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CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2003
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) 3-13
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets 14
Statement of Activities 15
Fund Financial Statements:
Governmental Funds:
Balance Sheet 16
Reconciliation of the Governmental Funds Balance sheet to
Statement of Net Assets 17
Statement of Revenues, Expenditures and Changes in Fund Balances 18
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 19
Proprietary Funds:
Statement of Net Assets 20-21
Statement of Revenues, Expenses and Changes in Fund Net Assets 22
Statement of Cash Flows 23-24
Fiduciary Funds:
Statement of Fiduciary Net Assets 25
Notes to basic financial statements 26-48
Required Supplementary Information:
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 49
Budgetary Comparison Schedules 50-52
Combining and Individual Fund Statements and Schedules:
Non -major Governmental Funds:
Combining Balance Sheet 54-55
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 56-57
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2003
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 58
Police Drug Enforcement Special Revenue Fund 59
Half -penny Sales Tax Special Revenue Fund 60
DEA Task Force Special Revenue Fund 61
Crime Control and Prevention District Special Revenue Fund 62
Police Department Grant Special Revenue Funds 63
Non -major Proprietary Funds:
Combining Statement of Net Assets 65-66
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 67
Combining Statement of Cash Flows 68
Internal Service Funds:
Combining Statement of Net Assets 70
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 71
Combining Statement of Cash Flows 72
STATISTICAL SECTION (Unaudited) Table Page(s)
Government -wide expenses by function 1 73-74
Government -wide revenues by function 2 73-74
General governmental expenditures by function 3 75
General governmental revenues by source 4 76
Property tax levies and collections 5 77
Assessed and estimated actual value of taxable property 6 78
Property tax rates - all direct and overlapping
governments per $100 of assessed value 7 79
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 8 80
Computation of direct and overlapping debt 9 81
Ratio of annual debt service expenditures for
net general bonded debt to total general expenditures 10 82
Schedule of revenue bond coverage -
Water and Sewer Bonds 11 83
Schedule of revenue bond coverage -
Drainage Utility Bonds 12 84
Demographic statistics 13 85
Principal taxpayers 14 86
Property value and construction 15 87
Computation of legal debt margin 16 88
Miscellaneous statistics 17 89-90
INTRODUCTORY SECTION
January 19, 2003
To the Honorable Mayor,
Members of the City Council, and
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, 2003. We are hopeful that you find
this information useful in reviewing the financial position of the City of Euless for fiscal
year 2003.
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 U.S. generally accepted accounting
principals (GAAP).
The internal controls are designed to provide reasonable but not absolute assurance that
these objectives are met. The concept of reasonable assurance recognizes that: (1) 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 and Tidwell,
L.L.P., a firm of licensed certified public accounts. 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, 2003, are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting 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, 2003, are fairly presented in
201 N. Ector Drive, Euless, Texas 76039-3595
817/685-1400 • Metro 817/267-4403 • Fax 817/685-1416
www.ci.euless.tx.us
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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
Management's Discussion and Analysis (MD&A), basic financial statements, required
supplementary information 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 16 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 47,950.
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 two 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 1st each year. The budget is filed with the City Secretary and open for
public inspection. Upon receipt of the budget, the Council sets a date for a public hearing
at which time interested citizens may express their opinion regarding the proposed
budget. The charter requires the Council to adopt the budget by a favorable majority vote
at least 10 days prior to the beginning of the next fiscal year.
The City Manager is authorized to transfer budgeted amounts between line items and
departments within any fund; however, any revisions that alter the total expenditure of
any fund must be approved by the City Council. Budgetary control has been established
at the individual fund level. Financial reports are produced showing budget to actual
expenditures by line item, and are distributed monthly to City departments and divisional
management for review. 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. Although the DFW metroplex did feel the impact of the
economic downturn and, in particular, the financial impact related to the airline industry's
struggles, forecasts indicate that the DFW area will continue to see the addition of new
jobs and continued growth.
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 currently underway with a Capital
Development Program that will invest over $2 billion into the Airport's infrastructure.
This investment will generate an additional $34 billion in economic impact on the
region's economy and will add 77,000 new jobs over the next 15 years according to the
Greater Dallas Chamber of Commerce.
Euless has seen near record growth in residential and multi -family building permits
during the past year. Property values have continued to grow at above average rates.
Total taxable value for all residential and commercial property in the City of Euless
approached $2 billion for fiscal year 2003, which was an 8.5% increase over the prior
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year. Sales tax collections slowed during the past year but a diversified sales tax base
held this decline to approximately 4% from the prior year.
The City also receives a significant amount of revenues from a consolidated rental car
facility at DFW airport. A slowdown in business travel brought on by the economic
downturn caused a decline of approximately 5%. This is a fairly new revenue source for
the City of Euless that was the result of a revenue sharing agreement with the City of
Dallas and the City of Fort Worth. The City Council has chosen to use this funding
source to build reserves, cash flow several projects that will enhance the city, and has not
become overly dependent upon this revenue source for daily operations. Therefore, this
decline did not create budgetary issues for the City during fiscal year 2003.
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.
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 44 days to 26 months
with a weighted average maturity of 351 days. The average yield on the portfolio for
fiscal year 2003 was 2.26%. Investment income includes appreciation in the fair value of
investments. Increases in the fair value during the current year, however, do not
necessarily represent trends that will continue; nor is it always possible to realize such
amounts, 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.
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 of $300,000 are
covered through a third -party limited -coverage insurance policy.
iv
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 TMLIF. 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 $100,000 and aggregate claims in excess of $1,925,088.
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,
2002. This was the 16th 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.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current CAFR continues to meet the Certificate of Achievement Program's requirements
and we are submitting it to the GFOA to determine its eligibility for another certificate.
In addition, the City of Euless also received the GFOA's Distinguished Budget
Presentation Award for its annual budget document dated August 27, 2002. This is the
12th consecutive year that the City has received this prestigious award. In order to qualify
for the Distinguished Budget Presentation Award, the City's budget document was
judged to be proficient in several categories, including as a policy document, a financial
plan, an operations guide, and a communications device.
v
The preparation of this report would not have been possible without the efficient and
dedicated services of the entire staff of the finance department. We would like to express
our appreciation to all members of the department who assisted and contributed to the
preparation of this report.
We would like to thank the members of the City Council for their interest and support in
planning and conducting the financial operations of the City in a responsible and
professional manner.
Respectfully submitted,
Loretta Getchell,
Director of Fiscal & Admin Services
vi
CITY OFFICIALS
MARY LIB SALEFI, MAYOR
CARL TYSON, COUNCIL MEMBER PLACE ONE
AND MAYOR PRO TEM
LEON HOGG, COUNCIL MEMBER PLACE TWO
BOB EDWARDS, COUNCIL MEMBER PLACE THREE
CHARLES MILLER, COUNCIL MEMBER PLACE FOUR
GLENN PORTERFIELD, COUNCIL MEMBER PLACE FIVE
VEVA LOU MASSEY, COUNCIL MEMBER PLACE SIX
JOE HENNIG, CITY MANAGER
Gary McKamie, Loretta Getchell, CPA, Director of Fiscal
Deputy City Manager & Administrative Services
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, 2002. The City
of Euless has received a Certificate
of Achievement for the last fourteen
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 Program's require-
ments, and we are submitting it to
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, 2002
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
.,_./..,,
President
Executive Director
viii
RON
YOUNG
Director of
Public Works -
Streets
Water
Wastewater
Animal Control
Meter Reading
Const. Mgmt.
BOB
BARKER
City Engineer
Engineering
Const. Inspection
CIP Mgmt.
Traffic Safety
Drainage
BOB MCFARLAND
City Attorney
RAY
MCDONALD
(Interim)
Director of Parks
Community
Services
Recreation
Parks
Special Events
Parks at Texas Star
StarCenter
Softball World at
Texas Star
SUSAN CRIM
City Secretary
LEE
KOONTZ
Fire Chief
Suppression
Ambulance/EMS
Fire Educ. & Prevent.
Fire Marshall
Emergency Mgmt.
LEONARD
CARMACK
Police Chief
Patrol
Criminal Invest.
Services:
Communications
Community
Jail
CITIZENS
MAYOR
and
. COUNCIL
JOE HENNIG
City Manager
GARY MCKAMIE
Deputy City Manager
LORETTA
GETCHELL
Director of
Finance/
Admin. Services
Accounting.
Utility Billing
Budget
Municipal Court
Cash Debt. Mgmt.
Info. Services
Purchasing
Human Re -
LACY BRITTEN
Municipal Court Judge
KYLE
MCADAMS
Fleet &
Facilities
Administrator
BILL
• RIDGWAY
Director of
Economic
Development
Economic Dev.
Franchises
Recycling
Organizational Chart
i
ennig, City M
October, 2002
Municipal Court
of Record
MI KE
COLLINS
Director of
Planning
& Development
Planning
Code Enforcement
Environ. Health
Bldg. Inspections
JOANN
ROGERS
Library
Administrator
LORI
DE LA
CRUZ
Comm.
Marketing
Manager
GLENDA
HARTSELL
General Mgr.
Texas Star
III
WEAVER
TIDWELL
L.L.P.
CERTIFIED PUBLIC
ACCOUNTANTS
AND CONSULTANTS
DALLAS
Three Form Plum
12221 Merit Drive
Suite 1400
Dallas, Twits 75251-2280
972, 490.1970
F 972.702.8321
FORT WORTH
1600 11%st Seventh Street
Suite .300
Fort Worth, Texas, 76102-2506
817.332.7905
F 817.429.5936
WWW. WEAVERANDTIDWELL.COM
AN INDEPENDENT MEMBER OF
BAKER TILLY
INTERNATIONAL
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, 2003, 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, 2003, 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.
As described in Note 1, the City has implemented a new financial reporting
model, as required by the provisions of GASB Statement No. 34, Basic Financial
Statements —and Management's Discussion and Analysis —for State and Local
Governments, as of September 30, 2003.
The management's discussion and analysis, the analysis of funding progress and
budgetary comparison information on pages 3 through 13 and 49 through 52, 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 5, 2003
4104
CITY OF EULESS, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2003
(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, 2003. 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. As discussed in footnote 1, the City
elected to capitalize its remaining infrastructure networks (streets and drainage) in this
fiscal year.
Financial Highlights
• The assets of the City of Euless exceeded its liabilities at the close of the most recent
fiscal year by $114,894,053 (Net assets). Of this amount, $28,954,302 (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 $23,473,769, a decrease of $5,118,287 in
comparison with the prior year. Approximately 87% 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
$6,039,430 or 28% of total general fund expenditures.
• The City's total capital assets increased by $5,764,977, which is primarily attributed
to street infrastructure.
• The City's bonds payable decreased $2,922,838 or 4.2% due to principal payments.
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.
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.
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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 14-15 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.
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-
4
wide financial statements. By doing so, the reader may better understand the long-term
impact of the government's near -term financing decisions. Both the governmental fund
balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains 17 individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the General, Debt
Service, Street CIP, and Car Rental Tax funds, all of which are considered to be major
funds. Data from the other 13 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 16-19 of this
report.
The City adopts an annual appropriated budget for its general fund. A budgetary
comparison statement has been provided for the general fund 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.
The basic proprietary fund financial statements can be found on pages 20-24 of this
report.
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Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government -wide
financial statements because the resources of those funds are not available to support the
City's own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statements can be found on page 25 of this report.
Notes to the financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government -wide and fund
financial statements. The notes to the financial statements can be found on pages 26-48
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 49-52 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 53-72 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, 2003, the City of Euless' assets exceeded
liabilities by $114,894,053.
The largest portion of the City's net assets (74%) 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 ($28,954,302) may be used to meet the government's ongoing obligations to
citizens and creditors.
As of September 30, 2003, 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.
6
City of Euless' Net Assets
Current and other assets
Capital assets
Total assets
Long-term liabilities outstanding
Other liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related
debt
Restricted
Unrestricted
Total net assets
Governmental
activities
2003
$35,267,340
85,744,846
121,012,186
50,722,077
12,438,996
63,161,073
42,192,665
713,385
14,945,063
$57,851,113
Business -type
activities
2003
$17,177,132
57,661,512
74,838,644
14,595,000
3,200,704
17,795,704
42,401,512
632,189
14,009,239
$57,042,940
Total
2003
$52,444,472
143,406,358
195,850,830
65,317,077
15,639,700
80,956,777
84,594,177
1,345,574
28,954,302
$114,894,053
Analysis of the City's Operation. The following table provides a summary of the City's
operations for the year ended September 30, 2003. The City first implemented
Governmental Accounting Standards Board Statement No. 34, Basic Financial
Statements — and Management's Discussion and Analysis for State and Local
Governments, in 2003; therefore, comparative data is not presented. Overall, the City
had an increase in net assets of $6,395,808.
