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CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2001
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page(s)
Letter of transmittal i-viii
City officials ix
GFOA certificate of achievement x
Organizational chart xi
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 govemmental fund types
Combined statement of revenues, expenditures
and changes in fund balances - budget and
actual - general and budgeted 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, 2001
TABLE OF CONTENTS - continued
Individual Fund and Account Group Statements and Schedules - continued
Combining statement of revenues,
expenditures and changes in fund balances
Page(s)
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, 2001
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 eamings 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 govemmental expenditures by function 1 71
General govemmental 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
govemments 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, 2001
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 CIT Y OF
EULESS
January 15, 2002
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, 2001. 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, it was 4,235. Euless has
changed significantly from a rural farming community to a progressive urban area of
approximately 46,166. 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 and second busiest 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, emergency ambulance 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
201 N. Ector Drive, Euless, Texas 76039-3595
817/685-1400 • Metro 817/267-4403 • Fax 817/685-1416
1
traffic control. Internal services of the City include insurance, risk management,
equipment replacement, and cash/debt management.
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 to 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 FY2001, including
construction of the new Police and Courts Facility, completion of a new two million -
gallon water tank, substantial progress on the reconstruction of Mid Cities Boulevard
and Harwood Road. Progress is also underway to acquire right-of-way and complete
the design phase of the North Main Street reconstruction project. We expect this
project to be a substantial revitalization of the Main Street Corridor. Several new
businesses also opened during the year including Beall Concrete, Office Depot, Burger
King, Jack in the Box, Krispy Kreme Distribution Center, and SuperTarget. The City
also recognizes future development opportunities such as the development of the 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 2001 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
infrastructure; promoting economic development and enhancement of the City's image.
Progress Report. The FY2000-2001 budget adopted by the City Council maintained
the tax rate at .514754¢ 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,
irrigation for City parks, a fire safety training trailer, laptop computers for public safety
vehicles, construction of a new park building and additional fire equipment including
thermal imagers and lifepak defibrillators.
ii
Individual and departmental successes have improved city services and enhanced
growth in our community. Among the many accomplishments during 2001 are:
The Police Department held the 13th Citizen's Police Academy with 11 graduates
and the second Teen Police Academy with 8 graduates. They also hosted a
weeklong summer camp for more than 100 kids throughout the HEB area.
The Police Department participated in an upgraded multi -city radio system providing
all participating cities with better coverage.
Implemented a gun safety program, which included the distribution of free gunlocks.
The Euless Public Library received a grant from the Telecommunications
Infrastructure Board, which allowed for 30 new computers, printers, and expanded
Internet access.
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 "Texas Community
Forestry Governmental Project" award for Arbor Daze 2001. They also earned the
"Best Environmental Festival" award and were named a finalist for the National
Arbor Day award.
New playground equipment was installed at Trailwood, Blessing Branch, Heritage
Park and Midway Park.
Irrigation projects were completed at J.A. Carr Park, South Euless Park, Raider Dr.,
Trojan Trail and at the Community Services Administration building.
Softball World hosted five USSSA National and two state tournaments. These
tournaments have resulted in a substantial number of local hotel bookings.
The Fire Department implemented a Citizen's Fire Academy.
Texas Star Golf Course was ranked #4 in the state by American Express' Travel and
Leisure magazine and #14 municipal golf course in the country by Golf Week
magazine. They also received the coveted "****" rating from Golf Digest
magazine.
The Parks at Texas Star hosted the Super Series "All -Star" National Tournament
with 78 participating teams.
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 loss, 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.
111
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,
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 $22,203,407 in 2001, an
increase of 4.2% over 2000. The increase in revenues is primarily attributable to:
increased property tax receipts, municipal court fines and fees, lease receipts, gross
receipts taxes and interest income. 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
$7,646,808 34.44%
3,292,946 14.83%
5,451,380 24.55%
3,145,608 14.17%
511,625 2.30%
560,694 2.53%
1,594,346 7.18%
$22,203,407 100%
Increase
(decrease)
from 2000
$438,571
291,953
(334,153)
330,494
(38,731)
(104,893)
302,764
$886,005
Percent of
Increase
(decrease!_
6.08%
9.73%
(5.78%)
11.74%
(7.04%)
(15.76%)
23.44%
In addition to the above general revenue, $1,933,369 was transferred from various
funds, including $500,000 from the Crime Control District, $436,368 from the car rental
fund for operations and the remainder primarily from enterprise funds for general and
administrative cost reimbursement.
Expenditures for general governmental purposes and general debt service totaled
$23,428,186, an increase of 18.29% over 2000. Changes in levels of expenditures for
major functions of the City over the preceding year are shown in the following table:
iv
Function
General government
Public safety
Streets
Parks/Recreation/Library
Debt Service
Non -departmental
TOTAL EXPENDITURES
Percent
Amount Of Total
$ 3,483,706 14.87%
10,622,716 45.34%
734,672 3.14%
2,406,417 10.27%
4,379,893 18.69%
1,800,782 7.69%
$23.428,186 100%
Increase
(decrease)
from 2000
$ 224,002
742,200
(12, 304)
95,328
2,180,699
392,109
$3,622,034
Percent of
Increase
(decrease)
6.87%
7.51%
(1.65)%
4.12%
99.16%
27.84%
Non departmental expenditures increased primarily due to funding of nonrecurring
capital items including renovation of the Tejas building. Debt service increased due to
the issuance of bonds for the Police and Courts facility, Harwood Road and the Dr.
Pepper StarsCenter. Other increases are due primarily to increased personnel costs.
Revenues
Public Safety
45%
Expenses
General Gov't
15%
Parks/Recreation
/Library
10%
V
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 substantial
increase in water revenues as a result of extreme heat and dry conditions. Comparative
data for the past two fiscal years are presented in the following table.
2001 2000
Income before operating transfers $ 703,445 $1,998,696
Net revenue available for debt service 2,783,618 3,155,916
Average annual debt service requirements 336,354 357,668
Coverage 8.28 times 8.82 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 FY2001, $604,067 of revenue was generated and
$212,073 of costs was incurred, excluding depreciation, amortization, and debt service
cost related to capital improvements. Capital improvements were initiated in FY92
relating to the Drainage Utility System and continue through FY2001.
The Recreation Fund has been segregated from the general operating budget of the
City to allow the Midway Recreation Center and the class structures to operate as an
enterprise fund. Revenue of $307,650 was generated while class expenses were
$267,051. Both experienced a decrease from prior year activity. Euless' Arbor Daze
was formerly funded in this account, but has been segregated for better accountability.
The Arbor Daze Fund ended FY2001 with $724,004 in revenues and $676,451 in
expenses.
Softball World Fund was added in fiscal year 1996 to promote adult softball programs
through league, tournament, and special events. Revenue of $1,010,654 was collected
for league fees, concession sales, and sale of sporting goods. Expenses were
$901,489 with operating income prior to transfers of $45,223.
The Golf Course Fund and Athletic Complex were established as enterprise funds in
1996. The golf course revenues were $3,263,592 with operating expenses of
$3,148,675. Net loss after debt service and before operating transfers is ($436,547).
The athletic complex ended the year with an operating loss of $134,660 including
depreciation of $186,121.
Debt Administration. General obligation debt, which is directly tax supported,
totaled $13,214,519 at September 30, 2001. 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 - $35,381,898; ratio of net bonded debt to assessed
value is 1.96% and net bonded debt per capita is $766. Outstanding certificates of
obligation at September 30, 2001, totaling $33,880,000 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.
vi
Outstanding sales tax revenue bonds, secured by the January 1993 referendum for
half -cent sales tax for parks, library and economic development totaled $9,295,000 as
of September 30, 2001.
Outstanding revenue bonds, which are secured by the net revenues of the various
Enterprise Funds, totaled $5,705,000 at September 30, 2001. Outstanding certificates
of obligation, which are secured by the tax base and revenues of the various Enterprise
Funds totaled $11,295,000.
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 $2,866,793. Interest is an important non -tax
revenue for the City. Throughout 2001, the City maintained an average of 100%
investment of available funds. This program continues to provide a positive revenue
source for the City.
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 $80,000 and aggregate claims in excess of $1,573,860.
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.
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, 2001, the general fixed
assets of the City amounted to $48,724,760. This amount represents the original cost
of the assets and is considerably less 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.
vii
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, 2000. 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,
i
, j 4 Et
Loretta Getchell, CPA
Director of Fiscal and Administrative Services
viii
CITY OFFICIALS
MARY LIB SALEH, MAYOR
CARL TYSON, COUNCIL MEMBER PLACE ONE
AND MAYOR PRO'I'EM
LEON HOGG, COTJNCIL MEMBER PLACE TWO
BOB EDWAIUDS, COUNCIL MEMBER PLACE ' 1 ' H HEN;
H,
CHARLES MILLER, COUNCIL MEMBER PLACE FOUR
GLENN PORTERFIELD, COUNCIL MEMBER PLACE FI V E
VEVA LOU MASSEY, COUNCIL MEMBER PLACE S I X
JOE 11 ENNIG, CITY MANAGER
Gary McKamie
Deputy City Manager
Loretta Getchell, CPA
Director of Fiscal &
Administrative Services
ix
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, 2000. 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
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Euless,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2000
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.
/el/11141
Pr sident
Executive Director
x
0., ._l..�
ig, City Man ger
er, 2001
BOB MCFARLAND
City Attorney
hi.11l YIIlYlldll RAI Y lY 8.
x
RANDY
BYERS
Director of
Public Works
streets
Vater
Vastewater
animal Control
4eter Reading
'leet Services
'acility Maint.
;onstruction Mgmt.
RON YOUNG
Assistant
Director of
Public Works/
City Engineer
Engineering
Const. Inspection
CIP Management
Traffic Safety
Drainage
SUSAN CRIM
City Secretary
RICK HEROLD
Director of Parks
Community
Services
Library
Recreation
Parks
Texas Star Sports
Centre:
Athletic Complex
Golf Course
Conference Centre
Softball World
StarCenter
CITIZENS
i IYYlJ II8.1t11 ,11,IWlII 188I1111II nIli ,!, 611,1i0I,Ye1111M 111111.0
LEONARD
CARMACK
Police Chief
Patrol
Criminal Invest.
Services:
Communications
Community
Jail
MAYOR
and
COUNCIL
JOE HENNIG
City Manager
GARY MCKAMIE
Deputy City Manager
LORETTA
GETCHELL
Director of
Finance/
Admin. Services
Accounting
Utility Billing
Budget
Municipal Court
Cash Debt. Mgmt.
Human Resources:
Risk/Benefits
Info. Services
Purchasing
Organizational Chart
LACY BRITTEN
Municipal Court Judge
LEE KOONTZ
Fire Chief
Suppression
Ambulance
Fire Educ. & Prevent.
Fire Marshall
Emergency Mgmt.
MIKE
COLLINS
Director of
Planning
& Development
Municipal Court
of Record
Planning
Code Enforcement
Environ. Health
Building Inspections
BILL
RIDGWAY
Director of
Economic
Development
Franchises
Recycling
LORI
DE LA CRUZ
Communications/
Marketing
Manager
FINANCIAL SECTION
WEAVER
TIDWELL
L. L. P.
CERTIFIED PUBLIC
ACCOUNTANTS
AND CONSULTANTS
DALLAS
/Wee 1»rat! Plaza
12221 Merit Drive
Suite 1400
Dalbts, levers 75251-2280
972. J90.1970
1: 972.702.8.321
FORT WORTH
1600 Ili-,t Seventh Street
Suite 300
Fort nab, 6'xtts 76102-2506
817.3.32.7905
/ 817. 129. 59.36
WWW.WEAVERANOTIDWELL.COM
AN INDEPENDENT MEMBER OF
BAKER TILLY
INTERNATIONAL
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
We have audited the accompanying general purpose financial statements of the
City of Euless, Texas as of and for the year ended September 30, 2001, 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, 2001, 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 Govemmental 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
January 9, 2002
3729
2
GENERAL PURPOSE FINANCIAL STATEMENTS
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
ASSETS AND OTHER DEBITS Fund Funds Fund Funds
Deposits and investments $ 5,893,049 $ 11,595,745 $ 541,311 $ 19,096,632
Receivables:
Property taxes 337,878 - 155,825
Accounts receivable and unbilled revenue 1,863,662 1,629,385
Accrued interest 142,240 51,871 52,844
Due from other funds -
Due from other governments 23,585 591,903
Prepaids and deposits 8,646 1,641
Inventories, at cost 7,918 -
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
Total assets and other debits $ 8,276,978 $ 13,870,545 $ 697,136 $ 19,149,476
The Notes to the General Purpose Financial
Statements are an integral part of this statement.
