HomeMy WebLinkAboutFY 2000 Comprehensive Annual Financial ReportCITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2000
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
1
3-6
Combined statement of revenues, expenditures
and changes in fund balances - all governmental fund types 7 - 8
Combined statement of revenues, expenditures
and changes in fund balances - budget and
actual - general and special revenue funds
Combined statement of revenues, expenses and
changes in retained earnings - all proprietary fund types
Combined statement of cash flows - all proprietary fund types
Notes to general purpose financial statements
Required Supplementary Information:
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System
Individual Fund and Account Group Statements and Schedules
Special Revenue Funds
Combining balance sheet
9-10
11
12-13
14-32
33
34
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2000
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)
35
Statement of revenues, expenditures and
changes in fund balances - budget and actual 36 - 38
Capital Project Funds
Combining balance sheet 39 - 40
Combining statement of revenues,
expenditures and changes in fund balances 41 - 42
Enterprise Funds
Combining balance sheet 43 - 46
Combining statement of revenues, expenses
and changes in retained earnings 47 - 48
Combining statement of cash flows 49 - 50
Water and sewer fund --comparative balance sheets 51 - 52
Water and sewer fund --comparative statements
of revenues, expenses, and changes in retained earnings 53
Water and sewer fund --comparative schedule of operating expenses 54 - 55
Water and sewer fund --comparative statements of cash flows 56
Water and sewer fund --aggregating schedule of balance sheet accounts 57 - 60
Water and sewer fund --aggregating schedule of revenues,
expenses and changes in retained earnings accounts 61 - 62
Drainage utility funds --aggregating
schedule of balance sheet accounts 63
Drainage utility funds --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts
64
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2000
TABLE OF CONTENTS - Continued
Page(s)
Individual Fund and Account Group Statements and Schedules - continued
Internal Service Funds
Combining balance sheet 65
Combining statement of revenues, expenses
and changes in retained earnings 66
Combining statement of cash flows 67
Agency Funds
Combining balance sheet 68
Statements of changes in assets and liabilities 69
General Fixed Assets Account Group
Comparative schedule of general fixed assets - by source 70
Schedule of general fixed assets by function and activity 71
Schedule of changes in general fixed assets by function and activity 72
Table Page(s)
STATISTICAL SECTION (Unaudited)
General governmental expenditures by function 1 73
General governmental revenues by source 2 74
Property tax levies and collections 3 75
Assessed and estimated actual value of taxable property 4 76
Property tax rates - all direct and overlapping
governments per $100 of assessed value 5 77
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 6 78
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2000
TABLE OF CONTENTS - Continued
Table Page(s)
STATISTICAL SECTION (Unaudited) - continued
Computation of direct and overlapping debt 7 79
Ratio of annual debt service expenditures for
net general bonded debt to total general expenditures 8 80
Schedule of revenue bond coverage -
Water and Sewer Bonds 9 81
Schedule of revenue bond coverage -
Drainage Utility Bonds 10 82
Demographic statistics 11 83
Principal taxpayers 12 84
Property value and construction 13 85
Computation of legal debt margin 14 86
Miscellaneous statistics 15 87 - 88
INTRODUCTORY SECTION
January 9, 2001
THE CITY OF
EULESS
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, 2000. Responsibility for both the accuracy of the data and the completeness and
fairness of the presentation, including all disclosures, rests with the City. To the best of
our knowledge and belief, the enclosed data is accurate in all material respects and is
reported in a manner designed to present fairly the financial position, results of
operations, and cash flows of the various funds and account groups of the City. All
disclosures necessary to enable the reader to gain an understanding of the City's
financial activities have been included.
The Comprehensive Annual Financial Report is presented in three sections:
Introductory, Financial and Statistical. The Introductory section includes this transmittal
letter, the City's organizational chart and a list of principal officials. The financial section
includes the general purpose financial statements and supplemental statements and
schedules, as well as the report of independent auditors. The Statistical section includes
selected financial and demographic information, generally presented on a multi -year
basis.
GENERAL INFORMATION
Euless was settled about 1881 and named for Elisha Adams Euless, a cotton farmer and
pioneer. In 1915 the population was 25 and in 1960, 4,235. Euless has changed
significantly from a rural farming community to a progressive urban area of approximately
45,500. 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 traffic
control. Internal services of the City include insurance, risk management, equipment
replacement, and cash/debt management.
201 N. Ector Drive, Euless, Texas 76039-3595
817/685-1400 • Metro 817/267-4403 • Fax 817/685-1416
All funds and account groups are discussed in depth in the notes to the financial
statements. Even though associations with other entities such as Hurst -Euless -Bedford
Independent School District exist, the City Council has no financial accountability, or
control over the school district or the other entities referred to in Note 1 of the financial
statements. Accordingly, financial data for the school district and others are not included
in the combined financial statements in this report. The Euless Development
Corporation, established in Fiscal Year 93 and the Crime Control and Prevention District
established in Fiscal Year 96 are presented as blended component units of the City of
Euless.
ECONOMIC CONDITIONS AND OUTLOOK
Our City Manager commented on the achievements of the City in his "Share The Vision"
message to the staff. He observed that 2000 was an "incredible" year with "so many
accompiishments and so many successes throughout our City." He noted the list of
achievements from the different departments including the opening of the Dr. Pepper Star
Center in April; construction of additional fields at the Parks of Texas Star; construction of
the new Police and Courts Facility; recognition of the Golf Course at Texas Star as a
" * " course from Golf Digest; and the status of construction of both the Harwood
Road and Mid -Cities Boulevard projects. The City Manager also recognized future
economic opportunities for Euless including the construction of a Super Target and other
pad sites at Glade Road and Highway 121.
In 2000, Euless welcomed the Car Rental Center at DFW Airport and the Dickerson
Development project, which will bring 145 new homes to Euless. Also announced in
2000 was the construction of Krispy Kreme Doughnuts in the International Business Park,
expansion of Tru-Form Optics to Euless, and the lease of vacant City property to Beall
Concrete.
MAJOR INITIATIVES
Budget. During preparation of the 2000 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;
absorption of legislative mandates; and continuation of City Council directives, including
repair and/or replacing deteriorating infrastructures; identifying alternative sources of
funds; and improving external and internal communications.
Progress Report. Fiscally, the year 2000 has proven successful. City Council
members decreased the property tax rate by one cent to .514754 per $100 valuation.
Due to a pass through increase, water rates increased eleven cents per 1,000 gallons.
Sewer, trash, drainage, and recycling rates remained unchanged. Furthermore, a merit -
based raise package, as well as no increases in the employees' costs for health care was
achieved. These benefits were made possible through additional contributions from the
City's Water and Sewer Fund and Risk Management Workers Compensation Fund.
ii
Individual and departmental successes have improved city services and enhanced
growth in our community. Among the many accomplishments during 2000:
• Presented and sold bonds for Dr. Pepper Star Center, Police and Court Facility,
Harwood Road, and the new Water Tower
• Negotiated and implemented an interlocal agreement with the State of Texas for
collection of the new short-term motor vehicle tax
1> Completed the City Multi Year Financial Plan
« Parks at Texas Star was voted Best Youth Park
• Parks at Texas Star was chosen by Dallas 2012 Committee as a venue finalist for
Women's Softball Olympic event
• Raven's Grille won Top of the Taste award for best display at the Taste of Northeast
• Three youth soccer fields and one youth tee -ball field were added to the Parks at
Texas Star
• Fire Department became an American Heart Association Training affiliate
1> Softball World hosted 12 major events in 2000 including two world championships,
one national championship, four state championships, and four national invitationals
• Himes Log Cabin was donated to the City, moved to Heritage Park and restored to its
original condition
• Planning and Development received a Certificate of Achievement for Planning
Excellence from the American Planning Association Texas Chapter
• Created a Non -Resident Property Maintenance Code
1> Voters approved the continuation of the 1/4 cent Crime Control and Prevention District
Tax for an additional 20 years
• Library opened a drive -up window and began the "Family Storytime" program
• Library received telecommunication grant for computer hardware and software
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.
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.
iii
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 accompanying Notes to the Financial
Statements.
General Governmental Functions. Revenues for general governmental functions
accounted for in the general fund and debt service fund totaled $21,317,401 in 2000, an
increase of 13.16% over 1999. The increase in revenues is primarily attributable to:
increased sales tax receipts, property tax receipts, building permits, interest income, and
the sale of property. 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
$7,208,237 33.81%
2,364,097 11.09%
5,785,532 27.14%
3,452,010 16.20%
550,356 2.58%
665,587 3.12%
1,291,582 6.06%
$21,317,401 100%
Increase
(decrease)
from 1999
$408,858
54,905
992,254
102,268
101,605
300,560
518,791
$2,479,241
Percent of
Increase
(decrease)
6.01%
2.38%
20.70%
3.05%
22.64%
82.34%
67.13%
101101111111
In addition to the above general revenue, $723,842 was transferred from various funds,
primarily Enterprise funds for general and administrative cost reimbursement.
Expenditures for general governmental purposes and general debt service totaled
$19,806,152, an increase of 0.75% over 1999. Changes in levels of expenditures for
major functions of the City over the preceding year are shown in the following table:
Function
General government
Public safety
Streets
Parks/Recreation/Library
Debt Service
Nondepartmental
TOTAL EXPENDITURES
Percent
Amount Of Total
$3,259,704 16.46%
$9,880,516 49.89%
$746,976 3.77%
$2,311,089 11.67%
$2,199,194 11.10%
$1,408,673 7.11%
$ 19,806,152 100%
Increase
(decrease)
from 1999
147,690
424,729
(68,711)
251,060
(119,850)
(487,615)
$ 147,303
Percent of
Increase
(decrease)
4.75%
4.49%
(8.42)%
12.19%
(5.17)%
(25.71)%
iv
Revenues
Expenses
Intergovernme
ntal / Other Debt Service General Gov't
6% 11% 16%
Fines and -i" Streets
Fees, ; Property Tax 4%
16% 1 34% Nondept.
7%
General Sales
Tax
27%
Interest
Income
3%
icenses &
Permits
3%
Gross
Receipts Tax
11%
Public Safety
50%
Parks/Recreation
/Library
12%
Non departmental expenditures decreased primarily due to prior year funding of
nonrecurring capital items, including computer software and a transfer to the insurance
fund. Parks, Recreation, Library, and Public Safety increased due primarily to increased
personnel costs.
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.
2000 1999
Income before operating transfers $1,998,696 $1,488,663
Net revenue available for debt service $3,792,812 $2,620,389
Average annual debt service requirements $ 357,668 $ 335,033
Coverage 10.60 times 7.82 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 FY2K, $610,315 of revenue was generated and $329,421
of costs were 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 FY2K.
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 $323,496 was generated, while class expenses were
$288,158. Both experienced an increase 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 FY2K with $659,471 in revenues and $623,588 in
expenses.
Softball World Fund was added in fiscal year 1996 to promote adult softball programs
through league, tournament, and special events. Revenue of $1,174,707 was collected
for league fees, concession sales, and sale of sporting goods. Expenses were $936,443
with operating income prior to transfers of $238,264.
The Golf Course Fund and Athletic Complex were established as enterprise funds in
1996. The golf course revenues were $3,668,544 with operating expenses of
$3,141,894. Net income after debt service and operating transfers is $165,487. The
athletic complex ended the year with an operating loss of $155,568 including depreciation
of $186,121.
Debt Administration. General obligation debt, which is directly tax supported, totaled
$7,813,796 at September 30, 2000. 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 - $36,818,796; ratio of net bonded debt to assessed value is
2.45% and net bonded debt per capita is $809. Outstanding certificates of obligation at
September 30, 2000, totaling $29,005,000 are also considered to be net direct tax
supported debt. Tables 6-10 in the Statistical Section of this report present more detailed
information about the debt position of the City.
Outstanding sales tax revenue bonds, secured by the January 1993 referendum for half -
cent sales tax for parks, library and economic development totaled $9,700,000 as of
September 30, 2000.
Outstanding revenue bonds, which are secured by the net revenues of the various
Enterprise Funds, totaled $6,270,000 at September 30, 2000. Outstanding certificates of
obligation, which are secured by the tax base and revenues of the various Enterprise
Funds totaled $11,530,000.
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 A 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 $2,398,321. Interest is an important non -tax
revenue for the City. Throughout 2000, 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
vi
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, 2000, the general fixed
assets of the City amounted to $39,310,730. This amount represents the original cost of
the assets and is considerably Tess than their replacement value. Depreciation of general
fixed assets is not recognized in the City's accounting system.
OTHER INFORMATION
Independent Audit. The City Charter, per Article VII Section 11, requires an annual
audit to be made of the books of account, financial records and transactions of all
administrative departments of the City by a certified public accounting firm. This
requirement has been complied with and the report of independent auditors has been
included in this report.
Award. The Government Finance Officers Association of the United States and
Canada ("GFOA") awarded a Certificate of Achievement for Excellence in Financial
Reporting to the City for its comprehensive annual financial report for the fiscal year
ended September 30, 1999. The Certificate of Achievement is the highest form of
recognition given in the area of government reporting by the GFOA. In order to be
awarded a Certificate of Achievement, the City published an easily readable and
efficiently organized comprehensive annual financial report whose contents conform to
program standards. Such reports must satisfy both generally accepted accounting
principles and applicable legal requirements. A Certificate of Achievement is valid for a
period of one year only. We believe that our current comprehensive annual financial
report continues to meet the Certificate of Achievement Program's requirements and we
are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgments. The preparation of this report on a timely basis could not be
accomplished without the efficient and dedicated services of many individuals. I would
like to express my appreciation to all members of the Finance Department, especially
those in the Accounting Office, who assisted and contributed to its preparation. I would
also like to thank the City Manager's Office and the members of the City Council for their
interest and support in planning and conducting the financial operations of the City in a
responsible and progressive manner.
Acknowledgment is also given to the representatives of Weaver and Tidwell, L.L.P. for
their invaluable assistance in producing this document.
Respectfully submitted,
Loretta Getchell, CPA
Director of Fiscal and Administrative Services
vii
CITY OFFICIALS
MARY LIB SALEH, MAYOR
CARL TYSON, COUNCIL MEMBER PLACE ONE
LEON HOGG, COUNCIL MEMBER PLACE TWO
AND MAYOR PRO TEM
BOBBY BAKER, COUNCIL MEMBER PLACE THREE
CHARLES MILLER, COUNCIL MEMBER PLACE FOUR
GLENN PORTERFIELD, COUNCIL MEMBER PLACE FIVE
VEVA LOU MASSEY, COUNCIL MEMBER PLACE SIX
JOE HENNIG, CITY MANAGER
Gary McKamie Loretta Getchell, CPA
Deputy City Manager Director of Finance
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
twelve 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, 1999
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.
(4t4-4—
resident
Executive Director
ix
BOB MCFARLAND
City Attorney
x
RANDY
BYERS
Dir. of
Public Works
Streets
Water
Wastewater
Animal Control
Meter Reading
Fleet Services
Facility Maint.
Recycling
Construction Mgmt.
RON
YOUNG
City
Engineer
Engineering
Const. Inspection
CIP Management
Traffic Safety
Drainage
SUSAN CRIM
City Secretary
RICK HEROLD
Dir. of Parks
Community Svcs.
