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HomeMy WebLinkAboutFY 1986 Annual Comprehensive Financial Reportkyf/%I(•,,jiu( �G\ lVv4i/-14(,. PI TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of transmittal FINANCIAL SECTION Report of certified public accountants Combined statements - overview Combined balance sheet - all fund types and account groups 1-2 Combined statement of revenues, expenditures and changes in fund balances - all govern- mental fund types Statement of revenues - budget and actual - General Fund Statement of expenditures - budget and actual - General Fund Statement of revenues, expenses and changes in unappropriated retained earnings - all proprietary fund types - Water and Sewer Enterprise Fund 3-4 5-6 7 8 Statement of changes in financial position - all proprietary fund types - Water and Sewer Enterprise Fund 9 Notes to financial statements - all funds and accounts 10-22 ADDITIONAL INFORMATION SECTION Combining and individual fund financial statements Combining balance sheet - Capital Projects Funds 23 Combining statement of revenues, expenditures and changes in fund balances - Capital Projects Funds 24 TABLE OF CONTENTS Page ADDITIONAL INFORMATION SECTION (continued) Combining and individual fund financial statements (continued) Combining balance sheet - Special Revenue Funds 25 Combining statement of revenues, expenditures and changes in fund balances - Special Revenue Funds 26 Comparative balance sheet - Water and Sewer Enterprise Fund 27 Comparative schedule of operating expenses Water and Sewer Enterprise Fund Combining balance sheet - All Agency Funds 28-29 30 Combining statement of changes in assets and liabilities - All Agency Funds 31 STATISTICAL SECTION Miscellaneous statistical facts General government revenue by source General government expenditures by function Property tax rates 36 Property tax levies and collections 37 Assessed and estimated actual value of taxable property 38 Debt service requirements to maturity - General Obligation Bonds 39 Debt service requirements to maturity - Water and Sewer Revenue Bonds 40 32-33 34 35 TABLE OF CONTENTS Page STATISTICAL SECTION (continued) Ratio of annual debt service expenditures for general bonded debt to total general expenditures 41 Computation of direct and overlapping debt 42 Water and sewer revenue bond coverage 43 Ratio of net general bonded debt to assessed value and net bonded debt per capita 44 INTRODUCTORY SECTION rit, ci Mr. W. M. Sustaire City Manager City of Euless Euless, Texas 76039 Dear Mr. Sustaire: "We're Building a Beautiful Tomorrow" The Annual Financial Report of the City of Euless, Texas for the fiscal year ended September 30, 1986 is submitted herewith. System and Reports The City's accounting records for general governmental operations are maintained on a modified accrual basis, with revenue being recorded when earned and expenditures being recorded when incurred except for unmatured interest on general long-term debt, which is recognized when due. Accounting records for the City's Water and Sewer Enterprise Fund are maintained on a full accrual basis. Budgetary control is maintained under an annual budget. General Governmental Functions Revenues for general governmental functions and general debt service totaled $8,454,626 in 1986, an increase of 6.15 percent over 1985. General property taxes produced 43.48 percent of general revenue compared to 41.56 percent last year. The amount of revenue from various sources and the changes over last year are shown in the following table: Increase Percent (decrease) Revenue Source Amount of total from 1985 General property taxes $3,675,832 43.48 $366,061 Gross receipts taxes 1,119,997 13.25 71,207 General sales taxes 1,578,526 18.67 34,749 Licenses and permits 330,136 3.90 (99,793) Fines and fees 423,482 5.01 67,101 Interest income 409,297 4.84 (25,579) Intergovernmental 601,988 7.12 80,092 Other 315,368 3.73 (3,897) $8.454.626 100.00 $489,941 201 N. Ector Drive • Euless, Texas 76039-3595 • 817/283-5381 Metro 267-4403 Mr. W. M. Sustaire Page 2 In addition to the above general revenue, $115,000 was transferred from the Water and Sewer Enterprise Fund and $120,000 transferred from the Special Revenue Fund to the General Fund. Expenditures for general governmental purposes and general debt service totaled $9,316,619 an increase of 20.27 percent over 1985. Changes in levels of expenditure for major functions of the City over the preceding year are shown in the following table: Function General government Public safety Streets Library Parks and recreation Bonded debt retirement Bonded debt interest and fees Nondepartmental Amount $1,197,589 4,954,072 424,806 282,331 733,634 290,000 674, 011 760,176 $9,316,619 Percent of total 12.85 53.18 4.56 3.03 7.88 3.11 7.23 8.16 100.00 Increase from 1985 $ 137,542 990,750 22,904 16,325 52,050 60,000 123,471 167,181 $1,570,223 General Obligation Bonds, Series 1986, dated June 1, 1986 totaling $2,500,000 were issued during the year. Cash Management The City maintains cash accounts on a consolidated basis for investment purposes. These short-term investments consist of certificates of deposit and government securities which are stated at cost. The interest income was recognized by the appropriate fund. General Fixed Assets The general fixed assets of the City are those fixed assets used in the performance of general governmental functions and exclude the fixed assets of the Water and Sewer Enterprise Fund. As of September 30, 1986, the general fixed assets of the City amounted to $34,676,121. This amount represents the original cost of the assets and is considerably less than their replacement value. Depreciation of general fixed assets is not recognized in the City's accounting system. Mr. W. M. Sustaire Page 3 Water and Sewer System Comparative data for the City's water and sewer utility for the past two fiscal years are presented in the following table: 1986 1985 Net income (loss) $ (271,854) $1,318,996 Add (deduct): Amortization of capitalized water and sewer facility contract rights Depreciation Interest on revenue bonds Transfers to other funds Principal portion of payments on water and sewer facility contracts 407,960 408,236 670,333 607,398 403,070 419,437 317,241 352,911 (223,070) (197,806) Net revenue available for debt service $1,303,680 $2,909,172 Average annual debt service $ 508,607 $ 516,258 Coverage 2.56 times 5.64 times During the year, $255,000 of regularly maturing