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FY 1985 Annual Financial Report - Audit
"We're Building a Beautiful Tomorrow" • tier utte/JJ _ *** OFFICIAL COPY *** ANNUAL FINANCIAL REPORT OF THE CITY OF EULESS, TEXAS 201 NORTH ECTOR DRIVE EULESS, TEXAS 76039 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1985 ISSUED BY THE FINANCIAL DEPARTMENT JAMES R. HICKERSON DIRECTOR OF FINANCE DO NOT REMOVE FROM CITY SECRETARY RECORDS L-JL-1 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 combined financial statements, by fund types and account groups, of the City of Euless, Texas, for the year ended September 30, 1985, and have issued our report thereon dated November 15, 1985. As part of our examination, we made a study and evaluation of the City's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial and compliance audits contained in the U.S. General Accounting Office "Standards for Audit of Governmental Organizations, Programs, Activities and Functions". For the purpose of this report, we have classified the signifi- cant internal accounting controls in the categories of: (1) purchasing, accounts payable and cash disbursements system; (2) payroll system; and (3) cash receipts, revenues and accounts receivable system. Our study and evaluation included all of the control categories listed above. The purpose of our study and evaluation was to establish the level of our reliance on the internal control system in determining the nature, timing and extent of the auditing procedures necessary to enable us to express an opinion on the City's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control of the City of Euless, Texas, taken as a whole. Accordingly, we do not express such an opinion. Because of its limited nature, our study and evaluation would not necessarily disclose all material weaknesses or other conditions requiring attention in the system of internal accounting control. Our study and evaluation disclosed no condition that we believe to be a material weakness. The management of the City of Euless, Texas, is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not aka Arthur Young The Honorable Mayor and City Council Page 2 absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are exe- cuted in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that pro- cedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deterio- rate. This report is intended solely for the use of the City of Euless, Texas, the cognizant audit agency and other federal audit agencies and should not be used for any other purpose. ,p0.-1-t^7 November 15, 1985 ® 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 combined financial statements, by fund types and account groups, of the City of Euless, Texas, for the year ended September 30, 1985, and have issued our report thereon dated November 15, 1985. Our examination was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the U.S. Comptroller General's "Standards for Audit of Governmental Organizations, Programs, Activities and Functions", and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In connection with our examination, we also (1) performed tests of compliance with the Revenue Sharing Act and regulations as detailed in the Commentary on the Audit Requirements of the Local Government Fiscal Assistance Amendments of 1983 issued by the Office of Revenue Sharing, U.S. Department of the Treasury, and (2) compared the data on the appropriate Bureau of Census form with the audited records of the City of Euless, Texas. In our opinion, for the items tested, the City of Euless, Texas, complied with the aforementioned provisions of the Revenue Sharing Act and regulations. Further, based on our examination and the procedures referred to above, nothing came to our attention to indicate that the City of Euless, Texas had not complied with the aforementioned provisions of the Revenue Sharing Act and regulations. This report is intended solely for the use of the City of Euless, Texas, the cognizant audit agency and other federal audit agencies and should not be used for any other purpose. November 15, 1985 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of transmittal FINANCIAL SECTION Report of certified public accountants Combined statements - overview Combined balance sheet - all fund types and account groups 1-2 Combined statement of revenues, expenditures and changes in fund balances - all govern- mental fund types Statement of revenues - budget and actual - General Fund Statement of expenditures - budget and actual - General Fund Statement of revenues, expenses and changes in unappropriated retained earnings - all proprietary fund types - Water and Sewer Enterprise Fund 3-4 5-6 7 8 Statement of changes in financial position all proprietary fund types - Water and Sewer Enterprise Fund 9-10 Notes to financial statements 11-23 ADDITIONAL INFORMATION SECTION Combining and individual fund financial statements Combining balance sheet - Capital Projects Funds 24 Combining statement of revenues, expenditures and changes in fund balances - Capital Projects Funds 25 TABLE OF CONTENTS Page ADDITIONAL INFORMATION SECTION (continued) Combining and individual fund financial statements (continued) Combining balance sheet - Special Revenue Funds 26 Combining statement of revenues, expenditures and changes in fund balances - Special Revenue Funds 27 Comparative balance sheet - Water and Sewer Enterprise