activities the fair market value of those assets
is recognized as revenue, then allocated over the estimated useful lives
and reported as depreciation expense.268,130
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.(3,462,246)
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 consumes 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.2,748,942
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.(30,712)
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.15,558
Internal service funds are used by management to charge the costs of
certain activities, such as insurance and fleet management, to individual
funds. The net revenue of the internal service funds is reported with
governmental activities net of the amount allocated to business-type
activities.76,289
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.(143,298)
Change in net assets of governmental activities 4,317,448$
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, 2009
(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
Wastewater Utility Course Funds Funds Funds
Current assets
Deposits and investments 8,723,668$ 1,838,661$ 254,506$ 1,286,365$ 12,103,200$ 7,132,930$
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$29,078 for water and wastewater and
$917 for drainage utility 1,952,485 69,950 65,623 9,505 2,097,563 311,086
Accrued interest receivable 29,127 9,057 - 5,467 43,651 10,249
Prepaids and deposits 1,222 - 9,907 18,117 29,246 300
Inventory 88,326 - 123,903 55,969 268,198 -
Total unrestricted current assets 10,794,828 1,917,668 453,939 1,375,423 14,541,858 7,454,565
Restricted assets
W&WW impact fees - deposits and investments 3,297,062 - - - 3,297,062 -
Revenue bond reserve - deposits and investments 435,738 231,119 - - 666,857 -
Total restricted assets 3,732,800 231,119 - - 3,963,919 -
Total current assets 14,527,628 2,148,787 453,939 1,375,423 18,505,777 7,454,565
Non-current assets
Bond issuance cost 77,674 - 85,800 16,925 180,399 -
Property, plant, and equipment in service, at cost
Land 1,528,966 314,969 692,605 584,532 3,121,072 -
Building 266,059 - 3,402,783 488,275 4,157,117 -
Equipment 908,030 6,400 1,397,703 221,349 2,533,482 7,126,137
Improvements 1,033,401 54,094 8,019,920 7,675,408 16,782,823 -
Construction in progress 79,841 595,421 - - 675,262 -
Utility system 58,233,953 24,478,045 - - 82,711,998 -
Total property, plant, and equipment in service 62,050,250 25,448,929 13,513,011 8,969,564 109,981,754 7,126,137
Less accumulated depreciation 27,524,013 8,573,167 5,050,814 2,923,447 44,071,441 4,169,753
Net property, plant, and equipment
in service 34,526,237 16,875,762 8,462,197 6,046,117 65,910,313 2,956,384
Total non-current assets 34,603,911 16,875,762 8,547,997 6,063,042 66,090,712 2,956,384
Total assets 49,131,539$ 19,024,549$ 9,001,936$ 7,438,465$ 84,596,489$ 10,410,949$
ASSETS
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS – PROPRIETARY FUNDS
SEPTEMBER 30, 2009
(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
Wastewater Utility Course Funds Funds Funds
Current liabilities
Payable from current assets
Accounts payable 921,447$ 86,143$ 107,541$ 25,059$ 1,140,190$ 36,253$
Accrued salaries and wages 261,342 12,282 57,006 16,717 347,347 8,776
Current portion of bonds payable - 210,000 350,000 130,000 690,000 -
Accrued insurance claims - - - - - 515,255
Deferred revenue - - 96,291 560 96,851 -
Current obligations payable from
restricted assets
Current portion of bonds payable 255,000 - - - 255,000 -
Accrued interest 36,157 1,750 42,367 4,088 84,362 -
Total current liabilities 1,473,946 310,175 653,205 176,424 2,613,750 560,284
Non-current liabilities
Customer and escrow deposits 1,410,262 - - - 1,410,262 -
Bonds payable, net of loss on refunding 3,755,599 - 7,467,288 840,210 12,063,097 -
Total non-current liabilities 5,165,861 - 7,467,288 840,210 13,473,359 -
Total liabilities 6,639,807 310,175 8,120,493 1,016,634 16,087,109 560,284
NET ASSETS
Invested in capital assets,
net of related debt 30,951,376 16,896,881 644,909 5,075,907 53,569,073 2,956,384
Restricted for
Impact fees 3,297,062 - - - 3,297,062
Revenue bond reserve 435,738 231,119 - - 666,857
Unrestricted 7,807,556 1,586,374 236,534 1,345,924 10,976,388 6,894,281
Total net assets 42,491,732$ 18,714,374$ 881,443$ 6,421,831$ 68,509,380$ 9,850,665$
Reconciliation to government-wide statement of net assets
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 2,003,739
Net assets of business-type activities 70,513,119$
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, 2009
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
Wastewater Utility Course Funds Funds Funds
Operating revenues
Water service 9,436,938$ - $ - $ - $ 9,436,938$ - $
Wastewater service 5,629,893 - - - 5,629,893 -
Drainage fees - 689,889 - - 689,889 -
Recreation fees - - - 366,610 366,610 -
Insurance premiums - - - - - 4,558,712
Service fees and miscellaneous 1,091,108 - 4,069,151 1,336,586 6,496,845 765,146
Total operating revenues 16,157,939 689,889 4,069,151 1,703,196 22,620,175 5,323,858
Operating expenses
General and administrative 505,069 - - - 505,069 946,408
Water production 4,870,012 - - - 4,870,012 -
Water distribution 647,655 - - - 647,655 -
Utility engineering 737,881 - - - 737,881 -
Sewage collection and treatment 2,616,591 - - - 2,616,591 -
Nondepartmental 2,876,407 - - - 2,876,407 -
Geographic information 426,245 - - - 426,245 -
Service center 1,042,733 - - - 1,042,733 -
Drainage - 286,741 - - 286,741 -
Recreation classes - - - 344,548 344,548 -
Golf course - - 1,385,076 - 1,385,076 -
Pro shop - - 532,253 - 532,253 -
Food and beverage - - 1,319,728 - 1,319,728 -
Conference center - - 299,030 - 299,030 -
Cart operations - - 226,901 - 226,901 -
Texas Star Sports Complex - - - 1,267,625 1,267,625 -
Arbor Daze - - - 56,262 56,262 -
Insurance costs - - - - - 4,079,484
Depreciation 1,647,455 639,349 520,268 297,673 3,104,745 685,727
Amortization 14,757 7,385 49,084 9,262 80,488 -
Total operating expenses 15,384,805 933,475 4,332,340 1,975,370 22,625,990 5,711,619
Operating income (loss) 773,134 (243,586) (263,189) (272,174) (5,815) (387,761)
Nonoperating revenues (expenses)
Impact fees 223,862 - - - 223,862 -
Gain (loss) on sale of capital assets 16,238 - 6,986 (1,237) 21,987 37,909
Investment income 196,817 24,361 14,337 18,556 254,071 120,780
Other revenue - - - - - -
Interest expense (180,820) (14,417) (341,805) (34,914) (571,956) -
Total nonoperating revenues
(expenses), net 256,097 9,944 (320,482) (17,595) (72,036) 158,689
Income (loss) before contributions
and transfers 1,029,231 (233,642) (583,671) (289,769) (77,851) (229,072)
Developer contributed assets 1,662,464 43,282 - - 1,705,746 -
Transfers in - 530,000 223,010 - 753,010 450,000
Transfers out (1,033,623) (34,690) - - (1,068,313) -
Net income (loss) 1,658,072 304,950 (360,661) (289,769) 1,312,592 220,928
Net assets, beginning of year 40,833,660 18,409,424 1,242,104 6,711,600 9,629,737
Net assets, end of year 42,491,732$ 18,714,374$ 881,443$ 6,421,831$ 9,850,665$
Reconciliation to government-wide statement of net assets
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 144,639
Change in net assets of business-type activities 1,457,231$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2009
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
Wastewater Utility Course Funds Funds Funds
OPERATING ACTIVITIES
Cash received from customers 16,375,197$ 690,775$ 4,052,108$ 1,703,239$ 22,821,319$ 5,069,176$
Cash payments to suppliers
for goods and services (11,093,072) (148,055) (2,237,914) (1,313,971) (14,793,012) (4,801,974)
Cash payments to employees
for services (2,954,251) (104,867) (1,602,420) (422,684) (5,084,222) (78,484)
Net cash provided by (used in)
operating activities 2,327,874 437,853 211,774 (33,416) 2,944,085 188,718
NONCAPITAL FINANCING ACTIVITIES
Transfer in - 530,000 223,010 - 753,010 450,000
Transfer out (1,033,623) (34,690) - - (1,068,313) -
Net cash provided by (used in)
noncapital financing activities (1,033,623) 495,310 223,010 - (315,303) 450,000
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees 223,862 - - - 223,862 -
Interest paid on bonds (182,733) (16,000) (342,762) (34,113) (575,608) -
Reduction in bonds payable (245,000) (200,000) (340,000) (125,000) (910,000) -
Purchase of capital assets (587,808) (598,043) (52,077) (66,740) (1,304,668) (662,729)
Proceeds from sale of capital assets 16,243 - 12,285 - 28,528 73,771
Net cash used in capital
and related financing activities (775,436) (814,043) (722,554) (225,853) (2,537,886) (588,958)
INVESTING ACTIVITIES
Proceeds from sale of investment securities - - - - - -
Interest received on investments 283,959 21,891 23,031 18,556 347,437 158,295
Net cash provided by investing
activities 283,959 21,891 23,031 18,556 347,437 158,295
Net change in cash and cash
equivalents 802,774 141,011 (264,739) (240,713) 438,333 208,055
Cash and cash equivalents,
beginning of year 11,653,694 1,928,769 519,245 1,527,078 15,628,786 6,924,875
Cash and cash equivalents, end of year 12,456,468$ 2,069,780$ 254,506$ 1,286,365$ 16,067,119$ 7,132,930$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS – CONTINUED
YEAR ENDED SEPTEMBER 30, 2009
The Notes to the Basic Financial Statements
are an integral part of these statements.
24
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Reconciliation of operating income (loss)
to net cash provided by (used in)
operating activities
Operating income (loss) 773,134$ (243,586)$ (263,189)$ (272,174)$ (5,815)$ (387,761)$
Adjustments to reconcile operating
income (loss) to net cash provided
by (used in) operating activities
Depreciation and amortization 1,662,212 646,734 569,352 306,935 3,185,233 685,727
Changes in assets and liabilities
Accounts receivable and
unbilled revenue 192,552 886 (30,561) 1,279 164,156 (254,682)
Prepaids and deposits 6,913 - 1,181 (1,914) 6,180 (300)
Inventory 13,858 - (28,551) (5,368) (20,061) -
Accounts payable (383,002) 32,331 (43,431) (58,270) (452,372) 24,340
Accrued salaries and
wages 37,501 1,488 (6,545) (3,904) 28,540 (755)
Accrued insurance claims - - - - - 122,149
Customer and escrow
deposit 24,706 - - - 24,706 -
Deferred revenue - - 13,518 - 13,518 -
Net cash provided by (used in)
operating activities 2,327,874$ 437,853$ 211,774$ (33,416)$ 2,944,085$ 188,718$
Noncash financing activities
Developer contributed assets 1,662,464$ 43,282$ - $ - $ 1,705,746$
Reconciliation of cash to balance sheet:
Cash - current 8,723,668$ 1,838,661$ 254,506$ 1,286,365$ 12,103,200$
Cash - capital projects account 3,732,800 231,119 - - 3,963,919
Cash and cash equivalents 12,456,468$ 2,069,780$ 254,506$ 1,286,365$ 16,067,119$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS – FIDUCIARY FUNDS
SEPTEMBER 30, 2009
The Notes to the Basic Financial Statements
are an integral part of these statements.
25
Star Center
Escrow OPEB
Agency Fund Trust Fund Total
Assets
Investments at fair value
Money market account 1,946,983$ 400,005$ 2,346,988$
Total investments 1,946,983 400,005 2,346,988
Total assets 1,946,983$ 400,005 2,346,988
Liabilities
Due to other entities 1,945,414$ 400 1,945,814
Refunds payable 1,569 - 1,569
Total liabilities 1,946,983$ 400 1,947,383
Net Assets
Held in trust for OPEB 399,605$ 399,605$
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
The Notes to the Basic Financial Statements
are an integral part of these statements.