revenue bonds were retired in the Water and Sewer Enterprise Fund. All reserve and accounting requirements have been met in accor- dance with the ordinances authorizing the issuance of the City's Water and Sewer Revenue Bonds. Independent Audit The City Charter 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 selected by the City Council. This requirement has been complied with and the auditor's opinion has been included in this report. Mr. W. M. Sustaire Page 4 Acknowledgments The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Financial Department. I should like to express my appreciation to all members of the Department who assisted and contributed to its preparation. I should also like to thank your 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. Respectfully submitted, (),/' (71 (James R. Hickerson Director of Finance FINANCIAL SECTION /No ® A MEMBER OF ARTHUR YOUNG INTERNATIONAL 2200 Texas American Bank Building Fort Worth, Texas 76102 Telephone: (817) 335-1900 The Honorable Mayor and City Council City of Euless, Texas We have examined the accompanying combined financial statements, by fund types and account groups, of the City of Euless, Texas, at September 30, 1986, and for the year then ended, listed in the foregoing table of contents under the caption "Financial Section." Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the combined financial statements mentioned above present fairly the financial position of the fund types and account groups of the City of Euless, Texas, at September 30, 1986, the results of operations for the year then ended and the changes in financial position of the Water and Sewer Enterprise Fund for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made primarily for the purpose of expressing an opinion on the combined financial statements, taken as a whole. The accompanying additional information listed in the table of 'contents is presented for purposes of additional analysis and is not a required part of the combined financial statements. Such additional information has been subjected to a"o rthur Youn the auditing procedures applied in the examination of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. The statistical information on pages 32-44 was not examined by us and accordingly, we do not express an opinion on it. October 30, 1986 CITY OF EULESS, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1986 ASSETS Cash and short-term investments Receivables: Delinquent taxes, net of allowance for doubtful collections of $265,448 Accounts receivable, net Accrued interest receivable Unbilled water and sewer revenue Due from other funds Due from other governments Restricted assets (Notes 2, 3 and 4) General fixed assets (Note 6) Net utility plant in service (Note 6) Capitalized water contract rights amortization of and sewer facility less accumulated $2,292,972 (Note 5) Amount available for retirement of general long-term debt Amount to be provided for retirement of general long-term debt General Governmental fund types Deb t Service $2,240,481 $313,522 95,856 4,197 124,308 53,838 100,449 31,952 Capital Projects $4,042,904 27,348 327,061 Special Revenue $132,220 141,720 Proprietary fund types Water and Sewer Enterprise Agency Fiduciary fund types $ 1,456,248 $1,825,831 $ 499,985 96,960 339,038 4,044,041 19,483,171 14,654,532 122,881 Account groups General General fixed long-term assets debt 34,676,121 Total (memorandum only) - $10,011,206 300,684 127,808 504,182 248,616 339,038 645,500 100,449 4,044,041 34,676,121 19,483,171 14,654,532 300,684 10,095,902 10,095,902_ $2,619,129 $345,474 $4,397,313 $273,940 $40,573,975 $1,948,712 $34,676,121 $10,396,586 $95,231,250 CITY OF EULESS, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1986 (Continued) LIABILITIES AND FUND EQUITY Liabilities: Accounts payable Accrued salaries and wages Customer deposits Accrued interest Due to other funds Obligations under capitalized water and sewer facility contract rights (Note 5) Bonds payable (Note 3) Deferred revenue Total liabilities Fund equity: Investment in general fixed assets Contributions Fund balances: Reserved: For recreation equipment For public safety Unreserved: Designated for: Equipment replacement Contingency Emergency Undesignated Retained earnings: Appropriated for debt service (Notes 3 and 4) Unappropriated: Designated for equipment Undesignated Total fund equity General Governmental fund types Debt Service $ 94,855 $ 204,854 134,839 12,838 95,856 530,404 1,687 60,061 31,952 44,790 Capital Projects Special Revenue Proprietary fund types Water and Sewer Enterprise Agency - $ 30,473 $ 41,000 71,473 4,922 412,255 500,000 1,109,800 300,684 4,397,313 202,467 2,088,725 300,684 4,397,313 202,467 $2,619,129 $345,474 $4,397,313 $273,940 See notes to financial statements. 2,530 29,751 463,222 83,418 129,763 15,451,166 5,825,000 158,473 22,143,323 12,573,465 2,308,521 633,853 2,914,813 18,430,652 $40,573,975 Fiduciary fund types $ 214,966 1,406,686 327,060 1,948,712 Account groups General General fixed long-term assets debt - 34,676,121 - 34,676,121 $1,948,712 $34,676,121 Total (memorandum only) - $ 342,824 234,605 1,869,908 83,418 645,500 10,396,586 10,396,586 $10,396,586 15,451,166 16,221,586 286,281 35,135,288 34,676,121 12,573,465 1,687 60,061 4,922 412,255 500,000 6,010,264 2,308,521 633,853 2,914,813 60,095,962 $95,231,250 CITY OF EULESS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended September 30, 1986 Revenues: General property tax Gross receipts tax General sales tax Licenses and permits Fines and fees Interest income Federal revenue sharing Intergovernmental Other revenues Total revenues Expenditures: City Council General Government Civil Service Police Department Legal and Corporation Court Fire Department Street Department Traffic safety Planning and development Library Recreation Department Swimming pools Civic Center Code enforcement Health and animal shelter Jail fund Nondepartmental Parks department General $2,760,746 1,119,997 1,578,526 330,136 423,482 409,297 601,988 301,555 Governmental fund types Debt Capital Service Projects 7,525,727 11,542 275,906 107,655 2,103,186 156,830 1,692,952 424,806 88,520 137,484 282,331 266,732 38,459 264,054 183,578 113,607 103,763 760,176 428,443 $915,086 13,813 928,899 82,614 141,428 162,196 386,238 Special Revenue Total (memorandum only) - $ 3,675,832 155,437 1,275,434 1,578,526 330,136 423,482 491,911 141,428 601,988 116,928 594,492 272,365 9,113,229 11,542 