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City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2004
Prepared by
City of Euless
Financial Department
201 North Ector Drive
Euless, TX 76039
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2004
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page(s)
Letter of transmittal i-vi
City officials vii
GFOA certificate of achievement viii
Organizational chart ix
FINANCIAL SECTION
Independent Auditor's Report 1-2
Management's Discussion and Analysis (unaudited) 3-14
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets 15
Statement of Activities 16
Fund Financial Statements:
Governmental Funds:
Balance Sheet 17
Reconciliation of the Governmental Funds Balance Sheet to
Statement of Net Assets 18
Statement of Revenues, Expenditures and Changes in Fund Balances 19
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 20
Proprietary Funds:
Statement of Net Assets 21-22
Statement of Revenues, Expenses and Changes in Fund Net Assets 23
Statement of Cash Flows 24-25
Fiduciary Funds:
Statement of Fiduciary Net Assets 26
Notes to Basic Financial Statements 27-47
Required Supplementary Information:
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 48
Budgetary Comparison Schedules 49-51
Notes to Required Supplementary Information 52
Combining and Individual Fund Statements and Schedules:
Non -major Governmental Funds:
Combining Balance Sheet 55-56
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 57-58
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2004
TABLE OF CONTENTS - 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 59
Police Drug Enforcement Special Revenue Fund 60
Half -penny Sales Tax Special Revenue Fund 61
DEA Task Force Special Revenue Fund 62
Crime Control and Prevention District Special Revenue Fund 63
Police Department Grant Special Revenue Funds 64
Non -major Proprietary Funds:
Combining Statement of Net Assets 66-67
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 68
Combining Statement of Cash Flows 69
Internal Service Funds:
Combining Statement of Net Assets 71
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 72
Combining Statement of Cash Flows 73
STATISTICAL SECTION (Unaudited) Table Page(s)
Government -wide expenses by function 1 74-75
Government -wide revenues by function 2 74-75
General governmental expenditures by function 3 76
General governmental revenues by source 4 77
Property tax levies and collections 5 78
Assessed and estimated actual value of taxable property 6 79
Property tax rates - all direct and overlapping
governments per $100 of assessed value 7 80
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 8 81
Computation of direct and overlapping debt 9 82
Ratio of annual debt service expenditures for
net general bonded debt to total general expenditures 10 83
Schedule of revenue bond coverage -
Water and Sewer Bonds 11 84
Schedule of revenue bond coverage -
Drainage Utility Bonds 12 85
Demographic statistics 13 86
Principal taxpayers 14 87
Property value and construction 15 88
Computation of legal debt margin 16 89
Miscellaneous statistics 17 90-91
INTRODUCTORY SECTION
January 20, 2005
To the Honorable Mayor,
Members of the City Council, awl
Citizens of the City of Euless, Texas
We are pleased to submit the Comprehensive Annual Financial Report for the City of
Euless, Texas for the fiscal year ended September 30, 2004. We are hopeful that you find
this information useful in reviewing the financial position of the City of Euless for fiscal
year 2004.
Responsibility for both the accuracy of the data and the completeness and fairness of the
presentation, including all disclosures, rests with the City. To provide a reasonable basis
for making these representations, management of the City of Euless has established
internal controls designed to ensure that the City's assets are protected from loss, theft
and misuse, and to ensure that adequate accounting data is compiled to allow for the
preparation of financial statements in conformity with generally accepted accounting
principals.
The internal controls are designed to provide reasonable but not absolute assurance that
these objectives are met. The concept of reasonable assurance recognizes that: (I) the
cost of a control should not exceed the benefits likely to be derived; and (2) the
evaluation of costs and benefits requires estimates and judgments by management. To
the best of our knowledge and belief, the enclosed data is accurate in all material respects
and is reported in a manner designed to present fairly the financial position and results of
operations of the City as measured by the financial activity of its various funds. All
disclosures necessary to enable the reader to gain an understanding of the City's financial
activities have been included.
The City of Euless financial statements have been audited by Weaver anti Tidwell,
L.L.P,, a firm of licensed certified public accountants. The goal of the independent
auditors was to provide reasonable assurance that the financial statements of the City of
Euless for the fiscal year ended September 30, 2004, are free of material misstatement.
The independent audit involved examining, on a test basis, evidence supporting the
amounts and iisclosures in the financial statements, assessing the accounting principals
used and significant estimates made by management; and evaluating the overall financial
statement presentation. The independent auditors concluded, based upon the audit, that
there was a reasonable basis for rendering an unqualified opinion that the City of Euless'
financial statements for the fiscal year ended September 30, 2004, are fairly presented in
201 N. Ector Drive, Euless, Texas 76039-3595
817/685-1100 • Metro 817 i267-4403 • tax 817485-1416
www.ci.culess.tx.us
1
conformity with GAAP. The independent auditor's report is presented as the first
component of the financial section of this report.
The Comprehensive Annual Financial Report is presented in three sections: Introductory,
Financial, and Statistical. The introductory section includes this transmittal letter, the
City's organizational chart, and a list of principal officials. The financial section includes
a Management and Discussion Analysis (MD&A), basic financial statements and
combining and individual fund statements and schedules, as well as the independent
auditor's report on the basic financial statements. The 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 report of the independent auditors. The
statistical section includes selected financial and demographic information, generally
presented on a multi -year basis.
Profile of the City of Euless, Texas
The City of Euless is located 1 G miles west of Dallas and 16 miles east of Fort Worth and
adjacent to the Dallas/Fort Worth International Airport in Northeast Tarrant County.
Euless is readily accessible by State Highway 183 which runs east/west through the
center of the city, State Highway 121 which borders the west side of the City and State
Highway 360 which borders the east side of the City. The City is approximately 16.9
square miles and serves a population of 49,750.
The City of Euless was incorporated February 24, 1953 and is a home rule city operating
under a Council/Manager form of government. The Council is comprised of the Mayor
and six Council members, who enact local legislation, adopt budgets, determine policies,
and appoint the city secretary, city attorney, and judge of the municipal court. The City
Manager is appointed by the City Council and is responsible for carrying out policies and
for the daily management of the City. Council members serve three-year, staggered
terms, with hvo council members elected each year. The mayor is elected to serve a
three-year term.
The City of Euless provides a full range of services, including police and fire protection;
emergency ambulance service, construction and maintenance of streets and highways,
recreational opportunities, water and sewer services, and library services. The City also
offers a top ranked golf facility, and a softball and athletic complex.. Internal service
funds of the City include an equipment replacement fund, insurance fund and risk
management fund.
The financial statements of the City include two component units because of their fiscal
dependency of the primary government, The Euless Development Corporation was
created to promote parks, library services and economic development. The Crime
Control District was created to proactively combat crime, Additional information on
these component units can be found in Note 1 in the notes to the financial statements.
ii
The annual budget serves as the foundation for the City of Euless' financial planning and
control. According to the City charter, the City Manager provides the City Council a
budget by August lot each year. The budget is filed with the City Secretary and open for
public inspection. Upon receipt of the budget, the Council sets a date for a public hearing
at which time interested citizens may express their opinion regarding the proposed
budget. The charter requires the Council to adopt the budget by a favorable majority vote
at least 19 days prior to the beginning of the next fiscal year.
The City Manager is authorized to transfer budgeted amounts between line items and
departments within any fund; however, any revisions that alter the total expenditure of
any fund must be approved by the City Council. Budgetary control has been established
at the individual fund level. Financial reports are produced showing budget to actual
expenditures by line item, and are distributed monthly to City departments and divisional
management for review. Personnel expenditures are monitored and controlled at a
position level and capital expenditures (items over $5,000 and having a useful life of
more than one year) are monitored and controlled item by item. Revenue budgets are
reviewed monthly.
Financial 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.
Local Economy
The City of Euless is located in the heart of the DFW metroplex and adjacent to the DFW
International Airport. Thus, the economic condition of the region plays a very important
role in the vitality of Euless. DFW is the world's third -busiest airport offering nearly
2,000 flights per day and serving 57 million passengers a year.
DFW is the largest metropolitan area in Texas and has sustained tremendous growth
during the past decade. DFW international Airport provides in excess of 200,000 jobs
and $11 billion to the regional economy. DFW is nearing completion of a Capital
Development Program that will invest approximately $2.7 billion into the Airport's
infrastructure, This investment will generate an additional $34 billion in economic
impact on the region's economy and wilt add 77,000 new jobs over the next 15 years
according to the Greater Dallas Chamber of Commerce.
A recent challenge for the DFW Airport was the announcement that Delta Air Lines
would vacate 24 gates. This departure has been estimated to cost the North Texas
economy about $782 million. However, DFW has a highly -diversified economy with
more than 80,000 companies located in the Metroplex. The Alliance development in
North Fort Worth which includes an industrial airport has attracted over 130 companies
and created over 2$,0011 jobs for the area. This area has plenty of land available for
development and is expected to continue to bring significant investment to the region.
iii
The Euless housing market for both residential and multi -family remained at near record
levels in FY2004. Property values have continued to grow at above average rates. Total
taxable value for all residential and commercial property in the City of Euless exceeded
$2 billion for fiscal year 2004, which was a 6.43% increase over the prior year. Sales tax
collections improved in FY2004 and forecast for FY2005 have been increased due in part
to the announcement that ACME Brick has chosen to relocate to Euless.
The City also receives a significant amount of revenues from a consolidated rental car
facility at DFW airport. During FY2004, increased travel through DFW Airport
contributed to an improvement in this revenue source. However, the City Council has
chosen to use this funding source to build reserves and to cash flow capital projects in
lieu of debt issuance. This has allowed the City to refrain from becoming overly
dependent on a volatile resource while providing for needed improvements for our
Citizens.
The City of Euless has approximately 1861 acres of undeveloped land outside of DFW
airport and another 600-900 developable acres within DFW airport. Euless is also
actively working with developers on major undeveloped commercial tracts within the
City.
Euless is also pleased that State Highway 360, which lies of the eastern border of the City
is under construction and expected to provide greater access for undeveloped areas along
this highway. Also, the announcement that the Dallas Cowboys will be relocating their
stadium to Tarrant County, with a close proximity to Euless, is expected to bring
additional tourism to our City.
Cash Management
The City of Euless maintains a minimum amount of cash in checking accounts to meet
the City's operational needs. The remaining idle cash is invested in securities allowed by
Texas Statutes and by the City's investment policy. These include obligations of the U.S.
government or its agencies, obligations of the State of Texas, local government
investment pools, money market mutual funds and certificates of deposits within
established criterion. The maturities of the investments range from 1 day to 21 months
with a weighted average maturity of 163 days. The average yield on the portfolio for
fiscal year 2004 was 1.70%. Investment income includes appreciation/depreciation in the
fair value of investments. It is not always possible to realize increases in the fair value
when they occur, especially in the case of temporary changes in the fair value of
investments that the government intends to hold to maturity.
An Investment Committee meets quarterly to determine general investment strategies,
monitor results, and to review the quarterly and annual investment reports. Monthly
reports are submitted to the Council for review as a part of the financial report.
iv
Risk Management
The City administers a self -insured program to deal with workers compensation claims
and participates in the Texas Municipal League Joint Self -Insurance Fund (TMLIF) to
provide for general liability and property insurance.
Contributions are made to the Risk Management Fund by other funds for workers'
compensation claims. Contributions are used to pay claims, accumulate reserves and
administer the program. Claims in excess of the self -insured limit •f $300 000 are
covered through a third -party limited -coverage insurance policy.
The City, along with other participating entities, contributes annual amounts determined
by TMLIF management for risk related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries; and natural disasters. As claims arise, they are
submitted to and paid by TML1F. The City is not liable for payment beyond the annual
contribution.
A safety program has been implemented to minimize the risk to employees by providing
training regarding safe work practices and a review of any significant accidents.
Employee Health Plan
The City maintains an employee health plan for employees and dependents, which is self -
insured by the City. Revenues are recognized from payroll deductions and from City
contributions. The City utilizes a preferred provider organization for its primary health
care option and actively solicits input from its employees regarding benefit levels and
cost containment strategies. The City maintains an excess coverage insurance policy for
claims in excess of $15$,000 and aggregate claims in excess of $2,727,756.
Employee Retirement System
The City provides pension benefits to full time employees through a nontraditional, joint
contributory, hybrid defined benefit plan in the statewide Texas Municipal Retirement
System. Details of the plan can be found in Note 9 of the notes to the financial
statements.
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,
2003. This was the 17th consecutive year that the City has received this prestigious
award. In order to be awarded a Certificate of Achievement, the City published an easily
readable and efficiently organized CAFR. This report satisfied both GAAP and
applicable legal requirements.
v
current CAPR continu
Certificate of Achieve e valid for a period of n ear only. e believe that our
and we are submitting it to the GPOA to tlet e its eligibility for a other certificate,
ect the Certificate of Achieve ent Program's regu e ems
In addition, the City Euless also received Me GFOA 'Distinguished Bud
Presentation Award for its annual budget document dated Au st 200' Th• ge
13'h consecutive Year that the City has received this presti ious award.' 1 jct. is 18 'the
for the Distin ished 13udget Presentation Award, thegeity's budget12 (c31: ceurnti: t"1 fif
plan, all operations guide, and a communications device.
judged t e pil)ficient 17 several categories, including as a policy document, a finnan:: ls
The preparation of this reptirt would not have be possible without the efficient and
dedicated services of the entire staff of the ce department.woold like to express
preparation of this rep rt.
our appreciation to all members the dep lent who assisted and contributed to the
e would like to thank the members the City their interest and in
Respectfully submitted,
professional mann
planning ancl conducting the II cial operatiCouncil for
ons of the City in a respportponsible and
Cr,
4;21774:
Getche 4
tant City Manager
CITY OFFICIALS
MARY LIB SALEH, MAYOR
CARL TYSON, COUNCIL MEMBER PLACE ONE
LEON HOGG, COUNCIL MEMBER PLACE TWO
LINDA MARTIN, COUNCIL MEMBER PLACE THREE
CHARLES MILLER, COUNCIL MEMBER PLACE FOUR
GLENN PORTERFIELD, COUNCIL MEMBER PLACE FIVE
AND MAYOR PRO TEM
VEVA LOU MASSEY, COUNCIL MEMBER PLACE SIX
JOE HENNIG, CITY MANAGER
Gary McKamie, Loretta Getchell, CPA
Deputy City Manager Assistant City Manager
vii
The Government Finance Officers
Association of the United States
and Canada (GFOA) awarded a
Certificate of Achievement for
Excellence in Financial Reporting
to the City of Euless, Texas for its
comprehensive annual financial
report (CAFR) for the fiscal year
ended September 30, 2003. The
City of Euless has received a
Certificate of Achievement for the
last seventeen consecutive years.
In order to be awarded a
Certificate of Achievement, a
government unit must publish an
easily readable and efficiently
organized comprehensive annual
financial report. This 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.
We believe our current report
continues to meet the Certificate
of Achievement Programs
requirements, and we are
submitting it to the GFOA to
determine its eligibility for another
certificate.
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Euless,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2003
A Ccnilwate of Achievement for Ex.ecVence in Financial
Reporting is presented by the Government Finance Officers
Association of the united States and Canasta tit
government units and public employee retirement
systems evhose comprehensive annual financial
report., (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Executive Director
viii
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INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
We have audited the accompanying financial statements of the governmental
activities, the business -type activities, each major fund, and the aggregate
remaining fund information of the City of Euless, Texas as of and for the year
ended September 30, 2004, which collectively comprise the City's basic financial
statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express an
opinion on these financial statements based on our audit
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities,
the business -type activities, each major fund, and the aggregate remaining fund
information of the City of Euless, Texas as of September 30, 2004, and the
respective changes in financial position and cash flows, where applicable, thereof
for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
The management's discussion and analysis, the analysis of funding progress and
budgetary comparison information on pages 3 through 14 and 49 through 53, are
not a required part of the basic financial statements but are supplementary
information required by accounting principles generally accepted in the United
States of America We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement
and presentation of the supplementary information, However, we did not audit
the information and express no opinion on it.
1
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
Page 2
Our audit was conducted for the purpose of forming opinions on the financial
statements that collectively comprise the City's basic financial statements. The
introductory section, combining and individual nonmajor fund financial
statements, and 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 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,
Fort Worth, TX
December 22, 2004
4273
CITY OF EULESS, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2004
(Unaudited)
As management of the City of Euless, we offer readers of the City's financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal
year ended September 30, 2004. We encourage readers to consider the information
presented here in conjunction with the additional information that we have furnished in
our letter of transmittal, which can be found on pages i-vi of this report. The City
implemented Governmental Accounting Standards Board Statement 34 Basic Financial
Statements and Management's Discussion and Analysis for State and Local Governments
(Statement 34) for the first time for fiscal year 2003, therefore, comparative data is shown
in various tables within this report.
Financial Highlights
• The assets of the City of Euless exceeded its liabilities at the close of the most recent
fiscal year by $122,884,029 (Net assets). Of this amount, $31,563,086 (unrestricted
net assets) may be used to meet the government's ongoing obligations to citizens and
creditors.
• As of the close of the current fiscal year, the City of Euless' governmental funds
reported combined ending fund balances of $28,162,136, an increase of $4,688,367 in
comparison with the prior year. Approximately 89% of this total amount is available
for spending at the government's discretion (unreserved fund balance).
• At the end of the current fiscal year, unreserved fund balance for the general fund was
$5,552,863 or 25% of total general fund expenditures.
• The City's total capital assets increased by $5,721,447, which is primarily attributed
to street infrastructure.
• The City's bonds payable increased by $6,702,067 or 10%. The increase was due to
the issuance of new general obligation bonds for Pipeline Road, revenue bonds for a
water main and water tank rehabilitation and certificates of obligation for Glade Road
and various other street projects reduced by regularly scheduled bond payments and
savings from a bond refinancing.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of Euless'
basic financial statements. The City's basic financial statements are comprised of three
components: 1) government -wide financial statements, 2) fund financial statements, and
3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
3
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City of Euless' finances, in a
manner similar to a private -sector business.
The statement of net assets presents information on all of the City of Euless' assets and
liabilities, with the difference between the two reported as net assets. Over time,
increases or decreases in net assets may serve as a useful indicator of whether the
financial position of the City of Euless is improving or deteriorating.
The statement of activities presents information showing how the City's net assets
changed during the fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that
will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned
but unused compensated absences).