26
Star Center
Escrow OPEB
Agency Fund Trust Fund Total
Additions
Employer contributions -$ 889,861$ 889,861$
Investment earnings
Interest 18,817 5 18,822
Total investment earnings 18,817 5 18,822
Less: investment expense - (400) (400)
Net investment earnings 18,817 (395) 18,422
Total additions 18,817 889,466 908,283
Deductions
Refunds 18,817 - 18,817
Insurance claims - 489,861 489,861
Total deductions 18,817 489,861 508,678
Change in net assets - 399,605 399,605
Net assets - beginning - -
Net assets - ending 399,605$ 399,605$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
27
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Euless (the “City”) was incorporated on February 24, 1953. The City
operates under a Council-Manager form of government and provides the following
services as authorized by its charter: general government, police and fire protection,
emergency ambulance service, road and traffic signal maintenance, water and
wastewater operations, drainage system, parks and recreational facilities, courts, library
services, planning land use, building inspection, and traffic control.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally
accepted in the United States of America 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 sales tax proceeds dedicated to
building and improving City parks and facilities, enhancing library services, and
stimulating economic development activities within the City. The Euless Crime Control
and Prevention District (“District”) is used to account for the accumulation and use of
quarter-cent sales tax proceeds dedicated for crime reduction programs. The
Corporation and the District are reported as special revenue funds of the primary
government. The Boards of Directors of both component units are substantively the
same as the City Council. There are seven directors on each board, four of whom are
council members which constitutes a voting majority of the City Council. The remaining
three board members are residents of the City. Upon dissolution of the Corporation or
the District, the entity’s assets will be distributed to the City. Each component unit
provides all of its services to the City. The financial statements for the units were
obtained from the respective Boards of Directors. Financial information for both entities
may be obtained from the City.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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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
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 are
typically financed. The measurement focus of governmental funds is on the sources,
uses, and balances of current financial resources. The City has presented the following
major governmental funds:
General Fund
The General Fund is the main operating fund of the City. This fund is used to
account for all financial resources not accounted for in other funds. All general
tax revenues and other receipts that are not restricted by law or contractual
agreement to some other fund are accounted for in this fund. General operating
expenditures, fixed charges, and capital improvement costs that are not paid
through other funds are paid from the General Fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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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 property taxes levied by the City. The fund
balance of the Debt Service Fund is reserved to signify the amounts restricted
exclusively for debt service expenditures.
Streets Capital Improvements Capital Project Fund
The Streets Capital Improvements Fund is used to account for street construction
and reconstruction projects and the means of financing said improvements.
Car Rental Tax Fund
The Car Rental Tax Fund is used to account for revenues received from the
collection of short-term motor vehicle rental taxes and the expenditures thereof.
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 Wastewater Fund
Water and Wastewater Fund is used to account for the acquisition, operation and
maintenance of a municipal water and wastewater utility, supported primarily by
user charges 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 BASIC FINANCIAL STATEMENTS
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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. The City also reports two
fiduciary funds in the financial statements. The Stars Center Escrow Fund accounts for
investments that will be held on behalf of the Dallas Stars until the debt issued for the
specific purpose of building the Star Center is fully repaid. The OPEB Trust Fund
accounts for the accumulation and use of resources for benefit payments related to post-
employment health care.
Proprietary funds distinguish operating revenues and expenses from nonoperating
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 nonoperating 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 noncurrent) 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 wastewater 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 they 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 City are also recognized as revenue. All
other governmental fund revenues are recognized when received.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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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 $100 of assessed valuation ($.4700 per $100
last year) and assessed valuation is approximately 100% of estimated value.
Inventories
Inventories, which are recognized as expenditures/expenses as consumed, are stated at
cost (first-in, first-out method) for the General Fund and Enterprise Funds. Inventories
consist primarily of expendable supplies for the General Fund and merchandise for
resale for the Enterprise Funds.
Prepaid Items
Prepaid balances are for payments made by the City in the current year to provide
services occurring in the subsequent fiscal year.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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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
Water and Wastewater System 33 1/3 years
Storm Drainage System 33 1/3 years
Infrastructure 7 - 40 years
Machinery and Equipment 5 - 15 years
Improvements 25 years
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation accrual. The
City's policy is to pay the employee accumulated vacation upon termination. The City
does not pay employees for accumulated sick leave upon termination. 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). The liability for
governmental fund compensated absences is typically liquidated in the general fund, the
hotel/motel fund, the juvenile case fund, the half penny sales tax fund, and the crime
control and prevention district fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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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 court technology 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
toward 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 for which council has
established for a future use.
a. Designated for contingency represents amounts restricted by council for use
when extraordinary contingencies arise that have not been budgeted.
Expenditures must be council approved.
b. Designated for emergency represents amounts restricted by council for use in
extreme emergencies. 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 BASIC FINANCIAL STATEMENTS
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NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures
Deposits and investments
As of September 30, 2009, the City’s portfolio contained the following investments:
% of Rating
Book Value Fair Value Portfolio WAM Rating Agency
Overnight pools
TexPool 12,376,718$ 12,376,718$ 20.71% 44 AAAm S&P
TexStar 10,018,717 10,018,717 16.77% 51 AAAm S&P
LOGIC 70 70 0.00% 50 AAAm S&P
Total Overnight 22,395,505 22,395,505 37.48%
Money Market Fund
Financial Investors Trust 971,697 971,697 1.63% 29 AAAm S&P
Total Money Market 971,697 971,697 1.63%
U.S. Issues
FFCB 5,408,552 5,428,948 9.09% 31 AAA/Aaa Fitch/Moody's
FHLB 24,694,285 24,786,864 41.48% 129 AAA/Aaa S&P/Moody's
FHDN 500,000 499,895 0.84% 1
FMAC 3,056,718 3,069,539 5.14% 16 AAA/Aaa S&P/Moody's
FNMA 2,576,153 2,598,919 4.35% 9 AAA/Aaa S&P/Moody's
Total U.S. Issues 36,235,708 36,384,165 60.89%
Total Portfolio 59,602,910$ 59,751,367$ 100.00% 186
Investment Type
Weighted average maturity (“WAM”) of the portfolio by investment type categories
reflected in the previous table is stated in days. For the investment pools, the Reset
WAM is presented. Investment type acronyms displayed in the previous table are
defined as follows: FFCB – Federal Farm Credit Bank, FHLB – Federal Home Loan
Bank, FHDN – Federal Home Discount Note, FMAC – 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, 2009. At year end, the carrying
amount of the City’s deposits was a credit balance of $476,141 primarily consisting of
outstanding checks, and the respective bank balances totaled $562,968. Of the total
bank balance, the Federal Depository Insurance Corporation (“FDIC”) covered
$250,000. The remainder was covered by collateral with a value of $3,329,907. 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 BASIC FINANCIAL STATEMENTS
35
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 deposit, fully-
collateralized repurchase agreements and reverse repurchase agreements, government
pools, and no-load SEC-registered money market funds consisting of any of these
securities listed.
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, 2009, 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. TexStar is duly
chartered and administered by First Southwest Asset Management, Inc. and JPMorgan
Chase. 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 BASIC FINANCIAL STATEMENTS
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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, 2009, the City
minimized the interest rate risk, the risk relating to the decline in market value of
securities, in the portfolio by limiting the weighted average maturity to 365 days and the
stated maturity to two years or less, with the exception of securities purchases related to
reserve funds; structuring the investment portfolio so that securities 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, 2009.
% of
Maturity Schedule Book Value Fair Value Portfolio
Overnight 23,367,202$ 23,367,202$ 39.11%
up to 6 months 9,176,555 9,214,602 15.42%
6 to 9 months 5,736,639 5,781,702 9.68%
9 to 12 months 6,427,737 6,461,687 10.81%
12 to 15 months 9,389,200 9,416,133 15.76%
15 to 18 months 5,505,577 5,510,041 9.22%
TOTAL 59,602,910$ 59,751,367$ 100.00%
Credit Risk
In compliance with the City’s Investment Policy, as of September 30, 2009, 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 BASIC FINANCIAL STATEMENTS
37
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, 2009, 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 BASIC FINANCIAL STATEMENTS
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NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2009, was as follows:
Balance Balance
September 30, Adjustment/ September 30,
2008 Increase Decrease Transfer 2009
Governmental activities
Capital assets not being depreciated
Land 25,865,466$ 270,521$ -$ -$ 26,135,987$
Construction in progress 5,655,395 3,414,950 - (5,475,182) 3,595,163
Total assets not being depreciated 31,520,861 3,685,471 - (5,475,182) 29,731,150
Capital assets being depreciated
Buildings 40,962,280 1,409,131 - 2,302,029 44,673,440
Improvements other than buildings 4,916,733 40,850 - 19,900 4,977,483
Infrastructure 58,530,032 616,156 - 3,071,214 62,217,402
Machinery and equipment 5,673,887 274,473 (47,769) 82,039 5,982,630
Total capital assets being depreciated 110,082,932 2,340,610 (47,769) 5,475,182 117,850,955
Less accumulated depreciation
Buildings (10,509,296) (1,208,018) - - (11,717,314)
Improvements other than buildings (2,214,045) (212,584) - - (2,426,629)
Infrastructure (22,172,382) (1,773,598) - - (23,945,980)
Machinery and equipment (4,031,077) (268,046) 47,769 - (4,251,354)
Total accumulated depreciation (38,926,800) (3,462,246) 47,769 - (42,341,277)
Total capital assets being
depreciated, net 71,156,132 (1,121,636) - - 75,509,678
Total governmental fund capital
assets, net 102,676,993 2,563,835 - - 105,240,828
Internal service funds
Capital assets being depreciated
Machinery and equipment 7,047,340 662,729 (583,932) - 7,126,137
Total internal service assets
being depreciated 7,047,340 662,729 (583,932) - 7,126,137
Less accumulated depreciation
Machinery and equipment (4,032,096) (685,728) 548,071 - (4,169,753)
Total internal service funds
capital assets, net 3,015,244 (22,999) (35,861) - 2,956,384
Total governmental activities
capital assets, net 105,692,237$ 2,540,836$ (35,861)$ -$ 108,197,212$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 3. CAPITAL ASSETS – CONTINUED
Balance Balance
September 30, September 30,
2008 Increase Decrease Adj/Transfer 2009
Business-type activities
Capital assets not being depreciated
Land 3,121,072$ -$ -$ -$ 3,121,072$
Construction in progress 426,540 629,361 - (380,639) 675,262
Total assets not being depreciated 3,547,612 629,361 - (380,639) 3,796,334
Capital assets being depreciated
Buildings 4,126,530 30,587 - - 4,157,117
Equipment 2,708,777 33,125 (208,420) 2,533,482
Improvements 16,606,446 170,810 - 5,567 16,782,823
Utility system 80,166,443 2,170,483 - 375,072 82,711,998
Total capital assets being
depreciated 103,608,196 2,405,005 (208,420) 380,639 106,185,420
Less accumulated depreciation
Buildings (1,369,846) (125,125) - - (1,494,971)
Equipment (1,863,486) (255,127) 176,495 - (1,942,118)
Improvements (4,807,708) (608,215) - - (5,415,923)
Utility system (33,102,144) (2,116,285) - - (35,218,429)
Total accumulated depreciation (41,143,184) (3,104,752) 176,495 - (44,071,441)
Total capital asssets being
depreciated, net 62,465,012 (699,747) (31,925) 380,639 62,113,979
Total business-type activities
capital assets, net 66,012,624$ (70,386)$ (31,925)$ -$ 65,910,313$
Depreciation expense was charged as direct expense to programs of the primary government as follows:
Governmental activities
General administrative 840,125$
Public safety 611,949
Development services 338,375
Culture and recreation 484,804
Highways and streets 1,186,993
Total depreciation expense - Governmental activities 3,462,246$
Business-type activities
Water and wastewater 1,647,460$
Drainage utility 639,351
Golf course 520,270
Other 297,671
Total depreciation expense - Business-type activities 3,104,752$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
40
NOTE 3. CAPITAL ASSETS – CONTINUED
Outstanding commitments at September 30, 2009, under authorized construction contracts,
were approximately $952,717. These outstanding commitments are to be financed by
available deposit and investment balances, which include proceeds from previous bond
issuances.
NOTE 4. LONG-TERM DEBT
At September 30, 2009, bonds payable consisted of the following individual issues:
Governmental Business-type
$10,290,000 Taxable Series 2000, Revenue
Certificates of Obligation, dated April 1, 2000, due in
annual installments through 2025, bearing interest
rates of 8.00% to 8.125%.8,580,000$ -$
$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%.1,860,000 -
$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%.- 210,000
$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%.1,690,000 -
$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%.3,825,000 -
$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%.2,560,000 -
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
41
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%.- 9,640,000
$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%.2,650,000 -
$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%.3,640,000 -
$2,145,000 Series 2004, Waterworks and Sewer
System Revenue Bonds, dated June 15, 2004, due in
annual installments through 2024, bearing interest
rates of 3.50% to 5.25%.- 1,765,000
$13,900,000 Series 2005, General Obligation
Refunding Bonds, dated March 1, 2005, due in
annual installments through 2020, bearing interest
rates of 2.40% to 5.00%.12,245,000 -
$5,080,000 Series 2006, General Obligation
Refunding Bonds, dated January 30, 2006, due in
annual installments through 2021, bearing interest at
3.93%.5,035,000 -
$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%.1,360,000 -
$2,530,000 Series 2006, Waterworks and Sewer
System Revenue Refunding Bonds, dated January
30, 2006, due in annual installments through 2020,
bearing interest at 3.88%.