275,906 107,655 2,103,186 156,830 1,692,952 424,806 88,520 33,769 171,253 282,331 266,732 38,459 264,054 183,578 113,607 103,763 760,176 428,443 CITY OF EULESS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended September 30, 1986 (Continued) Expenditures (continued): Debt service: Principal retirement Interest and service charges Capital outlay and maintenance Insurance Total expenditures Deficiency of revenues over expenditures Other financing sources (uses): Sale of general obligation bonds Principal retirement - refunded Excess of refunded bonds over refunding bonds and related issuance costs Net operating transfers in (out) Total other financing sources Excess (deficiency) of revenues and other financing sources over expenditures Unreserved fund balances, beginning of year Increase in reserves Unreserved fund balances, end of year Governmental fund types Debt Capital General Service Projects - $ 290,000 $ 674,011 912,584 8,352,608 (826,881) - $ 1,879,983 964,011 1,879,983 Special Revenue 7,740 483,071 524,580 Total (memorandum only) $ 290,000 674,011 2,800,307 483,071 11,721,182 (35,112) (1,493,745) (252,215) (2,607,953) - 7,896,586 2,498,988 (8,805,000) 232,067 232,067 (594,814) 2,667,206 (45,415) 908,414 - 10,395,574 (8,805,000) (160,969) 246,143 - 2,338,019 246,143 (35, 112) 335,796 844,274 (6,072) 3,553,039 208,539 908,414 317,241 2,816,229 208,276 6,764,580 (45, 415) $2,026,977 $ 300,684 $ 4,397,313 $ 202,467 $ 6,927,441 See notes to financial statements. r. 5 CITY OF EULESS, TEXAS STATEMENT OF REVENUES - BUDGET AND ACTUAL - GENERAL FUND Year ended September 30, 1986 General property tax: Current and delinquent taxes Penalty and interest Gross receipts tax: Southwestern Bell Telephone Company Texas Power and Light Company Lone Star Gas Company Cable TV Tarrant County Waste Disposal Others General sales tax Licenses and permits: Building permits Street inspections Miscellaneous permits Electric licenses Fines and fees: Corporation Court fines Dog pound fees Actual $2,732,130 28,616 2,760,746 Budget $2,729,571 25,000 2,754,571 228,741 220,000 618,911 555,000 138,734 160,000 44,160 32,000 24,757 22,000 64,694 70,250 1,119,997 1,059,250 1,578,526 1,500,000 234,732 250,000 32,653 40,000 49,018 78,500 13,733 12,000 330,136 380,500 413,911 305,000 9,571 15,000 423,482 320,000 Variance favorable (unfavorable) $ 2,559 3,616 6,175 8,741 63,911 (21,266) 12,160 2,757 (5,556) 60,747 78,526 (15,268) (7,347) (29,482) 1,733 (50,364) 108,911 (5,429) 103,482 CITY OF EULESS, TEXAS STATEMENT OF REVENUES - BUDGET AND ACTUAL - GENERAL FUND Year ended September 30, 1986 (Continued) Interest income Intergovernmental Other revenues: Library receipts Rental income Miscellaneous income Texas Court cost service fee Swimming pools Total revenues Actual Budget 409,297 $ 250,000 601,988 14,160 18,514 241,089 10,876 16,916 301,555 $7,525,727 409,176 12,000 21,000 62,000 5,000 12,000 112,000 $6,785,497 See notes to financial statements. 6 Variance favorable (unfavorable) $159,297 192,812 2,160 (2,486) 179,089 5,876 4,916 189,555 $740,230 CITY OF EULESS, TEXAS STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND Year ended September 30, 1986 City Council General Government Civil Service Police Department Legal and Corporation Court Fire Department Street Department Traffic safety Planning and development Library Recreation Department Swimming pools Civic Center Code enforcement Health and animal shelter Jail fund Nondepartmental Parks Department Capital outlay and maintenance Total expenditures Actual $ 11,542 275,906 107,655 2,103,186 156,830 1,692,952 424,806 88,520 137,484 282,331 266,732 38,459 264,054 183,578 113,607 103,763 760,176 428,443 912,584 $8,352,608 Budget $ 19,300 294,990 118,090 2,227,890 129,966 1,784,482 443,681 98,393 158,568 315,666 192,373 44,420 257,551 201,054 120,709 861,628 481,854 $7,750,615 See notes to financial statements. 7 Variance favorable (unfavorable) $ 7,758 19,084 10,435 124,704 (26,864) 91,530 18,875 9,873 21,084 33,335 (74, 359) 5,961 (6,503) 17,476 7,102 (103,763) 101,452 53,411 (912,584) $(601,993) CITY OF EULESS, TEXAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN UNAPPROPRIATED RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES - WATER AND SEWER ENTERPRISE FUND Year ended September 30, 1986 Operating revenues: Water service Sewer service Water and sewer tap fees Service fees and miscellaneous Operating expenses excluding depreciation and amortization Operating income excluding depreciation and amortization Amortization of capitalized water and sewer facility contract rights (Note 5) Depreciation Operating income Other revenues - investment income Loss on sale of equipment Other expenses: Interest on revenue bonds Interest on obligations under capitalized water and sewer facility contract rights Income before operating transfers Operating transfers to other funds Net loss Less increase in appropriated retained earnings Unappropriated retained of year Unappropriated retained earnings, beginning earnings, end of year $ 407,960 670,333 403,070 1,347,391 See notes to financial statements. 8 S 3,178,256 1,958,738 211,142 362,573 5,710,709 (3,290,764) 2,419,945 (1,078,293) 1,341,652 458,777 (4,581) (1,750,461) 45,387 (317,241) (271,854) (96, 836) 3,917,356 $ 3,548,666 CITY OF EULESS, TEXAS STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES - WATER AND SEWER ENTERPRISE FUND Year ended September 30, 1986 Sources: Operations: Net loss Add (deduct) non -cash items: Receivables Depreciation Amortization of capitalized water and sewer facility contract rights Amortization of deferred revenue - Trinity River Authority agreement Accounts payable Accrued salaries and wages Accrued interest Due to other funds Total cash provided from operations Net book value of utility. plant in service disposals Customer deposits Contributions in aid to construction Decrease in restricted assets Total sources of cash Uses: Additions to utility plant in service Reduction in obligations under capi- talized water and sewer facility contract rights (Note 5) Reduction in revenue bonds payable Total uses of cash Net increase in cash Cash and short-term investments: At beginning of year At end of year See notes to financial statements. 