HomeMy WebLinkAboutFY 2022 Comprehensive Annual Financial Report11
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Gity Of 11]uless
Preserving the past while
Prepa:rintg for the future.
Cbrnprehensive Aiui tia]
fiYnancial Bepori
Fiscal Year Ending
September 30, 20S?
11
City of Euless, Texas
Comprehensive Annual
Financial Report
Fiscal Year Ending
September 30, 2002
Prepared by
City of Euless
Finance Department
201 North Ector Drive
Euless, TX 76039
(817) 685-1452
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2002
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page(s)
Letter of transmittal i-vil
City officials viii
GFOA certificate of achievement ix
Organizational chart x
FINANCIAL SECTION
Independent Auditor's Report
General Purpose Financial Statements
• Combined balance sheet - all fund types and account groups
Combined statement of revenues, expenditures
and changes in fund balances - all governmental fund types
Combined statement of revenues, expenditures
and changes in fund balances - budget and
actual - general and special revenue funds
1-2
3-6
7
8-9
Combined statement of revenues, expenses and
changes in retained earnings - all proprietary fund types 10
Combined statement of cash flows - all proprietary fund types 11 - 12
Notes to general purpose financial statements 13 - 30
Required Supplementary Information:
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 31
Individual Fund and Account Group Statements and Schedules
Special Revenue Funds
Combining balance sheet 32
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2002
TABLE OF CONTENTS - continued
Page(s)
Individual Fund and Account Group Statements and Schedules continued
Combining statement of revenues,
expenditures and changes in fund balances 33
Statement of revenues, expenditures and
changes in fund balances - budget and actual 34 - 36
Capital Project Funds
Combining balance sheet 37 - 38
Combining statement of revenues,
expenditures and changes in fund balances 39 - 40
Enterprise Funds
Combining balance sheet 41 - 44
Combining statement of revenues, expenses
and changes in retained earnings 45 - 46
Combining statement of cash flows 47 - 48
Water and sewer fund - comparative balance sheets 49 - 50
Water and sewer fund - comparative statements
of revenues, expenses, and changes in retained earnings 51
Water and sewer fund - comparative schedule of operating expenses 52 - 53
Water and sewer fund - comparative statements of cash flows 54
Water and sewer fund - aggregating schedule of balance sheet accounts 55 - 58
Water and sewer fund - aggregating schedule of revenues,
expenses and changes in retained earnings accounts 59 - 60
Drainage utility funds - aggregating schedule of balance sheet accounts 61
Drainage utility funds - aggregating schedule of revenues,
expenses and changes in retained earnings accounts 62
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2002
TABLE OF CONTENTS - Continued
Page(s)
Individual Fund and Account Group Statements and Schedules - continued
Internal Service Funds
Combining balance sheet 63
Combining statement of revenues, expenses
and changes in retained earnings 64
Combining statement of cash flows 65
Agency Funds
Combining balance sheet 66
Statements of changes in assets and liabilities 67
General Fixed Assets Account Group
Comparative schedule of general fixed assets - by source 68
Schedule of general fixed assets by function and activity 69
Schedule of changes in general fixed assets by function and activity 70
Table Page(s)
STATISTICAL SECTION (Unaudited)
General governmental expenditures by function 1 71
General governmental revenues by source 2 72
Property tax levies and collections 3 73
Assessed and estimated actual value of taxable property 4 74
Property tax rates - all direct and overlapping
governments per $100 of assessed value 5 75
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 6 76
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2002
TABLE OF CONTENTS - Continued
Table Page(s)
STATISTICAL SECTION (Unaudited) - continued
Computation of direct and overlapping debt 7 77
Ratio of annual debt service expenditures for
net general bonded debt to total general expenditures 8 78
Schedule of revenue bond coverage -
Water and Sewer Bonds 9 79
Schedule of revenue bond coverage -
Drainage Utility Bonds 10 80
Demographic statistics 11 81
Principal taxpayers 12 82
Property value and construction 13 83
Computation of legal debt margin 14 84
Miscellaneous statistics 15 85 - 86
INTRODUCTORY SECTION
THE CITY OF
SS
January 21, 2003
Honorable Mayor & City Council,
City Manager, and
Citizens of Euless:
The Finance Department of the City of Euless is pleased to submit the Comprehensive
Annual Financial Report of the City of Euless, Texas for the fiscal year ended
September 30, 2002. Responsibility for both the accuracy of the data and the
completeness and fairness of the presentation, including all disclosures, rests with the
City. 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, results of operations, and cash flows of the various funds and account groups
of the City. All disclosures necessary to enable the reader to gain an understanding of
the City's financial activities have been included.
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 the general purpose financial statements and supplemental statements and
schedules, as well as the report of independent auditors. The Statistical section
includes selected financial and demographic information, generally presented on a
multi -year basis.
GENERAL INFORMATION
Euless was settled about 1881 and named for Elisha Adams Euless, a cotton farmer
and pioneer. In 1915 the population was 25 and in 1960, 4,235. Euless has changed
significantly from a rural farming community to a progressive urban area of
approximately 47,950. The City of Euless is located in Northeast Tarrant County
directly between the cities of Dallas and Fort Worth. Euless is also adjacent to the
world's largest airport — Dallas/Fort Worth International.
The City provides to its citizens those services which have proven to be necessary and
which can be provided by the City at the least cost. Included in these services under
general government and proprietary funds are traditional city functions such as police
and fire protection, emergencyambulance service, road and traffic signal maintenance,
water and sewer operations, drainage system, parks and recreational facilities, courts,
and library services. Other services include planning land use, building inspection, and
traffic control. Internal services of the City include insurance, risk management,
equipment replacement, and qR1 /Opiip(tr ipt m''Rtri) 3595
817/685 -1400 • Metro 817/267-4403 • Fax 817/685-1416
www.ci.euless.tx.us
All funds and account groups are discussed in depth in the notes to the financial
statements. Even though associations with other entities such as Hurst -Euless -Bedford
Independent School District exist, the City Council has no financial accountability, or
control over the school district or the other entities referred to in Note 1 of the financial
statements. Accordingly, financial data for the school district and others are not
included in the combined financial statements in this report. The Euless Development
Corporation, established in Fiscal Year 93 and the Crime Control and Prevention District
established in Fiscal Year 96 are presented as blended component units of the City of
Euless.
ECONOMIC CONDITIONS AND OUTLOOK
The City of Euless celebrated several accomplishments during FY2002, including
opening our new Police and Courts Facility, opening our new park and greenhouse
facility and renovating Building D to house Fire Administration, Information Services and
Purchasing. The reconstruction of Mid Cities Boulevard and Harwood Road has also
been completed along with the construction of additional lanes along Glade Road.
Significant portions of the utilities along North Main Street have also been relocated in
preparation for total reconstruction. We expect this project to be a substantial
revitalization of the Main Street Corridor. Several new businesses also opened during
the year including Chick-Fil-A, Lava Grill, Washington Mutual, and the Mattress Firm.
The City expects to recognize even more new businesses from the remaining pad sites
around the SuperTarget and other development in the 121 Gateway District as well as a
significant track along Hwy 183 and Hwy 360.
MAJOR INITIATIVES
Budget. During preparation of the 2002 fiscal budget, both elected and appointed
officials worked together to identify and address several key programs needed to
adequately serve the public, either through quality of life issues or technological
advancements. Specific objectives may be summarized as follows: Maintenance of
service levels to citizens; continuation of competitiveness in the employee pay plan; and
continuation of City Council directives, including repair and/or replacing deteriorating
infrastructures; promoting economic development; and enhancement of the City's
image.
Progress Report. The FY2001-2002 budget adopted by the City Council lowered the
tax rate to .497254¢ per $100 valuation and held water, sewer, and drainage rates while
providing for several enhancements for the community. A competitive pay plan was
approved for employees as well as continued funding of the street overlay program,
sidewalk program, irrigation for City parks, additional fire equipment including lifepak
defibrillators, an emergency warning system, an upgrade to the Midway Recreation
Center, additional library materials and an upgrade to the library automation system.
II
Several infrastructure projects were also funded including construction of Gateway
Boulevard, several wastewater line replacements, and funding for rehabilitation of
several water wells.
Individual and departmental successes have improved city services and enhanced
growth in our community. Among the many accomplishments during 2002:
.* The Police Department implemented the Crime Scene Search program, purchased a
second Speed Alert Trailer, and implemented a Crime Prevention program utilizing
an interactive robot purchased by the Euless Police Academy Alumni Association.
* The Police Department also joined Hurst and Bedford to apply for a grant from the
Attorney General's Office to fund a Crime Victims Assistance Coordinator.
* The Euless Public Library implemented the new Polaris automation system with
greatly improved features for the public and staff.
* The Library also hosted four MasterWorks Programs in collaboration with the Arts
Council of Northeast Tarrant County.
* The Parks and Community Services Department earned the "Best Arbor Day
Celebration" award from the National Arbor Day Foundation.
* The Parks Department upgraded Wilshire Park to include a new irrigation system
and the park has been completely sodded and the pond has been stocked with fish.
* Softball World hosted the first ever Armed Forces & Hispanic State Championships.
* Softball World also hosted 14 major tournament events including five National and
three World tournaments.
* The Fire Department completed classes #3 and #4 of the Citizen's Fire Academy.
* The Fire Department implemented CPR/AED training for the Public Access
Defibrillation program.
* The Avid Golfer magazine rated Texas Star #1 Municipal Golf Course in the
Metroplex. Golf Digest rated Texas Star "****" in 2002 "Places to Play".
FINANCIAL INFORMATION
General. Management of the City is responsible for establishing and maintaining
internal controls designed to ensure that the City's assets are protected from Toss, theft
or misuse and to ensure that adequate accounting data are compiled to allow for the
preparation of financial statements in conformity with generally accepted accounting
principles. 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.
The City's accounting records for the Enterprise and Internal Service Funds are
maintained on an accrual basis whereby revenues and expenses are recorded in the
accounting period in which they are earned or incurred. The remainder of the City's
funds are maintained on the modified accrual basis whereby revenue is recorded when
measurable and available, and expenditures are recorded when the liability is incurred,
III
except for interest on general long-term debt, which is recognized when due. As set
forth in the City's Charter Article VII, Sections 2-9, the City Council adopts an annual
budget. Detail control is accomplished by maintaining expenditures by line item account
within each operating department within each operating fund at the authorization of the
City Manager. Financial reports are available to division managers monthly.
Further explanations of the basis of accounting for all fund types, account groups, and
the City's budgetary controls are furnished in the Notes to the Financial Statements.
General Governmental Functions. Revenues for general governmental functions
accounted for in the general fund and debt service fund totaled $24,318,431 in 2002, an
increase of 9.5% over 2001. The increase in revenues is primarily attributable to:
increased property tax receipts, gross receipts tax, municipal court fines and fees, and
building permits. The amount of revenue from various sources and the changes from
the previous year are reflected in the following table:
Revenue
Source
Property tax
Gross Receipts Tax
General Sales Tax
Fines and fees
Licenses and permits
Interest income
Intergovernmental/Other
TOTAL REVENUES
Percent
Amount Of Total
$8,845,813 36.37%
3,501,491 14.40%
5,600,737 23.03%
3,237,217 13.31%
1,188,231 4.89%
298,253 1.23%
1,646,689 6.77%
$24.318.431 100%
Increase
(decrease)
from 2001
$1,199,005
208,545
149,357
91,609
676,606
(262,441)
52,343
$2.115,024
Percent of
Increase
(decrease)
15.68%
6.33%
2.74%
2.91%
132.25%)
(46.81 %)
3.28%
In addition to the above general revenue, $2,096,584 was transferred from various
funds, including $500,000 from the Crime Control District, $934,776 from the car rental
fund and the remainder primarily from enterprise funds for general and administrative
cost reimbursement.
Expenditures for general governmental purposes and general debt service totaled
$25,563,238, an increase of 9.11% over 2001. Changes in levels of expenditures for
major functions of the City over the preceding year are shown in the following table:
Function
General government
Public safety
Streets
Parks/Recreation/Library
Debt Service
Non -departmental
TOTAL EXPENDITURES
Amount
$3,536,098
$11,494,228
$750,218
$2,682,646
$5,145,880
$1,954,168
$25,563,238
Percent
Of Total
13.83%
44.96%
2.93%
10.49%
20.13%
7.64%
100%
Increase
(decrease)
from 2001
52,392
871,512
15,546
276,229
765,987
153,386
$2.135.052
Percent of
Increase
(decrease)
1.5%
8.20%
2.12%
11.48%
17.49%
8.52%
Iv
Parks/Recreation/Library increased due to the expenditure of a library internet grant and
additional personnel. Debt service increased due to the issuance of bonds for North
Main Street, Glade Road and the Park Building. Other increases are due primarily to
personnel costs.
Fines and
Fees
13%
General Sales
Tax
23%
Revenues
Intergovt/Other
7%
Interest Incorre
Property Tax
37%
Licenses &
Pernits
5%
Gross
Receipts Tax
14%
Debt
Service
20%
Streets
3%
Expense
General
Gov't
14%
Public
Safety
45%
Nondept.
/- 8%
Parks/Rec/
Library
10%
Enterprise Funds. While the number of water and sewer customers was relatively
constant with prior years, the City's water and sewer utility showed a decrease in water
revenues as a result of wet and cooler conditions. However, income increased from the
prior year due to contributed capital from developers of $1,952,320 and a significant
increase in impact fees. Comparative data for the past two fiscal years are presented
in the following table.
2002 2001
Income before operating transfers 3,126,898 703,445
Net revenue available for debt service 1,420,471 2,168,699
Average annual debt service requirements 309,972 336,254
Coverage 4.58 times 6.45 times
The Drainage Utility System was created in FY91 in compliance with new legislation
designed to address drainage issues in the communities across the state. Fees were
effective January 1, 1991. In FY2002, $616,224 of revenue was generated and
$241,034 of costs was incurred, excluding depreciation, amortization, and debt service
cost related to capital improvements.
The Recreation Fund has been segregated from the general operating budget of the
City to allow the Midway Recreation Center to operate as an enterprise fund. Revenue
of $354,180 was generated, while expenses were $347,025. Both experienced an
increase from prior year activity. The Arbor Daze Fund ended FY2002 with $843,460 in
revenues and $829,464 in expenses.
The Softball World Fund was added in fiscal year 1996 to promote adult softball
programs through league, tournament, and special events. Revenue of $1,180,898 was
collected for league fees, concession sales, and sale of sporting goods. Expenses were
$1,031,171 with operating income prior to transfers of $149,727.
The Golf Course Fund and Athletic Complex were established as enterprise funds in
1996. The golf course revenue was $3,116,173 with operating expenses of $3,070,130.
Net loss after debt service and operating transfers is $362,543. The athletic complex
ended the year with a net loss of $67,777.
Debt Administration. General obligation debt, which is directly tax supported,
totaled $12,409,653 at September 30, 2002. Certain ratios are useful indicators of the
City's debt position for municipal management, citizens and investors. Data for the City
is as follows: Net bonded debt - $34,925,836; ratio of net bonded debt to assessed
value is 1.78% and net bonded debt per capita is $728. Outstanding certificates of
obligation at September 30, 2002, totaling $22,910,000 are also considered to be net
direct tax supported debt. Tables 6-10 in the Statistical Section of this report present
more detailed information about the debt position of the City.
Outstanding sales tax revenue bonds, secured by the January 1993 referendum for
half -cent sales tax for parks, library and economic development totaled $9,325,000 as
of September 30, 2002.
Outstanding revenue bonds, which are secured by the net revenues of the various
Enterprise Funds, totaled $5,050,000 at September 30, 2002. Outstanding certificates
of obligation, which are secured by revenues of the various Enterprise Funds and rental
income totaled $21,025,000.
The City has maintained it's A+ and A Ratings on general obligation and revenue debt
from Standard and Poors and has maintained its Al and A2 Ratings on this debt from
Moody's Investors Service.
Cash Management. Compliance, safety, liquidity and yield are the program goals.
Safety and security of the City's funds are of primary importance in all investment
activities, with staff following policies and laws when investing funds. Interest income
generated for the year for all funds was $1,360,581. Interest is an important non -tax
revenue for the City. Throughout 2002, the City maintained an average of 100%
investment of available funds.
