HomeMy WebLinkAboutFY 2005 Comprehensive Annual Financial Reporti
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THE CITY OF
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City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2005
Prepared by
City of Euless
Financial Department
201 North Ector Drive
Euless, TX 76039
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2005
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page(s)
Letter of transmittal i-v
City officials vii
GFOA certificate of achievement viii
Organizational chart ix
FINANCIAL SECTION
Independent Auditor's Report 1-2
Management's Discussion and Analysis (unaudited) 3-13
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets 14
Statement of Activities 15
Fund Financial Statements:
Governmental Funds:
Balance Sheet 16
Reconciliation of the Governmental Funds Balance sheet to
Statement of Net Assets 17
Statement of Revenues, Expenditures and Changes in Fund Balances 18
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 19
Proprietary Funds:
Statement of Net Assets 20-21
Statement of Revenues, Expenses and Changes in Fund Net Assets 22
Statement of Cash Flows 23-24
Fiduciary Funds:
Statement of Fiduciary Net Assets 25
Notes to basic financial statements 26-47
Required Supplementary Information:
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 48
Budgetary Comparison Schedules 49-51
Notes to Required Supplementary Information 52
Combining and Individual Fund Statements and Schedules:
Non -major Governmental Funds:
Combining Balance Sheet 55-56
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances 57-58
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2005
TABLE OF CONTENTS - continued
Page(s)
Combining and Individual Fund Statements and Schedules - continued
Schedule of Revenues, Expenditures and Changes in Fund Balances —
Budget and Actual:
Hotel/motel Special Revenue Fund 59
Police Drug Enforcement Special Revenue Fund 60
Half -penny Sales Tax Special Revenue Fund 61
DEA Task Force Special Revenue Fund 62
Crime Control and Prevention District Special Revenue Fund 63
Public Safety Grant Funds - Special Revenue Funds 64
Non -major Proprietary Funds:
Combining Balance Sheet 66-67
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 68
Combining Statement of Cash Flows 69
Internal Service Funds:
Combining Statement of Net Assets 71
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 72
Combining Statement of Cash Flows 73
Fiduciary Funds:
Statement of Changes in Assets and Liabilities 75
STATISTICAL SECTION (Unaudited) Table Page(s)
Government -wide expenses by function 1 76-77
Government -wide revenues by function 2 76-77
General governmental expenditures by function 3 78
General governmental revenues by source 4 79
Property tax levies and collections 5 80
Assessed and estimated actual value of taxable property 6 81
Property tax rates - all direct and overlapping
governments per $100 of assessed value 7 82
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 8 83
Computation of direct and overlapping debt 9 84
Ratio of annual debt service expenditures for
net general bonded debt to total general expenditures 10 85
Schedule of revenue bond coverage -
Water and Sewer Bonds 11 86
Schedule of revenue bond coverage -
Drainage Utility Bonds 12 87
Demographic statistics 13 88
Principal taxpayers 14 89
Property value and construction 15 90
Computation of legal debt margin 16 91
Miscellaneous statistics 17 92-93
INTRODUCTORY SECTION
THE CITY OF
EULESS
January 19, 2006
To the Honorable Mayor,
Members of the City Council, and
Citizens of the City of Euless, Texas
We are pleased to submit the Comprehensive Annual Financial Report for the City of
Euless, Texas for the fiscal year ended September 30, 2005. This report fulfills the
requirements of state law and the City's home rule charter which require that the City
publish audited financial statements within 120 days from the close of the fiscal year.
Management assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of internal
control that it has established for this purpose. Because the cost of internal control should
not exceed anticipated benefits, the objective is to provide reasonable, rather than
absolute, assurance that the financial statements are free of any material misstatements.
Weaver and Tidwell, L.L.P., a firm of licensed certified public accountants, have issued
an unqualified ("clean") opinion on the City of Euless' financial statements for the year
ended September 30, 2005. The independent auditor's report is located at the front of the
financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent
auditor's report and provides a narrative introduction, overview, and analysis of the basic
financial statements. The letter of transmittal is designed to complement and should be
read in conjunction with the MD&A.
Profile of the City of Euless, Texas
The City of Euless is located 16 miles west of Dallas and 16 miles east of Fort Worth and
adjacent to the Dallas/Fort Worth International Airport in Northeast Tarrant County.
Euless is readily accessible by State Highway 183 which runs east/west through the
center of the city, State Highway 121 which borders the west side of the City and State
Highway 360 which borders the east side of the City. The City is approximately 16.9
square miles and serves a population of approximately 50,000.
The City of Euless was incorporated February 24, 1953 and is a home rule city operating
under a Council/Manager form of government. The Council is comprised of the Mayor
201 N. Ector Drive, Euless, Texas 76039-3595
817/685-1400 • Metro 817/67-4403 • Fax 817/685-1416
www.ci.euless.tx.us
and six Council members, who enact local legislation, adopt budgets, determine policies,
and appoint the city secretary, city attorney, and judge of the municipal court. The City
Manager is appointed by the City Council and is responsible for carrying out policies and
for the daily management of the City. Council members serve three-year staggered
terms, with two council members elected each year. The mayor is elected to serve a
three-year term.
The City of Euless provides a full range of services, including police and fire protection,
emergency ambulance service, development and code services, construction and
maintenance of streets and highways, recreational opportunities, water and sewer
services, and library services. The City also offers a top ranked golf facility, and a
softball and athletic complex.
The financial statements of the City include two component units because of their fiscal
dependency of the primary government. The Euless Development Corporation was
created to promote parks, library services and economic development. The Crime
Control District was created to proactively combat crime. Additional information on
these component units can be found in Note 1 in the notes to the financial statements.
The annual budget serves as the foundation for the City of Euless' financial planning and
control. According to the City charter, the City Manager provides the City Council a
budget by August 1st each year. The budget is filed with the City Secretary and open for
public inspection. Upon receipt of the budget, the Council sets a date for a public hearing
at which time interested citizens may express their opinion regarding the proposed
budget. The charter requires the Council to adopt the budget by a favorable majority vote
at least 10 days prior to the beginning of the next fiscal year.
The City Manager is authorized to transfer budgeted amounts between line items and
departments within any fund; however, any revisions that alter the total eNpenditure of
any fund must be approved by the City Council. Budgetary control has been established
at the individual fund level. Financial reports are produced showing budget to actual
expenditures by line item, and are distributed monthly to City departments and divisional
management for review. Personnel expenditures are monitored and controlled at a
position level and capital expenditures are monitored and controlled item by item.
Revenue budgets are reviewed monthly.
Economic Condition
The information presented in the financial statements is perhaps best understood when it
is considered from the broader perspective of the specific environment within which the
City of Euless operates.
Local Economy
The City of Euless is located in the heart of the DFW metroplex and adjacent to the DFW
International Airport. Thus, the economic vitality of the region significantly impacts the
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economic health of Euless. DFW is the world's third -busiest airport offering nearly
1,800 flights per day and serving 57 million passengers a year. Tarrant County is one of
the fastest growing counties in Texas, and N.E. Tarrant County leads the way.
DFW is the largest metropolitan area in Texas and has sustained tremendous growth
during the past decade. DFW International Airport provides in excess of 200,000 jobs
and $11 billion to the regional economy. DFW has a highly -diversified economy with
more than 128,000 business and 1,500 regional and corporate headquarters. (U.S. Census
Bureau County Business Patterns)
The Alliance development in North Fort Worth which includes an industrial airport has
attracted over 130 companies and created over 20,000 jobs for the area. This area has
plenty of land available for development and is expected to continue to bring significant
investment to the region.
The Euless housing market for both residential and multi -family remained at near record
levels in FY2005. Property values have continued to grow at above average rates.
Taxable value for all residential and commercial property in the City of Euless was
approximately $2.18 billion for fiscal year 2005, which is a 5.6% increase over the prior
year. Sales tax collections continued to improve during FY2005 with significant
development still in process that will continue to improve our retail shopping
opportunities.
The City also receives a significant amount of revenues from a consolidated rental car
facility at DFW airport. During FY2005, car rental receipts recovered to pre-2001 levels
for the first time. The City Council has chosen to use this funding source to build
reserves and to cash flow capital projects in lieu of debt issuance. This has allowed the
City to refrain from becoming overly dependent on a volatile resource while providing
for needed improvements for our Citizens.
The City of Euless has approximately 1213 acres of undeveloped land outside of DFW
airport and another 600-900 developable acres within DFW airport. Euless is actively
working with two developers on major commercial tracts within the City. These two
developments are expected to add approximately 1 million square feet of
commercial/retail development to Euless.
Euless is pleased that State Highway 360, which lies of the eastern border of the City is
nearing completion and provides greater access for undeveloped areas along this
highway. Also, the announcement that the Dallas Cowboys will be relocating their
stadium to Tarrant County, with a close proximity to Euless, is expected to bring
additional tourism to our City.
Long-term financial planning
The City of Euless has developed a comprehensive capital improvements document as
well as a multi -year financial plan. This strategic planning has allowed the City Council
iii
to fund several major infrastructure upgrades, park enhancements and capital purchases
in a systematic manner with full consideration of the impact to the operating budget and
tax requirements. Many of these projects have been completed on a pay as you go basis
by utilizing the car rental receipts and avoiding additional debt.
Major initiatives
During the upcoming year, the City will be completing the reconstruction of Pipeline
Road, which is the last project in the 1998 voter approved, general obligation bonds.
Glade Road, which is being jointly reconstructed by the City of Euless and the City of
Grapevine, will also be underway during FY2006. With the completion of these projects,
Euless will have completed the renovation of the majority of the major thoroughfares in
the City.
The City is currently working with a developer of a major retail center located at Glade
Road and Hwy 121. This center, expected to be under construction in 2006, should
provide approximately 385,000 square feet of retail shops and restaurants. The City
expects that the sales tax benefit from this center will be significant. In addition, another
development on the west side of 121 will provide approximately 800,000 square feet of
commercial and retail development. This project is expected to go under construction in
2007.
On the expenditure side, the City has embarked on a three year plan to add additional
firefighter/paramedics sufficient to begin service of an additional ambulance. Phase I
hiring has been completed with Phase II budgeted for FY2006. The final phase is
expected to be funded in FY2007. This phased approach has allowed the City to provide
this needed service without an increase to the City's tax rate.
The City is nearing completion of planned facility improvements. Building B, which
houses Finance, Human Resources and Utility Billing, is currently under construction and
the Public Works facility is under design, with construction to begin by mid-2006. Both
projects will be funded from reserves and will not require any debt issuance. The
completion of these two projects will complete the current Facility Plan, and provide
adequate facilities for Euless well into the future.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Euless for its
comprehensive annual financial report (CAFR) for the fiscal year ended September 30,
2004. This was the 18t consecutive year that the City has received this prestigious
award. In order to be awarded a Certificate of Achievement, the City published an easily
readable and efficiently organized CAFR. This report satisfied both generally accepted
accounting principals and applicable legal requirements.
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A Certificate of Achievement is valid for a period of one year only. We believe that our
current CAFR continues to meet the Certificate of Achievement Program's requirements
and we are submitting it to the GFOA to determine its eligibility for another certificate.
In addition, the City of Euless also received the GFOA's Distinguished Budget
Presentation Award for its annual budget document dated August 31, 2004. This is the
14th consecutive year that the City has received this prestigious award. In order to qualify
for the Distinguished Budget Presentation Award, the City's budget document was
judged to be proficient in several categories, including as a policy document, a financial
plan, an operations guide, and a communications device.
The preparation of this report would not have been possible without the efficient and
dedicated services of the entire staff of the Finance Department. We would like to
express our appreciation to all members of the department who assisted and contributed
to the preparation of this report.
We would like to thank the Mayor and members of the City Council for their interest and
support in planning and conducting the financial operations of the City in a responsible
and professional manner.
Respectfully Submitted,
LoSretta Getchell,
Assistant City Manager
v
CITY OFFICIALS
MARY LIB SALEH, MAYOR
CARL TYSON, COUNCIL MEMBER PLACE ONE
LEON HOGG, COUNCIL MEMBER PLACE TWO
LINDA MARTIN, COUNCIL MEMBER PLACE THREE
CHARLES MILLER, COUNCIL MEMBER PLACE FOUR
GLENN PORTERFIELD, COUNCIL MEMBER PLACE FIVE
AND MAYOR PRO TEM
VEVA LOU MASSEY, COUNCIL MEMBER PLACE SIX
JOE HENNIG, CITY MANAGER
Gary McKamie, Loretta Getchell, CPA
Deputy City Manager Assistant City Manager
VI'
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Euless,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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President
deOref
Executive Director
RON
YOUNG
Ditcctnrof
Public Works
Streets
Water
WnatcRatcr
Aninnl Connnl
Meter Reading
Consl. M,gmt.
BOB MCI:ARLAND
City Attorney
RAY
MCDONALD
(Nestor of Pairs
C:ommoaity
Services
SUSAN CRIM
City Secrete
LEE
KOONTZ
Fire Clad
MAYOR
and
COUNCIL
JOE HENNIG
City Mang
GARY MCKAMIE
Deputy City Manager k
BOB Suppression...'' .,.�.. Ambulancef MS CtiatM Invcsst.
City Engineer Rei ri ation Fine Edw..& preventSrraiec in
Parma Fire 1ldushall Crnxntnnieations
Special Events Emergency Mgrnt. common,'
at Tczaa Star Jail
Sta,Center
Engineering So_b 1I wpm at
COS'�7On •
Texas Star
cm Mgmt.
Traffic Safety
Drainage
LORETTA
r.ETCHELL
Assistant City I
Ni.nogcr
Accounting
Utility Billing
Budget
Municipal Court
Cash Deb. Mfpnl•
info. ServittS
Purchasing
Burnam Res+urccs
RisldRcncfitt:
LACY BRffTEN of Ite'ecr3
Municipal Court
kturricipal Court Judge
KYLE
MCA•AMS
Fleet &
Fxilnics
.A ra/lisaemr
BILL
RIDGWAY
Dircttnr of
Economic
Dc loptnent
Economic Dev.
Fmncbises
Recycling
MIKE
COLLINS
Dirtttar of
Planning
& Dcs-alopment
.tt
Planning
Code Frcforrcmrnt
Enw<iron. Health
Rldg.1nspecriane
JOANN
ROGERS
Library
Adninisu•ator
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BETSY
BOY
C teem,
Mart tieg
Manner
,041,1
GLENDA
HARTSELL-
SHiELTOtd
Gcnaul Mgr.
Texas Sear
FINANCIAL SECTION
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WEAVER
TIDWELL
L.L.P.
CERTIFIED PUBLIC
ACCOUNTANTS
AND CONSULTANTS
DALLAS
Three &Weil Plaza
1222/ Merit Drive
Suite 1400
U,tllr,s, Tixas 75251-2280
972.490. 1970
7 972.702.8321
FORT WORTH
1600 West Seventh Street
Sttite .300
l— Fort W n th. Tixes 76102.2506
I` 8/7.3.32.7905
l' 817.429. 5936
W W W.WEAVERANDTIDWELL.COM
AN INDEPENDENT MEMBER OF
BAKER TILLY
INTERNATIONAL
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
We have audited the accompanying financial statements of the governmental
activities, the business -type activities, each major fund, and the aggregate
remaining fund information of the City of Euless, Texas as of and for the year
ended September 30, 2005, which collectively comprise the City's basic financial
statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and Govemment Auditing Standards, issued
by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities,
the business -type activities, each major fund, and the.aggregate remaining fund
information of the City of Euless, Texas as of September 30, 2005, and the
respective changes in financial position and cash flows, where applicable, thereof
for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our
report dated December 2, 2005, on our consideration of the City's internal control
over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an
opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.
11
1
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
Page 2
The management's discussion and analysis, the analysis of funding progress and
budgetary comparison information on pages 3 through 13 and 49 through 52, are
not a required part of the basic financial statements but are supplementary
information required by accounting principles generally accepted in the United
States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement
and presentation of the supplementary information. However, we did not audit
the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial
statements that collectively comprise the City's basic financial statements. The
introductory section, combining and individual nonmajor fund financial
statements, and statistical tables are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The
combining and individual nonmajor fund financial statements have been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation
to the basic financial statements taken as a whole. The introductory section and
statistical tables have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we express no
opinion on them.
4).p4 c a,sd ,
Fort Worth, TX
December 2, 2005
CITY OF EULESS, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2005
(Unaudited)
As management of the City of Euless, we offer readers of the City's financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal
year ended September 30, 2005. We encourage readers to consider the information
presented here in conjunction with the additional information that we have furnished in
our letter of transmittal, which can be found on pages i-v of this report.
Financial Highlights
• The assets of the City of Euless exceeded its liabilities at the close of the most recent
fiscal year by $132,446,933 (Net assets). Of this amount, $33,343,339 (unrestricted
net assets) may be used to meet the government's ongoing obligations to citizens and
creditors.
• As of the close of the current fiscal year, the City of Euless' governmental funds
reported combined ending fund balances of $28,913,951, an increase of $751,814 in
comparison with the prior year. Approximately 88% of this total amount is available
for spending at the government's discretion (unreserved fund balance).
• At the end of the current fiscal year, unreserved fund balance for the general fund was
$6,363,113 or 29% of total general fund expenditures.
• The City's total capital assets increased by $6,383,996, which is primarily attributed
to street infrastructure.
• The City's bonds payable increased by $3,298,387 or 5%. The decrease was due to
regularly scheduled bond payments and savings from a bond refinancing.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of Euless'
basic financial statements. The City's basic financial statements are comprised of three
components: 1) government -wide financial statements, 2) fund financial statements, and
3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City of Euless' finances, in a
manner similar to a private -sector business.
The statement of net assets presents information on all of the City of Euless' assets and
liabilities, with the difference between the two reported as net assets. Over time,
increases or decreases in net assets may serve as a useful indicator of whether the
financial position of the City of Euless is improving or deteriorating.
3
The statement of activities presents information showing how the City's net assets
changed during the fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that
will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned
but unused compensated absences).
Both of the government -wide financial statements distinguish functions of the City that
are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of
their costs through user fees and charges (business -type activities). The governmental
activities of the City include general government, public safety, highway and streets,
development, and culture and recreation. The business -type activities of the City include
water and sewer, drainage system, golf course and other recreational activities.
The government -wide financial statements include not only the City of Euless itself
(known as the primary government), but also includes the Euless Development
Corporation and the Crime Control District, which are legally separate but financially
accountable to the City. A blended presentation has been used to report the financial
information of these component units.
The government -wide financial statements can be found on pages 14-15 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or
objectives. The City of Euless, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance -related legal
requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial
statements. However, unlike the government -wide financial statements, governmental
fund financial statements focus on near -term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information may be useful in evaluating a government's near -term financing
requirements.
Because the focus of governmental funds is narrower than that of the government -wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government -
wide financial statements. By doing so, the reader may better understand the long-term
impact of the government's near -term financing decisions. Both the governmental fund
balance sheet and the governmental fund statement of revenues, expenditures, and
4
changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains 17 individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the General, Debt
Service, Street CIP, and Car Rental Tax funds, all of which are considered to be major
funds. Data from the other 13 governmental funds are combined into a single, aggregate
presentation. Individual fund data for each of these nonmajor governmental funds is
provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its general fund and car rental tax
fund. A budgetary comparison schedule has been provided for both funds to demonstrate
compliance with this budget.
