HomeMy WebLinkAboutFY 1988 Comprehensive Annual Financial Report[..The City of
EULESS, TEXAS
Comprehensive
Annual Financial Report
September 30, 1988
INTRODUCTORY
SECTION
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1988
CITY OFFICIALS
HAROLD D. SAMUELS, Mayor
RAY OZEBEK, Councilmember Place One
BOB EDEN, Councilmember Place Two
GLENN D. WALKER, Councilmember Place Three
and Mayor Pro Tem
CAROLYN PARK, Councilmember Place Four
RON STERNFELS, Councilmember Place Five
H. KAY GODBEY, CMC/AAE
City Secretary
W. M. SUSTAIRE
City Manager
TOM HART
Assistant City Manager
JIM HICKERSON, CGFO
Director of Finance
Prepared by: Finance Department
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year ended September 30, 1988
TABLE OF CONTENTS
INTRODUCTORY SECTION
Exhibit Page(s)
Title page I
Table of contents II -IV
Letter of transmittal VI-XII
GFOA certificate of achievement XIII
Organizational chart XIV
FINANCIAL SECTION
Report of certified public accountants
General Purpose Financial Statements
Combined balance sheet - all fund types and
account groups
1-2
1 4-7
Combined statement of revenues, expenditures
and changes in fund balances - all govern-
mental fund types 2 8-11
Combined statement of revenues, expenditures
and changes in fund balance - budget and
actual - General Fund 3 12-14
Statement of revenues, expenses and changes
in retained earnings - proprietary fund type
Water and Sewer Enterprise Fund 4 15
Statement of cash flows - proprietary fund type -
Water and Sewer Enterprise Fund 5 16
Notes to financial statements 17-33
II
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year ended September 30, 1988
TABLE OF CONTENTS, Continued
Schedule/
statement Page(s)
Supplemental statements and schedules
Special revenue funds
Combining balance sheet A-1 35
Combining statement of revenues, expendi-
tures and changes in fund balances A-2 36
Capital projects funds
Combining balance sheet B-1 38-39
Combining statement of revenues, expendi-
tures and changes in fund balances B-2 40-41
Water and sewer enterprise fund
Comparative balance sheet C-1 44-45
Comparative schedule of operating expenses C-2 46-47
All agency funds
Combining balance sheet D-1 50
Combining statement of changes in
assets and liabilities D-2 51
General fixed assets account group
Comparative schedule of general fixed assets
by source E-1 54
Schedule of general fixed assets by function
and activity E-2 55
Schedule of changes in general fixed assets by
function and activity E-3 56
III (Continued)
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year ended September 30, 1988
TABLE OF CONTENTS, Continued
STATISTICAL SECTION (Unaudited)
General governmental expenditures by function
General governmental revenues by source
Property tax levies and collections
Assessed and estimated actual value of
taxable property
Property tax rates - all overlapping
governments (per $100 of assessed
value)
Principal taxpayers
Computation of legal debt margin
Ratio of net general bonded debt to assessed
value and net bonded debt per capita
Ratio of annual debt service expenditures
for general obligation bonded debt to
total general expenditures
Computation of direct and overlapping debt
Revenue bond coverage - Water and Sewer Bonds
Demographic statistics
Property value, construction and bank
deposits
Miscellaneous statistics
Table Page(s)
1 57
2 58
3 60-61
4 62-63
5 64
6 65
7 66
8 68-69
9 70
10 71
11 72-73
12 74
13 75
14 76-77
IV
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V
ute,m
November 4, 1988
Mr. W. M. Sustaire
City Manager
City of Euless, Texas
Dear Mr. Sustaire:
"We're Building a Beautiful Tomorrow"
The comprehensive annual financial report of the City of Euless,
Texas (the "City") for the fiscal year ended September 30, 1988,
is hereby submitted. 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 are reported in a manner designed to
present fairly the financial position and results of operations
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 schedules, as well as the auditor's report on
financial statements and schedules. The statistical section
includes selected financial and demographic information,
generally presented on a multiyear basis.
REPORTING ENTITY
The financial statements, schedules and statistical information
included in this report pertain to all functions and funds under
the control of the Mayor and Council of the City of Euless,
including agency funds administered and controlled by various
elected or appointed officials.
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 a library.
VT
201 N. Ector Drive • Euless, Texas 76039-3595 • 817/283-5381 Metro 267-4403
Mr. W. M. Sustaire
November 4, 1988
Page 2
Elementary and Secondary education services within the City are
provided by the Hurst -Euless -Bedford Independent School Dis-
trict. The City Council has no oversight responsibility over the
District and, accordingly, financial data for the District are
not included in the combined financial statements in this report.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL
The City's accounting records for the Water and Sewer Enterprise
Fund are maintained on an accrual basis whereby revenues and
expenses are recorded in the accounting period in which they are
earned or incurred. The remainder of the City's funds are
maintained on the modified accrual basis whereby revenue is
recorded when measurable and available and expenditures are
recorded when the liability is incurred except for interest on
general long-term debt, which is recognized when due.
One of the objectives of the City's financial accounting system
is to provide adequate internal controls. Internal controls are
designed to provide reasonable, but not absolute, assurance
regarding the safeguarding of assets against loss from
unauthorized use or disposition and the reliability of financial
records for preparing financial statements and maintaining
accountability for assets. The concept of reasonable assurance
recognizes that the cost of a control should not exceed the
benefits likely to be derived and the evaluation of costs and
benefits requires estimates and judgment by management. We
believe that the City's internal controls adequately safeguard
assets and provide reasonable assurance of proper recording of
financial transactions.
Budgetary control is accomplished by the adoption of an annual
operating budget for the general governmental functions and the
Water and Sewer Enterprise Fund. Detail control is accomplished
by maintaining expenditures by line item account within each
operating department within each operating fund.
Further explanation of the basis of accounting for all fund types
and the City's budgetary controls are furnished in the
accompanying Notes to Financial Statements.
GENERAL GOVERNMENTAL FUNCTIONS
Revenues for general governmental functions and general debt
service totaled $9,755,822 in 1988, an increase of 3.97 percent
over 1987. The increase in revenues is primarily attributable to
increased general property tax rates and increased general sales
VII
Mr. W. M. Sustaire
November 4, 1988
Page 3
taxes. Revenues were hindered slightly by the decline in new
construction during the year, resulting in decreased building
permits and by the expiration of an inter -city fire service
contract. The amount of revenue from various sources and the
changes from the previous year are reflected in the following
table:
Revenue Source
General property taxes
Gross receipts taxes
General sales taxes
Licenses and permits
Fines and fees
Interest income
Intergovernmental
Other
In addition
ferred from
transferred
Amount
$5,080,827
1,145,559
1,818,516
164,031
501,151
342,806
380,612
322,320
$9,755,822
Percent
of total
52.08%
11.74
18.64
1 .68
5.14
3.52
3.90
3.30
100.00%
Increase
(decrease)
from 1987
$ 254,075
82,389
257,745
(37,437)
88,031
(90,152)
(155,202)
(27,207)
$ 372,242
to the above general revenue, $713,345 was trans -
the Water and Sewer Enterprise Fund and $55,000 was
from the Special Revenue Fund to the General Fund.
Expenditures for general governmental purposes and general debt
service totaled $10,434,476 an increase of 11.7% percent over
1987. Changes in levels of expenditure for major functions of
the City over the preceding year are shown in the following
table:
Function
General government
Public safety
Streets
Library
Parks and recreation
Bonded debt retirement
Bonded debt interest and fees
Nondepartmental
Amount
$ 1,436,132
5,503,148
396,572
346,069
871,462
549,732
763,566
567,795
$10,434,476
Percent
of total
13.76%
52.74
3.80
3.32
8.35
5.27
7.32
5.44
100.00%
Increase
(decrease)
from 1987
$ 119,836
853,631
(6,402)
46,425
136,201
489,304
(517,177)
(25,355)
$1,096,463
VIII
Mr. W. M. Sustaire
November 4, 1988
Page 4
The increase in public safety expenditures is due primarily to
increased expenditures for police and fire protection and
increased capital expenditures in the current year. The changes
in bonded debt retirement resulted from the City refinancing
several of its bond issues in November 1985 and thus, deferring
principal payments until 1988 accordingly, bonded debt interest
and fees decreased in 1988. An additional $430,000 in general
obligation bonds were issued during the current fiscal year.
WATER AND SEWER ENTERPRISE FUND
The City's water and sewer utility showed gains in both water and
sewer service revenues and in number of customers in the current
year. Comparative data for the past two fiscalyears are
presented in the following table.
1988 1987
Net income (loss) $ (695,044) $ 290,313
Add (deduct):
Amortization of capitalized
water and sewer facility
contract rights
Depreciation
Interest on revenue bonds
Transfers to other funds - net
Principal portion of payments
on water and sewer facility
contracts
495,843 492,990
802,767 758,019
367,888 386,226
523,345 480,713
(354,551) (326,275)
Net revenue available for debt
service $1,140,248 $2,081,986
Average annual debt service $ 490,072 $ 499,918
Coverage 2.33 times 4.16 times
Net income decreased primarily due to increased transfers to the
general fund and due to significant increases in amounts paid for
water production.
During the year, $305,000 of regularly maturing revenue bonds
were retired in the Water and Sewer Enterprise Fund. All reserve
IX
Mr. W. M. Sustaire
November 4, 1988
Page 5
and accounting requirements have been met in accordance with the
ordinances authorizing the issuance of the City's Water and Sewer
Revenue Bonds.
