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Home My WebLink AboutFY 1978 Financial Statements and Supplementary Information - AuditIV CITY OF EULESS, TEXAS FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 1978 with REPORT OF CERTIFIED PUBLIC ACCOUNTANTS ART HUR YOUNG & COMPANY ANNUAL FINANCIAL REPORT OF THE CITY OF EULESS, TEXAS 201 NORTH ECTOR DRIVE EULESS, TEXAS 76039 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1978 ISSUED BY THE FINANCE DEPARTMENT JAMES R. HICKERSON DIRECTOR OF FINANCE CONTENTS Letter of transmittal Report of certified public accountants Financial statements Exhibit Combined financial statements Page A Combined balance sheet - all funds and account groups 1-2 A-1 Combined statement of revenue, expenditures and changes in fund balances - general governmental funds 3-4 A-2 Statement of operations - Water and Sewer Enterprise Fund 5 A-3 Statement of changes in contributions and retained earnings - Water and Sewer Enterprise Fund 6 A-4 Statement of changes in financial position - Water and Sewer Enterprise Fund 7 A-5 Notes to financial statements - all funds and accounts 8-16 General Fund B Balance sheet 17 B-1 Statement of revenue and expenditures - budget and actual and changes in fund balance 18-19 Debt Service Fund C Balance sheet 20 C-1 Statement of revenue, expenditures and changes in fund balance 21 Capital Projects Funds D Balance sheet 22 D-1 Statement of revenue, expenditures and changes in fund balances 23 Trust and Agency Funds E Balance sheet 24 E-1 Statement of revenue, expenditures and changes in escrow deposits and fund balances 25 CONTENTS Exhibit Financial Statements (continued) Page General Fixed Assets F Statement of general fixed assets 26 F-1 Statement of changes in general fixed assets by source 27 General Long-term Debt Statement of general long-term debt 28 Water and Sewer Enterprise Fund H Balance sheet 29 H-1 Statement of operations 30 H-2 Statement of changes in contributions 31 and retained earnings H-3 Statement of changes in financial position 32 Schedule Supplementary information 1 Combined schedule of changes in taxes receivable 33 2 Combined schedule of taxes receivable by funds 33 3 Schedule of General Fund revenue - budget and actual 34-35 4 Schedule of General Fund expenditures - budget and actual 36-39 5 Schedule of operating expenses - Water and Sewer Enterprise Fund 40-41 Table Statistical information 1 Property tax levies and collections 42 2 Property tax rates 43 3 Ratio of net general bonded debt to assessed value and net bonded debt per capita 44 4 Computation of direct and overlapping debt 45 5 General governmental expenditures by function 46 6 General revenue by source 47 7 Ratio of annual debt service expenditures for general bonded debt to total general expenditures 48 8 Revenue bond coverage 49 CONTENTS Table Statistical information (continued) Page 9 Debt service requirements to maturity - general obligation bonds 50 10 Debt service requirements to maturity - Water and Sewer Revenue Bonds 51 11 Assessed and estimated actual value of taxable property 52 12 Insurance in force 53-54 13 Miscellaneous statistical facts 55-56 November 15, 1978 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, 1978 is submitted herewith. Accounting System and Reports The City's accounting records for general governmental operations are maintained on a modified accrual basis, with the most important revenue being recorded when earned and expenditures being recorded when incurred. 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. The Municipal Finance Officers Association of the United States and Canada (MFOA) awarded a Certificate of Conformance in Financial Reporting to the City of Euless for our Annual Financial Report for the fiscal year ended September 30, 197.5.';� In order to be awarded a Certificate of Conformance, a governmental unit must publish an easily readable and efficiently organized comprehensive Annual Financial Report, whose contents conform to industry standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Conformance is valid for a period of three years subject to two Annual Reviews. Our Annual Financial Reports for the fiscal years ended September 30, 1976 and September 30, 1977 successfully passed their required Annual Reviews. IWe, believe our current report continues to conform to Certificate of Conformance Program requirements, and we are submitting it to MFOA for a supplemental certificate. General Governmental Functions Revenue for general governmental functions totaled $2,891,911 in 1978, an increase of 8.01 percent over 1977. General property taxes produced 56.15 percent of general revenue compared to 56.79 percent last year. The amount of revenue from various sources and the changes over last year are shown in the following tabulation: Revenue Source General property taxes Gross receipts taxes General sales taxes Licenses and permits Fines and fees Other revenue Amount $1,623,803 386,219 454,922 37,039 129,240 260,688 $218914911 Percent of total 56.15 13.36 15.73 1.28 4.47 9.01 Increase (decrease) from 1977 $103,326 59,417 108,063 (19,725) (92,410) 55,715 $214J 386 In addition to the above general revenue, $150=000 was transferred from the Water and Sewer Enterprise Fund to the General Fund. 100.00 Expenditures for general governmental purposes totaled $2,988,774, an increase of 12.93 percent over 1977. Changes in levels of expenditure for major functions of the City over the pre- ceding year are shown in the following tabulation: Function General government Public safety Streets Library Parks and recreation Bonded debt retirement Bonded debt interest and fees Other Amount $ 458,500 1,235,608 201,074 101,836 320,690 110,000 235,448 325,618 $2,988,774 Percent of total 15.34 41.34 6.73 3.41 10.73 3.68 7.88 10.89 100.00 Increase (decrease) from 1977 $173,476 55,263 23,449 14,296 40,286 5,000 (5,631) 35,948 $342,087 In addition to the general governmental revenue and expenditures, the City received $80,769 from Federal and State grants. These funds were applicable generally to law enforcement and parks and recreation programs. At the end of the fiscal year, completed projects of $43,247 were transferred to general fixed assets with the remaining funds representing reimbursement of current operation expenses of specific programs. 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 appro- priate 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, 1978, the general fixed assets of the City amounted to $8,100,329. 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. Water and Sewer System The City's water and sewer utility had a successful year and continued to show impressive gains in gross sales, number of customers, net income, and debt service coverage. Comparative data for the past two fiscal years are presented in the following tabu- lation: Net income (loss) 1978 1977 $256,573 $(61,036) Add (deduct): Amortization of capitalized water and sewer facility contract rights 124,499 124,497 Depreciation 234,128 214,583 Interest on revenue bonds 201,131 206,100 Transfers to General Fund 150,000 100,000 Principal portion of payments on water and sewer facility contracts (97,528) (94,610) Net revenue available for debt service $868,803 $489,534 Average annual debt service $256,107 $258,631 Coverage 3.39 times 1.89 times During the year, $1.25,'00O of regularly maturing revenue bonds were retired in the Water and Sewer Enterprise Fund. All reserve and accounting requirements have been met in accordance 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. 