Insurance and Benefits. The City provides employee medical coverage on a self -
insured basis. Premiums are paid into the Insurance Fund by all other funds and by the
City's employees 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.
The City maintains self-insurance for worker's compensation. Contributions are made
to the Risk Management Fund by other funds and are available to pay claims, claims
reserves and administrative costs of the program. An excess coverage insurance policy
covers individual claims in excess of $300,000.
vi
General Fixed Assets. The general fixed assets of the City are used in the
performance of general governmental functions and exclude the fixed assets of the
Enterprise and Internal Service Funds. As of September 30, 2002, the general fixed
assets of the City amounted to $46,601,054. This amount represents the original cost
of the assets and is considerably Tess than their replacement value. Depreciation of
general fixed assets is not recognized in the City's accounting system.
OTHER INFORMATION
Independent Audit. The City Charter, per Article VII Section 11, requires an
annual audit to be made of the books of account, financial records and transactions of
all administrative departments of the City by a certified public accounting firm. This
requirement has been complied with and the report of independent auditors has been
included in this report.
Award. 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 for its comprehensive annual financial report for the fiscal year
ended September 30, 2001. The Certificate of Achievement is the highest form of
recognition given in the area of government reporting by the GFOA. In order to be
awarded a Certificate of Achievement, the City published an easily readable and
efficiently organized comprehensive annual financial report whose contents conform to
program standards. Such reports 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 that our current comprehensive annual financial
report 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.
Acknowledgments. The preparation of this report on a timely basis could not be
accomplished without the efficient and dedicated services of many individuals. I would
like to express my appreciation to all members of the Finance Department, especially
those in the Accounting Office, who assisted and contributed to its preparation. I would
also like to thank the City Manager's Office and 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 progressive manner.
Acknowledgment is also given to the representatives of Weaver and Tidwell, L.L.P. for
their invaluable assistance in producing this document.
Respectfully submitted,
Loretta Getchell, CPA
Director of Fiscal and Administrative Services
vii
CITY OFFICIALS
MARY LIB SALEH, 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
Deputy City Manager
Loretta Getchell, CPA
Director of Fiscal &
Administrative Services
viii
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, 2001.
The City of Euless has received a
Certificate of Achievement for the last
thirteen 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
requirements, and we are submitting it
to GFOA to determine its eligibility for
another certificate.
Certificate of
Achievement
for Excellency
in Financial
Reporting
Presented to
City of Euless,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2001
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
ix
RON
YOUNG
Director of
Public Work,
Streets
Water
Wastewater
Anima Control
Meter Ring
Cost Mgmt
BOB
BARKER
wog
Coast. It pectioo
CIP Mgmt.
Traffic Safety
Drainage
BOB MCFARLAND
City Attorney
RAY
MCDONAiD
pnterbn)
Ditectr of Parts
Coirmasoity
Services
RrQ�sa
Parts
Special Events
P>tdta at Texas Star
Stareneir
Soften World at
Tans Stu
SUSAN CRIM
SmearyCity
LEE
KOONTZ
Fire Chief
•
LEONARD
CARMACX
Police Chief
Patrol
Ambaims:OEMS Criminal Invest
Fire Educ. & Prevent Services:
lire Mamba C.....,,
Emergency Mgmt. Conrounity
Jail
arlaiNS
MAYOR
and
COUNCIL
JOE IIENNIG
City Manager
—
GARY MCICAMIE
Deputy City Manages
LORETTA
GETCHELL
Dhestnr of
Finance/
Adntin. Services
Arsvonting
Utility Billing
Budget
Municipal Court
Cash Debt. Mgmt.
Info. Services
Purchasing
Human Re -
LACY BRI TTEN
Municipal Court Judge
KYLE
MCADAMS
Fled &
Padlitier
BILL
RIDGWAY
Director of
Emnonis
Development
Economic Dev.
Frmdaaes
Recycling
■
Organizational Chart
Monidpal Court
of Record
MIKE
COLLINS
Director of
Pluming
& Development
Planning
Code Enforcement
Environ, Health
Bldg. Inspections
JOANN
ROGERS
Library
Administrator
LORI
DE LA
CRUZ
Coons
Maiteting
Manger
GLENDA
HARTM'E11
General Mgr.
Texas Star
FINANCIAL SECTION
WEAVER
TIDWELL
L. L. P.
CERTIFIED PUBLIC
A CCOU N1ANTS
AND CONSULTANTS
DALLAS
Thee Forest Plaza
12221 Merit Drive
S}tire 1400
Dallas. Twits 75251-2280
972.490.1970
F 972.702.8321
FORT WORTH
1600 Rost Seventh Street
Suite 300
Fort II'Sorrb, Tex,,s 76102-2506
817.332.7905
F 817.429.5936
W WW.WEAVERANDTIDWELL.COM
AN INDEPENDENT MEMBER OF
BAKER TILLY
INTERNATIONAL
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor,
City Coun?il and City Manager
City of Euless, Texas
We have audited the accompanying general purpose financial statements of the
City of Euless, Texas as of and for the year ended September 30, 2002, as listed
in the table of contents. These general purpose financial statements are the
responsibility of the City's management. Our responsibility is to express an
opinion on these general purpose 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 general purpose 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 opinion.
In our opinion, the general purpose financial statements referred to above
present fairly, in all material respects, the financial position of the City of Euless,
Texas at September 30, 2002, and the results of its operations and cash flows of
its proprietary fund types for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.
Our audit was made for the purpose of forming an opinion on the general
purpose financial statements taken as a whole. The combining and individual
fund and account group statements and schedules and the statistical section
listed in the table of contents are presented for purposes of additional analysis
and are not a required part of the general purpose financial statements of the
City of Euless, Texas. The combining and individual fund and account group
statements and schedules have been subjected to the auditing procedures
applied in the audit of the general purpose financial statements and, in our
opinion, are fairly stated, in all material respects, in relation to the general
purpose financial statements taken as a whole. The statistical section has not
been subjected to the auditing procedures applied in the audit of the general
purpose financial statements and, accordingly, we express no opinion on such
data.
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
The required supplementary information listed in the table of contents is not a
required part of the general purpose financial statements but is supplementary
information required by the Governmental Accounting Standards Board. We
have applied certain limited procedures, which consisted principally of inquiries
of management, regarding the completeness and accuracy of the supplementary
information. However, we did not audit the information and express no opinion
on it.
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
December 20, 2002
3931
2
GENERAL PURPOSE FINANCIAL STATEMENTS
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
ASSETS AND OTHER DEBITS
Deposits and investments
Receivables:
Property taxes
Accounts receivable and unbilled revenue
Accrued interest
Due from other funds
Due from other governments
Prepaids and deposits
Inventories, at cost
Restricted assets
General fixed assets
Net utility plant and equipment
in service
Net bond issuance costs
Amount available for retirement
of general long-term debt
Amount to be provided for retirement
of general long-term debt
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
Fund Funds Fund Funds
$ 6,813,603 $ 12,921,007 $ 390,843 $ 11,527,389
597,992 317,912
1,923,030 1,621,458 - -
60,516 79,565 16,669
1,487,297 586,393 -
56,895 60 10,000
8,909
Total assets and other debits $ 9,460,945 $ 16,695,780
$ 708,755 $ 11,554,058
The Notes to the General Purpose Financial
Statements are an integral part of this statement, 3
(1 of 2)
Proprietary Fiduciary Totals
Fund Types Fund Types Account Groups (Memorandum only)
Internal General General
Enterprise Service Agency Fixed Long-term
Funds Funds Funds Assets Debt 2002 2001
$ 9,732,602 $ 1,608,801 $ 2,177,072 $ $ $ 45,171,317 $ 51,705,979
- 915,904 493,703
2,042,069 122,617 5,709,174 5,526,562
99,404 3,238 259,392 396,306
584,917 - - 2,072,214 617,340
- - 586,393 615,488
185,758 208,796 461,509 32,990
214,723 - 223,632 256,035
4,348,304 - 4,348,304 3,592,601
46,601,054 46,601,054 48,724,760
43,053,378 1,566,494 44,619,872 39,342,390
253,593 - - 253,593 229,547
1,344,435 1,344,435 1,522,621
55,118,603 55,118,603 57,846,762
$ 60,514,748 $ 3,509,946 $ 2,177,072 $ 46,601,054 $ 56,463,038 $ 207,685,396 $ 210,903,084
4
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
LIABILITIES, FUND EQUITY
AND OTHER CREDITS
Liabilities:
Accounts payable
Accrued insurance claims
Accrued salaries and wages
Restricted customer and escrow deposits
Accrued interest
Due to other funds
Bonds, certificates of obligation and tax notes payable
Capital leases payable
Accreted interest payable
Deferred revenue
Compensated absences
Due to other entities
Due to other governments
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
Fund Funds Fund Funds
$ 708,205 $ 51,026 $ $ 670,878
473,827 37,803
1,291,957 - 314,938
6,278,847
Total liabilities 2,473,989 6,367,676
Fund equity and other credits:
Investment in general fixed assets
Net contributed capital
Retained earnings:
Reserved for:
Debt service and construction
Insurance
Workers' compensation
Risk management
Emergency
Recycling
Outstanding work
Unreserved
Fund balances:
Reserved for:
314,938 670,878
Debt service 950,618 393,817
Court Technology Fees 105,480 - -
9-1-1 Emergency System 22,805
Recycling -
Development agreements 1,683,008
Betterment 7,359 -
Campus remodel Library 5,752
Injured animals 490
Historical Preservation 1,323
Unreserved:
Designated for:
Contingency 500,000
Emergency 500,000 - -
Undesignated 5,845,070 9,376,163 9,200,172
Total fund equity and other credits 6,986,956 10,328,104 393,817 10,883,180
Total liabilities, fund equity and other credits $ 9,460,945 $ 16,695,780 $ 708,755 $ 11,554,058
The Notes to the General Purpose Financial
Statements are an integral part of this statement. 5
Enterprise
Funds
Proprietary
Fund Types
Internal
Service
Funds
$ 1,616,124 $ 125,471 $
107,404
15,343
246,279
1,244,236
62,506
2,072,214
16,035,000
97,067
21,373,426
15,996,998
261,311
500,000
31,311
6,000
22,345,702
248,218
41,000
200,000
200,000
2,820,728
39,141,322 3,261,728
Fiduciary
Fund Type
Agency
Funds
2,143,977
33,095
2,177, 072
$
Account Groups
General
Fixed
Assets
46,601,054
46,601,054
$
General
Long-term
Debt
54,684,653
781,864
996,521
56,463,038
(2 of 2)
Totals
(Memorandum only)
2002 2001
$ 3,171,704
107,404
773,252
1,244,236
62,506
2,072,214
70,719,653
781,864
1,703,962
996,521
2,143,977
6,311,942
90,089,235
46,601,054
15,996,998
261,311
41,000
200,000
200,000
500,000
31,311
6,000
25,166,430
1,344,435
105,480
22,805
1,683,008
7,359
5,752
490
1,323
500,000
500,000
24,421,405
117,596,161
$ 60,514,748 $ 3,509,946 $ 2,177,072 $ 46,601,054 $ 56,463,038 $ 207,685,396
$ 4,556,043
76,281
726,265
1,226,806
68,901
617,340
73,389,519
9,768
1,984,636
1,208,911
995,228
2,100,304
6,677,421
93,637,423
48,724,760
12,991,850
30,192
41,000
200,000
200,000
500,000
31,311
6,000
23,938,326
1,522,621
30,981
4,606
3,183
1,367,369
25,991
27,039
7,772
279
1,323
500,000
500,000
26,611,058
117,265,661
$ 210,903,084
6
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
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:
City council/administrative
Finance/Purchasing
Police department
Fire department
Administrative services
Planning and development/
Engineering/Animal Control
General and administrative
Parks/recreation/library
Street maintenance
Economic development
Betterment
Staff services
Nondepartmental
Debt service:
Principal
Interest and fiscal charges
Issuance costs
Capital outlay and maintenance
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses)
Proceeds from issuance of bonds
Payment to refunded bond escrow agent
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
Fund balances, beginning of year
Prior period adjustment
Fund balances, end of year
General
Fund
$ 5,554,664
3,501,491
5,600,737
Special
Revenue
Funds
Debt
Service
Fund
$ $ 3,291,149 $
265,987 -
3,321,923
10,148,812
3,237,217
1,188,231
274,681 307,546 23,572
133,138
421,176 -
249,579 205,166 975,934
20,027,776 14,382,572 4,290,655
455,262
880,915
6,926,554
4,567,674
580,343
1,046,331
2,522,258
750,218
45,332
688,303
1,954,168
20,417,358
( 389,582)
1,391,828
( 439,287)
952,541
562,959
6,423,997
$ 6,986,956
(
(
693,650
7,021,141
755,357
122,703
430,000
661,922
24,479
1,734,866
3,411,014
9,709,252 5,145,880
Capital
Projects
Funds
292,791
359,485
652,276
7,325,007
Totals
(Memorandum Only)
2UU2 2UU1
$ 8,845,813
3,767,478
8,922,660
10,148,812
3,237,217
1,188,231
898,590
133,138
421,176
1,790,164
$ 7,646,808
3,572,806
8,693,648
11,048,696
3,145,608
511,625
1,902,874
71,457
413,617
1,491,487
39,353,279 38,498,626
455,262
880,915
7,620,204
4,567,674
580,343
1,046,331
7,021,141
3,277,615
750,218
122,703
45,332
688,303
1,954,168
450,766
789,244
6,907,618
4,242,251
670,920
1,026,518
7,469,941
3,277,992
734,672
119,400
29,586
516,672
1,800,783
2,164,866 1,584,277
4,072,936 3,766,821
104,300
7,349,486 13,390,056
7,325,007 42,597,497 46,881,817
4,673,320 ( 855,225) ( 6,672,731) ( 3,244,218) ( 8,383,191)
6,437,616
6,315,299)
290,660
3,107,535)
2,694,558)
1,978,762
7,099,342
1,250,000
$ 10,328,104
704,756
704,756
1,296.065
( 274,751)
1,021,314
(
(
(
6,437,616 11,455,000
6,315,299)
3,683,309 3,347,358
3,821,573) ( 3,931,853)
15,947) 10,870,505
( 150,469) ( 5,651,417) ( 3,260,165) 2,487,314
544,286 16,534,597 30,602,222 28,114,908
1,250,000
$ 393,817 $ 10,883,180 $ 28,592,057 $ 30,602,222
The Notes to the General Purpose Financial
Statements are an integral part of this statement.