9 $ (271,854) 120,494 670,333 407,960 (7,800) (846) 5,902 (3,554) 3,164 923,799 7,806 32,149 1,629,378 820,996 3,414,128 2,761,185 223,070 255,000 3,239,255 174,873 1,281,375 $1,456,248 10 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF FUNDS The City has established a number of funds, in conformance with generally accepted accounting principles and the recommendations of the National Council on Governmental Accounting, for the purpose of accounting for transactions i.n compliance with legal requirements. Funds and account groups in use by the City in accounting for its financial activities are as follows: Governmental Funds General Fund - to account for all of the general revenue of the City not specifically levied or collected for other City funds, and for expenditures related to rendering of general services by the City. Debt Service Fund - to account for the source and disposition of funds for paying interest and principal on general obliga- tion bonds. Capital Projects Funds - to account for the source and dispo- sition of funds for the acquisition of capital facilities other than those recorded in the Enterprise Fund. Revenues and expenditures of the federal revenue sharing program are accounted for in these funds. 11 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Special Revenue Funds - to account for special revenue sources that are legally restricted to expenditures for specified purposes. Proprietary Funds Water and Sewer Enterprise Fund - to account for the acqui- sition, operation and maintenance of a municipal utility, supported primarily by user charges to the public. Fiduciary Funds Agency Funds - to account for assets received and held by the City as agent for individuals, private organizations, other governments, and other funds within the City. Account Groups General Fixed Assets Account Group - to account for property and equipment of the City other than that acquired and accounted for in the Water and Sewer Enterprise Fund. General Long-term Debt Account Group - to account for the unmatured principal of outstanding bonds, except those recorded in the Water and Sewer Enterprise Fund. 12 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) BASIS OF ACCOUNTING AND BUDGET The accrual basis of accounting is utilized for the Water and Sewer Enterprise Fund. Governmental and fiduciary fund types are accounted for using the modified accrual basis. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long- term debt, which is recognized when due. Significant revenues which are not accrued are licenses, permits, fines and fees. The City's annual budget for the General Fund is prepared on the same basis that the City maintains its accounts. 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 13 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) accrued based on the period for which they are levied and available. Delinquent taxes expected to be collected later than 60 days after the fiscal year-end are considered not available and are treated as deferred revenue. Property taxes for cities are limited by the Texas Constitution to $2.50 per $100 of assessed valuation. The City's current tax rate is $.44 per $100 of assessed valuation and assessed valuation is approximately 100 percent of estimated actual value. INVESTMENTS Investments are stated at cost which approximates market value. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is recorded at cost (or fair value, if contributed) when acquired. General fixed assets are recorded as expenditures in the General Fund, Capital Projects Fund and Special Revenue Fund at the time of purchase or construction and are capitalized in the General Fixed Assets Account Group at cost. 14 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Expenditures for utility plant are capitalized in the Water and Sewer Enterprise Fund. Costs related to repairs and maintenance are recorded as expenditures or expenses. Significant renovations and improvements are capitalized. DEPRECIATION No depreciation is recorded on general fixed assets. Depreciation is recorded on each class of depre- ciable property in the Water and Sewer Enterprise Fund utilizing the straight-line method over the following estimated useful lives of the assets: Equipment 5 - 15 years Water and sewer system 33-1/3 years RETIREMENT PLAN The City is a member of the Texas Municipal Retirement System which covers all eligible full time employees under a money purchase plan. Eligible employees contribute 7 percent of their salaries and the City contributes 9.46$. The total pension expense for the year was approximately $469,275 and $73,675 for the General Fund 15 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) and Water and Sewer Enterprise Fund, respectively, which includes amortization (over 25 years) of prior service cost attributable to a target benefit. EMPLOYEES' VACATION AND SICK LEAVE Employees may accumulate a maximum of 20 days of vacation. The City's policy is to pay the employee for accumulated vacation upon termination. Accrued vacation pay is insignificant and is not recorded by the City. The City does not pay employees for accumulated sick leave upon termination. RESERVES Certain assets that are not available spendable resources of the City are offset by fund balance reserve accounts. TOTAL COLUMN ON COMBINED STATEMENTS The total columns on combined statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position, results of operations, or changes in financial position in conformity with generally 16 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 2. RESTRICTED ASSETS Restricted assets consist of cash and investments primarily restricted for Water and Sewer Enterprise Fund debt service and water and sewer system replacements. 3. BONDS PAYABLE Bonded debt outstanding at September 30, 1986, consists of the following: General obligation bonds Range of interest Outstanding Current Long-term rates balance maturities maturities 3.8 to 11.75% $10,396,586 $ - $10,396,586 Water and Sewer Revenue Bonds 4.5 to 10.75% 5,825,000 275,000 5,550,000 $16,221,586 $275,000 $15,946,586 The bonds mature serially through the year 2006 and have various call options whereby they may be redeemed during certain periods prior to maturity. A schedule of bond and interest maturities is as follows: 17 3. BONDS PAYABLE 1987 1988 1989 1990 1991 Thereafter Less interest CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 (continued) General Obligation Bonds $ 1,263,494 1,234,333 1,234,189 1,210,945 1,218,951 13,733,865 19,895,777 9,499,191 Principal $10,396,586 In November, 1985, the Water and Sewer Revenue Bonds $ 665,012 677,300 661,675 651,225 602,825 6,405,500 9,663,537 3,838,537 $5,825,000 Total $ 1,928,506 1,911,633 1,895,864 1,862,170 1,821,776 20,139,365 29,559,314 13,337,728 $16,221,586 City issued $7,896,000 Series 1985A General Obligation Refunding Bonds. The proceeds of such bonds were used to retire existing indebtedness by depositing in an escrow fund amounts sufficient for the payment of all previously issued general obligation bonds. The effect of the reissue was to reduce total principal and interest payments over the next 20 years by approximately $831,000. In June, 1986, the City issued $2,500,000 Series 1986 General Obligation Bonds. The proceeds of such bonds are to be used for street and drainage improvements and parks and recreation improvements. 