DEBT ADMINISTRATION
General obligation debt, which is directly tax supported, totaled
$10,564,783 at September 30, 1988. The ratio of net bonded debt
per capita are useful indicators of the City's debt position for
municipal management, citizens and investors. These data for the
City at September 30, 1988 were as follows:
Net bonded
d ebt
$10,181,354
Ratio of net
bonded debt to
assessed value
Net bonded
debt per
capita
.89 $252.95
Revenue bonds, which are secured by the net revenues of the Water
and Sewer Enterprise Fund, totaled $5,245,000 at September 30,
1988. Tables 8-11 in the Statistical Section of this report
present more detailed information about the debt position of the
Cit
y.
The City's bonds are currently rated by Moody's Investor Services
and Standard & Poor's as follows:
General obligation bonds
Revenue bonds
CASH MANAGEMENT
Moody's Standard & Poor's
A-1 A+
A A
The City maintains cash accounts on a consolidated basis for
investment purposes. These short-term investments consist of
certificates of deposit and government securities which are
stated at cost. Interest income, from the investments was
allocated to various funds based primarily on the average cash
balances of the funds.
RISK MANAGEMENT
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 employees and are available to pay
Mr. W. M. Sustaire
November 4, 1988
Page 6
claims, claim reserves and administrative costs of the program.
An excess coverage insurance policy covers individual claims in
excess of $40,000.
GENERAL FIXED ASSETS
The general fixed assets of the City are those fixed assets used
in the performance of general governmental functions and exclude
the fixed assets of the Water and Sewer Enterprise Fund. As of
September 30, 1988, the general fixed assets of the City amounted
to $8,760,181 which, excludes amounts for the City's infra-
structure included in previous years. This amount represents the
original cost of the assets and is considerably less than their
replacement value. Depreciation of general fixed assets is not
recognized in the City's accounting system.
INDEPENDENT AUDIT
The City Charter requires an annual audit to be made of the books
of account, financial records and transactions of all administra-
tive departments of the City by a certified public accounting
firm selected by the City Council. This requirement has been
complied with and the auditors' opinion has been included in this
report.
AWARD
The Government Finance Officers Association (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting
to the City for its comprehensive annual financial report for the
fiscal year ended September 30, 1987. In order to be awarded a
Certificate of Achievement, the City published an easily readable
and efficiently organized comprehensive annual financial
report. This report satisfied both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year
only. We believe that our current comprehensive annual financial
report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine
its eligibility for another certificate.
ECONOMIC CONDITIONS AND OUTLOOK
The City is experiencing moderate recovery from the down -turn in
the Texas economy. Gross receipts tax revenue increased
XI
Mr. W. M. Sustaire
November 4, 1988
Page 7
approximately 7.8 percent over the prior year while sales tax
receipts and building permits increased approximately 16.5
percent and 28.9 percent, respectively. The Santa Fe Railway has
decided to relocate their Texas Division headquarters to the City
in the near future. Additionally, five new restaurants are in
the process of opening in the City.
SIGNIFICANT EVENTS AND ACCOMPLISHMENTS
• Established the Euless Office of Economic Development in late
1987.
• Began construction of multi -purpose recreation center located
in the existing Midway Park.
• Instituted a "one stop" approach for all inspectional services
to better assist builders and developers in the City.
• Received the William Olsteen Special Recognition Award for
Excellence in Records Management.
ACKNOWLEDGEMENTS
The preparation of this report on a timely basis could not be
accomplished without the efficient and dedicated services of the
entire staff of the Finance Department. I would like to express
my appreciation to all members of the Department who assisted
andcontributed to its preparation. I would also like to thank
your office and the members of the City Council for their
interest and support in planning and conducting the financial
operations of the City in a responsible and progressive manner.
Respectfully submitted,
iL(/
9e4m/e/ 60‘014—
Jim Hickerson, CGFO
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, 1987
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Executive Director
XIII
City of Euless
Organizational Chart
K. B. Fuller
Police Chief
Police Admin
Patrol Division
Criminal Invst.
Service Division
Pub. Safety Dispatch
E.E.O.C.
Lee Koontz
Fire Chief
Fire Admin.
Fire Suppression
J.Hickerson,CGFO
Dir. of Finance
Account'ng
Data Processing
Water Office
Purchasing
City Council
W.M. Sustaire
City Manager
Bob McFarland
City Att.
Tom Hart
Asst. City Mgr.
Economic Dev.
James Knight,P.E.
Dir. Plan & En
Engineering
Planning
Const. Inspection
Capt. Improvemen
Clerical Services
Lynn Shackelford
Dir of Admin Ser
Facilities Maint
Bldg. Const. Mgmt
Risk Management
Fleet Management
Landscape Dept
H.Kay Godbey,CMC/AAE
City Secretary
Jay Heilman Randy Byers
Dir of Comm Ser Dir of Str & Utl
Traffic Safety
Personnel
Health Insurance
Parks
Recreation
Library
Water
Waste Water
Streets
Service Center
Mike Harris
Court Admin.
Tom Hart
Asst. City Mgr.
Bldg In pection
Envrmt Health
Fire Marshal's 0
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XV
FINANCIAL
SECTION
o
A MEMBER OF ARTHUR YOUNG INTERNATIONAL
2200 Texas American Bank Building
Fort Worth, Texas 76102
Telephone: (817) 335-1900
The Honorable Mayor and City Council
City of Euless, Texas
We have examined the accompanying general purpose financial
statements, by fund types and account groups, of the City of
Euless, Texas, at September 30, 1988, and for the year then
ended, listed in the foregoing table of contents under the
caption "Financial. Section." Our examination was made in
accordance with generally accepted auditing standards and,
accordingly, included such tests of the accounting records and
such other auditing procedures as we considered necessary in the
circumstances.
In our opinion, the general purpose financial statements
mentioned above present fairly the financial position of the fund
types and account groups of the City. of Euless, Texas, at
September 30, 1988, the results of operations for the year then
ended and cash flows of the Water and Sewer Enterprise Fund for
the year then ended, in conformity with generally accepted
accounting principles applied on a basis consistent with that of
the preceding year after giving effect to the change, with which
we concur, in the method of accounting for capitalization of
infrastructure costs as described in Note 11 to the financial
statements.
Our examination was made primarily for the purpose of expressing
an opinion on the general purpose financial statements, taken as
a whole. The supplemental statements and schedules listed in the
table of contents are presented for purposes of additional
analysis and are not a required part of the general purpose
financial statements. Such supplemental statements and schedules
have been subjected to the auditing procedures applied in the
examination of the general purpose financial statements and, in
our opinion, are fairly stated in all material respects in
relation to the general purpose financial statements taken as a
whole. The statistical information on tables 1-14 was not
examined by us and accordingly, we do not express an opinion on
it.
k,,i, 2-e-4--7 ' t-17'-'7
November 4, 1988
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CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1988
With comparative totals for September 30, 1987
ASSETS AND OTHER DEBITS
Cash and cash equivalents
Receivables:
Delinquent property taxes, net of
allowance for doubtful collections
of $212,555
Accounts receivable
Unbilled water and sewer revenue
Accrued interest receivable
Due from other funds (Note 10)
Due from other governments
Restricted assets (Notes 2, 3 and 4)
General fixed assets (Notes 6 and 11)
Net utility plant in service (Note 6)
Capitalized water and sewer facility
contract rights less accumulated
amortization of $3,281,806 (Note 5)
Amount available for retirement of
general long-term debt
Amount to be provided for retirement
of general long-term debt
General
Fund
Governmental fund types
Special
Revenue
Funds
Debt
Service
Fund
Capital
Projects
Funds
$2,122,610 $173,002 $456,058 $1,474,358
105,100
4,085
51,181
146,103
109,609
66,504
37,907
7,465
469,475
$2,538,688 $239,506 $493,965 $1,951,298
EXHIBIT 1
Proprietary
fund type
Water and
Sewer
Enterprise
Fund
$ 1,769,353
631,486
339,038
33,804
3,506,202
20,040,770
16,509,780
Fiduciary
fund type
Agency
Funds
$1,802,001
66,692
Account groups
General
fixed
assets
8,760,181
$
General
long-term
debt
Totals (memorandum only)
(Note 11)
1988
1987
- $ 7,797,382 $ 8,783,819
383,429
143,007
635,571
339,038
92,450
748,774
109,609
3,506,202
8,760,181
20,040,770
16,509,780
383,429
10,181,354 10,181,354
$42,830,433 $1,868,693 $8,760,181 $10,564,783
$69,247,547
163,417
657,691
339,038
246,229
749,324
135,321
3,421,017
6,994,063
20,524,980
16,975,842
318,010
10,366,504
$69,675,255
-5- (Continued)
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1988
With comparative totals for September 30, 1987
(Continued)
Governmental fund types
Special Debt Capital
General Revenue Service Projects
LIABILITIES AND FUND EQUITY Fund Funds Fund Funds
Liabilities:
Accounts payable $ 121,373 $ 66,504 $ - $ 412,897
Accrued salaries and wages 89,407
Customer and escrow deposits
Accrued interest
Due to other funds (Note 10) 124,186 41,000 76,111
Obligations under capitalized water
and sewer facility contract rights
(Note 5)
Bonds payable (Note 3)
Deferred revenue 95,812 34,425
Commitments and contingent
liabilities (Notes 8 and 9)
Total liabilities
Fund equity:
Investment in general fixed assets
Contributed capital (Note 12)
Fund balances:
Reserved:
For recreation equipment 10,943
For public safety 153,969
For park improvements 5,129
For drug enforcement 21,452
Unreserved:
Designated for:
Contingency 665,347
Emergency 500,000
Undesignated 751,070 132,002 383,429 1,538,401
430,778 107,504 110,536 412,897
Retained earnings:
Reserved for debt service
(Notes 3 and 4)
Unreserved
Total fund balances/
retained earnings
Total equity
2,107,910 132,002 383,429 1,538,401
2,107,910 132,002 383,429 1,538,401
$2,538,688 $239,506 $493,965 $1,951,298
See notes to financial statements.