The basic governmental fund financial statements can be found on pages 16-19 of this
report.
Proprietary funds. The City maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business -type
activities in the government -wide financial statements. The City uses enterprise funds to
account for its water and sewer, drainage, golf, and several other recreation activities.
Internal service funds are an accounting device used to accumulate and allocate costs
internally among the City's various functions. The City uses internal service funds to
account for its equipment replacement, risk management, and health insurance. Because
these services predominately benefit governmental rather than business type functions,
they have been included within governmental activities in the government -wide financial
statements.
Proprietary funds provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide
separate information for water and sewer, drainage, and golf, all of which are considered
to be major funds. Data from the other recreation activities are combined into a single,
aggregate presentation. Individual data for each of these nonmajor enterprise funds is
provided in the form of combining statements elsewhere in this report. The internal
service funds are combined into a single, aggregate presentation in the proprietary fund
financial statements. Individual data for the internal service funds is provided in the form
of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 20-24 of this
report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government -wide
financial statements because the resources of those funds are not available to support the
5
City's own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statements can be found on page 25 of this report.
Notes to the financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government -wide and fund
financial statements. The notes to the financial statements can be found on pages 26-47
of this report.
Other information. In addition to the basic financial statements and accompanying
notes, this report also presents certain required supplementary information concerning the
City's progress in funding its obligation to provide pension benefits to its employees.
Required supplementary information can be found on page 48-52 of this report.
The combining statements referred to earlier in connection with nonmajor governmental
funds, nonmajor proprietary funds and internal service funds are presented immediately
following the required supplementary information on pensions. Combining and
individual fund statements and schedules can be found on pages 55-75 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's
financial position. As of September 30, 2005, the City of Euless' assets exceeded
liabilities by $132,446,933.
The largest portion of the City's net assets (74%) reflects its investment in capital assets
(e.g., land, building, equipment, improvements, construction in progress, and
infrastructure), less any debt used to acquire those assets that is still outstanding. The
City uses these capital assets to provide services to citizens; consequently these assets are
not available for future spending. Although the City's investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used
to liquidate these liabilities.
An additional portion of the City's net assets (1%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net
assets ($33,343,339) may be used to meet the government's ongoing obligations to
citizens and creditors.
As of September 30, 2005, the City is able to report positive balances in all three
categories of net assets, for the government as a whole, as well as for its separate
governmental and business -type activities. The same situation held true for fiscal year
2004.
6
City of Euless' Net Assets
Current and other assets
Capital assets
Total assets
Long-term liabilities outstanding
Other liabilities
Total liabilities
Net assets:
Invested in capital assets, net of
related debt
Restricted
Unrestricted
Total net assets
Governmental
activities
2005 2004
$ 42,539,641 $ 41,953,713
91,210,367 88,814,345
133, 750, 008 130, 768, 058
52,895,349 55,703,242
12, 226, 680 12, 370, 498
65,122,029 68,073,740
Business -type
activities
2005 2004
$ 19,422,669 $19,738,892
64,301,430 60,313,460
83,724,099 80,052,352
15, 686,149 16, 264, 817
4,218,996 3,597,824
19,905,145 19,862,641
Total
2005 2004
$ 61,962,310 $ 61,692,605
155,511,797 149,127,805
217,474,107 210,820,410
68,581,498 71,968,059
16, 445, 676 15, 968, 322
85,027,174 87,936,381
49,659,438 46,733,074 47,988,447 43,283,643 97,647,885 90,016,717
1,455,709 1,304,226 - 1,455,709 1,304,226
17,512,832 14,657,018 15,830,507 16,906,068 33,343,339 31,563,086
$ 68,627,979. $ 62,694,318 $ 63,818,954 $ 60,189,711 $ 132,446,933 $ 122,884,029
The City's total net assets increased by $9,562,904 during the current fiscal year. About
51% of the increase is attributed to developer contribution of infrastructure assets with
the remaining portion attributed to ongoing revenues in excess of ongoing expenses.
Governmental activities. Governmental activities increased the City's net assets by
$5,933,661, thereby accounting for 62% of the total growth in the net assets. Key
elements of this increase are as follows:
• Property taxes and sales taxes accounted for $973,495 or 16% of this increase.
Although the tax rate remained stable, increased property values attributed to
additional collections.
• Other taxes accounted for $765,247 or 13% of this increase. This is primarily
attributed to increased collections of car rental taxes at DFW Airport.
• Investment earnings increased $407,602 due to an increase in short-term interest
rates.
• Governmental activities had an increase in transfers from business type activities
due to increased general and administrative charges.
• Increased expenses are primarily attributed to personnel cost and increased
payments to Dallas and Fort Worth for their share of the DFW revenue sharing
agreement.
7
City of Euless' Changes in Net Assets
Governmental
activities
2005 2004
Revenues:
Program revenues:
Fees, Fines and Charges for.
services $ 5,964,591 $ 5,599,328
Operating grants and
contributions 1,302,332 517,307
Capital grants and
contributions
General revenues:
Property taxes 10,777,414 10,233,079
Sales taxes 9,648,979 9,229,819
Other taxes 14,431,288 13,666,041
Investment earnings 870,841 463,239
Contributions from property
owners 1,229,401 3,191,097
Gain (loss) on sale/retirement
of fixed assets (21,023) 30,811
Miscellaneous 18,208
Total revenues 44,203,823 42,948,929
Expenses
Culture and recreation
Development services
General government
Highways and streets
Public safety
Interest on long-term debt
Water & sewer
Drainage utility
Golf course
Other enterprise funds
Total expenses
Increase in net assets before
transfers
Transfers
Increase in net assets
Net assets 10/01/04
Net assets 09/30/05
4,563,029
1,109,177
13, 381, 097
1,739,353
15, 514, 301
2,571,926
38, 878, 883
4,411,726
1,217,794
12, 337, 712
2,398,447
15, 315, 777
2,765,102
38,446, 558
5,324,940 4,502,371
608,721 340,834
5,933,661 4,843,205
62,694,318 57,851,113
$ 68,627,979 $ 62,694,318
Business -type
activities
2005 2004
$ 20,674,848
3,308,393
407,468
374,124
24,764,833
13, 227, 562
875,995
3,792,552
2,630,760
20, 526, 869
4,237,964
(608, 721)
3,629,243
60,189, 711
$ 63,818,954
$ 18,943,980
2,850,705
266,240
737,674
22, 798, 599
12, 550, 708
793,358
3,667,537
2,299, 391
19, 310, 994
3,487,605
(340,834)
3,146, 771
57,042,940
$ 60,189,711
Total
2005
$ 26,639,439
1,302,332
3,308,393
10,777,414
9,648,979
14,431,288
1,278,309
1,603,525
(21, 023)
68, 968, 656
4,563,029
1,109,177
13, 381, 097
1,739,353
15, 514, 301
2,571,926
13, 227, 562
875,995
3,792,552
2,630,760
59, 405, 752
9,562,904
9,562,904
122,884,029
$ 132,446,933
2004
$ 24, 543, 308
517,307
2,850,705
10,233,079
9,229,819
13, 666, 041
729,479
3,928,771
30,811
18,208
65,747,528
4,411,726
1,217,794
12,337,712
2,398,447
15,315,777
2,765,102
12,550,708
793,358
3,667,537
2,299,391
57,757,552
Business -type activities. Business -type activities increased the City's net assets by
$3,629,243 accounting for the other 38% of the total growth in net assets. Key elements
of this increase are as follows:
7,989,976
7,989,976
114,894,053
$ 122,884,029
• Water and sewer revenues increased $977,480 due to increased consumption
caused by dry weather conditions and a water rate pass -through of 20¢ per 100
gallons. Other charges for service related to the golf course and special events
also increased $755,730, due to favorable weather conditions
8
• Expenses increased due to personnel cost and payments to Trinity River
Authority.
• The overall increase in net assets from business type activities is primarily
attributed to operating income from water and sewer operations, and revenue from
developer contributions -for water, sewer and drainage infrastructure.
Expenses and Program Revenues — Governmental Activities
$20,000,000 -
$16,000,000 -
$12,000,000 -
$8,000,000 -
$4,000,000 -
$0
■ Expenses
o Program revenues
Gen & Culture & Dev Hwy and Public Int on
admin rec services streets safety Tong -term
debt
Expenses and Program Revenue — Business -type Activities
$20,000,000 -
$16,000,000 -
$12,000,000 -
$8,000,000 -
$4,000,000 -
$0
Water &
Sew er
Drainage
Financial Analysis of the Government's Funds
Golf
■ Expenses
® Program Revenues
Other
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements.
9
Governmental funds. The focus of the City's governmental funds is to provide
information on near -term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City's financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a City's net resources available
for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Euless' governmental funds reported
combined ending fund balances of $28,913,951, an increase of $751,814 in comparison
with the prior year. Approximately 88% constitutes unreserved fund balance, which is
available for spending at the government's discretion. The remainder of fund balance is
reserved to indicate that it is not available for new spending because it has already been
committed 1) to pay debt service ($1,642,766), 2) to pay for specific capital
improvements per development agreements ($1,470,156), and 3) for a variety of other
restricted purposes ($240,837).
In the general fund, the City budgeted for a decrease in fund balance of $856,111, which
was primarily used to purchase capital items. This was a planned reduction of excess
fund balance to fund "pay as you go" capital expenditures. Due to actual revenue being
more than budgeted and actual expenditures being less than budgeted, the actual fund
balance for fiscal year 2005 increased by $856,588. The Debt Service fund balance
increased $210,515 due to interest savings from a bond refinancing. Street CIP fund
balance decreased $637,229 due to infrastructure improvements on several major
thoroughfares. The Car Rental fund balance was budgeted to increase $1,452,028. The
actual increase was $2,005,842 due to increased collections of car rental taxes.
Proprietary funds. The City's proprietary fund statements provide the same type of
information found in the government -wide financial statements but in more detail.
Unrestricted net assets of the proprietary funds are Water and Sewer - $14,062,808,
Drainage Utility - $1,991,124, Golf Course — ($1,576,047), and Other Enterprise Funds -
$1,024,499. Water and Sewer and Drainage had increases in 2005 of $3,027,367 and
$486,154 respectively. Golf Course and Other Enterprise Funds had decreases of
$287,506 and $129,655 respectively. The decrease in the Golf Course net assets is
attributed to interest on debt service and depreciation expenses.
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business
type activities as of September 30, 2005, amount to $155,511,797 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, improvements,
machinery and equipment, infrastructure and construction in progress. The total increase
in the City's investment in capital assets for the current fiscal year was 4.2% (a 2.6%
increase in governmental activities and a 1.6% increase in business -type activities).
10
Major capital asset events during the current fiscal year included the following:
• Developer's contributed $1,107,892 in sewer infrastructure, $1,504,911 in water
infrastructure, $695,988 in drainage infrastructure, $970,418 in street infrastructure
and $290,926 of right of way related to street construction.
• Completion of the reconstruction of North Main Street at a total cost of $6,222,178
and additional infrastructure totaling $460,940.
• Construction -in -progress additions of $3,924,364 primarily consisted of Pipeline
Road ($473,275), Fire Station # 3 ($1,873,265), Preserve at McCormick Park
($1,017,277), and various street projects.
• Construction -in -progress additions related to enterprise funds totaled $2,847,788
primarily consisting of Phase III at the Parks at Texas Star ($706,174), Pipeline Road
water main ($1,125,765), Water Tank painting ($369,471) and various drainage and
water projects.
• Completion of $1,467,334 in water and wastewater infrastructure including sewer
mains along South Pipeline Road from Heather to Vine, Dunaway, Midway Park,
South Ector Drive and water mains on Blanco.
• Completion of $48,220 in drainage infrastructure projects on Simmons and Sierra
Drive.
• Completion of $188,700 in slope improvements along portions of Hurricane Creek at
Texas Star Golf Course.
City of Euless' Capital Assets (Net of Accumulated Depreciation)
Land
Buildings
Improvements other than
buildings
Machinery and equipment
Infrastructure
Construction in progress
Total
Governmental
activities
2005 2004
$21,777,989 $21,487,063
28,431,644 29,476,950
Business -type
activities
2005 2004
$2,776,602 $2,776,602
3,078,644 3,202,299
Total
2005 2004
$24,554,591 $24,263,665
31,510,288 32,679,249
1,981,706 1,979,263 26,774,945 26,829,304 28,756,651 28,808,567
3,203,380 3,768,444 552,181 813,984 3,755,561 4,582,428
31,220,862 24,841,584 26,996,820 24,111,449 58,217,682 48,953,033
4,594,786 7,261,041 4,122,238 2,579,822 8,717,024 9,840,863
$91,210,367 $88,814,345 $64,301,430 $60,313,460 $155,511,797 $149,127,805
Additional information on the City's capital assets can be found in note 3 on pages 35-37
of this report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $70,920,210. Of this amount, $57,315,210 comprises debt backed by the
full faith and credit of the government. The remainder of the City's debt, $13,605,000,
represents bonds secured solely by specific revenue sources (i.e. revenue bonds).
11
City of Euless' Outstanding Debt
General obligation bonds
Certificates of obligation
Revenue bonds
Deferred loss on refunding
bonds
Premium on refunded bonds
Total
Governmental
activities
2005 2004
$ 27,410,000 $ 17,525,000
19,875,000 31,615,000
7,725,000 8,310,000
(876,942) (216,869)
474,169 -
$ 54,607,227 $ 57,233,131
Business -type
activities
2005 2004
$ 11,095,000 $ 11,095,000
210,000 500,000
5,880,000 6,355,000
(872,017) (920,183)
$ 16,312,983 $ 17,029,817
Total
2005 2004
$ 38,505,000 $ 28,620,000
20,085,000 32,115,000
13, 605, 000 14,665,000
(1,748,959)
474,169 $ 70,920,210 $ 74,262,948
(1,137,052)
The City's total debt decreased by $3,342,738 or 5.1% during fiscal year 2005. This
decrease is primarily attributed to scheduled annual principal payments.
During the current fiscal year, the government refinanced some of its existing debt to take
advantage of favorable interest rates.
• The City issued $13,900,000 in general obligation refunding bonds during 2005 to
advance refund $13,740,000 of outstanding debt, which resulted in a reduction in debt
payments of $1,137,669 over the next 15 years and an economic gain of $830,614.
The City has an "Al" rating from Moody's and an AA- rating from Standard & Poor's
for general obligation debt. The revenue bonds have been rated "Al" by Moody's and
"A+" by Standard & Poor's.
Additional information on the City's long-term debt can be found in Note 4 on pages
37-41.
Economic Factors and Next Year's Budgets and Rates
In the fiscal year 2005-06 budget, general fund revenues and transfers are budgeted to
increase by 4% from the 2004-05 budget year with property taxes making up about 29%
of budgeted revenues and sales tax making up about 26% of budgeted revenues.
Certified assessed valuations as of September 1, 2005, increased 4.9% over the preceding
year.
As of September 30, 2005, the City's unemployment rate is 4.5% compared to the State
of Texas, which is 5.7%. In the FY2005-06 budget, sales tax receipts are projected to
have a significant increase due to the addition of a new business within the community
with strong sales projections. The car rental tax receipts are also projected to increase due
to improved business travel through the DFW International Airport.
Budgeted expenditures remain fairly level with the prior year. Departments were asked
to hold increases in operating expenses to a minimum in order to fund a salary package,
12
three additional firefighters, and 2 dispatchers. The City elected to continue its current
level of funding for street maintenance and construction and "pay as you go" capital
replacements due to the importance placed on these items. The tax rate decreased from
.495 to .491777 per $100 of assessed value for fiscal year 2006.
The 2005-06 budget includes an increase in the City's wastewater rate of .07¢ which
represent a pass -through charge from Trinity River Authority. This increase will be used
to pay the increased cost of wastewater treated by TRA. The City budgeted to continue its
"pay as you go" program in the water and sewer fund which includes approximately
$1,000,000 of infrastructure improvements.
The golf course revenues and rounds are budgeted to remain flat as compared to prior
year. Saturation in the local golf market continues to cause pressures in the revenues
received per round. Operating expenses have been held to a minimum are principally due
to merit increases for employees.
Request for Information
The financial report is designed to provide our citizens, customers, investors and creditors
with a general overview of the City's finances. If you have questions about this report or
need additional information, contact the Finance Department, Attn: Finance
Administrator, at 201 N. Ector Drive, Euless, Texas 76039, call (817) 685-1826, or e-
mail vrodriauez aC�.ci.euless.tx.us.