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, ("- , James R. Hickerson Director of Finance ARTHUR YOUNG & COMPANY 2200 FORT WORTH NAIL. BANK BLDG. FORT WORTH, TEXAS 76102 The Honorable Mayor and City Council City of Euless, Texas We have examined the accompanying financial statements of the various funds and account groups of the City of Euless, Texas, for the year ended September 30, 1978, listed in the foregoing table of contents. We have also examined the accom- panying financial statements of the Water and Sewer Enterprise Fund for the year ended September 30, 1977, which have been pre- sented for comparative purposes. Although not presented herein, we made a similar examination of the financial statements of the other funds and account groups for the year ended September 30, 1977. Our examinations were 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 statements mentioned above present fairly the financial position of the various funds and account groups of the City of Euless, Texas, at September 30, 1978, and the financial position of the Water and Sewer Enterprise Fund at September 30, 1977, and the results of operations of such funds and the changes in financial position of the Water and Sewer Enterprise Fund for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis during the period, after restatement of the financial statements of the Water and Sewer Enterprise Fund for the year ended September 30, 1977 to give retroactive effect to the change, with which we concur, in the method of accounting for contractual rights related to water and sewer facilities as described in Note 5 of Notes to Financial Statements - All Funds and Accounts, and except for the change, with which we concur, in the method of accounting for general prop- perty tax revenue in the General Fund and Debt Service Fund as described in Note 6. Our examinations have been made primarily for the purpose of expressing an opinion on the financial statements, taken as a whole. The accompanying supplementary information and the columns on the accompanying combined financial statements captioned "Sub- total - Memorandum Only" and "Total - Memorandum Only" are presented for analysis purposes and are not necessary for a fair presentation of the financial information referred to in the preceding paragraph. The supplementary information, except for the supplemental tables presented on pages 42 through 56, has been subjected to the tests and other auditing procedures applied in the examinations of the financial statements mentioned above and, in our opinion, is fairly stated in all respects material in relation to the financial state- ments taken as a whole. The supplemental tables presented on pages 42 through 56 were not examined by us and, accordingly, we do not express an opinion on them. November 15, 1978 1 EXHIBIT A CITY OF EULESS, TEXAS COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNTS September 30, 1978 ASSETS AND OTHER DEBITS Cash and short-term investments Delinquent taxes receivable - net (Note 6) Assessments receivable Accounts receivable (net) Inventory Due from other governments Restricted assets (Notes 2 and 3) General fixed assets Utility plant in service - net Capitalized water and sewer facility contract rights (Note 5) Amount available for retirement of general long-term debt Amount to be provided for retirement of general long-term debt Total assets and other debits Governmental fund types General Fund $474,058 158,153 124,662 4,095 19,926 $780,894 Debt Service Fund $170,049 48,563 15,091 Capital Projects Funds $821,162 10,545 1,259 37,561 $233,703 $870,527 Fiduciary fund types Trust and Agency Fund $160,126 $ Account groups General fixed assets 8,100,329 General long-term debt Sub- total (memorandum only) - $ 1,625,395 170,049 4,349,951 $160,126 $8,100,329 $4,520,000 (Exhibit B) (Exhibit C) (Exhibit D) (Exhibit E) (Exhibit F) (Exhibit G) 206,716 10,545 141,012 4,095 57,487 8,100,329 Water and Sewer Enterprise Fund Total (memorandum only) $ 447,563 $ 2,072,958 206,716 10,545 166,659 307,671 4,095 57,487 1,526,216 8,100,329 7,162,208 5,817,088 170,049 170,049 4,349,951 4,349,951 $14,665,579 $15,119,734 $29,785,313 (Exhibit H) 1,526,216 7,162,208 5,817,088 2 EXHIBIT A CITY OF EULESS, TEXAS COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNTS September 30, 1978 (Continued) LIABILITIES, DEFERRED REVENUE AND FUND EQUITY Governmental fund types General Fund Liabilities: Payroll taxes and other payables $ 22,222 $ Customer and developers deposits Accrued revenue bond interest payable Obligations under capitalized water and sewer facility contracts (Note 5) Bonds payable (Note 3) Total liabilities Deferred revenue Fund equity: Investment in general fixed assets Contributions from subdividers and others Fund balance: Reserve for recreation equipment Reserve for unexpended grants Reserve for inventory Unreserved Retained earnings: (Notes 3 and 6) Appropriated Unappropriated Total liabilities, deferred revenue and fund equity 22,222 44,205 6,786 73 4,095 703,513 Debt Service Fund 13,489 220,214 Fiduciary fund types Trust Capital and Projects Agency Funds Funds $ 27,877 842,650 $ 56,538 $ 90,036 146,574 Account groups General fixed assets - 8,100,329 13,552 $ General long-term debt 4,520,000 4,520,000 Water and Subtotal Sewer (memorandum Enterprise only) Fund $ 78,760 $ 90,036 4,520,000 4,688,796 85,571 8,100,329 6,786 73 4,095 1,779,929 Total (memorandum only) - $ 129,577 41,367 6,009,536 4,225,000 10,405,480 220,873 2,157,088 - 877,336 1,458,957 78,760 219,613 41,367 6,009,536 8,745,000 15,094,276 306,444 8,100,329 2,157,088 6,786 73 4,095 1,779,929 877,336 1,458,957 $780,894 $233,703 $870,527 $160,126 $8,100,329 $4,520,000 $14,665,579 $15,119,734 $29,785,313 (Exhibit B) (Exhibit C) (Exhibit D) (Exhibit E) (Exhibit F) (Exhibit G) (Exhibit H) See notes to financial statements, Exhibit A-5. CITY OF EULESS, TEXAS GENERAL GOVERNMENTAL FUNDS COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Year ended September 30, 1978 Revenue: General property taxes Gross receipts taxes General sales taxes Licenses and permits Fines and fees Interest income Other revenue Federal Revenue Sharing and other grants Paving assessments Total revenue Transfers from other funds Total revenue and transfers Expenditures: City Council General Government Civil Service Service Center Police Department Legal and corporation court Fire Department Street Department Traffic and safety Building and zoning Library Recreation Department Park Department Pools General Fund $1,249,842 386,219 454,922 37,039 129,240 173,552 167,905 Debt Service Fund $373,961 2,598,719 373,961 150,000 - 2,748,719 373,961 12,238 158,270 13,292 92,083 756,201 62,267 441,107 201,074 38,300 72,150 101,836 64,815 171,040 44,451 $ Capital Projects Funds 3 EXHIBIT A-1 Total (memorandum only) - $1,623,803 386,219 454,922 37,039 129,240 4,456 178,008 167,905 313,442 18,352 336,250 336,250 313,442 18,352 3,308,930 150,000 3,458,930 - 12,238 158,270 13,292 92,083 756,201 62,267 441,107 201,074 38,300 72,150 101,836 64,815 171,040 44,451 CITY OF EULESS, TEXAS GENERAL GOVERNMENTAL FUNDS COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Year ended September 30, 1978 (Continued) General Fund Expenditures: (continued) Community Building $ 40,384 $ Civic Center 48,200 Nondepartmental 325,618 Interest on bonds 235,005 Matured bonds 110,000 Service charges 443 Capital outlays Total expenditures 2,643,326 345,448 Transfers to other funds Debt Service Fund Total expenditures and transfers Excess (deficiency) of total revenue and transfers over total expenditures and transfers Cumulative effect on prior years of recognizing general property tax revenue on the accrual basis (Note 6) Decrease in inventory reserve Unreserved fund balances, beginning of year 2,643,326 345,448 Capital Projects Funds 720,152 720,152 3,708,926 42,759 42,759 762,911 3,751,685 4 EXHIBIT A-1 Total (memorandum only) - $ 40,384 48,200 325,618 235,005 110,000 443 720,152 105,393 28,513 (426,661) (292,755) 158,153 3,385 436,582 48,563 - 206,716 3,385 143,138 1,269,311 1,849,031 Unreserved fund bal- ances, end of year $ 703,513 $220,214 $ 842,650 $1,766,377 See notes to financial statements, Exhibit A-5. CITY OF EULESS, TEXAS WATER AND SEWER ENTERPRISE FUND STATEMENT OF OPERATIONS Year ended September 30, 1978 Operating revenue: Water sales Sewer services 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) 5 EXHIBIT A-2 $1,493,339 726,735 7,979 64,466 2,292,519 1,017,778 1,274,741 124,499 Depreciation 234,128 Income from operations 916,114 Other revenue - investment income 98,665 Other expenses: Interest on revenue bonds 201,131 Transfers to general fund 150,000 Interest on water and sewer facility contract rights (Note 5) 407,075 758,206 Net income (Note 5) $ 256,573 See notes to financial statements, Exhibit A-5. 