HomeMy WebLinkAboutCity of Euless Comprehensive Annual Financial Report FY2011City of Euless, Texas
Comprehensive Annual Financial Reportpp
Fiscal Year Ending September 30, 2011
201 N. Ector Drive
Euless Texas 76039Euless, Texas 76039
Phone (817) 685‐1626
Fax (817) 685‐1459
www.eulesstx.gov
City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2011
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, 2011
C O N T E N T S
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal i-ix
City Officials x
Organizational Chart xi
GFOA Certificate of Achievement xii
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 27-60
Required Supplementary Information
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 61
Schedule of Funding Progress – OPEB Trust 62
Budgetary Comparison Schedules 63-65
Notes to Required Supplementary Information 66
Combining and Individual Fund Statements and Schedules
Non-Major Governmental Funds
Combining Balance Sheet 69-70
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 71-72
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2011
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 73
Police Drug Enforcement Special Revenue Fund 74
Half-Penny Sales Tax Special Revenue Fund 75
Crime Control and Prevention District Special Revenue Fund 76
Public Safety Grant Special Revenue Fund 77
Juvenile Case Special Revenue Fund 78
Non-Major Proprietary Funds
Combining Statement of Net Assets 80-81
Combining Statement of Revenues, Expenses, and Changes in Net Assets 82
Combining Statement of Cash Flows 83
Internal Service Funds
Combining Statement of Net Assets 85
Combining Statement of Revenues, Expenses, and Changes in Net Assets 86
Combining Statement of Cash Flows 87
Stars Center Agency Fund
Statement of Changes in Assets and Liabilities 88
STATISTICAL SECTION (Unaudited) Table Page(s)
Net Assets by Component 1 89
Changes in Net Assets 2 90-91
Fund Balances, Governmental Funds 3 92
Changes in Fund Balances, Governmental Funds 4 93
Assessed and Estimated Actual Value of Taxable Property 5 94
Direct and Overlapping Property Tax Rates 6 95
Principal Property Tax Payers 7 96
Property Tax Levies and Collections 8 97
Ratio of Outstanding Debt by Type 9 98
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 10 99
Direct and Overlapping Governmental Activities Debt 11 100
Schedule of Revenue Bond Coverage Water and Wastewater Bonds 12 101
Schedule of Revenue Bond Coverage Drainage Utility Bonds 13 102
Demographic Statistics 14 103
Principal Employers 15 104
Full-time Equivalent City Government Employees by Function/Program 16 105
Operating Indicators by Function/Program 17 106
Capital Asset Statistics by Function/Program 18 107
INTRODUCTORY SECTION
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January 24, 2012
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, 2011. This report complies with State
law which requires that all local governments publish, within six months of the close of
each fiscal year, a complete set of financial statements presented in conformity with
accounting principles generally accepted in the United States of America (“GAAP”) and
audited in accordance with auditing standards generally accepted in the United States of
America by a firm of licensed certified public accountants.
This report is published to provide the City Council, city staff, citizens, bondholders, and
other interested parties with detailed information concerning the financial condition and
activities of the City. The report consists of city management’s representations
concerning the finances of the City. Consequently, management assumes full
responsibility for the accuracy, completeness, and reliability of all of the information
presented in the report. To provide a reasonable basis for making these representations,
management of the City has established a comprehensive internal control framework that
is designed both to protect the City’s assets from loss, theft, or misuse and to compile
sufficient reliable information for the preparation of the City’s financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh the
benefits derived from them, the City’s comprehensive framework of internal controls has
been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to
the best of our knowledge and belief, this financial report is complete and reliable in all
material respects.
The City’s financial statements have been audited by Weaver, L.L.P., a firm of licensed,
certified public accountants. The goal of the independent audit is to provide reasonable
assurance that the financial statements of the City for the fiscal year ended September 30,
2011, are free of material misstatement. The independent audit involved examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements;
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assessing the accounting principles used and significant estimates made by management;
and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an
unqualified (“clean”) opinion that the City’s financial statements for the fiscal year ended
September 30, 2011, 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 complement, and should be read in conjunction with,
the MD&A. The City of Euless’ MD&A can be found immediately following the
independent auditor’s report. The Statistical Section includes financial and demographic
information relevant to readers of the City’s financial statements. The statistical data is
generally presented on a multi-year basis.
Profile of the City of Euless, Texas
The City of Euless is located in North Central Texas in Northeast Tarrant County
approximately 16 miles west of Dallas and 16 miles east of Fort Worth. Euless is readily
accessible by State Highway 183 which is a 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 51,277.
The City of Euless was incorporated February 24, 1953 and is a home rule city
operating under a Council/Manager form of government. The City Council is
comprised of the mayor and six council members who are elected at large. The
Council has the authority to enact local legislation, levy taxes, adopt budgets,
determine policies, incur debt, and appoint the City Secretary, City Attorney,
Municipal Court Judge, and the City Manager. The City Manager reports directly to
the City Council, and is responsible for the daily management of the various city
departments. Council members serve three-year staggered terms, with two council
members elected each year. The Mayor is elected to serve a three-year term. In
addition, several boards and commissions were created to assist the City Council in
deciding matters of policy and procedure and meet on various issues throughout the
year.
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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
center, 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 Basic 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 is open for public inspection. Upon receipt of the budget, the City Council sets a
date for a public hearing at which time interested citizens may express their opinions
regarding the proposed budget. The charter requires the Council to adopt the budget by a
favorable majority vote at least ten days prior to the beginning of the next fiscal year.
The City Manager is authorized to transfer budgeted amounts between line items and
departments within any fund; however any revisions that alter the total expenditures of
any fund must be approved by the City Council. Budgetary control has been established
at the individual fund level. Financial reports are produced showing budget to actual
expenditures by line item and are distributed monthly to city departments for review.
Economic Condition
The information presented in the financial statements is perhaps best understood when it
is considered from the broader perspective of the specific environment within which the
City of Euless operates.
The City of Euless is located in Tarrant County, 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 more than 141,000 business, 1,500 regional and
corporate headquarters, 24 Fortune 500 Companies, and a total workforce of nearly 3.2
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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 2011, the City’s unemployment rate of 7.5% compares
favorably with the state rate of 8.4%.
DFW Airport is the world’s third-busiest airport in terms of operations and eighth in
terms of passengers. DFW currently operates daily passenger flights to 191 destinations
worldwide, including 144 nonstop domestic destinations and 47 nonstop international
destinations, offering nearly 1,800 flights per day and serving more than 57 million
passengers a year. DFW provides in excess of 305,000 jobs and contributes over $16.6
billion annually to the regional economy (SOURCE: DFW website www.dfwairport.com
Fast Facts and DFW Airport 2010 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 260 companies, 30,000 employees, 7,600+
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. During FY2011, Euless began
seeing some improvement, but the city has not yet experienced a full recovery.
Therefore, 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 maintain or cut
costs while preserving current service levels. Budgetary reductions and other cost-saving
measures enacted in prior fiscal years were carried over into the current fiscal year to
minimize the city’s risk. 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 $2.5 billion for fiscal year 2011, which represents a 5.2% decrease over
the prior year. Sales tax collections, on the other hand, increased during FY2011
exceeding budget expectations by 3.8%.
The City receives significant revenues from a consolidated rental car facility at DFW
Airport. While a portion is used to fund general operations to reduce the tax burden on
our citizens, the City Council has chosen to utilize the majority of this funding source to
build reserves and to cash flow capital projects in lieu of debt issuance. Doing so has
allowed the City to refrain from becoming overly dependent on a volatile resource, while
providing much needed improvements within the community.
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The City of Euless has approximately 958 acres of undeveloped land outside of DFW
Airport and another 1,700 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. During 2011, the city welcomed the opening of
several new restaurants including Taco Cabana, Raising Cane’s, IT’Z Pizza,
Schlotzsky’s, Which Wich and Asian Village. New industrial manufacturing has also
come online. Additionally, the city processed fifty-two new residential housing permits
totaling approximately $16.5 million in new residential development, and eleven new
commercial permits with a valuation of $6.6 million.
The Dallas Cowboys Stadium and Texas Rangers Ballpark in Arlington, within minutes
of Euless, continues to attract additional tourism to the city by hosting major concerts and
sporting events, including Super Bowl XLV in February of 2011 and the World Series in
both 2010 and 2011.
During the fiscal year, various capital improvement projects located throughout the City
were completed. The projects included miscellaneous drainage improvements and street
overlay projects throughout the city. Additionally, the city completed several facility
projects including the construction of a 20,000 square foot senior citizen center,
installation of a new emergency generator, and re-construction of the pavilion at the
Texas Star Golf Course. Street projects completed this year include construction of the
initial infrastructure improvements at the Glade Parks development which consists of Rio
Grande Boulevard, portions of Heritage Avenue, the main entrance, medians, utility
installation, and underground drainage improvements. In addition, the city completed the
replacement of several wastewater lines along Woodridge Circle, Koen Lane, Alexander
Lane, Norman Drive, Franklin Drive and Fayette Drive. Installation of a reclaimed water
main from the City of Fort Worth point of service to the Texas Star property was also
completed during the fiscal year. With the exception of the Glade Parks infrastructure,
all of these projects were funded from cash reserves and did not require issuance of new
debt. The city also completed a lighting project at the Texas Star Sports Complex which
replaced existing field lighting fixtures, poles and foundations with newer energy
efficient light fixtures. This project was funded through the Department of Energy’s
American Recovery and Reinvestment Act grant.
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 $54,558 (source: Claritas Site Reports)
compares favorably to $53,726 for Tarrant County and $48,259 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
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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.
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 citizens, property tax rates, and
enterprise fund service fee revenues. Per the City’s fiscal policies, long-term debt will
not be used for operating purposes and the life of the debt instruments will not exceed the
useful life of the projects 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 streets, 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 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, 2011,
the revenue bond reserve totaled just over $431,000 while the average annual debt service
on the outstanding debt was calculated at $352,807.
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 and water and wastewater revenue debt at Aa2 and
the sales tax revenue debt at A1. Additional information about the rating agencies or the
significance of the ratings provided may be obtained from each agency’s web site.
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Major Initiatives
The City has partnered with Tarrant County, surrounding cities, local churches and
businesses to renovate qualifying homes in the community through the Tarrant County
Home Program and the Community Powered Revitalization Program (“CPR”). Through
this partnership, the cities of Hurst, Euless, and Bedford have joined forces to assist
qualifying residents in all three communities.
The City’s updated Facility Master Plan addresses the remaining facility needs of the
city. The Parks Master Plan, which focuses on improving the quality of life for the
community, includes additional hike/bike trails, park amenities and upgrades, and
additional aquatic features for citizens of every age.
In January, the Euless Family Life Center and Senior Citizens Center opened to rave
reviews, with over 4,000 memberships sold during the fiscal year. This facility includes a
27,000 square foot recreational facility, a 5,000 square foot fitness center, and a 20,000
square foot senior citizen center. Upon ultimate completion of this project, the facility
will also include an indoor and outdoor aquatic facility.
The City’s Capital Improvement Plan addresses the infrastructure needs throughout the
city. In accordance with this plan, the city awarded construction contracts on Baze Road
and Ash Lane. These reconstruction projects will upgrade both of these major roadways
from two-lane county roads to standard curb and gutter streets with underground
drainage. Additionally, with the reconstruction of State Highway 183, the City executed
a Master Utility Adjustment Agreement with the Texas Department of Transportation,
North Tarrant Express (“NTE”) Mobility Partners, and Bluebonnet Contractors to
relocate existing water and wastewater mains along this thoroughfare.
Over the last several years, the City has worked 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. In an effort to promote development in this area, the City created a Tax
Increment Reinvestment Zone (“TIRZ”) for this development (Glade Parks) and
approved the related project and financing plan. This plan authorizes the City to
undertake certain public improvements associated with the Glade Parks development.
The City also executed a development agreement with Glade 121 L.P., which specifies
the extent to which the City will provide the improvements and provides for the
conditions under which these improvements will be constructed. Additionally, the City
created the Glade Parks Public Improvement District (“PID”) which will be funded from
from assessments within the district. During FY2011, the City completed the first phase
of infrastructure improvements with the construction of Rio Grande Boulevard. With
completion of the initial infrastructure improvements, the City Council approved a site
plan for a 3,600 square foot drive-through restaurant to be located at this development.
Raising Cane’s Chicken Fingers completed construction and held their grand opening in
December 2011.
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To further promote development, the city also executed a development agreement with
Realty Capital Corporation, LLC, related to a planned Riverwalk Development. In
addition, the city approved a planned development relating to this project which includes
approximately 200 acres located at the northwest corner of Airport Freeway and State
Highway 360 extending north to Harwood Road. This project will be developed as a
mixed use development designed around a central river walk amenity that will serve as its
focal point. The development agreement details the timing for the construction of the
initial and subsequent phases of the riverwalk amenity.
During drought and mandatory watering restrictions which were implemented throughout
the State of Texas, the City of Euless, along with the City of Arlington and the DFW
International Airport, contracted with the City of Fort Worth for the purchase of
reclaimed water from the Village Creek Wastewater Plant. The City uses reclaimed
water to irrigate over 300 acres of city property including Texas Star Golf Course and the
Texas Star Sports Complex. The use of reclaimed water for irrigation is a viable
alternative to potable water and has allowed the City to protect valuable assets, therefore
ensuring a safe playing surface for our customers during one of the hottest summers on
record.
The City also negotiated a contract with the City of Fort Worth to extend the current
reclaimed water line to serve the eastern portion of Euless north of State Highway 183.
With this extension, the City would have the ability to provide reclaimed water to an
existing holding pond for gas well operations as well as future use on the Riverwalk
Development mentioned above.
In September, the City of Euless dedicated the 9-11 Memorial, which includes a 12 foot
steel beam received from the fallen World Trade Center. This memorial will forever be
displayed in front of the Fire Administration Building to honor the thousands who lost
their life on that tragic day.
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, 2010. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local
government financial reports. In order to be awarded a Certificate of Achievement, a
government unit must publish an easily readable and efficiently organized CAFR, whose
contents conform to program standards. Such report must satisfy both Generally
Accepted Accounting Principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has been
awarded a Certificate of Achievement for the last 24 consecutive years. We believe that
the current CAFR meets the Certificate of Achievement program requirements and are
submitting it to GFOA for review.
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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 20 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.
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FINANCIAL SECTION
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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 (City) as of and for the year ended September 30, 2011, 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 as of September 30, 2011,
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.
In accordance with Government Auditing Standards, we have also issued our report dated
January 20, 2012, on our consideration of the City’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that reports is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information on pages 3
through 13 and 63 through 65 be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
To the Honorable Mayor,
City Council and City Manager
Page 2
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information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of
the basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, combining
and individual nonmajor fund financial statements, schedules and statistical tables are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining and individual nonmajor fund financial statements and schedules
have been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole. The introductory section and statistical tables have not
been subjected to the auditing procedures applied in the audit of the basic financial statements
and, accordingly, we express no opinion on them.
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
January 20, 2012
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CITY OF EULESS, TEXAS
Management’s Discussion and Analysis
For the Year Ended September 30, 2011
(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, 2011. 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-ix of this report) and the statistical section (pages 89-107 of this report) as
well as information in the annual budget and the capital improvement plan along with other
community information found on the city’s website at www.eulesstx.gov. It should be noted that
the Independent Auditor’s Report describes the auditors’ association with the various sections of
this report and that all of the additional information from the website and other city sources are
unaudited.
Financial Highlights
• The assets of the City of Euless exceeded its liabilities at the close of the most recent fiscal
year by $177,487,673 (Net assets). This number must be viewed in the context that the vast
majority of the City’s net assets of $124,183,976 (70%) are capital assets net of related debt
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
$4,907,241 (3%). The remaining $48,396,456 (27%) 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.
• Governmental activities realized an increase in total net assets of $4,193,682 and business-
type activities realized an increase in total net assets of $2,425,654 bringing the total increase
in net assets for the city to $6,619,336.
• At the close of the current fiscal year, the City of Euless’ governmental funds reported
combined ending fund balances of $26,667,932 which represents an increase of $2,395,466
in comparison with the prior year. Within this total, $1,818,957 is restricted for debt service;
$684,336 is restricted by bond covenant for capital projects; $311,076 and $87,971 are
restricted for court technology and juvenile case management, respectively; and another
$1,484,620 is restricted for capital projects by developer agreements. Nonspendable fund
balance of $25,009 represents fund balance amounts for inventories and prepaid items. Fund
balances of $14,959,243 represent assigned fund balance in the general, special revenue, and
4
capital projects funds. The unassigned fund balance in the General Fund is $7,296,719 which
can be used for any lawful purpose. The General Fund unreserved balance represents 25% of
fiscal year 2011 total fund expenditures.
• The City’s total capital assets (net of accumulated depreciation) increased by $1,070,145
which is primarily attributed to the acquisition of land and equipment, the construction of
infrastructure and facilities, and construction in progress.
• The City’s bonds payable decreased by $1,360,000 or 3%, due to the scheduled repayment of
principal on outstanding bonded debt combined with refunding bonds issued for the
defeasance of certain issues of general obligation debt. In addition to the refunding debt
issue, the City also issued $3,035,000 in certificates of obligation during the 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 receipts
and 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 (the primary
government), but also 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 narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, the reader may better understand the long-term impact of the government’s near-
term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains 19 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, Streets CIP, and Car
Rental Tax funds, all of which are considered to be major funds. Data from the other 15
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 the adopted budgets.
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.
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,
6
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 27-60 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 61-66 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, OPEB, and budgetary comparisons.
Combining and individual fund statements and schedules can be found on pages 69-88 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 $177,487,673 as of September 30, 2011.
The largest portion of the City’s net assets (70%) reflects its investment in capital assets (i.e.,
land, buildings, 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.
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%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets
7
of $48,396,456 (27%) may be used to meet the City’s ongoing obligations to citizens, creditors,
and employees.
Net Assets
Governmental Business-type
Amounts shown in 000's activities activities Total
2011 2010 2011 2010 2011 2010
Current and other assets 44,597$ 41,167$ 23,927$ 21,209$ 68,524$ 62,376$
Capital assets 113,805 112,286 64,562 65,011 178,367 177,297
Total assets 158,402 153,453 88,489 86,220 246,891 239,673
Long-term liabilities 43,299 37,439 11,066 11,640 54,365 49,079
Other liabilities 10,785 15,889 4,254 3,837 15,039 19,726
Total liabilities 54,084 53,328 15,320 15,477 69,404 68,805
Net assets:
Invested in capital assets,
net of debt 71,051 73,816 53,133 53,318 124,184 127,134
Restricted 1,819 1,376 3,088 3,437 4,907 4,813
Unrestricted 31,448 24,933 16,948 13,988 48,396 38,921
Total net assets 104,318$ 100,125$ 73,169$ 70,743$ 177,487$ 170,868$
As of September 30, 2011 the City reports 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 2010.
