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FY 1984 Financial Statemsnt and Additional Information - Audit
OFFICIAL COPY DO NOT REMOVE FROM CITY SECRETARY RECORDS CITY OF EULESS, TEXAS FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION YEAR ENDED SEPTEMBER 30, 1984 with REPORT OF CERTIFIED PUBLIC ACCOUNTANTS "Pr ANNUAL FINANCIAL REPORT OF THE CITY OF EULESS, TEXAS 201 NORTH ECTOR DRIVE EULESS, TEXAS 76039 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1984 ISSUED BY THE FINANCE DEPARTMENT JAMES R. HICKERSON DIRECTOR OF FINANCE TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of transmittal FINANCIAL SECTION Report of certified public accountants Combined statements - overview Combined balance sheet - all fund types and account groups 1-2 Combined statement of revenues, expenditures and changes in fund balances - all govern- mental fund types Statement of revenues - budget and actual - General Fund' Statement of expenditures - budget and actual - General Fund Statement of revenues, expenses and changes in unappropriated retained earnings - all proprietary fund types - Water and Sewer Enterprise Fund Statement of changes in financial position - all proprietary fund types - Water and Sewer Enterprise Fund Notes to financial statements ADDITIONAL INFORMATION SECTION Combining and individual fund financial statements Combining balance sheet - Capital Projects Funds Combining statement of revenues, expenditures and changes in fund balances - Capital Projects Funds 3-4 5-6 7 8 9-10 11-22 23 24 Comparative balance sheet - Water and Sewer Enterprise Fund 25 TABLE OF CONTENTS (Continued) ADDITIONAL INFORMATION SECTION (continued) Combining and individual fund financial statements (continued) Comparative schedule of operating expenses Water and Sewer Enterprise Fund Combining balance sheet - All Agency Funds Combining statement of changes in assets and liabilities - All Agency Funds Page 26-27 28 29 Combining balance sheet - Special Revenue Funds 30 Combining statement of revenues, expendi- tures and changes in fund balances - Special Revenue Funds 31 STATISTICAL SECTION Miscellaneous statistical facts 32-33 General government revenue by source 34 General government expenditures by function 35 Property tax rates Property tax levies and collections Assessed and estimated actual value of taxable property Debt service requirements to maturity - General Obligation Bonds Debt service requirements to maturity - Water and Sewer Revenue Bonds Ratio of annual debt service expenditures for general bonded debt to total general expenditures 36 37 38 39 40 41 TABLE OF CONTENTS (Continued) STATISTICAL SECTION (continued), Computation of direct and overlapping debt Water and sewer revenue bond coverage Page 42 43 Ratio of net general bonded debt to assessed value and net bonded debt per capita 44 INTRODUCTORY SECTION wet, ci Mr. W. M. Sustaire City Manager City of Euless Euless, Texas 76039 Dear Mr. Sustaire: "We're Building a Beautiful Tomorrow" The Annual Financial Report of the City of Euless, Texas for the fiscal year ended September 30, 1984 is submitted herewith. System and Reports The City's accounting records for general governmental operations are maintained on a modified accrual basis, with revenue being recorded when earned and expenditures being recorded when incurred except for unmatured interest on general long-term debt, which is recognized when due. Accounting records for the City's Water and Sewer Enterprise Fund are maintained on a full accrual basis. Budgetary control is maintained under an annual budget. General Governmental Functions Revenues for general governmental functions and general debt service totaled $6,870,216 in 1984, an increase of 20.86 percent over 1983. General property taxes produced 41.09 percent of general revenue compared to 45.45 percent last year. The amount of revenue from various sources and the changes over last year are shown 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 Percent Amount of total Increase from 1983 $2,822,779 41.09 $ 239,426 927,634 13.50 75,848 1,217,558 17.72 332,544 601,181 8.75 221,632 265,800 3.87 65,007 356,072 5.18 46,297 402,107 5.85 113,752 277,085 4.04 91,396 L ,87.0,216 100.00 11,185,902 201 N. Ector Drive • Euless, Texas 76039-3595 • 817/283-5381 Metro 267.4403 Mr. W. M. Sustaire Page 2 In addition ferred from transferred to the above general revenue, $115,000 was trans - the Water and Sewer Enterprise Fund and $90,000 from the Special Revenue Fund to the General Fund. Expenditures for general governmental purposes and general debt service totaled $6,674,293 an increase of 31.21 percent over 1983. 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 Percent Increase Amount of total from 1983 $ 905,018 13.56 $ 163,193 3,529,424 52.88 1,082,047 364,058 5.45 40,954 230,918 3.46 37,621 628,836 9.42 154,279 195,000 2.92 30,000 311,439 4.67 50,640 509,600 7.64 28,762 $6,674,293 100.00 $1,587,496 General Obligation Bonds, Series 1984, dated May 1, 1984 total- ing $2,500,000 were issued during the year. Cash Management The City maintains cash accounts on a consolidated basis for investment purposes. These short-term investments consist of certificates of deposit and government securities which are stated at cost. The interest income was recognized by the appropriate fund. General Fixed Assets The general fixed assets of the City are those fixed assets used in the performance of general governmental functions and exclude the fixed assets of the Water and Sewer Enterprise Fund. As of September 30, 1984, the general fixed assets of the City amounted to $23,570,587. This amount represents the original cost of the assets and is considerably less than their replace- ment value. Depreciation of general fixed assets is not recog- nized in the City's accounting system. Mr. W. M. Sustaire Page 3 Water and Sewer System The City's water and sewer utility had a successful year and continued to show gains in gross sales and number of customers. Comparative data for the past two fiscal years are presented in the following table: 1984 1983 Net income $ 948,117 $ 221,039 Add (deduct): Amortization of capitalized water and sewer facility contract rights Depreciation Interest on revenue bonds Transfers to other funds Principal portion of payments on