- 2,340,000
43,445,000$ 13,955,000$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
42
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, 2009:
Balance Balance Due
Beginning End within
of Year Increases Decreases of Year One Year
Governmental activities*
General obligation bonds 25,985,000$ -$ (1,635,000)$ 24,350,000$ 1,695,000$
Certificates of obligation 14,575,000 - (665,000) 13,910,000 700,000
Sales tax revenue bonds 5,875,000 - (690,000) 5,185,000 715,000
Deferred loss on refunding bonds (1,032,256) - 89,712 (942,544) 89,712
Premium / discount on bonds 428,594 - (36,433) 392,161 37,445
Compensated absences 1,495,820 1,161,158 (1,130,446) 1,526,532 152,653
Total governmental activities 47,327,158$ 1,161,158$ (4,067,167)$ 44,421,149$ 3,389,810$
Business-type activities
Water and sewer revenue bonds 4,350,000$ -$ (245,000)$ 4,105,000 255,000$
Drainage utility revenue bonds 410,000 - (200,000) 210,000 210,000
General obligation refunding bonds 10,105,000 - (465,000) 9,640,000 480,000
Deferred loss on refunding bonds (851,079) - 51,628 (799,451) 51,628
Premium/Discount on bonds (156,547) - 9,098 (147,449) 9,098
Compensated absences 241,268 274,507 (266,948) 248,827 24,883
Total business-type activities 14,098,642 274,507 (1,116,222) 13,256,927 1,030,609
Total primary government 61,425,800$ 1,435,665$ (5,183,389)$ 57,678,076$ 4,420,419$
* Does not include Internal Service Funds.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
43
NOTE 4. LONG-TERM DEBT – CONTINUED
Defeased Debt Outstanding
In prior years, the City defeased certain general obligation bonds and certificates of
obligation 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, 2009, 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
4,810,000$
Annual Requirements to Retire Debt Obligations
The annual aggregate maturities for each bond type for the years subsequent to
September 30, 2009, are as follows:
General Obligation Bonds:
Principal Interest Principal Interest Total
2010 1,695,000$ 1,027,123$ 480,000$ 365,644$ 3,567,767$
2011 1,755,000 964,127 485,000 352,975 3,557,102
2012 1,835,000 896,371 510,000 338,657 3,580,028
2013 1,910,000 822,458 525,000 322,476 3,579,934
2014 1,995,000 737,888 545,000 304,407 3,582,295
2015-2019 11,245,000 2,114,596 2,505,000 1,234,441 17,099,037
2020-2024 3,915,000 236,696 2,675,000 732,126 7,558,822
2025-2029 - - 1,915,000 131,963 2,046,963
24,350,000$ 6,799,259$ 9,640,000$ 3,782,689$ 44,571,948$
Governmental Activities Business-Type Activities
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
44
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Certificates of Obligation:
Principal Interest Principal Interest Total
2010 700,000$ 946,723$ -$ -$ 1,646,723$
2011 750,000 905,848 - - 1,655,848
2012 785,000 862,223 - - 1,647,223
2013 840,000 815,639 - - 1,655,639
2014 890,000 765,472 - - 1,655,472
2015-2019 3,925,000 3,015,708 - - 6,940,708
2020-2024 5,115,000 1,489,681 - - 6,604,681
2025-2029 905,000 73,526 - - 978,526
13,910,000$ 8,874,820$ -$ -$ 22,784,820$
Governmental Activities Business-Type Activities
Revenue Bonds:
Principal Interest Principal Interest Total
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 850,000 88,998 305,000 130,927 1,374,925
2015-2019 1,275,000 84,201 1,720,000 456,872 3,536,073
2020-2024 - - 995,000 123,532 1,118,532
2025-2029 - - - - -
5,185,000$ 844,637$ 4,315,000$ 1,352,005$ 11,696,642$
Governmental Activities Business-Type Activities
Water and sewer revenue bonds authorized and unissued as of September 30, 2009,
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 revenue 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 BASIC FINANCIAL STATEMENTS
45
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, 2009.
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 BASIC FINANCIAL STATEMENTS
46
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
wastewater 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 $6,550,000 and are included as operating
expenses of the water and wastewater fund.
The City is involved in a number of lawsuits arising in the ordinary course of business. In
the opinion of the City's legal counsel and management, any liability resulting from such
litigation would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The water and wastewater enterprise fund historically bears the major portion of the
operating costs of the City's service center, which provides services to all City departments.
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the
operations of those funds.
Non-major Subtotal
General Debt service Streets CIP governmental governmental
Transfers out
General -$ -$ -$ 38,298$ 38,298$
Car rental tax 730,020 197,942 140,000 1,750,000 2,817,962
Water and wastewater 808,623 - - - 808,623
Drainage utility 34,690 - - - 34,690
Golf course - - - - -
Non-major governmental - - 161,846 600,000 761,846
Non-major enterprise - - - - -
Total transfers in 1,573,333$ 197,942$ 301,846$ 2,388,298$ 4,461,419$
Transfers in
Major Governmental
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
47
NOTE 7. INTERFUND TRANSFERS – CONTINUED
Major Enterprise
Internal Drainage Golf Non-major Subtotal Total
service utility course enterprise proprietary transfers out
Transfers out
General 225,000$ -$ 15,586$ -$ 240,586$ 278,884$
Car rental tax - 530,000 - - 530,000 3,347,962
Water and wastewater 225,000 - - - 225,000 1,033,623
Drainage utility - - - - - 34,690
Golf course - - - - - -
Non-major governmental - - 207,424 - 207,424 969,270
Non-major enterprise - - - - - -
Total transfers in 450,000$ 530,000$ 223,010$ -$ 1,203,010$ 5,664,429$
Transfers in
Interfund transfers
Transfers are primarily used to move funds from:
• The general fund to the non-major governmental funds to satisfy grant matching
requirements.
• The car rental tax fund, the water and wastewater fund, and the drainage utility fund
to the general fund for general and administrative charges.
• The car rental tax fund to the debt service fund for the principal and interest on 2001
bonds.
• The car rental tax fund to the streets CIP fund and other non-major governmental
funds to provide funding for approved capital projects.
• The non-major governmental funds to the streets CIP fund and the non-major
governmental funds to provide funding for approved capital projects.
• The general fund and water and wastewater fund to the internal service funds to
cover workers’ compensation, property, general liability, and other similar claims.
• The car rental tax fund to the drainage utility fund to fund approved drainage capital
projects.
• The general fund to the golf course fund to rebate the city portion of sales taxes paid
throughout the year.
• The hotel/motel fund (non-major governmental fund) to the golf course fund for
conference centre debt and operating costs.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
48
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 $4,324,808. During fiscal 2009, the City and
the City's employees contributed approximately $3,225,013 and $1,042,614 respectively, for
medical coverage. The City's contributions are accounted for as interfund services provided
and used. Claims liabilities are based on estimates of the ultimate cost of claims (including
future claim adjustment expenses) that have been reported but not settled, and of claims
that have been incurred but not reported, and are accounted for in the Insurance Internal
Service Fund.
In fiscal year 2006, the City contracted with the Texas Municipal League Intergovernmental
Risk Pool to provide workers’ compensation insurance and effectively discontinued being
self-insured for workers’ compensation claims. This policy has no deductibles, includes all
claims handling and, has a fixed premium.
In fiscal years prior to 2006, the City was self-insured for workers' compensation claims.
Contributions were made to a separate risk management fund by other funds and were
available to pay claims, claim reserves, and administrative costs of the program. The City
remains liable under its self-insurance program for any claims occurring prior to
October 1, 2005.
Changes in the balances of health and dental claims liabilities are as follows:
2009 2008
Unpaid claims, beginning of year 259,998$ 245,473$
Incurred claims 3,260,526 3,205,138
Paid claims (3,033,686) (3,190,613)
Unpaid claims, end of year 486,838$ 259,998$
Settlement amounts have not exceeded insurance coverage for the year ended
September 30, 2009 or any of the three preceding years ended September 30.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
49
NOTE 9. EMPLOYEE RETIREMENT SYSTEM
Plan Description
The City provides pension benefits for all eligible employees through a non-traditional,
joint contributory, hybrid defined benefit-plan in the state-wide Texas Municipal
Retirement System (“TMRS”), an agent multiple-employer public employee retirement
system. The plan provisions that have been adopted by the city are within the options
available in the governing state statutes of TMRS.
TMRS issues a publicly available comprehensive annual financial report that includes
financial statements and required supplementary information (RSI) for TMRS; the report
also provides detailed explanations of the contributions, benefits, and actuarial methods
and assumptions used by the System. This report may be obtained by writing to TMRS,
P.O. Box 149153, Austin, TX 78714-9153 or by calling 800-924-8677; in addition, the
report is available on the TMRS website at www.TMRS.com.
The plan provisions are adopted by the City Council of the City, within the options
available in the state statutes governing TMRS. Plan provisions for the City were as
follows:
Plan Year 2008 Plan Year 2009
Employee deposit rate 7.00% 7.00%
Matching ratio (city to employee) 2 to 1 2 to 1
Years required for vesting 5 5
Service retirement eligibility
(expressed as age/years of service) 60/5,0/20 60/5,0/20
Updated service credit 100% Repeating, Transfers 100% Repeating, Transfers
Annuity increase (to retirees) 70% of CPI Repeating 70% of CPI Repeating
Contribution
Under the state law governing TMRS, the contribution rate for each city is determined
annually by the actuary, using the Projected Unit Credit actuarial cost method. This rate
consists of the normal cost contribution rate and the prior service cost contribution rate,
which is calculated to be a level percent of payroll from year to year. The normal cost
contribution rate finances the portion of an active member's projected benefit allocated
annually; the prior service contribution rate amortizes the unfunded (overfunded)
actuarial liability (asset) over the applicable period for that city. Both the normal cost and
prior service contribution rates include recognition of the projected impact of annually
repeating benefits, such as Updated Service Credits and Annuity Increases.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
50
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Contribution – Continued
The City contributes to the TMRS Plan at an actuarially determined rate. Both the
employees and the City make contributions monthly. 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 serves as the basis for the rate and the calendar year when
the rate goes into effect. The annual pension cost and net pension obligation/(asset) are
as follows:
1. Annual required contribution (ARC) 4,116,079$
2. Interest on net pension obligations -
3. Adjustment to the ARC -
4. Annual pension cost (APC) 4,116,079
5. Contributions made 3,378,311
6. Increase (decrease) in net pension obligation 737,768
7. Net pension obligation/asset, beginning of year -
8. Net pension obligation/asset, end of year 737,768$
Significant assumptions used in preparation of that valuation as well as the previous
valuation are as follows:
Valuation date December 31, 2007 December 31, 2008
Actuarial cost method Projected Unit Credit Projected Unit Credit
Amortization method Level Percent of Payroll Level Percent of Payroll
Remaining amortization period 30 years - closed period 29 years - closed period
Asset valuation method Amortized Cost Amortized Cost
Actuarial assumption
Investment rate of return 7% 7.5%
Project salary increases Varies by age/service Varies by age/service
Inflation 3%
3%
Cost of living adjustments 2.1% 2.1%
Euless payroll growth assumptions 3% 3%
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
51
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Contribution – Continued
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 2008
valuation resulted in an unfunded actuarial accrued liability (“UAAL”) of $29,410,527
which represents an increase over the prior valuation of approximately $2.45 million.
The funded ratio of the city’s plan dropped from 70.55% to 69.54% as a result of the
increased UAAL.
Annual pension cost and percentage of pension cost contributed are as follows:
Annual Net Pension
Pension Percentage Obligation at
Year Cost Contributed Year End
2007 2,830,957$ 100 -
2008 3,187,849 100 -
2009 4,116,079 82 737,768
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
52
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS
In fiscal year 2009, the City implemented Governmental Accounting Standards Board
(“GASB”) Statement 45, “Accounting and Financial Reporting by Employers for
Postemployment Benefits Other than Pensions (“OPEB”) prospectively.
Postemployment Healthcare Plan
Plan description
The City adopted the City of Euless Post-Employment Benefits Trust (the “OPEB Trust”)
by passage of Resolution No. 09-1319 on September 8, 2009 which authorized
participation in the PARS Public Agencies Post-Retirement Health Care Plan Trust,
including the City of Euless Public Agencies Post-Retirement Health Care Plan (the
“Plan”), as part of the City’s Retirement Program. Article III of the Public Agencies Post-
Retirement Health Care Plan Master Plan Document as adopted provides for the
determination of eligibility under the plan to each participating Employer to the extent
provided in the Employer’s applicable policies. The City’s policies with regard to post-
employment healthcare coverage are governed by the City of Euless Medical and Dental
Plan, the City’s group health insurance plan, the benefits of which are established by
management.
The City provides postemployment medical, dental, and vision benefits under the Plan to
eligible retirees and dependents qualifying as one of the eligible classes of dependents
as described in the Plan. To be eligible for coverage under the Plan, an employee must
retire with the City of Euless and be eligible for retirement through TMRS. TMRS
retirement eligibility requirements are described in detail in Note 9. Additionally, written
application to enroll himself/herself and all eligible dependents (for which coverage is
elected) in the Plan must be made by the employee prior to or on the retirement date.
The Plan provides lifetime benefits or until Medicare eligibility is attained. Regardless of
Medicare enrollment status, the Plan will base payment of benefits as though Medicare
were responsible for primary payment of benefits insomuch as allowed by Federal law.