Governmental activities. Governmental activities increased the City's net assets by
$1,110,811, thereby accounting for 17% of the total growth in the net assets.
Business -type activities. Business -type activities increased the City's net assets by
$5,284,997, accounting for the other 88% of the total growth in net assets.
7
City of Euless' Changes in Net Assets
Revenues:
Program revenues:
Fees, Fines and Charges for
services
Operating grants and
contributions
Capital grants and
contributions
General revenues:
Property taxes
Sales taxes
Other taxes
Investment earnings
Contributions from property
owners
Gain (loss) on sale/retirement
of fixed assets
Miscellaneous
Total revenues
Expenses
Culture and recreation
Development services
General government
Highways and streets
Public safety
Interest on long-term debt
Water & sewer
Drainage utility
Golf course
Other enterprise funds
Total expenses
Increase in net assets before
transfers
Transfers
Increase in net assets
Net assets 10/01/02
Net assets 09/30/03
Governmental Business -type
activities activities
2003 2003
Total
2003
$5,630,326 $19,076,680 $24,707,006
515,039
0
0 2,849,795
9,941 ,779
8,865,055
13,074,910
580,245
1,814,257
41,807
102,193
40,565,611
4,753,724
1,190,240
11,879,362
2,117,959
14,830,469
3,147,819
37,919,573
0
0
0
320,233
572,065
515,039
2,849,795
9,941,779
8,865,055
13,074,910
900,478
2,386,322
0 41,807
0 102,193
22,818,773
0
0
0
0
0
0
12,046,092
812,785
3,616,671
2,593,455
19,069,003
2,646,038 3,749,770
(1,535,227) 1,535,227
1,110,811 5,284,997
56,740,302 51 ,757,943
$57,851,113 $57,042,940
63,384,384
4,753,724
1,190,240
11,879,362
2,117,959
14,830,469
3,147,819
12,046,092
812,785
3,616,671
2,593,455
56,988,576
6,395,808
0
6,395,808
108,498,245
$114,894,053
8
Expenses and Program Revenues — Governmental Activities
$16,000,000 -
$12,000,000 -
$8,000,000 -
$4,000,000 -
$0
■ Expenses
O Program revenues
1
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 -
$0 MIN.7771. ,
Water & Sewer Drainage
Financial Analysis of the Government's Funds
Golf
■Expenses
OProgram Revenues
Other
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements.
9
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 $23,473,769, a decrease of $5,118,287 in comparison
with the prior year. Approximately 87% 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 ($1,380,615), 2) to pay for specific capital
improvements per development agreements ($1,447,612), and 3) for a variety of other
restricted purposes ($137,412).
In the general fund, the City budgeted for a decrease in fund balance of $2,228,341,
which was primarily resulting from transfers of $800,000 to the insurance and risk
management fund, and $1,218,895 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 intemal 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 2003 was only $811,359. Debt service fund
balance increased in 2003 by $36,180 due primarily to increased penalties and interest on
late property tax collections. Street CIP fund balance decreased $2,684,537 due to the
planned construction of several major thoroughfares including Harwood Road, North
Main Street, Gateway Blvd., and Glade Road. The Car Rental fund budgeted a decrease
of $1,125,645, which was a planned reduction of excess fund balance to be used to fund
capital projects including the reconstruction of Building A, the design of a new fire
station, Phase III of the Parks at Texas Star and several drainage projects. Due to actual
revenues being less than budgeted, the actual decrease in fund balance was $1,522,177.
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 respective proprietary funds are Water and Sewer -
$10,931,764, Drainage Utility - $2,010,802, Golf Course - ($1,581,027), and Other
Enterprise Funds - $2,759,998. All funds except the Golf Course had net asset increases
in 2003 as follows: Water and Sewer - $2,717,700, Drainage Utility - $1,389,846, Other
Enterprise Funds - $1,514,183. The Golf Course had a decrease in net assets of
$224,434.
General Fund Budgetary Highlights
The only difference between the general fund original budget and the final amended
budget was an additional $500,000 transfer to the health insurance fund and an additional
$100,000 transfer to the risk management fund.
10
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.
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, 2003, amount to $143,406,358 (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 $5,764,977.
Major capital asset events during the current fiscalyear included the following:
• Acquisition and developer contribution of right of way related to street construction
totaled $315,664
• Addition of $2,114,485 in street infrastructure consisting of Harwood Road
($247,843), Glade Road ($180,926), Gateway Blvd. ($472,855), and developer
contributions ($1,213,161)
• Construction -in -progress additions related to street projects totaled $3,030,806
consisting primarily of North Main Street
• Construction -in -progress additions related to enterprise funds totaled $1,127,818
• Addition of $3,165,773 in water, sewer, and drainage infrastructure projects
City of Euless' Capital Assets (Net of Accumulated Depreciation)
Land
Buildings
Improvements other than
buildings
Machinery and equipment
Infrastructure
Construction in progress
Total
Governmental
activities
2003
$20,658,667
28,947,214
1,964,898
4,467,216
18,145,683
11,561,168
$85,744,846
Business -type
activities
2003
$2,776,602
3,325,954
0
964,902
49,322,895
1,271,159
$57,661,512
Total
2003
$23,435,269
32,273,168
1,964,898
5,432,118
67,468,578
12,832,327
$143,406,358
Additional information on the City's capital assets can be found in note 3 on pages 36-37
of this report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $67,560,881. Of this amount, $54,100,881 comprises debt backed by the
full faith and credit of the government. The remainder of the City's debt, $13,460,000,
represents bonds secured solely by specific revenue sources (i.e. revenue bonds).
11
City of Euless' Outstanding Debt
General obligation bonds
Certificates of obligation
Revenue bonds
Deferred loss on refunding
bonds
Total
Governmental
activities
2003
$15,381,815
28,295,000
8,860,000
(235,934)
$52,300,881
Business -type
activities
2003
$0
10,660,000
4,600,000
0
$15,260,000
Total
2003
$15,381,815
38,955,000
13,460,000
(235,934)
$67,560,881
The City's total debt decreased by $2,922,838 (4.2%) during the current fiscal year. This
decrease is a result of regularly scheduled annual principal payments and bond
refundings.
During the current fiscal year, the government refinanced some of its existing debt to take
advantage of favorable interest rates.
• The City issued $5,490,000 in general obligation refunding bonds during 2003 to
advance refund $5,185,000 of outstanding debt, which resulted in a reduction in debt
payment of $317,543 over the next 11 years and an economic gain of $280,520.
The City has an "Al" rating from Moody's and an A+ rating from Standard & Poor's for
general obligation debt. The revenue bonds have been rated "A2" by Moody's and "A"
by Standard & Poor's.
Additional information on the City's long-term debt can be found in Note 4 on pages
38-42.
Economic Factors and Next Year's Budgets and Rates
In the fiscal year 2003-04 budget, general fund revenues and transfers in are budgeted to
increase by 1.4% from the 2002-03 budget year with property taxes making up about
28% of budgeted revenues and sales tax making up about 25% of budgeted revenues.
Certified assessed valuations as of September 1, 2003, increased 5.5% over the preceding
year.
As of September 30, 2003, the City's unemployment rate is 4.6% compared to the State
of Texas, which is 6.6%. The City's budgets for all funds have benefited from a strong
and expanding economy for the past several years, but in this coming fiscal year, the
City's budget has been impacted by the slowdown in economic growth. Sales tax
receipts have decreased due to the slowing economy. This revenue source is the most
volatile and is subject to further declines if the economic slowdown continues. Likewise,
the car rental tax receipts are also volatile as they are closely related to the amount of
12
business travel through the DFW International Airport. A decrease in the amount of
interest income has also been seen due to the Federal Reserve's decision to lower rates.
These revenue pressures are responsible for budgeted expenditures remaining fairly level
with the prior year. Departments were asked to hold increases in operating expenses to a
minimum and personnel positions remained level. 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 was reduced from
.497254 per $100 of assessed value to .495 per $100 of assessed value for fiscal year
2004.
During 2002-03, the City increased water and sewer rates. This was the first increase in
water rates since 1992, excluding a TRA pass through charge in 1999. This was the first
increase in sewer rates since 1991. An analysis of the new rate structure indicates that
the City will receive approximately $1,597,639 from the increased rates. The majority of
this increase will be used to continue a "pay as you go" water and sewer infrastructure
replacement program.
The golf course revenues are budgeted to exceed the prior year by 5% due to higher
budgeted rounds of golf. Although rounds are expected to increase, discounting of fees
has been required to maintain the level of play due to a saturation of golf courses in the
area. Operating expense increases have been held to a minimum but additional funds
have been included in the fiscal year 2004 budget for needed maintenance. It is
anticipated that this fund will not improve its current deficit position. Transfers from the
car rental fund may be necessary to subsidize the shortfall.
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 vrodriauez a ci.euless.tx.us.
13
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2003
Primary Government
Governmental Business -type
Activities Activities Total
ASSETS
Deposits and investments $ 28,199,861 $ 12,250,244 $ 40,450,105
Receivables (net of allowances for uncollectibles) 4,931,223 2,229,639 7,160,862
Internal Balances 1,396,773 ( 1,396,773) -
Inventory of Supplies 9,046 223,033 232,079
Prepaid Items 16,657 30,897 47,554
Due from other governments 602,445 602,445
Restricted Assets:
Cash and Cash Equivalents 410,432 410,432
Investments - 3,198,776 3,198,776
Interest Receivable 1,399 1,399
Deferred charges 111,335 229,485 340,820
Capital Assets:
Land and Construction in Progress 32,219,835 4,047,761 36,267,596
Other Capital Assets, Net of Accumulated Depreciation 53,525,011 53,613,751 107,138,762
Total Assets and Other Debits $ 121,012,186 $ 74,838,644 $ 195,850,830
LIABILITIES AND NET ASSETS
LIABILITIES:
Accounts Payable $ 8,143,881 $ 768,606 $ 8,912,487
Accrued Liabilities 561,142 320,174 881,316
Accrued interest payable 667,230 31,137 698,367
Deferred Revenue 107,814 107,814
Money Held in Escrow 1,307,973 1,307,973
Noncurrent liabilities:
Due within one year 3,066,743 665,000 3,731,743
Due in more than one year 50,722,077 14,595,000 65,317,077
Total Liabilities 63,161,073 17,795,704 80,956,777
NET ASSETS:
Invested in Capital Assets, net of related debt 42,192,665 42,401,512 84,594,177
Restricted for Debt Service 713,385 632,189 1,345,574
Unrestricted 14,945,063 14,009,239 28,954,302
Total Net Assets $ 57,851,113 $ 57,042,940 $ 114,894,053
The Notes to the Basic Financial Statements
are an integral part of this statement. 14
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2003
Program Activities
Primary government:
Governmental Activities:
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Interest on Long-term Debt
Total governmental activities
Business -type activities:
Water & Sewer
Drainage Utility
Golf
Other
Total business -type activities
Total primary government
Expenses
$ 4,753,724
1,190,240
11,879,362
2,117,959
14,830,469
3,147,819
37,919,573
12,046,092
812,785
3,616,671
2,593,455
19,069,003
$ 56.988.576
Fees, Fines and
Charges for
Services
Program Revenues
Operating Grants
and Contributions
$ 56,749 $
628,585
1,403,636
3,541,356
5,630,326
12,768,482
626,199
3,078,739
2,603,260
19,076,680
$ 24,707.006 $
GENERAL REVENUES:
Taxes:
Property Taxes, levied for general purposes
Sales Taxes
Other Taxes
Interest on Investments
Contributions from property owners
Gain on Sale of Assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in Net Assets
NET ASSETS, beginning of year, as adjusted
NET ASSETS, end of year
Capital Grants
and Contributions
55,428 $
21,663
30,051
407,897
515,039
1,769,103
1,080.692
Governmental
Activities
Net (Expenses) Revenues and
Changes in Net Assets
Primary Government
Business - Type
Activities
($ 4,641,547) $
( 539,992)
( 10,445,675)
( 2,117,959)
( 10,881.216)
( 3,147,819)
( 31,774,208)
2,849,795 -
515.039 $ 2.849.795 S 31.774.208)
$ 9,941,779
8,865,055
13,074,910
580,245
1,814,257
41,807
102,193
( 1,535,227)
32,885,019
1,110,811
56.740.302
(S
(
(
2,491,493
894,106
537.932)
9,805
2,857,472
2,857.472
Total
4.641.547)
539,992)
10.445.675)
2.117.959)
10,881.216)
3.147,819)
31,774.208)
2.491,493
894,106
537,932)
9,805
2.857.472
28.916.736)
$ S 9,941,779
8,865.055
13.074.910
320,233 900,478
572,065 2.386.322
41.807
102,193
1,535,227
2,427,525 35.312,544
5.284,997 6.395,808
51,757,943 108.498.245
S 57,851,113 S 57,042.940 S 114.894.053
The Notes to Basic Financial Statements
are an integral part of this statement.