The City’s unrestricted net assets increased by $9.5 million in fiscal year 2011. This increase is
primarily attributed to the decrease of approximately $2.9 million in the amount invested in
capital assets, net of related debt combined with the change in net assets of $6.6 million resulting
from current year operations. The details of the results of current year operations are found in
the table shown on the following page.
8
Changes in Net Assets
Governmental Business-type
Amounts shown in 000's Activities Activities Totals
2011 2010 2011 2010 2011 2010
REVENUES
Program revenues:
Fees, fines and charges
for services 5,829$ 6,711$ 28,105$ 25,230$ 33,934$ 31,941$
Operating grants and
contributions 469 511 - - 469 511
Capital grants and
contributions 1,015 602 773 26 1,788 628
General revenues:- -
Property taxes 11,856 12,306 - - 11,856 12,306
Sales taxes 13,253 12,338 - - 13,253 12,338
Car rental taxes 12,458 11,481 - - 12,458 11,481
Mixed beverage taxes 66 72 - - 66 72
Occupancy taxes 273 237 - - 273 237
Gross receipts taxes 4,175 3,967 - - 4,175 3,967
Investment income 169 293 66 88 235 381
Gain (loss) on asset
disposal 100 117 (142) 4 (42) 121
Miscellaneous 1,420 104 - - 1,420 104
Total revenues 51,083 48,739 28,802 25,348 79,885 74,087
EXPENSES
Culture and recreation 5,092 5,004 - - 5,092 5,004
Development services 1,707 1,693 - - 1,707 1,693
General government 15,699 14,572 - - 15,699 14,572
Highways and streets 2,923 2,663 - - 2,923 2,663
Public safety 20,755 21,417 - - 20,755 21,417
Interest on long-term
debt 1,618 1,885 - - 1,618 1,885
Water and wastewater - - 17,827 17,036 17,827 17,036
Drainage utility - - 1,178 1,107 1,178 1,107
Golf course - - 4,483 4,461 4,483 4,461
Recreational
enterprises - - 1,983 1,867 1,983 1,867
Total expenses 47,794 47,234 25,471 24,471 73,265 71,705
Increase (decrease) in
net assets before
transfers 3,289 1,505 3,331 877 6,620 2,382
Transfers 905 647 (905) (647) - -
Increase (decrease) in
net assets 4,194 2,152 2,426 230 6,620 2,382
Net assets, beginning 100,125 97,973 70,743 70,513 170,868 168,486
Net assets, ending 104,319$ 100,125$ 73,169$ 70,743$ 177,488$ 170,868$
9
• Governmental activities. Governmental activities increased the City’s net assets by
$4,193,682 thereby accounting for 63% of the total growth in net assets. Most revenue
categories exceeded projections including sales taxes, gross receipts taxes, and grant
revenues. Sound fiscal management, holding departmental expenses to a minimum, and
delaying capital purchases allowed the city to realize an increase in net assets before transfers
of $3,288,815. Total revenue for the governmental activities (excluding transfers from
business-type activities) increased from the previous year by $1,921,413. General Revenue,
which is primarily made up of property taxes, sales taxes, and car rental taxes had a net
increase of $2,854,931. Property tax revenue declined due to an overall decrease in both the
residential and commercial tax base. Sales tax collections increased due to new business
openings and an overall upswing in taxable sales. Program revenues, which consist primarily
of fines, fees, and charges for services declined $511,054. The net assets of general
governmental operations account for 59% of total net assets.
• Business-type activities. Business-type activities increased the City’s net assets by
$2,425,654 accounting for 37% of the total growth in net assets. Total revenue for the
business-type activities increased from the previous year by $3,453,673 due in part to an
increase in water and wastewater rates as well as increased demand. Capital grants and
contributions accounted for more than 21% of the revenue increase. Additionally, as stated
in the governmental activities, sound fiscal management, departmental budget cuts, and
limited capital purchases resulted in an increase in net assets by $2,425,654. Net assets for
business-type activities represent 41% of total net assets.
Expenses and Program Revenues
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City’s financing requirements. In particular, unreserved fund balance may serve as
a useful measure of a City’s net resources available for spending at the end of the fiscal year.
10
At the end of the current fiscal year, the City of Euless’ governmental funds reported combined
ending fund balances of $26,667,932, an increase of $2,395,466 in comparison with prior year.
Of which, approximately 27% or $7.3 million constitutes unassigned fund balance in the general
fund that is available for spending at the City’s discretion. Another $25,009 in non-spendable
fund balance represents amounts invested in inventories and prepayments. Another portion is
reserved to indicate that it is not available for new spending because it has already been
committed 1) to pay debt service ($1,818,957); 2) to pay for specific capital improvements per
developer agreements ($1,484,620); 3) restricted by bond covenant for specific capital projects
($684,336); and 4) for a variety of other restricted purposes ($399,048). The remainder of
$14,959,243 represents assigned fund balance which is the fund balance classification for
residual balances in governmental funds other than the general fund. See discussion under Fund
Balance Classifications in the Notes to the Basic Financial Statements for additional details on
fund balance.
In the General Fund, the City budgeted for a decrease in fund balance (planned reduction) of
$1,517,435. Due to a positive budget variance in overall expenditures, the General Fund ended
the year with an increase to fund balance of $116,103 which represents a positive budget
variance of $1,633,538 resulting primarily from departmental expenditure cuts and personnel
savings. Personnel and related benefit savings of approximately $929,000 resulted primarily
from the elimination of positions and holding numerous vacant positions open throughout the
year. A decline in mowing expenditures due to a reduction in mowing frequency and severe
drought conditions resulted in savings of almost $37,000. Increased rebate incentive payments
from the upsurge in sales tax revenues resulted in increased expenditures of approximately
$44,000. Capital expenditures including street overlay, traffic signals, and sidewalks realized
budgetary savings of nearly $107,000. One-time expenditures were $434,000 under budget as a
result of temporarily delaying purchases and improvements.
The Debt Service fund balance only decreased $4,262 which is $148,191 less than the
anticipated drawdown of $152,453. Streets CIP fund balance increased $2,283,143 due to the
receipt of proceeds from the issuance of debt and the funding of the FY2011 approved projects.
The Car Rental Tax fund balance was originally budgeted to decrease $534,725, was revised to a
decline of $784,725, but instead ended the year with a decrease of just over $295,000 due mainly
to increased revenues resulting from an increase in car rental taxes. The non-major
governmental funds realized a combined increase in fund balance of $296,038 primarily
resulting from increased sales tax collections. The combined net effect of these changes in
governmental fund balances totals $2,395,466.
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 $10,079,281; Drainage Utility fund $1,364,563; Golf Course fund $1,743,023;
and all other non-major recreation enterprise funds combined $1,993,251. The Water and
Wastewater fund increase in unrestricted net assets primarily results from the high volume of
water sales due to the extreme temperatures and drought conditions felt in the region. The
Drainage Utility fund experienced a decrease in net assets primarily resulting from annual
depreciation charges. Unrestricted net assets for the Golf Course fund increased $291,781 while
all other non-major recreation enterprise funds realized an increase of $402,895. The Golf
Course and the Texas Star Sports Complex (non-major recreation enterprise) increases are
11
primarily attributable to the collection of gas lease payments and gas royalties.
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, 2011, totaled $178,366,952 (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 $1,070,145 or less than 1%.
Major capital asset events occurring during the current fiscal year included the following:
• Capital contributions for the year consisted of $27,390 in Community Development Block
Grant (CDBG) contributions for the Senior Center project; $208,903 in CDBG contributions
for wastewater infrastructure along Bayless, Pauline, and Jones; and developer contributions
of $269,161 in utility infrastructure. Federal Emergency Management Grant revenues of
approximately $148,000 provided funding for the purchase of property that had been
repeatedly experiencing flooding issues.
• Facility project completions included the new senior center, installation of an emergency
generator, and the pavilion at the golf course.
• Miscellaneous drainage improvements and street overlay projects located throughout the city
were also completed at a total cost of $700,811.
• Construction-in-progress additions related to general government operations of $3,194,451
primarily consisted of Rio Grande Boulevard ($2,412,048), Baze Road ($596,625), and Ash
Lane ($178,898).
• Capital asset additions for governmental operations include, but are not limited to, an IVR
system at Municipal Court, city-wide radio system replacement, and equipment for the police
department.
• Construction-in-progress additions related to business-type operations totaled $1,525,832 and
consisted primarily of wastewater line replacements of $259,744 and the reclaimed water
main for $1,266,087.
• The water well project was completed at a cost of $331,160 which included the purchase and
installation of a new pump. Wastewater line replacement projects along Fayette,
Woodridge/Koen, and Alexander/Norman/Franklin were also completed at a total cost of
$966,700.
• Drainage projects, including Hurricane Creek and Bear Creek Parkway Erosion, in the
amount of $775,585 were completed during the year.
• The installation of the new lighting at the Texas Star Sports Complex was completed in
FY2011 at a total cost of $475,246 most of which was paid from a grant award.
12
Capital Assets (Net of Accumulated Depreciation)
Amounts shown in 000s activities activities Total
2011 2010 2011 2010 2011 2010
Land 26,350$ 26,212$ 3,366$ 3,334$ 29,716$ 29,546$
Buildings 40,212 37,900 2,532 2,538 42,744 40,438
Other improvements 2,453 2,580 11,217 10,761 13,670 13,341
M&E 5,213 4,822 499 455 5,712 5,277
Infrastructure 36,382 36,898 45,422 46,021 81,804 82,919
Construction in
Progress 3,194 3,874 1,526 1,902 4,720 5,776
Total 113,804$ 112,286$ 64,562$ 65,011$ 178,366$ 177,297$
Business-typeGovernmental
Additional information on the City’s capital assets can be found in Note 3 on pages 40-42 of this
report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $50,135,818. Of this amount, $42,964,879 comprises debt backed by the full
faith and credit of the government. The remainder of the City’s debt, $7,170,939, represents
bonds secured solely by specific revenue sources (i.e. revenue bonds).
Outstanding Debt
Amounts shown in 000s
2011 2010 2011 2010 2011 2010
GO Bonds 29,235$ 30,765$ 8,675$ 9,160$ 37,910$ 39,925$
COs 6,590 4,910 - - 6,590 4,910
GO/CO Deferred Loss (916) (945) (619) (662) (1,535) (1,607)
Revenue Bonds 3,715 4,470 3,580 3,850 7,295 8,320
Revenue Deferred Loss (47) (52) (77) (86) (124) (138)
Totals 38,577$ 39,148$ 11,559$ 12,262$ 50,136$ 51,410$
Governmental
activities
Business-Type
activities Total
In fiscal year 2011, the City issued $6,575,000 in General Obligation Refunding Bonds to
currently refund $6,770,000 of outstanding general obligation debt. Certificates of Obligation in
the amount of $3,035,000 were also issued. The City’s total debt decreased $1,360,000 or 3%
during fiscal year 2011 which is attributed to scheduled annual principal payments combined
with the refunded bonds net of the issuance of the refunding bonds and certificates of obligation.
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 and the water and wastewater revenue debt at Aa2 and the sales tax
revenue debt at A1. Additional information on the City’s long-term debt can be found in Note 4
on pages 42-48.
Economic Factors and Next Year’s Budgets and Rates
In the FY2011-12 budget, General Fund revenues and transfers are budgeted to increase by 3%
from the 2010-11 budget year with property taxes accounting for 30% of budgeted revenues and
13
sales tax comprising approximately 28% of budgeted revenues. Certified assessed valuations as
of July 1, 2011, increased 5.9% from the preceding year.
As of September 30, 2011, the City’s unemployment rate is 7.5% compared to the State of
Texas, which is 8.4%. In the FY2011-12 budget, sales tax receipts are projected to increase 3%
over prior year estimates. The car rental tax receipts are projected to increase by 1% over
FY2011 estimated collections.
Baseline budgeted expenditures in the General Fund are projected to increase approximately 3%
from the FY2010-11 original budget. This increase is primarily attributed to personnel costs
associated with pay raises. The City elected to use excess reserves in various funds to cash flow
capital programs including city computer and technology upgrades, police equipment, digital
imaging software update, copier purchases, greens fans at the golf course, ADA improvements,
and various other equipment purchases and miscellaneous expenses. 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 FY2011-12.
For the Water and Wastewater Fund, the FY2011-12 budget includes the continuation of the
tiered rate structure for water volume billing. Under the tiered structure, customers pay a
graduated volume rate based on varying levels of monthly water consumption. Volume rates
range from $2.48 to $4.96 per thousand gallons. Monthly water and wastewater base rates
remained stable for both residential customers and commercial customers. A wastewater volume
charge of $2.70 per thousand gallons applies to all customer classes. Residential wastewater
volume charges are capped at a maximum of 12,000 gallons per month. The City budgeted to
continue its pay-as-you-go capital program in the Water and Wastewater CIP Fund which
includes approximately $950,000 for replacement and relocation of wastewater lines, the
feasibility study for the extension of the reclaimed water line, and the demolition of the storage
tank and building at the old public works facility.
The Texas Star Golf Course revenues are expected to increase 9% over prior year revenues in
anticipation of improvement in the local economy. However, in fiscal year 2011, economic
uncertainty, vigorous competition, and extreme weather conditions factored heavily in the
operating results for the course. Rounds fell short of projections which lead to green fees and
merchandise sales also falling short of estimates. Raven’s Grille and the Conference Centre
continue to outperform projections with increased sales and bookings.
Request for Information
The financial report is designed to provide citizens, customers, investors, and creditors with a
general overview of the City’s finances. If you have questions about this report or need
additional information, contact the Finance Department, Attn: Vicki Rodriquez, Director of
Finance, at 201 N. Ector Drive, Euless, Texas 76039, call (817) 685-1626, or e-mail
vrodriquez@eulesstx.gov.
CITY OF EULESS, TEXAS
GOVERNMENT–WIDE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2011
The Notes to the Basic Financial Statements
are an integral part of these statements.
14
Primary Government
Governmental Business-type
Activities Activities Total
Deposits and investments 37,672,012$ 15,140,491$ 52,812,503$
Receivables, net of allowances 7,021,500 3,349,278 10,370,778
Internal balances (1,767,810) 1,767,810 -
Inventories, at cost 10,124 270,736 280,860
Prepaid items 14,885 30,081 44,966
Restricted assets
Deposits and investments 684,336 3,088,284 3,772,620
Deferred charges 455,557 155,643 611,200
Net OPEB asset 507,181 124,805 631,986
Capital assets
Land and construction in progress 29,544,291 4,891,761 34,436,052
Other capital assets, net of
accumulated depreciation 84,260,227 59,670,673 143,930,900
Total assets and other debits 158,402,303 88,489,562 246,891,865
Accounts payable 9,165,396 1,385,842 10,551,238
Accrued liabilities 1,261,010 143,998 1,405,008
Accrued interest payable 218,172 75,157 293,329
Deferred revenue 140,165 69,632 209,797
Money held in escrow - 1,550,582 1,550,582
Noncurrent liabilities
Due within one year 3,736,448 748,673 4,485,121
Due in more than one year 39,562,533 11,346,584 50,909,117
Total liabilities 54,083,724 15,320,468 69,404,192
Invested in capital assets, net of
related debt 71,051,094 53,132,882 124,183,976
Restricted for
Debt service 1,818,943 438,948 2,257,891
Impact fees - 2,649,336 2,649,336
Unrestricted 31,448,542 16,947,928 48,396,470
Total net assets 104,318,579$ 73,169,094$ 177,487,673$
ASSETS
LIABILITIES AND NET ASSETS
LIABILITIES
NET ASSETS
CITY OF EULESS, TEXAS GOVERNMENT–WIDE STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2011 The Notes to the Basic Financial Statements are an integral part of these statements. 15 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 5,091,589$ 69,950$ 133$ 121,079$ (4,900,427)$ -$ (4,900,427)$ Development services 1,707,148 779,939 - - (927,209) - (927,209) General and administrative 15,698,832 1,707,890 20,695 - (13,970,247) - (13,970,247) Highways and streets 2,923,241 - - 894,323 (2,028,918) - (2,028,918) Public safety 20,754,733 3,271,115 448,576 - (17,035,042) - (17,035,042) Interest on long-term debt 1,618,420 - - - (1,618,420) - (1,618,420) Total governmental activities 47,793,963 5,828,894 469,404 1,015,402 (40,480,263) - (40,480,263) Business-type activitiesWater & wastewater 17,827,272 19,978,802 - 588,631 - 2,740,161 2,740,161 Drainage utility 1,177,938 694,751 - 184,083 - (299,104) (299,104) Golf 4,483,252 4,746,242 - - - 262,990 262,990 Other recreation enterprises 1,982,613 2,684,905 - - - 702,292 702,292 Total business-type activities 25,471,075 28,104,700 - 772,714 - 3,406,339 3,406,339 Total primary government 73,265,038$ 33,933,594$ 469,404$ 1,788,116$ (40,480,263) 3,406,339 (37,073,924) General RevenuesTaxesProperty taxes, levied for general purposes 11,855,993 - 11,855,993 Sales taxes 13,252,805 - 13,252,805 Car rental taxes 12,457,910 - 12,457,910 Mixed beverage taxes 66,383 - 66,383 Hotel/motel occupancy taxes 272,809 - 272,809 Gross receipts taxes 4,174,627 - 4,174,627 Investment income 168,929 66,161 235,090 Gain/(loss) on sale of assets100,110 (141,979) (41,869) Miscellaneous 1,419,512 - 1,419,512 Transfers904,867 (904,867) - Total general revenues and transfers 44,673,945 (980,685) 43,693,260 Change in net assets 4,193,682 2,425,654 6,619,336 NET ASSETS, beginning of year100,124,897 70,743,440 170,868,337 NET ASSETS, end of year104,318,579$ 73,169,094$ 177,487,673$ Net (Expense) Revenue andChanges in Net AssetsProgram Revenues15
CITY OF EULESS, TEXAS
BALANCE SHEET – GOVERNMENTAL FUNDS
SEPTEMBER 30, 2011
The Notes to the Basic Financial Statements
are an integral part of these statements.