18 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 3. BONDS PAYABLE (continued) General obligation bonds authorized and unissued as of September 30, 1986, amounted to $730,000. Water and Sewer Revenue Bonds authorized and unissued as of September 30, 1986, amounted to $1,200,000. Water and Sewer 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. In accordance with the revenue 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 revenue bond retirement - to be used for payment of principal and interest on bonds at any time where there is not sufficient money available in the revenue bond debt service fund. No payments are required into this fund after accumulating therein an amount equal to the average annual principal and interest requirements of the bonds outstanding. 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. 19 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 3. BONDS PAYABLE (continued) All requirements for funding,of the above reserves were met at September 30, 1986. Investments of funds included in the bond reserve and emergency accounts are restricted to direct obligations of or obligations unconditionally guaranteed by the United States of America having maturities not in excess of ten and five years, respectively. 4. PROPERTY SALE PROCEEDS ACCOUNTS The City of Euless sold certain of the waterworks and sanitary sewer system properties situated within the City of Bedford to that city in 1968. The proceeds were equal to 32.33 percent of the $5,800,000 of revenue bonds issued by Euless for the original purchase of the combined system. The property sale proceeds may be applied solely to the prepay- ment or prior redemption of the revenue bonds and investment income of the funds may be applied to current revenue bond interest in an amount not to exceed 32.33 percent of the requirement on the amount of bonds then outstanding. As of September 30, 1986, the balance in the property sales proceeds account was $458,210 and is included in restricted assets in the accompanying balance sheet. 20 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 5. WATER AND SEWER FACILITY CONTRACT RIGHTS Under the City's long-term contracts with the Trinity River Authority of Texas (TRA) for sewer treatment services and water supply, the City is obligated for the next 38 years to share in the costs of operations, maintenance and debt service of the Authority. Payments under these con- tracts approximated $2,740,000 in 1986. The amounts under the contracts representing debt service have been capitalized and the related obligation included in the accompanying balance sheet. The capitalized water and sewer facility contract rights are being amortized on a straight-line basis over 50 years. The City's share of the related TRA debt service is adjusted each year based on the City's usage compared to that of other users. The City's obligation is amortized based on its current usage. The following is a schedule by years of estimated future minimum requirements under the contracts (debt service portion) together with the present value of the net minimum requirements as of September 30, 1986: 21 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 5. WATER AND SEWER FACILITY CONTRACT RIGHTS (continued) Year ending September 30: 1987 1988 1989 1990 1991 Thereafter Less amount representing interest Present value of minimum requirements $ 1,595,499 1,605,440 1,626,903 1,650,666 1,642,388 26,330,243 34,451,139 18,999,973 $15.451,166 6. FIXED ASSETS The following is a summary of changes in general fixed assets by source: Balance, beginning of Add: Expenditures from bond funds Expenditures from developers' contributions Expenditures from general fund Expenditures from special revenue fund Total additions Deduct: Disposals of fixed assets Improvements Machinery Land and other than and buildings buildings equipment year $2,969,014 $22,566,784 $2,495,839 1,765,068 4,033,286 361,293 48,165 555,766 7,740 361,293 5,846,519 563,506 Total $28,031,637 - 1,765,068 4,033,286 965,224 7,740 6,771,318 41,065 85,769 126,834 Balance, end of year $3,330,307 $28,372,238 $2,973,576 $34,676,121 22 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1986 6. FIXED ASSETS (continued) The following is a summary of Water and Sewer Enterprise Fund utility plant in service at September 30, 1986: Land $ 1,215,252 Equipment 743,192 Waterworks and sanitary sewer system 22,686,621 24,645,065 Less accumulated depreciation 5,161,894 $19,483,171 7. SERVICE CENTER The Water and Sewer Enterprise Fund bears the major portion ($280,163) of the operating costs of the City's service center. In 1986, costs of $31,567 were allocated to the General Fund. ADDITIONAL INFORMATION 23 CITY OF EULESS, TEXAS COMBINING BALANCE SHEET - CAPITAL PROJECTS FUNDS September 30, 1986 ASSETS Cash and short-term investments Accrued interest receivable Due from other funds FUND EQUITY Park and Recreation Fund $1,496,541 $1,496,541 Street Improvement and Drainage Fund $2,479,045 27,348 327,061 $2,833,454 Revenue Sharing Fund $67,318 Total $4,042,904 27,348 327,061 $67,318 $4,397,313 Fund balance $1,496,541 $2,833,454 $67,318 $4,397,313 24 CITY OF EULESS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - CAPITAL PROJECTS FUNDS Year ended September 30, 1986 Revenues: Federal revenue sharing Investment income Other revenues Expenditures: Capital outlay and maintenence Excess (deficiency) of revenues over expendi- tures Other financial sources: Sale of general obligation bonds Net operating transfers out Total other financing sources Excess (deficiency) of revenues and other financing sources over expenditures Fund balances, beginning of year Fund balances, end of year Park and Recreation Fund Street Improvement and Drainage Fund 