15
CITY OF EULESS, TEXAS
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2003
Debt Streets Car Other Total
General Service CIP Rental Tax Governmental Governmental
ASSETS Fund Fund Fund Fund Funds Funds
Deposits and investments $ 6,155,848 $ 409,941 $ 6,188,739 $ 7,940,869 $ 6,045,033 $ 26,740,430
Receivables:
Property taxes 644,541 357,652 - 1,002,193
Accounts receivable and unbilled revenue 1,991,345 17,082 - 1,514,121 61,514 3,584,062
Accrued interest 38,677 - 3,401 37,020 5,211 84,309
Due from other funds - 1,351,684 - 1,351,684
Due from other governments - 602,445 602,445
Prepaids and deposits 11,936 - 4,721 16,657
Inventories, at cost 9,046 9,046
Total assets and other debits $ 8,851,393 $ 784,675 $ 6,192,140 $ 10,843,694 $ 6,718,924 $ 33,390,826
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 839,144 $ - $ 495,509 $ 5,784,071 $ 486,627 $ 7,605,351
Accrued salaries and wages 490,462 - 53,167 543,629
Deferred revenue 1,346,190 354,678 - 1,700,868
Due to other funds - 67,209 67,209
Total liabilities 2,675,796 354,678 495,509 5,784,071 607,003 9,917,057
Fund Balances:
Reserved for:
Debt service 429,997 950,618 1,380,615
Computer 78,815 - 78,815
Development agreements 1,447,612 1,447,612
Betterment 7,930 - 7,930
Library 11,602 11,602
Injured animals 1,363 - 1,363
Historical Preservation 1,245 1,245
9-1-1 Emergency System 22,805 - - 22,805
Technology 13,652 - 13,652
Unreserved:
Designated for:
Contingency 500,000 - - - 500,000
Emergency 500,000 500,000
Undesignated, reported in:
General fund 5,039,430 - - 5,039,430
Special revenue funds - 5,059,623 2,107,989 7,167,612
Capital projects funds 5,696,631 - 1,604,457 7,301,088
Total fund balances 6,175,597 429,997 5,696,631 5,059,623 6,111,921 23,473,769
Total liabilities and fund balances $ 8,851,393 $ 784,675 $ 6,192,140 $ 10,843,694 $ 6,718,924 $ 33,390,826
The Notes to the Basic Financial Statements
are an integral part of this statement. 16
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2003
Total fund balances - governmental funds $ 23,473,769
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. 85,744,846
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.
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.
111,335
( 667,230)
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. 1,276,345
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 1,700,868
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. ( 53,788,820)
Net assets of governmental activities $ 57,851,113
The Notes to the Basic Financial Statements
are an integral part of this statement. 17
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES -GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2003
Revenues:
General property tax
Gross receipts tax
General sales tax
Car rental tax
Fines and fees
Licenses and permits
Interest income
DEA revenues
Intergovernmental
Other revenues
Total revenues
Expenditures:
Current:
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Debt service:
Principal
Interest and fiscal charges
Issuance costs
Capital outlay and maintenance
Total expenditures
Excess (deficiency) of
revenues over expenditures
General
Fund
$ 5,926,651 $ 3,928,839 $
3,279,373
5,578,677
3,377,046
1,009,058
195,346
326,493
290,659
19,983,303
2,644,654
998,869
5,029,333
715,877
11,811,166
21,199,899
( 1,216,596)
Other financing sources (uses)
Proceeds from issuance of bonds
Payment to refunded bond escrow agent -
Operating transfers in 1,402,285
Operating transfers out ( 997,048)
Total other financing sources (uses)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other financing uses (
Fund balances, beginning of year
Fund balances, end of year
405,237
811,359)
6,986,956
$ 6,175,597
Debt
Service
Fund
16,478
Streets
CIP
Fund
Car Other
Rental Tax Governmental
Fund Funds
$ $
154,164
3,286,378
9,641,373
93,070 174,927 86,228
45,997
978,229 79,889 151,631
4,923,546 172,959 9,816,300 3,724,398
1,120,058
112,739
6,466,306 135,964
257,616 -
1,532,069
1,987,838 - 465,000
3,062,699 465,373
85,363 -
2,859,146 1,105, 631
Total
Governmental
Funds
$ 9,855,490
3,433,537
8,865,055
9,641,373
3,377,046
1,009,058
566,049
45,997
326,493
1,500,408
38,620,506
3,764,712
1,111,608
11,631,603
973,493
13,343,235
2,452,838
3,528,072
85,363
3,964,777
5,135,900 3,116,762 6,466,306 4,936,834 40,855,701
( 212,354) ( 2,943,803) 3,349,994 ( 1,212,436) ( 2,235,195)
5,535,295
( 5,492,201)
205,440
248,534
36,180
393,817
$ 429,997
259,266 28,506 2,092,219
( 4,900,677) ( 1,016,177)
259,266
( 2,684,537)
8,381,168
$ 5,696,631
( 4,872,171) 1,076,042
( 1,522,177)
6,581,800
$ 5,059,623
5,535,295
5,492,201)
3,987,716
6,913,902)
2,883,092)
( 136,394) ( 5,118,287)
6,248,315 28,592,056
$ 6,111,921 $ 23,473,769
The Notes to the Basic Financial Statements
are an integral part of this statement. 18
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, 2003
Net change in fund balances - total governmental funds ($ 5,118,287)
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, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items
when debt is first issued, whereas the amounts are deferred and amortized in
the statement of activities. This amount is the net effect of these differences in the
treatment of long-term debt and related items.
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.
3,964,777
1,814,257
( 2,780,130)
2,495,107
( 72,425)
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. 17,382
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.
Current year accretion on capital appreciation bonds is not reflected in the fund financial
statements, but is shown as an increase in the accreted interest on the government -wide
financial statements. 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.
333,286
362,871
93,973
Change in Net Assets of Governmental activities $ 1,110,811
The Notes to the Basic Financial Statements
are an integral part of this statement. 19
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2003
(1 of 2)
Business Type Activities - Enterprise Funds Governmental
Other Total Activities -
Water and Drainage Golf Enterprise Enterprise Internal
Sewer Utility Course Funds Funds Service Funds
ASSETS
Current assets:
Deposits and investments $ 7,532,243 $ 1,900,210 $ 3,930 $2,813,861 $12,250,244 $ 1,459,431
Accounts receivable and unbilled revenue less
allowance for uncollectibles of $4,536 for water
and sewer and $79 for drainage utility 2,037,397 33,383 100,039 9,556 2,180,375 260,094
Accrued interest receivable 44,976 3,322 966 49,264 565
Prepaids and deposits 3,886 - 9,410 17,601 30,897 -
Inventory 60,672 121,056 41,305 223,033
Due from other funds 232,565 - 313,000 545,565
Total current assets 9,911,739 1,936,915 234,435 3,196,289 15,279,378 1,720,090
Restricted assets:
Revenue bond debt service:cash with paying agent 388,326 - 388,326
Revenue bond emergency: short-term investments 500,000 500,000
Capital projects account:
Cash and cash equivalents 22,106 22,106
Accrued interest receivable 1,399 1,399
Short-term investments 2,698,776 2,698,776
Total restricted assets 3,610,607 3,610,607
Bond issuance cost 145,373 166,554 116,003 57,138 485,068
Less accumulated amortization 105,373 86,420 42,873 20,917 255,583
Net bond issuance cost 40,000 80,134 73,130 36,221 229,485
Utility plant and equipment in service, at cost
Land 1,528,966 314,969 348,135 584,532 2,776,602
Building 186,465 - 3,402,783 488,275 4,077,523
Equipment 885,131 1,249,407 174,681 2,309,219 5,282,598
Improvements - 20,091,346 7,779,138 5,619,368 33,489,852
Construction in progress 1,166,584 25,675 78,900 1,271,159
Waterworks and sanitary sewer system 41,962,503 41,962,503
45,729,649 20,431,990 12,779,463 6,945,756 85,886,858 5,282,598
Less accumulated depreciation 19,345,884 5,108,215 2,500,158 1,271,089 28,225,346 2,963,926
Net utility plant and equipment in service 26,383,765 15,323,775 10,279,305 5,674,667 57,661,512 2,318,672
TOTAL ASSETS 39,946,111 17,340,824 10,586,870 8,907,177 76,780,982 4,038,762
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, 2003
(2 of 2)
Business Type Activities - Enterprise Funds Governmental
Other Total Activities -
Water and Drainage Golf Enterprise Enterprise Internal
Sewer Utility Course Funds Funds Service Funds
LIABILITIES
Current liabilities:
Payable from current assets:
Accounts payable 427,421 4,709 239,554 96,922 768,606 272,803
Accrued salaries and wages 205,989 1,538 85,057 27,590 320,174 17,513
Current portion of bonds payable - 165,000 190,000 85,000 440,000
Accrued insurance claims - - 265,727
Deferred revenue 25,873 46,941 35,000 107,814 -
Total current liabilities 659,283 171,247 561,552 244,512 1,636,594 556,043
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,307,973 - 1,307,973
Current portion of bonds payable 225,000 225,000
Accrued interest 31,137 - - 31,137
Bonds payable 3,075,000 1,135,000 8,905,000 1,480,000 14,595,000 -
Due to other funds 1,517,040 313,000 1,830,040
Total liabilities 5,298,393 1,306,247 10,983,592 2,037,512 19,625,744 556,043
NET ASSETS
Invested in capital assets, net of related debt 23,083,765 14,023,775 1,184,305 4,109,667 42,401,512 2,318,672
Restricted for debt service 632,189 - 632,189 -
Unrestricted 10,931,764 2,010,802 ( 1,581,027) 2,759,998 14,121,537 1,164,047
Total net assets(deficit) $ 34,647,718 $ 16,034,577 ($ 396,722) $ 6,869,665 57,155,238 $ 3,482,719
Reconciliaition to government -wide statement of net assets:
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds
( 112,298)
Net assets of business -type activities $ 57,042,940
The Notes to the Basic Financial Statements
are an integral part of this statement. 21
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2003
Operating revenues:
Water service
Sewer service
Drainage fees
Recreation fees
Insurance premiums
Service fees and miscellaneous
Total operating revenues
Business Type Activities - Enterprise Funds Governmental
Other Total Activities -
Water and Drainage Golf Enterprise Enterprise Internal
Sewer Utility Course Funds Funds Service Funds
$ 7,514,610
4,131, 233
1,122,639
12,768,482
$ $
626,199
626,199
3,078,739
3,078,739
350,406
2,252,854
2,603,260
$ 7,514,610 $
4,131, 233
626,199 -
350,406
2,058,782
6,454,232 457,613
19,076,680 2,516,395
Operating expenses:
General and administrative 492,634 492,634 222,520
Water production 4,133,833 4,133,833
Water distribution 621,162 621,162 -
Utility engineering 437,664 437,664
Sewage collection and treatment 1,626,221 - 1,626,221
Nondepartmental 2,101,906 - - 2,101,906 -
Geographic information 247,989 247,989
Service center 769,840 - 769,840
Drainage 291,668 - 291,668
Recreation classes - 276,849 276,849
Golf course - 1,014,935 - 1,014,935 -
Pro Shop - 317,889 317,889
Food and beverage - 831,913 831,913
Conference center 191,817 191,817 -
Cart operations 180,732 - 180,732
Athletic complex - - 180,388 180,388
Softball complex - - 891,306 891,306
Arbor Daze 920,522 920,522 -
Insurance costs - - - 3,165,731
Depreciation 1,206,620 475,267 483,112 241,194 2,406,193 494,987
Amortization 5,000 13,356 3,031 2,721 24,108
Total operating expenses 11,642,869 780,291 3,023,429 2,512,980 17,959,569 3,883,238
Operating income (loss) 1,125,613 ( 154,092) 55,310 90,280 1,117,111 ( 1,366,843)
Nonoperating revenues (expenses)
Impact fees 572,065 572,065
Gain on sale of fixed assets - - 22,679
Investment income 250,452 27,717 1,194 40,870 320,233 14,196
Interest on bonds ( 199,245) ( 32,494) ( 538,431) ( 66,966) ( 837,136) -
Total nonoperating revenues (expenses), net 623,272 ( 4,777) ( 537,237) ( 26,096) 55,162 36,875
Income (loss) before contributions and transfers 1,748,885 ( 158,869) ( 481,927) 64,184 1,172,273 ( 1,329,968)
Capital contributions 1,769,103 1,080,692 2,849,795
Operating transfers in - 500,000 285,999 1,465,771 2,251,770 1,550,959
Operating transfers out ( 800,288) ( 31,977) ( 28,506) ( 15,772) ( 876,543) -
Change in net assets 2,717,700 1,389,846 ( 224,434) 1,514,183 5,397,295 220,991
Net assets, beginning of year 31,573,696 2,384,432 ( 172,288) 5,355,482 3,261,728
Prior period adjustment 356,322 12,260,299
Net assets, end of year $ 34,647,718 $ 16,034,577 ($ 396,722) $ 6,869,665 $ 3,482,719
Reconciliaition to government -wide statement of net assets:
