HomeMy WebLinkAboutFY 1977 Financial Statements and Supplementary Information - AuditCITY OF EULESS, TEXAS
F INANC IAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 1977
with
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
ARTHUR YOUNG & COMPANY
Exhibit A
Exhibit A-1
Schedule A-2
Schedule A-3
Schedule A-4
Schedule A-5
Schedule A-6
Schedule A-7
Exhibit B
Exhibit B-1
Exhibit B-2
Exhibit B-3
Schedule B-4
Schedule B-5
CONTENTS
Letter of transmittal
Report of certified public
accountants
Combined statements and
schedules
Combined balance sheet - all
funds and accounts
Notes to financial state-
ments - all funds and
accounts
Combined schedule of changes
in taxes receivable
Combined schedule of taxes
receivable by funds
Combined schedule of cash
and investments
Combined schedule of bonds
payable
Combined schedule of changes
in bonds payable
Combined schedule of cash
receipts and disburse-
ments - all funds
Financial statements
General Fund
Balance sheet
Statement of changes in
fund balance
Statement of revenues -
estimated and actual
Statement of expenditures
compared with budget
Schedule of general fund
revenues
Schedule of general fund
expenditures
Page Number
Financial Supplemental
Statements Information
1-2
3-4
5-10
16
17
18
19
11
11
12
13
14
15
20-21
22-25
Exhibit C
Exhibit C-1
Exhibit C-2
Exhibit D
Exhibit D-1
Exhibit D-2
Schedule D-3
Exhibit E
Exhibit E-1
Exhibit E-2
Exhibit E-3
Exhibit E-4
Schedule E-5
Exhibit F
Exhibit F-1
Exhibit F-2
CONTENTS
Page Number
Financial Supplemental
Statements Information
Financial statements (continued)
Debt Service Fund
Balance sheet 26
Statement of revenues,
exenditures and changes
in fund balance 27
Notes to financial state-
ments 28
Capital Projects Funds
Balance sheet 29
Statement of revenues,
expenditures and
changes in fund balances 30
Statement of cumulative
expenditures compared
with appropriations 31
Schedule of cash receipts
and disbursements
Water and Sewer Enterprise Fund
Balance sheet 33
Statement of changes in
contributions and
retained earnings 34
Statement of revenues and
expenses 35
Statement of changes in
financial position 36
Notes to financial state-
ments 37-41
Schedule of operating
expenses
Trust and Agency Funds
Balance sheet 44
Statement of changes in
in reserve and fund
balances 45
Statement of cash receipts
and disbursements 46
32
42-43
Exhibit G
Exhibit G-1
Exhibit G-2
Schedule G-3
Exhibit H
Table I
Table II
Table III
Table IV
Table V
Table VI
CONTENTS
Page Number
Financial
Statements
Financial statements (continued)
General Fixed Assets
Supplemental
Information
Statement of general fixed
assets 47
Statement of changes in
general fixed assets by
source 48
Notes to financial state-
ments 49
Schedule of general fixed
assets classified by
departments 50
General Long -Term Debt
Statement of general long-
term debt 51
Supplementary information
Tax levies and tax collec-
tions
Revenues - other than
property taxes
Expenditures for selected
functions
General obligation bonds
other than water and sewer
revenue debt service
charges
Revenue water and sewer
bonds debt service
charges
Insurance in force
Statistical information
52
53
54
55
56
57-58
Table VII Miscellaneous statistical
facts 59-61
PHONE 283-5381 . 201 N. ECTOR DRIVE . EULESS, TEXAS 76039
-eate,m
November 15, 1977
Honorable Harold Samuels,
Mayor, and City Council
City of Euless
Euless, Texas
Gentlemen:
The annual financial report of the City of Euless, Texas,
for the fiscal year ended September 30, 1977, is submitted herewith.
Accounting System and Reports
The City's accounting records for general governmental
operations are maintained on a modified accrual basis, wherein
revenues are reported primarily when collected and expenditures
when incurred. Accounting records for the City's utility are
maintained on a full accrual basis. In accordance with prescribed
standards, depreciation of general fixed assets is not recognized in
the City's accounting system; however, depreciation on the depreciable
property of the Water and Sewer Enterprise Fund is recognized in the
accounts and is computed on the expected useful lives of the assets.
All operating funds of the City function under an annual
budget which shows estimated revenues and authorized expenditures
by funds.
On October 19, 1976 the Municipal Finance Officers
Association of the United States and Canada awarded its Certificate
of Conformance for financial reporting for the annual financial
report of the City of Euless for the year ended September 30, 1975.
This report was judged to substantially conform to the high standards
for financial reporting promulgated by that Association and the
National Council on Governmental Accounting. We believe our present
annual report continues to substantially conform to such standards.
In order to maintain the validity of the Certificate of Conformance
this report will be submitted to MFOA for an annual review. A
Certificate of Conformance was first awarded to this governmental
unit for its annual financial report the fiscal year ended
September 30, 1964.
EULESS MY CHO10E, YOUR OPPORTUNITJ
General Comments
Information as to the City's tax assessments and collec-
tions, bonded indebtedness, insurance in force, water and sewer
revenue bond coverage and other miscellaneous data is contained in
tables under "Statistical Data" in the annual financial report.
The significant net changes during the year in the balances of the
principal operating funds of the City may be summarized as follows:
General Fund:
Cash and investments
Total revenues
Total expenditures
Water and Sewer Enterprise Fund:
Cash and investments
operating
Retained earnings, reserves
and contributions
1977 1976
$ 544,035 $ 356,416
$2,3244aaa l.1_,888a,aDa
$2,300,608 $1,996.464
$ 565.371 525.5q1
Increase
(decrease)
$187,619
$437.955
$304 , 1 44
$ 39,840
$4,088,565 $3,919,737 $1681828
Securities have been pledged by depository banks sufficient
to secure the City's funds on deposit with such banks.
Ordinances authorizing the issuance of the City's water and
sewer revenue bonds have been read and in accordance with the require-
ments of such ordinances, a total of $100,000 has been restricted for
emergencies. Other reserve and accounting requirements of the
ordinances have been met.
The City has retired a total of $1,650,000 of revenue bonds
with proceeds from the sale of water and sewer facilities to the City
of Bedford, and $423,288 of principal proceeds remains on deposit
with the City's paying agent in New York City.
Independent Audit
The books of account, financial records and transactions of
all administrative departments of the City are subject to audit
annually by certified public accountants selected by the City Council.
The report of Arthur Young & Company, Certified Public Accountants,
is included with this report.
Respectfully submitted,
ames R. Hickerson
Director of Finance
ARTHUR YOUNG & COMPANY
2200 FORT WORTH NATL. BANK BLDG.
FORT WORTH, TEXAS 76102
Honorable Harold Samuels,
Mayor, and City Council
City of Euless
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, 1977, 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, 1976, 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,
1976. 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, 1977 and the
financial position of the Water and Sewer Enterprise Fund at
September 30, 1976, 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 September 30, 1976 financial
statements of the Water and Sewer Enterprise Fund and General Fixed
Assets account group to give retroactive effect to corrections of
prior year fixed asset capitalization and depreciation errors as
discussed in Note 5, Exhibit E-4 and Note 1, Exhibit G-2.
0ur examinations have been made primarily for the purpose
of expressing an opinion on the financial statements, taken as a
whole. The accompanying supplementary information (Schedules and
Tables) and the column on the accompanying combined balance sheet
captioned "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.
Except for the statistical data in Table VII, it has been subjected
to the tests and other auditing procedures applied in the examina-
tions of the financial statements mentioned above and, in our
opinion, is fairly stated in all respects material in relation to
the financial statements taken as a whole. The statistical infor-
mation in Table VII was not examined by us and, accordingly, we
do not express an opinion on it.
In connection with our examinations, nothing came to
our attention that caused us to believe that the City was not
in compliance with any of the terms or requirements of the
bond ordinances under which the City's general obligation and
water and sewer revenue bonds were issued. However, it should
be noted that our examinations were not directed primarily
toward obtaining knowledge of such noncompliance.