Both of the government -wide financial statements distinguish 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, public safety, highway and streets,
development, and culture and recreation. The business -type activities of the City include
water and sewer, drainage system, golf course and other recreational activities.
The government -wide financial statements include not only the City of Euless itself
(known as the primary government), but also includes the Euless Development
Corporation and the Crime Control District, which are legally separate but 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 15-16 of this report.
Fund Financial Statements. A fund is a grouping of related 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. 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.
4
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-terrmi 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 17 individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the govemmental fund
statement of revenues, expenditures, and changes in fund balances for the General, Street
CIP, and Car Rental Tax funds, all of which are considered to be major funds. Data from
the other 14 governmental funds are combined into a single, aggregate presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the
form of combining statements elsewhere in this report.
The basic governmental fund financial statements can be found on pages 17-19 of this
report.
The City adopts an annual appropriated budget for its general fund and car rental tax
fund. A budgetary comparison statement has been provided for both funds to
demonstrate compliance with this budget.
Proprietary funds. The City maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business -type
activities in the government -wide financial statements. The City uses enterprise funds to
account for its water and sewer, drainage, golf, and several other recreation 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. Because
these services predominately benefit governmental rather than business type functions,
they have been 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 sewer, drainage, and golf, all of which are considered
to be major funds. Data from the other recreation activities are combined into a single,
aggregate presentation. Individual data for each of these nonmajor 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.
5
The basic proprietary fund financial statements can be found on pages 21-25 of this
report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government -wide
financial statements because the resources of those funds are not available to support the
City's own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statements can be found on page 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 27-47
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.
Required supplementary information can be found on page 48-52 of this report.
The combining statements referred to earlier in connection with nonmajor governmental
funds, nonmajor proprietary funds and internal service funds are presented immediately
following the required supplementary information on pensions. Combining and
individual fund statements and schedules can be found on pages 55-73 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's
financial position. As of September 30, 2004, the City of Euless' assets exceeded
liabilities by $122,884,029.
The largest portion of the City's net assets (73%) reflects its investment in capital assets
(e.g., land, building, equipment, improvements, construction in progress, and
infrastructure), less any debt used to acquire those assets that is still outstanding. The
City uses these capital assets to provide services to citizens; consequently these assets are
not available for future spending. Although the City's investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used
to liquidate these liabilities.
An additional portion of the City's net assets (1%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net
assets ($31,563,086) may be used to meet the government's ongoing obligations to
citizens and creditors.
6
As of September 30, 2004, the City is able to report positive balance in all three
categories of net assets, for the government as a whole, as well as for its separate
governmental and business -type activities.
City of Euless' Net Assets
Qirert and other arts
cita asks
Total asqls
Lap -term liabilities cub:taxing
Other ties
Total liabilities
Nat rt,
Invested in capital es, net cf
reed dew
Restricted
Urrestrided
Total net as9ts
Gayer rren1
activities
2004 2003
$ 41,953,713 $ 35,267,340
814,345 85,744,846
130,768,058 121,012186
55,703,242 5),722,077
12,370,495 12438,9%
68,073,740 63,161,073
Busincoc type
aplivities
2004 2003
$19,738,892 $17,177,132
60,313,460 57,661,512
80,062,352 74,838,644
16,264,817 14, 595,000
3,597,824 3,2:0,704
19,8E2,641 17,795,704
Total
2004 2003
$ 61,692,605 $ 52444,472
149,127,805 143,406,358
210, 820, 410 195, 850, 830
71,968,059 65,317,077
15,958 322 15,539,700
87,936,331 80,956,777
46,733,074 42,192,665 43,2E3,643 42401,512 90,016,717 84,594,177
1,334,226 713,335 - 632189 1,304,226 1,345,574
14,657,018 14,945,033 16,906,068 14,009,239 31,533,036 28,954,302
$ 62,694,318 $ 57,851,113 $ 60,189,711 $ 57,042,940 $122,884,029 $114,894,011
The government's net assets increased by $7,989,976 during the current fiscal year.
About 76% of the increase is attributed to developer contribution of infrastructure assets
with the remaining portion attributed to ongoing revenues in excess of ongoing expenses.
Governmental activities. Governmental activities increased the City's net assets by
$4,843,205, thereby accounting for 61% of the total growth in the net assets. Key
elements of this increase are as follows:
• Property taxes and sales taxes accounted for $656,064 or 13% of this increase.
Although the tax rate decreased, increased property values attributed to additional
collections.
• Other taxes accounted for $591,131 or 12% of this increase. This is primarily
attributed to increased collections of car rental taxes at DFW Airport.
• Contributed capital from developers increased by $1,376,840 due to required
infrastructure surrounding new residential and commercial development.
• Increased expenses are primarily attributed to personnel cost. Governmental
activities had a decrease in transfers to business type activities due to cash
funding for Phase III of the Parks at Texas Star in the prior year.
7
City of Euless' Changes in Net Assets
Governmental Business -type
activities activities Total
2004 2003 2004 2003 2004 2003
Revenues:
Program revenues:
Fees, Fines and Charges for
services $ 5,599,328 $ 5,630,326 $ 18,943,980 $ 19,076,680 $ 24,543,308 $ 24,707,006
Operating grants and
contributions 517,307 515,039 517,307 515,039
Capital grants and
contributions -
General revenues:
Property taxes 10,233,079 9,941,779 - 10,233,079 9,941,779
Sales taxes 9,229,819 8,865,055 9,229,819 8,865,055
Other taxes 13,666,041 13,074,910 - 13,666,041 13,074,910
Investment earnings 463,239 580,245 266,240 320,233 729,479 900,478
Contributions from property
owners 3,191,097 1,814,257 3,588,379 3,421,860 6,779,476 5,236,117
Gain (loss) on sale/retirement
of fixed assets 30,811 41,807 - - 30,811 41,807
Miscellaneous 18,208 102,193 - 18,208 102,193
Total revenues 42,948,929 40,565,611 22,798,599 22,818,773 65,747,528 63,384,384
Expenses
Culture and recreation 4,411,726 4,753,724 4,411,726 4,753,724
Development services 1,217,794 1,190,240 1,217,794 1,190,240
General government 12,337,712 11,879,362 12,337,712 11,879,362
Highways and streets 2,398,447 2,117,959 2,398,447 2,117,959
Public safety 15,315,777 14,830,469 15,315,777 14,830,469
Interest on long-term debt 2,765,102 3,147,819 - 2,765,102 3,147,819
Water & sewer - - 12,550,708 12,046,092 12,550,708 12,046,092
Drainage utility 793,358 812,785 793,358 812,785
Golf course - 3,667,537 3,616,671 3,667,537 3,616,671
Other enterprise funds - - 2,299,391 2,593,455 2,299,391 2,593,455
Total expenses 38,446,558 37,919,573 19,310,994 19,069,003 57,757,552 56,988,576
Increase in net assets before
transfers 4,502,371 2,646,038 3,487,605 3,749,770 7,989,976 6,395,808
Transfers 340,834 _ _....._ (1,535,227) (340,834) 1,535,227 - -
lncrease in net assets 4,843,205 1,110,811 3,146,771 5,284,997 7,989,976 6,395,808
Net assets 10/01/03 57,851,113 56,740,302 57,042,940 51,757,943 114,894,053 108,498,245
Net assets 09/30/04 $ 62,694,318 $ 57,851,113 $ 60,189,711 $ 57,042,940 $ 122,884,029 $ 114,894,053
Business -type activities. Business -type activities increased the City's net assets by
$3,146,771 accounting for the other 39% of the total growth in net assets. Key elements
of this increase are as follows:
• Water and sewer revenues increased $467,108 due to a rate increase; however, no
significant increase is reflected in business -type activity charges for services due
to an offsetting loss of revenue from Arbor Daze which was cancelled due to
weather.
• Expenses increased due to personnel cost; however, a portion of this increase was
offset by savings related to the cancellation of Arbor Daze.
8
• The significant decrease in transfers to the business -type activities is directly
attributed to the one-time cash infusion in 2003 for Phase III of Parks at Texas
Star.
• The overall increase in net assets from business type activities is primarily
attributed to operating income from water and sewer operations and revenue from
developer contributions for water, sewer and drainage infrastructure.
Expenses and Program Revenues — Governmental Activities
$16,000,000
$12,000,000
$8,000,000 •
$4,000,000
$0
IIIII Expenses
Program revenues
Gen & Culture & Dev Hwy and Public Int on
admin rec services streets safety long-term
debt
Expenses and Program Revenue — Business -type Activities
$16,000,000
$12,000,000
$8,000,000
$4,000,000
IN Expenses
0 Program Revenues
1111_
Water & Sewer Drainage Golf
Other
--J
9
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide
information on near -term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City's financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a City's net resources available
for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Euless' governmental funds reported
combined ending fund balances of $28,162,136, an increase of $4,688,367 in comparison
with the prior year. Approximately 89% constitutes unreserved fund balance, which is
available for spending at the government's discretion. The remainder of fund balance is
reserved to indicate that it is not available for new spending because it has already been
committed 1) to pay debt service ($1,432,251), 2) to pay for specific capital
improvements per development agreements ($1,442,999), and 3) for a variety of other
restricted purposes ($194,498).
In the general fund, the City budgeted for a decrease in fund balance of $1,624,670,
which was primarily resulting from a transfer of $450,000 to the insurance and risk
management fund, and $1,174,670 to purchase capital items. This was a planned
reduction of excess fund balance to fund "pay as you go" capital expenditures and to
subsidize the internal service funds that experienced unusually large claims. Due to actual
revenue being more than budgeted and actual expenditures being less than budgeted, the
actual fund balance decrease for fiscal year 2004 was only $429,481. Street CIP fund
balance increased $5,224,477 due to bond proceeds for the planned construction of
several major thoroughfares including Pipeline Road, Glade Road, and Raider Dr. which
have not yet been expended. The Car Rental fund budgeted a decrease of $1,818,570,
which was a planned reduction of excess fund balance to be used to fund capital projects
including the construction of a new Fire Station and park improvement as well as a
transfer to subsidize the health insurance fund. The actual decrease was $1,392,566 due
to increased collections of car rental taxes.
Proprietary funds. The City's proprietary fund statements provide the same type of
information found in the government -wide financial statements but in more detail.
Unrestricted net assets of the proprietary funds are Water and Sewer - $14,991,580,
Drainage Utility - $1,920,207, Golf Course — (1,506,470), and Other Enterprise Funds -
$1,705,511. Water and Sewer and Drainage had increases in 2004 of $2,503,964 and
$1,183,582 respectively. Golf Course and Other Enterprise Funds had decreases of
$423,602 and $24,711 respectively. The decrease in the Golf Course net assets is
attributed to a net loss from operations in addition to interest on debt service.
10
General Fund Budgetary Highlights
The only difference between the general fund original budget and the final amended
budget was an additional $250,000 transfer to the health insurance fund.
This increase was to be funded out of available fund balance; however, revenues
exceeded budgetary estimates and expenditures were less than budgetary estimates, thus
eliminating the need to draw upon existing fund balance.
Car Rental Fund Budgetary Highlights
The Car Rental Fund original budget was amended to include a transfer of $1,400,000 to
the health insurance fund and $109,988 to the Capital Project Funds for City Hall
renovations.
This increase was funded out of available fund balance.
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, 2004, amount to $149,127,805 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, improvements,
machinery and equipment, infrastructure and construction in progress. The total increase
in the City's investment in capital assets for the current fiscal year was 4% (a 3.5%
increase in governmental activities and a .5% increase in business -type activities).
Major capital asset events during the current fiscal year included the following:
• Acquisition and developer contribution of right of way related to street construction
totaled $828,396.
• Addition of $1,974,208 in infrastructure consisting of street overlay and sidewalks of
$335,227, South Pipeline Road Bridge $349,839, traffic signals $157,283, parking
improvements of $220,054 and developer contributions of streets in the amount of
$911,805.
• Addition of $74,647 in infrastructure for irrigation at West Park and the Fire Station.
• Construction -in -progress additions of $2,742,835 primarily consisted of North Main
Street ($2,168,923), Pipeline Road ($136,029), and Fire Station # 3 ($333,024) .
• Construction -in -progress additions related to enterprise funds totaled $1,334,338
primarily consisting of Parks at Texas Star Phase III ($1,062,969) and various
drainage and water projects.
• Addition of $3,954,599 in water, sewer, and drainage infrastructure projects including
developer contributions of $2,850,705.
11
City of Euless' Capital Assets (Net of Accumulated Depreciation)
Land
Buildings
Improvements other than
buildings
Machinery and equipment
Infrastructure
Construction in progress
Governmental
activities
2004 2003
$21,487,063 $20,658,667
29,476,950 28,947,214
Business -type
activities
2004 2003
$2,776,602 $2,776,602
3,202,299 3,325,954
Total
2004 2003
$24,263,665 $23,435,269
32,679,249 32,273,168
1,979,263 1,964,898 26,829,304 26,115,208 28,808,567 28,080,106
3,768,444 4,467,216 813,984 964,902 4,582,428 5,432,118
24,841,584 18,145,683 24,111,449 23,207,687 48,953,033 41,353,370
7,261,041 11,561,168 2,579,822 1,271,159 9,840,863 12,832,327
Total $88,814,345 $85,744,846 $60,313,460 $57,661,512 $149,127,805 $143,406,358
Additional information on the City's capital assets can be found in note 3 on pages 35-36
of this report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $74,262,948. Of this amount, $59,597,948 comprises debt backed by the
full faith and credit of the government. The remainder of the City's debt, $14,665,000,
represents bonds secured solely by specific revenue sources (i.e. revenue bonds).
City of Euless' Outstanding Debt
General obligation bonds
Certificates of obligation
Revenue bonds
Deferred loss on refunding
bonds
Total
Governmental
activities
2004 2003
$ 17,525,000 $ 15,381,815
31,615,000 28,295,000
8,310,000 8,860,000
(216,869) (235,934)
$ 57,233,131 $ 52,300,881
Business -type
activities
2004 2003
$ 11,095,000 $
500,000 10,660,000
6,355,000 4,600,000
(920,183) -
$ 17,029,817 $ 15,260,000
Total
2004 2003
$ 28,620,000 $ 15,381,815
32,115,000 38,955,000
14, 665, 000 13,460,000
(1,137,052) (235,934)
$ 74,262,948 $ 67,560,881
The City's total debt increased by $6,702,067 or 10% during the current fiscal year. This
increase is primarily attributed to issuing $3.2 million in general obligation bonds for
Pipeline Road reconstruction, $4.3 million in certificates of obligation for Glade Road
and other street improvements, and $2.1 million of revenue bonds for the Pipeline Road
water main and water tank renovations netted with regularly scheduled annual principal
payments.
During the current fiscal year, the government refinanced some of its existing debt to take
advantage of favorable interest rates.
• The City issued $11,095,000 in general obligation refunding bonds during 2004 to
advance refund $10,160,000 of outstanding debt, which resulted in a reduction in debt
payment of $995,134 over the next 23 years and an economic gain of $841,675.
The City has an "Al" rating from Moody's and an AA- rating from Standard & Poor's
for general obligation debt. The revenue bonds have been rated "Al" by Moody's and
12
"A+" by Standard & Poor's. These rating reflect an upgrade from Standard & Poor's for
the general obligation debt and the revenue debt and an upgrade in the Moody's rating for
revenue debt.
Additional information on the City's long-term debt can be found in Note 4 on pages
37-42.
Economic Factors and Next Year's Budgets and Rates
In the fiscal year 2004-05 budget, general fund revenues and transfers are budgeted to
increase by 5% from the 2003-04 budget year with property taxes making up about 30%
of budgeted revenues and sales tax making up about 27% of budgeted revenues.
Certified assessed valuations as of September 1, 2004, increased 4.8% over the preceding
year.
As of September 30, 2004, the City's unemployment rate is 3.8% compared to the State
of Texas, which is 5.5%. In the FY2004-05 budget, sales tax receipts are projected to
have a significant increase due to the addition of a new business within the community
with strong sales projections. The City has continued to budget car rental tax receipts
conservatively due to the volatile nature of this revenue. Revenue derived from this
source is closely related to the amount of business travel through the DFW International
Airport.
Budgeted expenditures remain fairly level with the prior year. Departments were asked
to hold increases in operating expenses to a minimum in order to fund a salary package
and three additional firefighters. The City elected to continue its current level of funding
for street maintenance and construction and "pay as you go" capital replacements due to
the importance placed on these items. The tax rate remained unchanged at .495 per $100
of assessed value for fiscal year 2005.
The 2004-05 budget includes an increase in the City's water rate of .20¢ which represent
a pass -through charge from Trinity River Authority. This increase will be used to pay the
increased cost of water purchased. The City budgeted to continue its "pay as you go"
program in the water and sewer fund which includes approximately $825,000 of
infrastructure improvements.
The golf course revenues and rounds are budgeted to remain flat as compared to prior
year. Continued saturation in the local golf market and a slow economy with respect to
recreational expenditures are the principal reasons for the FY05 golf revenue budget
assumptions. Operating expense increases have been held to a minimum and are
principally due to annual merit increases for employees. It is anticipated that this fund
will not improve its current deficit position in FY05. Transfers from the car rental fund
may be necessary to subsidize the shortfall.
13
Request for Information
The financial report is designed to provide our 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: Finance
Administrator, at 201 N. Ector Drive, Euless, Texas 76039, call (817) 685-1826, or e-
mail vrodriaueza.cLeuless.tx.us.