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds ( 112,298)
Change in net assets of business -type activities $ 5,284,997
The Notes to the Basic Financial Statements
are an integral part of this statement. 22
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2003
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 $ 12,670,626 $ 628,957 $ 3,089,192 $ 2,630,551 $ 19,019,326 $
Cash received from other funds for services - - 2,406,381
Cash payments to suppliers for goods and services ( 8,260,090) ( 274,405) ( 1,064,617) ( 1,769,376) ( 11,368,488) ( 2,243,502)
Cash payments to employees for services ( 2,922,277) ( 21,350) ( 1,299,331) ( 494,069) ( 4,737,027) ( 123,506)
Cash payments for loss claims - ( 532,085)
Cash payments to other funds for services ( 33,941) - ( 226,174) ( 260,115)
Net cash provided by (used in) operating activities 1,454,318 333,202 499,070 367,106 2,653,696 ( 492,712)
NONCAPITAL FINANCING ACTIVITIES
Operating transfer in
Operating 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
Proceeds from sale of fixed assets
Purchase of utility plant and equipment in service
Net cash used in capital
and related financing activities
500,000 285,999 1,481,771 2,267,770
( 800,288) ( 31,977) ( 28,506) ( 31,772) ( 892,543)
1,550,959
( 800,288) 468,023 257,493 1,449,999 1,375,227 1,550,959
572,065
( 199,245)
( 290,000)
(
1,186,142)
51,974) ( 533,757) ( 78,527)
160,000) ( 245,000) ( 80,000)
47,674) ( 197,894) ( 121,203)
572,065
863,503)
775,000) -
37,118
1,552,913) ( 1,261,604)
1,103,322) ( 259,648) ( 976,651) ( 279,730) ( 2,619,351) ( 1,224,486)
INVESTING ACTIVITIES
Proceeds from sale of investment securities 677,664 - 677,664
Interest received on investments 298,526 29,306 1,194 39,948 368,974 16,869
Net cash provided by
(used in) investing activities 976,190 29,306 1,194 39,948 1,046,638 16,869
Net change in cash and cash equivalents 526,898 570,883 ( 218,894) 1,577,323 2,456,210 ( 149,370)
Cash and cash equivalents, beginning of year 7,415,777 1,329,327 222,824 1,236,538 10,204,466 1,608,801
Cash and cash equivalents, end of year $ 7,942,675 $ 1,900,210 $ 3,930 $ 2,813,861 $ 12,660,676 $ 1,459,431
The Notes to Basic Financial Statements
are an integral part of this statement. 23
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2003
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation and amortization
Change in assets and liabilities:
Accounts receivable and unbilled revenue
Due from other funds
Prepaids and deposits
Inventory
Accounts payable
Accrued salaries and wages
Accrued insurance claims
Due to other funds
Customer and escrow deposits
Deferred revenue
Net cash provided by operating activities
Noncash investing, capital and financing activities
Developer contributed assets
Reconciliation of cash to balance sheet:
Cash - current
Cash - restricted assets
Cash and cash equivalents
Restricted assets:
Cash
Investments
Total restricted assets
Water and
Sewer
$ 1,125,613
1,211,620
( 153,793)
23,352
159,876
2,122
( 1,021,975)
51,566
63,737
7,800)
Business Type A
Drainage
Utility
ctivities - Enterprise Funds
Other
Golf Enterprise
Course Funds
($ 154,092) $ 55,310 $
488,623
2,758
5,625)
1,538
(
(
$ 1,454,318 $ 333,202 $
$ 1,769,103 $ 1,080,692 $
$ 7,532,243 $ 1,900,210 $
410,432
$ 7,942,675 $ 1,900,210 $
$ 410,432 $
3,200,175
$ 3,610,607 $
Total
Enterprise
Funds
Governmental
Activities -
Internal
Service Funds
90,280 $ 1,117,111 ($ 1,366,843)
486,143 243,915
19,613
4,877
4,770)
161,886
17,813
6,884)
9,892)
5,662)
18,196
2,978
226,174)
15,628) 34,175
499,070 $ 367,106
2,430,301
138,306)
23,352
154,861
8,310)
847,518)
73,895
( 226,174)
63,737
10,747
494,987
137,477)
208,796
147,332
2,170
158,323
$ 2,653,696 ($ 492,712)
$ 2,849,795
3,930 $ 2,813,861 $ 12,250,244
410,432
3,930 $ 2,813,861 $ 12,660,676
$ 410,432
3,200,175
$ 3,610,607
The Notes to Basic Financial Statements
are an integral part of this statement. 24
CITY OF EULESS, TEXAS
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2003
Assets:
Deposits and investments
Total assets
Liabilities:
Due to other entities
Total liabilities
Agency
Funds
$ 2,485,110
$ 2,485,110
$ 2,485,110
$ 2,485,110
The Notes to Basic Financial Statements
are an integral part of this statement. 25
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.
26
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.
27
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.
Debt Service Fund -
The Debt Service Fund is used to account for the accumulation of financial resources
for the payment of principal, interest and related costs on general long-term debt paid
primarily from taxes levied by the City. The fund balance of the Debt Service Fund is
reserved to signify the amounts that are restricted exclusively for debt service
expenditures.
Streets Capital Improvements Capital Project Fund -
The Streets Capital Improvements Fund is used to account for the construction of
improvements to various streets and drainage projects.
28
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Basis of Presentation - continued
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:
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.
29
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Measurement Focus and Basis of Accounting - continued
The 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
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.
Budgetary Data
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.
30
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Budgetary Data - continued
5. A budget is legally adopted for the General Fund and Special Revenue Funds on a
basis consistent with accounting principles generally accepted in the United States of
America. Formal budgetary integration is employed as a management control device
during the year for the General Fund and Special Revenue Funds. Appropriations and
encumbrances lapse at year-end.
6. Formal budgetary integration is not employed for the Debt Service Funds because
effective budgetary control is alternatively achieved through general obligation bond
indenture provisions.
7. Budgetary data for the Capital Projects Funds has not been presented in the
accompanying basic financial statements as such funds are budgeted over the life of
the respective project and not on an annual basis. Accordingly, formal budgetary
integration of the Capital Projects Funds is not employed and comparison of actual
results of operations to budgetary data for such funds is not presented.
8. Appropriated budgets for the Proprietary Funds are also adopted but have not been
presented since reporting on such budgets is not legally required.
The 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.
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 $410,432 at September 30,
2003) to be cash equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or Tess
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.
31
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
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 $100 of assessed valuation ($.497254 per $100 last year) and
assessed valuation is approximately 100% of estimated value.
Inventories
Inventories, which are recognized as expenditures/expenses as they are consumed, are
stated at cost (first -in, first -out method) for the General Fund and Enterprise Funds.
Inventories consist primarily of expendable supplies for the General Fund and pro shop
merchandise for the Enterprise Funds.
Prepaid Items
Prepaid balances are for payments made by the City in the current year to provide services
occurring in the subsequent fiscal year.
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
Quasi -external transactions 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, except quasi -external transactions and
reimbursements, 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
32
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Capital Assets - continued
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
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 retained earnings and 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.
33
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Nature and Purpose of Reservations and Designations of Fund Equity - continued
i. Reserved for technology represents contributions which must be used to
upgrade the city communications systems.
2. Designations — used to denote that portion of fund equity, which is council
established for future use.
a. Designated for emergency represents amounts restricted by council for use in
extreme emergencies. Expenditures must be council approved.
b. Designated for contingency represents amounts restricted by council for use
when extraordinary contingencies arise that have not been budgeted.
Expenditures must be council approved.
3. Unreserved, undesignated — used to denote that portion of fund equity, which is
available for appropriation.
Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in
capital assets, net of related debt consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowing used for the
acquisition, construction or improvements of those assets, 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.
Implementation of New Accounting Principles
For fiscal year 2003, the City has implemented GASB Statement No. 34 (GASB 34), "Basic
Financial Statements — Management's Discussion and Analysis — for State and Local
Governments", GASB Statement No. 37 (GASB 37), "Basic Financial Statements — and
Management's Discussion and Analysis — for State and Local Governments: Omnibus"
and GASB Statement No. 38 (GASB 38), "Certain Financial Statement Disclosures". At
October 1, 2002, there was no effect on fund balance as a result of implementing GASB 37
and GASB 38.
GASB 34 creates new basic financial statements for reporting on the City's financial
activities. The financial statements now include government -wide financial statements
prepared on an accrual basis of accounting and fund financial statements which present
information for individual major funds rather than by fund type. Non -major funds are
presented in total in one column.
GASB 34 also requires the City to capitalize infrastructure. Infrastructure networks
recorded include streets, sidewalks, drainage and street right of ways. The City utilized a
weighted average age calculation for estimating the historical cost of the infrastructure
networks recorded during 2003. Street right of way historical cost was estimated based on
land values in the City at the time the right of way was acquired.
34
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — continued
Implementation of New Accounting Principles -- continued
The government -wide financial statements split the City programs between governmental
and business -type activities. The beginning net asset amount for the business -type
activities equals fund equity of the enterprise funds from last year. The beginning net asset
amount for governmental activities reflects fund balance for governmental funds at
October 1, 2002 adjusted for the conversion to the accrual basis of accounting.
As a result of implementing GASB 34, the previously reported governmental fund balance
reconciles to net assets of the governmental activities as of October 1, 2002 as follows:
Fund balance, October 1, 2002, as previously reported
Net capital assets and infrastructure
Long-term liabilities
Accrued interest
Internal service assets
Deferred revenue
Net Assets, October 1, 2002, full accrual
NOTE 2. DEPOSITS AND INVESTMENTS
$28,592,057
80,427,270
( 56,463,038)
( 684,612)
3,261,730
1,606,895
$5fi 740,302
At September 30, 2003, the bank balances were $799,693 and the ledger balances of the
City's book cash deposits were $70,680. Of the bank balances, $799,693 were protected by
federal depository insurance or by collateral held by the City's agent in the City's name.
At September 30, 2003, 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
$32,433,507 $
3
Carrying
Amount
$32,433,507
58
6,284,983
7,755,195
$46. 473 743
Fair
Value
$32,477,877
58
6,284,983
7,755,195
$46.518 11
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.