3
Proprietary Fiduciary
Fund Types Fund Types Account Groups
Internal General General
Enterprise Swrvuce Agency Fixed Lung- thin
Funds Funds Funds Assets Debt
$ 10,787,962 $ 1,645,779 $ 2,145,501 $ $
2,033,515 -
131,686 17,665
617,340 -
22,703 248,117 3,592,601
48,724,760
37, 887, 518 1,454,872
229,547
$ 55,550,989
(1 of 2)
Totals
(Memorandum only)
2001 2000
$ 51,705,979 $ 44,568,477
493,703 361,663
5,526,562 5,096,799
396,306 502,961
617,340 677,617
615,488 1,575,160
32,990 85,621
256,035 192,840
3,592,601 4,550,001
48,724,760 39,310,730
39,342,390 38,440,725
229,547 257,199
1,522,621 1,522,621 1,581,339
57,846,762 57,846,762 48,025,739
$ 3,118,316 $ 2,145,501 $ 48,724,760 $ 59,369,383 $ 210,903,084 $ 185,226,871
4
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
LIABILITIES, FUND EQUITY
AND OTHER CREDITS
Liabrlities:
Ac.ounts 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
Total liabilities
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:
Debt service
Computer
Park improvements
Recycling
Development agreements
Prepaids
Betterment
Campus remodel
Library
Injured animals
Historical Preservation
Unreserved:
Designated for:
Contingency
Emergency
Undesignated
Total fund equity and other credits
Total liabilities, fund equity and other credits
The Notes to the General Purpose Financial
Statements are an integral part of this statement.
General
Fund
$ 510,583 $ 111,697 $
409,839
932,559
1,852,981
30,981
4,606
3,183
25,991
27,039
7,772
279
Governmental Fund Types
Special Debt
Revenue Service
Funds Fund
27,282
152,850
6,632,224
6,771,203 152,850
978,335 544,286
1,323
500,000
500,000
5,324,146 6,119,684
6,423,997 7,099,342
$ 8,276,978 $ 13,870,545
5
Capital
Projects
Funds
$ 2,614,737
142
2,614,879
1,367,369
15,167, 228
544,286 16, 534, 597
$ 697,136 $ 19,149,476
Proprietary
Fund
Enterprise
Funds
$ 1,228,552
262,685
1,226,806
68,901
617,340
17, 000, 000
9,768
123,502
20, 537, 554
12, 991, 850
30,192
500,000
31,311
6,000
21,454,082
Types
Internal
Service
Funds
$ 90,474
76,281
26,317
Fiduciary
Fund Type
Agency
Funds
$
2,100, 304
45,197
193,072 2,145,501
41,000
200,000
200,000
2,484,244
35,013,435 2,925,244
$ 55, 550, 989 $ 3,118, 316 $ 2,145, 501
$
Totals
Account Groups (Memorandum only)
General
Fixed
Assets
48, 724, 760
$
General
Long-term
Debt
56, 389, 519
1,984,636
995,228
59, 369, 383
48,724,760
$ 48,724,760 $ 59,369,383
6
(2 of 2)
2001 2000
$ 4,556,043 $ 7,211,006
76,281 60,522
726,265 626,444
1,226,806 1,165, 645
68,901 68,901
617,340 677,617
73,389,519 64,418,796
9,768 159,328
1,984,636 1,836,366
1,208,911 1,038,926
995,228 1,118, 391
2,100, 304 1,995,068
6,677,421 8,588
93,637,423 80,385,598
48,724,760 39,310,730
12, 991, 850 13, 413,181
30,192 37,718
41,000 41,000
200,000 200,000
200,000 200,000
500,000 500,000
31,311 31,311
6,000 39,405
23,938,326 22,953,020
1,522,621 1,581,339
30,981 36,347
4,606 4,606
3,183 3,183
1,367,369 1,202,657
15,065
25,991 32,757
27,039 27,039
7,772 3,948
279 917
1,323 1,323
500,000
500,000
26, 611, 058
117,265,661
$ 210,903,084
500,000
500,000
24, 205, 727
104, 841, 273
$ 185,226,871
1
Fund balances, beginning of year
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
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 counciUadministrative
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
General
Fund
$ 4,996,931
3,292,946
5,451,380
3,145,608
511,625
427,556
413,617
210,316
18,449,979
450,766
789,244
6,380,465
4,242,251
670,920
1,026,518
2,406,417
734,672
29,586
516,672
1,800,783
Total expenditures 19,048,294
Excess (deficiency) of
revenues over expenditures ( 598,315)
Other financing sources (uses)
Proceeds from issuance of bonds -
Operating transfers in 1,433,369
Operating transfers out ( 168,854)
Special
Revenue
Funds
$ -
279,860
3,242,268
11,048,696
536,599
71,457
192,644
Debt Capital
Service Projects
Fund Funds
3 2,649,877
133,138
970,413
15,371,524 3,753,428
527,153
7,469,941
871,575
119,400
405,000 1,179,277
566,205 3,200,616
621,381
10,580,655 4,379,893
Totals
(Memorandum Only)
2001 2000
$ $ 7,646,808 $ 7,208,237
3,572,806 2,655,007
8,693,648 9,244,571
11,048,696 6,300,071
3,145,608 3,452,010
511,625 550,356
805,581 1,902,874 1,514,037
71,457 101,538
413,617 602,417
118,114 1,491,487 843,473
923,695 38,498,626 32,471,717
104,300
12,768,675
12,872,975
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
1,584,277
3,766,821
104,300
13,390,056
435,129
755,997
6,459,530
3,902,992
601,347
934,241
4,696,059
3,967,325
746,976
233,311
17,626
531,002
1,391,047
1,412,790
1,768,842
328,100
15,404,250
46,881,817 43,586,564
4,790,869 ( 626,465) ( 11,949,280) ( 8,383,191) ( 11,114,847)
9,622
( 3,124,196)
Total other financing sources (uses) 1,264,515 ( 3,114,574)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other financing uses 666,200
5,757,797
Fund balances, end of year $ 6,423,997
1,676,295
5,423,047
3 7,099,342
- 11,455,000
500,000 1,404,367
( 638,803)
500,000 12,220, 564
( 126,465)
670,751
$ 544,286
271,284
16,263,313
3 16,534,597
11,455,000
3,347,358
( 3,931,853)
24,088,891
2,784,426
( 2,380,120)
10,870,505 24,493,197
2,487,314
28,114,908
$ 30,602,222
13,378,350
14,736,558
$ 28,114,908
The Notes to the General Purpose Financial
Statements are an integral part of this statement,
7
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, 2001
(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 $ 4,967,419 $ 4,981,319 ($ 13,900) $ $ $
Penalty and interest 29,512 34,534 ( 5,022)
4,996,931 5,015,853 ( 18,922)
Gross receipts tax:
Southwestem Bell Telephone Company 487,290 488,715 ( 1,425)
Texas Utilities Electric Company 1,527,689 1,331,408 196,281
Texas Utility Gas Company 208,533 117,545 90,988
Cable TV 255,937 229,193 28,744
City Garbage Service 104,922 102,640 2,282
Water and Sewer system 611,588 572,954 38,634 - - -
Others 96,987 98,254 ( 1,267) 279,860 300,000 ( 20,140)
3,292,946 2,940,709 352,237 279,860 300,000 ( 20,140)
General sales tax 5,451,380 5,385,866 65,514 3,242,268 3,154,348 87,920
Car rental tax 11,048,696 11,000,000 48,696
Fines and fees:
Municipal Court fines 2,487,905 2,083,680 404,245
Jail income 131,623 130,000 1,623
Dog licenses and pound fees 13,589 14,000 ( 411)
Ambulance fees 265,917 218,000 47,917
Library fees 33,451 36,000 ( 2,549)
Zoning fees 15,872 19,725 ( 3,853)
Deferred adjudication fee 197,251 163,000 34,251
3,145,608 2,664,385 481,223 Licenses and permits:
Building permits 211,541 242,000 ( 30,459)
Miscellaneous permits 219,047 206,570 12,477
Minimum housing 81,037 76,000 5,037 -
511,625 524,570 ( 12,945)
Interest Income 427,556 350,000 77,556 536,599 310,147 226,452
Intergovernmental 413,617 387,823 25,794 -
Other revenues:
Rental income 102,261 66,500 35,761
Swimming pools 16,992 15,500 1,492 -
Miscellaneous income 91,063 92,000 ( 937) 264,101 181,724 82,377
210,316 174,000 36,316 264,101 181,724 82,377
Total revenues $ 18,449,979 $ 17,443,206 $ 1,006,773 $ 15,371,524 $ 14,946,219 $ 425,305
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, 2001
(2 of 2)
General Fund Special Revenue Funds
Variance Variance
Favorable Favorable
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
Expenditures:
Current:
City counciUadministration $ 450,766 $ 454,698 $ 3,932 $ $ $
Finance/Purchasing 789,244 798,814 9,570 - -
Police department 6,380,465 6,570,197 189,732 527,153 565,576 38,423
Fire department 4,242,251 4,161,521 ( 80,730) - -
Administrative services 670,920 623,765 ( 47,155)
Planning and development/
Engineering/Animal Control 1,026,518 1,049,838 23,320 - -
General and administrative - 7,469,941 7,646,133 176,192
Parkc/recreatioMibrary 2,406,417 2,474,539 68,122 871,575 933,854 62,279
Street maintenance 734,672 745,210 10,538 - - -
Economic development 119,400 139,459 20,059
Betterment 29,586 22,000 ( 7,586) - -
Staff services 516,672 557,077 40,405
Nondepartmental 1,800,783 1,692,443 ( 108,340)
Debt service
Principal payments 405,000 405,000
Interest payments 566,205 566,207 2
Capital outlay and maintenance 621,381 560,891 ( 60,490)
Total expenditures 19,048,294 19,150,102 101,808 10,580,655 10,817,120 236,465
Excess (deficiency) of
revenues over expenditures ( 598,315) ( 1,706,896) 1,108,581 4,790,869 4,129,099 661,770
Other financing sources (uses):
Operating transfers in 1,433,369 1,094,809 338,560 9,622 6,338 3,284
Operating transfers out ( 168,854) ( 188,716) 19,862 ( 3,124,196) ( 3,085,912) ( 38,284)
Total other financing
sources (uses) 1,264,515 906,093 358;422 ( 3,114,574) ( 3,079,574) ( 35,000)
Excess (deficiency) of
revenues and other financing sources
over expenditures and other
financing uses 686,200 ( 800,803) 1,467,003 1,676,295 1,049,525 626,770
Fund balance, beginning of year 5,757,797 5,757,797 5,423,047 5,423,047
Fund balance, end of year $ 6,423,997 $ 4,956,994 $ 1,467,003 S 7,099,342 $ 6,472,572 $ 626,770
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, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
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
Goff 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):
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 eamings
Retained eamings, beginning of year
Retained earnings, end of year
Internal
Enterprise Service
Funds Funds
$ 7,361,182 $
3,635,063
604,067
307,650 -
1,916,112
6,585,884 506,118
18,493,846 2,422,230
1,328,581 643,051
4,502,134 521,269
377,846
925,325
2,275,918
273,029
718,660
212,073
266,776
1,032,051
397,362
824,150
228,379
147,798
1,082
183,604 889,384
676,451 2,020,883
1,924,172 481,958
27,651
17,733,695 3,145,892
760,151 ( 723,662)
871,680 92,239
( 1,089,752)
( 218,072)
542,079
27,893
120,132
603,530)
1,515,011 784,083
( 1,633,612)
Totals
(Memorandum Only)
2001 2UUU
$ 7,361,182 $
3,635,063
604,067
307,650
1,916,112
7,092,002
20,916,076
1,971,632
4,502,134
521,269
377,848
925,325
2,275,918
273,029
718,660
212,073
266,776
1,032,051
397,362
824,150
228,379
147.798
1,082
183,604
889,384
676,451
2,020,883
2,406,130
27,651
20,879,587
38,489
963,919
( 1,089,752)
27,893
97,940)
61,451)
2,299,094
80,987) ( 1,714,599)
423,478 99,566
421,331
844,809
21,176,776
$ 22,021,585
523,044
421,331
99,566 944,375
2,825,678 24,002,454
$ 2,925,244 $ 24,945,829
(
7,657,132
3,730,338
610,315
323,496
1,873.541
7,547,890
21,742,712
1,293,367
3,720,528
487,390
337,400
2,157,998
2,154,479
210,125
684,067
329,422
287,883
974,179
403,748
814,273
284,339
146,320
8,801
55,044
924,338
623,588
1,705,023
2,218,510
27,651
19,848,473
1,894,239
884,284
838.377)
38,891
84,798
1,979,037
717,663
1,121,969)
1,574,731
421,331
1,996,062
22,006,392
$ 24,002,454
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, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization expenses
Gain on sale of fixed assets
(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
Accrued insurance claims
Due to other funds
Customer and escrow deposits
Bond issue costs
Deferred revenue
Enterprise
Funds
Internal
Service
Funds
$ 760,151 ($ 723,662)
1,951,823
121,130
31,453
47,476
( 65,197)
117,305
( 25,170)
( 31,453)
61,161
( 16,363)
Total adjustments 2,192,165
Net cash provided by (used in)
operating activities 2,952,316
NONCAPITAL FINANCING ACTIVITIES :
Interest paid on bonds
Interest paid on tax notes payable
Reduction in bonds payable
Reduction in tax notes payable
Reduction of capital leases payable
Proceeds from issuance of bonds
Operating transfers in
Operating transfers out
Net cash provided by (used in)
noncapital financing activities
CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of utility plant and equipment
in service
Proceeds from sale of utility plant in
service
Net cash used in capital and related
financing activities
1,089,752)
800,000)
100,000)
16,035)
1,515,011
( 1,633,612)
(
481,958
27,893
75,641
7,605
15,759
608,856
114,806)
784,083
( 80,987)
( 2,124,388) 703,096
( 2,854,776) ( 453,019)
( 2,854,776) ( 453,019)
(1 of 2)
Totals
(Memorandum only)
2001 2000
$ 36,489 $ 1,894,239
2,433,781 2,246,161
27,893
121,130 ( 395, 740)
31,453 48,501
47,476 ( 12,401)
( 65,197) ( 14,882)
192,946 526,421
( 17,565) 85,842
15,759 ( 67,131)
( 31,453) ( 41,172)
61,161 13,843
( 60,000)
( 16,363) 11,661
2,801,021 2,341,103
2,837,510 4,235,342
1,089,752) ( 838,131)
( 9,168)
800,000) ( 670,000)
100,000) ( 290,000)
16,035) ( 15,178)
3,445,000
2,299,094 717,663
( 1,714,599) ( 1,121,969)
( 1,421,292) 1,218,217
( 3,307,795) ( 2,056,724)
76,415
( 3,307,795) ( 1,980,309)
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, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
INVESTING ACTIVITIES:
Purchase of investment securities
Proceeds from sale of investment securities
Interest received on investments
Net cash provided by (used in)
investing activitives
Enterprise
Funds
$ 1,136,244
924,815
2,061,059
Net increase in cash and
cash equivalents 34,211
Cash and cash equivalents, beginning of year 11,317,700
Cash and cash equivalents, end of year $ 11,351,911
Reconciliation of cash to balance sheet:
Cash - current
Cash - restricted assets
Cash and cash equivalents
Restricted assets:
Cash
Investments
Total restricted assets
$ 10,787,962
563,949
$ 11,351,911
$ 563,949
3,028,652
$ 3,592,601
Internal
Service
Funds
95,689
95,689
230,960
1,414,819
$ 1,645,779
(2 of 2)
Totals
(Memorandum only)
2001 2000
1,136,244
1,020,504
2,156,748
265,171
12,732,519
$ 12,997,690
($ 2,514,661)
123,837
1,011,761
( 1,379,063)
2,094,187
10,638,332
$ 12,732,519
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
The financial statements of the City of Euless, Texas (the "City") have been prepared in
conformity with generally accepted accounting principles (GAAP) as applied to govemment
units. The Govemmental Accounting Standards Board (GASB) is the accepted standard -
setting body for establishing govemmental accounting and financial reporting principles.