16
Debt Streets Car Non-major Total
General Service CIP Rental Tax Governmental Governmental
Fund Fund Fund Fund Funds Funds
Deposits and investments 7,770,706$ 673,350$ 4,287,236$ 11,036,959$ 7,650,358$ 31,418,609$
Receivables
Property taxes 441,497 188,070 - - - 629,567
Accounts receivable and unbilled revenue 1,431,206 - - 2,098,644 189,020 3,718,870
Accrued interest receivable 14,354 3,000 6,563 9,434 5,622 38,973
Due from other governments 1,523,572 - - - 971,890 2,495,462
Prepaids and deposits 9,220 - - - 5,665 14,885
Inventories, at cost 10,124 - - - - 10,124
Total assets 11,200,679$ 864,420$ 4,293,799$ 13,145,037$ 8,822,555$ 38,326,490$
Liabilities
Accounts payable 1,252,449$ -$ 223,171$ 7,563,108$ 77,948$ 9,116,676$
Accrued salaries and wages 641,911 - - - 77,891 719,802
Unearned revenue 1,575,757 185,096 - - 61,227 1,822,080
Total liabilities 3,470,117 185,096 223,171 7,563,108 217,066 11,658,558
Fund Balances
Nonspendable
Prepaids and inventories 19,344 - - - 5,665 25,009
Restricted for
Debt service - 679,324 - - 1,139,633 1,818,957
Capital projects - - 684,336 - 1,484,620 2,168,956
Other 311,076 - - - 87,972 399,048
Assigned 103,423 - 3,386,292 5,581,929 5,887,599 14,959,243
Unassigned 7,296,719 - - - - 7,296,719
Total fund balances 7,730,562 679,324 4,070,628 5,581,929 8,605,489 26,667,932
Total liabilities and fund balances 11,200,679$ 864,420$ 4,293,799$ 13,145,037$ 8,822,555$ 38,326,490$
ASSETS
LIABILITIES AND FUND BALANCES
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2011
The Notes to the Basic Financial Statements
are an integral part of these statements.
17
Total fund balances - governmental funds 26,667,932$
Capital assets of governmental funds are not current financial
resources and therefore are not reported in the governmental
funds balance sheet. 111,493,855
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.455,557
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.(218,172)
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.7,021,829
Revenues earned but not available within sixty days of the year
end are not recognized as revenue on the fund financial
statements.1,681,915
Long-term liabilities, including bonds payable, compensated
absences, and pension and other post employment benefit
obligations (assets) are not due and payable in the current period
and therefore are not reported in the fund financial statements.(42,784,337)
Net assets of governmental activities 104,318,579$
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, 2011
The Notes to the Basic Financial Statements
are an integral part of these statements.
18
Debt Streets Car Non-major Total
General Service CIP Rental Tax Governmental Governmental
Fund Fund Fund Fund Funds Funds
Revenues
General property tax 8,625,924$ 3,160,655$ -$ - $ - $ 11,786,579$
Gross receipts tax 4,241,010 - - - 272,809 4,513,819
General sales tax 8,306,228 - - - 4,946,577 13,252,805
Car rental tax - - - 12,457,910 - 12,457,910
Fines and fees 4,033,868 - - - - 4,033,868
Licenses and permits 744,978 - - - - 744,978
Investment income 47,407 1,724 16,647 42,038 35,748 143,564
DEA revenues - - - - 6,589 6,589
Intergovernmental 377,660 - - - - 377,660
Rents and royalties - 711,742 - - 521,944 1,233,686
Other revenues 762,895 - - - 432,071 1,194,966
Total revenues 27,139,970 3,874,121 16,647 12,499,948 6,215,738 49,746,424
Expenditures
Current
Culture and recreation 2,571,729 - - - 1,764,057 4,335,786
Development services 998,802 - - - 342,096 1,340,898
General and administrative 7,219,057 - - 8,281,599 110,116 15,610,772
Highways and streets 713,742 - - - - 713,742
Public safety 17,857,689 - - - 1,635,173 19,492,862
Debt service
Principal - 2,690,000 - - 755,000 3,445,000
Interest and fiscal charges - 1,614,819 - - 183,796 1,798,615
Capital outlay - - 3,241,504 243,430 1,498,442 4,983,376
Total expenditures 29,361,019 4,304,819 3,241,504 8,525,029 6,288,680 51,721,051
Excess (deficiency) of
revenues over expenditures (2,221,049) (430,698) (3,224,857) 3,974,919 (72,942) (1,974,627)
Other financing sources (uses)
Proceeds from capital lease - - - - 494,322 494,322
Proceeds from bond issuances - - 3,035,000 - - 3,035,000
Proceeds from bond refunding - 6,575,000 - - - 6,575,000
Premiums on issuance of bonds - 390,694 - - - 390,694
Payment to escrow agent - (6,804,790) - - - (6,804,790)
Transfers in 2,610,116 265,532 2,488,000 - 332,675 5,696,323
Transfers out (272,964) - (15,000) (4,270,475) (458,017) (5,016,456)
Total other financing sources (uses), net 2,337,152 426,436 5,508,000 (4,270,475) 368,980 4,370,093
Net change in fund balances 116,103 (4,262) 2,283,143 (295,556) 296,038 2,395,466
Fund balances, beginning of year 7,614,459 683,586 1,787,485 5,877,485 8,309,451 24,272,466
Fund balances, end of year 7,730,562$ 679,324$ 4,070,628$ 5,581,929$ 8,605,489$ 26,667,932$
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, 2011
The Notes to the Basic Financial Statements
are an integral part of these statements.
19
Net change in fund balances - total governmental funds 2,395,466$
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. In addition,
governmental funds report cash proceeds from the disposal of capital
assets as revenues, while only the net gain/loss on the transaction is
reported in the statement of activities. This is the amount of capital
expenditures and disposals recorded in the current period.5,951,404
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.(3,906,163)
The issuance of long-term debt (e.g. bonds and capital leases) 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.24,024
Current year changes in the long-term liabilites for compensated absences
and pension and other post employment obligations do not require the use
of current financial resources; therefore, they are not reported as
expenditures in governmental funds.(750,140)
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.1,966
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.211,572
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.265,553
Change in net assets of governmental activities 4,193,682$
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, 2011
(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 10,279,905$ 1,199,696$ 1,756,538$ 1,904,352$ 15,140,491$ 6,937,739$
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$38,023 for water and wastewater and
$524 for drainage utility 2,928,098 238,847 119,924 46,012 3,332,881 135,752
Accrued interest receivable 14,453 1,363 581 - 16,397 3,131
Prepaids and deposits 4,386 - 9,553 16,142 30,081 -
Inventory 85,115 - 105,906 79,715 270,736 -
Total unrestricted current assets 13,311,957 1,439,906 1,992,502 2,046,221 18,790,586 7,076,622
Restricted assets
W&WW impact fees - deposits and investments 2,649,336 - - - 2,649,336 -
Revenue bond reserve for debt service 438,948 - - - 438,948 -
Total restricted assets 3,088,284 - - - 3,088,284 -
Total current assets 16,400,241 1,439,906 1,992,502 2,046,221 21,878,870 7,076,622
Non-current assets
Bond issuance cost 65,324 - 76,266 14,053 155,643 -
Net OPEB asset 91,452 3,897 23,698 5,758 124,805 -
Total non-current assets 156,776 3,897 99,964 19,811 280,448 -
Property, plant, and equipment in service, at cost
Land 1,528,966 559,826 692,605 584,532 3,365,929 -
Building 266,059 - 3,523,732 488,275 4,278,066 -
Equipment 947,832 6,400 1,096,608 216,156 2,266,996 7,824,437
Improvements 1,033,401 658,824 8,019,920 8,150,654 17,862,799 -
Construction in progress 1,525,832 - - - 1,525,832 -
Utility system 59,934,427 25,078,805 - - 85,013,232 -
Total property, plant, and equipment in service 65,236,517 26,303,855 13,332,865 9,439,617 114,312,854 7,824,437
Less accumulated depreciation 30,852,957 9,874,039 5,528,388 3,495,036 49,750,420 5,513,774
Net property, plant, and equipment, in service 34,383,560 16,429,816 7,804,477 5,944,581 64,562,434 2,310,663
Total non-current assets 34,540,336 16,433,713 7,904,441 5,964,392 64,842,882 2,310,663
Total assets 50,940,577$ 17,873,619$ 9,896,943$ 8,010,613$ 86,721,752$ 9,387,285$
ASSETS
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS – PROPRIETARY FUNDS
SEPTEMBER 30, 2011
(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 1,230,331$ 12,309$ 102,266$ 40,936$ 1,385,842$ 48,976$
Accrued salaries and wages 272,186 32,877 64,350 18,575 387,988 10,526
Current portion of bonds payable 275,000 - 370,000 140,000 785,000 -
Accrued insurance claims - - - - - 538,144
Deferred revenue - - 69,632 - 69,632 -
Accrued interest 31,869 - 40,070 3,218 75,157 -
Total current liabilities 1,809,386 45,186 646,318 202,729 2,703,619 597,646
Non-current liabilities
Customer and escrow deposits 1,550,582 - - - 1,550,582 -
Net pension obligation 304,484 34,054 73,125 10,052 421,715 -
Bonds payable 3,227,763 - 6,835,922 580,867 10,644,552 -
Total non-current liabilities 5,082,829 34,054 6,909,047 590,919 12,616,849 -
Total liabilities 6,892,215 79,240 7,555,365 793,648 15,320,468 597,646
NET ASSETS
Invested in capital assets,
net of related debt 30,880,797 16,429,816 598,555 5,223,714 53,132,882 2,310,663
Restricted for
Impact fees 2,649,336 - - - 2,649,336 -
Revenue bond reserve for debt service 438,948 - - - 438,948 -
Unrestricted 10,079,281 1,364,563 1,743,023 1,993,251 15,180,118 6,478,976
Total net assets 44,048,362$ 17,794,379$ 2,341,578$ 7,216,965$ 71,401,284 8,789,639$
Reconciliation to government-wide statement of net assets
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 1,767,810
Net assets of business-type activities 73,169,094$
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, 2011
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 11,563,030$ - $ - $ - $ 11,563,030$ - $
Wastewater service 6,448,051 - - - 6,448,051 -
Drainage fees - 694,751 - - 694,751 -
Recreation fees - - - 409,942 409,942 -
Insurance premiums - - - - - 4,992,834
Service fees and miscellaneous 1,967,721 - 4,746,242 2,274,964 8,988,927 714,417
Total operating revenues 19,978,802 694,751 4,746,242 2,684,906 28,104,701 5,707,251
Operating expenses
General and administrative 499,764 - - - 499,764 871,093
Water production 6,825,578 - - - 6,825,578 -
Water distribution 696,909 - - - 696,909 -
Utility engineering 289,290 - - - 289,290 -
Sewage collection and treatment 2,567,384 - - - 2,567,384 -
Nondepartmental 3,357,306 - - - 3,357,306 -
Geographic information 440,208 - - - 440,208 -
Service center 1,275,933 - - - 1,275,933 -
Drainage - 519,622 - - 519,622 -
Recreation classes - - - 365,943 365,943 -
Golf course - - 1,428,083 - 1,428,083 -
Pro shop - - 390,052 - 390,052 -
Food and beverage - - 1,399,807 - 1,399,807 -
Conference center - - 268,729 - 268,729 -
Cart operations - - 196,397 - 196,397 -
Texas Star Sports Complex - - - 1,278,459 1,278,459 -
Arbor Daze - - - - - -
Insurance costs - - - - - 4,158,358
Depreciation 1,692,176 658,315 402,396 296,749 3,049,636 780,103
Amortization 14,757 - 49,084 9,262 73,103 -
Total operating expenses 17,659,305 1,177,937 4,134,548 1,950,413 24,922,203 5,809,554
Operating income (loss) 2,319,497 (483,186) 611,694 734,493 3,182,498 (102,303)
Nonoperating revenues (expenses)
Impact fees 110,567 - - - 110,567 -
Gain (loss) on sale of capital assets 4,055 (148,307) 1,790 483 (141,979) 27,293
Investment income 55,410 4,958 3,805 1,988 66,161 25,349
Interest expense (161,333) - (324,171) (27,136) (512,640) -
Total nonoperating revenues
(expenses), net 8,699 (143,349) (318,576) (24,665) (477,891) 52,642
Income (loss) before contributions
and transfers 2,328,196 (626,535) 293,118 709,828 2,704,607 (49,661)
Developer contribution of assets 478,064 184,083 - - 662,147 -
Transfers in - - 271,916 - 271,916 225,000
Transfers out (947,933) (34,864) (193,986) - (1,176,783) -
Net income (loss) 1,858,327 (477,316) 371,048 709,828 2,461,887 175,339
Net assets, beginning of year 42,190,035 18,271,695 1,970,530 6,507,137 8,614,300
Net assets, end of year 44,048,362$ 17,794,379$ 2,341,578$ 7,216,965$ 8,789,639$
Reconciliation to government-wide statement of net assets
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds (36,233)
Change in net assets of business-type activities 2,425,654$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2011
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 19,766,615$ 534,559$ 5,089,751$ 2,669,744$ 28,060,669$ 5,697,095$
Cash payments to suppliers
for goods and services (12,932,360) (245,281) (2,154,404) (1,189,294) (16,521,339) (4,979,046)
Cash payments to employees
for services (2,628,801) (281,734) (1,499,937) (440,744) (4,851,216) (80,868)
Net cash provided by
operating activities 4,205,454 7,544 1,435,410 1,039,706 6,688,114 637,181
NONCAPITAL FINANCING ACTIVITIES
Transfer in - - 271,916 - 271,916 225,000
Transfer out (947,933) (34,864) (193,986) - (1,176,783) -
Net cash provided by (used in)
noncapital financing activities (947,933) (34,864) 77,930 - (904,867) 225,000
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees 110,567 - - - 110,567 -
Interest paid on bonds (163,538) - (325,375) (27,600) (516,513) -
Reduction in bonds payable (270,000) - (350,000) (135,000) (755,000) -
Purchase of capital assets (1,356,885) (77,848) (175,982) (476,508) (2,087,223) (253,945)
Proceeds from sale of capital assets 4,055 - 1,792 483 6,330 27,662
Net cash used in capital
and related financing activities (1,675,801) (77,848) (849,565) (638,625) (3,241,839) (226,283)
INVESTING ACTIVITIES
Proceeds from sale of investment securities 13,482 - (581) - 12,901 1,935
Interest received on investments 55,410 4,958 3,805 1,988 66,161 25,349
Net cash provided by investing
activities 68,892 4,958 3,224 1,988 79,062 27,284
Net change in cash and cash
equivalents 1,650,612 (100,210) 666,999 403,069 2,620,470 663,182
Cash and cash equivalents,
beginning of year 11,717,577 1,299,906 1,089,539 1,501,283 15,608,305 6,274,557
Cash and cash equivalents, end of year 13,368,189$ 1,199,696$ 1,756,538$ 1,904,352$ 18,228,775$ 6,937,739$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS – CONTINUED
YEAR ENDED SEPTEMBER 30, 2011
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
operating activities
Operating income (loss) 2,319,497$ (483,186)$ 611,694$ 734,493$ 3,182,498$ (102,303)$
Adjustments to reconcile operating
income (loss) to net cash provided
by (used in) operating activities
Depreciation and amortization 1,706,933 658,315 451,480 306,011 3,122,739 780,103
Changes in assets and liabilities:
Accounts receivable and
unbilled revenue (289,688) (160,191) 323,670 (15,164) (141,373) (10,156)
Prepaids and deposits 438 675 (282) (2,083) (1,252) 30,541
Inventory 13,322 - (18,311) (8,992) (13,981) -
Net OPEB asset (1,598) (226) (452) (48) (2,324) -
Net pension obligation 93,916 14,731 24,544 3,925 137,116 -
Accounts payable 262,837 (33,574) 25,279 17,550 272,092 5,949
Accrued salaries and
wages 22,292 11,000 (2,052) 4,014 35,254 1,006
Accrued insurance claims - - - - - (67,959)
Customer and escrow
deposit 77,505 - - - 77,505 -
Deferred revenue - - 19,840 - 19,840 -
Net cash provided by
operating activities 4,205,454$ 7,544$ 1,435,410$ 1,039,706$ 6,688,114$ 637,181$
Noncash financing activities
Developer contributed assets 478,064$ 184,083$ - $ - $ 662,147$
Reconciliation of cash to balance sheet:
Cash - current 10,279,905$ 1,199,696$ 1,756,538$ 1,904,352$ 15,140,491$
Cash - restricted 3,088,284 - - - 3,088,284
Cash and cash equivalents 13,368,189$ 1,199,696$ 1,756,538$ 1,904,352$ 18,228,775$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS – FIDUCIARY FUNDS
SEPTEMBER 30, 2011
The Notes to the Basic Financial Statements
are an integral part of these statements.
25
Stars Center
Escrow OPEB
Agency Fund Trust Fund
ASSETS
Investments at fair value 1,420,839$ 1,222,027$
Total assets 1,420,839$ 1,222,027
LIABILITIES
Due to other entities 1,420,547$ 399
Refunds payable 292 -
Total liabilities 1,420,839$ 399
NET ASSETS
Held in trust for OPEB 1,221,628$
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
OPEB TRUST FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2011
The Notes to the Basic Financial Statements
are an integral part of these statements.
26
OPEB
Trust Fund
ADDITIONS
Employer contributions 658,618$
Other contributions 218,334
Investment losses
Net decrease in fair value of investments (4,607)
Less: investment expense (6,904)
Net investment earnings (11,511)
Total additions 865,441
DEDUCTIONS
Insurance claims 472,152
Total deductions 472,152
Change in net assets 393,289
Net assets - beginning 828,339
Net assets - ending 1,221,628$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
27
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Euless (City) was incorporated on February 24, 1953. The City operates
under a Council-Manager form of government and provides the following services as
authorized by its charter: general government, police and fire protection, emergency
ambulance service, road and traffic signal maintenance, water and wastewater
operations, drainage system, parks and recreational facilities, courts, library services,
planning land use, building inspection, and traffic control.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally
accepted in the United States of America (GAAP) applicable to state and local
governments. GAAP for local governments include those principles prescribed by the
Governmental Accounting Standards Board (GASB), 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
28
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
29
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 restricted exclusively for debt service
expenditures.
Streets Capital Improvements Project Fund
The Streets Capital Improvements Project Fund is used to account for street
construction and reconstruction projects and the means of financing such
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.
Per contractual agreement, revenues are shared with the cities of Dallas and Fort
Worth. The City’s portion of the revenues is 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.
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
30
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 purchasing 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 non-operating
items. Operating revenues and expenses generally result from providing services
and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. Operating expenses for the proprietary funds include the cost of
personnel and contractual services, supplies and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to
when revenues and expenditures are recognized in the accounts and reported in the
financial statements. Basis of accounting relates to the timing of the measurement
made, regardless of the measurement focus applied.
The government-wide statements and fund financial statements for proprietary funds are
reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets and
liabilities (whether current or 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, wastewater, and drainage services which are accrued. Expenses are
recognized at the time the liability is incurred.
Governmental fund financial statements are reported using the current financial
resources measurement focus and are accounted for using the modified accrual basis of
accounting. Under the modified accrual basis of accounting, revenues are recognized
when susceptible to accrual; i.e., become both measurable and available. “Measurable”
means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay liabilities
of the current period. The City considers property taxes as available if they are collected
within 60 days of year end. Expenditures are recorded when the related fund liability is
incurred. However, debt service expenditures, as well as expenditures related to
compensated absences and other long-term liabilities are recorded only when payment
is due.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
31
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Measurement Focus and Basis of Accounting – Continued
The significant revenues susceptible to accrual are property taxes, franchise fees,
licenses, charges for service, interest income, and intergovernmental revenues. Sales
taxes 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.