35
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2003, 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
Machinery and equipment
Total internal service
assets being depreciated
Accumulated depreciation:
Machinery and equipment
Total internal service funds
capital assets, net
Governmental activities
capital assets, net
Business -type activities:
Capital assets not being
depreciated
Land
Construction in progress
Total capital assets not
being depreciated
Balance
September 30,
2002
$ 20,343,003
8.530.362
Adjustments/
Increases Decreases Transfers
$ 315,664 $ - $
3.030.806
28.873.365 3.346.470
34,023,771
3,341,412
30,954,719
4.415.310
26,293
2,114,485
291.786
72.735.212 2.432.564
$ 4,076,296
1,267,306
13,832,894
2.004.811
$ 1,000,261 $
135,501
1,090,627
553.741
21.181,307 2.780.130
51.553.905 ( 347.566)
80.427,270 2.998.904
$ 4.324.138
4,324,138
2.757.640
$ 1.566.498
$_819_93.Z6.8
$ 1.261.604 $ 303.144 $
1,261,604 303,144
494,987 288.701
$ 766,617 $ 14.443 $
L3,765 521 $ 14.443 $
$ 2,550,633 $ 22,000 $
316,289 1.127.818
2.866.922 1.149.818
$ 203,969
f 172.948)
31.021
Balance
September 30,
2003
$ 20,658,667
11.561.168
32,219,835
34,023,771
3,367,705
33,069,204
4.707.096
75.167.776
$ 5,076,557
1,402,807
14,923,521
2.558.552
23.961,437
51,206.339
83,426.174
$ 5.282.598
5,282,598
2,963,926
$ 2,318,672
$_85.244 846
$ 2,776,602
1.271,159
4.047.761
36
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS - continued
Balance Balance
September 30, Adjustments/ September 30,
2002 Increases Decreases Transfers 2003
Capital assets being
depreciated:
Buildings 4,077,523 - - 4,077,523
Equipment 2,244,387 87,112 22,280 - 2,309,219
Improvements and sanitary
sewer system 55.599.070 3.165,773 16,687,512 75.452.355
Total capital assets
being depreciated 61.920.980 3.252.885 22,280 16.687.512 81.839.097
Accumulated depreciation:
Buildings 627,914 123,655 - - 751,569
Equipment 1,091,840 269,762 17,285 - 1,344,317
Improvements and sanitary
sewer system 20.014.772 2,012,776 - 4.101.912 26.129.460
Total accumulated
depreciation 21.734.526 2.406.193 17.285 4,101,912 28,225.346
Business -type activities
capital assets, net $.8 053.17f S-1..996.610 £ 4.99a $12.f16.621 1_ 5Lfi61.612
Depreciation expense was charged as direct expense to programs of the primary government
as follows:
Governmental activities:
General and administrative $ 148,162
Public safety 1,001,292
Development services 128,101
Culture and recreation 804,483
Highways and streets 1,193,079
Total depreciation expense -Governmental activities $3,275,117
Business -type activities:
Water and sewer $1,206,620
Drainage Utility 475,267
Golf course 483,112
Other 241,194
Total depreciation expense -Business -type activities $2.406.193
Outstanding commitments at September 30, 2003, under authorized construction contracts
were approximately $3,042,482. These outstanding commitments are to be financed by
available deposit and investment balances, which include proceeds from previous bond
issuances.
37
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT
At September 30, 2003, bonds payable consisted of the following individual issues:
Governmental Business-tvpe
$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%. $ $ 245,000
$2,716,586 Series 1985-A, General Obligation
Refunding Bonds, dated March 1, 1993, due in annual
installments through 2004, bearing interest rates of
7.85% to 9.20%. 106,815
$8,855,000 Series 1994, Sales Tax Revenue Bonds,
dated August 9, 1994, due in annual installments
through 2004, bearing interest rates of 5.20% to 8.10%.
$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, due in annual installments through 2027,
bearing interest rates of 5.25% to 5.90%.
$2,000,000 Series 1995, Tax and Softball Surplus
Certificates of Obligation, dated October 24, 1995, due
in annual installments through 2016, bearing interest
rates of 4.10% to 5.25%.
$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%.
$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%.
380,000
450,000
1,125, 000
4,760,000
$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 7.00%. 885,000
9,095,000
1,565,000
38
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT - continued
$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%.
$10,290,000 Taxable Series 2000, Revenue
Certificates of Obligation, dated April 1, 2000, due in
annual installments through 2025, bearing interest rates
of 8.00% to 8.125%.
$8,600,000 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%.
$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%.
Governmental Business -type
4,045,000
9,875,000
7,995,000
3,055,000
5,740,000
1,300,000
5,215,000
6,470,000
5,490,000
$52,536,815 $15,260,000
39
CITY OF EULESS, TEXAS
NOTES TO 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, 2003:
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 Type Activities
Water and Sewer Revenue
Bonds
Drainage Utility Revenue Bonds
Tax and Golf Course
Surplus Revenue
Certificates of Obligation
Tax and Softball World Park
Surplus Revenue
Certificates of Obligation
Total business type activities
Balance
Beginning
of Year Increases
$12,409,653 $5,490,000
32,950,000
9,325,000
996,521
781.864
156,463,08 $5 631211 $8.305.935
$ 3,590,000 $
1,460,000
9,340,000
1.645.000
16.035.000
Total government -wide activities $72,498,028
Balance Due
End Within
Decreases of Year One Year
$2,517,838 $15,381,815 $1,056,815
4,655,000 28,295,000 1,060,000
465,000 8,860,000 550,000
235,934 ( 235,934) ( 19,065)
72,425 1,068,946
69.292 432.163 418.993 418.993
1517 8 8.820 $ 3, 0 66.743
$290,000 $3,300,000 $225,000
160,000 1,300,000 165,000
245,000 9,095,000 190,000
80.000
775.000
$5,831.,71l $9,080,
1.565.000
15.260.000
$69 Q48 824
85.000
665.000
$3,731,743
On January 15, 2003, the City issued $5,490,000 in General Obligation Refunding Bonds with
an average interest rate of 3.40 percent to advance refund $1,560,000 of outstanding 1993
Series bonds with an average interest rate of 5.35 percent and $3,625,000 of outstanding 1995
Revenue Certificates of Obligation with an average interest rate of 5.60 percent. The net
proceeds of $5,492,201 ($5,490,000 par amount of bonds plus Debt Service Fund contribution
of $61,853 plus $45,295 of premium paid on bonds less $104,947 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 1993 and 1995 Series bonds. As a result, the 1993 and 1995 Series bonds
are considered defeased and the liability for those bonds has been removed from long-term
debt.
The City completed the advance refunding to reduce its total debt service payments over the
next 11 years by $317,543 and to obtain an economic gain (difference between the present
values of the old and new debt service payments) of $280,520.
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, 2003.
40
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT - continued
Annual Requirements to Retire Debt Obligations
The annual aggregate maturities for each bond type for the years subsequent to
September 30, 2003, are as follows:
General Obligation Bonds:
Governmental Activities Business Type Activities
Principal Interest Principal Interest Total
2004 $ 1,056,815 $1,131,651 $ - $ - $ 2,188,466
2005 695,000 651,897 - 1,346,897
2006 965,000 614,139 - 1,579,139
2007 1,015,000 570,776 - - 1,585,776
2008 895,000 530,557 - 1,425,557
2009-2013 4,220,000 2,146,170 6,366,170
2014-2018 4,460,000 1,120,496 5,580,496
2019-2023 2.075.000 183,515 - 2,258,515
$15.381.815 $6.949.201 $ .$_. - $22.331.018
Certificates of Obligation:
Governmental Activities Business Type Activities
Principal Interest Principal Interest Total
2004 $ 1,060,000 $ 1,783,774 $ 275,000 $ 597,050 $ 3,715,824
2005 1,125,000 1,715,635 290,000 583,270 3,713,905
2006 955,000 1,650,151 305,000 568,651 3,478,802
2007 1,020,000 1,586,401 320,000 553,188 3,479,589
2008 1,085,000 1,517,964 335,000 536,870 3,474,834
2009-2013 6,550,000 6,539,367 1,990,000 2,396,343 17,475,710
2014-2018 8,810,000 4,329,587 2,275,000 1,795,130 17,209,717
2019-2023 5,950,000 1,771,808 2,395,000 1,168,944 11,285,752
2024 1,740,000 214,908 2.475.000 375.832 4,805,740
$28.295.000
Revenue Bonds:
$21.109.595 $10.660.000 $8.575.278 $68.639.873
Governmental Activities Business Type Activities
Principal Interest Principal Interest Total
2004 $ 550,000 $ 386,191 $ 390,000 $230,203 $ 1,556,394
2005 585,000 357,971 410,000 212,765 1,565,736
2006 605,000 337,655 300,000 193,427 1,436,082
2007 620,000 315,127 315,000 179,477 1,429,604
2008 650,000 290,767 330,000 165,202 1,435,969
2009-2013 3,700,000 1,019,814 1,225,000 617,224 6,562,038
2014-2018 2,070,000 216,596 1,090,000 344,656 3,721,252
2019-2023 80.000 4.680 540.000 47.150 671.830
$8,860.000 $2.928.801. $4.600.000 $i_ 990 1 q4 $18.378.905
41
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT - continued
General Obligation Bonds authorized and unissued as of September 30, 2003, amounted to
$3,200,000. Water and Sewer Revenue Bonds authorized and unissued as of September
30, 2003, 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.
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, 2003. 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).
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 $4,775,000 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.
42
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
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 Pavable Fund Amount
Water and Sewer Golf Course $ 232,565
Car Rental Golf Course 1,284,475
Softball Complex Athletic Complex 313,000
Car Rental Half -Penny Sales Tax Fund 67,209
$1.897.249,
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, 2003 will be paid during the next fiscal year end.
Interfund transfers:
Transfers In
General Fund
General Fund
General Fund
Debt Service Fund
Streets CIP Fund
Car Rental Tax Fund
Police Department Grant Funds
Half -Penny Sales Tax CIP Fund
Car Rental CIP Fund
Car Rental CIP Fund
Drainage Utility Fund
Golf Course Fund
Golf Course Fund
Golf Course Fund
Softball Complex Fund
Athletic Complex Fund
Athletic Complex Fund
Equipment Replacement 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
Car Rental CIP Fund
Golf Course Fund
General Fund
Half -Penny Sales Tax Fund
Half -Penny Sales Tax Fund
Car Rental Tax Fund
Car Rental Tax Fund
General Fund
Hotel/Motel Tax Fund
Half -Penny Sales Tax Fund
Athletic Complex Fund
Half -Penny Sales Tax Fund
Car Rental Tax Fund
Car Rental Tax Fund
General Fund
General Fund
Water and Sewer Fund
Amount
$ 730,020
640,288
31,977
205,440
259,266
28,506
25,477
25,000
107,484
1,934,258
500,000
11,571
176,645
97,783
15,771
350,000
1,100, 000
430,959
650,000
310,000
160,000
•7 790,445
43
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 7. INTERFUND TRANSFERS - continued
Transfers are primarily used to move funds from:
• The Car Rental Tax Fund, the Water and Sewer Fund and the Drainage Utility Fund to the
General Fund for general and administrative charges.
• The Car Rental Tax Fund to the Debt Service Fund for principal and interest on 2001
bonds.
• The Car Rental CIP Fund, the Car Rental Tax Fund, and the Half -Penny Sales Tax Fund
to the Streets CIP Fund, the Car Rental CIP Fund, the Drainage Utility Fund and the
Athletic Complex Fund for capital improvements.
• The Golf Course Fund and the Athletic Complex 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 Half -Penny Sales Tax Fund to the Car Rental CIP Fund for funding artwork at City
Hall.
• 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 Half -Penny Sales Tax Fund to the Golf Course Fund for reimbursement of parks
equipment.
• The Car Rental Tax Fund to the Equipment Replacement Fund for equipment purchases.
• The General Fund to the Insurance Fund to cover unusually large claims.
• 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.
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
$100,000 and aggregate claims in excess of $1,925,088. During fiscal 2003, the City and
City's employees contributed approximately $1,264,000 and $543,000, respectively, for
medical coverage. The City's contributions are accounted for as quasi -external
transactions. 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
44
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 8. RISK MANAGEMENT - continued
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
reserves and administrative costs of the program. An excess coverage insurance policy
covers individual claims in excess of $300,000. During 2003, the City contributed
approximately $252,000 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
2003 2002
$ 107,404 $ 76,281
1,817,117 1,383,084
2,190,248 1.351.961
$ 265.727 $ 107,404
The City had no significant reductions in insurance coverage from the year ended
September 30, 2002. Settlement amounts have not exceeded insurance coverage for the
year ended September 30, 2003 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 774 administered by TMRS, an agent
multiple -employer public employee retirement system. Each of the 774 Municipalities
have an annual, individual actuarial valuation performed. All assumptions for the
December 31, 2002 valuations are contained in the 2002 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
45
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 9. EMPLOYEE RETIREMENT SYSTEM - continued
Plan Description - continued
employee's accumulated contributions with interest and the employer -financed monetary
credits with interest were used to purchase an annuity.
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:
Matching Ratio (City to Employee):
A member is vested after
7%
2-1
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. (i.e.