Fund 28 Comparative schedule of operating expenses Water and Sewer Enterprise Fund 29-30 Combining balance sheet - All Agency Funds 31 Combining statement of changes in assets and liabilities - All Agency Funds 32 STATISTICAL SECTION Miscellaneous statistical facts General government revenue by source General government expenditures by function Property tax rates 37 Property tax levies and collections 38 Assessed and estimated actual value of taxable property 39 Debt service requirements to maturity - General Obligation Bonds 40 Debt service requirements to maturity - Water and Sewer Revenue Bonds 41 33-34 35 36 TABLE OF CONTENTS Page STATISTICAL SECTION (continued) Ratio of annual debt service expenditures for general bonded debt to total general expenditures 42 Computation of direct and overlapping debt 43 Water and sewer revenue bond coverage 44 Ratio of net general bonded debt to assessed value and net bonded debt per capita 45 INTRODUCTORY SECTION PHONE (817) 283-5381 • 201 N. ECTOR DRIVE • EULESS, TEXAS 76039 uteJJIOW Mr. W. M. Sustaire City Manager City of Euless Euless, Texas 76039 Dear Mr. Sustaire: The Annual Financial Report of the City of Euless, Texas for the fiscal year ended September 30, 1985 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 $7,964,685 in 1985, an increase of 15.93 percent over 1984. General property taxes produced 41.56 percent of general revenue compared to 41.09 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 Amount $3,309,771 1,048,790 1,543,777 429,929 356,381 434,876 521,896 319,265 $7 , 964 , 685 Percent of total 41.56 13.17 19.38 5 .40 4.47 5 .46 6.55 4.01 100.00 Increase (decrease) from 1984 $ 486,992 121,156 326,219 (171,252) 90,581 78,804 119,789 42,180 $1,094,469 rOF fU�Fs P EULESS M B CHOICE, YOUR OPPOl2TUNITy couN Mr. W. M. Sustaire Page 2 In addition to the above from the Water and Sewer from the Special Revenue general revenue, $265,000 was transferred Enterprise Fund and $120,000 transferred Fund to the General Fund. Expenditures for general governmental purposes and general debt service totaled $7,746,396 an increase of 16.06 percent over 1984. 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 $1,060,047 3,963,322 401,902 266,006 681,584 230,000 550,540 592,995 $7,746,396 Percent of total 13.68 51.16 5.19 3.43 8.80 2.97 7.11 7.66 100.00 Increase from 1984 $ 155,029 433,898 37,844 35,088 52,748 35,000 239,101 83,395 $1,072,103 General Obligation Bonds, Series 1985, dated May 15, 1985 totaling $1,500,000 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, 1985, the general fixed assets of the City amounted to $28,031,637. This amount represents the original cost of the assets and is considerably less than their replacement value. Depreciation of general fixed assets is not recognized in the City's accounting system. Mr. W. M. Sustaire Page 3 Water and Sewer System The City's water and sewer utility had a successful year and continued to show gains in gross revenues and number of customers. Comparative data for the past two fiscal years are presented in the following table: 1985 1984 Net income $1,318,996 $ 948,117 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 408,236 231,965 607,398 458,198 419,437 473,668 352,911 165,251 _(197,806) (180,044) $2,909172 $2,097,155 Average annual debt service $ 516,258 $ 523,718 Coverage 5.64 times 4.00 times During the year, $250,000 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, tc'n4 fin 'James R. Hickerson Director of Finance FINANCIAL SECTION QLX A MEMBER OF ARTHUR YOUNG INTERNATIONAL Qn4xMa ©iJLa 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, by fund types and account groups, of the City of Euless, Texas, at September 30, 1985, and for the year then ended, listed in the foregoing table of contents under the caption "Financial Section." Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the combined financial statements referred to above present fairly the financial position of the fund types and account groups of the City of Euless, Texas, at September 30, 1985, the results of operations for the year then ended and the changes in financial position of the Water and Sewer Enterprise Fund for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. 0ur 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 00o Q 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 state- ments taken as a whole. The statistical information on pages 33-45 was not examined by us and accordingly, we do not express an opinion on it. 4-,2d,,, r-7 '‘"?‘z-/-7 Fort Worth, Texas November 15, 1985 CITY OF EULESS, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1985 ASSETS Cash and short• -term investments Receivables: Delinquent taxes, net of allowance for doubtful collections of $167,868 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 contract rights amortization of and sewer facility less accumulated $1,885,012 (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 Capital Projects Special Revenue $2,706,780 $348,633 $3,236,031 $127,260 66,815 189,574 53,838 97,794 3,285 22,272 55,418 216,376 122,279 45,214 Proprietary fund types Water and Sewer Enterprise Agency $ 1,281,375 638,478 417,999 4,865,037 17,400,125 15,062,492 Fiduciary fund types $1,701,204 94,305 Account groups General General fixed long-term assets debt 28,031,637 Total (memorandum only) $ 9,401,283 89,087 883,470 417,999 486,798 143,008 3,285 4,865,037 