November 15, 1977
COMBINED STATEMENTS AND SCHEDULES
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNTS
September 30, 1977
ASSETS AND OTHER DEBITS
Cash and short-term investments
Taxes receivable
Assessments receivable
Accounts receivable (net)
Inventory
Restricted
Cash and
Cash and
Interest
assets:
short-term investments
investments with paying agent
receivable on investments
Land and buildings
Improvements other than buildings
Equipment
Construction in progress
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
General
Fund
$544,035
217,080
4,404
7,479
Debt
Service
Fund
$143,138
66,314
Funds
Capital
Projects
Funds
Water and
Sewer
Enterprise
Fund
$1,269,311 $ 565,371
12,959
103,413
338,655
777,336
5,384
1,013,291
5,956,722
82,755
Trust
and
Agency
Funds
$113,018
10
Nonfund Accounts
General
Fixed
Assets
1,610,445
4,284,213
973,503
226,428
General
Long-term
Debt
143,138
4,486,862
$772,998 $209,452 $1,282,270. $8,842„927 $113,028 $7,094,589 $4,630,000
Total
(memorandum
only)
$ 2,634,873
283,394
12,959
107,827
7,479
338,655
777,336
5,384
2,623,736
10,240,935
1,056,258
226,428
143,138
4,486,862
$22,945.264
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNTS
September 30, 1977
(Continued)
LIABILITIES
Payroll taxes and other payables
Customer and developers
Accrued revenue bond interest payable
Bonds payable
Total liabilities
Deferred revenues
RESERVES AND FUND BALANCES/RETAINED EARNINGS
Reserve for uncollected taxes and assessments
Reserve for unexpended grants
Reserve for inventory
Investment in general fixed assets
Fund balances
Contributions from subdividers and others
Retained earnings:
Reserve for revenue bond debt service
Reserve for revenue bond retirement
Reserve for contingency
Unappropriated
Total liabilities, reserves and
fund balances/retained earnings
Debt
General Service
Fund Fund
$107,244 $
4,215
111,459
Funds
Capital
Projects
Funds
Water and
Sewer
Enterprise
Fund
- $ 10,976
122,676
42,037
4,350,000
217,080 66,314 12,959
398
7,479
436,582 143,138 1,269,311
4,525,689
228,673
1,843,368
79,388
274,660
523,288
1,367,861
Trust
and
Agency
Funds
$ 51,042
49,393
100,435
12,593
Nonfund Accounts
General
Fixed
Assets
7,094,589
General
Long-term
Debt
Total
(memorandum
only)
$ - $ 169,262
176,284
42, 037
4,630,000 8,980,000
4,630,000 9,367,583
228,673
296,353
398
7,479
7,094,589
1,861,624
1,843,368
79,388
274,660
523,288
1,367,861
$772,998 $209,452 $1,282,270 $8,842,927 $113.028 $7.094,589 $4,630,000 $22945.264
See notes to financial statements - All Funds and Accounts.
EXHIBIT A
5
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS
September 30, 1977
1. Summary of accounting policies
A summary of the significant accounting policies is
presented below to assist the reader in evaluating the financial
statements and other information contained in this report.
a. Description of funds
The City has established a number of funds, generally
in conformity with the recommendations of the National
Council on Governmental Accounting, for the purpose of
accounting for transactions in compliance with legal
requirements.
The following types of funds and groups of
accounts are used by the City in accounting for its
financial activities.
General Fund - to account for all of the
general revenues of the City not specifically
levied or collected for other City funds, and
for expenditures related to rendering of
general services by the City;
EXHIBIT A-1
6
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS
September 30, 1977
1.. Summary of accounting policies (continued)
a. Description of funds (continued)
Debt Service Fund - to account for the accumulation
of resources for, and payment of, matured interest and
principal on long-term debt for which legal sinking fund
requirements exist, except for such liabilities as are
payable from and recorded in the Enterprise Fund;
Capital Projects Funds - to account for the
acquisition of capital facilities being financed from
bond proceeds, grants, assessments, or transactions
from other funds, other than those recorded in the
Enterprise Fund;
Enterprise Fund - to account for the acquisition,
operation, and maintenance of a municipal utility,
supported principally by user charges to the public;
Trust and Agency Funds - to account for assets
received and held by the City as trustee or agent for
individuals, organizations, and other funds within
the City;
EXHIBIT A-1
7
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS
September 30, 1977
1. Summary of accounting policies (continued)
a. Description of funds (continued)
General Fixed Assets Accounts - to account for
property and equipment of the City used in the perfor-
mance of general governmental functions, and not acquired
and accounted for in the Enterprise Fund;
General Long -Term Debt Accounts - to account for
the unmatured principal of outstanding bonds, except
those recorded in the Enterprise Fund.
b. Basis of accounting
The Accrual Basis - The City uses the accrual basis
of accounting whereby revenue is recorded when accrued
and expenditures when incurred. Revenues which are not
both measurable and available for use during the year
are recorded when received. Interest on general long-
term debt is recorded when due.
c. Investments
The City pools idle cash from all funds for the
purpose of increasing income through investment activities.
Investments are carried at cost which approximates market
value.
EXHIBIT A-1
8
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS
September 30, 1977
1. Summary of accounting policies (continued)
d. Taxes receivable
Property taxes are levied and collected by the
Hurst -Euless -Bedford Independent School District and
remitted to the City periodically. Taxes receivable
consist primarily of property taxes which have not been
collected and remitted to the City by the collecting
agent.
e. Inventories
Inventories consist of refuse bags purchased for
resale to the public. Inventories are valued at cost.
f. Property, plant and equipment
Property, plant and equipment is recorded at cost
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
recorded as expenditures. Significant renovations and
improvements are capitalized.
EXHIBIT A-1
9
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS
September 30, 1977
1. Summary of accounting policies (continued)
g. Depreciation
Depreciation is recorded on each class of depreciable
property in the 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
h. Retirement Plan
All eligible full-time City employees are members of the
City's retirement plan, administered by the Texas Municipal
Retirement System.
The City's policy is to fund all pension costs accrued.
2. Restricted assets
Restricted assets consist of cash, investments and
receivables restricted primarily for Enterprise Fund debt service
and water and sewer system replacements.
3. Bonds payable
Bonded debt authorized and outstanding at September 30,
1977 consists of the following:
EXHIBIT A-1
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS - ALL FUNDS AND ACCOUNTS
September 30, 1977
3. Bonds payable (continued)
General Long-
term Debt
Range of
interest
rates
Unpaid
balance
@ 9-30-77
Less current
maturities
3.6 to 7.5% $4,630,000 $110,000
Water and Sewer
Revenue Bonds 4.5 to 6% 4,350,000
$8,980,000
10
Long-term
maturities
$4, 520, 000
125,000 4,225,000
1235,000 $8,745,000
General Obligation Bonds authorized and unissued as of
September 30, 1977, amounted to $3,945,000. Water and Sewer
Revenue Bonds authorized and unissued as of September 30, 1977,
amounted to $4,200,000.
4. Retirement contributions
The City's contribution to the City of Euless Retire-
ment Plan, administered by the Texas Municipal Retirement
System, during the year ended September 30, 1977, amounted to
approximately $55,000. The General Fund contribution approxi-
mated $47,000 and the Enterprise Fund contribution approximated
$8,000.
Based on an actuarial valuation made as of December 31,
1976, the City's pension fund assets are in excess of the
related actuarially computed value of vested benefits.
