HomeMy WebLinkAboutFY 1991 Comprehensive Annual Financial ReportTHE C I T Y OF
Comprehensive Annual
Financial Report
for Fiscal Year Ended 9-30-91
Prepared by Fiscal & Human Resources
INTRODUCTORY
SECTION
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1991
CITY OFFICIALS
HAROLD D. SAMUELS, Mayor
FRANK DOUGLASS, Councilmember Place One
TODD SMITH, Councilmember Place Two
BOBBY BAKER, Councilmember Place Three
MARY LIB SALEH, Councilmember Place Four
and Mayor Pro Tem
PETER STAKS, Councilmember Place Five
TOM HART
City Manager
DEBRA B. FORTE'
Fiscal and Human Resources Director
I
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year ended September 30, 1991
TABLE OF CONTENTS
INTRODUCTORY SECTION
Exhibit Page(s)
Title page I
Table of contents II-V
Letter of transmittal VI-XII
GFOA certificate of achievement XIII
Organizational chart XIV
FINANCIAL SECTION
Report of independent auditors
General Purpose Financial Statements
Combined balance sheet - all fund types and
account groups
1
1 2-3
Combined statement of revenues, expenditures
and changes in fund balances - all govern-
mental fund types 2 4-5
Combined statement of revenues, expenditures
and changes in fund balances - budget and
actual - General Fund 3 6-7
Combined statement of revenues, expenses and
changes in retained earnings - All
Proprietary Fund Types 4 8
Combined statement of cash flows - All
Proprietary Fund Types
5 9
Notes to financial statements 10-31
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year ended September 30, 1991
TABLE OF CONTENTS, Continued
Schedule/
Statement Page(s)
Supplemental statements and schedules
Special revenue funds
Combining balance sheet A-1 33
Combining statement of revenues, expen-
ditures and changes in fund balances A-2 34
Capital projects funds
Combining balance sheet B-1 36
Combining statement of revenues, expen-
ditures and changes in fund balances B-2 37
Enterprise funds
Combining balance sheet C-1 39-40
Combining statement of revenues, expenses
and changes in retained earnings C-2 41
Combining statement of cash flows C-3 42
Water and sewer fund --comparative balance
sheets C-4 43-44
Water and sewer fund --comparative state-
ments of revenues, expenses and
changes in retained earnings C-5 45-46
Water and sewer fund --comparative
schedules of operating expenses C-6 47-48
Water and sewer fund --comparative
statements of cash flows C-7 49-50
Water and sewer fund --aggregating
schedule of balance sheet accounts C-8 51-52
III
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year ended September 30, 1991
TABLE OF CONTENTS, Continued
Schedule/
Statement Page(s)
Water and sewer fund --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts C-9 53
Internal service funds
Combining balance sheet
D-1 55
Combining statement of revenues,
expenses and changes in retained
earnings D-2 56
Combining statement of cash flows D-3 57
General fixed assets account group
Comparative schedules of general fixed
assets by source E-1 59
Schedule of general fixed assets by
function and activity E-2 60
Schedule of changes in general fixed
assets by function and activity E-3 61
Table page(s)
STATISTICAL SECTION (Unaudited)
General governmental expenditures by function 1 62
General governmental revenues by source 2 63
Property tax levies and collections 3 64
Assessed and estimated actual value of
taxable property 4 65
IV
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year ended September 30, 1991
TABLE OF CONTENTS, Continued
Table Page(s)
Property tax rates - direct and overlapping
governments (per $100 of assessed value) 5 66
Principal taxpayers 6 67
Computation of legal debt margin 7 68
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 8 69
Ratio of annual debt service expenditures
for general obligation bonded debt to
total general expenditures 9 70
Computation of direct and overlapping debt 10 71
Revenue bond coverage - Water and Sewer Bonds 11 72
Demographic statistics 12 73
Property value, construction and bank
deposits 13 74
Retirement plan - analysis of funding
progress 14 75
Miscellaneous statistics 15 76-77
THE CITY 0EUF
i7
January 10, 1992
Honorable Mayor & City Council,
City Manager, &
Citizens of Euless:
The Fiscal and Human Resources 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, 1991.
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 multiyear
basis.
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 govc,..u..t and enterprise funds are tradi-
tional city functions such as police and fire protection, ambulance
service, road and traffic signal maintenance, water and sewer operations,
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.
All funds and account groin are discussed in depth in the not to the
financial statements. Even though associations with other entities such as
Hurst-Eules-Bedford Independent School District exist, the City Council has
no oversight, responsibility, 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.
201 N. Ector Drive, Euless, Texas 76039-3595
817/685-1400 • Metro 817/267-4403 • FAX 817/685-1416
VI
ECONOMIC CONDITIONS AND OUTLOOK
Euless was settled about 1881 and named for Elisha Adams Euless, a cotton
fanner and pioneer. In 1915 the population was 25 and in 1960, 4235. Euless
has changed significantly from a rural farming community to a progressive
urban area of approximately 40,000. The City of Euless is located in North-
east 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 economic condition of Euless continues
to be one of cautious optimism.
The aggressive growth in the Euless area is projected to continue through the
1990's. The proposed expansion plans at Dallas/Fort Worth Airport should have
a positive impact for North Texas, but will create some unique challenges for
gow.,u1=4,L officials in Euless. However, the varied types of economic growth
in and around the Euless area will enable city officials to provide a better
level of service and quality of life to both our corporate and residential
citizens.
MAJOR INITIATIVES
Budget. During preparation of the 1991 fiscal budget, both elected and
appointed officials worked together to identify and address several key
pLykjkoll needed to adequately serve the public, either through quality of life
issues or technological adv7incements. Strategic committees were created
utilizing a vast number of citizens for assistance in the development of
Euless' goals and objectives. Community involvement was the target in 1991.
Numerous City demrtments maintain progressive and innovative approaches to
the functions of their related responsibilities. Computerization has assisted
in aLLJUuLI)Uating growth. Police, Fire, and Emergency Medical Service have
installed a computer aided Dispatch System. Engineering, Inspections and
various field operations have also benefitted from technology advancements.
No longer is the Finance Dep<ruent the sole benefactor of computerization.
Future plans continue to include application of such dynamic systems and cost
savings.
Future. One area that most cities typically fail to address properly is infra-
structure maintenance. The City has implemented a Geographic Information
System (GIS) to acquire a better knowledge regarding the City's vast infra-
structure inventory. The GIS is a computerized process that enables cities to
address any, or all, geographic areas within a city and connect various types
of information to a specific area. A geographic area may be an intersection,
a house, or a particular room in a building. The City will soon have a
complete inventory of all water and sewer lines, as well as streets, drainage
and other infrastructure items, and be able to generate maintenance schedules,
replacement dates, etc. The applications for GIS transcend all City depart-
ments. Most recently, GIS assisted in the implementation of the Drainage
Utility System, including the fee structure and data file for billing.
VII
FINANCIAL INFORMATION
General. Management of the City is responsible for establishing and main-
taining an internal control structure designed to ensure that the City's
assets are protected from loss, theft or misuse and to ensure that adequate
accounting data is compiled to allow for the preparation of financial state-
ments in conformity with generally accepted accounting principles. The
internal control structure is designed to provide reasonable, bat not abso-
lute, 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 record-
ed when the liability is incurred except for interest on general long-term
debt, which is recognized when due.
As set forth in the City's charter Article VII Sections 2-9, the City Council
adopts an annual budget. Detail control is accomplished by maintaining
expenditures by line item account within each operating department within each
operating fund at the authorization of the City Manager. Financial reports
are available to division managers monthly.
Further explanations of the basis of accounting for all fund types and the
City's budgetary controls are furnished in the acnompanying Notes to Financial
Statements.
General Governmental Functions. Revenues for general govc.i_, u« ical func-
tions and general debt service totaled $11,357,558 in 1991, an increase of
3.41 percent over 1990. The increase in revenues is primarily attritable to
increased general rLLJYm.L ty tax rates. The amount of revenue from various
sources and the changes from the previous year are reflected in the following
table:
Revenue Source
Pluperty taxes
Gross receipts taxes
General sales taxes
Fines and few
Licenses and permits
Interest income
IntergumLtal/Other
Percent
Amount % of total
$ 5,820,935 51.25%
1,319,112 11.61
2,121,977 18.68
971,875 8.56
237,400 2.10
401,257 3.53
485.002 4.27
$11.357.558 100.00%
Increase Percent of
(decrease) increase
from 1990 (decrease),
$514,614 9.70%
121,969 10.19
96,201 4.75
(187,111) (16.14)
(53,544) (18.40)
(13,038) (3.15)
(104,5331 (17.73)
$374.558
VIII
In addition to the above general revenue, $421,800 was transferred from
various funds, primarily Enterprise funds for general and administrative cost
reimtursement.
Expenditures for general grn: :.. �:.lal purposes and general debt service
totaled $12,004,102 an increase of 3.67 %—cu,1. over 1990. (ranges in levels
of expenditures for major functions of the City over the prclEding year are
shown in the following table:
Function
General grn,t.L.,,,.L,l.
Public safety
Streets
Library
Parks & Leisure
Debt retirement
Debt interest/fees
Nondepartmental
Total EXpenses
Percent
Amount % of total
$ 1,560,800 13.00%
5,723,750 47.68
507,226 4.23
358,801 2.99
872,456 7.27
804,572 6.70
967,742 8.06
1.208.755 10.07
$12.004.102 100.00%
Increase Percent of
(decrease) increase
from 1990 (decrease).
$ 25,780 1.68%
90,708 1.61
(33,787) (6.25)
2,867 .81
(143,572) (14.13)
165,291 25.86
120,606 14.24
197.376 19.52
$ 425.269
The decrease in streets is primarily due to a decrease in street maintenance.
Activity in this fund is offset by the increased activity in the bond funds.
Parks and Leisure Services decreased due to recreation classes being accounted
for in a separate enterprise fund in 1991 and not in the General Fund as in
1990. Debt retirement and interest increased due to the issuance of Certifi-
cates of Obligation in August 1990. Nondepartnental expenditures inL.reased
primarily as a result of ink personnel, insurance, and utility cost.
property taxes
51%
interest income
3%
gross receipts
12%
Intergov'tal/other
4%
fines/fees
9%
/ sales tax
19%
licenses/permits
2%
debt interest/fees
8%
nondepartmental
10%
library
3%
streets
4%
general
13%
debt retirement
7%
parks/leisure
7%
public safety
48%
IX
Enterprise Funds. While the number of water and sewer customers was
relatively constant with 1990, the City's water and sewer utility showed a
decrease in water and sewer service revenues in the current year as a result
of excessive rainfall during the summer months. Comparative data for the past
two fiscal years are presented in the following table. An accounting change
in 1990 is explained in Note 15 to the Financial Statements.
Income (loss) before cumulative effect of
change in accounting method
Net revenue available for debt service
Debt service requirements
Coverage
1990 1991
$(211,061) $ (88,725)
$1,263,172 $1,481,784
$ 647,288 $ 602,925
1.95 times 2.46 times
The Drainage Utility System was created in FY91 in compliance with new legis-
lation to address drainage issues in the cannunities across the state. Foes
were effective January 1, 1991, thus FY91 does not represent a full year of
operations. $297,272 of revenue was generated and $52,050 of start-up costs
were incurred. Capital improvements have been initiated in FY92 relating to
Drainage Utility System.
The Recreation Fund was segregated out of the general operating budget of the
City to allow the Midway Recreation Center and the class structures to operate
as an enterprise. $227,395 of revenue was generated, while class expenses
were $221,101, both consistent with prior year activity.
Debt Administration. General obligation debt, which is directly tax
supported, totaled $12,031,587 at September 30, 1991. 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 -
$11,521,321; ratio of net bonded debt to assessed value - .99 and net bonded
debt per capita - $300.
Revenue bonds, which are secured by the net revenues of the Water and Sewer
Enterprise Fund, totaled $4,325,000 at September 30, 1991. Tables 8-11 in the
Statistical Section of this report present more detailed information about the
debt position of the City. In November, 1991, the City refunded certain of
these outstanding bonds and issued $2,335,000 in refunding revenue bonds at
lower interest rates resulting in prcsent value savings of approximately
$154,393. See Note 14 to the financial statements for further explanation.
The City has maintained its A+ and A Ratings on general obligation and revenue
debt from Standard and Poors and has maintained its A-1 and A Ratings on this
debt from Moody's Investors Service.
Cash Management. Compliance, safety, liquidity and yield are the riuy .am
goals. Safety and security of the City's funds are of primary importance in
all investment activities, with staff following policies and laws when invest-
ing funds. Interest incase generated for the year for all funds was $987,176,
which exceed the budget of $670,000. The average yield for the portfolio
was 7.033%, exceeding the benchmark yield by approximately 87 basis points.
Interest is an important non -tax revenue for the City. As of September 30,
for every $1 the City had to invest, approximately 99.70 cents was invested.
After one year of dedicated efforts in this area, the City has contributed in
excess of $100,000 for the citizens of Euless.
Insurance and Benefits. The City provides employee medical coverage on a
self -insured basis. Premiums are paid into a separate Insurance Fund by all
other funds and by the City's employes and are available to pay claims, claim
reserves and administrative costs of the priuyko... An excess coverage insur-
ance policy covers individual claims in excess of $45,000 and aggregate claims
in excess of $707,000.
The City maintains self-insurance for workers' compensation. Contributions
are made to a separate Risk Management fund by other funds and are available
to pay claims, claims reserves and administrative costs of the ruuyia,... An
excess coverage insurance policy covers individual claims in excess of
$300,000.
GENERAL FIXED ASSETS
The general fixed assets of the City are those fixed assets used in the
performance of general functions and exclude the fixed assets of
the Enterprise and Internal Service Funds. As of September 30, 1991, the
general fixed assets of the City amounted to $10,435,926. This amount repre-
sents the original cost of the assets and is considerably less than their
replacement value. Depreciation of general fixed assets is not recognized in
the City's accounting system.
OTHER INFORMATION
Independent Audit. The City quarter, per Article VII Section 11, requires an
annual audit to be made of the books of account, financial records and trans-
actions 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 Eccellence in
Financial Reporting to the City for its .,,411 hensive annual financial report
for the fiscal year ended September 30, 1990. 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 annual
financial report whose contents conform to cuvyiaut standards. Such reports
must satisfy both generally acrppted 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 submit-
ting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements. 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 ,LIB of the
XI
Finance Department who assisted and contributed to its preparation. I would
also like to thank the City Manager's Office and the memteers of the City
Council for their interest and support in planning and conducting the finan-
cial operations of the City in a responsible and progressive manner.