-6-
EXHIBIT 1
(continued)
Proprietary Fiduciary
fund type fund type
Water and
Sewer
Enterprise Agency
Fund Funds
$ 77,982 $ 169,406 $
13,867
476,000 1,229,812
75,219
38,002 469,475
17,614,422
5,245,000
142,873
23,683,365 1,868,693
13,694,612
2,395,610
3,056,846
Account groups
General
fixed
assets
General
long-term
debt
Totals (memorandum only)
(Note 11)
1988
- $ 848,162
103,274
1,705,812
75,219
748,774
1987
$ 301,971
69,111
1,666,586
79,631
749,324
17,614,422 17,939,191
10,564,783 15,809,783 16,234,514
273,110 314,090
- 10,564,783 37,178,556 37,354,418
- 8,760,181
- 8,760,181
13,694,612
10,943
153,969
5,129
21,452
665,347
500,000
2,804,902
2,395,610
3,056,846
6,994,063
13,442,545
3,620
156,131
10,189
375,167
500,000
4,691,622
2,412,220
3,735,280
5,452,456 - - - 9,614,198 11,884,229
19,147,068 - 8,760,181 - 32,068,991 32,320,837
$42,830,433 $1,868,693 $8,760,181 $10,564,783 $69,247,547 $69,675,255
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
Year ended September 30, 1988
With comparative totals for year ended September 30, 1987
Governmental fund types
Special Debt Capital
General Revenue Service Projects
Fund Funds Fund Funds
Revenues:
General property tax $3,702,110 $ - $1,378,717 $
Gross receipts tax 1,145,559 110,936
General sales tax 1,818,516
Licenses and permits 164,031
Fines and fees 501,151
Interest income 342,806 43,806
Federal revenue sharing
Intergovernmental 380,612
Other revenues 322,320 670,755 101,929
Total revenues 8,377,105 781,691 1,378,717 145,735
Expenditures:
Current:
City Council 18,316
General government 443,947
Civil Service 91,164
Police Department 2,876,512
Legal and Corporation Court 195,377
Fire Department 1,833,741
Street Department 396,572
Traffic safety 79,372
Planning and development 133,396 102,694
Library 346,069
Recreation Department 163,067
Swimming pools 37,633
Civic Center 335,959
Code enforcement 127,154
Health and animal shelter 163,313
Jail fund 122,883
Recreation classes 145,240
Insurance 669,150
Nondepartmental 567,795
Parks Department 525,522
Debt service:
Principal retirement 549,732
Interest and service charges 763,566
EXHIBIT 2
Totals (memorandum only)
(Note 11)
1988 1987
$ 5,080,827
1,256,495
1,818,516
164,031
501,151
386,612
380,612
1,095,004
10,683,248
18,316
443,947
91,164
2,876,512
195,377
1,833,741
396,572
79,372
236,090
346,069
163,067
37,633
335,959
127,154
163,313
122,883
145,240
669,150
567,795
525,522
549,732
763,566
$ 4,826,752
1,183,527
1,560,771
201,468.
413,120
511,684
2,589
535,814
595,734
9,831,459
11,094
320,430
117,566
2,288,909
175,714
1,675,041
402,974
110,678
239,815
299,644
176,633
37,334
315,852
172,393
114,945
106,506
127,671
526,263
593,150
393,623
60,428
1,280,743
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
Year ended September 30, 1988
With comparative totals for year ended September 30, 1987
Expenditures (continued):
Debt service (continued):
Capital outlay and main-
tenance
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Sale of general obligation
bonds (Note 3)
Operating transfers in
Operating transfers out
Total other financing
sources (uses)
Excess (deficiency) of revenues
and other financing sources
over expenditures
Fund balances, beginning of year
Fund balances, end of year
(Continued)
General
Fund
Governmental
Special
Revenue
Funds
fund types.
Debt Capital
Service Projects
Fund Funds
$ 518,146 5 4,454 $ - $ 2,000,806
9,121,178 776,298 1,313,298 2,000,806
(744,073) 5,393
768,345
(190,000) (55,000)
578,345 (55,000)
65,419 (1,855,071)
430,000
430,000
(165,728) (49,607) 65,419 (1,425,071)
2,273,638 181,609 318,010 2,963,472
$2,107,910 $132,002 $ 383,429 $ 1,538,401
See notes to financial statements.
-10-
EXHIBIT 2
(continued)
Totals (memorandum only)
1988
$ 2,523,406
13,211,580
(2,528,332)
430,000
768,345
(245,000)
953,345
1987
$ 2,365,582
11,912,988
(2,081,529)
348,356
480,713
829,069
(1,574,987) (1,252,460)
5,736,729 6,989,189
$ 4,161,742 $ 5,736,729
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND
Year ended September 30, 1988
General property tax:
Current and delinquent taxes
Penalty and interest
Gross receipts tax:
Southwestern Bell Telephone
Company
Texas Power and Light
Company
Lone Star Gas Company
Cable TV
Tarrant County Waste
Disposal
Others
General sales tax
Licenses and permits:
Building permits
Street inspections
Miscellaneous permits
Electric licenses
Fines and fees:
Corporation Court fines
Dog pound fees
Actual
EXHIBIT 3
Variance
favorable
Budget (unfavorable)
$3,654,989 $3,569,358
47,121 25,000
3,702,110 3,594,358
253,885
616,892
129,608
64,750
25,934
54,490
1,145,559
1,818,516
79,801
1,129
73,350
9,751
164,031
491,241
9,910
501,151
$ 85,631
22,121
107,752
240,000 13,885
550,000 66,892
120,000 9,608
44,000 20,750
25,000 934
60,750 (6,260)
1,039,750 105,809
1,690,000 128,516
50,000 29,801
15,000 (13,871)
46,600 26,750
12,000 (2,249)
123,600 40,431
360,000 131,241
8,000 1,910
368,000 133,151
EXHIBIT 3
(continued)
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND
Year ended September 30, 1988
Interest income
Intergovernmental
Other revenues:
Library receipts
Rental income
Miscellaneous income
Texas Court cost service fee
Swimming pools
Total revenues
Expenditures:
Current:
City Council
General Government
Civil Service
Police Department
Legal and Corporation Court
Fire Department
Street Department
Traffic safety
Planning and development
Library
Recreation Department
Swimming pools
Civic Center
Code enforcement
Health and animal shelter
Jail fund
Recreation classes fund
Nondepartmental
Parks Department
Capital outlay and maintenance
Total expenditures
(Continued)
Actual
$ 342,806
380,612
13,391
18,099
267,638
13,612
9,580
322,320
8,377,105
18,316
443,947
91,164
2,876,512
195,377
1,833,741
396,572
79,372
133,396
346,069
163,067
37,633
335,959
127,154
163,313
122,883
145,240
567,795
525,522
518,146
9,121,178
Budget
$ 300,000
250,833
13,000
20,000
70,000
8,000
12,000
123,000
7,489,541
16,000
425,577
70,644
2,804,106
189,001
1,699,039
505,445
90,407
129,719
354,086
188,817
47,700
332,273
146,207
161 ,950
720,700
520,689
8,402,360
Variance
favorable
(unfavorable)
$ 42,806
129,779
391
(1,901)
197,638
5,612
(2,420)
199,320
887,564
(2,316)
(18,370)
(20,520)
(72,406)
(6,376)
(134,702)
108,873
11,035
(3,677)
8,017
25,750
10,067
(3,686)
19,053
(1,363)
(122,883)
(145,240)
152,905
(4,833)
(518,146)
718,818
-13- (Continued)
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND
Year ended September 30, 1988
(Continued)
Excess of expenditures
over revenues
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing sources
Excess of expenditures over revenues
and other financing sources
Fund balance, beginning of year
Fund balance, end of year
Actual
EXHIBIT 3
(continued)
Variance
favorable
Budget (unfavorable)
$ (744,073) $ (912,819) $ 168,746
768,345
(190,000)
578,345
705,120
(190,000)
515,120
63,225
63,225
(165,728) (397,699) 231,971
2,273,638 2,273,638 -
$2 ,107 , 910 $1 , 875 , 939 $ 231,971
See notes to financial statements.
-14-
EXHIBIT 4
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS - PROPRIETARY
FUND TYPE - WATER AND SEWER ENTERPRISE FUND
Year ended September 30, 1988
Operating revenues:
Water service
Sewer service
Water and sewer tap fees
Service fees and miscellaneous
Total operating revenues
Operating expenses:
General and administrative
Water production
Water distribution
Sewage collection and treatment
Nondepartmental
Service center
Amortization of capitalized water and
sewer facility contract rights
(Note 5)
Depreciation
Total operating expenses
Operating income
Nonoperating revenues (expenses):
Investment income
Loss on sale of equipment
Interest on revenue bonds
Interest on obligations under capitalized
water and sewer facility contract rights
Total nonoperating expenses, net
Loss before operating transfers
Operating transfers from other funds
Operating transfers to other funds
Net loss
Retained earnings, beginning of year
Retained earnings, end of year
See notes to financial statements.