EXHIBIT A-1
CITY OF EULESS, TEXAS
COMBINED SCHEDULE OF CHANGES IN TAXES RECEIVABLE
Year ended September 30, 1977
Balance at beginning of year
Add:
Taxes levied
Transfers from current taxes
Deduct:
Collections
Transfers to delinquent taxes
Adjustments
Balance at end of year
Total
$ 188,043 $
1,604,752
144,814
1,937,609
1,508,386
144,814
1,015
1,654,215
$ 283,394 $
SCHEDULE A-2
11
Current Delinquent
taxes taxes
1,604,752
$188,043
144,814
1,604,752 332,857
1,459,591
144,814
347
1,604,752
CITY OF EULESS, TEXAS
COMBINED SCHEDULE OF TAXES RECEIVABLE BY FUNDS
September 30, 1977
Delinquent taxes receivable:
General Fund
Debt Service Fund
SCHEDULE A-3
48,795
668
49,463
$283,394
$217,080
66,314
$283,394
CITY OF EULESS, TEXAS
COMBINED SCHEDULE OF CASH AND INVESTMENTS
September 30, 1977
Combined bank balances and investments:
Bank accounts:
First National Bank of Euless:
Consolidated account
Trust and Agency account
Certificates of deposit
Payroll
Savings
Banker's Trust Company, New York:
Water and Sewer Revenue bond
reserve account
Water and Sewer Revenue bond
sinking fund account
Total on deposit with banks
Petty cash funds
Total cash
Investments in U. S. Government
securities (held by Bankers
Trust Company, New York):
Water and Sewer Revenue bond
reserve
Water and Sewer Fund - property
sales proceeds account
Investments in U. S. Government
securities (held in safekeeping
by Mercantile National Bank,
Dallas, Texas):
Water and Sewer Fund
operating account
General Fund
Amount
Securities
guaranty
$ 127,195 $
63,625
2,500,000
500
100
2,691,420
8,447
79,388
87,835
2,779,255 $3.170.000.
565
2,779,820
3,170, 000
266,213
423,288
93,883
187,660
$3.750.864
12
Deposit
insurance
guaranty.
$ 40,000
40,000
40,000
500
100
120,600
8,447
79,388
87,835
$208.435
Securities guaranty is composed of general obligations of various
local, state and national governmental bodies which have been
placed with a third party by the depository bank as security for
deposits of the City of Euless.
SCHEDULE A-4
Cash and investments by fund:
Funds:
General Fund:
Operations
Payroll
General Debt Service Fund
Capital Projects Funds:
Park and recreation
Street and drainage
Revenue sharing
Public safety
Water and Sewer Enterprise
Fund:
Operating
Restricted:
Revenue bond debt service
Revenue bond reserve
Revenue bond contingency
Property sale proceeds
account
Capital projects account
Customer deposits
Trust and Agency Funds:
Escrow
Social security
Total all funds
Demand accounts
Time deposits
Petty cash funds
U. S.
Treasury
obligations
$187,660
187,660
93,883
266,213
423,288
783,384
$971,044
Cash and
certificates
of deposit
$ 355,875
500
356,375
143,138
192,700
581,987
27,299
467,325
1,269,311
471,488
79,388
8,447
100,000
115,979
122,676
897,978
49,393
63,625
113,018
$2,779,820
$ 279,255
2,500,000
565
$2,779,820
Total
$ 543,535
500
544,035
143,138
192,700
581,987
27,299
467,325
1,269,311
565,371
79,388
274,660
100,000
423,288
115,979
122,676
1,681,362
49,393
63,625
113,018
$3,750,864
CITY OF EULESS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
September 30, 1977
Description
Bonds authorized
Bonds issued:
General Obligation Bonds:
Series 1964
Series 1965
Series 1966
Series 1968
Series 1971
Series 1973
Series 1975
Water and Sewer Revenue Bonds:
Series 1965
Series 1967
Series 1971
Total issued and outstanding
Balance authorized - unissued
Rates of interest
3.6% to 3.875%
3.85% to 5%
4.65%
4.5% to 5%
4% to 5.4%
5% to 6.5%
5% to 7.5%
4.5% to 5.5%
4.5%
4.75% to 6%
SCHEDULE A-5
Dates
9-28-64
7- 1-65
7- 1-66
7- 1-68
5-28-71
12- 1-73
11- 1-75
7-15-65
1-15-67
5-28-71
13
Street
and
drainage
$4,395,000
430,000
295,000
205,000
200,000
350,000
1,000,000
400,000
2,880,000
Public
buildings
$1,490,000
470,000
160,000
120,000
40,000
700,000
1,490,000
2,880,000 1,490,000
11, 515000 $ -
Bonds
Parks
$3,490,000
100,000
75,000
75,000
100,000
110,000
300,000
300,000
1,060,000
Water
and
sewer
Total
$10,800,000 $20,175,000
- 1,000,000
530,000
400,000
300,000
500,000
1,300,000
1,400,000
- 5,430,000
- 3,600,000
2,200,000
800,000
1,060,000
$2,430.000
6,600,000
6,600,000
$ 4 .200 ,0 00
3,600,000
2,200,000
800,000
6,600,000
12,030,000
$ 81145L000
Balance
outstanding
9-30-77
$ 705,000
530,000
400,000
255,000
350,000
1,170,000
1,220,000
4,630,000
2,490,000
1,230,000
630,000
4,350,000
$8,980,000
CITY OF EULESS, TEXAS
COMBINED SCHEDULE OF CHANGES IN BONDS PAYABLE
Year ended September 30, 1977
General obligation bonds
Water and sewer revenue bonds
Balance
9-30-76
Total
retired
14
Balance
9-30-77
$4,735,000 $105,000 $4,630,000
4,470,000 120,000 4,350,000
$9,205,000 $225,J)00 $8,980,000
SCHEDULE A-6
CITY OF EULESS, TEXAS
COMBINED SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS - ALL FUNDS
Year ended September 30, 1977
General Fund
Debt Service Fund
Capital Projects
Funds
Water and Sewer
Enterprise Fund
Trust and Agency
Funds
Total - all funds
Cash
balances
10-1-76 Receipts
$ 167,533 $2,991,630
136,255
1,862,575
1,043,429
85,671 1,301,125
352,962
Disbursements
$2,802,788
346,079
197,482 790,746
2,352,110 2,497,561
1,273,778
15
Cash
balances
9-30-77
$ 356,375
143,138
1,269,311
897,978
113,018
$3,295,463 $7,195,309 $7,710,952 $2,779,820
SCHEDULE A-7
GENERAL FUND
CITY OF EULESS, TEXAS
GENERAL FUND
BALANCE SHEET
September 30, 1977
ASSETS
Cash and short-term investments
Taxes receivable
Accounts receivable, State of Texas
Accounts receivable, other
Inventory
LIABILITIES, RESERVES AND FUND BALANCE
Liabilities:
Accounts payable
Escrow deposits
Court costs collected for State of Texas
Total liabilities
Reserve for uncollected taxes
Reserve for unexpended grants
Reserve for inventory
Fund balance
16
$544,035
217,080
4,288
116
7,479
$772,998
$105,667
4,215
1,577
111,459
217,080
398
7,479
436,582
$772,998
See notes to financial statements - All Funds and Accounts.
EXHIBIT B
17
CITY OF EULESS, TEXAS
GENERAL FUND
STATEMENT OF CHANGES IN FUND BALANCE
Year ended September 30, 1977
Fund balance, October 1, 1976 $349,973
Add:
Excess of revenues over expenditures:
Revenues
Expenditures
Transfer from Water and Sewer
Enterprise Fund
Deduct:
Increase in inventory reserve
Transfer to Escrow Fund
$2,324,563
2,300,608
7,479
29,867
23,955
100,000
473,928
37,346
Fund balance, September 30, 1977 $436,582
See notes to financial statements - All Funds and Accounts.
EXHIBIT B-1
CITY OF EULESS, TEXAS
GENERAL FUND
STATEMENT OF REVENUES - ESTIMATED AND ACTUAL
Year ended September 30, 1977
General property taxes
Gross receipts taxes
General sales taxes
Licenses and permits
Fines and fees
Interest income
Other revenues
General Fund revenues
Estimated Actual
revenues revenues
18
Actual
over
(under)
$1,144,482 $1,167,515 $ 23,033
264,625 326,802 62,177
255,000 346,859 91,859
24,725 56,764 32,039
177,500 221,650 44,150
55,000 124,545 69,545
61,917 80,428 18,511
$1,983,249 $2,324,563 $341,314
See notes to financial statements - All Funds and Accounts.