Acknowledgement is also given to the representatives of Ernst & Young for
their invaluable assistance in producing this document.
RespeCtfUlly submitted,
ijAt
11c.!
Debra B. Forte'
Director of Fiscal & Human Resources
XII
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, 1990
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 (CAFR's) achieve the highest
standards in government accounting
and financial reporting.
Executive Director
XIII
CITY OF EULESS
City Mana er:
Director of
Fiscal and Human
Resources
Debra B. Forte'
Accounting
Data Processing
Water Office
Budget
Municipal Courts
Personnel
Health Insurance
Worker's Comp.
Cash/Debt Mgmt.
City
Attorney
Bob McFarland
Director of
Public Works
Randy Byers
Water
Waste Water
Streets
Drainage
City
Judge
George Boring
Police
Chief
K. B. Fuller
Administration
Patrol
Crim. Invest.
Service
Civil Defense
Citizens
of
Euless
Mayor and
City Council
City
Manager
Tom Hart
Assistant
City Manager
H. Kay Godbey
Fire
Chief
Lee Koontz
Administration
Suppression
Ambulance
Fire Education
Director of
Community
Services
Rick Herold
Parks
Leisure Services
Library
Beautification
Revised: 7/10/91 T. Hill
City
Secretary
Susan Cram
Asst. to CM/
Eco. Dev. Dir.
Steve Norwood
Director of
Administrative
Service
Tom Cox
Fleet Mngmt.
Facility Mngmt.
Purchasing
Telecommun.
Contract Mngmt.
Construction
Management
Traffic Safety
Risk Mngmt.
Court
Clerk
Teresa Britt
Director of
Development
John Craig
Inspection
Services
Environmental
Health
Fire Marshall
Planning
Fire Prevention
City Engineer
Paul
Kruckemeyer
Engineering
Capital Improve-
ment Program
Construction
Inspection
ERNST &YOUNG
■ 2200 Team Bank Building
500 Throckmorton
Fort Worth, Texas 76102
REPORT OF INDEPENDENT AUDITORS
The Honorable Mayor and City Council
City of Euless, Texas
■ Phone: 817 335 1900
Fax: 817 335 5603
We have audited the accompanying general purpose financial statements
of the City of Euless, Texas (the "City") as of and for the year ended
September 30, 1991, as listed in the table of contents. These finan-
cial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the general purpose
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall general purpose
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 at September 30, 1991, and the results of its operations
and the cash flows of its proprietary fund types for the year then
ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the
general purpose financial statements taken as a whole. The accompany-
ing other financial information listed as supplemental statements and
schedules in the table of contents is presented for purposes of addi-
tional analysis and is not a required part of the general purpose
financial statements of the City. Such information has been subjected
to the auditing procedures applied in our audit of the general purpose
financial statements and, in our opinion, is fairly stated in all
material respects in relation to the general purpose financial state-
ments taken as a whole. The statistical information listed in the
statistical section of the table of contents (tables 1-15) has not
been subjected to the auditing procedures applied in our audit of the
general purpose financial statements, and, accordingly, we express no
opinion on it.
November 4, 1991
-1-
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1991
With comparative totals for September 30, 1990
Governmental Fund Types
Proprietary Fiduciary
Fund Types Fund Type
EXHIBIT 1
Account Groups Totals (Memorandum Only)
Special Debt Capital Internal Deferred General General
General Revenue Service Projects Enterprise Service Compensation Fixed Long-term
ASSETS AND OTHER DEBITS Fund Funds Fund Funds Funds Funds Agency Fund Assets Debt 1991 1990
Cash and cash equivalents --Note 2 $ 80,640 $ 47,820 $ 10,404 $1,581,295 $ 1,299,971 $ 572,887 $ - $ - $ - $ 3,593,017 $ 4,344,899
Short-term investments --Note 2 3,095,149 154,188 535,444 1,607,981 1,628,622 1,860,283 8,881,667 6,176,655
Receivables:
Delinquent property taxes 234,712 95,032 329,744 329,744
Accounts receivable and unbilled revenue 36,575 38,771 1,043,245 1,118,591 1,088,625
Deposits 8,828 8,828 8,628
Accrued interest 66,644 672 7,484 178 74,978 181,287
Due from other funds -Note 8 64,303 618,601 682,904 360,031
Due from other governments 135,913 338,174 474,087 135,913
Inventories, at cost 36,808 36,808 5,717
N Restricted assets --Notes 3 and 4 3,259,001 3,259,001 3,045,955
I
General fixed assets --Note 6 10,435,926 10,435,926 9,902,631
Net utility plant and equipment
in service --Note 6 18,831,641 567,890 19,399,531 19,338,514
Amount available for retirement
of general long-term debt 510,266 510,266 592,607
Amount to be provided for retirement
of general long-term debt 12,136679 12136,679 12,243552
TOTAL ASSETS AND OTHER DEBITS $3.759.572 $202.680 $640,880 $3.573.705 $26.681.259 $ 1.140.777 1_1.860,283 $10.435.926 $12.646.945 $60.942.027 $57.754.758
(Continued)
LIABILITIES, FUND EQUITY
AND OTHER CREDITS
Liabilities:
Overdrafts payable
Accounts payable
Accrued salaries and wages
Customer and escrow deposits
Accrued interest
Due to other funds --Note 8
Bonds and certificates of obligation
payable --Notes 3 and 4
Notes payable --Note 3
Deferred revenue
Compensated absences
Deferred compensation benefits payable --
Note 12
Commitments and contingent liabilities --
Note 5
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1991
With comparative totals for September 30, 1990
General
Fund
Governmental Fund Types
Special Debt
Revenue Service
Funds Fund
$ 877,420 3 - $ 54,027 $
120,427
265,424
587,299
189,156
TOTAL LIABILITIES 2,039,726
Fund equity and other credits:
Investment in general fixed assets
Net contributed capital --Note 9
Retained earnings:
Reserved for debt service and
construction --Notes 3 and 4
Unreserved
Fund balances:
Reserved for:
Parking lot
Recreation equipment
Public safety
Park improvements
Drug enforcement
Recycling
Development agreements
Unreserved:
Designated for:
Contingency
Emergency
Undesignated
TOTAL FUND EQUITY AND OTHER CREDITS
TOTAL LIABILITIES, FUND
EQUITY AND OTHER CREDITS
See accompanying notes to financial statements.
778
110,287
8,979
Proprietary
Fund Types
Capital
Projects Enterprise
Funds Funds
143,804
33,000
76,587 492,373
3 1,304,954 3
9,861
40,708
579,857
66,908
4,325,000
119,473
Internal
Service
Funds
Fiduciary
Fund Type
Deferred
Compensation
Agency Fund
5,452 3
136,004
62,605
1,860,283
130,614 669,177 6,446,761 204,061 1,860,283
9,666,333
2,352,236
8,215,929 936,716
1,183,486
477,656
500,000
732,433 92,393 510,266 1,721 042
1,719,846 202,680 510,266 2,90 ,,528
20,234,498 936,716
$3.759.572 $202.680 $640,880 $3,573,705 $26.681.259 1 1,140.777
EXHIBIT 1
(Continued)
Account Groups
General
Fixed
Assets
10,435,926
10,435,926
General
Long-term
Debt
12,031,587
167,378
447,980
Totals (Memorandum Only)
1991
$ 2,241,853 $
266,292
306,132
723,661
66,908
682,904
16,356,587
167,378
877,589
447,980
1,860,283
1990
406,552
189,532
632,953
66,908
360,031
17,451,159
393,016
1,673,989
12,646,945 23,997,567 21,174,140
10,435,926 9,902,631
9,666,333 10,014,872
2,352,236
9,152,645
778
110,287
8,979
1,183,486
2,145,964
8,248,174
10,000
29,938
119,759
2,452
112,556
4,117
1,225,765
477,656 496,725
500,000 500,000
3,056,134 3,767.665
36,944,460 36.580.618
1_1.860.283 310.435.926, $12.646.945 $60.942.027 357.754.758,
CITY OF EULESS, TEXAS EXHIBIT 2
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
Year ended September 30, 1991
With comparative totals for September 30, 1990
Governmental Fund Types Totals (Memorandum Only)
Special Debt Capital
General Revenue Service Projects
Fund Funds Fund Funds 1991 1990
Revenues:
General property tax $ 4,152,043 $
Gross receipts tax 1,319,112
General sales tax 2,121,977
Fines and fees 971,875
Licenses and permits 237,400
Interest income 380,176
Intergovernmental 91,064
Other revenues 393,938
TOTAL REVENUES 9,667,585
Expenditures:
Current:
City Council
General government
Civil Service
Police Department
Legal and Corporation Court
Fire Department
Street Department
Planning and development
Library
Recreation Department
Swimming pools
Civic Center/Administrative Services
Code enforcement
Environmental
Jail fund
Recreation classes
Parks Department
Nondepartmental
Debt service:
Principal retirement
Interest and service charges
Debt issuance costs
Capital outlay and maintenance
TOTAL EXPENDITURES
33,105
471,517
127,510
3,313,089
211,883
2,188,579
507,226
114,894
358,801
238,626
52,396
449,191
196,217
168,366
581,434
1,208,755
10,199
10,231,788
$1,668,892 $
120,457
85,675
206,132
128,066
89,344
217,410
21,081
1,689,973
804,572
924,523
43,219
1,772,314
118,040
38,801
28,554
185,395
735,448
735, 448
$ 5,820,935 $ 5,306,321
1,439,569 1,312,195
2,121,977 2,025,776
971,875 1,158,986
237,400 290,944
519,297 436,958
129,865 19,078
508,167 714,136
11,749,085 11,264,394
33,105 40,648
471,517 471,603
127,510 154,268
3,313,089 3,268,344
211,883 213,835
2,188,579 2,019,463
507,226 541,013
242,960 281,640
358,801 355,934
238,626 243,370
52,396 45,413
449,191 404,868
196,217 165,329
168,366 167,800
9,835
175,783
581,434 551,462
1,208,755 1,011,379
804,572 639,281
924,523 847,136
43,219
834,991 1,891,613
12,956,960 13,500,017
(Continued)
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
Year ended September 30, 1991
With comparative totals for September 30, 1990
EXPENDITURES OVER REVENUES
Other financing sources (uses):
Net proceeds from issuance of certificates
of obligation
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
BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING METHOD
Cumulative effect of change in accounting
method --Note 15
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING USES
Fund balances, beginning of year
Residual equity transfers in
Residual equity transfers out
General
Fund
$ (564,203)
421,800
421,800
(142,403)
(142,403)
1,904,241
28,946
(70,938)
Governmental
Special
Revenue
Funds
$ (11,278)
(11,278)
(11,278)
123,958
90,000
Fund Types
Debt
Service
Fund
$ (82,341)
(82,341)
(82,341)
EXHIBIT 2
(continued)
Totals (Memorandum Only)
Capital
Projects
Funds 1991 1990
$ (550,053) $(1,207,875) $(2,235,623)
282,543
(337,543)
(55,000)
704,343
(337,543)
366,800
1,977,993
453,889
(103,982)
2,327,900
(605,053) (841,075) 92,277
1,204,983
(605,053) (841,075) 1,297,260
592,607 3,648,171 6,268,977 4,971,717
133,873 252,819
(272,463) (343,401)
FUND BALANCES, END OF YEAR $ 1.719,846 202,680 $ 510 266 $ 2,904.528 $ 5.337, 320 $ 6,22682977
See accompanying notes to financial statements.
CITY OF EULESS, TEXAS EXHIBIT 3
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL FUND
Year ended September 30, 1991
General property tax:
Current and delinquent taxes
Penalty and interest
Actual
Variance
Favorable
Budget (Unfavorable)
$ 4,092,567 $ 4,019,821 $
59,476 50,000
4,152,043 4,069,821
Gross receipts tax:
Southwestern Bell Telephone Company 264,416 268,000
Texas Utilities Electric Company 729,217 695,000
Lone Star Gas Company 124,227 130,000
Cable TV 86,310 84,000
Tarrant County Waste Disposal 59,237 56,000
Others 55,705 63,000
1,319,112 1,296,000
General sales tax 2,121,977 2,080,000
72,746
9,476
82,222
(3,584)
34,217
(5,773)
2,310
3,237
(7,295)
23,112
41,977
Fines and fees:
Franchise fees 381,948 394,153 (12,205)
Municipal Court fines 463,578 650,000 (186,422)
Dog licenses and pound fees 9,214 11,000 (1,786)
Ambulance fees 117,135 115,000 2,135
971,875 1,170,153 (198,278)
Licenses and permits:
Building permits 119,249 160,000 (40,751)
Miscellaneous permits 95,522 100,000 (4,478)
Electric licenses 22,629 11,000 11,629
237,400 271,000 (33,600)
Interest income 380,176 380,000 176
Intergovernmental 91,064 40,000 51,064
Other revenues:
Library receipts 14,770 15,000 (230)
Rental income 8,106 15,000 (6,894)
Texas Court cost service fee 13,526 12,000 1,526
Jail income 205,747 125,000 80,747
Swimming pools 17,997 10,000 7,997
Miscellaneous income 133,792 42,775 91,017
393,938 219,775 174,163
TOTAL REVENUES 9,667,585 9,526,749 140,836
-6-
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL FUND
Year ended September 30, 1991
Expenditures:
Current:
City Council
General government
Civil Service
Police Department
Legal and Corporation Court
Fire Department
Street Department
Planning and development
Library
Recreation Department
Swimming pools
Civic Center/Administrative
Services
Code enforcement
Environmental
Parks Department
Nondepartmental
Capital outlay and maintenance
TOTAL EXPENDITURES
EXPENDITURES OVER REVENUES
Other financing sources:
Operating transfers in
EXCESS OF EXPENDITURES OVER
REVENUES AND OTHER FINANCING SOURCES
Fund balance, beginning of year
Residual equity transfers in
Residual equity transfers out
Actual
$ 33,105
471,517
127,510
3,313,089
211,883
2,188,579
507,226
114,894
358,801
238,626
52,396
Budget
$ 51,400
465,925
143,173
3,412,576
227,827
2,318,913
535,907
123,539
377,214
248,051
64,986
449,191 499,729
196,217 199,428
168,366 170,012
581,434 630,507
1,208,755 1,137,927
10,199
10,231,/88 10,607,114
EXHIBIT 3
(continued)
Variance
Favorable
(Unfavorable)
$ 18,295
(5,592)
15,663
99,487
15,944
130,334
28,681
8,645
18,413
9,425
12,590
50,538
3,211
1,646
49,073
(70,828)
(10,199)
375,326
(564,203) (1,080,365) 516,162
421,800 441,053 (19,253)
(142,403) (639,312) 496,909
1,904,241 1,904,241
28,946
(70,938)
FUND BALANCE, END OF YEAR $ 1,719,846 1,264,929
See accompanying notes to financial statements.