Deposits and Investments
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash accounts or individual fund investment accounts. Related interest
income is allocated to the various funds based primarily on ownership by each fund of
specific investments. Cash equivalents consist of highly-liquid investments with original
maturities of three months or less.
For purposes of the statement of cash flows, the City considers all highly liquid
investments to be cash equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or less
when purchased are reported at amortized cost. All other investments are reported at
fair value.
State statutes authorize the City to invest in obligations of the U.S. Government or its
agencies; obligations of the State of Texas or its agencies; and certain other obligations,
repurchase agreements, money market mutual funds, and certificates of deposits within
established criterion.
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
32
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 or
expenses initially made from it that are properly applicable to another fund, are recorded
as expenditures or expenses in the reimbursing fund and as a reduction of expenditures
or expenses in the fund reimbursed. All other interfund transactions are recorded as
transfers.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are
reported in the applicable governmental or business-type activities columns in the
government-wide financial statements and in the fund financial statements for
proprietary funds. All capital assets are recorded at historical cost or estimated historical
cost if actual historical cost is not available. Donated assets are recorded at 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 $5,000 or more and over one year of useful
life. Depreciation has been calculated on each class of depreciable property using the
straight-line method. Estimated useful lives are as follows:
Buildings 33 1/3 years
Water and wastewater system 33 1/3 years
Storm drainage system 33 1/3 years
Infrastructure 7 - 40 years
Machinery and equipment 5 - 15 years
Improvements 25 years Compensated Absences
Employees may accumulate a maximum of two times their annual vacation accrual. The
City's policy is to pay the employee accumulated vacation upon termination. The City
does not pay employees for accumulated sick leave upon termination. Vacation pay
accrued in the proprietary fund financial statements is reported as accrued salaries and
wages (a current liability). Compensated absences are recorded in governmental funds
as they mature (i.e. as taken). The liability for governmental fund compensated
absences is typically liquidated in the general fund, the hotel/motel fund, the juvenile
case fund, the half penny sales tax fund, and the crime control and prevention district
fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
33
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications
For the year ended September 30, 2011, the City has adopted GASB Statement No. 54,
Fund Balance Reporting and Governmental Fund Type Definitions, which redefines how
fund balances of the governmental funds are presented in the financial statements.
Fund balances are classified as follows on the governmental fund financial statements:
General Fund
Debt Service
Fund
Street CIP
Fund
Car Rental Tax
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Nonspendable 19,344$ -$ -$ -$ 5,665$ 25,009$
Restricted for
Debt service - 679,324 - - 1,139,633 1,818,957
Capital projects - - 684,336 - 1,484,620 2,168,956
Court technology 311,076 - - - - 311,076
Juvenile case processing - - - - 86,727 86,727
Historical preservation - - - - 1,245 1,245
Assigned
Capital projects - - 3,386,292 5,581,929 3,636,031 12,604,252
Betterments 30,733 - - - - 30,733
Emergency systems 22,805 - - - - 22,805
Tourism and conference facilities - - - - 174,678 174,678
Parks, library, and economic
development - - - - 1,318,808 1,318,808
Police department - - - - 682,457 682,457
Grants - - - - 75,625 75,625
Other 49,885 - - - - 49,885
Unassigned 7,296,719 - - - - 7,296,719
Total 7,730,562$ 679,324$ 4,070,628$ 5,581,929$ 8,605,489$ 26,667,932$
Reported in
Nonspendable: This classification includes amounts that cannot be spent because they
are either (a) not in spendable form or (b) are legally or contractually required to be
maintained intact. The City has classified prepaid items and inventory as being
nonspendable.
Restricted: This classification includes amounts for which constraints have been placed
on the use of the resources either (a) externally imposed by creditors (such as through a
debt covenant), grantors, contributors, or laws or regulations of other governments, or
(b) imposed by law through constitutional provisions or enabling legislation.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
34
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications – Continued
The City has recorded the following restrictions at year-end:
a. Restricted for debt service represents that portion of fund equity legally
restricted for retirement of bond principal and payment of interest.
b. Restricted for capital projects represents that portion of fund equity legally
restricted for capital projects.
c. Restricted for court technology represents funds collected from a court
technology fee that must be used to upgrade court systems.
d. Restricted for juvenile case processing represents funds collected from a fee
on municipal court citations that must be used to support the expenditures
associated with juvenile case processing.
e. Restricted for historical preservation represents donations that must be used
toward the preservation of Euless historical sites.
Committed: This classification includes amounts that can be used only for specific
purposes pursuant to constraints imposed by formal action (ordinance or resolution)
of the City Council. These amounts cannot be used for any other purpose unless the
City Council removes or changes the specified use by taking the same type of action
that was employed when the funds were initially committed. This classification also
includes contractual obligations to the extent that existing resources have been
specifically committed for use in satisfying those contractual requirements. The City
has no committed fund balance at year-end.
Assigned: This classification includes amounts that are constrained by the City’s
intent to be used for a specific purpose but are neither restricted nor committed. This
intent can be expressed by the City Council or through the City Council delegating
this responsibility to the City Manager. This classification also includes the remaining
positive fund balance for all governmental funds except for the General Fund. The
City has recorded the following assignments at year-end:
a. Assigned for capital projects represents revenue sources that are to be used for
capital projects for the City.
b. Assigned for betterment represents funds donated by citizens that are to be used
for the betterment of the community.
c. Assigned for emergency systems represents funding received from the county
that are to be used to upgrade emergency systems.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
35
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications – Continued
d. Assigned for tourism and conference center represents funds to promote the city
through tourism, conference booking, and historical preservation.
e. Assigned for parks, libraries, and economic development represents funds from
sales taxes that are to be used for park improvements, library activities, and
economic development throughout the City.
f. Assigned for the police department are funds from the Crime Control and
Prevention District and the sale of assets seized in connection with drug arrests
to be used for police department expenditures.
g. Assigned for grants are funds from grant revenues that are to be spent in
accordance with grant provisions.
h. Assigned for other are funds from specific revenues that are to be spent for
facility remodel, radio rebanding, victim assistance, injured animals, betterment,
and for emergency system improvements.
Unassigned: This classification includes all amounts that are not included in other
spendable classifications.
When available, the City uses restricted fund balances first, followed by committed
resources, assigned resources, then unassigned resources, as appropriate
opportunities arise. However, the City reserves the right to selectively spend
unassigned resources first to defer the use of these other classified funds.
Net Assets
Net assets represent the difference between assets and liabilities of governmental and
business-type activities and proprietary funds. 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 debt 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
36
NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures
As of September 30, 2011, the City’s portfolio contained the following investments:
% of Rating
Book Value Fair Value Portfolio WAM Rating Agency
Overnight pools
TexPool 9,997,357$ 9,997,357$ 17.16% 44 AAAm S&P
TexStar 11,047,909 11,047,909 18.97% 40 AAAm S&P
LOGIC 70 70 0.00% 46 AAAm S&P
Total overnight 21,045,336 21,045,336 36.13%
Investment securities
FFCB 9,772,193 9,781,668 16.79% 72 AA+ S&P
FHLB 15,063,049 15,073,770 25.88% 88 AA+ S&P
FHLMC 9,001,011 9,011,600 15.47% 85 AA+ S&P
FNMA 2,425,000 2,423,971 4.16% 28 AA+ S&P
TVAS 905,973 910,334 1.56% 4 AA+ S&P
Total investment securities 37,167,226 37,201,343 63.87%
Total portfolio 58,212,562$ 58,246,679$ 100.00% 86
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, FHLMC – Federal Home Loan Mortgage Corporation, FNMA –Federal National
Mortgage Association, and TVAS – Tennessee Valley Authority. The rating agency
acronyms are defined as follows: S&P – Standard and Poor’s Ratings Services, a
division of the McGraw-Hill Companies, Inc. Additional information about the rating
agency or the significance of the ratings provided may be obtained from the agency’s
web site.
Deposits
State statutes and the City’s investment policy 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, 2011. At year-end, the carrying amount of the City’s deposits was a
credit balance of $206,600, with a bank balance of $713,380. The total bank balance is
covered by Federal Depository Insurance Corporation (FDIC) insurance. The additional
collateral is held by The Federal Reserve Bank in the City’s name under a joint
safekeeping
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
37
NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures – Continued
Deposits – Continued
agreement with Frost National Bank. The market value of the collateral at the close of
the fiscal year was $1,655,868.
Investments
State statutes, City bond ordinances, and City resolutions authorize the City’s
investments. The City is authorized to invest in obligations of the U.S. Government and
its agencies and instrumentalities, obligations of the State of Texas and its agencies and
instrumentalities, fully insured or collateralized certificates of deposit, fully-collateralized
repurchase agreements and reverse repurchase agreements, government pools, and
no-load SEC-registered money market funds consisting of any of these securities listed.
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, 2011, 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
38
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, 2011, 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 PFIA; 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 table details the maturity schedule for the City’s investments as of
September 30, 2011.
% of
Maturity Schedule Book Value Fair Value Portfolio
Overnight 21,045,336$ 21,045,336$ 36.13%
up to 6 months 6,431,811 6,437,639 11.05%
6 to 9 months 2,003,741 2,007,990 3.45%
9 to 12 months 4,905,555 4,912,503 8.43%
12 to 15 months 2,054,641 2,061,847 3.54%
15 to 18 months 9,345,686 9,359,762 16.07%
Over 18 months 12,425,792 12,421,602 21.33%
Total 58,212,562$ 58,246,679$ 100.00%
Credit Risk
In compliance with the City’s Investment Policy, as of September 30, 2011, 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
AA+ by Standard & Poor’s; pre-qualifying financial institutions, brokers/dealers, and
advisors with which the City will do business; and diversifying the investment portfolio so
that the potential losses on securities are minimized.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
39
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 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 100%
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, 2011, 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
40
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2011, was as follows:
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Governmental activities
Capital assets not being depreciated
Land 26,211,628$ 138,211$ -$ -$ 26,349,839$
Construction in progress 3,873,590 2,983,365 - (3,662,503) 3,194,452
Total capital assets
not being depreciated 30,085,218 3,121,576 - (3,662,503) 29,544,291
Capital assets being depreciated
Buildings 50,936,957 803,985 - 3,004,344 54,745,286
Improvements other than buildings 5,174,071 50,311 - - 5,224,382
Infrastructure 62,711,339 754,075 - 628,913 64,094,327
Machinery and equipment 6,448,867 1,234,673 (62,747) 29,246 7,650,039
Total capital assets
being depreciated 125,271,234 2,843,044 (62,747) 3,662,503 131,714,034
Less accumulated depreciation
Buildings (13,036,712) (1,496,396) - - (14,533,108)
Improvements other than buildings (2,594,098) (177,402) - - (2,771,500)
Infrastructure (25,812,977) (1,898,855) - - (27,711,832)
Machinery and equipment (4,464,051) (333,510) 49,531 - (4,748,030)
Total accumulated depreciation (45,907,838) (3,906,163) 49,531 - (49,764,470)
Total capital assets being
depreciated, net 79,363,396 (1,063,119) (13,216) 3,662,503 81,949,564
Total governmental fund capital
assets, net 109,448,614 2,058,457 (13,216) - 111,493,855
Internal service funds
Capital assets being depreciated
Machinery and equipment 7,728,876 253,945 (158,384) - 7,824,437
Total internal service assets
being depreciated 7,728,876 253,945 (158,384) - 7,824,437
Less accumulated depreciation
Machinery and equipment (4,891,685) (780,103) 158,014 - (5,513,774)
Total internal service funds
capital assets, net 2,837,191 (526,158) (370) - 2,310,663
Total governmental activities
capital assets, net 112,285,805$ 1,532,299$ (13,586)$ -$ 113,804,518$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
41
NOTE 3. CAPITAL ASSETS – CONTINUED
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Business-type activities
Capital assets not being depreciated
Land 3,333,929$ 32,000$ -$ -$ 3,365,929$
Construction in progress 1,902,176 907,952 - (1,284,296) 1,525,832
Total assets not being depreciated 5,236,105 939,952 - (1,284,296) 4,891,761
Capital assets being depreciated
Buildings 4,157,117 269,256 (148,307) - 4,278,066
Equipment 2,223,061 164,106 (120,171) - 2,266,996
Improvements 16,792,273 471,346 - 599,180 17,862,799
Utility system 83,423,402 904,715 - 685,116 85,013,233
Total capital assets being
depreciated 106,595,853 1,809,423 (268,478) 1,284,296 109,421,094
Less accumulated depreciation
Buildings (1,619,544) (126,043) - - (1,745,587)
Equipment (1,768,415) (119,943) 120,171 - (1,768,187)
Improvements (6,030,827) (615,087) - - (6,645,914)
Utility system (37,402,169) (2,188,563) - - (39,590,732)
Total accumulated depreciation (46,820,956) (3,049,636) 120,171 - (49,750,421)
Total capital asssets being
depreciated, net 59,774,897 (1,240,213) (148,307) 1,284,296 59,670,673
Total business-type activities
capital assets, net 65,011,002$ (300,261)$ (148,307)$ -$ 64,562,434$
Depreciation expense was charged as direct expense to programs of the primary government as follows:
Governmental activities
General administrative 289,202$
Public safety 619,259
Development services 328,924
Culture and recreation 671,613
Highways and streets 1,997,165
Total depreciation expense - governmental activities 3,906,163$
Business-type activities
Water and wastewater 1,692,176$
Drainage utility 658,315
Golf course 402,396
Other 296,749
Total depreciation expense - business-type activities 3,049,636$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
42
NOTE 3. CAPITAL ASSETS – CONTINUED
Outstanding commitments at September 30, 2011, under authorized construction contracts,
were approximately $2,131,442. 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, 2011, bonds payable consisted of the following individual issues:
Governmental Business-type
$6,000,000 Series 2001, General Obligation Bonds, dated
April 1, 2001, partially refunded in 2006 and 2011, due in
annual installments through 2013, bearing interest rates of
4.50% to 6.50%.400,000$ -$
$5,455,000 Series 2001, Revenue Certificates of
Obligation, dated April 1, 2001, partially refunded in 2006
and 2011, due in annual installments through 2012, bearing
interest rates of 4.50% to 6.50%.270,000 -
$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%.2,655,000 -
$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%.1,900,000 -
$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%.- 8,675,000
$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%. 2,395,000 -
$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%. 3,285,000 -
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
43
NOTE 4. LONG-TERM DEBT – CONTINUED
Governmental Business-type
$2,145,000 Series 2004, Waterworks and Sewer System
Revenue Bonds, dated June 15, 2004, due in annual
installments through 2024, bearing interest rates of 3.50%
to 5.25%.-$ 1,590,000$
$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%. 10,305,000 -
$5,080,000 Series 2006, General Obligation Refunding
Bonds, partially refunded in 2011, dated January 30, 2006,
due in annual installments through 2013, bearing interest at
3.93%. 40,000 -
$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%. 1,060,000 -
$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%.- 1,990,000
$8,110,000 Series 2010, Taxable General Obligation
Refunding Bonds, dated August 15, 2010, due in annual
installments through 2025, bearing interest rates of 0.68%
to 4.40%. 7,620,000 -
$6,575,000 Series 2011, General Obligation Refunding
Bonds, dated January 15, 2011, due in annual installments
through 2021, bearing interest rates of 2.00% to 4.00%.6,575,000 -
$3,035,000 Series 2011, Revenue Certificates of
Obligation, dated January 15, 2011, due in annual
installments through 2030, bearing interest rates of 3.00%
to 4.25%.3,035,000 -
39,540,000$ 12,255,000$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
44
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, 2011:
Balance Balance Due
Beginning End within
of Year Increases Decreases of Year One Year
Governmental activities
General obligation bonds 30,765,000$ 6,575,000$ (8,105,000)$ 29,235,000$ 2,300,000$
Certificates of obligation 4,910,000 3,035,000 (1,355,000) 6,590,000 455,000
Sales tax revenue bonds 4,470,000 - (755,000) 3,715,000 780,000
Deferred loss on refunding bonds (996,596) (311,251) 344,859 (962,988) (106,567)
Premium/discount on bonds 260,900 391,095 (62,500) 589,495 62,502
Compensated absences 1,580,168 1,153,698 (1,122,455) 1,611,411 161,141
Net pension obligation 1,420,336 4,073,807 (3,329,976) 2,164,167 -
Capital leases - 438,226 (81,330) 356,896 84,372
Total governmental activities 42,409,808 15,355,575 (14,466,402) 43,298,981 3,736,448
Business-type activities
Water and sewer revenue bonds 3,850,000 - (270,000) 3,580,000 275,000
General obligation refunding bonds 9,160,000 - (485,000) 8,675,000 510,000
Deferred loss on refunding bonds (747,823) - 51,628 (696,195) (51,628)
Premium/discount on bonds (138,352) - 9,098 (129,254) (9,098)
Compensated absences 233,541 215,750 (205,300) 243,991 24,399
Net pension obligation 284,599 793,832 (656,716) 421,715 -
Total business-type activities 12,641,965 1,009,582 (1,556,290) 12,095,257 748,673
Total primary government 55,051,773$ 16,365,157$ (16,022,692)$ 55,394,238$ 4,485,121$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
45
NOTE 4. LONG-TERM DEBT – CONTINUED
Defeased Debt Outstanding
In fiscal year 2011, the City executed a current refunding of series 2001 general
obligation refunding bonds and series 2011 and series 2006 certificates of obligation
totaling $6,770,000. The bonds and certificates were refunded with the issuance of
$6,575,000 of series 2011 general obligation refunding bonds dated January 15, 2011
bearing stated interest rates ranging from 2.00% to 4.00%. The net proceeds from the
refunding issue plus a cash contribution totaling $6,803,791 provided sufficient
resources for the completion of the current refunding transaction.
The current refunding resulted in a difference between the reacquisition price and net
carrying amount of the old debt of $311,251. The difference reported in the
accompanying financial statements as a reduction of bonds payable is amortized
annually through the year 2021 using the effective interest method.
As a result of the current refunding, the City reduced its total debt service requirements
over the next ten years by $398,978, which resulted in an economic gain (the difference
between the present value of the debt service payments on the old and new debt) of
$413,898.