82,614 20,000 142,196 20,000 224,810 22,852 1,855,131 (2,852) (1,630,321) 1,499,393 999,595 1,499,393 1,496,541 999,595 (630,726) 3,464,180 $1,496,541 $ 2,833,454 Revenue Sharing Fund Total $ 141,428 $ 141,428 82,614 162,196 141,428 2,000 386,238 1,879,983 139,428 (1,493,745) (160,969) (160,969) (21,541) 88,859 $ 67,318 2,498,988 (160,969) 2,338,019 844,274 3,553,039 $ 4,397,313 25 CITY OF EULESS, TEXAS COMBINING BALANCE SHEET - SPECIAL REVENUE FUNDS September 30, 1986 Hotel/ Industrial motel Insurance development ASSEIS Fund Fund Fund Total cash and short-term investments $196,341 $(70,247) $6,126 $132,220 Due from other funds 141,720 141,720 $196,341 $ 71,473 $6,126 $273,940 LIABILITIES AND FUND EQUITY Accounts payable $ - $ 30,473 $ - $ 30,473 Due to other funds 41,000 41,000 Fund balances 196,341 6,126 202,467 $196,341 $ 71,473 $6,126 $273,940 CITY OF EULESS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUNDS Year ended September 30, 1986 Revenues: Gross receipts tax Other revenues Expenditures: Capital outlay and maintenance Planning and development Insurance claims and fees Excess (deficiency) of revenues over expenditures Other financing sources: Net operating transfers in (out) Excess of revenues and other financing sources over expenditures Fund balances, beginning of year Fund balances, end of year 26 Hotel/ Industrial motel Insurance development Fund Fund Fund Total $ 151,437 $ - $4,000 $ 155,437 116,928 116,928 151,437 116,928 4,000 272,365 7,740 - - 7,740 28,895 4,874 33,769 483,071 483,071 36,635 483,071 4,874 524,580 114,802 (366,143) (874) (252,215) (120,000) 366,143 - 246,143 (5,198) - (874) (6,072) 201,539 - 7,000 208,539 $ 196,341 $ - $6,126 $ 202,467 27 CITY OF EULESS, TEXAS COMPARATIVE BALANCE SHEET - WATER AND SEWER ENTERPRISE FUND September 30, 1986 and 1985 ASSETS Current assets: Cash and short-term investments Accounts receivable, less allowance for estimated uncollectible accounts of $1,463 in 1986 and 1985 Unbilled water and sewer revenue Accrued interest receivable Total current assets Restricted assets: Revenue bond debt service: Cash with paying agent Revenue bond retirement: Investments with paying agent, at cost Revenue bond emergency: Cash and short-term investments Property sale proceeds account: Investments with paying agent, at cost Capital projects account: Cash and short-term investments Customer deposits: Short-term investments Interest receivable on investments Total restricted assets Utility plant in service, at cost: Land Equipment Waterworks and sanitary sewer system Less accumulated depreciation Net utility plant in service Capitalized water and sewer facility contract rights less accumulated amortization of $2,292,972 in 1986 and $1,885,012 in 1985 1986 1985 LIABILITIES AND FUND EQUITY $ 1,456,248 $ 1,281,375 499,985 339,038 96,960 2,392,231 121,364 1,453,605 300,000 458,210 1,188,881 463,222 58,759 4,044,041 1,215,252 743,192 22,686,621 24,645,065 5,161,894 19,483,171 434,771 417,999 203,707 2,337,852 57,570 1,422,717 300,000 431,398 2,139,548 431,073 82,731 4,865,037 1,215,252 640,352 20,043,949 21,899,553 4,499,428 17,400,125 14,654,532 15,062,492 $40,573,975 $39,665,506 Current liabilities: Payable from current assets: Accounts payable Due to other funds Current portion of obligations under capitalized water and sewer facility contract rights Current portion of revenue bonds payable Payable from restricted assets: Customer deposits Accrued interest Total current liabilities Obligations under capitalized water and sewer facility contract rights Revenue bonds payable Deferred revenue Total liabilities Fund equity: Contributions: From subdividers From Environmental Protection Agency From Trinity River Authority Total contributions Retained earnings: Appropriated: For revenue bond debt service, next maturing For revenue bond retirement For emergency Total appropriated Unappropriated: Designated for equipment Undesi.gnated Total unappropriated Total fund equity $ 1986 32,281 $ 129,763 266,275 275,000 463,222 83,418 1,249,959 15,184,891 5,550,000 158,473 22,143,323 12,318,848 239,617 15,000 12,573,465 79,388 1,654,473 574,660 2,308,521 633,853 2,914,813 3,548,666 18,430,652 $40,573,975 1985 27,225 126,599 223,070 255,000 431,073 86,972 1,149,939 15,451,166 5,825,000 166,273 22,592,378 10,689,470 239,617 15,000 10,944,087 57, 570 1,422,717 731,398 2,211,685 544,522 3,372,834 3,917,356 17,073,128 $39,665,506 28 CITY OF EULESS, TEXAS COMPARATIVE SCHEDULE OF OPERATING EXPENSES - WATER AND SEWER ENTERPRISE FUND Years ended September 30, 1986 and 1985 General and administrative: Salaries and wages Employee benefits Postage and supplies Maintenance of office machinery Contractual services Bad debts Water production: Salaries and wages Employee benefits Operating supplies and expense Maintenance of structures and equipment Water - Trinity River Authority Other Water distribution: Salaries and wages Employee benefits Operating supplies and expense Maintenance of structures and equipment Contractual services Other Sewage collection and treatment: Salaries and wages Employee benefits Operating supplies and expense Maintenance of structures and equipment Contractual services Treatment fees - Trinity River Authority Other 1986 $ 111,175 20,323 17,113 15,123 18,996 29,406 212,136 131,328 33,719 6,983 186,603 668,277 1,026,910 204,581 47,289 8,130 118,028 9,087 2,126 389,241 258,458 58,751 4,639 6,569 6,251 503,800 3,933 842,401 1985 $ 105,250 17,710 15,945 13,145 17,282 13,091 182,423 119,530 26,983 5,853 136,518 218,627 7,638 515,149 173,282 42,543 7,285 32,980 6,665 907 263,662 250,872 53,805 3,707 19,267 4,764 191,425 1,955 525,795 29 CITY OF EULESS, TEXAS COMPARATIVE SCHEDULE OF OPERATING EXPENSES - WATER AND SEWER ENTERPRISE FUND Years ended September 30, 1986 and 1985 (Continued) Nondepartmental: Employee benefits Operating supplies and expense Contractual services Service center: Salaries Employee benefits Motor fuel Operating supplies and expense Maintenance of structures and equipment Other 1986 1985 $ 916 $ 1,553 443,800 387,390 95,196 48,061 539,912 437,004 88,493 76,629 15,972 15,074 69,566 68,813 9,196 98,675 91,895 7,458 1,953 280,164 263,560 Total operating expenses, excluding depreciation and interest expense $3,290,764 $2,187,593 30 CITY OF EULESS, TEXAS COMBINING BALANCE SHEET - ALL AGENCY FUNDS September 30, 1986 ASSETS Cash and short-term investments Due from other funds LIABILITIES Payroll related payables Escrow