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED SEPTEMBER 30, 2002
(1 of 2)
General Fund Special Revenue Funds
Variance Variance
Favorable Favorable
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
General property tax:
Current and delinquent taxes $ 5,507,009 $ 5,681,424 ($ 174,415) $ $ $
Penalty and interest 47,655 35,130 12,525
5,554,664 5,716,554 ( 161,890)
Gross receipts tax:
Southwestern Bell Telephone Company 538,185 488,715 49,470 -
Texas Utilities Electric Company 1,777,749 1,455,182 322,567 -
Texas Utility Gas Company 127,649 136,555 ( 8,906)
Cable TV 238,612 238,361 251
City Garbage Service 149,510 106,746 42,764
Water and Sewer system 572,775 593,882 ( 21,107) -
Others 97,011 104,697 ( 7,686) 265,987 290,000 ( 24,013)
3,501,491 3,124,138 377,353 265,987 290,000 ( 24,013)
General sales tax 5,600,737 5,823,875 ( 223,138) 3,321,923 3,436,316 ( 114,393)
Car rental tax - 10,148,812 11,000,000 ( 851,188)
Fines and fees:
Municipal Court fines 2,448,532 2,440,059 8,473
Jail income 242,590 160,874 81,716
Dog licenses and pound fees 12,988 12,840 148
Ambulance fees 279,158 227,435 51,723
Library fees 35,316 37,000 ( 1,684)
Zoning fees 20,749 18,749 2,000
Deferred adjudication fee 197,884 190,827 7,057
3,237,217 3,087,784 149,433
Licenses and permits:
Building permits 832,274 232,000 600,274
Miscellaneous permits 270,464 227,775 42,689
Minimum housing 85,493 79,896 5,597
1,188,231 539,671 648,560
Interest income 274,681 280,000 ( 5,319) 307,546 328,000 ( 20,454)
DEA revenues - - 133,138 133,138
Intergovernmental 421,176 418,110 3,066
Other revenues:
Rental income 92,429 105,000 ( 12,571)
Swimming pools 16,811 15,000 1,811 -
Miscellaneous income 140,339 90,829 49,510 205,166 128,239 76,927
249,579 210,829 38,750 205,166 128,239 76,927
Total revenues $ 20,027,776 $ 19,200,961 $ 826,815 $ 14,382,572 $ 15,182,555 $ (799,983)
The Notes to the General Purpose Financial
Statements are an integral part of this statement. 8
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED SEPTEMBER 30, 2002
Expenditures:
Current:
City council/administration
Finance/Purchasing
Police department
Fire department
Administrative services
Planning and development/
Engineering/Animal Control
General and administrative
Parks/recreation/library
Street maintenance
Economic development
Betterment
Staff services
Nondepartmental
Debt service
Principal payments
Interest payments
Capital outlay and maintenance
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses):
Proceeds from bond issuance
Payment to refunded bond escrow agent
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
Fund balance, beginning of year
Prior period adjustment
Fund balance, end of year
Actual
$ 455,262
880,915
6,926,554
4,567,674
580,343
1,046,331
2,522,258
750,218
45,332
688,303
1,954,168
20,417,358
389,582) ( 2,952,688)
1,391,828
( 439,287)
952,541
1,412,250
420,570)
991,680
562,959 ( 1,961,008)
6,423,997
6,423,997
$ 6,986,956 $ 4,462,989
General Fund
Budget
$ 473,443
898,195
7,023,303
4,599,917
550,932
1,131,392
2,776,534
792,474
22,000
572,598
3,312,861
Variance
Favorable
(Unfavorable)
18,181 $
17,280
96,749
32,243
29,411)
85,061
Actual
(2 of 2)
Special Revenue Funds
Variance
Favorable
Budget (Unfavorable)
693,650
7,021,141
254,276 755,357
42,256
23,332)
115,705)
1,358,693
22,153,649 1,736,291
2,563,106
20,422)
18,717)
39,139)
122,703
430,000
661,922
24,479
9,709,252
4,673,320
6,437,616
6,315,299)
290,660
3,107,535)
2,694,558)
2,523,967 1,978,762
7,099,342
1,250,000
$ 2,523,967 $ 10,328,104
991,164
7,874,939
1,006,354
297,514
853,798
250,997
199,059 76,356
430,000
539,906
11, 041,422
122,016)
24,479)
1,332,170
4,141,133 532,187
6,437,616
6,315,299)
290,660
3,107,535)
2,694,558)
4,141,133 ( 2,162,371)
7,099,342
1,250,000
$ 12,490,475 ($ 2,162,371)
The Notes to the General Purpose Financial
Statements are an integral part of this statement, 9
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
Operating revenues:
Water service
Sewer service
Drainage fees
Recreation fees
Insurance premiums
Service fees and miscellaneous
Total operating revenues
Operating expenses:
General and administrative
Water production
Water distribution
Utility engineering
Sewage collection and treatment
Nondepartmental
Geographic information
Service center
Drainage
Recreation classes
Golf course
Pro Shop
Food and beverage
Conference center
Cart operations
Driving range
Athletic complex
Softball complex
Arbor Daze
Insurance costs
Depreciation
Amortization
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Impact fees
Developer contributed assets
Investment income
Interest on bonds
Gain on sale of fixed assets
Total nonoperating revenues (expenses), net
Income (loss) before operating transfers
Operating transfers in
Operating transfers out
Net income
Add depreciation on fixed assets
acquired with contributed capital
Increase in retained earnings
Retained earnings, beginning of year
Prior period adjustment
Retained earnings, end of year
Enterprise
Funds
$ 6,814,958 $
3,510,524
616,224
354,180
6,496,609
Internal
Service
Funds
1,960,751
498,877
17,792,495 2,459,628
427,838
4,228,021
478,796
419,260
1,805,154
1,976,005
239,884
739,181
241,034
347,025
964,826
402,647
910,033
185,204
166,749
259,104
989,321
829,464
1,770,740
35,037
17,415,323
377,172
1,018,964
1,952,320
414,895
( 942,694)
2,443,485
2,820,657
329,400
( 851,747)
2,298,310
421,331
2,719,641
22,021,585
( 1,596,902)
$ 23,144,324
559,439
2,106,464
437,945
3,103,848
( 644,220)
47,096
10,479
57,575
586,645)
717,959
57,348)
73,966
73,966
2,925,244
262,518
$ 3,261,728
259,104
989,321
829,464
2,106,464
2,208,685
35,037
20,519,171
( 267,048)
1,018,964
1,952,320
461,991
( 942,694)
10,479
2,501,060
2,234,012
1,047,359
909,095)
2,372,276
(
421,331
2,793,607
24,946,829
( 1,334,384)
$ 26,406,052
Totals
(Memorandum Only)
2002 ''4001
$ 6,814,958
3,510,524
616,224
354,180
1,960,751
6,995,486
$ 7,361,182
3,635,063
604,067
307,650
1,916,112
7,092,002
20,252,123 20,916,076
987,277 1,971,632
4,228,021 4,502,134
478,796 521,269
419,260 377,846
1,805,154 925,325
1,976,005 2,275,918
239,884 273,029
739,181 718,660
241,034 212,073
347,025 266,776
964,826 1,032,051
402,647 397,362
910,033 824,150
185,204 228,379
166,749 147,798
1,082
183,604
889,384
676,451
2,020,883
2,406,130
27,651
20,879,587
(
(
(
36,489
963,919
1,089,752)
27,893
97,940)
61,451)
2,299,094
( 1,714,599)
523,044
421,331
944,375
24,002,454
$ 24,946,829
The Notes to the General Purpose Financial
Statements are an integral part of this statement. 10
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
by (used in) operating activities:
Enterprise
Funds
Internal
Service
Funds
$ 377,172 ($ 644,220)
Depreciation and amortization expenses 1,805,777
(Gain) loss on sale of fixed assets 276
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue ( 8,552)
Due from other funds 32,423
Prepaids and deposits ( 163,056)
Inventory 33,393
Increase (decrease) due to net changes in:
Accounts payable 386,384
Accrued salaries and wages ( 15,217)
Accrued insurance claims
Due to other funds 204,874
Customer and escrow deposits 17,430
Deferred revenue ( 26,435)
Total adjustments
Net cash provided by (used in)
operating activities
NONCAPITAL FINANCING ACTIVITIES :
Impact fees
Interest paid on bonds
Proceeds from bond issuance
Reduction in bonds payable
Reduction in tax notes payable
Reduction of capital leases payable
Bond issuance costs
Operating transfers in
Operating transfers out
{
{
437,945
( 10,479)
( 122,617)
( 208,796)
34,997
( 10,974)
31,123
2,267,297 151,199
2,644,469 ( 493,021)
1,018,964
949,089)
1,630,000
2,595,000)
9,768)
59,082)
329,400
851,747)
Net cash provided by (used in)
noncapital financing activities ( 1,486,322)
CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of utility plant and equipment
in service
Proceeds from sale of utility plant in
service
717,959
( 57,348)
660,611
( 1,904,979) ( 306,932)
40,841
Net cash used in capital and related
financing activities ( 1,904,979) ( 266,091)
(1 of 2)
Totals
(Memorandum only)
2002 2001
($ 267,048) $ 36,489
2,243,722
( 10,203)
(
(
(
131,169)
32,423
371,852)
33,393
421,381
26,191)
31,123
204,874
17,430
( 26,435)
2,418,496
2,151,448
1,018,964
( 949,089)
1,630,000
2,595,000)
9,768)
59,082)
1,047,359
909,095)
( 825,711)
(
2,433,781
27,893
121,130
31,453
47,476
65,197)
192,946
17,565)
15,759
31,453)
61,161
16,363)
2,801,021
2,837,510
1,089,752)
800,000)
100,000)
16,035)
2,299,094
( 1,714,599)
( 1,421,292)
( 2,211,911) ( 3,307,795)
40,841
( 2,171,070) ( 3,307,795)
The Notes to the General Purpose Financial
Statements are an integral part of this statement. 11
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
INVESTING ACTIVITIES:
Purchase of investment securities
Proceeds from sale of investment securities
Interest received on investments
Net cash provided by (used in)
investing activitives
Net increase (decrease) in cash and
cash equivalents
Enterprise
Funds
($ 847,788) $
447,175
( 400,613)
( 1,147,445)
Cash and cash equivalents, beginning of year 11,351,911
Cash and cash equivalents, end of year $ 10,204,466
Reconciliation of cash to balance sheet:
Cash - current
Cash - restricted assets
Cash and cash equivalents
Restricted assets:
Cash
Investments
Total restricted assets
SUPPLEMENTAL SCHEDULE OF NONCASH
FINANCING AND INVESTING ACTIVITIES
$ 9,732,602
471,864
$ 10,204,466
$ 471,864
3,876,440
$ 4,348,304
Developer contributed assets $ 1,952,320
Internal
Service
Funds
61,523
61,523
( 36,978)
1,645,779
$ 1,608,801
(2 of 2)
Totals
(Memorandum only)
2002 2001
($ 847,788) $
508,698
( 339,090)
( 1,184,423)
12,997,690
$ 11,813,267
1,136, 244
1,020,504
2,156,748
265,171
12,732,519
$ 12,997,690
The Notes to the General Purpose Financial
Statements are an integral part of this statement. 12
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Fund Accounting - continued
Proprietary funds are used to account for activities similar to those found in the private
sector, where the determination of net income is necessary or useful to sound financial
administration. Goods or services from such activities can be provided either to outside
parties (enterprise funds) or to other departments or agencies within the City (internal
service funds).
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental funds are accounted for using a current financial
resources measurement focus. With this measurement focus, only current assets and
current liabilities generally are included in the balance sheet. Operating statements of
these funds present increases (i.e., revenues and other financing sources) and decreases
(i.e., expenditures and other financing uses) in net current assets.
All proprietary funds are accounted for on a flow of economic resources measurement
focus. With this measurement focus, all assets and all liabilities associated with the
operation of these funds are included on the balance sheet. Fund equity (i.e., assets net
of liabilities) is segregated into contributed capital and retained earnings components.
Proprietary fund -type operating statements present increases (e.g., revenues) and
decreases (e.g., expenses) in net assets.
The proprietary funds are accounted for using the accrual basis of accounting. Revenues
are recorded when they are earned, and expenses are recorded at the time liabilities are
incurred or estimated. The City applies all GASB pronouncements, FASB Statements and
interpretations, APB Opinions and ARB's issued on or before November 30, 1989. The
City has elected to apply only GASB pronouncements issued after November 30, 1989 for
proprietary activity.
All governmental fund types and agency funds use 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. Expenditures are recorded when the related fund liability is
incurred. Interest on general long-term debt is recorded as a fund liability when due or
when amounts have been accumulated in the debt service fund for payments to be made
early in the following year.
Revenues considered susceptible to accrual are sales taxes, property taxes, gross
receipts tax and interest revenue. Fine and permit revenues are not susceptible to
accrual because generally they are not measurable until received in cash.
15
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Basis of Accounting - continued
The City reports deferred revenue on its combined balance sheet. Deferred revenues
arise when a potential revenue does not meet both the "measurable" and "available"
criteria for recognition in the current period. Deferred revenues also arise when the
government receives resources before it has legal claim to them, such as grant monies
received prior to qualifying expenditures being incurred. In subsequent periods, when
both revenue recognition criteria are met, or when the City has a legal claim to the
resources, the liability for deferred revenue is removed from the combined balance sheet
and revenue is recognized. Deferred revenues primarily include delinquent property taxes
and unexpended revenues for capital projects.
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
by the City Manager during the year. Total expenditures approved by the City Council
have not been altered. The legal level of control is at the fund level.
5. A budget is legally adopted for the General Fund and Special Revenue Funds on a
basis consistent with generally accepted accounting principles. 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.
16
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Budgetary Data - continued
7. Budgetary data for the Capital Projects Funds has not been presented in the
accompanying combined 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.
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 combined statement of cash flows, the City considers all highly liquid
investments (including cash equivalents reported as restricted assets of $471,864 and
$563,949 at September 30, 2002 and 2001, respectively) 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.
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 $.497254 per $100 of assessed valuation ($.514754 per $100 last year)
and assessed valuation is approximately 100% of estimated value.
17
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Inventories
Inventories, which are recognized as expenditures 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.
Fixed Assets
Fixed assets are recorded at cost (or fair value, if contributed) when acquired. General
fixed assets are recorded as expenditures in the General Fund, Special Revenue Funds,
and Capital Projects Funds at the time of purchase or construction and are capitalized in
the General Fixed Assets Account Group at cost. Public domain ("infrastructure") general
fixed assets consisting of certain improvements other than buildings, including roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems
are not capitalized in the general fixed assets account group. No depreciation is recorded
on general fixed assets.
Expenditures for utility plant and equipment are capitalized in the Proprietary Fund Types.
Depreciation is recorded on each class of depreciable property in the proprietary funds
beginning the year following the year of acquisition and utilizing the straight-line method
over the following estimated useful lives of assets:
Equipment
Waterworks and sanitary sewer system and improvements
Compensated Absences
5 - 15 years
33 1/3 years
Employees may accumulate a maximum of two times their annual vacation. The City's
policy is to pay the employee accumulated vacation upon termination. The City does not
pay employees for accumulated sick leave upon termination. Accumulated vacation in the
proprietary funds has been accrued as incurred and reported as accrued salaries and
wages (a current liability). The accumulated vacation of the governmental fund type,
representing an estimate of the amounts not expected to be liquidated with expendable
available financial resources, has been recorded in the General Long -Term Debt Account
Group.
The estimated vacation liability expected to be satisfied with available financial resources
is included in accrued salaries and wages in the General Fund.
18
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Fund Equity
Certain assets that are restricted to a specific future use or are not available for
appropriation or expenditure are offset by fund balance reserve accounts. Designated
fund balances represent tentative plans for future use of financial resources.
Comparative Data
Comparative total data for the prior year has been presented in the accompanying
combined financial statements in order to provide an understanding of the changes in the
City's financial position, operations and cash flows. Complete comparative data (i.e.,
presentation of prior year totals by fund type in each of the statements) have not been
presented since its inclusion would make the statements unduly complex and difficult to
read.
Memorandum Totals
The totals column on the combined statements are captioned "Memorandum Only" to
indicate that they are presented only to facilitate financial analysis. Data in these columns
do not present financial position, results of operations or cash flows in conformity with
generally accepted accounting principles. Neither is such data comparable to a
consolidation. Interfund eliminations have not been made in the aggregation of this data.
Interfund Transactions
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. Nonrecurring or nonroutine permanent transfers of equity are
reported as residual equity transfers. All other interfund transfers are reported as
operating transfers.
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
At September 30, 2002, the bank balances were $286,963 and the ledger balances of the
City's book cash deposits were ($110,410). Of the bank balances, $286,963 were
protected by federal depository insurance or by collateral held by the City's agent in the
City's name.
19
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS — continued
Investments
At September 30, 2002, 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
$28,707,474 $
3
Carrying
Amount
$28,707,474
58
10,094,940
10.822,559
$49.630,031.
Fair
Value
$28,867,912
58
10,094,940
10,822,559
$49.790 468
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.
NOTE 3. LONG-TERM DEBT
A summary of long-term debt transactions for the year ended September 30, 2002, is as
follows:
General Long -Term Debt
Account Group:
General Obligation Bonds
Certificates of Obligation
Sales tax revenue bonds
Compensated absences
Accreted interest
Balance
Beginning
of Year
$13,214,519
33,880,000
9,295,000
995,228
1.984.636
$5a,369,$3
Increase Decrease
$ $ 804,866
930,000
6,480,000 6,450,000
1,293
110,294 1,313,067
$6,591.5R7_ $9,497,933
Balance
End
of Year
$12,409,653
32,950,000
9,325,000
996,521
781,864
$56.463.038.