The City's significant accounting policies are described below:
Reporting Entity
The combined financial statements of the City include the primary govemment
organizations for which the primary govemment is financially accountable and other
organizations for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity's financial
statements to be misleading or incomplete.
The definition of the reporting entity is based primarily on the notion of financial
accountability. A primary govemment is financially accountable for the organizations that
make up its legal entity. It is also financially accountable for legally separate
organizations if its officials appoint a voting majority of an organization's goveming body
and either it is able to impose its will on that organization or there is a potential for the
organization to provide specific financial benefits to, or to impose specific financial
burdens on, the primary govemment. A primary govemment may also be financially
accountable for govemmental organizations that are fiscally dependent on it.
A primary govemment has the ability to impose its will on an organization if it can
significantly influence the programs, projects, or activities of, or the level of services
performed or provided by, the organization. A financial benefit or burden relationship
exists if the primary govemment (a) is entitled to the organization's resources; (b) is
legally obligated or has otherwise assumed the obligation to finance the deficits of, or
provide financial support to, the organization; or (c) is obligated in some manner for the
debt of the organization.
Some organizations are included as component units because of their fiscal dependency
on the primary govemment. An organization is fiscally dependent on the primary
govemment if it is unable to adopt its budget, levy taxes, set rates or charges, or issue
bonded debt without approval by the primary govemment.
The following entities were found to be component units of the City and are included in
the combined financial statements:
Euless Development Corporation - The City created the Corporation for the purpose of
promoting parks, library services, and economic development within the City. The
Corporation's goveming body is substantially the same as the goveming body of the
City. There are seven directors, four of whom are members of the City Council and
make up a voting majority of the City Council. The remaining three members are
residents of the City. All Board members are appointed by the City Council. The
13
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Reporting Entity - continued
Corporation is authorized to sell bonds or other forms of indebtedness. Upon
dissolution of the Corporation, the assets of the Corporation shall be distributed to the
City. The Corporation provides all of its services to the City.
A blended presentation has been used to report the financial information of this
component unit. The financial statements for the Corporation were obtained from the
Board of Directors. The financial information for the Corporation is available from the
City.
Crime Control District - The City created the District for the purpose of proactively
combating rising crime rates by setting up additional crime prevention and
rehabilitation programs within the City. The District's goveming body is substantially
the same as the goveming body of the City. There are seven directors, four of whom
are members of the City Council and make up a voting majority of the City Council.
The remaining three members are residents of the City. All Board members are
appointed by the City Council. The District is authorized to sell bonds or other forms of
indebtedness. Upon dissolution of the District, the assets of the District shall be
distributed to the City. The District provides all of its services to the City.
A blended presentation has been used to report the financial information of this
component unit. The financial statements for the District were obtained from the Board
of Directors. The financial information for the District is available from the City.
Fund Accounting
The City uses funds and account groups to report its financial position, the results of its
operations and its cash flows. Fund accounting is designed to demonstrate legal
compliance and to aid financial management by segregating transactions related to
certain City functions or activities.
A fund is a separate accounting entity with a self -balancing set of accounts. An account
group, on the other hand, is a financial reporting device designed to provide
accountability for certain assets and liabilities that are not recorded in the funds because
they do not directly affect net expendable financial resources available.
Funds are classified into three categories: govemmental, proprietary and fiduciary. Each
category, in tum, is divided into separate "fund types."
Govemmental funds are used to account for all or most of the City's general activities,
including the collection and disbursement of earmarked moneys (special revenue funds),
the acquisition or construction of general fixed assets (capital projects funds) and the
servicing of general long-term debt (debt service funds). The general fund is used to
account for all activities of the City not accounted for in some other fund.
14
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 (intemal
service funds).
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All govemmental 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 (Le., 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 govemmental 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
govemment 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 altematively 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
Tess.
For purposes of the combined statement of cash flows, the City considers all highly liquid
investments (including cash equivalents reported as restricted assets of $563,949 and
$367,322 at September 30, 2001 and 2000, respectively) to be cash equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or less
when purchased are reported at amortized cost. Nonparticipating contracts are reported
at cost. All other investments are reported at fair value.
State statutes authorize the City to invest in obligations of the U.S. Govemment 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 $.514754 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 govemmental 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-extemal 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-extemal 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, 2001, the bank balances were $164,366 and the ledger balances of
the City's book cash deposits were ($1,118,223). Of the bank balances, $164,366 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, 2001, 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
$22,289,294
3
Carrying
Amount
Fair
Value
$ - $22,289,294 $22,503,938
276 276
16, 894, 764 16, 894, 764
17.232.469 17, 232, 469
156A1Q 803
$55.fi31,442
Investments in local govemment 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,
follows:
General Long -Term Debt
Account Group:
General Obligation Bonds
Certificates of Obligation
Sales tax revenue bonds
Capital leases
Compensated absences
Accreted interest
Balance
Beginning
of Year Increase
$ 7,813,796 $ 6,000,000
29,005,000 5,455,000
9,700,000
133,525
1,118,391 1,836,366 148.270
Decrease
$ 599,277
580,000
405,000
133,525
123,163
2001, is as
Balance
End
of Year
$ 13,214,519
33,880,000
9,295,000
995,228
1,984.636
$4.9.07.2fl $11 603270 $ U4Q,965 1$2.369.$$$
20
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT — continued
Balance
Beginning
of Year
Proprietary Fund Types:
Water and Sewer
Revenue Bonds $ 4,615,000
Drainage Utility
Revenue Bonds 1,655,000
Tax and Golf Course
Surplus Revenue
Certificates of Obligation 9,735,000
Tax and Softball Works Park
Surplus Revenue
Certificates of Obligation
Capital Leases
Tax Notes
1,795,000
25,803
100.000
$17.9.2.$Q3 $
Jncrease
Debt outstanding at September 30, 2001 consists of the following:
General Obligation Bonds
Certificates of Obligation
Sales Tax
Revenue Bonds
Capital leases
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%
5.00 to 8.00%
5.50%
4.50 to 6.75%
6.00 to 6.70%
5.25 to 7.30%
4.10 to 5.25%
Outstanding
Balance
$ 13,214,519
33,880,000
9,295,000
9,768
4,170,000
1,535,000
9,575,000
1,720,000
Balance
End
Decrease of Year
$ 445,000 $ 4,170,000
120,000 1,535,000
160,000 9,575,000
75,000 1,720,000
16,035 9,768
100.000
$._91.035 $17.002.758
Current Long -Term
Maturities Maturities
$804,866 $12,409,653
930,000 32,950,000
430,000 8,865,000
9,768
580,000 3,590,000
130,000 1,405,000
235,000 9,340,000
75,000 1,645,000
21
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.
2002
2003
2004
2005
2006
2007-2011
2012-2016
2017-2021
2022-2026
2027
Less interest
Principal
2002
2003
2004
2005
2006
2007-2011
2012-2016
2017-2021
2022-2026
2027
Less interest
Principal
Sales
General Certifi- Tax
Obligation cates of Revenue
Bonds Obligation Bonds
$ 1,997,796 $ 3,143,397 $ 969,906
2,022,056 3,086,246 970,466
2,014,032 3,047,984 965,720
1,170,729 3,044,845 969,750
1,162,124 3,047,992 971,711
4,753,131 15,274,260 4,854,014
4,301,790 15,338,850 4,121,813
3,996,216 11,041,867 257,203
3,905,875
21,417,874 60,931,316 14,080,583
8.203.355 27051.316 4.785.583
Capital
Leases
$ 10,305
Water and
Sewer
Revenue
Bonds Subtotal
$ 811,234 $ 6,932,638
489,246 6,568,014
408,946 6,436,682
411,459 5,596,783
278,071 5,459, 898
1,408,243 26,289,648
1,418,780 25,181,233
1,164,750 16,460,036
3,905,875
10,305 6,390,729 102,830,807
537 2.220.729 42.261.520
213.211519 in,1120.420 L12212120 1_916fl 24.i711211Q 200,.000.22Z
Drainage
Utility
Revenue
Bonds
$ 228,652
230,788
227,248
228,258
233,492
931,636
Tax and
Golf
Course
Surplus
Revenue
Certificates of
Obligation
$ 782,275
778,525
711,702
711,728
711,228
3,552,480
3,562,054
3,565,900
3,560,982
714.826
Tax and
Softball
World Park
Surplus
Revenue
Certificates of
Obligation
$ 157,082
158,856
160,348
161,540
162,423
818,678
841,387
2,080,074 18,651,700 2,460,314
545.074 9.076.700 740.314
11.535.444 1_9.;ZZ5 000 1_1222.000
Subtotal Grand Total
$ 1,168,009 $ 8,110,647
1,168,169 7,736,183
1,099,298 7,535,980
1,101,526 6,698,309
1,107,143 6,567,041
5,302,794 31,592,442
4,403,441 29,584,674
3,565,900 20,025,936
3,560,982 7,466,857
714.826 714,826
23,192, 088 126, 022, 895
10.362.088 52,623.608
112 830.1220 $J3.119282
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, 2001, amounted to
$3,200,000. Water and Sewer Revenue Bonds authorized and unissued as of September
30, 2001, 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, 2001. The
amounts reserved are reported as restricted assets of the Enterprise Funds.
Investments of funds included in the bond reserve and emergency accounts are restricted
to obligations of the United States or its agencies and instrumentalities (except for mortgage
pass -through securities).
The City issued General Obligation Bonds, Series 2001 and Tax and Waterworks and
Sewer System Surplus Revenue Certificates of Obligation Bonds, Series 2001, for
$6,000,000 and $5,455,000, respectively, on May 22, 2001. Bond issuance costs were
$52,400 and $51,900, respectively.
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.
23
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
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 $5,420,000 and are included as operating
expenses of the water and sewer fund. The payments increased approximately $309,000 in
comparison to 2000.