$ 4,220,114
2,299,081
44,839
202,538
6,766,572
248,261
1,986,294
401,341
661,402
625,919
335,330
495,843
802,767
5,557,157
1,209,415
506,677
(494)
(367,888)
(1,519,409)
(1,381,114)
(171,699)
190,000
(713,345)
(695,044)
6,147,500
$ 5,452,456
-15-
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS -
PROPRIETARY FUND TYPE -
WATER AND SEWER ENTERPRISE FUND
Year ended September 30, 1988
Cash flows from operations:
Net loss from operations
Adjustments to reconcile net income to net
cash provided by operating activities:
Loss on sale of fixed assets
Depreciation expense
Amortization of capital contract rights
Decrease in accounts receivable
Decrease in interest receivable
Increase in accounts payable
Increase in accrued payroll
Decrease in accrued interest
Increase in customer and escrow deposits
Decrease in interfund payables
Decrease in deferred revenue
Total adjustments
Net cash flows from operations
Cash flows from investing activities:
Increase in restricted assets
Purchase of utility plant in service
Proceeds from sale of utility plant in service
Net cash from investment activities
Cash flows from financing activities:
Contributions in aid to construction
Principal payments - obligations under capital leases
Principal payments - revenue bonds payable
Net cash from financing activities
Noncash transactions affecting financial position:
Borrowings under capital lease obligations
Increase in capital contract rights
Net effect of non -cash transactions
Net decrease in cash
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
See notes to financial statements.
-16-
EXHIBIT 5
$ (695,044)
494
802,767
495,843
21,470
51,671
77,872
6,351
(4,412)
1,830
(83,837)
(7,800)
1,362,249
667,205
(85,185)
(321,651)
2,600
(404,236)
252,067
(354,550)
(305,000)
(407,483)
29,781
(29,781)
(144,514)
1,913,867
$1,769,353
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
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
principles. The City's significant accounting policies are
described below.
A. REPORTING ENTITY
The combined financial statements of the City
include all government activities and entities for which
the City exercises oversight responsibility. The
criteria considered in determining governmental
activities and entities to be reported within the City's
combined financial statements include the degree of
oversight responsibility (e.g. financial
interdependency, selection of governing authority,
designation of management, ability to significantly
influence operations) exercised by the City over a
government activity or entity, the City's accountability
for the activity'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 contemplated 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;
-17- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Texas Municipal Retirement System - provides
retirement benefits to city employees;
Trinity River Authority - provides water and
sewer services to various municipalities.
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 and the results of its
operations. Fund accounting is designed to demonstrate
legal compliance and to aid financial management by
segregating transactions related to certain City
functions or activities.
A fund is a separate accounting entity with a
self -balancing set of accounts. An account group, on
the other hand, is a financial reporting device designed
to provide accountability for certain assets and
liabilities that are not recorded in the funds because
they do not directly affect net expendable available
financial resources.
Funds are classified into three categories:
governmental, proprietary and fiduciary. Each category,
in turn, is divided into separate "fund types."
Governmental funds are used to account for all
or most of the City's general activities, including the
collection and disbursement of earmarked monies (special
revenue funds), the acquisition or construction of
general fixed assets (capital projects funds) and the
-18- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 or to other departments or agencies
primarily within the City (internal service funds).
Fiduciary funds are used to account for assets
held on behalf of outside parties, including other
governments, or on behalf of other funds within the
City. Agency funds generally are used to account for
assets that the City holds on behalf of others as their
agent.
C. BASIS OF ACCOUNTING
The accounting and financial reporting
treatment applied to a fund is determined by its
measureent focus. All governmental funds are accounted
for using a current financial resources measurement
focus. With this measurement focus, only current assets
and current liabilities generally are included on the
balance sheet. Operating statements of these funds
present increases (i.e., revenues and other financing
sources) and decreases (i.e., expenditures and other
financing uses) in net current assets.
All proprietary funds are accounted for on a
flow of economic resources measurement focus. With this
measurement focus, all assets and all liabilities
associated with the operation of these funds are
included on the balance sheet. Fund equity (i.e., net
total assets) is segregated into contributed capital and
-19- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
retained earnings components. Proprietary fund -type
operating statements present increases (e.g., revenues)
and decreases (e.g., expenses) in net total assets.
The modified accrual basis of accounting is
used by all governmental 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
availability period is used for revenue recognition for
all other governmental fund revenues. Expenditures are
recorded when the related fund liability is incurred.
Principal and interest on general long-term debt are
recorded as fund liabilities when due or when amounts
have been accumulated in the debt service fund for
payments to be made early in the following year.
Those revenues 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 susceptible
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.
The City reports deferred revenue on its
combined balance sheet. Deferred revenues arise when a
potential revenue does not meet both the "measurable"
and "available" criteria for recognition in the current
period. Deferred revenues also arise wnen resources are
-20- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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.
(4) The City Manager is authorized to transfer
budgeted amounts between departments within any
fund; however, any revisions that alter the total
expenditures of any fund must be approved by the
City Council.
(5) Formal budgetary integration is employed as a
management 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 adopted on a
basis consistent with generally accepted
accounting principles. Budgeted amounts are as
-21- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
originally adopted and amended by the City
Council. 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
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) Budgetary data for the Water and Sewer Enterprise
Fund has not been presented since the reporting on
such budget is not legally required.
(11)
Expenditures did not exceed appropriations in
individual funds for the year ended September 30,
1988.
E. CASH, CASH EQUIVALENTS AND INVESTMENTS
Substantially all operating cash, restricted
cash and cash equivalents are maintained in consolidated
cash and cash equivalent accounts. Cash equivalents
consist solely of certificates of deposits.
Investments consist solely of U.S. Government
securities and are stated at cost or amortized cost.
-22- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.appropria-
tion for the fiscal year beginning on October 1, are due
October 1, and become delinquent on February 1. Prop-
erty 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
are limited by the Texas Constitution to $2.50 per $100
of assessed valuation. The City's current tax rate is
$.44 per $100 of assessed valuation and assessed
valuation is approximately 100 percent of estimated
actual value.
G. 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 Fund and Special Revenue Fund 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 con-
sisting 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
(See Note 11). No depreciation is recorded on general
fixed assets.
-23- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures for utility plant are capitalized
in the Water and Sewer Enterprise Fund. Depreciation is
recorded on each class of depreciable property in the
Water and Sewer Enterprise Fund utilizing the straight-
line method over the following estimated useful lives of
the assets:
Equipment
Waterworks and sanitary
sewer system
5 - 15 years
33-1/3 years
Costs related to repairs and maintenance are
recorded as expenditures or expenses. Significan'
renovations and improvements are capitalized.
H. EMPLOYEES' VACATION AND SICK LEAVE
Employees may accumulate a maximum of 20 days
of vacation. The City's policy is to pay the employee
foraccumulatedvacation upon termination. Accrued
vacation pay is insignificant and is not recorded by the
City. The City does not pay employees for accumulated
sick leave upon termination.
I. RESERVES
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.
J. 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 and operations.
Complete comparative data (i.e. presentation of prior
year totals by fund type in each of the statements) have
not been presented since their inclusion would make the
statements unduly complex and difficult to read.
-24- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
K. TOTALS (MEMORANDUM ONLY) COLUMN ON COMBINED STATEMENTS
The totals column on combined statements are
captioned Memorandum Only to indicate that they are pre-
sented only to facilitate financial analysis. Data in
these columns do not present financial position, results
of operations, or changes in financial position in
conformity with generally accepted accounting
principles. Neither is such data comparable to a
consolidation. Interfund eliminations have not been
made in the aggregation of this data.
L. INTERFUND TRANSACTIONS
Quasi -external transactions are accounted for
as revenues, expenditures or expenses. Transactions
that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are
properly applicable to another fund, are recorded as
expenditures/expenses in the reimbursing fund and as
reductions of expenditures/expenses in the fund that is
reimbursed.
All other interfund transactions, except
quasi -external transactions and reimbursements, are
reported as transfers. Nonrecurring or nonroutine
permanent transfers of equity are reported as residual
equity transfers. All other interfund transfers are
reported as operating transfers.
2. 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.
3. BONDS PAYABLE
During 1988, the City issued $430,000 in General
Obligation Bonds for the Capital Projects Fund. Outstanding
-25- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
3. BONDS PAYABLE
bonds were reduced by principal payments of $549,732 and
$305,000 on General Obligation Bonds and Water and Sewer
Revenue Bonds, respectively.