13
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2005
ASSETS
Deposits and investments
Receivables (net of allowances for uncollectibles)
Internal balances
Inventory of supplies
Prepaid Items
Restricted assets:
Cash and cash equivalents
Investments
Deferred charges
Capital assets:
Land and construction in progress
Other capital assets, net of accumulated depreciation
Total assets and other debits
LIABILITIES AND NET ASSETS
LIABILITIES:
Accounts payable
Accrued liabilities
Accrued interest payable
Deferred revenue
Money held in escrow
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
NET ASSETS:
Invested in capital assets, net of related debt
Restricted for debt service
Unrestricted
Total net assets
Governmental
Activities
$ 34,827,092
5,844,180
1,328,352
9,475
294,014
236,528
26,372,775
64,837,592
$ 133,750,008
$ 8,306,561
608,063
425,670
2,886,386
52,895,349
65,122, 029
49,659,438
1,455,709
17,512,832
$ 68,627,979
The Notes to the Basic Financial Statements
are an integral part of this statement. 14
Primary Government
Business -type
Activities Total
$ 12,574,356 $ 47,401,448
2,833,228 8,677,408
( 1,328,352)
207,296 216,771
55,882 349,896
235,056 235,056
4,394,135 4,394,135
451,068 687,596
6,898,840 33,271,615
57,402,590 122,240,182
$ 83,724,099 $ 217,474,107
$ 1,775,967
380,412
31,137
72,527
1,332,119
$ 10,082,528
988,475
456,807
72,527
1,332,119
626,834 3,513,220
15,686,149 68,581,498
19,905,145 85,027,174
47,988,447 97,647,885
1,455,709
15,830,507 33,343,339
$ 63,818,954 $ 132,446,933
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2005
Program Activities
Primary government:
Govemmental Activities:
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Interest on long-term debt
Total govemmental activities
Business -type activities:
Water & sewer
Drainage utility
Golf
Other
Total business -type activities
Total primary govemment
Change in Net Assets
NET ASSETS, beginning of year
NET ASSETS, end of year
The Notes to the Basic Financial Statements
are an integral part of this statement
Expenses
$ 4,573,219
1,113,875
13,370,907
1,734,487
15,514,301
2,572,094
38,878,883
13,227,562
875,995
3,792,552
2,630,760
20,526,869
$ 59.405.752
Program Revenues
Fees, Fines and
Charges for Operating Grants
Services and Contributions
$ 91,925
896,894
1,241,408
3,734,364
5,964,591
Net (Expense) Revenue and
Changes in Net Assets
Primary Govemment
Capital Grants Govemmental Business - Type
and Contributions Activities Activities
$ 824,429 $
477,903
1,302,332
$ (3,656,865) $
( 216,981)
( 12,129,499)
( 1,734,487)
( 11,302,034)
( 2,572,094)
I 31,611,960)
Total
(3,656,865)
216,981)
12,129,499)
1,734,487)
11,302,034)
( 2,572,094)
31,611960)
14,213,072 2,612,805 3,598,315 3,598,315
659,949 695,588 479,542 479,542
3,347,922 ( 444,630) ( 444,630)
2,453,905 ( 176,855) ( 176,855)
20,674,848 3,308,393 - 3,456,372 3,456,372
$ 26,639,439 $ 1,302,332 $ 3.308.393 (31.611.960) 3456,372 f 28.155,588k
GENERAL REVENUES:
Taxes:
Property Taxes, levied for general purposes
Sales Taxes
Other Taxes
Interest on Investments
Contributions from property owners
Gain/(Loss) on Sale of Assets
Miscellaneous
Transfers
Total general revenues and transfers
15
$ 10,777,414 $
9,648,979
14,431,288
870,841
1,229,401
( 21,023)
608,721 (
37,545,621
5,933,661
62,694,318
407,468
374,124
608,721)
172,871
3,629,243
60,189,711
$ 10,777,414
9,648,979
14,431,288
1,278,309
1,603,525
( 21,023)
37,718,492
9,562,904
122,884,029
$ 68,627,979 $ 63,818,954 $ 132,446,933
CITY OF EULESS, TEXAS
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2005
Debt Streets Car Other Total
General Service CIP Rental Tax Governmental Governmental
ASSETS Fund Fund Fund Fund Funds Funds
Deposits and investments $ 6,376,018 $ 685,101 $ 10,334,293 $ 8,675,409 $ 5,362,707 $ 31,433,528
Receivables:
Property taxes 465,432 241,587 - - 707,019
Accounts receivable and unbilled revenue 2,006,338 - 1,850,483 112,780 3,969,601
Accrued interest 63,207 4,073 13,258 57,854 24,202 162,594
Due from other funds - - 1,664,093 1,664,093
Due from other govemments - 719,046 719,046
Prepaids and deposits 11,175 13,662 24,837
Inventories, at cost 9,475 - 9,475
Total assets
$ 8,931,645 $ 930,761 $ 10,347,551 $ 12,247,839 $ 6,232,397 $ 38,690,193
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 772,735 $ $ 63,672 $ 6,574,940 $ 489,813 $ 7,901,160
Accrued salaries and wages 520,201 - - - 72,646 592,847
Deferred revenue 1,036,004 238,613 1,274,617
Due to other funds - - - 7,618 7,618
Total liabilities 2,328,940 238,613 63,672 6,574,940 570,077 9,776,242
Fund Balances:
Reserved for:
Debt service 692,148 - 950,618 1,642,766
Computer 182,816 - - 182,816
Development agreements - 1,470,156 1,470,156
Betterment 9,110 9,110
Library 3,003 3,003
Injured animals 2,006 - 2,006
Historical Preservation 1,245 1,245
9-1-1 Emergency System 22,805 22,805
Technology 13,652 13,652
Campus remodel 6,200 6,200
Unreserved:
Designated for:
Contingency 500,000 500,000
Emergency 500,000 - 500,000
Undesignated, reported in:
General fund 5,363,113 - 5,363,113
Special revenue funds - 5,672,899 2,413,887 8,086,786
Capital projects .funds . 10,283,879 - 826,414 11,110,293
Total fund balances 6,602,705 692,148 10,283,879 5,672,899 5,662,320 28,913,951
Total liabilities and fund balances $ 8,931,645 $ 930,761
$ 10,347,551 $ 12,247,839
$ 6,232,397 $ 38,690,193
The Notes to the Basic Financial Statements
are an integral part of this statement, 16
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2005
Total fund balances - governmental funds $ 28,913,951
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital assets used in governmental activities are not current financial resources
and therefore are not reported in the governmental funds balance sheet 91,210,367
Costs associated with the issuance of governmental long term debt are expensed
when incurred in the fund statements and capitalized and amortized over the
life of the debt in the government -wide financial statements. 236,528
Interest payable on long term debt does not require current financial resources,
therefore interest payable is not reported as a liability in the governmental
funds balance sheet. ( 425,670)
Internal service funds are used by management to charge the cost of certain
activities, such as insurance and fleet management, to individual funds. The
assets and liabilities of the internal service funds are net of the amount allocated
to business -type activities, capital assets and long term liabilities. 3,199,921
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 1,274,617
Long-term liabilities, including bonds payable are not due and payable in the
current period and therefore are not reported in the fund financial statements. ( 55,781,735)
Net assets of governmental activities $ 68,627,979
The Notes to the Basic Financial Statements
are an integral part of this statement. 17
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2005
Revenues:
General property tax
Gross receipts tax
General sales tax
Car rental tax
Fines and fees
Licenses and permits
Interest income
DEA revenues
Intergovernmental
Other revenues
Total revenues
Expenditures:
Current:
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Debt service:
Principal
Interest and fiscal charges
Issuance costs
Capital outlay and maintenance
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses)
Proceeds from issuance of bonds
Payment to refunded bond escrow agent
Premium on issuance of bonds
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
22,241,493
2,605,502
937,603
5,244,106
670,742
13,096,613
22,554,566
Debt
General Service
Fund Fund
$ 7,442,282 $ 3,696,300 $
3,409,400
6,075,072 -
3,662,327
870,010 -
210,303 39,291
303,713 -
268,386 975,888
4,711,479
2,015,000
2,581,813
128,000
4,724,813
Streets
CIP
Fund
Car
Rental Tax
Fund
10,841,899
248,526 182,149
999
249,525 11,024,048 4,880,098 43,106,643
Other
Governmental
Funds
Total
Governmental
Funds
7,197,914
- $ 11,138,582
179,989 3,589,389
3,573,907 9,648,979
10,841,899
3,662,327
870,010
118,216 798,485
14,607 14,607
303,713
993,379 2,238,652
1,285,343 3,890,845
141,470 1,079,073
52,332 12,494,352
670,742
1,313,173 14,409,786
585,000 2,600,000
357,970 2,939,783
128,000
1,169,254 3,079,183 4,248,437
1,169,254 7,197,914 6,814,471 42,461,018
( 313,073) ( 13,334) ( 919,729) 3,826,134 ( 1,934,373) 645,625
1,479,766
( 310,105)
1,169,661
856,588
5,746,117
$ 6,602,705
13,900,000
(14, 386,070)
508,038
201,881
223,849
210,515
481,633
$ 692,148
13,900,000
( 14,386,070)
508,038
282,500 33,609 437,861 2,435,617
( 1,853,901) ( 187,3902 ( 2,351,396)
282,500 ( 1,820,292) 250,471 106,189
( 637,229) 2,005,842 ( 1,683,902) 751,814
10,921,108 3,667,057 7,346,222 28,162,137
$ 10,283,879 $ 5,672,899 $ 5,662,320 $ 28,913,951
The Notes to the Basic Financial Statements
are an integral part of this statement. 18
CITY OF EULESS, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2005
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense. This is
the amount of capital assets recorded in the current period.
Governmental funds do not recognize assets contributed by developers. However,
in the statement of activities the fair market value of those assets are
recognized as revenue, then allocated over their estimated useful lives and
reported as depreciation expense.
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation
expense is not reported as expenditures in the governmental funds.
The issuance of long term debt (e.g. bonds) provides current financial resources
to governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net assets. Also, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items
when debt is first issued, whereas the amounts are deferred and amortized in
the statement of activities. This amount is the net effect of these differences in the
treatment of long-term debt and related items.
$ 751,814
4,635,477
1,229,401
2,996,540)
2,506,318
Current year changes in long term liability for compensated absences do not require
the use of current financial resources; therefore, are not reported as expenditures
in governmental funds ( 44,351)
Current year changes in accrued interest payable do not require the use of current
financial resources; therefore, are not reported as expenditures in governmental funds. 32,461
Internal service funds are used by management to charge the costs of certain
activities, such as insurance and fleet management, to individual funds. The
net revenue of the internal service funds is reported with governmental activities
net of amount allocated to business -type activities.
115,182
Certain revenues in the government -wide statement of activities that do not
provide current financial resources are not reported as revenue in the
governmental funds. ( 296,101)
Change in Net Assets of Governmental activities $ 5,933,661
The Notes to the Basic Financial Statements
are an integral part of this statement. 19
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2005
ASSETS
Current assets:
Deposits and investments
Revenue bond debt service:
cash with paying agent
Revenue bond emergency:
short-term investments
Capital projects account:
Cash and cash equivalents
Accrued interest receivable
Short-term investments
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$12,330 for water and sewer and
$240 for drainage utility
Accrued interest receivable
Prepaids and deposits
Inventory
Due from other funds
Total current assets
Non -current assets:
Bond issuance cost
Less accumulated amortization
Net bond issuance cost
Utility plant and equipment in service, at cost
Land
Building
Equipment
Improvements
Construction in progress
Waterworks and sanitary sewer system
Less accumulated depreciation
Net utility plant and equipment in service
Total non -current assets
TOTAL ASSETS
Water and
Sewer
Business Type Activities - Enterprise Funds
Other
Drainage Golf Enterprise
Utility Course Funds
Total
Enterprise
Funds
(1 of 2)
Govemmental
Activities -
Internal
Service Funds
$ 9,578,269 $ 1,925,113 $ 40,911 $1,030,063 $ 12,574,356 $ 3,393,564
500,000
235,056
3,894,135
2,589,578 37,744 91,203 6,314
99,019 9,370
30,651 - 13,870 11,361
64,310 129,119 13,867
232,565 - - 278,000
17,223,583 1,972,227 275,103 1,339,605
210,373 166,554 297,155 52,206
121 873 113,132 29,716 10,499
88,500 53,422 267,439 41,707
1,528,966 314,969 348,135 584,532
186,465 - 3,402,783 488,275
828,419 - 1,346,898 227,064
22,439,532 7,967,841 5,731,551
2,178,786 95,409 - 1,848,043
48,097,434 - -
52,820,070 22,849,910 13,065,657 8,879,465
21,788,829 6,171,721 3,576,889 1,776,233
31,031,241 16,678,189 9,488,768 7,103,232
31,119,741 16,731,611 9,756,207 7,144,939
$48,343,324 $18,703,838 $ 10,031,310 $8,484,544
500,000
235,056
3,894,135
2,724,839 268,365
108,389 17,556
55,882 269,177
207,296 510,565
20,810,518 3,948,662
726,288
275,220
451,068
2,776,602
4,077,523
2,402,381
36,138, 924
4,122,238
48,097,434
97,615,102
33,313,672
64,301,430
64,752,498
$ 85,563,016
5,361,846
5,361,846
3,564,526
1,797,320
1,797,320
$ 5,745,982
The Notes to Basic Financial Statements
are an integral part of this statement. 20
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2005
LIABILITIES
(2 of 2)
Business Type Activities - Enterprise Funds Govemmental
Other Total Activities -
Water and Drainage Golf Enterprise Enterprise Intemal
Sewer Utility Course Funds Funds Service Funds
Current liabilities:
Payable from current assets:
Accounts payable $ 1,616,025 $ 26,454 $ 82,874 $ 50,614 $ 1,775,967 $ 192,119
Accrued salaries and wages 259,721 8,071 84,421 28,199 380,412 15,215
Current portion of bonds payable 180,000 161,834 90,000 431,834
Accrued insurance claims - - 213,282
Deferred revenue 62,254 62,254 -
Current obligations payable from
restricted assets:
Current portion of bonds payable 195,000 195,000
Accrued interest 31,137 31,137
Total current liabilities 2,101,883 214,525 391,383 168,813 2,876,604 420,616
Non -current liabilities:
Customer and escrow deposits 1,332,119 - 1,332,119
Bonds payable 4,720,000 785,000 8,858,717 1,322,432 15,686,149
Deferred revenue 10,273 - 10,273
Due to other funds 1,889,040 278,000 2,167,040
Total non -current liabilities 6,062,392 785,000 10,747,757 1,600,432 19,195,581
Total liabilities 8,164,275 999,525 11,139,140 1,769,245 22,072,185 420,616
NET ASSETS
Invested in capital assets, net of related debt 26,116,241 15,713,189 468,217 5,690,800 47,988,447 1,797,320
Unrestricted 14,062,808 1,991,124 _1_1,576,047) 1,024,499 15,502,384 3,528,046
Total net assets $ 40,179,049 $ 17,704,313 ($ 1,107,830) $6,715,299 $63,490,831 $ 5,325,366
Reconcilialtion to government -wide statements of net assets:
Adjustment to reflect the consolidation of intemal
service funds' activities related to enterprise funds
Net assets of business -type activities
328,123
$63,818,954
The Notes to Basic Financial Statements
are an integral part of this statement. 21
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2005
Business Type Activities - Enterprise Funds Governmental
Other Total Activities -
Water and Drainage Golf Enterprise ' Enterprise Internal
Sewer Utility Course Funds Funds Service Funds
Operating revenues:
Water service $ 8,607,620 $ $ $ $ 8,607,620 $
Sewer service 4,660,575 - 4,660,575
Drainage fees 659,949 - 659,949
Recreation fees - 380,484 380,484 -
Insurance premiums - - - - 2,786,478
Service fees and miscellaneous 944,877 - 3,347,922 2,073,421 6,366,220 653,693
Total operating revenues 14,213,072 659,949 3,347,922 2,453,905 20,674,848 3,440,171
Operating expenses:
General and administrative 607,475 607,475 158,178
Water production 4,935,412 - 4,935,412
Water distribution 571,796 571,796
Utility engineering 424,753 424,753
Sewage collection and treatment 1,550,534 1,550,534
Nondepartmental 2,248,687 - 2,248,687
Geographic information 264,381 264,381
Service center 952,070 - 952,070
Drainage - 265,444 - 265,444
Recreation classes - 349,627 349,627
Golf course 1,184,434 - 1,184,434
Pro Shop 375,137 375,137
Food and beverage 900,323 900,323
Conference center 222,427 222,427
Cart operations - 145,694 - 145,694
Athletic complex 199,250 199,250
Softball complex 854,176 854,176
Arbor Daze 895,641 895,641 _
Insurance costs - - - - 3,354,651
Depreciation 1,285,335 555,818 496,465 265,426 2,603,044 535,108
Amortization 8,250 13,356 58,901 6,699 87,206
Total operating expenses 12,848,693 834,618 3,383,381 2,570,819 19,637,511 4,047,937
Operating income (loss) 1,364,379 ( 174,669) ( 35,459) ( 116,914) 1,037,337 ( 607,766)
Nonoperating revenues (expenses)
Impact fees
Loss on sale of capital assets
Investment income
Interest on bonds
Total nonoperating revenues (expenses), net
Income (loss) before contributions
and transfers
Developer contributed assets
Transfers in
Transfers out
Net income (loss)
Net assets, beginning of year
Net assets, end of year
374,124 374,124
335,643 40,367 31,458 407,468
( 275,524) ( 41,305) ( 381,213) ( 44,199) ( 742,241)
434,243 ( 938) ( 381,213) ( 12,741) 39,351
1,798,622 ( 175,607) ( 416,672) ( 129,655) 1,076,688
(
(
21,024)
72,355
51,331
556,435)
2,612,805 695,588 - 3,308,393 _
4,651 - 174,154 8,840 187,645 1,204,500
( 1,388,711) ( 33,827) ( 44,988) ( 8,840) ( 1,476,366)
3,027,367 486,154 ( 287,506) ( 129,655) 3,096,360 648,065
37,151,682 17,218,159 ( 820,324) 6,844,954 4,677,301
$ 40,179,049 $ 17,704,313 $ (1,107,830) $ 6,715,299 $ 5,325,366
Reconciliaition to government -wide statements of net assets:
Adjustment to reflect the consolidation of intemal
service funds' activities related to enterprise funds
Change in net assets of business -type activities
532,883
$ 3,629,243
The Notes to the Basic Financial Statements
are an integral part of this statement. 22
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2005
OPERATING ACTIVITIES
Cash received from customers
Other operating cash receipts
Cash payments to suppliers
for goods and services
Cash payments to employees
for services
Cash payments from (to) other funds
for services
Net cash provided by (used in)
operating activities
NONCAPITAL FINANCING ACTIVITIES
Transfer in
Transfer out
Net cash provided by (used in)
noncapital financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees
Interest paid on bonds
Reduction in bonds payable
Proceeds from bond issuances
Loss on refunding bond issuance
Bond issuance costs
Purchase of utility plant and
equipment in service
Proceeds from sale of equipment
Net cash provided by (used in) capital
and related financing activities
INVESTING ACTIVITIES
Purchase of investment securities
Proceeds from sale of investment securities
Interest received on investments
Net cash provided by
investing activities
Net change in cash and
cash equivalents
Cash and cash equivalents,
beginning of year
Cash and cash equivalents,
end of year
The Notes to the Basic Financial Statements
are an integral part of this statement.
Water and
Sewer
Business Type Activities - Enterprise Funds
Other
Drainage Golf Enterprise
Utility Course Funds
Total
Enterprise
Funds
Governmental
Activities -
Internal
Service Funds
$ 13,873,588 $ 659,675 $ 3,371,791 $ 2,423,411 $ 20,328,465 $ 3,391,136
( 7,692,352) ( 158,070) ( 1,579,656) ( 1,881,630) ( 11,311,708) ( 3,605,675)
( 2,972,317) ( 107,839) ( 1,298,598) ( 461,467) ( 4,840,221) ( 80,515)
122,000
122,000
3,208,919 393,766 615,537 80,314 4,298,536 ( 295,054)
4,651 - 174,154 26,840 205,645 1,204,500
( 1,388,711) ( 33,827) ( 44,988) ( 26,840) ( 1,494,366) -
( 1,384,060) ( 33,827) 129,166 ( 1,288,721) 1,204,500
(
(
374,124
275,524)
305,000)
41,305)
170,000)
381,213) ( 44,199)
200,000) ( 90,000)
374,124
742,241)
765,000)
( 2,336,012) ( 105,467) ( 122,579) ( 730,906) ( 3,294,964)
( 2,542,412) ( 316,772) ( 703,792) ( 865,105) ( 4,428,081)
1,419,195
292,143
35,315
1,711,338 35,315
993,785 78,482
8,819,540 1,846,631
37,643
37,643
40,911 ( 747,148)
1,777,211
1,419,195
365,101
1,784,296
366,030
12,443,382
$ 9,813,325 $ 1,925,113 $ 40,911 $ 1,030,063 $ 12,809,412
23
361,776)
( 21,024)
382,800)
56,292
56,292
582,938
2,810,626
$ 3,393,564
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2005
Business Type Activities - Enterprise Funds Governmental
Other Total Activities -
Water and Drainage Golf Enterprise Enterprise Internal
Sewer Utility Course Funds Funds Service Funds
Reconciliation of operating income
(loss) to net cash provided by
(used in) operating activities
Operating income (loss) $ 1,364,379 ($ 174,669) ($ 35,459) ($ 116,914) $ 1,037,337 ($ 607,766)
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities
Depreciation and amortization 1,293,585 569,174 555,366 272,125 2,690,250 535,108
Loss on disposal of equipment 12,343 - 12,343 68,328
Change in assets and liabilities:
Accounts receivable and
unbilled revenue ( 352,563) ( 274) 15,627 ( 3,779) ( 340,989) ( 117,363)
Due from other funds
Prepaids and deposits 45,287 ( 4,915) 91 40,463 ( 262,363)
Inventory ( 4,669) - ( 18,968) 1,431 ( 22,206) -
Accounts payable 821,717 ( 3,853) ( 52,357) ( 40,090) 725,417 72,950
Accrued salaries and wages 15,761 3,388 26,001 ( 5,835) 39,315 7,188
Accrued insurance claims - - - 8,864
Due to other funds - 122,000 122,000
Customer and escrow deposits 20,879 - 20,879
Deferred revenue ( 7,800) 8,242 ( 26,715) ( 26,273)
Net cash provided by
operating activities $ 3,208,919 $ 393,766 $ 615,537 $ 80,314 $ 4,298,536 ($ 295,054)
Noncash investing, capital and
financing activities
Developer contributed assets $ 2,612,805 $ 695,588 $ - $ $ 3,308,393
Reconciliation of cash to balance sheet:
Cash - current $ 9,578,269 $ 1,925,113 $ 40,911 $ 1,030,063 $ 12,574,356
Cash - revenue bond debt service
Cash - capital projects account 235,056 - 235,056
Cash and cash equivalents $ 9,813,325 $ 1,925,113 $ 40,911 $ 1,030,063 $ 12,809,412
The Notes to the Basic Financial Statements
are an integral part of this statement. 24
CITY OF EULESS, TEXAS
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2005
Assets:
Deposits and investments
Total assets
Agency
Funds
$ 2,288,618
$ 2,288,618
Liabilities:
Due to other entities $ 2,288,618
Total liabilities $ 2,288,618
The Notes to Basic Financial Statements
are an integral part of this statement.