Library
Recreation
Parks
Texas Star Sports
Centre:
Athletic Complex
Golf Course
Conference Centre
Softball World
StarCenter
LEONARD
CARMACK
Police Chief
Patrol
Criminal Invest.
Services:
Communications
Community
Jail
Records
MAYOR
and
COUNCIL
JOE IIENNIG
City Manager
GARY MCKAMIE
Deputy City Manager
LORETTA
GETCHELL
Dir. of Finance
Accounting
Utility Billing
Budget
Municipal Court
Cash Debt. Mgmt.
Human Resources:
Risk/Benefits
Info. Services
Purchasing
Franchises
Organizational Chart
LACY BRITTEN
Municipal Court Judge
LEE KOONTZ
Fire Chief
Suppression
Ambulance
Fire Educ. & Prevent.
Fire Marshall
Emergency Mgmt.
Dir. of Planning
Development
Municipal Court
of Record
Old 11iI1A111 A ii:AA, N111'd111111111 11141u111111111111.11
Planning
Code Enforcement
Environ. Health
Building Inspections
BILL
RIDGWAY
Dir. Economic
Development
1 11111I1111d1I1I1hd I. im,i dull a 1iiV111r11111
LORI
DE LA CRUZ
Communications/
Marketing Mgr.
.
,
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WEAVER
TIDWELL
L.L.P.
CERTIFIED PUBLIC
ACCOUNTANTS
AND CONSULTANTS
307 Iles/ Seventh Street
Suite 1500
Fort Worth, Texas 76102
817.332.7905
F 817. 129.5936
DALLAS
Three Forest Plaza
12221111erit Drive
Suite 1700
Dallas, Texas 75251
Park Central I/11
12750 Merit Drive
Suite 1210
Dallas, Texas 75251
WORLDWIDE AFFILIATIONS
THROUGH
SUMMIT INTERNATIONAL
ASSOCIATES, INC.
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, 2000, 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 and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. 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, 2000, 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.
In accordance with Government Auditing Standards, we have also issued our
report dated January 9, 2001 on our consideration of the City of Euless' internal
control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grants. That report is an integral
part of an audit performed in accordance with Government Auditing Standards
and should be read in conjunction with this report in considering the results of
our audit.
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
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
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.
The required supplementary information listed in the table of contents is not a
required part of the general purpose financial statements but is supplementary
information required by the Governmental Accounting Standards Board. We
have applied certain limited procedures, which consisted principally of inquiries
of management regarding the completeness and accuracy of the supplementary
information. However, we did not audit the information and express no opinion
on it.
CcJ c- 4Add , vea f
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
January 9, 2001
3541
2
GENERAL PURPOSE FINANCIAL STATEMENTS
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999
ASSETS AND OTHER DEBITS
General
Fund
Deposits and investments $ 5,347,819
Receivables:
Property taxes
Accounts receivable and unbilled revenue
Accrued interest
Due from other funds
Due from other governments
Prepaids and deposits
Inventories, at cost
Restricted assets
General fixed assets
Net utility plant and equipment
in service
Net bond issuance costs
Amount available for retirement
of general long-term debt
Amount to be provided for retirement
of general long-term debt
Total assets and other debits
250,365
884,251
149,764
1,003,496
15,065
9,920
$ 7,660,680
Governmental Fund Types
Special Debt
Revenue Service
Funds Fund
Capital
Projects
Funds
$ 6,992,937 $ 688,443 $ 17,170,425
111,298
2,057,903
68,679
3,824
571,664
377
96,365
25,000
$ 9,695,384 $ 799,741 $ 17,291,790
The Notes to the General Purpose Financial Statements are an integral part of this statement.
3
(1 of 2)
Proprietary Fiduciary Totals
Fund Types Fund Types Account Groups (Memorandum only)
Internal General General
Enterprise Scivuue Agency Fixed Larigterm
Funds Funds Funds Assets Debt 2000 1999
$ 10,950,378 $ 1,414,819 $ 2,003,656 $ - $ $ 44,568,477 $ 25,323,289
- - 361,663 393,988
2,154,645 - - 5,096,799 2,138,887
167,038 21,115 - 502,961 398,966
648,793 - 677,617 721,694
- 1,575,160 513,727
70,179 85,621 76,523
182,920 - - 192,840 180,963
4,550,001 4,550,001 2,333,860
39,310,730 39,310,730 26,542,447
36,956,914 1,483,811 - 38,440,725 38,640,035
257,199 - 257,199 224,851
$ 55,938,067
1,581,339 1,581,339 1,109, 693
48,025,739 48,025,739 25,539,955
$ 2,919,745 $ 2,003,656 $ 39,310,730 $ 49,607,078 $ 185,226,871 $ 124,138,878
4
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999
LIABILITIES, FUND EQUITY
AND OTHER CREDITS
General
Fund
Liabilities:
Accounts payable $ 803,028
Accrued insurance claims
Accrued salaries and wages 329,784
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 770,071
Compensated absences -
Due to other entities
Due to other governments -
Total liabilities 1,902,883
Fund equity and other credits:
Investment in general fixed assets
Net contributed capital
Retained eamings:
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
36,347
4,606
3,183
15,065
32,757
27,039
3,948
917
500,000
500,000
4,633,935
5,757,797
$ 7,660,680
Governmental Fund Types
Special Debt
Revenue Service
Funds Fund
$ 4,224,922 $
18,591
28,824
4,272,337
910,588
1,323
4,511,136
5,423,047
$ 9,695,384
$ 799,741
128,990
128,990
670,751
Capital
Projects
Funds
$ 1,028,477
1,028,477
1,202,657
15,060,656
670,751 16,263, 313
$ 17,291,790
The Notes to the General Purpose Financial Statements are an integral part of this statement.
5
Enterprise
Funds
$ 1,139,746
259,357
1,165,645
68,901
648,793
17,900,000
25,803
139,865
21,348,110
13,413,181
37,718
500,000
31,311
39,405
20,568,342
34,589,957
$ 55,938,067
Proprietary
Fund Types
Internal
Service
Funds
$ 14,833
60,522
18,712
Fiduciary
Fund Type
Agency
Funds
$
1,995,068
- 8,588
94,067 2,003,656
41,000
200,000
200,000
2,384,678
2,825,678
$ 2,919,745
$
Account Grol`s
General Ueneral
Fixed Long-term
Assets Debt
39,310,730
39,310,730
$
46,518,796
133,525
1,836,366
1,118,391
49,607,078
Totals
(Memorandum only)
2000
$ 7,211,006
60,522
626,444
1,165,645
68,901
677,617
64,418,796
159,328
1,836,366
1,038,926
1,118,391
1,995,068
8,588
80,385,598
39,310,730
13,413,181
37,718
41,000
200,000
200,000
500,000
31,311
39,405
22, 953, 020
1,581,339
36,347
4,606
3,183
1,202,657
15,065
32,757
27,039
3,948
917
1,323
500,000
500,000
24,205,727
104,841,273
(2 of 2)
1999
$ 1,616,049
127,653
578,300
1,167,135
77,823
721,694
39,156,586
299,623
1,648,908
599,195
1,000,512
25,491
47,018,969
26,542,447
13,834,512
49,472
41,000
200,000
200,000
500,000
31,311
39,405
20,945,204
1,109,693
4,606
3,184
1,202, 910
14,427
26,835
27,039
3,050
906
1,323
500,000
500,000
11,342 585
77,119 b09
$ 2,003,656 $ 39,310,730 $ 49,607,078 $ 185,226,871 $ 124,138,878
6
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1999
Special
General Revenue
Fund Funds
Revenues:
General property tax $ 4,997,210 $
Gross receipts tax 2,364,097 290,910
General sales tax 5,785,532 9,759,110
Fines and fees 3,452,010
Licenses and permits 550,356 -
Interest income 434,752 218,552
DEA revenues 101,538
Intergovernmental 602,417 -
Other revenues 365,551 134,439
Total revenues 18,551,925 10,504,549
Expenditures:
Current:
City council/administrative 435,129 -
Finance/Purchasing 755,997 -
Police department 5,977,524/ - 482,006
Fire department 3,902,992/ -
Administrative services 601,347
Planning and development/Engineering/Animal Control 934,241
General and administrative - 4,349,130
Parks/recreation/library 2,311,089/ 694,379
Street maintenance 746,976- -
Economic development - 196,888
Betterment 17,626/
Staff services 531,002
Nondepartmental 1,391,047/
Debt service:
Principal - 390,000
Interest and fiscal charges - 592,438
Issuance costs - _
Capital outlay and maintenance - 157,265
Total expenditures 17,604,9/0 6,862,106
Excess (deficiency) of revenues over expenditures 946,955 3,642,443
Other financing sources (uses)
Proceeds from issuance of bonds - -
Operating transfers in 723,842 13,717
Operating transfers out (173,717) (1,497,035)
Total other financing sources (uses) 550,125 (1,483,318)
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses 1,497,080 2,159,125
Fund balances, beginning of year 4,260,717 3,263,922
Fund balances, end of year $ 5,757,797 $ 5,423,047
The Notes to the General Purpose Financial Statements are an integral part of this statement.
7
Debt
Service
Fund
$ 2,211,027
230,835
323,614
2, (65,4 (6
1,988
1,022,790
1,176, 404
2,201,182
564,294
(92,648)
(92,648)
471,646
199,105
$ 670,751
Capital
Projects
Funds
629,898
19,869
649, /6
344,941
961,857
36,423
328,100
15, 246, 985
16, 918, 306
(16, 268, 539 )
24, 088, 891
2,046,867
(616, 720)
25, 519, 038
9,250,499
7,012,814
$ 16,263,313
Totals
(Memorandum Only)
2000
$ 7,208,237
2,655,007
15, 544, 642
3,452,010
550,356
1,514,037
101,538
602,417
843,473
32,471, 717
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
43, 586, 564
(11,114,847)
24,088,891
2,784,426
(2,380,120)
24,493,197
1999
$ 6,799,379
2,598,167
7,625,399
3,349,742
448,751
878,518
125,714
557,246
447,126
22, 830, 042
13, 378, 350
14,736,558
$ 28,114,908 $
395,708
682,305
6,164,543
3,688,227
621,067
914,099
76,902
2,838,778
815,687
111,807
21,895
496,935
1,874,393
1,775,000
1,454,632
3,069,616
25, 001, 594
(2,171,552)
1,867,886
(1,265,318)
602,568
(1,568,984)
16,305,542
14, 736, 558
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL AND BUDGETED SPECIAL REVENUE FUNDS
YEAR ENDED SEPTEMBER 30, 2000
General property tax:
Current and delinquent
taxes
Penalty and interest
Gross receipts tax:
Southwestern Bell Telephone
Company
Texas Utilities Electric
Company
Texas Utility Gas Company
Cable TV
City Garbage Service
Others
General sales tax
Fines and fees:
Franchise fees
Municipal Court fines
Jail income
Dog licenses and pound
fees
Ambulance fees
Library fees
Zoning fees
Deferred adjudication fee
Licenses and permits:
Building permits
Miscellaneous permits
Electric licenses
Interest income
Intergovernmental
Other revenues:
Rental income
Swimming pools
Miscellaneous income
Total revenues
General Fund
Actual Budget
$ 4,958,561
38,649
4,99 /,21 U
442,839
1,314,922
101,066
286,910
102,096
116,264
2,364,097
5,785,532
636,896
2,145,306
179,496
14,285
229,934
37,512
21,320
187,261
3,452,010
310,723
201,256
38,377
550,356
434,752
602,417
$ 4,908,264
35,330
4,943,594
83,948
16,676
264,927
365,551
$ 18,551,925 $ 1
435,390
1,352,456
124,038
171,265
106,099
89,663
2,2(8,911
5,083,720
571,311
2,204,619
150,000
14,000
190,000
32,000
19,861
173,380
3,355,171
175,000
196,450
34,000
405,450
325,000
457,603
65,750
20,000
122,350
206,100
7,057,549
Variance
Favutd le
(Unfavorable)
$ 50,297
3,319
53,616
7,449
(37,534)
(22,972)
115,645
(4,003)
26,601
65,186
701,812
65,585
(59,313)
29,496
285
39,934
5,512
1,459
13,881
96,639
135,723
4,806
4,377
144,906
109,752
144,814
18,198
(3,324)
142,577
15/,451
$ 1,494,3/6
Actual
(1 of 2)
Budgeted Special Revenue Funds
Variance
FavuiaLle
Budget (Unfavorable)
290,910
29U,91 U
9,759,110
192,819
128,739
128, /39
$ 10,3/1,5/8
325,000
325,000
7,503,488
135,000
99,252
99,252
$ 8,062,/40
(34,090)
(34,09 )
2,255,622
57,819
29,487
29,487
$ 2,3116,636
The Notes to the General Purpose Financial Statements are an Integral part of this statement.
9
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL AND BUDGETED SPECIAL REVENUE FUNDS
YEAR ENDED SEPTEMBER 30, 2000
Expenditures:
Current:
City council/administration
Finance/Purchasing
Police department
Fire department
Administrative services
Planning and development/
Engineering/Animal Control
General and administrative
Parks/recreation/library
Street maintenance
Economic development
Betterment
Staff services
Nondepartmental
Debt service
Principal payments
Interest payments
Capital outlay and maintenance
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing
sources (uses)
Excess (deficiency) of
revenues and other
financing sources over
expenditures and other
financing uses
Fund balance, beginning of year
Fund balance, end of year
Actual
$ 435,129
755,997
5,977,524
3,902,992
601,347
934,241
2,311,089
746,976
17,626
531,002
1,391,047
17,604,970
946,955
723,842
(173,717)
550,125
1,497,080
4,260,717
$ b,/b/,/9/
General Fund
Budget
$ 433,439
758,708
6,207,148
3,938,420
606,576
969,637
2,344,428
745,713
22,000
551,574
1,755,141
18,332,784
(1,275,235)
655,903
(173,717)
482,186
Variance
FdVUId le
(Unfavorable)
$ (1,690) $
2,711
229,624
35,428
5,229
(793,049)
4,260,717
$ 3,467,668 $
35,396
33,339
(1,263)
4,374
20,572
364,094
727,814
2,222,190
Actual
457,445
4,344,107
694,379
196,888
390,000
592,438
153 620
6,6288//
3,542,701
(2 of 2)
Budgeted Special Revenue Funds
Variance
FavurdLle
Budget (Unfavorable)
454,080
3,225,204
737,919
179,756
540,000
592,440
166,120
b,89b,b19
2,167,221
67,939 13,717 13,717
- (1,497,035) (1,497,035)
67,939 (1,483,318) (1,483,318)
2,290,129 2,059,383
2,820,971
2,299,129 $ 4,tibU,3b4
(3,365)
(1,118,903)
43,540
(17,132)
150,000
2
12,500
_(933,3b8)
1,375,480
683,903 1,375,480
2,820,971
3,bU4,8/4 1,3/0,48U
The Notes to the General Purpose Financial Statements are an integral pact of this statement.