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,
2000
$ 4,776,274
18,187, 761
4,273,166
3,845,482
8.228.047
$_39.311730
Balance
September 30,
Additions Deletions 2001
$ 430,000
454,128
$ - $ 5,206,274
18,641, 889
392,830 - 4,665,996
7,734,142 11, 579, 624
402.930 8.630.977
$_1414.Q3Il $ 148124102
The following is a summary of utility plant and equipment in service at September 30, 2001
included in the proprietary funds:
Land and building
Equipment
Improvements
Waterworks
and sanitary
sewer system 31,263,055
Construction
in progress _2:11§,522
37, 475, 309
Less accumulated
depreciation 18.452.188
S11023.121
Water and
Sewer Fund
Enterorise Funds
Internal
Drainage Recreation Golf Course Softball Athletic Service
Utility Fund Classes Fund Complex Complex Funds
$1,528,966 $ 89,000
2,382,158 6,510
184,601 2,706,729
2,802,239
456.344
$2.34fi.89fi
$ - $ 348,135 $1,369,473 $5,197,050 $ -
1, 376 985,011 46,211 151,046 3,008,677
10,525,950 57,604 - 40,390
1,376 11,859,096
1,473,288 5,348,096 3,049,067
1.100 1.564.243 39.648 558.363 _1.594195
$ 22.5 $1Q294 853 $1..433.64Q $41119 233 11.454.872
24
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
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 $ 273,340
Softball Complex Athletic Complex 344.000
$SiL340
NOTE 9. CONTRIBUTED CAPITAL
The activity within the Enterprise Fund contributed capital for the year ended
September 30, 2001 is as follows:
Balance, September 30, 2000 $13,413,181
Depreciation expense for the
year ended September 30, 2001 ( 421.3311
Balance, September 30, 2001 S12.29.1,$50
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
$80,000 and aggregate claims in excess of $1,573,860. During fiscal 2001, the City and
City's employees contributed approximately $1,128,000 and $481,000, respectively, for
medical coverage. The City's contributions are accounted for as quasi-extemal
25
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 10. RISK MANAGEMENT - continued
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 2001, the City contributed
approximately $308,000 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
2001 2000
$ 60,522 $ 127,653
2,001,774 1,603, 934
1,986,015 1,671,065
$ 76,281. $ 60.,.522
The City had no significant reductions in insurance coverage from the year ended
September 30, 2000. Settlement amounts have not exceeded insurance coverage for the
year ended September 30, 2001 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
Municipal Retirement System (TMRS), one of 745 administered by TMRS, an agent
multiple -employer public employee retirement system. Each of the 745 Municipalities
have an annual, individual actuarial valuation performed. All assumptions for the
12/31/00 valuations are contained in the 2000 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
26
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM — continued
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 goveming 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
10 yrs
Members can retire at certain ages, based on the years of service with the City. The
Service Retirement Eligibilities for the city are: 10 yrs/age 60, 25 yrs/any age
Contributions
Under the state law goveming TMRS, the actuary annually determines the City
contribution rate. This rate consists of the normal cost contribution rate and the prior
service contribution rate, both of which are calculated to be a level percent of payroll from
year to year. The normal cost contribution rate finances the currently accruing monetary
credits due to the City matching percent, which are the obligation of the City as of an
employee's retirement date, not at the time the employee's contributions are made. The
normal cost contribution rate is the actuarially determined percent of payroll necessary to
satisfy the obligation of the City to the unfunded (overfunded) actuarial liability (asset)
over the remainder of the plan's 25-year amortization period. The unit credit actuarial
cost method is used for determining the City contribution rate. Both the employees and
the City make contributions monthly. Since the City needs to know its contribution rate in
advance for budgetary purposes, there is a one-year delay between the actuarial
valuation that is the basis for the rate and the calendar year when the rate goes into
effect. (i.e. December 31, 2000 valuation is effective for rates beginning January 2002)
27
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM — continued
Schedule of Actuarial Liabilities and Funding Progress
Actuarial Valuation Date 12/31/00
Actuarial Value of Assets $42,116,506
Actuarial Accrued Liability $50,370,674
Percentage Funded 83.6%
Unfunded Actuarial Accrued Liability (UAAL) $ 8,254,168
Annual Covered Payroll $14,189,470
UAAL as a Percentage of Covered Payroll 58.2%
Net Pension Obligation (NPO) at the Beginning of Period $
Annual Pension Cost:
Annual Required Contribution (ARC)
Interest on NPO
Adjustment to the ARC
Total annual pension cost
$ 1,971,084
$ 1,971,084
Contributions Made ( 1,971,084)
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 Obligation
1998 1,699,438 100%
1999 1,827,142 100%
2000 1,971,084 100%
28
Operating revenues
Depreciation
Operating
income (loss)
Operating
transfers in
transfers out
Net income (loss)
Property, plant
and equipment:
Additions
Total Assets
Net working capital
Long-term debt,
including
current portion
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 Drainage Recreation Golf Softball Athletic Arbor
Sewer Fund Utility Fund Classes Course Complex Complex Daze Total
$307,650 $ 3,263,592 $1,010,654 $ 242,722 $724,004 $18,493,846
275 511,655 10,063 186,121 - 1,924,172
40,599 114,917 109,165 ( 134,660) 47,553 760,151
1,497,978 17,033 - 1,515,011
17,033 - 1,633,612
46,955 1,061,431 62,256 (147,701) 56,951 423,478
$12,341,157
1,134,856
277,756
$ 604,067
81,202
304,821
1,584,361 32,218
( 880,916) 224,502
2,554,126 - -
32,300,427 3,608,104 154,736
8,336,164 1,195,035 147,577
4,170,000 1,535,000
Total Equity 25,540,232 2,027,819 147,853
259,604 41,046 - - 2,854,776
11,986,426 2,370,441 4,902,560 228,295 55,550,989
1,412,551 867,566 98,915 227,743 12,285,551
9,584,768 1,720,000 17,009,768
1,931,654 583,218 4,554,918 227,743 35,013,435
29
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 13. CAPITAL LEASES
The City has entered into a lease agreement as lessee for financing the acquisition of
machinery and equipment. This lease agreement qualifies as a capital lease for accounting
purposes and, therefore, has been 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 following is a schedule of the future
minimum lease payments under this capital lease, and the present value of the net
minimum lease payments at September 30, 2001.
2002
Total minimum lease payments
Less: amount representing interest
Present value of future minimum lease payments
$ 10,305
10,305
537
$ 9,768
NOTE 14. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2001, the following individual funds had an excess of expenditures
over appropriations:
DEA Task Force Fund ($ 6,862)
Police Drug Enforcement Fund ($44,046)
Car Rental Tax Fund ($29,971)
NOTE 15. DEFICIT RETAINED EARNINGS
A deficit retained earnings of $500,586 exists in the Athletic Complex Fund.
30
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION
IN TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2001
Actuarial
Valuation
Date
12/31/98
12/31/99
12/31/00
Actuarial
Value of
Assets
$ 35,352,987
37,889,214
42,116,506
Actuarial
Accrued
Liability
$ 42,919,216
46,007,148
50, 370,674
Unfunded
Actuarial
Percentage Accrued
Funded Liability
82.37% $ 7,566,229
82.36% 8,117,934
83.61% 8,254,168
Annual
Covered
Payroll
$ 12,486,300
13, 061, 776
14,189,470
Unfunded Actuarial
Accrued Liability
as a Percentage
of Covered Payroll
60.60%
62.15%
58.17%
31
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.
Fort Worth 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 on new
operating and capital activities specifically for approved crime control and
prevention programs.
Police Department Grant Funds - to account for grant revenues received which
must be used for police salaries and benefits.
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, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
Police Crime
Drug He DEA Control and Police
Hotel/ Enforce- Penny Task Prevention Department Car
Motel ment Sales Tax Force District Grant Rental Tax
Fund Fund Fund Fund Fund Funds Fund
ASSETS
IIAil
Totals
Deposits and Investments $ 215,894 $ 148,081 $ 1,770,842 $ 4,738 $ 471,823 $ 52,418 $ 8,932,351 $ 11,595,745 $ 8,992,937
Accounts receivable 4,802 15,203 1,809,380 1,829,385 2,057,903
Accrued interest receivable 3,153 - - 9,480 39,258 51,871 88,879
Prepaids 250 1,241 150 - 1,641 377
Due from other funds - - - 3,824
Due from other governments 400,534 191,369 591,903 571,884
Total assets $ 219,297 $ 152,883 $ 2,172,417 $ 4,738 $ 872,802 $ 87,819 $ 10,580,989 $ 13,870,545 $ 9,895,384
LIABILMES AND FUND EQUITY
LIABILITIES:
Accounts payable $ 334 $ 12,444 $ 54,047 $ $ 44,872 $ - $ $ 111,897 $ 24,875
Accrued salaries and wages - 13,707 9,987 3,588 27,282 18,5E1
Due to other funds - - - 28,824
Due to other govemments 8,832,224 8,632,224 4,200,047
Total liabilities 334 12,444 87,754 54,859 3,588 8,632,224 8,771,203 4,272,337
FUND EQUITY:
Fund Balances:
Reserve for debt service - - 978,335 978,335 910,588
Reserve for historical preservation 1,323 - - - - - - 1,323 1,32?
Unreserved, undesignated 217,840 140,439 1,128,328 4,738 817,743 84,031 3,948,785 8,119,884 4,511,13E
Total fund equity 218,983 140,439 2,104,883 4,738 817,743 84,031 3,948,765 7,099,342 5,423,047
Total liabilities and fund equity $ 219,297 5 152,883 $ 2,172,417 $ 4,738 $ 872,802 $ 87,819 $ 10,580,989 $ 13,870,545 $ 9,895,384 ,
32
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
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 twt Luuv
Revenues:
Gross receipts tax $ 279,860 S S - $ - $ - $ - $ - $ 279,860 $ 290,910
General sales tax - 2,180,831 - 1,061,437 - 3,242,268 3,459,039
Car rental tax - - - - - - 11,048,696 11,048,696 6,300,071
Interest income 10,033 29,957 63,116 222 17,501 2,768 393,002 536,599 218,552
DEA revenues - 71,457 - - - - 71,457 101,538
Other revenues - 11,965 180,679 192,644 134,439
Total revenues 289,893 101,414 2,263,947 12,187 1,078,938 183,447 11,441,698 15,371,524 10,504,549
Expenditures:
General and administrative 80,440 - 28,197 - - - 7,363,304 7,469,941 4,349,130
Police department - 24,461 - 8,120 355,987 138,585 - 527,153 482,006
Parise - 490,216 - - - 490,216 368,950
Library 381,359 381,359 325,429
Economic development 119,400 119,400 196,888
Debt service
Principal 405,000 405,000 390,000
Interest and fiscal charges 566,205 566,205 592,438
Capital outlay
and maintenance 469,585 151,796 621,381 157,265
Total expenditures 80,440 494,046 1,988,377 8,120 507,783 138,585 7,363,304 10,580,655 6,862,106
Other financing sources (uses):
Operating transfers in - - - - 9,622 - 9,622 13,717
Operating transfers out ( 169,210) ( 9,622) ( 169,913) ( 500,000) - (2,275,451) (3,124,196) (1,497,035)
Total other
financing sources (uses) ( 169,210) ( 9,622) ( 169,913) ( 500,000) 9,622 (2,275,451) (3,114,574) (1,483,318)
Excess (deficiency) of
revenues and other
financing sources
over expenditures and
other financing uses 40,243 ( 402,254) 105,657 4,067 71,155 54,484 1,802,943 1,876,295 2,159,125
Fund balance,
beginning of year
178,720 542,693 1,999,006 671 546,588 9,547 2,145,822 5,423,047 3,263,922
Fund balance, end of year $ 218,963 S 140,439 $ 2,104,663 $ 4,738 $ 617,743 $ 64,031 $3,948,765 $7,099,342 $6,423,047
33
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2001
Hotel/Motel Fund
Variance
Favorable
Actual Budget (Unfavorable)
Actual
Half Penny Sales Tax Fund
Variance
Favorable
Budget (Unfavorable)
Revenues:
Gross receipts tax $ 279,860 $ 300,000 ($ 20,140) $ - $ - $ -
General sales tax - - 2,180,831 2,154,348 26,483
Car rental tax - - - -
Interest income 10,033 8,000 2,033 83,116 60,000 23,116
DEA revenues - - - -
Other revenues
Total revenues 289,893 308,000 ( 18,107) 2,263,947 2,214,348 49,599
Expenditures:
General and administrative 80,440 138,350 57,910 26,197 174,450 148,253
Police department - -
Parks 490,216 513,023 22,807
Library - - 381,359 420,831 39,472
Economic Development 119,400 139,459 20,059
Debt Service Principal - 405,000 405,000
Debt Service Interest 566,205 566,207 2
Capital outlay
and maintenance -
Total expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
80,440 138,350 57,910 1,988,377 2,218,970 230,593
( 169,210) ( 169,210)
Total other
financing sources (uses) ( 169,210) ( 169,210)
Excess (deficiency) of
revenues and other
expenditures and other
financing uses
Fund balance,
beginning of year
Fund balance, end of year
( 169,913) ( 134,913) ( 35,000)
( 169,913) ( 134,913) ( 35,000)
40,243 440 39,803 105,657 ( 139,535) 245,192
178,720 178,720 1,999,006 1,999,006
$ 218,963 $ 179,160 $ 39,803 $ 2,104,663 $ 1,859,471 $ 245,192
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)
$ $ $ $ - $ - $ - $ $ $
1,061,437 1,000,000 61,437
222 - 222 17,501 15,000 2,501 29,957 29,957
- - - 71,457 30,000 41,457
11,965 11,965 -
12,187 12,187 1,078,938 1,015,000 63,938 101,414 30,000 71,414
8,120 1,258 ( 6,862) 355,987 404,109 48,122 24,461 ( 24,461)
8,120 1,258
(
151,796 110,891 ( 40,905) 469,585 450,000 ( 19,585)
6,862) 507,783 515,000 7,217 494,046 450,000 ( 44,046)
( 500,000) ( 500,000)
( 500,000) ( 500,000)
( 9,622) ( 6,338) ( 3,284)
( 9,622) ( 6,338) ( 3,284)
4,067 ( 1,258) 5,325 71,155 71,155 ( 402,254) ( 426,338) 24,084
671 671 546,588 546,588 - 542,693_ _542,693_
$ 4,738 ($ 587) $ 5,325 $ 617,743 $ 546,588 $ 71,155 $ 140,439 $ 116,355 $ 24,084_
35
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2001
Police Department Grant Funds
Variance
Favorable
Actual Budget (Unfavorable)
Actual
(2 of 2)
Car Rental Tax Fund
Variance
Favorable
Budget (Unfavorable)
Revenues:
Gross receipts tax $ $ $ - $ $ $
General sales tax - - -
Car rental tax - 11,048,696 11,000,000 48,696
Interest income 2,768 2,147 621 393,002 225,000 168,002
DEA revenues - - - - - -
Other revenues 180,679 151,724 28,955
Total revenues 183,447 153,871 29,576 11,441,698 11,225,000 216,698
Expenditures:
General and administrative - - 7,363,304 7,333,333 ( 29,971)
Police department 138,585 180,209 21,624 _ _
Parks - -
Library
Economic Development
Debt Service Principal
Debt Service Interest
Capital outlay
and maintenance
Total expenditures
138,585 160,209 21,624 7,363,304 7,333,333 ( 29,971)
Other financing sources (uses):
Operating transfers in 9,622 6,338 3,284
Operating transfers out - -
( 2,275,451) ( 2,275,451)
Total other
financing sources 9,622 6,338 3,284 ( 2,275,451) ( 2,275,451)
Excess of revenues and
and other financing sources over
expenditures and other
financing uses 54,484 54,484 1,802,943 1,616,216 186,727
Fund balance,
beginning of year
Fund balance, end of year
9,547 9,547 2,145,822 2,145,822
$ 64,031 $ 9,547 $ 54,484 $ 3,948,765 $ 3,762,038 $ 186,727
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 improvements to an
existing building which will be utilized as a new Fire Station facility.