25
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Euless (the "City") was incorporated on February 24, 1953. The City
operates under a Council -Manager form of government and provides the following
services as authorized by its charter: general government, police and fire protection,
emergency ambulance service, road and traffic signal maintenance, water and sewer
operations, drainage system, parks and recreational facilities, courts, library services,
planning land use, building inspection, and traffic control.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally
accepted in the United States of America applicable to state and local governments.
Generally accepted accounting principles for local governments include those principles
prescribed by the Governmental Accounting Standards Board (GASB), the American
Institute of Certified Public Accountants in the publication entitled Audits of State and
Local Governmental Units and by the Financial Accounting Standards Board (when
applicable). As allowed in Section P80 of GASB's Codification of Governmental
Accounting and Financial Reporting Standards, the City has elected not to apply
Financial Accounting Standards Board Statements and Interpretations, Accounting
Principles Board Opinions, and Accounting Research Bulletins of the Committee of
Accounting Procedure issued after November 30, 1989. The more significant accounting
policies of the City are described below.
Financial Reporting Entity
As required by accounting principles generally accepted in the United States of America
the financial statements of the City include the primary government and organizations for
which the primary government is financially accountable and other organizations for
which the nature and significance of their relationship with the primary government are
such that exclusion would cause the reporting entity's financial statements to be
misleading or incomplete.
The definition of the reporting entity is based primarily on the notion of financial
accountability. A primary government is financially accountable for the organizations
that make up its legal entity. It is also financially accountable for legally separate
organizations if its officials appoint a voting majority of an organization's governing body
and either it is able to impose its will on that organization or there is a potential for the
organization to provide specific financial benefits to, or to impose specific financial
burdens on, the primary government. A primary government may also be financially
accountable for governmental organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can
significantly influence the programs, projects, or activities of, or the level of services
performed or provided by, the organization. A financial benefit or burden relationship
exists if the primary government (a) is entitled to the organization's resources; (b) is
legally obligated or has otherwise assumed the obligation to finance the deficits of, or
provide financial support to, the organization; or (c) is obligated in some manner for the
debt of the organization.
26
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — continued
Financial Reporting Entity — continued
Some organizations are included as component units because of their fiscal dependency
on the primary government. An organization is fiscally dependent on the primary
government if it is unable to adopt its budget, levy taxes, set rates or charges, or issue
bonded debt without approval by the primary government.
The following entities were found to be component units of the City and are included in
the combined financial statements:
Euless Development Corporation - The City created the Corporation for the purpose
of promoting parks, library services, and economic development within the City. The
Corporation's governing body is substantially the same as the governing body of the
City. There are seven directors, four of whom are members of the City Council and
make up a voting majority of the City Council. The remaining three members are
residents of the City. All Board members are appointed by the City Council. The
Corporation is authorized to sell bonds or other forms of indebtedness. Upon
dissolution of the Corporation, the assets of the Corporation shall be distributed to
the City. The Corporation provides all of its services to the City.
A blended presentation has been used to report the financial information of this
component unit. The financial statements for the Corporation were obtained from
the Board of Directors. The financial information for the Corporation is available
from the City.
Crime Control District - The City created the District for the purpose of proactively
combating rising crime rates by setting up additional crime prevention and
rehabilitation programs within the City. The District's governing body is substantially
the same as the governing body of the City. There are seven directors, four of
whom are members of the City Council and make up a voting majority of the City
Council. The remaining three members are residents of the City. All Board
members are appointed by the City Council. The District is authorized to sell bonds
or other forms of indebtedness. Upon dissolution of the District, the assets of the
District shall be distributed to the City. The District provides all of its services to the
City.
A blended presentation has been used to report the financial information of this
component unit. The financial statements for the District were obtained from the
Board of Directors. The financial information for the District is available from the
City.
Basis of Presentation
The government -wide financial statements (the statement of net assets and the
statement of activities) report information on all of the activities of the City, except for
fiduciary funds. The effect of interfund activity, within the governmental and business -
type activities columns, has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business -type activities, which rely to a significant extent on
fees and charges for support.
27
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — continued
Basis of Presentation — continued
The statement of activities demonstrates the degree to which the direct expenses of a
given program are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific program. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given program and 2) operating or capital grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular program. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Fund Financial Statements:
The City segregates transactions related to certain functions or activities in separate
funds in order to aid financial management and to demonstrate legal compliance.
Separate statements are presented for governmental funds, proprietary funds and
fiduciary funds, even though the latter are excluded from the government -wide
financial statements. These statements present each major fund as a separate
column on the fund financial statements; all non -major funds are aggregated and
presented in a single column.
Governmental funds are those funds through which most governmental functions
typically are financed. The measurement focus of governmental funds is on the
sources, uses and balances of current financial resources. The City has presented
the following major governmental funds:
General Fund -
The General Fund is the main operating fund of the City. This fund is used to
account for all financial resources not accounted for in other funds. All general tax
revenues and other receipts that are not restricted by law or contractual agreement
to some other fund are accounted for in this fund. General operating expenditures,
fixed charges and capital improvement costs that are not paid through other funds
are paid from the General Fund.
Debt Service Fund -
The Debt Service Fund is used to account for the accumulation of financial resources
for the payment of principal, interest and related costs on general long-term debt
paid primarily from taxes levied by the City. The fund balance of the Debt Service
Fund is reserved to signify the amounts that are restricted exclusively for debt
service expenditures.
Streets Capital Improvements Capital Project Fund -
The Streets Capital Improvements Fund is used to account for the construction of
improvements to various streets projects.
28
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — continued
Basis of Presentation — continued
Car Rental Tax Fund -
The Car Rental Tax Fund is used to account for revenues and expenditures received
from collection of short-term motor vehicle rental taxes. Revenues are used primarily
for debt reduction, one time capital projects and to maintain the property tax rate.
Proprietary Funds are accounted for using the economic resources measurement focus
and the accrual basis of accounting. The accounting objectives are determinations of
net income, financial position and cash flow. All assets and liabilities are included on the
Statement of Net Assets. The City has presented the following major proprietary funds:
Water and Sewer Fund —
Water and Sewer Fund is used to account for the acquisition, operation and
maintenance of a municipal water and sewer utility, supported primarily by user
charges to the public.
Drainage Utility Fund -
Drainage Utility Fund is used to account for the acquisition, operation and
maintenance of a municipal drainage utility, supported primarily by user charges.
Golf Course Fund -
Golf Course Fund is used to account for operation and maintenance of the City's golf
course, supported primarily by user charges.
Additionally, the City reports the Internal Service Funds which are used to account for
equipment replacement, self funded property and casualty self insurance, self funded
health and disability insurance provided to departments of the City.
Proprietary funds distinguish operating revenues and expenses from non -operating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal ongoing
operations. Operating expenses for the proprietary funds include the cost of personnel
and contractual services, supplies and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non -operating revenues and
expenses.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to
when revenues and expenditures are recognized in the accounts and reported in the
financial statements. Basis of accounting relates to the timing of the measurement
made, regardless of the measurement focus applied.
The government -wide statements and fund financial statements for proprietary funds are
reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets and
liabilities
29
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — continued
Measurement Focus and Basis of Accounting — continued
(whether current or non -current) are included on the statement of net assets and the
operating statements present increases (revenues) and decreases (expenses) in net
total assets. Under the accrual basis of accounting, revenues are recognized when
earned, including unbilled water and sewer services which are accrued. Expenses are
recognized at the time the liability is incurred.
Governmental fund financial statements are reported using the current financial
resources measurement focus and are accounted for using the modified accrual basis of
accounting. Under the modified accrual basis of accounting, revenues are recognized
when susceptible to accrual; i.e., when they become both measurable and available,
"Measurable" means the amount of the transaction can be determined and "available"
means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. The City considers property taxes as available if they are
collected within 60 days after year end. Expenditures are recorded when the related
fund liability is incurred. However, debt service expenditures, as well as expenditures
related to compensated absences are recorded only when payment is due.
The revenues susceptible to accrual are property taxes, franchise fees, licenses, charges
for service, interest income and intergovernmental revenues. Sales taxes collected and
held by the state at year end on behalf of the government are also recognized as
revenue. All other governmental fund revenues are recognized when received.
Deposits and Investments
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash and investment accounts. Related interest income is allocated to the
various funds based primarily on ownership by each fund of specific investments. Cash
equivalents consist of highly liquid investments with original maturities of three months or
less.
For purposes of the statement of cash flows, the City considers all highly liquid
investments (including cash equivalents reported as restricted assets of $235,506 at
September 30, 2005) to be cash equivalents.
Investments in U.S. -r sury and agency obligations with maturities of one year or less
when purchased are reported at amortized cost. Nonparticipating contracts are reported
at cost. All other investments are reported at fair value.
State statutes authorize the City to invest in obligations of the U.S. Government or its
agencies; obligations of the State of Texas or its agencies; and certain other obligations,
repurchase agreements, money market mutual funds and certificates of deposits within
established criterion.
30
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — continued
Taxes
Property taxes are levied for appropriation for the fiscal year beginning on October 1, are
due October 1, attach as an enforceable lien on property as of January 1, and become
delinquent on February 1. Property taxes are accrued based on the period for which
they are levied and available. Delinquent taxes estimated not to be available are treated
as deferred revenue. Property taxes for cities, including those applicable to debt
service, are limited by the Texas Constitution to $2.50 per $100 of assessed valuation.
The City's current tax rate is $.495 per $100 of assessed valuation ($.495 per $100 last
year) and assessed valuation is approximately 100% of estimated value.
Inventories
Inventories, which are recognized as expenditures/expenses as they are consumed, are
stated at cost (first -in, first -out method) for the General Fund and Enterprise Funds.
Inventories consist primarily of expendable supplies for the General Fund and pro shop
merchandise for the Enterprise Funds.
Prepaid Items
Prepaid balances are for payments made by the City in the current year to provide
services occurring in the subsequent fiscal year.
Interfund Receivables and Payables
Any residual balances outstanding between the governmental activities and business -
type activities are reported in the government -wide financial statements as "internal
balances".
Transactions Between Funds
Interfund services provided and used are accounted for as revenues, expenditures or
expenses. Transactions that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are properly applicable to another fund,
are recorded as expenditures/ expenses in the reimbursing fund and as a reduction of
expenditures/expenses in the fund reimbursed. All other interfund transactions are
recorded as transfers.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are
reported in the applicable governmental or business -type activities columns in the
government -wide financial statements and in the fund financial statements for proprietary
funds. All capital assets are valued at historical cost or estimated historical cost if actual
historical cost is not available. Donated assets are valued at fair market value on the
date donated. Repairs and maintenance are recorded as expenses. Renewals and
betterments are capitalized. Interest has not been capitalized during the construction
period on property, plant and equipment.
31
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — continued
Capital Assets — continued
Assets capitalized, not including infrastructure assets, have an original cost of $5,000 or
more and over one year of useful life. Depreciation has been calculated on each class of
depreciable property using the straight-line method. Estimated useful lives are as
follows:
Buildings 40 Years
Water and Sewer System 33 1/3 Years
Storm Drainage System 40 Years
Infrastructure 7-40 Years
Machinery and Equipment 5-15 Years
Improvements 25 Years
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation. The City's
policy is to pay the employee accumulated vacation upon termination. The City does not
pay employees for accumulated sick leave upon termination. All vacation pay is accrued
in the government -wide, proprietary, and fiduciary fund financial statements and reported
as accrued salaries and wages (a current liability).
The estimated vacation liability expected to be satisfied with available financial
resources is included in accrued salaries and wages in the General Fund.
Nature and Purpose of Reservations and Designations of Fund Equity
The City classifies fund balances as follows:
1. Reserves — used to denote that portion of fund equity, which is not appropriable
for expenditures or is legally segregated for specific future use.
a. Reserved for debt service represents that portion of fund equity legally
restricted to retirement of General Obligation bond principal and interest.
b. Reserved for computer represents funds collected from a Court technology
fee that must be used to upgrade Court systems.
c, Reserved for development agreements represents funds received from
developers that must be used for certain capital projects.
d. Reserved for betterment represents funds donated by citizens that must be
used for the betterment of the community.
e. Reserved for library represents fees collected from the rental of library rooms
that must be used for the maintenance of these areas.
f. Reserved for injured animals represents donations from citizens that must be
used for the treatment of animals picked up by the animal shelter.
g. Reserved for historical preservation represents donations that must be used
towards the preservation of Euless historical sites.
h. Reserved for 9-1-1 emergency represents funding received from the county
that must be used to upgrade emergency systems.
i. Reserved for technology represents contributions which must be used to
upgrade the city communications systems.
j. Reserved for campus remodel amounts reserved for future capital
expenditures relating to drainage maintenance at the library.
2. Designations — used to denote that portion of fund equity, which is council
established for future use.
32
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — continued
Nature and Purpose of Reservations and Designations of Fund Equity — continued
a. Designated for emergency represents amounts restricted by council for use in
extreme emergencies. Expenditures must be council approved.
b. Designated for contingency represents amounts restricted by council for use
when extraordinary contingencies arise that have not been budgeted.
Expenditures must be council approved.
3. Unreserved, undesignated — used to denote that portion of fund equity, which is
available for appropriation.
Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested
in capital assets, net of related debt consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowing used for the
acquisition, construction or improvements of those assets, and adding back unspent
proceeds. Net assets are reported as restricted when there are limitations imposed on
their use either through the enabling legislations adopted by the City or through external
restrictions imposed by creditors, grantors or laws or regulations of other governments.
NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures
Deposits
State statutes require that all deposits in financial institutions be fully collateralized by
U.S. Government obligations or its agencies and instrumentalities or direct obligations of
Texas or its agencies or instrumentalities that have a market value of not Tess than the
principal amount of the deposits. The City's deposits were fully insured or collateralized
as required by state statutes as of September 30, 2005. At year end, the carrying
amount of the City's deposits was a credit balance of ($293,802) primarily consisting of
outstanding checks and the respective bank balances totaled $386,645. Of the total
bank balance, the Federal Depository Insurance Corporation (FDIC) covered $100,000.
The remainder was covered by collateral with a value of $1,478,073. The collateral is
held by The Independent Banker's Bank (TIB) in the city's name under a joint
safekeeping agreement with First National Bank -Mid Cities.
Investments
State statutes, city bond ordinances, and city resolutions authorize the City's
investments. The City is authorized to invest in U.S. Government obligations and its
agencies and instrumentalities, fully insured or collateralized certificates of deposits, fully
collateralized repurchase agreements and reverse repurchase agreements, government
pools and no-load SEC registered money market funds consisting of any of these
securities listed.
33
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS — continued
GASB 40 Disclosures — continued
Investments — continued
The City's investments as of September 30, 2005, are:
Investments Carrvina Amount Fair Value
Weighted
Average
Maturity
(in days)
Credit Risk
U.S. Agency
Securities $ 37,147,003 $ 36,969,862 180.13 AAA
Government
Pools:
Texpool 14,773,677 14,773,667 22 AAAm
Logic 61 61 17 AAA
No-load Money
Market Fund:
Financial Investors
Trust 2.692.318 2.692.318 6 AAAm
Total $ 54.613.059 L54.4 5,908
In►. rest Rate Risk
In compliance with the City's Investment Policy, as of September 30, 2005, the City
minimized the interest rate risk, relating to the decline in market value of securities due
to rising interest rates in the portfolio by: limiting the weighted average maturity to 365
days and the stated maturity date of security types not to exceed 2 years, with the
exception of securities purchased related to reserve funds; structuring the investment
portfolio so that securities matured to meet cash requirements for ongoing operations,
thereby avoiding the need to sell securities in the secondary market prior to maturity;
monitoring credit ratings of portfolio positions to assure compliance with rating
requirements imposed by the Public Funds Investment Act; and investing operating
funds primarily in money market mutual funds, government investment pools, and
shorter -term securities with a weighted average maturity between 180 and 270 days.
Credit Risk
In compliance with the City's Investment Policy, as of September 30, 2005, the City
minimized credit risk losses due to default of a security issuer or backer, by; limiting
investments to the safest types of securities, investing in U.S. Agencies Bonds rated
AAA and Aaa by Standard & Poor's and Moody's respectively; pre -qualifying financial
institutions, brokers/dealers, and advisors with which the City will do business; and
diversifying the investment portfolio so that the potential losses on individual securities
are minimized.