6 EXHIBIT A-3 CITY OF EULESS, TEXAS WATER AND SEWER ENTERPRISE FUND STATEMENT OF CHANGES IN CONTRIBUTIONS AND RETAINED EARNINGS Year ended September 30, 1978 Contributions from subdividers: Balance, beginning of year $1,588,751 Add: Capital contributions from subdividers 313,720 Balance, end of year $1,902,471 Retained earnings, unappropriated: (Note 5) Balance,beginning of year $1,202,384 Add net income 256,573 Balance, end of year $1,458,957 See notes to financial statements, Exhibit A-5. 7 EXHIBIT A-4 CITY OF EULESS, TEXAS WATER AND SEWER ENTERPRISE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION Year ended September 30, 1978 Funds provided: Operations: Net income $ 256,573 Expenses not requiring current outlay of funds depreciation and amortization 358,627 Total funds provided by operations 615,200 Contributions in aid of construction 313,720 Book value of asset disposals 700 Total funds provided 929,620 Funds used: Decrease in obligations under capitalized water and sewer facility contract rights (Note 5) 103,364 Additions to utility plant in service 344,268 Retirement of revenue bonds 130,000 Decrease in deferred revenue 7,800 Increase in restricted assets 404,841 Total funds used 990,273 Decrease in working capital 1_60_65 Changes in components of working capital: Increase (decrease) in current assets: Cash and short-term investments $(117,808) Accounts receivable 47,763 Accrued interest receivable 15,483 Increase (decrease) in current liabilities: Current portion of revenue bonds Current portion of obligations under capitalized water and sewer facility contract rights Accounts payable Customer deposits Accrued revenue bond interest payable Decrease in working capital (54,562) 5,000 5,836 (10,976) 6,901 (670) 6,091 _60.653, 8 EXHIBIT A-5 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1978 1. Summary of significant accounting policies Description of funds - The City has established a number of funds for the purpose of accounting for transactions in compliance with legal requirements. Financial statements are presented for all funds and account groups in use by the City in accounting for its financial activities as follows: 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 obligation bonds; Capital Projects Funds - to account for the source and disposition of funds for the acquisition of capital facilities other than those recorded in the Enterprise Fund and those purchased by other funds; Trust and Agency Funds - to account for assets received and held by the City as trustee or agent for individ- uals, organizations, and other funds within the City; General Fixed Assets Accounts - to account for property and equipment of the City other than that acquired and accounted for in the Enterprise Fund; 9 EXHIBIT A-5 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1978 1. Summary of significant accounting policies (continued) General Long-term Debt Accounts - to account for the unmatured principal of outstanding bonds, except those recorded in the Enterprise Fund; Enterprise Fund - to account for the acquisition, operation and maintenance of a municipal utility, supported primarily by user charges to the public. Basis of accounting - The City uses the accrual basis of accounting for the Capital Projects Funds and Water and Sewer Enterprise Fund and the modified accrual basis for the General Fund, Debt Service Funds and Trust and Agency Funds (See Note 6). Modifications to the accrual basis consist pri- marily of: 1. Franchise taxes, permits, licenses and fines are recorded as General Fund revenue when received in cash. 2. Interest on general long-term debt is recorded as a Debt Service Fund expenditure when due. 3. Retroactive increases in revenue sharing allocations are recorded as Revenue Sharing Fund revenue when received in cash. The City's annual budget is prepared on the same basis that the City maintains its accounts. 10 EXHIBIT A-5 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1978 1. Summary of significant accounting policies (continued) 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 construction and are capitalized in the General Fixed Assets Accounts. Costs related to repairs and maintenance are not capitalized. Significant renovations and improvements are capitalized. Depreciation - No depreciation is recorded on general fixed assets. Depreciation is recorded on each class of depreci- able property in the Water and Sewer Enterprise Fund utilizing the straight-line method over the following estimated useful lives of the assets: Equipment 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 fulltime employees. The total pension expense for the year was approx- imat6ly $65,500 and $10,200 for the General Fund and Water and 11 EXHIBIT A-5 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1978 1. Summary of significant accounting policies (continued) Sewer Enterprise Fund, respectively, which includes amortiza- tion of prior service cost (including interest) over a 25-year period. The City's policy is to fund all pension cost accrued. Employees' vacation and sick leave - Employees may accumulate a maximum of 10 days of vacation. The City's policy is to pay the employee for accumulated vacation upon termination. Accrued vacation pay is insignificant and is not recorded by the City. It is the City's policy not to pay employees for accumu- lated sick leave upon termination. 2. Restricted assets Restricted assets consist of cash, investments and receivables restricted primarily for Water and Sewer Enterprise Fund debt service and water and sewer system replacements. 3. Bonds payable Bonded debt authorized and outstanding at September 30, 1978 consists of the following: Range of Unpaid interest balance Current Long-term rates @ 9-30-78 maturities maturities General long- term debt 3.6 to 7.5% $4,520,000 $110,000 $4,410,000 Water and Sewer Revenue Bonds 4.5 to 6% 4,225,000 130,000 4,095,000 $8,745.000 1240,000 $8.505,000 12 EXHIBIT A-5 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1978 3. Bonds payable (continued) 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 maturi- ties for the next five years is as follows: General long- Water and Sewer term debt Revenue Bonds Total 1979 $110,000 $130,000 $240,000 1980 115,000 140,000 255,000 1981 120,000 145,000 265,000 1982 130,000 155,000 285,000 1983 140,000 160,000 300,000 General obligation bonds authorized and unissued as of September 30, 1978, amounted to $3,945,000. Water and Sewer Revenue Bonds authorized and unissued as of September 30, 1978, amounted to $4,200,000. 