28,946
(70,938)
$ 454,917
CITY OF EULESS, TEXAS EXHIBIT 4
Operating revenues:
Water service
Sewer service
Drainage fees
Recreation fees
Insurance premiums
Service fees and miscellaneous
Operating expenses:
General and administrative
Water production
Water distribution
Utility engineering
Sewage collection and treatment
Nondepartmental
Service center --Note 7
Drainage
Recreation classes
Insurance costs --Note 10
Depreciation
Nonoperating revenues (expenses):
Investment income
Gain (loss) on sale of equipment
Interest on bonds
Operating transfer in
Operating transfers out
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
Year ended September 30, 1991
With comparative totals for September 30, 1990
Proprietary
Enterprise Funds
TOTAL OPERATING REVENUES
TOTAL OPERATING EXPENSES
OPERATING INCOME
TOTAL NONOPERATING REVENUES, NET
INCOME BEFORE OPERATING TRANSFERS
INCOME (LOSS) BEFORE CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING METHOD
Cumulative effect of change in accounting method --Note 15
NET INCOME
Add depreciation on fixed assets acquired with contributed capital:
Depreciation charged to expense relating to 1991 and 1990--Note 9
Depreciation arising in years prior to 1990--Note 15
Residual equity transfers in
Retained earnings, beginning of year
INCREASE IN RETAINED EARNINGS
RETAINED EARNINGS, END OF YEAR
Fund Types
Internal
Service Funds 1991
Totals (Memorandum Only)
1990
$ 4,478,380 $ $ 4,478,380 $ 4,651,013
2,560,162 2,560,162 2,608,620
297,272 297,272
227,395 227,395
1,497,632 1,497,632
358,706 264,631 623,337
7,921,15 1,762,263 9,684,178
282,204 195,474 477,678
2,652,142 2,652,142
297,596 297,596
154,837 154,837
980,849 980,849
1,454,758 1,454,758
492,465 492,465
52,050 52,050
221,101 221,101
1,270,456 1,270,456
804,229 21,447 825,676
7,392,231 1,487,377 8,879,608
529,684 274,886 804,570
401,686 66,193 467,879
1,196 1,196
(312,925) (312,925)
89,957 66,193 156,150
619,641 341,079 960,720
996,037
555,315
8,810,985
509,790
3,142,204
298,759
156,984
1,119,695
1,281,631
391,903
1,040,349
793,463
8,734,778
76,207
455,870
(3,575)
(327,288)
125,007
201,214
156,651 156,651
(465,491) (57,960) (523,451) (349,907)
154,150 439,770 593,920 (148,693)
154,150 439,770 593,920
426,241 426,241
29,938 60,644 90,582
610,329 500,414 1,110,743
9,957,836 436,302 10,394,138
$10.568.165 $ 936,716. 11 504,881
1,150,920
1,002,227
422,207
3,354,650
4,779,084
5,615,054
110}394,138
See accompanying notes to financial statements.
Cash and cash equivalents, beginning of year
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
Year ended September 30, 1991
With comparative totals for September 30, 1990
OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense
Increase (decrease) due to net changes in:
Accounts receivable
Due from other funds
Overdrafts payable
Accounts payable
Accrued salaries and wages
Customer and escrow deposits
Due to other funds
Deferred revenue
Total adjustments
NET CASH PROVIDED BY OPERATING ACTIVITIES
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds
Reduction in bonds payable
Operating transfer in
Enterprise Funds
$ 529,684
804,229
21,321
(486,601)
1,304,954
(30,932)
23,116
36,774
(110,920)
(7,800)
1,554,141
2,083,825
(312,925)
(290,000)
Operating transfers out (465,491)
Residual equity transfers in 29,938
NET CASH PROVIDED BY (USED IN) NONCAPITAL FINANCING ACTIVITIES (1,038,478)
CAPITAL FINANCING ACTIVITIES
Contributions in aid to construction
Purchase of utility plant and equipment in service
Proceeds from sale of utility plant in service
NET CASH USED IN CAPITAL FINANCING ACTIVITIES
INVESTING ACTIVITIES
Purchase of investment securities
Proceeds from sale or maturity of investment securities
Interest received on investments
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
77,702
(407,493)
4,100
(325,691)
Proprietary Fund Types
Internal
Service Funds
EXHIBIT 5
Totals (Memorandum Only)
1991
1990
$ 274,886 $ 804,570 $ 76,207
21,447 825,676 793,463
(42,479)
5,452
21,605
48,504
323,390
156,651
(57,960)
60,644
159,335
(482,104)
(482,104)
21,321
(486,601)
1,310,406
(30,932)
23,116
36,774
(89,315)
(7,800)
1,602,645
2,407,215
(312,925)
(290,000)
156,651
(523,451)
90,582
(879,143)
77,702
(889,597)
4,100
(807,795)
101,990
4,472
52,565
72,642
(7,800)
974,853
1,051,060
(331,225)
(320,000)
(349,907)
(1,001,132)
4,872
(223,368)
3,952
(214,544)
(8,421,310) (778,965)
7,127,714
474,003 66,193 419,380
(819,593) 66,193 (359,585)
(8,421,310)
7,127,714
540,196
(753,400)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (99,937) 66,814 (33,123) (524,201)
2,300,360 506,073 2,806,433 3,330,634
CASH AND CASH EQUIVALENTS, END OF YEAR $ 2.200.423 - 572.887 1 2,773,310 $ 2,806,433
See accompanying notes to financial statements.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1991
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Euless (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 princi-
ples. The City's significant accounting policies are described below.
A. REPORTING ENTITY
The combined financial statements of the City include all govern-
ment activities and entities for which the City exercises over-
sight responsibility. The criteria considered in determining
governmental activities and entities to be reported within the
City's combined financial statements include the degree of over-
sight responsibility (e.g. financial interdependency, selection of
governing authority, designation of management, ability to signif-
icantly influence operations) exercised by the City over a govern-
ment activity or entity, the City's accountability for the activ-
ity's or entity's fiscal matters, its scope of public service and
the nature of any special financing relationships which may exist
between the City and the government activity or entity. These
criteria are based upon and consistent with the Government
Accounting and Financial Reporting Standards.
The City provides the full range of municipal services contem-
plated by statute or charter. Included in these services are
traditional city functions such as police and fire protection,
road and traffic signal maintenance, water and sewer operations,
parks, recreation, courts and library services. The following
entities are not included in the combined financial statements
because they are autonomous governments and do not meet any of the
above criteria.
Hurst -Euless -Bedford Independent School District - provides
education services;
Texas Municipal Retirement System - provides retirement
benefits to City employees;
Trinity River Authority of Texas - provides water and sewer
services to various municipalities;
Texas Municipal League Joint Self Insurance Fund - provides
administrative services for various municipalities' self
insurance plans.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES --Continued
The accounting policies of the City conform to generally accepted
accounting principles as applicable to governmental units. The
following is a summary of the more significant of such policies:
B. FUND ACCOUNTING
The City uses funds and account groups to report on 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 cer-
tain 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, propri-
etary 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 disburse-
ment of earmarked monies (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.
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 primarily within the City (internal service funds).
C. 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
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES --Continued
current liabilities generally are included in the balance sheet.
Operating statements of these funds present increases (i.e., reve-
nues and other financing sources) and decreases (i.e., expendi-
tures 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 modified accrual basis of accounting is used by all governmen-
tal fund types and agency funds. Under the modified accrual basis
of accounting, revenues are recognized when susceptible to accrual
(i.e., when they become both measurable and available). "Measur-
able" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon
enough thereafter to be used to pay liabilities of the current
period. The City considers property taxes as available if they
are collected within 60 days after year-end. A one-year avail-
ability period is used for revenue recognition for all other
governmental fund revenues. 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 property taxes,
gross receipts tax and interest revenue. Sales taxes collected
and held by the state at year-end on behalf of the City also are
recognized as revenue. Fine and permit revenues are not suscept-
ible to accrual because generally they are not measurable until
received in cash.
The accrual basis of accounting is utilized by Proprietary Fund
Types. 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
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES --Continued
the current period. Deferred revenues also arise when resources
are received by the government before it has a legal claim to
them, as when grant monies are received prior to the incurrence of
qualifying expenditures. 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. Defer-
red revenues primarily include delinquent property taxes and unex-
pended revenues for capital projects.
In May 1990, The Governmental Accounting Standards Board issued
Statement No. 11, "Measurement Focus and Basis of Accounting --
Governmental Fund Operating Statements." The Statement estab-
lishes an accrual basis of accounting with a financial resources
measurement focus for governmental funds. The operating results
expressed using the financial resources measurement focus show the
extent to which financial resources obtained during a period are
sufficient to cover claims incurred during that period against
financial resources. The City currently follows the modified
accrual basis described above. The City will be required to
comply with Statement 11 for periods beginning after July 15,
1994. The City has not yet completed the complex analysis
required to estimate the financial statement impact of Statement
11.
D. 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 the 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,
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES --Continued
any revisions that alter 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 City
Council have not been altered.
(5) Formal budgetary integration is employed as a manage-
ment control device during the year for the General
Fund. Budgetary control is maintained at the function
level.
(6) A budget for the General Fund is legally adopted on a
basis consistent with generally accepted accounting
principles. Appropriations and encumbrances lapse at
year-end.
(7) The City does not maintain a formal budget for the
Special Revenue Funds due to minimal activity occuring
within the funds.
(8) Formal budgetary integration is not employed for the
Debt Service Funds because effective budgetary control
is alternatively achieved through general obligation
bond indenture provisions.
(9)
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.
(10) Appropriated budgets for the Proprietary Funds are also
adopted, but have not been presented since reporting on
such budgets is not legally required.
E. CASH, CASH EQUIVALENTS AND INVESTMENTS
Substantially all operating cash, cash equivalents, and short-term
investments are maintained in consolidated cash, cash equivalent,
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 solely of cash
-14-
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES --Continued
invested in the Local Government Investment Fund for Texas and
highly liquid investments with original maturities of three months
or less. The Local Government Investment Fund is a pooled invest-
ment fund for the benefit of governments within the State of Texas
which invests in securities as allowed under state statutes.
For purposes of the combined statement of cash flows, the Enter-
prise and Internal Service Funds consider all highly liquid
investments (including cash equivalents reported as restricted
assets of $900,452 and $352,380 at September 30, 1991 and 1990,
respectively) as set forth above to be cash equivalents.
Short-term investments consist of certificates of deposit and
U. S. Government securities with original maturities of three
months or more. These investments are stated at cost or amortized
cost.
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 deposit
within established criterion.
F. TAXES
Property taxes attach as an enforceable lien on property as of
January 1, are levied for appropriation for the fiscal year begin-
ning 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 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, 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 $.54085 per
$100 of assessed valuation ($.4875 per $100 last year) and
assessed valuation is approximately 100% of estimated actual value.
G. INVENTORIES
Inventories, which are recognized as expenditures as they are
consumed, are stated at cost (first -in, first -out method) for the
General Fund. Inventories consist primarily of expendable
supplies.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES --Continued
H. 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, Capital Projects Funds and Special Revenue
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
the assets:
Equipment
Waterworks and sanitary sewer system
I. COMPENSATED ABSENCES
5 - 15 years
33-1/3 years
Employees may accumulate a maximum of two times their annual vaca-
tion. The City's policy is to pay the employee for accumulated
vacation upon termination. The City does not pay employees for
accumulated sick leave upon termination. In fiscal 1991, the City
recorded an estimated liability for compensated absences. The
amounts were not recorded in prior years as they were not believed
to be material to the City's financial position. Accumulated
vacation in the proprietary funds has been accrued as incurred and
reported as accrued salaries and wages (a current liability). The
accumulated vacation for governmental fund types, representing an
estimate of the amount not expected to be liquidated with expend-
able available financial resources, has been recorded in the
General Long -Term Liabilities Account Group in accordance with
provisions of NCGA Statement No. 4, "Accounting and Financial
Reporting Principles for Claims and Judgments and Compensated
Absences". The estimated vacation liability expected to be
satisfied with available financial resources is included in
accrued salaries and wages in the General Fund.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES --Continued
J. 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.
At September 30, 1991, the Insurance Fund (reported with the
Internal Service Funds) reflected a deficit fund balance of
approximately $72,000. It is anticipated that future revenues
will eliminate the deficit.
K. COMPARATIVE DATA
Comparative total data for the prior year have been presented in
the accompanying combined financial statements in order to provide
an understanding of the changes in the City's financial position,
operations and cash flows. Complete comparative data (i.e.
presentation of prior year totals by fund type in each of the
statements) have not been presented since its inclusion would make
the statements unduly complex and difficult to read.
L. TOTALS (MEMORANDUM ONLY) COLUMN ON COMBINED STATEMENTS
The totals column on the combined statements are captioned Memo-
randum Only to indicate that they are presented only to facilitate
financial analysis. Data in these columns do not present finan-
cial position, results of operations, or changes in financial
position in conformity with generally accepted accounting princi-
ples. Neither is such data comparable to a consolidation. Inter -
fund eliminations have not been made in the aggregation of this
data.
M. INTERFUND TRANSACTIONS
Quasi -external transactions are accounted for as revenues, expen-
ditures 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 expendi-
tures/expenses in the reimbursing fund and as reductions of expen-
ditures/expenses in the fund that is reimbursed.
All other interfund transactions, except quasi -external transac-
tions and reimbursements, are reported as transfers. Nonrecurring
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES --Continued
or nonroutine permanent transfers of equity are reported as
residual equity transfers. All other interfund transfers are
reported as operating transfers.
N. RECLASSIFICATIONS
Certain reclassifications have been made to the data contained in
the 1990 total columns to conform to the method of presentation in
the 1991 financial statements.
NOTE 2--DEPOSITS AND INVESTMENTS
Deposits: At year-end, the ledger balances of the City's bank depos-
its totalled $(55,218) and the bank balances were $417,577. Of the
bank balances, $341,856 were protected by federal depository insurance
or by collateral held by the City's agent in the City's name. The
remainder was collateralized with securities held by the pledging
financial institutions' trust departments in the City's name.