20
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT — continued
Proprietary Fund Types:
Water and Sewer Revenue Bonds
Drainage Utility Revenue Bonds
Tax and Golf Course
Surplus Revenue
Certificates of Obligation
Tax and Softball Works Park
Surplus Revenue
Certificates of Obligation
Capital Leases
Balance
Beginning
of Year
$ 4,170,000
1,535,000
9,575,000
1,720,000
9.768
Increase Decrease
$ - $ 580,000
1,630,000 1,705,000
235,000
75,000
9.768
Balance
End
of Year
$ 3,590,000
1,460,000
9,340,000
1,645,000
$17.009.768 $1.630.006 $2,6044,768 V15,035,00
On October 23, 2001, the City issued $1,630,000 in Municipal Drainage Utility System
Revenue Refunding Bonds with an average interest rate of 3.4 percent to advance refund
$1,535,000 of outstanding 1991 Series bonds with an average interest rate of 5.93 percent.
The net proceeds of $1,573,639 ($1,630,000 par amount of bonds plus Debt Service Fund
contribution of $24,180 plus $5,535 of premium paid on bonds less $86,076 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 1991 Series bonds. As a result, the 1991 Series bonds are
considered defeased and the liability for those bonds has been removed from long-term
debt.
The advance refunding did not result in a material difference between the reacquisition price
and the net carrying amount of the old debt. The City completed the advance refunding to
reduce its total debt service payments over the next 9 years by $130,595 and to obtain an
economic gain (difference between the present values of the old and new debt service
payments) of $114,058.
Debt outstanding at September 30, 2002 consists of the following:
General Obligation Bonds
Certificates of Obligation
Sales Tax
Revenue Bonds
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
Range of
Interest Rates
4.60 to 9.20%
4.25 to 8.13%
3.00 to 8,00%
4.50 to 6.75%
3.00 to 4.00%
5.25 to 7.30%
4.10 to 5.25%
21
Outstanding Current
Balance Maturities
$12,409,653 $ 957,838
32,950,000 1,030,000
9,325,000 465,000
3,590,000 290,000
1,460,000 160,000
9,340,000 245,000
1,645,000 80,000
Long -Term
Maturities
$11,451,815
31,920,000
8,860,000
3,300,000
1,300,000
9,095,000
1,565,000
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
The debt matures serially through the year 2027 and has various call options whereby it may
be redeemed during certain periods prior to maturity. A schedule of principal and interest
maturities follows. Due to the nature of the obligation for compensated absences, annual
requirements to amortize such obligations are not determinable and have not been included
in the following summary.
2003
2004
2005
2006
2007
2008-2012
2013-2017
2018-2022
2023-2027
Less interest
General
Obligation
Bonds
$ 2,022,056
2,014,032
1,170,729
1,162,124
1,170,738
4,441,014
4,310,504
3,128,876
19,420,073
7.010,420
Principal $12 409,653
2003
2004
2005
2006
2007
2008-2012
2013-2017
2018-2022
2023-2027
Less interest
Drainage
Utility
Revenue
Bonds
$ 211,055
211,255
211,305
215,355
214,505
647,430
1,710,905
250.905
Certificates
of
Obligation
$ 3,086,246
3,047,984
3,044,845
3,047,992
3,051,047
15,281,486
14,916,525
9,382,946
2.928.840
57,787,911
24.837.911
$32.950.000
Tax and
Golf
Course
Surplus
Revenue
Certificates of
Obligation
$ 778,525
711,702
711,728
711,228
710,202
3,556,226
3,560,092
3,566,300
3.563.422
17,869,425
8.529.425
Principal $1 .4 i0 00(j $ 9 34Q,QQQ
Sales
Tax
Revenue
Bonds
$ 939,256
936,191
942,971
942,656
935,128
4,715,227
3,147,883
168,749
12,728,061
3,403,061
$ 9.325.000
Tax and
Softball
World Park
Surplus
Revenue
Certificates of
Obligation
$ 158,856
160,348
161,540
162,423
162,986
820,963
676,116
2,303,232
658.232
$_L646,QQQ
Water and
Sewer
Revenue
Bonds
$ 489,246
408,946
411,459
278,071
279,971
1,408,681
1,426,140
876,982
5,579,496
1,989,496
$3.590.000
Subtotal
$ 1,148,436
1,083,305
1,084,573
1,089,006
1,087,693
5,024,619
4,236,208
3,566,300
3.563,422
21,883,562
9,438,562
$12,445,00Q
Subtotal
$ 6,536,804
6,407,153
5,570,004
5,430,843
5,436,884
25,846,408
23,801,052
13,557,553
2,928,840
95,515,541
37,240,888
$58,274 653
Grand Total
$ 7,685,240
7,490,458
6,654,577
6,519,849
6,524,577
30,871,027
28,037,260
17,123,853
6.492.262
117,399,103
46,679,450
$_1_4,119,653
22
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
General Obligation Bonds authorized and unissued as of September 30, 2002, amounted to
$3,200,000. Water and Sewer Revenue Bonds authorized and unissued as of September
30, 2002, 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, 2002. 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).
On June 25, 2002, the City issued $6,480,000 in Sales Tax Refunding Bonds with an
average interest rate of 3.7 percent to advance refund $6,020,000 of outstanding 1994
Series bonds with an average interest rate of 6.3 percent. The net proceeds of $6,520,415
($6,480,000 par amount of bonds plus Debt Service Fund contribution of $206,165 plus
$40,861 of premium paid on bonds less $206,611 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 1994 Series bonds. As a result, the 1994 Series bonds are considered defeased and the
liability for those bonds has been removed from the general long-term debt account group.
The City advance refunded the 1994 Series bonds to reduce its total debt service payments
over the next 13 years by almost $470,000 and to obtain an economic gain (difference
between the present values of the debt service payments on the old and new debt) of
$291,312.
23
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 4. RESTRICTED ASSETS
Restricted assets consist of cash, investments and accrued interest primarily restricted for
Water and Sewer Enterprise Fund debt service and water and sewer system replacements.
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 $4,985,000 and are included as operating
expenses of the water and sewer fund. The payments decreased approximately $435,000 in
comparison to 2001.
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. FIXED ASSETS
The following is a summary of changes in the general fixed assets account group during the
fiscal year:
Land
Buildings
Improvements
other than buildings
Construction in progress
Machinery and equipment
Balance
September 30,
2001 Additions
$ 5,206,274
18,641,889
4,665,996
11,579,624
8.630.977
L41724,.7EQ
$ 13,848,476
131,943
574.419
$14.554,838
Balance
September 30,
Deletions Adiustrnents 2002
($ 387,714) $ 4,818,560
1,535,407 34,025,772
( 1,456,527) 3,341,412
J 4.790.086) 4.415.310
$11,579,624 ($5.498,924) $ 46 601,054.
11,579,624
The following is a summary of utility plant and equipment in service at September 30, 2002
included in the proprietary funds:
Water and Drainage
Sewer Fund Utility Fund
Land and building $1,715,431 $ 89,000
Equipment 861,759 -
Improvements - 2,852,413
Waterworks
and sanitary
sewer system 39,536,106
Enterprise Funds
Recreation Golf Course
Classes Fund
$ 3,750,918
1,227,653
7,613,782
•
Internal
Softball Athletic Service
Complex Complex Funds
$ 912,712 $ 160,095 $ -
91,057 63,919 4,324,136
474,116 5,122,655
24
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 6. FIXED ASSETS — continued
Construction
in progress
Enterprise Funds
Internal
Water and Drainage Recreation Golf Course Softball Athletic Service
Sewer Fund Utility Fund Classes Fund Complex Complex Funds
316.289
42,429,585 2,941,413 12,592,353 1,477,885 5,346,669 4,244,825
Less accumulated
depreciation 18.150.767 531.036 2.023.156 251.986 777.582 2,757,642
$24.271818 $_2.414Z7 $ $14 5.89.197 $,,225,895 $4.569.487 $1 487.183
NOTE 7. SERVICE CENTER
The Water and Sewer Enterprise Fund historically bears the major portion of the operating
costs of the City's service center, which provides services to all City departments.
NOTE 8. INTERFUND ASSETS/LIABILITIES
Receivable Fund Payable Fund Amount
Water and Sewer Golf Course $ 255,917
Car Rental Golf Course 1,487,297
Softball Complex Athletic Complex 329,000
$2.072.214
NOTE 9. CONTRIBUTED CAPITAL
The activity within the Enterprise Fund contributed capital for the year ended
September 30, 2002 is as follows:
Balance, September 30, 2001 $12,991,850
Prior period adjustment 3,426,479
Depreciation expense for the
year ended September 30, 2002 ( 421.331)
Balance, September 30, 2002 $15.996.998
25
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 10. 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 2002, the City and
City's employees contributed approximately $1,186,000 and $512,000, 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 claims that have been
incurred but not reported, and are accounted for in the Internal Service Risk Management
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 2002, the City contributed
approximately $262,000 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
2002
$ 76,281
1,383,084
1,351.961
$ 107,404
2001
$ 60,522
2,001,774
1.986.015
$ 76,281
The City had no significant reductions in insurance coverage from the year ended
September 30, 2001. Settlement amounts have not exceeded insurance coverage for the
year ended September 30, 2002 or any of the three preceding years ended September 30.
NOTE 11. 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
26
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM — continued
Municipal Retirement System (TMRS), one of 758 administered by TMRS, an agent
multiple -employer public employee retirement system. Each of the 758 Municipalities
have an annual, individual actuarial valuation performed. All assumptions for the 12/31/01
valuations are contained in the 2001 TMRS Comprehensive Annual Financial Report, a
copy of which may be obtained by writing to P. O. Box 149153, Austin, Texas 78714-
9153.
Benefits depend upon the sum of the employee's contributions to the plan, with interest,
and City -financed monetary credits, with interest. At the date the plan began, the City
granted monetary credits for service rendered before the plan began of a theoretical
amount equal to two times what would have been contributed by the employee with
interest, prior to establishment of the plan. Monetary credits for service since the plan
began are a percent (100%, 150%, or 200%) of the employee's accumulated
contributions. In addition, the City can grant, as often as annually, another type of
monetary credit referred to as an updated service credit which is a theoretical amount
which, when added to the employee's accumulated contributions and the monetary credits
for service since the plan began, would be the total monetary credits and employee
contributions accumulated with interest if the current employee contribution rate and the
City matching percent had always been in existence and if the employee's salary had
always been the average of his salary in the last three years that are one year before the
effective date. At retirement, the benefit is calculated as if the sum of the employee's
accumulated contributions with interest and the employer -financed monetary credits with
interest were used to purchase an annuity.
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)
27
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM — continued
Contributions — continued
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, 2001 valuation is effective for rates beginning January 2003)
Schedule of Actuarial Liabilities and Funding Progress
Actuarial Valuation Date 12/31/01
Actuarial Value of Assets $45,049,200
Actuarial Accrued Liability $53,684,325
Percentage Funded 83.9%
Unfunded Actuarial Accrued Liability (UAAL) $ 8,635,125
Annual Covered Payroll $15,092,260
UAAL as a Percentage of Covered Payroll 57.2%
Net Pension Obligation (NPO) at the Beginning of Period $
Annual Pension Cost:
Annual Required Contribution (ARC) $ 2,125,493
Interest on NPO -
Adjustment to the ARC -
Total annual pension cost $ 2,125,493
Contributions Made ( 2,125,493)
Increase in NPO -
NPO at the end of the period $
Trend information for the past three years for TMRS is as follows:
Annual Percentage
Pension Cost of APC Net Pension
Year (APC) Contributed Obliaation
1999 $ 1,827,142 100%
2000 1,971,084 100
2001 2,125,493 100
28
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
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 12. SEGMENTS OF ENTERPRISE ACTIVITIES
Unit Credit
Level Percent of Payroll
25 years - Open Period
Amortized Cost
8%
None
None
None
The City maintains seven Enterprise Funds. The Water and Sewer Fund provides water
distribution and wastewater collection services and contractually secures water supply and
wastewater treatment services from the Trinity River Authority. The Drainage Utility Fund
provides drainage services. The Recreation Classes, Golf Course, Softball Complex,
Athletic Complex and Arbor Daze provide various recreational services and activities.
Segment information for the City's Enterprise Funds is as follows:
Water and
Sewer Fund
Drainage Recreation Golf Softball
Utility Fund Classes Course Complex
Operating revenues $11,366,525 $ 616,224 $354,180 $ 3,116,173 $1,180,898
Depreciation 1,020,861 81,202 - 434,473 39,808
Operating
income (loss) 33,962 280,632 7,155 46,043 149,727
Operating
transfers in - - 212,984 16,416
transfers out 732,775 31,685 70,871
Net income (loss) 2,394,123 210,929 10,520 ( 362,543) 94,561
Property, plant
and equipment:
Additions 4,954,275 - 1,209,670 16,200
Total Assets 38,076,561 3,874,246 169,896 11,118,407 2,238,631
Net working capital 7,800,620 1,360,045 158,373 265,568 896,108
Long-term debt,
including
current portion 3,590,000 1,460,000 - 9,340,000 1,645,000 - 16,035,000
Athletic Arbor
Complex Daze Total
$ 315,035 $843,460 $17,792,495
194,396 - 1,770,740
( 154,343) 13,996 377,172
100,000 329,400
16,416 851,747
67,777) 18,497 2,298,310
3,666 - 6,183,813
4,789,026 247,981 60,514,748
207,547 246,240 10,934,501
Total Equity 31,573,696 2,384,432 158,373 ( 172,288) 493,644 4,457,225 246,240 39,141,322
29
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 13. CAPITAL LEASES
The City entered into a lease agreement as lessee for financing the acquisition of machinery and
equipment. This lease agreement qualified as a capital lease for accounting purposes and, therefore, was
recorded at the present value of the future minimum lease payments as of the date of its inception. These
assets are stated on the balance sheet at their capitalized cost of $883,367. The lease was paid off in the
current year and is no longer included as a liability as of September 30, 2002.
NOTE 14. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2002, the following individual funds had an excess of expenditures over
appropriations:
DEA Task Force Fund ($65,572)
Police Drug Enforcement Fund ($54,350)
Police Department Grant Funds ($ 8,401)
NOTE 15. DEFICIT RETAINED EARNINGS
A deficit retained earnings of $172,288 exists in the Golf Course Fund.
NOTE 16. PRIOR PERIOD ADJUSTMENT
Subsequent to issuance of the City's general purpose financial statements for the year ended
September 30, 2001, 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 decreasing unreserved retained earnings in
the Enterprise Funds by ($346,902), increasing unreserved retained earnings in the Internal Service
Funds by $262,518, and decreasing the total net utility plant and equipment in service by ($84,384).
In addition, subsequent to issuance of the City's general purpose financial statements for the year
ended September 30, 2001, it was discovered that a loan to the Golf Course Fund from the Car Rental
Tax Fund was actually recorded as an interfund transfer to the Golf Course Fund. Accordingly, an
adjustment was made to correct the beginning balances reported in previous financial statements,
which had the affect of increasing unreserved undesignated fund balance and due from other funds in
the Special Revenue Funds, decreasing unreserved retained earnings and increasing due to other
funds in the Enterprise Funds by $1,250,000.
Subsequent to issuance of the City's general purpose financial statements for the year ended
September 30, 2001, the City discovered an error in the amount of contributed capital recorded in the
Enterprise Funds. Accordingly, an adjustment was made to correct the -beginning balances reported in
previous financial statements, which had the affect of decreasing unreserved retained earnings by
$87,506, increasing utility plant and equipment in service by $3,338,973 and increasing contributed
capital by $3,426,479.
30
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION
IN TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2002
Actuarial Actuarial
Valuation Value of
Date Assets
12/31/99 $ 37,889,214
12/31/00 42,116,506
12/31/01 45,049,200
Actuarial
Accrued
Liability
Percentage
Funded
$ 46,007,148 82.36%
50,370,674 83.61 %
53,684,325 83.91%
Unfunded
Actuarial
Accrued
Liability
$ 8,117,934
8,254,168
8,635,125
Annual
Covered
Payroll
$ 13,061,776
14,189,470
15,092,260
Unfunded Actuarial
Accrued Liability
as a Percentage
of Covered Payroll
62.15%
58.17%
57.22%
INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
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.