28,031,637 17,400, 125 15,062,492 335,796 335,796 8,759,204 8,759,204 $3,118,086 $370,905 $3,553,039 $249,539 $39,665,506 $1,795,509 $28,031,637 $9,095,000 $85,879,221 2 CITY OF EULESS, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1985 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 (Notes 3 and 8) Deferred revenue Total liabilities Fund equity: Investment in general fixed assets Contributions Fund balances: Reserved: For recreation equipment For inventory For beautification 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 See notes to financial General Governmental fund types Debt Service $ 120,744 $ 157,002 89,986 12,837 66,815 434,547 8,790 3,285 4,258 22,272 35,109 Capital Projects Special Revenue 41,000 41,000 216,017 684,743 500,000 1,266,446 335,796 3,553,039 208,539 Proprietary fund types Water and Sewer Enterprise Agency - $ 3,376 23,849 431,073 86,972 126,599 15,674,236 6,080,000 166,273 22,592,378 10,944,087 2,211,685 544,522 3,372,834 2,683,539 335,796 3,553,039 _208,539 17,073,128 $3,118,086 $370,905 $3,553,039 $249,539 $39,665,506 statements. Fiduciary fund types $ 176,991 1,402,142 216,376 1,795,509 Account General fixed assets 28,031,637 - 28,031,637 $1,795,509 $28,031,637 groups General long-term debt 9,095,000 9,095,000 Total (memorandum only) $ 301,111 180,851 1,833,215 86,972 486,798 15,674,236 15,175,000 255,360 33,993,543 - 28,031,637 10,944,087 $9,095,000 8,790 3,285 4,258 216,017 684,743 500,000 5,363,820 2,211,685 544,522 3,372,834 51,885,678 $85,879,221 CITY OF EULESS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended September 30, 1985 Revenues: General property tax Gross receipts tax General sales tax Licenses and permits Fines and fees Interest income Federal revenue sharing Intergovernmental Other revenues Total revenues Expenditures: City Council General Government Civil Service Police Department Legal and Corporation Court Fire Department Street Department Traffic safety Planning and development Library Recreation Department Swimming pools Civic Center Code enforcement Health and animal shelter Jail fund Nondepartmental Parks department Governmental fund types Debt Capital General Service Projects $2,496,720 $813,051 1,048,790 1,543,777 429,929 356,381 434,876 521,896 301,722 7,134,091 14,076 239,015 76,555 1,842,895 114,560 1,494,834 401,902 91,888 129,142 266,006 259,405 41,681 201,369 171,799 103,767 124,324 592,995 380,498 136,516 182,311 17,543 42,253 830,594 361,080 37,099 Special Revenue 199,737 102,005 301,742 43,525 Total (memorandum only) $3,309,771 1,248,527 1,543,777 429,929 356,381 571,392 182,311 521,896 463,523 8,627,507 14,076 239,015 76,555 1,842,895 114,560 1,494,834 401,902 91,888 172,667 266,006 259,405 41,681 201,369 171,799 103,767 124,324 630,094 380,498 CITY OF EULESS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended September 30, 1985 (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 General Governmental fund types Debt Capital Service Projects $ - $230,000 $ 550,540 419,145 6,965,856 168,235 330,639 330,639 498,874 2,163,027 5,305 780,540 50,054 50,054 285,742 3,135,184 1,220,865 1,257,964 Special Revenue 7,120 422,538 473,183 Total (memorandum only) $ 230,000 550,540 1,647,130 422,538 9,477,543 (896,884) (171,441) (850,036) 1,500,000 (185,261) 1,314,739 207,533 207,533 417,855 36,092 172,447 1,500,000 352,911 1,852,911 1,002,875 5,756,400 5,305 $2,667,206 $335,796 $3,553,039 $ 208,539 $6,764,580 See notes to financial statements. 5 CITY OF EULESS, TEXAS STATEMENT OF REVENUES - BUDGET AND ACTUAL - GENERAL FUND Year ended September 30, 1985 Variance favorable Actual Budget (unfavorable) General property tax: Current and delinquent taxes $2,478,836 $2,328,534 $ 150,302 Penalty and interest 17,884 20,000 (2,116) 2,496,720 2,348,534 148,186 Gross receipts tax: Southwestern Bell Telephone Company 217,016 180,000 37,016 Texas Power and Light Company 551,968 465,000 86,968 Lone Star Gas Company 155,658 150,000 5,658 Cable TV 31,669 27,500 4,169 Tarrant County Waste Disposal 22,342 20,000 2,342 Others 70,137 66,000 4,137 1,048,790 908,500 140,290 General sales tax 1,543,777 1,050,000 493,777 Licenses and permits: Building permits 252,576 415,000 (162,424) Street inspections 85,722 40,000 45,722 Miscellaneous permits 80,642 19,000 61,642 Electric licenses 10,989 10,000 989 429,929 484,000 (54,071) Fines and fees: Corporation Court fines 345,324 240,000 105,324 Dog pound fees 11,057 15,000 (3,943) 356,381 255,000 101,381 6 CITY OF EULESS, TEXAS STATEMENT OF REVENUES - BUDGET AND ACTUAL - GENERAL FUND Year ended September 30, 1985 (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 $ 434,876 521,896 11,558 18,385 250,321 7,104 14,354 301,722 $7,134,091 Budget $ 200,000 378,800 16,500 5,500 12,000 62,000 4,000 15,000 115,000 $5,739,834 See notes to financial statements. Variance favorable (unfavorable) $ 234,876 143,096 (4,942) (5,500) 6,385 188,321 3,104 (646) 186,722 $1,394,257 CITY OF EULESS, TEXAS STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND Year ended September 30, 1985 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 $ 14,076 239,015 76,555 1,842,895 114,560 1,494,834 401,902 91,888 129,142 266,006 259,405 380,498 41,681 201,369 171,799 103,767 124,324 592,995 419,145 Budget $ 16,700 280,017 79,316 1,951,658 130,220 1,594,135 417,291 97,899 147,989 302,101 183,919 420,474 45,986 180,767 192,676 116,200 1,364,148 $6,965 ,856 $7,5 1 496 See notes to financial statements. 