34
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2005, was as follows:
Governmental Activities
Capital assets not being
depreciated:
Land
Construction in progess
Total Assets not being
depreciated:
Capital assets being
depreciated:
Buildings
Improvements
other than buildings:
Infrastructure
Machinery and equipment
Total capital assets being
depreciated:
Less accumulated
depreciation:
Buildings
Improvements
other than buildings
Infrastructure
Machinery and equipment
Total accumulated
depreciation:
Total capital assets being
depreciated, net
Total governmental fund
capital assets, net
Internal Service Funds
Capital assets being
depreciated:
Machinery and equipment
Total internal service
assets being
depreciated:
Less accumulated depreciation:
Machinery and equipment
Total internal service funds
capital assets, net
Balance
September 30,
2004
$ 21,487,063
7,261,041
28,748,104
35,544,610
3,519,960
41,054,391
4,842,508
84,961,469
6,067,661)
1,540,697)
16,212,807)
3,113,048)
( 26,934,213)
Increase
$ 290,926 $
3,924,364
4,215,290
155,559
1,288,515
205,514
1,649,588
1,045,305)
153,116)
1,269,205)
528,914)
2,996,540)
58,027,256 ( 1,346,952)
86,775,360
2,868,338
(
Decrease
AdjlTransfer
Balance
September 30,
2005
$ - $ 21,777,989
( 6,590,619) 4,594,786
( 6,590,619) 26,372,775
35,544,610
3,675,519
6,359,968 48,702,874
30,100) - 5,017,922
30,100) 6,359,968 92,940,925
(
( 1,693,813)
( 17,482,012)
30,100 ( 3,611,862)
30,100 - ( 29,900,653)
5,301,950 361,776 ( 301,880)
5,301,950 361,776 ( 301,880)
( 3,262,970) ( 535,108) 233,552
2,038,980 ( 173,332)
7,112,966)
6,359,968 63,040,272
230,651) 89,413,047
5,361,846
5,361,846
3,564,526)
68,328) - 1,797,320
Governmental Activities:
capital assets, net $ 88,814,340 $ 2,695,006 ($ 68,328) ($ 230,651) $ 91,210,367
35
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS — continued
Balance
September 30,
2004
Increase
Business -type activities:
Capital assess not being
depreciated:
Land $ 2,776,602 $ - $
Construction in progesc 2,579,821 2,852,840
Total Assets not being
depreciated: 5,356,423 2,852,840
Capital assets being
depreciated:
Buildings
Equipment
Inprovenents
Sanitary sever system
Total capital assets being
depredated:
Less ernimulated depredation:
Buildings
Equipment
I nprUUerrents
Sanitary sever system
Total axuT mated
depredation:
Total capital assets being
depredated, net
B siness-type activities
capital assets, net
4,077,523
2,482,380
35,176,056
44,012,241
85,748,200
875,224)
1,668,395)
8,346,751)
19,900,793)
(
(
(
( 30,791,163)
54,957,037
$ 60,313,460 $
Decrease
Min -ref fifer
Balance
Septetrter 30,
2005
$ $
( 1,310,423)
( 1,310,423)
2,776,602
4,122,238
6,898,840
4,077,523
12,877 ( 92,876) 2,402,381
962,868 36,138,924
2,774,770 1,310,423 48,097,434
3,750,515 ( 92,876) 1,310,423 90,716,262
123,655)
262,339)
1,017,228)
1,199,621)
2,603,043)
1,147,472
4,000,312 ($
( 9(38, 879)
80,534 ( 1,850,200)
( 9,363,979)
( 21,100,614)
80,534 ( 33,313,672)
12,342) 1,310,423 57,402,590
12,342) $ $ 64,301,430
Depreciation expense was charged as direct expense to programs of the primary
government as follows:
Governmental activities:
General and administrative
Public safety
Development services
Culture and recreation
Highways and streets
Total depreciation expense -Governmental activities
Business -type activities:
Water and sewer
Drainage Utility
Golf course
Other
Total depreciation expense -Business -type activities
$ 365,026
1,011,051
105,025
645,260
1,330.371
$3,456,733
$ 1,347,089
557,248
496,465
277.157
$2,677,959
36
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS — continued
Outstanding commitments at September 30, 2005, under authorized construction contracts
were approximately $1,740,420. These outstanding commitments are to be financed by
available deposit and investment balances, which include proceeds from previous bond
issuances.
NOTE 4. LONG-TERM DEBT
At September 30, 2005, bonds payable consisted of the following individual issues:
$9,700,000 Series 1995, Tax and Golf Surplus Revenue
Certificates of Obligation, dated October 24,1995, partially
refunded in 2004, due in annual installments through 2006
(2027 prior to refunding), bearing interest rates of 5.25%.
$1,485,000 Series 1996, Sales Tax Revenue Bonds, dated
August 15, 1996, due in annual installments through 2016,
bearing interest rates of 5.00% to 8.00%.
$5,500,000 Series 1998, Revenue Certificates of
Obligation, dated February 15, 1998, due in annual
installments through 2006, bearing interest rates of 4.25%
to 7.25%.
$1,000,000 Series 1999, Sales Tax Revenue Bonds, dated
October 15, 1999, due in annual installments through 2019,
bearing interest rates of 5.25% to 7.00%.
$4,300,000 Series 2000, General Obligation Bonds, dated
March 15, 2000, due in annual installments through 2008,
bearing interest rates of 5.15% to 6.65%.
$10,290,000 Taxable Series 2000, Revenue Certificates of
Obligation, dated April 1, 2000, due in annual installments
through 2025, bearing interest rates of 8.00% to 8.125%.
$8,600,000 Series 2000A, Revenue Certificates of
Obligation, dated May 1, 2000, due in annual installments
through 2008, bearing interest rates of 5.80% to 7.30%.
Governmental Business -type
1,000,000
235,000
815,000
520,000
9,510,000
1,010,000
$ 210,000
37
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT - continued
$3,260,000 Series 2000, Water and Sewer Revenue
Bonds, dated March 15, 2000, due in annual installments
through 2020, bearing interest rates of 5.25% to 6.75%,
$6,000,000 Series 2001, General Obligation Bonds, dated
April 1, 2001, due in annual installments through 2021,
bearing interest rates of 4.50% to 6.50%.
$1,630,000 Series 2001, Drainage Utility System Revenue
Refunding Bonds, dated October 15, 2001, due in annual
installments through 2010, bearing interest rates of 3.00%
to 4.00%.
$5,455,000 Series 2001, Revenue Certificates of
Obligation, dated April 1, 2001, due in annual installments
through 2021, bearing interest rates of 4.50% to 6.50%.
$6,430,000 Series 2002, Sales Tax Revenue Refunding
Bonds, dated June 14, 2002, due in annual installments
through 2015, bearing interest rates of 3.00% to 4.40%.
$5,490,000 Series 2003, General Obligation Refunding
Bonds, dated January 15, 2003, due in annual installments
through 2016, bearing interest rates of 3.00% to 4.00%.
$11,095,000 Series 2004, General Obligation Refunding
Bonds, dated February 15, 2004, due in annual installments
through 2027, bearing interest rates of 2.00% to 4.50%.
$3,200,000 Series 2004A, General Obligation Bonds, dated
June 15, 2004, due in annual installments through 2024,
bearing interest rates of 3.50% to 5.00%.
$4,380,000 Series 2004, General Obligation Bonds, dated
June 15, 2004, due in annual installments through 2024,
bearing interest rates of 3.50% to 5.25%.
$2,145,000 Series 2004, Waterworks and Sewer System
Revenue Bonds, dated June 15, 2004, due in annual
installments through 2024, bearing interest rates of 3.50%
to 5.25%.
$13,900,000 Series 2005, General Obligation Refunding
Bonds, dated March 8, 2005, due in annual installments
through 2020, bearing interest rates of 2.40% to 5.00%.
Governmental Business-tvoe
2,835,000
5,335,000
965,000
4,850,000
5,910,000
4,540,000
11,095,000
3,115,000
4,270,000
2,080,000
13,900,000
$ 55,010,000 $ 17,185,000
38
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — continued
The following is a summary of long-term debt transactions of the City for the year ended
September 30, 2005:
Govemmental Typg Activities
General obligation bonds
Certificates of obligation
Sales tax revenue bonds
Deferred loss on refunding bonds
Premium on bonds
Compensated absences
Total governmental type
activities
Business Tj Activities
Water and sewer revenue
bonds
Drainage utility revenue bonds
Tax and golf course
General obligation refunding
bonds•
Certificates of obligation
Deferred loss on refunding bonds
Total business type activities
Total government -wide adivilies
Balance
Beginning
of Year Increases Decreases
$ 17,525,000
31,615,000
8,310,000
( 216,869)
1,130,157
$ 13,900,000 ($ 4,015,000)
( 11,740,000)
( 585,000)
( 727,648) 67,575
508,038 ( 33,869)
1,124,345 ( 1,079,994)
Balance
End
of Year
$ 27,410,000
19,875,000
7,725,000
( 876,942)
474,169
1,174,508
Due
Within
One Year
$ 1,150,000
1,105,000
605,000
( 67,575)
33,869
93,961
$ 58,363,288 $ 14,804,735 ($ 17,386,288) $ 55,781,735 $ 2,920,255
$ 5,220,000 $
1,135,000
410,000
11,095,000
90,000
( 920,183).
$ 17,029,817 $
($ 305,000)
( 170,000)
( 200,000)
(
90,000)
48,166
$ 4,915,000
965,000
210,000
$ 195,000
180,000
210,000
11,095,000 90,000
872,017) ( 48t166�-
($ 716,834) $ 16,312,983 $ 626,834
$ 75, 393,105 $ 14,804, 735 ($ 18,103,122) $ 72, 094, 718 $ 3,547,089
On March 8, 2005, the City issued $13,900,000 in General Obligation Refunding Bonds with
an average interest rate of 4.50 percent to advance refund $4,090,000 of outstanding 1998
Series bonds with an average interest rate of 4.68 percent, $3,235,000 of outstanding 2000
Series bonds with an average interest rate of 5.44 percent, and $6,415,000 of outstanding
2000A Series bonds with an average interest rate of 5.86 percent. The net proceeds of
$14,475,415 ($13,900,000 par amount of bonds plus Debt Service Fund contribution of
$192,203 plus $508,038 of premium paid on bonds less $124,826 of underwriting fees,
insurance and other issuance costs) were used to purchase U.S. Securities. Those
securities were deposited in an irrevocable trust with an escrow agent to provide for all future
debt service payments on the 1998, 2000 and 200A Series bonds. As a result, the 1998,
2000 and 200A Series bonds are considered deceased and the liability for those bonds has
been removed from long-term debt.
The advance refunding resulted in a difference between the reacquisition price and the net
carrying amount of the old debt of $727,648. This difference, reported in the accompanying
financial statements as a deduction from bonds payable, is being charged to operations
through the year 2020 using the effective -interest method. The City completed the advance
refunding to reduce its total debt service payments over the next 15 years by $1,137,669 and
to obtain an economic gain (difference between the present values of the old and new debt
service payments) of $830,614.
In prior years, the City issued $5,490,000 in General Obligation Refunding Bonds to decease
$1,560,000 in General Obligation Bonds then outstanding and $3,625,000 in Certificates of
Obligation then outstanding. Of the $1,560,000 of General Obligation bonds and $3,625,000
of Certificates originally decease, $745,000 and $3,625,000 remains outstanding at
September 30, 2005.
39
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — continued
In prior years, the City issued $11,095,000 in General Obligation Refunding Bonds to
decease $8,495,000 in Tax and Golf Course Surplus Revenue Certificates of Obligation then
outstanding and $1,390,000 of Tax and Softball Park Surplus Revenue Certificates of
Obligation then outstanding. Of the $8,495,000 and $1,390,000 of certificates originally
deceased, $8,495,000 and $1,390,000 remains outstanding at September 30, 2005.
Annual Requirements to Retire Debt Obligations
The annual aggregate maturities for each bond type for the years subsequent to
September 30, 2005, are as follows:
General Obligation Bonds:
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026-2027
Governmental Activities Business Type Activities
Principal
$ 1,150, 000
1,455, 000
1,350,000
1,620,000
1,680,000
9,490,000
9,285,000
1,380,000
$ 27,410,000
Certificates of Obligation:
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
Interest
$ 1,172,386
1,119,310
1,065,081
1,014,487
957,755
3,727,001
1,457,457
117,100
$ 10,630,577
Governmental Activities
Principal
$ 1,105, 000
925,000
980,000
665,000
700,000
4,210,000
5,720,000
5,570,000
$ 19,875,000
Interest
$ 1,276,294
1,212,581
1,149,769
1,101,542
1,063,229
4,643,158
3,145,799
1,149, 078
$ 14,741,450
Principal
$ 90,000
445,000
455,000
465,000
480,000
2,625,000
2,435,000
2,795,000
1,305,000
$ 11,095,000
Interest
$ 401,007
395,657
386,657
376,876
365,644
1,603,584
1,140,016
613,932
59,513
$ 5,342,886
Business Type Activities
Principal
$ 210,000
$ 210,000
Interest
$ 11,025
$ 11,025
Total
$ 2,813,393
3,414,967
3,256,738
3,476, 363
3,483,399
17,445,585
14,317,473
4,906,032
1,364,513
$ 54,478,463
Total
$ 2,602,319
2,137,581
2,129,769
1,766,542
1,763,229
8,853,158
8,865,799
6,719,078
$ 34,837,475
40
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — continued
Annual Requirements to Retire Debt Obligations — continued
Revenue Bonds:
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
Governmental Activities
Principal
$ 605,000
620,000
650,000
675,000
705,000
4,050,000
420,000
Interest
$ 337,656
315,128
290,768
264,480
235,718
689,380
51,506
Business Type Activities
Principal
$ 375,000
390,000
410,000
430,000
450,000
1,395,000
1,830,000
600,000
$ 7,725,000 $ 2,184,636 $ 5,880,000
Interest
$ 287,211
270,636
253,736
236,556
218,369
862,817
459,938
76,750
Total
$ 1,604,867
1,595,764
1,604,504
1,606,036
1,609,087
6,997,197
2,761,444
676,750
$ 2,666,013 $ 18,455,649
Water and Sewer Revenue Bonds authorized and unissued as of September 30, 2005,
amounted to $1,200,000. The water and sewer bonds were authorized in 1970, and currently
the City Council has no intent to issue these bonds.
Water and Sewer Revenue Bonds and Refunding Bonds and Drainage Utility 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 and the net revenues
of the City's drainage utility system, respectively.
In accordance with the water and sewer revenue and refunding bond ordinances, the
following special reserves were established:
Reserve for revenue bond debt service - to be used for retirement of the current portion of
principal and interest payments due.
Reserve for emergency - to be used for payment of extraordinary repairs or replacements
to the system necessitated by an emergency for which no other funds are available.
Should the reserve for bond debt service and/or reserve for bond retirement prove
deficient, the reserve for emergency shall be used for the purpose of meeting principal
and/or interest requirements of the bonds.
All funding requirements for the above reserves were met at September 30, 2005. The
amounts reserved are reported as restricted assets of the Enterprise Funds.
Investments of funds included in the bond reserve and emergency accounts are restricted to
obligations of the United States or its agencies and instrumentalities (except for mortgage
pass -through securities).
The liability for compensated absences has typically been liquidated by the General Fund.
41
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a 50 year contract dated September 25, 1973, with the Trinity River
Authority of Texas (the "TRA") whereby the TRA agrees to provide supplemental water and
sewage treatment for consideration. Payments by the City are based on metered usage at
rates designed to charge the City a prorata share of the TRA's annual operating and
maintenance expenses, principal and interest requirement on bonds issued by the TRA.
Payments under this contract approximated $5,194,771 and are included as operating
expenses of the water and sewer fund.
The City is involved in a number of lawsuits arising in the ordinary course of business. In
the opinion of the City's legal counsel and management, any liability resulting from such
litigation would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The Water and Sewer Enterprise Fund historically bears the major portion of the operating
costs of the City's service center, which provides services to all City departments.
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various
operations of those funds.
Due to/from other funds
Receivable Fund
Water and Sewer Fund
Car Rental Fund
Softball Complex Fund
Car Rental Fund
funds are approved supplements to the
Payable Fund
Golf Course Fund
Golf Course Fund
Athletic Complex Fund
Half -Penny Sales Tax Fund
Due to/from's are primarily used as interfund loans for the following:
Amount
$ 232,565
1,656,475
278,000
7,618
$ 2,174,658
• Golf Course to Water and Sewer for capital improvements.
• Golf Course to Car Rental for capital improvements and equipment purchases.
• Athletic Complex to Softball Complex for reimbursement of bond payments.
• Half -penny Sales Tax to Car Rental for equipment purchases on behalf of the Golf
Course.
42
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 7. INTERFUND TRANSFERS — continued
Due to/from other funds — continued
The balances at September 30, 2005 will be paid during the next fiscal year end.
Interfund transfers
Transfers In
General Fund
General Fund
General Fund
General Fund
Debt Service Fund
Car Rental Tax Fund
Car Rental Tax Fund
Police Department Grant Funds
Half -Penny Sales Tax CIP Fund
Car Rental CIP Fund
Golf Course Fund
Golf Course Fund
Softball Complex Fund
Water and Sewer Fund
Equipment Replacement Fund
Risk Management Fund
Risk Management Fund
Insurance Fund
Street CIP Fund
Transfers Out
Car Rental Tax Fund
Water and Sewer Fund
Drainage Utility Fund
Golf Course Fund
Car Rental Tax Fund
Half -Penny Sales Tax Fund
Golf Course Fund
General Fund
Half -Penny Sales Tax Fund
Car Rental Tax Fund
General Fund
Hotel/Motel Tax Fund
Athletic Complex Fund
Golf Course Fund
Car Rental Tax Fund
General Fund
Water and Sewer Fund
Water and Sewer Fund
Car Rental Tax Fund
Transfers are primarily used to move funds from:
Amount
$ 730,020
708,711
33,827
7,208
201,881
480
33,129
37,861
25,000
375,000
12,244
161,910
8,840
4,651
264,500
260,000
180,000
500,000
282,500
$ 3,827,762
• The Car Rental Fund, the W&S, Drainage Utility Fund and the Golf Course fund to the
General Fund for General and Administrative charges.
• The Car Rental fund to the debt service fund for principal and interest on 2001 bonds.
• The Half -Penny Sales Tax Fund and the Golf Course Fund to the Car Rental Fund for
interest on interfund loans.
• The General Fund to the Police Department Grant Funds for matching grant funds.
• The Half —Penny Sales Tax fund to the Half -Penny Sales Tax CIP fund for Incentive
programs.
• The Car Rental Tax Fund to the Car Rental CIP Fund for funding of capital improvement
projects.
• The General Fund to the Golf Course fund for rebate of sales tax contributions.
• The Hotel/Motel Fund to the Golf Course for debt on the conference centre and
subsidizing monthly expenses at the conference centre.
43
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 7. INTERFUND TRANSFERS — continued
Interfund transfers — continued
• The Athletic Complex Fund to the Softball Complex Fund for interest on interfund loan.
• The Golf Course Fund to the W&S fund for interest on interfund loan.
• The Car Rental Tax Fund to the Equipment Replacement Fund for large equipment
purchases.
• The General Fund and the W&S fund to the risk management fund for property and
liability insurance.
• The W&S fund to the insurance fund to fund additional city contributions.
• The Car Rental Tax Fund to the Streets CIP Fund for infrastructure improvements.
NOTE 8. RISK MANAGEMENT
The City is exposed to various risks of Toss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The City participates in the Texas Municipal League Joint Self Insurance Fund ("TMLIF") to
provide both general liability and property insurance.
The City, along with other participating entities, contributes annual amounts determined by
TMLIF management. As claims arise they are submitted to and paid by TMLIF. The City is
not liable for payments beyond their annual contributions to TMLIF.
The City provides employee medical insurance coverage on a self -insured basis. Premiums
are paid into a separate Insurance Fund by other funds, by the City's employees, and by
retirees and are available to pay claims, claim reserves and administrative costs of the
program. An excess coverage insurance policy covers individual claims in excess of
$100,000 and aggregate claims in excess of $3,281,175. During fiscal 2005, the City and
City's employees contributed approximately $1,748,925 and $781,282, respectively, for
medical coverage. The City's contributions are accounted for as interfund services provided
and used. Claims liabilities are based on estimates of the ultimate cost of claims (including
future claim adjustment expenses) that have been reported but not settled, and of claims
that have been incurred but not reported, and are accounted for in the Internal Service
Insurance Fund.