Bonded debt outstanding at September 30, 1988,
consists of the following:
Range of
interest
rates
Outstanding
balance
General Obligation Bonds 6.00 to 10% $10,564,783
Water and Sewer Revenue
Bonds
4.5 to 10.75% 5,245,000
$15,809,783
Current
maturities
$589,343
310,000
Long-term
maturities
$ 9,975,440
4,935,000
$899,343 $14,910,440
The bonds mature serially through the year 2005
and have various call options whereby they may be redeemed
during certain periods prior to maturity. A schedule of
bond and interest maturities is as follows:
General
Obligation
Bonds
1989 $ 1,358,352
1990 1,354,111
1991 1,365,124
1992 1,268,838
1993 1,268,098
1994-1998 6,321,232
1999-2003 4,521,520
2004-2005 836,000
Less interest
18,293,275
7,728,492
Principal $10,564,783
Water and Sewer
Revenue Bonds
$ 661,675
651,225
602,825
553,900
547,700
2,721,675
2,320,575
261,650
8,321,225
3,076,225
$5,245,000
Total
$ 2,020,027
2,005,336
1,967,949
1,822,738
1,815,798
9,042,907
6,842,095
1,097,650
26,614,500
10,804,717
$15,809,783
General Obligation Bonds authorized and unissued
as of September 30, 1988, amounted to $300,000. Water and
-26-
(Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
3 BONDS PAYABLE
Sewer Revenue Bonds authorized and unissued as of September
30, 1988, amounted to $1,200,000.
Water and Sewer Revenue Bonds are payable solely
from and equally secured by a first lien on and pledge of
the net revenue of the City's combined waterworks and
sanitary sewer system.
In accordance with the revenue bond ordinances,
the following special reserves were established:
Reserve for revenue bond debt service - to be used
for retirement of the current portion of principal
and interest payments due.
Reserve for revenue bond retirement - to be used
for payment of principal and interest on bonds at
any time where there is not sufficient money
available in the revenue bond debt service fund.
No payments are required into this fund after
accumulating therein an amount equal to the
average annual principal and interest requirements
of the bonds outstanding.
Reserve for emergency - to be used for payment of
extraordinary repairs or replacements to the
system necessitated by an emergency for which no
other funds are available. Should the reserve for
bond debt service and/or reserve for bond
retirement prove deficient, the reserve for
emergency shall be used for the purpose of meeting
principal and/or interest requirements of the
bonds.
All requirements for funding of the above reserves
were met at September 30, 1988.
Investments of funds included in the bond reserve
and emergency accounts are restricted to direct obligations
of or obligations unconditionally guaranteed by the United
States of America having maturities not in excess of ten and
five years, respectively.
-27- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
4. PROPERTY SALE PROCEEDS ACCOUNTS
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 equal to
32.33 percent of the $5,800,000 of revenue bonds issued by
the City for the original purchase of the combined system.
The property sale proceeds must be applied solely to the
prepayment or prior redemption of the revenue bonds and
investment income of the funds may be applied to current
revenue bond interest in an amount not to exceed 32.33
percent of the requirement on the amount of bonds then
outstanding. As of September 30, 1988, the balance in the
property sales proceeds account was $439,622 and is included
in restricted assets in the accompanying balance sheet.
5. WATER AND SEWER FACILITY CONTRACT RIGHTS
Under the City's long-term contracts with the
Trinity River Authority of Texas (TRA) for sewer treatment
services and water supply, the City is obligated for the
next 37 years to share in the costs of operations,
maintenance and debt service of the Authority. Payments
under these contracts approximated $3,828,466 in 1988. The
amounts under the contracts representing debt service have
been capitalized and the related obligation included in the
accompanying balance sheet.
The capitalized water and sewer facility contract
rights are being amortized on a straight-line basis over 50
years.
The City's share of the related TRA debt service
is adjusted each year based on the City's usage compared to
that of other users. The City's obligation is amortized
based on its current usage. The following is a schedule by
years of estimated future minimum requirements under the
contracts (debt service portion) together with the present
value of the net minimum requirements as of September 30,
1988:
-28- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
5. WATER AND SEWER FACILITY CONTRACT RIGHTS
Year ending September 30:
1989
1990
1991
1992
1993
Thereafter
Less amount representing interest
Present value of minimum
requirements $17,614,422
6. FIXED ASSETS
$ 1,927,239
1,952,445
1,945,656
1,970,782
1,963,580
26,736,353
36,496,055
18,881,633
The following is a summary of changes in the
general fixed assets account group during the fiscal year:
Balance Balance
September September
30, 1987 Additions Deductions 30, 1988
Land $ 706,188 $ 163,383 $ - $ 869,571
Buildings 2,806,148 776,959 3,583,107
Improvements other than
buildings 335,296 141,647 476,943
Machinery and equipment 3,146,431 494,948 149,552 3,491,827
Construction in progress 338,733 338,733
Total general fixed
assets (Note 11) $6,994,063 $1,915,670 $149,552 $8,760,181
The following is a summary of Water and Sewer
Enterprise Fund utility plant in service at September 30,
1988:
Land $ 1,528,966
Equipment 822,966
Waterworks and sanitary sewer system 24,388,803
26,740,735
Less accumulated depreciation 6,699,965
$20,040,770
-29- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
7. SERVICE CENTER
The Water and Sewer Enterprise Fund historically
bears the major portion of the operating costs of the City's
service center which provides services to all city
departments.
8. COMMITMENTS AND CONTINGENCIES
The City has participated in a number of State and
Federally assisted grant programs, principal of which is
Federal Revenue Sharing. These programs were subject to
financial and compliance audits by the grantors or their
representatives, the purpose of which was to insure
compliance with conditions precedent to the granting of
funds. Any liability for reimbursement which may arise as
the result of these audits is not believed to be material.
At September 30, 1988, the City did not have any
significant long-term lease agreements.
9. LITIGATION
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 suits would not be material in relation
to the City's financial position.
10. INTERFUND ASSETS/LIABILITIES
Due from/to other funds:
Receivable fund
General
Special revenue
Payable fund
Special revenue
Debt service
Water and sewer
General
Water and sewer
Capital projects Agency
Amount
$ 41,000
76,111
28,992
66,449
55
469,475
-30-
(Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
10. INTERFUND ASSETS/LIABILITIES
Receivable fund Payable fund
Agency General
Water and sewer
11. CHANGE IN ACCOUNTING PRINCIPLE
Amount
$ 57,737
8,955
$748,774
The City historically has included the costs of
its infrastructure assets in the General Fixed Assets
Account Group, which costs amounted to $31,533,740 at
September 30, 1987. Effective October 1, 1987 the City
retroactively changed the policy of capitalizing
infrastructure and is now excluding it from the General
Fixed Assets Account Group. There is no effect on the
statement of revenues and expenditures as a result of this
change.
12. CONTRIBUTED CAPITAL
During the current year, contributed capital of
the Water and Sewer Enterprise Fund increased by developer's
contributions in aid to construction in the amount of
$252,067.
13. DEPOSITS AND INVESTMENTS
At September 30, 1988, the carrying amount of the
City's deposits was $9,390,520 and the bank balance was
$9,619,774. The City's deposits are categorized as either
(1) insured or collateralized with securities held by the
City or by its agent in the City's name, (2) collateralized
with securities held by the pledging financial institution's
trust department in the City's name or (3) uncollateralized,
as follows:
-31- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
13. DEPOSITS AND INVESTMENTS
Deposit
Category amount
1 $8,709,191
2 848,022
3 62,561
$9,619,774
At September 30, 1988, the carrying amount of the
City's investments was $1,852,879 and the market value was
$1,829,607. All of the investments were held by the City's
agent in the City's name.
14. RISK MANAGEMENT
The City participates in the Texas Municipal
League Joint Self Insurance Fund ("TMLIF") to provide both
general liability and property insurance. The City, along
with other participating entities, contribute 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 all other funds and by the City's
employees and are available to pay claims, claim reserves
and administrative costs of the program. An excess coverage
insurance policy covers individual claims in excess of
$40,000. During 1988, the City and the City's employees
paid premiums amounting to approximately $510,000 and
$160,000, respectively. The City's contributions are
accounted for as quasi -external transactions. Claims
incurred but not reported have been considered in
determining the claims liability at September 30, 1988.
15. EMPLOYEE RETIREMENT SYSTEM
All of the City's full time employees participate
in the Texas Municipal Retirement System (TMRS) which is a
state-wide defined contribution (money -purchase) pension
-32- (Continued)
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 1988
15. EMPLOYEE RETIREMENT SYSTEM
plan. The payroll for employees covered by the TMRS for the
year ended September 30, 1988 was $6,219,896; the City's
total payroll was $6,343,146.
Employees attaining the earlier of age 60 and 10
years of service or any age with 25 years or more of
service, are entitled to a monthly benefit. The benefit is
based solely upon the sum of the employee's and the City's
contributions, plus earnings, accumulated in individual
accounts of employees.
The City and covered employees are required by
state statute and by City ordinance to contribute to the
Plan. Employees contribute 7 percent of their salaries and
the City contributes 10.34 percent for the Plan's 1988
fiscal year which ends December 31, 1988. The contribution
requirement for the year ended September 30, 1988, was
$1,070,950 which consisted of $635,558 (10.2 percent of
covered payroll) from the City and $435,392 (7 percent of
covererd payroll) from employees.
There were no current year changes in the Plan's
provisions.
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.
Insurance Fund - to account for the revenue and expenditures
resulting from providing health insurance to the City's
employees.
Industrial Development Fund - to account for the revenues and
expenditures used in developing new industry in the City.