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 funds were established: Reserve for revenue bond debt service - to be used for retirement of the current portion of principal and interest payments due. 13 EXHIBIT A-5 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1978 3. Bonds payable (continued) 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 contingency - 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 contingency shall be used for the purpose of meeting principal and/or interest requirements of the bonds. All requirements for funding of the above reserves were met at September 30, 1978. Investments of funds included in the bond reserve and contingency 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% of the $5,800,000 of revenue bonds issued by Euless for the original 14 EXHIBIT A-5 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1978 4. Property sale proceeds accounts (continued) 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 outstanding. As of September 30, 1978, $1,650,000 (28.45%) of the revenue bonds have been retired with proceeds from the sale. 5. Water and sewer facility contract rights - restatement 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 45 years to share in the costs of operations, maintenance and debt service of the Authority. Under the contract, all charges by TRA are deemed to be for services which constitute reasonable and necessary "operating expenses" of the City's water and sewer system; however, under Statement No. 13 and related interpreta- tions by the Financial Accounting Standards Board, generally accepted accounting principles require that the amounts under the contracts representing debt service be capitalized and the related obligation recorded on the accompanying balance sheet. Accordingly, the financial statements of the Water and Sewer Enterprise Fund for the year ended September 30, 1977, have been restated with the following principal effects: 15 EXHIBIT A-5 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1978 5. Water and sewer facility contract rights - restatement (continued) Amounts Amounts as previously reported restated Obligations under capital- ized water and sewer facility contract rights Capitalized water and sewer facility contract rights (net) Unappropriated retained earnings Net income (loss) $ - $6,107,064 1,367,861 68,853 5,941,587 1,202,384 (61,036) 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 adjustable each year based on the City's usage compared to that of other users. The City's obligation has been estimated 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, 1978: Year ending September 30: 1979 1980 1981 1982 1983 Later years Less amount representing interest $ 523,342 527,689 526,857 526,725 523,436 8,786,538 11,414,587 5,405,051 Present value of minimum requirements S F.009.536: 16 EXHIBIT A-5 CITY OF EULESS, TEXAS NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS September 30, 1978 5. Water and sewer facility contract rights - restatement (continued) Total payments under these contracts were approximately $1,015,000 and $736,000 in 1978 and 1977, respectively. A por- tion of the minimum requirements for TRA debt service in 1977 was met from revenue received from grants and investments by the TRA and this has been reported as other income in the accompanying financial statements. 6. Change in accounting The City has changed its accounting policy to recog- nize general property tax revenues on the accrual basis rather than the cash basis, as recommended by the National Council on Governmental Accounting. This revenue is recognized in the City's General Fund and Debt Service Fund. There is no material effect on general property tax revenue included in the related accompanying financial statements. CITY OF EULESS, TEXAS GENERAL FUND BALANCE SHEET September 30, 1978 ASSETS Cash and short-term investments Delinquent taxes receivable, less allowance for uncollectible accounts of $76,541 (Note 6) Due from tax collector Accrued interest receivable Due from other governments Inventory LIABILITIES, RESERVES AND FUND BALANCE Liabilities: Accounts payable Escrow deposits Court costs collected for State of Texas Total liabilities Deferred revenue: Taxes collected in advance 17 EXHIBIT B $474,058 158,153 75,649 49,013 19,926 4,095 $780,894 $ 15,712 3,461 3,049 22,222 44,205 Fund balance: Reserves for: Recreation equipment 6,786 Unexpended grants 73 Inventory 4,095 Unreserved (Note 6) 703,513 $780.894 See notes to financial statements, Exhibit A-5. 18 EXHIBIT B-1 CITY OF EULESS, TEXAS GENERAL FUND STATEMENT OF REVENUE AND EXPENDITURES - ESTIMATED AND ACTUAL AND CHANGES IN FUND BALANCE Year ended September 30, 1978 Revenue: General property taxes Gross receipts taxes General sales taxes Licenses and permits Fines and fees Interest income Other revenue General Fund revenue Transfers from other funds Total revenue and transfers Expenditures: City Council General Government Civil Service Service Center Police Department Legal and corporation court Fire Department Street Department Traffic and safety Building and zoning Library Recreation Department Park Department Pools Community Building Civic Center Nondepartmental General Fund expenditures Excess (deficiency) of revenue and transfers over expenditures Estimated $1,206,369 352,750 350,000 32,400 237,600 55,000 45,990 2,280,109 100,000 2,380,109 13,500 137,600 15,540 90,663 850,730 78,112 473,565 261,774 47,821 90,200 121,254 73,780 177,615 47,025 65,319 66,075 239,370 2,849,943 $ (469,834) Actual $1,249,842 386,219 454,922 37,039 129,240 173,552 167,905 2,598,719 150,000 2,748,719 12,238 158,270 13,292 92,083 756,201 62,267 441,107 201,074 38,300 72,150 101,836 64,815 171,040 44,451 40,384 48,200 325,618 2,643,326 Actual over (under) $ 43,473 33,469 104,922 4,639 (108,360) 118,552 121,915 318,610 50,000 368,610 (1,262) 20,670 (2,248) 1,420 (94,529) (15,845) (32,458) (60,700) (9,521) (18,050) (19,418) (8,965) (6,575) (2,574) (24,935) (17,875) 86,248 (206,617) 105,393 $ 575,227 19 EXHIBIT B-1 CITY OF EULESS, TEXAS GENERAL FUND STATEMENT OF REVENUE AND EXPENDITURES - ESTIMATED AND ACTUAL AND CHANGES IN FUND BALANCE Year ended September 30, 1978 (Continued) Add: Cumulative effect on prior years of recognizing general property tax revenue on the accrual basis (Note 6) Decrease in inventory reserve Unreserved fund balance, beginning of year Unreserved fund balance, end of year Actual over Estimated Actual (under) $ 158,153 3,385 436,582 $ 703,513 See notes to financial statements, Exhibit A-5. 20 EXHIBIT C CITY OF EULESS, TEXAS DEBT SERVICE FUND BALANCE SHEET September 30, 1978 ASSETS Cash and short-term investments $170,049 Taxes receivable, less allowance for uncollectible accounts of $23,512 (Note 6) Due from tax collector DEFERRED REVENUE AND FUND BALANCE Deferred revenue: Taxes collected in advance Fund balance (Note 6) See notes to financial statements, Exhibit A-5. 48,563 15,091 $233,703 $ 13,489 220,214 $233,703 CITY OF EULESS, TEXAS DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Year ended September 30, 1978 Revenue: General property taxes, penalties and interest Expenditures: Interest on bonds Matured bonds Service charges 21 EXHIBIT C-1 $235,005 110,000 443 $373,961 345,448 Excess of revenue over expenditures 28,513 Cumulative effect on prior years of recognizing general property tax revenue on the accrual basis (Note 6) Fund balance, beginning of year Fund balance, end of year 48,563 143,138 $220,214 See notes to financial statements, Exhibit A-5. 