Investments: At September 30, 1991, the City's investments are cate-
gorized as either (1) insured or registered or for which the securi-
ties are held by the City or its agent in the City's name; (2)
uninsured and unregistered for which the securities are held by the
financial institution's trust department or agent in the City's name;
or (3) uninsured and unregistered for which the securities are held by
the broker or dealer, or by its trust department or agent but not in
the City's name, as follows:
Categories Carrying Market
1 2 3 Amount Value
U. S. securi-
ties 19 ,066,986 $
Local Govern-
ment Invest-
ment Fund
Deferred Com-
pensation
Agency Fund
investments
$
- $ 9,066,986 $ 8,987,900
2,561,022 2,561,000
1,860,283 1,860,300
$13.488.291 $13.409.200
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 2--DEPOSITS AND INVESTMENTS --Continued
The Deferred Compensation Agency Fund investments are held by indepen-
dent investment managers for the ultimate benefit of the City
employees and are not covered by the state statutes restricting
investment instruments and requiring collateralization.
NOTE 3--LONG-TERM DEBT
A summary of long-term debt transactions for the year ended Septem-
ber 30, 1991, is as follows:
General long-term debt
account group:
General Obligation
Bonds
Certificates of
Obligation
Notes payable
Compensated
absences
Proprietary Fund
Types:
Water and Sewer
Revenue Bonds
Balance
Beginning
of Year Increase
$ 9,256,587
3,579,572
Decrease
$ - $ 620,000
192,914
770,386
184,572
25,536
322,406
412.836.159 $ 963,300 $.1.152,514
$ 41615,000 $
Balance
End of Year
$ 8,636,587
3,395,000
167,378
447,980
11.2..646.945
- $ 290,000 $ 4,325000
Debt outstanding at September 30, 1991, consists of the following:
General Obliga-
tion Bonds
Certificates of
Obligation
Notes payable
Water and Sewer
Revenue Bonds
Range of
Interest Rates
6.00 to 10.0%
6.75 to 7.40%
7.34%
4.50 to 10.75%
Outstanding
Balance
$ 8,636,587
$ 3,395,000
$ 167,378
$ 4,325,000
Current Long-term
Maturities Maturities
$ 655,000
$ 110,000
$ 35,133
$ 260,000
$ 7,981,587
$ 3,285,000
$ 132,245
$ 4,065,000
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3--LONG-TERM DEBT --Continued
The debt matures serially through the year 2008 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 obligation are not determinable and have
not been included in the following summary.
1992
1993
1994
1995
1996
1997-2001
2002-2006
2007-2008
Less
interest
General
Obligation
Bonds
$ 1,268,837
1,268,098
1,291,148
1,282,680
1,273,062
5,336,456
2,495,407
14,215,688
5,579,101
Certifi-
cates of
Obligation
$ 356,450
353,351
349,850
345,938
365,750
1,788,323
1,783,737
553,675
5,897,074
2,502,074
Principal $ 8.636.587 A3,395.000
Notes
Payable
$ 46,252
46,252
46,252
46,252
11,563
196,571
29,193
$167.378
Water and
Sewer
Revenue
Bonds
$ 553,900
547,700
544,925
542,350
551,625
2,650,900
1,014,100
6,405,500
2,080,500
Total
2,225,439
2,215,401
2,232,175
2,217,220
2,202,000
9,775,679
5,293,244
553,675
26,714,833
10,190,868
$4.325.000 11615231965
General Obligation Bonds authorized and unissued as of September 30,
1991, amounted to $300,000. Water and Sewer Revenue Bonds authorized
and unissued as of September 30, 1991, 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.
The notes payable included in the General Long-term Debt Account Group
were issued for the purchase of computer equipment and software. The
principal and interest on such notes will be paid with revenues from
the Police Drug Enforcement Fund.
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. See Note 14 for a
description of revenue bond issuances subsequent to year-end.
In accordance with the revenue bond ordinances, the following special
reserves were established:
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3--LONG-TERM DEBT --Continued
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 extraordi-
nary 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 retire-
ment prove deficient, the reserve for emergency shall be used
for the purpose of meeting principal and/or interest require-
ments of the bonds.
All funding requirements for the above reserves were met at Septem-
ber 30, 1991. 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 direct obligations of or obligations uncon-
ditionally guaranteed by the United States of America having maturi-
ties not in excess of ten and five years, respectively.
NOTE 4--RESTRICTED ASSETS
Restricted assets consist of cash, investments and accrued interest
primarily restricted for Water and Sewer Enterprise Fund debt service
and water and sewer system replacements.
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 cer-
tain revenue bonds; investment income of the funds may be applied to
current revenue bond interest up to stipulated amounts. As of Septem-
ber 30, 1991, the balance in the property sales proceeds account was
$467,226 and is included in restricted assets in the accompanying
balance sheet.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 5--COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a 50 year contract dated September 25, 1973,
with the Trinity River Authority of Texas (the "TRA") whereby the TRA
agrees to provide supplemental water and sewage treatment for consid-
eration. Payments by the City are based on metered usage at rates
designed to charge the City a pro-rata share of the TRA's annual
operating and maintenance expenses, and principal and interest
requirements on bonds issued by the TRA. Payments under this contract
approximated $3,292,000 in 1991 and are included as operating expenses
of the water and sewer fund. See Note 15 for a discussion of a change
in accounting method relating to this contract which was implemented
during fiscal 1990.
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 ended September 30, 1991:
Land
Buildings
Improvements other
than buildings
Machinery and
equipment
Total general
fixed assets
3,524,524
Balance
September 30,
1990
Additions Deletions
$ 871,250 $ - $
4,706,440
221,555
800,417 178,819 979,236
222,557 89,636 3,657,445
Balance
September 30,
1991
- $ 871,250
4,927,995
t9.904631 $ 622.931 $ 89,636 i101435,926
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 6--FIXED ASSETS --Continued
The following is a summary of utility plant and equipment in service
at September 30, 1991 included in the proprietary funds:
Water and Sewer Internal
Enterprise Fund Service Funds
Land $ 1,528,966 -
Equipment 973,834 589,337
Waterworks and sanitary
sewer system 25,131,625
Construction -in -progress 204,859
27,839,284 589,337
Less accumulated depreciation 9,007,643 21,447
$18,831`641, $ 5672890
NOTE 7--SERVICE CENTER
The Water and Sewer Enterprise Fund historically bears the major por-
tion of the operating costs of the City's service center which pro-
vides services to all city departments.
NOTE 8--INTERFUND ASSETS/LIABILITIES
Due from/to other funds:
Receivable Fund Payable Fund Amount
General Fire Department Certificates
of Obligation $ 33,000
Risk Management 31,303
Water and sewer General 587,299
Risk Management 31,302
$ 682.904
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 9--CONTRIBUTED CAPITAL
During fiscal 1991, contributed capital of the Water and Sewer Enter-
prise Fund increased by developer's contributions in aid to construc-
tion in the amount of $77,702 and decreased $426,241 representing
current year depreciation on assets acquired with contributed capital.
NOTE 10--RISK MANAGEMENT
The City participates in the Texas Municipal League Joint Self Insur-
ance Fund ("TMLIF") to provide both general liability and property
insurance. The City, along with other participating entities, con-
tributes 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 coverage on a self -insured basis.
Premiums are paid into a separate Insurance Fund by 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 $45,000 and aggregate
claims in excess of $707,000. During fiscal 1991, the City and the
City's employees contributed approximately $677,000 and $253,000,
respectively, for medical coverage. The City's contributions are
accounted for as quasi -external transactions. Claims incurred but not
reported have been considered by the Internal Service Fund in deter-
mining the claims liability at September 30, 1991.
The City is also self -insured for workers' compensation claims.
Contributions are made to a separate workers' compensation 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 1991,
the City contributed approximately $568,000 to the fund for workers'
compensation.
NOTE 11--EMPLOYEE RETIREMENT SYSTEM
Plan Description: The City provides pension benefits for all of its
full-time employees through a nontraditional, joint contributory,
defined contribution plan in the state-wide Texas Municipal Retirement
System ("TMRS"), one of over 570 administered by TMRS, an agent
multiple -employer public employee retirement system. It is the
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11--EMPLOYEE RETIREMENT SYSTEM --Continued
opinion of TMRS management that the plans in TMRS are substantially
defined contribution plans, but they have elected to provide addi-
tional voluntary disclosure to help foster a better understanding of
some of the nontraditional characteristics of the plan.
Benefits depend upon the sum of the employees' contributions to the
plan, with interest, and the City -financed monetary credits, with
interest. At the date the plan began, the City granted monetary
credits for past service rendered, of a theoretical amount equal to
two times the amount that 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 employees' accumulated contributions. In addition, the City
can grant as often as annually another type of monetary credit refer-
red to as an updated service credit. This credit is a theoretical
amount which, when added to an employee's accumulated contributions
and monetary credits for service since the plan began, would result in
the total monetary credits and employee contributions accumulated
(with interest) if the current employee contribution rate and 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 or more years of
service or with 25 years of service regardless of age. The plan also
provides death and disability benefits. A member is vested after 10
years, but he must leave his accumulated contributions in the plan.
If a member withdraws his own money, he is not entitled to any
employer -financed monetary credits. 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% of their
salaries. The City matching percent is currently 200% of the
employees' contributions. Both the employee and City contribution
rates have been adopted by the governing body of the City. Under the
state law governing TMRS, the City contribution rate is determined
annually by the actuary. 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
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11--EMPLOYEE RETIREMENT SYSTEM --Continued
year. The normal cost contribution rate finances the currently accru-
ing monetary credits arising from the City matching percent. 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. When
the City periodically adopts updated service credits and increases in
annuities, the increased unfunded actuarial liability is amortized
over a new 25-year period. Currently, the unfunded actuarial liabil-
ity is being amortized over the 25-year period which began January
1991. The unit credit actuarial cost method is used for determining
the City contribution rate. Contributions are made monthly by both
the employees and the City. Since the City needs to know its contri-
bution rate in advance for budgetary purposes, there is a one-year lag
between the actuarial valuation that is the basis for the rate and the
calendar year when the rate goes into effect.
The City's total payroll in fiscal year 1991 was approximately
$7,360,000, and the City's contributions were based on a payroll of
$7,060,000. Both the City and the covered employees made the required
contributions, amounting to $806,934 (11.38% of covered payroll for
the months in calendar year 1990, 8.89% normal cost plus 2.49% to
amortize the unfunded actuarial liability, and 11.44% for the months
in calendar year 1991, 8.89% normal cost plus 2.55% to amortize the
unfunded actuarial liability) for the City and $494,256 (7%) for the
employees. The City adopted changes in the plan since the previous
actuarial valuation, which had the effect of increasing the City's
contribution rate for 1991 by .08% of payroll.
Funding Status and Progress: The substance of the City's plan is not
to provide a defined benefit in some form. However, some additional
voluntary disclosure is appropriate due to the nontraditional nature
of the defined contribution plan which had an initial unfunded pension
benefit obligation and which can have additions to the unfunded pen-
sion benefit obligation through the periodic adoption of increases in
benefits. Statement No. 5 of the Governmental Accounting Standards
Board (GASB 5) defines a pension benefit obligation as a standardized
disclosure measure of the actuarial present value of pension benefits,
adjusted for the effects of projected salary increases, estimated to
be payable in the future as a result of employee service to date. The
measure is intended to help users assess the funding status of public
employee pension plans, assess progress made in accumulating suffi-
cient assets to pay benefits when due, and make comparisons among
public employee pension plans.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11--EMPLOYEE RETIREMENT SYSTEM --Continued
The pension benefit obligation shown below is similar in nature to the
standardized disclosure measure required by GASB 5 for defined benefit
plans except that there is no need to project salary increases since
the benefit credits earned for service to date are not dependent upon
future salaries. The calculations were made as part of the annual
actuarial valuation as of December 31, 1990. Because of the money -
purchase nature of the plan, the interest rate assumption, currently
8.5% per year, does not have as much impact on the results as it does
for a defined benefit plan. Market value of assets is not determined
for each participating city's plan, but the market value of assets for
TMRS as a whole was 106.2% of book value as of December 31, 1990.
Pension benefit obligation
Annuitants currently receiving benefits
Terminated employees
Current employees:
Accumulated employee contributions including
allocated invested earnings
Employer -financed vested
Employer -financed nonvested
$ 1,361,500
1,351,300
4,076,500
5,812,900
1,687,900
Total $14.290.100
Net assets available for benefits, at book value $11.109,700
Unfunded pension benefit obligation $ 3.180.400
The book value of assets is amortized cost for bonds and original cost
for short-term securities and stocks. The actuarial assumptions used
to compute the actuarially determined City contribution rate are the
same as those used to compute the pension benefit obligation. The
amounts above reflect the adoption of changes in the plan since the
previous actuarial valuation, which had the effect of increasing the
pension benefit obligation by $181,700.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11--EMPLOYEE RETIREMENT SYSTEM --Continued
Trend information for TMRS is as follows:
Year
1989
1990
1991
Net Assets Available
For Benefits as a
Percent of Pension
Benefit Obligation
76.09'%,
76.60
77.74
Unfunded Pension
Benefit Obligation
as a Percent of
Covered Payroll
39.82%
44.01
45.05
City Contribution
as a Percent of
Covered Payroll
10.82%
11.38
11.44
Historical trend information for TMRS is presented in the Statistical
Section, Table 14 of the City's Comprehensive Annual Financial
Report. This table provides information about progress made in
accumulating sufficient assets to pay benefits when due.
NOTE 12--DEFERRED COMPENSATION PLAN
The City offers its employees a Non-contributory Deferred Compensation
Plan (the "Plan") consistent with Internal Revenue Code Section 457.
Plan asset ownership remains with the City until the employee termi-
nates employment with the City, retires, or experiences an unforesee-
able emergency. Employees may contribute voluntarily to the Plan up
to $7,500 annually.
Assets of the Plan are invested
The current market value of the
1991 was approximately $1,860,300
ties. All contributions to the
administrator of the Plan.
primarily in various mutual funds.
funds' investments at September 30,
. The Plan has no unfunded liabili-
Plan are remitted bi-weekly to the
All amounts of compensation deferred under the Plan, all assets
purchased with these amounts, and all income attributable to these
amounts, are (until paid or made available to the employee or other
beneficiary) solely the property and rights of the City subject only
to the claims of the City's general creditors. The City has no legal
liability for losses of the Plan, but does have the duty of due care
that would be required of an ordinary prudent investor. The City
believes it is unlikely that it will use the assets to satisfy the
claims of general creditors in the future. The Plan is reported as a
fiduciary fund in the accompanying financial statements.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 12--DEFERRED COMPENSATION PLAN --Continued
The deferred compensation plan was not reported by the City prior to
fiscal 1991. Thus, the 1990 comparative total columns have been
restated to include the deferred compensation plan assets. Operating
results of the City were not affected by this restatement.
NOTE 13--SEGMENTS OF ENTERPRISE ACTIVITIES
The City maintains three 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 Utility Drainage Fund (initi-
ated in fiscal 1991) provides drainage services. The Recreation Fund
(previously reported with General Fund activities) provides various
recreational services and activities.