10
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30,1999
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 Info
Service center
Drainage
Recreation classes
Golf course
Pro Shop
Food and beverage
Conference center
Cart operations
Driving range
Athletic complex
Softball complex
Arbor Daze
Insurance costs
Depreciation
Amortization
Total operating expenses
Operating Income (loss)
Nonoperating revenues (expenses):
Investment Income
Interest on bonds
Gain on sale of fixed assets
Total nonoperating revenues (expenses), net
Income (loss) before operating transfers
Operating transfers in
Operating transfers out
Net Income
Add depreciation on fixed assets acquired
with contributed capital
Increase in retained earnings
Retained earnings, beginning of year
Retained earnings, end of year
Enterprise
Funds
$ 7,657,132
3,730,338
610,315
323,496
7,069 135
19,399,416
666,790
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
1,863,300
27651
17,161,663
2,228,753
806,028
(838,377)
(32,349)
2,196,404
222,663
(1,016,877)
1,402,190
421,331
1,823,521
19,353,255
$ 21,176,776
Internal
Service
Funds
1,873,541
478,755
2,352,296
626,577
1,705,023
355,210
2,686,810
(334,514)
78,256
38,891
110147
(217,367)
495,000
(105,092)
172,541
172,541
2,653,137
$ 2,825,678
Totals
(Memorandum Only)
2000 159y
$ 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
27651
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
$ 7,034,082
3,568,056
587,710
230,489
1,794,264
6,651 515
19,866,1;g-
1,188,334
3,214,048
446,715
272,438
1,763,864
2,123,422
167,287
660,435
195,397
211,071
961,869
373,755
864,311
209,406
151,886
8,480
162,349
796,294
524,133
1,721,862
2,031,717
22,651
18,071,724
1,794,392
573,254
(903,973)
19,082
(311,637)
1,482,755
841,383
(1,443,951)
880,187
421,331
1,301,518
20,704,874
$ 22,006,392
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, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1999
(1 of 2)
Internal Totals
Enterprise Service (Memorandum only)
Funds Funds 2000 1999
OPERATING ACTIVITIES:
Operating income (loss) $ 2,228,753 $ (334,514) $ 1,894,239 $ 1,794,392
Adjustments to reconcile operating
income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization expenses 1,890,951 355,210 2,246,161 2,054,368
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue (414,814) 19,074 (395,740) (118,557)
Due from other funds 48,501 - 48,501 341,507
Prepaids and deposits (12,401) - (12,401) 213,578
Inventory (14,882) (14,882) (10,839)
Increase (decrease) due to net changes in:
Accounts payable 532,891 (6,470) 526,421 25,361
Accrued salaries and wages 90,755 (4,913) 85,842 49,108
Accrued insurance claims - (67,131) (67,131) 32,653
Due to other funds (41,172) - (41,172) (350,569)
Customer and escrow deposits 13,843 13,843 44,727
Bond issue costs (60,000) (60,000) -
Deferred revenue 11,661 11,661 (8,968)
Total adjustments 2,045,333 295,770 2,341,103 2,272,369
Net cash provided by (used in)
operating activities 4,274,086 (38,744) 4,235,342 4,066,761
NONCAPITAL FINANCING ACTIVITIES :
Interest paid on bonds (838,131) - (838,131) (886,128)
Interest paid on tax notes payable (9,168) (9,168) (22,168)
Reduction in bonds payable (670,000) - (670,000) (610,000)
Reduction in tax notes payable (290,000) (290,000) (190,000)
Reduction of capital leases payable (15,178) (15,178) 40,981
Proceeds from issuance of bonds 3,445,000 - 3,445,000
Operating transfers in 222,663 495,000 717,663 841,383
Operating transfers out (1,016,877) (105,092) (1,121,969) (1,443,951)
Net cash provided by (used in)
noncapital financing activities 828,309 389,908 1,218,217 (2,269,883)
CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of utility plant and equipment
in service (1,422,980) (633,744) (2,056,724) (1,264,961)
Proceeds from sale of utility plant in
service 76,415 76,415 30,950
Net cash used in capital and related
financing activities (1,422,980) (557,329) (1,980,309) (1,234,011)
The Notes to the General Purpose Financial Sktements are an integral part of this statement.
12
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1999
(2 of 2)
Internal Totals
Enterprise Service (Memorandum only)
Funds Funds 2000 1999
INVESTING ACTIVITIES:
Purchase of investment securities $ (2,514,661) $ $ (2,514,661) $ (20,148)
Proceeds from sale of investment securities 123,837 123,837 32,423
Interest received on investments 934,919 76,842 1,011,761 658,532
Net cash provided by (used in)
investing activitives (1,455,905) 76,842 (1,379,063) 670,807
Net increase (decrease) in cash and
cash equivalents 2,223,510 (129,323) 2,094,187 1,233,674
Cash and cash equivalents,
beginning of year 9,094,190 1,544,142 10,638,332 9,404,658
Cash and cash equivalents,
end of year $11,317,700 $ 1,414,819 $ 12,732,519 $ 10,638,332
Reconciliation of cash to balance sheet:
Cash - current $10,950,378
Cash - restricted assets 367,322
Cash and cash equivalents $11,317,700
Restricted assets:
Cash $ 367,322
Investments 4,164,896
Interest receivable 17,783
Total restricted assets $ 4,550,001
The Notes to the General Purpose Financial Statements are an integral part of this statement.
13
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 government
units. The Governmental Accounting Standards Board (GASB) is the accepted standard -
setting body for establishing governmental 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 government
organizations for which the primary government is financially accountable and other
organizations for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity's financial
statements to be misleading or incomplete.
The definition of the reporting entity is based primarily on the notion of financial
accountability. A primary government is financially accountable for the organizations that
make up its legal entity. It is also financially accountable for legally separate
organizations if its officials appoint a voting majority of an organization's governing body
and either it is able to impose its will on that organization or there is a potential for the
organization to provide specific financial benefits to, or to impose specific financial
burdens on, the primary government. A primary government may also be financially
accountable for governmental organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can
significantly influence the programs, projects, or activities of, or the level of services
performed or provided by, the organization. A financial benefit or burden relationship
exists if the primary government (a) is entitled to the organization's resources; (b) is
legally obligated or has otherwise assumed the obligation to finance the deficits of, or
provide financial support to, the organization; or (c) is obligated in some manner for the
debt of the organization.
Some organizations are included as component units because of their fiscal dependency
on the primary government. An organization is fiscally dependent on the primary
government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue
bonded debt without approval by the primary government.
The following entities were found to be component units of the City and are included in
the combined financial statements:
Euless Development Corporation - The City created the Corporation for the purpose of
promoting parks, library services, and economic development within the City. The
Corporation's governing body is substantially the same as the governing body of the
City. There are seven directors, four of whom are members of the City Council and
make up a voting majority of the City Council. The remaining three members are
residents of the City. All Board members are appointed by the City Council. The
14
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 governing body is substantially the same as the
governing body of the City. There are seven directors, four of whom are members of
the City Council and make up a voting majority of the City Council. The remaining
three members are residents of the City. All Board members are appointed by the City
Council. The District is authorized to sell bonds or other forms of indebtedness. Upon
dissolution of the District, the assets of the District shall be distributed to the City. The
District provides all of its services to the City.
A blended presentation has been used to report the financial information of this
component unit. The financial statements for the District were obtained from the Board
of Directors. The financial information for the District is available from the City.
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 available financial resources.
Funds are classified into three categories: governmental, proprietary and fiduciary. Each
category, in turn, is divided into separate "fund types."
Governmental 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.
15
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Fund Accounting - continued
Proprietary funds are used to account for activities similar to those found in the private
sector, where the determination of net income is necessary or useful to sound financial
administration. Goods or services from such activities can be provided either to outside
parties (enterprise funds) or to other departments or agencies within the City (internal
service funds).
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental funds are accounted for using a current financial
resources measurement focus. With this measurement focus, only current assets and
current liabilities generally are included in the balance sheet. Operating statements of
these funds present increases (i.e., revenues and other financing sources) and
decreases (i.e., expenditures and other financing uses) in net current assets.
All proprietary funds are accounted for on a flow of economic resources measurement
focus. With this measurement focus, all assets and all liabilities associated with the
operation of these funds are included on the balance sheet. Fund equity (i.e., assets net
of liabilities) is segregated into contributed capital and retained earnings components.
Proprietary fund -type operating statements present increases (e.g., revenues) and
decreases (e.g., expenses) in net assets.
The proprietary funds are accounted for using the accrual basis of accounting.
Revenues are recognized when they are earned, and expenses are recognized when
they are incurred. The City applies all GASB pronouncements, FASB Statements and
interpretations, APB Opinions and ARB's issued on or before November 30, 1989. The
City has elected to apply only GASB pronouncements issued after November 30, 1989
for proprietary activity.
All governmental fund types and agency funds use the modified accrual basis of
accounting. Under the modified accrual basis of accounting, revenues are recognized
when susceptible to accrual (i.e., when they become both measurable and available).
"Measurable" means the amount of the transaction can be determined and "available"
means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. Expenditures are recorded when the related fund liability
is incurred. Interest on general long-term debt is recorded as a fund liability when due or
when amounts have been accumulated in the debt service fund for payments to be made
early in the following year.
Revenues considered susceptible to accrual are sales taxes, property taxes, gross
receipts tax and interest revenue. Fine and permit revenues are not susceptible to
accrual because generally they are not measurable until received in cash.
16
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Basis of Accounting - continued
Proprietary Fund Types utilize the accrual basis of accounting. Under this method,
revenues are recorded when earned and expenses are recorded at the time liabilities are
incurred or estimated.
The City reports deferred revenue on its combined balance sheet. Deferred revenues
arise when a potential revenue does not meet both the "measurable" and "available"
criteria for recognition in the current period. Deferred revenues also arise when the
government receives resources before it has legal claim to them, such as grant monies
received prior to qualifying expenditures being incurred. In subsequent periods, when
both revenue recognition criteria are met, or when the City has a legal claim to the
resources, the liability for deferred revenue is removed from the combined balance sheet
and revenue is recognized. Deferred revenues primarily include delinquent property
taxes and unexpended revenues for capital projects.
Budgetary Data
The City Council follows these procedures in establishing budgetary data reflected in the
financial statements:
1. Prior to August 1, the City Manager submits to the City Council a proposed operating
budget for the fiscal year commencing the following October 1. The operating budget
includes proposed expenditures and means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to September 21, the budget is legally enacted through passage of an
ordinance and a budgetary report is prepared.
4. The City Manager is authorized to transfer budgeted amounts between departments
within any fund; however, any revision that alters the total expenditures of any fund
must be approved by the City Council. The budget presented reflects revisions made
by the City Manager during the year. Total expenditures approved by the City
Council have not been altered. The legal level of control is at the fund level.
5. A budget is legally adopted for the General Fund and appropriate 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 appropriate Special Revenue Funds. Appropriations and
encumbrances lapse at year-end.
6. Formal budgetary integration is not employed for the Debt Service Funds because
effective budgetary control is alternatively achieved through general obligation bond
indenture provisions.
17
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.
The following is a reconciliation of the budgetary and GAAP basis excess (deficiency) of
revenues and other sources over expenditures and other uses for the Special Revenue
Funds:
Excess (deficiency) of revenues and other sources over
expenditures and other uses (budgetary basis)
Unbudgeted fund:
Police/Drug Enforcement Fund
Excess (deficiency) of revenues and other sources over
expenditures and other uses (GAAP basis)
Deposits and Investments
$2,059,383
99,742
$2,159,125
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash and investment accounts. Related interest income is allocated to the
various funds based primarily on ownership by each fund of specific investments. Cash
equivalents consist of highly liquid investments with original maturities of three months or
less.
For purposes of the combined statement of cash flows, the City considers all highly liquid
investments (including cash equivalents reported as restricted assets of $367,322 and
$549,234 at September 30, 2000 and 1999, respectively) as set forth above to be cash
equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or less
when purchased are reported at amortized cost. Nonparticipating contracts are reported
at cost. All other investments are reported at fair value.
State statutes authorize the City to invest in obligations of the U.S. Government or its
agencies; obligations of the State of Texas or its agencies; and certain other obligations,
repurchase agreements, money market mutual funds and certificates of deposits within
established criterion.
18
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Taxes
Property taxes attach as an enforceable lien on property as of January 1, are levied for
appropriation for the fiscal year beginning on October 1, are due October 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 to be not 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.
Inventories
Inventories, which are recognized as expenditures as they are consumed, are stated at
cost (first -in, first -out method) for the General Fund and Enterprise Funds. Inventories
consist primarily of expendable supplies for the General Fund and pro shop merchandise
for the Enterprise Funds.
Fixed Assets
Fixed assets are recorded at cost (or fair value, if contributed) when acquired. General
fixed assets are recorded as expenditures in the General Fund, Special Revenue Funds,
and Capital Projects Funds at the time of purchase or construction and are capitalized in
the General Fixed Assets Account Group at cost. Public domain ("infrastructure")
general fixed assets consisting of certain improvements other than buildings, including
roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting
systems are not capitalized in the general fixed assets account group. No depreciation is
recorded on general fixed assets.
Expenditures for utility plant and equipment are capitalized in the Proprietary Fund
Types. Depreciation is recorded on each class of depreciable property in the proprietary
funds beginning the year following the year of acquisition and utilizing the straight-line
method over the following estimated useful lives of assets:
Equipment
Waterworks and sanitary sewer system and improvements
Compensated Absences
5 - 15 years
33 1/3 years
Employees may accumulate a maximum of two times their annual vacation. The City's
policy is to pay the employee accumulated vacation upon termination. The City does not
pay employees for accumulated sick leave upon termination. Accumulated vacation in
the proprietary funds has been accrued as incurred and reported as accrued salaries and
wages (a current liability). The accumulated vacation of the governmental fund type,
19
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Compensated Absences — continued
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.
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 (Le.,
presentation of prior year totals by fund type in each of the statements) have not been
presented since its inclusion would make the statements unduly complex and difficult to
read.
Memorandum Totals
The totals column on the combined statements are captioned "Memorandum Only" to
indicate that they are presented only to facilitate financial analysis. Data in these
columns do not present financial position, results of operations or cash flows in
conformity with generally accepted accounting principles. Neither is such data
comparable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
Interfund Transactions
Quasi -external transactions are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially
made from it that are properly applicable to another fund, are recorded as expenditures/
expenses in the reimbursing fund and as a reduction of expenditures/expenses in the
fund reimbursed.
All other interfund transactions, except quasi -external transactions and reimbursements,
are recorded as transfers. Nonrecurring or nonroutine permanent transfers of equity are
reported as residual equity transfers. All other interfund transfers are reported as
operating transfers.
20
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
At September 30, 2000, the bank balances were $288,271 and the ledger balances of the
City's book cash deposits were ($316,280). Of the bank balances, $288,271 were
protected by federal depository insurance or by collateral held by the City's agent in the
City's name.
Investments
At September 30, 2000, 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
Cateaories
2
$27,156,282 $
3
Carrying Fair
Amount Value
$27,156,282 $27,151,519
10,609,295 10,609,295
10,250,503 10,250,503
1,400,895 1,400,895
$49 416,97 Z $49,412.212
Investments in local government investment pools are administered by the State of Texas
and the fair value of the position in the pool is approximately the same as the value of the
pool shares.