22 EXHIBIT D CITY OF EULESS, TEXAS CAPITAL PROJECTS FUNDS BALANCE SHEET September 30, 1978 Street Improvement Park and Revenue Public and Drainage Recreation Sharing Safety ASSETS Total Fund Fund Fund Fund Cash and short-term investments Due from revenue sharing Assessments receivable Other receivables DEFERRED REVENUE AND FUND BALANCES Deferred revenue: Uncollected assessments Prepaid paving assessment Total deferred revenue Fund balances $821,162 $517,742 $73,728 $ 92,029 $137,663 37,561 37,561 10,545 10,545 1,259 1,259 $870,527 $528,287 $73,728 $130,849 $137,663 $ 10,545 $ 10,545 $ - $ - $ - 17,332 17,332 27,877 27,877 842,650 500,410 73,728 130,849 137,663 $870,527 $528,287 $73,728 .$130,849 $137,663 See notes to financial statements, Exhibit A-5. 23 EXHIBIT D-1 CITY OF EULESS, TEXAS CAPITAL PROJECTS FUNDS STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Year ended September 30, 1978 Revenue: Interest income Paving assessments Federal Revenue Sharing Other grants and transfers Expenditures: Capital outlays Transfers to other funds Total expenditures and transfers Excess (deficiency) of revenue over expendi- tures and transfers Fund balances, beginning of year Fund balances, end of year Total Street Improvement Park and Revenue Public and Drainage Recreation Sharing Safety Fund Fund Fund Fund $ 4,456 $ - $ - $ 4,456 $ 18,352 18,352 198,901 198,901 114,541 114,541 336,250 18,352 114,541 203,357 720,152 57,170 233,513 99,807 329,662 42,759 42,759 762,911 99,929 233,513 99,807 329,662 (426,661) (81,577) (118,972) 103,550 (329,662) 1,269,311 581,987 192,700 27,299 467,325 $ 842,650 $500,410 $ 731728 $130,849 $ 137,663 See notes to financial statements, Exhibit A-5. CITY OF EULESS, TEXAS TRUST AND AGENCY FUNDS BALANCE SHEET September 30, 1978 ASSETS Cash and short-term investments LIABILITIES AND FUND BALANCES Liabilities: Payroll taxes payable Other current liabilities Escrow deposits Total liabilities Fund balances Total $160,126 Social Security Fund $70,090 $ 53,767 $53,767 2,771 2,771 90,036 146,574 56,538 13,552 13,552 24 EXHIBIT E Escrow Fund $90,036 90,036 90,036 $160,126 170,090 $90,036 See notes to financial statements, Exhibit A-5. 25 EXHIBIT E-1 CITY OF EULESS, TEXAS TRUST AND AGENCY FUNDS STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN ESCROW DEPOSITS AND FUND BALANCES Year ended September 30, 1978 Transfers: From other funds for Social Security, federal income taxes withheld, employees insurance premiums and employee United Fund deductions From Capital Projects Funds for escrow deposits Subdivider escrow deposits Social Security Escrow Total Fund Fund $ 662,182 $662,182 $ - 27,000 27,000 689,182 662,182 27,000 464,303 - 464,303 1,153,485 662,182 491,303 Expenditures: For Social Security, federal income taxes withheld, employees insurance premiums and employee United Fund deductions 661,223 661,223 - Escrow deposits returned to subdividers 450,660 450,660 1,111,883 661,223 450,660 Increase in escrow deposits and fund balances $ 41,602 Fund balance, beginning of year Fund balance, end of year 959 $ 40,643 12,593 $ 13,552 See notes to financial statements, Exhibit A-5. CITY OF EULESS, TEXAS STATEMENT OF GENERAL FIXED ASSETS September 30, 1978 General fixed assets: Land and buildings Improvements other than buildings Machinery and equipment Construction in progress Investment in general fixed assets from: General bonds Current revenues and assessments Gifts and grants Contributions from developers Revenue sharing See notes to financial statements, Exhibit A-5. 26 EXHIBIT F $2,357,056 4,598,677 1,066,351 78,245 $8,100,329 $4,725,649 3,001,964 122,526 151,813 98,377 $8,100,329 27 EXHIBIT F-1 CITY OF EULESS, TEXAS STATEMENT OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE Balance, beginning of year Add: Expenditures from bond proceeds Expenditures from assessments and other special funds Expenditures from current revenue Expenditures from revenue sharing Expenditures from developers' contributions Projects completed Total additions Deduct: Disposals of fixed assets Projects completed Total deductions Balance, end of year Year ended September 30, 1978 Total $7,094,589 647,345 43,247 102,296 98,377 151,813 226,428 1,269,506 37,338 226,428 263,766 Improvements Machinery Construction Land and other than and in buildings buildings equipment progress $1,610,445 $4,284,213 $ 973,503 $226,428 493,725 108,353 - 45,267 7,199 19,259 226,428 746,611 $8 ,100.329 $2,357,056 18,410 24,837 26,520 9,368 151,813 314,464 35,599 69,750 130,186 32,978 78,245 37,338 37,338 226,428 $4,598,677 $1,066.351 78,245 See notes to financial statements, Exhibit A-5. 226,428 28 EXHIBIT G CITY OF EULESS, TEXAS STATEMENT OF GENERAL LONG-TERM DEBT September 30, 1978 Amount available and to be provided for the payment of general long-term debt: Serial bond principal: Amount available in Debt Service Fund To be provided in future years To be available and to be provided GENERAL LONG-TERM DEBT PAYABLE $ 170,049 4,349,951 $4,520,000 Serial bonds payable in future years (Note 3) $4,520,000 See notes to financial statements, Exhibit A-5. 29 EXHIBIT H CITY OF EULESS, TEXAS WATER AND SEWER ENTERPRISE FUND BALANCE SHEET September 30, 1978 and 1977 ASSETS Current assets: Cash and short-term investments Accounts receivable, less allowance for estimated uncollectable accounts of $3,090 in 1978 and $770 in 1977 Accrued interest receivable Total current assets Restricted assets: Revenue bond debt service: (Note 3) Cash with paying agent Revenue bond reserve: (Note 3) Cash with paying agent Investments with paying agent, at cost Revenue bond contingency: (Note 3) Cash and short-term investments Property sale proceeds accounts: (Note 4)- Principal 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 $407,775 and $283,276 in 1978 and 1977 (Note 5) 1978 1977 $ 447,563 $ 565,371 151,176 103,413 15,483 614,222 668,784 79,388 8,447 266,213 100,000 423,288 513,919 79,388 8,447 266,213 100,000 423,288 115,979 129,577 122,676 5,384 5,384 1,526,216 1,121,375 1,013,291 1,013,291 129,575 112,045 7,880,654 7,555,416 9,023,520 8,680,752 1,861,312 1,627,984 7,162,208 7,052,768 5,817,088 5,941,587 $15,119,734 $14,784,514. LIABILITIES, CONTRIBUTIONS AND RETAINED EARNINGS 1978 Current liabilities: Payable from current assets: Current portion of revenue bonds (Note 3) Current portion of obligations under capitalized water and sewer contract rights (Note 5) Accounts payable Payable from restricted assets: Customer deposits Accrued revenue bond interest payable Total current liabilities Obligations under capitalized water and sewer facility contract rights (Note 5) Revenue bonds (Note 3) Total liabilities Deferred revenues Contributions: From subdividers From Environmental Protection Agency From Trinity River Authority Total contributions Retained earnings: Reserves: (Note 3) For revenue bond debt service, next maturing For revenue bond retirement For contingency Total reserves (appropriated) Unappropriated (Note 5) Total retained earnings 1977 $ 130,000 $ 125,000 103,364 97,528 10,976 129,577 122,676 41,367 42,037 404,308 398,217 5,906,172 6,009,536 4,095,000 4,225,000 10,405,480 10,632,753 220,873 228,673 1,902,471 1,588,751 239,617 239,617 15,000 15,000 2,157,088 1,843,368 79,388 274,660 523,288 877,336 1,458,957 2,336,293 $15.119.734 See notes to financial statements, Exhibit A-5. 79,388 274,660 523,288 877,336 1,202,384 2,079,720 $14,784,514 CITY OF EULESS, TEXAS WATER AND SEWER ENTERPRISE FUND STATEMENT OF OPERATIONS Years ended September 30, 1978 and 1977 Operating revenue: Water sales Sewer services 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 Income from operations Other revenue: Investment income Other income (Note 5) Other expenses: Interest on revenue bonds Transfers to General Fund Interest on water and sewer facility contract rights (Note 5) Net income (Note 5) 1978 $1,493,339 726,735 7,979 64,466 2,292,519 1,017,778 1,274,741 124,499 234,128 916,114 98,665 98,665 201,131 150,000 407,075 758,206 30 EXHIBIT H-1 1977 $1,007,083 497,471 15,412 64,928 1,584,894 943,216 641,678 124,497 214,583 302,598 84,665 269,330 353,995 206,100 100,000 411,529 717,629 256,573 $ (61,036) See notes to financial statements, Exhibit A-5. 