EXHIBIT B-2
19
CITY OF EULESS, TEXAS
GENERAL FUND
STATEMENT OF EXPENDITURES - COMPARED WITH BUDGET
Year ended September 30, 1977
Actual
(over)
Budget Expenditures under
City Council $ 10,500 $ 8,474 $ 2,026
General Government 82,775 81,331 1,444
Civil Service 12,170 9,672 2,498
Community Service 27,812 24,228 3,584
Police Department 728,338 701,286 27,052
Legal and Corporation Court 76,355 79,821 (3,466)
Fire Department 429,886 413,777 16,109
Street Department 204,592 177,625 26,967
Traffic and Safety 43,296 41,054 2,242
Building and Zoning 67,096 58,180 8,916
Library 112,798 87,540 25,258
Recreation Department 64,114 60,071 4,043
Park Department 144,018 143,134 884
Pools 45,320 36,947 8,373
Community Building 58,115 40,252 17,863
Civic Center 49,784 47,546 2,238
Nondepartmental 296,910 289,670 7,240
General Fund expenditures $2,453,879 $2,300,608 $153,271
See notes to financial statements - All Funds and Accounts.
EXHIBIT B-3
CITY OF EULESS, TEXAS
GENERAL FUND
SCHEDULE OF GENERAL FUND REVENUES
Year ended September 30, 1977
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
revenues
$1,102,672
26,810
15,000
1,144,482
Actual
revenues
$1,114,962
36,827
15,726
1,167,515
20
Actual
over
(under)
$ 12,290
10,017
726
23,033
50,000 77,808 27,808
155,000 171,098 16,098
40,000 50,419 10,419
6,500 7,359 859
13,000 19,790 6,790
125 328 203
264,625 326,802 62,177
255,000 346,859 91,859
10,000 18,480 8,480
3,200 8,450 5,250
5,500 8,763 3,263
1,000 2,098 1,098
1,000 10,986 9,986
825 3,558 2,733
3,200 4,429 1,229
24,725 56,764 32,039
175,000 219,741 44,741
2,500 1,909 (591)
177,500 221,650 44,150
SCHEDULE B-4
CITY OF EULESS, TEXAS
GENERAL FUND
SCHEDULE OF GENERAL FUND REVENUES
Year
Interest income
ended September 30, 1977
(Continued)
Other revenues:
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 all revenues
Estimated
revenues
$ 55,000
2,000
5,467
3,000
1,000
10,850
17,000
600
22,000
61,917
$1,983,249
Actual
revenues
$ 124,545
2,590
5,740
3,000
1,052
11,640
32,465
955
22,986
80,428
$2,324,563
21
Actual
over
(under)
$ 69,545
590
273
52
790
15,465
355
986
18,511
$341,314
SCHEDULE B-4
22
CITY OF EULESS, TEXAS
GENERAL FUND
SCHEDULE OF GENERAL FUND EXPENDITURES
Year ended September 30, 1977
Actual
(over)
Budget Expenditures under
City Council:
Supplies $ 5,500 $ 2,071 $ 3,429
Other services and charges 5,000 6,403 (1,403)
10,500 8,474 2,026
General Government:
Personnel services 64,775 62,434 2,341
Supplies 3,000 1,884 1,116
Maintenance 1,500 1,293 207
Other services and charges 12,650 14,881 (2,231)
Capital outlays 850 839 11
82,775 81,331 1,444
Civil Service:
Personnel services 8,300 9,029 (729)
Supplies 500 50 450
Other services and charges 3,370 593 2,777
12,170 9,672 2,498
Community Services:
Personnel services 20,882 17,676 3,206
Supplies 730 716 14
Maintenance 500 185 315
Other services and charges 5,700 5,651 49
Law Enforcement:
Police Department:
Personnel services
Supplies
Maintenance
Other services and charges
Capital outlays
27,812 24,228 3,584
616,572
40,006
16,300
20,810
34,650
728,338
591,421
40,958
18,771
16,200
33,936
701,286
25,151
(952)
(2,471)
4,610
714
27,052
SCHEDULE B-5
CITY OF EULESS, TEXAS
GENERAL FUND
SCHEDULE OF GENERAL FUND EXPENDITURES
Year ended September 30, 1977
(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
23
Actual
(over)
Budget Expenditures under
$ 45,825 $ 50,601 $ (4,776)
1,850 2,466 (616)
1,150 465 685
23,280 22,289 991
4,250 4,000 250
76,355 79,821 (3,466)
804,693 781,107 23,586
395,961 385,980 9,981
13,950 11,740 2,210
13,000 11,636 1,364
4,975 3,327 1,648
2,000 1,094 906
429,886 413,777 16,109
120,567 92,834 27,733
13,450 12,943 507
38,300 70,702 (32,402)
7,275 88 7,187
25,000 1,058 23,942
204,592 177,625 26,967
Traffic Safety Administration:
Personnel services 18,396 18,333 63
Supplies 2,700 1,286 1,414
Maintenance 21,500 20,635 865
Other services and charges 700 800 (100)
43,296 41,054 2,242
SCHEDULE B-5
CITY OF EULESS, TEXAS
GENERAL FUND
SCHEDULE OF GENERAL FUND EXPENDITURES
Year ended September 30, 1977
(Continued)
Building and Zoning Department:
Personnel services
Supplies
Maintenance
Other services and charges
Library:
Person.ne'1 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
Budget Expenditures
$ 57,099
2,297
650
7,050
67,096
67,702
2,800
3,700
18,096
20,500
112,798
56,164
3,300
250
3,200
1,200
64,114
93,893
10,500
15,500
825
23,300
144,018
$ 48,611
2,468
1,112
5,989
58,180
63,902
2,223
938
7,518
12,959
87,540
52,454
3,513
116
2,261
1,727
60,071
91,035
13,228
16,681
810
21,380
24
Actual
(over)
under
$ 8,488
(171)
(462)
1,061
8,916
3,800
577
2,762
10,578
7,541
25,258
3,710
(213)
134
939
(527)
4,043
2,858
(2,728)
(1,181)
15
1,920
143,134 884
SCHEDULE B-5
25
CITY OF EULESS, TEXAS
GENERAL FUND
SCHEDULE OF GENERAL FUND EXPENDITURES
Year ended September 30, 1977
(Continued)
Actual
(over)
Budget Expenditures under
Pools:
Personnel services $ 36,120 $ 30,780 $ 5,340
Supplies 5,250 4,136 1,114
Maintenance 3,000 1,808 1,192
Other services and charges 950 223 727
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
Total all departments
45,320 36,947 8,373
34,906 33,617 1,289
2,250 2,109 141
800 402 398
17,784 1,641 16,143
2,375 2,483 (108)
58,115 '40,252 17,863
31,130 31,263 (133)
3,600 5,045 (1,445)
12,750 8,997 3,753
2,304 2,241 63
49,784 47,546 2,238
65,000 65,000
10,500 10,585 (85)
221,410 192,930 28,480
21,155 (21,155)
296,910 289,670 7,240
$2,453,879 $2,300,608 $153,271
SCHEDULE B-5
DEBT SERVICE FUND
CITY OF EULESS, TEXAS
DEBT SERVICE FUND
BALANCE SHEET
September 30, 1977
ASSETS
Cash and short-term investments
Taxes receivable
RESERVES AND FUND BALANCE
Reserve for uncollected taxes
Fund balance
See notes to financial statements - Exhibit C-2.
EXHIBIT C
26
$143, 138
66,314
$209,452
$ 66,314
143,138
$209,452
CITY OF EULESS, TEXAS
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year ended September 30, 1977
Revenues:
General property taxes and penalties
and interest collected
Expenditures:
Interest on bonds
Matured bonds
Service charges
Excess of revenues over expenditures
Fund balance, October 1, 1976
Fund balance, September 30, 1977
$240,655
105,000
424
See notes to financial statements - Exhibit C-2.
27
$352,962
346,079
6,883
136,255
$143, 138
EXHIBIT C-1
28
CITY OF EULESS, TEXAS
DEBT SERVICE FUND
NOTES TO FINANCIAL STATEMENTS
Year ended September 30, 1977
Accounting policies
See notes to financial statements - All Funds and
Accounts.