7 Variance favorable (unfavorable) $ 2,624 41,002 2,761 108,763 15,660 99,301 15,389 6,011 18,847 36,095 (75,486) 39,976 4,305 (20,602) 20,877 12,433 (124,324) 771,153 (419,145) $ 555 , 640 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, 1985 Operating revenues: Water service Sewer service Water and sewer tap fees Service fees and miscellaneous Operating expenses excluding depreciation and amortization Operating income excluding depreciation and amortization Amortization of capitalized water and sewer facility contract rights (Note 5) Depreciation Operating income Other revenues - investment income Gain on sale of land 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 $ 408,236 607,398 419,437 1,306,546 See notes to financial statements. 8 $2,765,501 1,888,940 174,116 385,872 5,214,429 2,187,593 3,026,836 1,015,634 2,011,202 605,701 780,987 1,725,983 1,671,907 352,911 1,318,996 1,154,220 3,752,580 $3,917,356 CITY OF EULESS, TEXAS STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES - WATER AND SEWER ENTERPRISE FUND Year ended September 30, 1985 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 Contributions in aid to construction Decrease in capitalized water and sewer facility contract rights Total working capital provided Applications of working capital: Additions to utility plant in service Reduction in obligations under capitalized water and sewer facility contract rights (Note 5) Reduction in revenue bonds payable Increase in restricted assets Total applications of working capital 9 $1,318,996 607,398 408,236 (7,800) 2,326,830 155,665 1,405,796 529,481 4,417,772 1,962,624 752,550 255,000 1,159,307 4,129,481 Increase in working capital $ 288,291 10 CITY OF EULESS, TEXAS STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES - WATER AND SEWER ENTERPRISE FUND Year ended September 30, 1985 (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 Increase in working capital See notes to financial statements. $ 311,142 42,656 46,530 3,532 403,860 (4,793) 38,541 (3,486) 55,043 25,264 5,000 115,569 288,291 11 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF FUNDS The City has established a number of funds, in conformance with generally accepted accounting principles and the recommendations of the National Council on Governmental Accounting, for the purpose of accounting for transactions 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 disposition of funds for paying interest and principal on general obliga- tion bonds. Capital Projects Funds - to account for the source and dispo- sition of funds for the acquisition of capital facilities other than those recorded in the Enterprise Fund. Revenues and expenditures of the federal revenue sharing program are accounted for in this fund. 12 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 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 acqui- sition, operation and maintenance of a municipal utility, supported primarily by user charges to the public. Fiduciary Funds Agency Funds - to account for assets received and held by the City as agent for individuals, private organizations, other governments, and other funds within the City. Account Groups General Fixed Assets Account Group - to account for property and equipment of the City other than that acquired and accounted for in the Water and Sewer Enterprise Fund. General Long-term Debt Account Group - to account for the unmatured principal of outstanding bonds, except those recorded in the Water and Sewer Enterprise Fund. 13 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) BASIS OF ACCOUNTING The accrual basis of accounting is utilized for the Water and Sewer 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, 1985 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) $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. 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, Capital Projects Funds and Special Revenue Funds at the time of purchase or construction and are capitalized in the General Fixed Assets Account Group at cost. 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, 1985 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 5 - 15 years Water and sewer system 33-1/3 years RETIREMENT PLAN The City is a member of the Texas Municipal Retirement System which covers all eligible full time employees under a money purchase plan. Eligible employees contribute 7 percent of their salaries and the City contributes 9.46%. The total pension expense for the year was approximately $300,836 and $48,973 for the General Fund and Water and Sewer Enterprise Fund, respectively, which includes amortization (over 25 years) of prior service cost attributable to a target benefit. EMPLOYEES' VACATION AND SICK LEAVE Employees may accumulate a maximum of 20 days of vacation. The City's policy is to pay the employee for 16 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 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 captioned 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 comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 2. RESTRICTED ASSETS Restricted assets consist of cash and investments primarily restricted for Water and Sewer Enterprise Fund debt service and water and sewer system replacements. 