A-1
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
September 30, 1988
ASSETS
Cash and cash equivalents
Due from other funds
LIABILITIES AND FUND EQUITY
Accounts payable
Due to other funds
Total liabilities
Fund balances
Hotel/
Motel Insurance
Fund Fund
$130,397 $ 41,000
66,504
$130,397 $107,504
Industrial
Development
Fund
Totals
1988 1987
$1,605 $173,002 $ 69,379
66,504 183,703
$1,605 $239,506 $253,082
$ - $ 66,504 $
41,000
- 107,504
130,397
$130,397 $107,504
1,605
$1,605
$ 66,504 $ 30,473
41,000 41,000
107,504 71,473
132,002 181,609
$239,506 $253,082
A-2
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
Year ended September 30, 1988
Revenues:
Gross receipts tax
Other revenues
Expenditures:
Planning and development
Insurance claims and
fees
Capital outlay and
maintenance
Excess (deficiency) of
revenues over expendi-
tures
Other financing sources:
Net operating transfers
in (out)
Excess of expenditures
over revenues
Fund balances, beginning
of year
Hotel/
Motel
Fund
Industrial
Insurance Development
Fund Fund
$110,936 $
110,936 669,150
102,694
669,150
669,150
$ 1,605
1,605
4,454
102,694 669,150 4,454
8,242
(55,000)
(46,758)
177,155
Fund balances, end of year $130,397 $
(2,849)
(2,849)
- 4,454
Totals
1988 1987
$ 110,936
670,755
781,691
102,694
669,150
4,454
776,298
$ 120,357
118,960
239,317
82,305
526,263
3,910
612,478
5,393 (373,161)
(55,000) 352,303
(49,607) (20,858)
181,609 202,467
- $ 1,605 $ 132,002 $ 181,609
CAPITAL PROJECTS FUNDS
Park and Recreation Fund - to account for the financing and
construction of park facilities. Financing was provided primarily
by the sale of general obligation bonds of $1,500,000 in 1986 and
$430,000 in 1988.
Street Improvement and Drainage Fund - to account for the financing
and construction of improvements to various street and drainage
projects. Financing was provided primarily from the sale of general
obligation bonds of $1,000,000 in 1986.
Revenue Sharing Fund - to account for the capital project expenditures
for which this grant funding is used. Financing was provided by
entitlement grants from the Federal government.
Equipment Certificates Fund - 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 as authorized under the Public
Property Finance Act of 1979, State of Texas.
ASSETS
Cash and cash
equivalents
Accrued interest
receivable
Due from other funds
LIABILITIES AND
FUND EQUITY
Accounts payable
Fund balances
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
September 30, 1988
Street
Park and Improvement Revenue Equipment
Recreation and Drainage Sharing Certificates
Fund Fund Fund Fund
$983,932 $368,788 $10,227 $111,411
7,465
469.475
$983,932 $845,728 $10,227 $111,411
$338,733
645,199
$983,932
$ 74,164 $ - $ -
771,564 10,227 111,411
$845,728 $10,227 $111,411
Totals
1988 1987
$1,474,358
7,465
469,475
$1,951,298
$2,530,338
25,707
407,427
$2,963,472
$ 412,897 $
1,538,401 2,963,472
$1,951,298 $2,963,472
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
Year ended September 30, 1988
Street
Park and Improvement Revenue Equipment
Recreation and Drainage Sharing Certificates
Fund Fund Fund Fund
Revenues:
Investment income $ - $ 43,806-
Federal revenue
sharing
Other revenues 101,929
145,735
Expenditures:
Capital outlay and
maintenence 1,237,117 722,635 29,418 11,636
Excess of expen-
ditures over
revenues (1,237,117) (576,900) (29,418) (11,636)
Other financial
sources:
Sale of general
obligation
bonds 430,000
Net operating
transfers out
Total other
financing
sources
430,000
Excess of expen-
ditures over
revenues and
other financing
sources (807,117) (576,900) (29,418) (11,636)
Fund balances,
beginning of year 1,452,317 1,348,464 39,645 123,046
Fund balances, end
of year $ 645,200 $ 771,564 $ 10,227 $111,410
Totals
1988
1987
$ 43,806 $ 78,726
101,929
145,735
2,589
127,247
208,562
2,000,806 1,962,497
(1,855,071) (1,753,935)
430,000 348,356
(28,262)
430,000 320,094
(1,425,071) (1,433,841)
2,963,472 4,397,313
$ 1,538,401 $ 2,963,472
(This page left blank intentionally)
WATER :AND SEWER ENTERPRISE FUND
To account for the acquisition, operation and maintenance of a
municipal utility, supported primarily by user charges to the
public.
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE BALANCE SHEET
September 30, 1988 and 1987
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable, less allowance
for estimated uncollectible accounts
of $1,463 in 1988 and 1987
Unbilled water and sewer revenue
Accrued interest receivable
Total current assets
1988 1987
$ 1,769,353 $ 1,913,867
631,486
339,038
33,804
2,773,681
652,956
339,038
85,475
2,991,336
Restricted assets:
Revenue bond debt service:
Cash with paying agent 59,191 64,904
Revenue bond retirement:
Investments with paying agent, at cost 1,413,257 1,428,566
Revenue bond emergency:
Cash and short-term investments 500,000 500,000
Property sale proceeds account:
Investments with paying agent, at cost 439,622 439,622
Capital projects account:
Cash and short-term investments 559,373 454,996
Customer deposits:
Short-term investments 476,000 474,170
Interest receivable on investments 58,759 58,759
Total restricted assets 3,506,202 3,421,017
Utility plant in service, at cost:
Land 1,528,966 1,528,966
Equipment 822,966 821,478
Waterworks and sanitary sewer system 24,388,803 24,076,498
26,740,735 26,426,942
Less accumulated depreciation 6,699,965 5,901,962
Net utility plant in service 20,040,770 20,524,980
Capitalized water and sewer facility
contract rights less accumulated
amortization of $3,281,806 in 1988
and $2,785,962 in 1987
16,509,780 16,975,842
$42,830,433 $43,913,175
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable and accrued salaries
and wages
Due to other funds
Current portion of obligations under
capitalized water and sewer facility
contract rights
Current portion of revenue bonds payable
Payable from restricted assets:
Customer deposits
Accrued interest
Total current liabilities
Obligations under capitalized water and
sewer facility contract rights
Revenue bonds payable
Deferred revenue
Total liabilities
Fund equity:
Contributions:
From subdividers
From Environmental
From Trinity River
Protection Agency
Authority
Total contributions
Retained earnings:
Reserved:
For revenue bond debt service,
next maturing
For revenue bond retirement
For emergency
Total for debt service
Unreserved
Total retained earnings
Total fund equity
1988
1987
$ 91,849 $ 7,626
38,002 121,839
435,728 361,830
310,000 305,000
476,000 474,170
75,219 79,631
1,426,798 1,350,096
17,178,694 17,577,361
4,935,000 5,245,000
142,873 150,673
23,683,365 24,323,130
13,439,995 13,187,928
239,617 239,617
15,000 15,000
13,694,612 13,442,545
59,191
1,836,419
500,000
2,395,610
3,056,846
5,452,456
19,147,068
$42,830,433
79,388
1,558,172
774,660
2,412,220
3,735,280
6,147,500
19,590,045
$43,913,175
-45-
C-2
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
Years ended September 30, 1988 and 1987
General and administrative:
Salaries and wages
Employee benefits
Postage and supplies
Maintenance of office machinery
Contractual services
Bad debts
Water production:
Salaries and wages
Employee benefits
Operating supplies and expense
Maintenance of structures and equipment
Water - Trinity River Authority
Water distribution:
Salaries and wages
Employee benefits
Operating supplies and expense
Maintenance of structures and equipment
Contractual services
Other
Sewage collection and treatment:
Salaries and wages
Employee benefits
Operating supplies and expense
Maintenance of structures and equipment
Contractual services
Treatment fees - Trinity River Authority
Other
1988
$ 110,014
33,424
18,452
13,899
18,315
54,157
248,261
1987
$ 114,281
21,405
18,482
14,962
19,548
28,702
217,380
223,360 187,449
66,656 49,020
10,270 3,415
41,472 146,446
1,644,536 1,178,981
1,986,294 1,565,311
236,082 194,100
89,301 47,378
12,458 7,911
53,731 172,609
7,962 6,606
1,807 1,498
401,341 430,102
140,152 146,329
53,974 42,619
3,869 3,120
6,101 3,894
3,942 2,799
450,193 385,641
3,171 2,409
661,402 586,811
C-2
(continued)
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
Years ended September 30, 1988 and 1987
(Continued)
Nondepartmental:
Employee benefits
Operating supplies and expense
Contractual services
Service center:
Salaries
Employee benefits
Motor fuel and supplies
Maintenance of structures and equipment
Other
Amortization of capitalized water and
sewer facility contract rights
Depreciation
Total operating expenses
1988 1987
$ 7,116 $ 4,363
491,737 471,939
127,066 164,072
625,919 640,374
95,555
23,931
100 ,260
101,397
14,187
94,168
17,776
65,102
91,227
14,933
335,330 283,206
495,843 492,990
802,767 758,019
$5,557,157 $4,974,193
(This page left blank intentionally)
ALL :AGENCY FUNDS
Social Security Fund - to account for the liability of various
payroll taxes deducted from the City's payroll.
Developers' Escrow Fund - to account for funds held in escrow
for the purpose of making improvements to new development areas
within the City.