31 EXHIBIT H-2 CITY OF EULESS, TEXAS WATER AND SEWER ENTERPRISE FUND STATEMENT OF CHANGES IN CONTRIBUTIONS AND RETAINED EARNINGS Years ended September 30, 1978 and 1977 1978 1977 Contributions from subdividers: Balance, beginning of year $1,588,751 $1,388,776 Add: Capital contributions from subdividers 313,720 199,975 Balance, end of year $11902,471 $12588,751 Retained earnings - unappropriated: (Note 5) Balance, beginning of year, as previously reported Adjustment to record capitalized water and sewer facility contract rights and related obligations Balance, beginning of year, as restated Add (deduct) results of operations Balance, end of year $1,367,861 $1,399,008 (165,477) (135,588) 1,202,384 1,263,420 256,573 (61,036) $1,458,957 $1,202,384 See notes to financial statements, Exhibit A-5. 32 EXHIBIT H-3 CITY OF EULESS, TEXAS WATER AND SEWER ENTERPRISE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION Years ended September 30, 1978 and 1977 Funds provided: Operations: Net income (loss) Expenses not requiring current outlay of funds: Depreciation and amortization Total funds provided by operations Contributions in aid to construction Decrease in restricted assets Book value of asset disposals Total funds provided Funds used: Decrease in obligations under capitalized water and sewer facility contract rights (Note 5) Additions to utility plant in service Retirement of revenue bonds Decrease in deferred revenue Increase in restricted assets Total funds used Increase (decrease) in working capital Changes in components of working capital: Increase (decrease) in current assets: Cash and short-term investments Accounts receivable Accrued interest receivable Increase (decrease) in current liabilities: Current portion of revenue bonds Current portion of obligations under capitalized water and sewer facility contract rights Accounts payable Customer deposits Accrued revenue bond interest payable Increase (decrease) in working capital 1978 1977 $ 256,573 $ (61,036) 358,627 615,200 313,720 700 929,620 103,364 344,268 130,000 7,800 404,841 990,273 (601653) 339,080 278,044 199,975 188,794 666,813 97,528 353,265 125,000 7,800 583,593 83 22D $(117,808) $ 39,840 47,763 (10,889) 15,483 (54,562) 28,951 5,000 5,000 5,836 2,918 (10,976) (75,810) 6,901 14,760 (670) (1,137) 6,091 (54,269) $ (f 0._653) $ 83.22Q. See notes to financial statements, Exhibit A-5. SUPPLEMENTARY INFORMATION CITY OF EULESS, TEXAS COMBINED SCHEDULE OF CHANGES IN TAXES RECEIVABLE Year ended September 30, 1978 Balance at beginning of year Add: Taxes levied Transfers from current taxes Deduct: Collections Transfers to delinquent taxes Adjustments Balance at end of year Less allowance for uncollectible accounts Net taxes receivable 33 SCHEDULE 1 Current Delinquent Total taxes taxes $ 283,394 $ - $283,394 1,630,303 1,630,303 117,877 117,877 2,031,574 1,630,303 401,271 1,597,841 1,507,458 90,383 117,877 117,877 9,087 4,968 4,119 1,724,805 1,630,303 94,502 $ 306,769 $ - 306,769 CITY OF EULESS, TEXAS COMBINED SCHEDULE OF TAXES RECEIVABLE BY FUNDS September 30, 1978 Delinquent taxes receivable - net: General Fund Debt Service Fund 100,053 $206,716 SCHEDULE 2 $158,153 48,563 $206,716 34 SCHEDULE 3 CITY OF EULESS, TEXAS GENERAL FUND SCHEDULE OF GENERAL FUND REVENUE - BUDGET AND ACTUAL Year ended September 30, 1978 General property taxes collected: Current taxes Delinquent taxes Penalty and interest Gross receipts taxes: Southwestern Bell Telephone Company Texas Power and Light Company Lone Star Gas Company Tarrant County Trash Disposal Mixed beverage Metroplex Cab Company General sales tax Licenses and permits: Building permits Plumbing permits Electric permits Heating and air conditioning permits Street inspections Miscellaneous permits Electric license exams Fines and fees: Corporation court fines Dog pound fees Estimated revenue $1,167,559 26,810 12,000 1,206,369 85,000 180,000 60,000 7,500 20,000 250 352,750 350,000 10,500 3,500 5,500 1,000 7,500 900 3,500 32,400 235,000 2,600 237,600 Actual revenue $1,139,796 83,821 26,225 1,249,842 88,921 209,512 56,296 9,224 21,899 367 386,219 454,922 14,971 3,728 2,769 2,359 6,278 2,640 4,294 37,039 125,581 3,659 129,240 Actual over (under) $(27,763) 57,011 14,225 43,473 3,921 29,512 (_3,704) 1,724 1,899 117 33,469 104,922 4,471 228 (2,731) 1,359 (1,222) 1,740 794 4,639 (109,419) 1,059 (108,360) 35 SCHEDULE 3 CITY OF EULESS, TEXAS GENERAL FUND SCHEDULE OF GENERAL FUND REVENUE - BUDGET AND ACTUAL Year ended September 30, 1977 (Continued) Interest income Other revenue: Intergovernmental Library receipts Tarrant County Library contributions Tarrant County fire assistance Rental income Miscellaneous income Traffic Safety Administration Texas Court cost service fee Swimming pools Total revenue Estimated revenue $ 55,000 2,000 5,740 3,000 750 9,750 750 24,000 45,990 $2,280,109 Actual revenue $ 173,552 80,769 2,606 6,027 3,000 1,506 21,558 28,853 651 22,935 167,905 $2,598,719 Actual over (under) $118,552 80,769 606 287 756 11,808 28,853 (99) (1,065) 121,915 $318,610 36 SCHEDULE 4 CITY OF EULESS, TEXAS GENERAL FUND SCHEDULE OF GENERAL FUND EXPENDITURES - BUDGET AND ACTUAL Year ended September 30, 1978 City Council: Supplies Other services and charges General Government: Personnel services Supplies Maintenance Other services and charges Capital outlays Civil Service: Personnel services Supplies Other services and charges Service Center: Personnel services Supplies Maintenance Other services and charges Capital outlays Law Enforcement: Police Department: Personnel services Supplies Maintenance Other services and charges Capital outlays Budget Expenditures $ 5,500 $ 8,000 13,500 109,700 5,000 1,550 20,350 1,000 137,600 12,370 500 2,670 15,540 55,320 5,600 10,200 1,150 18,393 90,663 740,020 40,400 16,300 21,360 32,650 850,730 3,446 8,792 12,238 Actual (over) under $ 2,054 (792) 1,262 102,545 7,155 3,861 1,139 1,074 476 16,970 3,380 33,820 (32,820) 158,270 (20,670) 11,688 682 335 165 1,269 1,401 13,292 2,248 54,129 1,191 15,544 (9,944) 9,774 426 177 973 12,459 5,934 92,083 (1,420) 660,276 79,744 49,429 (9,029) 20,746 (4,446) 16,225 5,135 9,525 23,125 756,201' 94,529 37 SCHEDULE 4 CITY OF EULESS, TEXAS GENERAL FUND SCHEDULE OF GENERAL FUND EXPENDITURES - BUDGET AND ACTUAL Year ended September 30, 1978 (Continued) Law Enforcement: (continued) Legal and Corporation Court: Personnel services Supplies Maintenance Other services and charges Capital outlays Total Law Enforcement Fire Department: Personnel services Supplies Maintenance Other services and charges Capital outlays Street Department: Personnel services Supplies Maintenance Other services and charges Capital outlays Traffic Safety Administration: Personnel services Supplies Maintenance Other services and charges Actual (over) Budget Expenditures under $ 49,432 2,350 1,150 24,930 250 78,112 928,842 438,990 16,100 8,300 5,675 4,500 473,565 115,062 15,037 114,400 7,275 10,000 261,774 20,746 3,700 22,525 850 47,821 $ 39,222 $ 10,210 1,987 363 290 860 20,627 4,303 141 109 62,267 15,845 818,468 110,374 414,558 24,432 13,734 2,366 5,283 3,017 3,558 2,117 3,974 526 441,107'` 32,458 103,056 12,006 13,898 1,139 83,027 31,373 1,093 6,182 10,000 201,074,E 60,700 20,037 444 17,237 582 709 3,256 5,288 268 38,300' 9,521 38 SCHEDULE 4 CITY OF EULESS, TEXAS GENERAL FUND SCHEDULE OF GENERAL FUND EXPENDITURES - BUDGET AND ACTUAL Year ended September 30, 1978 (Continued) Actual (over) Budget Expenditures under Building and Zoning Department: Personnel services $ 77,875 $ 65,982 $ 11,893 Supplies 2,675 2,567 108 Maintenance 700 700 Other services and charges 8,950 3,601 5,349 Library: Personnel services Supplies Maintenance Other services and charges Capital outlays Recreation Department: Personnel services Supplies Maintenance Other services and charges Capital outlays Park Department: Personnel services Supplies Maintenance Other services and charges Capital outlays 90,200 72,150 18,050 75,720 69,710 6,010 2,800 2,431 369 3,650 980 2,670 19,084 8,095 10,989 20,000 20,620 (620) 121,254 101,836- 19,418 58,030 57,098 932 3,300 4,560 (1,260) 200 278 (78) 3,650 2,770 880 8,600 109 8,491 73,780 116,500 15,200 19,150 1,340 25,425 64,815v8,965 110,591 17,173 23,236 3,761 16,279 5,909 (1,973) (4,086) (2,421) 9,146 177,615 171,040. 