The Plan is a single-employer defined benefit healthcare plan administered by the City
Manager, his/her successor, or his/her designee. Separate financial statements for the
Plan are not issued, but rather are included in the financial statements of the City which
are available on-line at http://www.eulesstx.gov/finance/cafr.htm.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
53
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Postemployment Healthcare Plan – Continued
Plan description – Continued
The OPEB Trust is a multiple-employer trust arrangement established to provide
economies of scale and efficiency of administration to public agencies. The OPEB Trust
is established as a tax-exempt trust within the meaning of Section 115 of the Internal
Revenue Code and is intended to hold the assets used to fund the City’s post-
employment benefits offered by the City to its employees as specified in the City’s
policies. The OPEB Trust is administered by Public Agency Retirement Services
(“PARS”) pursuant to the Trust Agreement adopted on September 8, 2009 by the City
Council with passage of Resolution No. 09-1319. Upon adoption of the Trust
Agreement, a separate Agency Account was established under the OPEB Trust for the
City, and all assets of the Trust attributable to the City are to be held in the City’s Agency
Account. The assets of the Trust are available only to pay postemployment healthcare
benefits of eligible employees and dependents of the City and other associated
administrative costs.
Funding Policy
A participant in the OPEB Trust is required from time-to-time to contribute to its Agency
Account an amount determined by such Participant at its sole discretion. Such amount
may, but need not, equal such Participant’s annual required contribution (“ARC”) as
determined in accordance with GASB 45. However, it is currently the intent of the Plan
Administrator to annually fund an amount equal to, or in excess of, the ARC. This intent
is subject to change and is subject to annual appropriation.
Contribution requirements of Plan members and the City are determined by the Plan
Administrator and may be amended by same from time to time. Plan members
contribute:
Medical
and Dental Vision
Retiree Only 492.98$ 6.74$
Retiree plus Children 862.72 11.03
Retiree plus Spouse 1,084.56 13.11
Retiree plus Family 1,429.66 18.50
Monthly Premiums
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
54
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Policy – Continued
Retired employees meeting all eligibility requirements as set forth in the Plan that were
hired prior to October 1, 2006 and are either:
a) Retired and enrolled in the Plan on or prior to September 30, 2007; or
b) Retired and not enrolled in the Plan on or prior to September 30, 2007 and meet
guidelines for reinstatement to the Plan; or
c) Employees who were not retired as September 30, 2007 that retire with at least ten
years of service to the City of Euless and have a combined age and years of service
equal to at least 70;
will qualify for a service discount on their total premium, subject to annual appropriation,
as set forth in the following:
Premium Discounts
Service Retiree Only
Retiree plus
Children
Retiree plus
Spouse
Retiree plus
Family
10-14 years 15% 30% 30% 30%
15-19 years 25% 40% 40% 40%
20-24 years 35% 50% 50% 50%
25-29 years 50% 65% 65% 65%
30+ years 60% 75% 75% 75%
Retired employees meeting all eligibility requirements as set forth in the Plan that were
hired after October 1, 2006 retiring with a minimum of 20 years of service with a
combined age and years of service to the City of Euless equal to at least 80 qualify for a
service discount on their total premium, subject to annual appropriation, as set forth in
the following:
Premium Discounts
Service Retiree Only
Retiree plus
Children
Retiree plus
Spouse
Retiree plus
Family
20-24 years 35% 50% 50% 50%
25-29 years 50% 65% 65% 65%
30+ years 60% 75% 75% 75%
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
55
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Policy – Continued
Retirees are permitted to participate with active employees in the healthcare plan but
retirees must pay all premiums (less applicable discounts) assigned to them. The city
will continue to apply the applicable discount to surviving spouse/dependents based
upon a deceased employee’s years of service.
Annual OPEB Cost and Net OPEB Obligation
The City’s annual OPEB cost (expense) for the Plan is calculated based on the ARC, an
amount actuarially determined in accordance with the parameters of GASB 45. The
ARC represents the level of funding that, if paid on an on-going basis, is projected to
cover normal cost each year and amortize any unfunded actuarial liabilities (or funding
excess) over a period not to exceed thirty years. The following table represents the
components of the City’s annual OPEB cost for the fiscal year, the amount actually
contributed to the Plan, and any changes in the City’s net OPEB obligation. Because
fiscal year 2009 is the Plan implementation year, the OPEB obligation at the beginning
of the year is zero.
Annual required contribution 596,535$
Interest on net OPEB obligation 5
Adjustments to annual required contribution -
Annual OPEB cost (expense) 596,540
Contributions made 889,861
Change in OPEB obligation (293,321)
Net OPEB obligation (asset) - beginning of year -
Net OPEB obligation (asset) - end of year (293,321)$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
56
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Annual OPEB Cost and Net OPEB Obligation – Continued
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for 2009 are as follows:
Discount Annual % of Annual Net OPEB
Fiscal Year Ended Rate OPEB Cost Cost Contributed Obligation
September 30, 2009 7% 596,540$ 149.17% (293,321)$
Funding Status and Funding Progress
As of October 1, 2007, the most recent actuarial valuation date, the plan was 100%
unfunded. The actuarial value of assets was $0, resulting in an unfunded actuarial
accrued liability (“UAAL”) of $5,785,746. The covered payroll (annual payroll of active
employees covered by the Plan) was $22,820,478, and the ratio of the UAAL to the
covered payroll was 25.36%.
Actuarial valuations of an ongoing plan involve estimates of the value of the reported
amounts and assumptions about the probability of occurrences of events far into the
future. Examples include, but are not limited to, future employment, mortality, and
healthcare cost trends. Amounts determined regarding the funded status of the plan and
the annual required contributions of the employer are subject to continual revision as
actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary
information 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 liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types
of benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members at that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
plan assets, consistent with the long-term perspective of the calculations.
In the October 1, 2007 actuarial valuation, the unit credit actuarial cost method was
used. The actuarial assumptions include a 7% investment rate of return (compounded
annually net after expenses) and an annual healthcare cost trend rate of 9.54% (5.8%
for dental) initially, declining by decrements to an ultimate rate of 5.34% (3.93% for
dental) after ten years (eight years for dental). The UAAL is being amortized over a
thirty-year period utilizing a level dollar amortization method.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
57
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Supplemental Death Benefits Plan
Plan Description
The City also participates in the cost sharing multiple-employer defined benefit group-
term life insurance plan operated by the Texas Municipal Retirement System (“TMRS”)
known as the Supplemental Death Benefits Fund (“SDBF”). The City elected, by
ordinance, to provide group-term life insurance coverage to both current and retired
employees. The City may terminate coverage under and discontinue participation in the
SDBF by adopting an ordinance before November 1 of any year to be effective the
following January 1.
The death benefit for active employees provides a lump-sum payment approximately
equal to the employee’s annual salary (calculated based on the employee’s actual
earnings, for the 12-month period preceding the month of death); retired employees are
insured for $7,500; this coverage is an OPEB.
Funding Policy
The funding policy for the SDBF program is to assure that adequate resources are
available to meet all death benefit payments for the upcoming year; the intent is not to
pre-fund retiree term life insurance during employees’ entire careers. Contributions are
utilized to fund active member deaths on a pay-as-you-go basis. Any excess
contributions over payments then become net assets available for OPEB.
Contributions
Contribution requirements of the participating employers are established and may be
amended by the TMRS Board of Trustees. The City is required to contribute at a rate
assessed each year by the TMRS Board of Trustees, currently .03% of covered payroll.
The TMRS Board of Trustees sets the employer contribution rate based on the mortality
and service experience of all employees by the plan and the demographics specific to
the workforce of the City. There is a one-year delay between the actuarial valuation that
serves as the basis for the employer contribution rate and the calendar year when the
rate goes into effect.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
58
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Contributions – Continued
Contributions are made monthly based on covered payroll of employee members of the
City. The City contributes to the SDBF at the contractually required rate as determined
by the annual actuarial valuation. The rate is equal to the cost of providing one-year
term life insurance. The City’s contributions rates for the last three calendar/plan years
are as follows:
Schedule of Contribution Rates
(Retiree-only portion of the rate)
Plan Annual Required Actual Contribution % of ARC
Year Contribution (Rate) Made (Rate) Contributed
2006 0.03% 0.03% 100%
2007 0.03% 0.03% 100%
2008 0.03% 0.03% 100%
NOTE 11. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2009, the following individual funds had an excess of expenditures
over appropriations:
Police drug enforcement fund (10,632)$
Public safety grant funds (27,681)
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN
TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2009
59
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
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%
2008 67,152,370 96,562,897 29,410,527 69.54% 22,690,833 129.61%
The Schedule of Funding Progress summarizes the actuarial value of the plan's assets and
actuarial accrued liability as of December 31, 2008 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, 2008, the plan's funded ratio dropped to 69.54%.
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, 2008, the plan's ratio of the UAAL to its covered payroll decreased to 129.61%.
For the actuarial valuation dated December 31, 2008, 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
2009 2008 2007 2006 2005
City's annual contribution stated
as a % of covered payroll 15.19% 14.51% 14.25% 14.07% 13.96%
Note Source: TMRS Comprehensive Annual Report for the Year Ending December 31, 2008 and City records.
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2009
60
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax
Current and delinquent taxes 9,525,773$ 9,525,773$ 9,459,891$ (65,882)$
Penalty and interest 85,000 85,000 72,652 (12,348)
Total property tax 9,610,773 9,610,773 9,532,543 (78,230)
Gross receipts tax
Telephone line access fee 415,000 415,000 393,566 (21,434)
Electric company 1,650,000 1,650,000 1,667,358 17,358
Gas company 400,000 400,000 403,668 3,668
Cable TV 330,000 330,000 621,449 291,449
City garbage service 169,750 169,750 166,451 (3,299)
Water and wastewater system 845,571 845,571 808,623 (36,948)
Others 98,750 98,750 89,673 (9,077)
Total gross receipts tax 3,909,071 3,909,071 4,150,788 241,717
General sales tax 9,662,500 9,662,500 7,929,209 (1,733,291)
Fines and fees
Municipal court fines 2,861,000 2,861,000 2,757,109 (103,891)
Jail income 250,000 250,000 254,432 4,432
Dog licenses and pound fees 14,000 14,000 11,673 (2,327)
Ambulance fees 750,000 750,000 880,402 130,402
Library fees 35,000 35,000 38,098 3,098
Zoning fees 13,000 13,000 (10,119) (23,119)
Deferred adjudication fee 175,000 175,000 154,999 (20,001)
Total fines and fees 4,098,000 4,098,000 4,086,594 (11,406)
Licenses and permits
Building permits 500,000 500,000 482,658 (17,342)
Miscellaneous permits 212,000 212,000 209,230 (2,770)
Minimum housing 91,000 91,000 92,067 1,067
Total licenses and permits 803,000 803,000 783,955 (19,045)
Investment income 300,000 300,000 231,615 (68,385)
Intergovernmental 343,874 343,874 379,503 35,629
Other revenues
Rental income 265,000 265,000 268,612 3,612
Swimming pools 15,000 15,000 15,473 473
Miscellaneous income 135,500 135,500 184,733 49,233
Total other revenues 415,500 415,500 468,818 53,318
Total revenues 29,142,718$ 29,142,718$ 27,563,025$ (1,579,693)$
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2009
(CONTINUED)
61
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Expenditures
Current
Culture and recreation 3,086,317$ 3,086,317$ 2,844,008$ 242,309$
Development services 1,229,038 1,229,038 1,117,122 111,916
General and administrative 9,629,668 9,629,668 8,279,153 1,350,515
Highways and streets 1,054,457 1,054,457 861,885 192,572
Public safety 17,374,245 17,374,245 16,829,412 544,833
Total expenditures 32,373,725 32,373,725 29,931,580 2,442,145
Excess (deficiency) of
revenues over expenditures (3,231,007) (3,231,007) (2,368,555) 862,452
Other financing sources (uses)
Transfers in 1,610,591 1,610,591 1,573,333 (37,258)
Transfers out (402,738) (402,738) (278,884) 123,854
Total other financing
sources (uses), net 1,207,853 1,207,853 1,294,449 86,596
Net change in fund balance (2,023,154) (2,023,154) (1,074,106) 949,048
Fund balance,
beginning of year 8,717,964 8,717,964 8,717,964 -
Fund balance, end of year 6,694,810$ 6,694,810$ 7,643,858$ 949,048$
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE – CAR RENTAL TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2009
62
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Car rental tax 12,750,000$ 12,750,000$ 11,632,215$ (1,117,785)$
Investment income 200,000 200,000 151,954 (48,046)
Total revenues 12,950,000 12,950,000 11,784,169 (1,165,831)
Expenditures
General and administrative 8,500,000 8,500,000 7,683,839 816,161
Total expenditures 8,500,000 8,500,000 7,683,839 816,161
Excess (deficiency) of
revenues over expenditures 4,450,000 4,450,000 4,100,330 (349,670)
Other financing uses
Transfers out (3,347,962) (3,347,962) (3,347,962) -
Total other
financing uses (3,347,962) (3,347,962) (3,347,962) -
Net change in fund balance 1,102,038 1,102,038 752,368 (349,670)
Fund balance, beginning of year 3,483,052 3,483,052 3,483,052 -
Fund balance, end of year 4,585,090$ 4,585,090$ 4,235,420$ (349,670)$
Budgeted Amounts
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2009
63
NOTE 1. BUDGET BASIS OF ACCOUNTING
The City Council adheres to the following procedures in establishing budgetary data
reflected in the financial statements:
1. Prior to August 1, the City Manager submits to the City Council a proposed operating
budget for the fiscal year commencing the following October 1. The operating
budget includes proposed expenditures and expenses and means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to September 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
64
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.