The City is also self -insured for workers' compensation claims. Contributions are made to a
separate Risk Management Fund by other funds and are available to pay claims, claim
44
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 8. RISK MANAGEMENT — continued
reserves and administrative costs of the program. An excess coverage insurance policy
covers individual claims in excess of $300,000. During 2005, the City contributed
approximately $256,270 to the fund for workers' compensation.
Changes in the balances of claims liabilities are as follows:
2005 2004
Unpaid claims, beginning of year $ 204,418 $ 265,727
Incurred claims 2,820,166 2,660,403
Paid claims 2,811,302 2.721.712
Unpaid claims, end of year $ 21$.282 $ 204,41$
The City had no significant reductions in insurance coverage from the year ended
September 30, 2004. Settlement amounts have not exceeded insurance coverage for the
year ended September 30, 2005 or any of the three preceding years ended September 30.
NOTE 9. EMPLOYEE RETIREMENT SYSTEM
Plan Description
The City provides pension benefits for all of its full-time employees through a
nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas
Municipal Retirement System (TMRS), one of 801 administered by TMRS, an agent
multiple -employer public employee retirement system. Each of the 801 Municipalities
have an annual, individual actuarial valuation performed. All assumptions for the
December 31, 2003 valuations are contained in the 2003 TMRS Comprehensive Annual
Financial Report, a copy of which may be obtained by writing to P. O. Box 149153,
Austin, Texas 78714-9153.
Benefits
Benefits depend upon the sum of the employee's contributions to the plan, with interest,
and City -financed monetary credits, with interest. At the date the plan began, the City
granted monetary credits for service rendered before the plan began of a theoretical
amount equal to two times what would have been contributed by the employee with
interest, prior to establishment of the plan. Monetary credits for service since the plan
began are a percent (100%, 150%, or 200%) of the employee's accumulated
contributions. In addition, the City can grant, as often as annually, another type of
monetary credit referred to as an updated service credit which is a theoretical amount
which, when added to the employee's accumulated contributions and the monetary
credits for service since the plan began, would be the total monetary credits and
employee contributions accumulated with interest if the current employee contribution
rate and the City matching percent had always been in existence and if the employee's
salary had always been the average of his salary in the last three years that are one
year before the effective date. At retirement, the benefit is calculated as if the sum of the
employee's accumulated contributions with interest and the employer -financed monetary
credits with interest were used to purchase an annuity.
45
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. EMPLOYEE RETIREMENT SYSTEM — continued
Plan Description — continued
The plan provisions are adopted by the governing body of the City, within the options
available in the state statutes governing TMRS and within the actuarial constraints also
in the statutes. Plan provisions for the City were as follows:
Deposit Rate:
Matching Ratio (City to Employee):
A member is vested after
7%
2-1
5 yrs
Members can retire at certain ages, based on the years of service with the City. The
Service Retirement Eligibilities for the city are: 5 yrs/age 60, 20 yrs/any age
Contributions
Under the state law governing TMRS, the actuary annually determines the City
contribution rate. This rate consists of the normal cost contribution rate and the prior
service contribution rate, both of which are calculated to be a level percent of payroll from
year to year. The normal cost contribution rate finances the currently accruing monetary
credits due to the City matching percent, which are the obligation of the City as of an
employee's retirement date, not at the time the employee's contributions are made. The
normal cost contribution rate is the actuarially determined percent of payroll necessary to
satisfy the obligation of the City to the unfunded (overfunded) actuarial liability (asset) over
the remainder of the plan's 25-year amortization period. The unit credit actuarial cost
method is used for determining the City contribution rate. Both the employees and the
City make contributions monthly. Since the City needs to know its contribution rate in
advance for budgetary purposes, there is a one-year delay between the actuarial valuation
that is the basis for the rate and the calendar year when the rate goes into effect. (i.e.
December 31, 2004 valuation is effective for rates beginning January 2006)
Schedule of Actuarial Liabilities and Funding Progress
Actuarial Valuation Date 12/31/2004
Actuarial Value of Assets $54,239,808
Actuarial Accrued Liability $67,007,298
Percentage Funded 80.9%
Unfunded Actuarial Accrued Liability (UAAL) $12,767,490
Annual Covered Payroll $17,435,628
UAAL as a Percentage of Covered Payroll 73.2%
Net Pension Obligation (NPO) at the Beginning of Period $
46
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. EMPLOYEE RETIREMENT SYSTEM — continued
Schedule of Actuarial Liabilities and Funding Progress — continued
Annual Pension Cost:
Annual Required Contribution (ARC)
Interest on NPO
Adjustment to the ARC
Total annual pension cost
$ 2,521,328
$ 2,521,328
Contributions made ( 2,521,328)
Increase in NPO -
NPO at the end of the period
Trend information for the past three years for TMRS is as follows:
Year
Annual
Pension Cost
(APC)
Percentage
of APC
Contributed
2002 $ 2,240,904 100%
2003 2,311,438 100
2004 2,521,328 100
The following actuarial assumptions were used:
Net Pension
Obligation
Actuarial Cost Method Unit Credit
Amortization Method Level Percent of Payroll
Remaining Amortization 25 years — Open Period
Asset Valuation Method Amortized Cost
Investment Rate of Return 7%
Projected Salary Increases None
Includes Inflation at 3.5%
Cost of Living Adjustments None
NOTE 10. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2005, the following individual funds had an excess of expenditures
over appropriations:
Car Rental Tax Fund
Hotel/Motel Fund
Police Drug Enforcement Fund
Public Safety Grant Funds
($ 864,581)
( 383)
( 7,072)
( 100,067)
47
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN TEXAS
MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2005
Actuarial
Valuation
Date
Actuarial
Value of
Assets
12/31/02 $ 47,212,730
12/31/03 50,659,933
12/31/04 54,239,808
Actuarial
Accrued
Liability
Percentage
Funded
$ 57,449,068 82.18%
63,214,918 80.14%
67,007,298 80.95%
Unfunded
Actuarial
Accrued
Liability
$ 10,236,338
12,554,985
12,767,490
Annual
Covered
Payroll
$ 16,788,857
17,207,460
17,435,628
Unfunded Actuarial
Accrued Liability
as a Percentage
of Covered Payroll
60.97%
72.96%
73.23%
48
CITY OF EULESS, TEXAS
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
YEAR ENDED SEPTEMBER 30, 2005
REVENUES:
General property tax:
Current and delinquent taxes
Penalty and interest
Gross receipts tax:
Southwestern Bell Telephone Company
Texas Utilities Electric Company
Texas Utility Gas Company
Cable TV
City Garbage Service
Water and Sewer system
Others
General sales tax
Fines and fees:
Municipal Court fines
Jail income
Dog licenses and pound fees
Ambulance fees
Library fees
Zoning fees
Deferred adjudication fee
Licenses and permits:
Building permits
Miscellaneous permits
Minimum housing
Interest income
Intergovernmental
Other revenues:
Rental income
Swimming pools
Miscellaneous income
Budgeted Amounts
Original Final
$ 7,115,163
40,000
7,155,163
450,000
1,525,000
150,000
230,000
133,000
689,300
92,700
3,270,000
6,253,125
2,454,700
250,000
14,500
290,000
37,000
18,000
195,000
3,259,200
400,000
198,000
88,000
686,000
175,000
284,920
123,006
15,000
97,000
235,006
Total revenues $ 21,318,414
$ 7,115,163
40,000
7,155,163
450,000
1,525,000
150,000
230,000
133,000
689,300
92,700
3,270,000
6,253,125
2,454,700
250,000
14,500
290,000
37,000
18,000
195,000
3,259,200
400,000
198,000
88,000
686,000
175,000
284,920
123,006
15,000
97,000
235,006
$ 21,318,414
Actual
GAAP
Basis
$ 7,360,668
81,614
Variance with
Final Budget
Positive
(Negative)
$ 245,505
41,614
7,442,282 287,119
414,288 ( 35,712)
1,512,165 ( 12,835)
278,992 128,992
271,315 41,315
130,391 ( 2,609)
708,711 19,411
93,538 838
3,409,400 139,400
6,075,072 ( 178,053)
2,840,645 385,945
139,592 ( 110,408)
15,021 521
439,758 149,758
35,880 ( 1,120)
11,990 ( 6,010)
179,441 ( 15,559)
3,662,327 403,127
573,112 173,112
203,663 5,663
93,235 5,235
870,010 184,010
210,303 35,303
303,713 18,793
137,105
16,090
115,191
268,386
$ 22,241,493
14,099
1,090
18,191
33,380
$ 923,079
49
CITY OF EULESS, TEXAS
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
YEAR ENDED SEPTEMBER 30, 2005
(CONTINUED)
EXPENDITURES:
Current:
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
2,697,200
999,231
5,682,176
725,049
13,227,259
Total expenditures 23,330,915
Excess (deficiency) of
revenues over expenditures
2,697,200
' 999,231
5,682,176
725,049
13,227,259
2,605,502
937,603
5,244,106
670,742
13,096,613
23,330,915 22,554,566
91,698
61,628
438,070
54,307
130,646
776,349
( 2,012,501) ( 2,012,501) ( 3.13,073) 1,699,428
Other financing sources (uses):
Transfers in 1,450,320 1,450,320 1,479,766 29,446
Transfers out ( 293,930) ( 293,930) ( 310,105) ( 16,175)
Total other financing
sources (uses) 1,156,390 1,156,390 1,169,661 13,271
Net change in fund balance ( 856,111) ( 856,111) 856,588 1,712,699
Fund balance, beginning of year 5,746,117 5,746,117 5,746,117 -
Fund balance, end of year $ 4,890,006 $ 4,890,006 $ 6,602,705 $ 1,712,699
50
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
CAR RENTAL TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2005
Budgeted Amounts
Original Final
Revenues:
Car rental tax $ 9,500,000
Interest income 200,000
Total revenues 9,700,000
Expenditures:
General and administrative 6,333,333
Total expenditures 6,333,333
Other financing sources (uses):
Transfers in
Transfers out
Total other
financing sources (uses)
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
$ 9,500,000
200,000
Actual
GAAP
Basis
$ 10,841,899
182,149
9,700,000 11,024,048
6,333,333
6,333,333
7,197,914
Variance with
Final Budget
Positive
(Negative)
$ 1,341,899
( 17,851)
1,324,048
864, 581)
7,197,914 ( 864,581)
61,262 61,262 33,609 ( 27,653)
( 1,700,901) ( 1,975,901) ( 1,853,901) 122,000
( 1,639,639) ( 1,914,639) ( 1,820,292)
1,727,028
3,667,057
$ 5,394,085
1,452,028
3,667,057
$ 5,119,085
2,005,842
3,667,057
$ 5,672,899
94,347
553,814
$ 553,814
51
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED SEPTEMBER 30, 2004
NOTE 1. BUDGET BASIS OF ACCOUNTING
The City Council follows these procedures in establishing budgetary data reflected in the
financial statements:
1. Prior to August 1, the City Manager submits to the City Council a proposed operating
budget for the fiscal year commencing the following October 1. The operating
budget includes proposed expenditures and means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to September 21, the budget is legally enacted through passage of an
ordinance and a budgetary report is prepared.
4. The City Manager is authorized to transfer budgeted amounts between departments
within any fund; however, any revision that alters the total expenditures of any fund
must be approved by the City Council. The budget presented reflects revisions
made during the year. The legal level of control is at the fund level.
5. A budget is legally adopted for the General Fund and Special Revenue Funds on a
basis consistent with accounting principles generally accepted in the United States of
America. Formal budgetary integration is employed as a management control device
during the year for the General Fund and Special Revenue Funds. Appropriations
and encumbrances lapse at year-end.
6. Formal budgetary integration is not employed for the Debt Service Funds because
effective budgetary control is alternatively achieved through general obligation bond
indenture provisions.
7. Budgetary data for the Capital Projects Funds has not been presented in the
accompanying basic financial statements as such funds are budgeted over the life of
the respective project and not on an annual basis. Accordingly, formal budgetary
integration of the Capital Projects Funds is not employed and comparison of actual
results of operations to budgetary data for such funds is not presented.
8. Appropriated budgets for the Proprietary Funds are also adopted but have not been
presented since reporting on such budgets is not legally required.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and
Actual — General Fund presents a comparison of budgetary data to actual results. The
General Fund utilizes the same basis of accounting for both budgetary purposes and
actual results.
52
INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
NON MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to
expenditures for particular purposes.
Hotel/Motel Fund - to account for the operations and expenditures for which hotel/motel
occupancy taxes are used. Occupancy tax revenues are used primarily for advertising
and promotion of the City.
Police Drug Enforcement Fund - to account for proceeds from sale of assets seized in
connection with drug arrests. Revenues are used solely for police department
expenditures.
Half -Penny Sales Tax Fund - to account for the sales tax revenues and expenditures of
the Euless Development Corporation, a component unit of the City of Euless. The
expenditures of the half -penny sales tax can only be spent on parks, library, debt
service, and economic development activities within the City of Euless.
DEA Task Force Fund - to account for the City's portion of revenues and expenditures
received from collection of confiscated drug money. Money is distributed to various
other cities that are also involved in the collection process.
Crime Control and Prevention District Fund - to account for the revenues and
expenditures of this component unit of the City of Euless. The revenues are collected
from sales taxes and expenditures can only be spent for police department operations
and capital as approved by the Crime Control and Prevention District Board.
Public Safety Grant Funds - to account for grant revenues received by the police and fire
departments which must be spent in accordance with the grant provisions.
53
NON MAJOR GOVERNMENTAL FUNDS — continued
CAPITAL PROJECT FUNDS
Capital project funds are used to account for the acquisition and construction of major
capital facilities other than those financed by proprietary funds and trust funds.
Park Improvements Certificates of Obligation Fund (1990) - to account for the
construction of park facilities. Financing was provided from the sale of Certificates of
Obligation of $2,000,000 in 1990.
Street Assessments Fund - to account for receipt of funds for special assessment
collection and subsequent construction of improvements to various street and drainage
projects.
Half -Penny Sales Tax Construction in Progress Fund - to account for bond proceeds to
be expended for construction projects funded by the Euless Development Corporation, a
component unit of the City of Euless.
Developers' Contribution Fund - to account for funds received for the purpose of making
new and future improvements to various development areas within the City.
Car Rental Capital Projects Fund — to account for building and infrastructure projects
that are funded from the short-term motor vehicle tax.
Police Facility Construction Fund — to account for the construction of a police facility.
General Obligation Capital Projects Fund — to account for various construction projects
within the City.
54
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2005
ASSETS
Deposits and investments
Accounts receivable
Accrued interest receivable
Prepaids
Due from other governments
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued salaries and wages
Due to other funds
Total liabilities
Fund Balances:
Reserved:
Reserve for debt service
Reserve for historical
preservation
Reserve for development
agreements
Unreserved, undesignated
Total fund balances
Hotel/
Motel
Fund
Police
Drug
Enforce-
ment
Fund
Special Revenue Funds
Crime
Half DEA Control and
Penny Task Prevention
Sales Tax Force District
Fund Fund Fund
$ 84,619 $ 236,485 $ 1,975,710 $
51,900
9,200
9,482
495,480
$ 405,110
1,050
1,180
223,566
Public
Safety
Grant
Funds Total
$ 25,191 $ 2,727,115
26,168 78,068
10,250
10,662
719,046
$ 136,519 $ 236,485 $ 2,489,872 $ - $ 630,906 $ 51,359 $ 3,545,141
1,245
135,274
136,519
$ 84,919 $
30,356
7,618
122,893
950,618
236,485 1,416,361
236,485 2,366,979
10,785 $ 3,423 $ 99,127
40,534 1,756 72,646
7,618
51,319
5,179 '179,391
950,618
1,245
579,587 46,180 2,413,887
579,587 46,180 3,365,750
Total liabilities and fund balances $ 136,519 $ 236,485 $ 2,489,872 $ - $ 630,906 $ 51,359 $ 3,545,141
55
Capital Projects Funds
Park
Improvements Half -Penny Police G.O.
Certificates of Street Sales Tax Developers' Car Rental Facility Capital Total Nonmajor
Obligation Assessments Construction . Contribution Capital Projects Construction Projects Governmental
Fund (1990) Fund in Progress Fund Fund Fund Fund Totals Funds
$ 3,272 $ 44,970 $ 336,529 $ 1,461,261 $ 613,564 $ 133,255 $ 42,741 $ 2,635,592 $ 5,362,707
- - 34,712 - 34,712 112,780
1,232 8,895 3,825 - 13,952 24,202
3,000 3,000 13,662
719,046
$ 3,272 $
44,970 $ 337,761 $ 1,470,156 $
655,101 $ 133,255 $ 42,741 $ 2,687,256 $ 6,232,397
$ 1,680 $ 389,006 $ $ $ 390,686 $ 489,813
- - - 72,646
7,618
1,680 389,006 390,686 570,077
950,618
1,245
1,470,156 - - 1,470,156 1,470,156
3,272 44,970 336,081 - 266,095 133,255 42,741 826,414 3,240,301
3,272 44,970 336,081 1,470,156 266,095 133,255 42,741 2,296,570 5,662,320
$ 3,272 $ 44,970 $ 337,761 $ 1,470,156 $ 655,101 $ 133,255 $ 42,741 $ 2,687,256 $ 6,232,397
56
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2005
Special Revenue Funds
Police Crime
Drug Half DEA Control and Public
Hotel/ Enforce- Penny Task Prevention Safety
Motel ment Sales Tax Force District Grant
Fund Fund Fund Fund Fund Funds Totals
Revenues:
General property tax $ - $ $ $ - $ $ $
Gross receipts tax 179,989 - 179,989
General sales tax - - 2,430,029 - 1,143,878 3,573,907
Interest income 1,828 4,946 29,917 15 9,449 46,155
DEA revenues - 14,607 - 14,607
Other revenues 162 - - 168,788 168,950
Total revenues 181,979 19,553 2,459,946 15 1,153,327 168,788 3,983,608
Expenditures:
Culture and recreation 1,144,123 1,144,123
Development services 141,470 141,470
General and administrative 10,383 41,949 52,332
Highways and streets - - - - - -
Public safety 12,072 1,017 1,094,454 195,361 1,302,904
Debt service
Principal 585,000 585,000
Interest and fiscal charges 357,970 357,970
Capital outlay
and maintenance
Total expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other
financing sources (uses)
Net change in fund balances
Fund balance,
beginning of year
Fund balance, end of year
10,383 12,072
2,270,512 1,017 1,094,454
(161,910) (25,480)
195,361 3,583,799
37,861
37,861
( 187,390)
( 161,910) ( 25,480) 37,861 ( 149,529)
9,686 7,481 163,954 ( 1,002) 58,873 11,288 250,280
126,833 229,004 2,203,025 1,002 520,714 34,892 3,115,470
$ 136,519 $ 236,485 $ 2,366,979 $ $ 579,587 $ 46,180 $ 3,365,750
57
Capital Projects Funds
Park
Improvements Half -Penny Police G.O.