water and sewer facility contracts Net revenue available for debt service Average annual debt service 231,965 458,198 473,668 165,251 231,965 407,834 251,227 259,410 (180,044) (130,589) $2,097,155 $1,240,886 $ 523,718 $ 529,019 Coverage 4.00 times 2.35 times During the year, $165,000 of regularly maturing revenue bonds were retired in the Water and Sewer Enterprise Fund. All reserve and accounting requirements have been met in accor- dance with the ordinances authorizing the issuance of the City's Water and Sewer Revenue Bonds. Independent Audit The City Charter requires an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the City by a certified public accounting firm selected by the City Council. This requirement has been complied with and the auditor's opinion has been included in this report. Mr. W. M. Sustaire Page 4 Acknowledgments The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Finance Department. I should like to express my appreciation to all members of the Department who assisted and contributed to its preparation. I should also like to thank your office and the members of the City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, �yrtu\ l/ art ' L � � Cf �. c7sIZ._-- James R. Nickerson Director of Finance L I FINANCIAL SECTION A Q1_1 A MEMBER OF ARTHUR YOUNG INTERNATIONAL Qn7XMI v©1JE The Honorable Mayor and City Council City of Euless, Texas 2200 Texas American Bank Building Fort Worth, Texas 76102 Telephone: (817) 335-1900 We have examined the combined financial statements of the fund types and account groups of the City of Euless, Texas, at September 30, 1984, and for the year then ended, listed in the foregoing table of contents under the caption "Finan- cial 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 circum- stances. In our opinion, the combined financial statements referred to above present fairly the financial position of the fund types and account groups of the City of Euless, Texas, at September 30, 1984, and the results of operations and the changes in financial position of the Water and Sewer Enterprise Fund for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination has been made primarily for the purpose of expressing an opinion on the combined financial statements, taken as a whole. The combining and individual fund financial statements listed under the caption "Additional Information Section" in the table of contents are presented for purposes of additional analysis and are not a required part of the combined ago l nilid-G VONJHe financial statements. Such information has been subjected to the auditing procedures applied in the examination of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. The statistical infor- mation on pages 32-44 was not examined by us and accordingly, we do not express an opinion on it. a44-1,.,?.-v.7 cf— 4-747 Fort Worth, Texas November 13, 1984 CITY OF EULESS, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1984 ASSETS Cash and short-term investments Receivables: Delinquent taxes, net of allowance for doubtful collections of $174,963 Accounts receivable, net Unbilled water and sewer revenue Due from other funds Due from other governments Inventories, at cost Restricted assets (Notes 2, 3 and 4) General fixed assets (Note 6) Net utility plant in service (Note 6) Capitalized water and sewer facility contract rights less accumulated amortization of $1,476,776 (Note 5) Amount available for retirement of general long-term debt Amount to be provided for retirement of general long-term debt General Governmental fund types Debt Service $2,060,902 $285,142 75,038 183,169 70,925 107,357 1,944 18,759 600 Capital Projects $2,951,742 48,135 87,143 48 ,164 Special Revenue $184,030 59,342 Proprietary fund types Water and Sewer Enterprise $ 970,233 592,290 371,469 3,705,730 16,200,564 16,000,209 Fiduciary fund types Agency $1,582,942 73,097 Account groups General fixed assets 23,570,587 General long-term debt 285,742 Total (memorandum only) $ 8,034,991 93,797 823,594 371,469 291 ,107 155,521 1,944 3,705,730 23,570,587 16,200,564 16,000,209 285,742 7,539,258 7,539,258 $2,499,335 $3042501 $3,135,184 $243,372 $37,840,495 $1,656,039 $23,570,587 $7,825,000 $77,074,513 CITY OF EULESS, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1984 (Continued) LIABILITIES AND FUND EQUITY Liabilities: Accounts payable Accrued salaries and wages Customer deposits Accrued interest Due to other funds Obligations under capitalized water and sewer facility contract rights (Note 5) Bonds payable (Note 3) Deferred revenue Total liabilities Fund equity: Investment in general fixed assets Contributions Fund balances: Reserved: For recreation equipment For inventory Unreserved: Designated for: Equipment replacement Contingency Emergency Undesignated Retained earnings: Appropriated for debt service (Notes 3 and 4) Unappropriated: Designated for equipment Undesignated Total fund equity General Governmental fund types Debt Service $ 55,157 $ 122,992 61,483 75,038 314,670 19,694 1,944 18,759 18,759 Capital Special Projects Revenue 70,925 70,925 184,412 417,510 300,000 1,261,105 285,742 3,135,184 172,447 Proprietary Fiduciary fund types fund types Water and Sewer Enterprise Agency - $ 7,343 24,675 392,532 90,458 71,556 16,401,522 6,330,000 174,073 23,492,159 9,538,291 1,057,465 $ 13,552 $ 78,530 1,476,814 87,143 1,656,039 Account groups General fixed assets 23,570,587 435,519 3,317,061 2,184,665 285,742 3,135,184 172,447 14,348,336 - 23,570,587 $2,499.335 $304.501 $3,135.184 $243.372 $37.840.495 $1,656,039 $23,570,587 See notes to financial statements. General long-term debt 7,825,000 7,825,000 Total (memorandum only) $ 76,052 226,197 1,869,346 90,458 291,107 16,401,522 14,155,000 267,870 33,377,552 23,570,587 9,538,291 19,694 1,944 184,412 417,510 300,000 4,854,478 1,057,465 435,519 3,317,061 - 43,696,961 $7,825,000 $77.074.513 CITY OF EULESS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended September 30, 1984 Revenues: General property tax Gross receipts tax General sales tax Licenses and permits Fines and fees Interest income Federal revenue sharing Intergovernmental Other revenues Total revenues Expenditures: City Council General Government Civil Service Police Department Legal and Corporation Court Fire Department Street Department Traffic safety Planning