65
NON-MAJOR GOVERNMENTAL FUNDS – Continued
CAPITAL PROJECTS
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 $2,000,000 in 1990.
Street Assessments Fund – to account for receipt of funds for special assessment
collection and subsequent construction of improvements to various street and drainage
projects.
Half-Penny Sales Tax Capital Projects Fund – to account for bond proceeds to be
expended for construction projects funded by the Euless Development Corporation, a
component unit of the City of Euless.
Developers' Contribution Fund – to account for funds received for the purpose of making
new and future improvements to various development areas within the City.
Car Rental Capital Projects Fund – to account for building and infrastructure projects
that are funded from the short-term motor vehicle tax.
Police Facility Construction Fund – to account for the construction of a police facility.
General Obligation Capital Projects Fund – to account for various construction projects
within the City.
Redevelopment Fund – to account for any land acquisition and revitalization projects
designed to enhance development and promote redevelopment throughout the
community.
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
66
Police Crime
Drug Half Control and Public Special
Hotel/ Enforce- Penny Prevention Safety Juvenile Revenue
Motel ment Sales Tax District Grant Case Funds
Fund Fund Fund Fund Fund Fund Total
ASSETS
Deposits and investments 104,769$ 336,541$ 1,413,399$ 116,563$ 61,784$ 17,818$ 2,050,874$
Accounts receivable 48,126 - - - 13,340 4,086 65,552
Accrued interest receivable - - - - - - -
Prepaids 424 - 4,305 50 - - 4,779
Due from other governments - - 510,298 232,279 - - 742,577
Total assets 153,319$ 336,541$ 1,928,002$ 348,892$ 75,124$ 21,904$ 2,863,782$
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable 8$ -$ 82,043$ 2,086$ -$ 4,086$ 88,223$
Accrued salaries and wages - - 19,584 28,815 1,340 - 49,739
Total liabilities 8 - 101,627 30,901 1,340 4,086 137,962
Fund Balances:
Reserved for:
Debt service - - 938,998 - - - 938,998
Historical preservation 1,245 - - - - - 1,245
Development agreements - - - - - - -
Unreserved, undesignated 152,066 336,541 887,377 317,991 73,784 17,818 1,785,577
Total fund balances 153,311 336,541 1,826,375 317,991 73,784 17,818 2,725,820
Total liabilities and fund balances 153,319$ 336,541$ 1,928,002$ 348,892$ 75,124$ 21,904$ 2,863,782$
Special Revenue Funds
67
Park
Improvements Half-Penny Car Rental Police G.O. Capital Total
Certificates Street Sales Tax Developers' Capital Facility Capital Re- Project Non-major
of Obligation Assessments Capital Contribution Projects Construction Projects development Funds Governmental
Fund (1990) Fund Projects Fund Fund Fund Fund Fund Totals Funds
125$ 44,970$ 3,360,613$ 1,553,876$ 99,589$ 108,182$ 5,638,301$ 308,907 11,114,563$ 13,165,437$
- - - - - - - - - 65,552
- - 21,966 - - - 15,751 5,100 42,817 42,817
- - - - - - - - - 4,779
- - - - - - - - - 742,577
125$ 44,970$ 3,382,579$ 1,553,876$ 99,589$ 108,182$ 5,654,052$ 314,007$ 11,157,380$ 14,021,162$
-$ -$ 704,191$ -$ 4,869$ -$ -$ -$ 709,060$ 797,283$
- - - - - - - - - 49,739
- - 704,191 - 4,869 - - - 709,060 847,022
- - - - - - - - - 938,998
- - - - - - - - - 1,245
- - - 1,553,876 - - - - 1,553,876 1,553,876
125 44,970 2,678,388 - 94,720 108,182 5,654,052 314,007 8,894,444 10,680,021
125 44,970 2,678,388 1,553,876 94,720 108,182 5,654,052 314,007 10,448,320 13,174,140
125$ 44,970$ 3,382,579$ 1,553,876$ 99,589$ 108,182$ 5,654,052$ 314,007$ 11,157,380$ 14,021,162$
Capital Projects Funds
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES – NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2009
68
Police Crime
Drug Half Control and Public Special
Hotel/ Enforce- Penny Prevention Safety Juvenile Revenue
Motel ment Sales Tax District Grant Case Funds
Fund Fund Fund Fund Fund Fund Totals
Revenues
Gross receipts tax 185,417$ - $ - $ - $ - $ - $ 185,417$
General sales tax - - 3,171,683 1,501,453 - - 4,673,136
Investment income 930 2,148 10,949 1,039 - - 15,066
DEA revenues - 14,883 - - - - 14,883
Rents and royalties - - - - - -
Other revenues 53 - - - 81,337 60,428 141,818
Total revenues 186,400 17,031 3,182,632 1,502,492 81,337 60,428 5,030,320
Expenditures
Culture and recreation - - 1,506,565 - - - 1,506,565
Development services - - 237,983 - - - 237,983
General and administrative 80,289 - 144,517 - - 42,610 267,416
Public safety - 15,632 - 1,595,776 120,032 - 1,731,440
Debt service
Principal - - 690,000 - - - 690,000
Interest and fiscal charges - - 240,257 - - - 240,257
Capital outlay - - - 59,975 - - 59,975
Total expenditures 80,289 15,632 2,819,322 1,655,751 120,032 42,610 4,733,636
Excess (deficiency) of
revenues over expenditures 106,111 1,399 363,310 (153,259) (38,695) 17,818 296,684
Other financing sources (uses)
Transfers in - - - - 38,298 - 38,298
Transfers out (207,425) - (600,000) - - - (807,425)
Total other
financing sources (uses), net (207,425) - (600,000) - 38,298 - (769,127)
Net change in fund balances (101,314) 1,399 (236,690) (153,259) (397) 17,818 (472,443)
Fund balance,
beginning of year 254,625 335,142 2,063,065 471,250 74,181 - 3,198,263
Fund balance, end of year 153,311$ 336,541$ 1,826,375$ 317,991$ 73,784$ 17,818$ 2,725,820$
Special Revenue Funds
69
Park
Improvements Half-Penny Car Rental Police G.O. Capital Total
Certificates of Street Sales Tax Developers' Capital Facility Capital Re- Project Non-major
Obligation Assessments Capital Contribution Projects Construction Projects development Funds Governmental
Fund (1990) Fund Projects Fund Fund Fund Fund Fund Totals Funds
- $ - $ - $ - $ - $ - $ - $ - $ - $ 185,417$
- - - - - - - - - 4,673,136
- - 128,931 33,675 14,425 338 76,851 12,126 266,346 281,412
- - - - - - - - - 14,883
- - - - - - 2,702,959 - 2,702,959 2,702,959
- - - 11,008 - - - - 11,008 152,826
- - 128,931 44,683 14,425 338 2,779,810 12,126 2,980,313 8,010,633
- - - - - - - - - 1,506,565
- - - - - - - - - 237,983
- - - - - - - - - 267,416
- - - - - - - - - 1,731,440
- - - - - - - - - 690,000
- - - - - - - - - 240,257
- - 3,073,249 - 1,650,044 - 109,409 221,940 5,054,642 5,114,617
- - 3,073,249 - 1,650,044 - 109,409 221,940 5,054,642 9,788,278
- - (2,944,318) 44,683 (1,635,619) 338 2,670,401 (209,814) (2,074,329) (1,777,645)
- - 600,000 - - - 1,750,000 - 2,350,000 2,388,298
- - - (161,845) - - - - (161,845) (969,270)
- - 600,000 (161,845) - - 1,750,000 - 2,188,155 1,419,028
- - (2,344,318) (117,162) (1,635,619) 338 4,420,401 (209,814) 113,826 (358,617)
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$ 2,678,388$ 1,553,876$ 94,720$ 108,182$ 5,654,052$ 314,007$ 10,448,320$ 13,174,140$
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, 2009
70
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax 305,000$ 305,000$ 185,417$ (119,583)$
Investment income 3,750 3,750 930 (2,820)
Other revenues - - 53 53
Total revenues 308,750 308,750 186,400 (122,350)
Expenditures
General and administrative 92,500 92,500 80,289 12,211
Total expenditures 92,500 92,500 80,289 12,211
Other financing uses
Transfers out (207,425) (207,425) (207,425) -
Total other financing uses (207,425) (207,425) (207,425) -
Net change in fund balance 8,825 8,825 (101,314) (110,139)
Fund balance, beginning of year 254,625 254,625 254,625 -
Fund balance, end of year 263,450$ 263,450$ 153,311$ 110,139)($
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, 2009
71
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income 8,000 8,000 2,148 (5,852)
DEA revenues - $ - $ 14,883$ 14,883$
Total revenues 8,000 8,000 17,031 9,031
Expenditures
Public safety 5,000 5,000 15,632 (10,632)
Total expenditures 5,000 5,000 15,632 (10,632)
Net change in fund balance 3,000 3,000 1,399 (1,601)
Fund balance, beginning of year 335,142 335,142 335,142 -
Fund balance, end of year 338,142$ 338,142$ 336,541$ (1,601)$
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, 2009
72
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 3,865,000$ 3,865,000$ 3,171,683$ (693,317)$
Investment income 64,500 64,500 10,949 (53,551)
Total revenues 3,929,500 3,929,500 3,182,632 (746,868)
Expenditures
Culture and recreation 1,589,655 1,589,655 1,506,565 83,090
Development services 406,234 406,234 237,983 168,251
General and administrative 496,631 496,631 144,517 352,114
Debt service:
Principal 690,000 690,000 690,000 -
Interest and fiscal charges 241,987 241,987 240,257 1,730
Total expenditures 3,424,507 3,424,507 2,819,322 605,185
Other financing uses
Transfers out (600,000) (600,000) (600,000) -
Total other
financing uses (600,000) (600,000) (600,000) -
Net change in fund balance (95,007) (95,007) (236,690) (141,683)
Fund balance, beginning of year 2,063,065 2,063,065 2,063,065 -
Fund balance, end of year 1,968,058$ 1,968,058$ 1,826,375$ 141,683)($
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
CRIME CONTROL AND PREVENTION DISTRICT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2009
73
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 1,800,000$ 1,800,000$ 1,501,453$ (298,547)$
Investment income 7,500 7,500 1,039 (6,461)
Total revenues 1,807,500 1,807,500 1,502,492 (305,008)
Expenditures
Public safety 1,789,540 1,789,540 1,595,776 193,764
Capital outlay 82,733 82,733 59,975 22,758
Total expenditures 1,872,273 1,872,273 1,655,751 216,522
Net change in fund balance (64,773) (64,773) (153,259) (88,486)
Fund balance, beginning of year 471,250 471,250 471,250 -
Fund balance, end of year 406,477$ 406,477$ 317,991$ 88,486)($
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
PUBLIC SAFETY GRANT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2009
74
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues 79,613$ 79,613$ 81,337$ 1,724$
Total revenues 79,613 79,613 81,337 1,724
Expenditures
Public safety 92,351 92,351 120,032 (27,681)
Total expenditures 92,351 92,351 120,032 (27,681)
Other financing sources
Transfers in 12,738 12,738 38,298 25,560
Total other financing sources 12,738 12,738 38,298 25,560
Net change in fund balance - - (397) (397)
Fund balance, beginning of year 74,181 74,181 74,181 -
Fund balance, end of year 74,181$ 74,181$ 73,784$ (397)$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
JUVENILE CASE SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2009
75
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues 55,000$ 55,000$ 60,428$ 5,428$
Total revenues 55,000 55,000 60,428 5,428
Expenditures
General and administrative 53,673 53,673 42,610 11,063
Total expenditures 53,673 53,673 42,610 11,063
Net change in fund balance 1,327 1,327 17,818 16,491
Fund balance, beginning of year - - - -
Fund balance, end of year 1,327$ 1,327$ 17,818$ 16,491$
Budgeted Amounts
76
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.