Segment information for the City's Enterprise Funds is as follows:
Operating revenues
Depreciation
Operating income
Operating transfers
out
Net income (loss)
Current capital:
Contributions
Transfers
Property, plant and
equipment:
Additions
Disposals
Total assets
Net working capital
Long-term debt,
including current
portion
Total equity
Water and
Sewer Fund
$ 7,397,248
804,229
278,168
454,551
(88,725)
77,702
407,493
16,294
26,408,446
2,962,281
4,325,000
19,961,685
$
Drainage
Fund
297,272
245,222
10,940
235,661
235,661
235,661
235,661
Recreation
Fund
227,395
6,294
7,214
29,938
37,152
37,152
37,152
Total
$ 7,921,915
804,229
529,684
465,491
154,150
77,702
29,938
407,493
16,294
26,681,259
3,235,094
4,325,000
20,234,498
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 14--SUBSEQUENT EVENTS
In November 1991, the City issued $2,335,000 Waterworks and Sewer
System Revenue Refunding Bonds. The proceeds from these bonds were
primarily used to refund approximately $2,075,000 of the City's out-
standing series 1983 Water and Sewer Revenue Bonds. The interest
rates on the new bonds range from 4.60% to 6.00%.
The City also issued Municipal Drainage Utility System Revenue
amounting to $2,100,000 in November 1991. The proceeds of such
are to be used for drainage system improvements. The interest
on the bonds range from 4.75% to 6.70%.
Bonds
bonds
rates
A revised schedule of all water and sewer and drainage utility revenue
bond maturities for the next five years, including the impact of the
above described new issues, follows:
1992
1993
1994
1995
1996
Thereafter
Less interest
Water and Sewer
Revenue Bonds
$ 549,731
527,740
528,285
521,920
535,205
3,555,670
6,218,551
1,633,551
Principal $4.585.000
NOTE 15--CHANGES IN ACCOUNTING METHODS
Drainage
Revenue Bonds
103,193
155,808
154,620
153,370
152,070
3,131,515
3,850,576
1,750,576
$21100,000
The following describes changes in accounting methods which occurred
and were reported in fiscal 1990, as reflected in the 1990 comparative
total columns throughout these financial statements.
Developers' Contribution Fund: Prior to fiscal 1990, the City
reported funds received for the purpose of making improvements to
development areas within the City in an agency fund. In 1990, the
City began recognizing these amounts as revenue in the Capital Pro-
jects Funds. The cumulative effect as of October 1, 1989, of this
change in accounting resulted in an increase in operating results and
fund balance of the capital projects funds of $1,204,983 for fiscal
1990.
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 15--CHANGES IN ACCOUNTING METHODS --Continued
Water and Sewer Enterprise Fund: Prior to 1990, the City accounted
for a 50 year contract with the TRA for supplemental water and sewage
treatment services similar to a capital lease. In 1990, the City
changed its method for accounting for this contract to report all pay-
ments to the TRA as operating expenses in the Water Production, Water
Distribution and Sewage Collection and Treatment cost centers instead
of allocating some of the payments to principal and interest. Pre-
viously capitalized contract rights and obligations were reversed and
the cumulative effect ($1,150,920) as of October 1, 1989 was reported
as an increase in 1990 operating results of the Water and Sewer Enter-
prise Fund.
Additionally, in order for contributed capital to more closely approx-
imate the remaining book value of the assets acquired, the City con-
cluded in 1990 that it would be preferable to classify the deprecia-
tion on assets acquired with contributed capital as a reduction of
contributed capital instead of a reduction of retained earnings as
previously classified. Thus, the City changed its method of recording
this depreciation and reclassified estimated accumulated prior years'
depreciation expense of approximately $3,354,650 from retained earn-
ings to a reduction of contributed capital.
SPECIAL REVENUE FUNDS
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.
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
September 30, 1991
With comparative totals for September 30, 1990
Police
Hotel/ Drug
Motel Enforcement Totals
Fund Fund 1991 1990
ASSETS
A-1
Cash and cash
equivalents $ 40,899 $ 6,921 $ 47,820 $ 36,622
Short-term investments 51,494 102,694 154,188 87,336
Accrued interest
receivable 672 672
TOTAL ASSETS v$ 92.393 $ 110.287 $ 202.680 A123.958
FUND EQUITY
Fund Balances:
Reserved for drug
enforcement
Unreserved,
undesignated
- $ 110,287 $ 110,287 $ 112,556
92,393
92,393 11,402
TOTAL FUND BALANCES ,$ 92,393 $ 110,287 $ 202,680 $ 123.958
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
Year ended September 30, 1991
With comparative totals for September 30, 1990
Revenues:
Gross receipts tax
Other revenues
TOTAL REVENUES
A-2
Police
Hotel/ Drug
Motel Enforcement Totals
Fund Fund 1991 1990
$ 120,457 $ - $ 120,457 $ 115,052
2,147 83,528 85,675 93,000
122,604 83,528 206,132 208,052
Expenditures:
Planning and
development 124,413 3,653 128,066 160,971
Capital outlay
and mainte-
nance 7,200 82,144 89,344 40,053
TOTAL EXPENDITURES 131,613 85,797 217,410 201,024
EXCESS (DEFICIENCY)
OF REVENUES OVER
EXPENDITURES (9,009) (2,269) (11,278) 7,028
Other financing
sources:
Net operating
transfers in 103,982
EXCESS (DEFICIENCY)
OF REVENUES AND OTHER
FINANCING SOURCES
OVER EXPENDITURES (9,009) (2,269) (11,278) 111,010
Fund balances, begin-
ning of year 11,402 112,556 123,958 12,948
Residual equity
transfer in 90,000 90,000
FUND BALANCES,
END OF YEAR $ 92.393 $ 110.287 $ 202,680 $ 123,958
-34-
CAPITAL PROJECTS FUNDS
Park Improvements General Obligation Fund (1986) - to account for the
financing and construction of park facilities. Financing was pro-
vided primarily by the sale of general obligation bonds of $1,500,000
in 1986 and $430,000 in 1988. This fund was closed in fiscal 1991.
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 Improvement and Drainage
account for construction of
drainage projects. Financing
of general obligation bonds of
General Obligation Fund (1986) - to
improvements to various street and
was provided primarily from the sale
$1,000,000 in 1986.
Street Improvement Certificates of Obligation Fund (1989) - to account
for construction on Texas Highway 10. Financing was provided from
the sale of Certificates of Obligation of $1,500,000 in 1989. This
fund was closed in fiscal 1991.
Street Improvement and Drainage Certificates of Obligation Fund (1990)
to account for the construction of improvements to various street
and drainage projects. Financing was provided from the sale of
Certificates of Obligation in 1990.
Equipment Certificates of Obligation Fund (1986) - to account for the
purchase of communication equipment to be used generally in the area
of public safety. Financing was provided from the sale of Equipment
Certificates of $348,356 in 1986. This fund was closed in fiscal
1991.
Fire Department Certificates of Obligation Fund (1990) - to account
for improvements to the fire station and purchase of equipment for
the fire department. Financing was provided from the sale of
Certificates of Obligation in 1990.
Developers' Contribution Fund - to account for funds received for the
purpose of making new and future improvements to various development
areas within the City.
Conference Center Construction Fund - to account for financing and
construction of a planned conference center. Financing was pri-
marily provided through transfers from the Hotel/Motel Fund. This
fund was closed in fiscal 1991.
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
September 30, 1991
With comparative totals for September 30, 1990
B-1
Street Street
Park Park Improvement Street Improvement
Improvements Improvements and Drainage Improvement and Drainage Equipment Fire Department Conference
General Certificates of General Certificates Certificates Certificates Certificates of Developers' Center Totals
Obligation Obligation Obligation of Obligation of Obligation of Obligation Obligation Contribution Construction
Fund (1986) Fund (1990) Fund (1986) Fund (1989) Fund (1990) Fund (1986) Fund (1990) Fund Fund 1991 1990
ASSETS
Cash and cash equivalents $ - $ 173,537 $ 13,637 $ - $ 770,163 $ - $ 14,919 $ 609,039 $ - $ 1,581,295 $ 1,141,658
Short-term investments 279,759 609,971 718,251 1,607,981 2,722,605
Accounts receivable 38,771 38,771
Accrued interest receivable (44) 5,777 1,751 7,484 5,778
Due from other governments 338,174 338,174
I
G7 TOTAL ASSETS S - $ 791.426 $ 19.414 $ - $1.381.885 $ - 1 _53,690 11.327.290 $ - 1 3,573.705 $ 3.870.041
Cn
I
LIABILITIES AND FUND EQUITY
Customer and escrow deposits $ - $ - $ - $ - $ $ - $ - $ 143,804 $ - $ 143,804 $ 89,870
Due to other funds 33,000 33,000 132,000
Deferred revenue 492 373 492,373
TOTAL LIABILITIES 492,173 33,000 143,804 669,177 221,870
Fund balances:
Reserved for develop-
ment agreements 1,183,486 1,183,486 1,225,765
Unreserved, undesignated 299,053 19,414 1,381,885 20,690 1,721 042 2,422,406
TOTAL FUND EQUITY 299,053 19,414 1,381,885 20,690 1,183,486 2,904,528 3,648,171
TOTAL LIABILITIES
AND FUND EQUITY $ - 1 791,426 $ 19.414 S - .1a381.885 $ - 1 53,690 $1.327.290 $ - 3 3j573.705 1 3.870.041
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
Year ended September 30, 1991
With comparative totals for September 30, 1990
B-2
Street Street
Park Park Improvement Street Improvement
Improvements Improvements and Drainage Improvement and Drainage Equipment Fire Department Conference
General Certificates of General Certificates Certificates Certificates Certificates of Developers' Center Totals
Obligation Obligation Obligation of Obligation of Obligation of Obligation Obligation Contribution Construction
Fund (1986) Fund (1990) Fund (1986) Fund (1989) Fund (1990) Fund (1986) Fund (1990) Fund Fund 1991 1990
Revenues:
Interest income $ 49 $ 14,846 $ 4,159 $ 3,427 $ 51,164 $ 649 $ 3,656 $ 40,090 $ - $ 118,040 $ 22,663
Intergovernmental 38,801 38,801
Other revenues 12,862 15,692 28 554 50,679
TOTAL REVENUES 49 53,647 17,021 3,427 51,164 649 3,656 55,782 185,195 73,342
Expenditures:
Capital outlay and
maintenance 5,476 90,853 321,840 5,724 311,555 735,448 1,720,160
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (5,427) (37,206) 17,021 3,427 (270,676) (5,075) (307,899) 55,782 (550,053) (1,646,818)
Other financing sources (uses):
Net proceeds from issuance of
certificates of obligation 1,977,993
Operating transfers in 260,543 22,000 282,543
Operating transfers out (162,482) (77,000) (98,061) (337.543)
I TOTAL OTHER FINANCING
W SOURCES (USES) (162,482) 183,543 22,000 (98,061) (55,000) 1,977,993
v
I EXCESS (DEFICIENCY) OF
REVENUES AND OTHER FINANCING
SOURCES OVER EXPENDITURES AND
OTHER FINANCING USES BEFORE
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING METHOD (5,427) (37,206) (145,461) 3,427 (87,133) (5,075) (285,899) (42,279) (605,053) 331,175
Cumulative effect of change in
accounting method
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER FINANCING
SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
Fund balances, beginning
of year
Residual equity transfers in
Residual equity transfers out
FUND BALANCES, END OF YEAR $
1,204,983
(5,427) (37,206) (145,461) 3,427 (87,133) (5,075) (285,899) (42,279) (605,053) 1,536,158
5,427 336,259 164,875 130,446 1,335,145 24,719 306,589 1,225,765 118,946 3,648,171 2,112,013
133,873 133,873
(133.873) (19,644) (118,946) (272,463)
$ 299.053 $ 19,414 $ - $1.381.885 $ - 20,690 1}183.486 $ - $ 2.904.528 $ 3,648,171
ENTERPRISE FUNDS
Water and Sewer System - To account for the acquisition, operation and
maintenance of a municipal water and sewer utility, supported pri-
marily by user charges to the public.
Drainage Utility - To account for the acquisition, operation and main-
tenance of a municipal drainage utility, supported primarily by user
charges to the public. This fund was established in fiscal 1991.
Recreation Classes - To account for the operation of recreational pro-
grams and activities which are offered to groups and individuals on
a fee basis. This activity was previously accounted for in the
general fund.
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
September 30, 1991
With comparative totals for September 30, 1990
ASSETS
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable and unbilled revenue,
less allowance for estimated uncollect-
ible accounts of $1,463 in 1991 and 1990
Accrued interest receivable
Due from other funds
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 cash equivalents
Short-term investments
Property sale proceeds account:
Investments with paying agent, at cost
Capital projects account:
Cash and cash equivalents
Short-term investments
Customer deposits:
Cash and cash equivalents
Short-term investments
Interest receivable on investments
TOTAL RESTRICTED ASSETS
Totals
Water and Sewer Drainage Utility Recreation 1991 1990
C-1
$ 1,115,494 $ 147,325 $ 37,152 $ 1,299,971 $ 1,947,980
1,628,622 1,628,622
954,909
178
618,601
4,317,804
27,571
1,202,564
500,000
467,226
293,024
130,000
579,857
58,759
3,259,001
88,336 1,043,245 1,064,566
178 72,495
618,601 132,000
235,661 37,152 4,590,617 3,217,041
27,571 24,876
1,202,564 1,414,177
147,721
500,000 352,279
467,226 439,622
293,024 19,333
130,000 46,105
579,857 160,450
382,633
58,759 58,759
3,259,001 3,045,955
Utility plant and equipment in
service, at cost:
Land 1,528,966 1,528,966 1,528,966
Equipment 973,834 973,834 887,447
Waterworks and sanitary sewer system 25,131,625 25,131,625 25,031,672
Construction -in -progress 204,859 204,859
27,839,284 27,839,284 27,448,085
Less accumulated depreciation 9,007,643 9,007,643 8,216,804
NET UTILITY PLANT AND
EQUIPMENT IN SERVICE 18,831,641 18,831,641 19,231,281
TOTAL ASSETS $26.408.446 $ 235.661. $ 37.152 $26.681.259 $25.494.277.