All previously defeased debt has been redeemed.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
46
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations
The annual aggregate maturities for each bond type for the years subsequent to
September 30, 2011, are as follows:
General Obligation Bonds:
Principal Interest Principal Interest Total
2012 2,300,000$ 1,121,388$ 510,000$ 338,656$ 4,270,044$
2013 2,730,000 1,042,359 525,000 322,475 4,619,834
2014 2,785,000 949,983 545,000 304,406 4,584,389
2015 2,890,000 849,290 560,000 285,069 4,584,359
2016 3,005,000 734,558 585,000 264,666 4,589,224
2017-2021 12,280,000 2,023,393 2,365,000 1,045,266 17,713,659
2022-2026 3,245,000 337,670 2,915,000 488,453 6,986,123
2027 - - 670,000 15,075 685,075
29,235,000$ 7,058,641$ 8,675,000$ 3,064,066$ 48,032,707$
Governmental Activities Business-Type Activities
Certificates of Obligation:
Principal Interest Principal Interest Total
2012 455,000$ 286,216$ -$ -$ 741,216$
2013 320,000 266,031 - - 586,031
2014 335,000 253,928 - - 588,928
2015 340,000 241,051 - - 581,051
2016 360,000 226,625 - - 586,625
2017-2021 2,055,000 871,363 - - 2,926,363
2022-2026 1,860,000 365,900 - - 2,225,900
2027-2030 865,000 92,931 - - 957,931
6,590,000$ 2,604,045$ -$ -$ 9,194,045$
Governmental Activities Business-Type Activities
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
47
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Revenue Bonds:
Principal Interest Principal Interest Total
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 885,000 53,162 315,000 118,723 1,371,885
2016 185,000 15,132 325,000 105,955 631,087
2017-2021 205,000 15,908 1,615,000 308,976 2,144,884
2022-2024 - - 460,000 46,750 506,750
3,715,000$ 449,188$ 3,580,000$ 1,006,497$ 8,750,685$
Governmental Activities Business-Type Activities
Water and sewer revenue bonds authorized and unissued as of September 30, 2011,
amounted to $1,200,000. The water and sewer bonds were authorized in 1970, and
currently the City Council has no intent to issue these bonds.
Water and sewer revenue bonds and refunding revenue bonds are payable solely from
and equally secured by a first lien on and pledge of the net revenue of the City's
combined waterworks and sanitary sewer system.
In accordance with the water and sewer revenue and refunding bond ordinances, the
following reserves were established:
Reserve for revenue bond debt service – to be used for retirement of the current
portion of principal and interest payments due.
Reserve for emergency – to be used for payment of extraordinary repairs or
replacements to the system necessitated by an emergency for which no other funds
are available.
Revenue bond reserve – a reserve established with a portion of the bond proceeds
pursuant to the revenue bond covenants which will be used for principal and interest
payments in the event of default by the issuer.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
48
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Should the reserve for revenue bond debt service and/or the revenue bond reserve
prove deficient, the reserve for emergency shall be used for the purpose of meeting
principal and/or interest requirements of the bonds.
All funding requirements for the above reserves were met at September 30, 2011.
Investments of funds included in the bond reserve and emergency accounts are
restricted to obligations of the United States or its agencies or instrumentalities (except
for mortgage pass-through securities).
Capital Lease
The City has entered into a capital lease agreement under which the related equipment
will become the property of the City when all terms of the lease agreement are met.
As of September 30, 2011, capital lease annual amortization is as follows:
Governmental
Activities
Business-Type
Activities
2012 97,720$ -$ 97,720$
2013 97,719 - 97,719
2014 97,720 - 97,720
2015 97,720 - 97,720
390,879 - 390,879
Less interest: (33,982) - (33,982)
Present value of
remaining payments 356,897$ -$ 356,897$
Equipment and related accumulated amortization under capital leases are as follows at
September 30, 2011:
Governmental
Activities
Business-Type
Activities
Equipment 494,322$ -$
Less: accumulated amortization - -
Net book value 494,322$ -$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
49
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 $8,626,000 and are included as operating
expenses of the water and wastewater fund.
The City entered into a 20-year contract dated February 2, 2010, with the City of Fort Worth
(Fort Worth) whereby Fort Worth agreed to provide reclaimed water service to the City.
Payments by the City are based on metered volume. Payments under this contract were
minimal in the year ended September 30, 2011 and are included as operating expenses.
The City is involved in a number of lawsuits arising in the ordinary course of business. In
the opinion of the City's legal counsel and management, any liability resulting from such
litigation would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The water and wastewater enterprise fund historically bears the major portion of the
operating costs of the City's service center, which provides services to all City departments.
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the
operations of those funds.
Non-major Subtotal
General Debt Service Streets CIP Governmental Governmental
Transfers out
General -$ -$ -$ 32,675$ 32,675$
Car rental tax 1,333,333 199,142 2,488,000 250,000 4,270,475
Street CIP - 15,000 - - 15,000
Water and wastewater 947,933 - - - 947,933
Drainage utility 34,864 - - - 34,864
Golf course 193,986 - - - 193,986
Non-major governmental 100,000 51,390 - 50,000 201,390
Total transfers in 2,610,116$ 265,532$ 2,488,000$ 332,675$ 5,696,323$
Transfers in
Major Governmental
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
50
NOTE 7. INTERFUND TRANSFERS – CONTINUED
Internal Golf Subtotal Total
Service Course Proprietary Transfers Out
Transfers out
General 225,000$ 15,289$ 240,289$ 272,964$
Car rental tax - - - 4,270,475
Street CIP - - - 15,000
Water and wastewater - - - 947,933
Drainage utility - - - 34,864
Golf course - - - 193,986
Non-major governmental - 256,627 256,627 458,017
Total transfers in 225,000$ 271,916$ 496,916$ 6,193,239$
Transfers in
Major Enterprise
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, the drainage utility fund, the
golf course fund, and nonmajor governmental funds 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
previously issued bonds.
• The streets CIP fund to the debt service fund to transfer a portion of the proceeds
from debt issuance.
• The non-major governmental funds to the debt service fund for the interest payment
on the 2011 certificates of obligation.
• The car rental tax fund to the streets CIP fund to provide funding for approved capital
projects.
• The car rental tax fund to the nonmajor governmental funds to provide start-up
money for the Glade Parks Public Improvement District.
• The non-major governmental funds to nonmajor governmental funds for approved
capital projects.
• The general fund to the internal service funds for workers’ compensation and general
liability insurance claims.
• The general fund to the golf course fund to rebate the City portion of sales taxes
paid.
• The non-major government funds to the golf course fund to cover a portion of the
operating and debt costs associated with the conference center.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
51
NOTE 8. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The City participates in the Texas Municipal League Joint Self-Insurance Fund ("TMLIF") to
provide both general liability and property insurance.
The City, along with other participating entities, contributes annual amounts determined by
TMLIF management. As claims arise they are submitted to and paid by TMLIF. The City is
not liable for payments beyond their annual contributions to TMLIF and related deductibles.
In fiscal year 2006, the City contracted with the Texas Municipal League Intergovernmental
Risk Pool to provide workers’ compensation insurance and effectively discontinued being
self-insured for workers’ compensation claims. This policy has no deductibles, includes all
claims handling, and has a fixed premium.
In fiscal years prior to 2006, the City was self-insured for workers' compensation claims.
Contributions were made to a separate risk management fund by other funds and were
available to pay claims, claim reserves, and administrative costs of the program. The City
remains liable under its self-insurance program for any claims occurring prior to
October 1, 2005.
The City provides employee health insurance coverage on a self-insured basis. Premiums
are paid into a separate insurance fund by other funds, by the City's employees, and by
retirees. The premiums are used to fund claims, administrative costs of the program, and
claim reserves. An excess coverage insurance policy covers individual claims in excess of
$100,000 and aggregate claims in excess of $4,217,094. During fiscal year 2011, the City
and the City's employees contributed approximately $3,576,616 and $1,070,354
respectively, for medical coverage. The City's contributions are accounted for as interfund
services provided and used. Claims liabilities are based on estimates of the ultimate cost of
claims (including future claim adjustment expenses) that have been reported but not settled,
and of claims that have been incurred but not reported, and are accounted for in the
Insurance Internal Service Fund.
Changes in the balances of health and dental claims liabilities for the years ended
September 30 are as follows:
2011 2010
Unpaid claims, beginning of year 546,269$ 486,838$
Incurred claims 2,984,821 3,855,832
Paid claims (3,037,748) (3,796,401)
Unpaid claims, end of year 493,342$ 546,269$
Settlement amounts have not exceeded stop loss insurance coverage for the year ended
September 30, 2011 or any of the three preceding years ended September 30.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
52
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 2009 Plan Year 2010
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.
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
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
53
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Contribution – Continued
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:
Annual required contribution (ARC) 4,845,567$
Interest on net pension obligations 127,870
Adjustment to the ARC (105,798)
Annual pension cost (APC) 4,867,639
Contributions made 3,986,693
Increase (decrease) in net pension obligation 880,946
Net pension obligation, beginning of year 1,704,935
Net pension obligation, end of year 2,585,881$
The required contribution rates for fiscal year 2011 were determined as a part of the
December 31, 2008 and 2009 actuarial valuations. Additional information from those
valuations, as well as the December 31, 2010 valuations.
December 31, 2008 December 31, 2009 December 31, 2010
Restructured December 31,
2010
Actuarial cost method Projected Unit Credit Projected Unit Credit Projected Unit Credit Projected Unit Credit
Amortization method Level Percent of Payroll Level Percent of Payroll Level Percent of Payroll Level Percent of Payroll
Remaining amortization period 29 years - closed period 28 years - closed period 27.1 years - closed period 27.2 years - closed period
Asset valuation method Amortized Cost 10 year Smoothed Market 10 year Smoothed Market 10 year Smoothed Market
Actuarial assumption
Investment rate of return 7.5% 7.5% 7.5% 7.0%
Project salary increases Varies by age/service Varies by age/service Varies by age/service Varies by age/service
Inflation 3% 3% 3% 3%
Cost of living adjustments 2.1% 2.1% 2.1% 2.1%
Euless payroll growth assumptions 3% 3% 3% 3%
Valuation date
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 (2010-2017) 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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
54
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Contribution – Continued
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. The City
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.
In June, 2011, SB 350 was enacted by the Texas Legislature, resulting in a restructure
of the TMRS funds. This legislation provided for the actuarial valuation to be completed,
as if restructuring had occurred on December 31, 2010. In addition, the actuarial
assumptions were updated for the new fund structure, based on an actuarial experience
study that was adopted by the TMRS Board at their May, 2011 meeting (the review
compared actual to expected experience for the four-year period of January 1, 2006
through December 31, 2009). For a complete description of the combined impact of the
legislation and new actuarial assumptions, including the effects on TMRS city rates and
funding ratios, please see the December 31, 2010 TMRS Comprehensive Annual
Financial Report (CAFR).
The funded status under the two separate actuarial valuations is presented as follows as
of actuarial valuation dated December 31:
Unfunded
Valuation Actuarial Actuarial Actuarial Annual UAAL
Dated Value of Accrued Accrued Liability Fund Covered as % of
December 31 Assets Liability (UAAL) Ratio Payroll Payroll
2008 67,152,370$ 96,562,897$ 29,410,527$ 69.54% 22,690,833$ 129.61%
2009 71,502,626 102,289,037 30,786,411 69.90% 22,810,769 134.96%
2010 78,228,514 109,788,494 31,559,980 71.25% 22,615,709 139.55%
2010* 111,425,190 134,305,874 22,880,684 82.96% 22,615,709 101.17%
* Restructured
Annual pension cost and percentage of pension cost contributed are as follows:
Annual Actual Net Pension
Fiscal Year Pension Contribution Percentage Obligation at
Ended 9/30 Cost Made Contributed Year End
2009 4,116,079$ 4,116,079$ 100% -$
2010 4,525,085 2,820,150 79% 1,704,935
2011 4,867,639 3,986,692 82% 2,585,881
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
55
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Contribution – Continued
Actuarial valuations involve estimates of the value of reported amounts and assumptions
about the probability of events far into the future. Actuarially determined amounts are
subject to continual revision as actual results are compared to past expectations and
new estimates are made about the future.
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS
Postemployment Healthcare Plan
Plan Description
The City adopted the City of Euless Post-Employment Benefits Trust (OPEB Trust) by
passage of Resolution No. 09-1319 on September 8, 2009 which authorized
participation in the PARS Public Agencies Post-Retirement Health Care Plan Trust,
including the City of Euless Public Agencies Post-Retirement Health Care Plan (the
Plan), as part of the City’s Retirement Program. Article III of the Public Agencies Post-
Retirement Health Care Plan Master Plan Document as adopted provides for the
determination of eligibility under the plan to each participating Employer to the extent
provided in the Employer’s applicable policies. The City’s policies with regard to post-
employment healthcare coverage are governed by the City of Euless Medical and Dental
Plan, the City’s group health insurance plan, the benefits of which are established by
management.
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.
The OPEB Trust is an agent multiple-employer trust arrangement established to provide
economies of scale and efficiency of administration to public agencies. The OPEB Trust
is established as a tax-exempt trust within the meaning of Section 115 of the Internal
Revenue Code and is intended to hold the assets used to fund the City’s post-
employment benefits offered by the City to its employees as specified in the City’s
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
56
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Postemployment Healthcare Plan – Continued
policies. The OPEB Trust is administered by Public Agency Retirement Services
pursuant to the Trust Agreement adopted on September 8, 2009 by the City Council with
passage of Resolution No. 09-1319. Upon adoption of the Trust Agreement, a separate
Agency Account was established under the OPEB Trust for the City, and all assets of
the Trust attributable to the City are 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 657.26$ 7.08$
Retiree plus children 1,162.32 11.58
Retiree plus spouse 1,386.80 13.76
Retiree plus family 1,723.54 19.44
Monthly Premiums
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
57
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:
Contribution Discount
Service Retiree Only Children Retiree plus Spouse 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:
Contribution Discount
Service Retiree Only Children Retiree plus Spouse plus Family
20-24 years 35% 50% 50% 50%
25-29 years 50% 65% 65% 65%
30+ years 60% 75% 75% 75%
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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
58
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
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.
Annual required contribution 860,892$
Interest on net OPEB obligation (43,394)
Adjustments to annual required contribution 51,075
Annual OPEB cost (expense) 868,573
Contributions made (880,652)
Change in OPEB obligation (12,079)
Net OPEB obligation (asset) - beginning of year (619,908)
Net OPEB obligation (asset) - end of year (631,987)$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for fiscal year 2010 are as follows:
Discount Annual % of Annual Net OPEB
Rate OPEB Cost Cost Contributed Obligation
9/30/2009 7.00% 596,540$ 149.17% (293,324)$
9/30/2010 7.00% 661,422 149.38% (619,908)
9/30/2011 7.00% 868,574 101.39% (631,987)
Fiscal Year
Ended
Discount Funded
Rate Ratio
2008 -$ 7% 5,785,752$ - 5,785,752$
2009 400,005 7% 6,651,203 6.0% 6,251,198
2010 828,339 7% 8,368,989 9.9% 7,540,650
Actuarial
Valuation
October 1
Actuarial
Value of
Assets
Actuarial
Accrued
Liability (AAL)
Unfunded
AAL (UAAL)
The actuarial accrued liability is determined under the projected unit credit cost method.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
59
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Status and Funding Progress
As of October 1, 2010, the most recent actuarial valuation date, the plan was 90.1%
unfunded. The actuarial value of assets was $828,339, resulting in an UAAL of
$7,540,650.
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 Basic Financial Statements, presents multi-year
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, 2010, 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 7% (5.9% for
dental) initially, declining by decrements to an ultimate rate of 5.9% (4.62% for dental)
after nine years (seven years for dental). The UAAL is being amortized over a thirty-
year closed period utilizing a level dollar amortization method.
Supplemental Death Benefits Plan
Plan Description
During the current fiscal year, the City discontinued participation in the TMRS
Supplemental Death Benefits plan. Coverage is now provided via an insurance policy
provided by the City.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
60
NOTE 11. SUBSEQUENT EVENT
Early in fiscal year 2012, the City executed a current refunding in the amount of $710,000
and an advance refunding of $5,015,000 (total of $5,725,000) of general obligation bonds
and certificates of obligation. The bonds and certificates were refunded with a single issue of
$5,995,000 General Obligation Refunding Bonds, Series 2012. The proceeds of the
refunding bonds provided resources to purchase U. S. government securities that were
placed in an irrevocable trust for the purpose of generating resources for all future debt
service payments of the refunded debt. As a result, the refunded bonds will be considered
to be defeased and the liability will be removed from the City’s financial records in fiscal year
2012. The refundings were undertaken to reduce total debt service payments over the next
thirteen years by $562,514 and to obtain an economic gain of $455,005.
At the same time, the Euless Development Corporation, a blended component unit of the
City, also executed a current refunding of its outstanding debt of $3,715,000 of sales tax
revenue bonds. The bonds were refunded with a single issue of $3,785,000 Sales Tax
Revenue Refunding Bonds, Series 2012. The refunding was undertaken to reduce total
debt service payments over the next eight years by $225,524 and to obtain an economic
savings of $206,585.
NOTE 12. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2011, the following individual funds had an excess of expenditures
over appropriations:
Police drug enforcement fund $44,346
Public safety grant special revenue fund 26,496
Juvenile case special revenue fund 173
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN
TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2011
61
Unfunded
Valuation Actuarial Actuarial Actuarial Annual UAAL
Dated Value of Accrued Accrued Liability Fund Covered as % of
December 31, Assets Liability (UAAL) Ratio Payroll Payroll
2001 45,049,200$ 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%
2009 71,502,626 102,289,037 30,786,411 69.90% 22,810,769 134.96%
2010 78,228,514 109,788,494 31,559,980 71.25% 22,615,709 139.55%
2010* 111,425,190 134,305,874 22,880,684 82.96% 22,615,709 101.17%
* Restructured
The Schedule of Funding Progress summarizes the actuarial value of the plan's assets and
actuarial accrued liability as of December 31, 2010 and each of the nine preceding calendar
years. The data presented in the schedule was obtained annually from TMRS and was 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, 2010, the plan's funded ratio was 82.96%.
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 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, 2010, the plan's ratio of the UAAL to its covered
payroll decreased to 101%.
Calendar Years
2011 2010 2009 2008 2007
City's annual contribution stated
as a % of covered payroll 17.99% 16.49% 15.19% 14.51% 14.25%
Note Source: TMRS Comprehensive Annual Report for the Year Ending December 31, 2010 and City records.
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS – OPEB TRUST
SEPTEMBER 30, 2011
62
Discount Funded
Rate Ratio
2008 -$ 7% 5,785,752$ 0% 5,785,752$
2009 400,005 7% 6,651,203 6% 6,251,198
2010 828,339 7% 8,368,989 10% 7,540,650
Actuarial
Accrued Liability
(AAL)
Unfunded AAL
(UAAL)
Actuarial
Valuation
October 1
Actuarial Value
of Assets
The Schedule of Funding Progress summarizes the actuarial value of the plan’s assets and
actuarial accrued liability as of October 1, 2010 and the preceding calendar years for which the
trust has been in effect.
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 an 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 September 30, 2011, the plan’s funded ratio rose to 10%.