14
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2004
Primary Government
Governmental Business -type
Activities Activities Total
ASSETS
Deposits and investments $ 34,473,983 $ 11,977,591 $ 46,451,574
Receivables (net of allowances for uncollectibles) 4,932,925 2,449,872 7,382,797
Internal Balances 1,739,235 (1,739,235)
Inventory of Supplies 9,289 185,090 194,379
Prepaid Items 52,380 96,345 148,725
Due from other governments 620,444 620,444
Restricted Assets:
Cash and Cash Equivalents 465,791 465,791
Investments 5,812,742 5,812,742
Interest Receivable 588 588
Deferred charges 125,457 490,108 615,565
Capital Assets:
Land and Construction in Progress 28,748,104 5,356,424 34,104,528
Other Capital Assets, Net of Accumulated Depreciation 60,066,241 54,957,036 115,023,277
Total Assets and Other Debits $ 130,768,058 $ 80,052,352 $ 210,820,410
LIABILITIES AND NET ASSETS
LIABILITIES:
Accounts Payable
Accrued Liabilities
Accrued interest payable
Deferred Revenue
Money Held in Escrow
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
NET ASSETS:
Invested in Capital Assets, net of related debt
Restricted for Debt Service
Unrestricted
Total Net Assets
$ 8,569,172 $ 1,050,550 $ 9,619,722
683,149 341,097 1,024,246
458,131 31,137 489,268
98,800 98,800
1,311,240 1,311,240
2,660,046
55,703, 242
68,073,740
46,733,074
1,304,226
14,657,018
765,000 3,425,046
16,264,817 71,968,059
19,862,641 87,936,381
43,283,643 90,016,717
1,304,226
16,906,068 31,563,086
$ 62,694,318 $ 60,189,711 $ 122,884,029
The Notes to the Basic Financial Statements
are an integral part of this statement. 15
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2004
Program Revenues
Fees, Fines and
Charges for Operating Grants
Program Activities Expenses Services and Contributions
Primary government:
Governmental Activities:
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
Capital Grants Governmental Business - Type
and Contributions Activities Activities
Total
Culture and recreation $ 4,411,726 $ 52,651 $ 34,944 $ $ (4,324,131) $ $ (4,324,131)
Development services 1,217,794 817,293 - $ (400,501) (400,501)
General and administrative 12,337,712 1,401,057 $ (10,936,655) - (10,936,655)
Highways and streets 2,398,447 - - $ (2,398,447) (2,398,447)
Public safety 15,315,777 3,328,327 482,363 $ (11,505,087) (11,505,087)
Interest on Long-term Debt 2,765,102 (2
$ (2,765,102) (2.765,102)
Total governmental activities 38.446,558 5,599,328 517,307 (32,329,923). - (32,329,923)
Business -type activities:
Water & Sewer 12,550,708 13,235,590 - - 684,882 684,882
Drainage Utility 793,358 643,229 (150,129) (150,129)
Golf 3,667,537 3,052,947 - (614,590) (614,590)
Other 2,299,391 2,012,214 (287,177) (287,177)
Total business -type activities 19,310,994 18,943, )80 - - (367,014) (367,014)
Total primary government -$ 57.757.552 $ 24.543.308 $ 517.307 $ (32,329.923) (367,014` (32,696,9371
Change in Net Assets
NET ASSETS, beginning of year
GENERAL REVENUES:
Taxes:
Property Taxes, levied for general purposes $ 10,233,079 $
Sales Taxes 9,229,819
Other Taxes 13,666,041
Interest on Investments 463,239
Contributions from property owners 3,191,097
Gain on Sale of Assets 30,811
Miscellaneous 18,208
Transfers 340,834
266,240
3,588,379
(340,834)
$ 10,233,079
9,229,819
13,666,041
729,479
6,779,476
30,811
18,208
Total general revenues aria transfers 37,173,128 3,513,785 40,686,913
4,843,205 3,146,771 7,989,976
57,851,113 57,042,940 114,894,053
NET ASSETS, end of year $ 62,694,318 $ 60,189,711 $ 122,884,029
The Notes to the Basic Financial Statements
are an intesral part of this statement. 16
CITY OF EULESS, TEXAS
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2004
ASSETS
Deposits and investments
Receivables:
Property taxes
Accounts receivable and unbilled revenue
Accrued interest
Due from other funds
Due from other governments
Prepaids and deposits
Inventories, at cost
Total assets
Streets Car Other Total
General CIP Rental Tax Governmental Governmental
Fund Fund Fund Funds Funds
$ 6,700,111 $ 11,025,646 $ 6,568,175 $ 7,369,425 $ 31,663,357
604,973 - 604,973
1,936,130 - 1,730,947 400,372 4,067,449
48,556 2,734 37,179 19,539 108,008
1,572,186 - 1,572,186
- 620,444 620,444
40,452 - 5,114 45,566
9,289 - 9,289
$ 9,339,511 $ 11,028,380 $ 9,908,487 $ 8,414,894 $ 38,691,272
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 1,742,170 $ 107,272 $ 6,241,430 $ 154,713 $ 8,245,585
Accrued salaries and wages 610,613 - - 64,509 675,122
Deferred revenue 1,240,612 330,106 1,570,718
Due to other funds - - 37,711 37,711
Due to other governments -
Total liabilities 3,593,395 107,272 6,241,430 587,039 10,529,136
Fund Balances:
Reserved for:
Debt service 1,432,251 1,432,251
Computer 134,534 134,534
Development agreements 1,442,999 1,442,999
Betterment 9,559 9,559
Library 4,737 4,737
Injured animals 1,766 1,766
Historical Preservation 1,245 1,245
9-1-1 Emergency System 22,805 - - 22,805
Technology 13,652 13,652
Campus remodel 6,200 - - 6,200
Unreserved:
Designated for:
Contingency 500,000 - 500,000
Emergency 500,000 - - - 500,000
Undes€gnated, reported in:
General fund 4,552,863 - 4,552,863
Special revenue funds - 3,667,057 2,163,607 5,830,664
Capital projects funds 10,921,108 - 2,787,753 13,708,861
Total fund balances 5,746,116 10,921,108 3,667,057 7,827,855 28,162,136
Total liabilities and fund balances $ 9,339,511 $ 11,028,380 $ 9,908,487 $ 8,414,894 $ 38,691,272
The Notes to the Basic Financial Statements
are an integral part of this statement,
17
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2004
Total fund balances - governmental funds $ 28,162,136
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital assets used in governmental activities are not current financial resources
and therefore are not reported in the governmental funds balance sheet 88,814,345
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. 125,457
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. ( 458,131)
Internal service funds are used by management to charge the cost of certain
activities, such as insurance and fleet management, to individual funds. The
assets and liabilities of the internal service funds are net of the amount allocated
to business -type activities, capital assets and long term liabilities. 2,843,082
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 1,570,717
Long-term liabilities, including bonds payable are not due and payable in the
current period and therefore are not reported in the fund financial statements. ( 58,363,288)
Net assets of governmental activities $ 62,694,318
The Notes to the Basic Financial Statements
are an integral part of this statement. 18
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2004
Streets Car Other Total
General CIP Rental Tax Governmental Governmental
Fund Fund Fund Funds Funds
Revenues:
General property tax $ 6,434,389 $ $ 3,862,830 $ 10,297,219
Gross receipts tax 3,308,526 - 167,259 3,475,785
General sales tax 5,801,515 - - 3,428,304 9,229,819
Car rental tax 10,190,256 10,190,256
Fines and fees 3,162,113 - 3,162,113
Licenses and permits 1,190,059 - - 1,190,059
Interest income 147,204 48,930 123,204 125,315 444,653
DEA revenues - - 128,341 128,341
Intergovernmental 292,265 - - - 292,265
Other revenues 243,482 1,190,553 1,434,035
Total revenues 20,579,553 48,930 10,313,460 8,902,602 39,844,545
Expenditures:
Current:
Culture and recreation 2,638,510 - 947,516 3,586,026
Development services 974,771 - 175,423 1,150,194
General and administrative 5,064,926 6,774,624 72,500 11,912,050
Highways and streets 766,030 - 766,030
Public safety 12,337,868 1,476,890 13,814,758
Debt service:
Principal - 2,666,815 2,666,815
Interest and fiscal charges - 3,308,249 3,308,249
Issuance costs 80,000 - 80,000
Capital outlay and maintenance 2,324,453 - 1,130,737 3,455,190
Total expenditures 21,782,105 2,404,453 6,774,624 9,778,130 40,739,312
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses)
Issuance of debt
Transfers in
Transfers out
Total other financing sources (uses)
( 1,202,552) ( 2,355,523) 3,538,836 ( 875,528) ( 894,767)
7,580,000
1,424,088
( 651,017)
7,580,000
31,764 2,529,434 3,985,286
( 4,963,166) ( 367,969) ( 5,982,152)
773,071 7,580,000 ( 4,931,402)
2,161,465 5,583,134
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
financing uses ( 429,481) 5,224,477 ( 1,392,566) 1,285,937 4,688,367
Fund balances, beginning of year 6,175,597 5,696,631 5,059,623 6,541,918 23,473,769
Fund balances, end of year $ 5,746,116 $10,921,108 $ 3,667,057 $ 7,827,855 $ 28,162,136
The Notes to the Basic Financial Statements
are an integral part of this statement. 19
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, 2004
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense. This is
the amount of capital assets recorded in the current period.
Governmental funds do not recognize assets contributed by developers. However,
in the statement of activities the fair market value of those assets are
recognized as revenue, then allocated over their estimated useful lives and
reported as depreciation expense.
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation
expense is not reported as expenditures in the governmental funds.
The issuance of long term debt (e.g. bonds) provides current financial resources
to governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net assets. Also, govemmental 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.
Current year changes in long term liability for compensated absences do not require
the use of current financial resources; therefore, are not reported as expenditures
in governmental funds
$ 4,688,367
3,178,811
3,191,097
(3,020,721)
(4,918,129)
(61,211)
Current year changes in accrued interest payable do not require the use of current
financial resources; therefore, are not reported as expenditures in governmental funds. 209,099
internal service funds are used by management to charge the costs of certain
activities, such as insurance and fleet management, to individual funds. The
net revenue of the internal service funds is reported with governmental activities
net of amount allocated to business -type activities.
Payments of accreted interest on capital appreciation bonds are
expenditures in the fund financial statements, but are shown as reductions in long-term
debt in the government -wide financial statements,
Certain revenues in the government -wide statement of activities that do not
provide current financial resources are not reported as revenue in the
governmental funds.
Change in Net Assets of Governmental activities
1,287,044
418,993
(130,145)
$ 4,843,205
The Notes to the Basic Financial Statements
are an integral part of this statement. 20
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2004
ASSETS
Current assets:
Deposits and investments
Revenue bond debt service:
cash with paying agent
Revenue bond emergency:
short-term investments
Capital projects account:
Cash and cash equivalents
Accrued interest receivable
Short-term investments
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$7,608 for water and sewer and
$218 for drainage utility
Accrued interest receivable
Prepaids and deposits
Inventory
Due from other funds
Total current assets
Bond issuance cost
Less accumulated amortization
Net bond issuance cost
Utility plant and equipment in service, at cost
Land
Building
Equipment
Improvements
Construction in progress
Waterworks and sanitary sewer system
Less accumulated depreciation
Net utility plant and equipment in service
TOTAL ASSETS
(1 of 2)
Water and
Sewer
$ 8,353,749 $ 1,846,631 $ - $ 1,777,211 $ 11,977,591 $ 2,810,626
396,719 - 396,719
500,000 500,000
69,072
588
5,312,742
2,237,015
55,519
75,938
59,641
232,565
17,293, 548
210,373
113,623
96,750
1,528,966 314,969 348,135 584,532
186,465 - 3,402,783 488,275
888,538 1,346,898 246,944
21,695,725 7,779,141 5,701,190
1,333,669 38,161 66,123 1,141,869
44,012,241 - - -
47,949,879 22,048,855 12,943,080 8,162,810
20,569,777 5,615,903 3,080,426 1,525,058
27,380,102 16,432,952 9,862,654 6,637,752
$ 44,770,400 $ 18,388,149 $10,370,887 $8,790,716 $ 82,320,152 $ 5,008,919
Business TKrpe Activities - Enterprise Funds
Other
Drainage Golf Enterprise
Utility Course Funds
37,470 106,830 2,535
4,318 - 6,185
8,955 11,452
110,151 15,298
296,000
1,888,419 225,936 2,108,681
166,554 297,155 52,206
99`776 14,858 7`923
66,778 282,297 44,283
Total
Enterprise
Funds
69,072
588
5,312,742
2,383,850 151,002
66,022 1,493
96,345 6,814
185,090
528,565
21,516,584 2,969,935
726,288
236,180
490,108
2,776,602
4,077,523
2,482,380
35,176,056
2,579,822
44,012,241
Governmental
Activities -
Internal
Service Funds
5,301,953
91,104,624 5,301,953
30,791,164 3,262,969
60,313,460 2,038,984
The Notes to Basic Financial Statements
are an integral part of this statement. 21
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2004
LIABILITIES
Current liabilities:
Payable from current assets:
Accounts payable
Accrued salaries and wages
Current portion of bonds payable
Accrued insurance claims
Deferred revenue
Total current liabilities
Current obligations payable from
restricted assets:
Customer and escrow deposits
Current portion of bonds payable
Accrued interest
Bonds payable
Deferred revenue
Due to other funds
Total liabilities
NET ASSETS
Invested in capital assets,
net of related debt
Unrestricted
Total net assets
Water and
Sewer
$ 794,308
243,960
Business Type Activities - Enterprise Funds
Other
Golf Enterprise
Course Funds
Drainage
Utility
$ 30,307
4,683
170,000
1,038,268 204,990
1,311,240
305,000
31,137
4,915,000
18,073
$ 135,231
58,420
200,000
$ 90,704
34,034
90,000
54,012 26,715
447,663 241,453
965,000 8,976,508 1,408,309
1,767,040 296,000
7,618,718 1,169, 990 11,191, 211 1,945,762
22,160,102 15,297,952 686,146 5,139,443
14,991,580 1,920,207 (1,506,470) 1,705,511
Total
Enterprise
Funds
$ 1,050,550
341,097
460,000
80,727
(2 of 2)
Governmental
Activities -
Internal
Service Funds
$ 119,173
8,027
204,418
1,932,374 331,618
1,311,240
305,000
31,137
16,264,817
18,073
2,063,040
21,925,681
43,283,643
17,110,828
331,618
2,038,979
2,638,322
$ 37,151,682 $ 17,218,159 ($ 820,324) $6,844,954 $60,394,471 $ 4,677,301
Reconciliaition to government -wide statements of net assets:
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds
Net assets of business -type activities
( 204,760)
$60,189,711
The Notes to Basic Financial Statements
are an integral part of this statement.
22
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2004
Business Type Activities - Enterprise Funds Governmental
Other Total Activities -
Water and Drainage Golf Enterprise Enterprise Internal
Sewer Utility Course Funds Funds Service Funds
Operating revenues:
Water service 5 7,711,174 $ - $ $ - $ 7,711,174 $
Sewer service 4,545,079 4,545,079
Drainage fees 643,229 - 643,229
Recreation fees - - 357,543 357,543
Insurance premiums - - - 2,210,423
Service fees and miscellaneous 979,337 3,052,947 1,654,671 5,686,955 501,536
Total operating revenues 13,235,590 643,229 3,052,947 2,012,214 18,943,980 2,711,959
Operating expenses'
General and administrative 548,040 - 548,040 201,260
Water production 4,565,657 - 4,565,657 -
Water distribution 519,178 - - 519,178 -
utility engineering 429,824 - - 429,824 -
Sewagecollectionandtreatment 1,610,313 - - 1,610,313 -
Nondepartmental 2,197,416 - - 2,197,416 -
Geographic information 253,898 253,898 Service center 778,196 - - - 778,196 -
Drainage - 225,815 - - 225,815
Recreation classes - - - 287,042 287,042
Golf course - - 1,083,069 - 1,083,069
Pro Shop - - 352,188 352,188 -
Food and beverage - 864,332 864,332 -
Conference center 210,732 210,732 -
Cart operations 132,912 132,912 -
Athletic complex - 204,040 204,040 -
Softball complex - 867,862 867,862
Arbor Daze 583,699 583,699
Insurance costs - 3,302,449
Depreciation 1,253,889 507,688 513,191 263,699 2,538,467 574,805
Amortization 8,250 13,356 52,228 8,351 82,185 -
Total operating expenses 12,164,661 746,859 3,208,652 2,214,693 18,334,865 4,078,514
Operating income (loss) 1,070,929 ( 103,630) ( 155,705) ( 202,479) 609,115 ( 1,366,555)
Nonoperating revenues (expenses)
Impact fees 737,674 - - - 737,674
Gain on sale of fixed assets - - 24,851
Investment income 207,584 23,902 - 34,754 266,240 18,586
interest on bonds ( 183,946) { 46,255) ( 416,480) ( 56,986) ( 703,667) -
Total nonoperating revenues (expenses), net 761,312 { 22,353) ( 416,480) ( 22,232) 300,247 43,437
Income (toss) before contributions and
operating transfers
Developer contributed assets
Transfers in
Transfers out
Net income (loss)
Net assels, beginning of year
Net assets, end of year
1,832,241 ( 125,9C3) ( 572,185) ( 224,711) 909,362 ( 1,323,118)
1,508,657 1,342,048 - 2,850,705
4,651 183,923 211,527 400,101 2,517,700
( 841,585) ( 32,483) ( 35,340) ( 11,527) ( 920,935)
2,503,964 1,183,582 ( 423,602) ( 24,711) 3,239,233 1,194,582
34,647,718 16,034,577 ( 396,722) 6,869,665 3,482,719
$ 37,151,682 $ 17,218,159 $ (820,324) $ 6,844,954 $ 4,677,301
Reconciliaition to government -wide statements of net assets:
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds
Change in net assets of business -type activities
{ 92,462)
$ 3,146,771
The Notes to the Basic Financial Statements
are an integrat part of this statement. 23
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2004
Business Type Activities - Enterprise Funds Governmental
Other Total Activities -
Water and Drainage Golf Enterprise Enterprise Internal
Sewer Utility Course Funds Funds Service Funds
OPERATING ACTIVITIES
Cash received from customers $ 13,031,440 $ 639,142 $ 3,120,302 $ 2,010,950 $ 18,801,834 $ 2,898,599
Other operating cash receipts
Cash payments to suppliers
for goods and services ( 7,666,131) ( 175,135) ( 1,355,457) ( 1,481,517) ( 10,678,240) ( 3,639,588)
Cash payments to employees
for services ( 2,658,205) ( 21,937) ( 1,407,376) ( 426,825) ( 4,514,343) ( 98,419)
Cash payments from(to) other funds
for services 250,000 250,000 Net cash provided by (used in)
operating activities 2,707,104 442,070 607,469 102,608 3,859,251 ( 839,408)
NONCAPITAL FINANCING ACTIVITIES
Transfer in
Transfer out
Net cash provided by (used in)
noncapital financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees
Interest paid on bonds
Reduction in bonds payable
Net proceeds from bond issuances
Loss on refunding bond issuance
Bond issuance costs
Purchase of utility plant and
equipment in service
Proceeds from sale of equipment
Net cash provided by (used in) capital
and related financing activities
INVESTING ACTIVITIES
Purchase of investment securities
Interest received on investments
Net cash provided by
investing activities
Net change in cash and
cash equivalents
Cash and cash equivalents.
beginning of year
Cash and cash equivalents,
end of year
4,651 - 183,923 211,527 400,101 2,517,700
( 841,585) ( 32,483) ( 35,340) ( 11,527) ( 920,935)
( 836,934) ( 32,483) 148,583 200,000 ( 520,834) 2,517,700
737,674
( 183,946) ( 46,255)
( 225,000) ( 165,000)
2,145,000 -
{
65,000)
416,480)
190,000)
1,115, 000
880,862)
224,025)
56,986)
85,000)
95,000
82,466)
10,638)
737,674
703,667)
665,000)
3,355,000
963,328)
299,663)
( 985,918) ( 274,817) ( 163.615) ( 1,228,703) ( 2,653,053) ( 369,606)
- - 24,851
1,422,810 ( 486,072) ( 759,982) ( 1,368,793) ( 1,192,037) ( 344,755)
( 2,613,156) - ( 2,613,156)
197,041 22,906 29,535 249,482 17,658
( 2,416,115) 22.906 29,535 ( 2,363,674) 17,658
876,865 ( 53,579) ( 3,930) ( 1,036,650) ( 217,294) 1,351,195
7,942,675 1,900,210 3,930 2,813,861 12,660,676 1,459,431
$ 8,819,540 $ 1,846,631 $ $ 1,777,211 $ 12,443,382 $ 2,810,626
The Notes to the Basic Financial Statements
are an integral part of this statement.