D-1
ASSETS
Cash and cash equivalents
Due from other funds
LIABILITIES
Payroll related payables
Escrow deposits
Due to other funds
CITY OF EULESS, TEXAS
ALL AGENCY FUNDS
COMBINING BALANCE SHEET
September 30, 1988
Social Developers'
Security Escrow
Fund Fund
$102,714 $1,699,287
66,692
$169,406 $1,699,287
$169,406 $
1,229,812
469,475
$169,406 $1,699,287
Totals
1988
$1 , 802 , 001
66,692
$1,868,693
$ 169,406
1,229,812
469,475
$1,868,693
1987
$1,730,184
42,302
$1,772,486
$ 172,643
1,192,416
407,427
$1,772,486
D- 2
CITY OF EULESS, TEXAS
ALL AGENCY FUNDS
COMBINING STATEMENT OF CHANGES
ASSETS AND LIABILITIES
Year ended September 30, 1988
SOCIAL SECURITY FUND
Assets
Cash and cash equivalents
Due from other funds
Liabilities
Payroll related payables
DEVELOPERS' ESCROW FUND
Assets
Cash and cash equivalents
Liabilities
Escrow deposits
Due to other funds
TOTAL ALL AGENCY FUNDS
Assets
Cash and cash equivalents
Due from other funds
Liabilities
Payroll related payables
Escrow deposits
Due to other funds
Balance
September 30,
1987 Additions
$ 130,341
42,302
$ 172,643
$2,330,566
24,390
$2,354,956
$ 172,643 $2,354,956
IN
Balance
September 30,
Deductions 1988
$2,358,193 $ 102,714
66.692
$2,358,193 $ 169,406
$2,358,193
169,406
$1,599.843 $1,461.205 $1,361,761 $1,699,287
$1,192,416
407,427
$1,599,843
$1,399,157 $1,361,761 $1,229,812
62,048 469,475
$1 , 461 , 205 $1,361,761 $1,699,287
$1,730,184 $3,791,771 $3,719,954 $1,802,001
42,302 24,390 66,692
$1 , 772 , 486 $3,816,161 $3,719,954 $1,868,693
$ 172,643
1,192,416
407,427
$1,772,486
$2,354,956 $2,358,193
1.399,157 1,361,761
62,048
$3,816,161 $3,719,954
$ 169,406
1,229,812
469,475
$1,868,693
(This page left blank intentionally)
GENERAL FIXED ASSETS ACCOUNT GROUP
To account for fixed assets not
used in proprietary fund operations.
E-1
CITY OF EULESS, TEXAS
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS
BY SOURCE
September 30, 1988 and 1987
General fixed assets:
Land
Buildings
Improvements other than buildings
Machinery and equipment
Construction in progress
Total general fixed assets
Investment in general fixed assets by
source:
General fund
Special revenue funds
Capital projects funds
Total investment in general
fixed assets
1988
$ 869,571
3,583,107
476,943
3,491,827
338,733
$8,760,181
$4,442,059
152,797
4,165,325
$8,760,181
1987
$ 706,188
2,806,148
335,296
3,146,431
$6 , 994 , 063
$4,231,087
145,044
2,617,932
$6,994,063
E-2
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
September 30, 1988
Function
and
activity Land
General
govern-
ment $268,280
Public
saftey 234,325
Culture
and recre-
ation 366,966
Highways
and
streets
Construc-
tion in
pro-
gress
Buildings
$1,382,874
976,250
1,223,983
Improvements
other than
buildings
$
Machinery
and
equipment
$ 416,093
2,088,302
476,943 558,447
428,985
Construction
in progress Total
$ - $2 , 067 ,247
338,733
3,298,877
2,626,339
428,985
338,733
$869,571 $3,583,107 $476,943 $31491,827 $338,733 $8,760,181
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
Function and
activity
General government
Public safety
Culture and recre-
ation
Highways and
streets
Construction in
progress
BY FUNCTION AND ACTIVITY
Year ended September 30, 1988
General fixed
assets
9-30-87
General fixed
assets
Additions Deductions 9-30-88
$2,035,748 $ 31,908 $ 409 $2,067,247
2,929,389 489,451 119,963 3,298,877
1,593,437 1,048,528 15,626 2,626,339
435,489 7,050 13,554 428,985
338,733 338,733
$6,994,063 $1,915,670 $149,552 $8,760,181
STATISTICAL
SEC;'1't0N
TABLE 1
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
Last ten fiscal years
(Unaudited)
Fiscal General
year government
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
$ 546,750
680,381
739,346
737,311
741,825
905,018
1,060,047
1,197,589
1,316,296
1,436,132
Public
safety
$1 , 327 , 831
1,539,987
1,734,324
2,285,229
2,447,377
3,529,424
3,963,322
4,954,072
4,649,517
5,503,148
Culture -
Streets recreation
$256,149
266,714
255,642
332,829
323,104
364,058
401,902
424,806
402,974
396,572
$ 453,046
545,733
530,593
644,703
667,854
859,754
947,590
1,015,965
1,034,905
1,217,531
(1) Includes General and Debt Service Funds.
Debt
service
$ 339,687
430,350
427,658
429,364
425,799
506,439
780,540
964,011
1,341,171
1,313,298
Other Total
$350,478
395,736
418,557
458,351
480,838
509,600
592,995
760,176
593,150
567,795
$ 3,273,941
3,858,901
4,106,120
4,887,787
5,086,797
6,674,293
7,746,396
9,316,619
9,338,013
10,434,476
TABLE 2
Fiscal
year
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
Taxes
$2,648,936
2,763,651
3,229,395
3,609,418
4,320,153
4,967,971
5,902,338
6,374,355
7,450,693
8,044,902
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1)
Last ten fiscal years
(Unaudited)
Licenses
and
permits
$ 77,331
119,383
187,263
191,551
379,549
601,181
429,929
330,136
201,468
164,031
Inter-
governmental
revenues
$129,516
126,671
206,722
312,553
288,355
402,107
521,896
601,988
535,814
380,612
Charges Fines
for and Miscel-
services fees laneous
$23,827 $151,080 $200,111
46,512 210,772 291,721
34,590 208,746 443,065
37,714 259,293 375,297
38,254 200,793 457,210
38,484 265,800 594,673
51,401 356,381 702,740
60,466 423,482 664,199
52,890 413,120 729,595
54,682 501,151 610,444
(1) Includes General and Debt Service Funds.
Total
$3,230,801
3,558,710
4,309,781
4,785,826
5,684,314
6,870,216
7,964,685
8,454,626
9,383,580
9,755,822
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CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
Last ten fiscal years
(Unaudited)
Fiscal Total tax Current tax
year levy collections
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
$1,670,397
1,683,564
1,966,178
2,133,114
2,597,676
2,808,055
3,298,386
3,814,110
4,845,209
5,001,323
$1,583,829
1,598,304
1,889,920
2,045,992
2,543,591
2,745,623
3,182,483
3,575,594
4,704,417
4,921,426
Percent
of levy
collected
94.82
94.94
96.12
95.92
97.92
97.78
96.49
93.75
97.09
98.40
Delinquent
tax
collections
$171,253
93,789
101,408
71,417
39,762
77,156
127,288
76,236
167,892
174,978
Total tax
collections
$1,755,082
1,692,093
1,991,328
2,117,409
2,583,353
2,822,779
3,309,771
3,651,830
4,872,309
5,096,404
TABLE 3
Percent of
total tax
collections
to tax levy
104.70%
100.51
101.28
99.26
99.45
100.52
100.35
95.75
100.56
101.90
Outstanding
delinquent
taxes at
year-end
$ 22,084
213,555
188,405
202,081
246,369
268,760
256,955
393,256
428,865
355,562
Percent of
delinquent
taxes to
tax levy
13.30%
12.68
9.58
9.47
9.48
9.57
7.79
10.31
8.85
7.11
Fiscal
year
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
(1)
(2)
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
(Unaudited)
Real property
Assessed
value
$ 153,414,790
158,125,200
248,902,180
265,109,240
332,750,708
343,084,060
697,008,884
779,704,042
1,080,231,222
1,024,645,236
Source:
Source:
Estimated
actual value
$ 236,022,754
243,269,538
248,902,180
265, 109,240
332,750,708
343,084,060
697,008,884
779,704,042
1,080,231,222
1,024,645,236
Personal property
Assessed
value
$ 24,286,990
20,977,300
31,980,350
39,621,390
57,430,322
58,805,741
68,347,443
88,759,776
101,144,524
112,007,718
Estimated
actual value
$ 37,364,600
32,272,769
31,980,350
39,621,390
57,430,322
58,805,741
68,347,443
88,759,776
101,144,524
112,007,718
Hurst -Euless -Bedford Independent School District.
Tarrant County Appraisal District.
TABLE 4
Total
Assessed
value
$ 177,701,780
179,102,500
280,882,530
304,730,630
390,181,030
401,889,801
765,356,327
868,463,818
1,181,375,746
1,136,652,954
Estimated
actual value
$ 273,387,354
275,542,307
280,882,530
304,730,630
390,181,030
401,889,801
765,356,327
868,463,818
1,181,375,746
1,136,652,954
Ratio of total assessed
to total estimated
actual value
65%
65
100
100
100
100
100
100
100
100
TABLE 5
Fiscal
year
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
NOTES:
(A)
CITY OF EULESS, TEXAS
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
(PER $100 OF ASSESSED VALUE)
Last ten fiscal years
(Unaudited)
City School County
(4) (2) (1)
$.94 $1.76 $.95
.94 1.76 .95
.70 1.24 .285
.70 1.24 .204
.70 1.24 .202
.70 1.24 .125
.44 .74 .125
.44 .82 .09866
.42 .78 .11772
.44 .9169 .11772
State
(3)
Hospital
(1)
$.10 $.56
.10 .56
. 31
. 168
. 178
. 104
. 104
.09634
. 11125
. 11125
Junior
college
(1)
$ . 36
. 35
.095
.048
.052
.031
.031
. 03165
.03153
.03153
Total
$4 .67
4.66
2.63
2.36
2.37
2.20
1 .44
1.48665
1 .460'50
1 .6174
General property taxes for cities are limited by the Texas
Constitution to $2.50 per $100 of assessed valuation.