17 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 3. BONDS PAYABLE Bonded debt outstanding at September 30, 1985, consists of the following: General obligation bonds Water and Sewer Range of interest rates Outstanding balance at Current Long-term 9-30-85 maturities maturities 3.8 to 11.75% $ 9,095,000 $290,000 $ 8,805,000 Revenue Bonds 4.5 to 10.75% 6,080,000 255,000 5,825,000 $15,175,000 $545,000 $14,630,000 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: 1986 1987 1988 1989 1990 Thereafter Less interest Principal General Obligation Bonds (Note 8) $ 960,340 974,848 966,875 982,355 964,090 11,871,328 16,719,836 7,624,836 $ 9,095,000 Water and Sewer Revenue Bonds $ 661,625 665,012 677,300 661,675 651,225 7,008,325 10,325,162 4,245,162 $ 6,080,000 Total $ 1,621,965 1,639,860 1,644,175 1,644,030 1,615,315 18,879,653 27,044,998 11,869,998 $15,175!000 18 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 3. BONDS PAYABLE (continued) General obligation bonds authorized and unissued as of September 30, 1985, amounted to $3,230,000. Water and Sewer Revenue Bonds authorized and unissued as of September 30, 1985, amounted to $1,200,000. Water and Sewer Revenue Bonds are payable solely from and equally secured by a first lien on and pledge of the net revenue of the City's combined waterworks and sanitary sewer system. In accordance with the revenue bond ordinances, the following special reserves were established: Reserve for revenue bond debt service - to be used for retirement of the current portion of principal and interest payments due. Reserve for revenue bond retirement - to be used for payment of principal and interest on bonds at any time where there is not sufficient money available in the revenue bond debt service fund. No payments are required into this fund after accumulating therein an amount equal to the average annual principal and interest requirements of the bonds outstanding. Reserve for emergency - to be used for payment of extraordinary repairs or replacements to the system necessitated by an emergency for which no other funds are available. Should the reserve for bond debt service and/or reserve for bond retirement prove deficient, the reserve for emergency shall be used for the purpose of meeting principal and/or interest requirements of the bonds. 19 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 3. BONDS PAYABLE (continued) All requirements for funding of the above reserves were met at September 30, 1985. Investments of funds included in the bond reserve and emergency accounts are restricted to direct obligations of or obligations unconditionally guaranteed by the United States of America having maturities not in excess of ten and five years, respectively. 4. PROPERTY SALE PROCEEDS ACCOUNTS The City of Euless sold certain of the waterworks and sanitary sewer system properties situated within the City of Bedford to that city in 1968. The proceeds were equal to 32.33 percent of the $5,800,000 of revenue bonds issued by Euless for the original purchase of the combined system. The property sale proceeds may be applied solely to the prepay- ment or prior redemption of the revenue bonds and investment income of the funds may be applied to current revenue bond interest in an amount not to exceed 32.33 percent of the requirement on the amount of bonds then outstanding. As of September 30, 1985, the balance in the property sales proceeds account was $431,398 and is included in restricted assets in the accompanying balance sheet. 20 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 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 39 years to share in the costs of operations, maintenance and debt service of the Authority. Payments under these con- tracts approximated $1,914,000 in 1985. 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, 1985: 21 5. WATER AND CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 SEWER FACILITY CONTRACT RIGHTS (continued) Year ending September 30: 1986 $ 1,570,461 1987 1,595,499 1988 1,605,440 1989 1,626,903 1990 1,648,666 Thereafter 27,974,647 36,021,616 20,347,380 Less amount representing interest Present value of minimum requirements $15,674.236 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 revenue sharing Expenditures from developers' contributions Expenditures from general fund Expenditures from special revenue Total additions Deduct: Disposals of fixed assets Balance, end of year Total $23,570,587 1,207,009 13,856 2,891,782 419,145 7,120 4,538,912 Improvements Land and other than buildings buildings $2,968,218 $18,316,472 1,207,009 2,891,782 796 151,521 796 4,250,312 Machinery and equipment $2,285,897 13,856 266,828 7,120 287,804 77 862 77,862 $28,031,637 $2,969,014 $22,566,784 $2,495,839 22 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 6. FIXED ASSETS (continued) The following is a summary of Water and Sewer Fund utility plant in service at September 30, 1985: Land $ 1,215,252 Equipment 640,352 Waterworks and sanitary sewer system 20,043,949 Less accumulated depreciation 21,899,553 4,499,428 $17,400,125 7. SERVICE CENTER The Water and Sewer Enterprise Fund bears the major portion ($263,560) of the operating costs of the City's service center. In 1985, costs of $68,450 were allocated to the General Fund. 8. SUBSEQUENT EVENT On November 15, 1985, the City refunded its $9,095,000 of general obligation bonds by the payment of approximately $852,000 and the net proceeds from issuance of new bonds (Series 1985-A) in the amount of $7,896,586 to an escrow fund to defease the old