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
September 30, 1991
With comparative totals for September 30, 1990
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Overdrafts payable
Accounts payable
Accrued salaries and wages
Due to other funds
TOTAL CURRENT LIABILITIES
Current obligations payable from restricted
assets:
Customer and escrow deposits
Current portion of bonds payable
Accrued interest
Bonds payable
Deferred revenue
TOTAL LIABILITIES
Fund equity:
Contributed capital:
From subdividers
From Environmental Protection Agency
From Trinity River Authority
Accumulated depreciation on assets
acquired with contributed capital
NET CONTRIBUTED CAPITAL
Retained earnings:
Reserved for:
Revenue bond debt service,
next maturing
Revenue bond retirement
Emergency
Construction
Unreserve
TOTAL RESERVED
d
TOTAL RETAINED EARNINGS
TOTAL FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
Water and Sewer Drainage Utility Recreation
$ 1,304,954
9,861
40,708
1,355,523
579,857
260,000
66,908
4,065,000
119,473
6,446,761
13,614,814
239,617
15,000
13,869,431
4,203,098
9,666,333
27,571
1,401,641
500,000
423,024
2,352,236
7,943,116
10,295,352
19,961,685
&26, 408,E 446
C-1
(Continued)
Totals
1991 1990
- $ - $ 1,304,954 $ -
9,861 40,793
40,708 17,592
110,920
1,355,523 169,305
235,661
235,661
235,661
579,857
260,000
66,908
4,065,000
119,473
6,446,761
13,614,814
239,617
15,000
13,869,431
4,203 098
9,666,333
543,083
290,000
66,908
4,325,000
127,273
5,521,569
13,537,112
239,617
15,000
13,791,729
3,776,857
10,014,872
27,571 24,876
1,401,641 1,555,650
500,000 500,000
423,024 65,438
2,352,236 2,145,964
37,152 8,215,929 7,811,872
37,152 10,568,165 9,957,836
37,152 20,234,498 19,972,708
A 235,661 37452 26,,681,259 4.21,494277
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
Year ended September 30, 1991
With comparative totals for September 30, 1990
Operating revenues:
Water service
Sewer service
Drainage fees
Recreation fees
Service fees and miscellaneous
TOTAL OPERATING REVENUES
Operating expenses:
General and administrative
Water production
Water distribution
Utility engineering
Sewage collection and treatment
Nondepartmental
Service center
Drainage
Recreation classes
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME
Nonoperating revenues (expenses):
Investment income
Gain (loss) on sale of equipment
Interest on bonds
TOTAL NONOPERATING REVENUES, NET
INCOME BEFORE OPERATING TRANSFERS
Operating transfers out
INCOME (LOSS) BEFORE CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING METHOD
Cumulative effect of change in accounting
method
NET INCOME (LOSS)
Add depreciation on fixed assets acquired
with contributed capital:
Depreciation charged to expense
relating to 1990 and 1991
Depreciation arising in years prior
to 1990
Residual equity transfer
INCREASE IN RETAINED EARNINGS
Retained earnings, beginning of year
Water and Sewer Drainage Utility Recreation
$ 4,478,380
2,560,162
358,706
7,397,248
282,204
2,652,142
297,596
154,837
980,849
1,454,758
492,465
804,229
7,119,080
278,168
399,387
1,196
(312,925)
87,658
365,826
(454,551)
(88,725)
(88,725)
426,241
337,516
9,957,836
RETAINED EARNINGS, END OF YEAR $10.295=352
Totals
1991 1990
$ - $ 4,478,380
2,560,162
297,272 297,272
227,395 227,395
358,706
297,272 227,395 7,921,915
282,204
2,652,142
297,596
154,837
980,849
1,454,758
492,465
52,050 52,050
221,101 221,101
804,229
52,050 221,101 7,392,231
245,222 6,294 529,684
1,379 920 401,686
1,196
(312,925)
1,379 920 89,957
246,601 7,214 619,641
(10,940) (465,491)
235,661 7,214 154,150
235,661 7,214 154,150
426,241
29,938 29,938
235,661 37,152 610,329
9,957,836
235.661 $ 37.152 $10.568.165
C-2
$ 4,651,013
2,608,620
319,892
7,579,525
368,340
3,142,204
298,759
156,984
1,119,695
1,281,631
391,903
793,463
7,552,979
26,546
443,163
(3,575)
(327,288)
112,300
138,846
(349,907)
(211,061)
1,150 920
935,859
422,207
3,354,650
(219,599)
4,497,117
5,460,719
$ 9.957.836
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
September 30, 1991
With comparative totals for September 30, 1990
Water and Sewer Drainage Utility Recreation
OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating
income to net cash provided by
operating activities:
Depreciation expense
Increase (decrease) due to net
changes in:
Accounts receivable
Due from other funds
Overdrafts payable
Accounts payable
Accrued salaries and wages
Customer and escrow deposits
Due to other funds
Deferred revenue
Total adjustments
NET CASH PROVIDED BY
OPERATING ACTIVITIES
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds
Reduction in bonds payable
Operating transfers out
Residual equity transfers
NET CASH PROVIDED BY (USED IN)
NONCAPITAL FINANCING ACTIVITIES
CAPITAL FINANCING ACTIVITIES
Contributions in aid to construction
Purchase of utility plant in service
Proceeds from sale of utility plant
in service
NET CASH USED IN CAPITAL
FINANCING ACTIVITIES
INVESTING ACTIVITIES
Purchase of investment securities
Proceeds from sale or maturity of
investment securities
Interest received on investments
NET CASH PROVIDED BY (USED
IN) INVESTING ACTIVITIES
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
Cash and cash equivalents,
beginning of year
CASH AND CASH EQUIVALENTS,
END OF YEAR
$ 278,168
804,229
109,657
(486,601)
1,304,954
(30,932)
23,116
36,774
(110,920)
(7,800)
1,642,477
1,920,645
(312,925)
(290,000)
(454,551)
(1,057,476)
77,702
(407,493)
4,100
(325,691)
(8,421,310)
7,127,714
471,704
(821,892)
(284,414)
2,300,360
2.015.946,
$ 245,222
(88,336)
(88,336)
156,886
(10,940)
(10,940)
1,379
1,379
147,325
Totals
1991
$ 6,294 $ 529,684 $
804,229
21,321
(486,601)
1,304,954
(30,932)
23,116
36,774
(110,920)
(7,800)
1,554,141
6,294 2,083,825
29,938
29,938
(312,925)
(290,000)
(465,491)
29,938
(1,038,478)
77,702
(407,493)
4,100
(325,691)
(8,421,310)
7,127,714
920 474,003
920 (819,593)
37,152
(99,937)
2,300,360
$ 147.325 $ 37.152 $ 2.200.423
C-3
1990
26,546
793,463
(42,479)
32,490
4,472
52,565
72,642
(7,800)
905,353
931,899
(331,225)
(320,000)
(349,907)
(219,599)
(1,220,731)
4,872
(116,135)
3,952
(107,311)
(778,965)
406,673
(372,292)
(768,435)
3,068,795
3 2.300.360
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
September 30, 1991 and 1990
ASSETS
Current assets:
Cash and cash equivalents
Short-term investments 1,628,622
Accounts receivable and unbilled revenue,
less allowance for estimated uncollect-
ible accounts of $1,463 in 1991 and 1990 954,909
Accrued interest receivable 178
Due from other funds 618,601
TOTAL CURRENT ASSETS 4,317,804
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond retirement:
Investments with paying agent, at cost
Revenue bond emergency:
Cash and cash equivalents
Short-term investments
Property sale proceeds account:
Investments with paying agent, at cost
Capital projects account:
Cash and cash equivalents
Short-term investments
Customer deposits:
Cash and cash equivalents
Short-term investments
Interest receivable on investments
TOTAL RESTRICTED ASSETS
Utility plant and equipment in
service, at cost:
Land
Equipment
Waterworks and sanitary sewer system
Construction -in -progress
Less accumulated depreciation
NET UTILITY PLANT AND
EQUIPMENT IN SERVICE
1991
1990
C-4
$ 1,115,494 $ 1,947,980
1,064,566
72,495
132,000
3,217,041
27,571 24,876
1,202,564 1,414,177
147,721
500,000 352,279
467,226 439,622
293,024 19,333
130,000 46,105
579,857 160,450
382,633
58,759 58,759
3,259,001 3,045,955
1,528,966
973,834
25,131,625
204,859
27,839,284
9,007,643
18,831,641
TOTAL ASSETS $26.408.446
1,528,966
887,447
25,031,672
27,448,085
8,216,804
19,231,281
25.494.277
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Overdrafts payable
Accounts payable
Accrued salaries and wages
Due to other funds
TOTAL CURRENT LIABILITIES
Current obligations payable from
restricted assets:
Customer and escrow deposits
Current portion of bonds payable
Accrued interest
Bonds payable
Deferred revenue
TOTAL LIABILITIES
Fund equity:
Contributed capital:
From subdividers
From Environmental Protection Agency
From Trinity River Authority
Accumulated depreciation on assets
acquired with contributed capital
NET CONTRIBUTED CAPITAL
C-4
(Continued)
1991 1990
$ 1,304,954 $
9,861 40,793
40,708 17,592
110,920
1,355,523 169,305
579,857 543,083
260,000 290,000
66,908 66,908
4,065,000 4,325,000
119,473 127,273
6,446,761 5,521,569
13,614,814 13,537,112
239,617 239,617
15,000 15,000
13,869,431 13,791,729
4,203,098 3,776,857
9,666,333 10,014,872
Retained earnings:
Reserved for:
Revenue bond debt service,
next maturing 27,571 24,876
Revenue bond retirement 1,401,641 1,555,650
Emergency 500,000 500,000
Construction 423,024 65,438
TOTAL RESERVED 2,352,236 2,145,964
Unreserved 7,943,116 7,811,872
TOTAL RETAINED EARNINGS 10,295,352 9,957,836
TOTAL FUND EQUITY 19,961,685 19,972,708
TOTAL LIABILITIES AND FUND EQUITY $26,408,446 $25,494,277
-44-
CITY OF EULESS, TEXAS C-5
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
Years ended September 30, 1991 and 1990
Operating revenues:
Water service
Sewer service
Service fees and miscellaneous
TOTAL OPERATING REVENUES
1991 1990
$ 4,478,380 $ 4,651,013
2,560,162 2,608,620
358,706 319,892
7,397,248 7,579,525
Operating expenses:
General and administrative 282,204 368,340
Water production 2,652,142 3,142,204
Water distribution 297,596 298,759
Utility engineering 154,837 156,984
Sewage collection and treatment 980,849 1,119,695
Nondepartmental 1,454,758 1,281,631
Service center 492,465 391,903
Depreciation 804,229 793,463
TOTAL OPERATING EXPENSES 7,119,0801 7,552,979
OPERATING INCOME
Nonoperating revenues (expenses):
Investment income
Gain (loss) on sale of equipment
Interest on bonds
TOTAL NONOPERATING REVENUES, NET
INCOME BEFORE OPERATING TRANSFERS
Operating transfers out
LOSS BEFORE CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING METHOD
Cumulative effect of change in
accounting method
NET INCOME (LOSS)
278,168 26,546
399,387 443,163
1,196 (3,575)
(312,925) (327,288)
87,658 112,300
365,826 138,846
(454,551) (349,907)
(88,725) (211,061)
1,150,920
(88,725) 939,859
CITY OF EULESS, TEXAS C-5
(Continued)
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
Years ended September 30, 1991 and 1990
1991 1990
Add depreciation on fixed assets acquired
with contributed capital:
Depreciation charged to expense
relating to 1990 and 1991 $ 426,241 $ 422,207
Depreciation arising in years prior
to 1990 3,354,650
Residual equity transfer (219,599)
INCREASE IN RETAINED EARNINGS 337,516 4,497,117
Retained earnings, beginning of year 9,957,836 5,460,719
RETAINED EARNINGS, END OF YEAR $10.295.352 $ 9,957,836
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULES OF OPERATING EXPENSES
Years ended September 30, 1991 and 1990
1991 1990
C-6
General and administrative:
Salaries and benefits $ 202,577 $ 247,703
Postage and supplies 24,675 17,798
Maintenance of office machinery 15,621 15,517
Bad debts 24,512 31,506
Other 14,819 55,816
282,204 368,340
Water production:
Salaries and benefits 188,109 259,469
Operating supplies and expense 11,557 10,838
Maintenance of structures and equipment 12,625 13,929
Water - Trinity River Authority 2,423,067 2,851,561
Other 16,784 6,407
2,652,142 3,142,204
Water distribution:
Salaries and benefits 207,357 176,850
Operating supplies and expense 10,445 11,359
Maintenance of structures and equipment 28,248 61,360
Water - Trinity River Authority 29,788 25,236
Other 21,758 23,954
297,596 298,759
Utility engineering:
Salaries and benefits
Operating supplies and expense
Maintenance of structures and equipment
Contractual services
131,674 135,124
4,115 2,199
9,100 9,224
9,948 10,437
154,837 156,984
Sewage collection and treatment:
Salaries and benefits 115,838 135,269
Operating supplies and expense 5,818 3,446
Maintenance of structures and equipment 6,971 7,705
Treatment fees - Trinity River Authority 839,048 953,807
Other 13,174 19.468
980,849 1,119,695
-47-
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULES OF OPERATING EXPENSES
Years ended September 30, 1991 and 1990
Nondepartmental:
Salaries and benefits
Operating supplies and expense
Contractual services
Franchise fees
Other
Service center:
Salaries and benefits
Motor fuel and supplies
Maintenance of structures and equipment
Other
Depreciation
$
1991
286,625
393,097
383,890
374,900
16,246
1,454,758
137,865
289,727
57,914
6,959
492,465
804,229
TOTAL OPERATING EXPENSES 1 7,119,080
C-6
(Continued)
1990
$ 53,142
504,294
316,022
392,243
15,930
1,281,631
110,355
111,776
153,886
15,886
391,903
793,463
$ 7,552.979
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
Years ended September 30, 1991 and 1990
OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating
income to net cash provided by
operating activities:
Depreciation expense
Increase (decrease) due to net
changes in:
Accounts receivable
Due from other funds
Overdrafts payable
Accounts payable
Accrued salaries and wages
Customer and escrow deposits
Due to other funds
Deferred revenue
Total adjustments
NET CASH PROVIDED BY
OPERATING ACTIVITIES
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds
Reduction in bonds payable
Operating transfers out
Residual equity transfer
NET CASH USED IN NONCAPITAL
FINANCING ACTIVITIES
CAPITAL FINANCING ACTIVITIES
Contributions in aid to construction
Purchase of utility plant in service
Proceeds from sale of utility plant
in service
NET CASH USED IN CAPITAL
FINANCING ACTIVITIES
1991 1990
C-7
$ 278,168 $ 26,546
804,229 793,463
109,657 (42,479)
(486,601)
1,304,954
(30,932) 32,490
23,116 4,472
36,774 52,565
(110,920) 72,642
(7,800) (7,800)
1,642,477 905,353
1,920,645 931,899
(312,925) (331,225)
(290,000) (320,000)
(454,551) (349,907)
(219,599)
(1,057,476) (1,220,731)
77,702
(407,493)
4,100
(325,691)
4,872
(116,135)
3,952
(107,311)
CITY OF EULESS, TEXAS C-7
(Continued)
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
Years ended September 30, 1991 and 1990
INVESTING ACTIVITIES
Purchase of investment securities
Proceeds from sale or maturity of
investment securities
Interest received on investments
NET CASH USED IN INVESTING ACTIVITIES
NET DECREASE IN CASH
AND CASH EQUIVALENTS
Cash and cash equivalents,
beginning of year
CASH AND CASH EQUIVALENTS,
END OF YEAR
1991
$(8,421,310) $
7,127,714
471,704
(821,892)
(284,414)
2,300,360
1990
(778,965)
406,673
(372,292)
(768,435)
3,068,795
2,015,946 $ 2,300,36D
ASSETS
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable and unbilled revenue,
less allowance for estimated uncollect-
ible accounts of $1,463
Accrued interest receivable
Due from other funds
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:
Short-term investments
Property sale proceeds account:
Investments with paying agent, at cost
Capital projects account:
Cash and cash equivalents
Short-term investments
Customer deposits:
Cash and cash equivalents
Interest receivable on investments
TOTAL RESTRICTED ASSETS
Utility plant and equipment in
service, at cost:
Land
Equipment
Waterworks and sanitary sewer system
Construction -in -progress
Less accumulated depreciation
NET UTILITY PLANT AND
EQUIPMENT IN SERVICE
TOTAL ASSETS
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
September 30, 1991
Operating
Account
$ 1,008,923 $
1,628,622
954,909
178
618,601
4,211,233
500,000
579,857
1,079,857
1,528,966
973,834
25,131,625
27,634,425
9,007,643
Capital
Projects
Account
293,024
130,000
423,024
204,859
204,859
18.626,782 204,859
123,917,872 $ 627,883
Bond
Reserve
Account
27,571
1,202,564
467,226
58,759
1,756,120
$1,756,120
Service
Center
Account
Impact Fees
Account
$ 106,571
106,571
Debt
Service
Account
1 106,571
Eliminations
$
C-8
Total
September 30,
1991
$ 1,115,494
1,628,622
954,909
178
618,601
4,317,804
27,571
1,202,564
500,000
467,226
293,024
130,000
579,857
58.759
3,259,001
1,528,966
973,834
25,131,625
204,859
27,839,284
9,007,643
18,831,641
$26.408.446
(continued)
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
September 30, 1991
C-8
(Continued)
Capital Bond Service Debt Total
Operating Projects Reserve Center Impact Fees Service September 30,
Account Account Account Account Account Account Eliminations 1991
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Overdrafts payable $ 1,207,130 $ - $ - $ 97,564 $ - $ 260 $ - $ 1,304,954
Accounts payable 9,861 9,861
Accrued salaries and wages 40,708 40,708
Due to (from) other water and sewer
accounts (29,787) 29,787
TOTAL CURRENT LIABILITIES 1,257,699 (29,787) 97,564 29,787 260 1,355,523
Current obligations payable from
restricted assets:
Customer and escrow deposits 579,857
Current portion of bonds payable 260,000
Accrued interest 66,908
Bonds payable 4,065,000
Deferred revenue 119,473
TOTAL LIABILITIES 6,282,029 (29,787) 66,908 97,564 29,787 260
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
13,049,887 564,927
239,617
15,000
13,049,887 819,544
4,203,098
8,846,789 819,544
579,857
260,000
66,908
4,065,000
119,473
6,446,761
13,614,814
239,617
15,000
13,869,431
4,203,098
9,666,333
Retained earnings (deficit):
Reserved for:
Revenue bond debt service,
next maturing 27,831 (260) 27,571
Revenue bond retirement 1,401,641 1,401,641
Emergency 500,000 500,000
Construction 423,024 423,024
TOTAL RESERVED 500,000 423,024 1,429,472 (260) 2,352,236
Unreserved 8,289,054 (584,898) 259,740 (97,564) 76,784 7,943,116
TOTAL RETAINED EARNINGS (DEFICIT) 8,789,054 (161,874) 1,689,212 (97,564) 76,784 (260) 10,295,352
TOTAL FUND EQUITY 17,635,843 657,670 1,689,212 (97,564) 76,784 (260) 19,961,685
TOTAL LIABILITIES AND FUND EQUITY $23.917.872 $ 627.883 11,756 $ - .$ 106,571 - - _ 126,4081446
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ACCOUNTS
Year ended September 30, 1991
C-9
Capital Bond Service Debt Total
Operating Projects Reserve Center Impact Fees Service September 30,
Account Account Account Account Account Account Eliminations 1991
Operating revenues:
Water service $ 4,478,380 $ - $ - $ - $ - $ - $ - $ 4,478,380
Sewer service 2,560,162 2,560,162
Service fees and miscellaneous 254,048 104,658 358,706
TOTAL OPERATING REVENUES 7,292,590 104,658 7,397,248
Operating expenses:
General and administrative 281,119 1,085 282,204
Water production 2,652,142 2,652,142
Water distribution 297,596 297,596
Utility engineering 154,837 154,837
Sewage collection and treatment 980,849 980,849
Nondepartmental 1,457,738 (2,980) 1,454,758
Service center 492,465 492,465
Depreciation 804,229 804,229
TOTAL OPERATING EXPENSES 6,628,510 (2,980) 492,465 1,085 7,119,080
�n OPERATING INCOME (LOSS) 664,080 2,980 (492,465) 104,658 (1,085) 278,168
w Nonoperating revenues (expenses):
Investment income 223,244 9,116 165,611 1,416 399,387
Gain on sale of equipment 1,196 1,196
Interest on bonds (306,925) (6,000) (312,925)
TOTAL NONOPERATING REVENUES
(EXPENSES), NET 224,440 9,116 (141,314) 1,416 (6,000) 87,658
INCOME (LOSS) BEFORE OPERATING TRANSFERS 888,520 12,096 (141,314) (492,465) 106,074 (7,085) 365,826
Operating transfers from other water and
sewer accounts 290,000 450,000 150,000 396,578 256,825 (1,543,403)
Operating transfers to other funds or
other water and sewer accounts (1,478,303) (79,651) (190,000) (250,000) 1,543,403 (454,551)
NET INCOME (LOSS) (299,783) 382,445 (181,314) (95,887) 106,074 (260) (88,725)
Add depreciation on fixed assets
acquired with contributed capital 426,241 426,241
INCREASE (DECREASE) IN RETAINED EARNINGS 126,458 382,445 (181,314) (95,887) 106,074 (260) 337,516
Retained earnings (deficit),
beginning of year 8,662,596 (544,319) 1,870,526 (1,677) (29,290) 9,957,836
RETAINED EARNINGS (DEFICIT), END OF YEAR $ 8.789.054 $ (161.874) $1.689.212 $ (97,564) $ 76.784 1____ (260) $ _ _ _ $10.295.352
INTERNAL SERVICE FUNDS
Equipment Replacement Fund - to account for the accumulation of funds
planned to be used in replacing existing assets. Funding is pro-
vided 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 appli-
cable to the self-insurance program for workmen's compensation and
for general liability claims. This fund was formerly the Workmen's
Compensation Fund.
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. This fund was
established in fiscal 1991.
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
September 30, 1991
With comparative totals for September 30, 1990
Equipment Risk
Replacement Insurance Management Cash and Debt Totals
Fund Fund Fund Management Fund 1991 1990
ASSETS
D-1
Cash and cash equivalents $ 294,367 $ - $ 278,520 $ - $ 572,887 $ 506,073
TOTAL CURRENT ASSETS 294,367 278,520 572,887 506,073
Equipment, at cost, net of
accumulated depreciation
of $21,447 567,890 567,890 107,233
TOTAL ASSETS $ 862.257 $ - $ 278.520 - $ 1.140.777 $ 613.306
LIABILITIES AND
RETAINED EARNINGS
Overdrafts payable
Accounts payable
Due to other funds
TOTAL CURRENT LIABILITIES
$
$ 5,452 $
66,504
71,956
69,500
62,605
132,105
$
$ 5,452 $
136,004
62,605
204,061
136,004
41,000
177,004
Retained earnings
(deficit):
Unreserved 862,257 (71,956) 146,415 936,716 436,302
TOTAL LIABILITIES
AND RETAINED EARNINGS $ 862,257 $ - $ 278,520 - $ 1.140.777 $ 613.306
CITY OF EULESS, TEXAS D-2
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
Year ended September 30, 1991
With comparative totals for September 30, 1990
Equipment Risk
Replacement Insurance Management Cash and Debt Totals
Fund Fund Fund Management Fund 1991 1990
Operating revenues:
Insurance premiums $ - $ 930,058 $ 567,574 $ - $ 1,497,632 $ 996,037
Service fees and miscellaneous 253,631 11,000 264,631 235,423
TOTAL OPERATING REVENUES 253,631 930,058 578,574 1,762,263 1,231,460
1 Operating expenses:
"' General and administrative 68,619 84,955 41,900
rn
I Insurance costs 853,308 417,148
Depreciation 21,447
TOTAL OPERATING EXPENSES 21,447 921,927 502,103 41,900
OPERATING INCOME (LOSS) 232,184 8,131 76,471 (41,900)
Nonoperating revenues:
Investment income 14,352 9,941 41,900
INCOME BEFORE
OPERATING TRANSFERS 246,536 8,131 86,412
Operating transfer in 156,651
Operating transfers out (22,000) (21,750) (14,210)
NET INCOME (LOSS) 381,187 (13,619) 72,202
Residual equity transfers
in 19,644 41,000
Retained earnings (deficit),
beginning of year 461,426 (99,337) 74,213
RETAINED EARNINGS
(DEFICIT), END OF YEAR $ 862,257 $ (71,956) $ 146,415 $
195,474
1,270,456
21,447
1,487,377
141,450
1,040,349
1,181,799
274,886 49,661
66,193 12,707
341,079 62,368
156,651
(57,960)
439, 770
60,644
436,302.
$ 936,716
62,368
219,599
154,335
436,302
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile
operating income (loss)
to net cash provided by
(used in) operating
activities:
Depreciation expense
Increase in accounts
payable
Increase in overdrafts
payable
Change in due to other
funds
Total adjustments
NET CASH PROVIDED BY (USED
IN) OPERATING ACTIVITIES
NONCAPITAL FINANCING ACTIVITIES
Operating transfer in
Operating transfers out
Residual equity transfers in
NET CASH PROVIDED BY (USED IN)
NONCAPITAL FINANCING ACTIVITIES
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year ended September 30, 1991
With comparative totals for September 30, 1990
Equipment
Replacement
Fund
Insurance
Fund
Risk
Management Cash and Debt
Fund
Management Fund
Totals
1991 1990
D-3
$ 232,184 $ 8,131 $ 76,471 $ (41,900) $ 274,886 $ 49,661
21,447
21,447
253,631
156,651
(22,000)
19,644
154,295
CAPITAL FINANCING ACTIVITIES
Purchase of equipment (482,104)
INVESTING ACTIVITIES
Interest received on
investments
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
14,352
(59,826)
Cash and cash equivalents,
beginning of year 354,193
CASH AND CASH
EQUIVALENTS, END OF YEAR $ 294.367 $
5,452
(41,000) 62,605
(35,548) 62,605
(27,417) 139,076
(21,750) (14,210)
41,000
19,250 (14,210)
(8,167)
8,167
9,941
134,807
143,713
$ 278,520.
(41,900)
41,900
21,447
69,500
5,452
21,605
48,504 69,500
323,390 119,161
156,651
(57,960)
60,644 219,599
159,335 219,599
(482,104) (107,233)
66,193 12,707
66,814 244,234
506,073 261,839
1 572,887 $ 506,073
GENERAL FIXED ASSETS ACCOUNT GROUP
To account for fixed assets not used in proprietary fund operations.
CITY OF EULESS, TEXAS
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS
BY SOURCE
September 30, 1991 and 1990
General fixed assets:
Land
Buildings
Improvements other than buildings
Machinery and equipment
TOTAL GENERAL FIXED ASSETS
Investment in general fixed assets by
source:
General fund
Special revenue funds
Capital projects funds
1991
$ 871,250
4,927,995
979,236
3,657,445
E-1
1990
$ 871,250
4,706,440
800,417
3,524,524
$10.435,926 $ 9,902.631
$ 4,912,272
223,002
5,300,652
TOTAL INVESTMENT IN GENERAL FIXED ASSETS $10.435,926
$ 4,858,875
133,658
4,910,098
91902j631
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
September 30, 1991
Function
and Activity
General government
Public saftey
Culture and
recreation
Highways and
streets
Construction -in -
progress
Land
269,959
234,325
Buildings
$1,382,874
1,094,413
366,966 2,229,153
221,555
Improvements
Other Than
Buildings
$ 15,000
31,423
841,961
90,852
TOTAL GENERAL
FIXED ASSETS $ 871,250 $4,927,995 $ 979.236
Machinery
and
Equipment
$ 576,534
2,002,532
591,968
396,411
90,000
,$3.657, 45
E-2
Total
$ 2,244,367
3,362,693
4,030,048
396,411
402,407
$10,435,926
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
Function and Activity
General government
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
Year ended September 30, 1991
General Fixed
Assets
September 30,
1990
$2,194,105
3,313,054
3,976,007
419,465
A9 02 631
Additions
$ 55,178
111,305
54,041
402,407
$ 622,931
Deductions
$ 4,916
61,666
23,054
$ 89.636
E-3
General Fixed
Assets
September 30,
1991
$ 2,244,367
3,362,693
4,030,048
396,411
402,407
$10435.926
Fiscal General
Year Government
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
$ 737,311
741,825
905,018
1,060,047
1,197,589
1,316,296
1,436,132
1,385,187
1,535,020
1,560,800
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
Last ten fiscal years
(Unaudited)
Public
Safety
$2,285,229 $
2,447,377
3,529,424
3,963,322
4,954,072
4,649,517
5,503,148
5,643,811
5,633,042
5,723,750
Culture -
Streets Recreation
332,829
323,104
364,058
401,902
424,806
402,974
396,572
480,722
541,013
507,226
$ 644,703
667,854
859,754
947,590
1,015,965
1,034,905
1,217,531
1,332,050
1,371,962
1,231,257
(1) Includes General and Debt Service Funds.