1. Fund balance
The general obligation bond ordinances do not require
a specific balance to be maintained in the Fund; however, the
fund balance is to be used for future bond principal and interest
requirements.
EXHIBIT C-2
CAPITAL PROJECTS FUNDS
29
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUNDS
BALANCE SHEET
September 30, 1977
Street
Improvement Park and Service Revenue Public
and Drainage Recreation Center Sharing Safety
ASSETS Total Fund Fund Fund Fund Fund
Cash and short-term
investments
Assessments receivable
RESERVES AND
FUND BALANCES
Reserve for uncollected
assessments
Fund balances -
appropriated
$1,269,311 $581,987 $192,700 $ - $27,299 $467,325
12,959 12,959
$1,282,270 $594.946 $192.700 $ - $27.299 $467,325
$ 12,959 $ 12,959 - $ $
1,269,311 581,987 192,700 27,299 467,325
$1,282,270 594,946 $192,700 $ - $27,299 $467.325
See notes to financial statements - All Funds and Accounts.
EXHIBIT D
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
Year ended September 30, 1977
Total
30
Street
Improvement Park and Service Revenue Public
and Drainage Recreation Center Sharing Safety
Fund Fund Fund Fund Fund
Revenues:
Interest income $ 5,884 $ - $ - $ - $ 5,884 $
Paving assessments 2,442 2,442
Federal Revenue Sharing 189,156 189,156
197,482 2,442 - - 195,040
Expenditures:
Capital outlays 637,260 12,906 34,474 40,000 323,451 226,429
Excess of expenditures
over revenues 439,778 10,464 34,474 40,000 128,411 226,429
Fund balances,
October 1, 1976 1,709,089 592,451 227,174 40,000 155,710 693,754
Fund balances,
September 30, 1977 $1,269,311 $581,987 $192,700 $ - $ 27,299 $467.325
See notes to financial statements - All Funds and Accounts.
EXHIBIT D-1
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUNDS
STATEMENT OF CUMULATIVE EXPENDITURES
COMPARED WITH APPROPRIATIONS
Year ended September 30, 1977
Amount appropriated:
From:
Bonds sold
Paving assessments
Other participation
Matching grants-in-aid
Advances from other funds
Revenue sharing grants
Interest
Less expenditures:
Of prior fiscal periods
Of this period
Fund balances - appropriated
Total
$4,680,000
307,045
129,818
80,000
82,341
752,056
19,399
6,050,659
4,144,088
637,260
4,781,348
$1,269,311
Street
Improvement
and Drainage
Fund
$2,880,000
307,045
129,748
3,316,793
2,721,900
12,906
2,734,806
$ 581,987
31
Park and
Recreation
Fund
Service Revenue
Center Sharing
Fund Fund
$1,060,000 $40,000
70
80,000
82,341
$
752,056
19,399
1,222,411 40,000 771,455
995,237 - 420,705
34,474 40,000 323,451
1,029,711 40,000 744,156
$ 192,700 $ - $ 27,299
See notes to financial statements - All Funds and Accounts.
Public
Safety
Fund
$700,000
700,000
6,246
226,429
232,675
$467,325
EXHIBIT D-2
32
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUNDS
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Year ended September 30, 1977
Cash and short-term investments,
beginning of year
Receipts:
Interest income
Paving assessments
Revenue sharing grant
Disbursements:
Capital outlay
Cash and short-term investments,
end of year
Total
Street
Improvement
and Drainage
Fund
$1,862,575 $592,451
Park and
Recreation
Fund
Service
Center
Fund
Revenue
Sharing
Fund
Public
Safety
Fund
$227,174 $40,000 $309,196 $693,754
5,884 - - - 5,884
2,442 2,442
189,156 189,156
2,060,057 594,893 227,174 40,000 504,236
790,746 12,906 34,474 40,000 476,937
$1 L269, 311 $581 , 987 $192, 700 $ - 27 299
SCHEDULE D-3
693,754
226,429
$467,325
WATER AND SEWER ENTERPRISE FUND
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
BALANCE SHEET
September 30, 1977 and 1976
ASSETS
Current assets:
Cash and short-term investments
Accounts receivable, less allowance
for estimated uncollectable accounts
of $770 ($371 in 1976)
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 1)
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: (Note 5)
Land
Equipment
Water and sewer system
Less allowance for depreciation
Net utility plant in service
33
1977 1976
$ 565,371 $ 525,531
114,302
639,833
79,388 79,388
8,447
266,213
100,000
423,288
319,533
103,413
668,784
8,447
266,213
100,000
423,288
115,979
122,676
5,384
1,121,375
1,013,291
112,045
7,555,416
8,680,752
1,627,984
7,05 2,768
$8,842,927
107,916
5,384
1,310,169
1,013,291
89,989
7,224,206
8,327,486
1,413,402
6,914,084
$8, 864, 086
LIABILITIES, RESERVES, CONTRIBUTIONS
AND RETAINED EARNINGS
Current liabilities:
Payable from current assets:
Revenue bonds payable within one year
Accounts payable
Payable from restricted assets:
Customer deposits
Accrued revenue bond interest payable
Total current liabilities
Other liabilities, payable after one year:
(Note 3)
Revenue bonds (Note 1)
Total liabilities
Deferred revenues
Commitments: (Note 2)
System equity:
Contributions:
From subdividers
From Environmental Protection Agency
From Trinity River Authority
Total contributions
Retained earnings:
Reserves: (Note 3)
Reserve for revenue bond debt service,
next maturing
Reserve for revenue bond retirement
Reserve for contingency
Total reserves
Unappropriated (Note 5)
Total retained earnings
1977
1976
$ 125,000 $ 120,000
10,976 86,786
122,676
42,037
300,689
4,225,000
4,525,689
228,673
1,588,751
239,617
15,000
1,843,368
79,388
274,660
523,288
877,336
1,367,861
2,245,197
$8,842,927
See notes to financial statements - Exhibit E-4.
EXHIBIT E
107,916
43,174
357,876
4,350,000
4,707,876
236,473
1,388,776
239,617
15,000
1,643,393
79,388
274,660
523,288
877,336
1,399,008
2,276,344
$8,864,086
34
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
STATEMENT OF CHANGES IN CONTRIBUTIONS AND RETAINED EARNINGS
Years ended September 30, 1977 and 1976
Contributions from subdividers:
Balance, beginning of year, as
previously reported
Adjustment of utility plant in
service (Note 5)
Balance, beginning of year, as restated
Add: Capital contributions from
subdividers
Balance, end of year
Contributions from Environmental Protection
Agency:
Balance, beginning of year
Add: E.P.A. Grant for capital additions
Balance, end of year
Contributions from Trinity River Authority:
Balance, beginning and end of year
Retained earnings - unappropriated:
Balance, beginning of year, as
previously reported
Adjustment of utility plant in
service (Note 5)
Reclassification of property sale
proceeds accounts as appropriation
of retained earnings (Note 5)
Balance, beginning of year, as restated
Add: Net income
Deduct:
Increase in reserve for
revenue bond debt service
Transfer to General Fund
Balance, end of year
1977
$1,277,459
111,317
1,388,776
199,975
$1.588.751
1976
$1,131,473
149,135
1,280,608
108,168
$1.388.776
$ 239,617 $ 209,925
29,692
$ 239.617 $ 239,617
$ 15,000 $ 15,000
$1,210,911 $1,141,355
611,385
(423,288)
1,399,008
68,853
1,467,861
100,000
100,000
$1,367,861
See notes to financial statements - Exhibit E-4.