and development Library Recreation Department Parks Department Swimming pools Civic Center Code enforcement Health and animal shelter Jail fund Nondepartmental Governmental fund types General $2,291,024 927,634 1,217,558 601,181 265,800 356,072 402,107 277,085 6,338,461 16,997 205,583 53,307 1,553,320 86,674 1,242,530 364,058 84,640 145,985 230,918 252,876 336,117 39,843 147,136 133,357 139,251 63,402 509,600 Debt Service $531,755 531,755 Capital Special Projects Revenue 158,238 203,151 30,464 391,853 $ 212,359 79,325 291,684 29,014 Total (memorandum only) $2,822,779 1,139,993 1,217,558 601,181 265,800 514,310 203,151 402,107 386,874 7,553,753 16,997 205,583 53,307 1,553,320 86,674 1,242,530 364,058 84,640 174,999 230,918 252,876 336,117 39,843 147,136 133,357 139,251 63,402 509,600 CITY OF EULESS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended September 30, 1984 (Continued) Expenditures (continued): Debt service: Principal retirement Interest and service charges Capital outlay and maintenance Insurance Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources: Sale of general obligation bonds Net operating transfers in (out) Total other financing Excess of revenues and other financing sources over expenditures Unreserved fund balances, beginning of year Decrease in reserves Unreserved fund balances, end of year sources $ Governmental fund types Debt Capital General Service Projects _ $195,000 $ 311,439 562,260 6,167,854 170,607 213,933 213,933 384,540 1,763,949 14,538 12,1631027 See notes to financial statements. 506,439 25,316 25,316 260,426 557,325 557,325 (165,472) Special Revenue 265,130 294,144 (2,460) 2,500,000 - (144,487) 2,355,513 2,190,041 945,143 95,805 95,805 93,345 79,102 Total (memorandum only) $ 195,000 311,439 1,119,585 265,130 7,525,762 27,991 2,500,000 165,251 2,665,251 2,693,242 3,048,620 14,538 12851742 13,1351184 11721447 1517561400 CITY OF EULESS, TEXAS STATEMENT OF REVENUES - BUDGET AND ACTUAL - GENERAL FUND Year ended September 30, 1984 Actual 5 Variance favorable Budget (unfavorable) General property tax: Current and delinquent taxes $2,248,699 $2,181,040 $ 67,659 Penalty and interest 42,325 20,000 22,325 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 2,291,024 220,115 459,659 143,926 25,471 19,543 58,920 927,634 1,217,558 533,090 29,112 27,830 11,149 601,181 257,864 7,936 265,800 2,201,040 89,984 227,000 (6,885) 420,000 39,659 134,000 9,926 25,000 471 20,000 (457) 65,750 (6,830) 891,750 35,884 800,000 417,558 225,000 308,090 40,000 (10,888) 8,200 19,630 7,500 3,649 280,700 320,481 230,000 27,864 6,500 1,436 236,500 29,300 CITY OF EULESS, TEXAS STATEMENT OF REVENUES - BUDGET AND ACTUAL - GENERAL FUND Year ended September 30, 1984 (Continued) Interest income Intergovernmental Other revenues: Library receipts Tarrant County Library contribution Rental income Miscellaneous income Texas Court cost service fee Swimming pools Total revenues Actual $ 356,072 402,107 9,945 7,089 10,820 231,513 4,147 13,571 277,085 $6,338,461 Budget $ 250,000 233,114 7,500 7,089 9,500 49,500 4,500 15,000 93,089 $4,986,193 See notes to financial statements. 6 Variance favorable (unfavorable) $ 106,072 168,993 2,445 1,320 182,013 (353) (1,429) 183,996 $1,352,268 CITY OF EULESS, TEXAS STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND Year ended September 30, 1984 City Council General Government Civil Service Police Department Legal and Corporation Court Fire Department Street Department Traffic safety Planning and development Library Recreation Department Parks Department Swimming pools Civic Center Code enforcement Health and animal shelter Jail fund Nondepartmental Capital outlay and maintenance Total expenditures Actual $ 16,997 205,583 53,307 1,553,320 86,674 1,242,530 364,058 84,640 145,985 230,918 252,876 336,117 39,843 147,136 133,357 139,251 63,402 509,600 562,260 $6,167,854 7 Variance favorable Budget (unfavorable) $ 17,650 210,835 54,193 1,711,290 94,274 1,316,439 419,768 98,400 199,902 268,165 184,003 374,203 53,745 174,688 125,767 196,873 931,909 $6,432,104 See notes to financial statements. $ 653 5,252 886 157,970 7,600 73,909 55,710 13,760 53,917 37,247 (68,873) 38,086 13,902 27,552 (7,590) 57,622 (63,402) 422,309 (562,260) $ 264,250 CITY OF EULESS, TEXAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN UNAPPROPRIATED RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES - WATER AND SEWER ENTERPRISE FUND Year ended September 30, 1984 Operating revenues: Water service Sewer service Water and sewer tap fees Service fees and miscellaneous Operating expenses excluding depreciation and amortization Operating income excluding deprecia- tion and amortization Amortization of capitalized water and sewer facility contract rights (Note 5) Depreciation Operating income Other revenues - investment income Other expenses: Interest on revenue bonds Interest on obligations under capitalized water and sewer facility contract rights Income before operating transfers Operating transfers to other funds Net income Less increase in appropriated retained earnings Unappropriated retained earnings, beginning of year Unappropriated retained earnings, end of year See notes to financial statements. $231,965 458,198 473,668 8 $2,514,655 1,723,646 192,004 204,592 4,634,897 2,200,722 2,434,175 690,163 1,744,012 562,491 719,467 1,193,135 1,113,368 165,251 948,117 185,368 2,989,831 $3.752,580 CITY OF EULESS, TEXAS STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES - WATER AND SEWER ENTERPRISE FUND Year ended September 30, 1984 Sources of working capital: Net income Add back items not requiring working capital: Depreciation Amortization of capitalized water and sewer facility contract rights Amortization of deferred revenue - Trinity River Authority agreement Total from operations Net book value of utility plant in service disposals Decrease in restricted assets Contributions in aid to construction Increase in obligations under capitalized water and sewer facility contract rights 9 $ 948,117 458,198 231,965 (7,800) 1,630,480 3,941 1,006,502 2,586,596 7,425,675 Total working capital provided 12,653,194 Applications of working capital: Additions to utility plant in service Increase in capitalized water and sewer facility contract rights Reduction in obligations under capitalized water and