deposits Due to other funds Social Security Fund $ 92,085 122,881 $214,966 Developers' Escrow Fund $1,733,746 $1,733,746 $214,966 $ - 1,406,686 327,060 $214,966 $1,733,746 Total $1,825,831 122,881 $1,948,712 $ 214,966 1,406,686 327,060 $1,948,712 CITY OF EULESS, TEXAS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS Year ended September 30, 1986 SOCIAL SECURITY FUND Assets Cash and short-term investments Due from other funds Liabilities Payroll related payables ESCROW FUND Assets Cash and short-term investments Liabilities Escrow deposits Due to other funds TOTAL ALL AGENCY FUNDS Assets Cash and short-term investments Due from other funds Liabilities Payroll related payables Escrow deposits Due to other funds Balance September 30, 1985 Additions $ 82,686 94,305 $ 176,991 $ 176,991 $1,618,518 $1,402,142 216,376 $1,618,518 $1,701,204 94,305 $1,795,509 $ 176,991 1,402,142 216,376 $1,795,509 $2,091,398 28,576 $2,119,974 $2,119,974 $5,647,485 $5,536,801 110,684 $5,647,485 $7,738,883 28,576 $7,767,459 $2,119,974 5,536,801 110,684 $7,767,459 31 Balance Deductions September 30, 1986 $2,081,999 $2,081,999 $2,081,999 $5,532,257 $5,532,257 $5,532,257 $7,614,256 $7,614,256 $2,081,999 5,532,257 $7,614,256 $ 92,085 122,881 $ 214,966 $ 214,966 $1,733,746 $1,406,686 327,060 $1,733,746 $1,825,831 122,881 $1,948,712 $ 214,966 1,406,686 327,060 $1,948,712 STATISTICAL SECTION 32 CITY OF EULESS, TEXAS MISCELLANEOUS STATISTICAL FACTS (Unaudited) 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 Five council members Area 16.9 square miles Population: 1960 census 1970 census 1980 census Building permits issued: Year ended September 30, 1986 Estimated cost 4,236 19,316 24,000 443 $42,546,836 -Full time City employees: September 30, 1986 240 Police protection: Number of stations Number of certified officers Fire protection: Number of stations Number of certified firefighters 1 50 3 47 Parks and recreation: Number of swimming pools 3 Number of parks 8 Area of parks 122 acres Community buildings 2 Library holdings 46,503 Education: Elementary Schools 6 Junior High Schools 2 High School 1 CITY OF EULESS, TEXAS MISCELLANEOUS STATISTICAL FACTS (Unaudited) (Continued) City Water and Sewer service: Water service: Number of customers at September Maximum daily capacity available Trinity River Authority Maximum daily capacity of City water Total daily capacity Maximum daily consumption Average daily consumption Water Mains Fire hydrants Sewer service: Average daily flow of wastewater Number of customers Sewer mains Streets: Improved State highways City's ten largest taxpayers: Robert S. Folsom, et al Southwestern Bell Telephone Company Euless Town Center Texas Utilities Electric Company First Southwest Equity Corporation Co -Equity Corporation D..T. Construction Co. Del Paso Partners LTD. Burbank Assoc. LTD. Flagship International 30, 1986 from wells 33 16,892 12,000,000 gallons 4,000,000 gallons 16,000,000 gallons 12,913,000 gallons 5,730,000 gallons 148 miles 562 4,100,000 gallons 16,447 125 miles Type of business Apartments Utility Retail Utility Apartments Apartments Apartments Apartments Apartments Hotel 120.0 miles 17.2 miles Assessed valuation $ 42,139,213 13,947,590 10,432,428 9,499,233 8,764,499 8,318,684 7,808,476 7,397,351 7,251,046 7,162,505 $122,721,025 Fiscal year 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 CITY OF EULESS, TEXAS GENERAL GOVERNMENT REVENUE BY SOURCE Last ten years (Unaudited) Taxes $2,194,138 2,464,944 2,648,936 2,763,651 3,229,395 3,609,418 4,320,153 4,967,971 5,902,338 6,374,355 Licenses Inter - and governmental permits revenues $ 56,764 37,039 77,331 119,383 187,263 191,551 379,549 601,181 429,929 330,136 $ 41,205 118,649 129,516 126,671 206,722 312,553 288,355 402,107 521,896 601,988 34 Charges Fines for and Miscel- services fees laneous $27,583 $221,650 $136,185 27,698 129,240 195,110 23,827 151,080 200,111 46,512 210,772 291,721 34,590 208,746 443,065 37,714 259,293 375,297 38,254 200,793 457,210 38,484 265,800 594,673 51,401 356,381 702,740 60,466 423,482 664,199 Fiscal year 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 CITY OF EULESS, TEXAS GENERAL GOVERNMENT EXPENDITURES BY FUNCTION Last ten years (Unaudited) General government $ 285,024 458,500 546,750 680,381 739,346 737,311 741,825 905,018 1,060,047 1,197,589 Public safety $1,180,345 1,235,608 1,327,831 1,539,987 1,734,324 2,285,229 2,447,377 3,529,424 3,963,322 4,954,072 35 Culture - Debt Streets recreation service Other $177,625 $ 367,944 $346,079 $289,670 201,074 422,526 335,448 325,618 256,149 453,046 339,687 350,478 266,714 545,733 430,350 395,736 255,642 530,593 427,658 418,557 332,829 644,703 429,364 458,351 323,104 667,854 425,799 480,838 364,058 859,754 506,439 509,600 401,902 947,590 780,540 592,995 424,806 1,015,965 964,011 760,176 36 CITY OF EULESS, TEXAS PROPERTY TAX RATES PER $100 OF ASSESSED VALUE Last ten years (Unaudited) Junior Fiscal year City School County State Hospital college Total 1977 $.94 $1.76 $.95 $.10 $.60 $.40 $4.75 1978 .94 1.76 .95 .10 .56 .38 4.69 1979 .94 1.76 .95 .10 .56 .36 4.67 1980 .94 1.76 .95 .10 .56 .35 4.66 1981 .70 1.24 .285 .31 .095 2.63 1982 .70 1.24 .204 .168 .048 2.36 1983 .70 1.24 .202 .178 .052 2.37 1984 .70 1.24 .125 .104 .031 2.20 1985 .44 .74 .125 .104 .031 1.44 1986 .44 .82 .09866 .09634 .03165 1.48665 NOTES: (1) General property taxes for cities are limited by the Texas Constitution to $2.50 per $100 of assessed valuation. (2) City general property taxes are due each year on October 1 and become delinquent on February 1 each year. Penalties are assessed on late payments ranging from 1% after February 1 to 8% after July 1. Interest is charged on late payments at the rate of 1/2 of 1% for each month's delinquency. There are no discounts. (3) The City's taxes are collected by the Hurst -Euless -Bedford Independent School District and are distributed to the City as collected. 