bonds. Interest rates on the new bonds range from 6.25 percent to 9.2 percent. The new schedule of general obligation bond maturities for the next five years is as follows: 23 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 1985 8. SUBSEQUENT EVENT (continued) 1986 $ - 1987 1,008,963 1988 959,457 1989 966,626 1990 950,507 Thereafter 11,151,605 Less interest 15,037,158 7,140,572 Principal $ 7,896,586 ADDITIONAL INFORMATION CITY OF EULESS, TEXAS COMBINING BALANCE SHEET - CAPITAL PROJECTS FUNDS September 30, 1985 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 $3,192,386 55,418 216,376 Revenue Sharing Fund Total 24 $43,645 $3,236,031 55,418 216,376 45,214 45,214 $3,464,180 $ 88,859 $3,553,039 $3� 464,180 $88,859 $3t553,039 25 CITY OF EULESS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - CAPITAL PROJECTS FUNDS Year ended September 30, 1985 Revenues: Federal revenue sharing Investment income Other revenues Expenditures: Nondepartmental Capital outlay and maintenence Excess (deficiency) of revenues over expenditures Other financial sources: Sale of general obligation bonds Net operating transfers in (out) Total other financing sources Excess (deficiency) of revenues and other financing sources over expenditures Fund balances, beginning of year Street Improvement and Drainage Fund Revenue Sharing Fund Total $ - $ 182,311 $ 182,311 136,516 136,516 42,253 42,253 178,769 34,599 1,207,009 1,241,608 (1,062,839) 1,500,000 182,311 361,080 2,500 37,099 13,856 1,220,865 16,356 1,257,964 165,955 (896,884) (185,261) 1,500,000 (185,261) 1,500,000 (185,261) 1,314,739 437,161 3,027,019 (19,306) 417,855 108,165 3,135,184 Fund balances, end of year $ 3,464,180 $ 88,859 $3,5531039 26 CITY OF EULESS, TEXAS COMBINING BALANCE SHEET - SPECIAL REVENUE FUNDS September 30, 1985 ASSETS Cash and short-term investments Due from other funds LIABILITIES AND FUND EQUITY Due to other funds Fund balances Hotel/ motel fund Industrial Insurance development fund fund Total $201,539 $(81,279) 122,279 $201,539 $ 41,000 $ - $ 41,000 201,539 $201,539 $ 41,000 $7,000 $7,000 $127,260 122,279 $249,539 $ - $ 41,000 7,000 208,539 $7 000 $249,539 27 CITY OF EULESS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUNDS Year ended September 30, 1985 Hotel/ Industrial motel Insurance development fund fund fund Total Revenues: Gross receipts tax $ 199,737 $ - $ - $ 199,737 Other revenues 95,005 7,000 102,005 199,737 95,005 7,000 301,742 Expenditures: Capital outlay and maintenance 7,120 7,120 Planning and development 43,525 - - 43,525 Insurance claims and fees 422,538 422,538 50,645 422,538 - 473,183 Excess (deficiency) of revenues over expenditures 149,092 (327,533) 7,000 (171,441) Other financing sources: Net operating transfers in (out) (120,000) 327,533 207,533 Excess of revenues and other financing sources over expenditures. 29,092 - 7,000 36,092 Fund balances, beginning of year 172,447 172,447 Fund balances, end of year $ 201,539 $ - $7,000 $ 208,539 28 CITY OF EULESS, TEXAS COMPARATIVE BALANCE SHEET - WATER AND SEWER ENTERPRISE FUND September 30, 1985 and 1984 ASSETS Current assets: Cash and short-term investments Accounts receivable, less allowance for estimated uncollectible accounts of $1,463 in 1985 and 1984 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 Waterworks and sanitary sewer system Less accumulated depreciation Net utility plant in service Capitalized water and sewer facility contract rights less accumulated amortization of $1,885,012 in 1985 and $1,476,776 in 1984 1985 $ 1,281,375 $ 434,771 417,999 203,707 2,337,852 57,570 1,422,717 300,000 431,398 2,139,548 431,073 82,731 4,865,037 1,215,252 640,352 20,043,949 21,899,553 4,499,428 17,400,125 1984 970,233 392,115 371,469 200,175 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 15,062,492 16,000,209 $39,665,506 $37,840,495 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 emergency Total appropriated Unappropriated: Designated for equipment Undesignated Total unappropriated Total fund equity 1985 $ 27,225 $ 126,599 223,070 255,000 431,073 86,972 1,149,939 15,451,166 5,825,000 166,273 22,592,378 10,689,470 239,617 15,000 10,944,087 57,570 1,422,717 731,398 2,211,685 544,522 3,372,834 3,917,356 17,073,128 $39,665,506 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 $37,840,495 29 CITY OF EULESS, TEXAS COMPARATIVE SCHEDULE OF OPERATING EXPENSES - WATER AND SEWER ENTERPRISE FUND Years ended September 30, 1985 and 1984 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 1985 1984 $ 105,250 $ 112,994 17,710 16,537 15,945 15,822 13,145 15,022 17,282 21,608 13,091 11,277 182,423 193,260 119,530 119,404 26,983 23,906 5,853 3,136 136,518 13,802 218,627 502,932 7,638 14,047 515,149 677,227 173,282 176,302 42,543 36,765 7,285 7,840 32,980 64,871 6,665 596 907 660 263,662 287,034 250,872 186,373 53,805 41,719 3,707 3,708 19,267 7,040 4,764 2,302 191,425 255,408 1,955 1,848 525,795 498,398 CITY OF EULESS, TEXAS COMPARATIVE SCHEDULE OF OPERATING EXPENSES - WATER AND SEWER ENTERPRISE FUND Years ended September 30, 1985 and 1984 (Continued) Nondepartmental: Employee benefits Operating supplies and expense Contractual services Service center: Salaries Employee benefits Motor fuel Operating supplies and expense Maintenance of structures and equipment Other Total operating expenses, excluding depreciation and interest expense 1985 1984 30 $ 1,553 $ 1,205 387,390 268,454 48,061 31,145 437,004 76,629 