24
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2004
Business Type Activities - Enterprise Funds Governmental
Other Total Activities -
Water and Drainage Golf Enterprise Enterprise Internal
Sewer Utility Course Funds Funds Service Funds
Reconciliation of operating income
(loss) to net cash provided by
(used in) operating activities
Operating income (loss) $ 1,070,929 ($ 103,630) ($ 155,705) ($ 202,479) $ 609,115 ($ 1,366,555)
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities
Depreciation and amortization 1,262,139 521,044 565,419 272,050 2,620,652 574,805
Loss on disposal of equipment 244,350 67,075 1,919 313,344 74,493
Change in assets and liabilities:
Accounts receivable and
unbilled revenue ( 199,618) ( 4,087) ( 6,791) 7,021 ( 203,475) 109,092
Due from other funds - - -
Prepaids and deposits ( 72,052) 455 6,149 ( 65,448) ( 6,814)
inventory 1,031 - 10,905 26,007 37,943
Accounts payable 366,887 25,598 ( 104,323) ( 6,218) 281,944 ( 131,854)
Accrued salaries and wages 37,971 3,145 ( 26,637) 6,444 20,923 ( 9,486)
Accrued insurance claims - - - ( 63,089)
Due to other funds - 250,000 250,000
Customer and escrow deposits 3,267 - 3,267
Deferred revenue ( 7,800) - 7,071 ( 8,285) ( 9,014)
Net cash provided by
operating activities
Noncash investing, capital and
financing activities
Developer contributed assets
$ 2,707,104 $ 442,070 $ 607,469 $ 102,608 $ 3,859,251 ($ 839,408)
$ 1,508,657 $ 1,342,048 $
Reconciliation of cash to balance sheet:
Cash -current $ 8,353,749 $ 1,846,631 $
Cash - revenue bond debt service 396,719
Cash - capital projects account 69,072
Cash and cash equivalents $ 8,819,540 $ 1,846,631 $
$ $ 2,850,705
$ 1,777,211 $ 11,977,591
396,719
69,072
$ 1,777,211 $ 12,443,382
The Notes to the Basic Financial Statements
are an integral part of this statement.
25
CITY OF EULESS, TEXAS
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2004
Assets:
Deposits and investments
Total assets
Liabilities:
Due to other entities
Total liabilities
Agency
Funds
$ 2,395,802
$ 2,395,802
$ 2,395,802
$ 2,395,802
The Notes to Basic Financial Statements
are an integral part of this statement. 26
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
General Statement
The City of Euless (the "City") was incorporated on February 24, 1953. The City operates
under a Council -Manager form of government and provides the following services as
authorized by its charter: general government, police and fire protection, emergency
ambulance service, road and traffic signal maintenance, water and sewer operations,
drainage system, parks and recreational facilities, courts, library services, planning land
use, building inspection, and traffic control.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally
accepted in the United States of America applicable to state and local governments.
Generally accepted accounting principles for local governments include those principles
prescribed by the Governmental Accounting Standards Board (GASB), the American
Institute of Certified Public Accountants in the publication entitled Audits of State and Local
Governmental Units and by the Financial Accounting Standards Board (when applicable).
As allowed in Section P80 of GASB's Codification of Governmental Accounting and
Financial Reporting Standards, the City has elected not to apply Financial Accounting
Standards Board Statements and Interpretations, Accounting Principles Board Opinions,
and Accounting Research Bulletins of the Committee of Accounting Procedure issued after
November 30, 1989. The more significant accounting policies of the City are described
below.
Financial Reporting Entity
As required by accounting principles generally accepted in the United States of America
the financial statements of the City include the primary government and organizations for
which the primary government is financially accountable and other organizations for which
the nature and significance of their relationship with the primary government are such that
exclusion would cause the reporting entity's financial statements to be misleading or
incomplete.
The definition of the reporting entity is based primarily on the notion of financial
accountability. A primary government is financially accountable for the organizations that
make up its legal entity. It is also financially accountable for legally separate organizations
if its officials appoint a voting majority of an organization's governing body and either it is
able to impose its will on that organization or there is a potential for the organization to
provide specific financial benefits to, or to impose specific financial burdens on, the primary
government. A primary government may also be financially accountable for governmental
organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can
significantly influence the programs, projects, or activities of, or the level of services
performed or provided by, the organization. A financial benefit or burden relationship exists
if the primary government (a) is entitled to the organization's resources; (b) is legally
obligated or has otherwise assumed the obligation to finance the deficits of, or provide
financial support to, the organization; or (c) is obligated in some manner for the debt of the
organization.
27
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Financial Reporting Entity - continued
Some organizations are included as component units because of their fiscal dependency
on the primary government. An organization is fiscally dependent on the primary
government if it is unable to adopt its budget, levy taxes, set rates or charges, or issue
bonded debt without approval by the primary government.
The following entities were found to be component units of the City and are included in the
combined financial statements:
Euless Development Corporation - The City created the Corporation for the purpose of
promoting parks, library services, and economic development within the City. The
Corporation's governing body is substantially the same as the governing body of the
City. There are seven directors, four of whom are members of the City Council and
make up a voting majority of the City Council. The remaining three members are
residents of the City. All Board members are appointed by the City Council. The
Corporation is authorized to sell bonds or other forms of indebtedness. Upon
dissolution of the Corporation, the assets of the Corporation shall be distributed to the
City. The Corporation provides all of its services to the City.
A blended presentation has been used to report the financial information of this
component unit. The financial statements for the Corporation were obtained from the
Board of Directors. The financial information for the Corporation is available from the
City.
Crime Control District - The City created the District for the purpose of proactively
combating rising crime rates by setting up additional crime prevention and rehabilitation
programs within the City. The District's governing body is substantially the same as the
governing body of the City. There are seven directors, four of whom are members of
the City Council and make up a voting majority of the City Council. The remaining
three members are residents of the City. All Board members are appointed by the City
Council. The District is authorized to sell bonds or other forms of indebtedness. Upon
dissolution of the District, the assets of the District shall be distributed to the City. The
District provides all of its services to the City.
A blended presentation has been used to report the financial information of this
component unit. The financial statements for the District were obtained from the Board
of Directors. The financial information for the District is available from the City.
Basis of Presentation
The government -wide financial statements (the statement of net assets and the statement
of activities) report information on all of the activities of the City, except for fiduciary funds.
The effect of interfund activity, 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 fees and charges for
support.
28
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Basis of Presentation - continued
The statement of activities demonstrates the degree to which the direct expenses of a given
program are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific program. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given program and 2) operating or capital grants and contributions that are
restricted to meeting the operational or capital requirements of a particular program. Taxes
and other items not properly included among program revenues are reported instead as
general revenues.
Fund Financial Statements:
The City segregates transactions related to certain functions or activities in separate
funds in order to aid financial management and to demonstrate legal compliance.
Separate statements are presented for governmental funds, proprietary funds and
fiduciary funds, even though the latter are excluded from the government -wide financial
statements. These statements present each major fund as a separate column on the
fund financial statements; all non -major funds are aggregated and presented in a single
column.
Governmental funds are those funds through which most governmental functions
typically are financed. The measurement focus of governmental funds is on the
sources, uses and balances of current financial resources. The City has presented the
following major governmental funds:
General Fund -
The General Fund is the main operating fund of the City. This fund is used to account
for all financial resources not accounted for in other funds. All general tax revenues
and other receipts that are not restricted by law or contractual agreement to some other
fund are accounted for in this fund. General operating expenditures, fixed charges and
capital improvement costs that are not paid through other funds are paid from the
General Fund.
Streets Capital Improvements Capital Project Fund -
The Streets Capital Improvements Fund is used to account for the construction of
improvements to various streets and drainage projects.
Car Rental Tax Fund -
The Car Rental Tax Fund is used to account for revenues and expenditures received
from collection of short-term motor vehicle rental taxes. Revenues are used primarily
for debt reduction, one time capital projects and to maintain the property tax rate.
Proprietary Funds are accounted for using the economic resources measurement focus
and the accrual basis of accounting. The accounting objectives are determinations of net
income, financial position and cash flow. All assets and liabilities are included on the
Statement of Net Assets. The City has presented the following major proprietary funds:
29
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Basis of Presentation - continued
Water and Sewer Fund —
Water and Sewer Fund is used to account for the acquisition, operation and
maintenance of a municipal water and sewer utility, supported primarily by user
charges to the public.
Drainage Utility Fund -
Drainage Utility Fund is used to account for the acquisition, operation and maintenance
of a municipal drainage utility, supported primarily by user charges.
Golf Course Fund -
Golf Course Fund is used to account for operation and maintenance of the City's golf
course, supported primarily by user charges.
Additionally, the City reports the Internal Service Funds which are used to account for
equipment replacement, self funded property and casualty self insurance, self funded
health and disability insurance provided to departments of the City.
Proprietary funds distinguish operating revenues and expenses from non -operating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund's principal ongoing operations.
Operating expenses for the proprietary funds include the cost of personnel and contractual
services, supplies and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non -operating revenues and expenses.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurement made,
regardless of the measurement focus applied.
The government -wide statements and fund financial statements for proprietary funds are
reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets and liabilities
(whether current or non -current) are included on the statement of net assets and the
operating statements present increases (revenues) and decreases (expenses) in net total
assets. Under the accrual basis of accounting, revenues are recognized when earned,
including unbilled water and sewer services which are accrued. Expenses are recognized
at the time the liability is incurred.
Governmental fund financial statements are reported using the current financial resources
measurement focus and are accounted for using the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when susceptible
to accrual; i.e., when they 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
30
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Measurement Focus and Basis of Accounting - continued
period. The City considers property taxes as available if they are collected within 60 days
after year end. A one-year availability period is used for recognition of all other
governmental fund revenues. Expenditures are recorded when the related fund liability is
incurred. However, debt service expenditures, as well as expenditures related to
compensated absences are recorded only when payment is due.
The revenues susceptible to accrual are property taxes, franchise fees, licenses, charges
for service, interest income and intergovernmental revenues. Sales taxes collected and
held by the state at year end on behalf of the government are also recognized as revenue.
All other governmental fund revenues are recognized when received.
Deposits and Investments
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash and 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
(including cash equivalents reported as restricted assets of $465,791 at September 30,
2004) to be cash equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or less
when purchased are reported at amortized cost. Nonparticipating contracts are reported at
cost. All other investments are reported at fair value.
State statutes authorize the City to invest in obligations of the U.S. Government or its
agencies; obligations of the State of Texas or its agencies; and certain other obligations,
repurchase agreements, money market mutual funds and certificates of deposits within
established criterion.
Taxes
Property taxes are levied for appropriation for the fiscal year beginning on October 1, are
due October 1, attach as an enforceable lien on property as of January 1, and become
delinquent on February 1. Property taxes are accrued based on the period for which they
are levied and available. Delinquent taxes estimated not to be available are treated as
deferred revenue. Property taxes for cities, including those applicable to debt service, are
limited by the Texas Constitution to $2.50 per $100 of assessed valuation. The City's
current tax rate is $.495 per $100 of assessed valuation ($.495 per $100 last year) and
assessed valuation is approximately 100% of estimated value.
31
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Inventories
Inventories, which are recognized as expenditures/expenses as they are consumed, are
stated at cost (first -in, first -out method) for the General Fund and Enterprise Funds.
Inventories consist primarily of expendable supplies for the General Fund and pro shop
merchandise for the Enterprise Funds.
Prepaid Items
Prepaid balances are for payments made by the City in the current year to provide services
occurring in the subsequent fiscal year.
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, expenditures or
expenses. Transactions that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are properly applicable to another fund,
are recorded as expenditures/ expenses in the reimbursing fund and as a reduction of
expenditures/expenses in the fund reimbursed. All other interfund transactions are
recorded as transfers.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are
reported in the applicable governmental or business -type activities columns in the
government -wide financial statements and in the fund financial statements for proprietary
funds. All capital assets are valued at historical cost or estimated historical cost if actual
historical cost is not available. Donated assets are valued at fair market value on the date
donated. Repairs and maintenance are recorded as expenses. Renewals and betterments
are capitalized. Interest has not been capitalized during the construction period on
property, plant and equipment.
Assets capitalized, not including infrastructure assets, 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 40 Years
Water and Sewer System 33 1/3 Years
Storm Drainage System 40 Years
Infrastructure 7-40 Years
Machinery and Equipment 5-15 Years
Improvements 25 Years
32
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation. The City's
policy is to pay the employee accumulated vacation upon termination. The City does not
pay employees for accumulated sick leave upon termination. All vacation pay is accrued in
the government -wide, proprietary, and fiduciary fund financial statements and reported as
accrued salaries and wages (a current liability).
The estimated vacation liability expected to be satisfied with available financial resources is
included in accrued salaries and wages in the General Fund.
Nature and Purpose of Reservations and Designations of Fund Equity
The City classifies fund balances as follows:
1. Reserves — used to denote that portion of fund equity, which is not appropriable for
expenditures or is legally segregated for specific future use.
a. Reserved for debt service represents that portion of fund equity legally restricted
to retirement of General Obligation bond principal and interest.
b. Reserved for computer represents funds collected from a Court technology fee
that must be used to upgrade Court systems.
c. Reserved for development agreements represents funds received from
developers that must be used for certain capital projects.
d. Reserved for betterment represents funds donated by citizens that must be
used for the betterment of the community.
e. Reserved for library represents fees collected from the rental of library rooms
that must be used for the maintenance of these areas.
f. Reserved for injured animals represents donations from citizens that must be
used for the treatment of animals picked up by the animal shelter.
g. Reserved for historical preservation represents donations that must be used
towards the preservation of Euless historical sites.
h. Reserved for 9-1-1 emergency represents funding received from the county that
must be used to upgrade emergency systems.
i. Reserved for technology represents contributions which must be used to
upgrade the city communications systems.
Reserved for campus remodel amounts reserved for future capital expenditures
relating to drainage maintenance at the library.
2. Designations — used to denote that portion of fund equity, which is council
established for future use.
a. Designated for emergency represents amounts restricted by council for use in
extreme emergencies. Expenditures must be council approved.
b. Designated for contingency represents amounts restricted by council for use
when extraordinary contingencies arise that have not been budgeted.
Expenditures must be council approved.
3. Unreserved, undesignated — used to denote that portion of fund equity, which is
available for appropriation.
33
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in
capital assets, net of related debt consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowing used for the
acquisition, construction or improvements of those assets, and adding back unspent
proceeds. Net assets are reported as restricted when there are limitations imposed on
their use either through the enabling legislations adopted by the City or through external
restrictions imposed by creditors, grantors or laws or regulations of other governments.
NOTE 2. DEPOSITS AND INVESTMENTS
At September 30, 2004, the bank balances were $325,860 and the ledger balances of the
City's book cash deposits were $38,036. Of the bank balances, $325,860 were protected by
federal depository insurance or by collateral held by the City's agent in the City's name.
At September 30, 2004, the City's investments are categorized as either (1) insured or
registered or for which the securities are held by the City or its agent in the City's name; (2)
uninsured and unregistered with securities held by the pledging financial institution's trust
department or agent in the City's name; or (3) uninsured and unregistered with securities
held by the financial institution, or by its trust department or agent but not in the City's name,
as follows:
1
U. S. Securities
Investments not subject
to categorization:
LOGIC
Texpool
FGIC
Categories
2
$32,506,199 $
3
Carrying
Amount
$32,506,199
59
17,159,808
5,421, 807
$ 5, 087,h
Fair
Value
$32,396,886
59
17,159,808
5.421.807
154,978.56.0
Investments in local government investment pools are administered by the State of Texas and
the fair value of the position in the pool is approximately the same as the value of the pool
shares. Regulatory oversight is provided by the State of Texas.