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
Park
Improvements Street
Certificates of Street Capital
Obligation Assessments Improvements
Fund (1990) Fund Fund
ASSETS
Deposits and investments $ 7,998 $ 44,970 $ 12,182,719
Accrued interest receivable 8,967
Due from other funds -
Total assets
LIABILITIES AND FUND EQUITY
$ 7,998 $ 44,970 $ 12,191,686
Accounts payable $ $ $ 1,161,544
Escrow Deposits
Total liabilities 1,161,544
Fund Balances:
Reserve for development
agreements
Unreserved, undesignated
Total fund equity
Total liabilities and fund equity
7,998 44,970 11, 030,142
7,998 44,970 11,030,142
$ 7,998 $ 44,970 $ 12,191,686
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 2001 2000
$ 499,612 $ 1,334,664 $ 1,634,975 $ 2,723,049 $ 668,645 $ 19,096,632 $ 17,170,425
11,172 32,705 52,844 96,365
- - - 25,000
$ 510,784 $ 1,367,369 $ 1,634,975 $ 2,723,049 $ 668,645 $ 19,149,476 $ 17,291,790
$ 55,512 $ - $ 117,734 $ 1,279,947 $ $ 2,614,737 $ 1,028,477
- 142 142
55,512 - 117,734 1,280,089 2,614,879 1,028,477
- 1,367,369 - 1,367,369 1,202,657
455,272 1,517,241 1,442,960 668,645 15,167,228 15,060,656
455,272 1,367,369 1,517,241 1,442,960 668,645 16,534,597 16,263,313
$ 510,784 $ 1,367,369 $ 1,634,975 $ 2,723,049 $ 668,645 $ 19,149,476 $ 17,291,790
38
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
Revenues:
Interest income
Other revenue
Total revenues
Expenditures:
General and administrative
Parks/recreation/library
Economic development
Issuance costs
Capital outlay and maintenance
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Proceeds from issuance of bonds
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
Park
Improvements Street
Certificates of Street Capital
Obligation Assessments Improvements
Fund (1990) Fund Fund
$ - $ $ 352,250
Fund balances, beginning of year 7,998
352,250
92,882
4,463,548
4,556,430
( 4,204,180)
9,962,717
296,537
10,259,254
6,055,074
44,970 4,975,068
Fund balances, end of year $ 7,998 $ 44,970 $ 11,030,142
39
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 2001 2000
$ 34,637 $ 65,080 $ 21,159 $ 329,296 $ 3,159 $ 805,581 $ 629,898
118,114 - 118,114 19,869
34,637 183,194 21,159 329,296 3,159 923,695 649,767
344,941
961,857
- 36,423
11,418 104,300 328,100
934,991 18,482 353,811 6,918,913 78,930 12, 768, 675 15, 246, 985
934,991 18,482 365,229 6,918,913 78,930 12,872,975 16,918,306
( 900,354) 164,712 ( 344,070) ( 6,589,617) ( 75,771) ( 11,949,280) ( 16,268,539)
- 1,492,283 - 11,455,000 24,088,891
100,000 369,028 638,802 1,404,367 2,046,867
( 638,803) ( 638,803) ( 616,720)
100,000 1,861,311
(
638,803) 638,802
12,220,564 25,519,038
( 800,354) 164,712 1,517,241 ( 7,228,420) 563,031 271,284 9,250,499
1,255,626 1,202,657 8,671,380 105,614 16,263,313 7,012,814
$ 455,272 $ 1,367,369 $ 1,517,241 $ 1,442,960 $ 668,645 $ 16,534,597 $ 16,263,313
40
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 govemment'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 govemment'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, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
Water and Drainage Recreation
Sewer Utility Classes
ASSETS
Current assets:
Deposits and investments $ 7,299,622 $ 1,168,476 $ 154,405
Accounts receivable and unbilled revenue less allowance
for uncollectibles of $1,463 for water and sewer
and $2,648 for drainage utility 1,869,698 36,986 10
Accrued interest receivable 120,856 8,983
Prepaids and deposits 1,689 45
Inventory 61,738 -
Due from other funds 273,340
Total current assets 9,626,943 1,214,445 154,460
Restricted assets:
Revenue bond debt service:
Cash with paying agent 381,957
Revenue bond emergency:
Short-term investments 500,000
Property sale proceeds account:
Investment with paying agent
Capital projects account:
Cash and cash equivalents 181,992
Short-term investments 2,528,652
Interest receivable on investments
Total restricted assets 3,592,601
Bond issuance cost
Less accumulated amortization
Net bond issuance cost
145,373 107,473
87,611 59,709
57,762 47,764
Utility plant and equipment in service, at cost
Land and building 1,528,966 89,000
Equipment 2,382,159 6,510 1,376
Improvements 184,601 2,706,729
Construction in progress 2,116,529
Waterworks and sanitary sewer system 31,263,055
37,475,310 2,802,239 1,376
Less accumulated depreciation 18,452,189 456,344 1,100
Net utility plant and equipment in service 19,023,121 2,345,895 276
TOTAL ASSETS $ 32,300,427 $ 3,608,104 $ 154,736
41
Golf
Course
Softball
Complex
Athletic
Complex
$ 1,327,263 $ 511,414 $ 99,874
124,048
1,759
17,628
138,516
2,773
88
1,954
45,179
344,000
1,609,214 905,408
116,003
2,684
Arbor
Daze
2001
Totals
$ 226,908 $ 10,787,962
1,387
2,033,515
131,686
22,703
248,117
617,340
102,558 228,295 13,841,323
42,879 14,259
381,957
500,000
181,992
2,528,652
3,592,601
425,987
33,644 11,486 3,990 196,440
82,359 31,393 10,269 229,547
348,135
985,011
10, 525, 950
11, 859, 096
1,564,243
10,294, 853
$ 11,986,426 $
1,369,473 5,197,050
46,211 151,046
57,604
1,473, 288
39,648
5,348,096
558,363
1,433,640 4,789,733
2,370,441 $ 4,902,560
8,532,624
3,572,313
13,474,884
2,116, 529
31, 263, 055
58, 959,405
21,071,887
37, 887, 518
$ 228,295 $ 55,550,989
2000
$ 10,950,378
2,154, 645
167,038
70,179
182,920
648,793
14,173,953
11,894
500,000
356,163
355,428
3,308,733
17,783
4,550,001
425,987
168,788
257,199
8,532,624
3,379,451
13,179, 859
1,066,961
29, 945, 734
56,104,629
19,147,715
36,956,914
$ 55,938,067
(1 of 2)
42
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
LIABILITIES AND FUND EQUITY
Current liabilities:
PayeLle frvin current assets:
Accounts payable
Accrued salaries and wages
Deferred revenue
Total current liabilities
Current obligations payable from
restricted assets:
Customer and escrow deposits
Current portion of bonds payable
Current portion of capital leases payable
Accrued interest
Bonds payable
Capital leases payable
Tax notes payable
Deferred revenue
Due to other funds
Total liabilities
Fund equity:
Contributed capital:
From state
From subdividers
From Special Revenue Fund
From Environmental Protection Agency
From Trinity River Authority
Accumulated depreciation on assets
acquired with contributed capital
Net contributed capital
Retained earnings (deficit):
Reserved for:
Debt service and construction
Recycling
Emergency
Outstanding work
Total reserved
Unreserved
Total retained earnings (deficit)
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
Water and
Sewer
Drainage
Utility
$ 1,118,439 $ 17,094
172,340 2,316
1,290,779 19,410
1,226,806
580,000 130,000
31,137 25,875
3,590,000 1,405, 000
41,473
6,760,195 1,580,285
15,705,558
239,617
15,000
15, 960,175
8,451,559
7,508,616
30,192
31,311
500,000
6,000
56 !, 503
17, 464,113
18, 031,616
25,540,232
$ 32,300,427
Recreation
Classes
$ 6,883
6,883
6,883
2,027,819 147,853
2,027,819 147,853
2,027,819 147,853
$ 3,608,104 $ 154,736
43
Golf
Course
Softball
Complex
$ 65,486 $ 18,109 $
66,643 19,733
64,535
196,664 37,842
235,000 75,000
9,768 -
- 11,889
9,340,000 1,645,000
17,494
273,340
10, 054, 772 1,787,225
405,633
22,097
Athletic
Complex
Arbor
Daze
Totals
2001 2000
1,989 $ 552 $ 1,228,552
1,653 262,685
- 64,535
3,642 552 1,555,772
344,000
347,642
500,000
4,555,504
427,730 5,055,504
427,730 5,055,504
1,503,924
1,503,924
1,931,654
$ 11,986,426
583,216
583,216
583,216
$ 2,370,441
(
4,554,918
$ 4,902,560
( 500,586)
500,586)
1,226, 806
1,020,000
9,768
68,901
15,980,000
58,967
617,340
552 20,537,554
227,743
227,743
227,743
$ 228,295
500,000
15, 705, 558
4,961,137
239,617
37,097
21,443,409
8,451,559
12,991,850
30,192
31,311
500,000
6,000
bfi /,b03
21, 454, 082
22, 021, 585
35,013,435
$ 55,550,989
$ 1,139,746
259,357
90,592
1,489,695
1,165,645
800,000
9,768
68,901
17, 000, 000
16,035
100,000
49,273
648,793
21,348,110
500,000
15,705,558
4,961,137
239,617
37,097
21,443,409
8,030,228
13,413,181
37,718
31,311
500,000
39,405
608,434
20, 568, 342
21,176, 776
34, 589, 957
$ 55,938,067
(2 of 2)
44
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
Water and Drainage Recreation Golf Softball
Sewer Utility Classes Course Complex
Operating revenues:
Waterservice $ 7,361,182 $ $ $ $
Sewer service 3,635,063 -
Drainage fees 604,067 -
Recreation fees - 307,650 -
Service fees and miscellaneous 1,344,912 - 3,263,592 1,010,654
Total operating revenues 12,341,157 604,067 307,650 3,263,592 1,010,654
Operating expenses:
General and administrative 1,321,603
Water production 4,502,134
Water distribution 521,269
Utility engineering 377,846
Sewage collection and treatment 925,325
Nondepartmental 2,275,918
Geographic Information 273,029
Service center 718,660 -
Drainage 212,073 -
Recreation classes - 266,776 -
Golf course - - 1,032,051
Pro Shop 397,362
Food and beverage - 824,150
Conference center 228,379
Cart operations 147,798
Driving range 1,082
Athletic complex - -
Softball complex 889,384
Arbor Daze - - - -
Depreciation 1,134,856 81,202 275 511,655 10,063
Amortization 12,761 5,971 - 6,198 2,042
Total operating expenses 12,063,401 299,246 267,051 3,148,675 901,489
Operating income (loss) 277,756 304,821 40,599 114,917 109,165
Nonoperating revenues (expenses)
Investment income 743,326 58,388 6,356 28,996 21,224
Interest on bonds ( 317,637) ( 106,489) - ( 580,460) ( 85,166)
Total nonoperating revenues (expenses), net 425,889 ( 48,101) 6,356 ( 551,464) ( 63,942)
Income (loss) before operating transfers 703,445 256,720 46,955 ( 436,547) 45,223
Operating transfers in - 1,497,978 17,033
Operating transfers out ( 1,584,361) ( 32,218) - -
Net income (loss) ( 880,916) 224,502 46,955 1,061,431 62,256
Add depreciation on fixed assets
acquired with contributed capital
Increase (decrease) in retained eamings
Retained eamings (deficit), beginning of year
421,331
( 459,585) 224,502 46,955 1,061,431 62,256
18,491,201 1,803,317 100,898 442,493 520,960
Retained earnings (deficit), end of year $ 18,031,616 $ 2,027,819 $ 147,853 $ 1,503,924 $ 583,216
45
Athletic Arbor Totals
Complex Daze 2001 2000
$ $ $ 7,361,182 $ 7,657,132
3,635,063 3,730,338
604,067 610,315
- - 307,650 323,496
242,722 724,004 6,585,884 7,069,135
242,722 724,004 18,493,846 19,390,416
6,978 1,328,581 666,790
4,502,134 3,720,528
521,269 487,390
377,846 337,400
925,325 2,157,998
2,275,918 2,154,479
273,029 210,125
718,660 684,067
212,073 329,422
266,776 287,883
1,032,051 974,179
397,362 403,748
824,150 814,273
228,379 284,339
147,798 146,320
1,082 8,801
183,604 183,604 55,044
889,384 924,338
676,451 676,451 623,588
186,121 1,924,172 1,863,300
679 27,651 27,651
377,382 676,451 17,733,695 17,161,663
( 134,660) 47,553 760,151 2,228,753
3,992 9,398 871,680 806,028
- ( 1,089,752) ( 838,377)
3,992 9,398 ( 218,072) ( 32,349)
( 130,668) 56,951 542,079 2,196,404
1,515,011 222,663
( 17,033) - ( 1,633,612) ( 1,016,877)
( 147,701) 56,951 423,478 1,402,190
421,331 421,331
( 147,701) 56,951 844,809 1,823,521
( 352,885) 170,792 21,176,776 19,353,255
($ 500,586) $ 227,743 $ 22,021,585 $ 21,176,776
46
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation and amortization
(Increase) decrease due to 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
Due to other funds
Customer and escrow deposits
Bond issue costs
Deferred revenue
Total adjustments
Net cash provided by operating activities
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds
Interest paid on tax notes payable
Reduction in bonds payable
Reduction in tax notes payable
Reduction in capital leases payable
Proceeds from issuance of bonds
Operating transfer in
Operating transfer out
Net cash provided by (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 increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Water and Drainage Recreation Golf
Sewer Utility Classes Course
$ 277,756 $ 304,821 $ 40,599 $ 114,917
1,147,617
77,919
16,453
54,311
( 7,298)
119,058
88
61,161
( 7,800)
1,461, 509
1,739,265
87,173
( 3,735)
14,475
228 (
98,141
402,962
( 317,637) ( 106,489)
( 445,000) ( 120,000)
( 1,584,361) ( 32,218)
( 2,346,998) ( 258,707)
( 2,554,126)
( 2,554,126)
1,136,244
799,096
1,935,340
( 1,226,519)
9,090,090
$ 7,863,571
54,446
54,446
198,701
969,775
$ 1,168,476
6,356
50,046
104,359
$ 154,405
275
264
265
2,521
234)
517,853
47,883
12,305)
33,928)
5,302)
1,942
16,453)
( 26,057) ,
3,091 473,633
43,690 588,550
( 580,460)
( 160,000)
( 100,000)
( 16,035)