sewer facility contract rights (Note 5) Reduction in revenue bonds payable Total applications of working capital Decrease in working capital 4,877,621 7,404,040 197,806 250,000 12,729,467 $ 76,273 CITY OF EULESS, TEXAS STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES - WATER AND SEWER ENTERPRISE FUND Year ended September 30, 1984 (Continued) Changes in components of working capital: Increase (decrease) in current assets: Cash and short-term investments Accounts receivable Unbilled water and sewer revenue Accrued interest receivable Increase (decrease) in current liabilities: Accounts payable Customer deposits Accrued interest Due to other funds Current portion of obligations under capitalized water and sewer facility contract rights Current portion of revenue bonds payable 10 $ (120,703) 23,214 138,325 92,318 133,154 (347) 109,665 (1,656) 20,637 (3,872) 85,000 209,427 Decrease in working capital $ 76.273 See notes to financial statements. 11 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF FUNDS The City has established a number of funds, in conformance with generally accepted accounting principles and the recommendations of the National Council on Govern- mental Accounting, for the purpose of accounting for trans- actions in compliance with legal requirements. Funds and account groups in use by the City in accounting for its financial activities are as follows: Governmental Funds General Fund - to account for all of the general revenue of the City not specifically levied or collected for other City funds, and for expenditures related to rendering of general services by the City. Debt Service Fund - to account for the source and disposi- tion of funds for paying interest and principal on general obligation bonds. Capital Projects Funds - to account for the source and disposition of funds for the acquisition of capital facil- ities other than those recorded in the Enterprise Fund. Revenues and expenditures of the federal revenue sharing program are accounted for in this fund. 12 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Special Revenue Fund - to account for special revenue sources that are legally restricted to expenditures for specified purposes. Proprietary Funds Water and Sewer Enterprise Fund - to account for the acquisi- tion, operation and maintenance of a municipal utility, sup- ported primarily by user charges to the public. Fiduciary Funds Agency Funds - to account for assets received and held by the City as agent for individuals, private organizations, other governments, and other funds within the City. Account Groups General Fixed Assets Account Group - to account for property and equipment of the City other than that acquired and accounted for in the Enterprise Fund. General Long-term Debt Account Group - to account for the unmatured principal of outstanding bonds, except those recorded in the Enterprise Fund. 13 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) BASIS OF ACCOUNTING The accrual basis of accounting is utilized for the Enterprise Fund. Governmental Funds are accounted for using the modified accrual basis. Revenues are recognized in the accounting period in which they become available and measur- able. Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt, which is recognized when due. Significant revenues which are not accrued are licenses, permits, fines and fees. Property taxes attach as an enforceable lien on property as of January 1, are levied for appropriation for the fiscal year beginning on October 1, are due October 1, and become delinquent on February 1. Property taxes are accrued based on the period for which they are levied and available. Delinquent taxes 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 14 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) $2.50 per $100 of assessed valuation. The City's current tax rate is $.70 per $100 of assessed valuation and assessed valuation is approximately 100 percent of estimated actual value. The City's annual budget for the General Fund is prepared on the same basis that the City maintains its accounts. INVESTMENTS Investments are stated at cost which approximates market value. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is recorded at cost (or fair value, if contributed) when acquired. General fixed assets are recorded as expenditures in the General Fund and Capital Projects Funds at the time of purchase or construc- tion and are capitalized in the General Fixed Assets Account Group at cost. Costs related to repairs and maintenance are not capitalized. Significant renovations and improvements are capitalized. 15 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) DEPRECIATION No depreciation is recorded on general fixed assets. Depreciation is recorded on each class of depre- ciable property in the Water and Sewer Enterprise Fund utilizing the straight-line method over the following estimated useful lives of the assets: Equipment Water and sewer system 5 - 15 years 33-1/3 years RETIREMENT PLAN The City is a member of the Texas Municipal Retire- ment System which covers all eligible full time employees under a money purchase plan. Eligible employees contribute 7 percent of their salaries and the City matches this contribution on a 2-to-1 ratio. The total pension expense for the year was approximately $304,100 and $59,400 for the General Fund and Water and Sewer Enterprise Fund, respec- tively, which includes amortization (over 25 years) of prior service cost attributable to a target benefit. EMPLOYEES' VACATION AND SICK LEAVE Employees may accumulate a maximum of 20 days of vacation. The City's policy is to pay the employee for 16 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) accumulated vacation upon termination. Accrued vacation pay is insignificant and is not recorded by the City. The City does not pay employees for accumulated sick leave upon termination. RESERVES Certain assets that are not available spendable resources of the City are offset by fund balance reserve accounts. TOTAL COLUMN ON COMBINED STATEMENTS The total columns on combined statements are cap- tioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in the column does not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data com- parable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 