NOTE 3. LONG-TERM DEBT
A summary of long-term debt transactions for the year ended September 30, 2000, is as
follows:
General Long -Term Debt
Account Group:
General Obligation Bonds
Certificates of Obligation
Sales tax revenue bonds
Capital leases
Compensated absences
Accreted interest
Balance Balance
Beginning End
of Year Increase Decrease of Year
$ 4,026,586 $ 4,300,000 $ 512,790 $ 7,813,796
10,625,000 18,890,000 510,000 29,005,000
9,090,000 1,000,000 390,000 9,700,000
258,642 125,117 133,525
1,000,512 117,879 - 1,118,391
1.648.908 187,458 1,836,366
$26.649,648 $ 24 495.337 $1,537,907 $49,607,078
21
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT — continued
Proprietary Fund Types:
Water and Sewer
Revenue Bonds
Drainage Utility
Revenue Bonds
Tax and Golf Course
Surplus Revenue
Certificates of Obligation
Tax and Softball Works Park
Surplus Revenue
Certificates of Obligation
Capital Leases
Tax Notes
Balance
Beginning
of Year
Balance
End
Increase Decrease of Year
$ 1,770,000 $ 3,260,000 $ 415,000 $ 4,615,000
1,765,000
9,625,000
1,865,000
40,981
390,000
110,000 1,655,000
185,000 75,000 9,735,000
$ 15.455.981 $ 3.445.000
Debt outstanding at September 30, 2000 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
Tax Notes
Range of
Interest Rates
4.40 to 9.20%
4.25 to 8.12%
5.00 to 8.00%
5.97 to 13.96%
4.50 to 6.75%
6.00 to 6.70%
5.25 to 5.90%
4.10 to 5.25%
4.45 to 6.45%
Outstanding
Balance
70,000 1,795,000
15,178 25,803
290,000 100,000
$ 975.178 $17.925.803
Current Long -Term
Maturities Maturities
$ 7,813,796 $599,277 $7,214,519
29,005,000 605,000 28,400,000
9,700,000
159,328
405,000 9,295,000
25,803 133,525
4,615,000 445,000 4,170,000
1,655,000 120,000 1,535,000
9,735,000
1,795,000
100,000
160,000 9,575,000
75,000 1,720,000
100,000
22
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.
2001
2002
2003
2004
2005
2006-2010
2011-2015
2016-2020
2021-2025
Less interest
General
Obligation
Bonds
$1,499,889
1,511,354
1,533,350
1,527,351
681,723
2,631,662
1,839,473
1,866,882
13, 091, 684
5.277.888
Certifi-
cates of
Obliaation
$ 2,876,154
2,697,555
2,638,914
2,601,703
2,605,264
13, 054, 262
13, 091, 809
10,419,934
4,881,522
54, 867,117
25.862.117
Sales
Tax
Revenue
Bonds
$ 971,206
969,906
972,466
965,720
969,751
4,847,977
4,885,252
469,502
15, 051, 780
5,351,780
Capital
Leases
$ 159,552
9,948
169,500
10.172
Principal $Z.$13.Z9_E $29 005 000 $9 700 000 $159 328
2001
2002
2003
2004
2005
2006-2010
2011-2015
2016-2020
2021-2025
2026-2027
Less interest
Drainage
Utility
Revenue
Tax and
Golf
Course
Surplus
Revenue
Certificates of
Tax and
Softball
World Park
Surplus
Revenue
Certificates of
Bonds Obligation Obliaation
$ 225,852
228,652
230,788
227,248
228,258
1,165,128
2,305,926
650.926
$ 720,281 $ 160,166
782,275 157,082
778,525 158,856
711,702 160,348
711,728 161,540
3,554,776 814,390
3,558,300 838,767
3,562,880 169,331
3,564,398 -
1.427.116
19,371,981 2,620,480
9.636.981 825.480
Water and
Sewer
Revenue
Bonds Subtotal
$ 762,637 $ 6,269,438
811,234 5,999,997
489,146 5,633, 876
408,946 5,503,720
411,459 4,668,197
1,402,243 21,936,144
1,418,257 21,234,791
1,449,444 14,205,762
4.881.522
7,153,366 90,333,447
2,538,366 39, 040, 323
$4.Q15.Q0.0 $51.293.124
Notes Subtotal Grand Total
$ - $ 1,106,299 $ 7,375,737
102,375 1,270,384 7,270,381
1,168,169 6,802,045
1,099,298 6,603,018
- 1,101, 526 5,769,723
5,534,294 27,470,438
- 4,397,067 25, 631, 858
3,732,211 17, 937, 973
3,564,398 8,445,920
1,427,116 1,427,116
102,375 24,400,762 114,534,209
2.375 11,115,762 50.156,085
Principal $1.6 000 $_2235.Q0Q 11_795.00Q $1Q10Q0 1132$5.Q0Q $64.571.124
23
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, 2000, amounted to
$300,000. Water and Sewer Revenue Bonds authorized and unissued as of September 30,
2000, 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, 2000. 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 Sales Tax and Revenue Bonds, Series 1999, for $1,000,000 on
October 15, 1999. Bond issuance costs were $36,100.
The City also issued General Obligation Bonds, Series 2000 and Waterworks and Sewer
System Revenue Bonds, Series 2000, for $4,300,000 and $3,260,000, respectively, on
March 15, 2000. Bond issuance costs were $70,000 and $60,000, respectively.
In addition, the City issued Tax and Waterworks and Sewer System (Limited Pledge)
Revenue Certificates of Obligation, Taxable Series 2000 and Series 2000A, for
$10,290,000 and $8,785,000, respectively, on April 1, 2000 and May 1, 2000, respectively.
Bond issuance costs were $146,000 and $76,000, respectively.
In accordance with the Tax and Waterworks and Sewer System (Limited Pledge) Revenue
Certificates of Obligation, Taxable Series 2000, an escrow account was established to
safeguard the City from possible future loss. The funds are restricted to obligations of the
United States or its agencies and instrumentalities (except for mortgage pass -through
securities) having maturities not in excess of 5 years.
24
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 4. RESTRICTED ASSETS
Restricted assets consist of cash, investments and accrued interest primarily restricted for
Water and Sewer Enterprise Fund debt service and water and sewer system replacements.
The City sold certain of the waterworks and sanitary sewer system properties situated within
the City of Bedford to that City in 1968. The proceeds were restricted to the prepayment or
redemption of certain revenue bonds; investment income of the funds may be applied to
current revenue bond interest up to stipulated amounts. As of September 30, 2000, the
balance in the property sales proceeds account was $356,163 and is included in restricted
assets in the accompanying balance sheet.
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 $5,111,000 and are included as operating
expenses of the water and sewer fund. The payments increased approximately $816,000 in
comparison to 1999.
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,
1999
Additions Deletions
$ 3,826,944 $ 949,330 $
8,795,947 9,391,814
4,162, 919 110,247
2,030,000 1,815,482
7.726.637 813.396 311.986
L_26.542 447 11.0.00.26 � 31t986
Balance
September 30,
2000
$4,776,274
18,187,761
4,273,166
3,845,482
8.228, 047
$3..31.0 730
25
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 6. FIXED ASSETS - continued
The following is a summary of utility plant and equipment in service at September 30, 2000
included in the proprietary funds:
Land and building
Equipment
Improvements
Waterworks
and sanitary
sewer system
Construction
in progress
Less accumulated
depreciation
Water and Drainage
Sewer Fund Utility Fund
$1,528,966 $ 89,000
2,194,922 6,510
184,601 2,706,729
Enterprise Funds
Recreation
Classes
1,376
29, 945, 734
1.066.961
Golf Course
Fund
$ 348,135
979,386
10,271, 971
Softball Athletic
Complex Complex
$1,369,473
46,211
16,558
Internal
Service
Funds
$5,197,050 $
151,046 2,695,069
40,390
34,921,184 2,802,239 1,376 11,599,492 1,432,242 5,348,096 2,735,459
17.317.333 375,142
111593.851 $.2.42LQ91 $ 551 1115_46.904 $_1.402.62 $4 975„864, $1 483 811
NOTE 7. SERVICE CENTER
825 1,052,588 29,585 372,242 1,251,648
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
Capital Projects
Water and Sewer
Softball Complex
Special Revenue
Payable Fund
Special Revenue
Golf Course
Athletic Complex
Special Revenue
Amount
$ 25,000
289,793
359,000
3, 824
$ 677,617
26
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 9. CONTRIBUTED CAPITAL
The activity within the Enterprise Fund contributed capital for the year ended
September 30, 2000 is as follows:
Balance, September 30, 1999 $13,834,512
Depreciation expense for the
year ended September 30, 2000 ( 421,331)
Balance, September 30, 2000 $13.413,181,
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 2000, the City and
City's employees contributed approximately $1,107,400 and $444,900, respectively, for
medical coverage. The City's contributions are accounted for as quasi -external
transactions. Claims liabilities are based on estimates of the ultimate cost of claims
(including future claim adjustment expenses) that have been reported but not settled, and of
claims that have been incurred but not reported, and are accounted for in the Internal
Service Risk Management Fund.
The City is also self -insured for workers' compensation claims, Contributions are made to a
separate Risk Management Fund by other funds and are available to pay claims, claim
reserves and administrative costs of the program. An excess coverage insurance policy
covers individual claims in excess of $300,000. During 2000, the City contributed
approximately $297,000 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
2000 1999
$ 127,653 $ 95,000
1,603,934 1,754,515
1,671,065 1,721,862
Unpaid claims, end of year $ 60.522 $ 127,653
27
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 10. RISK MANAGEMENT - continued
The City had no significant reductions in insurance coverage from the year ended
September 30, 1999. Settlement amounts have not exceeded insurance coverage for the
year ended September 30, 2000 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 731 administered by TMRS, an agent
multiple -employer public employee retirement system.
Benefits depend upon the sum of the employee's contributions to the plan, with interest,
and City -financed monetary credits, with interest. At the date the plan began, the City
granted monetary credits for service rendered before the plan began of a theoretical
amount equal to two times what would have been contributed by the employee with
interest, prior to establishment of the plan. Monetary credits for service since the plan
began are a percent (100%, 150%, or 200%) of the employee's accumulated
contributions. In addition, the City can grant, as often as annually, another type of
monetary credit referred to as an updated service credit which is a theoretical amount
which, when added to the employee's accumulated contributions and the monetary
credits for service since the plan began, would be the total monetary credits and
employee contributions accumulated with interest if the current employee contribution
rate and the City matching percent had always been in existence and if the employee's
salary had always been the average of his salary in the last three years that are one year
before the effective date. At retirement, the benefit is calculated as if the sum of the
employee's accumulated contributions with interest and the employer -financed monetary
credits with interest were used to purchase an annuity.
Members can retire at ages 60 and above with 10 years or more of service or with 25
years of service regardless of age. A member is vested after 10 years. The plan
provisions are adopted by the governing body of the City, within the options available in
the state statutes governing TMRS and within the actuarial constraints also in the
statutes.
Contributions
The contribution rate for the employees is 7%, and the City matching percent is currently
200%, both as adopted by the governing body of the City. Under the state law governing
TMRS, the actuary annually determines the City contribution rate. This rate consists of
the normal cost contribution rate and the prior service contribution rate, both of which are
calculated to be a level percent of payroll from year to year. The normal cost contribution
rate finances the currently accruing monetary credits due to City matching percent, which
28
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM — continued
Contributions - continued
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 each
employee at the time his retirement becomes effective. The prior service contribution rate
amortizes the unfunded actuarial liability 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 to budget for it, 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, 1999 valuation is effective for rates
beginning January 2001).
Schedule of Actuarial Liabilities and Funding Progress
Actuarial Valuation Date 12/31/99
Actuarial Value of Assets $ 37,889,214
Actuarial Accrued Liability $ 46,007,148
Percentage Funded 82.4%
Unfunded Actuarial Accrued Liability (UAAL) $ 8,117,934
Annual Covered Payroll $ 13,061,776
UAAL as a Percentage of Covered Payroll 62.2%
Net Pension Obligation (NPO) at the Beginning of Period $
Annual Pension Cost:
Annual Required Contribution (ARC)
Interest on NPO
Adjustment to the ARC
$ 1,827,142
Total annual pension cost $ 1,827,142
Contributions Made ( 1,827,142)
Increase in NPO -
NPO at the end of the period $
29
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
Schedule of Actuarial Liabilities and Funding Progress - continued
Trend information for the past three years for TMRS is as follows:
Year
1997
1998
1999
Annual
Pension Cost
(APC'
$ 1,641,301
1,699,438
1,827,142
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
Percentage
of APC
Contributed
100%
100%
100%
Net Pension
Obligation
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.
30
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 12. SEGMENTS OF ENTERPRISE ACTIVITIES - continued
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
Operating revenues $12,850,965 $ 610,315 $323,496 $ 3,668,544 $1,174,707 $ 102,918 $659,471 $19,390,416
Depreciation 1,081,603 81,202 275 504,036 10,063 186,121 - 1,863,300
Operating
income (loss) 1,354,466 193,720 35,338 526,650 238,264 ( 155,568) 35,883 2,228,753
Operating
transfers in - - 205,035 17,628 - 222,663
transfers out 967,395 31,854 17,628 1,016,877
Net income (loss) 1,031,301 101,340 37,508 165,487 190,980 (168,882) 44,456 1,402,190
Property, plant
and equipment:
Additions 1,198,965 - 224,015 - - 1,422,980
Total Assets 33,453,836 3,488,899 105,494 11,246,900 2,377,092 5,066,004 199,842 55,938,067
Net working capital 10,057,828 1,003,360 100,347 385,358 891,757 74,816 170,792 12,684,258
Long-term debt,
including
current portion 4,615,000 1,655,000 9,860,803 1,795,000 17,925,803
Total Equity
26,421,148 1,803,317 100,898 870,223 520,960 4,702,619 170,792 34,589,957
NOTE 13. CAPITAL LEASES
The City has entered into lease agreements_ as lessee for financing the acquisition of
computer hardware, software, communications equipment, machinery and equipment, and a
copier. These lease agreements qualify as capital leases for accounting purposes and,
therefore, have been recorded at the present value of the future minimum lease payments as
of the date of their 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 these capital leases, and the present value of the net minimum lease
payments at September 30, 2000.
2001
2002
Total minimum lease payments
Less: amount representing interest
Present value of future minimum lease payments
$159,552
9,948
169,500
10,172
$159.328
31
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 14. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2000, the following individual funds had an excess of expenditures
over appropriations:
DEA Task Force Fund ($ 31,284)
Police Department Grant Funds ($ 118,334)
Car Rental Tax Fund ($1,200,047)
NOTE 15. DEFICIT RETAINED EARNINGS
A deficit retained earnings of $352,885 and $6,517 exists in the Athletic Complex Fund and
the Cash and Debt Management Fund, respectively.