15,074 68,813 9,196 91,895 1,953 263,560 $2,187,593 300,804 77,424 12,293 60,018 11,814 81,824 626 243,999 $2,200,722 31 CITY OF EULESS, TEXAS COMBINING BALANCE SHEET - ALL AGENCY FUNDS September 30, 1985 ASSETS Cash and short-term investments Due from other funds LIABILITIES Payroll related payables Due to other funds Escrow deposits Social security $ 82,686 94,305 $176,991 $176,991 $176t991 Developers' escrow $1,618,518 $1,618,518 $ 216,376 1,402,142 $1,618,518 Total $1,701,204 94,305 $1,795,509 $ 176,991 216,376 1,402,142 $1,795,509 32 CITY OF EULESS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS Year ended September 30, 1985 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 Balance September 30, 1984 Additions $ 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 Balance Deductions September 30, 1985 $1,793,253 $1,729,552 21,208 $1,814,461 $1,729,552 $1,8141461 $1,729,552 $4,350,847 $4,296,286 $4,221,614 129,233 $4,350,847 $6,144,100 21,208 $6,165,308 $1,814,461 129,233 4,221,614 $6�165,308 $4,296,286 $4,296,286 $6,025,838 $6,025,838 $1,729,552 4,296,286 $6,025,838 82,686 94,305 176,991 $ 176,991 $1,618,518 $1,402,142 216,376 $1,618 518 $1,701,204 94,305 $1,795,509 $ 176,991 216,376 1,402,142 $1,795,509 STATISTICAL SECTION 33 CITY OF EULESS, TEXAS MISCELLANEOUS STATISTICAL FACTS (Unaudited) Date of incorporation February 24, 1953 Date of adoption of Charter July 21, 1962 Form of government: Home Rule, Council -Manager Mayor - elected at large Five council members Area 16.9 square miles Population: 1960 census 1970 census 1980 census 4,236 19,316 24,000 Building permits issued: Year ended September 30, 1985 879 Estimated cost $47,670,451 Full time City employees: September 30, 1985 220 Police protection: Number of stations Number of certified officers Fire protection: Number of stations. Number of certified firefighters 1 46 3 47 Parks and recreation: Number of swimming pools 3 Number of parks 8 Area of parks 122 acres Community buildings 2 Library volumes 42,126 Education: Elementary Schools 6 Junior High Schools 2 High School 1 34 CITY OF EULESS, TEXAS MISCELLANEOUS STATISTICAL FACTS (Unaudited) (Continued) City Water and Sewer service: Water service: Number of customers at September 30, 1985 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 City's ten largest taxpayers: Sotogrande Apts. - R. S. Folsom First Southwest Equity Corp. Southwestern Bell Telephone Company Euless Town Center - Prud. Ins. Co. Texas Utilities Electric Co. University Real Est. Invest. Del Paso Partners LTD. Burbank Assoc. LTD. Arbors of Euless LTD. Amtex Real Properties Corp. 15,535 8,000,000 gallons 4,000,000 gallons 12,000,000 gallons 11,817,000 gallons 4,830,000 gallons 145 miles 543 3,232,000 gallons 15,061 121 miles Type of business Apartments Apartments Utility Retail Utility Apartments Apartments Apartments Apartments Apartments 116.0 miles 17.2 miles Assessed valuation $ 44,442,121 18,534,209 12,978,040 10,432,309 9,008,910 7,762,743 7,397,351 7,251,046 7,092,176 6,543,383 $131,442,288 Fiscal year 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 CITY OF EULESS, TEXAS GENERAL GOVERNMENT REVENUE BY SOURCE Last ten years (Unaudited) Taxes $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 5,902,338 Licenses and permits $ 24,160 56,764 37,039 77,331 119,383 187,263 191,551 379,549 601,181 429,929 Inter- governmental revenues $ 35,556 41,205 118,649 129,516 126,671 206,722 312,553 288,355 402,107 521,896 35 Charges Fines for and Miscel- services fees laneous $31,556 $193,293 $105,850 27,583 221,650 136,185 27,698 129,240 195,110 23,827 151,080 200,111 46,512 210,772 291,721 34,590 208,746 443,065 37,714 259,293 375,297 38,254 200,793 457,210 38,484 265,800 594,673 51,401 356,381 702,740 36 Fiscal year 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 CITY OF EULESS, TEXAS GENERAL GOVERNMENT EXPENDITURES BY FUNCTION Last ten years (Unaudited) General government $325,532 285,024 458,500 546,750 680,381 739,346 737,311 741,825 905,018 1,060,047 Public safety $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 3,963,322 Culture - Debt Streets recreation service Other* $166,229 $373,960 177,625 367,944 201,074 422,526 256,149 453,046 266,714 545,733 255,642 530,593 332,829 644,703 323,104 667,854 364,058 859,754 401,902 947,590 $455,388 $ - 346,079 289,670 335,448 325,618 339,687 350,478 430,350 395,736 427,658 418,557 429,364 458,351 425,799 480,838 506,439 509,600 780,540 592,995 * 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. 37 CITY OF EULESS, TEXAS PROPERTY TAX RATES PER $100 OF ASSESSED VALUE Last ten years (Unaudited) Fiscal year Junior City School County State Hospital college Total 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 1985 .44 .74 .125 .104 .031 1.44 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. 