2. RESTRICTED ASSETS Restricted assets consist of cash and investments primarily restricted for Water and Sewer Enterprise Fund debt service and water and sewer system replacements. CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 3. BONDS PAYABLE Bonded debt outstanding at September 30, 1984, consists of the following: Range of Outstanding interest balance at Current Long-term rates 9-30-84 maturities maturities General obligation bonds 3.8 to 11.75% $ 7,825,000 $230,000 $ 7,595,000 Water and Sewer Revenue Bonds 4.5 to 10.75% 6,330,000 250,000 6,080,000 $14,155,000 $480,000 $13,675,000 The bonds mature serially through the year 2006 and have various call options whereby they may be redeemed during certain periods prior to maturity. A schedule of bond maturities for the next five years is as follows: General Obligation Water and Sewer Bonds Revenue Bonds Total 1985 $ 777,547 $ 672,923 $ 1,450,470 1986 823,050 661,625 1,484,675 1987 812,558 665,012 1,477,570 1988 802,335 677,300 1,479,635 1989 821,115 661,675 1,482,790 Thereafter 10,034,517 7,659,550 17,694,067 Less interest Principal 14,071,122 6,246,122 $ 7,825,000 10,998,085 4,668,085 $ 6,330,000 25,069,207 10,914,207 $14.155.000 17 18 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 3. BONDS PAYABLE (continued) General obligation bonds authorized and unissued as of September 30, 1984, amounted to $1,230,000. Water and Sewer Revenue Bonds authorized and unissued as of September 30, 1984, amounted to $4,700,000. 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 prin- cipal 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 ser- vice and/or reserve for bond retirement prove deficient, the reserve for emergency shall be used for the purpose of meeting principal and/or interest requirements of the bonds. 19 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 3. BONDS PAYABLE (continued) All requirements for funding of the above reserves were met at September 30, 1984. Investments of funds included in the bond reserve and emergency accounts are restricted to direct obligations of or obligations unconditionally guaranteed by the United States of America having maturities not in excess of ten and five years, respectively. 4. PROPERTY SALE PROCEEDS ACCOUNTS The City of Euless sold certain of the waterworks and sewer system properties situated within the City of Bedford to that city in 1968. The proceeds were equal to 32.33 percent of the $5,800,000 of revenue bonds issued by Euless for the original purchase of the combined system. The property sale proceeds may be applied solely to the 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, 1984, the balance in the property sales proceeds account was $431,398. 20 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 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 40 years to share in the costs of operations, mainte- nance and debt service of the Authority. Payments under these contracts approximated $1,658,000 in 1984. The amounts under the contracts representing debt service have been capitalized and the related obligation recorded on the accompanying balance sheet. Such capitalized amounts increased $7,404,040 in 1984. 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, 1984: CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 5. WATER AND SEWER FACILITY CONTRACT RIGHTS (continued) Year ending September 30: 1985 1986 1987 1988 1989 Thereafter Less amount representing interest Present value of minimum requirements 21 $ 1,552,099 1,622,550 1,649,921 1,659,649 1,683,231 30,840,510 39,007,960 22,606,438 $16,401,522 6. FIXED ASSETS The following is a summary of changes in general fixed assets by source: Balance, beginning of year Add: Expenditures from bond funds Expenditures from current revenue Expenditures from revenue sharing Expenditures from developers' contributions Expenditures from general fund Total additions Land and Total buildings $18,621,156 $2,967,439 501,004 125,588 24,552 3,874,186 517,479 5,042,809 779 779 Improvements other than buildings $13,848,475 501,004 26,542 3,874,186 66,265 4,467,997 Machinery and equipment $1,805,242 98,267 24,552 451,214 574,033 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1984 6. FIXED ASSETS (continued) 22 Improvements Machinery Land and other than and Total buildings buildings equipment Deduct: Disposals of fixed assets $ 93,378 $ - $ - $ 93,378 Balance, end of year $23,570,587 $2,968,218 $18,316,472 $2,285,897, The following is a summary of Water and Sewer Fund utility plant in service at September 30, 1984: Land $ 1,365,252 Equipment 516,693 Water and sewer system 18,218,951 20,100,896 Less accumulated depreciation 3,900,332 $16,200,564 7. SERVICE CENTER The Water and Sewer Enterprise Fund bears the major portion ($243,999) of the operating costs of the City's service center. In 1984, costs of $50,133 were allocated to the General Fund. ADDITIONAL INFORMATION SECTION CITY OF EULESS, TEXAS COMBINING BALANCE SHEET - CAPITAL PROJECTS FUNDS September 30, 1984 ASSETS Cash and short-term investments Accounts receivable, net Due from other funds Due from other governments FUND EQUITY Fund balance Street Improvement and Drainage Fund $2,891,741 48,135 87,143 13,027.019 $3,027.019 Revenue Sharing Fund $ 60,001 48,164 $108,165 23 Total $2,951,742 48,135 87,143 48,164 $3,135.184 $108,165 13,135.184 CITY OF EULESS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - CAPITAL PROJECTS FUNDS Year ended September 30, 1984 Street Improvement Revenue and Drainage Sharing Fund Fund Total 24 Revenues: Federal revenue sharing $ - $ 203,151 $ 203,151 Investment income 154,738 3,500 158,238 Other revenues 30,464 30,464 185,202 206,651 391,853 Expenditures: Capital outlay and maintenance 535,662 21,663 557,325 Excess (deficiency) of revenues over expenditures (350,460) 184,988 (165,472) Other financing sources: Sale of general obli- gation bonds 2,500,000 2,500,000 Net operating transfers in (out) (144,487) (144,487) Total other financing sources 2,500,000 (144,487) 2,355,513 Excess of revenues and other financing sources over expenditures Fund balances, begin- ning of year Fund balances, end of year 2,149,540 40,501 2,190,041 877,479 67,664 945,143 $3,027.019 $ 108,165 U3 135,184 25 CITY OF EULESS, TEXAS COMPARATIVE BALANCE SHEET - WATER AND SEWER