32
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2000
Unfunded Unfunded Actuarial
Actuarial Actuarial Actuarial Actuarial Annual Accrued Liability
Valuation Value of Accrued Percentage Accrued Covered as a Percentage
Date Assets Liability Funded Liability Payroll of Covered Payroll
12/31/97 $ 31,489,215 $ 39,167,673 80.40% $ 7,678,458 $ 11,791,361 65.12%
12/31/98 35,352,987 42,919,216 82,37% 7,566,229 12,486,300 60.60%
12/31/99 37,889,214 46,007,148 82.36% 8,117,934 13,061,776 62.15%
33
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, 2000
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999
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 2000 1999
ASSETS
Deposits and investments $ 177,096 $ 528,424 $ 1,645,304 $ 671 $ 361,037 $ - $ 4,280,405 $ 6,992,937 $ 3,209,420
Accounts receivable 4,220 - - - 15,286 2,038,397 2,057,903 18,982
Accrued interest receivable 10,085 19,956 - 11,571 - 27,067 68,679 16,833
Prepaids - - 377 - - 377 4,318
Due from other funds 3,824 - - 3,824 -
Due from other governments - 391 956 179,708 - 571,664 184,990
Total assets $ 180 920 $ 542,729 $ 2 057 593 $ 671 $ 552,316 $ 15,286 $ 6,345,869 $ 9,695,384 $ 3,434,543
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable $ 2,200 $ 36 $ 22,078 $ $ 561 $ - $ 4,200,047 $ 4,224,922 $ 124,453
Accrued salaries and wages - - 11,509 5,167 1,915 - 18,591 14,439
Due to other funds 25,000 - 3,824 28,824 31,729
Total liabilities 2,200 36 58,587 5,728 5,739 4,200,047 4 272 337 170,621
FUND EQUITY:
Fund Balances:
Reserve for debt service - - 910,588 - 910,588 910,588
Reserve for historical preservation 1,323 - - - - - - 1,323 1,323
Unreserved, undeslgnated 177,397 542,693 1,088,418 671 546,588 9,547 2,145,822 4 511 11 36 _ 2F352,011
Total fund equity 178 720 542,693 1,999,006 671 546,588 9,547 2,145,822 5,423047 3,263922
Total liabilities and fund equity $ 180.920 $ 542,729 $ 2 057 593 $ 671 $ 552,316 $ 15,286 $ 6,345,8.69 $ 9,695,384 $ 3,434,543
34
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30,1999
Revenues:
Gross receipts tax
General sales tax
Interest income
DEA revenues
Other revenues
Total revenues
Expenditures:
General and administrative
Police department
Parks
Library
Economic development
Debt service
Principal
Interest and fiscal charges
Capital outlay
and maintenance 8,386
Total expenditures 147,220
Other financing sources (uses):
Operating transfers in
Operating transfers out
(167,162)
Total other
financing sources (uses) (167,162)
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
financing uses
Fund balance,
beginning of year
Fund balance, end of year
Police
Drug
Hotel/ Enforce -
Motel ment
Fund Fund
$ 290,910 $ $
12,121 25,733
101,538
216 5,700
303,247 132,971
Half DEA
Penny Task
Sales Tax Force
Fund Fund
Crime
Control and
Prevention
District
Fund
Police
Department
Grant
Funds
- $ - $ - $
2,314,213 - 1,144,826
102,244 252 31,051
30,412
2,416,457 30,664 1,175,877
138,834 5,023 5,226 - -
- 24,561 - 32,542 193,600
- 368,950 - -
325,429
196,888
390,000 -
592,438
3,645 145,234
33,229 1,878,931 32,542 338,834
(379,873) (950,0001
(379,873) - (950,0001
(11,135) 99,742 157,653 (1,878) (112,957)
Car
Rental Tax
Fund
- $
6,300,071
1,353 45,798
98,111
99,464 6,345,869
4,200,047
231,303 -
231,303 4,200,047
13,717
13,717
(118,122) 2,145,822
Totals
200o 1Tgy9
$ 290,910
9,759,110
218,552
101,538
134,439
10,504,549
4,349,130
482,006
368,950
325,429
196,888
390,000
592,438
157,265
6,862,106
$ 288,975
2,832,121
123,403
125,714
228,843
3,599,056
75,002
396,983
370,576
272,496
110,354
345,000
565,588
130,139
2,266,138
13,717 42,973
(1,497,035) (961,626)
(1,483,318) (918,6531
2,159,125 414,265
189,855 442,951 1,841,353 2,549 659,545 127,669 - 3,263,922 2,849,657
$ 178,720 $ 542,693 $ 1,999,006 $ 671 $ 546,588 $ 9,547 $ 2,145,822 $ 5,423,047 $ 3,263,922
35
CITY OF EULESS, TEXAS
BUDGETED SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2000
Hotel/Motel Fund Half Penny Sales Tax Fund
Variance Variance
Fdvu,dLle FdvuI GIJIe
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
Revenues:
Gross receipts tax $ 290,910 $ 325,000 $ (34,090) $ - $ - $ -
General sales tax - - - 2,314,213 2,033,488 280,725
Interest income 12,121 4,000 8,121 102,244 60,000 42,244
DEA revenues - - - -
Other revenues 216 216
Total revenues 303,247 329,000 (25,753) 2,416,457 2,093,488 322,969
Expenditures:
General and administrative 138,834 204,350 65,516 5,226 20,854 15,628
Police department - -
Parks 368,950 410,465 41,515
Library - 325,429 327,454 2,025
Economic Development 196,888 179,756 (17,132)
Debt Service Principal 390,000 390,000 -
Debt Service Interest 592,438 592,440 2
Capital outlay
and maintenance 8,386 8,386
Total expenditures 147,220 212,736 65,516 1,878,931 1,920,969 42,038
Other financing sources (uses):
Operating transfers in - - -
Operating transfers out (167,162) (167,162) (379,873) (379,873) -
Total other
financing sources (uses) (167,162) (167,162) (379,873) (379,873)
Excess (deficiency) of revenues and
and other financing sources over
expenditures and other
financing uses (11,135) (50,898) 39,763 157,653 (207,354) 365,007
Fund balance,
beginning of year 189,855 189,855 1,841,353 1,841,353
Fund balance, end of year $ 178,720 $ 138,957 $ 39,763 $ 1,999,006 $ 1,633,999 $ 365,007
36
(1 of 2)
DEA Task Force Fund Crime Control and Prevention District Fund
variance variance
Favuu a ravui aLlr
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
$ $ $ $ - $ - $
- 1,144,826 970,000 174,826
252 252 31,051 15,000 16,051
- 30,412 30,412
30,664 - 30,664 1,175,877 985,000 190,877
32,542 1,258 (31,284) 193,600 339,853 146,253
150,000 150,000
145,234 157,734 12,500
32,542 1,258 (31,284) 338,834 647,587 308,753
(950,000) (950,000)
(950,000) (950,000)
(1,878) (1,258) (620) (112,957) (612,587) 499,630
2,549 2,549 - 659,545 659,545
$ 671 $ 1,291 $ (620) $ 546,588 $ 46,958 $ 499,630
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2000
Revenues:
Gross receipts tax
General sales tax
Interest income
DEA revenues
Other revenues
Total revenues
Expenditures:
General and administrative
Police department
Parks
Library
Economic Development
Debt Service Principal
Debt Service Interest
Capital outlay
and maintenance
(2 of 2)
Police Department Grant Funds Car Rental Tax Fund
Variance Variance
Favuldl le Favui ciLle
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
$ - $ - $ $ - $ - $ -
- 6,300,071 4,500,000 1,800,071
1,353 1,353 45,798 56,000 (10,202)
98,111 99,252 (1,141)
99,464 99,252 212 6,345,869 4,556,000 1,789,869
4,200,047 3,000,000 (1,200,047)
231,303 112,969 (118,334)
Total expenditures 231,303 112,969 (118,334) 4,200,047 3,000,000 (1,200,047)
Other financing sources (uses):
Operating transfers in 13,717 13,717
Operating transfers out - -
Total other
financing sources
Excess of revenues and
and other financing sources over
expenditures and other
financing uses
Fund balance,
beginning of year
Fund balance, end of year
13,717 13,717
(118,122)
127,669 127,669
(118,122)
2,145,822 1,556,000 589,822
$ 9,547 $ 127,669 $ (118,122) $ 2,145,822 $ 1,556,000 $ 589,822
38
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.
Police Facility Construction Fund — to account for the construction of a police
facility.
General Obligation Capital Projects — 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, 2000
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999
Park
Improvements Street
Certificates of Street Capital
Obligation Assessments Improvements
Fund (1990) Fund Fund
ASSETS
Deposits and investments $ 7,998 $ 44,970 $ 5,190,096
Accrued interest receivable - 39,492
Due from other funds
Total assets $ 7,998 $ 44,970 $ 5,229,588
LIABILITIES AND FUND EQUITY
Accounts payable $ $ $ 254,520
Customer and escrow deposits -
Total liabilities 254,520
Fund Balances:
Reserve for development
agreements _
Unreserved, undesignated 7,998 44,970 4,975,068
Total fund equity 7,998 44,970 4,975,068
Total liabilities and fund equity $ 7,998 $ 44,970 $ 5,229,588
Half -Penny Police G.O.
Sales Tax Developers' Facility Capital
Construction Contribution Construction Projects Totals
in Progress Fund Fund Fund 2000 1999
$ 1,283,980 $ 1,184,924 $ 9,352,843 $ 105,614 $ 17,170,425 $ 7,130,893
26,170 17,733 12,970 96,365 54,837
25,000 25,000 24,400
$ 1,335,150 $ 1,202,657 $ 9,365,813 $ 105,614 $ 17,291,790 $ 7,210,130
$ 79,524 $ $ 694,433 $ $ 1,028,477 $ 181,983
- - 15,333
79,524 694,433 1,028,477 197,316
1,202,657 - - 1,202,657 1,202,910
1,255,626 8,671,380 105,614 15,060,656 5,809,904
1,255,626 1,202,657 8,671,380 105,614 16,263,313 7,012,814
$ 1,335,150 $ 1,202,657 $ 9,365,813 $ 105,614 $ 17,291,790 $ 7,210,130
40
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1999
Revenues:
Interest income
Other revenue
Park
Improvements Street
Certificates of Street Capital
Obligation Assessments Improvements
Fund (1990) Fund Fund
$
$ $ 219,634
Total revenues 219,634
Expenditures:
General and administrative
Parks/recreation/library -
Economic development -
Issuance costs 70,000
Capital outlay and maintenance 3,335,367
Total expenditures 3,405,367
Excess (deficiency) of revenues
over expenditures - (3,185,733)
Other financing sources (uses):
Proceeds from issuance of bonds 4,300,000
Operating transfers in 662,220
Operating transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses
Fund balances, beginning of year
Fund balances, end of year
4,962,220
1,776,487
7,998 44,970 3,198,581
$ 7,998 $ 44,970 $ 4,975,068
41
Half -penny Police G.O.
Sales tax Developers' Facility Capital
Construction Contribution Construction Projects Totals
in Progress Fund Fund Fund 2000 1999
$ 78,354 $ 74,027 $ 205,450 $ 52,433 $ 629,898 $ 390,088
19,869 - 19,869 2,738
78,354 93,896 205,450 52,433 649,767 392,826
- 344,941 344,941 -
961,857 - - 961,857 135,677
36,423 - - 36,423 1,453
36,100 - 76,000 146,000 328,100 -
328,407 9 1,739,482 9,843,720 15,246,985 2,939,477
1,362,787 9 1,815,482 10,334,661 16,918,306 3,076,607
(1,284,433) 93,887 (1,610,032) (10,282,228) (16,268,539) (2,683,781)
1,000,000 8,600,000 10,188, 891 24, 088, 891 -
342,000 950,000 92,647 2,046,867 635,000
- (616,720) - (616,720) -
1,342,000 (616,720) 9,550,000 10,281,538 25,519,038 635,000
57,567 (522,833) 7,939,968 (690) 9,250,499 (2,048,781)
1,198,059 1,725,490 731,412 106,304 7,012,814 9,061,595
$ 1,255,626_ $ 1,202,657 $ 8,671,380 $ 105,614 $ 16,263,313 $ 7,012,814
42
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises - where the intent of the government's council is
that the costs of providing goods or services to the general public on a continuing basis be
financed or recovered primarily through user charges; or where the government's council has
decided that periodic determination of net income is appropriate for accountability purposes.
Water and Sewer Fund - to account for the acquisition, operation and
maintenance of a municipal water and sewer utility, supported primarily by user
charges to the public.
Drainage Utility Fund - to account for the acquisition, operation and
maintenance of a municipal drainage utility, supported primarily by user
charges.
Recreation Classes - to account for the operation of recreational programs and
activities which are offered to groups and individuals on a fee basis.
Golf Course Fund - to account for the operation and maintenance of the golf
course, supported primarily by user charges.
Softball Complex Fund - to account for the operation and maintenance of the
softball complex, supported primarily by user charges.
Athletic Complex Fund - to account for the operation and maintenance of the
athletic complex, supported primarily by user charges.
Arbor Daze Fund — to account for the receipts and disbursements of the Arbor
Daze Festival, supported primarily by user charges.