Certificates of Street Sales Tax Developers' Car Rental Facility Capital Total Nonmajor
Obligation Assessments Construction Contribution Capital Projects Construction Projects Governmental
Fund (1990) Fund in Progress Fund Fund Fund Fund Totals Funds
$ $ $ $ $ $ $ $ -
- - 179,989
3,573,907
8,934 27,157 34,561 728 681 72,061 118,216
14,607
824,429 824,429 993,379
8,934 27,157 858,990 728 681 896,490 4,880,098
141,220 - 141,220 1,285,343
141,470
52,332
10,269 10,269 1,313,173
585,000
357,970
4,726 3,074,457 3,079,183 3,079,183
4,726 141,220 3,074,457 10,269 3,230,672 6,$14,471
25,000 375,000 - 400,000 437,861
- - ( 187,390)
25,000 375,000 400,000 250,471
4,726) ( 107,286) 27,157 ( 1,840,467) ( 9,541) 681 ( 1,934,182) ( 1,683,902)
7,998 44,970 443,367 1,442,999 2,106,562 142,796 42,060 4,230,752 7,346,222
3,272 $ 44,970 $ 336,081 $ 1,470,156 $ 266,095 $ 133,255 $ 42,741 $ 2,296,570 $ 5,662,320
58
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
HOTEL/MOTEL SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2005
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues:
Gross receipts tax $ 150,000 $ 150,000 $ 179,989 $ 29,989
Other revenues - 162 162
Interest income - 500 500 1,828 1,328
Total revenues 150,500 150,500 181,979 31,479
Expenditures:
General and administrative 10,000 10,000 10,383 ( 383)
Total expenditures 10,000 10,000 10,383 ( 383)
Other financing sources (uses):
Transfers out ( 161,910) ( 161,910) J 161,9101
Total other
financing sources (uses) ( 161,910) ( 161,910) ( 161,910)
Net change in fund balance ( 21,410) ( 21,410) 9,686 31,096
Fund balance, beginning of year 126,833 126,833 126,833
Fund balance, end of year $ 105,423 $ 105,423 $ 136,519 $ 31,096
59
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
POLICE DRUG ENFORCEMENT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2005
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues:
DEA revenues $ $ $ 14,607 $ 14,607
Interest income 5,000 5,000 4,946 ( 54)
Total revenues 5,000 5,000 19,553 14,553
Expenditures:
Public safety 5,000 5,000 12,072 ( 7,072)
Total expenditures 5,000 5,000 12,072 j 7,072)
Other financing sources (uses):
Transfers out
Total other
financing sources (uses)
Net change in fund balance 7,481 7,481
Fund balance, beginning of year 229,004 229,004 229,004
Fund balance, end of year $ 229,004 $ 229,004 $ 236,485 $ 7,481
60
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
HALF -PENNY SALES TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2005
Revenues:
General sales tax
Interest income
Total revenues
Expenditures:
General and administrative
Culture and recreation
Development services
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Other financing sources (uses):
Transfers out
Total other
financing sources (uses)
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
$ 2,501,250
12,000
(
2,513,250
364,446
1,185, 857
181,464
585,000
357,970
2,674,737
55,573)
( 55,573)
( 217,060)
2,203,025
$ 1,985,965
$ 2,501,250
12,000
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
$2,430,029 ($ 71,221)
29,917 17,917
2,513,250 2,459,946 ( 53,304)
364,446
1,185, 857
181,464
585,000
357,970
2,674,737
1,144,123 ( 779, 677)
141,470 1,044,387
41,949 139,515
585,000
357,970
2,270,512
55,573) ( 25,480)
( 55,573)
( 217,060)
2,203,025
$ 1,985,965
( 25,480)
163,954
2,203,025
$ 2,366,979 $ 381,014
404,225
30,093
30,093
381,014
61
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
DEA TASK FORCE SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2005
Revenues:
DEA revenues
Interest income
Total revenues
$
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
$ $ $
15 15
15 15
Expenditures:
Public safety 1,258 1,258 1,017 241
Total expenditures 1,258 1,258 1,017 241
Net change in fund balance ( 1,258) ( 1,258) ( 1,002) 256
Fund balance, beginning of year 1,002 1,002 1,002
Fund balance, end of year ($ 256) ($ 256) $ $ 256
62
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
CRIME CONTROL AND PREVENTION DISTRICT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2005
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Originaa Final Basis (Negative)
Revenues:
General sales tax $ 1,165,000 $ 1,165,000 $ 1,143,878 ($ 21,122)
Other revenue
Interest income 7,500 7,500 9,449 1,949
Total revenues 1,172, 500 1,172,500 1,153,327 ( 19,173)
Expenditures:
Public safety 1,289,764 1,289,764 1,094,454 195,310
Total expenditures 1,289,764 1,289,764 1,094,454 195,310
Net change in fund balance ( 117,264) ( 117,264) 58,873 176,137
Fund balance, beginning of year 520,714 520,714 520,714
Fund balance, end of year $ 403,450 $ 403,450 $ 579,587 $ 176,137
63
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
PUBLIC SAFETY GRANT FUNDS SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2005
Revenues:
Other revenues
Interest income
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
$ 74,364 $ 74,364 $ 168,788 $ 94,424
Total revenues 74,364 74,364 168,788 94,424
Expenditures:
Public safety 95,294 95,294 195,361 100,067
Total expenditures 95,294 95,294 195,361 100,0671.
Other financing sources (uses):
Transfers in 20,930 20,930 37,861 16,931
Total other
financing sources (uses) 20,930 20,930 37,861 16,931
Net change in fund balance 11,288 11,288
Fund balance, beginning of year 34,892 34,892 34,892
Fund balance, end of year $ 34,892 $ 34,892 $ 46,180 $ 11,288
64
NON MAJOR PROPRIETY FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises - where the intent of the government's council is that the
costs of providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges; or where the government's council has decided that
periodic determination of net income is appropriate for accountability purposes.
Recreation Classes - to account for the operation of recreational programs and
activities which are offered to groups and individuals on a fee basis.
Softball Complex Fund - to account for the operation and maintenance of the
softball complex, supported primarily by user charges.
Athletic Complex Fund - to account for the operation and maintenance of the
athletic complex, supported primarily by user charges.
Arbor Daze Fund — to account for the receipts and disbursements of the Arbor
Daze Festival, supported primarily by user charges.
65
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2005
(1 of 2)
Recreation Softball Athletic Arbor
Classes Complex Complex Daze Totals
ASSETS
Current assets:
Deposits and investments $ 307,056 $ 424,863 $ 188,771 $ 109,373 $ 1,030,063
Accounts receivable and unbilled revenue 2,644 3,130 - 540 6,314
Accrued interest receivable - - - -
Prepaids and deposits 1,101 10,227 - 33 11,361
Inventory 11,296 2,571 - 13,867
Due from otherfunds 278,000 278,000
Total current assets 310,801 727,516 191,342 109,946 1,339,605
Non -current assets:
Bond issuance cost 37,947 14,259 52,206
Less accumulated amortization 3,794 6,705 10,499
Net bond issuance cost 34,153 7,554 41,707
Utility plant and equipment in service, at cost
Land 584,532 584,532
Building - 328,180 160,095 488,275
Equipment 59,113 110,836 57,115 - 227,064
Improvements - 608,896 5,122,655 5,731,551
Construction in progress - 1,848,043 1,848,043
59,113 1,632,444 7,187,908 8,879,465
Less accumulated depreciation 15,775 428,394 1,332,064 1,776,233
Net utility plant and equipment in service 43,338 1,204,050 5,855,844 7,103,232
Total non -current assets 43,338 1,238,203 5,863,398 7,144,939
TOTAL ASSETS 354,139 1,965,719 6,054,740 109,946 8,484,544
66
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2005
Recreation Softball Athletic Arbor
Classes Complex Complex Daze
(2 of 2)
Totals
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable $ 23,047 $ 17,236 $ 10,331 $ $ 50,614
Accrued salaries and wages 541 25,633 2,025 28,199
Current portion of bonds payable - 90,000 - 90,000
Total current liabilities 23,588 132,869 12,356 168,813
Non -current liabilities:
Bonds payable - 1,322,432 - 1,322,432
Due to other funds - 278,000 278,000
Total non -current liabilities - 1,322,432 278,000 1,600,432
Total liabilities 23,588 1,455,301 290,356 1,769,245
Net Assets:
Invested in capital assets, net of debt 43,338 ( 208,382) 5,855,844 - 5,690,800
Unrestricted 287,213 718,800 ( 91,460) 109,946 1,024,499
Total net assets $ 330,551 $ 510,418 $ 5,764,384 $ 109,946 $ 6,715,299
67
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET ASSETS
NON -MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2005
Operating revenues:
Recreation fees
Service fees and miscellaneous
Total operating revenues
Operating expenses:
Recreation classes
Athletic complex
Softball complex
Arbor Daze
Depreciation
Amortization
Recreation
Classes
Softball Athletic
Complex Complex
Arbor
Daze
Totals
$ 380,484 $ - $ $ - $ 380,484
923,246 276,216 873,959 2,073,421
380,484 923,246 276,216 873,959 2,453,905
349,627
10,410
Total operating expenses 360,037
Operating income (loss) 20,447
Nonoperating revenues (expenses)
Investment income
Interest on bonds
Total nonoperating revenues
(expenses), net
Income (loss) before transfers
Transfers in
Transfers out
7,798
349,627
199,250 199,250
854,176 - 854,176
895,641 895,641
71,938 183,078 265,426
6,020 679 - 6,699
932,134
383,007 895,641 2,570,819
8,888) ( 106,791) ( 21,682) ( 116,914)
12,165
(44,199)
7,798 ( 32,034)
8,401
8,401
3,094
31,458
( 44,199)
3,094 ( 12,741)
28,245 ( 40,922) ( 98,390) ( 18,588) ( 129,655)
Change in net assets 28,245
Net assets, beginning of year 302,306
8,840
( 8,840)
8,840
( 8,840)
( 32,082) ( 107,230) ( 18,588) ( 129,655)
542,500 5,871,614 128,534 6,844,954
Net assets, end of year $ 330,551 $ 510,418 $ 5,764,384 $ 109,946 $ 6,715,299
68
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON -MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2005
OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Net cash provided by (used in ) operating activities
NONCAPITAL FINANCING ACTIVITIES
Transfer in
Transfer out
Net cash provided by (used in)
noncapital financing activities
Recreation Softball Athletic Arbor
Classes Complex Complex Daze Totals
$ 378,896 $ 921,251 $ 269,501 $ 853,763 $ 2,423,411
( 255,217) ( 551,241) ( 180,295) ( 894,877) ( 1,881,630)
( 85,488) ( 320,043) ( 55,936) ( 461,467)
38,191 49,967 33,270 ( 41,114) 80,314
26,840 - 26,840
( 26,840) ( 26,840)
26,840 ( 26,840)
CAPITAL AND RELATED FINANCING ACTIVITIES
Interest paid on bonds ( 44,199) ( 44,199)
Reduction in bonds payable ( 90,000) ( 90,000)
Net proceeds from refunding bond issuance
Loss on refunding bond issuance
Bond issuance costs - - -
Purchase of utility plant and equipment in service ( 3,170) ( 21,562) ( 706,174) ( 730,906)
Net cash used in capital
and related financing activities ( 3,170) ( 155,761) ( 706,174) ( 865,105)
INVESTING ACTIVITIES
Interest received on investments 7,798 12,185 14,566 3,094 37,643
Net cash provided by
investing activities 7,798 12,185 14,566 3,094 37,643
Net increase (decrease) in cash and cash equivalents 42,819 ( 66,769) ( 685,178) ( 38,020) ( 747,148)
Cash and cash equivalents, beginning of year 264,237 491,632 873,949 147,393 1,777,211
Cash and cash equivalents, end of year $ 307,056 $ 424,863 $ 188,771 $ 109,373 $ 1,030,063
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss) $ 20,447 ($ 8,888) ($ 106,791) ($ 21,682) ($ 116,914)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation and amortization 10,410 77,958 183,757 272,125
Loss on disposal of equipment
Changes in assets and liabilities:
Accounts receivable and unbilled revenue ( 1,588) ( 1,995) - ( 196) ( 3,779)
Prepaids and deposits ( 758) ( 1,915) 2,000 764 91
Inventory - 1,377 54 1,431
Accounts payable 12,512 ( 13,542) ( 39,060) ( 40,090)
Accrued salaries and wages ( 2,832) ( 3,028) 25 - ( 5,835)
Deferred revenue - - ( 6,715) ( 20,000) ( 26,715)
Net cash provided by (used in) operating activities $ 38,191 $ 49,967 $ 33,270 ($ 41,114) $ 80,314
69
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by
one department to other departments of the government and to other government units, on a
cost reimbursement basis.
Equipment Replacement Fund - to account for the accumulation of funds planned
to be used in replacing existing equipment. Funding is provided annually by the
user departments.
Insurance Fund - to account for the revenue and expenses resulting from providing
health insurance to the City's employees.
Risk Management Fund - to account for the revenue and expenses applicable to
the self-insurance program for worker's compensation and for general liability and
property claims.
70
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2005
Risk
Equipment Manage -
Replacement Insurance ment
Fund Fund Fund
Total
ASSETS
Deposits and investments $ 1,540,746 $ 980,998 $ 871,820 $ 3,393,564
Accounts receivable - 268,365 268,365
Prepaid expenses 269,177 269,177
Accrued interest receivable 5,224 10,364 1,968 17,556
Total current assets
Utility plant and equipment, at cost
Equipment
Less accumulated depreciation
Net utility plant and
equipment in service
TOTAL ASSETS
LIABILITIES
Accounts payable
Accrued salary and wages
Accrued insurance claims
Total current liabilities
1,815,147 1,259,727 873,788 3,948,662
5,295,866 54,956 11,024 5,361,846
5,295,866 54,956 11,024 5,361,846
3,498,546 54,956 11,024 3,564,526
1,797,320 - - 1,797,320
3,612,467 $ 1,259,727 $ 873,788 $ 5,745,982
69,020 $ 12,294 $ 110,805 $ 192,119
12,266 2,949 15,215
213,282 213,282
69,020 237,842 113,754 420,616
NET ASSETS
Invested in capital assets, net of related debt 1,797,320 1,797,320
Unrestricted 1,746,127 1,021,885 760,034 3,528,046
Total net assets $ 3,543,447 $ 1,021,885 $ 760,034 $ 5,325,366
71
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2005
Operating revenues:
Insurance premiums
Service fees and miscellaneous
Total operating revenues
Operating expenses:
General and administrative
Insurance costs
Depreciation
Total operating expenses
Operating loss
Non -operating revenues:
Investment income
Loss on sale of capital assets
Total nonoperating revenues
Income (loss) before
transfers
Transfers in
Change in net assets
Net assets, beginning of year
Net assets, end of year
Equipment
Replacement
Fund
$
(
541,146
541,146
47,011
521,912
568,923
27,777)
27,999
( 21,024)
(
6,975
20,802)
264,500
243,698
3,299,749
Insurance
Fund
Risk
Manage-
ment
Fund
Total
$ 2,530,207 $ 256,271 $ 2,786,478
112,547
2,642,754
74,626
2,785,010
10,991
2,870,627
227,873)
27,422
27,422
(
653,693
256,271 3,440,171
36,541
569,641
2,205
158,178
3,354,651
535,108
608,387 4,047,937
352,116) ( 607,766)
16,934 72,355
( 21,024)
16,934
51,331
200,451) ( 335,182) ( 556,435)
500,000
299,549
722,336
440,000
104,818
655,216
1,204,500
648,065
4,677,301
$ 3,543,447 $ 1,021,885 $ 760,034 $ 5,325,366
72
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2005
Risk
Equipment Manage -
Replacement Insurance ment
Fund Fund Fund Total
OPERATING ACTIVITIES
Cash received from customers $ 609,474 $ 2,525,391 $ 256,271 $ 3,391,136
Cash payments to suppliers for goods and services ( 248,171) ( 2,777,096) ( 580,408) ( 3,605,675)
Cash payments to employees for services - ( 61,733) ( 18,782) ( 80,515)
Net cash provided by (used in) operating activities 361,303 ( 313,438) ( 342,919) ( 295,0542
NONCAPITAL FINANCING ACTIVITIES
Transfers in 264,500 500,000 440,000 1,204,500
Net cash provided by noncapital financing activities 264,500 500,000 440,000 1,204,500
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of equipment ( 361,776) ( 361,776)
Sale of equipment ( 21,024) ( 21,024)
Net cash used in capital and related financing activities ( 382,800) ( 382,800)
INVESTING ACTIVITIES
Interest received on investments 23,166 17,379 15,747 56,292
Net cash provided by investing activities 23,166 17,379 15,747 56,292
Net increase in cash and cash equivalents 266,169 203,941 112,828 582,938
Cash and cash equivalents, beginning of year 1,274,577 777,057 758,992 2,810,626
Cash and cash equivalents, end of year $ 1,540,746 $ 980,998 $ 871,820 $ 3,393,564
Reconciliation of operating loss to net cash
provided by (used in) operating activities
Operating loss ($ 27,777) ($ 227,873) ($ 352,116) ($ 607,766)
Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities:
Depreciation expense 521,912 10,991 2,205 535,108
Loss on disposal of equipment 68,328 68,328
Change in assets and liabilities:
Receivables ( 117,363) ( 117,363)
Prepaids ( 269,177) 6,814 ( 262,363)
Accounts payable 68,017 890 4,043 72,950
Accrued salaries and wages 4,239 2,949 7,188
Accrued insurance claims 8,864 8,864
Net cash provided by (used in) operating activities $ 361,303 ($ 313,438) ($ 342,919) ($ 295,054)
73
AGENCY FUNDS
Agency funds are used to account for assets held by the government as an agent for
individuals, private organizations, other governments and/or other funds.
Stars Center Escrow — to account for investments held on -behalf of the Dallas
Stars until the bond issuance is retired.
DEA Task Force - to account for assets and liabilities received from the DEA
task force that are to be distributed to other participating entities.
74
CITY OF EULESS, TEXAS
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
September 30, September 30,
2004 Additions Deletions 2005
Assets:
Deposits and investments $ 2,395,802 $ $ 107,184 $ 2,288,618
Total assets $ 2,395,802 $ $ 107,184 $ 2,288,618
Liabilities:
Due to other entities $ 2,395,802 $ $ 107,184 $ 2,288,618
Total liabilities $ 2,395,802 $ $ 107,184 $ 2,288,618
75
STATISTICAL SECTION
(Unaudited)
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE EXPENSES BY FUNCTION
FISCAL YEAR ENDED 2005 (UNAUDITED)
Fiscal
Year
2003
2004
2005
Culture and
Recreation
Development General and
Services Administrative
$ 4,753,724 $ 1,190,240 $
4,411,726
4,573,219
1,217,794
1,113,875
Highways
and Streets
Public
Safety
11,879,362 $ 2,117,959 $ 14,830,469
12,337,712
13,379,907
2,398,447 15,315,777
1,734,487 15,514,301
Note 1: City of Euless first applied GASB Statement 34 in fiscal year ended 9/30/03;
therefore, government -wide financial information for years prior to fiscal year
ended 9/30/03 is not available.