For more information concerning the plan and the actuarial method and assumptions, see Note
10 Other Post Employment Benefits in the Notes to the Financial Statements.
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2011
63
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax
Current and delinquent taxes 8,578,493$ 8,578,493$ 8,565,215$ (13,278)$
Penalty and interest 85,000 85,000 60,709 (24,291)
Total property tax 8,663,493 8,663,493 8,625,924 (37,569)
Gross receipts tax
Telephone line access fee 405,000 405,000 392,760 (12,240)
Electric company 1,600,000 1,600,000 1,629,194 29,194
Gas company 358,580 358,580 334,123 (24,457)
Cable TV 553,537 553,537 683,100 129,563
City garbage service 175,000 175,000 173,596 (1,404)
Water and wastewater system 926,515 926,515 947,933 21,418
Others 91,600 91,600 80,304 (11,296)
Total gross receipts tax 4,110,232 4,110,232 4,241,010 130,778
General sales tax 8,000,337 8,000,337 8,306,228 305,891
Fines and fees
Municipal court fines 2,952,045 2,952,045 2,691,775 (260,270)
Jail income 250,000 250,000 302,047 52,047
Dog licenses and pound fees 7,000 7,000 7,425 425
Ambulance fees 885,000 885,000 830,955 (54,045)
Library fees 36,100 36,100 35,809 (291)
Zoning fees 7,675 7,675 27,336 19,661
Deferred adjudication fee 160,000 160,000 138,521 (21,479)
Total fines and fees 4,297,820 4,297,820 4,033,868 (263,952)
Licenses and permits
Building permits 430,000 430,000 406,495 (23,505)
Miscellaneous permits 235,475 235,475 215,990 (19,485)
Minimum housing 246,000 246,000 122,493 (123,507)
Total licenses and permits 911,475 911,475 744,978 (166,497)
Investment income 125,000 125,000 47,407 (77,593)
Intergovernmental 349,229 349,229 377,660 28,431
Other revenues
Rental income 275,000 275,000 514,852 239,852
Swimming pools 15,000 15,000 17,613 2,613
Miscellaneous income 171,550 171,550 230,430 58,880
Total other revenues 461,550 461,550 762,895 301,345
Total revenues 26,919,136 26,919,136 27,139,970 220,834
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2011
(CONTINUED)
64
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Expenditures
Current
Culture and recreation 2,721,926$ 2,721,926$ 2,571,729$ 150,197$
Development services 1,203,905 1,203,905 998,802 205,103
General and administrative 7,823,218 7,823,218 7,219,057 604,161
Highways and streets 886,220 886,220 713,742 172,478
Public safety 18,360,521 18,360,521 17,857,689 502,832
Total expenditures 30,995,790 30,995,790 29,361,019 1,634,771
Excess (deficiency) of
revenues over expenditures (4,076,654) (4,076,654) (2,221,049) 1,855,605
Other financing sources (uses)
Transfers in 2,814,848 2,814,848 2,610,116 (204,732)
Transfers out (255,629) (255,629) (272,964) (17,335)
Total other financing
sources (uses), net 2,559,219 2,559,219 2,337,152 (222,067)
Net change in fund balance (1,517,435) (1,517,435) 116,103 1,633,538
Fund balance,
beginning of year 7,614,459 7,614,459 7,614,459 -
Fund balance, end of year 6,097,024$ 6,097,024$ 7,730,562$ 1,633,538$
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE – CAR RENTAL TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2011
65
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Car rental tax 12,000,000$ 12,000,000$ 12,457,910$ 457,910$
Investment income 60,000 60,000 42,038 (17,962)
Total revenues 12,060,000 12,060,000 12,499,948 439,948
Expenditures
General and administrative 8,000,000 8,000,000 8,281,599 (281,599)
Capital outlay 574,250 574,250 243,430 330,820
Total expenditures 8,574,250 8,574,250 8,525,029 49,221
Excess of revenues over
expenditures 3,485,750 3,485,750 3,974,919 489,169
Other financing uses
Transfers out (4,020,475) (4,270,475) (4,270,475) -
Total other
financing uses (4,020,475) (4,270,475) (4,270,475) -
Net change in fund balance (534,725) (784,725) (295,556) 489,169
Fund balance, beginning of year 5,877,485 5,877,485 5,877,485 -
Fund balance, end of year 5,342,760$ 5,092,760$ 5,581,929$ 489,169$
Budgeted Amounts
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2011
66
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
67
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
department which must be spent in accordance with the grant provisions.
Glade Parks PID Fund – to account for the accumulation of resources from an
assessment levied upon properties within the district boundaries. The resources are
utilized for the repayment of debt issued to fund public improvements within the district.
The district assesses property owners only for the portion of the debt payment not
covered with resources of the Glade Parks TIRZ (which has no activity for FY 2011).
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.
68
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 $2,000,000 in 1990.
Street Assessments Fund – to account for receipt of funds for special assessment
collection and subsequent construction of improvements to various street and drainage
projects.
Half-Penny Sales Tax Capital Projects Fund – to account for bond proceeds to be
expended for construction projects funded by the Euless Development Corporation, a
component unit of the City of Euless.
Developers' Contribution Fund – to account for funds received for the purpose of making
new and future improvements to various development areas within the City.
Car Rental Capital Projects Fund – to account for building and infrastructure projects
that are funded from the short-term motor vehicle tax.
Police Facility Construction Fund – to account for the construction of a police facility.
General Obligation Capital Projects Fund – to account for various general construction
projects within the City.
Redevelopment Fund – to account for land acquisition and revitalization projects
designed to enhance development and promote redevelopment throughout the
community.
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2011
69
Police Crime Glade Parks
Drug Half Control and Public Public Special
Hotel/ Enforce- Penny Prevention Safety Juvenile Improvement Revenue
Motel ment Sales Tax District Grant Case District Funds
Fund Fund Fund Fund Fund Fund Fund Total
ASSETS
Deposits and investments 98,340$ 266,963$ 1,758,497$ 153,942$ 61,152$ 88,103$ 198,610$ 2,625,607$
Accounts receivable 77,832 - - 256 15,268 3,806 - 97,162
Accrued interest receivable - - 278 - - - - 278
Due from other governments - - 666,850 305,040 - - - 971,890
Prepaids 204 - 5,351 110 - - - 5,665
Total assets 176,376$ 266,963$ 2,430,976$ 459,348$ 76,420$ 91,909$ 198,610$ 3,700,602$
LIABILITIES AND
FUND BALANCES
Liabilities
Accounts payable 249$ 2,344$ 73,858$ -$ 195 -$ -$ 76,646$
Accrued salaries and wages - - 34,515 41,400 600 1,376 - 77,891
Deferred revenue - - 57,421 - - 3,806 - 61,227
Total liabilities 249 2,344 165,794 41,400 795 5,182 - 215,764
Fund Balances
Nonspendable 204 - 5,351 110 - - - 5,665
Restricted, debt service - - 941,023 - - - 198,610 1,139,633
Restricted, historical preservation 1,245 - - - - - - 1,245
Restricted, juvenile case processing - - - - - 86,727 - 86,727
Restricted, development agreements - - - - - - - -
Assigned 174,678 264,619 1,318,808 417,838 75,625 - - 2,251,568
Total fund balances 176,127 264,619 2,265,182 417,948 75,625 86,727 198,610 3,484,838
Total liabilities and fund balances 176,376$ 266,963$ 2,430,976$ 459,348$ 76,420$ 91,909$ 198,610$ 3,700,602$
Special Revenue Funds
70
Park
Improvements Half-Penny Car Rental Police General 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
-$ 44,970$ 1,497,131$ 1,484,620$ 195,203$ 108,507$ 1,414,091$ 280,229 5,024,751$ 7,650,358$
- - - - - - 91,858 - 91,858 189,020
- - 2,153 - - - 3,191 - 5,344 5,622
- - - - - - - - - 971,890
- - - - - - - - - 5,665
-$ 44,970$ 1,499,284$ 1,484,620$ 195,203$ 108,507$ 1,509,140$ 280,229$ 5,121,953$ 8,822,555$
-$ -$ 1,302$ -$ -$ -$ -$ -$ 1,302$ 77,948$
- - - - - - - - - 77,891
- - - - - - - - - 61,227
- - 1,302 - - - - - 1,302 217,066
- - - - - - - - - 5,665
- - - - - - - - - 1,139,633
- - - - - - - - - 1,245
- - - - - - - - - 86,727
- - - 1,484,620 - - - - 1,484,620 1,484,620
- 44,970 1,497,982 - 195,203 108,507 1,509,140 280,229 3,636,031 5,887,599
- 44,970 1,497,982 1,484,620 195,203 108,507 1,509,140 280,229 5,120,651 8,605,489
-$ 44,970$ 1,499,284$ 1,484,620$ 195,203$ 108,507$ 1,509,140$ 280,229$ 5,121,953$ 8,822,555$
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, 2011
71
Police Crime Glade Parks
Drug Half Control and Public Public Special
Hotel/ Enforce- Penny Prevention Safety Juvenile Improvement Revenue
Motel ment Sales Tax District Grant Case District Funds
Fund Fund Fund Fund Fund Fund Fund Totals
Revenues
Gross receipts tax 272,809$ - $ - $ - $ - $ - $ - $ 272,809$
General sales tax - - 3,322,491 1,624,086 - - - 4,946,577
Investment income 136 266 10,020 152 - 77 10,651
DEA revenues - 6,589 - - - - - 6,589
Rents and royalties - - 68,115 - - - - 68,115
Other revenues 9 83,833 - - 90,197 79,510 253,549
Total revenues 272,954 90,688 3,400,626 1,624,238 90,197 79,587 - 5,558,290
Expenditures
Culture and recreation - - 1,763,638 - - - - 1,763,638
Development services - - 342,096 - - - - 342,096
General and administrative 7,235 - 42,559 - - 50,322 100,116
Public safety - 47,346 - 1,466,089 121,738 - - 1,635,173
Debt service -
Principal - - 755,000 - - - - 755,000
Interest and fiscal charges - - 183,796 - - - - 183,796
Capital outlay - - - 67,859 - - - 67,859
Total expenditures 7,235 47,346 3,087,089 1,533,948 121,738 50,322 - 4,847,678
Excess (deficiency) of
revenues over expenditures 265,719 43,342 313,537 90,290 (31,541) 29,265 - 710,612
Other financing sources (uses)
Transfers in - - - - 32,675 - 250,000 282,675
Transfers out (256,627) - (50,000) - - - (51,390) (358,017)
Proceeds from capital lease - - - - - - - -
Total other
financing sources (uses), net (256,627) - (50,000) - 32,675 - 198,610 (75,342)
Net change in fund balances 9,092 43,342 263,537 90,290 1,134 29,265 198,610 635,270
Fund balance,
beginning of year 167,035 221,277 2,001,645 327,658 74,491 57,462 - 2,849,568
Fund balance, end of year 176,127$ 264,619$ 2,265,182$ 417,948$ 75,625$ 86,727$ 198,610$ 3,484,838$
Special Revenue Funds
72
Park
Improvements Half-Penny Car Rental Police General 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
- $ - $ - $ - $ - $ - $ - $ - $ - $ 272,809$
- - - - - - - - - 4,946,577
- - 7,670 4,196 264 137 12,454 376 25,097 35,748
- - - - - - - - - 6,589
- - - - - - 453,829 - 453,829 521,944
- - - 26,347 - - 152,175 - 178,522 432,071
- - 7,670 30,543 264 137 618,458 376 657,448 6,215,738
- - - 419 - - - - 419 1,764,057
- - - - - - - - - 342,096
- - - - - - - 10,000 10,000 110,116
- - - - - - - - - 1,635,173
- -
- - - - - - - - - 755,000
- - - - - - - - - 183,796
125 - 70,575 - - - 1,359,883 1,430,583 1,498,442
125 - 70,575 419 - - 1,359,883 10,000 1,441,002 6,288,680
(125) - (62,905) 30,124 264 137 (741,425) (9,624) (783,554) (72,942)
- - 50,000 - - - - - 50,000 332,675
- - - - - - (100,000) - (100,000) (458,017)
- - - - - - 494,322 - 494,322 494,322
- - 50,000 - - - 394,322 - 444,322 368,980
(125) - (12,905) 30,124 264 137 (347,103) (9,624) (339,232) 296,038
125 44,970 1,510,887 1,454,496 194,939 108,370 1,856,243 289,853 5,459,883 8,309,451
- $ 44,970$ 1,497,982$ 1,484,620$ 195,203$ 108,507$ 1,509,140$ 280,229$ 5,120,651$ 8,605,489$
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, 2011
73
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax 267,000$ 267,000$ 272,809$ 5,809$
Investment income 500 500 136 (364)
Other revenues - - 9 9
Total revenues 267,500 267,500 272,954 5,454
Expenditures
General and administrative 10,000 10,000 7,235 2,765
Total expenditures 10,000 10,000 7,235 2,765
Other financing uses
Transfers out (256,627) (256,627) (256,627) -
Total other financing uses (256,627) (256,627) (256,627) -
Net change in fund balance 873 873 9,092 8,219
Fund balance, beginning of year 167,035 167,035 167,035 -
Fund balance, end of year 167,908$ 167,908$ 176,127$ 8,219$
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, 2011
74
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income 4,000$ 4,000$ 266$ (3,734)$
DEA revenues - - 6,589 6,589
Other revenues - - 83,833 83,833
Total revenues 4,000 4,000 90,688 86,688
Expenditures
Public safety 3,000 3,000 47,346 (44,346)
Total expenditures 3,000 3,000 47,346 (44,346)
Net change in fund balance 1,000 1,000 43,342 42,342
Fund balance, beginning of year 221,277 221,277 221,277 -
Fund balance, end of year 222,277$ 222,277$ 264,619$ 42,342$
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, 2011
75
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 3,200,135$ 3,200,135$ 3,322,491$ 122,356$
Rents and Royalties - - 68,115 68,115
Investment income 1,500 1,500 10,020 8,520
Total revenues 3,201,635 3,201,635 3,400,626 198,991
Expenditures
Culture and recreation 1,922,327 1,922,327 1,763,638 158,689
Development services 474,043 474,043 342,096 131,947
General and administrative 176,181 176,181 42,559 133,622
Debt service
Principal 755,000 755,000 755,000 -
Interest and fiscal charges 183,812 183,812 183,796 16
Total expenditures 3,511,363 3,511,363 3,087,089 424,274
Other financing uses
Transfers in - - - -
Transfers out (50,000) (50,000) (50,000) -
Total other
financing uses (50,000) (50,000) (50,000) -
Net change in fund balance (359,728) (359,728) 263,537 623,265
Fund balance, beginning of year 2,001,645 2,001,645 2,001,645 -
Fund balance, end of year 1,641,917$ 1,641,917$ 2,265,182$ 623,265$
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, 2011
76
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 1,585,522$ 1,585,522$ 1,624,086$ 38,564$
Investment income 500 500 152 (348)
Total revenues 1,586,022 1,586,022 1,624,238 38,216
Expenditures
Public safety 1,526,885 1,526,885 1,466,089 60,796
Capital outlay 75,733 75,733 67,859 7,874
Total expenditures 1,602,618 1,602,618 1,533,948 68,670
Net change in fund balance (16,596) (16,596) 90,290 106,886
Fund balance, beginning of year 327,658 327,658 327,658 -
Fund balance, end of year 311,062$ 311,062$ 417,948$ 106,886$
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, 2011
77
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues 79,613$ 79,613$ 90,197$ 10,584$
Total revenues 79,613 79,613 90,197 10,584
Expenditures
Public safety 95,242 95,242 121,738 (26,496)
Total expenditures 95,242 95,242 121,738 (26,496)
Other financing sources
Transfers in 15,629 15,629 32,675 17,046
Total other financing sources 15,629 15,629 32,675 17,046
Net change in fund balance - - 1,134 1,134
Fund balance, beginning of year 74,491 74,491 74,491 -
Fund balance, end of year 74,491$ 74,491$ 75,625$ 1,134$
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, 2011
78
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income -$ -$ 77$ 77$
Other revenues 75,000 75,000 79,510 4,510
Total revenues 75,000 75,000 79,587 4,587
Expenditures
General and administrative 50,149 50,149 50,322 (173)
Total expenditures 50,149 50,149 50,322 (173)
Net change in fund balance 24,851 24,851 29,265 4,414
Fund balance, beginning of year 57,462 57,462 57,462 -
Fund balance, end of year 82,313$ 82,313$ 86,727$ 4,414$
Budgeted Amounts
79
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, 2011
(1 of 2)
80
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
ASSETS
Current assets
Deposits and investments 390,974$ 1,482,332$ 31,046$ 1,904,352$
Accounts receivable and
unbilled revenue - 46,012 - 46,012
Prepaids and deposits 589 15,553 - 16,142
Inventory - 79,715 - 79,715
Total current assets 391,563 1,623,612 31,046 2,046,221
Non-current assets
Bond issuance cost, net - 14,053 - 14,053
Net OPEB asset 555 5,203 - 5,758
Total non-current assets 555 19,256 - 19,811
Property, plant, and equipment, at cost
Land - 584,532 - 584,532
Building - 488,275 - 488,275
Equipment 89,658 126,498 - 216,156
Improvements - 8,150,654 - 8,150,654
Total property, plant, and equipment 89,658 9,349,959 - 9,439,617
Less accumulated depreciation 71,328 3,423,708 - 3,495,036
Net property, plant, and equipment 18,330 5,926,251 - 5,944,581
Total non-current assets 18,885 5,945,507 - 5,964,392
Total assets 410,448$ 7,569,119$ 31,046$ 8,010,613$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2011
(2 of 2)
81
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable 5,038$ 35,898$ - $ 40,936$
Accrued salaries and wages 2,021 16,554 - 18,575
Current portion of bonds payable - 140,000 - 140,000
Accrued interest - 3,218 - 3,218
Total current liabilities 7,059 195,670 - 202,729
Non-current liabilities
Net pension obligation 168 9,884 - 10,052
Bonds payable - 580,867 - 580,867
Total non-current liabilities 168 590,751 - 590,919
Total liabilities 7,227 786,421 - 793,648
NET ASSETS
Invested in capital assets,
net of related debt 18,330 5,205,384 - 5,223,714