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999
ASSETS
Current assets:
investments
Accounts receivable and unbilled revenue less allowance
for uncollectibles of $1,463 for water and sewer
and $6,639 for drainage utility
Accrued interest receivable
Prepaids and deposits
Inventory
Due from other funds
Total current assets
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond emergency:
Short-term investments
Property sale proceeds account:
Investment with paying agent
Capital projects account:
Cash and cash equivalents
Short-term investments
Interest receivable on investments
Total restricted assets
Bond issuance cost
Less accumulated amortization
Net bond issuance cost
Utility plant and equipment in service, at cost
Land and Building
Equipment
Improvements
Construction in progress
Waterworks and sanitary sewer system
Less accumulated depreciation
Net utility plant and equipment in service
TOTAL ASSETS
Water and
Sewer
$ 8,722,768
1,947,617
158,843
56,000
54,440
289,793
11, 229, 461
11,894
500,000
356,163
355,428
3,308,733
17,783
4,55U,U01
145,373
74,850
T0, 523
1,528,966
2,194, 922
184,601
1,066,961
29,945,734
34, 921,184
11,o1i,000
17,603,851
$ 33,453,836
Drainage
Utility
Recreation
Classes
$ 969,775 $ 104,359
33,251 274
5,041 -
310
1,008,061—11:14,2fr
107,473
53,738
53,135
89,000
6,510 1,376
2,706,729
2,8U2,239 1,3%b
375,142 825
2,427,097 551
$ 3,488,899 $ 105,494
43
Golf
Course
$ 327,462
171,931
2,135
5,323
104,588
611,439
116,003
27,446
88,55/
Softball
Complex
$ 549,359 $
1,572
1,019
7,853
22,197
359,000
941,000
42,879
9,444
33,435
348,135 1,369,473
979,386 46,211
10, 271, 971 16,558
11, 599,492 1,432, 242
1,052,588 29,585
10, 546, 904 1,402,657
$ 11, 246, 900 $ 2,377,092
Athletic
Complex
Arbor
Daze
77,506 $ 199,149
1,695
/9,2U1
14,259
3,310
10,949
5,197, 050
151,046
5,348,096
L,G4G
4,975,854
$ 5,066,004
693
199,842
00
$ 199,842
(1 of 2)
Totals
2000 1999
$ 10,950,378 $ 8,544,956
2,154, 645 1,836,616
167,038 206,372
70,179 57,778
182,920 168,038
648,793 697,294
14,1 /3,953 11,511,054
11,894
500,000
356,163
355,428
3,308,733
17,783
4,550,001
425,987
168,788
25i,199
11,122
500,000
480,000
538,112
794,072
10,554
2,333,861)
365,987
141,136
224,851
8,532,624 18, 234, 933
3,379,451 3,009,507
13,179,859 3,623,479
1,066,961 -
29,945,734 29,813,730
56,104,629 54,681,649
19,147,715 17,284,415
36,956,914 37,397,234
$ 55,938,067 $ 51,466,999
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999
Water and Drainage Recreation
Sewer Utility Classes
LIABILITIES AND FUND EQUITY
Current liabilities:
oyall� from -current assets:
Accounts payable $ 999,381 $ 2,619 $ 4,362
Accrued salaries and wages 172,252 2,088 234
Customer and escrow deposits - -
Deferred revenue
Total current liabilities 1,171,633 4,707 4,596
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,165,645 -
Current portion of bonds payable 445,000 120,000
Current portion of capital leases payable - -
Current portion of tax notes payable - -
Accrued interest 31,137 25,875
Bonds payable 4,170,000 1,535,000
Capital leases payable - -
Tax notes payable -
Deferred revenue 49,273
Due to other funds -
Total liabilities 7,032,688 1,685,582 4,596
Fund equity:
Contributed capital:
From state
From general fund From subdividers 15,705,558
From Special Revenue Fund From Environmental Protection Agency 239,617
From Trinity River Authority 15,000
1b,bU,1 (b
Accumulated depreciation on assets
acquired with contributed capital 8,030,228
Net contributed capital 7,929,947
Retained earnings (deficit):
Reserved for:
Debt service and construction 37,718
Recycling 31,311 -
Emergency 500,000
Outstanding work 39,405
Total reserved -
Unreserved 17,1582,7b7 1,803,317 100,898
Total retained earnings (deficit) 1tt,4y1,201 1,esUa,d1 r 1uu,tsts
Total fund equity 26,421,148 1,803,317 100,898
TOTAL LIABILITIES AND FUND EQUITY $ 33,453,836 $ 3,488,899 $ 105,494
45
(2 of 2)
Golf Softball Athletic Arbor Totals
Course Complex Complex Daze 2000 1999
$ 70,788 $ 30,725 $ 2,821 $ 29,050 $ 1,139,746 $ 577,805
64,701 18,518 1,564 - 259,357 197,652
- - - 7,500
90,592 90,592 71,131
226,081 49,243 4,385 29,050 1,489,695 854,088
- - 1,165,645 1,144,302
160,000 75,000 800,000 670,000
9,768 - 9,768 15,178
- - 195,000
11,889 68,901 77,823
9,575,000 1,720,000 17,000,000 14,355,000
16,035 - 16,035 25,803
100,000 100,000 195,000
- 49,273 57,073
289,793 359,000 - 648,793 689,965
10,376,677 1,856,132 363,385 29,050 21,348,110 18,279,232
500,000 - 500,000 500,000
1,700,426 1,700,426 1,700,426
- - 15,705,558 15,705,558
405,633 2,855,078 3,260,711 3,260,711
- 239,617 239,617
22,097 - 37,097 37,097
42/,(3U - 5,Ubb,bU4 21,443,4U9 21,443,409
8,030,228 7,608,897
427,730 5,055,504 13,413,181 13,834,512
37,718 49,472
31,311 31,311
500,000 500,000
39,405 39,405
- - bU8,434 620,188
442,493 520,960 (352,885) 170,792 20,558,341 18,/33,Ub/
442;493- 5[U,13U (352,885) 1 (0,/92 21,1 /b,//b 19,353,255
870,223 520,960 4,702,619 170,792 34,589,957 33,187,767
$ 11,246,900 $ 2,377,092 $ 5,066,004 $ 199,842 $ 55,938,067 $ 51,466,999
46
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30,1999
Water and Drainage Recreation Golf
Sewer Utility Classes Course
Operating revenues:
Water service $ 7,657,132 $ $ $
Sewer service 3,730,338
Drainage fees 610,315 -
Recreation fees - - 323,496 -
Service fees and miscellaneous 1,463,495 - 3,668,544
Total operating revenues 11,t3bU,UEib ti1U,31b 343,4Jbb 3,bbti,b44
Operating expenses:
General and administrative 650,148 -
Water production 3,720,528
Water distribution 487,390
Utility engineering 337,400 -
Sewage collection and treatment 2,157,998
Nondepartmental 2,154,479
Geographic information 210,125
Service center 684,067 -
Drainage 329,422 -
Recreation classes - 287,883 -
Golf course - 974,179
Pro Shop 403,748
Food and beverage 814,273
Conference center 284,339
Cart operations 146,320
Driving range 8,801
Athletic complex .
Softball complex
Arbor Daze - - - -
Depreciation 1,081,603 81,202 275 504,036
Amortization 12,761 5,971 - 6,198
Total operating expenses 11,4yb,4yy 41b,bb LtstS,lbtl 3,141,b 4
Operating income (loss) 1,354,466 193,720 35,338 526,650
Nonoperating revenues (expenses)
Investment income 707,086 51,817 2,170 8,841
Interest on bonds (62,856) (112,343) (575,039)
Total nonoperating revenues (expenses), net b44,13U (bU,b1b) 2,1 /U (bEiti,1at5)
Income (loss) before operating transfers 1,998,696 133,194 37,508 (39,548)
Operating transfers in - 205,035
Operating transfers out (967,395) (31,854) -
Net income (loss) 1,031,301 101,340 37,508 165,487
Add depreciation on fixed assets
acquired with contributed capital 421,331
Increase (decrease) in retained eamings 1,452,632 101,340 37,508 165,487
Retained eamings (deficit), beginning of year 17,038,569 1,701,977 63,390 277,006
Retained eamings (deficit), end of year $ 18,491,201 $ 1,803,317 $ 100,898 $ 442,493
47
Softball Athletic Arbor Totals
Complex Complex Daze :tuuu 1 aau
$ $ $ $ 7,657,132 $ 7,034,082
3,730,338 3,568,056
610,315 587,710
- - - 323,496 230,489
1,174,707 102,918 659,471 7,069,135 6,117,475
1,1 /4,/U/ 'IU2,y'Iti tO&,4/1 1:1,3JU,41b 1 /,5J/,t511
16,642 666,790 640,413
3,720,528 3,214,048
487,390 446,715
337,400 272,438
2,157,998 1,763,864
2,154,479 2,123,422
210,125 167,287
684,067 660,435
- 329,422 195,397
287,883 211,071
- 974,179 961,869
403,748 373,755
814,273 864,311
- 284,339 209,406
146,320 151,886
8,801 8,480
55,044 55,044 162,349
924,338 - - 924,338 796,294
- 623,588 623,588 524,133
10,063 186,121 - 1,863,300 1,719,842
2,042 679 - 27,651 22,651
9ib,443 10t1,46b b1J,btSb 1 /,1 b'I ,bb3 'I o,4aU,ubb
238,264 (155,568) 35,883 2,228,753 2,047,746
23,227 4,314 8,573 806,028 519,235
(88,139) - - (838,377) (903,973)
(fi4,912) 4,314 ts,o/3 (31,345) OM, /3tf)'
173,352 (151,254) 44,456 2,196,404 1,663,008
17,628 - - 222,663 221,383
- (17,628) (1,016,877) (1,336,192)
190,980 (168,882) 44,456 1,402,190 548,199
421,331 421,331
190,980 (168,882) 44,456 1,823,521 969,530
329,980 (184,003) 126,336 19,353,255 18,383,725
$ 520,960 $ (352,885) $ 170,792 $ 21,176,776 $ 19,353,255
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1999
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 in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Water and
Sewer
$ 1,354,466
1,094,364
(251,837)
15,536
(20, 712)
(6,297)
548,332
62,473
21,343
(60,000)
(7,800)
1,395,402
2, / 49, 666
(62, 856)
(415,000)
Drainage Recreation
Utility Classes
$ 193,720 $ 35,338
87,173 275
10,799 (274)
2,032
2,048
234
2,584
(15,135)
(7,500)
//,921
271,641
(112, 343)
(110,000)
3,260,000
(967,395) (31,854)
1,814,749 (254,197)
(1,198,965)
(1,198, 965)
(2,514,661)
123,837
742,909
(1,64/,915)
1,717,737
7,372,353
$ 9,090,090
4,316
39, 653
51,144 2,170
51,144 2,170
68,588 41,823
901,187 62,536
$ 969,775 $104, 359
49
Golf
Course
Softball
Complex
Athletic
Complex
Arbor
Daze
Totals
2000 1999
$ 526,650 $ 238,264 $ (155,568) $ 35,883 $ 2,228,753
510,234
(171,930)
18,965
10,323
(12,305)
(28,254)
6,993
(15,536)
12,105
(1,572)
14,000
(3,351)
(988)
14,819
6,022
(11,636)
20,294
338,7E-d_ 29,30-
865,434 26/,663
(574,793) (88,139)
(9,168)
(75,000) (70,000)
(290,000) -
(15,178)
185,000
205,035 17,628
(574,104) (140,511)
_(224,015)_
(224,015)
186,800
4,708
(6,638)
1,118
(14,000)
(833)
171,155
15, 58 /
(17,628)
(17,628)
(693)
29,050
OOP
28,35/
64, 24U
103,492 22,317 4,314 8,573
---iri3,472- - 227 7- 4,314 8,5/3
170,807 149,469 2,273 72,813
156,655 399,890 75,233 126,336
$ 327,462 $ 549,359 $ 77,506 $ 199,149
1,890,951
(414,814)
48,501
(12, 401)
(14,882)
532,891
90,755
(41,172)
13,843
(60,000)
11,661
2,U45,ddd
4,2/4,U8b
(838,131)
(9,168)
(670,000)
(290,000)
(15,178)
3,445,000
222,663
(1,016,877)
828,309-
$ 2,047,746
1,742,493
(105,084)
341,507
213,578
(10,839)
76,602
47,605
(350,569)
44,727
(8,968-)
1,991,U5'L'
-4,$7$-
(886,128)
(22,168)
(610,000)
(190,000)
40,981
221,383
(1,336,192)
277112;1Ny
(1,422,980) (806,031)
(1,422,98U) Z$0-6;1')'3'i'j'
(2, 514, 661)
123,837
934,919
(1,455,905)-
2, 223, 510
9,094,190
$ 11,317,700
(20,148)
32,423
600,016
61'2; 2$i-
1, 062, 934
8,031,256
$ 9,094,190
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999
(1 of 2)
2000 1999
ASSETS
Current assets:
Deposits and investments $ 8,722,768 $ 6,823,119
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 in 2000 and 1999 1,947,617 1,695,780
Accrued interest receivable 158,843 201,895
Prepaids and deposits 56,000 35,288
Inventory 54,440 48,143
Due from other funds 289,793 305,329
Total current assets 11,229,461 9,109,554
Restricted assets:
Revenue bond debt service:
Cash with paying agent 11,894 11,122
Revenue bond emergency:
Short-term investments 500,000 500,000
Property sale proceeds account:
Investments with paying agent 356,163 480,000
Capital projects account:
Cash and cash equivalents 355,428 538,112
Short-term investments 3,308,733 794,072
Interest receivable on investments 17,783 10,554
Total restricted assets 4,550,001 2,333,860
Bonds issuance cost
Less accumulated amortization
Net bond issuance cost
145,373 85,373
74,850 62,089
70,523 23,284
Utility plant and equipment in service, at cost:
Land and building 1,528,966 1,528,966
Equipment 2,194,922 2,194,922
Improvements 184,601 184,601
Construction in progress 1,066,961
Waterworks and sanitary sewer system 29,945,734 29,813,730
34,921,184 33,722,219
Less accumulated depreciation I /,3I /,33J 10,L30,/3U
Net utility plant and equipment in service 17,603,851 17,486,489
TOTAL ASSETS $ 33,453,836 $ 28,953,187
51
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999
LIABILITIES AND FUND EQUITY
Current liabilities:
Payablc fioni current assets:
Accounts payable
Accrued salaries and wages
Total current liabilities
(2 of 2)
2000 1999
$ 999,381 $ 451,049
172,252 109,779
1,171,633 560,828
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,165,645 1,144,302
Current portion of bonds payable 445,000 415,000
Accrued interest 31,137 31,137
Bonds payable 4,170,000 1,355,000
Deferred revenue 49,273 57,073
Total liabilities 7,032,688 3,563,340
Fund equity:
Contributed capital:
From subdividers
From Environmental Protection Agency
From Trinity River Authority
Accumulated depreciation on assets
acquired with contributed capital
Net contributed capital
15,705,558 15,705,558
239,617 239,617
15,000 15,000
15,960,175 15,960,175
8,030,228 7,608,897
7,929,947 8,351,278
Retained earnings:
Reserved for:
Debt service and construction 37,718 49,472
Recycling 31,311 31,311
Emergency 500,000 500,000
Outstanding work 39,405 39,405
Total reserved 608,434 620,188
Unreserved 17,s61,7b( 16,418,381
Total retained earnings 18,491,201 17,038,569
Total fund equity 26,421,148 25,389,847
TOTAL LIABILITIES AND FUND EQUITY $ 33,453,836 $ 28,953,187
52
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1999
2000 1999
Operating revenues:
Water service $ 7,657,132 $ 7,034,082
Sewer service 3,730,338 3,568,056
Service fees and miscellaneous 1,463,495 840,766
Total operating revenues 12,850,965 11,442,904
Operating expenses:
General and administrative 650,148 640,413
Water production 3,720,528 3,214,048
Water distribution 487,390 446,715
Utility engineering 337,400 272,438
Sewage collection and treatment 2,157,998 1,763,864
Nondepartmental 2,154,479 2,123,422
Geographic information 210,125 167,287
Service center 684,067 660,435
Depreciation 1,081,603 1,016,640
Amortization 12,761 7,761
Total operating expenses 11,496,499 10,313,023
Operating income 1,354,466 1,129,881
Nonoperating revenues (expenses)
Investment income 707,086 466,107
Interest on bonds (62,856) (107,325)
Total nonoperating revenues
(expenses), net 644,230 358,782
Income before operating transfers 1,998,696 1,488,663
Operating transfers out (967,395) (1,286,889)
Net income 1,031,301 201,774
Add depreciation on fixed assets acquired
with contributed capital 421,331 421,331
Increase in retained earnings 1,452,632 623,105
Retained earnings, beginning of year 17,038,569 16,415,464
Retained earnings, end of year $ 18,491,201 $ 17,038,569
53
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1999
(1 of 2)
2000 1999
General and administrative:
Salaries and benefits $ 257,114 $ 308,715
Postage and supplies 61,614 51,426
Maintenance of office machinery 176 6,627
Bad debts - 18,653
Other 331,244 254,992
650,148 640,413-
Water production:
Salaries and benefits 389,818 339,319
Operating supplies and expense 78,308 110,876
Maintenance of structures and equipment 21,145 11,895
Contracts - Trinity River Authority 171,374 (94,949)
Water - Trinity River Authority 3,059,883 2,846,907
3,720,528 3,214,048
Water distribution:
Salaries and benefits 364,695 351,893
Operating supplies and expenses 28,735 30,100
Maintenance of structures and equipment 92,110 48,530
Sewer - Trinity River Authority 1,850 16,192
487,390 446,115
Engineering:
Salaries and benefits 227,831 207,339
Operating supplies and expenses 109,569 65,099
337,400 2/2,438
Sewage collection and treatment:
Salaries and benefits 220,010 222,176
Operating supplies and expenses 56,085 91,027
Maintenance of structures and equipment 1,966 1,844
Treatment fees - Trinity River Authority 1,879,937 1,448,817
2,157,998 1,763,864
Nondepartmental:
Salaries and benefits 592,781 558,428
Operating supplies and expenses 903,302 934,787
Contractual services 21,500 18,000
Franchise fees 636,896 612,207