575,297
(423,288)
1,293,364
167,044
1,460,408
42,872
18,528
61,400
S1,399,008
EXHIBIT E-1
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
STATEMENT OF REVENUES AND EXPENSES
Years ended September 30, 1977 and 1976
Operating revenues:
Water sales
Sewer services
Water and sewer tap fees
Service fees and miscellaneous
Operating expenses excluding
depreciation
Net operating revenues
excluding depreciation
Nonoperating revenues:
Investment income
Income available for debt
service
Depreciation (straight-line basis,
15 years for equipment and 33-1/3
years for the system)
Nonoperating expenses:
Interest on revenue bonds
Net income
1977
$1 , 007, 083
497,471
15,412
64,928
1,584,894
1,180,023
404,871
84,665
489,536
214,583
274,953
206,100
35
Increase
1976 (decrease)
$ 961,914 $
485,629
6,025
52,839
1,506,407
999,803
506,604
75,928
582,532
204,102
378,430
211,386
45,169
11,842
9,387
12,089
78,487
180,220
(101,733)
8,737
(92,996)
10,481
(103,477)
(5,286)
$ 68,853 $ 167,044 $ (98,191)
See notes to financial statements - Exhibit E-4.
EXHIBIT E-2
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
Years ended September 30, 1977 and 1976
Funds provided:
Operations:
Net income for the year
Expenses not requiring outlay of funds:
Depreciation
Total funds provided from operations
Contributions in aid to construction
Decrease in restricted funds
Total funds provided
Funds used:
Additions to utility plant in service
Payment of long-term debt
Decrease in deferred revenue
Increase in restricted funds
Transfer to General Fund
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
Increase (decrease) in current liabilities:
Revenue bonds payable within one year
Accounts payable
Customer deposits
Accrued revenue bond interest payable
Increase (decrease) in working capital
See notes to financial statements
EXHIBIT E-3
1977
$ 68,853
214,583
283,436
199,975
188,794
672,205
353,267
125,000
7,800
100,000
36
1976
$ 167,044
204,102
371,146
137,860
509,006
553,111
120,000
7,800
258,698
18,528
586,067 958,137
$ 86,138 $(449,131)
$ 39,840 $(369,609)
(10,889) 9,772
28,951 (359,837)
5,000
(75,810)
14,760
(1,137)
(57, 187)
$ 86,138
- Exhibit E-4.
5,000
78,142
7,245
(1,093)
89,294
$049,131)
37
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1977
Accounting policies
See notes to financial statements - All Funds and
Accounts.
1. 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
purchase of the combined system. The property sale proceeds
may be applied solely to the prepayment or prior redemption
of the revenue bonds and investment income of the funds may be
applied to current revenue bond interest in an amount not
exceeding 32.33% of the requirement on the amount of bonds then
outstanding. As of September 30, 1977, $1,650,000 (28.45%) of
the revenue bonds have been retired with proceeds from the
sale noted above.
2. Contractual obligations
Under the City's long-term contract with the Trinity
River Authority of Texas for sewer treatment services and water
supply, the City is obligated for the next 46 years to share
in the costs of operations, maintenance and debt service of the
EXHIBIT E-4
38
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1977
2. Contractual obligations (continued)
Authority. Annual charges to the City by TRA in 1978 will
approximate $1,001,000. Such charges paid by the City totaled
approximately $736,000 in 1977. 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, therefore, no part of such charges which would correspond
to bonded indebtedness of TRA, are included in the accompanying
balance sheet as a liability equivalent to bonded indebtedness
requiring debt service accounting treatment.
3. Revenue bond ordinances
The Series 1965, 1967 and 1971 Water and Sewer Revenue
Bonds are payable solely from and equally secured by a first lien
on and pledge of the net revenues of the City's combined water-
works and sanitary sewer system.
In accordance with the 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.
EXHIBIT E-4
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1977
3. Revenue bond ordinances (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.
z6
h/1
39
All requirements for funding of the above reserves were
met at September 30, 1977.
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. Pension plan
All eligible full-time City employees are members of
the City's retirement plan administered by the Texas Municipal
EXHIBIT E-4
40
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1977
4. Pension plan (continued)
Retirement System. The Water and Sewer Enterprise Fund contribu-
tions to the plan for the years ended September 30, 1977 and
1976 approximated $8,000 and $6,700, respectively. Based on the
actuarial valuation made as of December 31, 1976, the City's
pension fund assets are in excess of the related actuarially
computed value of vested benefits.
5. Restatement of retained earnings and contributions from
subdividers
Retained earnings and contributions from subdividers
at October 1, 1975, have been restated to correct the recording
of assets of the utility plant in service in prior years. The
major portion of the correction resulted from the removal of
depreciation recorded in prior years applicable to land
acquired in the original purchase of the waterworks and sewer
system properties in 1965. This land has been reclassified
on the balance sheet from water and sewer system to land.
Additional corrections have been made for the recording of
assets acquired and disposed of in prior years. This restate-
ment has resulted in an increase in net income of $36,000 for
the years ended September 30, 1977 and 1976.
EXHIBIT E-4
41
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1977
5. Restatement of retained earnings and contributions from
subdividers (continued)
Reclassifications have been made to the 1976 financial
statements to conform to the 1977 presentation.
EXHIBIT E-4
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
SCHEDULE OF OPERATING EXPENSES
Years ended September 30, 1977 and 1976
General and administrative:
Supervision
Clerical
Employee benefits
Postage and supplies
Maintenance of office machinery
Contractual services
Bad debts
Water production:
Supervision
Operation labor
Employee benefits
Operating supplies and expense
Maintenance of structures and
equipment
Contractual services
Water - Trinity River Authority
Contingencies and other
Water distribution:
Supervision
Operating labor
Employee benefits
Operating supplies and expense
Maintenance of structures and
equipment
Contractual services
Trinity River Authority charges
Contingencies and other
1977
$ 17,959
28,714
7,377
6,136
1,877
8,248
3,668
73,979
17,989
23,001
7,948
4,536
2,530
614,529
670,533
25,226
58,476
13,060
8,161
27,060
961
29,010
161,954
1976
$ 27,893
26,911
6,975
8,268
1,253
26,519
3,120
42
Increase
(decrease)
$ (9,934)
1,803
402
(2,132)
624
(18,271)
548
100,939 (26,960)
3,140
21,430
5,187
4,398
692
34,191
543,754
681
613,473
11,224
70,338
11,345
7,135
12,162
1,013
26,892
145
140,254
14,849
1,571
2,761
138
1,838
(34,191)
70,775
(681)
57,060
14,002
(11,862)
1,715
1,026
14,898
(52)
2,118
(145)
21,700
SCHEDULE E-5
CITY OF EULESS, TEXAS
WATER AND SEWER ENTERPRISE FUND
SCHEDULE OF OPERATING EXPENSES
Years ended September 30, 1977 and 1976
(Continued)
Sewage collection and treatment:
Supervision
Operation labor
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
Total operating expenses
1977
1976
$ 12,900 $ 17,295
47,380 36,969
10,140 8,558
5,749 5,397
6,076
472
92,521
2,208
177,446
10,626
5,742
79,743
96,111
4,463
7,305
64,329
821
145,137
43
Increase
(decrease)
$ (4,395)
10,411
1,582
352
1,613
(6,833)
28,192
1,387
32,309
10,626
5,742
79,743
$1,180,023 $999,803 $180,220
SCHEDULE E-5
TRUST AND AGENCY FUNDS
44
CITY OF EULESS, TEXAS
TRUST AND AGENCY FUNDS
BALANCE SHEET
September 30, 1977
Social
Security Escrow
ASSETS Total Fund Fund
Cash and short-term investments $113,018 $ 63,625 $49,393
Employee account receivable 10 10
$113,028 $ 63,635 $49.393
LIABILITIES, RESERVES
AND FUND BALANCES
Payroll taxes payable
Reserve for general escrow deposits
Fund balances
$ 51,042 $ 51,042 $
49,393 49,393
12,593 12,593
$113,028 $ 63,635 $49,393
See notes to financial statements - All Funds and Accounts.