37 Fiscal year 1977 1978 1979 1980 1981 1982 198'3 1984 1985 1986 CITY OF EULESS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS Last ten years (Unaudited) Total tax levy $1,604,752 1,630,303 1,670,397 1,683,564 1,966,178 2,133,114 2,597,676 2,808,055 3,298,386 3,814,110 Current tax collections $1,456,507 1,507,458 1,583,829 1,598,304 1,889,920 2,045,992 2,543,591 2,745,623 3,182,483 3,575,594 Percent of levy collected 90.76 92.46 94.82 94.94 96.12 95.92 97.92 97.78 96.49 93.75 Delinquent t ax collections $ 48,244 90,383 171,253 93,789 101,408 71,417 39,762 77,156 127,288 76,236 Total tax collections $1,504,751 1,597,841 1,755,082 1,692,093 1,991,328 2,117,409 2,583,353 2,822,779 3,309,771 3,651,830 Percent of total tax collections to tax levy 93.77 98.01 104.70 100.51 101.28 99.26 99.45 100.52 100.35 95.75 Outstanding delinquent taxes at year-end $283,394 306,769 222,084 213,555 188,405 202,081 246,369 268,760 256,955 393,256 Percent of delinquent taxes to tax levy 17.66 18.82 13.30 12.68 9.58 9.47 9.48 9.57 7.79 10.31 CITY OF EULESS, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last ten years (Unaudited) Fiscal year 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 Real property Assessed value $152,478,400 149,618,690 153,414,790 158,125,200 248,902,180 265,109,240 332,750,708 343,084,060 697,008,884 779,704,042 Estimated actual value $234,582,154 230,182,600 236,022,754 243,269,538 248,902,180 265,109,240 332,750,708 343,084,060 697,008,884 779,704,042 Personal property Assessed Estimated value $18,239,900 22,275,660 24,286,990 20,977,300 31,980,350 39,621,390 57,430,322 58,805,741 68,347,443 88,759,776 actual value $28,061,384 34,270,246 37,364,600 32,272,769 31,980,350 39,621,390 57,430,322 58,805,741 68,347,443 88,759,776 38 Total Assessed value $170,718,300 171,894,350 177,701,780 179,102,500 280,882,530 304,730,630 390,181,030 401,889,801 765,356,327 868,463,818 Estimated actual value $262,643,538 264,452,846 273,387,354 275,542,307 280,882,530 304,730,630 390,181,030 401,889,801 765,356,327 868,463,818 Ratio of total assessed to total estimated actual value 65% 65 65 65 100 100 100 100 100 100 Fi.scal year 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 CITY OF EULESS, TEXAS DEBT SERVICE REQUIREMENTS TO MATURITY - GENERAL OBLIGATION BONDS (Unaudited) Principal 485,000 520,000 535,000 585,000 620,000 665,000 745,000 795,000 855,000 950,000 910,000 910,000 367,790 349,277 354,866 367,837 381,816 $10,396,586 Interest $1,263,494 749,333 714,189 675,945 633,951 588,670 540,418 486,218 425,770 359,415 285,285 207,660 130,668 557,054 490,235 472,165 464,537 454,184 $9, 499. 1.91 39 Total $ 1,263,494 1,234,333 1,234,189 1,210,945 1,218,951 1,208,670 1,205,418 1,231,218 1,220,770 1,214,415 1,235,285 1,117,660 1,040,668 924,844 839,512 827,031 832,374 836,000 $19,895,777 40 Fiscal year 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 CITY OF EULESS, TEXAS DEBT SERVICE REQUIREMENTS TO MATURITY - WATER AND SEWER REVENUE BONDS (Unaudited) Principal $ 275,000 305,000 310,000 320,000 290,000 260,000 270,000 285,000 305,000 335,000 345,000 375,000 370,000 410,000 445,000 490,000 190,000 120,000 125,000 $5.825.000 Interest $ 390,012 372,300 351,675 331,225 312,825 293,900 277,700 259, 925 237,350 216,625 193,350 169,425 142,875 114,975 85,275 52,875 19,575 11,025 5,625 $3 , 838, 537 Total $ 665,012 677,300 661,675 651,225 602,825 553,900 547,700 544,925 542,350 551,625 538,350 544,425 512,875 524,975 530,275 542,875 209, 575 131,025 130,625 $9.663.537 41 Fiscal year 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 CITY OF EULESS, TEXAS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last ten years (Unaudited) Principal $105,000 110,000 110,000 140,000 145, 000 155,000 165,000 195,000 230,000 290,000 Interest $241,079 235,448 229, 687 290, 350 282,658 274,364 260,799 311,439 550,540 674,011 Total debt service $346,079 345,448 339, 687 430,350 427,658 429,364 425,799 506,439 780,540 964,011 Total general expenditures $2,300,608 2,988,774 3,273,938 3,858,901 4,106,120 4,887,787 5,086,797 6,674,293 7,746,396 9,316,619 Ratio of debt service to general expenditures (percent) 15.04 11.56 10.38 11.15 10.42 8.78 8.37 7.59 10.08 10.35 42 CITY OF EULESS, TEXAS COMPUTATION OF DIRECT AND OVERLAPPING DEBT September 30, 1986 (Unaudited) Jurisdiction City of Euless Grapevine - Colleyville Independent School District Hurst -Euless -Bedford Independent School District Tarrant County Tarrant County Junior College District Tarrant County Hospital District Total direct and overlapping debt Net debt outstanding $10,083,064 17,137,296 33,964,000 14,356,209 24,664,936 29,188,017 Percent applicable to City of Euless 100.00 4.22 24.98 2.55 2.55 2.55 Amount applicable to City of Euless $10,083,064 723,194 8,484,207 366,083 628,956 744,294 $21,029,798 43 CITY OF EULESS, TEXAS WATER AND SEWER REVENUE BOND COVERAGE Last two years (Unaudited) Net accrual revenue: Operating revenue Investment income and gain on sale of land Operating expenses excluding depreciation and amortization: Contract charges by Trinity River Authority for water and sewer facility: Operations and maintenance Debt service Other Net accrual revenue available for debt service Reconciliation to net income: Net income (loss) Add (deduct): Amortization of water and sewer facility contracts Depreciation Interest on revenue bonds Transfers to other funds Principal portion of payments on water and sewer facility contracts Net accrual revenue available for debt service Annual debt service on outstanding bonds: Maximum any year Average all years Revenue bond coverage: Maximum (times debt service) Average (times debt service) 1986 $5,710,709 458,777 6,169,486 1,172,076 1,570,461 2,123,269 4,865,806 $1,303,680 1985 $5,214,429 1,386,688 6,601,117 410,052 1,504,352 1,777,541 3,691,945 $2,909,172 $ (271,854) $1,318,996 407,960 670,333 403,070 317,241 (223,070) $1,303,680 408,236 607,398 419,437 352,911 (197,806) $2,909,172 $ 677,300 $ 677,300 508,607 516,258 1.92 2.56 4.30 5.64 CITY OF EULESS, TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last ten years (Unaudited) Assessed Fiscal year Population* value 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 22,450 22,900 23,450 24,000 26,250 26,100 28,200 32,500 37,950 37,650 $170,718,300 171,894,350 177,701,780 179,102,500 280,882,530 304,730,630 390,181,030 401,889,801 765,356,327 868,463,818 Gross bonded debt $ 4,630,000 4,520,000 5,510,000 5,370,000 5,225,000 5,070,000 5,520,000 7,825,000 9,095,000 10,396,586 Less debt service funds 44 Net bonded debt $143,138 $ 4,486,862 170,049 4,349,951 201,177 5,308,823 156,522 5,213,478 173,872 5,051,128 171,395 4,898,605 235,147 5,284,853 285,142 7,539,858 348,633 8,746,367 313,522 10,083,064 Ratio of assessed value to net bonded debt 38.05 39.52 33.47 34.35 55.61 62.21 73.83 53.30 87.51 86.13 Estimates by North Central Texas Council of Governments as adjusted for 1980 census data. Net bonded debt per capita $199.86 189.95 226.39 217.23 192.42 187.68 187.41 232.00 230.47 267.81