34
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2004, was as follows:
Governmental activities:
Capital assets not being
depreciated:
Land
Construction in progress
Total capital assets not
being depreciated
Capital assets being
depreciated:
Buildings
Improvements
other than buildings
Infrastructure
Machinery and equipment
Total capital assets being
depreciated
Less accumulated depreciation:
Buildings
Improvements
other than buildings
Infrastructure
Machinery and equipment
Total accumulated
depreciation
Total capital assets being
depreciated, net
Total governmental funds
capital assets, net
Internal Service Funds:
Capital assets being
depreciated:
Balance
September 30,
2003
$ 20,658,667
11.561.168
Increases
Adjustments/
Decreases Transfers
Balance
September 30,
2004
$ 828,396 $ $ - $ 21,487,063
2,742.835 ( 7.042,962) 7,261,041
32.219.835 3.571.231 - f 7,042,962,) 28.748.104
34,023,771
3,367,705
33,069,204
4.707.096
75.167.776
422,808 8,600 1,106,630 35,544,609
152,255 - 3,519,960
2,048,855 - 5,936,332 41,054,391
174,759 39.348 4.842.507
2.798.677 47.948 7,042.962 84.961.467
5,076,557 $ 999,702 $ 8,600 $ - $ 6,067,659
1,402,807 137,890 1,540,697
14,923,521 1,289,286 - 16,212,807
2,558.552 593.843 39.348 - 3,113,047
23.961,437 3.020.721 47,948 26,934.210
51.206.339, ( 222.0441 7,042,962 58,027.257
83.426.174 3.349,187 - 86.775.361
Machinery and equipment S 5.282.598 $ 369.609 $ 350,254 $
Total internal service
assets being
depreciated 369,609 350,254
Less accumulated depreciation:
Machinery and equipment 574.805 275.762
Total internal service funds
capital assets, net $ 2.318,672 ($ 205,196) $ 74.492 $
Governmental activities:
capital assets, net £ 85Z44.846 ww 3943.a91 S 24.492 $
5,282,598
2,963.926
Business -type activities:
Capital assets not being
depreciated:
Land $ 2,776,602
Construction in progress 1.271.159
Total capital assets not
being depreciated
$ - $
1.334,338
$ 5.301.953
5,301,953
3.262.969
$ 2.038.984
S _ 8.814.345
$ - $ 2,776,602
25.675) 2.579, 822
4.047.761 1,334.338 [ 25,675) 5,356,424
35
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS - continued
Capital assets being
depreciated:
Buildings
Equipment
Improvements
Sanitary sewer system
Total capital assets
being depreciated
Accumulated depreciation:
Buildings
Equipment
Sanitary sewer system
Improvements
Total accumulated
depreciation
Total capital assets being
Depreciated, net
Balance
September 30,
2003 Increases Decreases
4,077,523
2,309,219
33,489,852
41.962.503
81.839.097
751,569
1,344,317
18,754,816
7.374.644
28.225.346
53.613.751
Business -type activities
capital assets, net 1-5Z.651.512
214,811
1,904,861
2,049.738
4.169.410
123,655
363,804
1,145,976
972.108
2.605.543
1.563.867
S__...._2.$9fl.205
41,650
244,332
285.982
39,725
39.725
246.257
.5, .._ 246L25Z
Adjustments/
Transfers
Balance
September 30,
2004
4,077,523
2,482,380
25,675 35,176,056
44.012.241
25.675 85.748.200
875,224
1,668,396
19,900,792
8.346.752
30.791.164
25.675 54.957.036
L_-_60.31.1460
Depredation expense was charged as direct expense to programs of the primary government
as follows:
Governmental activities:
General and administrative $ 338,756
Public safety 1,071,376
Development services 20,249
Culture and recreation 695,815
Highways and streets 1,392.914
Total depreciation expense -Governmental activities 13,519.11D
Business -type activities:
Water and sewer $ 1,316,471
Drainage Utility 509,264
Golf course 580,266
Other 275.958
Total depreciation expense -Business -type activities $2..681.959
Outstanding commitments at September 30, 2004, under authorized construction contracts
were approximately $2,786,361. These outstanding commitments are to be financed by
available deposit and investment balances, which include proceeds from previous bond
issuances.
36
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT
At September 30, 2004, bonds payable consisted of the following individual issues:
Governmental Business -type
$2,200,000 Series 1967, Water and Sewer Revenue
Refunding Bonds, dated January 15, 1967, due in
annual installments through 2005, bearing an interest
rate of 4.50%. $ - $ 125,000
$5,200,000 Series 1995, Revenue Certificates of
Obligation, dated October 24, 1995, due in annual
installments through 2005, bearing interest rates of
5.20% to 5.85%.
$9,700,000 Series 1995, Tax and Golf Surplus
Revenue Certificates of Obligation, dated October
24,1995, partially refunded in 2004, due in annual
installments through 2006 (2027 prior to refunding),
bearing interest rates of 5.25%.
$2,000,000 Series 1996, Tax and Softball Surplus
Certificates of Obligation, dated October 24, 1995,
partially refunded in 2004, due in annual installments
through 2005 (2016 prior to refunding), bearing interest
rates of 4.40%.
230,000
$1,485,000 Series 1996, Sales Tax Revenue Bonds,
dated August 15, 1996, due in annual installments
through 2016, bearing interest rates of 5.00% to 8,00%. 1,065,000
$5,500,000 Series 1998, Revenue Certificates of
Obligation, dated February 15, 1998, due in annual
installments through 2018, bearing interest rates of
4.25% to 7.25%. 4,550,000
$1,000,000 Series 1999, Sales Tax Revenue Bonds,
dated October 15, 1999, due in annual installments
through 2019, bearing interest rates of 5.25% to T00%. 850,000
$4,300,000 Series 2000, General Obligation Bonds,
dated March 15, 2000, due in annual installments
through 2020, bearing interest rates of 5.15% to 6.65%. 3,905,000
$10,290,000 Taxable Series 2000, Revenue
Certificates of Obligation, dated April 1, 2000, due in
annual installments through 2025, bearing interest rates
of 8.00% to 8.125%. 9,700,000
$8,600,000 Series 2000A, Revenue Certificates of
Obligation, dated May 1, 2000, due in annual
installments through 2020, bearing interest rates of
5.80% to 7.30%.
7,720,000
410,000
90,000
37
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT - continued
$3,260,000 Series 2000, Water and Sewer Revenue
Bonds, dated March 15, 2000, due in annual
installments through 2020, bearing interest rates of
5.25% to 6.75%.
$6,000,000 Series 2001, General Obligation Bonds,
dated April 1, 2001, due in annual installments through
2021, bearing interest rates of 4.50% to 6.50%.
$1,630,000 Series 2001, Drainage Utility System
Revenue Refunding Bonds, dated October 15, 2001,
due in annual installments through 2010, bearing
interest rates of 3.00% to 4.00%.
$5,455,000 Series 2001, Revenue Certificates of
Obligation, dated April 1, 2001, due in annual
installments through 2021, bearing interest rates of
4.50% to 6.50%.
$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%.
$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%.
$11,095,000 Series 2004, General Obligation
Refunding Bonds, dated February 15, 2004, due in
annual installments through 2027, bearing interest rates
of 2.00% to 4.50%.
$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%.
$4,380,000 Series 2004, General Obligation Bonds,
dated June 15, 2004, due in annual installments
through 2024, bearing interest rates of 3.50% to 5.25%.
$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%.
Governmental Business -type
5,545,000
5,035,000
6,395,000
4,875,000
3,200,000
4,380,000
$57,450,000
2,950,000
1,135,000
11,095,000
2.145.000
$17,950,000
38
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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, 2004:
Governmental Type Activities
General Obligation Bonds
Certificates of Obligation
Sales Tax Revenue Bonds
Deferred loss on refunding
bonds
Compensated absences
Accreted interest
Total governmental type
activities
Business Tvoe Activities
Water and Sewer Revenue
Bonds
Drainage Utility Revenue Bonds
Tax and Golf Course
Surplus Revenue
Certificates of Obligation
General Obligation Refunding
Bonds
Tax and Softball World Park
Surplus Revenue
Certificates of Obligation
Deferred loss on refunding
bonds
Balance
Beginning
of Year
$15,381,815
28,295,000
8,860,000
( 235,934)
1,068,946
418.993
$ 53,7$$,$24
$ 3,300,000
1,300,000
9,095,000
1,565,000
Total business type activities 15,260000
Total government -wide activities I89.448,824
Increases Decreases
$ 3,200,000 $ 1,056,815
4,380,000 1,060,000
550,000
- ( 19,065)
924,512 863,301
418,993
$ 8.504 51_2 L3.930.444
$ 2,145,000 $ 225,000
11,095,000
165,000
8,685,000
1,475,000
Balance Due
End Within
of Year One Year
$17,525,000 $ 780,000
31,615,000 1,235,000
8,310,000 585,000
( 216,869) ( 19,065)
1,130,157 79,111
$_58,.383,288 $ 2.660.046
$ 5,220,000 $ 305,000
1,135,000 170,000
410,000 200,000
11,095,000 -
90,000 90,000
f 963.3281 ( 43.145) ( 920.183)
12 276,s672 10.506.855 17.029.817
$2Q.781.184 $ 14.436.899 $15 3911Q5
765.000
$3.425,44.8
On February 15, 2004, the City issued $11,095,000 in General Obligation Refunding Bonds
with an average interest rate of 3.50 percent to advance refund $8,495,000 of outstanding
1995 Series bonds with an average interest rate of 5.75 percent and $1,390,000 of
outstanding 1996 Series bonds with an average interest rate of 5.00 percent. The net
proceeds of $10,796,779 ($11,095,000 par amount of bonds plus Enterprise Fund
contribution of $44,656 plus $5,028 of premium paid on bonds less $347,905 of underwriting
fees, insurance and other issuance costs) were used to purchase U.S. Securities. Those
securities were deposited in an irrevocable trust with an escrow agent to provide for all future
debt service payments on the 1995 and 1996 Series bonds. As a result, the 1995 and 1996
Series bonds are considered defeased and the liability for those bonds has been removed
from long-term debt.
The advance refunding resulted in a difference between the reacquisition price and the net
carrying amount of the old debt of $963,328. This difference, reported in the accompanying
financial statements as a deduction from bonds payable, is being charged to operations
through the year 2024 using the effective -interest method. The City completed the advance
39
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT - continued
refunding to reduce its total debt service payments over the next 23 years by $995,134 and
to obtain an economic gain (difference between the present values of the old and new debt
service payments) of $841,675.
The City issued $3,200,000 in General Obligation Bonds and $4,380,000 in Revenue
Certificates of Obligation to fund street improvements. The City also issued $2,145,000 in
Water & Sewer Revenue Bonds to improve and equip property, structures, facilities and
related infrastructure for the System.
In prior years, the City issued $5,490,000 in General Obligation Refunding Bonds to defease
$1,560,000 in General Obligation Bonds then outstanding and $3,625,000 in Certificates of
Obligation then outstanding. Of the $1,560,000 of and $3,625,000 of certificates originally
defeased, $1,015,000 and $3,625,000 remains outstanding at September 30, 2004.
In prior years, the City issued $6,480,000 in Sales Tax Revenue Refunding Bonds to defease
$6,020,000 in Sales Tax Revenue Bonds then outstanding. Of the $6,020,000 of bonds
originally defeased, $6,020,000 remains outstanding at September 30, 2004.
Annual Requirements to Retire Debt Obligations
The annual aggregate maturities for each bond type for the years subsequent to
September 30, 2004, are as follows:
General Obligation Bonds:
Governmental Activities Business Tvoe Activities
Principal Interest Principal, Interest Total
2005 $ 780,000 $ 816,431 $ - $ 401,907 $1,998,338
2006 1,075,000 751,544 90,000 401,007 2,317,551
2007 1,130,000 704,243 445,000 395,657 2,674,900
2008 1,015,000 659,910 455,000 386,657 2,516,567
2009 895,000 623,125 465,000 376,876 2,360,001
2010-2014 5,100,000 2,510,505 2,545,000 1,684,159 11,839,664
2015-2019 5,130,000 1,288,401 2,505,000 1,234,441 10,157,842
2020-2024 2,400,000 225,422 2,675,000 732,126 6,032,548
2025-2027 - 1.915.000 131.963 2.046.963
$17 525.000 .$ 7.579,581 $LL095.000 $5,744 7. $41.,944.374
40
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT - continued
Annual Requirements to Retire Debt Obligations — continued
Certificates of Obligation:
Governmental Activities
2005
2006
2007
2008
2009
2010-2014
2015-2019
2020-2024
2025
Principal
$ 1,235,000
1,105,000
1,175,000
1,245,000
1,325,000
7,885,000
10,060,000
6,680,000
905,000
$31..615.000
Revenue Bonds:
Interest
$ 1,950,001
1,846,212
1,777,125
1,703,174
1,631,900
6,945,285
4,352,431
1,576,881
73.526
$2 8 6 535
Governmental Activities
Principal Interest
2005 $ 585,000 $ 357,971
2006 605,000 337,656
2007 620,000 315,128
2008 650,000 290,768
2009 675,000 264,480
2010-2014 3,870,000 859,551
2015-2019 1,305,000 117,053
2020-2024
Business Type Activities
Principal
$ 290,000
210,000
$90.,000
Business Type
Principal
$ 475,000
375,000
390,000
410,000
430,000
1,535,000
1,730,000
1.010.000
$8.310.090 S2.542.607 $6.355_,0_00
Interest
$23,505
11,025
$ 34.530
Activities
Total
$ 3,498,506
3,172,237
2,952,125
2,948,174
2,956,900
14,830,285
14,412,431
8,256,881
978.526
$5_4,00F,065
Interest Total
$ 316,829 $1,734,800
287,211 1,604,867
270,636 1,595,764
253,736 1,604,504
236,556 1,606,036
936,302 7,200,853
552,223 3,704,276
129.349 1.139.349
$2.R82.842 a20.190.449
Water and Sewer Revenue Bonds authorized and unissued as of September 30, 2004,
amounted to $1,200,000. The water and sewer bonds were authorized in 1970, and currently
the City Council has no intent to issue these bonds.
Water and Sewer Revenue Bonds and Refunding Bonds and Drainage Utility Revenue
Bonds are payable solely from and equally secured by a first lien on and pledge of the net
revenue of the City's combined waterworks and sanitary sewer system and the net revenues
of the City's drainage utility system, respectively.
In accordance with the water and sewer revenue and refunding bond ordinances, the
following special 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.
41
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT - continued
Annual Requirements to Retire Debt Obligations — continued
Should the reserve for bond debt service and/or reserve for bond retirement 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, 2004. The
amounts reserved are reported as restricted assets of the Enterprise Funds.
Investments of funds included in the bond reserve and emergency accounts are restricted to
obligations of the United States or its agencies and instrumentalities (except for mortgage
pass -through securities).
The liability for compensated absences has typically been liquidated by the General Fund.
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 (the "TRA") whereby the TRA agrees to provide supplemental water and
sewage treatment for consideration. Payments by the City are based on metered usage at
rates designed to charge the City a prorata share of the TRA's annual operating and
maintenance expenses, principal and interest requirement on bonds issued by the TRA.
Payments under this contract approximated $4,942,000 and are included as operating
expenses of the water and sewer fund.
The City is involved in a number of lawsuits arising in the ordinary course of business. In
the opinion of the City's legal counsel and management, any liability resulting from such
litigation would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The Water and Sewer Enterprise Fund historically bears the major portion of the operating
costs of the City's service center, which provides services to all City departments.
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the operations
of those funds.
Due to/from other funds:
Receivable Fund
Water and Sewer Fund
Car Rental Fund
Softball Complex Fund
Car Rental Fund
Payable Fund Amount
Golf Course Fund $ 232,565
Golf Course Fund 1,534,475
Athletic Complex Fund 296,000
Half -Penny Sales Tax Fund 37,711
42
$2.100.751
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 7. INTERFUND TRANSFERS — continued
Due to/from other funds: — continued
Due to/from's are primarily used as interfund loans for the following:
• Golf Course to Water and Sewer for capital improvements.
• Golf Course to Car Rental for capital improvements and equipment purchases.
• Athletic Complex to Softball Complex for reimbursement of bond payments.
• Half -penny Sales Tax to Car Rental for equipment purchases on behalf of the Golf
Course.
The balances at September 30, 2004 will be paid during the next fiscal year end.
interfund transfers:
Transfers In
General Fund
General Fund
General Fund
Debt Service Fund
Car Rental Tax Fund
Car Rental Tax Fund
Police Department Grant Funds
Police Department Grant Funds
Half -Penny Sales Tax CIP Fund
Car Rental CIP Fund
Golf Course Fund
Golf Course Fund
Softball Complex Fund
Athletic Complex Fund
Water and Sewer Fund
Equipment Replacement Fund
Insurance Fund
Car Rental CIP Fund
Insurance Fund
Risk Management Fund
Risk Management Fund
Transfers Out
Car Rental Tax Fund
Water and Sewer Fund
Drainage Utility Fund
Car Rental Tax Fund
Half -Penny Sales Tax Fund
Golf Course Fund
General Fund
Police Drug Enforcement Fund
Half -Penny Sales Tax Fund
Car Rental Tax Fund
General Fund
Hotel/Motel Tax Fund
Athletic Complex Fund
Car Rental Tax Fund
Golf Course Fund
Car Rental Tax Fund
General Fund
Half -Penny Sales Tax Fund
Car Rental Tax Fund
General Fund
Water and Sewer Fund
Transfers are primarily used to move funds from:
Amount
$ 730,020
661,585
32,483
204,958
1,075
30,689
22,096
1,892
150,000
2,100,488
18,921
165,002
11,527
200,000
4,651
327,700
400,000
50,000
1,400,000
210,000
180.000
$0,9_01087
• The Car Rental Tax Fund, the Water and Sewer Fund and the Drainage Utility Fund to the
General Fund for general and administrative charges.
• The Car Rental Tax Fund to the Debt Service Fund for principal and interest on 2001
bonds.
• The Half -Penny Sales Tax Fund to the Car Rental Tax Fund for interest on interfund loan.
43
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 7. INTERFUND TRANSFERS - continued
• The Half -Penny Sales Tax Fund and the Car Rental Tax Fund to the Car Rental Tax Fund,
the Car Rental CIP Fund, and the Athletic Complex Fund for capital improvements.
• The Golf Course Fund to the Car Rental Tax Fund and the Softball Complex Fund for
interest on interfund loans.
• The General Fund to the Police Department Grant Funds for matching grant funds.
• The Half -Penny Sales Tax Fund to the Half -Penny Sales Tax CIP Fund for incentive
programs.
• The General Fund to the Golf Course Fund for rebate of sales tax contributions.
• The Hotel/Motel Tax Fund to the Golf Course Fund for debt on the conference centre and
subsidizing monthly expenses at the conference centre.
• The Athletic Complex Fund to the Softball Complex Fund for interest on interfund loan.
• The Golf Course Fund to the Water and Sewer Fund for interest on interfund loan.
• The Car Rental Tax Fund to the Equipment Replacement Fund for large equipment
purchases.
• The General Fund to the Insurance Fund to cover unusually large claims.
• The Car Rental Tax Fund to the Insurance fund to cover unusually large claims and fund
reserve.
• The General Fund to the Risk Management Fund for property and liability insurance and
to increase reserve levels.
• The Water and Sewer Fund to the Risk Management Fund for property and liability
insurance.