ENTERPRISE FUND September 30, 1984 and 1983 ASSETS Current assets: Cash and short-term investments Accounts receivable, less allowance for estimated uncollectible accounts of $1,463 in 1984 and 1983 Unbilled water and sewer revenue Accrued interest receivable Total current assets Restricted assets: Revenue bond debt service: Cash with paying agent Revenue bond retirement: Cash with paying agent Investments with paying agent, at cost Revenue bond emergency: Cash and short-term investments Property sale proceeds account: Investments with paying agent, at cost Capital projects account: Cash and short-term investments Customer deposits: Short-term investments Interest receivable on investments Total restricted assets Utility plant in service, at cost: Land Equipment Water and sewer system Less allowance for depreciation Net utility plant in service Capitalized water and sewer facility contract rights less accumulated amortization of $1,476,776 in 1984 and $1,244,811 in 1983 1984 1983 $ 970,233 $ 1,090,936 392,115 371,469 200,175 1,933,992 53,129 3,890 369,048 200,000 431,398 2,212,651 392,532 43,082 3,705,730 1,365,252 516,693 18,218,951 20,100,896 3,900,332 16,200,564 368,901 233,144 107,857 1,800,838 79,388 17,556 261,191 100,000 413,962 3,545,835 282,861 11,439 4,712,232 1,033,321 389,836 13,819,838 15,242,995 3,457,913 11,785,082 16,000,209 8,828,134 $37,840,495 $27.126,286 LIABILITIES AND FUND EQUITY Current liabilities: Payable from current assets: Accounts payable Due to other funds Current portion of obligations under capitalized water and sewer facility contract rights Current portion of revenue bonds payable Payable from restricted assets: Customer deposits Accrued interest Total current liabilities Obligations under capitalized water and sewer facility contract rights Revenue bonds payable Deferred revenue Total liabilities Fund equity: Contributions: From subdividers From Environmental Protection Agency From Trinity River Authority Total contributions Retained earnings: Appropriated: For revenue bond debt service, next maturing For revenue bond retirement For contingency Total appropriated Unappropriated: Designated for equipment Undesignated Total unappropriated Total fund equity 1984 $ 32,018 $ 71,556 197,806 250,000 392,532 90,458 1,034,370 16,203,716 6,080,000 174,073 23,492,159 9,283,674 239,617 15,000 9,538,291 53,129 372,938 631,398 1,057,465 435,519 3,317,061 3,752,580 14,348,336 1.1718401495 1983 32,365 50,919 201,678 165,000 282,867 92,114 824,943 8,975,847 6,330,000 181,873 16,312,663 6,697,078 239,617 15,000 6,951,695 79,388 278,747 513,962 872,097 292,000 2,697,831 2,989,831 10,813,623 $27.126.286 CITY OF EULESS, TEXAS COMPARATIVE SCHEDULE OF OPERATING EXPENSES - WATER AND SEWER ENTERPRISE FUND Years ended September 30, 1984 and 1983 General and administrative: Salaries and wages Employee benefits Postage and supplies Maintenance of office machinery Contractual services Bad debts Water production: Salaries and wages Employee benefits Operating supplies and expense Maintenance of structures and equipment Water - Trinity River Authority Other Water distribution: Salaries and wages Employee benefits Operating supplies and expense Maintenance of structures and equipment Contractual services Other Sewage collection and treatment: Salaries and wages Employee benefits Operating supplies and expense Maintenance of structures and equipment Contractual services Treatment fees - Trinity River Authority Other 1984 1983 26 $ 112,994 $ 92,365 16,537 16,629 15,822 15,649 15,022 12,608 21,608 19,723 11,277 12,935 193,260 169,909 119,404 106,793 23,906 23,229 3,136 3,100 13,802 31,109 502,932 431,659 14,047 7,448 677,227 603,338 176,302 165,305 36,765 35,874 7,840 7,704 64,871 45,740 596 3,457 660 834 287,034 258,914 186,373 126,049 41,719 29,111 3,708 4,468 7,040 8,245 2,302 1,724 255,408 369,533 1,848 3,823 498,398 542,953 CITY OF EULESS, TEXAS 27 COMPARATIVE SCHEDULE OF OPERATING EXPENSES - WATER AND SEWER ENTERPRISE FUND Years ended September 30, 1984 and 1983 (Continued) 1984 1983 Nondepartmental: Employee benefits $ 1,205 $ 1,412 Operating supplies and expense 268,454 247,564 Contractual services 31,145 28,575 300,804 Service center: Salaries 77,424 Employee benefits 12,293 Motor fuel 60,018 Operating supplies and expense 11,814 Maintenance of structures and equipment 81,824 Other 626 243,999 277,551 60,058 9,961 95,223 16,067 93,426 610 275,345 Total operating expenses, excluding depreciation and interest expense $2.200,722 $2,128,010 CITY OF EULESS, TEXAS COMBINING BALANCE SHEET - ALL AGENCY FUNDS September 30, 1984 ASSETS Cash and short-term investments Due from other funds LIABILITIES Payroll related payables Due to other funds Escrow deposits Social security $18,985 73,097 $92.082 $92,082 $92,082 Developers escrow $1,563,957 $1.563,957 $ 87,143 1,476,814 $1,563,957 28 Total $1,582,942 73,097 $1,656,039 $ 92,082 87,143 1,476,814 $1,656,039 CITY OF EULESS, TEXAS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS Year ended September 30, 1984 SOCIAL SECURITY FUND Assets Cash and short-term investments Due from other funds Liabilities Payroll related payables ESCROW FUND Assets Cash and short-term investments Liabilities Escrow deposits Due to other funds TOTAL ALL AGENCY FUNDS Assets Cash and short-term investments Due from other funds Liabilities Payroll related payables Due to other funds Escrow deposits 29 Balance September 30, 1983 Additions $ 47,231 64,512 $ 111,743 $ 111,743 $1,306,271 $1,306,271 $1,306,271 $1,353,502 64,512 $1,418,014 $ 111,743 1,306,271 $1,418,014 $1,484,164 8,585 Balance Deductions September 30, 1984 $1,512,410 $1,492,749 $1,512,410 $1,492,749 $1,512,410 $6,581,922 $6,324,236 $6,494,779 $6,324,236 87,143 $6,581,922 $6,324,236 $8,066,086 8,585 $8,074,671 $1,492,749 87,143 6,494,779 $8.074,671 $7,836,646 $7,836,646 $1,512,410 6,324,236 $7,836,646 $ 18,985 73,097 $ 92,082 $ 92,082 $1,563,957 $1,476,814 87,143 $1,563,957 $1,582,942 73,097 $1,656,039 $ 92,082 87,143 1,476,814 $1,656,039 CITY OF EULESS, TEXAS COMBINING BALANCE SHEET - SPECIAL REVENUE FUNDS September 30, 1984 ASSETS Cash and short-term investments Due from other funds LIABILITIES AND FUND EQUITY Due to other funds Fund balances Hotel/ motel fund $172,447 Insurance fund $11,583 59,342 $172,447 $70,925 $ - 172,447 