Unrestricted 384,891 1,577,314 31,046 1,993,251
Total net assets 403,221$ 6,782,698$ 31,046$ 7,216,965$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2011
82
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
Operating revenues
Recreation fees 409,942$ - $ - $ 409,942$
Service fees and miscellaneous - 2,274,964 - 2,274,964
Total operating revenues 409,942 2,274,964 - 2,684,906
Operating expenses
Recreation classes 365,943 - - 365,943
Texas Star Sports Complex - 1,278,459 - 1,278,459
Depreciation 4,467 292,282 - 296,749
Amortization - 9,262 - 9,262
Total operating expenses 370,410 1,580,003 - 1,950,413
Operating income 39,532 694,961 - 734,493
Nonoperating revenues (expenses)
Investment income 462 1,510 16 1,988
Gain on sale of capital asset 237 246 - 483
Interest expense - (27,136) - (27,136)
Total nonoperating revenues
(expenses), net 699 (25,380) 16 (24,665)
Change in net assets 40,231 669,581 16 709,828
Net assets, beginning of year 362,990 6,113,117 31,030 6,507,137
Net assets, end of year 403,221$ 6,782,698$ 31,046$ 7,216,965$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2011
83
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
OPERATING ACTIVITIES
Cash received from customers 409,992$ 2,259,752$ - $ 2,669,744$
Cash payments to suppliers for goods and services (222,312) (966,982) - (1,189,294)
Cash payments to employees for services (142,391) (298,353) - (440,744)
Net cash provided by operating activities 45,289 994,417 - 1,039,706
CAPITAL AND RELATED FINANCING ACTIVITIES
Interest paid on bonds - (27,600) - (27,600)
Reduction in bonds payable - (135,000) - (135,000)
Purchase of capital assets - (476,508) - (476,508)
Proceeds from sale of capital assets 237 246 - 483
Net cash provided by (used in) capital
and related financing activities 237 (638,862) - (638,625)
INVESTING ACTIVITIES
Interest received on investments 462 1,510 16 1,988
Net cash provided by investing activities 462 1,510 16 1,988
Net change in cash and
and cash equivalents 45,988 357,065 16 403,069
Cash and cash equivalents, beginning of year 344,986 1,125,267 31,030 1,501,283
Cash and cash equivalents, end of year 390,974$ 1,482,332$ 31,046$ 1,904,352$
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income 39,532$ 694,961$ - $ 734,493$
Adjustments to reconcile operating income
to net cash provided by operating activities
Depreciation and amortization 4,467 301,544 - 306,011
Changes in assets and liabilities -
Accounts receivable and unbilled revenue 50 (15,212) - (15,162)
Deferred income - - - -
Prepaids and deposits (529) (1,556) - (2,085)
Net OPEB asset - (48) (48)
Net pension obligation 164 3,761 3,925
Inventory - (8,992) - (8,992)
Accounts payable 975 16,575 - 17,550
Accrued salaries and wages 630 3,384 - 4,014
Net cash provided by operating activities 45,289$ 994,417$ -$ 1,039,706$
84
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, 2011
85
Risk
Equipment Management
Replacement Insurance Workers Compensation
Fund Fund Fund Total
Deposits and investments 2,602,217$ 3,257,403$ 1,078,119$ 6,937,739$
Accounts receivable - 135,752 - 135,752
Accrued interest receivable 831 2,300 - 3,131
Total current assets 2,603,048 3,395,455 1,078,119 7,076,622
Property, plant, and equipment, at cost
Equipment 7,750,832 54,956 18,649 7,824,437
Less accumulated depreciation 5,446,650 54,956 12,168 5,513,774
Net property, plant, and equipment 2,304,182 - 6,481 2,310,663
Total assets 4,907,230 3,395,455 1,084,600 9,387,285
Accounts payable 10,244 17,009 21,723 48,976
Accrued salary and wages - 7,158 3,368 10,526
Accrued insurance claims - 493,342 44,802 538,144
Total current liabilities 10,244 517,509 69,893 597,646
Invested in capital assets,
net of related debt 2,304,182 - 6,481 2,310,663
Unrestricted 2,592,804 2,877,946 1,008,226 6,478,976
Total net assets 4,896,986$ 2,877,946$ 1,014,707$ 8,789,639$
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, 2011
86
Equipment Risk
Replacement Insurance Management
Fund Fund Fund Total
Operating revenues
Insurance premiums - $ 4,646,970$ 345,864$ 4,992,834$
Service fees and miscellaneous 686,740 27,677 - 714,417
Total operating revenues 686,740 4,674,647 345,864 5,707,251
Operating expenses
General and administrative 45,034 754,923 71,136 871,093
Insurance costs - 3,622,204 536,154 4,158,358
Depreciation 779,340 - 763 780,103
Total operating expenses 824,374 4,377,127 608,053 5,809,554
Operating income (loss) (137,634) 297,520 (262,189) (102,303)
Nonoperating revenues
Gain on sale of capital assets 27,293 - - 27,293
Investment income 9,715 14,543 1,091 25,349
Total nonoperating revenues 37,008 14,543 1,091 52,642
Income (loss) before transfers (100,626) 312,063 (261,098) (49,661)
Other financing sources
Transfers in - - 225,000 225,000
Change in net assets (100,626) 312,063 (36,098) 175,339
Net assets, beginning of year 4,997,612 2,565,883 1,050,805 8,614,300
Net assets, end of year 4,896,986$ 2,877,946$ 1,014,707$ 8,789,639$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2011
87
Risk
Equipment Manage-
Replacement Insurance ment
Fund Fund Fund Total
OPERATING ACTIVITIES
Cash received from customers 686,740$ 4,664,491$ 345,864$ 5,697,095$
Cash payments to suppliers for goods and services (35,039) (4,352,194) (591,813) (4,979,046)
Cash payments to employees for services - (38,504) (42,364) (80,868)
Net cash provided by (used in) operating activities 651,701 273,793 (288,313) 637,181
NONCAPITAL FINANCING ACTIVITIES
Transfers in - - 225,000 225,000
Net cash provided by noncapital financing activities - - 225,000 225,000
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets (253,945) - - (253,945)
Proceeds from sale of capital assets 27,662 - - 27,662
Net cash used in capital and related financing activities (226,283) - - (226,283)
INVESTING ACTIVITIES
Proceeds from sale of investment securities 25 1,910 - 1,935
Interest received on investments 9,715 14,543 1,091 25,349
Net cash provided by investing activities 9,740 16,453 1,091 27,284
Net increase (decrease) in cash and cash equivalents 435,158 290,246 (62,222) 663,182
Cash and cash equivalents, beginning of year 2,167,059 2,967,157 1,140,341 6,274,557
Cash and cash equivalents, end of year 2,602,217$ 3,257,403$ 1,078,119$ 6,937,739$
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss) (137,634)$ 297,520$ (262,189)$ (102,303)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities
Depreciation expense 779,340 - 763 780,103
Change in assets and liabilities
Receivables - (10,156) - (10,156)
Prepaids - 30,541 - 30,541
Accounts payable 9,995 9,165 (13,211) 5,949
Accrued salaries and wages - (350) 1,356 1,006
Accrued insurance claims - (52,927) (15,032) (67,959)
Net cash provided by (used in) operating activities 651,701$ 273,793$ (288,313)$ 637,181$
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
STARS CENTER ESCROW AGENCY FUND
YEAR ENDED SEPTEMBER 30, 2011
88
Balance Balance
October 1, September 30,
2010 Additions Deductions 2011
Assets
Investments at fair value 1,421,596$ 1,817$ (2,574)$ 1,420,839$
Total assets 1,421,596$ 1,817$ (2,574)$ 1,420,839$
Liabilities
Due to other entities 1,420,547$ -$ -$ 1,420,547$
Refunds payable 1,049 292 (1,049) 292
Total liabilities 1,421,596$ 292$ (1,049)$ 1,420,839$
STATISTICAL SECTION
(Unaudited)
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 NINE FISCAL YEARS (Accrual Basis of Accounting – Unaudited) Table 1 89 Fiscal Year2003 2004 2005 2006 2007 2008 2009 2010 2011Governmental activitiesInvested in capital assets, net of related debt 42,192,665$ 46,733,074$ 49,659,438$ 49,883,218$ 58,251,542$ 60,799,897$ 66,241,593$ 73,815,504$ 71,051,094$ Restricted 713,385 1,304,226 1,455,709 1,448,741 1,725,998 1,813,871 1,845,987 1,375,950 1,818,957 Unrestricted 14,945,063 14,657,018 17,512,832 25,497,497 27,104,410 31,041,434 29,885,070 24,933,443 31,448,528 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$ 100,124,897$ 104,318,579$ 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$ 53,569,070$ 53,318,214$ 53,132,882$ Restricted for debt service 632,189 - - - - - 3,963,919 438,340 438,948 Restricted for impact fees - - - - - - - 2,999,156 2,649,336 Unrestricted 14,009,239 16,906,068 15,830,507 19,099,883 16,421,971 16,900,637 12,980,130 13,987,730 16,947,928 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$ 70,743,440$ 73,169,094$ Primary governmentInvested in capital assets, net of related debt 84,594,177$ 90,016,717$ 97,647,885$ 98,161,262$ 108,438,239$ 112,955,148$ 119,810,663$ 127,133,718$ 124,183,976$ Restricted 1,345,574 1,304,226 1,455,709 1,448,741 1,725,998 1,813,871 5,809,906 4,813,446 4,907,241 Unrestricted 28,954,302 31,563,086 33,343,339 44,597,380 43,526,381 47,942,071 42,865,200 38,921,173 48,396,456 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$ 170,868,337$ 177,487,673$ Note: City of Euless first applied GASB Statement 34 in fiscal year ended 9/30/2003; government-wide financial information for years prior is not available.
CITY OF EULESS, TEXAS CHANGES IN NET ASSETS – LAST NINE FISCAL YEARS (Accrual Basis of Accounting – Unaudited) – Continued Table 2 90 Fiscal Year2003 2004 2005 2006 2007 2008 2009 2010 2011ExpensesGovernmental 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$ 5,004,580$ 5,091,589$ Development services 1,190,240 1,217,794 1,113,875 1,169,285 1,487,102 1,420,477 1,707,421 1,692,845 1,707,148 General and administrative 11,879,362 12,337,712 13,370,907 15,122,831 16,495,449 17,733,714 17,267,094 14,571,600 15,698,832 Highways and streets 2,117,959 2,398,447 1,734,487 2,211,083 2,206,697 2,534,856 2,057,123 2,662,949 2,923,241 Public safety 14,830,469 15,315,777 15,514,301 16,252,071 17,047,334 18,708,849 19,379,290 21,416,966 20,754,733 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 1,885,177 1,618,420 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 47,234,117 47,793,963 Business-type activities:Water and wastewater 12,046,092 12,550,708 13,227,562 15,285,026 15,418,299 16,462,599 15,623,464 17,035,520 17,827,272 Drainage utility 812,785 793,358 875,995 884,763 1,059,272 932,771 947,869 1,107,206 1,177,938 Golf 3,616,671 3,667,537 3,792,552 4,003,035 4,250,866 4,421,256 4,690,701 4,460,627 4,483,252 Other recreation enterprises 2,593,455 2,299,391 2,630,760 1,842,550 2,109,291 2,155,131 2,016,273 1,866,786 1,982,613 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 24,470,139 25,471,075 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 71,704,256 73,265,038 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 66,368 69,950 Development services 628,585 817,293 896,894 841,033 833,822 688,348 783,955 751,323 779,939 General and administrative 1,403,636 1,401,057 1,241,408 1,706,000 1,252,030 1,391,437 4,092,387 1,548,497 1,707,890 Highways and 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 4,345,101 3,271,115 Operating grants and contributions 515,039 517,307 1,302,332 592,231 411,857 486,862 487,059 511,093 469,404 Capital grants and contributions - - - 8,706 2,199,106 1,885,266 268,130 602,372 1,015,402 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 7,824,754 7,313,700 Business-type activities:Charges for servicesWater and wastewater 12,768,482 13,235,590 14,213,072 16,065,814 13,730,467 15,849,209 16,381,801 17,321,670 19,978,802 Drainage utility 626,199 643,229 659,949 658,231 701,476 661,725 689,889 691,800 694,751 Golf 3,078,739 3,052,947 3,347,922 3,777,018 3,825,486 3,904,008 4,069,151 5,279,259 4,746,242 Other recreation enterprises 2,603,260 2,012,214 2,453,905 1,518,386 1,636,883 1,819,459 1,703,196 1,937,416 2,684,905 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 26,400 772,714 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 25,256,545 28,877,414 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 33,081,299 36,191,114 (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued)
CITY OF EULESS, TEXAS CHANGES IN NET ASSETS – LAST NINE FISCAL YEARS (Accrual Basis of Accounting – Unaudited) – Continued Table 2 91 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)$ (39,409,363)$ (40,480,263)$ Business-type activities 2,857,472 (367,014) 3,456,372 316,910 (1,930,497) 446,244 1,271,476 786,406 3,406,339 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) (38,622,957) (37,073,924) 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 12,306,387 11,855,993 Sales taxes 8,865,055 9,229,819 9,648,979 12,303,965 13,990,652 14,319,938 12,602,345 12,337,598 13,252,805 Car rental taxes 9,641,374 10,190,256 10,841,899 12,580,371 12,955,882 12,832,458 11,632,215 11,480,736 12,457,910 Mixed beverage taxes 82,920 82,058 82,759 85,659 87,400 84,653 76,433 71,653 66,383 Hotel/motel occupancy taxes 154,164 167,259 179,989 216,591 240,457 234,780 185,417 237,429 272,809 Gross receipts taxes 3,196,452 3,226,468 3,326,641 4,116,704 3,619,955 3,816,501 4,074,355 3,967,036 4,174,627 Investment income 580,245 463,239 870,841 1,611,815 2,031,580 1,727,542 863,225 292,761 168,929 Contributions from property owners 1,814,257 3,191,097 1,229,401 - - - - - - Gain/(loss) on disposal of assets 41,807 30,811 (21,023) 24,866 74,163 71,143 37,909 116,978 100,110 Miscellaneous 102,193 18,208 - - - - 11,018 103,569 1,419,512 Transfers (1,535,227) 340,834 608,721 709,969 617,418 (1,012,140) 90,303 647,463 904,867 Total governmental activities 32,885,019 37,173,128 37,545,621 42,838,538 45,960,866 44,306,169 42,258,488 41,561,610 44,673,945 Business-type activities:Investment income 320,233 266,240 407,468 771,888 1,023,865 726,385 254,071 87,799 66,161 Contributions from property owners 572,065 3,588,379 374,124 271,707 253,786 252,045 - - - Gain/(loss) on disposal of assets - - - - 277,004 - - 3,579 (141,979) 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) (647,463) (904,867) Total business-type activities 2,427,525 3,513,785 172,871 3,242,063 1,161,238 2,000,976 185,755 (556,085) (980,685) Total primary government 35,312,544 40,686,913 37,718,492 46,080,601 47,122,104 46,307,145 42,444,243 41,005,525 43,693,260 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 2,152,247 4,193,682 Business-type activities 5,284,997 3,146,771 3,629,243 3,558,973 (769,259) 2,447,220 1,457,231 230,321 2,425,654 Total primary government 6,395,808$ 7,989,976$ 9,562,904$ 11,760,450$ 9,483,235$ 9,020,472$ 5,774,679$ 2,382,568$ 6,619,336$ (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded)Note: City of Euless first applied GASB Statement 34 in fiscal year ended 9/30/2003; government-wide financial information for years prior is not available.Source: Comprehensive Annual Financial Reports
CITY OF EULESS, TEXAS FUND BALANCES, GOVERNMENTAL FUNDS – LAST TEN FISCAL YEARS (Modified accrual basis of accounting – Unaudited) Table 3 92 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011General FundReserved for other 141,886$ 136,167$ 193,253$ 239,592$ 310,956$ 392,950$ 362,018$ 354,882$ 492,776$ -$ Nonspendable - - - - - - - - - 19,344 Restricted - - - - - - - - - 311,076 Assigned - - - - - - - - - 103,423 Unreserved/Unassigned 6,845,070 6,039,430 5,552,863 6,363,113 8,989,805 10,594,492 8,355,946 7,288,976 7,121,683 7,296,719 Total general fund 6,986,956$ 6,175,597$ 5,746,116$ 6,602,705$ 9,300,761$ 10,987,442$ 8,717,964$ 7,643,858$ 7,614,459$ 7,730,562$ All Other Governmental FundsReserved for:Debt service 1,344,435$ 1,380,615$ 1,432,251$ 1,642,766$ 1,587,754$ 1,893,893$ 1,967,502$ 1,987,783$ 1,622,584$ -$ Development Agreements 1,683,008 1,447,612 1,442,999 1,470,156 1,535,647 1,598,658 1,671,038 1,553,876 1,454,496 - Other 1,323 1,245 1,245 1,245 1,245 1,245 1,245 1,245 7,677 - Unreserved, reported in:Special revenue funds 9,376,163 7,167,612 5,830,664 8,086,786 7,643,232 11,330,717 5,741,072 6,020,996 7,780,378 - Capital funds 9,200,172 7,301,088 13,708,861 11,110,293 7,482,417 4,627,428 10,940,619 10,918,516 5,792,872 - Nonspendable - - - - - - - - - 5,665 Restricted for:Debt service - - - - - - - - - 1,818,957 Capital projects - - - - - - - - - 2,168,956 Other - - - - - - - - - 87,972 Assigned - - - - - - - - - 14,855,820 Total all other governmental funds 21,605,101$ 17,298,172$ 22,416,020$ 22,311,246$ 18,250,295$ 19,451,941$ 20,321,476$ 20,482,416$ 16,658,007$ 18,937,370$ Source: Comprehensive Annual Financial ReportsNote: The City of Euless first applied GASB Statement No. 54 "Fund Balance Reporting and Governmental Fund Type Definitions" in fiscal year 2011. Reclassification of fund balances for prior years was not required.Fiscal Year