• The Car Rental CIP Fund to Half -Penny Sales Tax Fund for artwork at City Hall.
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.
The City provides employee medical 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 and are available to pay claims, claim reserves and administrative costs of the
program. An excess coverage insurance policy covers individual claims in excess of
$150,000 and aggregate claims in excess of $2,727,756. During fiscal 2004, the City and
City's employees contributed approximately $1,365,000 and $590,000, 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 Internal Service
Insurance Fund.
The City is also self -insured for workers' compensation claims. Contributions are made to a
separate Risk Management Fund by other funds and are available to pay claims, claim
44
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 8. RISK MANAGEMENT — continued
reserves and administrative costs of the program. An excess coverage insurance policy
covers individual claims in excess of $300,000. During 2004, the City contributed
approximately $225,000 to the fund for workers' compensation.
Changes in the balances of claims liabilities are as follows:
Unpaid claims, beginning of year
Incurred claims
Paid claims
Unpaid claims, end of year
2004
$ 265,727
2,660,403
2.721,712
$ 204.418
2003
$ 107,404
1,817,117
2,190,248
265.727
The City had no significant reductions in insurance coverage from the year ended
September 30, 2003. Settlement amounts have not exceeded insurance coverage for the
year ended September 30, 2004 or any of the three preceding years ended September 30.
NOTE 9. EMPLOYEE RETIREMENT SYSTEM
Plan Description
The City provides pension benefits for all of its full-time employees through a
nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas
Municipal Retirement System (TMRS), one of 794 administered by TMRS, an agent
multiple -employer public employee retirement system. Each of the 794 Municipalities
have an annual, individual actuarial valuation performed. All assumptions for the
December 31, 2003 valuations are contained in the 2003 TMRS Comprehensive Annual
Financial Report, a copy of which may be obtained by writing to P. O. Box 149153,
Austin, Texas 78714-9153.
Benefits depend upon the sum of the employee's contributions to the plan, with interest,
and City -financed monetary credits, with interest. At the date the plan began, the City
granted monetary credits for service rendered before the plan began of a theoretical
amount equal to two times what would have been contributed by the employee with
interest, prior to establishment of the plan. Monetary credits for service since the plan
began are a percent (100%, 150%, or 200%) of the employee's accumulated
contributions. In addition, the City can grant, as often as annually, another type of
monetary credit referred to as an updated service credit which is a theoretical amount
which, when added to the employee's accumulated contributions and the monetary
credits for service since the plan began, would be the total monetary credits and
employee contributions accumulated with interest if the current employee contribution
rate and the City matching percent had always been in existence and if the employee's
salary had always been the average of his salary in the last three years that are one
year before the effective date. At retirement, the benefit is calculated as if the sum of the
employee's accumulated contributions with interest and the employer -financed monetary
credits with interest were used to purchase an annuity.
45
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. EMPLOYEE RETIREMENT SYSTEM - continued
Plan Description — continued
The plan provisions are adopted by the governing body of the City, within the options
available in the state statutes governing TMRS and within the actuarial constraints also
in the statutes. Plan provisions for the City were as follows:
Deposit Rate: 7%
Matching Ratio (City to Employee): 2-1
A member is vested after 5 yrs
Members can retire at certain ages, based on the years of service with the City. The
Service Retirement Eligibilities for the city are: 5 yrs/age 60, 20 yrs/any age
Contributions
Under the state law governing TMRS, the actuary annually determines the City
contribution rate. This rate consists of the normal cost contribution rate and the prior
service contribution rate, both of which are calculated to be a level percent of payroll from
year to year. The normal cost contribution rate finances the currently accruing monetary
credits due to the City matching percent, which are the obligation of the City as of an
employee's retirement date, not at the time the employee's contributions are made. The
normal cost contribution rate is the actuarially determined percent of payroll necessary to
satisfy the obligation of the City to the unfunded (overfunded) actuarial liability (asset) over
the remainder of the plan's 25-year amortization period. The unit credit actuarial cost
method is used for determining the City contribution rate. Both the employees and the
City make contributions monthly. Since the City needs to know its contribution rate in
advance for budgetary purposes, there is a one-year delay between the actuarial valuation
that is the basis for the rate and the calendar year when the rate goes into effect. (Le.
December 31, 2003 valuation is effective for rates beginning January 2005)
Schedule of Actuarial Liabilities and Funding Progress
Actuarial Valuation Date 12/31/2003
Actuarial Value of Assets $50,659,933
Actuarial Accrued Liability $63,214,918
Percentage Funded 80.1
Unfunded Actuarial Accrued Liability (UAAL) $12,554,985
Annual Covered Payroll $17,207,460
UAAL as a Percentage of Covered Payroll 73.0%
Net Pension Obligation (NPO) at the Beginning of Period $
46
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. EMPLOYEE RETIREMENT SYSTEM - continued
Schedule of Actuarial Liabilities and Funding Progress — continued
Annual Pension Cost:
Annual Required Contribution (ARC)
Interest on NPO
Adjustment to the ARC
Total annual pension cost
Contributions Made
Increase in NPO
NPO at the end of the period
Trend information for the past three years for TMRS is as follows:
Yea r
2001
2002
2003
Annual
Pension Cost
(APC)
$ 2,125,493
2,240,904
2,311,438
The following actuarial assumptions were used:
Actuarial Cost Method
Amortization Method
Remaining Amortization
Asset Valuation Method
Investment Rate of Return
Projected Salary Increases
Includes Inflation at
Cost of Living Adjustments
Percentage
of APC
Contributed
100%
100
100
NOTE 10. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
$ 2,311,438
$ 2,311,438
( 2,311,438)
Net Pension
Obligation
Unit Credit
Level Percent of Payroll
25 years — Open Period
Amortized Cost
7%
None
None
None
As of September 30, 2004, the following individual funds had an excess of expenditures
over appropriations:
Police Drug Enforcement Fund
DEA Task Force Fund
Police Department Grant Funds
($17,885)
( 51,820)
( 33,532)
47
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN TEXAS
MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2004
Unfunded Unfunded Actuarial
Actuarial Actuarial Actuarial Actuarial Annual Accrued Liability
Valuation Value of Accrued Percentage Accrued Covered as a Percentage
Date Assets Liability Funded Liability Payroll of Covered Payroll
12/31/01 $ 45,049,200 $ 53,684,325 83.91% $ 8,635,125 $ 15,092,260 57.22%
12/31/02 47,212,730 57,449,068 82.18% 10,236,338 16,788,857 60.97%
12/31/03 50,659,933 63,214,918 80.14% 12,554,985 17,207,460 72.96%
48
CITY OF EULESS, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET(GAAP BASIS) AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2004
REVENUES:
General property tax:
Current and delinquent taxes
Penalty and interest
Gross receipts tax:
Southwestern Bell Telephone Company
Texas Utilities Electric Company
Texas Utility Gas Company
Cable TV
City Garbage Service
Water and Sewer system
Others
General sales tax
Fines and fees:
Municipal Court fines
Jail income
Dog licenses and pound fees
Ambulance fees
Library fees
Zoning fees
Deferred adjudication fee
Licenses and permits:
Building permits
Miscellaneous permits
Minimum housing
Interest income
Intergovernmental
Other revenues:
Rental income
Swimming pools
Miscellaneous income
Total revenues
Budgeted Amounts
Original Final
$ 6,310,736 $ 6,310,736
37,314 37,314
6,348,050 6,348,050
510,830 510,830
1,570,024 1,570,024
145,749 145,749
223,490 223,490
130,504 130,504
668,075 668,075
92,510 92,510
3,341,182 3,341,182
5,683,826 5,683,826
2,586,850 2,586,850
250,000 250,000
14,170 14,170
266,318 266,318
36,789 36,789
18,302 18,302
213,622 213,622
3,386,051 3,386,051
299,872
257,593
86,557
644,022
175,000
270,980
102,500
15,000
102,808
220,308
$ 20,069,419
49
299,872
257,593
86,557
644,022
175,000
270,980
102,500
15,000
102,808
220,308
$ 20,069,419
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
$ 6,368,458 $ 57,722
65,931 28,617
6,434,389 86,339
432,092 ( 78,738)
1,482,651 ( 87,373)
269,747 123,998
238,207 14,717
131,643 1,139
661,585 ( 6,490)
92,601 91
3,308,526 ( 32,656)
5,801,515 117,689
2,351,968 ( 234,882)
237,930 ( 12,070)
12,911 ( 1,259)
326,549 60,231
40,955 4,166
17,381 ( 921)
174,419 ( 39,203)
3,162,113 ( 223,938)
799,912 500,040
297,877 40,284
92,270 5,713
1,190,059 546,037
147,204 ( 27,796)
292,265 21,285
116,020 13,520
11,098 ( 3,902)
116,364 13,556
243,482 23,174
$ 20,579,553 $ 510,134
CITY OF EULESS, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES • BUDGET(GAAP BASIS) AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2004
EXPENDITURES:
Current:
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Total expenditures
Excess (deficiency) of
revenues over expenditures
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
2,676,805 2,676,805 2,638,510 38,295
1,067,137 1,067,137 974,771 92,366
5,505,509 5,505,509 5,064,926 440,583
763,398 763,398 766,030 ( 2,632)
12,434,765 12,434,765 12,337,868 96,897
22,447,614 22,447,614 21,782,105 665,509
( 2,378,195) ( 2,378,195) ( 1,202,552) 1,175,643
Other financing sources (uses):
Operating transfers in 1,429,095 1,429,095 1,424,088 ( 5,007)
Operating transfers out ( 425,570) ( 675,570) ( 651,017) 24,553
Total other financing
sources (uses) 1,003,525 753,525 773,071 19,546
Excess (deficiency) of
revenues and other financing sources
over expenditures and other
financing uses ( 1,374,670) ( 1,624,670) ( 429,481) 1,195,189
Fund balance, beginning of year 6,175,597
6,175,597 6,175,597
Fund balance, end of year $ 4,800,927 $ 4,550,927 $ 5,746,116 $ 1,195,189
50
CITY OF EULESS, TEXAS
STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
CAR RENTAL TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2004
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues:
Car rental tax $ 9,400,000 $ 9,400,000 $ 10,190,256 $ 790,256
Interest income 200,000 200,000 123,204 ( 76,796)
Total revenues
9,600,000 9,600,000
Expenditures:
General and administrative 6,266,666
Total expenditures 6,266,666
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other
financing sources (uses)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses
10,313,460 713,460
6,266,666 6,774,624 ( 507,958)
6,266,666 6,774,624 ( 507,958)
61,262 61,262 31,764 ( 29,498)
( 3,503,178) ( 5,213,166) ( 4,963,166) 250,000
( 3,441,916) ( 5,151,904) ( 4,931,402) 220,502
( 108,582) ( 1,818,570) ( 1,392,566) 426,004
Fund balance, beginning of year 5,059,623
5,059,623 5,059,623
Fund balance, end of year $ 4,951,041 $ 3,241,053 $ 3,667,057 $ 426,004
51
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED SEPTEMBER 30, 2004
NOTE 1. BUDGET BASIS OF ACCOUNTING
The City Council follows these 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 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.
5. 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 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and
Actual — General Fund presents a comparison of budgetary data to actual results. The
General Fund utilizes the same basis of accounting for both budgetary purposes and
actual results.
52
INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
NON MAJOR GOVERNMENTAL FUNDS
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 Tong -term debt paid primarily
from taxes levied by the City. The fund balance of the Debt Service Fund is reserved to
signify the amounts that are restricted exclusively for debt service expenditures.
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.
DEA Task Force Fund - to account for the City's portion of revenues and expenditures
received from collection of confiscated drug money. Money is distributed to various
other cities that are also involved in the collection process.
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 Funds - to account for grant revenues received by the police and fire
departments which must be spent in accordance with the grant provisions.
53
NON MAJOR GOVERNMENTAL FUNDS — continued
CAPITAL PROJECT FUNDS
Capital project funds are used to account for the acquisition and construction of major
capital facilities other than those financed by proprietary funds and trust funds.
Park Improvements Certificates of Obligation Fund (1990) - to account for the
construction of park facilities. Financing was provided from the sale of Certificates of
Obligation of $2,000,000 in 1990.
Street Assessments Fund - to account for receipt of funds for special assessment
collection and subsequent construction of improvements to various street and drainage
projects.
Half -Penny Sales Tax Construction in Progress Fund - to account for bond proceeds to
be expended for construction projects funded by the Euless Development Corporation, a
component unit of the City of Euless.
Developers' Contribution Fund - to account for funds received for the purpose of making
new and future improvements to various development areas within the City.
Car Rental Capital Projects Fund — to account for building and infrastructure projects
that are funded from the short-term motor vehicle tax.
Police Facility Construction Fund — to account for the construction of a police facility.
General Obligation Capital Projects Fund — to account for various construction projects
within the City.
54
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2004
Special Revenue Funds
Police Crime
Drug Half DEA Control and Public
Debt Hotel/ Enforce- Penny Task Prevention Safety
Service Motel ment Sales Tax Force District Grant
Fund Fund Fund Fund Fund Fund Funds Total
ASSETS
Deposits and investments $ 478,090 $ 81,012 $ 226,852 $ 1,873,964 $ 18,548 $ 380,536 $ 20,077 $ 2,600,989
Accounts receivable 333,649 45,795 2,152 - 18,776 66,723
Accrued interest receivable - - - 7,878 781 - 8,659
Prepaids 425 4,689 5,114
Due from other governments 425,461 194,983 620,444
Total assets
LIABILITIES AND FUND BALANCES
$ 811,739 $ 127,232 $ 229,004 $ 2,311,992 $ 18,548 $ 576,300 $ 38,853 $ 3,301,929
LIABILITIES:
Accounts payable $ - $ 399 $ $ 47,550 $ 17,546 $ 16,480 $ 2,264 $ 84,239
Accrued salaries and wages - 23,706 - 39,106 1,697 64,509
Deferred revenue 330,106 - -
Due to other funds - 37,711 37,711
Total liabilities
Fund Balances:
Reserved;
Reserve for debt service
Reserve for historical
preservation
Reserve for development
agreements
Unreserved, undesignated
Total fund balances
330,106 399 108,967 17,546 55,586 3,961 186,459
481,633
950,618
1,245
950,618
1,245
125,588 229,004 1,252,407 1,002 520,714 34,892 2,163,607
481,633 126,833 229,004 2,203,025 1,002 520,714 34,892 3,115,470
Total liabilities and fund balances $ 811,739 $ 127,232 $ 229,004 $ 2,311,992 $ 18,548 $ 576,300 $ 38,853 $ 3,301,929
55
Capital Projects Funds
Park
Improvements Half -Penny Police G.O.
Certificates of Street Sales Tax Developers' Car Rental Facility Capital Total Nonmajor
Obligation Assessments Construction Contribution Capital Projects Construction Projects Governmental
Fund (1990) Fund in Progress Fund Fund Fund Fund Totals Funds
$ 7,998 $ 44,970 $ 442,135 $ 1,437,998 $ 2,172,389 $ 142,796 $ 42,060 $ 4,290,346 $ 7,369,425
- - - - - 400,372
1,232 5,001 4,647 - 10,880 19,539
5,114
620,444
$ 7,998 $ 44,970 $ 443,367 $ 1,442,999 $ 2,177,036 $ 142,796 $ 42,060 $ 4,301,226 $ 8,414,894
$ $ $ $ $ 70,474 $
70,474
$ 70,474 154,713
64,509
330,106
37,711
70,474 587,039
1,432,251
1,245
- 1,442,999 - 1,442,999 1,442,999
7,998 44,970 443,367 - 2,106,562 142,796 42,060 2,787,753 4,951,360
7,998 44,970 443,367 1,442,999 2,106,562 142,796 42,060 4,230,752 7,827,855
$ 7,998 $ 44,970 $ 443,367 $ 1,442,999 $ 2,177,036 $ 142,796 $ 42,060 $ 4,301,226 $ 8,414,894
56
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2004
Special Revenue Funds
Police Crime
Drug Half DEA Control and Public
Debt Hotel/ Enforce- Penny Task Prevention Safety
Service Motel ment Sales Tax Force District Grant
Fund Fund Fund Fund Fund Fund Funds Totals
Revenues:
General property tax $ 3,862,830 $ - $ $ - $ - $ $ $
Gross receipts tax - 167,259 - - 167,259
General sales tax - 2,320,606 - 1,107,698 3,428,304
Interest income 47,551 994 2,040 18,295 100 5,138 118 26,685
DEA revenues - 77,654 50,687 - 128,341
Other revenues 975,171 38 - 3,822 197,173 201,033
Total revenues 4,885,552 168,291 79,694 2,338,901 50,787 1,116,658 197,291 3,951,622
Expenditures:
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Debt service
Principal
Interest and fiscal charges
Capital outlay
and maintenance
2,116,815
2,922,0 59
36,655
935,404
135,676
35,845
65,785 53,078 1,126,851 226,539
550,000
386,190
935,404
135,676
72,500
1,472,253
550,000
386,190
Total expenditures 5,038,874 36,655 65,785 2,043,115 53,078 1,126,851 226,539 3,552,023
Other financing sources (uses):
Transfers in 204,958 - - - 23,988 23,988
Transfers out - ( 165,002) ( 1,892) ( 201,075) - - ( 367,969)
Total other
financing sources (uses)
Excess (deficiency) of
revenues and other
financing sources
over expenditures and
other financing uses
Fund balance,
beginning of year
204,958 ( 165,002) ( 1,892) ( 201,075) - - 23,988 ( 343,981)
51,636 ( 33,366) 12,017 94,711 ( 2,291) ( 10,193) ( 5,260) 55,618
429,997 160,199 216,987 2,108,314 3,293 530,907 40,152 3,059,852
Fund balance, end of year $ 481,633 $ 126,833 $ 229,004 $ 2,203,025 $ 1,002 $ 520,714 $ 34,892 $ 3,115,470
57
Capital Projects Funds
Park
Improvements Half -Penny Police G.O.