2,154,4 / 9 2,123,422
54
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1999
(2 of 2)
2000 1999
Geographic information:
Salaries and benefits $ 113,768 $ 113,708
Operating supplies and expenses 6,037 10,692
Maintenance of machinery and equipment 87,530 42,887
Contractual services 2,790
210,125 167,287—
Service center:
Salaries and benefits 266,690 256,595
Motor fuel and supplies 339,880 306,354
Maintenance of structures and equipment 68,574 87,372
Other 8,923 10,114
684,067 660,435—
Depreciation and amortization
Total operating expenses
1,094,364
$ 11,496,499
1,024,401
$ 10,313,023
55
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1999
OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue
Due from other funds
Prepaids and deposits
Inventory
Increase (decrease) due to net changes in:
Accounts payable
Accrued salaries and wages
Customer and escrow deposits
Bond issue costs
Deferred revenue
Total adjustments
Net cash provided by operating activities
2000 1999
$ 1,354,466 $ 1,129,881
1,094,364 1,024,401
(251,837) (157,420)
15,536 14,671
(20,712) 220,855
(6,297) (7,659)
548,332 88,227
62,473 2,226
21,343 44,727
(60,000)
(7,800) (7,800)
1,395,402 1,222,228
2,749,868 2,352,109
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds (62,856) (107,325)
Reduction in bonds payable (415,000) (385,000)
Proceeds from bond issuance 3,260,000 -
Operating transfers out (967,395) (1,286,889)
Net cash provided by (used in) noncapital financing activities 1,814,749 (1,779,214)
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of utility plant and equipment in service
Net cash used in capital and related financing activities
(1,198,965) (662,251)
(1,198,965) (662,251)
INVESTING ACTIVITIES
Purchase of investment securities (2,514,661) (20,148)
Proceeds from sale of investment securities 123,837 32,423
Interest received on investments 742,909 426,669
Net cash provided by (used in) investing activities (1,647,915) 438,944
Net increase in cash and cash equivalents 1,717,737 349,588
Cash and cash equivalents, beginning of year 7,372,353 7,022,765
Cash and cash equivalents, end of year $ 9,090,090 $ 7,372,353
56
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 2000
ASSETS
Current assets:
ant investments
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463
Accrued interest receivable
Prepaids and deposits
Inventory
Due from other funds
Total current assets
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond emergency:
Short-term investments
Property sale proceeds account:
Investments with paying agent
Capital projects account:
Cash and cash equivalents
Short-term investments
Interest receivable on investments
Total restricted assets
Bonds issuance cost
Less accumulated amortization
Net bond issuance cost
Utility plant and equipment in service, at cost:
Land and building
Equipment
Improvements
Construction in progress
Waterworks and sanitary sewer system
Less accumulated depreciation
Net utility plant and equipment in service
TOTAL ASSETS
Operating
Account
$ 5,817,911
1,947,617
132,043
55,518
289,793
8,242,tS82-
500,000
Capital
Projects
Account
355,428
3,308,733
15,050
500,000— - ,G75,211-
85,373 60,000
69,850 5,000
15, 523 53, 000-
1,528,966
1,534,850
184,601
29,813,730
33,062,147-
17,317,333
15,744,814
$ 24,503,219
332,758
1,066,961
132,004
1,531, /23
1,531,723
$ 5,265,934
57
(1 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 2000
$ 38,022 $ 2,837,440 $ 29,395
26,800
482
54,440
92,944 2,864,240 29,395
$
$ 8,722,768
1,947,617
158,843
56,000
54,440
289,793
11,229,461
11,894 - 11,894
- 500,000
356,163 356,163
- - 355,428
3,308,733
2,733- 17,783
370, i YU_ 4,55U,001
145, 373
74,850
- 70,523
- 1,528,966
79,228 248,086 2,194,922
184,601
1,066,961
29,945,734
79,228 248,086 - 34,921,184
17,317,333
79,228 248,086 17,603,851
$ 370,790 $ 172,172 $ 3,112,326 $ 29,395 $ - $ 33,453,836
58
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 2000
Capital
Operating Projects
Account Account
LIABILITIES AND FUND EQUITY
Current liabilities:
current assets:
Accounts payable $ 867,310 $ 79,542
Accrued salaries and wages 154,099
Total current liabilities 1,021,409 79,542-
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,165,645
Current portion of bonds payable 445,000
Accrued interest
Bonds payable 910,000
Deferred revenue 49,273
Total liabilities 3,591,327
Fund equity:
Contributed capital:
From subdividers
From Environmental Protection Agency
From Trinity River Authority
Accumulated depreciation on assets
acquired with contributed capital
Net contributed capital
13,789,751
239,617
15,000
14, 044, 368
8,030,228
6,014,140
01,
3,260,000
3,339,542
Retained earnings:
Reserved for:
Debt service and construction
Recycling 31,311
Emergency 500,000
Outstanding work
Total reserved 531,311
Unreserved 14,366,441 1,926,392
Total retained earnings 14,897,752 1,926,392
Total fund equity 20,911,892 1,926,392
TOTAL LIABILITIES AND FUND EQUITY $ 24,503,219 $ 5,265,934
59
(2 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 2000
$ 18,463 $ 34,066 $
18,153 -
36,616 34,066
$
$ 999,381
172,252
1,171,633
1,165,645
445,000
31,137 - 31,137
4,170,000
- 49,273
31,137 36,616 34,066 7,032,688
I.
NO
1,915,807 15,705,558
239,617
15,000
1,915,807 15,960,175
8,030,228
1,915,807 7,929,947
37,718 37,718
- 31,311
500,000
39,405 39,405
37,718 39,405 - 608,434
301,935 96,151 3,078,260 29,395 (1,915,807) 17,882,767
339,653 135,556 3,078,260 29,395 (1,915,807) 18,491,201
339,653 135,556 3,078,260 29,395 26,421,148
$ 370,790 $ 172,172 $ 3,112,326 $ 29,395 $ $ 33,453,836
60
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 2000
Capital
Operating Projects
Account Account
Operating revenues:
Water service $ 7,657,132 $
Sewer service 3,730,338
Service fees and miscellaneous 720,805
Total operating revenues 12,108,275
Operating expenses:
General and administrative 441,535 25,586
Water production 3,720,528
Water distribution 487,390
Utility engineering 337,400
Sewage collection and treatment 2,157,998
Nondepartmental 2,154,479
Geographic information 210,125
Service center
Depreciation 1,081,603
Amortization 7,761 5,000
Total operating expenses 10,598,819 30,586
Operating income (loss) 1,509,456 (30,586)
Nonoperating revenues (expenses)
Investment income 407,707 143,352
Interest on bonds
Total nonoperating revenues
(expenses), net 407,707 143,352
Income (loss) before operating transfers 1,917,163 112,766
Operating transfers from other funds or other water
and sewer accounts 415,000 150,000
Operating transfers to other funds or other water
and sewer accounts (2,098,900)
Net income (loss) 233,263 262,766
Add depreciation on fixed asset acquired
with contributed capital 421,331
Increase (decrease) in retained earnings 654,594 262,766
Retained earnings, beginning of year 14,243,158 1,663,626
Retained earnings, end of year $ 14,897,752 $ 1,926,392
61
Bond Service
Reserve Center
Account Account
.00
Impact Debt Year Ended
Fees Service September 30,
Account Account Eliminations 2000
$ $ $ $ 7,657,132
3,730,338
742,690 1,463,495
/42,690 12,850,965
- 181,614 1,413 - 650,148
3,720,528
487,390
- 337,400
2,157,998
- - 2,154,479
- 210,125
684,067 - 684,067
- - 1,081,603
12,761
684,067 181,614 1,413 - 11,496,499
(684,067) 561,076 (1,413) - 1,354,466
21,577 133,696 754 - 707,086
- (62,856) - (62,856)
21,577 133,696 (62,102) 644,230
21,577 (684,067) 694,772 (63,515) - 1,998,696
680,095 - 447,806 (1,692,901)
(146,396) - (415,000) 1,692,901 (967,395)
(124,819) (3,972) 694,772 (30,709) 1,031,301
- - 421,331
(124,819) (3,972) 694,772 (30,709) 1,452,632
464,472 139,528 2,383,488 60,104 (1,915,807) 17,038,569
$ 339,653 $ 135,556 $ 3,078,260 $ 29,395 $ (1,915,807) $ 18,491,201
62
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 2000
Total
Operating Construction September 30,
Account in Progress 2000
ASSETS
Current assets:
G.f,,,. K.. investments $ 627,540 $ 342,235 $ 969,775
Accounts and unbilled revenue
less allowance for uncollectibles of
$6,369 for drainage utility 33,251 33,251
Accrued interest receivable 5,041 5,041
Total current assets 665,832 342,235 1,008,067
Bond issuance cost 107,473 107,473
Less accumulated amortization 53,738 53,738
Net bond issuance cost 53,735 53,735
Utility plant and equipment
in service, at cost:
Land 89,000 89,000
Equipment 6,510 6,510
Improvements 2,706,729 2,706,729
2,802,239 2,801,189-
Less accumulated depreciation 375,142 375,142
Net utility plant and equipment in service 2,427,097 2,427,097
TOTAL ASSETS $ 3,146,664 $ 342,235 $ 3,488,899
LIABILITIES AND FUND EQUITY
Current liabilities:
Al.,,.,..i(k.3 Ncyc.Lle $ 2,619 $ $ 2,619
Accrued salaries and wages 2,088 2,088
Total current liabilities 4,707 4,707
Current portion of bonds payable 120,000 120,000
Accrued interest 25,875 25,875
Bonds payable 1,535,000 1,535,000
Total liabilities 1,685,582 1,685, 582
Retained earnings:
Unreserved 1,461,082 342,235 1,803, 317
Total fund equity 1,461,082 342,23b 1,803,31 /
TOTAL LIABILITIES AND FUND EQUITY $ 3,146,664 $ 342,235 $ 3,488,899
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 2000
Operating revenues:
Drainage fees
Total operating revenues
Year Ended
Operating Construction Elimi- September 30,
Account in Progress nations 2000
$ 602,815 $ 7,500 $ $ 610,315
602,815 7,500 610,315
Operating expenses:
Drainage 254,967
Depreciation 81,202
Amortization 5,971
74,455
329,422
81,202
5,971
Total operating expenses 342,140 74,455 416,595
Operating income (loss) 260,675 (66,955) - 193,720
Nonoperating revenues (expenses):
Investment income 34,268 17,549 51,817
Interest on bonds (112,343) (112,343)
Total nonoperating revenues
(expenses), net (78,075) 17,549 (60,526)
Income (loss) before
operating transfers 182,600 (49,406) 133,194
Operating transfers out (31,854) - (31,854)
Increase (decrease) in
retained earnings 150,746 (49,406) - 101,340
Retained earnings,
beginning of year 1,310,336 391,641 1,701,977
Retained earnings,
end of year $ 1,461,082 $ 342,235 $ $ 1,803,317
64
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by
one department to other departments of the government and to other government units, on a
cost reimbursement basis.
Equipment Replacement Fund - to account for the accumulation of funds planned
to be used in replacing existing equipment. Funding is provided annually by the
user departments.
Insurance Fund - to account for the revenue and expenses resulting from
providing health insurance to the City's employees.
Risk Management Fund - to account for the revenue and expenses applicable to
the self-insurance program for worker's compensation and for general liability and
property claims.
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, 2000
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999
ASSETS
Deposits and investments
Accounts receivable
Accrued interest receivable
Total current assets
Utility plant and equipment,
at cost
Equipment
Improvements
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
(deficit)
TOTAL LIABILITIES AND
RETAINED EARNINGS
Equipment
Replacement
Fund
$ 425,678
6,674
432,352
2,629,089
40,390
2,669,479
1,251,648
Insurance
Fund
$ 329,484
8,043
337,527
54,735 11,245
54,735 11,245
Risk
Manage-
ment
Fund
$ 658,017
6,398
664,415
Cash and
Debt
Manage-
ment Fund
2000
$ 1,640 $ 1,414,819
21,115
1,640 1,435,934
2,695,069
40,390
2,735,459
1,251,648
Total
1999
$ 1,544,142
27,117
11,658
1,582,917
2,502,247
40,390
2,542,637-
I ,G77,030
1,417,831 54,735 11,245 - 1,483,811 1,242,801
$ 1,850,183 $ 392,262 $ 675,660 $ 1,640 $ 2,919,745 $ 2,825,718
$ 2,530
2,530
1,847,653
1,847,653
$ 10,050
7,027
18,213
35,290
41,000
41,000
315,912
356,972
$ 2,253
3,528
42,309
48,090
200,000
200,000
400,000
227,570
627,570
$ 1,850,183 $ 392,262 $ 675,660
$ - $
8,157
8,157
14,833
18,712
60,522
94,067
41,000
200,000
200,000
441,000
(6,517) 2,3s4,578
(6,517) 2,825,678
$ 1,640 $ 2,919,745
$ 21,303
23,625
127,653
172,581
41,000
200,000
200,000
441,000
2,212,1, /
2,653,137
$ 2,825,718
65
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1999
Equipment
Replacement
Fund
Insurance
Fund
Risk
Manage-
ment
Fund
Cash and
Debt
Manage-
ment Fund
Operating revenues:
Insurance premiums $ $ 1,575,958 $ 297,583 $
Service fees and
miscellaneous 411,402
Total operating revenues 411,402
Operating expenses:
General and
administrative
Insurance costs
Depreciation
Total operating expenses
Operating income (loss)
Non -operating revenues:
Investment income
Gain on sale of
fixed assets
1,575,958 297,583
47,355 101,316
1,471,999
355,210
402,565
8,837
31,431
38,891
Total nonoperating
revenues 70,322
Income (loss) before
operating transfers 79,159
Operating transfers in
Operating transfers out
Net income (loss)
79,159
Retained Earnings,
beginning of Year 1,768,494
Retained Earnings (Deficit),
end of Year $ 1,847,653
Total
2000 1999
$ 1,873,541 $ 1,794,264
67,353 478,755 534,040
67,353 2,352,296 2,328,304
404,036 73,870 626,577 547,921
233,024 1,705,023 1,721,862
355,210 311,875
1,573,315 637,060 73,870 2,686,810 2,581,658
2,643 (339,477) (6,517) (334,514) (253,354)
13,825 33,000 78,256 54,019
38,891 19,082
13,825 33,000 117,147 73,101
16,468 (306,477) (6,517) (217,367) (180,253)
175,000 320,000 - 495,000 620,000
(39,016) (66,076) - (105,092) (107,759)
152,452 (52,553) (6,510 112,o41 331,988-
204,520 680,123 - 2,653,137 2,321,149
$ 356,972 $ 627,570 $ (6,517) $ 2,825,678 $ 2,653,137
66
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1999
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Management Total
Fund Fund Fund Fund 2000 1999
OPERATING ACTIVITIES
Operating income (loss) $ 8,837 $ 2,643 $ (339,477) $ (6,517) $ (334,514) $ (253,354)
Adjustments to reconcile operating
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation expense 355,210 355,210 311,875
(Increase) decrease due to net
changes in:
Receivables - 18,905 95 74 19,074 (13,473)
Increase (decrease) due to net
changes in:
Accounts payable 1,089 221 (7,780) - (6,470) (51,241)
Accrued salaries and wages - (14,621) 2,861 6,847 (4,913) 1,503
Accrued insurance claims (88,712) 21,581 - (67,131) 32,653
Total adjustments :356,299 (84,207) 16,1b( 6,921 295,770 -2/3 ,7T7-
Net cash provided by (used in)
operating activities 365,136 (81,564) (322,720) 404 (38,744) 27,963
NONCAPITAL FINANCING
ACTIVITIES
Operating transfers in 175,000 320,000 495,000 620,000
Operating transfers out (39,016) (66,076) (105,092) (107,759)
Net cash provided by
noncapital financing activities 135,984 253,924 389,908 512,241
CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of equipment (567,764) (54,735) (11,245) (633,744) (458,930)
Sale of equipment 76,415 - 76,415 30,950
Net cash used in capital and
related financing activities (491,349) (54,735) (11,245) (557,329) (427,980)
INVESTING ACTIVITIES
Interest received on
investments 25,924 13,825 37,093 - 76,842 58,516
Net increase (decrease) in cash
and cash equivalents (100,289) 13,510 (42,948) 404 (129,323) 170,740
Cash and cash equivalents,
beginning of year 525,967 315,974 700,965 1,236 1,544,142 1,373,402
Cash and cash equivalents,
end of year $ 425,678 _$ 329,484 $ 658,017 $ 1,640 $ 1,414,819 $ 1,544,142
67
AGENCY FUNDS
Agency funds are used to account for assets held by the government as an agent for
individuals, private organizations, other governments and/or other funds.