Texas Star Sports Complex – to account for the operation and maintenance of
Softball World and The Parks at Texas Star Complexes, 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, 2009
(1 of 2)
77
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
ASSETS
Current assets
Deposits and investments 345,970$ 911,357$ 29,038$ 1,286,365$
Accounts receivable and
unbilled revenue 1,894 7,611 - 9,505
Accrued interest receivable - 5,467 - 5,467
Prepaids and deposits 825 17,292 - 18,117
Inventory - 55,969 - 55,969
Total current assets 348,689 997,696 29,038 1,375,423
Non-current assets
Bond issuance cost - 16,925 - 16,925
Property, plant, and equipment, at cost
Land - 584,532 - 584,532
Building - 488,275 - 488,275
Equipment 89,658 131,691 - 221,349
Improvements - 7,675,408 - 7,675,408
Construction in progress - - - -
Total property, plant, and equipment 89,658 8,879,906 - 8,969,564
Less accumulated depreciation 62,393 2,861,054 - 2,923,447
Net property, plant, and equipment 27,265 6,018,852 - 6,046,117
Total non-current assets 27,265 6,035,777 - 6,063,042
Total assets 375,954$ 7,033,473$ 29,038$ 7,438,465$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2009
CONTINUED
(2 of 2)
78
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable 3,007$ 22,052$ - $ 25,059$
Accrued salaries and wages 110 16,607 - 16,717
Current portion of bonds payable - 130,000 - 130,000
Deferred revenue - 560 - 560
Accrued interest - 4,088 - 4,088
Total current liabilities 3,117 173,307 - 176,424
Non-current liabilities
Bonds payable - 840,210 - 840,210
Total non-current liabilities - 840,210 - 840,210
Total liabilities 3,117 1,013,517 - 1,016,634
NET ASSETS
Invested in capital assets,
net of related debt 27,265 5,048,642 - 5,075,907
Unrestricted 345,572 971,314 29,038 1,345,924
Total net assets 372,837$ 6,019,956$ 29,038$ 6,421,831$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2009
79
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
Operating revenues
Recreation fees 366,610$ - $ - $ 366,610$
Service fees and miscellaneous - 1,287,523 49,063 1,336,586
Total operating revenues 366,610 1,287,523 49,063 1,703,196
Operating expenses
Recreation classes 344,548 - - 344,548
Texas Star Sports Complex - 1,267,625 - 1,267,625
Arbor Daze - - 56,262 56,262
Depreciation 9,523 288,150 - 297,673
Amortization - 9,262 - 9,262
Total operating expenses 354,071 1,565,037 56,262 1,975,370
Operating income(loss) 12,539 (277,514) (7,199) (272,174)
Nonoperating revenues (expenses)
Investment income 2,124 16,266 166 18,556
Gain (loss) on sale of capital asset - (1,237) - (1,237)
Interest expense - (34,914) - (34,914)
Total nonoperating revenues
(expenses), net 2,124 (19,885) 166 (17,595)
Change in net assets 14,663 (297,399) (7,033) (289,769)
Net assets, beginning of year 358,174 6,317,355 36,071 6,711,600
Net assets, end of year 372,837$ 6,019,956$ 29,038$ 6,421,831$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2009
80
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
OPERATING ACTIVITIES
Cash received from customers 367,580$ 1,286,596$ 49,063$ 1,703,239$
Cash payments to suppliers for goods and services (263,963) (993,746) (56,262) (1,313,971)
Cash payments to employees for services (82,293) (340,391) - (422,684)
Net cash provided by (used in) operating activities 21,324 (47,541) (7,199) (33,416)
CAPITAL AND RELATED FINANCING ACTIVITIES
Interest paid on bonds - (34,113) - (34,113)
Reduction in bonds payable - (125,000) - (125,000)
Purchase of capital assets - (66,740) - (66,740)
Net cash used in capital
and related financing activities - (225,853) - (225,853)
INVESTING ACTIVITIES
Interest received on investments 2,124 16,266 166 18,556
Net cash provided by investing activities 2,124 16,266 166 18,556
Net increase (decrease) in cash and
and cash equivalents 23,448 (257,128) (7,033) (240,713)
Cash and cash equivalents, beginning of year 322,522 1,168,485 36,071 1,527,078
Cash and cash equivalents, end of year 345,970$ 911,357$ 29,038$ 1,286,365$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss) 12,539$ (277,514)$ (7,199)$ (272,174)$
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation and amortization 9,523 297,412 - 306,935
Changes in assets and liabilities:
Accounts receivable and unbilled revenue 971 308 - 1,279
Prepaids and deposits (805) (1,109) - (1,914)
Inventory - (5,368) - (5,368)
Accounts payable (510) (57,760) - (58,270)
Accrued salaries and wages (394) (3,510) - (3,904)
Net cash provided by (used in) operating activities 21,324$ (47,541)$ (7,199)$ (33,416)$
81
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by
one department to other departments of the City 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 workers’ 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
SEPTEMBER 30, 2009
82
Equipment Risk
Replacement Insurance Management
Fund Fund Fund Total
Deposits and investments 2,151,458$ 3,570,467$ 1,411,005$ 7,132,930$
Accounts receivable - 311,086 - 311,086
Accrued interest receivable 856 9,393 - 10,249
Prepaid items - 300 - 300
Total current assets 2,152,314 3,891,246 1,411,005 7,454,565
Property, plant, and equipment, at cost
Equipment 7,060,157 54,956 11,024 7,126,137
Less accumulated depreciation 4,103,773 54,956 11,024 4,169,753
Net property, plant, and equipment 2,956,384 - - 2,956,384
Total assets 5,108,698 3,891,246 1,411,005 10,410,949
Accounts payable 5,163 3,223 27,867 36,253
Accrued salary and wages - 6,774 2,002 8,776
Accrued insurance claims - 486,838 28,417 515,255
Total current liabilities 5,163 496,835 58,286 560,284
Invested in capital assets,
net of related debt 2,956,384 - - 2,956,384
Unrestricted 2,147,151 3,394,411 1,352,719 6,894,281
Total net assets 5,103,535$ 3,394,411$ 1,352,719$ 9,850,665$
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, 2009
83
Equipment Risk
Replacement Insurance Management
Fund Fund Fund Total
Operating revenues
Insurance premiums - $ 4,267,627$ 291,085$ 4,558,712$
Service fees and miscellaneous 760,687 4,459 - 765,146
Total operating revenues 760,687 4,272,086 291,085 5,323,858
Operating expenses
General and administrative 58,901 828,877 58,630 946,408
Insurance costs - 3,649,291 430,193 4,079,484
Depreciation 685,727 - - 685,727
Total operating expenses 744,628 4,478,168 488,823 5,711,619
Operating income (loss) 16,059 (206,082) (197,738) (387,761)
Nonoperating revenues
Gain on sale of capital assets 37,909 - - 37,909
Investment income 21,021 77,401 22,358 120,780
Total nonoperating revenues 58,930 77,401 22,358 158,689
Income (loss) before
transfers 74,989 (128,681) (175,380) (229,072)
Other financing sources
Transfers in - - 450,000 450,000
Change in net assets 74,989 (128,681) 274,620 220,928
Net assets, beginning of year 5,028,546 3,523,092 1,078,099 9,629,737
Net assets, end of year 5,103,535$ 3,394,411$ 1,352,719$ 9,850,665$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2009
84
Risk
Equipment Manage-
Replacement Insurance ment
Fund Fund Fund Total
OPERATING ACTIVITIES
Cash received from customers 760,687$ 4,017,224$ 291,265$ 5,069,176$
Cash payments to suppliers for goods and services (53,738) (4,211,529) (536,707) (4,801,974)
Cash payments to employees for services - (38,041) (40,443) (78,484)
Net cash provided by (used in) operating activities 706,949 (232,346) (285,885) 188,718
NONCAPITAL FINANCING ACTIVITIES
Transfers in - - 450,000 450,000
Net cash provided by noncapital financing activities - - 450,000 450,000
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets (662,729) - - (662,729)
Proceeds from sale of capital assets 73,771 - - 73,771
Net cash used in capital and related financing activities (588,958) - - (588,958)
INVESTING ACTIVITIES
Interest received on investments 33,308 101,037 23,950 158,295
Net cash provided by investing activities 33,308 101,037 23,950 158,295
Net increase (decrease) in cash and cash equivalents 151,299 (131,309) 188,065 208,055
Cash and cash equivalents, beginning of year 2,000,159 3,701,776 1,222,940 6,924,875
Cash and cash equivalents, end of year 2,151,458$ 3,570,467$ 1,411,005$ 7,132,930$
Reconciliation of operating loss to net cash
provided by (used in) operating activities
Operating income (loss) 16,059$ (206,082)$ (197,738)$ (387,761)$
Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities
Depreciation expense 685,727 - - 685,727
Change in assets and liabilities
Receivables - (254,862) 180 (254,682)
Prepaids - (300) - (300)
Accounts payable 5,163 2,527 16,650 24,340
Accrued salaries and wages - (469) (286) (755)
Accrued insurance claims - 226,840 (104,691) 122,149
Net cash provided by (used in) operating activities 706,949$ (232,346)$ (285,885)$ 188,718$
THIS PAGE INTENTIONALLY BLANK
STATISTICAL SECTION
(Unaudited)
85
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 SEVEN FISCAL YEARS (Accrual Basis of Accounting – Unaudited) Table 1 2003200420052006200720082009Governmental 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$ 78,167,148$ Restricted 713,385 1,304,226 1,455,709 1,448,741 1,725,998 1,813,871 1,845,987 Unrestricted 14,945,063 14,657,018 17,512,832 25,497,497 27,104,410 18,664,353 17,959,515 Total governmental activities net assets 57,851,113$ 62,694,318$ 68,627,979$ 76,829,456$ 87,081,950$ 93,655,202$ 97,972,650$ Business-type activitiesInvested in capital assets, net of related debt 42,401,512$ 43,283,643$ 47,988,447$ 48,278,044$ 50,186,697$ 52,155,251$ 53,569,073$ Restricted 632,189 - - - - - 3,963,919 Unrestricted 14,009,239 16,906,068 15,830,507 19,099,883 16,421,971 16,900,637 12,980,127 Total business-type activities net assets 57,042,940$ 60,189,711$ 63,818,954$ 67,377,927$ 66,608,668$ 69,055,888$ 70,513,119$ Primary governmentInvested in capital assets, net of related debt 84,594,177$ 90,016,717$ 97,647,885$ 98,161,262$ 108,438,239$ 125,332,229$ 131,736,221$ Restricted 1,345,574 1,304,226 1,455,709 1,448,741 1,725,998 1,813,871 5,809,906 Unrestricted 28,954,302 31,563,086 33,343,339 44,597,380 43,526,381 35,564,990 30,939,642 Total primary government net assets 114,894,053$ 122,884,029$ 132,446,933$ 144,207,383$ 153,690,618$ 162,711,090$ 168,485,769$ Note: Source: Comprehensive Annual Financial ReportsCity of Euless first applied GASB Statement 34 in fiscal year ended 9/30/2003; government-wide financial information for years prior is not available.86
CITY OF EULESS, TEXAS CHANGES IN NET ASSETS – LAST SEVEN FISCAL YEARS (Accrual basis of accounting – Unaudited) Table 2 2003200420052006200720082009ExpensesGovernmental activities:Culture and recreation 4,753,724$ 4,411,726$ 4,573,219$ 4,892,346$ 5,002,569$ 4,862,749$ 4,892,936$ Development services 1,190,240 1,217,794 1,113,875 1,169,285 1,487,102 1,420,477 1,707,421 General and administrative 11,879,362 12,337,712 13,370,907 15,122,831 16,495,449 17,733,714 17,267,094 Highway and streets 2,117,959 2,398,447 1,734,487 2,211,083 2,206,697 2,534,856 2,057,123 Public Safety 14,830,469 15,315,777 15,514,301 16,252,071 17,047,334 18,708,849 19,379,290 Interest on long-term debt 3,147,819 2,765,102 2,572,094 2,741,754 2,664,658 3,151,039 2,377,564 Total governmental activities expenses 37,919,573 38,446,558 38,878,883 42,389,370 44,903,809 48,411,684 47,681,428 Business-type activities:Water and sewer 12,046,092 12,550,708 13,227,562 15,285,026 15,418,299 16,462,599 15,623,464 Drainage utility 812,785 793,358 875,995 884,763 1,059,272 932,771 947,869 Golf 3,616,671 3,667,537 3,792,552 4,003,035 4,250,866 4,421,256 4,690,701 Other recreation enterprises 2,593,455 2,299,391 2,630,760 1,842,550 2,109,291 2,155,131 2,016,273 Total business-type activities expenses 19,069,003 19,310,994 20,526,869 22,015,374 22,837,728 23,971,757 23,278,307 Total primary government expenses 56,988,576 57,757,552 59,405,752 64,404,744 67,741,537 72,383,441 70,959,735 Program RevenuesGovernmental activities:Fees, Fines, and Charges for ServicesCulture and recreation 56,749 52,651 91,925 92,837 83,084 65,349 67,283 Development services 628,585 817,293 896,894 841,033 833,822 688,348 783,955 General and administrative 1,403,636 1,401,057 1,241,408 1,706,000 1,252,030 1,391,437 4,092,387 Highway & streets - - - 6,300 (8,026) 722,334 11,008 Public safety 3,541,356 3,328,327 3,734,364 4,505,202 4,423,564 5,439,171 4,030,566 Operating grants and contributions 515,039 517,307 1,302,332 592,231 411,857 486,862 487,059 Capital grants and contributions - - - 8,706 2,199,106 1,885,266 268,130 Total governmental activities program revenues 6,145,365 6,116,635 7,266,923 7,752,309 9,195,437 10,678,767 9,740,388 Business-type activities:Charges for servicesWater and sewer 12,768,482 13,235,590 14,213,072 16,065,814 13,730,467 15,849,209 16,381,801 Drainage utility 626,199 643,229 659,949 658,231 701,476 661,725 689,889 Golf 3,078,739 3,052,947 3,347,922 3,777,018 3,825,486 3,904,008 4,069,151 Other recreation enterprises 2,603,260 2,012,214 2,453,905 1,518,386 1,636,883 1,819,459 1,703,196 Operating grants and contributions - - 3,308,393 - - - - Capital grants and contributions 2,849,795 - - 312,835 1,012,919 2,183,600 1,705,746 Total business-type activities program revenues 21,926,475 18,943,980 23,983,241 22,332,284 20,907,231 24,418,001 24,549,783 Total primary government program revenues 28,071,840 25,060,615 31,250,164 30,084,593 30,102,668 35,096,768 34,290,171 Fiscal Year87