38 Fiscal year 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 CITY OF EULESS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS Last ten years (Unaudited) Total tax levy $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 3,298,386 Current tax collections $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 3,182,483 Percent of levy collected 91.75 90.76 92.46 94.82 94.94 96.12 95.92 97.92 97.78 96.49 Delinquent tax collections $97,107 48,244 90,383 171,253 93,789 101,408 71,417 39,762 77,156 127,288 Total tax collections $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 3,309,771 Percent of total tax collections to tax levy 99.31 93.77 98.01 104.70 100.51 101.28 99.26 99.45 100.52 100.35 Outstanding delinquent taxes at year-end $188,043 283,394 306,769 222,084 213,555 188,405 202,081 246,369 268,760 256,955 Percent of delinquent taxes to tax levy 14.63 17.66 18.82 13.30 12.68 9.58 9.47 9.48 9.57 7.79 39 CITY OF EULESS, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last ten years (Unaudited) Fiscal year 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 Real property Assessed value $133,439,320 152,478,400 149,618,690 153,414,790 158,125,200 248,902,180 265,109,240 332,750,708 343,084,060 664,329,292 Estimated actual value $205,291,262 234,582,154 230,182,600 236,022,754 243,269,538 248,902,180 265,109,240 332,750,708 343,084,060 664,329,292 Personal property Assessed Estimated value actual value $17,751,780 18,239,900 22,275,660 24,286,990 20,977,300 31,980,350 39,621,390 57,430,322 58,805,741 101,027,035 $27,310,430 28,061,384 34,270,246 37,364,600 32,272,769 31,980,350 39,621,390 57,430,322 58,805,741 101,027,035 Total Assessed value $151,191,100 170,718,300 171,894,350 177,701,780 179,102,500 280,882,530 304,730,630 390,181,030 401,889,801 765,356,327 Estimated actual value $232,601,692 262,643,538 264,452,846 273,387,354 275,542,307 280,882,530 304,730,630 390,181,030 401,889,801 765,356,327 Ratio of total assessed to total estimated actual value 65% 65 65 65 65 100 100 100 100 100 40 Fiscal year 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 CITY OF EULESS DEBT SERVICE REQUIREMENTS TO MATURITY - GENERAL OBLIGATION BONDS (Unaudited) Principal $ 290,000 325,000 340,000 380,000 390,000 410,000 435,000 470,000 510,000 545,000 585,000 635,000 570,000 525,000 460,000 400,000 410,000 450,000 485,000 230,000 250,000 Interest $ 670,340 649,848 626,875 602,355 574,090 545,848 517,738 488,155 455,082 419,725 380,865 340,775 299,475 257,045 218,765 185,525. 151,200 115,314 75,792 32,872 17,152 Total $ 960,340 974,848 966,875 982,355 964,090 955,848 952,738 958,155 965,082 964,725 965,865 975,775 869,475 782,045 678,765 585,525 561,200 565,314 560,792 262,872 267,152 $9,095,000 $7.624.836 $16.719,836 41 Fiscal year 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 $ 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 $6.080.000 Interest $ 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 $4,245.162 Total $ 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 $10.325.162 Fiscal year 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 CITY OF EULESS, TEXAS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last ten years (Unaudited) Principal $220,000 105,000 110,000 110,000 140,000 145,000 155,000 165,000 195,000 230,000 Total debt Interest service $235,388 241,079 235,448 229,687 290,350 282,658 274,364 260,799 311,439 550,540 $455,388 346,079 345,448 339,687 430,350 427,658 429,364 425,799 506,439 780,540 42 Ratio of debt service Total to general general expenditures expenditures (percent) $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 7,746,396 22.81% 15.04 11.56 10.38 11.15 10.42 8.78 8.37 7.59 10.08 43 CITY OF EULESS, TEXAS COMPUTATION OF DIRECT AND OVERLAPPING DEBT September 30, 1985 (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 $ 8,746,367 17,634,431 22,150,000 15,348,450 3,476,457 30,432,500 Percent applicable to City of Euless 100.00 4.22 24.98 2.55 2.55 2.55 Amount applicable to City of Euless $ 8,746,367 744,173 5,533,070 391,385 88,650 776,029 $16,279,674 CITY OF EULESS, TEXAS WATER AND SEWER REVENUE BOND COVERAGE Last two years (Unaudited) Net accrual revenue: Operating revenue Investment income and gain on sale of land Operating expenses excluding depreciation and amortization: Contract charges by Trinity River Authority for water and sewer facility: Operations and maintenance Debt service Other Net accrual revenue available for debt service Reconciliation to net income: Net income 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) 1985 $5,214,429 1,386,688 6,601,117 410,052 1,504,352 1,777,541 3,691,945 $2,909,172 $1,318,996 44 1984 $4,634,897 562,491 5,197,388 758,340 899,511 1,442,382 3,100,233 $2,097,155 $ 948,117 408,236 231,965 607,398 458,198 419,437 473,668 352,911 165,251 (197,806) (180,044) $2,909,172 $2,097,155 $ 677,300 $ 677,300 516,258 523,718 4.30 3.10 5.64 4.00 45 CITY OF EIJLESS, TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last ten years (Unaudited) Fiscal year Population* 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 21,900 22,450 22,900 23,450 24,000 26,250 26,100 28,200 32,500 37,950 Assessed value $151,191,100 170,718,300 171,894,350 177,701,780 179,102,500 280,882,530 304,730,630 390,181,030 401,889,801 765,356,327 Gross bonded debt $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 9,095,000 Less debt service funds Net bonded debt $136,255 $4,598,745 143,138 4,486,862 170,049 4,349,951 201,177 5,308,823 156,522 5,213,478 173,872 5,051,128 171,395 4,898,605 235,147 5,284,853 285,142 7,539,858 348,633 8,746,367 Ratio of assessed value to net bonded debt 32.88 38.05 39.52 33.47 34.35 55.61 62.21 73.83 53.30 87.51 Estimates by North Central Texas Council of Governments as adjusted for 1980 census data. Net bonded debt per capita $209.99 199.86 189.95 226.39 217.23 192.42 187.68 187.41 232.00 230.47 7�q4 r� J4�4,h! iib�1 ' Vree j' 01/0111 41000 Amy J pif q,rt ri r°(11'4ra'� �rrr ". It'd"Y 100C,, p P g