Certificates of Street Sales Tax Developers' Car Rental Facility Capital Total Nonmajor
Obligation Assessments Construction Contribution Capital Projects Construction Projects Governmental
Fund (1990) Fund in Progress Fund Fund Fund Fund Totals Funds
$ $ - $ $ $ $ $ - $ 3,862,830
- 167,259
3,428,304
4,931 20,785 24,817 264 282 51,079 125,315
128,341
14,349 14,349 1,190,553
4,931 35,134 24,817 264 282 65,428 8,902,602
12,112
39,747
1,130,737
4,637
12,112 947,516
39,747 175,423
72,500
4,637 1,476,890
2,666,815
3,308,249
1,130,737 1,130,737
12,112 39,747 1,130,737 4,637 1,187,233 9,778,130
150,000 2,150,488 2,300,488 2,529,434
{ 367,969)
150,000 2,150,488
2,300,488 2,161,465
142,819 ( 4,613) 1,044,568 ( 4,373) 282 1,178,683 1,285,937
7,998 44,970 300,548 1,447,612 1,061,994 147,169 41,778 3,Q52,069 6,541,918
$ 7,998 $ 44,970 $ 443,367 $ 1,442,999 $ 2,106,562 $ 142,796 $ 42,060 $ 4,230,752 $ 7,827,855
58
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, 2004
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues:
Gross receipts tax $ 175,000 $ 175,000 $ 167,259 ($ 7,741)
Other revenues - 38 38
Interest income 3,000 3,000 994 ( 2,006)
Total revenues 178,000 178,000 168,291 ( 9,709)
Expenditures:
General and administrative
Total expenditures
Other financing sources (uses):
Transfers out
Total other
financing sources (uses)
45,000 45,000 36,655 8,345
45,000 45,000 36,655 8,345
( 176,707) ( 176,707) ( 165,002) 11,705
( 176,707) ( 176,707) ( 165,002) 11,705
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses ( 43,707) ( 43,707) ( 33,366) 10,341
Fund balance, beginning of year 160,199 160,199 160,199 -
Fund balance, end of year $ 116,492 $ 116,492 $ 126,833 $ 10,341
59
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, 2004
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues:
DEA revenues $ $ - $ 77,654 $ 77,654
Interest income 5,000 5,000 2,040 ( 2,960)
Total revenues 5,000 5,000 79,694 74,694
Expenditures:
Public safety 47,900 47,900 65,785 ( 17,885)
Total expenditures 47,900 47,900 65,785 ( 17,885)
Other financing sources (uses):
Transfers out - ( 1,892) ( 1,892)
Total other
financing sources (uses)
- ( 1,892) ( 1,892)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses ( 42,900) ( 42,900) 12,017 54,917
Fund balance, beginning of year 216,987 216,987 216,987
Fund balance, end of year $ 174,087 $ 174,087 $ 229,004 $ 54,917
60
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, 2004
Revenues:
General sales tax
Interest income
Total revenues
Expenditures:
General and administrative
Culture and recreation
Development services
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Other financing sources (uses):
Transfers out
Total other
financing sources (uses)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses
Fund balance, beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
$ 2,273,530
20,000
2,293,530
284,300
1,090,661
143,120
550,000
386,190
2,454,271
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
$ 2,273,530 $ 2,320,606 $ 47,076
20,000 18,295 ( 1,705)
2,293,530 2,338,901 45,371
284,300 35,845 248,455
1,090,661 935,404 155,257
143,120 135,676 7,444
550,000
386,190
2,454,271
550,000
386,190
2,043,115
( 230,573) ( 230,573) ( 201,075)
(
230,573) ( 230,573) ( 201,075)
( 391,314)
2,108,314
$ 1,717,000
( 391,314)
2,108,314
$ 1,717,000
411,156
29,498
29,498
94,711 486,025
2,108,314
$ 2,203,025 $ 486,025
61
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
DEA TASK FORCE SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2004
Revenues:
DEA revenues
Interest income
Total revenues
Expenditures:
Public safety
$
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
$ $ 50,687 $ 50,687
100 100
- - 50,787 50,787
1,258 1,258 53,078 ( 51,820)
Total expenditures 1,258
1,258 53,078 2 51,820)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses ( 1,258) ( 1,258) ( 2,291) ( 1,033)
Fund balance, beginning of year 3,293 3,293 3,293 -
Fund balance, end of year $ 2,035 $ 2,035 $ 1,002 ($ 1,033)
62
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, 2004
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues:
General sales tax $ 1,117,309 $ 1,117,309 $1,107,698 ($ 9,611)
Other revenue - - 3,822 3,822
Interest income 10,000 10,000 5,138 ( 4,862)
Total revenues 1,127,309 1,127,309 1,116,658 ( 10,651)
Expenditures:
Public safety 1,266,903 1,266,903 1,126,851 140,052
Total expenditures 1,266,903 1,266,903 1,126,851 140,052
Excess (deficiency) of revenues
over expenditures ( 139,594) ( 139,594) ( 10,193) 129,401
Fund balance, beginning of year 530,907 530,907 530,907
Fund balance, end of year $ 391,313 $ 391,313 $ 520,714 $ 129,401
63
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
PUBLIC SAFETY GRANT FUNDS SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2004
Revenues:
Other revenues
Interest income
Total revenues
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
$ 111,871 $ 111,871 $ 197,173 $ 85,302
- 118 118
111,871 111,871 197,291 85,420
Expenditures:
Public safety 193,007 193,007 226,539 ( 33,532)
Total expenditures 193,007 193,007 226,539 ( 33,532)
Other financing sources (uses):
Transfers in 81,136 81,136 23,988 ( 57,148)
Total other
financing sources (uses)
81,136 81,136 23,988 ( 57,148)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses - ( 5,260) ( 5,260)
Fund balance, beginning of year 40,152 40,152 40,152
Fund balance, end of year $ 40,152 $ 40,152 $ 34,892 ($ 5,260)
64
NON MAJOR PROPRIETY FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises - where the intent of the government's council is that the
costs of providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges; or where the government's council has decided that
periodic determination of net income is appropriate for accountability purposes.
Recreation Classes - to account for the operation of recreational programs and
activities which are offered to groups and individuals on a fee basis.
Softball Complex Fund - to account for the operation and maintenance of the
softball complex, supported primarily by user charges.
Athletic Complex Fund - to account for the operation and maintenance of the
athletic complex, supported primarily by user charges.
Arbor Daze Fund — to account for the receipts and disbursements of the Arbor
Daze Festival, supported primarily by user charges.
65
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2004
Recreation Softball Athletic Arbor
Classes Complex Complex Daze
ASSETS
(1 of 2)
Totals
Current assets:
Deposits and investments $ 264,237 $ 491,632 $ 873,949 $ 147,393 $ 1,777,211
Accounts receivable and unbilled revenue 1,056 1,135 344 2,535
Accrued interest receivable 20 6,165 - 6,185
Prepaids and deposits 343 8,312 2,000 797 11,452
Inventory 12,673 2,625 - 15,298
Due from other funds 296,000 296,000
Total current assets 265,636 809,772 884,739 148,534 2,108,681
Bond issuance cost - 37,947 14,259 52,206
Less accumulated amortization - 1,897 6,026 7,923
Net bond issuance cost - 36,050 8,233 44,283
Utility plant and equipment in service, at cost
Land 584,532 - 584,532
Building 328,180 160,095 488,275
Equipment 55,942 128,561 62,441 246,944
Improvements 578,535 5,122,655 5,701,190
Construction in progress 1,141,869 1,141,869
Waterworks and sanitary sewer system - - -
55,942 1,619,808 6,487,060 8,162,810
Less accumulated depreciation 5,364 365,382 1,154,312 - 1,525,058
Net utility plant and equipment in service 50,578 1,254,426 5,332,748 - 6,637,752
TOTAL ASSETS 316,214 2,100,248 6,225,720 148,534 8,790,716
66
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2004
Recreation Softball Athletic Arbor
Classes Complex Complex Daze
(2of2)
Totals
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable $ 10,535 $ 30,778 $ 49,391 $ _ $ 90,704
Accrued salaries and wages 3,373 28,661 2,000 34,034
Current portion of bonds payable - 90,000 - - 90,000
Deferred revenue - 6,715 20,000 26,715
Total current liabilities 13,908 149,439 58,106 20,000 241,453
Non -current liabilities:
Bonds payable 1,408,309 1,408,309
Due to other funds - 296,000 296,000
Total liabilities 13,908 1,557,748 354,106 20,000 1,945,762
Net Assets:
Invested in capital assets, net of debt 50,578 ( 243,883) 5,332,748 - 5,139,443
Unrestricted 251,728 786,383 538,866 128,534 1,705,511
Total net assets $ 302,306 $ 542,500 $ 5,871,614 $ 128,534 $ 6,844,954
67
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET ASSETS
NON -MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2004
Recreation Softball Athletic Arbor
Classes Complex Complex Daze
Totals
Operating revenues:
Recreation fees $ 357,543 $ - $ $ - $ 357,543
Service fees and miscellaneous 969,257 263,392 422,022 1,654,671
Total operating revenues
Operating expenses:
Recreation classes
Athletic complex
Softball complex
Arbor Daze
Depreciation
Amortization
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Investment income
interest on bonds
357,543 969,257 263,392 422,022 2,012,214
287,042
5,036
287,042
204,040 204,040
867,862 - 867,862
- 583,699 583,699
75,585 183,078 - 263,699
7,672 679 - 8,351
292,078 951,119 387,797 583,699 2,214,693
65,465 18,138 ( 124,405) ( 161,677) ( 202,479)
2,567 6,955 22,869 2,363 34,754
( 56,986) ( 56,986)
Total nonoperating revenues
(expenses), net 2,567 ( 50,031)
22,869 2,363 ( 22,232)
Income (loss) before operating transfers 68,032 ( 31,893) ( 101,536) ( 159,314) ( 224,711)
Transfers in
Transfers out
Change in net assets
Net assets, beginning of year
11,527
200,000
( 11,527)
211,527
( 11,527)
68,032 ( 20,366) 86,937 ( 159,314) ( 24,711)
234,274 562,866 5,784,677 287,848 6,869,665
Net assets, end of year $ 302,306 $ 542,500 $ 5,871,614 $ 128,534 $ 6,844,954
68
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON -MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2004
OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Net cash provided by (used in ) operating activities
NONCAPITAL FINANCING ACTIVITIES
Transfer in
Transfer out
Net cash provided by
noncapital financing activities
Recreation Softball Athletic Arbor
Classes Complex Complex Daze Totals
$ 357,902 $ 969,466 $ 276,604 $ 406,978 $ 2,010,950
( 238,056) ( 551,864) ( 103,854) ( 587,743) ( 1,481,517)
( 60,878) ( 310,561) ( 55,386) ( 426,825)
58,968 107,041 117,364 ( 180,765) 102,608
256,163 200,000
( 227,636) ( 28,527)
456,163
( 256,163)
28,527 171,473 200,000
CAPITAL AND RELATED FINANCING ACTIVITIES
Interest paid on bonds ( 56,986) - ( 56,986)
Reduction in bonds payable ( 85,000) ( 85,000)
Net proceeds from refunding bond issuance 95,000 - 95,000
Loss on refunding bond issuance ( 82,466) ( 82,466)
Bond issuance costs - ( 10,638) ( 10,638)
Purchase of utility plant and equipment in service ( 36,238) ( 129,496) ( 1,062,969) ( 1,228,703)
Net cash used in capital
and related financing activities ( 36,238) ( 269,586) ( 1,062,969) ( 1,368,793)
INVESTING ACTIVITIES
Interest received on investments 2,567 7,901 16,704 2,363 29,535
Net cash provided by
investing activities 2,567 7,901 16,704 2,363 29,535
Net increase (decrease) in cash and cash equivalents 25,297 ( 126,117) ( 757,428) ( 178,402) ( 1,036,650)
Cash and cash equivalents, beginning of year 238,940 617,749 1,631,377 325,795 2,813,861
Cash and cash equivalents, end of year $ 264,237 $ 491,632 $ 873,949 $ 147,393 $ 1,777,211
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss) $ 65,465 $ 18,138 ($ 124,405) ($ 161,677) ($ 202,479)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation and amortization 5,036 83,257 183,757 272,050
Loss on disposal of equipment - 1,919 - 1,919
Changes in assets and liabilities:
Accounts receivable and unbilled revenue 359 209 6,497 ( 44) 7,021
Prepaids and deposits ( 3) 3,909 ( 2,000) 4,243 6,149
Inventory 25,277 730 26,007
Accounts payable ( 15,221) ( 28,205) 45,495 ( 8,287) ( 6,218)
Accrued salaries and wages 3,332 2,537 575 6,444
Deferred revenue 6,715 ( 15,000) ( 8,285)
Net cash provided by (used in) operating activities $ 58,968 $ 107,041 $ 117,364 ($ 180,765) $ 102,608
69
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by
one department to other departments of the government and to other government units, on a
cost reimbursement basis.
Equipment Replacement Fund - to account for the accumulation of funds planned
to be used in replacing existing equipment. Funding is provided annually by the
user departments.
Insurance Fund - to account for the revenue and expenses resulting from providing
health insurance to the City's employees.
Risk Management Fund - to account for the revenue and expenses applicable to
the self-insurance program for worker's compensation and for general liability and
property claims.
70
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2004
ASSETS
Deposits and investments
Accounts receivable
Prepaid expenses
Accrued interest receivable
Total current assets
Utility plant and equipment, at cost
Equipment
Less accumulated depreciation
Net utility plant and
equipment in service
TOTAL ASSETS
LIABILITIES
Accounts payable
Accrued salary and wages
Accrued insurance claims
Total current liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Equipment
Replacement
Fund
$ 1,274,577
391
1,274,968
5,235,973
5,235,973
3,210,185
2,025,788
Insurance
Fund
$ 777,057
151,002
6,814
321
Risk
Manage-
ment
Fund
$ 758,992
781
Total
$ 2,810,626
151,002
6,814
1,493
935,194 759,773 2,969,935
54,956
54,956
43,965
10,991
11,024
11,024
8,819
5,301,953
5,301,953
3,262,969
2,205 2,038,984
$ 3,300,756 $ 946,185 $ 761,978 $ 5,008,919
$ 1,007 $ 11,404 $ 106,762
- 8,027
204,418
1,007
223,849 106,762
$ 119,173
8,027
204,418
331,618
2,025,784 10,991 2,204 2,038,979
1,273,965 711,345 653,012 2,638,322
Total net assets $ 3,299,749 $ 722,336 $ 655,216 $ 4,677,301
71
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2004
Risk
Equipment Manage -
Replacement Insurance ment
Fund Fund Fund
Total
Operating revenues:
Insurance premiums $ - $ 1,955,055 $ 255,368 $ 2,210,423
Service fees and miscellaneous 501,536 - - 501,536
Total operating revenues 501,536 1,955,055 255,368 2,711,959
Operating expenses:
General and administrative
Insurance costs
Depreciation
26,830
561,609
99,320 75,110 201,260
2,711,391 591,058 3,302,449
10,991 2,205 574,805
Total operating expenses 588,439 2,821,702 668,373 4,078,514
Operating loss ( 86,903) ( 866,647) ( 413,005) (1,366,555)
Non -operating revenues:
Investment income
Gain on sale of fixed assets
11,736 465 6,385 18,586
24,851 - - 24,851
Total nonoperating revenues 36,587 465 6,385 43,437
Income (loss) before
transfers
50,316) ( 866,182) ( 406,620) (1,323,118)
Transfers in 327,700 1,800,000 390,000 2,517,700
Change in net assets 277,384 933,818 ( 16,620) 1,194,582
Net assets (deficit), beginning of year 3,022,365 ( 211,482) 671,836 3,482,719
Net assets, end of year $ 3,299,749 $ 722,336 $ 655,216 $ 4,677,301
72
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2004
OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Risk
Equipment Manage -
Replacement Insurance ment
Fund Fund Fund
(
Total
579,084 $ 2,064,147 $ 255,368 $ 2,898,599
28,882) ( 3,017,838) ( 592,868) ( 3,639,588)
( 69,396) ( 29,023) ( 98,419)
Net cash provided by (used in) operating activities 550,202 ( 1,023,087) ( 366,523)
NONCAPITAL FINANCING ACTIVITIES
Transfers in
Net cash provided by noncapital financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of equipment
Sale of equipment
Net cash used in capital and related financing activities
327,700 1,800,000
327,700 1,800,000
(
839,408)
390,000 2,517,700
390,000 2,517,700
i 369,606) - - ( 369,606)
24,851 - - 24,851
344,755)
(
344,755)
INVESTING ACTIVITIES
Interest received on investments 11,910 144 5,604 17,658
Net cash provided by investing activities 11,910 144 5,604 17,658
Net increase in cash and cash equivalents 545,057 777,057 29,081 1,351,195
Cash and cash equivalents, beginning of year 729,520 729,911 1,459,431
Cash and cash equivalents, end of year $ 1,274,577 $ 777,057 $ 758,992 $ 2,810,626
Reconciliation of operating loss to net cash
provided by (used in) operating activities
Operating loss
Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities:
Depreciation expense
Loss on disposal of equipment
Change in assets and liabilities:
Receivables
Prepaids
Accounts payable
Accrued salaries and wages
Accrued insurance claims
($ 86,903) ($ 866,647) ($ 413,005) ($ 1,366,555)
561,609 10,991 2,205 574,805
74,493 74,493
109,092 109,092
( 6,814) ( 6,814)
1,003 ( 182,419) 49,562 ( 131,854)
- ( 4,201) ( 5,285) ( 9,486)
( 83,089) - ( 83,089)
Net cash provided by (used in) operating activities $ 550,202 ($ 1,023,087) ($ 366,523) ($ 839,408)
73
STATISTICAL SECTION
(Unaudited)
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE EXPENSES BY FUNCTION
FISCAL YEAR ENDED 2004 (UNAUDITED)
Fiscal
Year
2003
Culture and Development
Recreation Services
$ 4,753,724 $ 1,190,240
2004 4,411,726 1,217,794
General and
Administrative
$ 11,879,362
12,337,712
Highways Public
and Streets Safety
$ 2,117,959 $ 14,830,469
2,398,447 15,315,777
Note 1: City of Euless first applied GASB Statement 34 in fiscal year ended 9/30/03;
therefore, government -wide financial information for years prior to fiscal year
ended 9/30/03 is not available.
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE REVENUES BY FUNCTION
FISCAL YEAR ENDED 2004 (UNAUDITED)
Fiscal
Year
2003
2004
Fee, Fines and
Charges for
Services
Program Revenues
Operating
Grants and
Contributions
Capital Grants
and Contributions
Ad Valorem
Taxes
Sales
Taxes
$ 24,707,006 $ 515,039 $ 2,849,795 $ 9,941,779 $ 8,865,055
24,543,308
517,307
2,850,705
10,233,079
Note 1: City of Euless first applied GASB Statement 34 in fiscal year ended 9/30/03;
therefore, government -wide financial information for years prior to fiscal year
ended 9/30/03 is not available.