DEA Task Force - to account for assets and liabilities received from the DEA
task force that are to be distributed to other participating entities.
Stars Center Escrow — to account for investments held on -behalf of the Dallas
Stars until the bond issuance is retired.
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999
DEA
Stars Task
Center Force Total
Escrow Fund 2000 1999
Assets:
Deposits and investments $ 1,995,068 $ 8,588 $ 2,003,656 $ 25,491
Total assets $ 1,995,068 $ 8,588 $ 2,003,656 $ 25,491
Liabilities and Fund Balance:
Due to other entities $ 1,995,068 $ $ 1,995,068 $
Due to other
governments 8,588 8,588 25,491
Total liabilities $ 1,995,068 $ 8,588 $ 2,003,656 $ 25,491
68
CITY OF EULESS, TEXAS
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED SEPTEMBER 30, 2000
Balance Balance
September 30, September 30,
1999 Additions Deletions 2000
STARS CENTER ESCROW
Assets:
Investments at market $ - $ 1,995,068 $ $ 1,995,068
Liabilities:
Due to other
entities
DEA TASK FORCE FUND:
$
- $ 1,995,068 $ $ 1,995,068
Assets:
Deposits and investments $ 25,491 $ $ 16,903 $ 8,588
Liabilities:
Due to other
governments $ 25,491 $ $ 16,903 $ 8,588
69
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, 2000 AND 1999
2000 1999
General fixed assets:
Land $ 4,776,274 $ 3,826,944
Buildings 18,187,761 8,795,947
Improvements other than buildings 4,273,166 4,162,919
Construction in progress 3,845,482 2,030,000
Machinery and equipment 8,228,047 7,726,637
Total general fixed assets $ 39,310,730 $ 26,542,447
Investment in general fixed assets by source:
General fund $ 8,178,645 $ 7,991,971
Special revenue funds 6,323,031 6,148,028
Capital projects funds 24,809,054 12,402,448
Total investment in general fixed assets
$ 39,310,730 $ 26,542,447
70
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2000
Function
and Activity
General government
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
Total General Fixed Assets
Land Buildings
$ 3,027,451 $ 2,422,165
234,325 1,315,968
1,514,498 14,449,628
3,845,482
$ 4,776,274 $ 22,033,243
Improvements
Other than
Buildings
$ 2,443,314
36,758
1,793,094
Machinery
and
Equipment
$ 3,496,438
3,574,736
822,523
334,350
$ 4,273,166 $ 8,228,047
Total
$ 11,389,368
5,161,787
18,579,743
334,350
3,845,482
$ 39,310,730
71
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 2000
General Fixed General Fixed
Assets Assets
Function September 30, Additions September 30,
and Activity 1999 and Transfers Deletions 2000
General government $ 11,202,694 $ 186,674 $ $ 11,389,368
Public safety 4,986,784 175,003 5,161,787
Culture and recreation 7,988,619 10,903,110 311,986 18,579,743
Highways and streets 334,350 334,350
Construction -in -progress 2,030,000 1,815,482 3,845,482
$ 26,542,447 $ 13,080,269 $ 311,986 $ 39,310,730
72
s-t ix-c‘s-vxcisa. seclosi
ktiratidlted)
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(Unaudited)
Table 1
General
Fiscal Govern- Public Culture- Debt
Year ment Safety Streets Recreation Service Other Total
1991 $ 1,560,800 $ 5,723,750 $ 507,226 $ 1,231,257 $ 1,772,314 $ 1,208,755 $ 12,004,102
1992 2,020,872 5,616,915 454,150 1,348,652 1,617,947 946,839 12,005,375
1993 2,054,992 5,968,815 487,759 1,397,600 1,683,671 965,820 12,558,657
1994 2,160,916 6,595,803 526,136 1,514,311 1,640,120 1,041,424 13,478,710
1995 2,193,512 6,708,056 575,608 1,430,955 1,650,196 1,085,690 13,644,017
1996 2,409,115 7,445,910 619,098 1,527,718 1,658,291 1,833,982 15,494,114
1997 2,591,776 8,187,576 639,906 1,781,630 2,145,300 2,495,872 17,842,060
1998 2,951,730 9,028,711 699,140 1,995,717 2,002,940 1,454,830 18,133,068
1999 3,112,014 9,455,787 815,687 2,060,029 2,319,044 1,896,288 19,658,849
2000 3,259,704 9,880,516 746,976 2,311,089 2,199,194 1,408,673 19,806,152
✓ ✓ ,/ 4 I,cl"iV V
Note: Includes General Fund and Debt Service Fund. �,r i tt 1-
73
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Table 2
Interest
Licenses Inter- Charges Income
Fiscal and govem- for Fines and Other
Year Taxes Permits mental Service and Fees Revenues Total
1991 $ 9,262,024 $ 237,400 $ 91,064 $ 54,399 $ 971,875 $ 740,796 $ 11,357,558
1992 9,550,034 210,525 46,405 64,601 1,291,629 448,765 11,611,959
1993 10,274,743 312,660 54,797 59,042 1,353,196 413,151 12,467,589
1994 10,847,785 364,617 227,464 81,311 1,592,194 420,641 13,534,012
1995 11, 362, 414 420,624 50,912 88,036 1,941,505 916,167 14, 779, 658
1996 12,049,604 459,553 84,447 102,669 2,233,554 1,087,365 16,017,192
1997 12,733,372 530,525 192,742 89,102 2,337,343 1,268,495 17,151,579
1998 13,187,156 396,811 258,663 93,175 2,671,187 1,262,289 17,869,281
1999 13, 800,144 448,751 557,246 101,705 3,349,742 580,572 18, 838,160
2000 15,255,770 550,356 602,417 102,096 3,452,010 1,354,752 21,317,401
Note: Includes General Fund and Debt Service Fund.
74
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
1991 $ 5,717,223 $ 5,586,764 97.72% $ 106,503 $ 5,693,267 99.58% $ 349,226 6.11%
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%
Source: Tarrant County Tax Assessor/Collector
75
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Unaudited)
Table 4
Ratio of
Total
Assessed
Real Property Personal Property ' Total to
tsnmatea Estimated
Fiscal Assessed Actual Assessed Actual Assessed Actual Actual
Year Value Value Value Value Value Value Value
1991 $ 1,050,436,076 $ 1,050,436,076 $ 108,768,428 $ 108,768,428 $ 1,159,204,504 $ 1,159,204,504 100%
1992 872,811,737 872,811,737 127,990,604 127,990,604 1,000,802,341 1,000,802,341 100%
1993 835,211,175 835,211,175 137,913,007 137,913,007 973,124,182 973,124,182 100%
1994 818,330,766 818,330,766 147,978,520 147,978,520 966,309,286 966,309,286 100%
1995 908,760,987 908,760,987 166,784,893 166,784,893 1,075,545,880 1,075,545,880 100%
1996 955,692,304 955,692,304 172,885,117 172,885,117 1,128,577,421 1,128,577,421 100%
1997 1,009,997,060 1,009,997,060 185,673,796 185,673,796 1,195,670,856 1,195,670,856 100%
1998 1,093,894,921 1,093,894,921 182,729,883 182,729,883 1,276,624,804 1,276,624,804 100%
1999 1,198,361,587 1,198,361,587 197,169,731 197,169,731 1,395,531,318 1,395,531,318 100%
2000 1,307,137,899 1,307,137,899 194,966,019 194,966,019 1,502,103,918 1,502,103,918 100%
Source: Tarrant Appraisal District
76
CITY OF EULESS, TEXAS
PROPERTY TAX RATES
ALL DIRECT AND OVERLAPPING GOVERNMENTS
PER $100 OF ASSESSED VALUE
LAST TEN FISCAL YEARS
(Unaudited)
Table 5
Fiscal Junior
Year City (1) School (2) County (3) Hospital (3) College (3) Total
1991 0.5408500% 1.1300% 0.196000% 0.177500% 0.034700% 2.0790500%
1992 0.5685000% 1.3200% 0.236800% 0.205800% 0.038400% 2.3695000%
1993 0.5985637% 1.5050% 0.277100% 0.229100% 0.043292% 2.6530557%
1994 0.6186170% 1.5150% 0.271880% 0.242100% 0.046710% 2.6943070%
1995 0.6160000% 1.5350% 0.271870% 0.244640% 0.056510% 2.7240200%
1996 0.6060000% 1.5345% 0.266603% 0.239840% 0.055460% 2.7023630%
1997 0.5449800% 1.6063% 0.264000% 0.234070% 0.057690% 2.7069970%
1998 0.5247540% 1.6063% 0.264836% 0.234070% 0.106400% 2.7363170%
1999 0.5147540% 1.6063% 0.264836% 0.234070% 0.106400% 2.7263600%
2000 0.5147540% 1.6775% 0.274785% 0.234070% 0.106410% 2.8075190%
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
77
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
1991 38,369 $ 1,159,204,504 $ 11,521,321 0.99% 300
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 14,651,586 1.05% 328
2000 45,500 1,502,103,918 36, 818, 796 2.45% 809
(1) Estimates by North Central Texas Council of Governments as of
January 1, 2000.
(2) Tarrant Appraisal District
(3) Includes General Obligation Bonds and Certificates of Obligation.
78
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2000
(Unaudited)
Table 7
Percentage Amount
Applicable Applicable
Net Debt to City to City
Jurisdiction Outstanding of Euless of Euless
City of Euless $36,818,796 100.00% $36,818,796
Grapevine-Colleyville Independent
School District 263,293,391 2.12% 5,581,820
Hurst -Euless -Bedford Independent
School District 251,391,312 26.79% 67,347,732
Tarrant County 127,305,000 2.72% 3,462,696
Tarrant County Hospital County 15,176,830 2.72% 412,810
Tarrant County Junior College District 92,795,668 2.72% 2,524,042
Total direct and overlapping debt $786,780,997 $116,147,896
Ratio of direct and overlapping
bonded debt to taxable assessed
valuation
7.73%
Per capita direct and overlapping
bonded debt $2,553
79
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
1991 $ 804,572 $ 967,742 $ 1,772,314 $ 12,004,102 14.76%
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%
80
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Gross
Revenue
(1)
$ 7,796,635
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
Direct
Operating
Expenses
(2) & (3)
$ 6,314,851
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
Table 9
Net
Revenue Interest
Available and
for Debt Fiscal
Services Principal Charges Total
$ 1,481,784 $ 290,000 $ 312,925 $ 602,925 2,46
1,215,901 335,000 199,341 534,341 2.28
2,223,960 305,000 185,808 490,808 4.53
1,918,803 325,000 199,875 524,875 3.66
1,760,109 335,000 183,430 518,430 3.40
2,402,055 365,000 170,205 535,205 4.49
2,590,849 370,000 151,480 521,480 4.97
2,050,010 395,000 128,040 523,040 3.92
2,620,389 385,000 107,325 492,325 5.32
3,792,812 415,000 62,856 477,856 7.94
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.
Coverage
Ratio
81
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
Note: The Drainage Utility Fund had no outstanding debt or debt
service prior to 1992.
(1) Includes operating revenue and interest earned on investments.
(2) Total operating expenses exclusive of depreciation and amortization.
82
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)
1991 38,369 $ 19,382 18,707 7.0%
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%
Notes: 1. Estimates by North Central Texas Council of Governments as
adjusted for 1990 census data.
2. Estimates by City Economic Development
and Southwest Statistical Data
3. Hurst -Euless -Bedford Independent School District
4. Texas Workforce Commission
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2000
(Unaudited)
Table 12
2000 Percentage
Assessed of Total
Type of Valuation Assessed
Taxpayer Business (1) Valuation
Southwestern Bell Telephone Company Telephone Utility $ 35,283,500 2.35%
Bear Creek Apartments, Inc. Apartments 30,541,000 2.03%
Saluda Apartments, L.P. Apartments 29,983,671 2.00%
Southwest Properties Apartments 26,115,780 1.74%
Somerset Village Partners, LP Apartments 20,199,262 1.34%
TU Electric Electric Utility 18,931,140 1.26%
Western Rim Investors Land 18,500,000 1.23%
Buca 360 LP Apartments 14,615,326 0.97%
Bear Creek Norstar USA Apartments 13,533,010 0.90%
The Bear Creek Apartments Apartments 13,278,212 0.88%
$ 220,980,901 14.70%
Note 1: Tarrant Appraisal District
84
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
1991 $ 1,159,204,504 289 $ 17,505,423
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
Notes: 1. City Records
2. Tarrant Appraisal District
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2000
(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 2000 was established at $.514754 per $100 of assessed
valuation on 100% of appraised value.
86
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2000
(Unaudited)
Table 15
Date of incorporation February 24, 1953
Date of Adoption of Charter July 21, 1962
Form of government Home Rule - Council/Manager
Mayor - elected at large
Six Council Members
Area 16.9 Square Miles
Full time City employees budgeted 352
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
76,127
8,439
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
87
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2000
(Unaudited)
Table 15
City Water and Sewer service:
Water Service:
Number of Customers 21,588
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 15,750,000
Average daily consumption 7,551,000
Water mains 160 miles
Fire hydrants 1,190
Sewer Service:
Average daily flow of wastewater 4,087,602
Number of customers 20,858
Sewer mains 139 miles
Streets:
Improved
State highways
157 miles
17.2 miles
88