1,497,978
641,483
( 259,604)
( 259,604)
6,356 29,372
29,372
999,801
327,462
$ 1,327,263
47
Softball Athletic Arbor Totals
Complex Complex Daze 1uui 2000
$ 109,165 ($ 134,660) $ 47,553 $ 760,151 $ 2,228,753
12,105 186,800 1,951, 823 1,890,951
( 1,201) - 121,130 ( 414,814)
15,000 31,453 48,501
5,899 - ( 694) 47,476 ( 12,401)
( 22,982) ( 989) ( 65,197) ( 14,882)
( 12,616) ( 831) - 117,305 532,891
1,215 89 ( 28,498) ( 25,170) 90,755
- ( 15,000) - ( 31,453) ( 41,172)
61,161 13,843
- ( 60,000)
17,494 ( 16,363) 11,661
14,914 170,069 ( 29,192) 2,192,165 2,045,333
124,079 35,409 18,361 2,952,316 4,274,086
( 85,166) - ( 1,089,752) ( 838,131)
- ( 9,168)
( 75,000) ( 800,000) ( 670,000)
( 100,000) ( 290,000)
( 16,035) ( 15,178)
3,445,000
17,033 1,515,011 222,663
( 17,033) ( 1,633,612) ( 1,016,877)
( 143,133) ( 17,033) ( 2,124,388) 828,309
( 41,046)
( 41,046)
( 2,854,776) ( 1,422,980)
( 2,854,776) ( 1,422,980)
- ( 2,514,661)
1,136,244 123,837
22,155 3,992 9,398 924,815 934,919
22,155 3,992 9,398 2,061,059 ( 1,455,905)
( 37,945) 22,368 27,759 34,211 2,223,510
549,359 77,506 199,149 11,317,700 9,094,190
$ 511,414 $ 99,874 $ 226,908 $ 11,351,911 $ 11,317,700
48
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
(1 of 2)
2001 2000
ASSETS
Current assets:
Z:-mp.oilo auuJ investments $ 7,299,622 $ 8,722,768
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 in 2001 and 2000 1,869,698 1,947,617
Accrued interest receivable 120,856 158,843
Prepaids and deposits 1,689 56,000
Inventory 61,738 54,440
Due from other funds 273,340 289,793
Total current assets 9,626,943 11,229,461
Restricted assets:
Revenue bond debt service:
Cash with paying agent 381,957 11,894
Revenue bond emergency:
Short-term investments 500,000 500,000
Property sale proceeds account:
Investments with paying agent 356,163
Capital projects account:
Cash and cash equivalents 181,992 355,428
Short-term investments 2,528,652 3,308,733
Interest receivable on investments - 17,783
Total restricted assets 3,592,601 4,550,001
Bonds issuance cost 145,373 145,373
Less accumulated amortization 87,611 74,850
Net bond issuance cost 57,762 70,523
Utility plant and equipment in service, at cost:
Land and building 1,528,966 1,528,966
Equipment 2,382,159 2,194,922
Improvements 184,601 184,601
Construction in progress 2,116,529 1,066,961
Waterworks and sanitary sewer system 31,263,055 29,945,734
37,475,310 34,921,184
Less accumulated depreciation 18,452,189 17,317,333
Net utility plant and equipment in service 19,023,121 17,603,851
TOTAL ASSETS $ 32,300,427 $ 33,453,836
49
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
(2 of 2)
2001 2000
LIABILITIES AND FUND EQUITY
current I aGiliiies:
P.,.Vc. horn current assets:
Accounts payable $ 1,118,439 $ 999,381
Accrued salaries and wages 172,340 172,252
Total current liabilities 1,290,779 1,171,633
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,226,806 1,165,645
Current portion of bonds payable 580,000 445,000
Accrued interest 31,137 31,137
Bonds payable 3,590,000 4,170,000
Deferred revenue 41,473 49,273
Total liabilities 6,760,195 7,032,688
Fund equity:
Contributed capital:
From subdividers 15,705,558 15,705,558
From Environmental Protection Agency 239,617 239,617
From Trinity River Authority 15,000 15,000
15, 960,175 15, 960,175
Accumulated depreciation on assets
acquired with contributed capital 8,451,559 8,030,228
Net contributed capital 7,508,616 7,929,947
Retained earnings:
Reserved for:
Debt service and construction 30,192 37,718
Recycling 31,311 31,311
Emergency 500,000 500,000
Outstanding work 6,000 39,405
Total reserved 567,503 608,434
Unreserved 17, 464,113 17, 882, 767
Total retained earnings 18,031,616 18,491,201
Total fund equity 25,540,232 26,421,148
TOTAL LIABILITIES AND FUND EQUITY $ 32,300,427 $ 33,453,836
50
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
2001 2000
Operating revenues:
Water service $ 7,361,182 $ 7,657,132
Sewer service 3,635,063 3,730,338
Service fees and miscellaneous 1,344,912 1,463,495
Total operating revenues 12,341,157 12,850,965
Operating expenses:
General and administrative 1,321,603 650,148
Water production 4,502,134 3,720,528
Water distribution 521,269 487,390
Utility engineering 377,846 337,400
Sewage collection and treatment 925,325 2,157,998
Nondepartmental 2,275,918 2,154,479
Geographic information 273,029 210,125
Service center 718,660 684,067
Depreciation 1,134,856 1,081,603
Amortization 12,761 12,761
Total operating expenses 12,063,401 11,496,499
Operating income (loss)
277,756 1,354,466
Nonoperating revenues (expenses)
Investment income 743,326 707,086
Interest on bonds ( 317,637) ( 62,856)
Total nonoperating revenues (expenses), net 425,689 644,230
Income (loss) before operating transfers 703,445 1,998,696
Operating transfers out ( 1,584,361) ( 967,395)
Net income (loss) ( 880,916) 1,031,301
Add depreciation on fixed assets acquired
with contributed capital 421,331 421,331
Increase (decrease) in retained earnings ( 459,585) 1,452,632
Retained earnings, beginning of year 18,491,201 17,038,569
Retained earnings, end of year $ 18,031,616 $ 18,491,201
51
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
(1 of 2)
2001 2000
General and administrative:
Salaries and benefits $ 254,459 $ 257,114
Postage and supplies 54,824 61,614
Maintenance of office machinery 335 176
Bad debts 796,537 -
Other 215,448 331,244
1,321,603 650,148
Water production:
Salaries and benefits 371,393 389,818
Operating supplies and expense 212,470 78,308
Maintenance of structures and equipment 49,650 21,145
Contracts - Trinity River Authority 808,738 171,374
Water - Trinity River Authority 3,059,883 3,059,883
4,502,134 3,720,528
Water distribution:
Salaries and benefits 416,042 364,695
Operating supplies and expenses 31,894 28,735
Maintenance of structures and equipment 73,333 92,110
Sewer - Trinity River Authority 1,850
521,269 487,390
Engineering:
Salaries and benefits 307,854 227,831
Operating supplies and expenses 69,992 109,569
377,846 337,400
Sewage collection and treatment:
Salaries and benefits 283,972 220,010
Operating supplies and expenses 73,084 56,085
Maintenance of structures and equipment 3,405 1,966
Treatment fees - Trinity River Authority 564,864 1,879,937
925,325 2,157,998
Nondepartmental:
Salaries and benefits 521,526 592,781
Operating supplies and expenses 1,121,054 903,302
Contractual services 21,750 21,500
Franchise fees 611,588 636,896
2,275,918 2,154,479
52
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
(2 of 2)
2001 2000
Geographic information:
Salaries and benefits $ 164,765 $ 113,768
Operating supplies and expenses 8,087 6,037
Maintenance of machinery and equipment 99,377 87,530
Contractual services 800 2,790
273,029 210,125
Service center:
Salaries and benefits 278,796 266,690
Motor fuel and supplies 328,375 339,880
Maintenance of structures and equipment 72,995 68,574
Other 38,494 8,923
Depreciation and amortization
Total operating expenses
718,660 684,067
1,147, 617 1,094,364
$ 12,063,401 $ 11,496,499
53
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
2001 2000
OPERATING ACTIVITIES
Operating income $ 277,756 $ 1,354,466
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation anri amortization 1,147,617 1,094,364
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue 77,919 ( 251,837)
Due from other funds 16,453 15,536
Prepaids and deposits 54,311 ( 20,712)
Inventory ( 7,298) ( 6,297)
Increase (decrease) due to net changes in:
Accounts payable 119,058 548,332
Accrued salaries and wages 88 62,473
Customer and escrow deposits 61,161 21,343
Bond issue costs - ( 60,000)
Deferred revenue ( 7,800) ( 7,800)
Total adjustments 1,461,509 1,395,402
Net cash provided by operating activities
1,739,265 2,749,868
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds ( 317,637) ( 62,856)
Reduction in bonds payable ( 445,000) ( 415,000)
Proceeds from bond issuance - 3,260,000
Operating transfers out ( 1,584,361) ( 967,395)
Net cash provided by (used in) noncapital financing activities ( 2,346,998) 1,814,749
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of utility plant and equipment in service
Net cash used in capital and related financing activities
( 2,554,126) ( 1,198,965)
( 2,554,126) ( 1,198,965)
INVESTING ACTIVITIES
(Sale) purchase of investment securities ( 2,514,661)
Proceeds from sale of investment securities 1,136,244 123,837
Interest received on investments 799,096 742,909
Net cash provided by (used in) investing activities 1,935,340 ( 1,647,915)
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
( 1,226,519) 1,717,737
9,090,090 7,372,353
$ 7,863,571 $ 9,090,090
54
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 2001
Capital
Operating Projects
Account Account
ASSETS
Current assets:
D.F...il. ..J investments $ 5,383,042 $
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 1,869,698
Accrued interest receivable 106,099
Prepaids and deposits 639
Inventory -
Due from other funds 273,340
Total current assets 7,632,818
2,971
2,971
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond emergency:
Short-term investments 500,000
Property sale proceeds account:
Investments with paying agent
Capital projects account:
Cash and cash equivalents 181,992
Short-term investments 2,528,652
Total restricted assets 500,000 2,710,644
Bonds issuance cost
Less accumulated amortization
Net bond issuance cost
85,373 60,000
77,611 10,000
7,762 50,000
Utility plant and equipment in service, at cost:
Land and building 1,528,966 -
Equipment 1,644,650 385,658
Improvements 184,601
Construction in progress 2,116,529
Waterworks and sanitary sewer system 29,813,730 1,063,104
33,171,947 3,565,291
Less accumulated depreciation 18,452,189
Net utility plant and equipment in service 14,719,758 3,565,291
TOTAL ASSETS $ 22,860,338 $ 6,328,906
55
(1 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 2001
$ 6,277 $ 1,880,217 $ 30,086 $ $ 7,299,622
- 1,869,698
- 11,786 120,856
1,050 - 1,689
61,738 61,738
- - - 273,340
69,065 1,892,003 30,086 9,626,943
381,957 - 381,957
500,000
- 181,992
- 2,528,652
381,957 - 3,592,601
145,373
- 87,611
57,762
1,528,966
103,765 248,086 2,382,159
- 184,601
2,116, 529
386,221 - 31,263,055
103,765 634,307 - 37,475,310
- 18, 452,189
103,765 634,307 - 19,023,121
$ 381,957 $ 172,830 $ 2,526,310 $ 30,086 $ $ 32,300,427
56
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 2001
LIABILITIES AND FUND EQUITY
Current liabilities:
PdyaLie fioi,i current assets:
Accounts payable
Accrued salaries and wages
Total current liabilities
Capital
Operating Projects
Account Account
$ 795,332 $ 297,166
159,217
954,549 297,166
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,226,806
Current portion of bonds payable 580,000
Accrued interest Bonds payable 3,590,000
Deferred revenue 41,473
Total liabilities 6,392,828 297,166
Fund equity:
Contributed capital:
From subdividers 13,789,751
From Environmental Protection Agency 239,617
From Trinity River Authority 15,000
14, 044, 368
Accumulated depreciation on assets
acquired with contributed capital 8,451,559
Net contributed capital 5,592,809
Retained earnings:
Reserved for:
Debt service and construction
Recycling 31,311
Emergency 500,000
Outstanding work -
Total reserved 531,311
Unreserved 10,343,390 6,031,740
Total retained earnings 10,874,701 6,031,740
Total fund equity 16,467,510 6,031,740
TOTAL LIABILITIES AND FUND EQUITY $ 22,860,338 $ 6,328,906
57
(2 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 2001
$ 25,941 $
13,123
39,064
31,137
31,137 39,064
$ $ $ 1,118,439
172,340
1,290,779
1,226,806
580,000
31,137
3,590,000
41,473
6,760,195
1,915,807 15, 705, 558
239,617
15,000
1,915,807 15, 960,175
8,451,559
1,915,807 7,508,616
30,192 30,192
31,311
500,000
6,000 6,000
30,192 6,000 - 567,503
320,628 127,766 2,526,310 30,086 ( 1,915,807) 17,464,113
350,820 133,766 2,526,310 30,086 ( 1,915,807) 18,031,616
350,820 133,766 2,526,310 30,086 25,540,232
$ 381,957 $ 172,830 $ 2,526,310 $ 30,086 $ $ 32,300,427
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 2001
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)
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
Retained earnings, end of year
421,331
763, 052)
14, 897, 752
$ 14,134, 700
(
Operating
Account
$ 7,361,182 $
3,635,063
910,252
11, 906, 497