Car Rental Tax Fund — 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.
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
Police Crime
Drug Half DEA Control and Police
Hotel/ Enforce- Penny Task Prevention Department Car
Motel ment Sales Tax Force District Grant Rental Tax Totals
Fund Fund Fund Fund Fund Funds Fund 2002 2001
ASSETS
Deposits and investments $ 177,796 $ 216,629 $ 2,100,679 $ 4,427 $ 614,543 $ 41,608 $ 9,765,325 $ 12,921,007 $ 11,595,745
Accounts receivable 50,373 4,569 28,773 1,537,743 1,621,458 1,629,385
Accrued interest receivable - - 8,438 844 70,283 79,565 51,871
Prepalds 60 - - - - 60 1,641
Due from other funds - 1,487,297 1,487,297 -
Due from other governments 404,600 181,793 586,393 591,903
Total assets
LIABILITIES AND FUND EQUITY
$ 228,169 $ 221,198 $ 2,513,777 $ 4,427 $ 797,180 $ 70,381 $ 12,860,648 $ 16,695,780 $ 13,870,545
LIABILITIES:
Accounts payable $ 60 $ 6,426 $ 40,080 $ - $ 4,374 $ 86 $ $ 51,026 $ 111,697
Accrued salaries and wages - 13,611 1,034 20,416 2,742 37,803 27,282
Due to other governments - 6,278,847 6,278,847 6,632,224
Total liabilities 60 6,426 53,691 1,034 24,790 2,828 6,278,847 6,367,676 6,771,203
FUND EQUITY:
Fund Balances:
Reserve for debt service 950,618 950,618 978,335
Reserve for historical preservation 1,323 - - - - - 1,323 1,323
Unreserved, undesignated 226,786 214,772 1,509,468 3,393 772,390 67,553 6,581,801 9,376,163 6,119,684
Total fund equity 228,109 214,772 2,460,086 3,393 772,390 67,553 6,581,801 10,328,104 7,099,342
Total liabilities and fund equity $ 228,169 $ 221,198 $ 2,513,777 $ 4,427 $ 797,180 $ 70,381 $ 12,860,648 $ 16,695,780 $ 13,870,545
32
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
Police Crime
Drug Half DEA Control and Police
Hotel/ Enforce- Penny Task Prevention Department Car
Motel ment Sales Tax Force District Grant Rental Tax Totals
Fund Fund Fund Fund Fund Funds Fund 2002 2001
Revenues:
Gross receipts tax $ 265,987 $ $ - $ - $ - $ $ $ 265,987 $ 279,860
General sales tax - 2,240,295 - 1,081,628 - 3,321,923 3,242,268
Car rental tax - - - 10,148,812 10,148,812 11,048,696
Interest income 4,305 3,219 40,215 207 11,213 637 247,750 307,546 536,599
DEA revenues - 133,138 - - - 133,138 71,457
Other revenues 224 - 65,278 - 136,851 2,813 205,166 192,644
Total revenues 270,516 136,357 2,280,510 65,485 1,092,841 137,488 10,399,375 14,382,572 15,371,524
Expenditures:
General and administrative 84,250 28,730 - 6,908,161 7,021,141 7,469,941
Police department 47,656 - 66,830 425,409 153,755 693,650 527,153
Parks - - 371,148 - 371,148 490,216
Library 384,209 - 384,209 381,359
Economic development - 122,703 122,703 119,400
Debt service
Principal 430,000 - 430,000 405,000
Interest and fiscal charges 661,922 661,922 566,205
Capital outlay
and maintenance 11,694 12,785 24,479 621,381
Total expenditures 84,250 59,350 1,998,712 66,830 438,194 153,755 6,908,161 9,709,252 10,580,655
Other financing sources (uses):
Proceeds from bond issuance - 6,437,616 - 6,437,616
Payment for bond escrow - - ( 6,315,299) - - ( 6,315,299)
Operating transfers in - - 19,789 270,871 290,660 9,622
Operating transfers out (177,120) ( 2,674) ( 48,692) ( 500,000) - ( 2,379,049) ( 3,107,535) ( 3,124,196)
Total other
financing sources (uses) (177,120) ( 2,674) 73,625 ( 500,000) 19,789 (2,108,178) ( 2,694,558) (3,114,574)
Excess (deficiency) of
revenues and other
financing sources
over expenditures and
other financing uses 9,146 74,333 355,423 (1,345) 154,647 3,522 1,383,036 1,978,762 1,676,295
Fund balance,
beginning of year 218,963 140,439 2,104,663 4,738 617,743 64,031 3,948,765 7,099,342 5,423,047
Prior period adjustment
1,250,000 1,250,000
Fund balance, end of year $ 228,109 $ 214,772 $ 2,460,086 $ 3,393 $ 772,390 $ 67,553 $ 6,581,801 $ 10,328,104 $ 7,099,342
33
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2002
Hotel/Motel Fund Half Penny Sales Tax Fund
Variance Variance
Favorable Favorable
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
Revenues:
Gross receipts tax $ 265,987 $ 290,000 ($ 24,013) $ - $ - $
General sales tax 2,240,295 2,278,926 ( 38,631)
Car rental tax - - - - -
Interestincome 4,305 8,000 ( 3,695) 40,215 50,000 ( 9,785)
DEA revenues - - - -
Other revenues 224 224 -
Total revenues 270,516 298,000 ( 27,484) 2,280,510 2,328,926 ( 48,416)
Expenditures:
General and administrative 84,250 118,350 34,100 28,730 283,100 254,370
Police department - - -
Parks 371,148 468,063 96,915
Library 384,209 538,291 154,082
Economic Development 122,703 199,059 76,356
Debt Service Principal 430,000 430,000
Debt Service Interest - 661,922 539,906 ( 122,016)
Capital outlay and maintenance - - -
Total expenditures 84,250 118,350 34,100 1,998,712 2,458,419 459,707
Other financing sources (uses):
Proceeds from bond issuance 6,437,616 6,437,616
Payment for bond escrow ( 6,315,299) ( 6,315,299)
Operating transfers in -
Operating transfers out ( 177,120) ( 177,120) ( 48,692) ( 103,428) 54,736
Total other
financing sources (uses) (177,120) (177,120) 73,625 ( 103,428) 177,053
Excess (deficiency) of
revenues and other
expenditures and other
financing uses 9,146 2,530 6,616 355,423 ( 232,921) 588,344
Fund balance,
beginning of year 218,963 218,963 2,104,663 2,104,663
Prior period adjustment
Fund balance, end of year
$ 228,109 $ 221,493 $ 6,616 $ 2,460,086 $ 1,871,742 $ 588,344
34
(1 of 2)
DEA Task Force Fund Crime Control and Prevention District Fund Police Drug Enforcement Fund
Variance Variance Variance
Favorable Favorable Favorable
Actual Budget (Unfavorable) Actual Budget (Unfavorable) Actual Budget (Unfavorable)
207
65,278
$ $ - $ - $ - $ $ $
1,081,628 1,157,390 ( 75,762)
207 11,213 15,000 ( 3,787) 3,219 5,000 ( 1,781)
- 133,138 - 133,138
65,278
65,485 65,485 1,092,841 1,172,390
79,549) 136,357 5,000 131,357
66,830 1,258 ( 65,572) 425,409 839,552 414,143 47,656 5,000 ( 42,656)
12,785 53,285 40,500 11,694 - ( 11,694)
66,830 1,258 ( 65,572) 438,194 892,837 454,643 59,350 5,000 ( 54,350)
( 500,000) ( 500,000) ( 2,674) - ( 2,674)
( 500,000) ( 500,000) ( 2,674) ( 2,674)
( 1,345) ( 1,258) ( 87) 154,647 ( 220,447) 375,094 74,333 74,333
4,738 4,738 617,743 617,743 - 140,439 140,439
$ 3,393 $ 3,480 ($ 87) $ 772,390 $ 397,296 $ 375,094 $ 214,772 $ 140,439 $ 74,333
35
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES and
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2002
Revenues:
Gross receipts tax
General sales tax
Car rental tax
Interest income
DEA revenues
Other revenues
Total revenues
Expenditures:
General and administrative
Police department
Parks
Library
Economic Development
Debt Service Principal
Debt Service Interest
Capital outlay and maintenance
Total expenditures
Other financing sources (uses):
Police Department Grant Funds
Variance
Favorable
Actual Budget (Unfavorable)
Actual
(2 of 2)
Car Rental Tax Fund
Variance
Favorable
Budget (Unfavorable)
$ $ - $ $ $ $
- 10,148,812 11,000,000 ( 851,188)
637 637 247,750 250,000 ( 2,250)
136,851 128,239 8,612 2,813 2,813
137,488 128,239 9,249 10,399,375 11,250,000 ( 850,625)
6,908,161 7,473,489 565,328
153,755 145,354 ( 8,401)
153,755 145,354 ( 8,401) 6,908,161 7,473,489 565,328
Operating transfers in 19,789 17,115 2,674 270,871 166,686 104,185
Operating transfers out - - ( 2,379,049) ( 2,379,049)
Total other
financing sources 19,789 17,115 2,674 ( 2,108,178) ( 2,212,363) 104,185
Excess of revenues and
and other financing sources over
expenditures and other
financing uses
3,522 3,522 1,383,036 1,564,148
Fund balance,
beginning of year 64,031 64,031 3,948,765 3,948,765
Prior period adjustment
Fund balance, end of year
1,250,000 1,250,000
(
181,112)
$ 67,553 $ 64,031 $ 3,522 $ 6,581,801 $ 6,762,913 ($ 181,112)
36
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.
Street Capital Improvements Fund- to account for the 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.
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
Park
Improvements Street
Certificates of Street Capital
Obligation Assessments Improvements
Fund (1990) Fund Fund
ASSETS
Deposits and investments $ 7,998 $ 44,970 $ 8,663,454
Accrued interest receivable
Prepaids
Total assets $ 7,998 $ 44,970 $ 8,663,454
LIABILITIES AND FUND EQUITY
Accounts payable
Escrow Deposits
Total liabilities
$ $ $ 282,286
282,286
Fund Balances:
Reserve for development
agreements
Unreserved, undesignated 7,998 44,970 8,381,168
Total fund equity 7,998 44,970 8,381,168
Total liabilities and fund equity $ 7,998 $ 44,970 $ 8,663,454
37
Half -Penny Police G.O.
Sales Tax Developers' Car Rental Facility Capital
Construction Contribution Capital Projects Construction Projects Totals
in Progress Fund Fund Fund Fund 2002 2001
$ 380,966 $ 1,666,339 $ 105,898 $ 377,242 $ 280,522 $ 11,527,389 $ 19,096,632
16,669 - 16,669 52,844
- 10,000 10,000
$ 380,966 $ 1,683,008 $ 115,898 $ 377,242 $ 280,522 $ 11,554,058 $ 19,149,476
$ - $ $ 154 $ 200,245 $ 188,193 $ 670,878 $ 2,614,737
- - 142
154 200,245 188,193 670,878 2,614,879
1,683,008 1,683,008 1,367,369
380,966 115,744 176,997 92,329 9,200,172 15,167,228
380,966 1,683,008 115,744 176,997 92,329 10,883,180 16,534,597
$ 380,966 $ 1,683,008 $ 115,898 $ 377,242 $ 280,522 $ 11,554,058 $ 19,149,476
38
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
Revenues:
Interest income
Other revenue
Park
Improvements Street
Certificates of Street Capital
Obligation Assessments Improvements
Fund (1990) Fund Fund
$
$ $ 222,650
Total revenues 222,650
Expenditures:
General and administrative
Parks/recreation/library
Economic development
Issuance costs
Capital outlay and maintenance
3,371,375
Total expenditures 3,371,375
Excess (deficiency) of revenues
over expenditures ( 3,148,725)
Other financing sources (uses):
Proceeds from issuance of bonds
Operating transfers in
Operating transfers out
499,751
Total other financing sources (uses) 499,751
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses
( 2,648,974)
Fund balances, beginning of year 7,998 44,970 11,030,142
Fund balances, end of year $ 7,998 $ 44,970 $ 8,381,168
39
Half -penny Police G.O.
Sales tax Developers' Car Rental Facility Capital
Construction Contribution Capital Projects Construction Projects
in Progress Fund Fund Fund Fund
2002
Totals
2001
$ 15,799 $ 42,509 $ $ $ 11,833 $ 292,791 $ 805,581
10,000 349,485 359,485 118,114
25,799 391,994
11,833
652,276 923,695
104,300
125,105 1,604 1,689,594 1,265,963 871,366 7,325,007 12,768,675
125,105 1,604 1,689,594 1,265,963 871,366 7,325,007 12,872,975
( 99,306) 390,390 (1,689,594) ( 1,265,963) ( 859,533) ( 6,672,731) (11,949,280)
25,000
(
488,097
74,751) ( 200,000)
283,217
11,455,000
1,296,065 1,404,367
( 274,751) ( 638,803)
25,000 ( 74,751) 288,097 283,217 1,021,314 12,220,564
( 74,306) 315,639 (1,401,497) ( 1,265,963) ( 576,316) ( 5,651,417)
271,284
455,272 1,367,369 1,517,241 1,442,960 668,645 16,534,597 16,263,313
$ 380,966 $ 1,683,008 $ 115,744 $ 176,997 $ 92,329 $ 10,883,180 $ 16,534,597
ENTERPRISE 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.
Water and Sewer Fund - 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 - to account for the acquisition, operation and maintenance
of a municipal drainage utility, supported primarily by user charges.
Recreation Classes - to account for the operation of recreational programs and
activities which are offered to groups and individuals on a fee basis.
Golf Course Fund - to account for the operation and maintenance of the golf
course, supported primarily by user charges.
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.