December 31, 2002 valuation is effective for rates beginning January 2004)
Schedule of Actuarial Liabilities and Funding Progress
Actuarial Valuation Date 12/31/02
Actuarial Value of Assets $47,212,730
Actuarial Accrued Liability $57,449,068
Percentage Funded 82.2%
Unfunded Actuarial Accrued Liability (UAAL) $10,236,338
Annual Covered Payroll $16,788,857
UAAL as a Percentage of Covered Payroll 61.0%
46
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 9. EMPLOYEE RETIREMENT SYSTEM - continued
Schedule of Actuarial Liabilities and Funding Progress — continued
Net Pension Obligation (NPO) at the Beginning of Period
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:
Year
2000
2001
2002
Annual
Pension Cost
(APC)
$ 1,971,084
2,125,493
2,240,904
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
NOTE 10. DEFICIT NET ASSETS
Percentage
of APC
Contributed
100%
100
100
A deficit in net assets of $211,482 exists in the Insurance Fund.
$
$ 2,240,904
$ 2,240,904
( 2,240,904)
Net Pension
Obligation
Unit Credit
Level Percent of Payroll
25 years — Open Period
Amortized Cost
8%
None
None
None
47
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2003, the following individual funds had an excess of expenditures
over appropriations:
Police Drug Enforcement Fund ($34,259)
DEA Task Force Fund ( 5,979)
Police Department Grant Funds ( 35,945)
NOTE 12. PRIOR PERIOD ADJUSTMENT
Subsequent to issuance of the City's general purpose financial statements for the year
ended September 30, 2002, the City took a physical inventory of all land, buildings,
equipment, improvements, and waterworks and sanitary sewer system fixed assets. Based
on the physical inventory, it was determined that adjustments were needed in order to
properly reflect the book values and useful lives of the fixed assets. Accordingly, an
adjustment was made to correct the beginning balances reported in previous financial
statements, which had the affect of increasing net assets and increasing the total net utility
plant and equipment in service in the Drainage Utility Fund by $12,260,299, and by
$356,322 in the Water and Sewer Fund.
48
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2003
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
12/31/00 $ 42,116,506 $ 50,370,674 83.61%. $ 8,254,168 $ 14,189,470 58.17%
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%
49
CITY OF EULESS, TEXAS
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
YEAR ENDED SEPTEMBER 30, 2003
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
Budgeted Amounts
Original Final
$ 5,695,836
37,810
5,733,646
510,830
1,597,021
145,601
223,490
110,850
602,025
97,350
3,287,167
5,683,826
2,443,205
225,000
13,670
266,318
34,570
19,050
196,875
3,198,688
239,340
229,135
84,200
552,675
280,000
293,116
105,000
15,000
91,672
211,672
Total revenues 19,240,790
$ 5,695,836
37,810
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
$ 5,867,354 $ 171,518
59,297 21,487
5,733,646 5,926,651 193,005
510,830 467,903 ( 42,927)
1,597,021 1,516,031 ( 80,990)
145,601 197,915 52,314
223,490 231,089 7,599
110,850 130,868 20,018
602,025 640,288 38,263
97,350 95,279 ( 2,071)
3,287,167 3,279,373 ( 7,794)
5,683,826 5,578,677 ( 105,149)
2,443,205 2,476,830
225,000 324,130
13,670 17,236
266,318 297,549
34,570 38,624
19,050 16,311
196,875 206,366
3,198,688 3,377,046
239,340 612,274
229,135 308,727
84,200 88,057
552,675 1,009,058
280,000 195,346
293,116 326,493
105,000
15,000
91,672
100,276
15,507
174,876
211,672 290,659
19,240,790 19,983,303
33,625
99,130
3,566
31,231
4,054
( 2,739)
9,491
178,358
372,934
79,592
3,857
456,383
( 84,654)
33,377
( 4,724)
507
83,204
78,987
742,513
50
CITY OF EULESS, TEXAS
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
YEAR ENDED SEPTEMBER 30, 2003
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
REVENUES: Original Final Basis (Negative)
EXPENDITURES:
Current:
Culture and recreation 2,727,607 2,727,607 2,644,654 82,953
Development services 1,026,029 1,026,029 998,869 27,160
General and administrative 5,514,208 5,514,208 5,029,333 484,875
Highways and streets 758,052 758,052 715,877 42,175
Public safety 11,835,710 11,835,710 11,811,166 24,544
Total expenditures 21,861,606 21,861,606 21,199,899 661,707
Excess (deficiency) of
revenues over expenditures ( 2,620,816) ( 2,620,816) ( 1,216,596) 1,404,220
Other financing sources (uses):
Operating transfers in 1,363,045 1,363,045 1,402,285 39,240
Operating transfers out ( 370,570) ( 970,570) ( 997,048) ( 26,478)
Total other financing
sources (uses) 992,475 392,475 405,237 12,762
Excess (deficiency) of
revenues and other financing sources
over expenditures and other
financing uses ( 1,628,341) ( 2,228,341) ( 811,359) 1,416,982
Fund balance, beginning of year 6,986,956 6,986,956 6,986,956 -
Fund balance, end of year $ 5,358,615 $ 4,758,615 $ 6,175,597 $ 1,416,982
51
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
CAR RENTAL TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2003
Revenues:
Gross receipts tax
Interest income
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
$ 10,500,000 $ 10,500,000 $ 9,641,373 ($ 858,627)
200,000 200,000 174,927 ( 25,073)
Total revenues 10,700,000 10,700,000 9,816,300 ( 883,700)
Expenditures:
General and administrative 7,200,000 7,114,218 6,466,306 647,912
Capital outlay and maintenance
Total expenditures 7,200,000 7,114,218 6,466,306 647,912
Other financing sources (uses):
Operating transfers in
Operating transfers out
189,250 189,250 28,506 ( 160,744)
( 4,439,969) ( 4,900,677) ( 4,900,677)
Total other
financing sources (uses) ( 4,250,719) ( 4,711,427) ( 4,872,171) ( 160,744)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses
Fund balance, beginning of year
Fund balance, end of year
( 750,719) ( 1,125,645) (1,522,177) ( 396,532)
6,581,800 6,581,800 6,581,800
$ 5,831,081 $ 5,456,155 $5,059,623 ($ 396,532)
52
INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
NON MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to
expenditures for particular purposes.
Hotel/Motel Fund - to account for the operations and expenditures for which hotel/motel
occupancy taxes are used. Occupancy tax revenues are used primarily for advertising and
promotion of the City.
Police Drug Enforcement Fund - to account for proceeds from sale of assets seized in connection
with drug arrests. Revenues are used solely for police department expenditures.
Half -Penny Sales Tax Fund - to account for the sales tax revenues and expenditures of the
Euless Development Corporation, a component unit of the City of Euless. The expenditures of
the half -penny sales tax can only be spent on parks, library, debt service, and economic
development activities within the City of Euless.
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.
Police Department Grant Funds - to account for grant revenues received by the police
department which must be spent in accordance with the grant provisions.
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.
53
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2003
Special Revenue Funds
Police Crime
Drug Half DEA Control and Police
Hotel/ Enforce- Penny Task Prevention Department
Motel ment Sales Tax Force District Grant
Fund Fund Fund Fund Fund Funds
ASSETS
Total
Deposits and investments $ 117,904 $ 215,451 $ 1,824,181 $ 3,404 $ 410,269 $ 27,295 $ 2,598,504
Accounts receivable 44,520 2,450 - 14,544 61,514
Accrued interest receivable 274 1,035 1,309
Prepaids 4,721 4,721
Due from other governments - 414,088 - 188,357 602,445
Total assets
LIABILITIES AND FUND BALANCES
$ 162,424 $ 217,901 $ 2,243,264 $ 3,404 $ 599,661 $ 41,839 $ 3,268,493
LIABILITIES:
Accounts payable $ 2,225 $ 914 $ 47,089 $ 111 $ 37,926 $ $ 88,265
Accrued salaries and wages - 20,652 - 30,828 1,687 53,167
Due to other funds - 67,209 - 67,209
Total liabilities 2,225 914 134,950 111 68,754 1,687 208,641 •
Fund Balances:
Reserved:
Reserve for debt service - 950,618 - 950,618
Reserve for historical preservation 1,245 1,245
Reserve for development agreements - - - - -
Unreserved, undesignated 158,954 216,987 1,157,696 3,293 530,907 40,152 2,107,989
Total fund balances 160,199 216,987 2,108,314 3,293 530,907 40,152 3,059,852
Total liabilities and fund balances $ 162,424 $ 217,901 $ 2,243,264 $ 3,404 $ 599,661 $ 41,839 $ 3,268,493
54
Capital Projects Funds
Park
Improvements Half -Penny Police General
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 $ 300,629 $ 1,444,154 $ 1,459,831 $ 147,169 $ 41,778 $ 3,446,529 $ 6,045,033
61,514
111 3,458 333 3,902 5,211
4,721
602,445
$ 7,998 $ 44,970 $ 300,740 $ 1,447,612 $ 1,460,164 $ 147,169 $ 41,778 $ 3,450,431 $ 6,718,924
$ $ $ 192 $
$ 398,170 $
$ 398,362 486,627
53,167
67,209
192 398,170 - 398,362 607,003
950,618
1,245
- - 1,447,612 - - 1,447,612 1,447,612
7,998 44,970 300,548 1,061,994 147,169 41,778 1,604,457 3,712,446
7,998 44,970 300,548 1,447,612 1,061,994 147,169 41,778 3,052,069 6,111,921
$ 7,998 $ 44,970 $ 300,740 $ 1,447,612 $ 1,460,164 $ 147,169 $ 41,778 $ 3,450,431 $ 6,718,924
55
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2003
Special Revenue Funds
Police Crime
Drug Half DEA Control and Police
Hotel/ Enforce- Penny Task Prevention Department
Motel ment Sales Tax Force District Grant
Fund Fund Fund Fund Fund Funds
Totals
Revenues:
Gross receipts tax $ 154,164 $ $ - $ $ - $ $ 154,164
General sales tax - 2,231,471 1,054,907 3,286,378
Interest income 1,901 2,592 22,714 22 6,665 313 34,207
DEA revenues 38,882 7,115 45,997
Other revenues 78 - 14,041 129,327 143,446
Total revenues 156,143 41,474 2,268,226 7,137 1,061,572 129,640 3,664,192
Expenditures:
Culture and recreation 920,335 920,335
Development services 112,739 112,739
General and administrative 47,408 76,285 123,693
Highways and streets - - -
Public safety 39,259 7,237 1,303,055 182,518 1,532,069
Debt service
Principal 465,000 465,000
Interest and fiscal charges 465,373 465,373
Capital outlay
and maintenance -
Total expenditures
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
47,408 39,259
( 176,645)
( 176,645)
2,039,732 7,237 1,303,055
( 580,266)
182,518 3,619,209
25,477
25,477
( 756,911)
( 580,266) - 25,477 ( 731,434)
( 67,910) 2,215 ( 351,772) ( 100) ( 241,483) ( 27,401) ( 686,451)
Fund balance,
beginning of year 228,109
214,772 2,460,086
3,393 772,390
67,553 3,746,303
Fund balance, end of year $ 160,199 $ 216,987 $ 2,108,314 $ 3,293 $ 530,907 $ 40,152 $ 3,059,852
56
Capital Projects Funds
Park
Improvements Half -Penny Police General
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
$ - $ $ $ $ $ $ $ 154,164
- - - - 3,286,378
4,925 23,870 22,410 309 507 52,021 86,228
- - 45,997
8,185 8,185 151,631
4,925 23,870 22,410 309 8,692 60,206 3,724,398