EXHIBIT F
CITY OF EULESS, TEXAS
TRUST AND AGENCY FUNDS
STATEMENT OF CHANGES IN RESERVE AND FUND BALANCES
Year ended September 30, 1977
Transfers:
From other funds for social
security, federal income taxes
withheld, employees insurance
premiums and employee United
Fund deductions
From General Fund for escrow
deposits
Revenue:
Subdivider escrow deposits
Expenditures:
For Social Security, federal
income taxes withheld,
employees insurance premiums
and employee United Fund
deductions
For street and sanitary water
and sewer construction
Increase in reserve and fund balances
Reserve and fund balances,
October 1, 1976
Total
45
Social
Security Escrow
Fund Fund
$ 645,766 $645,766 $ -
29,867 29,867
675,633 645,766 29,867
625,492 625,492
1,301,125 645,766 655,359
640,603 640,603 -
635,862 635,862
1,276,465 640,603 635,862
24,660 5,163 19,497
37,326 7,430 29,896
Reserve and fund balances,
September 30, 1977 $ 61,986 $ 12,593 $ 49,393
See notes to financial statements - All Funds and Accounts.
EXHIBIT F-1
CITY OF EULESS, TEXAS
TRUST AND AGENCY FUNDS
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
Year ended September 30, 1977
Total
Balances, beginning of year $ 85,671
Receipts:
For social security, federal income
taxes withheld, employees insurance
premiums and employee United Fund
deductions
Escrow deposits
Disbursements:
Payments for social security, federal
income taxes withheld, insurance
premiums and United Fund
Escrow payments for street and
sanitary water and sewer
construction
Balances, end of year
645,766
655,359
1,301,125
637,916
635,862
Social
Security
Fund
$ 55,775
645,766
645,766
637,916
46
Escrow
Fund
$ 29,896
655,359
655,359
635,862
1,273,778 637,916 635,862
$ 113,018 $ 63,625 $ 49,393
EXHIBIT F-2
GENERAL FIXED ASSETS
CITY OF EULESS, TEXAS
STATEMENT OF GENERAL FIXED ASSETS
September 30, 1977
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
See notes to financial statements - Exhibit G-2.
EXHIBIT G
47
$1,610,445
4,284,213
973,503
226,428
$7,094,589
$4,078,304
2,937,006
79,279
$7,094,589
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
BY SOURCE
Balance, beginning of
year, as previously
reported
Adjustment of
General Fixed
Assets at
September 30,
1976 (Note 1)
Balance, beginning
of year, as
restated
Add:
Expenditures from
bond proceeds
Expenditures from
assessments and
other special
funds
Expenditures from
current revenues
Construction in
progress
Balance, end of
year
Year ended September 30, 1977
Total
Land and
buildings
Improvements
other than
buildings
48
Machinery
and
equipment
$6,064,575 $1,316,939 $3,643,699 $1,103,937
(178,977)
5,885,598
74,475
805,216
102,872
45,895
1,362,834
40,000
207,611
111,931
3,755,630
34,475
481,765
12,343
(336,803)
767,134
115,840
90,529
6,868,161 $1,610,445 $4,284,213 $ 973,503
226,428
$7,094,589
See notes to financial statements - Exhibit G-2.
EXHIBIT G-1
49
CITY OF EULESS, TEXAS
GENERAL FIXED ASSETS
NOTES TO FINANCIAL STATEMENTS
September 30, 1977
Accounting policies
See notes to financial statements - All Funds and
Accounts.
1. Restatement of general fixed assets
The beginning balances in the general fixed assets group
of accounts have been restated to give effect to corrections in
the recording of asset acquisitions and disposals for prior years.
Certain machinery and equipment disposals had not previously been
recorded nor had certain costs related to asset acquisitions been
capitalized in prior years.
EXHIBIT G-2
50
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS
CLASSIFIED BY DEPARTMENTS
Year ended September 30, 1977
Improvements Machinery
Land and other than and
Total buildings buildings equipment
General Government $ 650,670 $ 490,280 $ 79,782 $ 80,608
Animal Shelter and
Vehicle Service
Center 342,332 332,061 10,271
Street Department 3,628,469 3,486,470 141,999
Police Department 375,189 154,525 220,664
Fire Department 412,850 85,402 327,448
Park and Recreation
Department 1,104,111 319,762 621,405 162,944
Library 354,540 228,415 96,556 29,569
6,868,161 $1,610,445 $4,284,213 973,503
Construction in
progress 226,428
$7,094,589
SCHEDULE G-3
GENERAL LONG-TERM DEBT
CITY OF EULESS, TEXAS
STATEMENT OF GENERAL LONG-TERM DEBT
September 30, 1977
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
51
$ 143,138
4,486,862
To be available and to be provided $4,630,000
GENERAL LONG-TERM DEBT PAYABLE
Serial bonds payable in future years $4,630,000
See notes to financial statements - All Funds and Accounts.
EXHIBIT H
SUPPLEMENTARY INFORMATION
Fiscal
period Tax
ending rate
9-30-67 $.77
9-30-68 .85
9-30-69 .85
9-30-70 .85
9-30-71 .85
9-30-72 .85
9-30-73 .85
9-30-74 .85
9-30-75 .85
9-30-76 .85
9-30-77 .94
52
CITY OF EULESS
TAX LEVIES AND TAX COLLECTIONS
Last eleven fiscal years
Assessed
value (65%)
$ 41,603,636
45,009,290
48,914,070
67,556,170
77,420,170
86,000,000
93,312,960
138,068,760
145,595,360
151, 191, 100
170,718,300
Total
tax levy
$ 320,348
382,592
415,770
574,240
658,071
695,199
793,175
1,173,599
1,237,576
1,285,139
1,604,752
Collections
current years
taxes during
fiscal period
$ 304,185
369,344
402,888
543,005
621,586
676,102
769,851
1,070,877
1,136,105
1,179,161
1,456,507
Percent of
collection
of
current levy
94.95
96.53
96.90
94.56
94.45
97.25
97.06
91.25
91.80
91.75
90.76
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.
TABLE I
Collection
on delinquent
rolls
fiscal period
$ 5,767
14,398
7,432
8,637
21,049
20,658
17,146
10,072
51,805
97,107
48,244
Total Percent of
collections total
during collection
fiscal period to tax levy
$ 309,952
383,742
410,320
551,642
642,635
696,760
786,997
1,080,949
1,187,910
1,276,268
1,504,751
96.71
100.30
98.69
96.06
97.65
100.22
99.22
92.11
96.04
99.31
93.77
53
CITY OF EULESS, TEXAS
REVENUES - OTHER THAN PROPERTY TAXES
Last eleven fiscal years
Taxes
(other
than Licenses County
Fiscal property and fire Revenue
period taxes) permits Fines program Library sharing Other
9-30-67 $ 34,349 $13,170 $ 42,069 $1,600 $6,805 $ $ 26,045
9-30-68 44,502 27,833 50,343 1,600 5,206 43,409
9-30-69 53,317 30,642 46,025 2,000 7,915 55,920
9-30-70 117,162 20,187 58,027 2,200 7,444 58,360
9-30-71 199,807 40,464 57,002 2,400 6,607 58,355
9-30-72 222,960 31,966 76,101 2,600 8,915 106,935
9-30-73 293,011 35,984 109,720 2,800 3,943 146,462 144,657
9-30-74 377,401 27,035 123,847 3,000 7,080 131,202 166,355
9-30-75 449,385 12,568 177,918 3,000 7,480 130,840 247,677
9-30-76 539,940 24,160 193,293 3,000 8,014 154,396 161,948
9-30-77 673,661 56,764 221,650 3,000 8,330 189,156 193,643
TABLE II
54
CITY OF EULESS, TEXAS
EXPENDITURES FOR SELECTED FUNCTIONS
Last eleven fiscal years
Fiscal
period General Law Fire Public Parks and
ended government enforcement department works recreation Library
9-30-67 $ 87,735 $129,954 $ 29,850 $ 54,691 $ 61,081 $21,382
9-30-68 40,699 155,890 33,878 83,077 79,141 33,285
9-30-69 29,826 189,578 43,450 89,367 113,482 35,032
9-30-70 53,849 240,017 58,651 99,427 119,906 40,504
9-30-71 60,934 296,293 105,713 107,488 135,421 42,435
9-30-72 59,678 341,727 131,732 119,785 138,783 48,605
9-30-73 70,870 388,473 153,044 173,717 253,117 45,736
9-30-74 85,957 581,936 300,827 235,435 263,081 58,651
9-30-75 123,340 600,983 342,914 235,785 300,823 77,006
9-30-76 148,055 683,522 402,292 290,716 349,337 91,506
9-30-77 371,001* 781,107 413,777 276,859 327,950 87,540
*Beginning in 1977 certain expenditures classified
as nondepartmental have been reported under
"general government" and were previously allocated
or charged directly to the several functions listed
above.