419,039
4,502,134
521,269
377,846
925,325
2,275,918
273,029
Capital
Projects
Account
38,500
Bond
Reserve
Account
$
1,134, 856
7,761 5,000
10,437,177 43,500
1,469,320 ( 43,500)
442,992 163,849 11,167
442,992 163,849 11,167
1,912,312 120,349 11,167
445,000 725,000 -
( 3,541,695)
( 1,184, 383) 845,349 11,167
845,349 11,167
1,926,392 339,653
$ 2,771,741 $ 350,820
59
Service Impact Debt Year Ended
Center Fees Service September 30,
Account Account Account Eliminations 2001
$ - $ $ - $ $ 7,361,182
3,635,063
434,660 - 1,344,912
434,660 12,341,157
862,281 1,783 1,321,603
4,502,134
521,269
377,846
925,325
2,275,918
273,029
718,660 - 718,660
1,134,856
12,761
718,660 862,281 1,783 12,063,401
( 718,660) ( 427,621) ( 1,783) 277,756
161 124,683 474
( 317,637)
161 124,683 ( 317,163)
( 718,499) ( 302,938) ( 318,946)
(
743,326
317,637)
425,689
703,445
716,709 764,637 ( 2,651,346)
( 249,012) ( 445,000) 2,651,346 ( 1,584,361)
( 1,790) ( 551,950) 691 ( 880,916)
421,331
( 1,790) ( 551,950) 691 ( 459,585)
135,556 3,078,260 29,395 ( 1,915,807) 18,491,201
$ 133,766 $ 2,526,310 $ 30,086 ($ 1,915,807) $ 18,031,616
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 2001
ASSETS
Uurrent assets:
G.r..o.la a,,J investments
Accounts and unbilled revenue
less allowance for uncollectibles of
$2,648 for drainage utility
Accrued interest receivable
Total current assets
Bond issuance cost
Less accumulated amortization
Net bond issuance cost
Utility plant and equipment
in service, at cost:
Land
Equipment
Improvements
Less accumulated depreciation
Net utility plant and equipment in service
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
Current liabilities:
NayaLle
Accrued salaries and wages
Total current liabilities
Current portion of bonds payable
Accrued interest
Bonds payable
Total liabilities
Retained earnings:
Reserved for debt service
Unreserved
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
Operating
Account
Construction
in Progress
Total
September 30,
2001
$ 808,919 $ 359,557 $ 1,168,476
36,986 36,986
8,983 8,983
854,888 359,557 1,214,445
107,473 107,473
59,709 - 59,709
47,764 - 47,764
89,000
6,510
2,706,729
2,802,239
456,344
89,000
6,510
2,706,729
2,802,239
456,344
2,345,895 2,345,895
$ 3,248,547 $ 359,557 $ 3,608,104
$ 17,094 $
2,316
19,410
130,000
25,875
1,405,000
1,580,285
231,119
1,437,143
1,668,262
$ 3,248,547
359,557
359,557
$ 359,557
$ 17,094
2,316
19,410
130,000
25,875
1,405,000
1,580,285
231,119
1,796,700
2,027,819
$ 3,608,104
61
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 2001
Operating revenues:
Drainage fees
Total operating revenues
Year Ended
Operating Construction Elimi- September 30,
Account in Progress nations 2001
$ 604,067 $ $ - $ 604,067
604,067 604,067
Operating expenses:
Drainage 212,073 212,073
Depreciation 81,202 81,202
Amortization 5,971 5,971
Total operating expenses
Operating income
Nonoperating revenues (expenses):
Investment income
Interest on bonds
Total nonoperating revenues
(expenses), net
299,246 299,246
304,821 304,821
41,066
( 106,489)
17,322 58,388
( 106,489)
( 65,423) 17,322
Income before
operating transfers 239,398
Operating transfers out ( 32,218)
Increase in
retained earnings 207,180 17,322 224,502
Retained earnings, beginning of year 1,461,082 342,235 1,803,317
Retained earnings, end of year $ 1,668,262 $ 359,557 $ $ 2,027,819
(
48,101)
17,322 256,720
32,218)
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 govemment and to other govemment units, on a
cost reimbursement basis.
Equipment Replacement Fund - to account for the accumulation of funds planned
to be used in replacing existing equipment. Funding is provided annually by the
user departments.
Insurance Fund - to account for the revenue and expenses resulting from
providing health insurance to the City's employees.
Risk Management Fund - to account for the revenue and expenses applicable to
the self-insurance program for worker's compensation and for general liability and
property claims.
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, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
ASSETS
Deposits and investments
Accrued interest receivable
Total current assets
Utility plant and equipment,
at cost
Equipment
Improvements
Less accumulated depreciation
Net utility plant and
equipment in service
TOTAL ASSETS
LIABILITIES AND
RETAINED EARNINGS
Accounts payable
Accrued salary and wages
Accrued insurance
claims
Total current liabilities
Retained earnings:
Reserved:
Insurance
Workers' compensation
Risk management
Total reserved
Unreserved
Total retained earnings
TOTAL LIABILITIES AND
RETAINED EARNINGS
Equipment
Replacement
Fund
$ 718,822
Insurance
Fund
Risk
Manage-
ment
Fund
Cash and
Debt
Manage-
ment Fund
11.101
Total
2000
$ 395,780 $ 520,169 $ 11,008 $ 1,645,779 $ 1,414,819
11,172 6,493 - 17,665 21,115
718,822 406,952 526,662
2,942,697
40,390
1,983,Uti!
1,594,195
54,735
b4,/3t
1,388,892 54,735
$ 2,107,714 $ 461,687
$ 2,160 $ 64,550
10,612
76,281
2,160 151,443
2,105, 554
41,000
41,000
269,244
11,245
11,145
11,008
NO
1,663,444
3,008,677
40,390
3,04,0b/
1,594,195
1,435, 934
2,695,069
40,390
-1, / 35,459
1,251,648
11,245 - 1,454,872 1,483,811
$ 537,907 $ 11,008 $ 3,118,316 $ 2,919,745
$ 23,764 $ -
4,697 11,008
$ 90,474 $ 14,833
26,317 18,712
76,281 60,522
28,461 11,008 193,072 94,067
200,000
200,000
4uu,uuu
109,446
2,105,554 310,244 509,446
$ 2,107,714 $ 461,687
41,000 41,000
200,000 200,000
200,000 200,000
441,000- --441,000
2,484,244 2,384,678
2,925,244 2,825,678
$ 537,907 $ 11,008 $ 3,118,316 $ 2,919,745
63
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000
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 2001 2000
$ - $ 1,608,350 $ 307,762 $ $ 1,916,112 $ 1,873,541
419,560 86,558 506,118 478,755
419,560 1,608,350 307,762 86,558 2,422,230 2,352,296
Operating expenses:
General and
administrative 28,317 93,482 441,211 80,041 643,051 626,577
Insurance costs - 1,721,124 299,759 2,020,883 1,705,023
Depreciation 481,958 481,958 355,210
Total operating expenses 510,275 1,814,606 740,970 80,041 3,145,892 2,686,810
Operating income (loss) ( 90,715) ( 206,256) ( 433,208) 6,517 ( 723,662) ( 334,514)
Non -operating revenues:
Investment income 31,640 23,998 36,601 92,239 78,256
Gain on sale of
fixed assets 27,893 27,893 38,891
Total nonoperating
revenues 59,533 23,998 36,601 120,132 117,147
Income (loss) before
operating transfers ( 31,182) ( 182,258) ( 396,607) 6,517 ( 603,530) ( 217,367)
Operating transfers in 289,083 175,000 320,000 784,083 495,000
Operating transfers out ( 39,470) ( 41,517) ( 80,987) ( 105,092)
Net income (loss) 257,901 ( 46,728) ( 118,124) 6,517 99,566 172,541
Retained Earnings,
beginning of Year 1,847,653 356,972 627,570 ( 6,517) 2,825,678 2,653,137
Retained Earnings,
end of Year $2,105,554 $ 310,244 $ 509,446 $ - $ 2,925,244 $ 2,825,678
64
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2001
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2000
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Management Total
Fund Fund Fund Fund 2001 2000
OPERATING ACTIVITIES
Operating income (loss) ($ 90,715) ($ 206,256) ($ 433,208) $ 6,517 ($ 723,662) ($ 334,514)
Adjustments to reconcile operating
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation expense 481,958 481,958 355,210
Gain on sale of fixed assets 27,893 27,893
(Increase) decrease due to net
changes in:
Receivables - 19,074
Increase (decrease) due to net
changes in:
Accounts payable ( 370) 54,500 21,511 - 75,641 ( 6,470)
Accrued salaries and wages 3,585 1,169 2,851 7,605 ( 4,913)
Accrued insurance claims 58,068 ( 42,309) - 15,759 ( 67,131)
Total adjustments 509,481 116,153 ( 19,629) 2,851 608,856 295,770
Net cash provided by (used in)
operating activities 418,766 ( 90,103) ( 452,837) 9,368 ( 114,806) ( 38,744)
NONCAPITAL FINANCING
ACTIVITIES
Operating transfers in 289,083 175,000 320,000 - 784,083 495,000
Operating transfers out ( 39,470) ( 41,517) - ( 80,987) ( 105,092)
Net cash provided by
noncapital financing activities
CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of equipment
Sale of equipment
Net cash used in capital and
related financing activities
INVESTING ACTIVITIES
Interest received on
investments
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents,
beginning of year
289,083 135,530 278,483 703,096 389,908
( 453,019) ( 453,019) ( 633,744)
76,415
( 453,019) - ( 453,019) ( 557,329)
38,314 20,869 36,506 95,689 76,842
293,144 66,296 ( 137,848) 9,368 230,960 ( 129,323)
425,678 329,484 658,017 1,640 1,414,819 1,544,142
Cash and cash equivalents,
end of year
$ 718,822 $ 395,780 $ 520,169 $ 11,008 $ 1,645,779 $ 1,414,819
65
AGENCY FUNDS
Agency funds are used to account for assets held by the govemment as an agent for
individuals, private organizations, other govemments 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, 2001
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000
DEA
Stars Task
Center Force Total
Escrow Fund 2001 2000
Assets:
Deposits and investments $ 2,100,304
Total assets $ 2,100,304
$ 45,197 $ 2,145,501
$ 45,197 $ 2,145, 501
$ 2,003,656
$ 2,003,656
Liabilities:
Due to other entities $ 2,100,304 $ $ 2,100,304 $ 1,995,068
Due to other
govemments 45,197 45,197 8,588
Total liabilities $ 2,100,304 $ 45,197 $ 2,145,501 $ 2,003,656
66
CITY OF EULESS, TEXAS
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED SEPTEMBER 30, 2001
STARS CENTER ESCROW
Assets:
Investments at market
Balance Balance
September 30, September 30,
2000 Additions Deletions 2001
$ 1,995,068 $ 105,236 $ $ 2,100,304
Liabilities:
Due to other
entities $ 1,995,068 $ 105,236 $ $ 2,100,304
DEA TASK FORCE FUND:
Assets:
Deposits and investments
$ 8,588 $ 109,682 $ 73,073 $ 45,197
Liabilities:
Due to other
govemments $ 8,588 $ 109,682 $ 73,073 $ 45,197
Total assets $ 2,003,656 $ 214,918 $ 73,073 $ 2,145,501
Total liabilities $ 2,003,656 $ 214,918 $ 73,073 $ 2,145,501
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, 2001 AND 2000
2001 2000
General fixed assets:
Land $ 5,206,274 $ 4,776,274
Buildings 18,641,889 18,187,761
Improvements other than buildings 4,665,996 4,273,166
Construction in progress 11,579,624 3,845,482
Machinery and equipment 8,630,977 8,228,047
Total general fixed assets $ 48,724,760 $ 39,310,730
Investment in general fixed assets by source:
General fund $ 8,723,315 $ 8,178,645
Special revenue funds 6,933,139 6,323,031
Capital projects funds 33,068,306 24,809,054
Total investment in general fixed assets $ 48,724,760 $ 39,310,730
68
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2001
Function
and Activity
General govemment
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
Total General Fixed Assets
Land Buildings
$ 3,027,451 $ 2,876,293
234,325 1,315,968
1,944,498 14,449,628
11,579,624
$ 5,206,274 $ 30,221,513
Improvements
Other than
Buildings
$ 2,443,314
36,758
2,185,924
Machinery
and
Equipment
$ 3,586,980
3,734,844
974,803
334,350
$ 4,665,996 $ 8,630,977
Total
$ 11,934,038
5,321,895
19,554,853
334,350
11,579,624
$ 48,724,760
69
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 2001
Function
and Activity
General govemment
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
General Fixed
Assets
September 30,
2000
$ 11,389,368
5,161,787
18, 579, 743
334,350
3,845,482
$ 39,310,730
Additions
and Transfers
$ 544,670
160,108
975,110
7,734,142
General Fixed
Assets
September 30,
Deletions 2001
$ $ 11,934,038
5,321,895
19, 554, 853
334,350
11,579,624
$ 9,414,030 $ $ 48,724,760
70
STATISTICAL SECTION
(Unaudited)
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
General
Govern-
ment
$ 2,020,872
2,054,992
2,160,916
2,193,512
2,409,115
2,591,776
2,951,730
3,112,014
3,259,704
3,483,706
Public Culture- Debt
Safety Streets Recreation Service Other
$ 5,616,915 $ 454,150 $ 1,348,652 $ 1,617,947 $ 946,839
5,968,815 487,759 1,397,600 1,683,671 965,820
6,595,803 526,136 1,514,311 1,640,120 1,041,424
6,708,056 575,608 1,430,955 1,650,196 1,085,690
7,445,910 619,098 1,527,718 1,658,291 1,833,982
8,187,576 639,906 1,781,630 2,145,300 2,495,872
9,028,711 699,140 1,995,717 2,002,940 1,454,830
9,455,787 815,687 2,060,029 2,319,044 1,896,288
9,880,516 746,976 2,311,089 2,199,194 1,408,673
10,622,716 734,672 2,406,417 4,379,893 1,800,781
Note: Includes General Fund and Debt Service Fund.