6,575 39 SCHEDULE 4 CITY OF EULESS, TEXAS GENERAL FUND SCHEDULE OF GENERAL FUND EXPENDITURES - BUDGET AND ACTUAL Year ended September 30, 1978 (Continued) Pools: Personnel services Supplies Maintenance Other services and charges Capital outlays Community Building: Personnel services Supplies Maintenance Other services and charges Capital outlays Civic Center: -Personnel services Supplies Maintenance Capital outlays Nondepartmental: Personnel services Supplies Other services and charges Capital outlay Actual (over) Budget Expenditures under $ 33,800 5,900 4,500 675 2,150 47,025 41,015 3,000 800 17,904 2,600 65,319 44,675 7,350 11,550 2,500 66,075 5,000 11,500 222,870 239,370 $ 31,820 3,957 6,282 267 2,125 44,451- 36,681 1,673 324 1,146 560 $ 1,980 1,943 (1,782) 408 25 2,574 4,334 1,327 476 16,758 2,040 40,384, 24,935 29,391 5,715 10,410 2,684 48,200 122 10,481 272,396 42,619 325,618 15,284 1,635 1,140 (184) 17,875 4,878 1,019 (49,526) (42,619) (86,248) Total all departments $22849,943 $2,643,326 $206,617 40 SCHEDULE 5 CITY OF EULESS, TEXAS WATER AND SEWER ENTERPRISE FUND SCHEDULE OF OPERATING EXPENSES Year ended September 30, 1978 General and administrative: Salaries and wages $ 52,292 Employee benefits 10,959 Postage and supplies 8,049 Maintenance of office machinery 1,655 Contractual services 548 Bad debts 2,321 75,824 Water production: Salaries and wages 57,912 Employee benefits 10,791 Operating supplies and expense 4,827 Maintenance of structures and equipment 3,230 Water - Trinity River Authority 408,019 Contingencies and other 935 485,714 Water distribution: Salaries and wages 77,122 Employee benefits 16,288 Operating supplies and expense 7,827 Maintenance of structures and equipment 25,035 Contractual services 640 Contingencies and other 15,669 142,581 CITY OF EULESS, TEXAS WATER AND SEWER ENTERPRISE FUND SCHEDULE OF OPERATING EXPENSES Year ended September 30, 1978 (Continued) 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 Contingencies and other Nondepartmental: Employee benefits Operating supplies and expense Contractual services 41 SCHEDULE 5 $ 53,293 12,264 5,777 6,084 1,055 102,869 20,520 201,862 122 17,355 94,320 111,797 Total operating expenses, excluding depreciation and interest expense $1,017,778 42 TABLE 1 Fiscal year 1974 1975 1976 1977 1978 CITY OF EULESS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS Last five years Total tax levy $1,173,599 1,237,576 1,285,139 1,604,752 1,630,303 Current tax collections $1,070,877 1,136,105 1,179,161 1,456,507 1,507,458 Percent of levy collected 91.25% 91.80 91.75 90.76 92.46 Delinquent tax collections $10,072 51,805 97,107 48,244 90,383 Total tax collections $1,080,949 1,187,910 1,276,268 1,504,751 1,597,841 Percent of total tax collections to tax levy 92.11% 95.99 99.31 93.77 98.01 Outstanding delinquent taxes $141,692 190,509 188,043 283,394 306,769 Percent of delinquent taxes to tax levy 12.07% 15.39 14.63 17.66 18.82 Fiscal year 43 TABLE 2 CITY OF EULESS, TEXAS PROPERTY TAX RATES PER $100 OF ASSESSED VALUE Last five years Junior City School County State Hospital college Total 1974 .85 1.76 .86 .17 .75 .40 4.79 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 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. Payment to the School District for tax collections is based upon the number of accounts on the tax roll. 44 TABLE 3 Fiscal year 1974 1975 1976 1977 1978 CITY OF EULESS, TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Population* 24,950 26,800 27,600 27,300 26,900 Last five years Assessed value $138,068,760 145,595,360 151,191,100 170,718,300 171,894,350 Gross bonded debt $3,625,000 3,555,000 4,735,000 4,630,000 4,520,000 Less debt service funds *Estimates by North Central Texas Council of Governments $285, 211 237,135 136,255 143,138 170,049 Net bonded debt $3,339,789 3,317,865 4,598,745 4,486,862 4,349,951 Ratio of net bonded debt to assessed value 41.34 43.88 32.88 38.05 39.52 Net bonded debt per capita $133.86 123.80 166.62 164.35 161.71 CITY OF EULESS, TEXAS COMPUTATION OF DIRECT AND OVERLAPPING DEBT September 30, 1978 Jurisdiction City of Euless Grapevine Independent School District Hurst -Euless -Bedford Independent School District Tarrant County Tarrant County Hospital District Tarrant County Junior College District Total direct and overlapping debt Net debt outstanding $ 4,349,951 12,099,000 27,897,000 5,746,884 21,865,398 Percent applicable to City of Euless 100.00 9.04 25.64 5.04 5.04 5.04 45 TABLE 4 Amount applicable to City of Euless $ 4,349,951 1,093,750 7,152,791 289,643 1,102,016 $13,988,151 Fiscal year 1971 1972 1973 1974 1975 1976 1977 1978 CITY OF EULESS, TEXAS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Last Eight Years General government $139, 907 136,448 230,892 213,051 251,449 325,532 285,024 458,500 Public safety Streets $ 404,339 469,017 552,889 885,793 954,961 1,130,743 1,180,345 1,235,608 $ 65,276 78,094 107,415 146,882 159,446 166,229 177,625 201,074 Culture - recreation $138,762 156,751 193,761 280,161 329,427 373,960 367,944 422,526 46 TABLE 5 Debt service Other* $118,021 164,324 162,134 310,557 236,558 455,388 346,079 345,448 289,670 325,618 *Beginning in 1977 certain expenditures classified as nondepartmental have been reported under "other" and were previously allocated or charged directly to the several functions listed above. Fiscal year 1971 1972 1973 1974 1975 1976 1977 1978 CITY OF EULESS, TEXAS GENERAL REVENUE BY SOURCE Last Eight Years Licenses Taxes and fees $ 847,657 926,085 1,083,071 1,454,433 1,652,464 1,850,701 2,194,138 2,464,944 $40,464 31,966 35,984 27,035 12,568 24,160 56,764 37,039 Inter- governmental revenue $ 21,204 50,474 66,925 62,974 131,636 35,556 41,205 118,649 Charges for Services $13,959 14,798 27,475 24,265 23,301 31,556 27,583 27,698 Fines $ 57,002 76,101 109,720 123,847 177,918 193,293 221,650 129,240 47 TABLE 6 Miscel- laneous $ 41,288 53,180 57,000 89,196 102,820 105,850 136,185 195,110 Fiscal year 1974 1975 1976 1977 1978 CITY OF EULESS, TEXAS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Principal $155,000 70,000 220,000 105,000 110,000 Last Five Years Interest $155,557 166,558 235,388 241,079 235,448 Total debt service $310,557 236,558 455,388 346,079 345,448 Total general expenditures $1,525,887 1,695,283 1,996,464 2,300,608 2,988,774 48 TABLE 7 Ratio of debt service to general expenditures (percent) 20.35% 13.95 22.81 15.04 11.56 49 TABLE 8 CITY OF EULESS, TEXAS WATER AND SEWER REVENUE BOND COVERAGE Last Two Years Net accrual revenue: Operating revenue Investment income Operating expenses excluding depreciation and amortization: Contract charges by Trinity River Author- ity for water and sewer facility: Operations and maintenance Debt service Other Net accrual revenue available for debt service Reconciliation