30 Total $184,030 59,342 $243,372 $70,925 $ 70,925 172,447 $172,447 $70,925 $243,372 CITY OF EULESS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUNDS Year ended September 30, 1984 Revenues: Gross receipts tax Other revenues Expenditures: Planning and development Insurance claims and fees Hotel/ motel fund Insurance fund Total 31 $212,359 $ - $212,359 79,325 79,325 212,359 79,325 291,684 29,014 - 29,014 265,130 265,130 29,014 265,130 294,144 Excess (deficiency) of rev- enues over expenditures 183,345 (185,805) (2,460) Other financing sources: Net operating transfers in (out) Excess of revenues and other financing sources over expenditures Fund balances, beginning of year Fund balances, end of year (90,000) 185,805 95,805 93,345 93,345 79,102 - 79,102 $172,447 $ - $172,447 STATISTICAL SECTION CITY OF EULESS, TEXAS MISCELLANEOUS STATISTICAL FACTS (Unaudited) Date of incorporation Date of adoption of Charter Form of government: Home Rule, Council -Manager Mayor - elected at large Five council members 32 February 24, 1953 July 21, 1962 Area 16.9 square miles Population: 1960 census 4,236 1970 census 19,316 1980 census 24,000 Building permits issued: Year ended September 30, 1984 Estimated cost 1,139 $113,992,018 Full time City employees: September 30, 1984 205 Police protection: Number of stations 1 Number of certified officers 45 Fire protection: Number of stations 3 Number of certified firefighters 39 Parks and recreation: Number of swimming pools 3 Number of parks 8 Area of parks 122 acres Community buildings 2 Library volumes 40,386 Education: Elementary Schools 6 Junior High Schools 2 High School 1 CITY OF EULESS, TEXAS MISCELLANEOUS STATISTICAL FACTS (Unaudited) (Continued) City Water and Sewer service: Water service: Number of customers at September Maximum daily capacity available Trinity River Authority Maximum daily capacity of City water Total daily capacity Maximum daily consumption Average daily consumption Water Mains Fire hydrants Sewer service: Average daily flow of wastewater Number of customers Sewer mains Streets: Improved State highways City's ten largest taxpayers: Sotogrande Apartment Complex Southwestern Bell Telephone Company Texas Power & Light Company Euless Town Centre Ector Square Apartments Flagship International, Inc. Country Villa K-Mart Store Western Village Apartments Teccor, Inc. 30, 1984 from wells 33 13,805 8,000,000 gallons 4,000,000 gallons 12,000,000 gallons 8,310,000 gallons 3,838,000 gallons 145 miles 543 2,786,000 gallons 13,369 121 miles 116.0 miles 17.2 miles Type of business Apartments Utility Utility Retail Apartments Apartments Apartments Retail Apartments Manufacturer Assessed valuation $21,426,208 10,985,737 8,005,015 5,269,521 4,430,041 3,845,049 3,387,198 3,386,039 2,883,878 2,374,623 $65,993,309, Fiscal year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 CITY OF EULESS, TEXAS GENERAL GOVERNMENT REVENUE BY SOURCE Last ten years (Unaudited) Taxes $1,652,464 1,850,701 2,194,138 2,464,944 2,648,936 2,763,651 3,229,395 3,609,418 4,320,153 4,967,971 Inter- Charges Licenses governmental for and fees revenue services $ 12,568 24,160 56,764 37,039 77,331 119,383 187,263 191,551 379,549 601,181 $131,636 35,556 41,205 118,649 129,516 126,671 206 ,.722 312,553 288,355 402,107 $23,301 31,556 27,583 27,698 23,827 46,512 34,590 37,714 38,254 38,484 34 Miscel- Fines laneous $177,918 193,293 221,650 129,240 151,080 210,772 208,746 259,293 200,793 265,800 $102,820 105,850 136,185 195,110 200,111 291,721 443,065 375,297 457,210 594,673 Fiscal year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 CITY OF EULESS, TEXAS GENERAL GOVERNMENT EXPENDITURES BY FUNCTION Last ten years (Unaudited) General government $251,449 325,532 285,024 458,500 546,750 680,381 739,346 737,311 741,825 905,018 Public safety $ 954,961 1,130,743 1,180,345 1,235,608 1,327,831 1,539,987 1,734,324 2,285,229 2,447,377 3,529,424 Culture - Debt Streets recreation service $159,446 166,229 177,625 201,074 256,149 266,714 255,642 332,829 323,104 364,058 $329,427 373,960 367,944 422,526 453,046 545,733 530,593 644,703 667,854 859,754 $236,558 $ 455,388 346,079 335,448 339,687 430,350 427,658 429,364 425,799 506,439 35 Other* 289,670 325,618 350,478 395,736 418,557 458,351 480,838 509,600 * Beginning in 1977 certain expenditures classified as nondepart- mental have been reported under "other" and were previously allocated or charged directly to the several functions listed above. CITY OF EULESS, TEXAS PROPERTY TAX RATES PER $100 OF ASSESSED VALUE Last ten years (Unaudited) Fiscal year 36 Junior City School County State Hospital college Total 1975 $.85 $1.76 $.86 $.12 $.75 $.40 $4.74 1976 .85 1.80 .95 .12 .65 .40 4.77 1977 .94 1.76 .95 .10 .60 .40 4.75 1978 .94 1.76 .95 .10 .56 .38 4.69 1979 .94 1.76 .95 .10 .56 .36 4.67 1980 .94 1.76 .95 .10 .56 .35 4.66 1981 .70 1.24 .285 .31 .095 2.63 1982 .70 1.24 .204 .168 .048 2.36 1983 .70 1.24 .202 .178 .052 2.37 1984 .70 1.24 .125 .104 .031 2.20 NOTES: (1) General property taxes for cities are limited by the Texas Constitution to $2.50 per $100 of assessed valuation. (2) City general property taxes are due each year on October 1 and become delinquent on February 1 each year. Penalties are assessed on late payments ranging from 1% after February 1 to 8% after July 1. Interest is charged on late payments at the rate of 1/2 of 1% for each month's delinquency. There are no discounts. (3) The City's taxes are collected by the Hurst -Euless -Bedford Independent School District and are distributed to the City as collected. 