TABLE III
CITY OF EULESS, TEXAS
GENERAL OBLIGATION BONDS OTHER THAN WATER
AND SEWER REVENUE DEBT SERVICE CHARGES
55
Bonds Requirements
Fiscal outstanding Principal Interest Total
1978 $4,630,000 $ 110,000 $ 235,005 $ 345,005
1979 4,520,000 110,000 229,249 339,249
1980 4,410,000 115,000 223,362 338,362
1981 4,295,000 120,000 217,283 337,283
1982 4,175,000 130,000 210,647 340,647
1983 4,045,000 140,000 203,298 343,298
1984 3,905,000 145,000 195,538 340,538
1985 3,760,000 155,000 187,540 342,540
1986 3,605,000 165,000 179,167 344,167
1987 3,440,000 175,000 170,488 345,488
1988 3,265,000 180,000 161,577 341,577
1989 3,085,000 190,000 152,208 342,208
1990 2,895,000 195,000 142,567 337,567
1991 2,700,000 205,000 132,451 337,451
1992 2,495,000 225,000 121,302 346,302
1993 2,270,000 230,000 109,366 339,366
1994 2,040,000 260,000 96,129 356,129
1995 1,780,000 260,000 81,798 341,798
1996 1,520,000 265,000 67,487 332,487
1997 1,255,000 270,000 53,785 323,785
1998 985,000 170,000 43,215 213,215
1999 815,000 170,000 35,085 205,085
2000 645,000 170,000 26,955 196,955
2001 475,000 75,000 21,525 96,525
2002 400,000 75,000 18,600 93,600
2003 325,000 80,000 15,113 95,113
2004 245,000 80,000 11,392 91,392
2005 165,000 80,000 7,673 87,673
2006 85,000 85,000 3,952 88,952
$4,630,000 $3,353,757 $7,983,757
TABLE IV
CITY OF EULESS, TEXAS
REVENUE WATER AND SEWER BONDS
DEBT SERVICE CHARGES
56
Bonds Requirements
Fiscal outstanding Principal Interest Total
1978 $4,350,000 $ 125,000 $ 201,775 $ 326,775
1979 4,225,000 130,000 196,088 326,088
1980 4,095,000 140,000 190,175 330,175
1981 3,955,000 145,000 183,800 328,800
1982 3,810,000 155,000 177,138 332,138
1983 3,655,000 160,000 170,075 330,075
1984 3,495,000 165,000 162,700 327,700
1985 3,330,000 175,000 154,960 329,960
1986 3,155,000 180,000 146,725 326,725
1987 2,975,000 200,000 138,175 338,175
1988 2,775,000 205,000 128,525 333,525
1989 2,570,000 210,000 118,650 328,650
1990 2,360,000 220,000 108,450 328,450
1991 2,140,000 165,000 97,800 262,800
1992 1,975,000 135,000 88,875 223,875
1993 1,840,000 120,000 82,800 202,800
1994 1,720,000 35,000 77,400 112,400
1995 1,685,000 130,000 75,825 205,825
1996 1,555,000 135,000 69,975 204,975
1997 1,420,000 145,000 63,900 208,900
1998 1,275,000 150,000 57,375 207,375
1999 1,125,000 120,000 50,625 170,625
2000 1,005,000 160,000 45,225 205,225
2001 845,000 170,000 38,025 208,025
2002 675,000 240,000 30,375 270,375
2003 435,000 190,000 19,575 209,575
2004 245,000 120,000 11,025 131,025
2005 125,000 125,000 5,625 130,625
14.,350,,000 $2,891,661 17,241,661
TABLE V
57
CITY OF EULESS, TEXAS
INSURANCE IN FORCE
September 30, 1977
Expires Insurers
Amount of
insurance
Fire, extended coverage and
vandalism & Malicious
Mischief, 80% coinsurance:
Library:
Building 12- 1-79 2 $ 234,000
Contents 12- 1-79 2 100,000
City Offices & Jail:
Building 12- 1-79 2 650,000
Contents 12- 1-79 2 100,000
Community Center -
Ector:
Building 12- 1-79 2 272,000
Contents 12- 1-79 2 8,000
Fire Station - #1:
Building 12- 1-79 2 36,000
Contents 12- 1-79 2 8,000
Fire Station #2:
Building 9- 3-79 2 80,000
Contents 9- 3-79 2 8,000
Community Center - Simmons:
Building 9-12-80 2 95,000
Contents 9-12-80 2 10,000
Vehicle Center:
Building 7- 8-80 2 150,000
Contents 7- 8-80 2 20,000
Animal Control:
Building 7- 8-80 2 110,000
Contents 7- 8-80 2 5,000
House - building only:
114 N. Sheppard 4-10-78 4 10,000
134 N. Sheppard 4-20-78 4 11,000
116 N. Shepoard 4-20-78 4 10,000
110 N. Sheppard 11-25-78 4 13,000
Scheduled Water & Sewer
property 9- 3-79 5 466,400
Comprehensive glass
breakage:
City offices, jail,
library & community
center - Ector 9-28-79 1 Scheduled
TABLE VI
CITY OF EULESS, TEXAS
INSURANCE IN FORCE
September 30, 1977
(Continued)
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
Expires Insurers
9-14-78
9-14-78
9- 3-78
2- 6-78
Various
7- 1-78
Insurers:
1. United States Fire Insurance Co.
2. North River Insurance Co.
3. International Insurance Co.
4. Trinity University Insurance Co.
5. Lloyds -Commonwealth Insurance Co.
Amount of
insurance
3 $ BI100/300,000
PD 10,000
3
3
4
F,T,CAC ACV
Co11.Ded.$250
BI 300,000
PD 10,000
58
7,500
2,500
4 Prior 9-1 1,000ea
After 2,500ea
1
This statement is intended only as a descriptive summary; no
expression of opinion as to the adequacy of the coverage is
intended.
TABLE VI
STATISTICAL INFORMATION
59
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICAL FACTS
Calculation of debt service coverage for
Water and Sewer Revenue Bonds for
contractual agreements with Trinity River
Authority payable from water and sewer
revenues:
Water and Sewer Revenue Fund income
available for debt service (Exhibit E-2) $489,536
Average annual requirements:
Water and Sewer Revenue Bonds $258,631
Coverage 1.89 times
See Exhibits E for Water and Sewer Enterprise Fund
financial statements and notes.
TABLE VII
60
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICAL FACTS
(Continued)
Date of incorporation
Date of adoption of Charter
Form of government:
Home Rule, Council -Manager
Mayor - elected at large
Five council members
February 24, 1953
July 21, 1962
Area 16.9 square miles
Population:
1960 census 4,236
1970 census 19,316
1977 estimated 27,050
Building permits issued:
Year ended September 30, 1977
Estimated cost
188
$10,062,933
Full time City employees:
September 30, 1977 140
Police protection:
Number of stations 1
Number of certified officers 37
Fire protection:
Number of stations 2
Number of certified firefighters 24
Parks and recreation:
Number of swimming pools 3
Number of parks 8
Area of parks 95 acres
Community buildings 2
Library volumes 38,373
Education:
Elementary schools 6
Junior High Schools 2
High School 1
TABLE VII
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICAL FACTS
(Continued)
City Water and Sewer service:
Water service:
Number of meters at September 30, 1977
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:
Imp roved
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
Garden Plaza Hotel
4/
..5 ', 5 7 5
4,000,000
5,000,000
9,000,000
5,570,000
3,346,000
102
429
gallons
gallons
gallons
gallons
gallons
miles
2,7 58,000 gallons
5,158
84 miles
489
142 miles
17.2 miles
Type of business
Apartments
Manufacturer
Apartments
Utility
Utility
Manufacturer
Land
Apartments
Apartments
Hotel
61
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
TABLE VII