110,343 30,137 59,243 199,723 1,120,058
- - 112,739
12,271 12,271 135,964
1,532,069
465,000
465,373
1,105,631 1,105,631 1,105,631
110,343 1,117,902 30,137 59,243 1,317,625 4,936,834
25,000 - 2,041,742 2,066,742 2,092,219
( 259,266) - - ( 259,266) ( 1,016,177)
25,000 ( 259,266) 2,041,742 - 1,807,476 1,076,042
( 80,418) ( 235,396) 946,250 ( 29,828) ( 50,551) 550,057 ( 136,394)
7,998 44,970 380,966 1,683,008 115,744 176,997 92,329 2,502,012 6,248,315
$ 7,998 $ 44,970 $ 300,548 $ 1,447,612 $ 1,061,994 $ 147,169 $ 41,778 $ 3,052,069 $ 6,111,921
57
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, 2003
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues:
Gross receipts tax $ 200,000 $ 200,000 $ 154,164 ($ 45,836)
Other revenues - - 78 78
Interest income 7,000 7,000 1,901 ( 5,099)
Total revenues 207,000 207,000 156,143 ( 50,857)
Expenditures:
General and administrative 50,000 50,000 47,408 2,592
Total expenditures 50,000 50,000 47,408 2,592
Other financing sources (uses):
Operating transfers out ( 176,645) ( 176,645) ( 176,645)
Total other
financing sources (uses) ( 176,645) ( 176,645) ( 176,645)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses
Fund balance, beginning of year
Fund balance, end of year
( 19,645) ( 19,645) ( 67,910) ( 48,265)
228,109 228,109 228,109
$ 208,464 $ 208,464 $ 160,199 ($ 48,265)
58
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, 2003
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues:
DEA revenues $ - $ $ 38,882 $ 38,882
Interest income 5,000 5,000 2,592 ( 2,408)
Total revenues 5,000 5,000 41,474 36,474
Expenditures:
Public safety 5,000 5,000 39,259 ( 34,259)
Total expenditures 5,000 5,000 39,259 ( 34,259)
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 - 2,215 2,215
Fund balance, beginning of year 214,772
214,772 214,772
Fund balance, end of year $ 214,772 $ 214,772 $ 216,987 $ 2,215
59
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, 2003
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues:
General sales tax $ 2,273,530 $ 2,273,530 $ 2,231,471 ($ 42,059)
Other revenues - - 14,041 14,041
Interest income 40,000 40,000 22,714 ( 17,286)
Total revenues 2,313,530 2,313,530 2,268,226 ( 45,304)
Expenditures:
General and administrative 283,796 283,796 76,285 207,511
Culture and recreation 1,057,592 1,057,592 920,335 137,257
Development services 147,662 147,662 112,739 34,923
Debt service:
Principal 465,000 465,000 465,000
Interest and fiscal charges 474,256 474,256 465,373 8,883
Total expenditures 2,428,306 2,428,306 2,039,732 388,574
Other financing sources (uses):
Operating transfers out ( 514,074) ( 514,074) ( 580,266) ( 66,192)
Total other
financing sources (uses) ( 514,074) ( 514,074) ( 580,266) ( 66,192)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses ( 628,850) ( 628,850) ( 351,772) 277,078
Fund balance, beginning of year 2,460,086 2,460,086 2,460,086
Fund balance, end of year $ 1,831,236 $ 1,831,236 $ 2,108,314 $ 277,078
60
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, 2003
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues:
DEA revenues $ $ $ 7,115 $ 7,115
Interest income - 22 22
Total revenues 7,137 7,137
Expenditures:
Public safety
Total expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other
financing sources (uses)
1,258 1,258 7,237 ( 5,979)
1,258 1,258 7,237 _L_ 5,979)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses ( 1,258) ( 1,258) ( 100) 1,158
Fund balance, beginning of year 3,393 3,393 3,393
Fund balance, end of year $ 2,135 $ 2,135 $ 3,293 $ 1,158
61
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, 2003
Revenues:
General sales tax
Interest income
Total revenues
Expenditures:
Public safety
Total expenditures
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
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
$ 1,117,309 $ 1,117,309 $ 1,054,907 ($ 62,402)
15,000 15,000 6,665 ( 8,335)
1,132,309 1,132,309 1,061,572 ( 70,737)
1,494,332 1,494,332 1,303,055 191,277
1,494,332 1,494,332 1,303,055 191,277
( 362,023) ( 362,023) ( 241,483) 120,540
Fund balance, beginning of year 772,390
772,390 772,390
Fund balance, end of year $ 410,367 $ 410,367 $ 530,907 $ 120,540
62
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
POLICE DEPARTMENT GRANT SPECIAL REVENUE FUNDS
YEAR ENDED SEPTEMBER 30, 2003
Revenues:
Other revenues
Interest income
Total revenues
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
$ 117,615 $ 117,615 $ 129,327 $ 11,712
313 313
117,615 117,615 129,640 12,025
Expenditures:
Public safety 146,573 146,573 182,518 ( 35,945)
Total expenditures 146,573 146,573 182,518 ( 35,945)
Other financing sources (uses):
Operating transfers in 28,958 28,958 25,477 ( 3,481)
Total other
financing sources (uses)
28,958 28,958 25,477 ( 3,481)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other
financing uses - - ( 27,401) ( 27,401)
Fund balance, beginning of year 67,553 67,553 67,553
Fund balance, end of year $ 67,553 $ 67,553 $ 40,152 ($ 27,401)
63
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.
64
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NON -MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2003
Recreation Softball Athletic Arbor
Classes Complex Complex Daze
ASSETS
(1 of 2)
Totals
Current assets:
Deposits and investments $ 238,940 $ 617,749 $ 1,631,377 $ 325,795 $ 2,813,861
Accounts receivable and unbilled revenue 1,415 1,344 6,497 300 9,556
Accrued interest receivable - 966 - 966
Prepaids and deposits 340 12,221 5,040 17,601
Inventory - 37,950 3,355 41,305
Due from other funds 313,000 313,000
Total current assets 240,695 983,230 1,641,229 331,135 3,196,289
Bond issuance cost - ' 42,879 14,259 57,138
Less accumulated amortization 15,570 5,347 20,917
Net bond issuance cost 27,309 8,912 36,221
Utility plant and equipment in service, at cost
Land 584,532 584,532
Building 328,180 160,095 488,275
Equipment 19,704 91,058 63,919 - 174,681
Improvements 496,715 5,122,653 5,619,368
Construction in progress 78,900 78,900
Waterworks and sanitary sewer system - -
19,704 1,500,485 5,425,567 - 6,945,756
Less accumulated depreciation 328 298,051 972,710 - 1,271,089
Net utility plant and equipment in service 19,376 1,202,434 4,452,857 5,674,667
TOTAL ASSETS 260,071 2,212,973 6,102,998 331,135 8,907,177
65
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NON -MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2003
Recreation Softball Athletic Arbor
Classes Complex Complex Daze
(2 of 2)
Totals
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable 25,756 58,983 3,896 8,287 96,922
Accrued salaries and wages 41 26,124 1,425 - 27,590
Current portion of bonds payable - 85,000 - 85,000
Deferred revenue - 35,000 35,000
Total current liabilities 25,797 170,107 5,321 43,287 244,512
Non -current liabilities:
Bonds payable 1,480,000 1,480,000
Due to other funds 313,000 313,000
Total liabilities 25,797 1,650,107 318,321 43,287 2,037,512
Net Assets:
Invested in capital assets, net of debt 19,376 ( 362,566) 4,452,857 4,109,667
Unrestricted 214,898 925,432 1,331,820 287,848 2,759,998
Total net assets $ 234,274 $ 562,866 $ 5,784,677 $ 287,848 $ 6,869,665
66
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET ASSETS
NON -MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2003
Recreation Softball
Classes Complex
Operating revenues:
Recreation fees $ 350,406 $ - $
Service fees and miscellaneous 1,052,532
Total operating revenues 350,406 1,052,532
Operating expenses:
Recreation classes 276,849
Athletic complex
Softball complex 891,306
Arbor Daze Depreciation 46,065
Amortization - 2,042
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Investment income
Interest on bonds
276,849 939,413
73,557 113,119
2,344
7,298
( 66,966)
Total nonoperating revenues
(expenses), net 2,344 ( 59,668)
Income (loss) before operating transfers 75,901
Operating transfers in
Operating transfers out
Change in net assets
Net assets, beginning of year
Net assets, end of year
( 134,624) 38,228
27,848
27,848
53,451 ( 106,776)
15,771 1,450,000
75,901 69,222
158,373 493,644
( 15,772)
1,327,452
4,457,225
Athletic
Complex
Arbor
Daze Totals
$ - $ 350,406
241,572 958,750 2,252,854
241,572 958,750 2,603,260
276,849
180,388 180,388
891,306
920,522 920,522
195,129 241,194
679 2,721
376,196 920,522 2,512,980
90,280
3,380 40,870
( 66,966)
3,380 ( 26,096)
41,608 64,184
41,608
246,240
1,465,771
( 15,772)
1,514,183
5,355,482
$ 234,274 $ 562,866 $ 5,784,677 $ 287,848 $ 6,869,665
67
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON -MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2003
Recreation Softball Athletic Arbor
Classes Complex Complex Daze Totals
OPERATING ACTIVITIES
Cash received from customers $ 349,565 $ 1,052,461 $ 235,075 $ 993,450 $ 2,630,551
Cash payments to suppliers for goods and services ( 230,449) ( 622,600) ( 125,943) ( 790,384) ( 1,769,376)
Cash payments to employees for services ( 32,466) ( 283,150) ( 50,245) ( 128,208) ( 494,069)
Net cash provided by operating activities 86,650 146,711 58,887 74,858 367,106
NONCAPITAL FINANCING ACTIVITIES
Operating transfer in 31,771 1,450,000 1,481,771
Operating transfer out - ( 31,772) ( 31,772)
Net cash provided by
noncapital financing activities 31,771 1,418,228 1,449,999
CAPITAL AND RELATED FINANCING ACTIVITIES
Interest paid on bonds 328 ( 78,855) ( 78,527)
Reduction in bonds payable ( 80,000) - ( 80,000)
Purchase of utility plant and equipment in service ( 19,704) ( 22,600) ( 78,899) - ( 121,203)
Net cash used in capital
and related financing activities ( 19,376) ( 181,455) ( 78,899) ( 279,730)
INVESTING ACTIVITIES
Interest received on investments 2,344 6,376 27,848 3,380 39,948
Net cash provided by
investing activities 2,344 6,376 27,848 3,380 39,948
Net increase in cash and cash equivalents 69,618 3,403 1,426,064 78,238 1,577,323
Cash and cash equivalents, beginning of year 169,322 614,346 205,313 247,557 1,236,538
Cash and cash equivalents, end of year $ 238,940 $ 617,749 $ 1,631,377 $ 325,795 $ 2,813,861
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ 73,557 $ 113,119 ($ 134,624) $ 38,228 $ 90,280
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation and amortization 48,107 195,808 243,915
Changes in assets and liabilities:
Accounts receivable and unbilled revenue ( 841) 754 ( 6,497) ( 300) ( 6,884)
Prepaids and deposits ( 340) ( 5,940) 1,004 ( 4,616) ( 9,892)
Inventory ( 6,338) 676 ( 5,662)
Accounts payable 14,233 ( 4,335) 1,752 6,546 18,196
Accrued salaries and wages 41 2,169 768 2,978
Deferred revenue ( 825) 35,000 34,175
Net cash provided by operating activities $ 86,650 $ 146,711 $ 58,887 $ 74,858 $ 367,106
68
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.