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE REVENUES BY FUNCTION
FISCAL YEAR ENDED 2005 (UNAUDITED)
Fiscal
Year
2003
2004
2005
Fee, Fines and
Charges for
Services
$ 24,707,006
24,543,308
26,639,439
Program Revenues
Operating
Grants and
Contributions
Capital Grants Ad Valorem
and Contributions Taxes
$ 515,039 $
517,307
1,302,332
Sales
Taxes
2,849,795 $ 9,941,779 $ 8,865,055
2,850,705 10,233,079 9,229,819
3,308,393 10,777,414 9,648,979
Note 1: City of Euless first applied GASB Statement 34 in fiscal year ended 9/30/03;
therefore, government -wide financial information for years prior to fiscal year
ended 9/30/03 is not available.
76
Interest on
Long-term Debt
$ 3,147,819
2,765,102
2,572,094
Other
Taxes
$ 13,074,910
13,666,041
14,431,288
Water &
Sewer
$ 12,046,092
12,550,708
13,227,562
Drainage
Utility
$ 812,785
793,358
875,995
General Revenues
Captital
Contributions
$ 2,003,095
3,928,771
1,603,525
Interest on
Investments
Table 1
Golf Course Other Total
$ 3,616,671 $ 2,593,455 $ 56,988,576
3,667,537
3,792,552
Gain (Loss) on
Sale of Assets
Miscellaneous
2,299,391 57,757,552
2,630,760 59,414,752
Table 2
Total
$ 900,478 $ 41,807 $ 102,193 $ 63,001,157
729,479
1,278,309
30,811 18,208 65,747,528
21,023) 68, 968,656
77
Table 3
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(Unaudited)
Culture and
General Recreation/
Fiscal Govern- Public Highways Development Debt Year ment Safety and Streets Services Service Other Total
1996 $ 2,409,115 $ 7,445,910 $ 619,098 $ 1,527,718 $ 1,658,291 $ 1,833,982 $15,494,114
1997 2,591,776 8,187,576 639,906 1,781,630 2,145,300 2,495,872 17,842,060
1998 2,951,730 9,028,711 699,140 1,995,717 2,002,940 1,454,830 18,133,068
1999 3,112,014 9,455,787 815,687 2,060,029 2,319,044 1,896,288 19,658,849
2000 3,259,704 9,880,516 746,976 2,311,089 2,199,194 1,408,673 19,806,152
2001 3,483,706 10,622,716 734,672 2,406,417 4,379,893 1,800,781 23,428,185
2002 3,536,098 11,494,228 750,218 2,682,646 5,145,880 1,954,168 25,563,238
2003 5,029,333 11,811,166 715,877 3,643,523 5,135,900 - 26,335,799
2004 5,064,926 12,337,868 766,030 3,613,281 5,038,874 26,820,979
2005 5,244,106 13,096,613 670,742 3,543,105 4,724,813 27,279,379
Note 1: Includes General Fund and Debt Service Fund.
Note 2: City of Euless first applied GASB Statement 34 in fiscal year ended 9/30/03;
therefore, "other" classification no longer exists.
78
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year Taxes
Licenses Inter- Charges
and govern- for Fines
Permits mental Services and Fees
1996 $12,049,604 $ 459,553
1997 12,733,372
1998 13,187,156
1999 13,800,144
2000 15,255,770
2001 16,286,212
2002 17, 842, 854
2003 18,601,527
2004 19,287,653
2005 20,502,154
Interest
Income
and Other
Revenues
Table 4
Total
$ 84,447 $102,669 $2,233,554 $ 1,087,365 $16,017,192
530,525 192,742 89,102 2,337,343
396,811 258,663 93,175 2,671,187
448,751 557,246 101,705 3,349,742
550,356 602,417 102,096 3,452,010
511,625 413,617 104,922 3,145,608
1,188,231 421,176 105,187 3,237,217
1,009,058 326,493 112,013 3,377,046
1,190,059 292,265 119,607 3,162,113
870,010 303,713 120,900 3,662,327
Note 1: Includes General Fund and Debt Service Fund.
1,268,495
1,262,289
580,572
1,354,752
1,741,423
1,523,766
1,480,712
1,413,408
1,493,868
17,151,579
17,869,281
18,838,160
21,317,401
22,203,407
24,318,431
24,906,849
25,465,105
26,952,972
79
Table 5
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Unaudited)
Percent of Ratio of Percent of
Current Delinquent Total Tax Outstanding Delinquent
Fiscal Total Current Tax Taxes Tax Total Tax Collections Delinquent Taxes to
Year Tax Levy Collections Collected Collections Collections to Tax Levy Taxes Tax Levy
1996 $6,517,809 $6,404,089 98,26% $ 72,683 $6,476,772 99.37% $ 354,752 5.44%
1997 6,150,523 6,073,887 98,75% 66,886 6,140,773 99,84% 392,589 6.38%
1998 6,235,640 6,123,906 98.21% 86,667 6,210,573 99.60% 392,589 6.30%
1999 6,698,985 6,618,464 98,80% 132,556 6,751,020 100.78% 393,988 5.88%
2000 7,150,393 7,068,633 98.86% 67,464 7,136,097 99.80% 361,663 5.06%
2001 7,717,258 7,562,145 97.99% 41,316 7,603,461 98.53% 493,703 6,40%
2002 8,987,088 8,668,507 96.46% 102,871 8,771,378 97.60% 915,904 10.19%
2003 9,758,243 9,639,278 98.78% 126,029 9,765,307 100.07% 1,002,193 10.27%
2004 10,244,982 10,026,897 97.87% 164,784 10,191,681 99.48% 938,053 9.16%
2005 10,820,274 10,663,367 98.55% 353,312 11,016,679 101.82% 707,019 6.53%
Source: Tarrant County Tax Assessor/Collector
80
Table 6
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Unaudited)
Ratio of
Total
Assessed
Real Property Personal Property Total to
Estimated Estimated
Fiscal Assessed Actual Assessed Actual Assessed Actual Actual
Year Value Value Value Value Value Value Value
1996 $ 908,760,987 $ 818,330,766 $ 166,784,893 $ 147,978,520 $ 1,075,545,880 $ 966,309,286
1997 955,692,304 908,760,987 172,885,117 166,784,893 1,128,577,421 1,075,545,880
1998 1,009,997,060 955,692,304 185,673,796 172,885,117 1,195,670,856 1,128,577,421
1999 1,093,894,921 1,009,997,060 182,729,883 185,673,796 1,276,624,804 1,195,670,856
2000 1,198,361,587 1,093,894,921 197,169,731 182,729,883 1,395,531,318 1,276,624,804
2001 1,307,137,899 1,198,361,587 194,966,019 197,169,731 1,502,103,918 1,395,531,318
2002 1,433,779,484 1,433,779,484 373,564,221 373,564,221 1,807,343,705 1,807,343,705
2003 1,547, 947,615 1,547,947,615 414,478,638 414,478,638 1,962,426,253 1,962,426,253
2004 1,660,048,845 1,660,048,845 409,644,479 409,644,479 2,069,693,324 2,069,693,324
2005 1,761,167,949 1,761,167,949 424,746,067 424,746,067 2,185,914,016 2,185,914,016
Source: TarrantAppraisal District
90%
95%
94%
94%
91%
93%
100%
100%
100%
100%
81
CITY OF EULESS, TEXAS
PROPERTY TAX RATES
ALL DIRECT AND OVERLAPPING GOVERNMENTS
PER $100 OF ASSESSED VALUE
LAST TEN FISCAL YEARS
(Unaudited)
Table 7
Fiscal Junior
Year City (1) School g_i_ County (3) Hospital (3) College (31 Total
1996 0.6060000% 1.5345% 0.266603% 0.244640% 0.055460% 2.7071630%
1997 0.5449800% 1.6170% 0.266603% 0.239840% 0.057690% 2.7261130%
1998 0.5247540% 1.6063% 0.264000% 0.234070% 0.057690% 2.6867710%
1999 0.5247540% 1.6063% 0.264836% 0.234070% 0.106400% 2.7363170%
2000 0.5147540% 1.6318% 0.264836% 0.234070% 0.106400% 2.7518600%
2001 0.5147540% 1.6775% 0.274785% 0.234070% 0.106410% 2.8075190%
2002 0.4972540% 1.6530% 0.274785% 0.234070% 0.106410% 2.7655190%
2003 0.4972540% 1.7119% 0.272500% 0.232400% 0.139380% 2.8534340%
2004 0.4950000% 1.6616% 0.272500% 0.235397% 0.139380% 2.8038770%
2005 0.4950000% 1.7105% 0.272500% 0.235397% 0.139380% 2.8527770%
Note 1: General property taxes for cities are limited by the Texas Constitution to
$2.50 per $100 of assessed valuation.
Note 2: City general property taxes are due each year on October 1 and become delinquent
on February 1 each year.Penalties and interest are assessed on late payments.
There are no discounts.
Note 3: The City's taxes are collected by Tarrant County and are distributed to the City as collected.
Sources: (1) City records
(2) Hurst -Euless -Bedford Independent School District
(3) Tarrant County
82
CITY OF EULESS, TEXAS
RATIO OF NET GENERAL BONDED DEBT
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(Unaudited)
Table 8
Net
Bonded Net
Estimated Net Debt to Bonded
Fiscal Population Assessed General Assessed Debt Per
Year (1) Value (2) Debt (3) Value Capita
1996 39,750 $ 1,075,545,880 $ 12,124,427 1.13% 305
1997 40,850 1,128,577,421 11,813,272 1.05% 289
1998 41,300 1,195,670,856 15,864,608 1.33% 384
1999 42,900 1,276,624,804 14,452,481 1.13% 337
2000 44,700 1,395,531,318 25,858,045 1.85% 578
2001 45,500 1,502,103,918 36,360,233 2.42% 799
2002 46,166 1,807,343,705 34,925,836 1.93% 757
2003 47,950 1,962,426,253 33,371,818 1.70% 696
2004 49,750 2,069,693,324 38,959,366 1.88% 783
2005 49,950 2,185,914,016 37,082,852 1.70% 742
Sources: (1) Estimates by North Central Texas Council of Governments
(2) Tarrant Appraisal District
(3) Includes General Obligation Bonds and Certificates of Obligation, with the exception of
Taxable Certificates of Obligation
83
Table 9
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2005
Unaudited)
Percentage Amount
Applicable Applicable
Net Debt to City to City
Jurisdiction Outstanding_ of Euless of Euless
City of Euless $37,082,852 100.00% $37,082,852
Grapevine-Colleyville Independent
School District 261,121,821 2.12% 5,535,783
Hurst -Euless -Bedford Independent
School District 226,366,865 26.79% 60,643,683
Tarrant County 165,340,000 2.72% 4,497,248
Tarrant County Hospital County 38,500,000 2.72% 1,047,200
Tarrant County College District 63,713,727 2.72% 1,733,013
Total direct and overlapping debt $792,125,265 $110,539,779
Ratio of direct and overlapping
bonded debt to taxable assessed
valuation 5.06%
Per capita direct and overlapping
bonded debt $2,213
84
Table 10
CITY OF EULESS, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR NET GENERAL BONDED DEBT
TO TOTAL GENERAL EXPENDITURES
LAST TEN FISCAL YEARS
(Unaudited)
Ratio of
Debt
Service
Interest to
and Total Total General
Fiscal Fiscal Debt General Expendi-
Year Principal Charges Service Expenditures tures
1996 $ 1,245,000 $ 413,291 $ 1,658,291 $ 15,494,114 10.70%
1997 1,340,000 805,300 2,145, 300 17, 842, 060 12.02%
1998 1,445,000 557,940 2,002,940 17,554,787 11.41 %
1999 1,430,000 890,944 2,320,944 19,806,152 11.72%
2000 1,022,790 1,178, 392 2,201,182 19, 806,152 11.11%
2001 1,179,277 3,200,616 4,379,893 23,428,186 18.69%
2002 1,734,866 3,411,014 5,145,880 25,563,238 20.13%
2003 1,987,838 3,062,699 5,050,537 26,335,799 19.18%
2004 1,941,815 2,922,059 4,863,874 26,820,979 18.13%
2005 2,015,000 2,581,813 4,596,813 27, 279, 379 16.85%
85
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Gross
Fiscal Revenue
Year (1)
1996 $ 10,579,366
1997 10,605, 353
1998 11,830,802
1999 11,909,011
2000 13,558,051
2001 13,084,483
2002 11,719,411
2003 13,016,934
2004 13,443,174
2005 14,548,715
Direct
Operating
Expenses
(2)
$ 8,177,311
8,014,504
9,780,792
9,288,622
9,765,239
10,915,784
10,298,940
10,431,249
10,902,522
11, 555,108
Net
Revenue
Available
for Debt
Services
$ 2,402,055
2,590,849
2,050,010
2,620,389
3,792,812
2,168,699
1,420,471
2,585,685
2,540,652
2,993,607
Principal
$365,000
370,000
395,000
385,000
415,000
445,000
580,000
615,000
500,000
305,000
Sources: (1) Operating revenues and investment interest of Water and
Sewer Fund.
(2) Total operating expenses of Water and Sewer Fund exclusive
of depreciation and amortization.
Interest
and
Fiscal
Charges
$ 170,205
151,480
128,040
107,325
62,856
317,637
231,234
199,245
183,946
275,524
Total
$ 535,205
521,480
523,040
492,325
477,856
762,637
811,234
814,245
683,946
580,524
Table 11
Coverage
Ratio
4.49
4.97
3.92
5.32
7.94
2.84
1.75
3.18
3.71
5.16
86
Table 12
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
DRAINAGE UTILITY BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Net
Direct Revenue Interest
Gross Operating Available and
Fiscal Revenue Expenses for Debt Fiscal Coverage
Year (1) (2) Services Principal Charges_ Total Ratio
1996 $563,004 $ 52,876 $ 510,128 $ 25,000 $ 126,791 $ 151,791 3.36
1997 587,892 66,624 521,268 30,000 125,419 155,419 3.35
1998 611,585 87,641 523,944 100,000 124,082 224,082 2.34
1999 621,586 195,397 426,189 105,000 118,433 223,433 1.91
2000 662,132 329,422 332,710 110,000 112,343 222,343 1.50
2001 662,455 212,073 450,382 120,000 108,652 228,652 1.97
2002 645,852 241,034 404,818 75,000 74,041 149,041 2.72
2003 653,916 291,668 362,248 160,000 32,494 192,494 1.88
2004 667,131 225,815 441,316 165,000 46,255 211,255 2.09
2005 700,316 265,444 434,872 170,000 41,305 211,305 2.06
Sources: (1) Includes operating revenue and interest earned on investments.
(2) Total operating expenses exclusive of depreciation and amortization.
87
Table 13
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(Unaudited)
Per
Capita School Unemployment
Fiscal Population Income Enrollment Rate
Year (1) (2) (3) (4)
1996 39,750 22,223 19,205 3.3%
1997 40,850 22,690 19,400 3.5%
1998 41,300 22,962 19,500 2.4%
1999 42,900 23,858 19,500 2.1%
2000 44,700 24,884 19,500 2.2%
2001 45,500 25,556 19,500 3.3%
2002 46,166 25,837 19,500 4.6%
2003 47,950 26,630 19,500 4.7%
2004 49,750 26,710 19,700 3.8%
2005 49,950 27,406 19,600 4.5%
Note 1: Estimates by North Central Texas Council of Governments
Note 2: Estimates by Claritas Site Reports
Note 3: Hurst -Euless -Bedford Independent School District
Note 4: Texas Workforce Commission
Table 14
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2005
(Unaudited)
2005 Percentage
Assessed of Total
Type of Valuation Assessed
Taxpayer Business (1) Valuation
Hertz Rent A Car Car Rental $ 59,879,524 2.66%
Vanguard Car Rental USA, Inc. Car Rental 48,800,000 2.17%
Fairfield Bear Creek, LP Apartments 33,500,000 1.49%
Somerset Village Partners, LP Apartments 29,732,774 1.32%
Saluda Apartments, L.P. Apartments 28,939,355 1.28%
Seramont, LP Apartments 28,506,000 1.26%
Cingular Wireless, LLC Telephone 28,412,920 1.26%
South West Properties Apartments 28,406,310 1.26%
TXU Electric Delivery Co. Electric Utility 28,317,999 1.26%
The Bear Apartments, Inc. Apartments 27,269,000 1.21%
$ 341,763,882 15.17%
Note 1: Based on Certified Tax Rolls from Tarrant Appraisal District as of September 2005
89
Table 15
CITY OF EULESS, TEXAS
PROPERTY VALUE AND CONSTRUCTION
LAST TEN FISCAL YEARS
(Unaudited)
Construction (1)
Property Number
Fiscal Value of
Year (2) Permits Value
1996 $ 1,075,545,880 391 $ 22,907,680
1997 1,128,577,421 351 92,300,851
1998 1,195,670,856 293 1,586,997
1999 1, 276, 624, 804 244 28, 267, 792
2000 1,395,531,318 186 60,615,889
2001 1,502,103,918 246 35,276,093
2002 1,807,343,705 218 38,180,557
2003 1,962,426,253 362 67,835,536
2004 2,069,693,324 531 99,192,850
2005 2,185,914,016 406 77,890,527
Note 1: City Records
Note 2: Tarrant Appraisal District
Table 16
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2005
(Unaudited)
Article XI, Section 5 of the State of Texas Constitution states in part:
"... no tax for any purpose shall ever be lawful for any one year, which shall exceed two
and one-half percent of the taxable property of such city."
Additionally, the state Attorney General's Office normally limits general property taxes to $2.50
per $100 of assessed valuation for the payment of principal and interest on general obligation
bonds.
The City's total tax rate for fiscal 2005 was established at $.495000 per $100 of assessed
valuation on 100% of appraised value.
91
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2005
(Unaudited)
Table 17
Date of incorporation February 24, 1953
Date of Adoption of Charter July 21, 1962
Form of government Home Rule - Council/Manager
Mayor - elected at large
Six Council Members
Area 16.9 Square Miles
Full time City employees budgeted 368
Fire protection:
Number of stations
Number of certified firefighters
Police protection:
Number of stations
Number of certified officers
3
58
1
81
Parks and recreation:
Number of swimming pools 3
Number of parks 16
Area of parks 605 acres
Community buildings 5
Ampitheater 2
Conference center 1
Golf course 1
Athletic fields 24
Ice rinks 2
Library materials:
Books
Other media
90,046
9,926
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
Table 17
92
CITY OF EULESS, TEXAS Table 17
MISCELLANEOUS STATISTICS (Continued)
SEPTEMBER 30, 2005
(Unaudited)
City Water and Sewer service:
Water Service:
Number of Customers 25,012
Maximum daily capacity available
from Trinity River Authority 29,000,000
Maximum daily capacity from City
water wells 3,500,000
Total daily capacity 32,500,000
Maximum daily consumption 15,391,000
Average daily consumption 6,890,000
Water mains 194.66 miles
Fire hydrants 1,318
Sewer Service:
Average daily flow of wastewater 3,990,000
Number of customers 24,435
Sewer mains 180.5 miles
Streets:
Improved 141 miles
State highways 33.3 miles
Airport Streets 16.5 miles
93