to net income (loss): Net income (loss) Add (deduct): Amortization of capitalized water and sewer facility contract rights Depreciation Interest on revenue bonds Transfers to General Fund 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) 1978 $2,292,519 98,665 2,391,184 510,878 504,603 506,900 1,522,381 $ 868,803 1977 $1,584,894 84,665 1,669,559 499,251 236,809 443,965 1,180,025 $ 489,534 $ 256,573 $ 124,499 234,128 201,131 150,000 (97,528) 868,803 $ $ 338,175 $ 256,107 (61,036) 124,497 214,583 206,100 100,000 (94,610) 489,534 338,175 258,631 2.57 1.45 3.39 1.89 50 TABLE 9 CITY OF EULESS, TEXAS DEBT SERVICE REQUIREMENTS TO MATURITY - GENERAL OBLIGATION BONDS Fiscal year Principal Interest Total 1979 $ 110,000 $ 229,249 $ 339,249 1980 115,000 223,362 338,362 1981 120,000 217,283 337,283 1982 130,000 210,647 340,647 1983 140,000 203,298 343,298 1984 145,000 195,538 340,538 1985 155,000 187,540 342,540 1986 165,000 179,167 344,167 1987 175,000 170,488 345,488 1988 180,000 161,577 341,577 1989 190,000 152,208 342,208 1990 195,000 142,567 337,567 1991 205,000 132,451 337,451 1992 225,000 121,302 346,302 1993 230,000 109,366 339,366 1994 260,000 96,129 356,129 1995 260,000 81,798 341,798 1996 265,000 67,487 332,487 1997 270,000 53,785 323,785 1998 170,000 43,215 213,215 1999 170,000 35,085 205,085 2000 170,000 26,955 196,955 2001 75,000 21,525 96,525 2002 75,000 18,600 93,600 2003 80,000 15,113 95,113 2004 80,000 11,392 91,392 2005 80,000 7,673 87,673 2006 85,000 3,952 88,952 $4,520,000 $3,118,752 $7,638,752 51 TABLE 10 CITY OF EULESS, TEXAS DEBT SERVICE REQUIREMENTS TO MATURITY - WATER AND SEWER REVENUE BONDS Fiscal year Principal Interest Total 1979 $ 130,000 $ 196,088 $ 326,088 1980 140,000 190,175 330,175 1981 145,000 183,800 328,800 1982 155,000 177,138 332,138 1983 160,000 170,075 330,075 1984 165,000 162,700 327,700 1985 175,000 154,960 329,960 1986 180,000 146,725 326,725 1987 200,000 138,175 338,175 1988 205,000 128,525 333,525 1989 210,000 118,650 328,650 1990 220,000 108,450 328,450 1991 165,000 97,800 262,800 1992 135,000 88,875 223,875 1993 120,000 82,800 202,800 1994 35,000 77,400 112,400 1995 130,000 75,825 205,825 1996 135,000 69,975 204,975 1997 145,000 63,900 208,900 1998 150,000 57,375 207,375 1999 120,000 50,625 170,625 2000 160,000 45,225 205,225 2001 170,000 38,025 208,025 2002 240,000 30,375 270,375 2003 190,000 19,575 209,575 2004 120,000 11,025 131,025 2005 125,000 5,625 130,625 $4,225,000 $2,689,886 $6,914,886 52 TABLE 11 Fiscal year 1974 1975 1976 1977 1978 CITY OF EULESS, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Real property Assessed Estimated value $126,976,300 131,038,410 133,439,320 152,478,400 149,618,690 actual value $195,348,154 201,597,554 205,291,262 234,582,154 230,182,600 Personal Assessed value $11,092,460 14,556,950 17,751,780 18,239,900 22,275,660 property Estimated actual value $17,065,323 22,395,308 27,310,430 28,061,384 34,270,246 Total Ratio of total assessed Assessed Estimated to total estimated value actual value actual value $138,068,760 145,595,360 151,191,100 170,718,300 171,894,350 $212,413,477 223,992,862 232,601,692 262,643,538 264,452,846 65% 65 65 65 65 CITY OF EULESS, TEXAS INSURANCE IN FORCE September 30, 1978 Fire, extended coverage and vandalism & malicious mischief, 80%o coinsurance: Library: Building Contents City Offices: Building Contents Community Center - Ector: Building Contents Fire Station - #1: Building Contents Public Safety Building: Building Contents Fire Station - #2: Building Contents Community Center - Simmons: Building Contents Vehicle Center: Building Contents Animal Control: Building Contents House - building only: 114 N. Sheppard 134 N. Sheppard 116 N. Shepoard 110 N. Sheppard Scheduled water & sewer property Expires Insurers 53 TABLE 12 Amount of insurance 12- 1-79 2 $ 234,000 12- 1-79 2 100,000 12- 1-79 2 650,000 12- 1-79 2 100,000 12- 1-79 2 272,000 12- 1-79 2 8,000 12- 1-79 2 36,000 12- 1-79 2 8,000 12- 1-79 2 500,000 12- 1-79 2 225,000 9- 3-79 2 80,000 9- 3-79 2 8,000 9-12-80 2 95,000 9-12-80 2 10,000 7- 8-80 2 150,000 7- 8-80 2 20,000 7- 8-80 2 110,000 7- 8-80 2 5,000 4-10-79 4 10,000 4-20-79 4 11,000 4-20-79 4 10,000 11-25-78 4 13,000 9- 3-79 6 466,400 54 TABLE 12 CITY OF EULESS, TEXAS INSURANCE IN FORCE September 30, 1978 (Continued) Fire, extended coverage and vandalism & malicious mischief, 80$ coinsurance: (continued) Comprehensive glass breakage: City offices, library & Ector Community Center Vehicle liability - all vehicles: Bodily Injury - 100/300,000 Property Damage - 10,000 Vehicle physical damage - fire & theft & Combined Additional Coverage (CAC -acts of God) ACV; Collision $250 ded. Amusement liability - bodily injury & property damage Public employees blanket bond: Specific employees All other employees Notary Public Bonds - various Workmen's Compensation Builders' Risk: Improvements to City Hall Expires Insurers 9-28-79 9-14-79 9-14-79 9- 3-79 2- 6-79 Various 7- 1-79 11-29-78 Insurers: 1. United States Fire Insurance Co. 2. North River Insurance Co. 3. International Insurance Co. 4. Trinity University Insurance Co. of Kansas 5. Trinity University Insurance Co. 6. Lloyds -Commonwealth Insurance Co. 1 3 3 3 5 5 3 1 Amount of insurance $ Scheduled BI100/300,000 PD 10,000 F,T,CAC ACV Coll.Ded.$250 BI 300,000 PD 10,000 7,500 2,500 Prior 8-1-77 1,000 ea After 2,500ea This statement is intended only as a descriptive summary; no expression of opinion as to the adequacy of the coverage is intended. 175,000 CITY OF EULESS, TEXAS MISCELLANEOUS STATISTICAL FACTS Date of incorporation Date of adoption of Charter Form of government: Home Rule, Council -Manager Mayor - elected at large Five council members 55 TABLE 13 February 24, 1953 July 21, 1962 Area 16.9 square miles Population: 1960 census 1970 census 1978 estimated Building permits issued: Year ended September 30, 1978 Estimated cost Full time City employees: September 30, 1978 Police protection: Number of stations Number of certified officers 4,236 19,316 26,900 183 $5,449,864 144 1 33 Fire protection: Number of stations 2 Number of certified firefighters 20 Parks and recreation: Number of swimming pools 3 Number of parks 8 Area of parks 122 acres Community buildings 2 Library volumes 40,671 Education: Elementary Schools 6 Junior High Schools 2 High School 1 56 TABLE 13 CITY OF EULESS, TEXAS MISCELLANEOUS STATISTICAL FACTS (Continued) City Water and Sewer service: Water service: Number of meters at September 30, 1978 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 Sewer connections Sewer mains Street lights Steets: Improved State highways City's ten largest taxpayers: Principal taxpayers Sotogrande Apartment Complex Reliance Telecom Electronics Co. Ector Square Apartments Southwestern Bell Telephone Co. Texas Power & Light Co. Teccor Inc. Integrated Building Corp. Paso Del Oeste Apartments Burgandy Square Apartments Western Hills Inn 5,412 4,000,000 gallons 4,500,000 gallons 8,500,000 gallons 5,570,000 gallons 3,346,000 gallons 102 miles 435 2,758,000 gallons 5,188 84 miles 493 142 miles 17.2 miles Type of business Apartments Manufacturer Apartments Utility Utility Manufacturer Land Apartments Apartments Hotel Assessed valuation $8,575,590 4,086,880 2,503,950 2,463,450 2,456,990 2,377,180 2,163,600 1,914,450 1,630,000 1,388,900 • "r„- ••• ' ••"‘ - • • ' '-r;•t : • • ' ** .4 • • 5 ; : • - • • : • • '2 • .1:1; - • " • - -• .3•/.e.,,4•41,7 -•-•- - •••%. et• - • . . ), • ,,;,t 4 !tr..... • ..f.• • •.4`;„k 1,41 4 ,t41.;-!•74 ... • "•_.....,-• ....%, -- 81:1P-'4:t• *!'1,4,:,' •...f...- - ..... • ....,..1-.1 — .="e ;•.•• 'Al• ' • •`- .....' .- ' .r;'' .t. ! 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