69
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2003
Risk
Equipment Manage -
Replacement Insurance ment
Fund Fund Fund
Total
ASSETS
Deposits and investments $ 729,520 $ - $ 729,911 $ 1,459,431
Accounts receivable - 260,094 260,094
Accrued interest receivable 565 - 565
Total current assets
Utility plant and equipment, at cost
Equipment
Less accumulated depreciation
730,085 260,094
729,911 1,720,090
5,216,618 54,956 11,024 5,282,598
5,216,618 54,956 11,024 5,282,598
2,924,338 32,973 6,615 2,963,926
Net utility plant and
equipment in service 2,292,280 21,983 4,409 2,318,672
TOTAL ASSETS 3,022,365 282,077 734,320 4,038,762
LIABILITIES
Accounts payable 215,604 57,199 272,803
Accrued salary and wages 12,228 5,285 17,513
Accrued insurance claims 265,727 265,727
Total current liabilities 493,559 62,484 556,043
NET ASSETS
Invested in capital assets, net of related debt 2,292,280 21,983 4,409 2,318,672
Unrestricted 730,085 ( 233,465) 667,427 1,164,047
TOTAL NET ASSETS $ 3,022,365 ($ 211,482) $ 671,836 $ 3,482,719
70
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2003
Risk
Equipment Manage -
Replacement Insurance ment
Fund Fund Fund
Total
Operating revenues:
Insurance premiums $ $ 1,806,544 $ 252,238 $ 2,058,782
Service fees and miscellaneous 457,613 457,613
Total operating revenues
457,613 1,806,544 252,238 2,516,395
Operating expenses:
General and administrative 27,680 99,098 95,742 222,520
Insurance costs - 2,698,871 466,860 3,165,731
Depreciation 481,791 10,991 2,205 494,987
Total operating expenses 509,471 2,808,960 564,807 3,883,238
Operating income (loss)
(
51,858) ( 1,002,416) ( 312,569) (1,366,843)
Non -operating revenues:
Investment income 7,341 136 6,719 14,196
Gain on sale of fixed assets 22,679 - - 22,679
Total nonoperating revenues 30,020 136 6,719 36,875
Income (loss) before
operating transfers ( 21,838) ( 1,002,280) ( 305,850) ( 1,329,968)
Operating transfers in 430,959 650,000 470,000 1,550,959
Change in net assets 409,121 ( 352,280) 164,150 220,991
Net assets, beginning of year 2,613,244 140,798 507,686 3,261,728
Net assets, end of year $ 3,022,365 $ (211,482) $ 671,836 $ 3,482,719
71
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2003
OPERATING ACTIVITIES
Cash received from other funds for services
Cash received from (payments to) suppliers for goods
and services
Cash payments to employees for services
Cash payments for loss claims
Net cash provided by (used in) operating activities
NONCAPITAL FINANCING ACTIVITIES
Operating transfers in
Net cash provided by noncapital financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of equipment
Sale of equipment
Risk
Equipment Manage -
Replacement Insurance ment
Fund Fund Fund Total
$ 485,073 $ 1,669,067 $ 252,238 $ 2,406,378
104,410 ( 1,924,693) ( 423,216) ( 2,243,499)
( 81,416) ( 42,090) ( 123,506)
( 479,432) ( 52,653) ( 532,085)
589,483 ( 816,474) ( 265,721) ( 492,712)
430,959 650,000 470,000 1,550,959
430,959 650,000 470,000 1,550,959
( 1,261,604) - ( 1,261,604)
37,118 37,118
Net cash used in capital and related financing activities ( 1,224,486) ( 1,224,486)
INVESTING ACTIVITIES
Interest received on investments 10,014 136 6,719 16,869
Net cash provided by investing activities 10,014 136 6,719 16,869
Net increase (decrease) in cash and cash equivalents ( 194,030) ( 166,338) 210,998 ( 149,370)
Cash and cash equivalents, beginning of year 923,550 166,338 518,913 1,608,801
Cash and cash equivalents, end of year $ 729,520 $ $ 729,911 $ 1,459,431
Reconciliation of operating loss to net cash
provided by (used in) operating activities
Operating loss ($ 51,858) ($ 1,002,416) ($ 312,569) ($ 1,366,843)
Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities:
Depreciation expense 481,791 10,991 2,205 494,987
Change in assets and liabilities:
Prepaids 208,796 - 208,796
Receivables ( 137,477) - ( 137,477)
Accounts payable ( 49,246) 152,817 43,761 147,332
Accrued salaries and wages 1,288 882 2,170
Accrued insurance claims 158,323 158,323
Net cash provided by (used in) operating activities $ 589,483 ($ 816,474) ($ 265,721) ($ 492,712)
72
STATISTICAL SECTION
(Unaudited)
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE EXPENSES BY FUNCTION
FISCAL YEAR ENDED 2003 (UNAUDITED)
Fiscal
Year
2003
Culture and Development
Recreation Services
$ 4,753,724 $ 1,190,240
General and
Administrative
$ 11,879,362
Highways
and Streets
Public
Safety
$ 2,117,959 $14,830,469
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 2003 (UNAUDITED)
Fiscal
Year
2003
Fee, Fines and
Charges for
Services
Program Revenues
Operating
Grants and Capital Grants
Contributions and Contributions
Ad Valorem
Taxes
Sales
Taxes
$ 24,707,006 $ 515,039 $ 2,849,795 $ 9,941,779 $ 8,865,055
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.
73
Table 1
Interest on Water & Drainage
Long-term Debt Sewer Utility Golf Course Other Total
$ 3,147,819 $12,046,092 $ 812,785 $ 3,616,671 $ 2,593,455 $ 56,988,576
Table 2
General Revenues
Other Captital Interest on Gain on Sale
Taxes Contributions Investments of Assets Miscellaneous Total
$ 13,074,910 $ 2,003,095 $ 900,478 $ 41,807 $ 102,193 $ 63,001,157
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
1994 $ 2,160,916 $ 6,595,803 $ 526,136 $ 1,514,311 $ 1,640,120 $ 1,041,424 $ 13,478,710
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
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.
75
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year Taxes
1994 $ 10,847,785
1995 11,362,414
1996 12,049,604
1997 12,733,372
1998 13,187,156
1999 13,800,144
2000 15,255,770
2001 16,286,212
2002 17,842,854
2003 18,601,527
Interest
Licenses Inter- Charges Income
and govern- for Fines and Other
Permits mental Service and Fees Revenues
$ 364,617 $ 227,464 $ 81,311 $ 1,592,194 $ 420,641
420,624 50,912 88,036 1,941,505 916,167
459,553 84,447 102,669 2,233,554 1,087,365
530,525 192,742 89,102 2,337,343 1,268,495
396,811 258,663 93,175 2,671,187 1,262,289
448,751 557,246 101,705 3,349,742 580,572
550,356 602,417 102,096 3,452,010 1,354,752
511,625 413,617 104,922 3,145,608 1,741,423
1,188,231 421,176 105,187 3,237,217 1,523,766
1,009,058 326,493 112,013 3,377,046 1,480,712
Note: Includes General Fund and Debt Service Fund.
Table 4
Total
$ 13,534,012
14,779,658
16,017,192
17,151,579
17,869,281
18,838,160
21,317,401
22,203,407
24,318,431
24,906,849
76
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
1994 $ 6,259,282 $ 5,874,486 93.85% $ 38,770 $ 5,913,256 94.47% $ 355,032 5.67%
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%
Source: Tarrant County Tax Assessor/Collector
77
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Unaudited)
Table 6
Ratio of
Total
Assessed
Real Property Personal Property Total to
Estimated Estimated
Fiscal Assessed Actual Assessed Actual Assessed Actual Actual
Year Value Value Value Value Value Value Value
1994 $ 835,211,175 $ 835,211,175 $ 137,913,007 $ 137,913,007 $ 973,124,182 $ 973,124,182 100%
1995 818,330,766 818,330,766 147,978,520 147,978,520 966,309,286 966,309,286 100%
1996 908,760,987 908,760,987 166,784,893 166,784,893 1,075,545,880 1,075,545,880 100%
1997 955,692,304 955,692,304 172,885,117 172,885,117 1,128,577,421 1,128,577,421 100%
1998 1,009,997,060 1,009,997,060 185,673,796 185,673,796 1,195,670,856 1,195,670,856 100%
1999 1,093,894,921 1,093,894,921 182,729,883 182,729,883 1,276,624,804 1,276,624,804 100%
2000 1,198,361,587 1,198,361,587 197,169,731 197,169,731 1,395,531,318 '1,395,531,318 100%
2001 1,307,137,899 1,307,137,899 194,966,019 194,966,019 1,502,103,918 1,502,103,918 100%
2002 1,433,779,484 1,433,779,484 373,564,221 373,564,221 1,807,343,705 1,807,343,705 100%
2003 1,547,947,615 1,547,947,615 414,478,638 414,478,638 1,962,426,253 1,962,426,253 100%
Source: Tarrant Appraisal District
78
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
1994 0.6186170% 1.5150% 0.271880% 0.242100% 0.046710% 2.6943070%
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%
Notes: A. General property taxes for cities are limited by the Texas Constitution to
$2.50 per $100 of assessed valuation.
B. 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.
C. 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
79
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
1994 38,778 $ 973,124,182 $ 10,277,666 1.06% 265
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
(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
80
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2003
(Unaudited)
Table 9
Percentage Amount
Applicable Applicable
Net Debt to City to City
Jurisdiction Outstanding_ of Euless of Euless
City of Euless $33,371,818 100.00% $33,371,818
Grapevine-Colleyville Independent
School District 256,289,458 2.12% 5,433,337
Hurst -Euless -Bedford Independent
School District 238,205,626 26.79% 63,815,287
Tarrant County 151,900,000 2.72% 4,131,680
Tarrant County Hospital County 42,750,000 2.72% 1,162,800
Tarrant County Junior College District 73,779,155 2.72% 2,006,793
Total direct and overlapping debt $796,296,057 $109,921,715
Ratio of direct and overlapping
bonded debt to taxable assessed
valuation 5.60%
Per capita direct and overlapping
bonded debt $2,292
81
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
1994 $ 1,085,406 $ 554,714 $ 1,640,120 $ 13,478,710 12.17%
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%
82
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
Gross
Revenue
(1)
1994 $ 9,278,791
1995 9,348,238
1996 10,579,366
1997 10,605,353
1998 11,830,802
1999 11,909,011
2000 13,558,051
2001 13,084,483
2002 11,719,411
2003 13,016,934
Direct
Operating
Expenses
&0_1
$ 7,359,988
7,588,129
8,177,311
8,014,504
9,780,792
9,288,622
9,765,239
10,915,784
10,298,940
10,431,249
Net
Revenue
Available
for Debt
Services
$ 1,918,803
1,760,109
2,402,055
2,590,849
2,050,010
2,620,389
3,792,812
2,168,699
1,420,471
2,585,685
Principal
$ 325,000
335,000
365,000
370,000
395,000
385,000
415,000
445,000
580,000
615,000
Notes: 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.
3. Excludes amortization and depreciation and includes theoretical
debt service payments made to Trinity River Authority
treated as operating expense for bond coverage purposes
through 1989; subsequent to fiscal year 1989, accounting for
Trinity River Authority payments was changed and is consistent
with the debt service treatment above.
Interest
and
Fiscal
Charges
$ 199,875
183,430
170,205
151,480
128,040
107,325
62,856
317,637
231,234
199,245
Total
$ 524,875
518,430
535,205
521,480
523,040
492,325
477,856
762,637
811,234
814,245
Table 11
Coverage
Ratio
3.66
3.40
4.49
4.97
3.92
5.32
7.94
2.84
1.75
3.18
83
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
DRAINAGE UTILITY BONDS
LAST EIGHT 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
1994 $ 367,912 $ 98,796 $ 269,116 $ 25,000 $ 129,360 $ 154,360 1.74
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
Note: The Drainage Utility Fund had no outstanding debt or debt
service prior to 1992.
(1) Includes operating revenue and interest earned on investments.
(2) Total operating expenses exclusive of depreciation and amortization.
84
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)
1994 38,778 20,601 19,236 5.1
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 4.5%
2002 46,166 25,837 19,500 5.6%
2003 47,950 26,630 19,500 6.4%
Notes: 1. Estimates by North Central Texas Council of Governments
2. Estimates by Claritas Site Reports
3. Hurst -Euless -Bedford Independent School District
4. Texas Workforce Commission
85
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2003
(Unaudited)
Taxpayer
Hertz Rent A Car
Avis Rent A Car
National Rental Systems Inc
Bear Creek Apartments, Inc.
Somerset Village Partners, LP
Cingular Wireless
Southwest Properties
Saluda Apartments, L.P.
Oncor Electric Delivery Co.
Southwestern Bell Telephone Co.
Type of
Business
Car Rental
Car Rental
Car Rental
Apartments
Apartments
Telephone Utility
Apartments
Apartments
Electric Utility
Telephone Utility
2003
Assessed
Valuation
(1)
$ 50,000,000
37,376,233
33,465,656
31,403,466
31,013,586
27,953,071
27,385,440
26,139,355
25,370,812
23,164,091
$ 313,271,710
Table 14
Percentage
of Total
Assessed
Valuation
Note 1: Based on Certified Tax Rolls from Tarrant Appraisal District as of September 2003
2.42%
1.81%
1.62%
1.52%
1.50%
1.35%
1.32%
1.26%
1.23%
1.12%
15.14%
86
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
1994 $ 973,124,182 360 $ 21,437,599
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
Notes: 1. City Records
2. Tarrant Appraisal District
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2003
(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 2003 was established at $.495000 per $100 of assessed
valuation on 100% of appraised value.
88
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2003
(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
89,898
16,544
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
89
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2003
(Unaudited)
Table 17
City Water and Sewer service:
Water Service:
Number of Customers 23,231
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 22,754
Sewer mains 180.5 miles
Streets:
Improved 141 miles
State highways 33.3 miles
Airport Streets 16.5 miles
90