37 Fiscal year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 CITY OF EULESS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS Last ten years (Unaudited) Total tax levy $1,237,576 1,285,139 1,604,752 1,630,303 1,670,397 1,683,564 1,966,178 2,133,114 2,597,676 2,808,055 Current tax collections $1,136,105 1,179,161 1,456,507 1,507,458 1,583,829 1,598,304 1,889,920 2,045,992 2,543,591 2,745,623 Percent of levy collected 91.80% 91.75 90.76 92.46 94.82 94.94 96.12 95.92 97.92 97.78 Delinquent tax collections $51,805 97,107 48,244 90,383 171,253 93,789 101,408 71,417 39,762 77,156 Total tax collections $1,187,910 1,276,268 1,504,751 1,597,841 1,755,082 1,692,093 1,991,328 2,117,409 2,583,353 2,822,779 Percent of total tax collections to tax levy 95.99% 99 .31 93.77 98.01 104.70 100.51 101.28 99.26 99.45 100.52 Outstanding delinquent taxes at year end $190,509 188,043 283,394 306,769 222,084 213,555 188,405 202,081 246,369 268,760 Percent of delinquent taxes to tax levy 15.39% 14.63 17.66 18.82 13.30 12.68 9.58 9.47 9.48 9.57 CITY OF EULESS, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last ten years (Unaudited) Fiscal year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 Real property Assessed value $131,038,410 133,439,320 152,478,400 149,618,690 153,414,790 158,125,200 248,902,180 265,109,240 332,750,708 343,084,060 Estimated actual value $201,597,554 205,291,262 234,582,154 230,182,600 236,022,754 243,269,538 248,902,180 265,109,240 332,750,708 343,084,060 Personal Assessed value $14,556,950 17,751,780 18,239,900 22,275,660 24,286,990 20,977,300 31,980,350 39,621,390 57,430,322 58,805,741 property Estimated actual value $22,395,308 27,310,430 28,061,384 34,270,246 37,364,600 32,272,769 31,980,350 39,621,390 57,430,322 58,805,741 38 Total Ratio of total assessed Assessed Estimated to total estimated value actual value actual value $145,595,360 151,191,100 170,718,300 171,894,350 177,701,780 179,102,500 280,882,530 304,730,630 390,181,030 401,889,801 $223,992,862 232,601,692 262,643,538 264,452,846 273,387,354 275,542,307 280,882,530 304,730,630 390,181,030 401,889,801 65% 65 65 65 65 65 100 100 100 100 Fiscal year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 CITY OF EULESS, TEXAS DEBT SERVICE REQUIREMENTS TO MATURITY - GENERAL OBLIGATION BONDS (Unaudited) Principal $ 230,000 290,000 300,000 310,000 350,000 355,000 370,000 395,000 425,000 460,000 490,000 525,000 565,000 495,000 445,000 370,000 300,000 300,000 330,000 355,000 80,000 85,000 $7,825,000 Interest $ 547,547 533,050 512,558 492,335 471,115 446,150 421,758 398,048 372,865 344,742 314,885 282,075 246,935 211,515 175,535 144,255 119,025 93,600 67,613 38,892 7,672 3,952 $61,246,122 39 Total $ 777,547 823,050 812,558 802,335 821,115 801,150 791,758 793,048 797,865 804,742 804,885 807,075 811,935 706,515 620,535 514,255 419,025 393,600 397,613 393,892 87,672 88,952 $14,071.122 Fiscal year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 CITY OF EULESS, TEXAS DEBT SERVICE REQUIREMENTS TO MATURITY - WATER AND SEWER REVENUE BONDS (Unaudited) Principal $ 250,000 255,000 275,000 305,000 310,000 320,000 290,000 260,000 270,000 285,000 305,000 335,000 345,000 375,000 370,000 410,000 445,000 490,000 190,000 120,000 125,000 Interest $ 422,923 406,625 390,012 372,300 351,675 331,225 312,825 293,900 277,700 259,925 237,350 216,625 193,350 169,425 142,875 114,975 85,275 52,875 19,575 11,025 5,625 40 Total $ 672,923 661,625 665,012 677,300 661,675 651,225 602,825 553,900 547,700 544,925 542,350 551,625 538,350 544,425 512,875 524,975 530,275 542,875 209,575 131,025 130,625 $6,330,000 $4,668.085 $10.998.085 CITY OF EULESS, TEXAS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last ten years (Unaudited) Fiscal year Principal 1975 $ 70,000 1976 220,000 1977 105,000 1978 110,000 1979 110,000 1980 140,000 1981 145,000 1982 155,000 1983 165,000 1984 195,000 Interest $166,558 235,388 241,079 235,448 229,687 290,350 282,658 274,364 260,799 311,439 Total debt service $236,558 455,388 346,079 345,448 339,687 430,350 427,658 429,364 425,799 506,439 Total general expenditures $1,695,283 1,996,464 2,300,608 2,988,774 3,273,938 3,858,901 4,106,120 4,887,787 5,086,797 6,674,293 41 Ratio of debt service to general expenditures (percent) 13.95% 22.81 15.04 11.56 10.38 11.15 10.42 8.78 8.37 7.59 CITY OF EULESS, TEXAS COMPUTATION OF DIRECT AND OVERLAPPING DEBT September 30, 1984 (Unaudited) Jurisdiction City of Euless Grapevine Independent School District Hurst -Euless -Bedford Independent School District Tarrant County Tarrant County Junior College District Total direct and overlapping debt Net debt outstanding $ 7,539,859 11,532,000 28,331,000 16,815,563 6,170,608 Percent applicable to City of Euless 100.00 9.04 25.64 5.04 5.04 42 Amount applicable to City of Euless $ 7,539,859 1,042,492 7,264,068 847,504 310,998 $17,0041921 CITY OF EULESS, TEXAS WATER AND SEWER REVENUE BOND COVERAGE Last Two Years (Unaudited) Net accrual revenue: Operating revenue Investment income Operating expenses excluding depreciation and amortization: Contract charges by Trinity River Authority for water and sewer facility: Operations and maintenance Debt service Other Net accrual revenue available for debt service Reconciliation to net income: Net income Add (deduct): Amortization of water and sewer facility contracts Depreciation Interest on revenue bonds Transfers to other funds Principal portion of payments on water and sewer facility contracts Net accrual revenue available for debt service Annual debt service on outstanding bonds: Maximum any year Average all years Revenue bond coverage: Maximum (times debt service) Average (times debt service) 1984 $4,634,897 562,491 5,197,388 758,340 899,511 1,442,382 3,100,233 43 1983 $3,811,697 326,959 4,138,656 801,193 769,760 1,326,817 2,897,770 $2,097,155 $1,240,886 $ 948,117 $ 221,039 231,965 231,965 458,198 407,834 473,668 251,227 165,251 259,410 (180,044) (130,589) $2,097,155 $1,240,886 $ 677,300 $ 677,300 523,718 529,019 3.10 4.00 1.83 2.35 44 CITY OF EULESS, TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE Fiscal year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 AND NET BONDED DEBT PER CAPITA Last ten years (Unaudited) Population* 21,500 21,900 22,450 22,900 23,450 24,000 26,250 26,100 28,200 32,500 Assessed value $145,595,360 151,191,100 170,718,300 171,894,350 177,701,780 179,102,500 280,882,530 304,730,630 390,181,030 401,889,801 Gross bonded debt $3,555,000 4,735,000 4,630,000 4,520,000 5,510,000 5,370,000 5,225,000 5,070,000 5,520,000 7,825,000 Less debt service funds $237,135 136,255 143,138 170,049 201,177 156,522 173,872 171,395 235,147 285,142 Net bonded debt $3,317,865 4,598,745 4,486,862 4,349,951 5,308,823 5,213,478 5,051,128 4,898,605 5,284,853 7,539,858 Ratio of assessed value to net bonded debt 43.88 32.88 38.05 39.52 33.47 34.35 55.61 62.21 73.83 53.30 * Estimates by North Central Texas Council of Governments as adjusted for 1980 census data. Net bonded debt per capita $154.32 209.99 199.86 189.95 226.39 217.23 192.42 187.68 187.41 232.00