CITY OF EULESS, TEXAS CHANGES IN NET ASSETS – LAST SEVEN FISCAL YEARS (Accrual basis of accounting – Unaudited) – Continued Table 2 Net (Expense) RevenueGovernmental Activities (31,774,208)$ (32,329,923)$ (31,611,960)$ (34,637,061)$ (35,708,372)$ (37,732,917)$ (37,941,040)$ Business-type Activities 2,857,472 (367,014) 3,456,372 316,910 (1,930,497) 446,244 1,271,476 Total Primary government net expense (28,916,736) (32,696,937) (28,155,588) (34,320,151) (37,638,869) (37,286,673) (36,669,564) General Revenues and Other Changes in Net AssetsGovernmental Activities:TaxesProperty taxes, levied for general purposes 9,941,779 10,233,079 10,777,414 11,188,598 12,343,359 12,231,294 12,685,268 Sales taxes 8,865,055 9,229,819 9,648,979 12,303,965 13,990,652 14,319,938 12,602,345 Car rental taxes 9,641,374 10,190,256 10,841,899 12,580,371 12,955,882 12,832,458 11,632,215 Mixed beverage taxes 82,920 82,058 82,759 85,659 87,400 84,653 76,433 Hotel/motel occupancy taxes 154,164 167,259 179,989 216,591 240,457 234,780 185,417 Gross receipts taxes 3,196,452 3,226,468 3,326,641 4,116,704 3,619,955 3,816,501 4,074,355 Investment income 580,245 463,239 870,841 1,611,815 2,031,580 1,727,542 863,225 Contributions from property owners 1,814,257 3,191,097 1,229,401 - - - - Gain/(loss) on sale/retirement of capital assets 41,807 30,811 (21,023) 24,866 74,163 71,143 37,909 Miscellaneous 102,193 18,208 - - - - 11,018 Transfers (1,535,227) 340,834 608,721 709,969 617,418 (1,012,140) 90,303 Total Governmental Activities 32,885,019 37,173,128 37,545,621 42,838,538 45,960,866 44,306,169 42,258,488 Business-type Activities:Investment income 320,233 266,240 407,468 771,888 1,023,865 726,385 254,071 Contributions from property owners 572,065 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 21,987 Transfers 1,535,227 (340,834) (608,721) (709,969) (617,418) 1,012,140 (90,303) Total Business-type Activities 2,427,525 3,513,785 172,871 3,242,063 1,161,238 2,000,976 185,755 Total Primary Government 35,312,544 40,686,913 37,718,492 46,080,601 47,122,104 46,307,145 42,444,243 Change in Net AssetsGovernmental Activities 1,110,811 4,843,205 5,933,661 8,201,477 10,252,494 6,573,252 4,317,448 Business-type Activities 5,284,997 3,146,771 3,629,243 3,558,973 (769,259) 2,447,220 1,457,231 Total Primary Government 6,395,808$ 7,989,976$ 9,562,904$ 11,760,450$ 9,483,235$ 9,020,472$ 5,774,679$ 88
CITY OF EULESS, TEXAS FUND BALANCES, GOVERNMENTAL FUNDS – LAST TEN FISCAL YEARS (Unaudited) Table 3 2000200120022003200420052006200720082009General FundReserved for other 123,862$ 99,851$ 141,886$ 136,167$ 193,253$ 239,592$ 310,956$ 392,950$ 362,018$ 354,882$ Unreserved 5,633,935 6,324,146 6,845,070 6,039,430 5,552,863 6,363,113 8,989,805 10,594,492 8,355,946 7,288,976 Total general fund 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$ 7,643,858$ All Other Governmental FundsReserved for:Debt service 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$ 1,987,783$ Development Agreements 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 1,553,876 Other 1,323 1,323 1,323 1,245 1,245 1,245 1,245 1,245 1,245 1,245 Unreserved, reported in:Special revenue funds 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 6,020,996 Capital funds 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 10,918,516 Total all other governmental funds 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$ 20,482,416$ Source: Comprehensive Annual Financial ReportsFiscal Year89
CITY OF EULESS, TEXAS CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (Unaudited) Table 4 2000200120022003200420052006200720082009REVENUES:General property tax 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$ 12,735,324$ Gross receipts tax 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 4,336,205 General sales tax 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 12,602,345 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 11,632,215 Fines and fees 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 4,086,594 Licenses and permits 550,356 511,625 1,188,231 1,009,058 1,190,059 870,010 806,476 804,404 752,421 783,955 Investment income 1,514,037 1,902,874 898,590 566,049 444,653 798,485 1,468,812 1,784,492 1,512,898 742,444 DEA Revenues 101,538 71,457 133,138 45,997 128,341 14,607 77,461 5,360 26,580 14,883 Intergovernmental 602,417 413,617 421,176 326,493 292,265 303,713 315,487 334,979 353,567 379,503 Other revenues 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 4,300,564 Total Revenues 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 51,614,032 EXPENDITURES:Culture and recreation 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 4,350,573 Development services 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 1,355,105 General and administrative 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 16,230,408 Highway and streets 746,976 734,672 750,218 973,493 766,030 670,742 656,964 693,711 943,171 861,885 Public safety 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 18,560,852 Debt Service:Principal 1,412,790 1,584,277 2,164,866 2,452,838 2,666,815 2,600,000 2,790,000 3,030,000 3,010,000 2,990,000 Interest and fiscal charges 1,768,842 3,766,821 4,072,936 3,528,072 3,308,249 2,939,783 2,596,934 2,577,106 2,437,894 2,312,734 Issuance costs 328,100 104,300 - 85,363 80,000 128,000 97,810 5,946 - - Capital outlay and maintenance 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 5,730,944 Total expenditures 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 52,392,501 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES (11,114,847) (8,383,191) (3,244,218) (2,235,195) (894,767) 645,625 (188,380) 2,785,910 (162,799) (778,469) 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 in 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 4,461,419 Transfers out (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) (4,596,116) Total Other Financing Sources 24,493,197 10,870,505 (15,947) (2,883,092) 5,583,134 106,189 (1,174,516) 102,418 (1,237,140) (134,697) NET CHANGE IN FUND BALANCES 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)$ (913,166)$ Debt service as a percentageof noncapital expenditures 12.5% 16.3%17.7% 16.4% 16.2% 14.8%13.2% 12.3% 11.4% 11.4%Source: Comprehensive Annual Financial ReportsFiscal Year90
CITY OF EULESS, TEXAS ASSESED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY – LAST TEN FISCAL YEARS (Unaudited) Table 5 Total Total Less: Total Taxable DirectFiscal Real Personal Market Tax-Exempt Assessed TaxYear Property Property Value Property Value Rate2000 1,372,654,858 198,674,343 1,571,329,201 175,797,883 1,395,531,318 0.5147542001 1,501,844,617 195,014,583 1,696,859,200 194,755,282 1,502,103,918 0.5147542002 1,642,632,027 375,015,487 2,017,647,514 210,303,809 1,807,343,705 0.4972542003 1,774,764,051 415,198,175 2,189,962,226 227,535,973 1,962,426,253 0.4972542004 1,908,435,313 410,962,260 2,319,397,573 249,704,249 2,069,693,324 0.4950002005 2,029,651,370 428,198,142 2,457,849,512 271,935,496 2,185,914,016 0.4950002006 2,190,313,348 375,328,844 2,565,642,192 312,107,619 2,253,534,573 0.4917772007 2,324,055,440 424,995,712 2,749,051,152 308,569,035 2,440,482,117 0.4895002008 2,438,826,320 464,735,670 2,903,561,990 320,650,590 2,582,911,400 0.4700002009 2,477,673,867 508,213,527 2,985,887,394 325,886,654 2,660,000,740 0.470000Source: Tarrant Appraisal DistrictEstimated Market Value91
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES (per $100 of Assessed Value) – LAST TEN FISCAL YEARS (Unaudited) Table 6 Fiscal YearOperating / General RateGeneral Obligation Debt ServiceTotal Direct RateHurst-Euless-Bedford ISDGrapevine-Colleyville ISDTarrant CountyTarrant County Hospital DistrictTarrant County Community College2000 0.356440 0.158314 0.514754 1.6318 1.5523 0.2648 0.2341 0.10642001 0.336374 0.178380 0.514754 1.6775 1.5823 0.2748 0.2341 0.10642002 0.311966 0.185288 0.497254 1.6530 1.6168 0.2748 0.2341 0.10642003 0.298479 0.198775 0.497254 1.7119 1.6598 0.2725 0.2324 0.13942004 0.309241 0.185759 0.495000 1.6616 1.7011 0.2725 0.2354 0.13942005 0.331396 0.163604 0.495000 1.7105 1.7000 0.2725 0.2354 0.13942006 0.340321 0.151456 0.491777 1.7230 1.7000 0.2725 0.2354 0.13942007 0.343227 0.146273 0.489500 1.5975 1.5743 0.2715 0.2354 0.13942008 0.340341 0.129659 0.470000 1.3037 1.2900 0.2665 0.2304 0.13942009 0.351937 0.118063 0.470000 1.2950 1.2900 0.2640 0.2279 0.1380Sources: City of Euless Budget Office, Tarrant Appraisal DistrictOverlapping RatesCity Direct Rates92
CITY OF EULES, TEXAS PRINCIPAL PROPERTY TAX PAYERS Current Year and Nine Years Ago (Unaudited) Table 7 PercentagePercentageof Total Cityof Total CityTaxable Taxable Taxable TaxableAssessed Assessed Assessed AssessedTaxpayerValue Value (1) TaxpayerValue Value (2)Avis Budget Group LLC 71,494,412$ 2.69 % Southwestern Bell Telephone Company 36,997,300$ 2.65 %Hertz Corp 59,138,506 2.22 The Bear Apartments 29,885,744 2.14Vanguard Car Rental USA Inc. 55,180,417 2.07 Southwest Properties 23,413,148 1.68UDR The Mandolin LLC 38,448,160 1.45 Somerset Village Partners, LP 20,181,995 1.45Somerset Village Partners LP 36,903,507 1.39 Aviaro Associates, LTD 20,083,859 1.44Oncor Electric Delivery Co. LLC 36,706,608 1.38 Western Rim Investors 18,872,896 1.35CMF 15 Portfolio LLC 32,500,000 1.22 TU Electric 18,780,460 1.35IRA Stoneleigh Feeco LLC 32,200,000 1.21 LBK IB LP (Bear Creek Apartments, Inc.) 13,324,884 0.95Vineyard Village MSV LLC 31,421,752 1.18 Bear Creek Norstor USA, LP 12,195,755 0.87Seramont II LP 30,563,740 1.15 800 East Ash Lane Inc. 12,140,000 0.87424,557,102$ 15.96 % Total 205,876,041$ 14.75 %TotalSource: Tarrant County Tax OfficeNote: (1) Total Taxable Value including real and personal property for tax year 2008 (fiscal year 2009) is $2,660,000,740.(2) Total Taxable Value including real and personal property for tax year 1999 (fiscal year 2000) is $1,395,531,318.Fiscal Year 2009Fiscal Year 200093