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
Water and Drainage Recreation
Sewer Utility Classes
ASSETS
Current assets:
Deposits and investments $ 6,943,913 $ 1,329,327 $ 169,322
Accounts receivable and unbilled revenue less allowance
for uncollectibles of $1,463 for water and sewer
and $3,924 for drainage utility 1,883,604 36,141 574
Accrued interest receivable 94,449 4,911
Prepaids and deposits 163,762
Inventory 62,794 -
Due from other funds 255,917
Total current assets
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond emergency:
Short-term investments
Capital projects account:
Cash and cash equivalents
Short-term investments
9,404,439 1,370,379 169,896
385,751
500,000
86,113
3,376,440
Total restricted assets 4,348,304
Bond issuance cost 145,373 166,554
Less accumulated amortization 100,373 73,064
Net bond issuance cost 45,000 93,490
Utility plant and equipment in service, at cost
Land and building 1,715,431 89,000
Equipment 861,759
Improvements - 2,852,413
Construction in progress 316,289
Waterworks and sanitary sewer system 39,536,106
42,429,585 2,941,413
Less accumulated depreciation 18,150,767 531,036 -
Net utility plant and equipment in service 24,278,818 2,410,377
TOTAL ASSETS $ 38,076,561 $ 3,874,246 $ 169,896
41
(1 of 2)
Golf Softball Athletic Arbor Totals
Course Complex Complex Daze 2002 2001
$ 222,824 $ 614,346 $ 205,313 $ 247,557 $ 9,732,602 $ 10,787,962
119,652 2,098 - 2,042,069 2,033,515
44 99,404 131,686
14,287 6,281 1,004 424 185,758 22,703
116,286 31,612 4,031 214,723 248,117
329,000 584,917 617,340
473,049 983,381 210,348 247,981 12,859,473 13,841,323
385,751 381,957
500,000 500,000
86,113
3,376,440
181,992
2,528,652
4,348,304 3,592,601
116,003 42,879 14,259 485,068 425,987
39,842 13,528 4,668 231,475 196,440
76,161 29,351 9,591 253,593 229,547
3,750,918
1,227,653
7,613,782
12,592,353
2,023,156
10,569,197
912,712 160,095 6,628,156 8,532,624
91,057 63,919 2,244,388 3,572,313
474,116 5,122,655 16,062,966 13,474,884
- 316,289 2,116,529
39,536,106 31,263,055
1,477,885 5,346,669 - 64,787,905 58,959,405
251,986 777,582 21,734,527 21,071,887
1,225,899 4,569,087 43,053,378 37,887,518
$ 11,118,407 $ 2,238,631 $ 4,789,026 $ 247,981 $ 60,514,748 $ 55,550,989
42
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable
Accrued salaries and wages
Deferred revenue
Water and Drainage Recreation
Sewer Utility Classes
$ 1,449,396 $ 10,334 $ 11,523
154,423
Total current liabilities 1,603,819
10,334 11,523
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,244,236 -
Current portion of bonds payable 290,000 160,000
Current portion of capital leases payable -
Accrued interest 31,137 19,480
Bonds payable 3,300,000 1,300,000
Deferred revenue 33,673 -
Due to other funds -
Total liabilities 6,502,865 1,489,814 11,523
Fund equity:
Contributed capital:
From state From subdividers 19,044,531
From Intergovernmental
From Environmental Protection Agency 239,617
From Trinity River Authority 15,000
Accumulated depreciation on assets
acquired with contributed capital
Net contributed capital
19,299,148
8,872,890
10,426,258
Retained earnings (deficit):
Reserved for:
Debt service and construction 30,192 231,119
Recycling 31,311
Emergency 500,000 -
Outstanding work 6,000
Total reserved 567,503 231,119
Unreserved 20,579,935 2,153,313 158,373
Total retained earnings (deficit) 21,147,438 2,384,432 158,373
Total fund equity 31,573,696 2,384,432 158,373
TOTAL LIABILITIES AND FUND EQUITY $ 38,076,561 $ 3,874,246 $ 169,896
43
(2 of 2)
Golf Softball Athletic Arbor Totals
Course Complex Complex Daze 2002 2001
$ 77,668 $ 63,318
67,244 23,955
62,569 -
207,481 87,273
2,144
657
$ 1,741
2,801 1,741
$ 1,616,124 $ 1,228,552
246,279 262,685
62,569 64,535
1,924,972 1,555,772
- - 1,244,236 1,226,806
245,000 80,000 775,000 1,020,000
- - - 9,768
- 11,889 62,506 68,901
9,095,000 1,565,000 15,260,000 15,980,000
825 - 34,498 58,967
1,743,214 329,000 2,072,214 617,340
11,290,695 1,744,987 331,801 1,741 21,373,426 20,537,554
500,000 500,000 500,000
- 19,044,531 15,705,558
405,633 4,643,009 5,048,642 4,961,137
- - - 239,617 239,617
22,098 37,098 37,097
427,731 5,143,009 24,869,888 21,443,409
8,872,890 8,451,559
427,731 5,143,009 15,996,998 12,991,850
261,311 30,192
31,311 31,311
500,000 500,000
6,000 6,000
798,622 567,503
( 600,019) 493,644 ( 685,784) 246,240 22,345,702 21,454,082
( 600,019) 493,644 ( 685,784) 246,240 23,144,324 22,021,585
( 172,288) 493,644 4,457,225 246,240 39,141,322 35,013,435
$ 11,118,407 $ 2,238,631 $ 4,789,026 $ 247,981 $ 60,514,748 $ 55,550,989
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
Operating revenues:
Water service
Sewer service
Drainage fees
Recreation fees
Service fees and miscellaneous
Total operating revenues
Operating expenses:
General and administrative
Water production
Water distribution
Utility engineering
Sewage collection and treatment
Nondepartmental
Geographic information
Service center
Drainage
Recreation classes
Golf course
Pro Shop
Food and beverage
Conference center
Cart operations
Driving range
Athletic complex
Softball complex
Arbor Daze
Depreciation
Amortization
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Impact fees
Developer contributed assets
Investment income
Interest on bonds
Total nonoperating revenues (expenses), net
Income (loss) before operating transfers
Operating transfers in
Operating transfers out
Net income (loss)
Add depreciation on fixed assets
acquired with contributed capital
Increase (decrease) in retained earnings
Retained earnings (deficit), beginning of year
Prior period adjustment
Retained earnings (deficit), end of year
Water and
Sewer
$ 6,814,958 $
3,510,524
1,041,043
11,366,525
412,639
4,228,021
478,796
419,260
1,805,154
1,976,005
239,884
739,181
1,020,861
12,762
11,332,563
33,962
1,018,964
1,952, 320
352,886
( 231,234)
3,092,936
3,126, 898
( 732,775)
2,394,123
421,331
2,815,454
18,031,616
300,368
$ 21,147,438
Drainage
Utility
616,224
Recreation
Classes
$
354,180
616,224 354,180
241,034
347,025
81,202
13,356
335,592 347,025
280,632 7,155
29,628 3,365
( 67,646) -
( 38,018) 3,365
242,614 10,520
( 31,685)
210,929 10,520
210,929 10,520
2,027,819 147,853
145,684
$ 2,384,432 $ 158,373
45
Golf Softball Athletic Arbor Totals
Course Complex Complex. Daze 2002 2001
$ $ $ $ $ 6,814,958 $ 7,361,182
3,510,524 3,635,063
616,224 604,067
- - - 354,180 307,650
3,116,173 1,180,898 315,035 843,460 6,496,609 6,585,884
3,116,173 1,180,898 315,035 843,460 17,792,495 18,493,846
15,199 427,838 1,328,581
- 4,228,021 4,502,134
478,796 521,269
419,260 377,846
1,805,154 925,325
1,976,005 2,275,918
239,884 273,029
739,181 718,660
241,034 212,073
- 347,025 266,776
964,826 964,826 1,032,051
402,647 - 402,647 397,362
910,033 910,033 824,150
185,204 185,204 228,379
166,749 166,749 147,798
- 1,082
- 259,104 259,104 183,604
989,321 - 989,321 889,384
829,464 829,464 676,451
434,473 39,808 194,396 - 1,770,740 1,924,172
6,198 2,042 679 35,037 27,651
3,070,130 1,031,171 469,378 829,464 17,415,323 17,733,695
46,043 149,727 ( 154,343) 13,996 377,172 760,151
1,018,964
1,952,320 -
11,033 10,500 2,982 4,501 414,895 871,680
( 561,732) ( 82,082) - ( 942,694) ( 1,089,752)
( 550,699) ( 71,582) 2,982 4,501 2,443,485 ( 218,072)
( 504,656) 78,145 ( 151,361) 18,497 2,820,657 542,079
212,984 16,416 100,000 329,400 1,515,011
( 70,871) ( 16,416) ( 851,747) ( 1,633,612)
( 362,543) 94,561 ( 67,777) 18,497 2,298,310 423,478
( 362,543) 94,561 ( 67,777) 18,497
1,503,924 583,216 ( 500,586) 227,743
( 1,741,400) ( 184,133) ( 117,421)
($ 600,019) $ 493,644 ($ 685,784) $ 246,240
421,331 421,331
2,719,641 844,809
22,021,585 21,176,776
1,596,902)
23,144,324 $ 22,021,585
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
Water and Drainage Recreation
Sewer Utility Classes
OPERATING ACTIVITIES
Operating income (loss) $ 33,962 $ 280,632 $ 7,155
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation and amortization 1,033,623 94,558 -
Loss on disposal of equipment - 276
(Increase) decrease due to changes in:
Accounts receivable and unbilled revenue ( 13,904) 845 ( 564)
Due from other funds 17,423 - -
Prepaids and deposits ( 162,073) 45
Inventory ( 1,056)
Increase (decrease) due to net changes in:
Accounts payable 330,957 ( 6,760) 4,640
Accrued salaries and wages ( 17,917) ( 2,316) -
Due to other funds -
Customer and escrow deposits 17,430
Deferred revenue ( 7,800)
Total adjustments 1,196,683 86,327 4,397
Net cash provided by operating activities 1,230,645 366,959 11,552
NONCAPITAL FINANCING ACTIVITIES
Impact fees 1,018,964 -
Interest paid on bonds ( 231,234) ( 74,041)
Proceeds from bond issuance 1,630,000
Reduction in bonds payable ( 2,210,000) ( 75,000)
Reduction in tax notes payable -
Reduction in capital leases payable -
Bond issuance costs ( 59,082)
Operating transfer in
Operating transfer out ( 732,775) ( 31,685)
Net cash provided by (used in)
noncapital financing activities ( 525,045) ( 239,808)
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of utility plant and equipment in service ( 684,896)
Net cash used in capital
and related financing activities ( 684,896)
INVESTING ACTIVITIES
Purchase of investment securities ( 847,788)
Proceeds from sale of investment securities -
Interest received on investments 379,290 33,700 3,365
Net cash provided by
(used in) investing activities ( 468,498) 33,700 3,365
Net increase (decrease) in cash and cash equivalents ( 447,794) 160,851 14,917
Cash and cash equivalents, beginning of year 7,863,571 1,168,476 154,405
Cash and cash equivalents, end of year $ 7,415,777 $ 1,329,327 $ 169,322
47
Golf Softball Athletic Arbor Totals
Course Complex Complex Daze 2002 2001
$ 46,043 $ 149,727 ($ 154,343) $ 13,996 $ 377,172 $ 760,151
440,671 41,850 195,075 1,805,777 1,951,823
- - 276 -
4,396 675 ( 8,552) 121,130
- 15,000 - 32,423 31,453
3,341 ( 4,327) ( 1,005) 963 ( 163,056) 47,476
22,230 13,567 ( 1,348) - 33,393 ( 65,197)
12,182 45,209 156 386,384 117,305
601 4,222 ( 996) 1,189 ( 15,217) ( 25,170)
219,874 - ( 15,000) 204,874 ( 31,453)
- - - 17,430 61,161
( 1,966) ( 16,669) - ( 26,435) ( 16,363)
701,329 99,527 176,882 2,152 2,267,297 2,192,165
747,372 249,254 22,539 16,148 2,644,469 2,952,316
- - 1,018,964
( 561,732) ( 82,082) ( 949,089) ( 1,089,752)
- 1,630,000
( 235,000) ( 75,000) ( 2,595,000) ( 800,000)
( 100,000)
( 9,768) ( 9,768) ( 16,035)
- ( 59,082)
212,984 16,416 100,000 329,400 1,515,011
( 70,871) - ( 16,416) ( 851,747) ( 1,633,612)
( 664,387) ( 140,666) 83,584 ( 1,486,322) ( 2,124,388)
( 1,200,217) ( 16,200) ( 3,666) ( 1,904,979) ( 2,854,776)
( 1,200,217) ( 16,200) ( 3,666) ( 1,904,979) ( 2,854,776)
( 847,788) -
- - - 1,136,244
12,793 10,544 2,982 4,501 447,175 924,815
12,793 10,544 2,982 4,501 ( 400,613) 2,061,059
( 1,104,439) 102,932 105,439 20,649 ( 1,147,445) 34,211
1,327,263 511,414 99,874 226,908 11,351,911 11,317,700
$ 222,824 $ 614,346 $ 205,313 $ 247,557 $ 10,204,466 $ 11,351,911
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
(1 of 2)
2002 2001
ASSETS
Current assets:
Deposits and investments $ 6,943,913 $ 7,299,622
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 in 2002 and 2001 1,883,604 1,869,698
Accrued interest receivable 94,449 120,856
Prepaids and deposits 163,762 1,689
Inventory 62,794 61,738
Due from other funds 255,917 273,340
Total current assets
9,404,439 9,626,943
Restricted assets:
Revenue bond debt service:
Cash with paying agent 385,751 381,957
Revenue bond emergency:
Short-term investments 500,000 500,000
Capital projects account:
Cash and cash equivalents 86,113 181,992
Short-term investments 3,376,440 2,528,652
Total restricted assets 4,348,304 3,592,601
Bonds issuance cost
Less accumulated amortization
Net bond issuance cost
145,373 145,373
100,373 87,611
45,000 57,762
Utility plant and equipment in service, at cost:
Land and building 1,715,431 1,528,966
Equipment 861,759 2,382,159
Improvements 184,601
Construction in progress 316,289 2,116,529
Waterworks and sanitary sewer system 39,536,106 31,263,055
Less accumulated depreciation
Net utility plant and equipment in service
42,429,585 37,475,310
18,150,767 18,452,189
24,278,818 19,023,121
TOTAL ASSETS $ 38,076,561 $ 32,300,427
49
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
(2 of 2)
2002 2001
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable $ 1,449,396 $ 1,118,439
Accrued salaries and wages 154,423 172,340
Total current liabilities 1,603,819 1,290,779
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,244,236 1,226,806
Current portion of bonds payable 290,000 580,000
Accrued interest 31,137 31,137
Bonds payable 3,300,000 3,590,000
Deferred revenue 33,673 41,473
Total liabilities 6,502,865 6,760,195
Fund equity:
Contributed capital:
From subdividers 19,044,531 15.705,558
From Environmental Protection Agency 239,617 239,617
From Trinity River Authority 15,000 15,000
19, 299,148 15, 960,175
Accumulated depreciation on assets
acquired with contributed capital 8,872,890 8,451,559
Net contributed capital 10,426,258 7,508,616
Retained earnings:
Reserved for:
Debt service and construction 30,192 30,192
Recycling 31,311 31,311
Emergency 500,000 500,000
Outstanding work 6,000 6,000
Total reserved 567,503 567,503
Unreserved 20,579,935 17,464,113
Total retained earnings 21,147,438 18,031,616
Total fund equity 31,573,696 25,540,232
TOTAL LIABILITIES AND FUND EQUITY $ 38,076,561 $ 32,300,427
50
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
2002 2001
Operating revenues:
Water service $ 6,814,958 $ 7,361,182
Sewer service 3,510,524 3,635,063
Service fees and miscellaneous 1,041,043 1,344,912
Total operating revenues 11,366,525 12,341,157
Operating expenses:
General and administrative 412,639 1,321,603
Water production 4,228,021 4,502,134
Water distribution 478,796 521,269
Utility engineering 419,260 377,846
Sewage collection and treatment 1,805,154 925,325
Nondepartmental 1,976,005 2,275,918
Geographic information 239,884 273,029
Service center 739,181 718,660
Depreciation 1,020,861 1,134,856
Amortization 12,762 12,761
Total operating expenses 11,332,563 12,063,401
Operating income 33,962 277,756
Nonoperating revenues (expenses)
Impact fees 1,018,964 -
Developer contributed assets 1,952,320
Investment income 352,886 743,326
Interest on bonds ( 231,234) ( 317,637)
Total nonoperating revenues (expenses), net 3,092,936 425,689
Income before operating transfers 3,126,898 703,445
Operating transfers out ( 732,775) ( 1,584,361)
Net income (loss) 2,394,123 ( 880,916)
Add depreciation on fixed assets acquired
with contributed capital 421,331 421,331
Increase (decrease) in retained earnings 2,815,454 ( 459,585)
Retained earnings, beginning of year 18,031,616 18,491,201
Prior period adjustment 300,368
Retained earnings, end of year $21,147,438 $18,031,616
51
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
(1 of 2)
2002 2001
General and administrative:
Salaries and benefits $ 225,475 $ 254,459
Postage and supplies 62,807 54,824
Maintenance of office machinery - 335
Bad debts 796,537
Other 124,357 215,448
412,639 1,321,603
Water production:
Salaries and benefits 399,419 371,393
Operating supplies and expense 246,464 212,470
Maintenance of structures and equipment 34,293 49,650
Contracts - Trinity River Authority 1,485,722 808,738
Water - Trinity River Authority 2,062,123 3,059,883
4,228,021 4,502,134
Water distribution:
Salaries and benefits 399,066 416,042
Operating supplies and expenses 30,377 31,894
Maintenance of structures and equipment 49,353 73,333
478,796 521,269
Engineering:
Salaries and benefits 315,464 307,854
Operating supplies and expenses 1.3,796 69,992
419,260 377,846
Sewage collection and treatment:
Salaries and benefits 290,957 283,972
Operating supplies and expenses 73,579 73,084
Maintenance of structures and equipment 3,344 3,405
Treatment fees - Trinity River Authority 1,437,274 564,864
1,805,154 925,325
Nondepartmental:
Salaries and benefits 574,697 521,526
Operating supplies and expenses 810,033 1,121,054
Contractual services 18,500 21,750
Franchise fees 572,775 611,588
1,976,005 2,275,918
52
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
(2 of 2)
2002 2001
Geographic information:
Salaries and benefits $ 179,587 $ 164,765
Operating supplies and expenses 11,365 8,087
Maintenance of machinery and equipment 48,932 99,377
Contractual services - 800
239,884 273,029
Service center:
Salaries and benefits .290,941 278,796
Motor fuel and supplies 314,478 328,375
Maintenance of structures and equipment 101,418 72,995
Other 32,344 38,494
739,181 718,660
Depreciation and amortization 1,033,623 1,147,617
Total operating expenses $11,332,563 $12,063,401
53
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue
Due from other funds
Prepaids and deposits
Inventory
Increase (decrease) due to net changes in:
Accounts payable
Accrued salaries and wages
Customer and escrow deposits
Deferred revenue
Total adjustments
Net cash provided by operating activities
NONCAPITAL FINANCING ACTIVITIES
Impact Fees
Interest paid on bonds
Proceeds from bond issuance
Reduction in bonds payable
Operating transfers out
Net cash used in noncapital financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of utility plant and equipment in service
Net cash used in capital and related financing activities
INVESTING ACTIVITIES
Purchase of investment securities
Proceeds from sale of investment securities
Interest received on investments
Net cash provided by (used in) investing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
(
(
(
(
2002
2001
$ 33,962 $ 277,756
1,033,623
( 13,905)
17,423
162,073)
1,056)
330,957
17,917)
17,430
7,800)
1,196,682
1,230,644
1,147,617
77,919
16,453
54,311
( 7,298)
119,058
88
61,161
( 7,800)
1,461,509
1,739,265
1,018,964
231,234) ( 317,637)
1,630,000
2,210,000) ( 445,000)
732,775) ( 1,584,361)
525,045) ( 2,346,998)
684,896) ( 2,554,126)
( 684,896) ( 2,554,126)
( 847,788)
1,136,244
379,291 799,096
( 468,497) 1,935,340
( 447,794) ( 1,226,519)
7,863,571 9,090,090
$ 7,415,777 $ 7,863,571
(
(
(
(
(
54
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 2002
ASSETS
Current assets:
Deposits and investments
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463
Accrued interest receivable
Prepaids and deposits
Inventory
Due from other funds
Total current assets
Capital
Operating Projects
Account Account
$ 4,210,935 $
1,883,604
81,175
163,747
255,917
6,595,378
11,622
11,622
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond emergency:
Short-term investments 500,000
Capital projects account:
Cash and cash equivalents 86,113
Short-term investments 3,376,440
Total restricted assets 500,000 3,462,553
Bonds issuance cost 85,373 60,000
Less accumulated amortization 85,373 15,000
Net bond issuance cost 45,000
Utility plant and equipment in service, at cost:
Land and building 1,715,431
Equipment 681,498 149,821
Improvements -
Construction in progress 316,289
Waterworks and sanitary sewer system 35,221,839 3,408,617
37,618,768 3,8'74,727
Less accumulated depreciation 18,077,128 68,732
Net utility plant and equipment in service 19,541,640 3,805,995
TOTAL ASSETS $ 26,637,018 $ 7,325,170
55
(1 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 2002
$ $ 67,585 $ 2,663,970 $ 1,423 $ $ 6,943,913
1,883,604
1,652 94,449
15 163,762
62,794 62,794
255,917
130,394 2,665,622 1,423 9,404,439
385,751 - - 385,751
500,000
86,113
3,376,440
385,751 - 4,348,304
145,373
100,373
45,000
1,715,431
30,440 - 861,759
316,289
905,650 - - 39,536,106
30,440 905,650 - 42,429,585
4,907 - 18,150,767
25,533 905,650 - - 24,278,818
$ 385,751 $ 155,927 $ 3,571,272 $ 1,423 $ $38,076,561
56
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 2002
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable
Accrued salaries and wages
Total current liabilities
Current obligations payable from
restricted assets:
Customer and escrow deposits
Current portion of bonds payable
Accrued interest
Bonds payable
Deferred revenue
Total liabilities
Fund equity:
Contributed capital:
From subdividers
From Environmental Protection Agency
From Trinity River Authority
Accumulated depreciation on assets
acquired with contributed capital
Net contributed capital
Retained earnings:
Reserved for:
Debt service and construction
Recycling
Emergency
Outstanding work
Total reserved
Unreserved
Total retained earnings
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
Operating
Account
Capital
Projects
Account
$ 1,374,915 $ 10,015
139,026 -
1,513,941 10,015
1,244,236
290,000
3,300,000
33,673
6,381,850
17,128,724
239,617
15,000
17,383,341
8,872,890
8,510,451
31,311
500,000
10,015
531,311
11,213,406 7,315,155
11,744,717 7,315,155
20,255,168 7,315,155
$26,637,018 $ 7,325,170
57
(2 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 2002
$ 64,466 $ $ $ $ 1,449,396
15,397 154,423
79,863 - 1,603,819
1,244,236
290,000
31,137 31,137
3,300,000
33,673
31,137 79,863 6,502,865
1,915,807 19,044,531
239,617
15,000
1,915, 807 19,299,148
8,872,890
1,915,807 10,426,258
30,192 - - - 30,192
31,311
- 500,000
6,000 6,000
30,192 6,000 567,503
324,422 70,064 3,571,272 1,423 (1,915,807) 20,579,935
354,614 76,064 3,571,272 1,423 (1,915,807) 21,147,438
354,614 76,064 3,571,272 1,423 31,573,696
$385,751 $ 155,927 $3,571,272 $ 1,423 $ $38,076,561
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 2002
Operating revenues:
Water service
Sewer service
Service fees and miscellaneous
Total operating revenues
Operating expenses:
General and administrative
Water production
Water distribution
Utility engineering
Sewage collection and treatment
Nondepartmental
Geographic information
Service center
Depreciation
Amortization
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Impact fees
Developer contributed assets
Investment income
Interest on bonds
Total nonoperating revenues
(expenses), net
Income (loss) before operating transfers
Operating transfers from other funds or other water
and sewer accounts
Operating transfers to other funds or other water
and sewer accounts
Net income (loss)
Add depreciation on fixed asset acquired
with contributed capital
Increase (decrease) in retained earnings
Retained earnings, beginning of year
Prior period adjustment
Retained earnings, end of year
Operating
Account
$ 6,814,958
3,510,524
1,041,043
11,366,525
369,867
4,228,021
478,796
419,260
1,805,154
1,976,005
239,884
985,990
7,762
10,510,739
855,786
1,952,320
230,706
2,183,026
3,038,812
580,000
( 3,642,043)
( 23,231)
421,331
398,100
10,874,701
471,916
$ 11,744,717
Capital
Projects
Account
$
41,502
29,964
5,000
76,466
( 76,466)
65,611
65,611
( 10,855)
1,651,571
1,640,716
1,640,716
6,031,740
( 357,301)
$ 7,315,155
59
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 2002
$ - $ - $ $ - $ $ 6,814,958
3,510,524
1,041,043
11,366,525
- 1,270 412,639.
4,228,021
478,796
- 419,260
1,805,154
1,976,005
239,884
739,181 739,181
4,907 1,020,861
12,762
744,088 1,270 11,332,563
(744,088) - ( 1,270) 33,962
1,018,964 - 1,018,964
1,952,320
3,794 52,775 - 352,886
( 231,234) ( 231,234)
3,794 - 1,071,739 ( 231,234) 3,092,936
3,794 (744,088) 1,071,739 ( 232,504) 3,126,898
765,615 783,841 ( 3,781,027)
( 291,759) ( 580,000) 3,781,027 ( 732,775)
3,794 21,527 779,980 ( 28,663) 2,394,123
421,331
3,794 21,527 779,980 ( 28,663) 2,815,454
350,820 133,766 2,526,310 30,086 ( 1,915,807) 18,031,616
79 229) 264,982 300,368
$ 354.614 $ 76,064 $ 3,571,272 $ 1,423 ($ 1,915,807) $21,147,438
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 2002
Total
Operating Construction September 30,
Account in Progress 2002
ASSETS
Current assets:
Deposits and investments $ 912,521 $ 416,806 $ 1,329,327
Accounts and unbilled revenue
less allowance for uncollectibles of
$3,924 for drainage utility 36,141 36,141
Accrued interest receivable 4,911 4,911
Total current assets 953,573 416,806 1,370,379
Bond issuance cost 166,554 166,554
Less accumulated amortization 73,064 - 73,064
Net bond issuance cost 93,490 93,490
Utility plant and equipment
in service, at cost:
Land 89,000 89,000
Equipment
Improvements 2,852,413 2,852,413
2,941,413 2,941,413
Less accumulated depreciation 531,036 531,036
Net utility plant and equipment in service 2,410,377 2,410,377
TOTAL ASSETS $ 3,457,440 $ 416,806 $ 3,874,246
LIABILITIES AND FUND EQUITY
Current liabilities:
Accounts payable
Accrued salaries and wages
Total current liabilities
$ 10,334 $ $ 10,334
10,334 - 10,334
Current portion of bonds payable 160,000 - 160,000
Accrued interest 19,480 19,480
Bonds payable 1,300,000 - 1,300,000
Total liabilities
1,489, 814 1,489, 814
Retained earnings:
Reserved for debt service 231,119 231,119
Unreserved 1,736,507 416,806 2,153,313
Total fund equity 1,967,626 416,806 2,384,432
TOTAL LIABILITIES AND FUND EQUITY $ 3,457,440 $ 416,806 $ 3,874,246
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 2002
Total
Operating Construction Elimi- September 30,
Account in Progress nations 2002
Operating revenues:
Drainage fees $ 616,224 $ $ - $ 616,224
Total operating revenues
616,224 616,224
Operating expenses:
Drainage 241,034 241,034
Depreciation 81,202 81,202
Amortization '13,356 13,356
Total operating expenses
Operating income
335,592 335,592
280,632 - 280,632
Nonoperating revenues (expenses):
Investment income 22,379 7,249 - 29,628
Interest on bonds ( 67,646) ( 67,646)
Total nonoperating revenues
(expenses), net ( 45,267) 7,249 ( 38,018)
Income before
operating transfers 235,365 7,249 242,614
Operating transfers in 50,000 (50,000)
Operating transfers out ( 81,685) 50,000 ( 31,685)
Increase in
retained earnings '153,680 57,249 210,929
Retained earnings, beginning of year 1,668,262 359,557 2,027,819
Prior period adjustment 145,684 145,684
Retained earnings, end of year $ 1,967,626 $ 416,806 $ $ 2,384,432
62
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 frcm 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.
Cash and Debt Management Fund - to account for the revenues and expenses
incurred in providing cash and debt management services to all funds. Funding is
provided by a predetermined amount of earned investment income, not to exceed
total fund expenses.
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Manage- Total
Fund Fund Fund ment Fund 2002 2001
ASSETS
Deposits and investments $ 923,550 $ 166,338 $ 518,913 $ $ 1,608,801 $ 1,645,779
Accounts receivable 122,617 122,617 -
Prepaids 208,796 - 208,796
Accrued interest receivable 3,238 3,238 17,665
Total current assets 1,135,584 288,955 518,913 1,943,452 1,663,444
Utility plant and equipment,
at cost
Equipment 4,258,156 54,956 11,024 4,324,136 3,008,677
Improvements - - - - 40,390
4,258,156 54,956 11,024 4,324,136 3,049,067
Less accumulated depreciation 2,731,250 21,982 4,410 2,757,642 1,594,195
Net utility plant and
equipment in service 1,526,906 32,974 6,614 1,566,494 1,454,872
TOTAL ASSETS $ 2,662,490 $ 321,929 $ 525,527 $ $ 3,509,946 $ 3,118,316
LIABILITIES AND
RETAINED EARNINGS
Accounts payable $ 49,246 $ 62,787 $ 13,438 $ $ 125,471 $ 90,474
Accrued salary and wages 10,940 4,403 - 15,343 26,317
Accrued insurance
claims 107,404 107,404 76,281
Total current liabilities 49,246 181,131 17,841 - 248,218 193,072
Retained earnings:
Reserved:
Insurance 41,000 - 41,000 41,000
Workers' compensation - 200,000 200,000 200,000
Risk management - 200,000 200,000 200,000
Total reserved 41,000 400,000 441,000 441,000
Unreserved 2,613,244 99,798 107,686 2,820,728 2,484,244
Total retained earnings 2,613,244 140,798 507,686 3,261,728 2,925,244
TOTAL LIABILITIES AND
RETAINED EARNINGS
$ 2,662,490 $ 321,929 $ 525,527 $ $ 3,509,946 $ 3,118,316
63
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001
Operating revenues:
Insurance premiums
Service fees and
miscellaneous
Total operating revenues
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Manage- Total
Fund Fund Fund ment Fund 2002 2001
$ $ 1,698,471 $ 262,280 $ - $ 1,960,751 $ 1,916,112
423,582 75,295 498,877 506,118
423,582 1,698,471 262,280 75,295 2,459,628 2,422,230
Operating expenses:
General and
administrative 40,467 88,803 354,874 75,295 559,439 643,051
Insurance costs - 1,886,428 220,036 - 2,106,464 2,020,883
Depreciation 424,749 10,991 2,205 437,945 481,958
Total operating expenses
Operating Toss
Non -operating revenues:
Investment income
Gain on sale of
fixed assets
Total nonoperating
revenues
Loss before
operating transfers
Operating transfers in
Operating transfers out
Net income (loss)
Retained Earnings,
beginning of Year
Prior period adjustment
Retained Earnings,
end of Year $ 2,613,244 $ 140,798 $ 507,686
465,216 1,986,222 577,115 75,295 3,103,848 3,145,892
( 41,634) ( 287,751) ( 314,835) ( 644,220) ( 723,662)
22,870
10,479
13,244 10,982
47,096 92,239
10,479 27,893
33,349 13,244 10,982 57,575 120,132
( 8,285) ( 274,507) ( 303,853) ( 586,645) ( 603,530)
247,959 150,000 320,000 717,959 784,083
- ( 40,582) ( 16,766) ( 57,348) ( 80,987)
239,674 ( 165,089) ( 619) 73,966 99,566
2,105,554 310,244 509,446 2,925,244 2,825,678
268,016 ( 4,357) ( 1,141) 262,518
$ - $ 3,261,728 $ 2,925,244
64
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2001
OPERATING ACTIVITIES
Operating loss
Adjustments to reconcile operating
loss to net cash provided
by (used in) operating activities
Depreciation expense
(Gain)/loss on sale of fixed assets
(Increase) decrease due to net
changes in:
Prepaid
Receivables
Increase (decrease) due to net
changes in:
Accounts payable
Accrued salaries and wages
Accrued insurance claims
Total adjustments
Net cash provided by (used in)
operating activities
NONCAPITAL
FINANCING ACTIVITIES
Operating transfers in
Operating transfers out
Equipment
Replacement Insurance
Fund Fund
Risk Cash and
Manage- Debt
ment Management
Fund Fund
($ 41,634) ($ 287,751) ($ 314,835) $
424,749 10,991 2,205
( 10,479)
( 208,796) -
- ( 122,617)
2002
Total
2001
($ 644,220) ($ 723,662)
437,945 481,958
( 10,479) 27,893
( 208,796)
( 122,617)
47,086 ( 1,763) ( 10,326) - 34,997
328 ( 294) ( 11,008) ( 10,974)
31,123 31,123
75,641
7,605
15,759
252,560 ( 81,938) ( 8,415) ( 11,008) 151,199 608,856
210,926 ( 369,689) ( 323,250) ( 11,008) ( 493,021) ( 114,806)
247,959 150,000 320,000
( 40,582) ( 16,766)
Net cash provided by
noncapital financing activities 247,959 109,418 303,234
CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of equipment
Sale of equipment
Net cash (used in) provided by capital
and related financing activities
INVESTING ACTIVITIES
Interest received on investments
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents,
beginning of year
Cash and cash equivalents,
end of year
( 306,932)
33,143
( 273,789)
6,413 1,285
717,959 784,083
( 57,348) ( 80,987)
660,611
703,096
( 306,932) ( 453,019)
40,841
6,413 1,285 ( 266,091) ( 453,019)
19,632 24,416 17,475 61,523 95,689
204,728 ( 229,442) ( 1,256) ( 11,008) ( 36,978) 230,960
718,822 395,780 520,169 11,008 1,645,779 1,414,819
$ 923,550 $ 166,338 $ 518,913 $ $ 1,608,801 $ 1,645,779
65
AGENCY FUNDS
Agency funds are used to account for assets held by the government as an agent for
individuals, private organizations, other governments and/or other funds.