(B) City general property taxes are due each year on October 1
and become delinquent on February 1 each year. Penalties
are assessed on late payments ranging from 1% after
February 1 to 8% after July 1. Interest is charged on
late payments at the rate of 1/2 of 1% for each month's
delinquency. There are no discounts.
(C) The City's taxes are collected by the Hurst -Euless -Bedford
Independent School District and are distributed to the
City as collected.
Sources:
(1)
(2)
(3)
(4)
Tarrant County
Hurst -Euless -Bedford Independent School District
State of Texas
City Records
TABLE 6
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
September 30, 1988
(Unaudited)
Taxpayer
Robert S. Folsom, et. al.
Southwestern Bell Tele-
phone Company
Texas Utilities Electric
Company
Crossmark Partners II, Ltd.
Prudential Reality Group
• Bear Creek IV, Joint Ven-
ture
Mutual First, Inc.
Misty Hollow Apartments,
Ltd.
First Southwest Equity Corp
Linen J. Vanriet, Trustee
Type of business
Apartments
Utility
Utility
Apartments
Retail
Land
Apartments
Apartments
Apartments
Land
1988
Assessed
valuation
Percentage
of total
assessed
valuation
$ 26,254,519 2.31%
16,301,411
12,919,037
12,223,648
11,999,781
10,497,871
9,379,997
9,216,001
8,167,512
7,910,930
1.43
1.14
1.08
1.06
.92
.83
.81
.72
.69
$124,870,707 10.99%
TABLE 7
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
September 30, 1988
(Unaudited)
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 taxable property of such city."
Additionally, the state Attorney General's Office normally limits
general property taxes to $1.50 per $100 ofassessed valuation
for the payment of principal and interest on general obligation
bonds.
The City's total tax rate for fiscal 1988 was established at $.44
per $100 of assessed valuation based on 100% of appraised value.
(This page left blank intentionally.)
CITY OF EULESS, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
Last ten fiscal years
(Unaudited)
Fiscal Assessed
year Population (1) value (2)
1979 23,450
1980 24,000
1981 26,250
1982 26,100
1983 28,200
1984 32,500
1985 37,950
1986 37,650
1987 38,700
1988 40,250
General
bonded Less debt
debt service funds
$ 177,701,780 $ 5,510,000
179,102,500 5,370,000
280,882,530(A) 5,225,000
304,730,630
390,181,030
401,889,801
765,356,327
868,463,818
1,181,375,746
1,136,652,954
5,070,000
5,520,000
7,825,000
9,095,000
10,396,586
10,684,514
10,564,783
$201,177
156,522
173,872
171,395
235,147
285,142
348,633
313,522
318,010
383,429
Net bonded
debt
$ 5,308,823
5,213,478
5,051,128
4,898,605
5,284,853
7,539,858
8,746,367
10,083,064
10,366,504
10,181,354
(1) Source: Estimates by North Central Texas Council of Governments as
adjusted for 1980 census data.
(2) Source: Tarrant County Appraisal District.
NOTE: (A) Increased basis of assessment from 65 percent to 100 percent.
TABLE 8
Ratio of net Net bonded
bonded debt to debt
assessed value per capita
2.99% $226.39
2.91 217.23
1.80 192.42
1.61 187.68
1.35 187.41
1.88 232.00
1.14 230.47
1.16 267.81
.88 267.87
.89 252.95
TABLE 9
CITY OF EULESS, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Last ten fiscal. years
(Unaudited)
Fiscal
year Principal
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
$110,000
140,000
145,000
155,000
165,000
195,000
230,000
290,000
60,428
549,732
Interest
$ 229,687
290,350
282,658
274,364
260,799
311,439
550,540
674,011
1,280,743
763,566
Total debt
service
$ 339,687
430,350
427,658
429,364
425,799
506,439
780,540
964,011
1,341,171
1,313,298
Total
general
expenditures
$ 3,273,938
3,858,901
4,106,120
4,887,787
5,086,797
6,674,293
7,746,396
9,316,619
9,338,013
10,434,476
Ratio of
debt service
to total
general
expenditures
10 .38%
11.15
10.42
8.78
8.37
7.59
10.08
10.35
14.36
12.59
TABLE 10
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
September 30, 1988
(Unaudited)
Jurisdiction
City of Euless
Grapevine - Colleyville
Independent School
District
Hurst -Euless -Bedford
Independent School District
Tarrant County
Tarrant County Junior
College District
Tarrant County Hospital
District
Total direct and
overlapping debt
Net debt
outstanding
Percent
applicable
to City of
Euless
$ 10,181,354 100.00%
44,673,000
44,941,000
101,690,000
43,900,000
45,750,000
2.12
26.79
2.72
2.72
2.72
Amount
applicable
to City of
Euless
$10,181,354
947,110
12,039,694
2,765,968
1,194,080
1,244,400
$28,372,606
Fiscal
year
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
CITY OF EULESS, TEXAS
REVENUE BOND COVERAGE
WATER AND SEWER BONDS
Last ten fiscal years
(Unaudited)
Gross
revenues
(1)
$2,457,438
2,993,063
3,252,549
3,610,582
4,138,656
5,197,388
6,601,117
6,169,486
7,677,625
7,273,249
Net
Direct revenue
operating available
expenses for debt
(2) service
$1,554,852
1,923,578
2,289,427
2,557,799
2,897,770
3,100,233
3,691,945
4,865,806
5,595,639
6,133,001
$ 902,586
1,069,485
963,122
1,052,783
1,240,886
2,097,155
2,909,172
1,303,680
2,081,986
1,140,248
(1) Includes operating revenues and interest on investments.
(2) Excludes amortization and depreciation and includes debt
service payments to the Trinity River Authority treated as
operating expense for bond coverage purposes.
TABLE 11
Debt service requirements
Principal Interest Total Coverage
$ 140,000 $194,841 $334,841 2.70
140,000 190,175 330,175 3.24
145,000 183,800 328,800 2.93
155,000 177,138 332,138 3.17
160,000 170,075 330,075 3.76
165,000 475,323 640,323 3.28
250,000 422,923 672,923 4.32
255,000 406,625 661,625 1.97
275,000 390,012 665,012 3.13
305,000 372,300 677,300 1.68
TABLE 12_
Fiscal
year
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
Sources:
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTTCS
Last ten fiscal years
(Unaudited)
Population (1)
23,450
24,000
26,250
26,100
28,200
32,500
37,950
37,650
38,700
40,250
Per capita
income (2)
S 8,496
9,362
10,226
11,184
12,091
13,006
13,940
14,828
15,739
16,650
School Unemployment
enrollment (3) rate (4)
14,908
14,765
14,845
15,003
15,172
15,606
15,248
16.067
16.818
16,887
Estimates by North Central Texas Council of Governments
Estimates by City
Hurst -Euless -Bedford Independent School District
(4) U.S. Department of Labor, Bureau
of Labor Statistics
3.3%
4.4
4.4
5.7
4.9
4.2
5.0
6.7
6.9
5.7
TABLE 13
CITY OF EULESS, TEXAS
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Last ten fiscal years
(Unaudited)
Construction (1)
Fiscal Number
year of permits
1979 215
1980 394
1981 410
1982 741
1983 1,178
1984 1,139
1985 879
1986 443
1987 314
1988 405
(1) Source:
(2) Source:
(3) Source:
(4) Source:
Estimated
value
$ 13,243,497
17,755,469
21,485,417
29,631,480
66,419,093
113,992,018
47,670,451
42,546,836
14,128,587
27,937,240
Bank
deposits
(4)
(000's)
$ 37,219
33,851
33,029
34,651
36,219
44,872
48,834
72,689
93,681
186,022
Property
value
$ 273,387,354
275,542,307
280,882,530
304,730,630
390,181,030
401,889,801
765,356,327
868,463,818
1,181,375,746
1,136,652,954
City Records
Tarrant County Appraisal District
Hurst -Euless -Bedford Independent School District
Bank Records
(3)
(3)
(A)(3)
(2)
(2)
(2)
(2)
(2)
(2)
(2)
NOTE: (A) Increased basis of assessment from 65 percent to 100 percent.
TABLE 14
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
September 30, 1988
(Unaudited)
Date of incorporation February 24, 1953
Date of adoption of Charter July 21, 1962
Form of government:
Home Rule, Council -Manager
Mayor - elected at large
Five council members
Area 16.9 square miles
Full time City employees 238
Police protection:
Number of stations
Number of certified officers
Fire protection:
Number of stations
Number of certified firefighters
1
56
3
42
Parks and recreation:
Number of swimming pools 3
Number of parks 8
Area of parks 122 acres
Community buildings 2
Library holdings 49,537
TABLE 14
(continued)
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
September 30, 1988
(Unaudited)
(Continued)
Education:
Elementary Schools 6
Junior High Schools 2
High School 1
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
Streets:
Improved
State highways
17,514
14,000,000 gallons
4,000,000 gallons
18,000,000 gallons
12,316,000 gallons
5,809,000 gallons
148 miles
1,107
3,883,000 gallons
17,080
125 miles
120 miles
17.2 miles