CITY OF EULESS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS – LAST TEN FISCAL YEARS (Unaudited) Table 8 Taxes Levied Adjustments AdjustedFiscal Fiscal Year Subsequent for the Percentage in Subsequent Percentage PercentageYear of the Levy Years Fiscal Year Amount of Levy Years Amount Of Levy Amount of Levy2000 7,150,393 (23,336) 7,127,057 7,068,633 99.18% 39,130 7,107,763 99.73% 19,294 0.27%2001 7,717,258 (6,218) 7,711,040 7,562,145 98.07% 135,187 7,697,332 99.82% 13,708 0.18%2002 9,208,653 33,583 9,242,236 8,668,507 93.79% 531,034 9,199,541 99.54% 42,694 0.46%2003 9,862,626 (55,752) 9,806,873 9,639,278 98.29% 129,418 9,768,696 99.61% 38,177 0.39%2004 10,219,893 55,059 10,274,952 10,026,897 97.59% 204,543 10,231,440 99.58% 43,512 0.42%2005 10,789,150 57,441 10,846,591 10,663,367 98.31% 134,981 10,798,347 99.56% 48,244 0.44%2006 11,194,338 3,105 11,197,443 11,007,368 98.30% 167,439 11,174,806 99.80% 22,637 0.20%2007 11,908,489 (7,315) 11,901,175 11,801,183 99.16% 64,587 11,865,770 99.70% 35,405 0.30%2008 12,083,956 (22,333) 12,061,623 11,986,396 99.38% 38,232 12,024,628 99.69% 36,995 0.31%2009 12,747,343 - 12,747,343 12,556,281 98.50% - 12,556,281 98.50% 191,062 1.50%Source: Tarrant County Tax Office and Tarrant Appraisal DistrictDelinquent TaxesCollected within theFiscal Year of the Levy Total Collection
94
CITY OF EULES, TEXAS RATIO OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS (Unaudited) Table 9 Taxable General PercentageGeneral Certificates Certificates Sales Tax W&S Drainage Certificates Obligation Total of Personal PerFiscal Obligation of of Revenue Revenue Revenue of Refunding Primary Income CapitaYear Bonds Obligation Obligation Bonds Bonds Bonds Obligation Bonds Government (1) (1)2000 7,813,796 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 2001 13,214,519 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 2002 12,409,653 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 2003 15,381,815 18,420,000 9,875,000 8,860,000 3,300,000 1,300,000 10,660,000 - 67,796,815 5.31% 1,414 2004 17,525,000 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 2005 27,410,000 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 2006 28,820,000 7,175,000 9,305,000 7,175,000 4,805,000 785,000 - 11,005,000 69,070,000 4.86% 1,361 2007 27,350,000 6,475,000 9,080,000 6,540,000 4,585,000 600,000 - 10,560,000 65,190,000 4.40% 1,232 2008 25,985,000 5,735,000 8,840,000 5,875,000 4,350,000 410,000 - 10,105,000 61,300,000 4.15% 1,148 2009 24,350,000 5,330,000 8,580,000 5,185,000 4,105,000 210,000 - 9,640,000 57,400,000 3.78% 1,062 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 Activities95
CITY OF EULESS, TEXAS RATIO OF NET GENERAL BONDED DEBT TO TAXABLE ASSESSED VALUE AND NET BONDED DEBT PER CAPITA – LAST TEN FISCAL YEARS (Unaudited) Table 10 Debt toGeneral Certificates Estimated Taxable TaxableFiscal Obligation of Population Assessed Assessed Debt PerYear Bonds Obligation Total (1) Value (2) Value Capita2000 7,813,796 18,715,000 26,528,796 44,700 1,395,531,318 1.90% 593 2001 13,214,519 23,690,000 36,904,519 45,500 1,502,103,918 2.46% 811 2002 12,409,653 22,910,000 35,319,653 46,166 1,807,343,705 1.95% 765 2003 15,381,815 18,420,000 33,801,815 47,950 1,962,426,253 1.72% 705 2004 17,525,000 21,915,000 39,440,000 49,750 2,069,693,324 1.91% 793 2005 27,410,000 10,365,000 37,775,000 49,950 2,185,914,016 1.73% 756 2006 28,820,000 7,175,000 35,995,000 50,750 2,253,534,573 1.60% 709 2007 27,350,000 6,475,000 33,825,000 52,900 2,440,482,117 1.39% 639 2008 25,985,000 5,735,000 31,720,000 53,400 2,582,911,400 1.23% 594 2009 24,350,000 5,330,000 29,680,000 54,073 2,660,000,740 1.12% 549 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.96
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2009 - (Unaudited) Table 11 Estimated Estimated Share ofDebt Percentage OverlappingGovernmental Unit Outstanding Applicable DebtDebt repaid with property taxesGrapevine-Colleyville Independent School District 331,906,860 2.12% 7,036,425Hurst-Euless-Bedford Independent School District 207,489,850 26.79% 55,586,531Tarrant County 321,311,250 2.72% 8,739,666Tarrant County Hospital District 62,680,000 2.72% 1,704,896Tarrant County College District 39,402,780 2.72% 1,071,756Subtotal, overlapping debt74,139,274City of Euless (direct debt)29,680,000 100.00% 29,680,000Total direct and overlapping debt103,819,274Source: Debt outstanding data provided by each governmental unit.97
CITY OF EULESS, TEXAS SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS – LAST TEN FISCAL YEARS (Unaudited) Table 12 Less InterestTotal Operating Net andFiscal Revenues Expenses Revenue Fiscal CoverageYear (1) (2) Available Principal Charges Total Ratio2000 13,558,051 9,765,239 3,792,812 415,000 62,856 477,856 7.942001 13,084,483 10,915,784 2,168,699 445,000 317,637 762,637 2.842002 11,719,411 10,298,940 1,420,471 580,000 231,234 811,234 1.752003 13,016,934 10,431,249 2,585,685 615,000 199,245 814,245 3.182004 13,443,174 10,902,522 2,540,652 500,000 183,946 683,946 3.712005 14,548,715 11,555,108 2,993,607 305,000 275,524 580,524 5.162006 16,568,058 13,485,955 3,082,103 195,000 229,437 424,437 7.262007 14,645,201 13,668,755 976,446 220,000 213,643 433,643 2.252008 16,369,368 14,722,644 1,646,724 235,000 191,228 426,228 3.862009 16,594,856 13,722,593 2,872,263 245,000 180,820 425,820 6.75Notes: (1) Operating and nonoperating revenues of water and wastewater fund(2) Total operating expenses of water and wastewater fund exclusive of depreciation and amortization98
CITY OF EULESS, TEXAS SCHEDULE OF REVENUE BOND COVERAGE DRAINAGE UTILITY BONDS – LAST TEN FISCAL YEARS (Unaudited) Table 13 Less InterestTotal Operating Net andFiscal Revenues Expenses Revenue Fiscal CoverageYear (1) (2) Available Principal Charges Total Ratio2000 662,132 329,422 332,710 110,000 112,343 222,343 1.502001 662,455 212,073 450,382 120,000 108,652 228,652 1.972002 645,852 241,034 404,818 75,000 74,041 149,041 2.722003 653,916 291,668 362,248 160,000 32,494 192,494 1.882004 667,131 225,815 441,316 165,000 46,255 211,255 2.092005 700,316 265,444 434,872 170,000 41,305 211,305 2.062006 741,256 257,919 483,337 180,000 35,355 215,355 2.242007 790,647 420,586 370,061 185,000 34,303 219,303 1.692008 736,433 298,712 437,721 190,000 21,565 211,565 2.072009 714,520 286,741 427,779 200,000 14,417 214,417 2.00Notes: (1) Operating and nonoperating revenues of drainage utility fund(2) Total operating expenses of drainage utility fund exclusive of depreciation and amortization99
CITY OF EULESS, TEXAS DEMOGRAPHIC STATISTICS – LAST TEN FISCAL YEARS (Unaudited) Table 14 Per Personal Estimated Capita Income School UnemploymentFiscal Population Income (thousands Median Age Enrollment RateYear (1) (2) of dollars) (3) (4) (5)2000 44,700 24,884 1,112,315 N/A 19,500 2.2%2001 45,500 25,556 1,162,798 N/A 19,500 3.3%2002 46,166 25,837 1,192,791 N/A 19,500 4.6%2003 47,950 26,630 1,276,909 N/A 19,500 4.7%2004 49,750 26,710 1,328,823 N/A 19,700 3.8%2005 49,950 27,406 1,368,930 N/A 19,600 4.5%2006 50,750 27,999 1,420,949 33.7 20,111 4.8%2007 52,900 28,029 1,482,734 34.1 20,318 3.8%2008 53,400 27,634 1,475,656 34.2 20,048 4.5%2009 54,073 28,110 1,519,992 34.4 20,504 7.3%Notes: 1. Estimates by North Central Texas Council of Governments 2. Estimates by Claritas Site Reports; Research & Demographic Solutions 3. Research & Demographic Solutions - 2009 4. Hurst-Euless-Bedford Independent School District 5. Texas Workforce Commission100
CITY OF EULESS, TEXAS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago (Unaudited) Table 15 Percentage Percentageof Total City of Total CityEmployerEmployees Employment EmployerEmployees EmploymentHEB ISD 818 3.55% City of Euless 340 1.85%LSG Sky Chefs, Inc. 800 3.47% Edward Blank Associates 230 1.25%City of Euless 392 1.70% Tarrant Printing 190 1.03%Autogrill Group, Inc 350 1.52% Home Depot 150 0.82%Beall Concrete 250 1.08% Atlas Match 150 0.82%Super Target 190 0.82% Marriott 130 0.71%Life Outreach International 185 0.80% Dal - Tex 100 0.54%TJ Lambrecht Construction 122 0.53% Albertsons 100 0.54%Home Depot 125 0.54% N/A - 0.00%Lowe's 114 0.49% N/A - 0.00%Total 3,346 14.52% 1,390 7.55%2009 2000
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CITY OF EULESS, TEXAS FULL–TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 16 Function/Program2000200120022003200420052006200720082009General Governmentand Administration 49.25 50.25 52.25 52.25 52.25 51.25 50.75 53.00 54.50 54.50 Public Safety112.00 116.00 116.00 117.00 117.00 118.00 120.00 123.00 126.00 126.00Fire Safety60.00 60.00 61.00 61.00 61.00 64.00 67.00 70.00 73.00 73.00 Development Services 13.00 13.00 13.00 15.00 15.00 12.00 12.00 12.00 12.00 12.00 Culture and Recreational 33.75 34.75 35.75 35.75 35.75 35.75 35.75 36.50 36.00 36.00 Water and Wastewater 51.00 52.00 51.00 49.00 49.00 48.00 49.50 50.00 50.00 50.00 Golf Course 15.25 15.25 15.25 15.25 15.25 15.25 15.25 15.25 15.25 17.25 Public Works 15.75 15.75 15.75 15.75 15.75 15.75 15.75 15.75 15.75 15.75 Service Center 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Risk Management / Insurance 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.50 1.50 1.50 Total 358.00 365.00 368.00 369.00 369.00 368.00 374.00 383.00 390.00 392.00 Source: City Budget OfficeFiscal Year 102
CITY OF EULESS, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 17 Function/Program2000200120022003200420052006200720082009Public SafetyPoliceNumber of Certified Officers 81 81 81 81 81 82 82 82 85 85Number of Citations Issued 23,509 25,430 23,719 27,145 25,491 32,200 38,359 34,368 26,503 29,925FireNumber of Certified Firefighters 58 58 59 59 59 62 65 68 71 71Number of Alarms 4,432 4,717 4,530 4,849 4,699 3,949 3,661 3,675 4,197 3,827Number of EMS Calls 1,077 1,194 1,125 2,320 1,854 2,202 2,317 2,561 2,688 2,634Municipal CourtCases Filed 34,878 33,803 33,980 35,385 34,258 41,027 46,085 39,096 30,551 33,670DevelopmentNumber Residential Inspections - New 120 100 107 182 518 319 315 58 77 100Number Commercial Inspections - New 10 10 8 4 13 8 10 24 28 16Number Multifamily Inspections - New 2241000000Public WorksStreet Overlay (Square Footage) 543,532 301,421 767,154 1,238,046 1,004,735 1,391,889 1,117,894 664,472 999,285 797,326Cultural and RecreationalParks and RecreationRecreation Center Memberships 2,229 2,000 3,649 4,427 4,123 4,260 4,160 3,990 3,944 3,703Class Attendance (Youth/Adult) 14,756 13,935 11,099 17,532 24,522 24,575 25,704 29,067 59,541 74,452Water and SewerNumber of Water Consumers 21,588 22,056 22,615 23,231 23,848 25,012 24,486 24,484 24,608 24,677Water Produced (In Gallons x 1000) 438,019 341,835 474,987 555,046 384,306 314,085 372,695 414,934 348,548 730,291Water Purchased - TRA (In Gallons x 1000) 2,298,819 2,134,768 1,839,498 1,895,120 2,146,706 2,382,040 2,947,945 2,202,426 2,291,974 1,955,535Water Supplied (In Gallons x 1000) 2,736,838 2,476,603 2,314,485 2,450,166 2,531,012 2,696,125 3,320,640 2,617,360 2,640,522 2,685,826Annual Rainfall (In Inches) 26.58 46.95 38.34 30.75 41.08 32.51 20.74 53.51 27.10 36.32Golf CourseNumber of Paid Rounds Played 38,542 29,694 29,961 30,861 33,146 32,725 36,639 35,094 36,528 43,029Source: City DepartmentsComprehensive Annual Financial ReportCity Budget OfficeNotes:N/A - Data not available.103
CITY OF EULESS, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 18 Function/Program2000200120022003200420052006200720082009Public SafetyPolice Stations 1 1 1 1 1 1 1 1 1 1 Fire Stations 3 3 3 3 3 3 3 3 3 3 Public WorksStreets- Paved (linear miles) 182.0 182.0 182.0 182.0 182.0 182.0 182.0 211.0 217.6 217.6 Cultural and RecreationalSwimming Pools 3 3 3 3 3 3 3 3 3 3 Parks 16 16 16 16 16 16 17 17 17 17 Parks Land (Acres) 539 539 539 539 539 539 566 632 632 632 Community Buildings 3 3 5 5 5 5 5 5 5 5 Ampitheater 2 2 2 2 2 2 2 2 2 2 Conference Centre 1 1 1 1 1 1 1 1 1 1 Golf Course 1 1 1 1 1 1 1 1 1 1 Athletic Fields 24 24 24 24 24 24 37 37 37 37 Library Holdings 84,566 90,790 98,314 106,442 96,228 99,972 97,334 98,613 101,672 103,122 Water and WastewaterWater Mains (miles) 185.00 197.00 202.00 209.00 210.00 212.00 218.00 222.10 226.80 226.80 Fire Hydrants 1,190 1,215 1,215 1,318 1,318 1,318 1,377 1,441 1,477 1,477 Wastewater Mains (miles) 139.0 143.0 149.0 157.0 161.0 162.0 162.0 168.0 186.3 186.3 Source: City Departments104