9,229,819
74
Interest on
Long-term Debt
Water &
Sewer
Drainage
Utility
Golf Course
Table 1
Other Total
$ 3,147,819 $12,046,092 $ 812,785 $ 3,616,671 $ 2,593,455 $ 56,988,576
2,765,102
Other
Taxes
$ 13,074,910
13,666,041
12,550,708
793,358
General Revenues
Captital
Contributions
$ 2,003,095
3,928,771
Interest on
Investments
Gain on Sale
of Assets
$ 900,478 $
3,667,537 2,299,391 57,757,552
Table 2
Miscellaneous Total
41,807 $ 102,193 $ 63,001,157
729,479 30,811 18,208 65,747,528
75
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(Unaudited)
Table 3
Culture and
General Recreation/
Fiscal Govern- Public Highways Development Debt
Year ment Safety and Streets Services Service Other Total
1995 $2,193,512 $6,708,056 $ 575,608 $ 1,430,955 $ 1,650,196 $ 1,085,690 $ 13,644,017
1996 2,409,115 7,445,910 619,098 1,527,718 1,658,291 1,833,982 15,494,114
1997 2,591,776 8,187,576 639,906 1,781,630 2,145,300 2,495,872 17,842,060
1998 2,951,730 9,028,711 699,140 1,995,717 2,002,940 1,454,830 18,133,068
1999 3,112,014 9,455,787 815,687 2,060,029 2,319,044 1,896,288 19,658,849
2000 3,259,704 9,880,516 746,976 2,311,089 2,199,194 1,408,673 19,806,152
2001 3,483,706 10,622,716 734,672 2,406,417 4,379,893 1,800,781 23,428,185
2002 3,536,098 11,494,228 750,218 2,682,646 5,145,880 1,954,168 25,563,238
2003 5,029,333 11,811,166 715,877 3,643,523 5,135,900 26,335,799
2004 5,064,926 12,337,868 766,030 2,638,510 5,038,874 25,846,208
Note 1: Includes General Fund and Debt Service Fund.
Note 2: City of Euless first applied GASB Statement 34 in fiscal year ended 9/30/03;
therefore, "other" classification no longer exists.
76
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Table 4
Interest
Licenses Inter- Charges Income
Fiscal and govem- for Fines and Other
Year Taxes Permits mental Services and Fees Revenues Total
1995 $ 11,362,414 $ 420,624 $ 50,912 $ 88,036 $ 1,941,505 $ 916,167 $ 14,779,658
1996 12,049,604 459,553 84,447 102,669 2,233,554 1,087,365 16,017,192
1997 12,733,372 530,525 192,742 89,102 2,337,343 1,268,495 17,151,579
1998 13,187,156 396,811 258,663 93,175 2,671,187 1,262,289 17,869,281
1999 13,800,144 448,751 557,246 101,705 3,349,742 580,572 18,838,160
2000 15,255,770 550,356 602,417 102,096 3,452,010 1,354,752 21,317,401
2001 16,286,212 511,625 413,617 104,922 3,145,608 1,741,423 22,203,407
2002 17,842,854 1,188,231 421,176 105,187 3,237,217 1,523,766 24,318,431
2003 18,601,527 1,009,058 326,493 112,013 3,377,046 1,480,712 24,906,849
2004 19,287,653 1,190,059 292,265 119,607 3,162,113 1,413,408 25,465,105
Note 1: Includes General Fund and Debt Service Fund_
77
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Unaudited)
Table 5
Percent of Ratio of Percent of
Current Delinquent Total Tax Outstanding Delinquent
Fiscal Total Current Tax Taxes Tax Total Tax Collections Delinquent Taxes to
Year Tax Levy_ Collections Collected Collections Collections to Tax Levy Taxes Tax Levy
1995 $ 6,113,427 $ 6,037,510 98.76% $ 96,556 $ 6,134,066 100.34% $ 334,393 5.47%
1996 6,517,809 6,404,089 98.26% 72,683 6,476,772 99.37% 354,752 5.44%
1997 6,150,523 6,073,887 98.75% 66,886 6,140,773 99.84% 392,589 6.38%
1998 6,235,640 6,123,906 98.21% 86,667 6,210,573 99.60% 392,589 6.30%
1999 6,698,985 6,618,464 98.80% 132,556 6,751,020 100.78% 393,988 5.88%
2000 7,150,393 7,068,633 98.86% 67,464 7,136,097 99.80% 361,663 5.06%
2001 7,717,258 7,562,145 97.99% 41,316 7,603,461 98.53% 493,703 6.40%
2002 8,987,088 8,668,507 96,46% 102,871 8,771,378 97.60% 915,904 10.19%
2003 9,758,243 9,639,278 98.78% 126,029 9,765,307 100.07% 1,002,193 10.27%
2004 10,244,982 10,026,897 97.87% 164,784 10,191,681 99.48% 938,053 9.16%
Source: Tarrant County Tax Assessor/Collector
78
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Unaudited)
Real Property Personal Property
Estimated
Fiscal Assessed Actual Assessed Actual
Year Value Value Value Value
1995 $ 818,330,766 $ 818,330,766 $ 147,978,520 $ 147,978,520
1996 908,760,987 908,760,987 166,784,893 166,784,893
1997 955,692,304 955,692,304 172,885,117 172,885,117
1998 1,009,997,060 1,009,997,060 185,673, 796 185,673,796
1999 1,093,894 ,921 1,093,894 ,921 182,729,883 182,729, 883
2000 1,198,361,587 1,198,361,587 197,169,731 197,169,731
2001 1,307,137,899 1,307,137,899 194,966,019 194,966,019
2002 1,433,779,484 1,433,779,484 373,564,221 373,564,221
2003 1,547,947,615 1,547,947,615 414,478,638 414,478,638
2004 1,660,048,845 1,660,048,845 409,644,479 409,644,479
Source: Tarrant Appraisal District
Assessed
Value
$ 966,309,286
1,075,545,880
1,128,577,421
1,195,670,856
1,276,624,804
1,395,531,318
1,502,103,918
1,807,343,705
1,962,426,253
2,069,693,324
Total
Actual
Value
$ 966,309,286
1,075,545,880
1,128,577,421
1,195,670,856
1,276,624,804
1,395,531,318
1,502,103,918
1,807,343,705
1,962,426,253
2,069,693,324
Table 6
Ratio of
Total
Assessed
to
Estimated
Actual
Value
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
79
CITY OF EULESS, TEXAS
PROPERTY TAX RATES
ALL DIRECT AND OVERLAPPING GOVERNMENTS
PER $100 OF ASSESSED VALUE
LAST TEN FISCAL YEARS
(Unaudited)
Table 7
Fiscal Junior
Year City (1) School (2) County (3) Hospital (3) College (3) Total
1995 0.6160000% 1.5350% 0.271870% 0.244640% 0.056510% 2.7240200%
1996 0.6060000% 1.5345% 0.266603% 0.244640% 0.055460% 2.7071630%
1997 0.5449800% 1.6170% 0.266603% 0.239840% 0.057690% 2.7261130%
1998 0.5247540% 1.6063% 0.264000% 0.234070% 0.057690% 2.6867710%
1999 0.5247540% 1.6063% 0.264836% 0.234070% 0.106400% 2.7363170%
2000 0.5147540% 1.6318% 0.264836% 0.234070% 0.106400% 2.7518600%
2001 0.5147540% 1.6775% 0.274785% 0.234070% 0.106410% 2.8075190%
2002 0.4972540% 1.6530% 0.274785% 0.234070% 0.106410% 2.7655190%
2003 0.4972540% 1.7119% 0.272500% 0.232400% 0.139380% 2.8534340%
2004 0.4950000% 1.6616% 0.272500% 0.235397% 0.139380% 2.8038770%
Note 1: General property taxes for cities are limited by the Texas Constitution to
$2.50 per $100 of assessed valuation.
Note 2: City general property taxes are due each year on October 1 and become delinquent
on February 1 each year.Penalties and interest are assessed on late payments.
There are no discounts.
Note 3: The City's taxes are collected by Tarrant County and are distributed to the City as collected.
Sources: (1) City records
(2) Hurst -Euless -Bedford Independent School District
(3) Tarrant County
80
CITY OF EULESS, TEXAS
RATIO OF NET GENERAL BONDED DEBT
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(Unaudited)
Table 8
Net
Bonded Net
Estimated Net Debt to Bonded
Fiscal Population Assessed General Assessed Debt Per
Year (1) Value (2) Debt (3) Value Capita
1995 39,650 $ 966,309,286 $ 9,117,594 0.94% 230
1996 39,750 1,075,545,880 12,124,427 1.13% 305
1997 40,850 1,128,577,421 11,813,272 1.05% 289
1998 41,300 1,195,670,856 15,864,608 1.33% 384
1999 42,900 1,276,624,804 14,452,481 1.13% 337
2000 44,700 1,395,531,318 25,858,045 1.85% 578
2001 45,500 1,502,103,918 36,360,233 2.42% 799
2002 46,166 1,807,343,705 34,925,836 1.93% 757
2003 47,950 1,962,426,253 33,371,818 1.70% 696
2004 49,750 2,069,693,324 38,959,366 1.88% 783
Sources: (1) Estimates by North Central Texas Council of Governments
(2) Tarrant Appraisal District
(3) Includes General Obligation Bonds and Certificates of Obligation, with the exception of
Taxable Certificates of Obligation
81
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2004
(Unaudited)
Table 9
Percentage Amount
Applicable Applicable
Net Debt to City to City
Jurisdiction Outstanding of Euless of Euless
City of Euless $38,959,366 100.00% $38,959,366
Grapevine-Colleyville Independent
School District 267,830,489 2.12% 5,678,006
Hurst -Euless -Bedford Independent
School District 232,798,603 26.79% 62,366,746
Tarrant County 173,988,767 2.72% 4,732,494
Tarrant County Hospital County 40,520,000 2.72% 1,102,144
Tarrant County Junior College District 69,066,408 2.72% 1,878,606
Total direct and overlapping debt $823,163,633 $114,717,362
Ratio of direct and overlapping
bonded debt to taxable assessed
valuation
5.54%
Per capita direct and overlapping
bonded debt $2,306
82
CITY OF EULESS, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR NET GENERAL BONDED DEBT
TO TOTAL GENERAL EXPENDITURES
LAST TEN FISCAL YEARS
(Unaudited)
Table 10
Ratio of
Debt
Service
Interest to
and Total Total General
Fiscal Fiscal Debt General Expendi-
Year Principal Charges Service Expenditures tures
1995 $ 1,150,000 $ 500,196 $ 1,650,196 $ 13,644,017 12.09%
1996 1,245,000 413,291 1,658,291 15,494,114 10.70%
1997 1,340,000 805,300 2,145,300 17,842,060 12.02%
1998 1,445,000 557,940 2,002,940 17,554,787 11.41
1999 1,430,000 890,944 2,320,944 19,658,849 11.81%
2000 1,022,790 1,178,392 2,201,182 19,806,152 11.11
2001 1,179,277 3,200,616 4,379,893 23,428,186 18.69%
2002 1,734,866 3,411,014 5,145,880 25,563,238 20.13%
2003 1,987,838 3,062,699 5,050,537 26,335,799 19.18%
2004 1,941,815 2,922,059 4,863,874 25,846,208 18.82%
83
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Table 11
Net
Direct Revenue Interest
Gross Operating Available and
Fiscal Revenue Expenses for Debt Fiscal Coverage
Year (1) (2) Services Principal Charges Total Ratio
1995 $ 9,348,238 $ 7,588,129 $ 1,760,109 $ 335,000 $ 183,430 $ 518,430 3.40
1996 10,579,366 8,177,311 2,402,055 365,000 170,205 535,205 4.49
1997 10,605,353 8,014,504 2,590,849 370,000 151,480 521,480 4.97
1998 11,830,802 9,780,792 2,050,010 395,000 128,040 523,040 3.92
1999 11,909,011 9,288,622 2,620,389 385,000 107,325 492,325 5.32
2000 13,558,051 9,765,239 3,792,812 415,000 62,856 477,856 7.94
2001 13,084,483 10,915,784 2,168,699 445,000 317,637 762,637 2.84
2002 11,719,411 10,298,940 1,420,471 580,000 231,234 811,234 1.75
2003 13,016,934 10,431,249 2,585,685 615,000 199,245 814,245 3.18
2004 13,443,174 10,902,522 2,540,652 500,000 183,946 683,946 3.71
Sources: (1) Operating revenues and investment interest of Water and
Sewer Fund.
(2) Total operating expenses of Water and Sewer Fund exclusive
of depreciation and amortization.
84
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
DRAINAGE UTILITY BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Table 12
Net
Direct Revenue interest
Gross Operating Available and
Fiscal Revenue Expenses for Debt Fiscal Coverage
Year (1) (2) Services Principal Charges Total Ratio
1995 $ 345,524 $ 101,286 $ 244,238 $ 25,000 $ 128,093 $ 153,093 1.60
1996 563,004 52,876 510,128 25,000 126,791 151,791 3.36
1997 587,892 66,624 521,268 30,000 125,419 155,419 3.35
1998 611,585 87,641 523,944 100,000 124,082 224,082 2.34
1999 621,586 195,397 426,189 105,000 118,433 223,433 1.91
2000 662,132 329,422 332,710 110,000 112,343 222,343 1.50
2001 662,455 212,073 450,382 120,000 108,652 228,652 1.97
2002 645,852 241,034 404,818 75,000 74,041 149,041 2.72
2003 653,916 291,668 362,248 160,000 32,494 192,494 1.88
2004 667,131 225,815 441,316 165,000 46,255 211,255 2.09
Sources: (1) Includes operating revenue and interest earned on investments.
(2) Total operating expenses exclusive of depreciation and amortization.
85
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(Unaudited)
Table 13
Per
Capita School Unemployment
Fiscal Population Income Enrollment Rate
Year (1) (2) (3) (4)
1995 39,650 20,750 19,235 4.7%
1996 39,750 22,223 19,205 3.3%
1997 40,850 22,690 19,400 3.5%
1998 41,300 22,962 19,500 2.4%
1999 42,900 23,858 19,500 2.1%
2000 44,700 24,884 19,500 2.2%
2001 45,500 25,556 19,500 3.3%
2002 46,166 25,837 19,500 4.6%
2003 47,950 26,630 19,500 4.7%
2004 49,750 26,710 19,700 3.8%
Note 1: Estimates by North Central Texas Council of Governments
Note 2: Estimates by Claritas Site Reports
Note 3: Hurst -Euless -Bedford Independent School District
Note 4: Texas Workforce Commission
85
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2004
(Unaudited)
Table 14
2004 Percentage
Assessed of Total
Type of Valuation Assessed
Taxpayer Business (1) Valuation
Hertz Rent A Car Car Rental $ 74,388,839 3.40%
Vanguard Car Rental USA. Inc. Car Rental 45,403,046 2.08%
Avis Rent a Car, Inc. Car Rental 34,713,647 1.59%
Somerset Village Partners, LP Apartments 30,606,615 1.40%
Seramont, LP Apartments 28,010,033 1.28%
Bear Apartments Apartments 27,775,966 1.27%
Oncor Electric Delivery Co. Electric Utility 27,752,749 1.27%
Fairfield Bear Creek Apartments 25,835,793 1.18%
Saluda Apartments, L.P. Apartments 24,639,355 1.13%
South West Properties Apartments 24,121,440 1.10%
$ 343,247,483 15.70%
Note 1: Based on Certified Tax Rolls from Tarrant Appraisal District as of September 2004
87
CITY OF EULESS, TEXAS
PROPERTY VALUE AND CONSTRUCTION
LAST TEN FISCAL YEARS
(Unaudited)
Table 15
Construction (1)
Property Number
Fiscal Value of
Year (2) Permits Value
1995 $ 966,309,286 373 $ 34,020,060
1996 1,075,545,880 391 22,907,680
1997 1,128,577,421 351 92,300,851
1998 1,195,670,856 293 1,586,997
1999 1,276,624,804 244 28,267,792
2000 1,395,531,318 186 60,615,889
2001 1,502,103,918 246 35,276,093
2002 1,807,343,705 218 38,180,557
2003 1,962,426,253 362 67,835,536
2004 2,069,693,324 531 99,192,850
Note 1: City Records
Note 2: Tarrant Appraisal District
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2004
(Unaudited)
Article XI, Section 5 of the State of Texas Constitution states in part:
Table 16
"... no tax for any purpose shall ever be lawful for any one year, which shall exceed two
and one-half percent of the taxable property of such city."
Additionally, the state Attorney General's Office normally limits general property taxes to $2.50
per $100 of assessed valuation for the payment of principal and interest on general obligation
bonds.
The City's total tax rate for fiscal 2004 was established at $.495000 per $100 of assessed
valuation on 100% of appraised value.
89
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2004
(Unaudited)
Table 17
Date of incorporation February 24, 1953
Date of Adoption of Charter July 21, 1962
Form of government Home Rule - Council/Manager
Mayor - elected at large
Six Council Members
Area 16.9 Square Miles
Full time City employees budgeted 368
Fire protection:
Number of stations
Number of certified firefighters
Police protection:
Number of stations
Number of certified officers
3
58
1
81
Parks and recreation:
Number of swimming pools 3
Number of parks 16
Area of parks 605 acres
Community buildings 5
Ampitheater 2
Conference center 1
Golf course 1
Athletic fields 24
Ice rinks 2
Library materials:
Books
Other media
86,302
9,926
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
90
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2004
(Unaudited)
Table 17
City Water and Sewer service:
Water Service:
Number of Customers 23,848
Maximum daily capacity available
from Trinity River Authority 29,000,000
Maximum daily capacity from City
water wells 3,500,000
Total daily capacity 32,500,000
Maximum daily consumption 15,391,000
Average daily consumption 6,890,000
Water mains 194.66 miles
Fire hydrants 1,318
Sewer Service:
Average daily flow of wastewater 3,990,000
Number of customers 23,368
Sewer mains 180.5 miles
Streets:
Improved 141 miles
State highways 33.3 miles
Airport Streets 16.5 miles
91