Table 1
Total
$ 12,005,375
12, 558,657
13, 478, 710
13,644,017
15, 494,114
17, 842, 060
18,133, 068
19, 658, 849
19, 806,152
23, 428,185
71
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
' Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Taxes
$ 9,550,034
10, 274, 743
10, 847, 785
11, 362, 414
12, 049, 604
12, 733, 372
13,187,156
13, 800,144
15, 255, 770
16,286,212
Licenses Inter -
and govern -
Permits mental
$ 210,525 $ 46,405
312,660 54,797
364,617 227,464
420,624 50,912
459,553 84,447
530,525 192,742
396,811 258,663
448,751 557,246
550,356 602,417
511,625 413,617
Note: Includes General Fund and Debt Service Fund.
Interest
Charges Income
for Fines and Other
Service and Fees Revenues
$ 64,601 $ 1,291,629 $ 448,765
59,042 1,353,196 413,151
81,311 1,592,194 420,641
88,036 1,941,505 916,167
102,669 2,233,554 1,087,365
89,102 2,337,343 1,268,495
93,175 2,671,187 1,262,289
101,705 3,349,742 580,572
102,096 3,452,010 1,354,752
104,922 3,145,608 1,741,423
Table 2
Total
$ 11,611,959
12,467, 589
13, 534, 012
14,779,658
16, 017,192
17,151, 579
17, 869, 281
18, 838,160
21, 317, 401
22, 203, 407
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
1992 $ 5,889,411 $ 5,765,733 97.90% $ 147,498 $ 5,913,231 100.40% $ 577,695 9.81%
1993 5,943,537 5,880,688 98.94% 73,853 5,954,541 100.19% 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%
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 •
1992 $ 872,811,737
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
Source: Tarrant Appraisal District
Real Property
Estimated
Actual
Value
$ 872,811,737
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
Personal Property
Assessed
Value
$ 127,990,604
137,913,007
147,978,520
166,784,893
172,885,117
185,673,796
182,729,883
197,169,731
194,966,019
373,564,221
Table 4
Ratio of
Total
Assessed
Total to
Estimated
Actual Assessed Actual Actual
Value Value Value Value
$ 127,990,604 $ 1,000,802,341 $ 1,000,802,341 100%
137,913,007 973,124,182 973,124,182 100%
147,978,520 966,309,286 966,309,286 100%
166,784,893 1,075,545,880 1,075,545,880 100%
172,885,117 1,128,577,421 1,128,577,421 100%
185,673,796 1,195,670,856 1,195,670,856 100%
182,729,883 1,276,624,604 1,276,624,604 100%
197,169,731 1,395,531,318 1,395,531,318 100%
194,966,019 1,502,103,918 1,502,103,918 100%
373,564,221 1,807,343,705 1,807,343,705 100%
74
CITY OF EULESS, TEXAS
PROPERTY TAX RATES
ALL DIRECT AND OVERLAPPING GOVERNMENTS
PER $100 OF ASSESSED VALUE
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
City (1)
1992 0.5685000%
1993 0.5985637%
1994 0.6186170%
1995 0.6160000%
1996 0.6060000%
1997 0.5449800%
1998 0.5247540%
1999 0.5147540%
2000 0.5147540%
2001 0.5147540%
School (2) County (3)
1.3200% 0.236800%
1.5050% 0.277100%
1.5150% 0.271880%
1.5350% 0.271870%
1.5345%
1.6063%
1.6063%
1.6063%
1.6775%
1.6530%
0.266603%
0.264000%
0.264836%
0.264836%
0.274785%
0.274785%
Hospital (3)
0.205800%
0.229100%
0.242100%
0.244640%
0.239840%
0.234070%
0.234070%
0.234070%
0.234070%
0.234070%
Table 5
Junior
College (3) Total
0.038400% 2.3695000%
0.043292%
0.046710%
0.056510%
0.055460%
0.057690%
0.106400%
0.106400%
0.106410%
0.106410%
2.6530557%
2.6943070%
2.7240200%
2.7023630%
2.7069970%
2.7363170%
2.7263600%
2.8075190%
2.7830190%
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
1992 38,760 $ 1,000,802,341 $ 11,281,740 1.13% 291
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 13,366,586 1.18% 327
1997 41,300 1,195,670,856 12,026,586 1.01% 291
1998 42,900 1,276,624,804 16,081,586 1.26% 375
1999 44,700 1,395,531,318 13,541,893 0.97% 303
2000 45,500 1,502,103,918 24,947,457 1.66% 548
2001 46,166 1, 807, 343, 705 35, 381, 898 1.96% 766
(1) Estimates by North Central Texas Council of Govemments 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 $10,190,000 for the year ended 2001.
76
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2001
(Unaudited)
Table 7
Percentage Amount
Applicable Applicable
Net Debt to City to City
Jurisdiction Outstanding of Euless of Euless
City of Euless $ 35,381,898 100.00% $35,381,898
Grapevine-Colleyville Independent
School District 264,549,147 2.12% 5,608,442
Hurst -Euless -Bedford Independent
School District 247,128,588 26.79% 66,205,749
Tarrant County 115,240,000 2.72% 3,134,528
Tarrant County Hospital County 7,660,000 2.72% 208,352
Tarrant County College District 83,940,968 2.72% 2,283,194
Total direct and overlapping debt $753,900,601 $112,822,163
Ratio of direct and overlapping
bonded debt to taxable assessed
valuation 6.24%
Per capita direct and overlapping
bonded debt $2,444
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
1992 $ 765,000 $ 852,947 $ 1,617,947 $ 12,005,375 13.48%
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, 658, 849 11.81%
2000 1,022,790 1,178,392 2,201,182 19,806,152 11.11%
2001 1,179,277 3,200,616 4,379,893 23,428,185 18.69%
78
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Gross
Revenue
(1)
$ 8,342,993
9,615,195
9,278,791
9,348,238
10, 579, 366
10,605,353
11,830,802
11,909,011
13,558,051
13,084,483
Direct
Operating
Expenses
(2) & (3)
$ 7,127,092
7,391,235
7,359,988
7,588,129
8,177,311
8,014,504
9,780,792
9,288,622
9,765,239
10,915,784
Net
Revenue
Available
for Debt
Services
$ 1,215,901
2,223,960
1,918,803
1,760,109
2,402,055
2,590,849
2,050,010
2,620,389
3,792,812
2,168,699
Table 9
Interest
and
Fiscal Coverage
Principal Charges Total Ratio
$ 335,000 $ 199,341 $ 534,341 2.28
305,000 185,808 490,808 4.53
325,000 199,875 524,875 3.66
335,000 183,430 518,430 3.40
365,000 170,205 535,205 4.49
370,000 151,480 521,480 4.97
395,000 128,040 523,040 3.92
385,000 107,325 492,325 5.32
415,000 62,856 477,856 7.94
445,000 317,637 762,637 2.84
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 EIGHT FISCAL YEARS
(Unaudited)
Table 10
Net
Direct Revenue Interest
Gross Operating Available and
Fiscal Revenue Expenses - for Debt Fiscal Coverage
Year (1) (2) Services Principal Charges Total Ratio
1993 $ 371,241 $ 65,326 $ 305,915 $ 25,000 $ 142,552 $ 167,552 1.83
1994 367,912 98,796 269,116 25,000 129,360 154,360 1.74
1995 345,524 101,286 244,238 25,000 128,093 153,093 1.60
1996 563,004 52,876 510,128 25,000 126,791 151,791 3.36
1997 587,892 66,624 521,268 30,000 125,419 155,419 3.35
1998 611,585 87,641 523,944 100,000 124,082 224,082 2.34
1999 621,586 195,397 426,189 105,000 118,433 223,433 1.91
2000 662,132 329,422 332,710 110,000 112,343 222,343 1.50
2001 662,455 212,073 450,382 120,000 108,652 228,652 1.97
Note: The Drainage Utility Fund had no outstanding debt or debt
service prior to 1992.
(1) Includes operating revenue and interest eamed on investments.
(2) Total operating expenses exclusive of depreciation and amortization.
80
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)
1992 38,760 $ 20,293 18,720 7.4%
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 23,743 19,500 2.1%
2000 45,500 23,762 19,500 2.2%
2001 46,166 26,754 19,500 4.5%
Notes: 1. Estimates by North Central Texas Council of Governments as
adjusted for 2000 census data.
2. Estimates by City Economic Development
and Southwest Statistical Data
3. Hurst -Euless -Bedford Independent School District
4. Texas Workforce Commission
81
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2001
(Unaudited)
Table 12
2001 Percentage
Assessed of Total
Type of Valuation Assessed
Taxpayer Business (1) Valuation
Southwestern Bell Telephone Company Telephone Utility $ 50,036,810 2.77%
Hertz Rent A Car Car rental 45,816,078 2.54%
National Rental Systems Inc Car Rental 43,368,908 2.40%
Avis Rent A Car Car Rental 37,977,230 2.11 %
Bear Creek Apartments, Inc. Apartments 31,526,719 1.75%
Somerset Village Partners, LP Apartments 31,013,586 1.72%
Saluda Apartments, L.P. Apartments 28,689,759 1.59%
Southwest Properties Apartments 26,115,780 1.45%
Budget Rent A Car Car Rental 20,235,256 1.12%
TU Electric Electric Utility 20,227,350 1.12%
$ 335,007,476 18.57%
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
1992 $ 1,000,820,341 276 $ 16,126,487
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
Notes: 1. City Records
2. Tarrant Appraisal District
83
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2001
(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 2001 was established at $.514754 per $100 of assessed
valuation on 100% of appraised value.
84
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2001
(Unaudited)
Table 15
(1 of 2)
Date of incorporation February 24, 1953
Date of Adoption of Charter July 21, 1962
Form of govemment 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 3
Ampitheater 2
Conference center 1
Golf course 1
Athletic fields 24
Ice Rinks 2
Library materials:
Books
Other media
81,461
9,329
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
85
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2001
(Unaudited)
Table 15
(2 of 2)
City Water and Sewer Service:
Water Service:
Number of Customers 22,056
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 14,087,000
Average daily consumption 7,551,000
Water mains 165 miles
Fire hydrants 1,215
Sewer Service:
Average daily flow of wastewater 4,087,602
Number of customers 21,537
Sewer mains 143 miles
Streets:
Improved 165 miles
State highways 17.2 miles
86
f