Stars Center Escrow -. to account for investments held on -behalf of the Dallas
Stars until the bond issuance is retired.
DEA Task Force - to account for assets and liabilities received from the DEA
task force that are to be distributed to other participating entities.
CITY OF EULESS, TEXAS
AGENCY FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001
Assets:
Deposits and investments
Total assets
Liabilities:
Due to other entities
Due to other
governments
Total liabilities
DEA
Stars Task
Center Force Total
Escrow Fund 2002 2001
$2,143,977 $33,095 $2,177,072 $2,145,501
$2,143,977 $33,095 $2,177,072 $2,145,501
$2,143,977 $ - $2,143,977 $2,100,304
33,095 33,095 45,197
$2,143,977 $33,095 $2,177,072 $2,145,501
66
CITY OF EULESS, TEXAS
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED SEPTEMBER 30, 2002
STARS CENTER ESCROW
Assets:
Investments at market
Balance Balance
September 30, September 30,
2001 Additions Deletions 2002
$ 2,100,304 $ 43,673 $ $ 2,143,977
Liabilities:
Due to other
entities $ 2,100,304 $ 43,673 $ $ 2,143,977
DEA TASK FORCE FUND:
Assets:
Deposits and investments $ 45,197 $ 589,366 $ 601,468 $ 33,095
Liabilities:
Due to other
governments
$ 45,197 $ 589,366 $ 601,468 $ 33,095
Total assets $ 2,145,501 $ 633,039 $ 601,468 $ 2,177,072
Total liabilities $ 2,145,501 $ 633,039 $ 601,468 $ 2,177,072
67
GENERAL FIXED ASSETS ACCOUNT GROUP
To account for fixed assets not used in proprietary fund operations.
CITY OF EULESS, TEXAS
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 2002 AND 2001
2002 2001
General fixed assets:
Land $ 4,818,560 $ 5,206,274
Buildings 34,025,772 18,641,889
Improvements other than buildings 3,341,412 4,665,996
Construction in progress - 11,579,624
Machinery and equipment 4,415,310 8,630,977
Total general fixed assets $46,601,054 $48,724,760
Investment in general fixed assets by source:
General fund $ 9,472,292 $ 8,723,315
Special revenue funds 7,176,936 6,933,139
Capital projects funds 29,951,826 33,068,306
Total investment in general fixed assets $46,601,054 $48,724,760
68
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2002
Function
and Activity
General government
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
Total General Fixed Assets
Land Buildings
$2,639,737 $ 3,460,084
234,325 16,116,060
1,944,498 14,449,628
Improvements
Other than
Buildings
$ 1,118,730
36,758
2,185,924
Machinery
and
Equipment Total
$1,602,915 $ 8,821,466
1,503,242 17,890,385
974,803 19,554,853
334,350 334,350
$4,818,560 $34,025,772 $ 3,341,412 $4,415,310 $46,601,054
69
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 2002
Function
and Activity
General government
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
General Fixed
Assets
September 30, Additions
2001 and Transfers Deletions
$ 11,934,038 $ 1,126,712
5,321,895 14,963,533
19,554,853
334,350
11,579,624
($
(
4,239,284)
2,395,043)
( 11,579,624)
$ 48,724,760 $16,090,245 ($ 18,213,951)
General Fixed
Assets
September 30,
2002
$ 8,821,466
17,890,385
19,554,853
334,350
$ 46,601,054
70
STATISTICAL SECTION
(Unaudited)
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(Unaudited)
Table 1
General
Fiscal Govern- Public Culture- Debt
Year ment Safety Streets Recreation Service Other Total
1993 $ 2,054,992 $ 5,968,815 $ 487,759 $ 1,397,600 $ 1,683,671 $ 965,820 $ 12,558,657
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
Note: Includes General Fund and Debt Service Fund.
71
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Table 2
Interest
Licenses Inter- Charges Income
Fiscal and govern- for Fines and Other
Year Taxes Permits mental Service and Fees Revenues Total
1993 $ 10,274,743 $ 312,660 $ 54,797 $ 59,042 $ 1,353,196 $ 413,151 $ 12,467,589
1994 10,847,785 364,617 227,464 81,311 1,592,194 420,641 13,534,012
1995 11,362,414 420,624 50,912 88,036 1,941,505 916,167 14,779,658
1996 12,049,604 459,553 84,447 102,669 2,233,554 1,087,365 16,017,192
1997 12,733,372 530,525 192,742 89,102 2,337,343 1,268,495 17,151,579
1998 13,187,156 396,811 258,663 93,175 2,671,187 1,262,289 17,869,281
1999 13,800,144 448,751 557,246 101,705 3,349,742 580,572 18,838,160
2000 15,255,770 550,356 602,417 102,096 3,452,010 1,354,752 21,317,401
2001 16,286,212 511,625 413,617 104,922 3,145,608 1,741,423 22,203,407
2002 17,842,854 1,188,231 421,176 105,187 3,237,217 1,523,766 24,318,431
Note: Includes General Fund and Debt Service Fund.
72
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Unaudited)
Table 3
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
1993 $ 5,943,537 $ 5,880,688 98.94% $ 73,853 $ 5,954,541 100.19°/u $ 239,370 4.03%
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 8,742,862 97.28% 102,951 8,845,813 98.43% 915,904 10.19%
Source: Tarrant County Tax Assessor/Collector
73
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
Assessed
Value
1993 $ 835,211,175
1994 818,330,766
1995 908,760,987
1996 955,692,304
1997 1,009,997,060
1998 1,093,894,921
1999 1,198,361, 587
2000 1,307,137,899
2001 1,433,779,484
2002 1,547,947,615
Real Property
Estimated
Actual
Value
$ 835,211,175
818,330,766
908,760,987
955,692,304
1,009,997,060
1,093,894,921
1,198,361,587
1,307,137,899
1,433,779,484
1,547,947,615
Source: Tarrant Appraisal District
Personal Property
Assessed
Value
Actual
Value
Assessed
Value
Total
$ 137,913,007 $ 137,913,007 $ 973,124,182
147,978,520 147,978,520 966,309,286
166,784,893 166,784,893 1,075,545,880
172,885,117 172,885,117 1,128,577,421
185,673,796 185,673,796 1,195,670,856
182,729,883 182,729,883 1,276,624,804
197,169,731 197,169,731 1,395,531,318
194,966,019 194,966,019 1,502,103,918
373,564,221 373,564,221 1,807,343,705
414,478,638 414,478,638 1,962,426,253
Actual
Value
$ 973,124,182
966,309,286
1,075,545,880
1,128,577,421
1,195,670,856
1,276,624,804
1,395,531,318
1,502,103,918
1,807,343,705
1,962,426,253
Table 4
Ratio of
Total
Assessed
to
Estimated
Actual
Value
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
74
CITY OF EULESS, TEXAS
PROPERTY TAX RATES
ALL DIRECT AND OVERLAPPING GOVERNMENTS
PER $100 OF ASSESSED VALUE
LAST TEN FISCAL YEARS
(Unaudited)
Table 5
Fiscal Junior
Year City (1) School (2) County (3) Hospital (3) College (3) Total
1993 0.5985637% 1.5050% 0.277100% 0.229100% 0.043292% 2.6530557%
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% 0.239840% 0.055460% 2.7023630%
1997 0.5449800% 1.6063% 0.264000% 0.234070% 0.057690% 2.7069970%
1998 0.5247540% 1.6063% 0.264836% 0.234070% 0.106400% 2.7363170%
1999 0.5147540% 1.6063% 0.264836% 0.234070% 0.106400% 2.7263600%
2000 0.5147540% 1.6775% 0.274785% 0.234070% 0.106410% 2.8075190%
2001 0.5147540% 1.6530% 0.274785% 0.234070% 0.106410% 2.7830190%
2002 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
75
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 6
Net
Bonded Net
Estimated Net Debt to Bonded
Fiscal Population Assessed General Assessed Debt Per
Year (1) Value (2) Debt (3) Value Capita
1993 38,778 $ 973,124,182 $11,321,467 1.16% 292
1994 39,650 966,309,286 10,277,666 1.06% 259
1995 39,750 1,075,545,880 9,117,594 0.85% 229
1996 40,850 1,128,577,421 12,124,427 1.07% 297
1997 41,300 1,195,670,856 11,813,272 0.99% 286
1998 42,900 1,276,624,804 15,864,608 1.24% 370
1999 44,700 1,395,531,318 14,452,481 1.04% 323
2000 45,500 1,502,103,918 25,858,045 1.72% 568
2001 46,166 1,807,343,705 36,360,233 2.01% 788
2002 47,950 1,962,426,253 34,925,836 1.78% 728
(1) Estimates by North Central Texas Council of Governments as of
January 1, 2001.
(2) Tarrant Appraisal District
(3) Includes General Obligation Bonds and Certificates of Obligation, with the exception of
self-supporting certificates of obligation of $10,985,000 for the year ended 2002.
76
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2002
(Unaudited)
Table 7
Percentage Amount
Applicable Applicable
Net Debt to City to City
Jurisdiction Outstanding of Euless of Euless
City of Euless $ 34,925,836 100.00% $34,925,836
Grapevine-Colleyville Independent
School District 259,108,942 2.12% 5,493,110
Hurst -Euless -Bedford Independent
School District 243,939,737 26.79% 65,351,456
Tarrant County 162,590,000 2.72% 4,422,448
Tarrant County Hospital District 44,605,000 2.72% 1,213,256
Tarrant County College District 78,145,000 2.72% 2,125,544
Total direct and overlapping debt $823,314,515 $113,531,649
Ratio of direct and overlapping
bonded debt to taxable assessed
valuation 5.79%
Per capita direct and overlapping
bonded debt $2,368
77
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 8
Ratio of
Debt
Service
Interest to
and Total Total General
Fiscal Fiscal Debt General Expendi-
Year Principal Charges Service Expenditures tures
1993 $ 855,000 $ 828,671 $1,683,671 $12,558,657 13.41%
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 19,806,152 11.72%
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%
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Table 9
Net
Direct Revenue Interest
Gross Operating Available and
Fiscal Revenue Expenses • for Debt Fiscal Coverage
Year (1) (2) & (3) Services Principal Charges Total Ratio
1993 $ 9,615,195 $ 7,391,235 $ 2,223,960 $ 305,000 $ 185,808 $ 490,808 4.53
1994 9,278,791 7,359,988 1,918,803 325,000 199,875 524,875 3.66
1995 9,348,238 7,588,129 1,760,109 335,000 183,430 518,430 3.40
1996 10,579,366 8,177,311 2,402,055 365,000 170,205 535,205 4.49
1997 10,605,353 8,014,504 2,590,849 370,000 151,480 521,480 4.97
1998 11,830,802 9,780,792 2,050,010 395,000 128,040 523,040 3.92
1999 11,909,011 9,288,622 2,620,389 385,000 107,325 492,325 5.32
2000 13,558,051 9,765,239 3,792,812 415,000 62,856 477,856 7.94
2001 13,084,483 10,915,784 2,168,699 445,000 317,637 762,637 2.84
2002 11,719,411 10,298,940 1,420,471 580,000 231,234 811,234 1.75
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.
79
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
DRAINAGE UTILITY BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
Gross
Revenue
(1)
1993 $371,241
1994 367,912
1995 345,524
1996 563,004
1997 587,892
1998 611,585
1999 621,586
2000 662,132
2001 662,455
2002 645,852
Direct
Operating
Expenses
(2)
$ 65,326
98,796
101,286
52,876
66,624
87,641
195,397
329,422
212,073
241,034
Net
Revenue
Available
for Debt
Services
$305,915
269,116
244,238
510,128
521,268
523,944
426,189
332,710
450,382
404,818
Principal
$25,000
25,000
25,000
25,000
30,000
100,000
105,000
110,000
120,000
75,000
Interest
and
Fiscal
Charges
$142,552
129,360
128,093
126,791
125,419
124,082
118,433
112,343
108,652
74,041
Note: (1) Includes operating revenue and interest earned on investments.
Total
$167,552
154,360
153,093
151,791
155,419
224,082
223,433
222,343
228,652
149,041
(2) Total operating expenses exclusive of depreciation and amortization.
Table 10
Coverage
Ratio
1.83
1.74
1.60
3.36
3.35
2.34
1.91
1.50
1.97
2.72
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(Unaudited)
Table 11
Per
Capita School Unemployment
Fiscal Population Income Enrollment Rate
Year (1) (2) (3) (4)
1993 38,778 $ 20,303 18,981 5.6%
1994 39,650 20,601 19,236 5.1%
1995 39,750 20,750 19,235 4.7%
1996 40,850 22,223 19,205 3.3%
1997 41,300 22,690 19,400 3.5%
1998 42,900 22,962 19,500 2.4%
1999 44,700 23,858 19,500 2. i
2000 45,500 24,884 19,500 2.2%
2001 46,166 25,556 19,500 4.5%
2002 47,950 25,837 19,500 5.6%
Notes: 1. Estimates by North Central Texas Council of Governments as
adjusted for 2000 census data.
2. Estimates by Southwest Statistical Data - Dallas/Fort Worth
CPI for Urban Wage Earners and Clerical Workers (CPIW)
3. Hurst -Euless -Bedford Independent School District
4. Texas Workforce Commission
81
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2002
(Unaudited)
Table 12
2002 Percentage
Assessed of Total
Type of Valuation Assessed
Taxpayer Business (1) Valuation
National Rental Systems Inc Car Rental $ 53,118,533 2.71%
Hertz Rent A Car Car rental 45,801,871 2.33%
Avis Rent A Car Car Rental 34,938,473 1.78%
Somerset Village Partners, LP Apartments 31,013,586 1.58%
Bear Creek Apartments, Inc. Apartments 28,613,289 1.46%
Southwest Properties Apartments 28,068,320 1.43%
Cingular Wireless Telephone Utility 27,395,084 1.40%
Saluda Apartments, L.P. Apartments 26,879,759 1.37%
Southwestern Bell Telephone Company Telephone Utility 23,755,705 1.21%
Mandolin QI Telephone Utility 21,400,000 1.09%
$320,984,620 16.36%
Note 1: Tarrant Appraisal District
82
CITY OF EULESS, TEXAS
PROPERTY VALUE AND CONSTRUCTION
LAST TEN FISCAL YEARS
(Unaudited)
Table 13
Construction (1)
Property Number
Fiscal Value of
Year (2) Permits Value
1993 $ 1,102,146,265 331 $ 21,224,743
1994 1,117,816,828 360 21,437,599
1995 1,223,919,265 373 34,020,060
1996 1,256,556,148 391 22,907,680
1997 1,279,463,828 351 92,300,851
1998 1,440,732,524 293 1,586,997
1999 1,571,329,201 244 28,267,792
2000 1,696,859,200 186 60,615,889
2001 1,807,343,705 246 35,276,093
2002 1,962,426,253 218 38,180,557
Notes: 1. City Records
2. Tarrant Appraisal District
83
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2002
(Unaudited)
Article XI, Section 5 of the State of Texas Constitution states in part:
Table 14
"... 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 2002 was established at $.497254 per $100 of assessed
valuation on 100% of appraised value.
84
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2002
(Unaudited)
Table 15
(1 of 2)
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
63,150
35,164
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
85
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2002
(Unaudited)
Table 15
(2 of 2)
City Water and Sewer Service:
Water Service:
Number of Customers 22,615
Maximum daily capacity available
from Trinity River Authority 29,000,000
Maximum daily capacity from City
water wells 4,782,000
Total daily capacity 33,782,000
Maximum daily consumption 12,005,012
Average daily consumption 6,322,000
Water mains 165 miles
Fire hydrants 1,215
Sewer Service:
Average daily flow of wastewater 4,058,181
Number of customers 22,100
Sewer mains 162.7 miles
Streets:
Improved 139 miles
State highways 32.4 miles
Airport streets 16.5 miles
86