Debt
Service
$ 429,364
425,799
506,439
780,540
964,011
1,341,171
1,313,298
1,357,689
1,486,417
1,772,314
Other
458,351
480,838
509,600
592,995
760,176
593,150
567,795
648,861
1,011,379
1,208,755
TABLE 1
Total
$ 4,887,787
5,086,797
6,674,293
7,746,396
9,316,619
9,338,013
10,434,476
10,848,320
11,578,833
12,004,102
Fiscal
Year Taxes
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
$3,609,418 $
4,320,153
4,967,971
5,902,338
6,374,355
7,450,693
8,044,902
8,394,653
8,529,240
9,262,024
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1)
Last ten fiscal years
(Unaudited)
Licenses
and
Permits
191,551
379,549
601,181
429,929
330,136
201,468
164,031
222,424
290,944
237,400
Inter-
Govern -
mental
Revenues
312,553
288,355
402,107
521,896
601,988
535,814
380,612
265
19,078
91,064
(1) Includes General and Debt Service Funds.
Charges
for
Services
37,714 $
38,254
38,484
51,401
60,466
52,890
54,682
43,053
55,163
54,399
Fines
and
Fees
259,293
200,793
265,800
356,381
423,482
413,120
501,151
904,238
1,158,986
971,875
Interest
Income
and Other
Revenues
$ 375,297
457,210
594,673
702,740
664,199
729,595
610,444
1,035,689
929,589
740,796
TABLE 2
Total
$ 4,785,826
5,684,314
6,870,216
7,964,685
8,454,626
9,383,580
9,755,822
10,600,322
10,983,000
11,357,558
Fiscal
Year
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
Total Tax
Levy
$2,133,114
2,597,676
2,808,055
3,298,386
3,814,110
4,845,209
5,001,323
4,975,719
5,162,838
5,717,223
Current Tax
Collections
$2,045,992
2,543,591
2,745,623
3,182,483
3,575,594
4,704,417
4,921,426
4,926,213
5,150,783
5,586,764
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
Last ten fiscal years
(Unaudited)
Percent
of Levy
Collected
95.92%
97.92
97.78
96.49
93.75
97.09
98.40
99.00
99.77
97.72
Delinquent
Tax
Collections
$ 71,417
39,762
77,156
127,288
76,236
167,892
174,978
165,469
175,439
106,503
Total Tax
Collections
$2,117,409
2,583,353
2,822,779
3,309,771
3,651,830
4,872,309
5,096,404
5,091,682
5,326,222
5,693,267
Percent of
Total Tax
Collections
to Tax Levy
99.26%
99.45
100.52
100.35
95.75
100.56
101.90
102.33
103.16
99.58
Outstanding
Delinquent
Taxes at
Year-end
$ 202,081
246,369
268,760
256,955
393,256
428,865
355,562
331,891
329,745
349,226
TABLE 3
Percent of
Delinquent
Taxes to
Tax Levy
9.47%
9.48
9.57
7.79
10.31
8.85
7.11
6.67
6.39
6.11
Fiscal
Year
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
Assessed
Value
$ 265,109,240
332,750,708
343,084,060
697,008,884
779,704,042
1,080,231,222
1,024,645,236
968,871,391
967,682,949
1,050,436,076
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (1)
Last ten fiscal years
(Unaudited)
Real Property
Estimated
Actual Value
$ 265,109,240
332,750,708
343,084,060
697,008,884
779,704,042
1,080,231,222
1,024,645,236
968,871,391
967,682,949
1,050,436,076
Personal
Assessed
Value
$ 39,621,390
57,430,322
58,805,741
68,347,443
88,759,776
101,144,524
112,007,718
112,795,668
117,494,828
108,768,428
(1) Source: Tarrant County Appraisal District.
Property
Estimated
Actual Value
$ 39,621,390
57,430,322
58,805,741
68,347,443
88,759,776
101,144,524
112,007,718
112,795,668
117,494,828
108,768,428
Assessed
Value
Total
Estimated
Actual Value
$ 304,730,630
390,181,030
401,889,801
765,356,327
868,463,818
1,181,375,746
1,136,652,954
1,081,667,059
1,085,177,777
1,159,204,504
$ 304,730,630
390,181,030
401,889,801
765,356,327
868,463,818
1,181,375,746
1,136,652,954
1,081,667,059
1,085,177,777
1,159,204,504
TABLE 4
Ratio of Total
Assessed to
Total Estimated
Actual Value
100%
100
100
100
100
100
100
100
100
100
CITY OF EULESS, TEXAS TABLE 5
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $100 OF ASSESSED VALUE)
Last ten fiscal years
(Unaudited)
Fiscal City School County Hospital Junior College
Year (1) (2) (3) (3) (3) Total
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
1987 .42 .78 .11772 .11125 .03153 1.4605
1988 .44 .9169 .11772 .11125 .03153 1.6174
1989 .46 1.02 .156509 .133 .03148 1.80098
1990 .4875 1.06 .182 .153 .033 1.9155
1991 .54085 1.32 .2368 .2058 .0384 2.34185
NOTES:
(A) General property taxes for cities are limited by the Texas Constitu-
tion 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 the Hurst -Euless -Bedford Indepen-
dent School District and are distributed to the City as collected.
Sources: (1) City Records
(2) Hurst -Euless -Bedford Independent School District
(3) Tarrant County
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
September 30, 1991
(Unaudited)
Taxpayer
EFW Association
Sotogrande Partners
Sunbelt Savings Association
of Texas
Southwestern Bell Telephone
Company
Texas Utilities Electric
Company
AMLI SW
Crossmark Partners II, Ltd.
Village Green Investments
Everoak Partners
First SW Equity
Nature of
Property
Land
Apartments
Land
Telephone
Utility
Electric
Utility
Retail
Apartments
Real Estate
Apartments
Apartments
1991
Assessed
Valuation
$ 26,936,763
18,195,214
16,933,464
16,791,705
15,740,200
9,900,001
9,853,456
7,972,751
7,627,285
7,194,189
TABLE 6
Percentage
of Total
Assessed
Valuation
2.32%
1.57
1.46
1.45
1.36
.85
.85
.69
.66
.62
$137.145,028 11.83%
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
September 30, 1991
(Unaudited)
TABLE 7
Article XI, Section 5 of the State of Texas Constitution states in
part:
"...no tax for any purpose shall ever be lawful for any one
year, which shall exceed two and one-half percent of the tax-
able property of such city."
Additionally, the state Attorney General's Office normally limits
general property taxes to $1.50 per $100 of assessed valuation for the
payment of principal and interest on general obligation bonds.
The City's total tax rate for fiscal 1991 was established at $.54085
per $100 of assessed valuation based on 100% of appraised value.
Fiscal
Year Population (1)
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
26,100
28,200
32,350
36,050
37,650
38,700
39,750
40,250
38,149
38,369
CITY OF EULESS, TEXAS TABLE 8
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
Last ten fiscal years
(Unaudited)
Assessed Value (2)
$ 304,730,630
390,181,030
401,889,801
765,356,327
868,463,818
1,181,375,746
1,136,652,954
1,081,667,059
1,085,177,777
1,159,204,504
General
Bonded Debt
$ 5,070,000
5,520,000
7,825,000
9,095,000
10,396,586
10,684,514
10,564,783
11,475,440
12,836,159
12,031,587
Less Debt
Service Funds
$ 171,395
235,147
285,142
348,633
313,522
318,010
383,429
568,807
592,607
510,266
Net
Bonded Debt
$ 4,898,605
5,284,853
7,539,858
8,746,367
10,083,064
10,366,504
10,181,354
10,906,633
12,243,552
11,521,321
Ratio of Net
Bonded Debt to
Assessed Value
1.61%
1.35
1.88
1.14
1.16
.88
. 90
1.01
1.13
. 99
(1) Source: Estimates by North Central Texas Council of Governments as adjusted for 1990 census data.
(2) Source: Tarrant County Appraisal District.
Net Bonded
Debt
Per Capita
$188
187
233
243
268
268
256
271
298
300
CITY OF EULESS, TEXAS TABLE 9
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Fiscal
Year Principal
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
$155,000
165,000
195,000
230,000
290,000
60,428
549,732
589,342
639,281
804,572
Last ten fiscal years
Interest
(A)
$ 274,364
260,799
311,439
550,540
674,011
1,280,743
763,566
768,347
847,136
967,742
(Unaudited)
Total Debt
Service
$ 429,364
425,799
506,439
780,540
964,011
1,341,171
1,313,298
1,357,689
1,486,417
1,772,314
Total
General
Expenditures
(B)
$ 4,887,787
5,086,797
6,674,293
7,746,396
9,316,619
9,338,013
10,434,476
10,848,320
11,578,833
12,004,102
Ratio of
Debt Service
to Total
General
Expenditures
8.78%
8.37
7.59
10.08
10.35
14.36
12.59
12.52
12.84
14.76
(A) Includes fiscal agent fees and debt issuance costs which are insig-
nificant.
(B) Includes total general governmental expenditures plus total general
obligation debt service expenditures.
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
September 30, 1991
(Unaudited)
Jurisdiction
City of Euless
Grapevine - Colleyville Indepen-
dent 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
$11,521,321
67,805,000
62,505,000
144,805,000
46,300,000
37,750,000
Percent
Applicable
to City of
Euless
TABLE 10
Amount
Applicable
to City of
Euless
100.00% $11,521,321
2.12 1,437,466
26.79 16,745,090
2.72
2.72
2.72
3,938,696
1,259,360
1,026,800
A35,928�733
CITY OF EULESS, TEXAS
REVENUE BOND COVERAGE
WATER AND SEWER BONDS
Last ten fiscal years
(Unaudited)
TABLE 11
Net
Revenue
Gross Direct Available
Fiscal Revenues Operating for Debt Debt Service Requirements
Year (1) Expenses Service Principal Interest Total Coverage
1982 $3,610,582 $2,557,799 (3) $1,052,783 $155,000 $177,138 $ 332,138 3.17
1983 4,138,656 2,897,770 (3) 1,240,886 160,000 170,075 330,075 3.76
1984 5,197,388 3,100,233 (3) 2,097,155 165,000 475,323 640,323 3.28
1985 6,601,117 3,691,945 (3) 2,909,172 250,000 422,923 672,923 4.32
1986 6,169,486 4,865,806 (3) 1,303,680 255,000 406,625 661,625 1.97
1987 7,677,625 5,595,639 (3) 2,081,986 275,000 390,012 665,012 3.13
1988 7,273,249 6,133,001 (3) 1,140,248 305,000 372,300 677,300 1.68
1989 7,442,771 5,550,251 (3) 1,892,520 310,000 347,301 657,301 2.88
1990 8,022,688 6,759,516 (2) 1,263,172 320,000 327,288 647,288 1.95
1991 7,796,635 6,314,851 (2) 1,481,784 290,000 312,925 602,925 2.46
(1) Includes operating revenues and interest on investments.
(2) Excludes amortization and depreciation.
(3) Excludes amortization and depreciation and includes theoretical debt service pay-
ments to Trinity River Authority treated as operating expense for bond coverage
purposes through fiscal 1989; subsequent to fiscal 1989, accounting for Trinity
River Authority payments was changed and is consistent with the debt service treat-
ment above.
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS
Last ten fiscal years
(Unaudited)
TABLE 12
Fiscal Per Capita School Unemployment
Year Population (1) Income (2) Enrollment (3) Rate (4)
1982 26,100 $ 11,184 15,003 5.7%
1983 28,200 12,091 15,172 4.9
1984 32,350 13,006 15,606 4.2
1985 36,050 13,940 15,248 5.0
1986 37,650 14,828 16,067 6.7
1987 38,700 15,739 16,818 6.9
1988 39,750 16,650 16,887 5.7
1989 40,250 17,560 17,011 5.8
1990 38,149 18,471 18,700 5.6
1991 38,369 19,382 18,707 7.0
Sources:
(1) Estimates by North Central Texas Council of Governments as
adjusted for 1990 census data
(2) Estimates by City
(3) Hurst -Euless -Bedford Independent School District
(4) Texas Employment Commission
CITY OF EULESS, TEXAS
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Last ten fiscal years
(Unaudited)
TABLE 13
Construction (1) Bank Deposits
Fiscal Number Estimated (3)
Year of Permits Value (000's) Property Value
1982 741 $ 29,631,480 $ 34,651 $ 304,730,630 (2)
1983 1,178 66,419,093 36,219 390,181,030 (2)
1984 1,139 113,992,018 44,872 401,889,801 (2)
1985 879 47,670,451 48,834 765,356,327 (2)
1986 443 42,546,836 72,689 868,463,818 (2)
1987 314 14,128,587 93,681 1,181,375,746 (2)
1988 405 27,937,240 186,022 1,136,652,954 (2)
1989 392 23,231,436 182,305 1,081,667,059 (2)
1990 559 23,370,614 89,192 1,085,177,777 (2)
1991 289 17,505,423 58,469 1,159,204,504 (2)
(1) Source: City Records
(2) Source: Tarrant County Appraisal District
(3) Source: Bank Records
CITY OF EULESS, TEXAS
RETIREMENT PLAN - ANALYSIS OF FUNDING PROGRESS
Past Three Fiscal Years
(Unaudited)
(1)
Net Assets (1)
Available Pension
Fiscal for Benefit
Year Benefits Obligation
1989 $8,594,400 $11,295,300
1990 9,732,600 12,706,000
1991 11,109,700 14,290,100
Percentage
Funded
76.09%
76.60
77.74
(1)
Unfunded (2)
Pension Annual
Benefit Covered
Obligation Payroll
$2,700,900 $6,781,968
2,973,400 6,756,115
3,180,400 7,059,604
Note: Data available for only the three years shown.
Sources: (1) Texas Municipal Retirement System
(2) City records.
TABLE 14.
Unfunded Pension
Benefit
Obligation as a
Percentage of
Covered Payroll
39.82%
44.01
45.05
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
September 30, 1991
(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
Five council members
Area 16.9 square miles
Full time City employees 257
Police protection:
Number of stations
Number of certified officers
Fire protection:
Number of stations
Number of certified firefighters
1
51
3
45
Parks and recreation:
Number of swimming pools 3
Number of parks 16
Area of parks 398 acres
Community buildings 3
Library holdings 56,274
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
September 30, 1991
(Unaudited)
City Water and Sewer service:
Water service:
Number of customers
Maximum daily capacity available from
Trinity River Authority
Maximum daily capacity of City water wells
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
TABLE 15
(Continued)
18,045
14,000,000 gallons
4,000,000 gallons
18,000,000 gallons
11,335,000 gallons
5,366,000 gallons
148 miles
1,130
2,959,000 gallons
17,700
125 miles
Streets:
Improved 120 miles
State highways 17.2 miles