CITY OF EULESS, TEXAS CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting – Unaudited) Table 4 93 Fiscal Year2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Revenues:General property tax 8,845,813$ 9,855,490$ 10,297,219$ 11,138,582$ 11,266,615$ 12,482,090$ 12,200,974$ 12,735,324$ 12,277,457$ 11,786,579$ Gross receipts tax 3,767,478 3,433,537 3,475,785 3,589,389 4,418,954 3,947,812 4,135,934 4,336,205 4,276,110 4,513,819 General sales tax 8,922,660 8,865,055 9,229,819 9,648,979 12,303,965 13,990,652 14,319,938 12,602,345 12,337,598 13,252,805 Car rental tax 10,148,812 9,641,373 10,190,256 10,841,899 12,580,371 12,955,882 12,832,458 11,632,215 11,480,736 12,457,910 Fines and fees 3,237,217 3,377,046 3,162,113 3,662,327 4,089,056 4,348,839 4,297,304 4,086,594 4,336,063 4,033,868 Licenses and permits 1,188,231 1,009,058 1,190,059 870,010 806,476 804,404 752,421 783,955 719,918 744,978 Investment income 898,590 566,049 444,653 798,485 1,468,812 1,784,492 1,512,898 742,444 253,302 143,564 DEA revenues 133,138 45,997 128,341 14,607 77,461 5,360 26,580 14,883 15,350 6,589 Intergovernmental 421,176 326,493 292,265 303,713 315,487 334,979 353,567 379,503 376,512 377,660 Rents and royalties - - - - - - - - 1,620,210 1,233,686 Other revenues 1,790,164 1,500,408 1,434,035 2,238,652 2,015,047 1,513,511 2,924,573 4,300,564 978,179 1,194,966 Total revenues 39,353,279 38,620,506 39,844,545 43,106,643 49,342,244 52,168,021 53,356,647 51,614,032 48,671,435 49,746,424 Expenditures:Culture and recreation 3,277,615 3,764,712 3,586,026 3,890,845 4,079,825 4,500,202 4,461,329 4,350,573 4,120,435 4,335,786 Development services 1,046,331 1,111,608 1,150,194 1,079,073 1,117,614 1,461,222 1,232,277 1,355,105 1,251,706 1,340,898 General and administrative 11,748,167 11,631,603 11,912,050 12,494,352 14,860,076 16,377,711 17,660,608 16,230,408 14,796,474 15,610,772 Highways and streets 750,218 973,493 766,030 670,742 656,964 693,711 943,171 861,885 610,996 713,742 Public safety 12,187,878 13,343,235 13,814,758 14,409,786 15,334,138 16,958,988 17,930,526 18,560,852 19,011,663 19,492,862 Debt Service:Principal 2,164,866 2,452,838 2,666,815 2,600,000 2,790,000 3,030,000 3,010,000 2,990,000 3,110,000 3,445,000 Interest and fiscal charges 4,072,936 3,528,072 3,308,249 2,939,783 2,596,934 2,577,106 2,437,894 2,312,734 2,189,070 1,798,615 Issuance costs - 85,363 80,000 128,000 97,810 5,946 - - 95,000 178,229 Capital outlay 7,349,486 3,964,777 3,455,190 4,248,437 7,997,263 3,777,225 5,843,641 5,730,944 6,865,802 4,805,147 Total expenditures 42,597,497 40,855,701 40,739,312 42,461,018 49,530,624 49,382,111 53,519,446 52,392,501 52,051,146 51,721,051 Excess (deficiency) of revenuesover (under) expenditures (3,244,218) (2,235,195) (894,767) 645,625 (188,380) 2,785,910 (162,799) (778,469) (3,379,711) (1,974,627) Other Financing Sources (Uses):Proceeds from capital lease - - - - - - - - - 494,322 Proceeds from issuance of debt 6,437,616 5,535,295 7,580,000 13,900,000 6,710,000 - - - 8,110,000 9,610,000 Payment of escrow for refunding (6,315,299) (5,492,201) - (14,386,070) (6,879,482) - - - (8,443,763) (6,804,790) Bond premium - - - 508,038 - - - - - 390,694 Bond discount - - - - - - - - (94,828) - Transfers in 3,683,309 3,987,716 3,985,286 2,435,617 5,536,285 2,920,599 12,313,757 4,461,419 3,371,742 5,696,323 Transfers out (3,821,573) (6,913,902) (5,982,152) (2,351,396) (6,541,319) (2,818,181) (13,550,897) (4,596,116) (3,417,248) (5,016,456) Total other financing sources (15,947) (2,883,092) 5,583,134 106,189 (1,174,516) 102,418 (1,237,140) (134,697) (474,097) 4,370,093 Net change in fund balances (3,260,165)$ (5,118,287)$ 4,688,367$ 751,814$ (1,362,896)$ 2,888,328$ (1,399,939)$ (913,166)$ (3,853,808)$ 2,395,466$ Debt service as a percentageof noncapital expenditures 17.7% 16.4% 16.2% 14.8% 13.2% 12.3% 11.4% 11.4% 11.9% 11.6%Source: Comprehensive Annual Financial Reports
CITY OF EULESS, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY – LAST TEN FISCAL YEARS (Unaudited) Table 5 94 Total Total Less: Total Taxable DirectFiscal Real Personal Market Tax-Exempt Assessed TaxYear Property Property Value Property Value Rate2002 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 0.4700002010 2,470,282,654 449,954,489 2,920,237,143 330,392,987 2,589,844,156 0.4700002011 2,473,997,250 390,731,885 2,864,729,135 341,730,427 2,522,998,708 0.470000Estimated Market ValueSource: Tarrant Appraisal District
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES (per $100 of Assessed Value) – LAST TEN FISCAL YEARS (Unaudited) Table 6 95 Fiscal YearOperating / General RateGeneral Obligation Debt ServiceTotal Direct RateHurst-Euless-Bedford ISDGrapevine-Colleyville ISDTarrant CountyTarrant County Hospital DistrictTarrant County Community College2002 0.311966 0.185288 0.497254 1.65301.6168 0.2748 0.2341 0.10642003 0.298479 0.198775 0.497254 1.71191.6598 0.2725 0.2324 0.13942004 0.309241 0.185759 0.495000 1.66161.7011 0.2725 0.2354 0.13942005 0.331396 0.163604 0.495000 1.71051.7000 0.2725 0.2354 0.13942006 0.340321 0.151456 0.491777 1.72301.7000 0.2725 0.2354 0.13942007 0.343227 0.146273 0.489500 1.59751.5743 0.2715 0.2354 0.13942008 0.340341 0.129659 0.470000 1.30371.2900 0.2665 0.2304 0.13942009 0.351937 0.118063 0.470000 1.29501.2900 0.2640 0.2279 0.13802010 0.360791 0.109209 0.470000 1.29551.2900 0.2640 0.2280 0.13772011 0.343905 0.126095 0.470000 1.28821.2900 0.2640 0.2279 0.1376Sources: City of Euless Budget Office, Tarrant Appraisal DistrictOverlapping RatesCity Direct Rates
CITY OF EULESS, TEXAS PRINCIPAL PROPERTY TAX PAYERS Current Year and Nine Years Ago (Unaudited) Table 7 96 PercentagePercentageof Total Cityof Total CityTaxable Taxable Taxable TaxableAssessed Assessed Assessed AssessedTaxpayerValue Value (1) TaxpayerValue Value (2)Ean Holdings, LLC 49,711,429$ 1.97 % Southwestern Bell Telephone Company 50,036,810$ 2.77 %Avis Budget Group LLC 45,130,291 1.79 Hertz Rent-a-Car 45,816,078 2.53Hertz Corp 41,602,475 1.65 National Rental Systems Inc 43,368,908 2.40UDR The Mandolin LLC 36,867,932 1.46 Avis Rent-a-Car, Inc. 37,977,230 2.10Oncor Electric Delivery Co. LLC 35,123,308 1.39 The Bear Apartments 31,526,719 1.74Somerset Village Partners LP 33,352,614 1.32 Somerset Village Partners LP 31,013,586 1.72CMF 15 Portfolio LLC 29,790,000 1.18 Saluda Apartments, LP 28,689,759 1.59IRA Stoneleigh Feeco LLC 29,411,000 1.17 Southwest Properties 26,515,780 1.47Seramont II LP 28,439,000 1.13 Budget Rent-a-Car 20,235,256 1.12Glade 121 LP 25,466,768 1.01 TXU Electric 20,227,350 1.12Total 354,894,817$ 14.07 % Total 335,407,476$ 18.56 %Source: Tarrant County Tax OfficeNote: (1) Total Taxable Assessed Value including real and personal property for tax year 2010 (fiscal year 2011) is $2,522,998,708.(2) Total Taxable Assessed Value including real and personal property for tax year 2001 (fiscal year 2002) is $1,807,343,705.Fiscal Year 2011 Fiscal Year 2002
CITY OF EULESS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS – LAST TEN FISCAL YEARS (Unaudited) Table 8 97 Taxes Levied Adjustments AdjustedWithin the to Levy in Taxes Levied CollectionsFiscal 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 Levy2002 9,208,653 33,559 9,242,212 8,668,507 93.79% 531,034 9,199,541 99.54% 42,671 0.46%2003 9,862,626 (55,776) 9,806,850 9,639,278 98.29% 129,475 9,768,753 99.61% 38,097 0.39%2004 10,219,893 52,820 10,272,713 10,026,897 97.61% 205,269 10,232,165 99.61% 40,547 0.39%2005 10,789,150 55,557 10,844,706 10,663,367 98.33% 135,989 10,799,356 99.58% 45,351 0.42%2006 11,194,338 1,398 11,195,736 11,007,368 98.32% 170,934 11,178,302 99.84% 17,434 0.16%2007 11,908,489 (9,110) 11,899,379 11,801,183 99.17% 82,381 11,883,564 99.87% 15,815 0.13%2008 12,083,956 (39,549) 12,044,407 11,986,396 99.52% 40,697 12,027,093 99.86% 17,315 0.14%2009 12,747,343 (125,979) 12,621,364 12,556,281 99.48% 8,237 12,564,518 99.55% 56,846 0.45%2010 12,318,061 (16,154) 12,301,907 12,182,266 99.03% 49,596 12,231,862 99.43% 70,045 0.57%2011 11,796,659 - 11,796,659 11,637,719 98.65% - 11,637,719 98.65% 158,940 1.35%Source: Tarrant County Tax Office and Tarrant Appraisal DistrictDelinquent TaxesTotal CollectionCollected within theFiscal Year of the Levy
CITY OF EULESS, TEXAS RATIO OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS (Unaudited) Table 9 98 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)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 2010 30,765,000 4,910,000 - 4,470,000 3,850,000 - - 9,160,000 53,155,000 3.36% 981 2011 29,235,000 6,590,000 - 3,715,000 3,580,000 - - 8,675,000 51,795,000 3.66% 1,010 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 Activities
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 99 Debt toGeneral Certificates Estimated Taxable TaxableFiscal Obligation of Population Assessed Assessed Debt PerYear Bonds Obligation Total (1) Value (2) Value Capita2002 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 2010 22,655,000 4,910,000 27,565,000 54,200 2,589,844,156 1.06% 509 2011 21,615,000 6,590,000 28,205,000 51,277 2,522,998,708 1.12% 550 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 self-supporting debt (taxable general obligation refunding bonds and enterprise debt).
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2011 – (Unaudited) Table 11 100 Estimated Estimated Share ofDebt Percentage OverlappingGovernmental Unit Outstanding Applicable DebtDebt repaid with property taxesGrapevine-Colleyville Independent School District 306,615,184$ 9.66% 29,619,027$ Hurst-Euless-Bedford Independent School District 342,772,417 20.53% 70,371,177Tarrant County 333,561,836 2.07% 6,904,730Tarrant County Hospital District 58,565,000 2.07% 1,212,296Tarrant County College District 27,327,140 2.07% 565,672Subtotal, overlapping debt108,672,902City of Euless (direct debt)28,205,000 100.00% 28,205,000Total direct and overlapping debt136,877,902$ Source: Debt outstanding data provided by each governmental unit.
CITY OF EULESS, TEXAS SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS – LAST TEN FISCAL YEARS (Unaudited) Table 12 101 Less InterestTotal Operating Net andFiscal Revenues Expenses Revenue Fiscal CoverageYear (1) (2) Available Principal Charges Total Ratio2002 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 13,668,755 976,446220,000 213,643 433,643 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 6.752010 17,475,984 14,799,879 2,676,105 255,000 171,452 426,452 6.282011 20,148,834 15,952,372 4,196,462 270,000 161,333 431,333 9.73Notes: (1) Operating and nonoperating revenues of water and wastewater fund(2) Total operating expenses of water and wastewater fund exclusive of depreciation and amortization
CITY OF EULESS, TEXAS SCHEDULE OF REVENUE BOND COVERAGE DRAINAGE UTILITY BONDS – LAST TEN FISCAL YEARS (Unaudited) Table 13 102 Less InterestTotal Operating Net andFiscal Revenues Expenses Revenue Fiscal CoverageYear (1) (2) Available Principal Charges Total Ratio2002 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 714,250 286,741 427,509 200,000 14,417 214,417 1.992010 700,827 457,376 243,451 210,000 8,400 218,400 1.112011 699,709 519,622 180,087 - - - n/aNotes: (1) Operating and nonoperating revenues of drainage utility fund(2) Total operating expenses of drainage utility fund exclusive of depreciation and amortization
CITY OF EULESS, TEXAS DEMOGRAPHIC STATISTICS – LAST TEN FISCAL YEARS (Unaudited) Table 14 103 Per Personal Estimated Capita Income School UnemploymentFiscal Population Income (thousands Median Age Enrollment RateYear (1) (2) of dollars) (2) (3) (4)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%2010 54,200 29,179 1,581,502 32.4 20,898 7.9%2011 51,277 27,590 1,414,732 34.4 21,071 7.3%Notes: 1. Estimates by North Central Texas Council of Governments 2. Estimates by Claritas Site Reports; Research & Demographic Solutions 3. Hurst-Euless-Bedford Independent School District 4. Texas Workforce Commission
CITY OF EULESS, TEXAS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago (Unaudited) Table 15 104 Percentage Percentageof Total City of Total CityEmployerEmployees Employment EmployerEmployees EmploymentHEB ISD 833 3.41% Warrantech 598 2.94%LSG Sky Chefs, Inc. 571 2.34% City of Euless 368 1.81%Autogrill Group, Inc. 462 1.89% Super Target 300 1.47%City of Euless 362 1.48% Tarrant Printing 190 0.93%Redi-Mix Concrete 350 1.43% Atlas Match 150 0.74%Life Outreach International 186 0.76% Home Depot 150 0.74%Super Target 180 0.74% Aerobotics 136 0.67%Lowe's 110 0.45% First Odyssey Group 100 0.49%Home Depot 117 0.48% Office Depot 100 0.49%TJ Lambrecht Construction 120 0.49% Ferguson Enterprises 100 0.49%Total 3,291 13.46% 2,192 11.31%Source: 2002 Official Statement, TWC website, US Census website, City of Euless Economic Development Department2011 2002
CITY OF EULESS, TEXAS FULL–TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 16 105 Function/Program2002 2003 2004 2005 2006 2007 2008 2009 2010 2011General Governmentand Administration 52.25 52.25 52.25 51.25 50.75 53.00 54.50 54.50 50.00 48.50 Public Safety 116.00 117.00 117.00 118.00 120.00 123.00 126.00 126.00 118.00 121.00 Fire Safety 61.00 61.00 61.00 64.00 67.00 70.00 73.00 73.00 71.00 71.00 Development Services 13.00 15.00 15.00 12.00 12.00 12.00 12.00 12.00 11.50 13.50 Culture and Recreational 35.75 35.75 35.75 35.75 35.75 36.50 36.00 36.00 30.00 31.00 Water and Wastewater 51.00 49.00 49.00 48.00 49.50 50.00 50.00 50.00 46.00 42.00 Golf Course 15.25 15.25 15.25 15.25 15.25 15.25 15.25 17.25 13.00 13.00 Public Works 15.75 15.75 15.75 15.75 15.75 15.75 15.75 15.75 14.00 17.50 Service Center 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 5.00 5.00 Risk Management / Insurance 2.00 2.00 2.00 2.00 2.00 1.50 1.50 1.50 1.50 1.50 Total 368.00 369.00 369.00 368.00 374.00 383.00 390.00 392.00 360.00 364.00 Source: City Budget OfficeFiscal Year
CITY OF EULESS, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 17 106 Function/Program2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Public SafetyPoliceNumber of Certified Officers 81 81 81 82 82 82 85 85 85 85Number of Citations Issued 23,719 27,145 25,491 32,200 38,359 34,368 26,503 29,925 24,126 21,790FireNumber of Certified Firefighters 59 59 59 62 65 68 71 70 69 69Number of Alarms 4,530 4,849 4,699 3,949 3,661 3,675 4,197 3,827 4,097 4,196Number of EMS Calls 1,125 2,320 1,854 2,202 2,317 2,561 2,688 2,634 2,793 2,848Municipal CourtCases Filed 33,980 35,385 34,258 41,027 46,085 39,096 30,551 33,670 31,442 27,022DevelopmentNumber Residential Inspections - New 107 182 518 319 315 58 77 100 101 52Number Commercial Inspections - New 8 4 13 8 10 24 28 16 14 11Number Multifamily Inspections - New 4 1 0 0 0 0 0 0 0 0Public WorksStreet Overlay (Square Footage) 767,154 1,238,046 1,004,735 1,391,889 1,117,894 664,472 999,285 797,326 770,380 953,406Cultural and RecreationalParks and RecreationRecreation Center Memberships 3,649 4,427 4,123 4,260 4,160 3,990 3,944 3,703 2,443 4,337Class Attendance (Youth/Adult) 11,099 17,532 24,522 24,575 25,704 29,067 59,541 74,452 56,833 28,804Water and WastewaterNumber of Water Consumers 22,615 23,231 23,848 25,012 24,486 24,484 24,608 24,677 24,760 24,924Water Produced (In Gallons x 1000) 474,987 555,046 384,306 314,085 372,695 414,934 348,548 730,291 579,154 477,914Water Purchased - TRA (In Gallons x 1000) 1,839,498 1,895,120 2,146,706 2,382,040 2,947,945 2,202,426 2,291,974 1,955,535 2,028,760 2,566,370Water Supplied (In Gallons x 1000) 2,314,485 2,450,166 2,531,012 2,696,125 3,320,640 2,617,360 2,640,522 2,685,826 2,607,914 3,044,284Annual Rainfall (In Inches) 38.34 30.75 41.08 32.51 20.74 53.51 27.10 36.32 38.65 22.26Golf CourseNumber of Paid Rounds Played 29,961 30,861 33,146 32,725 36,639 35,094 36,528 43,029 32,996 35,075Source: City DepartmentsComprehensive Annual Financial ReportCity Budget OfficeNotes:N/A - Data not available.Fiscal Year
CITY OF EULESS, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 18 107 Function/Program2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Public SafetyPolice Stations 1 1 1 1 1 1 1 1 1 1Fire Stations 3 3 3 3 3 3 3 3 3 3Public WorksStreets- Paved (1) 182.0 182.0 182.0 182.0 182.0 211.0 217.6 217.6 217.6 332.1Cultural and RecreationalSwimming Pools 3 3 3 3 3 3 3 3 3 3Parks 16 16 16 16 17 17 17 17 17 17Parks Land (Acres) 539 539 539 539 566 632 632 632 632 632Community Buildings 5 5 5 5 5 5 5 5 5 6Ampitheater 2 2 2 2 2 2 2 2 2 2Conference Centre 1 1 1 1 1 1 1 1 1 1Golf Course 1 1 1 1 1 1 1 1 1 1Athletic Fields 24 24 24 24 35 35 35 35 33 33Library Holdings 98,314 106,442 96,228 99,972 97,334 98,613 101,672 103,122 106,121 111,852 Water and WastewaterWater Mains (miles) 202.00 209.00 210.00 212.00 218.00 222.10 226.80 226.80 228.20 228.50 Fire Hydrants 1,215 1,318 1,318 1,318 1,377 1,441 1,477 1,477 1,525 1,526 Wastewater Mains (miles) 149.0 157.0 161.0 162.0 162.0 168.0 186.3 186.3 186.5 186.7 Source: City Departments(1) 2002 through 2010 are reported in linear miles. 2011 is reported in lane miles.Fiscal Year